Seritage Growth Properties reported its financial results for the third quarter of 2025, revealing a total revenue of $4.8 million, a 47% increase from $3.3 million in the same period last year. The rise in revenue was primarily driven by a significant increase in rental income, which rose to $4.6 million from $2.9 million year-over-year. However, the company also reported a net loss of $12.4 million for the quarter, an improvement compared to a net loss of $22.0 million in the prior year. For the nine months ending September 30, 2025, total revenue reached $14.0 million, up from $13.2 million in the same period of 2024, while the net loss for the nine months was $63.1 million, compared to $142.2 million in the previous year.
The company’s financial position showed a decline in total assets, which decreased to $558.6 million as of September 30, 2025, down from $677.8 million at the end of 2024. This reduction was attributed to the sale of properties and impairments recognized during the period. The company’s liabilities also decreased to $219.5 million from $272.0 million, primarily due to a reduction in the term loan facility, which now stands at $200 million after a $40 million repayment during the nine months. Shareholders' equity fell to $339.1 million from $405.8 million, reflecting the ongoing losses and asset sales.
Strategically, Seritage continues to execute its Plan of Sale, which aims to monetize its real estate assets. As of September 30, 2025, the company had sold two consolidated properties and two interests in unconsolidated properties, generating gross proceeds of $60.7 million. The company has four additional properties under contract for sale, with anticipated proceeds of $240.8 million. The ongoing strategic review process, initiated in March 2022, remains a priority as the company seeks to enhance shareholder value through asset sales.
Operationally, the company reported a decrease in property operating expenses, which fell to $9.8 million for the nine months ended September 30, 2025, down from $12.1 million in the previous year. This reduction was largely due to lower real estate taxes and decreased common area maintenance expenses. However, general and administrative expenses increased to $26.8 million from $23.2 million, primarily due to severance costs. The company also recognized impairment losses of $18.8 million on real estate assets during the nine months, reflecting the challenges in the current market environment.
Looking ahead, Seritage faces ongoing challenges, including elevated interest rates and market conditions that may impact the timing and pricing of asset sales. The company anticipates that its obligations will continue to exceed rental income, necessitating funding through asset sales and other capital sources. The management remains focused on executing the Plan of Sale while navigating the complexities of the current economic landscape.
About Seritage Growth Properties
Seritage Growth Properties is a real estate investment trust specializing in owning, developing, redeveloping, managing, and selling diversified retail and mixed-use properties across the U.S. Its portfolio includes retail centers and land, with a focus on asset monetization through a planned sale process. The company emphasizes value maximization, tenant diversification, and strategic asset repositioning within challenging market conditions.
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