Seritage Growth Properties Reports Q2 2025 Financial Results with Revenue Increase and Reduced Net Loss

Seritage Growth Properties reported its financial results for the second quarter of 2025, revealing a total revenue of $4.653 million, a 10.4% increase from $4.216 million in the same period last year. The revenue for the first half of 2025 was $9.252 million, down from $9.989 million in the first half of 2024. The company experienced a net loss of $28.506 million for the quarter, compared to a net loss of $101.227 million in the prior year, indicating a significant reduction in losses year-over-year. For the six months ended June 30, 2025, the net loss was $50.708 million, down from $120.212 million in the same period of 2024.

The company’s financial performance was impacted by several factors, including a decrease in rental income, which fell to $8.983 million for the first half of 2025 from $9.891 million in 2024. This decline was attributed to the sale of income-producing properties. However, property operating expenses decreased to $6.145 million from $7.833 million, and general and administrative expenses increased to $21.865 million from $16.066 million, primarily due to severance expenses. The company recognized an impairment loss of $18 million during the quarter, reflecting the sale of a property below its book value.

Strategically, Seritage continues to execute its Plan of Sale, which was approved by shareholders in October 2022. As of June 30, 2025, the company had sold two consolidated properties and two unconsolidated properties, generating gross proceeds of $60.7 million. The company is actively pursuing additional sales, with three consolidated properties under contract for a total of $109.8 million as of August 14, 2025. The ongoing strategic review process aims to enhance shareholder value, although there are no guarantees regarding the outcomes of these efforts.

Operationally, Seritage's portfolio consisted of 13 properties with approximately 1.3 million square feet of gross leasable area as of June 30, 2025. The company reported a decrease in cash and cash equivalents to $71.802 million from $85.206 million at the end of 2024. The company’s total assets decreased to $575.707 million from $677.774 million, while total liabilities fell to $222.970 million from $271.971 million. The company’s equity also declined to $352.737 million from $405.803 million, reflecting the ongoing challenges in the real estate market.

Looking ahead, Seritage anticipates that its obligations will continue to exceed property rental income, necessitating funding through asset sales and other capital sources. The company has extended the maturity of its Term Loan Facility to July 31, 2026, and is exploring various financing options to support its operations. The management remains cautious about market conditions, including elevated interest rates and potential economic impacts, which could affect the timing and proceeds from future asset sales.