Seritage (SRG) AI Stock Analysis

• Market Cap: $181.37M
• Dividend Yield: N/A
• Average Volume (3M): 89.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: -36.26%
• EPS Growth: -38.17%
• Country: US
• Employees: 7
• Sector: Real Estate
• Sector Strength: 60
• Industry: REIT - Retail
• EPS (TTM): -0.42
• Shares Outstanding: 56,324,608
• 10 Day Avg. Volume: 86,890
• 30 Day Avg. Volume: 89,917
• PEG Ratio: N/A
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.97
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: -11.15
• Enterprise Value/Ebitda: -0.64
• 1Y Price Target: $3.00
• Price Target Upside: -7.69% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $3.50 ▲(7.69%Upside)

Seritage's stock score is impacted by ongoing financial challenges and a negative valuation outlook. However, the corporate events, including leadership changes and debt reduction, provide a positive strategic direction. Technical indicators show short-term bullish momentum, but caution is advised due to overbought signals.

Seritage Business Overview & Revenue Model

Company Description

Seritage Growth Properties (SRG) is a publicly traded real estate investment trust (REIT) focused on the ownership, development, and management of retail and mixed-use properties across the United States. The company was formed to unlock the value of underutilized real estate assets, primarily those acquired from Sears Holdings, and transform them into vibrant destinations featuring a mix of retail, dining, entertainment, and residential options.

How the Company Makes Money

Seritage makes money primarily through leasing properties to various tenants, including retailers, restaurants, and other commercial entities. The company's revenue model is based on collecting rental income from its diverse portfolio of properties. A significant portion of Seritage's assets includes redeveloping former Sears and Kmart locations into higher-value mixed-use spaces, which increases their attractiveness to potential tenants and enhances rental income. Additionally, Seritage may engage in strategic partnerships and joint ventures to maximize property value and diversify its revenue streams. The company's earnings are influenced by factors such as property location, tenant mix, occupancy rates, and market demand for retail and mixed-use spaces.

Seritage Financial Statement Overview

Summary

Seritage is facing significant financial difficulties with a drastic decline in revenue, negative profitability, and ongoing operational losses. Debt reduction is positive, but overall financial health remains precarious due to negative equity and cash flow challenges.

Income Statement

Seritage has experienced a significant decline in revenue from $168.6 million in 2019 to $17.6 million in 2024, with a negative gross profit margin, indicating severe profitability issues. Net profit margin remains negative, and EBIT and EBITDA margins show consistent losses, reflecting ongoing operational challenges.

Balance Sheet

The company has significantly reduced its total debt from $1.6 billion in 2019 to zero in 2024, improving its leverage position. However, the equity ratio has decreased over the years, and the return on equity remains negative due to consistent net losses.

Cash Flow

Seritage shows a mixed cash flow picture, with a substantial reduction in free cash flow losses from 2019 to 2024, yet operating cash flow remains negative, indicating ongoing operational cash deficiencies. The significant investing cash inflows suggest asset sales or liquidation efforts.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.62M	20.58M	107.06M	116.68M	116.50M
Gross Profit	-2.65M	-6.83M	41.34M	36.42M	38.56M
EBITDA	-144.39M	-52.62M	-6.30M	-5.47M	34.60M
Net Income	-153.54M	-154.91M	-120.10M	-38.98M	-152.96M
Balance Sheet
Total Assets	677.77M	973.86M	1.84B	2.41B	2.65B
Cash, Cash Equivalents and Short-Term Investments	85.21M	134.00M	133.48M	106.60M	143.73M
Total Debt	240.00M	367.60M	1.04B	1.47B	1.63B
Total Liabilities	271.97M	410.70M	1.12B	1.57B	1.77B
Stockholders Equity	404.46M	561.99M	720.47M	687.74M	649.04M
Cash Flow
Free Cash Flow	-53.55M	-785.97M	-692.07M	-384.12M	-89.03M
Operating Cash Flow	-53.55M	-53.06M	-117.92M	-136.00M	-47.31M
Investing Cash Flow	126.87M	732.91M	586.08M	260.71M	42.87M
Financing Cash Flow	-125.31M	-675.09M	-436.97M	-161.21M	15.44M

Seritage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRG, the sentiment is Positive. The current price of 3.25 is above the 20-day moving average (MA) of 3.09, above the 50-day MA of 2.97, and below the 200-day MA of 3.59, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 58.99 is Neutral, neither overbought nor oversold. The STOCH value of 59.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRG.

Seritage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBL	72 Outperform	$818.25M	12.30	21.87%	11.94%	0.03%	1997.67%
SITC	67 Neutral	$586.33M	1.08	42.15%	3.98%	-42.71%	152.66%
BFS	64 Neutral	$796.21M	22.31	13.86%	7.13%	5.00%	-14.72%
Sector *	63 Neutral	$6.74B	18.39	-1.93%	7.18%	4.59%	-25.63%
PINE	60 Neutral	$204.01M	155.27	0.47%	7.83%	14.71%	―
SRG	52 Neutral	$181.37M	―	-33.95%	―	-36.26%	-38.17%
WHLR	49 Neutral	$5.48M	―	4.42%	―	1.47%	99.15%

Seritage Corporate Events

Seritage Appoints Adam Metz as CEO and President

Seritage Growth Properties has appointed Adam Metz as its Chief Executive Officer and President on a non-interim basis, effective July 1, 2025. Metz, who has a significant background in real estate and has held leadership roles in various companies, including Hammerson plc and Carlyle Group, will continue as Board Chairman. His appointment follows his interim role starting April 11, 2025. The new employment agreement includes a one-year term with a base salary of $1,100,000 and a target bonus of $1,225,000, subject to performance goals. This move is expected to bring stability and experienced leadership to Seritage as it navigates its strategic goals.

Seritage Announces $40 Million Loan Prepayment

On June 11, 2025, Seritage Growth Properties announced a voluntary prepayment of $40 million on its $1.6 billion Senior Secured Term Loan Agreement with Berkshire Hathaway Life Insurance Company of Nebraska. This prepayment reduces the outstanding amount to $200 million and decreases the company’s annual interest expenses by approximately $2.8 million. Since December 2021, Seritage has repaid a total of $1.4 billion, significantly lowering its interest expenses by about $99.4 million, which reflects a strategic move to improve its financial position and reduce debt-related costs.

Seritage Shareholders Re-elect Trustees, Reject Compensation Plan

On June 10, 2025, Seritage held its annual meeting of shareholders, where several key decisions were made. The shareholders re-elected six trustees, including John T. McClain and Adam Metz, each receiving the required two-thirds majority vote. Additionally, the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for fiscal year 2025 was ratified. However, the shareholders rejected the advisory, non-binding resolution to approve the executive compensation program for the company’s named executive officers, as it did not receive the majority vote needed for approval.

Seritage Declares Cash Dividend for Preferred Shares

On May 8, 2025, Seritage Growth Properties announced a cash dividend of $0.4375 per share for its 7.00% Series A Cumulative Redeemable Preferred Shares. This dividend will be distributed on July 15, 2025, to shareholders recorded by June 30, 2025.