Seritage (SRG) AI Stock Analysis

• Market Cap: $209.53M
• Dividend Yield: N/A
• Average Volume (3M): 129.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: -30.14%
• EPS Growth: 27.34%
• Country: US
• Employees: 7
• Sector: Real Estate
• Sector Strength: 48
• Industry: REIT - Retail
• EPS (TTM): -0.53
• Shares Outstanding: 56,324,608
• 10 Day Avg. Volume: 88,824
• 30 Day Avg. Volume: 129,971
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 17.56
• Enterprise Value/Gross Profit: -58.22
• Enterprise Value/Ebitda: -4.83
• 1Y Price Target: $3.50
• Price Target Upside: -4.63% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $3.50 ▼(-4.63% Downside)

Seritage's overall stock score is primarily impacted by its poor financial performance, which is a significant concern. However, positive technical indicators and strategic corporate events, such as leadership changes and debt reduction, provide some optimism. The valuation remains unattractive due to negative earnings and no dividend yield.

Seritage Business Overview & Revenue Model

Company Description

Seritage Growth Properties (NYSE: SRG) is a real estate investment trust (REIT) that specializes in the ownership, redevelopment, and management of retail and mixed-use properties across the United States. The company primarily focuses on repurposing and leasing former Sears and Kmart locations, transforming these spaces into mixed-use developments that may include retail, residential, and commercial components. With a strategic portfolio of properties, Seritage aims to enhance value through innovative redevelopment and effective asset management.

How the Company Makes Money

Seritage generates revenue primarily through leasing its properties to various tenants, including retail, restaurant, and commercial entities. The company benefits from long-term leases, which provide a steady income stream. Additionally, Seritage engages in redevelopment projects that often lead to higher rental rates and increased property values once the properties are transformed and fully leased. The company's revenue model is supported by its strategic partnerships with various developers and retailers, which facilitate the redevelopment of its properties. Furthermore, the sale of certain properties can also contribute to revenue, especially when these transactions align with the company’s strategic objectives to optimize its portfolio.

Seritage Financial Statement Overview

Summary

Seritage faces significant financial challenges with persistent losses, negative cash flows, and high leverage. Despite slight improvements in some metrics, such as a moderate debt-to-equity ratio and free cash flow growth, the company needs to address operational inefficiencies and improve profitability to ensure long-term sustainability.

Income Statement

Seritage's income statement reveals significant challenges, with negative margins across the board. The TTM data shows a gross profit margin of -30.16% and a net profit margin of -497.67%, indicating substantial losses. Revenue growth is minimal at 2.97%, but the company has consistently reported negative EBIT and EBITDA margins, reflecting ongoing operational inefficiencies and profitability issues.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.57 in the TTM period, which is an improvement from previous years. However, the return on equity remains negative at -21.62%, indicating that the company is not generating positive returns for shareholders. The equity ratio is not explicitly calculated, but the high levels of debt in previous years suggest financial leverage remains a concern.

Cash Flow

Cash flow analysis highlights negative operating cash flow and free cash flow, with a slight improvement in free cash flow growth of 9.79% in the TTM period. The operating cash flow to net income ratio is -2.20, and free cash flow to net income is 1.0, indicating that cash flows are not sufficient to cover net losses, posing liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.89M	17.62M	20.58M	107.06M	116.68M	116.50M
Gross Profit	-5.09M	-2.65M	-6.83M	41.34M	36.42M	38.56M
EBITDA	-61.41M	-41.27M	-52.62M	-6.30M	-5.47M	34.60M
Net Income	-84.03M	-153.54M	-154.91M	-120.10M	-38.98M	-152.96M
Balance Sheet
Total Assets	575.71M	677.77M	973.86M	1.84B	2.41B	2.65B
Cash, Cash Equivalents and Short-Term Investments	71.80M	85.21M	134.00M	133.48M	106.60M	143.73M
Total Debt	200.00M	240.00M	367.60M	1.04B	1.47B	1.63B
Total Liabilities	222.97M	271.97M	410.70M	1.12B	1.57B	1.77B
Stockholders Equity	351.37M	404.46M	561.99M	720.47M	687.74M	649.04M
Cash Flow
Free Cash Flow	-50.63M	-53.55M	-785.97M	-692.07M	-384.12M	-89.03M
Operating Cash Flow	-50.63M	-53.55M	-53.06M	-117.92M	-136.00M	-47.31M
Investing Cash Flow	115.59M	126.87M	732.91M	586.08M	260.71M	42.87M
Financing Cash Flow	-85.35M	-125.31M	-675.09M	-436.97M	-161.21M	15.44M

Seritage Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3.67 is above the 20-day moving average (MA) of 3.35, above the 50-day MA of 3.22, and above the 200-day MA of 3.42, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 64.95 is Neutral, neither overbought nor oversold. The STOCH value of 82.29 is Negative, 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	$968.83M	14.98	21.97%	8.88%	2.20%	128.61%
SITC	70 Outperform	$470.96M	1.33	25.89%	4.91%	-57.45%	-20.83%
BFS	65 Neutral	$815.07M	25.38	12.90%	7.06%	5.17%	-25.96%
PINE	65 Neutral	$215.20M	157.55	-0.29%	7.43%	17.14%	3.27%
Sector *	63 Neutral	$7.02B	13.29	-0.50%	6.92%	4.08%	-25.24%
WHLR	52 Neutral	$2.91M	―	8.94%	―	0.14%	99.35%
SRG	51 Neutral	$209.53M	―	-21.22%	―	-30.14%	27.34%

Seritage Corporate Events

Seritage Extends Loan Maturity with Berkshire Hathaway

On July 28, 2025, Seritage Growth Properties L.P. exercised an option to extend the maturity date of its Senior Secured Term Loan Agreement with Berkshire Hathaway Life Insurance Company of Nebraska by one year, from July 31, 2025, to July 31, 2026. This extension required a payment of a $4,000,000 extension fee and a $4,000,000 incremental facility fee, with all other terms of the agreement remaining unchanged.

Seritage Announces Dividend for Preferred Shares

On July 23, 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 October 15, 2025, to shareholders recorded by September 30, 2025.

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.