Seritage (SRG) AI Stock Analysis

• Market Cap: $189.81M
• Dividend Yield: N/A
• Average Volume (3M): 169.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: -17.76%
• EPS Growth: 44.68%
• Country: US
• Employees: 7
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): -0.24
• Shares Outstanding: 56,324,608
• 10 Day Avg. Volume: 176,097
• 30 Day Avg. Volume: 169,555
• PEG Ratio: 2.14
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 13.15
• P/FCF Ratio: -4.33
• Enterprise Value/Market Cap: 2.00
• Enterprise Value/Revenue: 20.59
• Enterprise Value/Gross Profit: 208.80
• Enterprise Value/Ebitda: -11.26
• 1Y Price Target: $6.34
• Price Target Upside: 93.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $3.00 ▼(-8.54% Downside)

The overall stock score is primarily impacted by the company's weak financial performance and bearish technical indicators. However, recent corporate events, including debt repayments and property sales, provide some positive outlook by reducing financial burdens and improving cash flow management.

Positive Factors

Debt Reduction

The significant reduction in outstanding debt through prepayments enhances financial flexibility and reduces interest expenses, improving long-term financial health.

Property Sales

Proceeds from property sales are used to reduce debt, which strengthens the balance sheet and supports strategic redevelopments, enhancing future cash flows.

Management Actions

Adjustments in management compensation and retention plans align leadership incentives with long-term company goals, potentially improving operational execution.

Negative Factors

Negative Profitability

Persistent negative profitability indicates challenges in generating sufficient returns, which can hinder reinvestment and growth opportunities.

High Leverage

High leverage poses risks to financial stability, limiting the company's ability to invest in growth and adapt to market changes.

Cash Flow Issues

Negative cash flows indicate liquidity challenges, which may constrain the company's ability to fund operations and strategic initiatives.

Seritage Business Overview & Revenue Model

Company Description

Seritage Growth Properties (SRG) is a real estate investment trust (REIT) focused on the ownership, leasing, and development of retail and mixed-use properties across the United States. The company primarily specializes in redeveloping former Sears and Kmart locations, transforming these spaces into vibrant shopping, dining, and entertainment destinations. Seritage aims to enhance the value of its properties through strategic partnerships and innovative redevelopment projects, catering to the evolving needs of consumers and retailers.

How the Company Makes Money

Seritage makes money primarily through leasing its retail and commercial properties to tenants. The company's revenue model includes long-term leases with national and regional retailers, as well as potential income from short-term leases and pop-up shops. Additionally, Seritage generates income from property management fees and development projects that enhance the value of its real estate portfolio. Significant partnerships with retailers and local businesses, combined with a focus on redevelopment, contribute to its earnings by attracting new tenants and increasing property occupancy rates.

Seritage Financial Statement Overview

Summary

Seritage faces significant financial challenges with negative profitability, high leverage, and cash flow issues. Despite minor improvements in revenue growth and debt management, the company's financial health remains weak.

Income Statement

Seritage's income statement shows significant challenges with negative net profit margins and EBIT margins over the periods. The TTM data indicates a slight improvement in revenue growth, but profitability remains a concern with negative margins across the board. The company has struggled to maintain a stable gross profit margin, and the overall trajectory suggests ongoing financial difficulties.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio that has improved slightly but remains concerning. Return on equity is negative, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio is relatively stable, but the high debt levels pose a risk to financial stability.

Cash Flow

Cash flow analysis reveals persistent negative operating and free cash flows, indicating cash management issues. The free cash flow to net income ratio is positive, suggesting some alignment between cash flow and accounting profits, but the overall negative cash flow growth and operating cash flow coverage ratio highlight liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.42M	17.62M	20.78M	107.06M	116.68M	116.50M
Gross Profit	1.82M	-2.65M	-6.63M	41.34M	36.42M	38.56M
EBITDA	-33.69M	-113.67M	-95.66M	8.44M	120.56M	34.60M
Net Income	-74.48M	-153.54M	-154.91M	-73.94M	-28.15M	-105.03M
Balance Sheet
Total Assets	558.61M	677.77M	973.86M	1.84B	2.41B	2.65B
Cash, Cash Equivalents and Short-Term Investments	51.54M	85.21M	134.00M	133.48M	106.60M	143.73M
Total Debt	196.67M	240.00M	367.60M	1.03B	1.46B	1.62B
Total Liabilities	219.52M	271.97M	410.70M	1.12B	1.57B	1.77B
Stockholders Equity	337.72M	404.46M	561.99M	720.47M	687.74M	649.04M
Cash Flow
Free Cash Flow	-47.67M	-53.55M	-785.97M	-692.07M	-384.12M	-89.03M
Operating Cash Flow	-47.67M	-53.55M	-53.06M	-117.92M	-136.00M	-47.31M
Investing Cash Flow	98.71M	126.87M	732.91M	586.08M	260.71M	42.87M
Financing Cash Flow	-89.38M	-125.31M	-675.09M	-436.97M	-161.21M	15.44M

Seritage Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.28
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 3.28 is below the 20-day moving average (MA) of 3.48, below the 50-day MA of 3.83, and below the 200-day MA of 3.40, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 36.81 is Neutral, neither overbought nor oversold. The STOCH value of 23.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRG.

Seritage Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBL	73 Outperform	$1.15B	9.50	37.88%	6.66%	5.74%	294.33%
BFS	68 Neutral	$772.89M	27.50	11.88%	7.89%	5.75%	-37.69%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PINE	59 Neutral	$238.25M	-47.52	-2.16%	6.76%	14.81%	-245.25%
WHLR	56 Neutral	$5.14M	―	116.25%	―	-1.01%	504.95%
SITC	55 Neutral	$331.04M	11.60	2.46%	―	-69.63%	-95.99%
SRG	46 Neutral	$189.81M	-2.33	-19.72%	―	-17.76%	44.68%

Seritage Corporate Events

Seritage Makes $20 Million Loan Prepayment

On December 4, 2025, Seritage Growth Properties announced a $20 million voluntary prepayment toward its $1.6 billion senior secured term loan facility with Berkshire Hathaway Life Insurance Company of Nebraska. This prepayment is part of a series of repayments totaling $1.55 billion since December 2021, leaving $50 million outstanding. The prepayment reduces the company’s annual interest expense by approximately $1.4 million, contributing to a total reduction of $110 million in interest expenses since December 2021.

Seritage Amends COO’s Compensation Structure

On November 21, 2025, Seritage‘s Compensation Committee approved an amendment to the employment offer letter for Eric Dinenberg, the Chief Operating Officer, adjusting his retention and compensation structure. The amendment establishes a six-month retention period from March 16, 2026, to September 15, 2026, with changes to his compensation, including a 5% salary increase and a retention bonus. The amendment also outlines conditions for additional bonuses linked to company transactions and provides terms for compensation in case of early termination. Additionally, the employment term for Chief Legal Officer Matthew Fernand was extended for another year starting March 16, 2026.

Seritage Completes $131 Million Property Sale

Seritage Growth Properties, a real estate investment trust, completed the sale of its property in Aventura, Florida, for $131 million on November 25, 2025. The proceeds from this sale contributed to a $130 million voluntary prepayment on its $1.6 billion senior secured term loan facility, significantly reducing the outstanding balance and annual interest expenses.

Seritage Declares Dividend for Preferred Shares

On October 29, 2025, Seritage Growth Properties’ Board of Trustees declared a cash dividend of $0.4375 per share for its 7.00% Series A Cumulative Redeemable Preferred Shares. This dividend is scheduled for payment on January 15, 2026, to shareholders recorded by December 31, 2025.