Seritage Growth Properties Marks Three Year Anniversary of NYSE Listing

Seritage Growth Properties (NYSE:SRG) (“Seritage” or the “Company”)
today commemorated the third anniversary of its listing on the New York
Stock Exchange (NYSE) with an update on the Company’s leasing,
development and transaction activity from its formation and public
listing on July 7, 2015 through June 30, 2018.

“As we mark the completion of our first three years as a public company,
and on the heels of strong leasing, development and transaction activity
in the first half of 2018, we are confident that our platform, scale and
control over well-located real estate will continue to position us as a
preferred partner for growing retailers, mixed-use developers and
institutional capital providers,” said Benjamin Schall, President and
Chief Executive Officer. “Based on the strength of our national platform
and dedicated team members, we have now executed 6.1 million square feet
of new leasing at average rents of approximately $17.50 PSF and a 4.1x
re-leasing multiple, and completed or commenced 88 redevelopment
projects totaling $1.3 billion of estimated capital investment at
unlevered returns on cost of approximately 11%.”

Mr. Schall continued, “Over the past three years, we have established a
consistent track record of generating value upon redevelopment, while
also substantially diversifying our tenant base. As of June 30th,
Sears Holdings was no longer the primary tenant at 129 of our 249
assets, and we remain on track to have Sears Holdings account for less
than 35% of our contractual rental income by the end of 2018, down
meaningfully from nearly 80% when we started. As we look forward, we are
increasingly focused on our larger value creation opportunities,
including a number of significant densification and mixed-use projects,
and further establishing Seritage as a leading growth platform in a
transforming industry.”

Leasing Activity During First 3 Years

The table below summarizes the Company’s leasing activity since
inception through June 30, 2018:



AnnualRent PSF



AnnualRent PSF



Development Activity During First 3 Years

The table below summarizes the Company’s development activity since
inception through June 30, 2018:

EstimatedDevelopmentCosts (1)

EstimatedProjectCosts (1)

Numberof Projects

ProjectSquare Feet

2017 (3)

(1) Total estimated development costs exclude, and total estimated
project costs include, termination fees to recapture 100% of certain
properties.(2) Projects were in various stages of development when
acquired by the Company in July 2015.(3) Project square feet,
development costs and project costs include expansions to previously
announced projects.

Transaction Activity During First 3 Years

About Seritage Growth Properties

Seritage Growth Properties is a publicly-traded, self-administered and
self-managed REIT with 225 wholly-owned properties and 24 joint venture
properties totaling approximately 39 million square feet of space across
49 states and Puerto Rico. The Company was formed to unlock the
underlying real estate value of a high-quality retail portfolio it
acquired from Sears Holdings in July 2015. Pursuant to a master lease,
the Company has the right to recapture certain space from Sears Holdings
for retenanting or redevelopment purposes. The Company’s mission is to
create and own revitalized shopping, dining, entertainment and mixed-use
destinations that provide enriched experiences for consumers and local
communities, and create long-term value for our shareholders.

Forward-Looking Statements

This document contains forward-looking statements, which are based on
the current beliefs and expectations of management and are subject to
significant risks, assumptions and uncertainties that may cause our
actual results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by these forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to:
competition in the real estate and retail industries; our exposure to
Sears Holdings; Sears Holdings’ termination and other rights under its
master lease with us; risks relating to our recapture and redevelopment
activities; contingencies to the commencement of rent under leases; the
terms of our indebtedness; restrictions with which we are required to
comply in order to maintain REIT status and other legal requirements to
which we are subject; and our relatively limited history as an operating
company. For additional discussion of these and other applicable risks,
assumptions and uncertainties, see the “Risk Factors” and
forward-looking statement disclosure contained in filings with the
Securities and Exchange Commission. While we believe that our forecasts
and assumptions are reasonable, we caution that actual results may
differ materially. We intend the forward-looking statements to speak
only as of the time made and do not undertake to update or revise them
as more information becomes available, except as required by law.

View source version on

Leave a Comment