EX-99 3 srg-ex99_2.htm EX-99.2 EX-99

Exhibit 99.2

 

img966142_0.jpg 


 

 

1

Forward-Looking Statements

 

Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “projects,” “would,” “may” or other similar expressions in the Company’s Annual Report on Form 10-K. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date hereof. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date hereof. The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto included in Part 1 of the Quarterly Report.

 

2

 

 

 

 

 

 

 

 

 

 

 

 

Financial Information

 

3

 

Summary Information

March 31, 2023

(in thousands, except per share and PSF amounts)

 

 

 

 

Three Months Ended March 31,

 

Financial Results

 

2023

 

 

2022

 

Net loss attributable to Seritage
   common shareholders

 

$

(63,211

)

 

$

(53,430

)

Total NOI

 

$

3,104

 

 

$

10,493

 

Net loss per share attributable to Seritage
   common shareholders

 

$

(1.13

)

 

$

(1.22

)

Wtd. avg. shares - EPS

 

 

56,059

 

 

 

43,634

 

Stock trading price range

 

$7.32 to $12.70

 

 

$8.49 to $14.45

 

 

4

Consolidated Balance Sheets (unaudited)

March 31, 2023

(in thousands, except share and per share amounts)

 

 

 

March 31, 2023

 

 

December 31, 2022

 

ASSETS

 

 

 

 

 

 

Investment in real estate

 

 

 

 

 

 

Land

 

$

154,807

 

 

$

172,813

 

Buildings and improvements

 

 

464,586

 

 

 

463,616

 

Accumulated depreciation

 

 

(55,347

)

 

 

(57,330

)

 

 

 

564,046

 

 

 

579,099

 

Construction in progress

 

 

157,824

 

 

 

185,324

 

Net investment in real estate

 

 

721,870

 

 

 

764,423

 

Real estate held for sale

 

 

245,894

 

 

 

455,617

 

Investment in unconsolidated entities

 

 

353,919

 

 

 

382,597

 

Cash and cash equivalents

 

 

120,476

 

 

 

133,480

 

Restricted cash

 

 

11,576

 

 

 

11,459

 

Tenant and other receivables, net

 

 

25,982

 

 

 

41,495

 

Lease intangible assets, net

 

 

1,615

 

 

 

1,791

 

Prepaid expenses, deferred expenses and other assets, net

 

 

35,041

 

 

 

50,859

 

Total assets (1)

 

$

1,516,373

 

 

$

1,841,721

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Term loan facility, net

 

$

799,859

 

 

$

1,029,754

 

Accounts payable, accrued expenses and other liabilities

 

 

58,559

 

 

 

89,368

 

Total liabilities (1)

 

 

858,418

 

 

 

1,119,122

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

Class A common shares $0.01 par value; 100,000,000 shares authorized;
   56,059,530 and 56,052,546 shares issued and outstanding
   as of March 31, 2023 and December 31, 2022, respectively

 

 

561

 

 

 

561

 

Series A preferred shares $0.01 par value; 10,000,000 shares authorized;
   2,800,000 shares issued and outstanding as of March 31, 2023 and
   December 31, 2022; liquidation preference of $70,000

 

 

28

 

 

 

28

 

Additional paid-in capital

 

 

1,360,060

 

 

 

1,360,411

 

Accumulated deficit

 

 

(703,742

)

 

 

(640,531

)

Total shareholders' equity

 

 

656,907

 

 

 

720,469

 

Non-controlling interests

 

 

1,048

 

 

 

2,130

 

Total equity

 

 

657,955

 

 

 

722,599

 

Total liabilities and shareholders' equity

 

$

1,516,373

 

 

$

1,841,721

 

(1) The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets, as of March 31, 2023, include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $3.3 million of land, $2.8 million of building and improvements, $(0.7) million of accumulated depreciation and $3.4 million of other assets included in other line items. The Company's consolidated balance sheets as of December 31, 2022, include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $6.6 million of land, $3.9 million of building and improvements, $(1.0) million of accumulated depreciation and $4.0 million of other assets included in other line items.

 

 

 

 

5

Consolidated Statements of Operations (unaudited)

March 31, 2023

(in thousands, except per share amounts)

 

 

 

Three Months Ended
March 31,

 

 

 

 

2023

 

 

2022

 

 

REVENUE

 

 

 

 

 

 

 

Rental income

 

$

418

 

 

$

29,084

 

 

Management and other fee income

 

 

262

 

 

 

1,821

 

 

Total revenue

 

 

680

 

 

 

30,905

 

 

EXPENSES

 

 

 

 

 

 

 

Property operating

 

 

8,185

 

 

 

11,032

 

 

Real estate taxes

 

 

1,537

 

 

 

8,150

 

 

Depreciation and amortization

 

 

4,564

 

 

 

11,934

 

 

General and administrative

 

 

12,220

 

 

 

9,092

 

 

Total expenses

 

 

26,506

 

 

 

40,208

 

 

Gain (loss) on sale of real estate, net

 

 

12,392

 

 

 

(1,015

)

 

Impairment of real estate assets

 

 

(2,576

)

 

 

(991

)

 

Equity in loss of unconsolidated entities

 

 

(36,372

)

 

 

(33,076

)

 

Interest and other income

 

 

5,585

 

 

 

11

 

 

Interest expense

 

 

(15,202

)

 

 

(22,588

)

 

Loss before income taxes

 

 

(61,999

)

 

 

(66,962

)

 

Benefit (provision) for income taxes

 

 

13

 

 

 

(25

)

 

Net loss

 

 

(61,986

)

 

 

(66,987

)

 

Net loss attributable to non-controlling interests

 

 

—

 

 

 

14,782

 

 

Net loss attributable to Seritage

 

$

(61,986

)

 

$

(52,205

)

 

Preferred dividends

 

 

(1,225

)

 

 

(1,225

)

 

Net loss attributable to Seritage common shareholders

 

$

(63,211

)

 

$

(53,430

)

 

 

 

 

 

 

 

 

 

Net loss per share attributable to Seritage Class A
   common shareholders - Basic

 

$

(1.13

)

 

$

(1.22

)

 

Net loss per share attributable to Seritage Class A
   common shareholders - Diluted

 

$

(1.13

)

 

$

(1.22

)

 

Weighted average Class A common shares
   outstanding - Basic

 

 

56,059

 

 

 

43,634

 

 

Weighted average Class A common shares
   outstanding - Diluted

 

 

56,059

 

 

 

43,634

 

 

 

6

Total Net Operating Income

March 31, 2023

(in thousands)

 

 

Three Months Ended March 31,

 

NOI and Total NOI

 

2023

 

 

2022

 

Net loss

 

$

(61,986

)

 

$

(66,987

)

Termination fee income

 

 

—

 

 

 

(277

)

Management and other fee income

 

 

(262

)

 

 

(1,821

)

Depreciation and amortization

 

 

4,564

 

 

 

11,934

 

General and administrative expenses

 

 

12,220

 

 

 

9,092

 

Equity in loss of unconsolidated entities

 

 

36,372

 

 

 

33,076

 

(Gain) loss on sale of real estate, net

 

 

(12,392

)

 

 

1,015

 

Impairment of real estate assets

 

 

2,576

 

 

 

991

 

Interest and other income

 

 

(5,585

)

 

 

(11

)

Interest expense

 

 

15,202

 

 

 

22,588

 

(Benefit) provision for income taxes

 

 

(13

)

 

 

25

 

Straight-line rent

 

 

10,843

 

 

 

(721

)

Above/below market rental expense

 

 

48

 

 

 

65

 

NOI

 

$

1,587

 

 

$

8,969

 

Unconsolidated entities

 

 

 

 

 

 

Net operating income of unconsolidated entities

 

 

1,659

 

 

 

1,846

 

Straight-line rent

 

 

(147

)

 

 

(328

)

Above/below market rental expense

 

 

5

 

 

 

6

 

Total NOI

 

$

3,104

 

 

$

10,493

 

 

 

 

 

 

 

 

 

7

Additional Information

March 31, 2023

(in thousands)

 

 

 

As of

 

 

As of

 

Debt Summary

 

March 31, 2023

 

 

December 31, 2022

 

Term Loan Facility (drawn / undrawn)

 

$800,000 / 400,000

 

 

$1,030,000 / 400,000

 

Interest rate / undrawn rate

 

7.00% / 1.00%

 

 

7.00% / 1.00%

 

Maturity

 

July 2025

 

 

July 2023

 

 

 

 

 

 

 

 

Prepaid Expenses, Deferred Expenses and Other Assets

 

March 31, 2023

 

 

December 31, 2022

 

Right of Use Asset

 

$

15,942

 

 

$

16,161

 

Deferred expenses

 

 

8,057

 

 

 

17,367

 

Other assets

 

 

4,155

 

 

 

5,551

 

Prepaid insurance

 

 

2,961

 

 

 

5,492

 

Other prepaid expenses

 

 

2,275

 

 

 

4,133

 

FF&E

 

 

975

 

 

 

1,129

 

Prepaid real estate taxes

 

 

676

 

 

 

1,026

 

Total prepaid expenses, deferred expenses and other assets

 

$

35,041

 

 

$

50,859

 

 

 

 

March 31, 2023

 

 

December 31, 2022

 

Accrued development expenditures

 

$

22,196

 

 

$

37,983

 

Accounts payable and accrued expenses

 

 

17,921

 

 

 

25,454

 

Lease liability

 

 

5,749

 

 

 

5,916

 

Accrued real estate taxes

 

 

4,126

 

 

 

8,638

 

Prepaid rental income

 

 

3,498

 

 

 

4,977

 

Accrued interest

 

 

2,489

 

 

 

3,286

 

Below-market leases

 

 

1,518

 

 

 

1,560

 

Common and preferred dividends and OP
    Unit distributions payable

 

 

1,062

 

 

 

1,554

 

Total accounts payable, accrued expenses and
   other liabilities

 

$

58,559

 

 

$

89,368

 

 

 

8

Additional Information (cont’d)

March 31, 2023

(in thousands, except per share amounts)

 

 

 

Three Months Ended March 31,

 

 

Rental Revenue Detail

 

2023

 

 

2022

 

 

Revenue

 

 

 

 

 

 

 

Rental income

 

$

(776

)

 

$

23,979

 

 

Tenant reimbursements

 

 

1,194

 

 

 

4,828

 

 

Termination income

 

 

-

 

 

 

277

 

 

      Total

 

$

418

 

 

$

29,084

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

 

2023

 

 

2022

 

 

Select Non-Cash Items

 

 

 

 

 

 

 

Straight-line rental income

 

 

 

 

 

 

 

Wholly-owned

 

$

(10,843

)

 

$

721

 

 

Joint ventures

 

 

147

 

 

 

328

 

 

Total

 

$

(10,696

)

 

$

1,049

 

 

 

 

 

 

 

 

 

 

Net amortization of above/below market
   rental income/expense

 

 

 

 

 

 

 

Wholly-owned

 

$

(48

)

 

$

(65

)

 

Joint ventures

 

 

(5

)

 

 

(6

)

 

Total

 

$

(53

)

 

$

(71

)

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

$

(105

)

 

$

(105

)

 

Share-based compensation expense

 

 

(773

)

 

 

(425

)

 

 

 

 

9

SNO Lease Summary

 

Multi-Tenant Retail

The table below provides a summary of all multi-tenant Retail signed leases as of March 31, 2023, including unconsolidated entities at the Company’s proportional share:

(in thousands except number of leases and PSF data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of

 

 

Leased

 

 

% of Total

 

 

Gross Annual Base

 

 

% of

 

 

Gross Annual

 

Tenant

 

Leases

 

 

GLA

 

 

Leasable GLA

 

 

Rent ("ABR")

 

 

Total ABR

 

 

Rent PSF ("ABR PSF")

 

In-place retail leases

 

 

55

 

 

 

1,374

 

 

 

68.1

%

 

$

30,014

 

 

 

90.7

%

 

$

21.84

 

SNO retail leases (1)

 

 

9

 

 

 

160

 

 

 

7.9

%

 

 

3,085

 

 

 

9.3

%

 

 

19.28

 

Total retail leases

 

 

64

 

 

 

1,534

 

 

 

76.0

%

 

$

33,099

 

 

 

100.0

%

 

$

21.58

 

(1) SNO = signed not yet opened leases.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands except number of leases and PSF data)

 

Number of

 

 

 

 

 

 

 

 

Annual

 

 

 

 

SNO Leases

 

 

GLA

 

 

ABR

 

 

Rent PSF

 

 

As of December 31, 2022

 

 

15

 

 

 

141

 

 

$

3,355

 

 

$

23.79

 

 

Sold / terminated

 

 

(8

)

 

 

(58

)

 

 

(1,071

)

 

 

18.47

 

 

Signed

 

 

2

 

 

 

76

 

 

 

801

 

 

 

10.54

 

 

As of March 31, 2023

 

 

9

 

 

 

159

 

 

$

3,085

 

 

$

19.28

 

 

 

Premier Mixed-Use

The table below provides a summary of all signed leases at Premier assets as of March 31, 2023, including unconsolidated entities at the Company’s proportional share:

 

Number of

 

 

Leased

 

 

% of Total

 

 

Net Annual

 

 

% of Total

 

 

Net Annual

 

Tenant

Leases

 

 

GLA

 

 

Leasable GLA

 

 

Base Rent

 

 

Annual Rent

 

 

Rent PSF

 

In-place retail leases

 

22

 

 

 

50

 

 

 

12.8

%

 

$

3,215

 

 

 

17.6

%

 

$

64.30

 

In-place office leases

 

1

 

 

 

62

 

 

 

15.7

%

 

 

4,220

 

 

 

23.2

%

 

 

68.06

 

SNO retail leases as of December 31, 2022(1)

 

27

 

 

 

111

 

 

 

 

 

 

8,612

 

 

 

 

 

 

77.59

 

Opened

 

(6

)

 

 

(8

)

 

 

 

 

 

(503

)

 

 

 

 

 

62.88

 

Signed

 

1

 

 

 

8

 

 

 

 

 

 

570

 

 

 

 

 

 

71.25

 

SNO retail leases as of March 31, 2023(1)

 

22

 

 

 

111

 

 

 

28.2

%

 

 

8,679

 

 

 

47.6

%

 

 

78.19

 

SNO office leases as of December 31, 2022(1)

 

4

 

 

 

108

 

 

 

 

 

$

6,329

 

 

 

 

 

 

58.60

 

Opened

 

(1

)

 

 

(62

)

 

 

 

 

$

(4,220

)

 

 

 

 

 

68.06

 

SNO retail leases as of March 31, 2023(1)

 

3

 

 

 

46

 

 

 

11.8

%

 

$

2,109

 

 

 

11.6

%

 

 

45.85

 

Total diversified leases as of March 31, 2023

 

48

 

 

 

270

 

 

 

68.5

%

 

$

18,223

 

 

 

100.0

%

 

$

67.49

 

(1) SNO = Signed not yet opened leases

 

 

 

 

 

 

 

 

 

 

(2) In thousands except number of leases and PSF data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

Top Tenants

March 31, 2023

(rent in thousands)

 

The following table lists the top tenants in the portfolio as of March 31, 2023, based on signed leases and including Unconsolidated Properties presented at the Company’s proportional share:

 

Number of

 

 

Total

 

% of Total

 

Tenant

Leases

SF

 

Rent

 

Rent

Concepts / Brands

Dick's Sporting Goods

6

 

382,708

 

 

7,175

 

11.2%

 

Amazon

2

 

99,193

 

 

5,435

 

8.5%

 

Dave & Buster's

5

 

158,879

 

 

4,808

 

7.5%

 

Primark

3

 

115,685

 

 

3,040

 

4.7%

 

Round One Entertainment

3

 

132,445

 

 

2,866

 

4.5%

 

Nordstrom Rack

3

 

116,868

 

 

2,578

 

4.0%

 

Floor & Décor

2

 

147,971

 

 

2,035

 

3.2%

 

Mixtura

1

 

22,038

 

 

1,820

 

2.8%

 

Cinemark

2

 

59,470

 

 

1,614

 

2.5%

 

Pinstripes

1

 

26,515

 

 

1,482

 

2.3%

 

Whole Foods

2

 

71,235

 

 

1,258

 

2.0%

 

TJX

3

 

63,823

 

 

1,056

 

1.6%

TJ Maxx, Marshalls, HomeGoods, HomeSense, Sierra Trading Post

CCRM

1

 

18,179

 

 

1,000

 

1.6%

 

Industrious

1

 

26,501

 

 

999

 

1.6%

 

GameTime

1

 

49,811

 

 

996

 

1.6%

 

Ulta Salon

3

 

31,751

 

 

892

 

1.4%

 

BJ's Wholesale Club

1

 

52,516

 

 

840

 

1.3%

 

Grupo Carolo

1

 

7,742

 

 

774

 

1.2%

 

Ashley Furniture

1

 

35,320

 

 

766

 

1.2%

 

Darden

3

 

23,818

 

 

721

 

1.1%

Longhorn Steakhouse, Olive Garden, Seasons 52, Yardhouse, Bahama Breeze, Cheddar's

Total

45

 

1,642,468

 

 

42,155

 

65.8%

 

 

 

11

Multi-tenant Retail

 

Consolidated Properties

 

 

 

 

 

 

 

Total

 

 

Leased

 

 

SNO

 

 

 

 

Land

 

 

 

Property Address

 

City

 

State

 

GLA (1)

 

 

SF (1)

 

 

SF (1)

 

 

Leased (1)

 

Acres

 

 

Significant Tenants (1)

575 Fletcher Parkway

 

El Cajon

 

CA

 

 

227,300

 

 

 

184,400

 

 

 

-

 

 

81.1%

 

 

20

 

 

Ashley Furniture, Bob's Discount Furniture, Burlington Stores, Extra Space Storage

40710 Winchester Road

 

Temecula

 

CA

 

 

126,500

 

 

 

112,800

 

 

 

8,000

 

 

95.5%

 

 

10

 

 

Round One Entertainment, Dick's Sporting Goods, Texas Roadhouse

145 West Hillcrest Drive

 

Thousand Oaks

 

CA

 

 

172,000

 

 

 

113,700

 

 

 

-

 

 

66.1%

 

 

11

 

 

Dave & Busters, DSW, Nordstrom Rack

3111 East Colonial Drive

 

Orlando

 

FL

 

 

107,600

 

 

 

94,300

 

 

 

2,300

 

 

89.8%

 

 

13

 

 

Floor & Décor, Aspen Dental, Del Taco

2300 Tyrone Boulevard North

 

St. Petersburg

 

FL

 

 

125,700

 

 

 

97,700

 

 

 

28,000

 

 

100.0%

 

 

13

 

 

Dick's Sporting Goods, Five Below, PetSmart, Verizon

200 Grossman Drive

 

Braintree

 

MA

 

 

85,100

 

 

 

47,600

 

 

 

37,500

 

 

100.0%

 

 

34

 

 

Nordstrom Rack, Ulta Beauty

1500 South Willow Street

 

Manchester

 

NH

 

 

105,700

 

 

 

80,400

 

 

 

-

 

 

76.1%

 

 

11

 

 

Dick's Sporting Goods, Dave & Buster's

1640 Route 22

 

Watchung

 

NJ

 

 

124,900

 

 

 

117,000

 

 

 

7,900

 

 

100.0%

 

 

12

 

 

Cinemark, HomeGoods, Sierra Trading Post, Ulta Beauty, Chick-fil-A , City MD, Starbucks

160 North Gulph Road

 

King of Prussia (2)

 

PA

 

 

208,700

 

 

 

174,500

 

 

 

-

 

 

83.6%

 

 

14

 

 

Dick's Sporting Goods, Primark, Outback Steakhouse, Yardhouse, Dave & Busters

12000 Fair Oaks Mall

 

Fairfax

 

VA

 

 

212,700

 

 

 

154,400

 

 

 

-

 

 

72.6%

 

 

15

 

 

Dave & Busters, Dick's Sporting Goods

141 West Lee Highway

 

Warrenton

 

VA

 

 

71,500

 

 

 

62,400

 

 

 

-

 

 

87.3%

 

 

9

 

 

HomeGoods, Ulta, Five Below

27001 U.S. 19 North

 

Clearwater

 

FL

 

 

212,900

 

 

 

75,500

 

 

 

-

 

 

35.5%

 

 

14

 

 

Whole Foods, Nordstrom Rack

1425 Central Avenue

 

Albany

 

NY

 

 

238,200

 

 

 

59,600

 

 

 

76,300

 

 

57.1%

 

 

21

 

 

Whole Foods, Ethan Allen

Total

 

 

 

 

 

 

2,018,800

 

 

 

1,374,300

 

 

 

160,000

 

 

76.0%

 

 

198

 

 

 

(1) Based on signed leases as of March 31, 2023; GLA presented at the Company’s proportional share

(2) Property is subject to a ground lease

 

 

12

Residential

 

Consolidated Properties

 

 

 

 

 

 

Land

 

 

% of Auxiliary

 

Auxiliary

 

 

 

Property Address

 

City

 

State

 

Acres

 

 

Leased SF (1)

 

Leased SF (1)

 

 

Significant Tenants (1)

5261 Arlington Avenue

 

Riverside - Resi

 

CA

 

 

14

 

 

0%

 

 

-

 

 

n/a

5261 Arlington Avenue

 

Riverside - Retail (2)

 

CA

 

 

5

 

 

100%

 

 

33,200

 

 

Bank of America, Aldi

Total

 

 

 

 

 

 

19

 

 

100%

 

 

33,200

 

 

 

(1) Based on signed leases as of March 31, 2023; GLA presented at the Company’s proportional share

(2) Riverside Retail doesn’t include residential but includes retail leasing that is 100% SRG owned and complementary to the Residential developments at the sites.

 

Joint Ventures

Brookfield Retail Partners (formerly GGP, Inc.) Joint Venture Properties

 

 

 

 

 

 

 

 

 

Land

 

 

% of Auxiliary

 

Auxiliary

 

 

 

Mall Name

 

City

 

State

 

Joint Venture

 

Acres

 

 

Leased SF

 

SF (1)

 

 

Significant Tenants (1)

Alderwood

 

Lynnwood (2)

 

WA

 

GGP I JV

 

 

12

 

 

65.5%

 

 

31,900

 

 

Dave & Busters, Cheesecake Factory, Fogo De Chao, Shake Shack

(1) Based on signed leases as of March 31, 2023; GLA presented at the Company’s proportional share

(2) Indicates assets that are put right eligible as of May 9, 2023

 

13

Premier Mixed-Use Properties

 

Consolidated Properties

 

 

 

 

 

 

Total

 

 

Leased

 

 

SNO

 

 

 

 

 

Land

 

 

Property Address

 

City

 

State

 

GLA (1)

 

 

SF (1)

 

 

SF (1)

 

 

Leased (1)

 

 

Acres

 

Site Opportunities

19505 Biscayne Boulevard

 

Aventura

 

FL

 

 

216,100

 

 

 

-

 

 

 

143,900

 

 

 

66.6

%

 

13

 

Retail

5900 Glades Road

 

Boca Raton

 

FL

 

 

4,200

 

 

 

4,200

 

 

 

-

 

 

 

100.0

%

 

19

 

Retail

195 North Broadway

 

Hicksville

 

NY

 

 

7,600

 

 

 

7,600

 

 

 

-

 

 

 

100.0

%

 

30

 

Retail

13131 Preston Road

 

Dallas

 

TX

 

 

-

 

 

 

-

 

 

 

-

 

 

 

0.0

%

 

23

 

Residential, Retail, Office

2200 148th Avenue Northeast

 

Redmond

 

WA

 

 

7,500

 

 

 

7,500

 

 

 

-

 

 

 

100.0

%

 

15

 

Residential, Retail, Office

Total

 

 

 

 

 

 

235,400

 

 

 

19,300

 

 

 

143,900

 

 

 

69.3

%

 

100

 

 

 

Joint Ventures

Invesco Real Estate Joint Venture Properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Leased

 

 

SNO

 

 

 

 

Land

 

 

Property Address

 

City

 

State

 

GLA (1)

 

 

SF (1)

 

 

SF (1)

 

 

Leased (1)

 

Acres

 

Site Opportunities

302 Colorado Ave

 

Santa Monica

 

CA

 

 

51,500

 

 

 

-

 

 

 

-

 

 

0.0%

 

3

 

Residential, Retail, Office

4575 La Jolla Village Dr

 

San Diego

 

CA

 

 

106,200

 

 

 

92,800

 

 

 

13,400

 

 

100.0%

 

13

 

Life Sciences / Office, Retail

5901 Duke St

 

Alexandria

 

VA

 

 

-

 

 

 

-

 

 

 

-

 

 

0.0%

 

41

 

Residential

Total

 

 

 

 

 

 

157,700

 

 

 

92,800

 

 

 

13,400

 

 

67.3%

 

57

 

 

(1) Based on signed leases as of March 31, 2023; GLA presented at the Company’s proportional share

 

14

Other Unconsolidated Entities

Other Joint Ventures

 

Brookfield Retail Partners (formerly GGP, Inc.) Joint Venture Properties

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

In-Place

 

 

SNO

 

 

 

 

Land

 

 

Mall Name

 

City

 

State

 

Joint Venture

 

SF (1)

 

 

SF (1)

 

 

SF (1)

 

 

Leased (1)

 

Acres

 

Significant Tenants (1)

Altamonte Mall

 

Altamonte Springs

 

FL

 

GGP II JV

 

 

93,500

 

 

 

4,700

 

 

 

-

 

 

5.0%

 

17

 

n/a

Coastland Center

 

Naples (2)

 

FL

 

GGP II JV

 

 

36,300

 

 

 

28,300

 

 

 

8,000

 

 

100.0%

 

12

 

CMX Cinebistro, Uncle Julio’s

Willowbrook Mall

 

Wayne (2)

 

NJ

 

GGP II JV

 

 

132,700

 

 

 

105,200

 

 

 

-

 

 

79.3%

 

41

 

Cinemark, Dave & Busters, Yardhouse, BJ's Wholesale

Stonebriar Centre

 

Frisco

 

TX

 

GCP I JV

 

 

87,500

 

 

 

6,000

 

 

 

-

 

 

6.9%

 

11

 

n/a

Total

 

 

 

 

 

 

 

 

350,000

 

 

 

144,200

 

 

 

8,000

 

 

43.5%

 

81

 

 

Simon Joint Venture Properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Leased

 

 

SNO

 

 

 

 

Land

 

 

Mall Name

 

City

 

State

 

Joint Venture

 

GLA (1)

 

 

SF (1)

 

 

SF (1)

 

 

Leased (1)

 

Acres

 

Significant Tenants (1)

Santa Rosa Plaza

 

Santa Rosa

 

CA

 

Simon JV

 

 

82,700

 

 

 

-

 

 

 

-

 

 

0.0%

 

7

 

n/a

The Shops at Nanuet

 

Nanuet

 

NY

 

Simon JV

 

 

110,700

 

 

 

-

 

 

 

-

 

 

0.0%

 

14

 

n/a

Barton Creek Square

 

Austin

 

TX

 

Simon JV

 

 

82,300

 

 

 

-

 

 

 

-

 

 

0.0%

 

16

 

n/a

Total

 

 

 

 

 

 

 

 

275,700

 

 

 

-

 

 

 

-

 

 

0.0%

 

37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Macerich Joint Venture Properties

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Leased

 

 

SNO

 

 

 

 

Land

 

 

Mall Name

 

City

 

State

 

Joint Venture

 

GLA (1)

 

 

SF (1)

 

 

SF (1)

 

 

Leased (1)

 

Acres

 

Significant Tenants (1)

Chandler Fashion Center

 

Chandler

 

AZ

 

Macerich JV

 

 

70,300

 

 

 

5,000

 

 

 

-

 

 

7.1%

 

10

 

Firestone

Los Cerritos Center

 

Cerritos

 

CA

 

Macerich JV

 

 

138,800

 

 

 

-

 

 

 

-

 

 

0.0%

 

20

 

n/a

Danbury Fair

 

Danbury (2)

 

CT

 

Macerich JV

 

 

88,000

 

 

 

24,700

 

 

 

63,300

 

 

100.0%

 

12

 

Primark, Target

Freehold Raceway Mall

 

Freehold

 

NJ

 

Macerich JV

 

 

68,800

 

 

 

32,700

 

 

 

-

 

 

47.5%

 

10

 

Primark, Bob's Discount Furniture

Washington Square Mall

 

Portland

 

OR

 

Macerich JV

 

 

114,300

 

 

 

-

 

 

 

-

 

 

0.0%

 

4

 

n/a

Total

 

 

 

 

 

 

 

 

480,200

 

 

 

62,400

 

 

 

63,300

 

 

26.2%

 

56

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

Leased

 

 

SNO

 

 

 

 

Land

 

 

Property Address

 

City

 

State

 

Joint Venture

 

GLA (1)

 

 

SF (1)

 

 

SF (1)

 

 

Leased (1)

 

Acres

 

Significant Tenants (1)

12625 North Interstate Highway 35

 

Austin

 

TX

 

RD Development JV

 

 

-

 

 

 

-

 

 

 

-

 

 

0.0%

 

11

 

n/a

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Based on signed leases as of March 31, 2023; GLA presented at the Company’s proportional share

(2) Indicates assets that are put right eligible as of May 9, 2023

 

15

Non-core Properties

 

Consolidated Properties

 

 

 

 

 

 

Total

 

 

Leased

 

 

SNO

 

 

 

 

Land

 

 

 

Property Address

 

City

 

State

 

GLA (1)

 

 

SF (1)

 

 

SF (1)

 

 

Leased (1)

 

Acres

 

 

Significant Tenants (1)

3930 McCain Boulevard

 

North Little Rock

 

AR

 

 

177,300

 

 

 

13,000

 

 

 

-

 

 

7.3%

 

 

15

 

 

Aspen Dental, Longhorn Steakhouse

3150 South 4th Avenue

 

Yuma

 

AZ

 

 

90,100

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

15

 

 

n/a

3751 South Dogwood Road

 

El Centro

 

CA

 

 

9,700

 

 

 

9,700

 

 

 

-

 

 

100.0%

 

 

1

 

 

n/a

1011 West Olive Avenue

 

Merced (3)

 

CA

 

 

92,700

 

 

 

-

 

 

 

5,300

 

 

5.7%

 

 

9

 

 

Chilis

1400 East 104th Avenue

 

Thornton

 

CO

 

 

193,700

 

 

 

61,700

 

 

 

-

 

 

31.9%

 

 

23

 

 

Vasa Fitness

1625 Northwest 107th Avenue

 

Doral

 

FL

 

 

195,600

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

13

 

 

n/a

733 North Highway 231

 

Panama City

 

FL

 

 

134,300

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

15

 

 

n/a

7171 North Davis Highway

 

Pensacola

 

FL

 

 

7,900

 

 

 

7,900

 

 

 

-

 

 

100.0%

 

 

14

 

 

Bubba's 33

4600 1st Avenue Northeast

 

Cedar Rapids

 

IA

 

 

146,300

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

12

 

 

n/a

5050 South Kedzie Avenue

 

Chicago (2)

 

IL

 

 

175,900

 

 

 

17,200

 

 

 

-

 

 

9.8%

 

 

9

 

 

Chuck E Cheese

3231 Chicago Road

 

Steger

 

IL

 

 

101,700

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

3

 

 

n/a

4000 Meadows Lane

 

Las Vegas

 

NV

 

 

132,600

 

 

 

42,500

 

 

 

-

 

 

32.1%

 

 

11

 

 

Round One Entertainment

5400 Meadowood Mall Circle

 

Reno

 

NV

 

 

174,900

 

 

 

59,300

 

 

 

-

 

 

33.9%

 

 

3

 

 

Round One Entertainment, 4 Wheel Parts

317 Greece Ridge Center Drive

 

Rochester

 

NY

 

 

139,600

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

14

 

 

n/a

2700 Miamisburg Centerville Road

 

Dayton

 

OH

 

 

13,400

 

 

 

13,400

 

 

 

-

 

 

100.0%

 

 

5

 

 

Outback Steakhouse, Hook & Reel

4400 South Western Avenue

 

Oklahoma City

 

OK

 

 

147,500

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

14

 

 

Vasa Fitness

1675 West 49th Street

 

Hialeah

 

FL

 

 

153,200

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

15

 

 

n/a

4000 North Shepherd

 

Houston

 

TX

 

 

201,600

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

12

 

 

n/a

8000 West Broward Boulevard

 

Plantation

 

FL

 

 

204,100

 

 

 

-

 

 

 

49,800

 

 

24.4%

 

 

18

 

 

GameTime

15700 Emerald Way

 

Bowie

 

MD

 

 

126,400

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

11

 

 

n/a

425 Rice Street

 

St. Paul (2)

 

MN

 

 

201,900

 

 

 

100

 

 

 

-

 

 

0.0%

 

 

17

 

 

n/a

1180 Southeast 82nd Avenue

 

Happy Valley

 

OR

 

 

139,800

 

 

 

45,000

 

 

 

-

 

 

32.2%

 

 

12

 

 

Dick's Sporting Goods

6515 East Southern Avenue

 

Mesa

 

AZ

 

 

136,000

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

5

 

 

n/a

7611 West Thomas Road

 

Phoenix

 

AZ

 

 

144,500

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

5

 

 

n/a

6950 West 130th Street

 

Middleburg Heights

 

OH

 

 

369,500

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

19

 

 

n/a

7875 Johnnycake Ridge Road

 

Mentor

 

OH

 

 

215,300

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

20

 

 

n/a

2800 North Germantown Parkway

 

Cordova (2)

 

TN

 

 

160,600

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

12

 

 

n/a

100 Inland Center

 

San Bernardino

 

CA

 

 

264,700

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

20

 

 

n/a

850 Hartford Turnpike

 

Waterford

 

CT

 

 

149,200

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

11

 

 

n/a

4125 Cleveland Avenue

 

Ft. Myers

 

FL

 

 

146,800

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

12

 

 

n/a

3800 US Highway 98 North

 

Lakeland

 

FL

 

 

156,200

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

12

 

 

n/a

14250 Buck Hill Road

 

Burnsville

 

MN

 

 

167,300

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

15

 

 

n/a

3001 White Bear Avenue North

 

Maplewood

 

MN

 

 

175,000

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

14

 

 

n/a

3207 Solomons Island Road

 

Edgewater

 

MD

 

 

122,000

 

 

 

-

 

 

 

-

 

 

0.0%

 

 

14

 

 

n/a

Total

 

 

 

 

 

 

5,167,300

 

 

 

269,800

 

 

 

55,100

 

 

6.3%

 

 

418

 

 

 

 

(1) Based on signed leases as of March 31, 2023; GLA presented at the Company’s proportional share

(2) Indicates assets that have been sold subsequent to March 31, 2023

(3) Indicates assets with a partial sale subsequent to March 31, 2023

 

16

Sold Properties through March 31, 2023

 

 

 

 

 

 

 

 

 

Total

 

 

In-Place

 

 

SNO

 

 

 

 

2023 Qtr

 

Property Address

 

City

 

State

 

Full / Partial Sale

 

SF (1)

 

 

SF (1)

 

 

SF (1)

 

 

Leased (1)

 

Sold

 

2 Orland Square Drive

 

Orland Park

 

IL

 

Full Site

 

 

202,800

 

 

 

-

 

 

 

-

 

 

0.0%

 

Q1

 

4000 Jericho Turnpike

 

East Northport

 

NY

 

Full Site

 

 

179,800

 

 

 

167,600

 

 

 

-

 

 

93.2%

 

Q1

 

12025 North 32nd Street

 

Phoenix

 

AZ

 

Full Site

 

 

151,200

 

 

 

151,200

 

 

 

-

 

 

100.0%

 

Q1

 

2860 South Highland Avenue

 

Lombard

 

IL

 

Full Site

 

 

139,300

 

 

 

139,300

 

 

 

-

 

 

100.0%

 

Q1

 

7503 West Cermak Road

 

North Riverside

 

IL

 

Full Site

 

 

214,700

 

 

 

163,900

 

 

 

19,700

 

 

85.5%

 

Q1

 

2500 Wabash Avenue

 

Springfield

 

IL

 

Full Site

 

 

119,400

 

 

 

108,000

 

 

 

11,400

 

 

100.0%

 

Q1

 

4201 Coldwater Road

 

Ft. Wayne

 

IN

 

Full Site

 

 

84,100

 

 

 

76,700

 

 

 

6,200

 

 

98.6%

 

Q1

 

101 West Lincoln Highway

 

Merrillville

 

IN

 

Full Site

 

 

171,300

 

 

 

163,000

 

 

 

1,600

 

 

96.1%

 

Q1

 

4700 2nd Avenue

 

Kearney

 

NE

 

Full Site

 

 

64,900

 

 

 

64,900

 

 

 

-

 

 

100.0%

 

Q1

 

4100 Belden Village Avenue Northwest

 

Canton

 

OH

 

Full Site

 

 

192,300

 

 

 

128,300

 

 

 

10,000

 

 

71.9%

 

Q1

 

4570 Poplar Avenue

 

Memphis

 

TN

 

Full Site

 

 

116,000

 

 

 

101,200

 

 

 

8,800

 

 

94.8%

 

Q1

 

12625 North Interstate Highway 35

 

Austin

 

TX

 

Full Site

 

 

52,700

 

 

 

45,000

 

 

 

-

 

 

85.4%

 

Q1

 

9484 Dyer Street

 

El Paso

 

TX

 

Full Site

 

 

107,800

 

 

 

99,100

 

 

 

-

 

 

91.9%

 

Q1

 

12605 North Gessner Road

 

Houston

 

TX

 

Full Site

 

 

134,000

 

 

 

134,000

 

 

 

-

 

 

100.0%

 

Q1

 

201 Central Park Mall

 

San Antonio

 

TX

 

Full Site

 

 

164,600

 

 

 

158,200

 

 

 

-

 

 

96.1%

 

Q1

 

5200 South 76th Street

 

Greendale

 

WI

 

Full Site

 

 

217,600

 

 

 

133,700

 

 

 

-

 

 

61.4%

 

Q1

 

53 West Towne Mall

 

Madison

 

WI

 

Full Site

 

 

110,600

 

 

 

110,600

 

 

 

-

 

 

100.0%

 

Q1

 

2501 Irving Mall

 

Irving

 

TX

 

Partial Site

 

 

94,865

 

 

 

-

 

 

 

-

 

 

0.0%

 

Q1

 

2010 North Main Street

 

Layton

 

UT

 

Full Site

 

 

82,700

 

 

 

67,500

 

 

 

-

 

 

81.6%

 

Q1

 

7801 Rivers Avenue

 

Charleston

 

SC

 

Full Site

 

 

106,200

 

 

 

52,900

 

 

 

-

 

 

49.8%

 

Q1

 

1209 Plaza Drive

 

West Covina - Retail

 

CA

 

Full Site

 

 

11,000

 

 

 

11,000

 

 

 

-

 

 

100.0%

 

Q1

 

1209 Plaza Drive

 

West Covina - Resi

 

CA

 

Full Site

 

 

11,000

 

 

 

11,000

 

 

 

-

 

 

100.0%

 

Q1

 

2501 Irving Mall

 

Irving

 

TX

 

Partial Site

 

 

4,992

 

 

 

4,992

 

 

 

-

 

 

100.0%

 

Q1

 

2501 Irving Mall

 

Irving

 

TX

 

Partial Site

 

 

7,500

 

 

 

7,500

 

 

 

-

 

 

100.0%

 

Q1

 

3636 North Blackstone Avenue

 

Fresno

 

CA

 

Full Site

 

 

201,800

 

 

 

43,400

 

 

 

-

 

 

21.5%

 

Q1

 

6301 Northwest Loop 410

 

Ingram

 

TX

 

Full Site

 

 

169,900

 

 

 

-

 

 

 

-

 

 

0.0%

 

Q1

 

600 Lee Boulevard

 

Yorktown Heights

 

NY

 

Full Site

 

 

153,200

 

 

 

38,500

 

 

 

-

 

 

25.1%

 

Q1

 

Total

 

 

 

 

 

 

 

 

3,266,257

 

 

 

2,181,492

 

 

 

57,700

 

 

68.6%

 

 

 

(1) Based on signed leases as of March 31, 2023; GLA presented at the Company’s proportional share

 

 

 

17

REA Status by Sites and Category

 

 

 

No / Expired REA

 

 

Expires in <5 years

 

 

Expires in >5 years

 

 

Total

 

MT Retail

 

 

3

 

 

 

-

 

 

 

10

 

 

 

13

 

Premier Mixed-use

 

 

6

 

 

 

1

 

 

 

1

 

 

 

8

 

Joint Venture (Residential)

 

 

3

 

 

 

-

 

 

 

-

 

 

 

3

 

Joint Venture (Mall REIT)

 

 

1

 

 

 

-

 

 

 

11

 

 

 

12

 

Joint Venture )(Other

 

 

-

 

 

 

-

 

 

 

1

 

 

 

1

 

Sell

 

 

9

 

 

 

3

 

 

 

23

 

 

 

35

 

Total

 

 

22

 

 

 

4

 

 

 

46

 

 

 

72

 

% of Total

 

 

31

%

 

 

6

%

 

 

64

%

 

 

100

%

 

18

Non-GAAP Financial Measures

The Company makes reference to NOI and Total NOI which are financial measures that include adjustments to accounting principles generally accepted in the United States (“GAAP”).

Neither of NOI or Total NOI are measures that (i) represent cash flow from operations as defined by GAAP; (ii) are indicative of cash available to fund all cash flow needs, including the ability to make distributions; (iii) are alternatives to cash flow as a measure of liquidity; or (iv) should be considered alternatives to net income (which is determined in accordance with GAAP) for purposes of evaluating the Company’s operating performance. Reconciliations of these measures to the respective GAAP measures the Company deems most comparable have been provided in the tables accompanying this press release.

Net Operating Income (“NOI”) and Total NOI

NOI is defined as income from property operations less property operating expenses. Other real estate companies may use different methodologies for calculating NOI, and accordingly the Company’s depiction of NOI may not be comparable to other real estate companies. The Company believes NOI provides useful information regarding Seritage, its financial condition, and results of operations because it reflects only those income and expense items that are incurred at the property level.

The Company also uses Total NOI, which includes its proportional share of unconsolidated properties. This form of presentation offers insights into the financial performance and condition of the Company as a whole given the Company’s ownership of unconsolidated properties that are accounted for under GAAP using the equity method.

The Company also considers NOI and Total NOI to be a helpful supplemental measure of its operating performance because it excludes from NOI variable items such as termination fee income, as well as non-cash items such as straight-line rent and amortization of lease intangibles.

 

19