srg-ex992

Seritage Growth Properties (NYSE: SRG) (“Seritage” or the “Company”) is a fully-integrated, self-administered and self-managed retail REIT with interests in 211 wholly-owned properties and 26 joint venture properties totaling approximately 37.5 million square feet of gross leasable area (“GLA”) across 48 states and Puerto Rico.

On June 11, 2015, Sears Holdings Corporation (“Sears Holdings”) effected a rights offering (the “Rights Offering”) to Sears Holdings stockholders to purchase common shares of Seritage in order to fund, in part, the $2.7 billion acquisition of 234 of Sears Holdings’ owned properties and one of its ground leased properties (the “Wholly Owned Properties”), as well as its 50% interests in three joint ventures that collectively owned 28 properties, ground leased one property and leased two properties (collectively, the “Original JV Properties”) (collectively, the “Transaction”). The Rights Offering ended on July 2, 2015, and the Company’s Class A common shares were listed on the New York Stock Exchange on July 6, 2015.

On July 7, 2015, the Company completed the Transaction with Sears Holdings and commenced operations. The Company’s only operations prior to the completion of the Rights Offering and Transaction were those incidental to the completion of such activities.

As of September 30, 2018, pursuant to a master lease (the “Master Lease”), 129 of the Company’s wholly-owned properties are leased to and are operated under either the Sears or Kmart brand. The Master Lease provides the Company with the right to recapture certain space from Sears Holdings at each property for retenanting or redevelopment purposes. At 64 properties, diversified, non-Sears tenants occupy a portion of leasable space alongside Sears and Kmart, 62 properties are leased only to diversified, non-Sears tenants and 20 properties are vacant. The Company also owns 50% interests in 26 properties through joint venture investments. A portion of the space at 22 of the Company’s joint venture properties is also leased to Sears Holdings under master lease agreements (the “JV Master Leases”) that provide for similar recapture rights as the Master Lease governing the Company’s wholly-owned properties.

There are 46 properties subject to previously exercised recapture or termination notices, and four properties under contract for sale, for which Sears was still making rental payments. Taking into account this recapture, termination and transaction activity, we leased space at 82 wholly-owned properties and 19 JV properties to Sears Holdings as of September 30, 2018.

Unless the context indicates otherwise, references in this supplemental information package (the "Supplemental") to "Seritage Growth,” “Seritage,” the “Company,” or “SRG” refer to Seritage Growth Properties and its subsidiaries. Additionally, where reference is made to "GAAP", this refers to accounting principles generally accepted in the United States.

	Three Months Ended September 30,					Nine Months Ended September 30,
Financial Results	2018			2017		2018			2017
Net income (loss) attributable to Seritage common shareholders (page 3)	$	(23,441	)	$	10,514	$	(22,337	)	$	(30,543	)
Total NOI (page 5)		35,713			43,586		109,052			135,198
FFO (page 7)		(433	)		25,767		17,102			80,559
Company FFO (page 7)		(774	)		17,591		20,184			70,275
Net income (loss) per diluted share attributable to Seritage common shareholders (page 3)	$	(0.66	)	$	0.31	$	(0.63	)	$	(0.91	)
FFO per diluted share (page 7)		(0.01	)		0.46		0.31			1.45
Company FFO per diluted share (page 7)		(0.01	)		0.32		0.36			1.26
Wtd. avg. diluted shares - EPS		35,598			33,841		35,535			33,685
Wtd. avg diluted shares - FFO/share		55,717			55,673		55,700			55,601
Stock trading price range	$41.51 to $51.53			$41.49 to $48.98		$34.50 to $51.53			$38.76 to $48.98

						As of			As of
Financial Ratios (page 4)						September 30, 2018			September 30, 2017
Total debt to total market capitalization							37.7	%		33.5	%
Net debt to adjusted EBITDA							9.5	x		7.3	x
Adjusted EBITDA to cash interest expense							1.6	x		2.2	x

						As of			As of
Property Data (page 10)						September 30, 2018			September 30, 2017
Number of properties							237			258
Gross leasable area (total / at share)						37,540 / 35,186			40,486 / 37,950
Percentage leased (total / at share)						81.2% / 80.8%			90.7% / 90.2%

				As of September 30, 2018
						% of Total
Tenant				Annual Rent		Annual Rent			Annual Rent PSF
Sears Holdings				$	90,805		39.9	%	$	4.73
In-Place Third-Party Leases					61,557		27.1	%		13.20
SNO Third-Party Leases					75,010		33.0	%		16.49
Total				$	227,372		100.0	%	$	8.00

				As of September 30, 2017
						% of Total
Tenant				Annual Rent		Annual Rent			Annual Rent PSF
Sears Holdings				$	122,015		54.6	%	$	4.44
In-Place Third-Party Leases					47,430		21.2	%		12.74
SNO Third-Party Leases					53,868		24.2	%		17.85
Total				$	223,313		100.0	%	$	6.53

	September 30, 2018			December 31, 2017
ASSETS
Investment in real estate
Land	$	700,725		$	799,971
Buildings and improvements		883,042			829,168
Accumulated depreciation		(165,011	)		(139,483	)
		1,418,756			1,489,656
Construction in progress		263,696			224,904
Net investment in real estate		1,682,452			1,714,560
Real estate held for sale		15,144			—
Investment in unconsolidated joint ventures		399,878			282,990
Cash and cash equivalents		581,621			241,569
Restricted cash		—			175,665
Tenant and other receivables, net		45,214			30,787
Lease intangible assets, net		207,947			310,098
Prepaid expenses, deferred expenses and other assets, net		32,780			20,148
Total assets	$	2,965,036		$	2,775,817

LIABILITIES AND EQUITY
Liabilities
Term Loan Facility, net	$	1,598,123		$	—
Mortgage loans payable, net		—			1,202,314
Unsecured term loan, net		—			143,210
Accounts payable, accrued expenses and other liabilities		115,508			109,433
Total liabilities		1,713,631			1,454,957

Commitments and contingencies

Shareholders' Equity
Class A common shares $0.01 par value; 100,000,000 shares authorized; 35,667,521 and 32,415,734 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively		357			324
Class B common shares $0.01 par value; 5,000,000 shares authorized; 1,322,365 and 1,328,866 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively		13			13
Class C common shares $0.01 par value; 50,000,000 shares authorized; nil and 3,151,131 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively		—			31
Series A preferred shares $0.01 par value; 10,000,000 shares authorized; 2,800,000 shares issued and outstanding as of September 30, 2018 and December 31, 2017; liquidation preference of $70,000		28			28
Additional paid-in capital		1,124,461			1,116,060
Accumulated deficit		(279,092	)		(229,760	)
Total shareholders' equity		845,767			886,696
Non-controlling interests		405,638			434,164
Total equity		1,251,405			1,320,860
Total liabilities and equity	$	2,965,036		$	2,775,817

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
REVENUE
Rental income	$	41,152		$	48,167		$	114,070		$	139,526
Tenant reimbursements		15,326			15,881			44,541			47,813
Management and other fee income		115			—			1,029			—
Total revenue		56,593			64,048			159,640			187,339
EXPENSES
Property operating		6,348			4,311			20,122			13,985
Real estate taxes		12,199			11,335			32,797			35,707
Depreciation and amortization		49,830			61,059			134,048			170,293
General and administrative		8,338			5,272			24,808			16,639
Provision for doubtful accounts		87			68			257			119
Total expenses		76,802			82,045			212,032			236,743
Operating loss		(20,209	)		(17,997	)		(52,392	)		(49,404	)
Equity in loss of unconsolidated joint ventures		(2,266	)		(3,686	)		(7,006	)		(4,226	)
Interest and other income		1,162			352			2,298			472
Interest expense		(30,723	)		(18,049	)		(65,004	)		(53,072	)
Change in fair value of interest rate cap		(16	)		(91	)		(23	)		(686	)
Loss before income taxes		(52,052	)		(39,471	)		(122,127	)		(106,916	)
Provision for income taxes		(93	)		—			(437	)		(266	)
Loss before gain on sale of real estate		(52,145	)		(39,471	)		(122,564	)		(107,182	)
Gain on sale of real estate		17,401			13,018			93,419			13,018
Gain on sale of interests in unconsolidated joint ventures		—			43,729			—			43,729
Net (loss) income		(34,744	)		17,276			(29,145	)		(50,435	)
Net loss (income) attributable to non-controlling interests		12,528			(6,762	)		10,486			19,892
Net (loss) income attributable to Seritage	$	(22,216	)	$	10,514		$	(18,659	)	$	(30,543	)
Preferred dividends		(1,225	)		—			(3,678	)		—
Net (loss) income attributable to Seritage common shareholders	$	(23,441	)	$	10,514		$	(22,337	)	$	(30,543	)

Net (loss) income per share attributable to Seritage Class A and Class C common shareholders - Basic	$	(0.66	)	$	0.31		$	(0.63	)	$	(0.91	)
Net (loss) income per share attributable to Seritage Class A and Class C common shareholders - Diluted	$	(0.66	)	$	0.31		$	(0.63	)	$	(0.91	)
Weighted average Class A and Class C common shares outstanding - Basic		35,598			33,774			35,535			33,685
Weighted average Class A and Class C common shares outstanding - Diluted		35,598			33,841			35,535			33,685

	As of			As of
Equity Market Capitalization	September 30, 2018			December 31, 2017
Class A common shares outstanding		35,668			32,416
Class C common shares outstanding		—			3,151
OP units outstanding		20,119			20,218
Total shares & units outstanding		55,787			55,785
Share Price	$	47.49		$	40.46
Equity market capitalization	$	2,649,325		$	2,257,061

Total Market Capitalization
Equity market capitalization	$	2,649,325		$	2,257,061
Total debt		1,600,000			1,355,562
Total market capitalization	$	4,249,325		$	3,612,623

Financial Ratios
Total debt to total market capitalization		37.7	%		37.5	%

Total debt	$	1,600,000		$	1,355,562
Cash and cash equivalents		(581,621	)		(241,569	)
Restricted cash		—			(175,665	)
Net Debt	$	1,018,379		$	938,328

Net debt to Adjusted EBITDA (1)		9.5	x		6.5	x

Gross real estate investments	$	2,329,729		$	2,397,731
Investment in unconsolidated joint ventures		399,878			282,990
Total real estate investments	$	2,729,607		$	2,680,721

Net debt to total real estate investments		37.3	%		35.0	%

Interest expense (net of amounts capitalized) (1)	$	82,044		$	70,012
Amortization of deferred financing costs (1)		(12,551	)		(8,719	)
Cash interest expense (net of amounts capitalized) (1)	$	69,493		$	61,293

Adjusted EBITDA to cash interest expense (net of amounts capitalized) (1)		1.6	x		2.4	x

	Three Months Ended September 30,						Nine Months Ended September 30,
NOI and Total NOI	2018			2017			2018			2017
Net (loss) income	$	(34,744	)	$	17,276		$	(29,145	)	$	(50,435	)
Termination fee income		(6,988	)		(10,596	)		(7,162	)		(17,360	)
Management and other fee income		(115	)		—			(1,029	)		—
Depreciation and amortization		49,830			61,059			134,048			170,293
General and administrative expenses		8,338			5,272			24,808			16,639
Equity in loss of unconsolidated joint ventures		2,266			3,686			7,006			4,226
Gain on sale of interests in unconsolidated joint ventures		—			(43,729	)		—			(43,729	)
Gain on sale of real estate		(17,401	)		(13,018	)		(93,419	)		(13,018	)
Interest and other income		(1,162	)		(352	)		(2,298	)		(472	)
Interest expense		30,723			18,049			65,004			53,072
Change in fair value of interest rate cap		16			91			23			686
Provision for income taxes		93			—			437			266
NOI	$	30,856		$	37,738		$	98,273		$	120,168
NOI of unconsolidated joint ventures		4,337			4,830			14,102			18,328
Straight-line rent adjustment (1)		885			1,230			(2,289	)		(2,396	)
Above/below market rental income/expense (1)		(365	)		(212	)		(1,034	)		(902	)
Total NOI	$	35,713		$	43,586		$	109,052		$	135,198

	Three Months Ended September 30,						Nine Months Ended September 30,
EBITDAre and Company EBITDA	2018			2017			2018			2017
Net (loss) income	$	(34,744	)	$	17,276		$	(29,145	)	$	(50,435	)
Interest expense		30,723			18,049			65,004			53,072
Provision for income and other taxes		93			—			437			266
Depreciation and amortization		49,830			61,059			134,048			170,293
Depreciation and amortization (unconsolidated joint ventures)		3,671			4,755			10,980			18,583
Gain on sale of interests in unconsolidated joint ventures		—			(43,729	)		—			(43,729	)
Gain on sale of real estate		(17,401	)		(13,018	)		(93,419	)		(13,018	)
EBITDAre	$	32,172		$	44,392		$	87,905		$	135,032
Termination fee income		(6,988	)		(10,596	)		(7,162	)		(17,360	)
Change in fair value of interest rate cap		16			91			23			686
Company EBITDA	$	25,200		$	33,887		$	80,766		$	118,358

	Three Months Ended September 30,						Nine Months Ended September 30,
FFO and Company FFO	2018			2017			2018			2017
Net (loss) income	$	(34,744	)	$	17,276		$	(29,145	)	$	(50,435	)
Real estate depreciation and amortization (consolidated properties)		49,266			60,483			132,364			169,158
Real estate depreciation and amortization (unconsolidated joint ventures)		3,671			4,755			10,980			18,583
Gain on sale of interests in unconsolidated joint ventures		—			(43,729	)		—			(43,729	)
Gain on sale of real estate		(17,401	)		(13,018	)		(93,419	)		(13,018	)
Dividends on preferred shares		(1,225	)		—			(3,678	)		—
FFO attributable to common shareholders and unitholders	$	(433	)	$	25,767		$	17,102		$	80,559
Termination fee income		(6,988	)		(10,596	)		(7,162	)		(17,360	)
Change in fair value of interest rate cap		16			91			23			686
Amortization of deferred financing costs		6,631			2,329			10,221			6,390
Company FFO attributable to common shareholders and unitholders	$	(774	)	$	17,591		$	20,184		$	70,275

FFO per diluted common share and unit	$	(0.01	)	$	0.46		$	0.31		$	1.45
Company FFO per diluted common share and unit	$	(0.01	)	$	0.32		$	0.36		$	1.26

Weighted Average Common Shares and Units Outstanding
Weighted average common shares outstanding		35,598			33,841			35,535			33,685
Weighted average OP units outstanding		20,119			21,832			20,165			21,916
Weighted average common shares and units outstanding		55,717			55,673			55,700			55,601

	As of		As of
Debt Summary	September 30, 2018		December 31, 2017
Mortgage notes payable	$	—	$	1,210,562
Interest rate		—	LIBOR + 470
Maturity		—	July 2019

Unsecured Term Loan	$	—	$	145,000
Interest rate		—		6.75	%
Maturity		—	December 2018

Term Loan Facility (drawn / undrawn)	$1,600,000 / 400,000		$	—
Interest rate / undrawn rate	7.00% / 1.00%			—
Maturity	July 2023			—

Restricted Cash
Reserve for redevelopment projects / capital expenditures	$	—	$	137,996
Reserve for property operating expenses		—		21,735
Reserve for environmental remediation		—		10,751
Other, including prepaid rental income		—		2,679
Reserve for deferred maintenance		—		2,504
Total restricted cash	$	—	$	175,665

Prepaid Expenses, Deferred Expenses and Other Assets
Deferred expenses	$	8,147	$	4,813
FF&E		5,994		6,290
Other prepaid expenses		5,142		1,445
Prepaid insurance		4,753		2,352
Other assets		4,673		2,493
Prepaid real estate taxes		4,071		2,732
Interest rate cap		—		23
Total prepaid expenses, deferred expenses and other assets	$	32,780	$	20,148

Accounts Payable, Accrued Expenses and Other Liabilities
Accrued development expenditures	$	25,604	$	21,449
Accrued real estate taxes		21,513		17,091
Dividends and distributions payable		15,659		14,559
Accounts payable and accrued expenses		13,301		9,588
Below-market leases		12,010		14,476
Environmental reserve		9,728		11,322
Prepaid rental income		6,089		4,156
Unearned tenant reimbursements		5,500		10,522
Accrued interest		3,523		3,689
Deferred maintenance		2,581		2,581
Total accounts payable, accrued expenses and other liabilities	$	115,508	$	109,433

	Three Months Ended September 30,						Nine Months Ended September 30,
Select Non-Cash Items	2018			2017			2018			2017
Straight-line rental income
Wholly-owned	$	(1,064	)	$	(1,115	)	$	1,750		$	2,364
Joint ventures		179			(115	)		539			32
Total	$	(885	)	$	(1,230	)	$	2,289		$	2,396

Net amortization of above/below market rental income/expense
Wholly-owned	$	(225	)	$	191		$	590		$	581
Joint ventures		189			21			444			321
Total	$	(36	)	$	212		$	1,034		$	902

Amortization of deferred financing costs	$	(6,631	)	$	(2,329	)	$	(10,221	)	$	(6,390	)
Stock-based compensation expense		(2,210	)		(387	)		(5,589	)		(1,167	)

Dividends
Dividends per Class A and Class C common share	$	0.25		$	0.25		$	0.75		$	0.75
Declaration date	July 24, 2018			July 25, 2017
Record date	Sept 28, 2018			Sept 29, 2017
Payment date	Oct 11, 2018			Oct 12, 2017

The following table provides a summary of the Company’s portfolio, including JV Properties presented at the Company’s proportional share, as of September 30, 2018:

As of September 30, 2018, the portfolio included 119 properties characterized as attached to regional malls and 118 characterized as shopping center or freestanding properties. The following table provides a summary of the portfolio, including JV Properties presented at the Company’s proportional share, based on these property types and signed leases as of September 30, 2018:

The following table provides a summary of annual base rent for the portfolio, including JV Properties presented at the Company’s proportional share, based on signed leases as of September 30, 2018:

The following table lists the top tenants in the portfolio, including JV Properties presented at the Company’s proportional share, based on signed leases as of September 30, 2018:

	Number of		Annual		% of Total
Tenant	Leases		Rent		Annual Rent			Concepts/Brands
Sears Holdings (1)(2)		151	$	90,805		39.9	%	Sears, Sears Auto Center, Kmart
Round One Entertainment		8		7,759		3.4	%
At Home		11		6,592		2.9	%
Dave & Busters		7		6,328		2.8	%
Ross Dress For Less, Inc.		14		5,326		2.3	%	Ross Dress for Less, dd's Discounts
Burlington Stores		8		5,194		2.3	%
Cinemark		4		4,899		2.2	%
Dick's Sporting Goods		5		4,830		2.1	%
Nordstrom Rack		6		4,385		1.9	%
AMC		3		4,202		1.8	%
Blink Fitness		17		3,980		1.8	%
Primark		3		3,925		1.7	%
TJX		9		3,349		1.5	%	TJ Maxx, Marshalls, HomeGoods, HomeSense, Sierra Trading Post
Floor & Décor		3		3,082		1.4	%
24 Hour Fitness		3		2,909		1.3	%
Bed Bath & Beyond		6		2,491		1.1	%	Bed Bath & Beyond, buybuyBaby, Cost Plus World Market, Christmas Tree Shops andThat!

The following table sets forth information regarding the geographic diversification of the portfolio, including JV Properties presented at the Company’s proportional share, based on signed leases as of September 30, 2018:

(in thousands except property count and PSF data)
	Number of		Annual		% of Total			Rent
State	Properties		Rent		Annual Rent			PSF
California		41	$	45,480		20.0	%	$	7.90
Florida		26		29,752		13.1	%		9.22
New York		11		15,409		6.8	%		12.14
Texas		15		11,436		5.0	%		6.93
Illinois		10		10,660		4.7	%		6.71
New Jersey		5		8,807		3.9	%		15.51
Pennsylvania		7		7,676		3.4	%		10.86
Virginia		6		7,418		3.3	%		7.02
Puerto Rico		6		7,083		3.1	%		7.85
Arizona		11		6,986		3.1	%		5.55
Total Top 10		138	$	150,707		66.4	%	$	8.38
Other (1)		99		76,665		33.6	%		7.34
Total		237	$	227,372		100.0	%	$	8.00

The table below provides a summary of the Company’s leasing activity since inception through September 30, 2018, including JV Properties presented at the Company’s proportional share:

(in thousands except number of leases and PSF data)

	Total								Release of Sears Holdings Space
			Leased		Annual		Annual				Leased		Annual		Annual		Releasing
Period	Leases		GLA		Rent		Rent PSF		Leases		GLA		Rent		Rent PSF		Multiple
2015		9		154	$	4,650	$	30.28		6		130	$	3,820	$	29.41		4.4	x
Q1 2016		7		214		6,990		32.60		7		214		6,990		32.60		5.7	x
Q2 2016		15		422		7,240		17.15		13		363		6,440		17.75		4.7	x
Q3 2016		14		543		7,470		13.74		12		456		6,250		13.70		4.0	x
Q4 2016		29		891		14,900		16.72		27		849		13,930		16.41		4.1	x
2016		65		2,070		36,600		17.68		59		1,882		33,610		17.86		4.5	x
Q1 2017		22		535		8,780		16.41		21		530		8,660		16.34		4.0	x
Q2 2017		28		598		11,340		18.95		26		592		11,240		18.99		3.7	x
Q3 2017		21		601		9,770		16.25		18		486		8,730		17.97		4.6	x
Q4 2017		23		872		14,827		17.00		21		868		14,669		16.90		3.8	x
2017		94		2,606		44,717		17.16		86		2,476		43,299		17.49		4.0	x
Q1 2018		20		391		7,915		20.24		19		389		7,891		20.29		4.1	x
Q2 2018		42		714		10,709		15.00		42		714		10,709		15.00		3.7	x
Q3 2018		22		546		7,487		13.71		18		529		7,012		13.26		3.8	x
Total Retail		252		6,481	$	112,078	$	17.29		230		6,120	$	106,341	$	17.38		4.1	x
Other (1)		4		526		3,256
Total		256		7,007	$	115,334

The table below provides a summary of the Company’s SNO leases from March 31, 2018 to September 30, 2018, including JV Properties presented at the Company’s proportional share:

The table below summarizes the Company’s wholly-owned development activity from inception through September 30, 2018:

(in thousands)
					Estimated		Estimated								Estimated
	Number		Project		Development		Project		Projected Annual Income (2)						Incremental
Estimated Project Costs (1)	of Projects		Square Feet		Costs (1)		Costs (1)		Total		Existing		Incremental		Yield (3)
< $10,000		27		1,967	$	124,700	$	124,700	$	21,500	$	4,700	$	16,800
$10,001 - $20,000 (4)		31		3,603		419,000		438,900		61,000		15,300		45,700
> $20,001		21		3,556		763,300		820,100		110,500		22,700		87,800
Announced projects		79		9,126	$	1,307,000	$	1,383,700	$	193,000	$	42,700	$	150,300	10.5 - 11.5%
Acquired projects		15				63,600		63,600
Total projects		94			$	1,370,600	$	1,447,300

The tables below provide brief descriptions of each of the redevelopment projects originated on the Company’s platform since its inception:

Total Project Costs under $10 Million

Total

Estimated

Project

Construction

Substantial

Property

Description

Square Feet

Start

Completion

King of Prussia, PA

Repurpose former auto center space for Outback Steakhouse, Yard House and small shop retail

29,100

Complete

Merrillville, IN

Termination property; redevelop existing store for At Home and small shop retail

132,000

Complete

Elkhart, IN

Termination property; existing store has been released to Big R Stores

86,500

Complete

Bowie, MD

Recapture and repurpose auto center space for BJ's Brewhouse

8,200

Complete

Troy, MI

Partial recapture; redevelop existing store for At Home

100,000

Complete

Rehoboth Beach, DE

Partial recapture; redevelop existing store for andThat! and PetSmart

56,700

Complete

Henderson, NV

Termination property; redevelop existing store for At Home, Seafood City, Blink Fitness and additional retail

144,400

Complete

Cullman, AL

Termination property; redevelop existing store for Bargain Hunt, Tractor Supply and Planet Fitness

99,000

Complete

Hagerstown, MD

Recapture and repurpose auto center space for BJ's Brewhouse, Verizon and additional retail (note: property sold in Q2 2018)

15,400

Complete

Jefferson City, MO

Termination property; redevelop existing store for Orscheln Farm and Home

96,000

Complete

Guaynabo, PR

Partial recapture; redevelop existing store for Planet Fitness, Capri and additional retail and restaurants

56,100

Complete

Ft. Wayne, IN

Site densification (project expansion); new outparcels for BJ's Brewhouse and Chick-Fil-A

12,000

Complete

Albany, NY

Recapture and repurpose auto center space for BJ's Brewhouse, Ethan Allen and additional small shop retail

28,000

Substantially complete

Kearney, NE

Termination property; redevelop existing store for Marshall's, PetSmart, Ross Dress for Less and Five Below

92,500

Substantially complete

Florissant, MO

Site densification; new outparcel for Chick-Fil-A

5,000

Delivered to tenant

Dayton, OH

Recapture and repurpose auto center space for Outback Steakhouse and additional restaurants

14,100

Underway

Q4 2018

Westwood, TX

Termination property; site has been leased to Sonic Automotive and will be repurposed as an auto dealership

213,600

Underway

Q4 2018

New Iberia, LA

Termination property; redevelop existing store for Rouses Supermarkets, Hobby Lobby and small shop retail

93,100

Underway

Q1 2019

North Little Rock, AR

Recapture and repurpose auto center space for LongHorn Steakhouse and additional small shop retail

17,300

Underway

Q2 2019

St. Clair Shores, MI

100% recapture; demolish existing store and develop site for new Kroger grocery store

107,200

Underway

Q2 2019

Hopkinsville, KY

Termination property; redevelop existing store for Bargain Hunt, Farmer's Furniture, Harbor Freight Tools and small shop retail

87,900

Underway

Q2 2019

Mt. Pleasant, PA

Termination property; redevelop existing store for Aldi, Big Lots and additional retail

86,300

Underway

Q3 2019

Oklahoma City, OK

Site densification; new fitness center for Vasa Fitness

59,500

Underway

Q3 2019

Gainesville, FL

Termination property; repurpose existing store as office space for Florida Clinical Practice Association / University of Florida College of Medicine

139,100

Q4 2018

Q4 2019

Layton, UT

Termination property; a portion of the space has been leased to Extra Space Storage and will be repurposed as self storage; existing tenants include Vasa Fitness and small shop retail

172,100

Q1 2019

Q2 2019

Hampton, VA

Site densification; new outparcel for Chick-fil-A

2,200

Q1 2019

Q3 2019

Hialeah, FL

Recapture and repurpose auto center space for restaurants and small shop retail

14,000

Q2 2019

Q1 2020

Total Project Costs $10 - $20 Million

Total

Estimated

Project

Construction

Substantial

Property

Description

Square Feet

Start

Completion

Braintree, MA

100% recapture; redevelop existing store for Nordstrom Rack, Saks OFF 5th and additional retail

90,000

Complete

Honolulu, HI

100% recapture; redevelop existing store for Longs Drugs (CVS), PetSmart and Ross Dress for Less

79,000

Complete

Anderson, SC

100% recapture (project expansion); redevelop existing store for Burlington Stores, Gold's Gym, Sportsman's Warehouse, additional retail and restaurants

111,300

Complete

Madison, WI

Partial recapture; redevelop existing store for Dave & Busters, Total Wine & More, additional retail and restaurants

75,300

Substantially complete

Orlando, FL

100% recapture; demolish and construct new buildings for Floor & Décor, Orchard Supply Hardware, LongHorn Steakhouse, Mission BBQ, Olive Garden and additional small shop retail and restaurants

139,200

Substantially complete

Paducah, KY

Termination property; redevelop existing store for Burlington Stores, Ross Dress for Less and additional retail

102,300

Substantially complete

Springfield, IL

Termination property; redevelop existing store for Burlington Stores, Binny's Beverage Depot, Marshall's, Orangetheory Fitness, Outback Steakhouse, CoreLife Eatery and additional small shop retail

133,400

Substantially complete

Thornton, CO

Termination property; redevelop existing store for Vasa Fitness and additional junior anchors

191,600

Substantially complete

Salem, NH

Densify site with new theatre for Cinemark and recapture and repurpose auto center for restaurant space to join existing tenant Dick's Sporting Goods

71,200

Delivered to tenants

Cockeysville, MD

Partial recapture; redevelop existing store for HomeGoods, Michael's Stores, additional junior anchors and restaurants

83,500

Delivered to tenants

Fairfax, VA

Partial recapture; redevelop existing store and attached auto center for Dave & Busters, additional junior anchors and restaurants

110,300

Underway

Q4 2018

North Hollywood, CA

Partial recapture; redevelop existing store for Burlington Stores and Ross Dress for Less

79,800

Underway

Q1 2019

North Miami, FL

100% recapture; redevelop existing store for Blink Fitness, Burlington Stores, Michael's and Ross Dress for Less

124,300

Underway

Q4 2018

Temecula, CA

Partial recapture; redevelop existing store and detached auto center for Round One, small shop retail and restaurants

65,100

Underway

Q4 2018

Warwick, RI

Termination property (project expansion); redevelop existing store and detached auto center for At Home, BJ's Brewhouse, Raymour & Flanigan, additional retail and restaurants

190,700

Underway

Q4 2018

Hialeah, FL

100% recapture; redevelop existing store for Bed, Bath & Beyond, Ross Dress for Less and dd's Discounts to join current tenant, Aldi

88,400

Underway

Q4 2018

Canton, OH

Partial recapture; redevelop existing store for Dave & Busters and restaurants

83,900

Underway

Q2 2019

North Riverside, IL

Partial recapture; redevelop existing store and detached auto center for Blink Fitness, Round One, additional junior anchors, small shop retail and restaurants

103,900

Underway

Q2 2019

Olean, NY

Termination property (project expansion); redevelop existing store for Marshall's, Ollie's Bargain Basement and additional retail

125,700

Underway

Q2 2019

West Jordan, UT

Termination property (project expansion); redevelop existing store and attached auto center for At Home, Burlington Stores and additional retail

190,300

Underway

Q2 2019

Las Vegas, NV

Partial recapture; redevelop existing store for Round One and additional retail

78,800

Underway

Q3 2019

Roseville, MI

Termination property (project expansion); redevelop existing store for At Home, Hobby Lobby, Chick-fil-A and additional retail

369,800

Underway

Q3 2019

Yorktown Heights, NY

Partial recapture; redevelop existing store for 24 Hour Fitness and additional retail

85,200

Underway

Q4 2019

Charleston, SC

100% recapture (project expansion); redevelop existing store and detached auto center for Burlington Stores and additional retail

126,700

Underway

Q4 2019

Chicago, IL (Kedzie)

Termination property; redevelop existing store for Ross Dress for Less, dd's Discounts, Blink Fitness and additional retail

123,300

Q4 2018

Q4 2019

El Paso, TX

Termination property; redevelop existing store for Ross Dress for Less, dd's Discounts and additional retail

114,700

Q4 2018

Q4 2019

Total Project Costs over $20 Million

Total

Estimated

Project

Construction

Substantial

Property

Description

Square Feet

Start

Completion

Memphis, TN

100% recapture; demolish and construct new buildings for LA Fitness, Nordstrom Rack, Ulta Beauty, Hopdoddy Burger Bar and additional junior anchors, restaurants and small shop retail

135,200

Complete

St. Petersburg, FL

100% recapture; demolish and construct new buildings for Dick's Sporting Goods, Lucky's Market, PetSmart, Five Below, Chili's Grill & Bar, Pollo Tropical, LongHorn Steakhouse, Verizon and additional small shop retail and restaurants

142,400

Complete

West Hartford, CT

100% recapture; redevelop existing store and detached auto center for buybuyBaby, Cost Plus World Market, REI, Saks OFF Fifth, other junior anchors, Shake Shack and additional small shop retail (note: contributed to West Hartford JV in Q2 2018)

147,600

Substantially complete

Wayne, NJ

Partial recapture (project expansion); redevelop existing store and detached auto center for Cinemark, Dave & Busters and additional junior anchors and restaurants (note: contributed to GGP II JV in Q3 2017)

156,700

Delivered to tenant

Carson, CA

100% recapture (project expansion); redevelop existing store for Burlington Stores, Ross Dress for Less, Gold's Gym and additional retail

163,800

Underway

Q1 2019

Watchung, NJ

100% recapture; demolish full-line store and detached auto center and construct new buildings for Cinemark, HomeSense, Sierra Trading Post, Ulta Beauty, Chick-fil-A, small shop retail and additional restaurants

126,700

Underway

Q2 2019

Austin, TX

100% recapture (project expansion); redevelop existing store for AMC Theatres, additional junior anchors and restaurants

177,400

Underway

Q3 2019

El Cajon, CA

100% recapture; redevelop existing store and auto center for Ashley Furniture, Bob's Discount Furniture, Burlington Stores and additional retail and restaurants; a portion of the space has been leased to Extra Space Storage and will be repurposed as self storage

242,700

Underway

Q3 2019

Anchorage, AK

100% recapture; redevelop existing store for Guitar Center, Safeway, Planet Fitness and additional retail to join current tenant, Nordstrom Rack

142,500

Underway

Q4 2019

Aventura, FL

100% recapture; demolish existing store and construct new, multi-level open air retail destination featuring a leading collection of experiential shopping, dining and entertainment concepts alongside a treelined esplanade and activated plazas

216,600

Underway

Q4 2019

East Northport, NY

Termination property; redevelop existing store and attached auto center for AMC Theatres, 24 Hour Fitness, Floor & Decor and small shop retail

179,700

Underway

Q4 2019

Greendale, WI

Termination property; redevelop existing store and attached auto center for Dick's Sporting Goods, Golf Galaxy, Round One, TJ Maxx, additional retail and restaurants

223,800

Underway

Q4 2019

Reno, NV

100% recapture; redevelop existing store and auto center for Round One and additional retail

169,800

Underway

Q4 2019

San Diego, CA

100% recapture; redevelop existing store into two highly-visible, multi-level buildings with exterior facing retail space leased to Equinox Fitness and a premier mix of experiential shopping, dining, and entertainment concepts (note: contributed to UTC JV in Q2 2018)

206,000

Underway

Q4 2019

Santa Monica, CA

100% recapture; redevelop existing building into premier, mixed-use asset featuring unique, small-shop retail and creative office space (note: contributed to Mark 302 JV in Q1 2018)

96,500

Underway

Q4 2019

Tucson, AZ

100% recapture; redevelop existing store and auto center for Round One and additional retail

224,300

Underway

Q4 2019

Fairfield, CA

100% recapture (project expansion); redevelop existing store and auto center for Dave & Busters, AAA Auto Repair Center and additional retail

146,500

Underway

Q1 2020

Roseville, CA

Termination property (project expansion): redevelop existing store and auto center for Cinemark, Round One, AAA Auto Repair Center, additional retail and restaurants

147,400

Underway

Q2 2020

As of September 30, 2018, Sears Holdings had terminated the Master Lease, or provided notice of its intent to terminate the Master Lease, with respect to 87 stores totaling 11.7 million square feet of gross leasable area.

As of September 30, 2018, the Company had completed or commenced redevelopment projects at 38 of the terminated properties and will continue to announce redevelopment activity as new leases are signed to occupy the space formerly occupied by Sears Holdings. As of September 30, 2018, the Company had also sold ten of the terminated properties.

The table below includes the 87 properties at which Sears Holdings has terminated the Master Lease, or provided notice of its intent to terminate the Master Lease, as of September 30, 2018:

Announced

Property

Square Feet

Notice

Termination

Redevelopment

Antioch, CA

95,200

August 2018

December 2018

Columbus, MS

117,100

August 2018

December 2018

Dayton, OH

148,800

August 2018

December 2018

Q2 2017

Flagstaff, AZ

66,200

August 2018

December 2018

Ft. Wayne, IN

213,600

August 2018

December 2018

Q3 2016 / Q3 2017

Jackson, MI

144,200

August 2018

December 2018

Manchester, NH

135,100

August 2018

December 2018

Salem, NH

119,000

August 2018

December 2018

Q4 2017

Savannah, GA

155,700

August 2018

December 2018

Scott Depot, WV

89,800

August 2018

December 2018

Steger, IL

87,400

August 2018

December 2018

Victor, NY

115,300

August 2018

December 2018

West Jordan, UT

117,300

August 2018

December 2018

Q3 2016 / Q3 2018

Chesapeake, VA

169,400

June 2018

November 2018

Clay, NY

138,000

June 2018

November 2018

Havre, MT

94,700

June 2018

November 2018

Newark, CA

145,800

June 2018

November 2018

Oklahoma City, OK

173,700

June 2018

November 2018

Q3 2017

Troy, MI

271,300

June 2018

November 2018

Q3 2016

Virginia Beach, VA

86,900

June 2018

November 2018

Q3 2015

Madison, WI

88,100

June 2018

October 2018

Q2 2016

Thousand Oaks, CA

50,300

June 2018

October 2018

Q3 2015

Cedar Rapids, IA

141,100

April 2018

August 2018

Citrus Heights, CA

280,700

April 2018

August 2018

Gainesville, FL

140,500

April 2018

August 2018

Q2 2018

Maplewood, MN

168,500

April 2018

August 2018

Pensacola, FL

212,300

April 2018

August 2018

Q2 2018

Rochester, NY

128,500

April 2018

August 2018

Roseville, CA

121,000

April 2018

August 2018

Q2 2017 / Q1 2018

San Antonio, TX

187,800

April 2018

August 2018

Q4 2015

Warrenton, VA

113,900

April 2018

August 2018

Q1 2018

Westwood, TX

215,000

June 2017

January 2018 (1)

Q3 2018

Friendswood, TX

166,000

June 2017

November 2017 (1)

Albany, NY

216,200

June 2017

October 2017

Q1 2016

Burnsville, MN

161,700

June 2017

October 2017

Chicago, IL (N Harlem)

293,700

June 2017

October 2017

Cockeysville, MD

83,900

June 2017

October 2017

Q1 2017

East Northport, NY

187,000

June 2017

October 2017

Q2 2017

Greendale, WI

238,400

June 2017

October 2017

Q4 2017

Hagerstown, MD

107,300

June 2017

October 2017

Q1 2016 / Sold

Johnson City, NY

155,100

June 2017

October 2017

Lafayette, LA

194,900

June 2017

October 2017

Mentor, OH

208,700

June 2017

October 2017

Middleburg Heights, OH

351,600

June 2017

October 2017

Olean, NY

75,100

June 2017

October 2017

Q1 2017

Termination Properties (cont’d)

September 30, 2018

Announced

Property

Square Feet

Notice

Termination

Redevelopment

Overland Park, KS

215,000

June 2017

October 2017

Roseville, MI

277,000

June 2017

October 2017

Q3 2016

Sarasota, FL

204,500

June 2017

October 2017

Toledo, OH

209,900

June 2017

October 2017

Warwick, RI

169,200

June 2017

October 2017

Q3 2016 / Q3 2017

York, PA

82,000

June 2017

October 2017

Chapel Hill, OH

187,179

January 2017

April 2017

Concord, NC

137,499

January 2017

April 2017

Detroit Lakes, MN

79,102

January 2017

April 2017

El Paso, TX

103,657

January 2017

April 2017

Q2 2018

Elkins, WV

94,885

January 2017

April 2017

Sold

Henderson, NV

122,823

January 2017

April 2017

Q1 2017

Hopkinsville, KY

70,326

January 2017

April 2017

Q1 2018

Jefferson City, MO

92,016

January 2017

April 2017

Q2 2017

Kenton, OH

96,066

January 2017

April 2017

Kissimmee, FL

112,505

January 2017

April 2017

Layton, UT

90,010

January 2017

April 2017

Q3 2018

Leavenworth, KS

76,853

January 2017

April 2017

Mt. Pleasant, PA

83,536

January 2017

April 2017

Q2 2018

Muskogee, OK

87,500

January 2017

April 2017

Sold

Owensboro, KY

68,334

January 2017

April 2017

Sold

Paducah, KY

108,244

January 2017

April 2017

Q3 2017

Platteville, WI

94,841

January 2017

April 2017

Sold

Riverside, CA (Iowa Ave.)

94,500

January 2017

April 2017

Sioux Falls, SD

72,511

January 2017

April 2017

Sold

Alpena, MI

118,200

September 2016

January 2017

Chicago, IL (S Kedzie)

118,800

September 2016

January 2017

Q3 2018

Cullman, AL

98,500

September 2016

January 2017

Q2 2017

Deming, NM

96,600

September 2016

January 2017

Elkhart, IN

86,500

September 2016

January 2017

Q4 2016

Harlingen, TX

91,700

September 2016

January 2017

Sold

Houma, LA

96,700

September 2016

January 2017

Sold

Kearney, NE

86,500

September 2016

January 2017

Q3 2016

Manistee, MI

87,800

September 2016

January 2017

Merrillville, IN

108,300

September 2016

January 2017

Q4 2016

New Iberia, LA

91,700

September 2016

January 2017

Q2 2017

Riverton, WY

94,800

September 2016

January 2017

Sault Sainte Marie, MI

92,700

September 2016

January 2017

Sierra Vista, AZ

86,100

September 2016

January 2017

Sold

Springfield, IL

84,200

September 2016

January 2017

Q3 2016

Thornton, CO

190,200

September 2016

January 2017

Q1 2017

Yakima, WA

97,300

September 2016

January 2017

Sold

Total square feet

11,728,387

					Sears or	Recapture		Total
	Mall Name	City	State	Joint Venture	Kmart	Rights (1)		GLA (2)		Leased (2)
1	Northridge Fashion Center	Northridge	CA	GGP II JV	Sears	50%			145,900		100.0	%
2	Altamonte Mall	Altamonte Springs	FL	GGP II JV	Sears		(5)		107,200		100.0	%
3	Coastland Center	Naples	FL	GGP II JV	Sears		(5)		80,900		100.0	%
4	Cumberland Mall	Atlanta	GA	GGP II JV	Sears		(5)		113,200		100.0	%
5	Natick Collection (3)	Natick	MA	GGP I JV	Sears		(4)		95,400		74.9	%
6	Willowbrook Mall	Wayne	NJ	GGP II JV	Sears		(4)		140,600		77.7	%
7	Sooner Mall (3)	Norman	OK	GGP I JV	Sears	50%			33,400		100.0	%
8	Stonebriar Centre	Frisco	TX	GGP I JV	Sears	50%			81,500		100.0	%
9	Alderwood	Lynnwood	WA	GGP I JV	n/a		(4)		88,900		5.2	%

					Sears or	Recapture	Total
	Mall Name	City	State	Joint Venture	Kmart	Rights (1)	GLA (2)		Leased (2)
1	Chandler Fashion Center	Chandler	AZ	Macerich JV	Sears	50%		70,800		100.0	%
2	Arrowhead Towne Center	Glendale	AZ	Macerich JV	Sears	50%		62,500		100.0	%
3	Los Cerritos Center	Cerritos	CA	Macerich JV	Sears	50%		138,800		100.0	%
4	Vintage Faire Mall	Modesto	CA	Macerich JV	Sears	50%		74,300		100.0	%
5	Danbury Fair	Danbury	CT	Macerich JV	Sears	50%		89,200		100.0	%
6	Deptford Mall	Deptford	NJ	Macerich JV	Sears	50%		97,500		100.0	%
7	Freehold Raceway Mall	Freehold	NJ	Macerich JV	Sears	50%		69,400		100.0	%
8	Washington Square Mall	Portland	OR	Macerich JV	Sears	50%		110,000		100.0	%
9	South Plains Mall	Lubbock	TX	Macerich JV	Sears	50%		75,300		100.0	%

					Sears or	Recapture		Total					Land
	Property Address	City	State	Property Type (1)	Kmart	Rights (2)(3)		GLA (4)		Leased (4)			Acres
1	700 East Northern Lights Boulevard	Anchorage	AK	Shopping Center	Sears		(5)		257,700		95.8	%		26
2	1731 2nd Avenue Southwest	Cullman	AL	Freestanding	n/a		(6)		88,500		100.0	%		6
3	3930 McCain Boulevard	North Little Rock	AR	Mall	Sears		(5)		177,100		94.2	%		15
4	4800 North US Highway 89	Flagstaff	AZ	Mall	Sears		(6)		66,200		100.0	%		7
5	6515 East Southern Avenue	Mesa	AZ	Mall	Sears	50%			121,900		100.0	%		11
6	10140 North 91st Avenue	Peoria	AZ	Shopping Center	n/a	n/a			104,400		100.0	%		10
7	7611 West Thomas Road	Phoenix	AZ	Mall	Sears	50%			144,200		100.0	%		10
8	12025 North 32nd Street	Phoenix	AZ	Freestanding	n/a	n/a			151,200		100.0	%		11
9	3400 Gateway Boulevard	Prescott	AZ	Mall	Sears	50%			102,300		100.0	%		10
10	2250 El Mercado Loop	Sierra Vista	AZ	Mall	Sears	50%			94,700		100.0	%		7
11	5950 East Broadway Boulevard	Tucson	AZ	Mall	Sears		(5)		250,100		100.0	%		20
12	3150 South 4th Avenue	Yuma	AZ	Shopping Center	Sears	50%			90,400		100.0	%		14
13	3625 East 18th Street	Antioch	CA	Shopping Center	Kmart		(6)		95,200		100.0	%		7
14	42126 Big Bear Boulevard	Big Bear Lake	CA	Shopping Center	Kmart	50%			80,400		91.2	%		8
15	20700 South Avalon Boulevard	Carson	CA	Mall	n/a		(5)		182,900		83.7	%		13
16	565 Broadway	Chula Vista	CA	Mall	Sears	50%			250,100		100.0	%		16
17	5900 Sunrise Mall	Citrus Heights	CA	Mall	n/a		(6)		289,500		0.0	%		22
18	912 County Line Road	Delano	CA	Freestanding	Kmart	50%			86,100		100.0	%		6
19	575 Fletcher Parkway	El Cajon	CA	Mall	Sears		(5)		286,400		100.0	%		22
20	3751 South Dogwood Road	El Centro	CA	Mall	Sears	50%			139,700		100.0	%		14
21	1420 Travis Boulevard	Fairfield	CA	Mall	Sears		(5)		164,100		100.0	%		9
22	5901 Florin Road	Florin	CA	Shopping Center	Sears	50%			272,700		100.0	%		20
23	3636 North Blackstone Avenue	Fresno	CA	Shopping Center	Sears		(5)		217,600		100.0	%		13
24	1500 Anna Sparks Way	McKinleyville	CA	Shopping Center	Kmart	50%			94,800		100.0	%		8
25	1011 West Olive Avenue	Merced	CA	Shopping Center	Sears	50%			92,600		100.0	%		10
26	5080 East Montclair Plaza Lane	Montclair	CA	Mall	Sears	50%			174,700		100.0	%		3
27	22550 Town Circle	Moreno Valley	CA	Mall	Sears	50%			169,400		100.0	%		11
28	6000 Mowry Avenue	Newark	CA	Mall	Sears		(6)		145,800		100.0	%		10
29	12121 Victory Boulevard	North Hollywood	CA	Shopping Center	Sears		(5)		161,900		100.0	%		4
30	72880 Highway 111	Palm Desert	CA	Mall	Sears	50%			136,500		100.0	%		8
31	1855 Main Street	Ramona	CA	Shopping Center	Kmart	50%			107,600		94.5	%		10
32	5261 Arlington Avenue	Riverside	CA	Freestanding	Sears	50%			214,200		100.0	%		19
33	3001 Iowa Avenue	Riverside	CA	Freestanding	n/a		(6)		132,600		28.7	%		13
34	1191 Galleria Boulevard	Roseville	CA	Mall	n/a	(5)(6)			131,500		89.9	%		9
35	1700 North Main Street	Salinas	CA	Mall	Sears	50%			133,000		100.0	%		10
36	100 Inland Center	San Bernardino	CA	Mall	Sears	100%			264,700		100.0	%		22

37	1178 El Camino Real	San Bruno	CA	Mall	Sears	50%		276,600	100.0	%	13
38	2180 Tully Road	San Jose	CA	Mall	Sears	50%		262,500	100.0	%	22
39	4015 Capitola Road	Santa Cruz	CA	Mall	Sears		(5)	123,800	90.6	%	10
40	200 Town Center East	Santa Maria	CA	Mall	Sears	50%		108,600	100.0	%	5
41	895 Faulkner Road	Santa Paula	CA	Freestanding	Kmart	50%		71,300	100.0	%	10
42	40710 Winchester Road	Temecula	CA	Mall	Sears		(5)	120,100	94.8	%	10
43	145 West Hillcrest Drive	Thousand Oaks	CA	Shopping Center	Sears		(6)	164,000	100.0	%	11
44	3295 East Main Street	Ventura	CA	Mall	Sears	50%		178,600	100.0	%	2
45	3501 South Mooney Boulevard	Visalia	CA	Shopping Center	Sears	50%		75,600	100.0	%	7
46	1209 Plaza Drive	West Covina	CA	Mall	Sears	50%		142,000	100.0	%	16
47	100 Westminster Mall	Westminster	CA	Mall	Sears		(5)	197,900	100.0	%	14
48	10785 West Colfax Avenue	Lakewood	CO	Shopping Center	Sears	50%		153,000	100.0	%	8
49	1400 East 104th Avenue	Thornton	CO	Shopping Center	n/a		(6)	186,800	30.5	%	25
50	850 Hartford Turnpike	Waterford	CT	Mall	Sears	50%		149,300	100.0	%	11
51	19563 Coastal Highway	Rehoboth Beach	DE	Freestanding	Kmart		(5)	123,300	100.0	%	13
52	5900 Glades Road	Boca Raton	FL	Mall	Sears		(5	178,500	100.0	%	19
53	303 U.S. Highway 301 Boulevard West	Bradenton	FL	Mall	Sears	50%		99,900	100.0	%	15
54	7350 Manatee Avenue West	Bradenton	FL	Shopping Center	Kmart	50%		82,900	100.0	%	9
55	27001 U.S. 19 North	Clearwater	FL	Mall	Sears		(5)	211,200	100.0	%	14
56	1625 Northwest 107th Avenue	Doral	FL	Mall	Sears		(5)	212,900	100.0	%	13
57	4125 Cleveland Avenue	Ft. Myers	FL	Mall	Sears	50%		146,800	100.0	%	12
58	6201 West Newberry Road	Gainesville	FL	Mall	n/a		(6)	139,100	100.0	%	8
59	1675 West 49th Street	Hialeah	FL	Mall	Sears	50%		197,400	100.0	%	8
60	1460 West 49th Street	Hialeah	FL	Freestanding	n/a		(5)	100,500	100.0	%	9
61	2211 West Vine Street	Kissimmee	FL	Shopping Center	n/a		(6)	148,900	24.4	%	14
62	3800 US Highway 98 North	Lakeland	FL	Mall	Sears	50%		156,200	100.0	%	12
63	1050 South Babcock Street	Melbourne	FL	Freestanding	Sears	50%		102,600	100.0	%	14
64	19505 Biscayne Boulevard	Miami	FL	Mall	n/a		(5)	173,300	3.0	%	12
65	20701 Southwest 112th Avenue	Miami	FL	Mall	Sears	100%		170,100	100.0	%	15
66	10700 Biscayne Boulevard	North Miami	FL	Freestanding	n/a		(5	119,900	95.0	%	11
67	3100 Southwest College Road	Ocala	FL	Mall	Sears	50%		146,200	100.0	%	12
68	380 Blanding Boulevard	Orange Park	FL	Shopping Center	n/a	n/a		87,400	100.0	%	9
69	3111 East Colonial Drive	Orlando	FL	Mall	n/a		(5)	130,400	90.3	%	18
70	733 North Highway 231	Panama City	FL	Mall	Sears	50%		139,300	100.0	%	15
71	7171 North Davis Highway	Pensacola	FL	Shopping Center	n/a		(6)	127,900	100.0	%	15
72	8000 West Broward Boulevard	Plantation	FL	Mall	Sears		(5)	201,600	100.0	%	18
73	8201 South Tamiami Trail	Sarasota	FL	Mall	n/a		(6)	204,500	0.0	%	15
74	4501 66th Street North	St. Petersburg	FL	Freestanding	Kmart	50%		120,600	100.0	%	11

75	2300 Tyrone Boulevard North	St. Petersburg	FL	Mall	n/a		(5)	147,800	97.4	%	14
76	7810 Abercorn Street	Savannah	GA	Mall	Sears		(6)	167,300	100.0	%	15
77	500 North Nimitz Highway	Honolulu	HI	Freestanding	n/a		(5)	76,100	100.0	%	4
78	1501 Highway 169 North	Algona	IA	Freestanding	Kmart	50%		99,300	100.0	%	7
79	4600 1st Avenue Northeast	Cedar Rapids	IA	Mall	n/a		(6)	146,000	0.0	%	12
80	1405 South Grand Avenue	Charles City	IA	Freestanding	Kmart	50%		96,600	100.0	%	11
81	2307 Superior Street	Webster City	IA	Shopping Center	Kmart	50%		40,800	100.0	%	4
82	460 North Milwaukee Street	Boise	ID	Mall	Sears	50%		123,600	100.0	%	8
83	4730 West Irving Park Road	Chicago	IL	Freestanding	Sears		(5)	356,700	100.0	%	6
84	1601 North Harlem Avenue	Chicago	IL	Freestanding	n/a		(6)	293,700	5.1	%	7
85	5050 South Kedzie Avenue	Chicago	IL	Shopping Center	n/a		(6)	129,300	68.6	%	9
86	17550 Halsted Street	Homewood	IL	Shopping Center	n/a	n/a		196,100	100.0	%	19
87	3340 Mall Loop Drive	Joliet	IL	Mall	Sears	50%		204,600	100.0	%	17
88	2860 South Highland Avenue	Lombard	IL	Freestanding	n/a	n/a		139,300	100.0	%	8
89	7503 West Cermak Road	North Riverside	IL	Mall	Sears		(5)	202,500	93.7	%	13
90	2 Orland Square Drive	Orland Park	IL	Mall	Sears		(5)	199,600	100.0	%	16
91	2500 Wabash Avenue	Springfield	IL	Shopping Center	n/a		(6)	131,400	84.9	%	14
92	3231 Chicago Road	Steger	IL	Freestanding	Kmart		(6)	87,400	100.0	%	3
93	3101 Northview Drive	Elkhart	IN	Shopping Center	n/a		(6)	86,600	100.0	%	8
94	4201 Coldwater Road	Ft. Wayne	IN	Mall	Sears	(5)(6)		231,900	100.0	%	15
95	101 West Lincoln Highway	Merrillville	IN	Shopping Center	n/a		(6)	170,900	83.0	%	17
96	4820 South 4th Street Trafficway	Leavenworth	KS	Freestanding	n/a		(6)	83,600	0.0	%	9
97	9701 Metcalf Avenue	Overland Park	KS	Shopping Center	n/a		(6)	215,000	5.6	%	19
98	3010 Fort Campbell Boulevard	Hopkinsville	KY	Shopping Center	n/a		(6)	92,900	69.5	%	13
99	5101 Hinkleville Road	Paducah	KY	Mall	n/a		(6)	97,300	66.2	%	9
100	5715 Johnston Street	Lafayette	LA	Mall	n/a		(6)	194,900	0.0	%	16
101	900 East Admiral Doyle Drive	New Iberia	LA	Freestanding	n/a		(6)	96,600	100.0	%	12
102	200 Grossman Drive	Braintree	MA	Shopping Center	n/a		(5)	84,900	100.0	%	34
103	1325 Broadway	Saugus	MA	Mall	Sears		(5)	210,800	68.8	%	16
104	15700 Emerald Way	Bowie	MD	Shopping Center	Sears		(5)	131,000	100.0	%	11
105	126 Shawan Road	Cockeysville	MD	Shopping Center	n/a	(5)(6)		122,800	37.7	%	12
106	3207 Solomons Island Road	Edgewater	MD	Shopping Center	Kmart	50%		117,200	100.0	%	14
107	417 Main Street	Madawaska	ME	Shopping Center	Kmart	50%		49,700	100.0	%	2
108	2355 US Highway 23 South	Alpena	MI	Freestanding	n/a		(6)	118,200	0.0	%	12
109	1250 Boardman-Jackson Crossing	Jackson	MI	Shopping Center	Sears		(6)	152,700	100.0	%	15
110	2100 Southfield Road	Lincoln Park	MI	Shopping Center	Sears	50%		301,700	100.0	%	17
111	1560 US 31 South	Manistee	MI	Shopping Center	n/a		(6)	94,700	0.0	%	12
112	32123 Gratiot Avenue	Roseville	MI	Mall	n/a	(5)(6)		367,900	51.9	%	21

113	2760 I-75 Business Spur	Sault Sainte Marie	MI	Freestanding	n/a		(6)	92,700	0.0	%	11
114	22801 Harper Avenue	St. Clair Shores	MI	Freestanding	n/a		(5)	103,000	100.0	%	11
115	300 West 14 Mile Road	Troy	MI	Mall	Sears	(5)(6)		384,100	100.0	%	30
116	3100 Washtenaw Road	Ypsilanti	MI	Freestanding	n/a	n/a		99,400	100.0	%	12
117	14250 Buck Hill Road	Burnsville	MN	Mall	n/a		(6)	161,700	0.0	%	15
118	1305 Highway 10 West	Detroit Lakes	MN	Shopping Center	n/a		(6)	87,100	9.2	%	15
119	3001 White Bear Avenue North	Maplewood	MN	Mall	n/a		(6)	175,000	0.0	%	14
120	425 Rice Street	St. Paul	MN	Freestanding	Sears	100%		217,900	100.0	%	17
121	11 South Kingshighway Street	Cape Girardeau	MO	Freestanding	Kmart		(5)	82,600	100.0	%	6
122	1 Flower Valley Shopping Center	Florissant	MO	Shopping Center	Kmart		(5)	124,000	100.0	%	11
123	2304 Missouri Boulevard	Jefferson City	MO	Freestanding	n/a		(6)	97,700	100.0	%	10
124	3700 South Campbell Avenue	Springfield	MO	Shopping Center	n/a	n/a		112,900	100.0	%	8
125	2308 Highway 45 North	Columbus	MS	Shopping Center	Kmart		(6)	166,700	97.5	%	18
126	3180 Highway 2 West	Havre	MT	Freestanding	Kmart		(6)	94,700	100.0	%	9
127	1 South Tunnel Road	Asheville	NC	Mall	Sears		(5)	240,700	100.0	%	16
128	545 Concord Parkway North	Concord	NC	Shopping Center	n/a		(6)	171,300	19.7	%	26
129	1302 Bridford Parkway	Greensboro	NC	Shopping Center	n/a	n/a		171,700	77.6	%	16
130	1 20th Avenue Southeast	Minot	ND	Shopping Center	Kmart	50%		110,400	100.0	%	13
131	4700 2nd Avenue	Kearney	NE	Freestanding	n/a		(6)	80,000	81.1	%	8
132	1500 South Willow Street	Manchester	NH	Mall	Sears		(6)	144,100	100.0	%	11
133	310 Daniel Webster Highway	Nashua	NH	Mall	Sears	50%		167,100	100.0	%	7
134	50 Fox Run Road	Portsmouth	NH	Mall	Sears	50%		127,000	100.0	%	13
135	77 Rockingham Park Boulevard	Salem	NH	Mall	Sears	(5)(6)		250,500	100.0	%	14
136	1500 Highway 35	Middletown	NJ	Freestanding	n/a	100%		191,100	100.0	%	23
137	1640 Route 22	Watchung	NJ	Freestanding	n/a		(5)	116,400	86.9	%	19
138	1205 East Pine Street	Deming	NM	Freestanding	n/a		(6)	96,600	0.0	%	10
139	3000 East Main Street	Farmington	NM	Freestanding	Kmart	50%		90,700	100.0	%	11
140	2220 North Grimes Street	Hobbs	NM	Shopping Center	Kmart	50%		88,900	100.0	%	8
141	10405 South Eastern Avenue	Henderson	NV	Shopping Center	n/a		(6)	143,500	100.0	%	12
142	4000 Meadows Lane	Las Vegas	NV	Mall	Sears		(5)	139,200	77.6	%	11
143	5400 Meadowood Mall Circle	Reno	NV	Mall	Sears		(5)	198,800	100.0	%	3
144	1425 Central Avenue	Albany	NY	Mall	n/a	(5)(6)		277,900	17.8	%	21
145	4155 State Route 31	Clay	NY	Mall	Sears		(6)	146,500	100.0	%	12
146	4000 Jericho Turnpike	East Northport	NY	Shopping Center	n/a		(6)	179,700	92.7	%	18
147	195 North Broadway	Hicksville	NY	Freestanding	Sears		(5)	362,500	100.0	%	30
148	601 Harry L Drive	Johnson City	NY	Mall	n/a		(6)	155,100	0.0	%	11
149	2801 West State Street	Olean	NY	Freestanding	n/a	(5)(6)		118,000	46.9	%	13
150	317 Greece Ridge Center Drive	Rochester	NY	Mall	n/a		(6)	128,500	0.0	%	15

151	171 Delaware Avenue	Sidney	NY	Shopping Center	Kmart	50%		94,400	100.0	%	19
152	200 Eastview Mall	Victor	NY	Mall	Sears		(6)	123,000	100.0	%	14
153	600 Lee Boulevard	Yorktown Heights	NY	Mall	Sears		(5)	160,000	100.0	%	12
154	4100 Belden Village Avenue Northwest	Canton	OH	Mall	Sears		(5)	219,400	100.0	%	19
155	2000 Brittain Road	Chapel Hill	OH	Mall	n/a		(6)	193,100	0.0	%	21
156	2700 Miamisburg Centerville Road	Dayton	OH	Mall	Sears	(5)(6)		171,900	95.8	%	16
157	1005 East Columbus Street	Kenton	OH	Freestanding	n/a		(6)	96,100	0.0	%	11
158	502 Pike Street	Marietta	OH	Freestanding	Kmart	50%		87,500	100.0	%	7
159	7875 Johnnycake Ridge Road	Mentor	OH	Mall	n/a		(6)	208,700	0.0	%	20
160	6950 West 130th Street	Middleburg Heights	OH	Shopping Center	n/a		(6)	351,600	0.0	%	15
161	1447 North Main Street	North Canton	OH	Shopping Center	Kmart	50%		87,100	100.0	%	9
162	555 South Avenue	Tallmadge	OH	Freestanding	Kmart	50%		84,200	100.0	%	8
163	3408 West Central Avenue	Toledo	OH	Shopping Center	n/a		(6)	209,900	0.0	%	11
164	4400 South Western Avenue	Oklahoma City	OK	Freestanding	Sears	(5)(6)		223,700	100.0	%	24
165	3132 East 51st Street	Tulsa	OK	Freestanding	n/a	n/a		87,200	100.0	%	9
166	1180 Southeast 82nd Avenue	Happy Valley	OR	Mall	Sears		(5)	144,300	100.0	%	12
167	1180 Walnut Bottom Road	Carlisle	PA	Shopping Center	Kmart	50%		117,800	100.0	%	3
168	3975 Columbia Avenue	Columbia	PA	Shopping Center	Kmart	50%		86,700	100.0	%	8
169	160 North Gulph Road (7)	King of Prussia	PA	Mall	n/a	n/a		210,900	97.6	%	14
170	1745 Quentin Road	Lebanon	PA	Shopping Center	Kmart	50%		117,200	100.0	%	15
171	100 Cross Roads Plaza	Mount Pleasant	PA	Shopping Center	n/a		(6)	83,500	69.9	%	10
172	400 North Best Avenue	Walnutport	PA	Freestanding	Kmart	50%		121,200	100.0	%	16
173	1094 Haines Road	York	PA	Shopping Center	n/a		(6)	82,000	0.0	%	6
174	PR 167 & Las Cumbres	Bayamon	PR	Shopping Center	Kmart	50%		115,200	100.0	%	10
175	400 Calle Betances	Caguas	PR	Mall	Sears	50%		138,700	100.0	%	8
176	Avenue 65 Infanteria	Carolina	PR	Mall	Sears	50%		198,000	100.0	%	11
177	Martinez Nadal Avenue	Guaynabo	PR	Shopping Center	Kmart		(5)	217,100	94.4	%	18
178	PR Road 2, Km 149.5	Mayaguez	PR	Shopping Center	Kmart	50%		118,200	100.0	%	13
179	2643 Ponce Bypass	Ponce	PR	Shopping Center	Kmart	50%		126,900	100.0	%	9
180	650 Bald Hill Road	Warwick	RI	Shopping Center	n/a	(5)(6)		211,700	93.0	%	20
181	3801B Clemson Boulevard	Anderson	SC	Shopping Center	n/a		(5)	117,100	100.0	%	12
182	7801 Rivers Avenue	Charleston	SC	Mall	n/a		(5)	127,500	46.8	%	14
183	2800 North Germantown Parkway	Cordova	TN	Mall	Sears	50%		160,900	100.0	%	12
184	4570 Poplar Avenue	Memphis	TN	Freestanding	n/a		(5)	112,700	80.7	%	11
185	12625 North Interstate Highway 35	Austin	TX	Shopping Center	n/a		(5)	172,000	26.2	%	25
186	3450 West Camp Wisdom Road	Dallas	TX	Mall	Sears	50%		205,300	100.0	%	13
187	9484 Dyer Street	El Paso	TX	Freestanding	n/a		(6)	110,400	54.8	%	11
188	300 Baybrook Mall	Friendswood	TX	Mall	n/a		(6)	166,000	0.0	%	13

189	303 Memorial City	Houston	TX	Mall	Sears		(5)	214,400	100.0	%	20
190	12605 North Gessner Road	Houston	TX	Freestanding	n/a	n/a		134,000	100.0	%	11
191	6301 Northwest Loop 410	Ingram	TX	Mall	Sears	50%		168,400	100.0	%	12
192	2501 Irving Mall	Irving	TX	Mall	Sears	50%		88,200	95.8	%	18
193	201 Central Park Mall	San Antonio	TX	Freestanding	n/a	(5)(6)		198,900	39.5	%	15
194	4000 North Shepherd	Shepherd	TX	Freestanding	Sears	50%		201,700	100.0	%	12
195	13131 Preston Road	Valley View	TX	Mall	n/a		(5)	235,000	2.5	%	23
196	9570 Southwest Freeway	Westwood	TX	Freestanding	n/a		(6)	213,600	100.0	%	18
197	2010 North Main Street	Layton	UT	Shopping Center	n/a		(6)	176,800	91.0	%	14
198	7453 South Plaza Center Drive	West Jordan	UT	Shopping Center	Sears	(5)(6)		193,500	95.1	%	12
199	5901 Duke Street	Alexandria	VA	Mall	Sears	50%		262,100	100.0	%	18
200	1401 Greenbrier Parkway	Chesapeake	VA	Mall	Sears		(6)	169,400	100.0	%	15
201	12000 Fair Oaks Mall	Fairfax	VA	Mall	Sears		(5)	220,700	72.3	%	15
202	5200 Mercury Boulevard	Hampton	VA	Shopping Center	Sears	50%		247,200	100.0	%	16
203	4588 Virginia Beach Boulevard	Virginia Beach	VA	Mall	Sears		(6)	197,300	100.0	%	14
204	141 West Lee Highway	Warrenton	VA	Shopping Center	n/a		(6)	86,100	25.4	%	9
205	2200 148th Avenue Northeast	Redmond	WA	Shopping Center	Sears		(5)	267,400	86.6	%	15
206	8800 Northeast Vancouver Mall Drive	Vancouver	WA	Mall	Sears		(5)	129,600	100.0	%	10
207	5200 South 76th Street	Greendale	WI	Mall	n/a		(6)	187,500	76.1	%	21
208	53 West Towne Mall	Madison	WI	Mall	Sears	(5)(6)		142,400	100.0	%	18
209	101 Great Teays Boulevard	Scott Depot	WV	Freestanding	Kmart		(6)	89,800	100.0	%	8
210	2150 South Douglas Highway	Gillette	WY	Freestanding	Kmart		(5)	94,600	100.0	%	10
211	1960 North Federal Boulevard	Riverton	WY	Freestanding	n/a		(6)	94,800	0.0	%	9
	Total - Wholly-Owned Properties							32,831,800	80.4	%	2,740

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

None of NOI, Total NOI, EBITDAre, Company EBITDA, FFO or Company FFO, 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 we deem most comparable have been provided in this Supplemental Information package.

NOI is defined as income from property operations less property operating expenses. 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 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.

Annualized Total NOI is an estimate, as of the end of the reporting period, of the annual Total NOI to be generated by the Company’s portfolio including all signed leases and modifications to the Company’s master lease with Sears Holdings with respect to recaptured space. We calculate Annualized Total NOI by adding or subtracting current period adjustments for leases that commenced or expired during the period to Total NOI (as defined) for the period and annualizing, and then adding estimated annual Total NOI attributable to SNO leases and subtracting estimated annual Total NOI attributable to Sears Holdings’ space to be recaptured.

Annualized Total NOI is a forward-looking non-GAAP measure for which the Company does not believe it can provide reconciling information to a corresponding forward-looking GAAP measure without unreasonable effort.

Earnings before Interest Expense, Income Tax, Depreciation, and Amortization for Real Estate ("EBITDAre") and Company EBITDA

EBITDAre is calculated in accordance with the definition set forth by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to measures calculated by other companies who do not use the NAREIT definition of EBITDA. EBITDAre is calculated as net income computed in accordance with GAAP, excluding interest expense, income tax expense, depreciation and amortization, gains (or losses) from property sales and impairment charges on depreciable real estate assets. The Company believes EBITDAre provides useful information to investors regarding our results of operations because it removes the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization). Management also believes the use of EBITDAre facilitates comparisons between us and other equity REITs and real property owners that are not REITs.

The Company makes certain adjustments to EBITDAre, which it refers to as Company EBITDA, to account for certain non-cash and non-comparable items, such as termination fee income, unrealized loss on interest rate cap, litigation charges, acquisition-related expenses and certain up-front-hiring and personnel costs that it does not believe are representative of ongoing operating results.

FFO is calculated in accordance with NAREIT, which defines FFO as net income computed in accordance with GAAP, excluding gains (or losses) from property sales, real estate related depreciation and amortization, and impairment charges on depreciable real estate assets. The Company considers FFO a helpful supplemental measure of the operating performance for equity REITs and a complement to GAAP measures because it is a recognized measure of performance by the real estate industry.

The Company makes certain adjustments to FFO, which it refers to as Company FFO, to account for certain non-cash and non-comparable items, such as lease termination income, loss on interest rate cap, litigation charges, acquisition-related expenses, and certain up-front-hiring and personnel costs, that it does not believe are representative of ongoing operating results. The Company previously referred to this metric as Normalized FFO; the definition and calculation remain the same.

This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the company’s control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that could cause or contribute to such differences include, but are not limited to: our significant exposure to Sears Holdings and the effects of its recently announced bankruptcy filing; Sears Holdings’ termination and other rights under its master lease with us; competition in the real estate and retail industries; 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 our filings with the Securities and Exchange Commission, including the risk factors relating to Sears Holdings. 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.

On October 15, 2018, Sears Holdings and certain of its affiliates filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code with the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). Bankruptcy proceedings are subject to uncertainty and there can be no assurance how the Bankruptcy Court’s or other parties’ actions or decisions may affect Sears Holdings. There can be no assurance as to whether or when Sears Holdings will successfully reorganize and emerge from bankruptcy proceedings or how the Master Lease will be impacted by the bankruptcy proceedings. Any of various outcomes may occur, any of which could have a material and adverse impact on our business, results of operations and financial condition. We are monitoring, and will continue to monitor, Sears Holdings’ bankruptcy proceedings and the impact on its business. For more information regarding the same, refer to the risk factors relating to Sears Holdings in our periodic filings with the Securities and Exchange Commission (the “SEC”).

For additional information from the Company regarding the Sears Holding bankruptcy filing, please see the press release and letter from our CEO filed on Form 8-K with the SEC on October 15, 2018 and available in the Investors section of the Company’s website, www.seritage.com.

		Page
COMPANY INFORMATION		1

CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheets		2
Consolidated Statements of Operations		3

SUPPLEMENTAL FINANCIAL INFORMATION
Market Capitalization and Financial Ratios		4
Total Net Operating Income		5
EBITDAre and Company EBITDA		6
Funds from Operations and Company FFO		7
Additional Information		8

PROPERTY INFORMATION
Portfolio Overview		10
Leasing Activity		13
Redevelopment Projects		14
Termination Properties		20
Joint Venture Properties		22
Wholly Owned Properties		24

DISCLOSURES
Non-GAAP Measures		30
Forward-Looking Statements		31



Company Contacts
Benjamin Schall	President and Chief Executive Officer	Kenneth Lombard	EVP and Chief Operating Officer
Brian Dickman	EVP and Chief Financial Officer	Matthew Fernand	EVP and General Counsel
James Bry	EVP, Development and Construction	Mary Rottler	EVP, Leasing and Operations
ir@seritage.com	Investor Relations and Communications	646.277.1268

	As of September 30,
Annualized Total NOI	2018			2017
Total NOI (per above)	$	35,713		$	43,586
Period adjustments (2)		(10	)		(1,292	)
Adjusted Total NOI		35,703			42,294
Annualize		x 4			x 4
Adjusted Total NOI annualized		142,812			169,176
Plus: estimated annual Total NOI from SNO leases		73,129			52,868
Less: estimated annual Total NOI from associated space to be recaptured from Sears		(6,228	)		(4,402	)
Annualized Total NOI	$	209,713		$	217,642

	Consolidated			Unconsolidated			Seritage
	Portfolio			Joint Ventures			Total
Number of properties		211			26			237

Total GLA		32,832			4,708			37,540
At share		32,832			2,354			35,186

Leased GLA		26,381			4,096			30,477
At share		26,381			2,047			28,428

Percentage leased		80.4	%		87.0	%		81.2	%
At share		80.4	%		87.0	%		80.8	%

SUPPLEMENTAL INFORMATION \| PERIOD ENDED SEPTEMBER 30, 2018	Exhibit 99.2

INTRODUCTION


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