Seritage Growth Properties (NYSE: SRG)

Seritage Growth Properties, Inc., or Seritage, is a real estate investment trust (REIT) that operates in the retail and mixed-use property sector. It is listed on the New York Stock Exchange under the ticker symbol SRG. The company's main business activities involve the ownership, development, redevelopment, management, sale, and leasing of diversified retail and mixed-use properties throughout the United States.

Seritage's portfolio consists of 32 properties, comprising approximately 4.1 million square feet of gross leasable area and 460 acres of land. These properties are spread across 13 states, with a significant presence in California, Florida, Texas, and the Northeast. The company generates revenue primarily through the leasing of its properties to various tenants, including national credit tenants. As of December 31, 2023, the company's portfolio of six multi-tenant retail assets provided positive cash flow and was 71.6% leased. A majority of the leases are subject to collect recoveries from tenants based on the structure of the leases, providing an important inflation hedge.

Seritage also identifies sites within its portfolio that have the demand and demographic profile to support other uses such as residential, biotechnology, office, and others. Given its fee ownership of these properties and control over parking lots and outparcels, the company believes that these sites are well-positioned for value creation opportunities through entitlements, leasing, and development. The company continues to assess the best use for all sites within its portfolio, including residential, retail, and converting excess land area to pad sites.

In terms of competition, Seritage competes with other properties located in markets in which its assets are located both from an operations perspective and with respect to the disposition of its assets. The company competes for prospective tenants with REITs, real estate partnerships, and other real estate companies, private individuals, investment companies, private equity and hedge fund investors, sovereign funds, pension funds, insurance companies, lenders, and other investors.

Seritage's properties are subject to environmental laws regulating, among other things, air emissions, wastewater discharges, and the handling and disposal of waste. The company has comprehensive liability, property, and rental loss insurance, as applicable, with respect to its portfolio of properties.

As of December 31, 2023, Seritage had 19 full-time employees, all of whom are located in the United States, with the majority located in New York. The company believes that diversity and inclusion at all levels of its organization are imperative to its success. Seritage has implemented various initiatives to promote a positive work environment.

Seritage's portfolio includes a variety of national credit tenants and a range of properties suitable for different uses. Some of the properties in its portfolio include multi-tenant retail assets, residential areas, biotechnology facilities, and office spaces. The company's diverse portfolio and focus on value creation opportunities set it apart from its competitors.