Seritage Growth Properties (SRG) Q1 2026 earnings summary

Executive summary

• Portfolio consisted of 10 properties (0.8 million sq. ft. GLA, 154 acres) as of March 31, 2026, with 5 consolidated and 5 unconsolidated properties.

• Company transitioned from REIT to taxable C Corporation effective January 1, 2022, increasing flexibility in cash flow use.

• Net loss attributable to common shareholders was $31.5 million, or $0.56 per share, for Q1 2026, compared to $23.4 million, or $0.42 per share, in Q1 2025.

• Cash and restricted cash totaled $58.8 million at March 31, 2026, including $14.3 million restricted; increased to $63.2 million by May 14, 2026.

• Strategic review and Plan of Sale remain ongoing, with Board oversight and exploration of a potential company sale.

Financial highlights

• Rental income for Q1 2026 was $1.9 million, down from $4.5 million in Q1 2025, mainly due to property sales.

• Impairment losses of $15.2 million on real estate assets and $5.2 million on investments in unconsolidated entities were recognized in Q1 2026.

• Net loss attributable to common shareholders was $31.5 million for Q1 2026.

• Received $5.7 million distribution from an unconsolidated entity due to a property sale.

• Generated $11.0 million in gross proceeds from the sale of a vacant/non-income producing asset after quarter-end.

Outlook and guidance

• Obligations are projected to continue exceeding property rental income; funding expected from asset sales and potential financing.

• Substantial doubt exists about ability to continue as a going concern due to debt maturity and insufficient liquidity.

• Actively pursuing refinancing of $50 million in corporate debt maturing at the end of July 2026.

• Market conditions remain challenging, with high interest rates and limited capital availability potentially impacting asset sale proceeds and timing of shareholder distributions.