Seritage(US:SRG)2025-03-31 20:57Financial Performance - The company recorded rental income of $17.1 million for the year ended December 31, 2024, an increase of $2.0 million (approximately 13.3%) compared to $15.1 million in 2023[172]. - The company recognized impairment losses of $87.5 million for the year ended December 31, 2024, primarily due to changes in discount rates and residual capitalization rates[165]. - The company recorded a gain on the sale of real estate totaling $10.7 million in 2024, a significant decrease from $96.2 million in 2023[180]. - The company sold its interest in one unconsolidated property in 2024, recording a gain of $2.0 million, compared to a gain of $6.4 million from eight properties in 2023[181]. - The company reported a net loss of $(153,536) thousand for 2024, slightly improved from $(154,911) thousand in 2023[228]. Asset Sales and Investments - The company sold 13 wholly owned assets during the year ended December 31, 2024, generating gross proceeds of $163.5 million, compared to 60 properties sold for $702.0 million in 2023[180]. - As of December 31, 2024, the company sold 90 Consolidated Properties generating approximately $986.8 million in gross proceeds since the start of its capital recycling program in July 2017[189]. - The company generated approximately $1.0 billion in gross proceeds from the sale of 89 Consolidated Properties from October 24, 2022, to December 31, 2024[189]. - The company sold its interests in 10 Unconsolidated Properties generating approximately $151.5 million in gross proceeds from October 24, 2022, to December 31, 2024[189]. - In 2024, the company invested $27.5 million in consolidated development and operating properties, a decrease from $79.7 million in 2023[209]. Cash Flow and Expenses - The company recorded net operating cash outflows of $53.5 million for the year ended December 31, 2024, as rental income did not fully cover obligations[186]. - The company generated net investing cash inflows of $126.9 million during the year ended December 31, 2024, driven by asset sales[186]. - General and administrative expenses decreased by $16.0 million for the year ended December 31, 2024, primarily due to a reduction in third-party consulting fees[179]. - Net cash used in operating activities for 2024 was $(53,548) thousand, slightly higher than $(53,061) thousand in 2023, reflecting a change of $(487) thousand[210]. - Net cash provided by investing activities decreased significantly to $126,870 thousand in 2024 from $732,911 thousand in 2023, a change of $(606,041) thousand[210]. Debt and Financing - The company has paid down $1.36 billion towards the Term Loan's unpaid principal balance, with an outstanding principal amount of $240.0 million as of December 31, 2024[203]. - The Term Loan Facility has an annual interest rate of 7.0% and as of December 31, 2024, the company was not in compliance with certain financial metrics[191][196]. - The company anticipates using cash on hand, sales of Consolidated Properties, and potential financing transactions as primary sources of capital to repay the Term Loan[204]. - The company has contractual obligations totaling $253.4 million as of December 31, 2024, including long-term debt and operating leases[208]. - The company made a $230 million voluntary prepayment on the Term Loan on February 2, 2023, reducing the unpaid principal balance to $800 million[190]. Shareholder Information - The company has 2,800,000 Series A Preferred Shares outstanding with a 7.00% dividend rate[205]. - The company did not declare dividends on its Class A common shares during 2024, with the last dividend declared on February 25, 2019[206]. Management Changes - The company appointed Adam Metz as Interim CEO effective April 11, 2025, following the resignation of Andrea L. Olshan[168].