Seritage(US:SRG)2025-05-15 20:36Financial Performance - Rental income decreased by $1.3 million to $4.5 million for the three months ended March 31, 2025, primarily due to property sales in 2024 [168]. - The company recorded a gain on the sale of real estate of $6.9 million from selling one property for $29.6 million during the three months ended March 31, 2025 [173]. - General and administrative expenses increased by $6.6 million to $15.7 million for the three months ended March 31, 2025, mainly due to severance expenses [172]. - The company recognized $8.5 million in other-than-temporary impairment losses on investments in unconsolidated entities during the three months ended March 31, 2025 [160]. - The company reported a net loss of $(22,202) thousand for the three months ended March 31, 2025, compared to a net loss of $(18,985) thousand in 2024 [207]. - NOI-cash basis for the three months ended March 31, 2025, was $898 thousand, an increase from $764 thousand in 2024 [207]. Cash Flow and Investments - The company generated net operating cash outflows of $9.2 million during the three months ended March 31, 2025, as property rental income did not fully cover obligations [178]. - The company had net investing cash inflows of $19.8 million during the three months ended March 31, 2025, driven by asset sales [178]. - For the three months ended March 31, 2025, net cash used in operating activities was $(9,193) thousand, an improvement of $7,431 thousand compared to $(16,624) thousand in the same period of 2024 [187]. - Net cash provided by investing activities decreased to $19,841 thousand in 2025 from $28,907 thousand in 2024, a decline of $9,066 thousand [187]. - The company invested $13.3 million in consolidated properties during the three months ended March 31, 2025, compared to $12.5 million in the same period of 2024 [195]. Asset Management and Sales - As of March 31, 2025, the company's portfolio consisted of 16 properties with approximately 1.6 million square feet of gross leasable area (GLA) and 240 acres of land [157]. - The company is currently under a Plan of Sale approved by shareholders, which allows for the sale of all assets and distribution of net proceeds [159]. - The company continues to face challenging market conditions, including elevated interest rates and potential downward pricing pressures on remaining assets [163]. - The company generated approximately $986.8 million in gross proceeds from the sale of 90 Consolidated Properties from July 2017 to December 31, 2021, and an additional $438.1 million from 40 Consolidated Properties from December 31, 2021, to October 24, 2022 [186]. - From October 24, 2022, to March 31, 2025, the company expects to generate approximately $1.0 billion from the sale of 90 Consolidated Properties [186]. - The company sold interests in 15 Unconsolidated Properties for approximately $278.1 million from July 2017 to December 31, 2021, and 8 Unconsolidated Properties for approximately $84.8 million from December 31, 2021, to October 24, 2022 [186]. - As of March 31, 2025, the company had contributed interests in 12 properties to unconsolidated entities, generating approximately $242.4 million since July 2017 [186]. Debt and Financing - The company’s outstanding balance on the Term Loan Facility was $240.0 million as of March 31, 2025 [185]. - The company did not declare dividends on Class A common shares during the three months ended March 31, 2025, and 2024, with the last dividend declared on February 25, 2019 [189].