Seritage(US:SRG)2025-11-14 22:15Financial Performance - For Q3 2025, the company reported a net loss attributable to common shareholders of $13.6 million, or $0.24 per share, compared to a net loss of $23.2 million, or $0.41 per share in Q3 2024[13]. - Total revenue for Q3 2025 was $4,785,000, a 47.2% increase from $3,251,000 in Q3 2024[33]. - Rental income increased to $4,603,000 in Q3 2025, up 58.8% from $2,899,000 in Q3 2024[33]. - Net loss for Q3 2025 was $12,422,000, compared to a net loss of $21,973,000 in Q3 2024, representing a 43.5% improvement[34]. - Net loss attributable to Seritage common shareholders for Q3 2025 was $13,647,000, down from $23,198,000 in Q3 2024, a reduction of 41.5%[33]. - NOI-cash basis for Q3 2025 was $235,000, compared to a loss of $2,256,000 in Q3 2024, indicating a significant turnaround[34]. - Total expenses for Q3 2025 were $10,852,000, down from $22,516,000 in Q3 2024, a decrease of 51.7%[33]. - Interest expense for Q3 2025 was $5,290,000, a decrease from $6,051,000 in Q3 2024, reflecting a reduction of 12.6%[34]. - Management and other fee income decreased to $182,000 in Q3 2025 from $352,000 in Q3 2024, a decline of 48.2%[33]. Asset Management - The company has four assets under contract with anticipated gross proceeds of $240.8 million, including three assets with no due diligence contingencies expected to generate $170.0 million[4]. - The company's current estimated gross sales proceeds for assets not under contract or in PSA negotiation is projected to be between $220 million and $310 million[6]. - The company’s portfolio consists of interests in 13 properties, totaling approximately 1.3 million square feet of gross leasable area as of September 30, 2025[28]. - Properties sold during the nine months ended September 30, 2025, included Boca Raton, Barton Creek, and Santa Rosa, with total square footage sold of 169,200[36]. Financial Position - As of September 30, 2025, the company had cash on hand of $59.9 million, including $8.3 million of restricted cash, which increased to $65.0 million by November 13, 2025[4]. - As of September 30, 2025, the company's total assets amounted to $558.61 million, a decrease from $677.77 million as of December 31, 2024, reflecting a reduction of approximately 17.6%[30]. - The company's net investment in real estate decreased to $164.63 million from $358.63 million, representing a decline of about 54%[30]. - The total liabilities decreased to $219.52 million from $271.97 million, a reduction of approximately 19.3%[30]. - The company's accumulated deficit increased to $1.03 billion from $958.78 million, indicating a rise of about 7.1%[30]. Strategic Initiatives - The company plans to cease providing future sales projections to avoid negatively impacting marketing efforts for remaining assets[5]. - The strategic review process is ongoing as the company executes its Plan of Sale, with no assurance regarding the success of this process[19]. - The company intends to vigorously defend itself against multiple class action and derivative lawsuits alleging violations of federal securities laws[15][16]. Market Conditions - The company continues to face challenging market conditions, including elevated interest rates and difficulties in raising equity capital for land development deals, which may adversely impact asset pricing and shareholder distributions[20]. Impairment and Investments - The company invested $3.8 million in consolidated properties during Q3 2025, primarily related to tenant leasing costs[4]. - The company recognized an impairment charge of $0.8 million on its consolidated properties during Q3 2025[4]. - Impairment of real estate assets for Q3 2025 was $800,000, compared to $0 in Q3 2024, indicating a new challenge for the company[34]. - For the nine months ended September 30, 2025, the company made $40.0 million in principal repayments on its Term Loan Facility[7]. Non-GAAP Measures - The company utilizes non-GAAP financial measures such as NOI-cash basis to provide insights into its financial performance, which may not be comparable to other real estate companies[21][23].