Seritage(US:SRG)2026-03-31 20:35Financial Performance - For the year ended December 31, 2025, the company recognized a total of $18.8 million in impairment losses, primarily due to accepting offers to sell below carrying value [175]. - The company recorded a gain on the sale of real estate totaling $20.3 million for the year ended December 31, 2025, compared to a gain of $10.7 million in 2024 [189]. - General and administrative expenses increased by $1.9 million to $31.9 million, driven by a rise in severance expenses [188]. - The company experienced net operating cash outflows of $34.9 million during the year ended December 31, 2025, as property rental income did not fully cover obligations [197]. - The company reported net cash used in operating activities of $34.9 million for the year ended December 31, 2025, compared to $53.5 million in 2024, reflecting a decrease of $18.6 million [213]. - Net cash provided by investing activities increased to $198.5 million in 2025 from $126.9 million in 2024, an increase of $71.6 million [213]. - The company recognized impairment losses of $18.8 million and $87.5 million for the years ended December 31, 2025, and 2024, respectively [222]. Asset Sales and Investments - The company sold five wholly owned assets during the year, generating gross proceeds of $222.6 million, and monetized two unconsolidated properties for an additional $8.1 million [176]. - 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 sold from December 31, 2021, to October 24, 2022 [201]. - From October 24, 2022, to December 31, 2025, the company expects to sell 94 Consolidated Properties, generating approximately $1.2 billion in gross proceeds [201]. - 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 [201]. - The company anticipates generating approximately $159.6 million from the sale of interests in 12 Unconsolidated Properties from October 24, 2022, to December 31, 2025 [201]. - The company invested $26.3 million in consolidated properties and $0.5 million in unconsolidated entities during the year ended December 31, 2025 [212]. Debt and Interest - Interest expense decreased by $4.7 million to $20.3 million due to partial pay downs of the Term Loan Facility [196]. - The company repaid $190.0 million against the principal of the Term Loan Facility during the year ended December 31, 2025, leaving an outstanding balance of $50.0 million [206]. - As of December 31, 2025, the company had $50.0 million of consolidated debt, all borrowed under a fixed-rate Term Loan Facility [227]. - The estimated fair value of the company's consolidated debt as of December 31, 2025, was $50.0 million, calculated based on current market prices and discounted cash flows [228]. Rental Income and Expenses - Rental income increased by $0.5 million to $17.6 million for the year ended December 31, 2025, primarily due to lease up at the Aventura, FL property [183]. - Property operating expenses decreased by $2.4 million to $13.98 million, mainly due to reductions in common area maintenance costs and insurance expenses related to sold properties [184]. Dividends - The company did not declare dividends on Class A common shares during 2025, with the last dividend declared on February 25, 2019 [207].