Seritage Growth Properties (SRG) 8-K Seritage Growth Properties Reports Fourth Quarter and Full Year 2021 Operating Results

Exhibit 99.2

Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of future performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “approximates,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “projects,” “would,” “may” or other similar expressions in the Company’s Annual Report on Form 10-K. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021(the “Annual Report”). For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date of the Annual Report. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date of the Annual Report. The following discussion should be read in conjunction with the consolidated financial statements and notes thereto included in Part 1 of the Annual Report.

Financial Information

Summary Information

December 31, 2021

(in thousands, except per share and PSF amounts)

	Quarter Ended December 31,						Year Ended December 31,
Financial Results	2021			2020			2021			2020
Net gain(loss) attributable to Seritage    common shareholders (page 3)	$	71,721		$	(35,606	)	$	(33,049	)	$	(109,926	)
Total NOI (page 4)		10,456			8,646			35,517			37,757
FFO (page 5)		(25,316	)		(16,156	)		(105,667	)		(80,998	)
Company FFO (page 5)		(25,108	)		(17,899	)		(101,313	)		(88,583	)
Net loss per diluted share attributable    to Seritage common shareholders (page 3)	$	1.64		$	(0.92	)	$	(0.78	)	$	(2.87	)
FFO per diluted share (page 5)		(0.45	)		(0.29	)		(1.89	)		(1.45	)
Company FFO per diluted share (page 5)		(0.45	)		(0.32	)		(1.81	)		(1.59	)
Wtd. avg. diluted shares - EPS		43,632			38,675			42,393			38,298
Wtd. avg diluted shares - FFO/share		55,986			55,930			55,959			55,874
Stock trading price range	$12.45to$17.00			$11.20to$19.45			$12.45to$23.22			$6.49to$40.50

Consolidated Balance Sheets

December 31, 2021

(in thousands, except share and per share amounts)

	December 31, 2021			December 31, 2020
ASSETS
Investment in real estate
Land	$	475,667		$	592,770
Buildings and improvements		994,221			1,107,532
Accumulated depreciation		(154,971	)		(142,206	)
		1,314,917			1,558,096
Construction in progress		381,194			352,776
Net investment in real estate		1,696,111			1,910,872
Real estate held for sale		—			1,864
Investment in unconsolidated entities		498,563			457,033
Cash and cash equivalents		106,602			143,728
Restricted cash		7,151			6,526
Tenant and other receivables, net		29,111			46,570
Lease intangible assets, net		14,817			18,595
Prepaid expenses, deferred expenses and other assets, net		61,783			63,755
Total assets	$	2,414,138		$	2,648,943
LIABILITIES AND EQUITY
Liabilities
Term loan facility, net	$	1,439,332		$	1,598,909
Sales-leaseback financing obligations		20,627			20,425
Accounts payable, accrued expenses and other liabilities		109,379			146,882
Total liabilities		1,569,338			1,766,216
Shareholders’ Equity
Class A common shares $0.01 par value; 100,000,000 shares authorized;    43,632,364 and 38,896,428 shares issued and outstanding    as of December 31, 2021 and December 31, 2020, respectively		436			389
Series A preferred shares $0.01 par value; 10,000,000 shares authorized;     2,800,000 shares issued and outstanding as of December 31, 2021 and     December 31, 2020; liquidation preference of $70,000		28			28
Additional paid-in capital		1,241,048			1,177,260
Accumulated deficit		(553,771	)		(528,637	)
Total shareholders’ equity		687,741			649,040
Non-controlling interests		157,059			233,687
Total equity		844,800			882,727
Total liabilities and equity	$	2,414,138		$	2,648,943

Consolidated Statements of Operations

December 31, 2021

(in thousands, except per share amounts)

	Quarter Ended December 31,						Year Ended December 31,
	2021			2020			2021			2020
REVENUE
Rental income	$	28,091		$	27,478		$	115,651		$	116,202
Management and other fee income		434			174			1,032			293
Total revenue		28,525			27,652			116,683			116,495
EXPENSES
Property operating		11,493			11,012			45,007			41,164
Real estate taxes		7,497			8,672			35,256			36,768
Depreciation and amortization		11,570			14,551			51,199			95,997
General and administrative		9,947			(418	)		41,949			28,849
Total expenses		40,507			33,817			173,411			202,778
Gain on sale of real estate		156,602			28,596			221,681			88,555
Gain on sale of interests in unconsolidated entities		—			1,758			—			1,758
Impairment of real estate assets		(25,773	)		(47,701	)		(95,826	)		(64,108	)
Equity in loss of unconsolidated entities		(202	)		(2,161	)		(9,226	)		(4,712	)
Interest and other income		1,083			934			9,285			3,394
Interest expense		(26,128	)		(24,916	)		(107,975	)		(91,316	)
Gain(loss) before income taxes		93,600			(49,655	)		(38,789	)		(152,712	)
Provision for income taxes		1			(37	)		(196	)		(252	)
Net income (loss)		93,601			(49,692	)		(38,985	)		(152,964	)
Ne tincome (loss) attributable to    non-controlling interests		(20,655	)		15,311			10,836			47,938
Net income (loss) attributable to Seritage	$	72,946		$	(34,381	)	$	(28,149	)	$	(105,026	)
Preferred dividends		(1,225	)		(1,225	)		(4,900	)		(4,900	)
Net income (loss) attributable to Seritage    common shareholders	$	71,721		$	(35,606	)	$	(33,049	)	$	(109,926	)
Net income (loss) per share attributable to    Seritage Class A common shareholders - Basic	$	1.64		$	(0.92	)	$	(0.78	)	$	(2.87	)
Net income (loss) per share attributable to    Seritage Class A common shareholders - Diluted	$	1.64		$	(0.92	)	$	(0.78	)	$	(2.87	)
Weighted average Class A common    shares outstanding - Basic		43,632			38,675			42,393			38,298
Weighted average Class A common    shares outstanding - Diluted		43,632			38,675			42,393			38,298

Total Net Operating Income

December 31, 2021

(in thousands)

	Year Ended			Three Months Ended
NOI and Total NOI	December 31, 2021			December 31, 2021			Septemer 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			Septemer 30, 2020			June 30, 2020			March 31, 2020
Net income(loss)	$	(38,985	)	$	93,601		$	(26,349	)	$	(95,304	)	$	(10,933	)	$	(49,692	)	$	(72,401	)	$	104		$	(30,975	)
Termination fee income		(3,378	)		(388	)		(379	)		—			(2,611	)		(1,314	)		(5,300	)		—			(990	)
Management and other fee income		(1,032	)		(434	)		(184	)		(279	)		(135	)		(174	)		259			(171	)		(207	)
Depreciation and amortization		51,199			11,570			13,159			13,328			13,142			14,551			23,647			23,702			34,097
General and administrative expenses		41,949			9,947			8,780			11,990			11,232			(418	)		11,203			8,644			9,420
Equity in loss of unconsolidated entities		9,226			202			5,535			2,327			1,162			2,161			335			1,322			894
Gain on sale of interests in unconsolidated    entities		—			—			—			—			—			(1,758	)		—			—			—
Gain on sale of real estate		(221,681	)		(156,602	)		(22,774	)		(18,097	)		(24,208	)		(28,596	)		14,706			(53,877	)		(20,788	)
Impairment of real estate assets		95,826			25,773			3,814			64,539			1,700			47,701			14,594			1,813			—
Interest and other income		(9,285	)		(1,083	)		(48	)		(530	)		(7,624	)		(934	)		(1,986	)		(141	)		(333	)
Interest expense		107,975			26,128			26,721			28,976			26,150			24,916			22,742			22,145			21,513
Provision for income taxes		196			(2	)		38			298			(138	)		37			226			26			(37	)
Straight-line rent adjustment		(2,269	)		(236	)		(1,005	)		(1,238	)		210			1,362			(1,774	)		2,694			2,701
Above/below market rental income/expense		176			65			48			102			(39	)		(116	)		(1,541	)		(39	)		(97	)
NOI	$	29,917		$	8,541		$	7,356		$	6,112		$	7,908		$	7,726		$	4,710		$	6,222		$	15,198
Unconsolidated entities
NOI (before adjustments)	$	6,942		$	2,193		$	666		$	1,646		$	2,437		$	1,825		$	1,481		$	1,514		$	1,302
Straight-line rent		(885	)		(309	)		(272	)		(168	)		(137	)		(274	)		(136	)		(100	)		(171	)
Above/below market rental income/expense		131			12			181			(29	)		(33	)		(97	)		(76	)		(58	)		(482	)
Termination fee income		(588	)		19			144			(9	)		(742	)		(534	)		—			(293	)		—
Total NOI	$	35,517		$	10,456		$	8,075		$	7,553		$	9,433		$	8,646		$	5,979		$	7,285		$	15,847

Funds from Operations and Company FFO

December 31, 2021

(in thousands, except per share amounts)

	Year Ended			Three Months Ended
FFO and Company FFO	December 31, 2021			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Net income (loss)	$	(38,985	)	$	93,601		$	(26,349	)	$	(95,304	)	$	(10,933	)	$	(49,692	)	$	(72,401	)	$	104		$	(30,975	)
Real estate depreciation and amortization    (consolidated properties)		49,758			11,262			12,781			12,959			12,756			14,017			23,158			23,201			33,587
Real estate depreciation and amortization    (unconsolidated entities)		13,771			3,417			3,971			3,217			3,165			3,397			1,270			2,597			1,844
Gain on sale of interests in unconsolidated entities		—			—			—			—			—			(1,758	)		—			—			—
Gain on sale of real estate		(221,681	)		(156,602	)		(22,774	)		(18,097	)		(24,208	)		(28,596	)		14,706			(53,877	)		(20,788	)
Impairment of real estate assets		95,826			25,773			3,814			64,539			1,700			47,701			14,594			1,813			—
Loss on disposition of real estate    (unconsolidated entities)		544			(1,542	)		2,086			—			—			—			—			—			—
Dividends on preferred shares		(4,900	)		(1,225	)		(1,225	)		(1,225	)		(1,225	)		(1,225	)		(1,225	)		(1,225	)		(1,225	)
FFO attributable to common shareholders    and unitholders	$	(105,667	)	$	(25,316	)	$	(27,696	)	$	(33,911	)	$	(18,745	)	$	(16,156	)	$	(19,898	)	$	(27,387	)	$	(17,557	)
Termination fee income		(3,378	)		(388	)		(379	)		—			(2,611	)		(1,314	)		(5,300	)		—			(990	)
Termination fee income      (unconsolidated entities)		(588	)		19			144			(9	)		(742	)		(534	)		—			(293	)		—
Amortization of deferred financing costs		422			105			105			106			106			105			105			105			106
Mortgage recording costs		2,383			44			26			2,313			—			—			—			—			—
Severance and restructuring costs		5,515			428			2,891			2,196			—			—			—			425			—
Company FFO attributable to common    shareholders and unitholders	$	(101,313	)	$	(25,108	)	$	(24,909	)	$	(29,305	)	$	(21,992	)	$	(17,899	)	$	(25,093	)	$	(27,150	)	$	(18,441	)
FFO per diluted common share and unit	$	(1.89	)	$	(0.45	)	$	(0.49	)	$	(0.61	)	$	(0.34	)	$	(0.29	)	$	(0.36	)	$	(0.49	)	$	(0.31	)
Company FFO per diluted common share and unit	$	(1.81	)	$	(0.45	)	$	(0.44	)	$	(0.52	)	$	(0.39	)	$	(0.32	)	$	(0.45	)	$	(0.49	)	$	(0.33	)

Additional Information

December 31, 2021

(in thousands)

	As of		As of
Debt Summary	December 31, 2021		December 31, 2020
Term Loan Facility (drawn / undrawn)	$1,440,000 / 400,000		$1,600,000 / 400,000
Interest rate / undrawn rate	7.00% / 1.00%		7.00% / 1.00%
Maturity	July 2023		July 2023
Prepaid Expenses, Deferred Expenses and Other Assets
Deferred expenses	$	20,780	$	22,972
Right of Use Asset		16,990		18,849
Other assets		9,826		9,412
Prepaid insurance		6,156		5,143
FF&E		4,169		2,870
Other prepaid expenses		2,055		4,065
Prepaid real estate taxes		1,807		444
Total prepaid expenses, deferred expenses and other assets	$	61,783	$	63,755
Accounts Payable, Accrued Expenses and Other Liabilities
Accounts payable and accrued expenses	$	36,022	$	44,777
Accrued development expenditures		27,198		20,586
Accrued real estate taxes		11,751		29,290
Variable consideration payment		—		16,125
Below-market leases		3,656		4,186
Environmental reserve		9,477		9,477
Lease liability		6,543		8,199
Prepaid rental income		6,478		3,375
Accrued interest		4,978		4,978
Deferred maintenance		1,722		1,722
Unearned tenant reimbursements		—		2,613
Common and preferred dividends and OP    Unit distributions payable		1,554		1,554
Total accounts payable, accrued expenses and    other liabilities	$	109,379	$	146,882

Additional Information (cont’d)

December 31, 2021

(in thousands, except per share amounts)

	Three Months Ended December 31,						Year Ended December 31,
Rental Income Detail	2021			2020			2021			2020
Rental income	$	22,993		$	20,593		$	90,992		$	84,223
Tenant reimbursements		4,710			5,571			21,281			24,375
Termination income		388			1,314			3,378			7,604
Total	$	28,091		$	27,478		$	115,651		$	116,202
Select Non-Cash Items
Straight-line rental income
Wholly-owned	$	236		$	(1,362	)	$	2,269		$	(4,983	)
Joint ventures		309			274			885			681
Total	$	545		$	(1,088	)	$	3,154		$	(4,302	)
Net amortization of above/below market    rental income/expense
Wholly-owned	$	(65	)	$	117		$	(176	)	$	1,794
Joint ventures		(12	)		97			(131	)		713
Total	$	(77	)	$	214		$	(307	)	$	2,507
Amortization of deferred financing costs	$	(106	)	$	(106	)	$	(422	)	$	(421	)
Reversal of share-based compensation expense		(631	)		6,214			(1,856	)		3,035

SNO Lease Summary

The table below provides a reconciliation of signed not yet opened (“SNO”) leases from December 31, 2020 to December 31, 2021, including unconsolidated entities at the Company’s proportional share:

(in thousands except number of leases and PSF data)
	Number of		Leased		% of Total			Annual		% of Total			Annual
Tenant	Leases		GLA		Leased GLA			Rent		Annual Rent			Rent PSF
In-place leases		264		5,830		83.5	%	$	96,901		78.6	%	$	16.62
SNO diversified leases		69		1,151		16.5	%		26,320		21.4	%		22.87
Total		333		6,981		100.0	%	$	123,221		100.0	%	$	17.65

(in thousands except number of leases and PSF data)
							Total
	Number of						Annual			Annual
	SNO Leases			GLA			Rent			Rent PSF
As of December 31, 2020		125			2,369		$	54,539		$	23.02
Opened (1)		(39	)		(632	)		(12,750	)		20.17
Sold / contributed to JVs / terminated		(46	)		(991	)		(22,330	)		22.53
Signed (1)		29			403			6,638			16.47
Lease Amendments (2)	—				2			223			111.50
As of December 31, 2021		69			1,151		$	26,320		$	22.87

(1)

One signed lease is at a property the Company expects to sell.

(2)

Represents an executed lease amendment for a tenant that was included in Q3 2021 SNO figures.

Top Tenants

December 31, 2021

(in thousands)

The following table lists the top tenants in the portfolio as of December 31, 2021, based on signed leases and including unconsolidated entities presented at the Company’s proportional share:

Tenant	Number of Leases		Annual Rent		% of Total AnnualRent			Concepts/Brands
Dick’s Sporting Goods		12	$	12,512		10.2	%	House of Sport
Dave & Buster’s		11		9,425		7.6	%
Round One Entertainment		8		7,225		5.9	%
Cinemark		4		4,916		4.0	%
Nordstrom Rack		6		4,676		3.8	%
Burlington Stores		9		4,421		3.6	%
At Home		7		4,231		3.4	%
Primark		3		3,169		2.6	%
Ross Dress For Less		11		2,960		2.4	%	Ross Dress for Less, dd's Discounts
AMC		2		2,803		2.3	%
Bed Bath & Beyond		6		2,489		2.0	%	Bed Bath & Beyond, BuyBuyBaby, Cost Plus World Market, andThat!
TJX		9		2,356		1.9	%	TJ Maxx, Marshalls, HomeGoods, HomeSense, Sierra Trading Post
Amazon		2		2,217		1.8	%
Floor & Décor		2		2,032		1.6	%
Vasa Fitness		3		1,866		1.5	%
Mixtura		1		1,758		1.4	%
24 Hour Fitness		2		1,629		1.3	%
Pinstripes		1		1,482		1.2	%
Whole Foods		2		1,258		1.0	%
Safeway		1		1,254		1.0	%

Multi-tenant Retail

Consolidated Properties

			Total		In-Place		SNO			Land
Property Address	City	State	GLA (1)		GLA (1)		GLA (1)		Leased (1)	Acres		Significant Tenants (1)
12025 North 32nd Street	Phoenix	AZ		151,200		151,200		-	100.0%		11	At Home
575 Fletcher Parkway	El Cajon	CA		244,900		110,400		74,000	75.3%		20	Ashley Furniture, Bob’s Discount Furniture, Burlington Stores, Extra Space Storage
1191 Galleria Boulevard	Roseville	CA		125,800		63,000		44,800	85.7%		7	AAA, Cinemark, Round One Entertainment
40710 Winchester Road	Temecula	CA		120,100		59,100		53,600	93.8%		10	Round One Entertainment, Dick’s Sporting Goods
145 West Hillcrest Drive	Thousand Oaks	CA		161,400		113,700		-	70.4%		11	Dave & Busters, DSW, Nordstrom Rack
19563 Coastal Highway	Rehoboth Beach	DE		102,100		75,900		-	74.3%		13	andThat!, PetSmart, Aldi
1460 West 49th Street	Hialeah	FL		106,300		106,300		-	100.0%		9	Aldi, Bed Bath & Beyond, Ross Dress for Less, dd’s Discounts
10700 Biscayne Boulevard	North Miami	FL		129,400		129,400		-	100.0%		11	Aldi, Burlington Stores, Ross Dress for Less, Michaels Stores
3111 East Colonial Drive	Orlando	FL		118,400		94,300		2,500	81.8%		18	Floor & Décor
2300 Tyrone Boulevard North	St. Petersburg	FL		141,600		133,800		7,800	100.0%		15	Dick’s Sporting Goods, Five Below, PetSmart
2860 South Highland Avenue	Lombard	IL		139,300		139,300		-	100.0%		8	The Dump
7503 West Cermak Road	North Riverside	IL		216,400		69,900		113,900	84.9%		13	Round One Entertainment, Aldi, Blink Fitness, Amita Health
2500 Wabash Avenue	Springfield	IL		119,500		108,000		2,000	92.1%		5	Binny’s Beverage Depot, Burlington Stores, Marshalls
4201 Coldwater Road	Ft. Wayne	IN		84,400		-		76,700	90.9%		19	Five Below, HomeGoods
101 West Lincoln Highway	Merrillville	IN		170,900		163,000		-	95.4%		9	At Home, Dollar Tree
200 Grossman Drive	Braintree	MA		89,800		47,600		37,500	94.8%		34	Nordstrom Rack, Ulta Beauty
1302 Bridford Parkway	Greensboro	NC		178,500		140,000		28,200	94.2%		16	Floor & Décor, Gabriel Brothers
4700 2nd Avenue	Kearney	NE		64,900		64,900		-	100.0%		8	Ross Dress for Less, Five Below, Marshall’s
1500 South Willow Street	Manchester	NH		106,600		80,400		-	75.4%		11	Dick’s Sporting Goods, Dave & Buster’s
1640 Route 22	Watchung	NJ		117,100		103,000		14,100	100.0%		12	Cinemark, HomeGoods, Sierra Trading Post, Ulta Beauty, Chick-fil-A , City MD
4000 Jericho Turnpike	East Northport	NY		179,700		93,300		-	51.9%		18	24 Hour Fitness, AMC
200 Eastview Mall	Victor	NY		138,600		119,600		-	86.3%		14	Dick’s Sporting Goods
4100 Belden Village Avenue Northwest	Canton	OH		190,600		116,300		12,000	67.3%		19	Dick’s Sporting Goods, Dave & Busters, Cheddar’s
160 North Gulph Road	King of Prussia (2)	PA		210,900		174,500		34,200	99.0%		14	Dick’s Sporting Goods, Primark, Outback Steakhouse, Yardhouse
3801B Clemson Boulevard	Anderson	SC		117,100		117,100		-	100.0%		12	Burlington Stores, Sportsman’s Warehouse
7801 Rivers Avenue	Charleston	SC		106,400		52,900		-	49.7%		15	Burlington Stores
4570 Poplar Avenue	Memphis	TN		112,700		100,000		1,200	89.8%		11	LA Fitness, Hopdoddy, Nordstrom Rack, Ulta Beauty
12625 North Interstate Highway 35	Austin	TX		52,700		45,000		-	85.4%		13	AMC
12605 North Gessner Road	Houston	TX		134,000		134,000		-	100.0%		11	At Home
201 Central Park Mall	San Antonio	TX		164,200		121,100		-	73.8%		17	Tru Fit, Bed Bath & Beyond
2010 North Main Street	Layton	UT		86,500		67,500		-	78.0%		7	Vasa Fitness
12000 Fair Oaks Mall	Fairfax	VA		211,000		154,400		-	73.2%		15	Dave & Busters, Dick’s Sporting Goods

4588 Virginia Beach Boulevard	Virginia Beach	VA	166,200	132,000	-	79.4%	15	DSW, The Fresh Market, Nordstrom Rack, Smokey Bones
141 West Lee Highway	Warrenton	VA	75,500	30,600	31,600	82.4%	9	HomeGoods
5200 South 76th Street	Greendale	WI	187,400	133,700	-	71.3%	19	Dick’s Sporting Goods, Round One Entertainment
5261 Arlington Avenue	Riverside - Retail	CA	33,200	12,200	21,000	100.0%	5	Bank of America, Aldi
1209 Plaza Drive	West Covina - Retail	CA	11,000	-	11,000	100.0%	7	n/a
53 West Towne Mall	Madison	WI	110,600	110,600	-	100.0%	17	Dave & Busters, Total Wine & More, Hobby Lobby
Total			4,976,900	3,668,000	566,100	85.1%	496

(1)Based on signed leases as of December 31, 2021; GLA presented at the Company’s proportional share

(2)Property is subject to a ground lease

Residential

Consolidated Properties

			Land		Auxiliary		Auxiliary		Available To Lease
Property Address	City	State	Acres		In-Place GLA (1)		SNO GLA (1)		Auxiliary GLA (1)		Significant Tenants (1)
7780 W Arrowhead Towne Center	Glendale	AZ		9		-		-		-	n/a
6515 East Southern Avenue	Mesa	AZ		5		16,800		-		-	Carvana
7611 West Thomas Road	Phoenix	AZ		5		-		-		-	n/a
5900 Sunrise Mall	Citrus Heights	CA		21		-		-		-	n/a
5901 Florin Road	Florin	CA		20		-		-		-	n/a
72880 Highway 111	Palm Desert	CA		7		-		-		-	n/a
100 Inland Center	San Bernardino	CA		20		-		-		-	n/a
850 Hartford Turnpike	Waterford	CT		11		-		-		-	n/a
4125 Cleveland Avenue	Ft. Myers	FL		12		-		-		-	n/a
3800 US Highway 98 North	Lakeland	FL		12		-		-		-	n/a
20701 Southwest 112th Avenue	Miami	FL		15		-		-		-	n/a
8000 West Broward Boulevard	Plantation	FL		18		-		76,700		107,700	GameTime, Powerhouse Gym
3340 Mall Loop Drive	Joliet	IL		17		-		-		-	n/a
15700 Emerald Way	Bowie	MD		11		-		-		-	n/a
3207 Solomons Island Road	Edgewater	MD		14		-		-		-	n/a
14250 Buck Hill Road	Burnsville	MN		15		-		-		-	n/a
3001 White Bear Avenue North	Maplewood	MN		14		-		-		-	n/a
425 Rice Street	St. Paul	MN		17		100		-		-	n/a
310 Daniel Webster Highway	Nashua	NH		12		-		-		-	n/a
7875 Johnnycake Ridge Road	Mentor	OH		20		-		-		-	n/a
6950 West 130th Street	Middleburg Heights	OH		19		35,800		-		-	Carvana
1180 Southeast 82nd Avenue	Happy Valley	OR		12		45,000		-		99,300	Dick’s Sporting Goods
2800 North Germantown Parkway	Cordova	TN		12		-		-		-	n/a
300 Baybrook Mall	Friendswood	TX		13		-		-		-	n/a
4000 North Shepherd	Houston	TX		12		-		-		-	n/a
6301 Northwest Loop 410	Ingram	TX		12		-		-		-	n/a
2501 Irving Mall	Irving	TX		18		7,500		5,000		-	Carvana, CareNow, Chick-fil-A
1675 West 49th Street	Hialeah	FL		15		-		7,400		137,800	Panera Bread
3001 Iowa Avenue	Riverside	CA		13		38,100		-		94,500	Jack in the Box, Stater Brothers
5261 Arlington Avenue	Riverside - Resi	CA		14		-		-		-	n/a
1209 Plaza Drive	West Covina - Resi	CA		8		-		-		-	n/a
Total				423		143,300		89,100		439,300

(1)Based on signed leases as of December 31, 2021; GLA presented at the Company’s proportional share

Residential

Joint Ventures

Brookfield Retail Partners (formerly GGP, Inc.) Joint Venture Properties
				Land	Auxiliary		Auxiliary		Available To Lease
Mall Name	City	State	Joint Venture	Acres	In-Place GLA (1)		SNO GLA (1)		Auxiliary GLA (1)	Significant Tenants (1)
Alderwood	Lynnwood	WA	GGP I JV	12		4,600		20,100	-	Dave & Busters, Cheesecake Factory
Total				12		4,600		20,100
Other
Mall Name	City	State	Joint Venture	Acres	In-Place GLA (1)		SNO GLA (1)		Auxiliary GLA (1)	Significant Tenants (1)
Stonebriar Centre	Frisco	TX	GGP I JV	11		-		-	-	n/a
Total				11		-		-

(1)Based on signed leases as of December 31, 2021; GLA presented at the Company’s proportional share

Premier Mixed-Use Properties

Consolidated Properties

			Total		In-Place		SNO					Land
Property Address	City	State	GLA (1)		GLA (1)		GLA (1)		Leased (1)			Acres	Site Opportunities
19505 Biscayne Boulevard	Aventura	FL		215,400		-		116,100		53.9	%	13	Retail
5900 Glades Road	Boca Raton	FL		4,200		4,200		-		100.0	%	19	Retail
195 North Broadway	Hicksville	NY		57,900		22,100		35,800		100.0	%	30	Retail
13131 Preston Road	Dallas	TX		-		-		-		0.0	%	23	Residential, Retail, Office
2200 148th Avenue Northeast	Redmond	WA		7,500		7,500		-		100.0	%	15	Residential, Retail, Office
Total				285,000		33,800		151,900		65.2	%	100

Joint Ventures

Invesco Real Estate Joint Venture Properties

Total

In-Place

SNO

Land

Property Address

City

State

Joint Venture

GLA (1)

GLA (1)

GLA (1)

Leased (1)

Acres

Site Opportunities

302 Colorado Ave

Santa Monica

CA

Mark 302 JV

51,500

-

-

0.0%

3

Residential, Retail, Office

4575 La Jolla Village Dr

San Diego

CA

UTC JV

113,100

18,800

11,500

26.8%

13

Life Sciences / Office, Retail, Residential

Total

164,600

18,800

11,500

18.4%

16

(1)Based on signed leases as of December 31, 2021; GLA presented at the Company’s proportional share

Other Unconsolidated Entities

Other Joint Ventures

Brookfield Retail Partners (formerly GGP, Inc.) Joint Venture Properties
				Total		In-Place		SNO			Land
Mall Name	City	State	Joint Venture	GLA (1)		GLA (1)		GLA (1)		Leased (1)	Acres	Significant Tenants (1)
Altamonte Mall	Altamonte Springs	FL	GGP II JV		62,800		-		-	0.0%	17	n/a
Coastland Center	Naples	FL	GGP II JV		33,700		29,700		4,000	100.0%	12	CMX Cinebistro, Uncle Julio’s
Willowbrook Mall	Wayne	NJ	GGP II JV		140,500		50,200		52,500	73.1%	41	Cinemark, Dave & Busters, Yardhouse, BJ’s Wholesale
Natick Collection	Natick (2)	MA	GGP I JV		95,400		44,300		-	46.4%	2	Dave & Busters, Open World Entertainment
Total					332,400		124,200		56,500	54.4%	83
Simon Joint Venture Properties
				Total		In-Place		SNO			Land
Mall Name	City	State	Joint Venture	GLA (1)		GLA (1)		GLA (1)		Leased (1)	Acres	Significant Tenants (1)
Santa Rosa Plaza	Santa Rosa	CA	Simon JV		82,700		-		-	0.0%	7	n/a
Briarwood	Ann Arbor	MI	Simon JV		85,300		-		-	0.0%	15	n/a
The Shops at Nanuet	Nanuet	NY	Simon JV		110,700		-		-	0.0%	14	n/a
Woodland Hills Mall	Tulsa	OK	Simon JV		75,100		-		-	0.0%	12	n/a
Barton Creek Square	Austin	TX	Simon JV		82,300		-		-	0.0%	16	n/a
Total					436,100		-		-	0.0%	64
Macerich Joint Venture Properties
				Total		In-Place		SNO			Land
Mall Name	City	State	Joint Venture	GLA (1)		GLA (1)		GLA (1)		Leased (1)	Acres	Significant Tenants (1)
Chandler Fashion Center	Chandler	AZ	Macerich JV		69,700		5,000		32,000	53.1%	10	Firestone
Los Cerritos Center	Cerritos	CA	Macerich JV		138,800		-		-	0.0%	20	n/a
Vintage Faire Mall	Modesto	CA	Macerich JV		60,200		22,900		17,300	66.8%	12	Dave & Busters, Dick’s Sporting Goods
Danbury Fair	Danbury	CT	Macerich JV		89,300		35,000		-	39.2%	12	Primark
Deptford Mall	Deptford	NJ	Macerich JV		95,900		74,600		-	77.8%	14	Dick’s Sporting Goods, Round One Entertainment, Crunch Fitness
Freehold Raceway Mall	Freehold	NJ	Macerich JV		69,400		33,300		-	48.0%	10	Primark
Washington Square Mall	Portland	OR	Macerich JV		110,000		-		-	0.0%	4	n/a
Total					633,300		170,800		49,300	34.8%	82

Other
				Total		In-Place		SNO			Land
Property Address	City	State	Joint Venture	GLA (1)		GLA (1)		GLA (1)		Leased (1)	Acres	Significant Tenants (1)
1445 New Britain Ave	West Hartford	CT	West Hartford JV		81,800		52,900		4,500	70.2%	15	buybuy Baby, REI, Cost Plus World Market, Shake Shack, Saks OFF 5th
126 Shawan Road	Cockeysville	MD	Cockeysville JV		80,100		39,600		26,000	81.9%	12	HomeGoods, Michaels Stores, OneLife Fitness, Ashley Furniture
12625 North Interstate Highway 35	Austin	TX	RD Development JV		-		-		-	0.0%	11	n/a
5901 Duke Street	Alexandria	VA	Foulger Pratt / Howard Hughes		-		-		-	0.0%		n/a
20700 South Avalon Boulevard	Carson	CA	Carson Investment		36,400		21,900		-	60.2%	13	Burlington Stores, Chipotle, Ross Dress for Less
Total					198,300		114,400		30,500	73.1%	51

(1)Based on signed leases as of December 31, 2021; GLA presented at the Company’s proportional share

(2)Property is subject to a ground lease

Non-core Properties

Consolidated Properties

			Total		In-Place		SNO			Land
Property Address	City	State	GLA (1)		GLA (1)		GLA (1)		Leased (1)	Acres	Significant Tenants (1)
700 East Northern Lights Boulevard	Anchorage	AK		158,500		134,000		-	84.5%	18	Guitar Center, Nordstrom Rack, Planet Fitness, Safeway
3930 McCain Boulevard	North Little Rock	AR		177,100		9,800		3,200	7.3%	15	Aspen Dental, Longhorn Steakhouse
2250 El Mercado Loop	Sierra Vista	AZ		94,700		-		-	0.0%	7	n/a
5950 East Broadway Boulevard	Tucson	AZ		218,800		50,600		-	23.1%	20	Round One Entertainment
3150 South 4th Avenue	Yuma	AZ		90,400		-		-	0.0%	15	n/a
42126 Big Bear Boulevard	Big Bear Lake	CA		80,000		4,000		-	5.0%	7	Subway, Wells Fargo Bank
3751 South Dogwood Road	El Centro	CA		139,700		-		9,700	6.9%	13	n/a
1420 Travis Boulevard	Fairfield	CA		150,000		28,500		3,500	21.3%	9	Dave & Busters
3636 North Blackstone Avenue	Fresno	CA		216,600		43,400		-	20.0%	13	Ross Dress for Less, dd’s Discounts
1011 West Olive Avenue	Merced	CA		98,200		-		5,600	5.7%	9	Burlington Stores, dd’s Discounts, Five Below
1855 Main Street	Ramona	CA		107,500		14,700		-	13.7%	11	Dollar Tree
1700 North Main Street	Salinas	CA		133,000		-		32,200	24.2%	10	Burlington
2180 Tully Road	San Jose	CA		262,500		-		-	0.0%	22	n/a
200 Town Center East	Santa Maria	CA		108,600		-		-	0.0%	7	n/a
3295 East Main Street	Ventura	CA		178,600		-		-	0.0%	2	n/a
100 Westminster Mall	Westminster	CA		197,900		-		-	0.0%	14	n/a
10785 West Colfax Avenue	Lakewood	CO		153,000		-		-	0.0%	8	n/a
1400 East 104th Avenue	Thornton	CO		203,100		61,700		-	30.4%	23	Vasa Fitness
27001 U.S. 19 North	Clearwater	FL		211,200		75,500		-	35.7%	14	Whole Foods, Nordstrom Rack
1625 Northwest 107th Avenue	Doral	FL		212,900		-		-	0.0%	13	n/a
3100 Southwest College Road	Ocala	FL		146,200		-		-	0.0%	11	n/a
733 North Highway 231	Panama City	FL		139,300		-		-	0.0%	15	n/a
7171 North Davis Highway	Pensacola	FL		7,200		7,200		-	100.0%	14	Bubba’s 33
8201 South Tamiami Trail	Sarasota	FL		212,400		-		-	0.0%	15	n/a
4600 1st Avenue Northeast	Cedar Rapids	IA		146,000		-		-	0.0%	12	n/a
1405 South Grand Avenue	Charles City	IA		96,600		-		-	0.0%	11	n/a
2307 Superior Street	Webster City	IA		40,800		-		-	0.0%	4	n/a
5050 South Kedzie Avenue	Chicago	IL		120,700		17,200		-	14.3%	9	n/a
3231 Chicago Road	Steger	IL		87,400		-		-	0.0%	3	n/a
3101 Northview Drive	Elkhart	IN		86,600		-		86,600	100.0%	8	n/a
3010 Fort Campbell Boulevard	Hopkinsville	KY		85,100		64,600		-	75.9%	13	Bargain Hunt, Farmer’s Furniture, Harbor Freight
5101 Hinkleville Road	Paducah	KY		97,300		64,400		-	66.2%	9	Burlington Stores, Ross Dress for Less
5715 Johnston Street	Lafayette	LA		194,900		-		-	0.0%	16	n/a
1325 Broadway	Saugus	MA		210,700		-		-	0.0%	15	APEX Entertainment
417 Main Street	Madawaska	ME		49,700		-		-	0.0%	2	n/a
1560 US 31 South	Manistee	MI		94,700		-		-	0.0%	12	n/a
32123 Gratiot Avenue	Roseville	MI		364,600		154,600		-	42.4%	20	At Home, Hobby Lobby
2760 I-75 Business Spur	Sault Ste. Marie	MI		92,700		-		-	0.0%	5	n/a

3100 Washtenaw Road	Ypsilanti	MI	91,700	91,700	-	100.0%	11		At Home
1 Flower Valley Shopping Center	Florissant	MO	119,000	4,300	-	3.6%	11		n/a
3700 South Campbell Avenue	Springfield	MO	112,900	112,900	-	100.0%	8		At Home
2308 Highway 45 North	Columbus	MS	117,100	-	-	0.0%	15		n/a
50 Fox Run Road	Portsmouth	NH	127,100	-	-	0.0%	13		n/a
77 Rockingham Park Boulevard	Salem	NH	251,600	123,800	-	49.2%	12		Cinemark, Dick’s Sporting Goods
4000 Meadows Lane	Las Vegas	NV	130,300	42,500	-	32.6%	11		Round One Entertainment
5400 Meadowood Mall Circle	Reno	NV	162,700	41,300	-	25.4%	3		Round One Entertainment
1425 Central Avenue	Albany	NY	277,900	56,100	3,500	21.4%	21		Whole Foods, REI, Ethan Allen
4155 State Route 31	Clay	NY	146,500	-	-	0.0%	11		n/a
2801 West State Street	Olean	NY	120,700	55,400	-	45.9%	13		Marshall’s, Ollie’s Bargain Hunt
317 Greece Ridge Center Drive	Rochester	NY	128,500	-	-	0.0%	14		n/a
171 Delaware Avenue	Sidney	NY	94,400	-	-	0.0%	19		n/a
600 Lee Boulevard	Yorktown Heights	NY	160,000	38,500	-	24.1%	12		24 Hour Fitness
2700 Miamisburg Centerville Road	Dayton	OH	180,200	13,400	-	7.4%	22		Outback Steakhouse
3408 West Central Avenue	Toledo	OH	218,700	-	-	0.0%	11		n/a
4400 South Western Avenue	Oklahoma City	OK	223,700	50,300	-	22.5%	19		Vasa Fitness
400 North Best Avenue	Walnutport	PA	121,200	-	-	0.0%	17		n/a
400 Calle Betances	Caguas	PR	138,700	-	-	0.0%	8		n/a
Plaza Carolina Station	Carolina	PR	198,000	-	-	0.0%	11		n/a
650 Bald Hill Road	Warwick	RI	131,500	123,100	-	93.6%	20		At Home, Hook & Reel, Skechers
9484 Dyer Street	El Paso	TX	114,200	68,700	30,400	86.8%	11		dd’s Discount, Ross Dress for Less, Five Below, Burlington Stores
2 Orland Square Drive	Orland Park	IL	140,000	-	-	0.0%	16		n/a
2100 Southfield Road	Lincoln Park	MI	297,900	-	-	0.0%	16		n/a
1401 Greenbrier Parkway	Chesapeake	VA	169,700	-	-	0.0%	15		n/a
Total			9,439,400	1,552,200	174,700	18.3%		784

(1)Based on signed leases as of December 31, 2021; GLA presented at the Company’s proportional share

REA Status by Sites and Category

	No / Expired REA	Expires in <5 years	Expires in >5 years	Total
Joint Venture (Mall REIT)	1	1	15	17
Joint Venture (Other)	1	0	3	4
Joint Venture (Residential	3	0	2	5
Multi-tenant Retail	12	1	25	38
Premier Mixed-use	5	1	1	7
ResiCo	6	4	18	28
Sell	23	4	36	63
Total	51	11	100	162
% of Total	31%	7%	62%	100%

Non-GAAP Financial Measures

The Company makes reference to NOI, Total NOI, FFO and Company FFO which are financial measures that include adjustments to accounting principles generally accepted in the United States (“GAAP”).

None of NOI, Total NOI, FFO or Company FFO, are measures that (i) represent cash flow from operations as defined by GAAP; (ii) are indicative of cash available to fund all cash flow needs, including the ability to make distributions; (iii) are alternatives to cash flow as a measure of liquidity; or (iv) should be considered alternatives to net income (which is determined in accordance with GAAP) for purposes of evaluating the Company’s operating performance. Reconciliations of these measures to the respective GAAP measures the Company deems most comparable have been provided in the tables accompanying this press release.

Net Operating Income (“NOI”) and Total NOI

NOI is defined as income from property operations less property operating expenses. Other REITs may use different methodologies for calculating NOI, and accordingly the Company’s depiction of NOI may not be comparable to other REITs. The Company believes NOI provides useful information regarding Seritage, its financial condition, and results of operations because it reflects only those income and expense items that are incurred at the property level.

The Company also uses Total NOI, which includes its proportional share of unconsolidated entities. This form of presentation offers insights into the financial performance and condition of the Company as a whole given the Company’s ownership of unconsolidated entities that are accounted for under GAAP using the equity method.

The Company also considers NOI and Total NOI to be a helpful supplemental measure of its operating performance because it excludes from NOI variable items such as termination fee income, as well as non-cash items such as straight-line rent and amortization of lease intangibles.

Funds from Operations (“FFO”) and Company FFO

FFO is calculated in accordance with NAREIT which defines FFO as net income computed in accordance with GAAP, excluding gains (or losses) from property sales, real estate related depreciation and amortization, and impairment charges on depreciable real estate assets. The Company considers FFO a helpful supplemental measure of the operating performance for equity REITs and a complement to GAAP measures because it is a recognized measure of performance by the real estate industry.

The Company makes certain adjustments to FFO, which it refers to as Company FFO, to account for certain non-cash and non-comparable items, such as termination fee income, severance and restructuring costs, unrealized loss on interest rate cap, litigation charges, acquisition-related expenses, amortization of deferred financing costs and certain up-front-hiring costs, that it does not believe are representative of ongoing operating results.