Exhibit 99.2
1
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, 2022. 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 hereof. 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 hereof. The following discussion should be read in conjunction with the condensed consolidated financial statements and notes thereto included in Part 1 of the Quarterly Report.
2
Financial Information
3
Summary Information
March 31, 2023
(in thousands, except per share and PSF amounts)
| | | | | | | | |
| | Three Months Ended March 31, | |
Financial Results | | 2023 | | | 2022 | |
Net loss attributable to Seritage
common shareholders | | $ | (63,211 | ) | | $ | (53,430 | ) |
Total NOI | | $ | 3,104 | | | $ | 10,493 | |
Net loss per share attributable to Seritage
common shareholders | | $ | (1.13 | ) | | $ | (1.22 | ) |
Wtd. avg. shares - EPS | | | 56,059 | | | | 43,634 | |
Stock trading price range | | $7.32 to $12.70 | | | $8.49 to $14.45 | |
4
Consolidated Balance Sheets (unaudited)
March 31, 2023
(in thousands, except share and per share amounts)
| | | | | | | | |
| | March 31, 2023 | | | December 31, 2022 | |
ASSETS | | | | | | |
Investment in real estate | | | | | | |
Land | | $ | 154,807 | | | $ | 172,813 | |
Buildings and improvements | | | 464,586 | | | | 463,616 | |
Accumulated depreciation | | | (55,347 | ) | | | (57,330 | ) |
| | | 564,046 | | | | 579,099 | |
Construction in progress | | | 157,824 | | | | 185,324 | |
Net investment in real estate | | | 721,870 | | | | 764,423 | |
Real estate held for sale | | | 245,894 | | | | 455,617 | |
Investment in unconsolidated entities | | | 353,919 | | | | 382,597 | |
Cash and cash equivalents | | | 120,476 | | | | 133,480 | |
Restricted cash | | | 11,576 | | | | 11,459 | |
Tenant and other receivables, net | | | 25,982 | | | | 41,495 | |
Lease intangible assets, net | | | 1,615 | | | | 1,791 | |
Prepaid expenses, deferred expenses and other assets, net | | | 35,041 | | | | 50,859 | |
Total assets (1) | | $ | 1,516,373 | | | $ | 1,841,721 | |
| | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
Liabilities | | | | | | |
Term loan facility, net | | $ | 799,859 | | | $ | 1,029,754 | |
Accounts payable, accrued expenses and other liabilities | | | 58,559 | | | | 89,368 | |
Total liabilities (1) | | | 858,418 | | | | 1,119,122 | |
| | | | | | |
Commitments and contingencies (Note 9) | | | | | | |
| | | | | | |
Shareholders' Equity | | | | | | |
Class A common shares $0.01 par value; 100,000,000 shares authorized;
56,059,530 and 56,052,546 shares issued and outstanding
as of March 31, 2023 and December 31, 2022, respectively | | | 561 | | | | 561 | |
Series A preferred shares $0.01 par value; 10,000,000 shares authorized;
2,800,000 shares issued and outstanding as of March 31, 2023 and
December 31, 2022; liquidation preference of $70,000 | | | 28 | | | | 28 | |
Additional paid-in capital | | | 1,360,060 | | | | 1,360,411 | |
Accumulated deficit | | | (703,742 | ) | | | (640,531 | ) |
Total shareholders' equity | | | 656,907 | | | | 720,469 | |
Non-controlling interests | | | 1,048 | | | | 2,130 | |
Total equity | | | 657,955 | | | | 722,599 | |
Total liabilities and shareholders' equity | | $ | 1,516,373 | | | $ | 1,841,721 | |
(1) The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets, as of March 31, 2023, include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $3.3 million of land, $2.8 million of building and improvements, $(0.7) million of accumulated depreciation and $3.4 million of other assets included in other line items. The Company's consolidated balance sheets as of December 31, 2022, include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $6.6 million of land, $3.9 million of building and improvements, $(1.0) million of accumulated depreciation and $4.0 million of other assets included in other line items. | |
5
Consolidated Statements of Operations (unaudited)
March 31, 2023
(in thousands, except per share amounts)
| | | | | | | | | |
| | Three Months Ended
March 31, | | |
| | 2023 | | | 2022 | | |
REVENUE | | | | | | | |
Rental income | | $ | 418 | | | $ | 29,084 | | |
Management and other fee income | | | 262 | | | | 1,821 | | |
Total revenue | | | 680 | | | | 30,905 | | |
EXPENSES | | | | | | | |
Property operating | | | 8,185 | | | | 11,032 | | |
Real estate taxes | | | 1,537 | | | | 8,150 | | |
Depreciation and amortization | | | 4,564 | | | | 11,934 | | |
General and administrative | | | 12,220 | | | | 9,092 | | |
Total expenses | | | 26,506 | | | | 40,208 | | |
Gain (loss) on sale of real estate, net | | | 12,392 | | | | (1,015 | ) | |
Impairment of real estate assets | | | (2,576 | ) | | | (991 | ) | |
Equity in loss of unconsolidated entities | | | (36,372 | ) | | | (33,076 | ) | |
Interest and other income | | | 5,585 | | | | 11 | | |
Interest expense | | | (15,202 | ) | | | (22,588 | ) | |
Loss before income taxes | | | (61,999 | ) | | | (66,962 | ) | |
Benefit (provision) for income taxes | | | 13 | | | | (25 | ) | |
Net loss | | | (61,986 | ) | | | (66,987 | ) | |
Net loss attributable to non-controlling interests | | | — | | | | 14,782 | | |
Net loss attributable to Seritage | | $ | (61,986 | ) | | $ | (52,205 | ) | |
Preferred dividends | | | (1,225 | ) | | | (1,225 | ) | |
Net loss attributable to Seritage common shareholders | | $ | (63,211 | ) | | $ | (53,430 | ) | |
| | | | | | | |
Net loss per share attributable to Seritage Class A
common shareholders - Basic | | $ | (1.13 | ) | | $ | (1.22 | ) | |
Net loss per share attributable to Seritage Class A
common shareholders - Diluted | | $ | (1.13 | ) | | $ | (1.22 | ) | |
Weighted average Class A common shares
outstanding - Basic | | | 56,059 | | | | 43,634 | | |
Weighted average Class A common shares
outstanding - Diluted | | | 56,059 | | | | 43,634 | | |
6
Total Net Operating Income
March 31, 2023
(in thousands)
| | | | | | | | |
| | Three Months Ended March 31, | |
NOI and Total NOI | | 2023 | | | 2022 | |
Net loss | | $ | (61,986 | ) | | $ | (66,987 | ) |
Termination fee income | | | — | | | | (277 | ) |
Management and other fee income | | | (262 | ) | | | (1,821 | ) |
Depreciation and amortization | | | 4,564 | | | | 11,934 | |
General and administrative expenses | | | 12,220 | | | | 9,092 | |
Equity in loss of unconsolidated entities | | | 36,372 | | | | 33,076 | |
(Gain) loss on sale of real estate, net | | | (12,392 | ) | | | 1,015 | |
Impairment of real estate assets | | | 2,576 | | | | 991 | |
Interest and other income | | | (5,585 | ) | | | (11 | ) |
Interest expense | | | 15,202 | | | | 22,588 | |
(Benefit) provision for income taxes | | | (13 | ) | | | 25 | |
Straight-line rent | | | 10,843 | | | | (721 | ) |
Above/below market rental expense | | | 48 | | | | 65 | |
NOI | | $ | 1,587 | | | $ | 8,969 | |
Unconsolidated entities | | | | | | |
Net operating income of unconsolidated entities | | | 1,659 | | | | 1,846 | |
Straight-line rent | | | (147 | ) | | | (328 | ) |
Above/below market rental expense | | | 5 | | | | 6 | |
Total NOI | | $ | 3,104 | | | $ | 10,493 | |
| | | | | | |
7
Additional Information
March 31, 2023
(in thousands)
| | | | | | | | |
| | As of | | | As of | |
Debt Summary | | March 31, 2023 | | | December 31, 2022 | |
Term Loan Facility (drawn / undrawn) | | $800,000 / 400,000 | | | $1,030,000 / 400,000 | |
Interest rate / undrawn rate | | 7.00% / 1.00% | | | 7.00% / 1.00% | |
Maturity | | July 2025 | | | July 2023 | |
| | | | | | |
Prepaid Expenses, Deferred Expenses and Other Assets | | March 31, 2023 | | | December 31, 2022 | |
Right of Use Asset | | $ | 15,942 | | | $ | 16,161 | |
Deferred expenses | | | 8,057 | | | | 17,367 | |
Other assets | | | 4,155 | | | | 5,551 | |
Prepaid insurance | | | 2,961 | | | | 5,492 | |
Other prepaid expenses | | | 2,275 | | | | 4,133 | |
FF&E | | | 975 | | | | 1,129 | |
Prepaid real estate taxes | | | 676 | | | | 1,026 | |
Total prepaid expenses, deferred expenses and other assets | | $ | 35,041 | | | $ | 50,859 | |
| | | | | | | | |
| | March 31, 2023 | | | December 31, 2022 | |
Accrued development expenditures | | $ | 22,196 | | | $ | 37,983 | |
Accounts payable and accrued expenses | | | 17,921 | | | | 25,454 | |
Lease liability | | | 5,749 | | | | 5,916 | |
Accrued real estate taxes | | | 4,126 | | | | 8,638 | |
Prepaid rental income | | | 3,498 | | | | 4,977 | |
Accrued interest | | | 2,489 | | | | 3,286 | |
Below-market leases | | | 1,518 | | | | 1,560 | |
Common and preferred dividends and OP
Unit distributions payable | | | 1,062 | | | | 1,554 | |
Total accounts payable, accrued expenses and
other liabilities | | $ | 58,559 | | | $ | 89,368 | |
8
Additional Information (cont’d)
March 31, 2023
(in thousands, except per share amounts)
| | | | | | | | | |
| | Three Months Ended March 31, | | |
Rental Revenue Detail | | 2023 | | | 2022 | | |
Revenue | | | | | | | |
Rental income | | $ | (776 | ) | | $ | 23,979 | | |
Tenant reimbursements | | | 1,194 | | | | 4,828 | | |
Termination income | | | - | | | | 277 | | |
Total | | $ | 418 | | | $ | 29,084 | | |
| | | | | | | |
| | | | | | | |
| | Three Months Ended March 31, | | |
| | 2023 | | | 2022 | | |
Select Non-Cash Items | | | | | | | |
Straight-line rental income | | | | | | | |
Wholly-owned | | $ | (10,843 | ) | | $ | 721 | | |
Joint ventures | | | 147 | | | | 328 | | |
Total | | $ | (10,696 | ) | | $ | 1,049 | | |
| | | | | | | |
Net amortization of above/below market
rental income/expense | | | | | | | |
Wholly-owned | | $ | (48 | ) | | $ | (65 | ) | |
Joint ventures | | | (5 | ) | | | (6 | ) | |
Total | | $ | (53 | ) | | $ | (71 | ) | |
| | | | | | | |
Amortization of deferred financing costs | | $ | (105 | ) | | $ | (105 | ) | |
Share-based compensation expense | | | (773 | ) | | | (425 | ) | |
9
SNO Lease Summary
Multi-Tenant Retail
The table below provides a summary of all multi-tenant Retail signed leases as of March 31, 2023, including unconsolidated entities at the Company’s proportional share:
| | | | | | | | | | | | | | | | | | | | | | | | |
(in thousands except number of leases and PSF data) | | | | | | | | | | | | | | | | |
| | Number of | | | Leased | | | % of Total | | | Gross Annual Base | | | % of | | | Gross Annual | |
Tenant | | Leases | | | GLA | | | Leasable GLA | | | Rent ("ABR") | | | Total ABR | | | Rent PSF ("ABR PSF") | |
In-place retail leases | | | 55 | | | | 1,374 | | | | 68.1 | % | | $ | 30,014 | | | | 90.7 | % | | $ | 21.84 | |
SNO retail leases (1) | | | 9 | | | | 160 | | | | 7.9 | % | | | 3,085 | | | | 9.3 | % | | | 19.28 | |
Total retail leases | | | 64 | | | | 1,534 | | | | 76.0 | % | | $ | 33,099 | | | | 100.0 | % | | $ | 21.58 | |
(1) SNO = signed not yet opened leases. | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
(in thousands except number of leases and PSF data) | | Number of | | | | | | | | | Annual | | |
| | SNO Leases | | | GLA | | | ABR | | | Rent PSF | | |
As of December 31, 2022 | | | 15 | | | | 141 | | | $ | 3,355 | | | $ | 23.79 | | |
Sold / terminated | | | (8 | ) | | | (58 | ) | | | (1,071 | ) | | | 18.47 | | |
Signed | | | 2 | | | | 76 | | | | 801 | | | | 10.54 | | |
As of March 31, 2023 | | | 9 | | | | 159 | | | $ | 3,085 | | | $ | 19.28 | | |
Premier Mixed-Use
The table below provides a summary of all signed leases at Premier assets as of March 31, 2023, including unconsolidated entities at the Company’s proportional share:
| | | | | | | | | | | | | | | | | | | | | | | |
| Number of | | | Leased | | | % of Total | | | Net Annual | | | % of Total | | | Net Annual | |
Tenant | Leases | | | GLA | | | Leasable GLA | | | Base Rent | | | Annual Rent | | | Rent PSF | |
In-place retail leases | | 22 | | | | 50 | | | | 12.8 | % | | $ | 3,215 | | | | 17.6 | % | | $ | 64.30 | |
In-place office leases | | 1 | | | | 62 | | | | 15.7 | % | | | 4,220 | | | | 23.2 | % | | | 68.06 | |
SNO retail leases as of December 31, 2022(1) | | 27 | | | | 111 | | | | | | | 8,612 | | | | | | | 77.59 | |
Opened | | (6 | ) | | | (8 | ) | | | | | | (503 | ) | | | | | | 62.88 | |
Signed | | 1 | | | | 8 | | | | | | | 570 | | | | | | | 71.25 | |
SNO retail leases as of March 31, 2023(1) | | 22 | | | | 111 | | | | 28.2 | % | | | 8,679 | | | | 47.6 | % | | | 78.19 | |
SNO office leases as of December 31, 2022(1) | | 4 | | | | 108 | | | | | | $ | 6,329 | | | | | | | 58.60 | |
Opened | | (1 | ) | | | (62 | ) | | | | | $ | (4,220 | ) | | | | | | 68.06 | |
SNO retail leases as of March 31, 2023(1) | | 3 | | | | 46 | | | | 11.8 | % | | $ | 2,109 | | | | 11.6 | % | | | 45.85 | |
Total diversified leases as of March 31, 2023 | | 48 | | | | 270 | | | | 68.5 | % | | $ | 18,223 | | | | 100.0 | % | | $ | 67.49 | |
(1) SNO = Signed not yet opened leases | | | | | | | | | | |
(2) In thousands except number of leases and PSF data | | | | | | | | | | |
10
Top Tenants
March 31, 2023
(rent in thousands)
The following table lists the top tenants in the portfolio as of March 31, 2023, based on signed leases and including Unconsolidated Properties presented at the Company’s proportional share:
| | | | | | | | | |
| Number of | | | Total | | % of Total | |
Tenant | Leases | SF | | Rent | | Rent | Concepts / Brands |
Dick's Sporting Goods | 6 | | 382,708 | | | 7,175 | | 11.2% | |
Amazon | 2 | | 99,193 | | | 5,435 | | 8.5% | |
Dave & Buster's | 5 | | 158,879 | | | 4,808 | | 7.5% | |
Primark | 3 | | 115,685 | | | 3,040 | | 4.7% | |
Round One Entertainment | 3 | | 132,445 | | | 2,866 | | 4.5% | |
Nordstrom Rack | 3 | | 116,868 | | | 2,578 | | 4.0% | |
Floor & Décor | 2 | | 147,971 | | | 2,035 | | 3.2% | |
Mixtura | 1 | | 22,038 | | | 1,820 | | 2.8% | |
Cinemark | 2 | | 59,470 | | | 1,614 | | 2.5% | |
Pinstripes | 1 | | 26,515 | | | 1,482 | | 2.3% | |
Whole Foods | 2 | | 71,235 | | | 1,258 | | 2.0% | |
TJX | 3 | | 63,823 | | | 1,056 | | 1.6% | TJ Maxx, Marshalls, HomeGoods, HomeSense, Sierra Trading Post |
CCRM | 1 | | 18,179 | | | 1,000 | | 1.6% | |
Industrious | 1 | | 26,501 | | | 999 | | 1.6% | |
GameTime | 1 | | 49,811 | | | 996 | | 1.6% | |
Ulta Salon | 3 | | 31,751 | | | 892 | | 1.4% | |
BJ's Wholesale Club | 1 | | 52,516 | | | 840 | | 1.3% | |
Grupo Carolo | 1 | | 7,742 | | | 774 | | 1.2% | |
Ashley Furniture | 1 | | 35,320 | | | 766 | | 1.2% | |
Darden | 3 | | 23,818 | | | 721 | | 1.1% | Longhorn Steakhouse, Olive Garden, Seasons 52, Yardhouse, Bahama Breeze, Cheddar's |
Total | 45 | | 1,642,468 | | | 42,155 | | 65.8% | |
11
Multi-tenant Retail
Consolidated Properties
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Total | | | Leased | | | SNO | | | | | Land | | | |
Property Address | | City | | State | | GLA (1) | | | SF (1) | | | SF (1) | | | Leased (1) | | Acres | | | Significant Tenants (1) |
575 Fletcher Parkway | | El Cajon | | CA | | | 227,300 | | | | 184,400 | | | | - | | | 81.1% | | | 20 | | | Ashley Furniture, Bob's Discount Furniture, Burlington Stores, Extra Space Storage |
40710 Winchester Road | | Temecula | | CA | | | 126,500 | | | | 112,800 | | | | 8,000 | | | 95.5% | | | 10 | | | Round One Entertainment, Dick's Sporting Goods, Texas Roadhouse |
145 West Hillcrest Drive | | Thousand Oaks | | CA | | | 172,000 | | | | 113,700 | | | | - | | | 66.1% | | | 11 | | | Dave & Busters, DSW, Nordstrom Rack |
3111 East Colonial Drive | | Orlando | | FL | | | 107,600 | | | | 94,300 | | | | 2,300 | | | 89.8% | | | 13 | | | Floor & Décor, Aspen Dental, Del Taco |
2300 Tyrone Boulevard North | | St. Petersburg | | FL | | | 125,700 | | | | 97,700 | | | | 28,000 | | | 100.0% | | | 13 | | | Dick's Sporting Goods, Five Below, PetSmart, Verizon |
200 Grossman Drive | | Braintree | | MA | | | 85,100 | | | | 47,600 | | | | 37,500 | | | 100.0% | | | 34 | | | Nordstrom Rack, Ulta Beauty |
1500 South Willow Street | | Manchester | | NH | | | 105,700 | | | | 80,400 | | | | - | | | 76.1% | | | 11 | | | Dick's Sporting Goods, Dave & Buster's |
1640 Route 22 | | Watchung | | NJ | | | 124,900 | | | | 117,000 | | | | 7,900 | | | 100.0% | | | 12 | | | Cinemark, HomeGoods, Sierra Trading Post, Ulta Beauty, Chick-fil-A , City MD, Starbucks |
160 North Gulph Road | | King of Prussia (2) | | PA | | | 208,700 | | | | 174,500 | | | | - | | | 83.6% | | | 14 | | | Dick's Sporting Goods, Primark, Outback Steakhouse, Yardhouse, Dave & Busters |
12000 Fair Oaks Mall | | Fairfax | | VA | | | 212,700 | | | | 154,400 | | | | - | | | 72.6% | | | 15 | | | Dave & Busters, Dick's Sporting Goods |
141 West Lee Highway | | Warrenton | | VA | | | 71,500 | | | | 62,400 | | | | - | | | 87.3% | | | 9 | | | HomeGoods, Ulta, Five Below |
27001 U.S. 19 North | | Clearwater | | FL | | | 212,900 | | | | 75,500 | | | | - | | | 35.5% | | | 14 | | | Whole Foods, Nordstrom Rack |
1425 Central Avenue | | Albany | | NY | | | 238,200 | | | | 59,600 | | | | 76,300 | | | 57.1% | | | 21 | | | Whole Foods, Ethan Allen |
Total | | | | | | | 2,018,800 | | | | 1,374,300 | | | | 160,000 | | | 76.0% | | | 198 | | | |
(1) Based on signed leases as of March 31, 2023; GLA presented at the Company’s proportional share
(2) Property is subject to a ground lease
12
Residential
Consolidated Properties
| | | | | | | | | | | | | | | | |
| | | | | | Land | | | % of Auxiliary | | Auxiliary | | | |
Property Address | | City | | State | | Acres | | | Leased SF (1) | | Leased SF (1) | | | Significant Tenants (1) |
5261 Arlington Avenue | | Riverside - Resi | | CA | | | 14 | | | 0% | | | - | | | n/a |
5261 Arlington Avenue | | Riverside - Retail (2) | | CA | | | 5 | | | 100% | | | 33,200 | | | Bank of America, Aldi |
Total | | | | | | | 19 | | | 100% | | | 33,200 | | | |
(1) Based on signed leases as of March 31, 2023; GLA presented at the Company’s proportional share
(2) Riverside Retail doesn’t include residential but includes retail leasing that is 100% SRG owned and complementary to the Residential developments at the sites.
Joint Ventures
| | | | | | | | | | | | | | | | | | |
Brookfield Retail Partners (formerly GGP, Inc.) Joint Venture Properties | |
| | | | | | | | Land | | | % of Auxiliary | | Auxiliary | | | |
Mall Name | | City | | State | | Joint Venture | | Acres | | | Leased SF | | SF (1) | | | Significant Tenants (1) |
Alderwood | | Lynnwood (2) | | WA | | GGP I JV | | | 12 | | | 65.5% | | | 31,900 | | | Dave & Busters, Cheesecake Factory, Fogo De Chao, Shake Shack |
(1) Based on signed leases as of March 31, 2023; GLA presented at the Company’s proportional share
(2) Indicates assets that are put right eligible as of May 9, 2023
13
Premier Mixed-Use Properties
Consolidated Properties
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Total | | | Leased | | | SNO | | | | | | Land | | |
Property Address | | City | | State | | GLA (1) | | | SF (1) | | | SF (1) | | | Leased (1) | | | Acres | | Site Opportunities |
19505 Biscayne Boulevard | | Aventura | | FL | | | 216,100 | | | | - | | | | 143,900 | | | | 66.6 | % | | 13 | | Retail |
5900 Glades Road | | Boca Raton | | FL | | | 4,200 | | | | 4,200 | | | | - | | | | 100.0 | % | | 19 | | Retail |
195 North Broadway | | Hicksville | | NY | | | 7,600 | | | | 7,600 | | | | - | | | | 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 | | | | | | | 235,400 | | | | 19,300 | | | | 143,900 | | | | 69.3 | % | | 100 | | |
Joint Ventures
| | | | | | | | | | | | | | | | | | | | | | |
Invesco Real Estate Joint Venture Properties | | | | | | | | |
| | | | | | Total | | | Leased | | | SNO | | | | | Land | | |
Property Address | | City | | State | | GLA (1) | | | SF (1) | | | SF (1) | | | Leased (1) | | Acres | | Site Opportunities |
302 Colorado Ave | | Santa Monica | | CA | | | 51,500 | | | | - | | | | - | | | 0.0% | | 3 | | Residential, Retail, Office |
4575 La Jolla Village Dr | | San Diego | | CA | | | 106,200 | | | | 92,800 | | | | 13,400 | | | 100.0% | | 13 | | Life Sciences / Office, Retail |
5901 Duke St | | Alexandria | | VA | | | - | | | | - | | | | - | | | 0.0% | | 41 | | Residential |
Total | | | | | | | 157,700 | | | | 92,800 | | | | 13,400 | | | 67.3% | | 57 | | |
(1) Based on signed leases as of March 31, 2023; GLA presented at the Company’s proportional share
14
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 | | SF (1) | | | SF (1) | | | SF (1) | | | Leased (1) | | Acres | | Significant Tenants (1) |
Altamonte Mall | | Altamonte Springs | | FL | | GGP II JV | | | 93,500 | | | | 4,700 | | | | - | | | 5.0% | | 17 | | n/a |
Coastland Center | | Naples (2) | | FL | | GGP II JV | | | 36,300 | | | | 28,300 | | | | 8,000 | | | 100.0% | | 12 | | CMX Cinebistro, Uncle Julio’s |
Willowbrook Mall | | Wayne (2) | | NJ | | GGP II JV | | | 132,700 | | | | 105,200 | | | | - | | | 79.3% | | 41 | | Cinemark, Dave & Busters, Yardhouse, BJ's Wholesale |
Stonebriar Centre | | Frisco | | TX | | GCP I JV | | | 87,500 | | | | 6,000 | | | | - | | | 6.9% | | 11 | | n/a |
Total | | | | | | | | | 350,000 | | | | 144,200 | | | | 8,000 | | | 43.5% | | 81 | | |
Simon Joint Venture Properties | | | | | | | |
| | | | | | | | Total | | | Leased | | | SNO | | | | | Land | | |
Mall Name | | City | | State | | Joint Venture | | GLA (1) | | | SF (1) | | | SF (1) | | | Leased (1) | | Acres | | Significant Tenants (1) |
Santa Rosa Plaza | | Santa Rosa | | CA | | Simon JV | | | 82,700 | | | | - | | | | - | | | 0.0% | | 7 | | n/a |
The Shops at Nanuet | | Nanuet | | NY | | Simon JV | | | 110,700 | | | | - | | | | - | | | 0.0% | | 14 | | n/a |
Barton Creek Square | | Austin | | TX | | Simon JV | | | 82,300 | | | | - | | | | - | | | 0.0% | | 16 | | n/a |
Total | | | | | | | | | 275,700 | | | | - | | | | - | | | 0.0% | | 37 | | |
| | | | | | | | | | | | | | | | | | | | | |
Macerich Joint Venture Properties | | | | |
| | | | | | | | Total | | | Leased | | | SNO | | | | | Land | | |
Mall Name | | City | | State | | Joint Venture | | GLA (1) | | | SF (1) | | | SF (1) | | | Leased (1) | | Acres | | Significant Tenants (1) |
Chandler Fashion Center | | Chandler | | AZ | | Macerich JV | | | 70,300 | | | | 5,000 | | | | - | | | 7.1% | | 10 | | Firestone |
Los Cerritos Center | | Cerritos | | CA | | Macerich JV | | | 138,800 | | | | - | | | | - | | | 0.0% | | 20 | | n/a |
Danbury Fair | | Danbury (2) | | CT | | Macerich JV | | | 88,000 | | | | 24,700 | | | | 63,300 | | | 100.0% | | 12 | | Primark, Target |
Freehold Raceway Mall | | Freehold | | NJ | | Macerich JV | | | 68,800 | | | | 32,700 | | | | - | | | 47.5% | | 10 | | Primark, Bob's Discount Furniture |
Washington Square Mall | | Portland | | OR | | Macerich JV | | | 114,300 | | | | - | | | | - | | | 0.0% | | 4 | | n/a |
Total | | | | | | | | | 480,200 | | | | 62,400 | | | | 63,300 | | | 26.2% | | 56 | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Other | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Total | | | Leased | | | SNO | | | | | Land | | |
Property Address | | City | | State | | Joint Venture | | GLA (1) | | | SF (1) | | | SF (1) | | | Leased (1) | | Acres | | Significant Tenants (1) |
12625 North Interstate Highway 35 | | Austin | | TX | | RD Development JV | | | - | | | | - | | | | - | | | 0.0% | | 11 | | n/a |
| | | | | | | | | | | | | | | | | | | | | |
(1) Based on signed leases as of March 31, 2023; GLA presented at the Company’s proportional share
(2) Indicates assets that are put right eligible as of May 9, 2023
15
Non-core Properties
Consolidated Properties
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Total | | | Leased | | | SNO | | | | | Land | | | |
Property Address | | City | | State | | GLA (1) | | | SF (1) | | | SF (1) | | | Leased (1) | | Acres | | | Significant Tenants (1) |
3930 McCain Boulevard | | North Little Rock | | AR | | | 177,300 | | | | 13,000 | | | | - | | | 7.3% | | | 15 | | | Aspen Dental, Longhorn Steakhouse |
3150 South 4th Avenue | | Yuma | | AZ | | | 90,100 | | | | - | | | | - | | | 0.0% | | | 15 | | | n/a |
3751 South Dogwood Road | | El Centro | | CA | | | 9,700 | | | | 9,700 | | | | - | | | 100.0% | | | 1 | | | n/a |
1011 West Olive Avenue | | Merced (3) | | CA | | | 92,700 | | | | - | | | | 5,300 | | | 5.7% | | | 9 | | | Chilis |
1400 East 104th Avenue | | Thornton | | CO | | | 193,700 | | | | 61,700 | | | | - | | | 31.9% | | | 23 | | | Vasa Fitness |
1625 Northwest 107th Avenue | | Doral | | FL | | | 195,600 | | | | - | | | | - | | | 0.0% | | | 13 | | | n/a |
733 North Highway 231 | | Panama City | | FL | | | 134,300 | | | | - | | | | - | | | 0.0% | | | 15 | | | n/a |
7171 North Davis Highway | | Pensacola | | FL | | | 7,900 | | | | 7,900 | | | | - | | | 100.0% | | | 14 | | | Bubba's 33 |
4600 1st Avenue Northeast | | Cedar Rapids | | IA | | | 146,300 | | | | - | | | | - | | | 0.0% | | | 12 | | | n/a |
5050 South Kedzie Avenue | | Chicago (2) | | IL | | | 175,900 | | | | 17,200 | | | | - | | | 9.8% | | | 9 | | | Chuck E Cheese |
3231 Chicago Road | | Steger | | IL | | | 101,700 | | | | - | | | | - | | | 0.0% | | | 3 | | | n/a |
4000 Meadows Lane | | Las Vegas | | NV | | | 132,600 | | | | 42,500 | | | | - | | | 32.1% | | | 11 | | | Round One Entertainment |
5400 Meadowood Mall Circle | | Reno | | NV | | | 174,900 | | | | 59,300 | | | | - | | | 33.9% | | | 3 | | | Round One Entertainment, 4 Wheel Parts |
317 Greece Ridge Center Drive | | Rochester | | NY | | | 139,600 | | | | - | | | | - | | | 0.0% | | | 14 | | | n/a |
2700 Miamisburg Centerville Road | | Dayton | | OH | | | 13,400 | | | | 13,400 | | | | - | | | 100.0% | | | 5 | | | Outback Steakhouse, Hook & Reel |
4400 South Western Avenue | | Oklahoma City | | OK | | | 147,500 | | | | - | | | | - | | | 0.0% | | | 14 | | | Vasa Fitness |
1675 West 49th Street | | Hialeah | | FL | | | 153,200 | | | | - | | | | - | | | 0.0% | | | 15 | | | n/a |
4000 North Shepherd | | Houston | | TX | | | 201,600 | | | | - | | | | - | | | 0.0% | | | 12 | | | n/a |
8000 West Broward Boulevard | | Plantation | | FL | | | 204,100 | | | | - | | | | 49,800 | | | 24.4% | | | 18 | | | GameTime |
15700 Emerald Way | | Bowie | | MD | | | 126,400 | | | | - | | | | - | | | 0.0% | | | 11 | | | n/a |
425 Rice Street | | St. Paul (2) | | MN | | | 201,900 | | | | 100 | | | | - | | | 0.0% | | | 17 | | | n/a |
1180 Southeast 82nd Avenue | | Happy Valley | | OR | | | 139,800 | | | | 45,000 | | | | - | | | 32.2% | | | 12 | | | Dick's Sporting Goods |
6515 East Southern Avenue | | Mesa | | AZ | | | 136,000 | | | | - | | | | - | | | 0.0% | | | 5 | | | n/a |
7611 West Thomas Road | | Phoenix | | AZ | | | 144,500 | | | | - | | | | - | | | 0.0% | | | 5 | | | n/a |
6950 West 130th Street | | Middleburg Heights | | OH | | | 369,500 | | | | - | | | | - | | | 0.0% | | | 19 | | | n/a |
7875 Johnnycake Ridge Road | | Mentor | | OH | | | 215,300 | | | | - | | | | - | | | 0.0% | | | 20 | | | n/a |
2800 North Germantown Parkway | | Cordova (2) | | TN | | | 160,600 | | | | - | | | | - | | | 0.0% | | | 12 | | | n/a |
100 Inland Center | | San Bernardino | | CA | | | 264,700 | | | | - | | | | - | | | 0.0% | | | 20 | | | n/a |
850 Hartford Turnpike | | Waterford | | CT | | | 149,200 | | | | - | | | | - | | | 0.0% | | | 11 | | | n/a |
4125 Cleveland Avenue | | Ft. Myers | | FL | | | 146,800 | | | | - | | | | - | | | 0.0% | | | 12 | | | n/a |
3800 US Highway 98 North | | Lakeland | | FL | | | 156,200 | | | | - | | | | - | | | 0.0% | | | 12 | | | n/a |
14250 Buck Hill Road | | Burnsville | | MN | | | 167,300 | | | | - | | | | - | | | 0.0% | | | 15 | | | n/a |
3001 White Bear Avenue North | | Maplewood | | MN | | | 175,000 | | | | - | | | | - | | | 0.0% | | | 14 | | | n/a |
3207 Solomons Island Road | | Edgewater | | MD | | | 122,000 | | | | - | | | | - | | | 0.0% | | | 14 | | | n/a |
Total | | | | | | | 5,167,300 | | | | 269,800 | | | | 55,100 | | | 6.3% | | | 418 | | | |
(1) Based on signed leases as of March 31, 2023; GLA presented at the Company’s proportional share
(2) Indicates assets that have been sold subsequent to March 31, 2023
(3) Indicates assets with a partial sale subsequent to March 31, 2023
16
Sold Properties through March 31, 2023
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Total | | | In-Place | | | SNO | | | | | 2023 Qtr | |
Property Address | | City | | State | | Full / Partial Sale | | SF (1) | | | SF (1) | | | SF (1) | | | Leased (1) | | Sold | |
2 Orland Square Drive | | Orland Park | | IL | | Full Site | | | 202,800 | | | | - | | | | - | | | 0.0% | | Q1 | |
4000 Jericho Turnpike | | East Northport | | NY | | Full Site | | | 179,800 | | | | 167,600 | | | | - | | | 93.2% | | Q1 | |
12025 North 32nd Street | | Phoenix | | AZ | | Full Site | | | 151,200 | | | | 151,200 | | | | - | | | 100.0% | | Q1 | |
2860 South Highland Avenue | | Lombard | | IL | | Full Site | | | 139,300 | | | | 139,300 | | | | - | | | 100.0% | | Q1 | |
7503 West Cermak Road | | North Riverside | | IL | | Full Site | | | 214,700 | | | | 163,900 | | | | 19,700 | | | 85.5% | | Q1 | |
2500 Wabash Avenue | | Springfield | | IL | | Full Site | | | 119,400 | | | | 108,000 | | | | 11,400 | | | 100.0% | | Q1 | |
4201 Coldwater Road | | Ft. Wayne | | IN | | Full Site | | | 84,100 | | | | 76,700 | | | | 6,200 | | | 98.6% | | Q1 | |
101 West Lincoln Highway | | Merrillville | | IN | | Full Site | | | 171,300 | | | | 163,000 | | | | 1,600 | | | 96.1% | | Q1 | |
4700 2nd Avenue | | Kearney | | NE | | Full Site | | | 64,900 | | | | 64,900 | | | | - | | | 100.0% | | Q1 | |
4100 Belden Village Avenue Northwest | | Canton | | OH | | Full Site | | | 192,300 | | | | 128,300 | | | | 10,000 | | | 71.9% | | Q1 | |
4570 Poplar Avenue | | Memphis | | TN | | Full Site | | | 116,000 | | | | 101,200 | | | | 8,800 | | | 94.8% | | Q1 | |
12625 North Interstate Highway 35 | | Austin | | TX | | Full Site | | | 52,700 | | | | 45,000 | | | | - | | | 85.4% | | Q1 | |
9484 Dyer Street | | El Paso | | TX | | Full Site | | | 107,800 | | | | 99,100 | | | | - | | | 91.9% | | Q1 | |
12605 North Gessner Road | | Houston | | TX | | Full Site | | | 134,000 | | | | 134,000 | | | | - | | | 100.0% | | Q1 | |
201 Central Park Mall | | San Antonio | | TX | | Full Site | | | 164,600 | | | | 158,200 | | | | - | | | 96.1% | | Q1 | |
5200 South 76th Street | | Greendale | | WI | | Full Site | | | 217,600 | | | | 133,700 | | | | - | | | 61.4% | | Q1 | |
53 West Towne Mall | | Madison | | WI | | Full Site | | | 110,600 | | | | 110,600 | | | | - | | | 100.0% | | Q1 | |
2501 Irving Mall | | Irving | | TX | | Partial Site | | | 94,865 | | | | - | | | | - | | | 0.0% | | Q1 | |
2010 North Main Street | | Layton | | UT | | Full Site | | | 82,700 | | | | 67,500 | | | | - | | | 81.6% | | Q1 | |
7801 Rivers Avenue | | Charleston | | SC | | Full Site | | | 106,200 | | | | 52,900 | | | | - | | | 49.8% | | Q1 | |
1209 Plaza Drive | | West Covina - Retail | | CA | | Full Site | | | 11,000 | | | | 11,000 | | | | - | | | 100.0% | | Q1 | |
1209 Plaza Drive | | West Covina - Resi | | CA | | Full Site | | | 11,000 | | | | 11,000 | | | | - | | | 100.0% | | Q1 | |
2501 Irving Mall | | Irving | | TX | | Partial Site | | | 4,992 | | | | 4,992 | | | | - | | | 100.0% | | Q1 | |
2501 Irving Mall | | Irving | | TX | | Partial Site | | | 7,500 | | | | 7,500 | | | | - | | | 100.0% | | Q1 | |
3636 North Blackstone Avenue | | Fresno | | CA | | Full Site | | | 201,800 | | | | 43,400 | | | | - | | | 21.5% | | Q1 | |
6301 Northwest Loop 410 | | Ingram | | TX | | Full Site | | | 169,900 | | | | - | | | | - | | | 0.0% | | Q1 | |
600 Lee Boulevard | | Yorktown Heights | | NY | | Full Site | | | 153,200 | | | | 38,500 | | | | - | | | 25.1% | | Q1 | |
Total | | | | | | | | | 3,266,257 | | | | 2,181,492 | | | | 57,700 | | | 68.6% | | | |
(1) Based on signed leases as of March 31, 2023; GLA presented at the Company’s proportional share
17
REA Status by Sites and Category
| | | | | | | | | | | | | | | | |
| | No / Expired REA | | | Expires in <5 years | | | Expires in >5 years | | | Total | |
MT Retail | | | 3 | | | | - | | | | 10 | | | | 13 | |
Premier Mixed-use | | | 6 | | | | 1 | | | | 1 | | | | 8 | |
Joint Venture (Residential) | | | 3 | | | | - | | | | - | | | | 3 | |
Joint Venture (Mall REIT) | | | 1 | | | | - | | | | 11 | | | | 12 | |
Joint Venture )(Other | | | - | | | | - | | | | 1 | | | | 1 | |
Sell | | | 9 | | | | 3 | | | | 23 | | | | 35 | |
Total | | | 22 | | | | 4 | | | | 46 | | | | 72 | |
% of Total | | | 31 | % | | | 6 | % | | | 64 | % | | | 100 | % |
18
Non-GAAP Financial Measures
The Company makes reference to NOI and Total NOI which are financial measures that include adjustments to accounting principles generally accepted in the United States (“GAAP”).
Neither of NOI or Total NOI 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 real estate companies may use different methodologies for calculating NOI, and accordingly the Company’s depiction of NOI may not be comparable to other real estate companies. 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 properties. 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 properties 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.
19
