Seritage Growth Properties (SRG) 8-K Seritage Growth Properties Reports Second Quarter 2019 Operating Results

Exhibit 99.2

 

SUPPLEMENTAL INFORMATION       ||      PERIOD ENDED JUNE 30,2019

 

INTRODUCTION

Overview

Seritage Growth Properties (NYSE: SRG) (“Seritage” or the “Company”) is a fully-integrated, self-administered and self-managed REIT that is principally engaged in the acquisition, ownership, development, redevelopment, management, and leasing of diversified retail and mixed-use real estate throughout the United States.

As of June 30, 2019, the Company’s portfolio consisted of interests in 221 properties totaling approximately 35.1 million square feet of gross leasable area, including 194 wholly owned properties totaling approximately 30.3 million square feet of GLA across 45 states and Puerto Rico (the “Wholly Owned Properties”), and interests in 27 joint venture properties totaling approximately 4.8 million square feet of GLA across 14 states (the “JV Properties”).

The Company’s primary objective is to create value for its shareholders through the re-leasing and redevelopment of the majority of its Wholly Owned Properties and JV Properties.  In doing so, the Company expects to meaningfully grow net operating income and diversify its tenant base while transforming its portfolio from one with a single-tenant orientation to one comprised predominately of first-class, multi-tenant shopping centers and larger-scale, mixed-use properties.  In order to achieve its objective, the Company intends to execute the following strategies:

• Convert single-tenant buildings into multi-tenant properties at meaningfully higher rents;

• Maximize value of vast land holdings through retail and mixed-use densification;

• Leverage existing and future joint venture relationships with leading landlords and financial partners; and

• Maintain a flexible capital structure to support value creation activities.

Background

On June 11, 2015, Sears Holdings Corporation (“Sears Holdings”) effected a rights offering to Sears Holdings stockholders to purchase common shares of Seritage in order to fund, in part, the $2.7 billion acquisition of (i) 234 of Sears Holdings’ owned properties and one of its ground leased properties (the “Acquired Properties”), and (ii) Sears Holdings’ 50% interests in three joint ventures that collectively owned 28 properties, ground leased one property and leased two properties (the “Acquired JV Properties”).  Concurrent with the acquisition, the Company leased back to Sears Holdings space at 224 of the Acquired Properties under a master lease agreement (the “Original Master Lease”) and space at all 31 Acquired JV Properties under multiple master lease agreements (the “Original JV Master Leases”).

The rights offering ended on July 2, 2015, and the Company’s Class A common shares were listed on the New York Stock Exchange on July 6, 2015.  On July 7, 2015, the Company completed the transactions with Sears Holdings and commenced operations.  The Company did not have any operations prior to the completion of the rights offering and the transactions with Sears Holdings.

As of June 30, 2019, the Company leased space at 50 Wholly Owned Properties to Transform Holdco LLC (“Holdco”), an affiliate of ESL Investments, Inc. (“ESL”) and the successor to Sears Holdings, under a master lease (the “Holdco Master Lease”).  The Company also leased space to Holdco at four JV Properties (the “Holdco JV Leases”).  Under the Holdco Master Lease and Holdco JV Leases, the Company has the right to recapture certain space at each property occupied by Holdco for retenanting or redevelopment purposes.

General Information

Unless the context indicates otherwise, references in this supplemental information package (the "Supplemental") to "Seritage Growth,” “Seritage,” the “Company,” or “SRG” refer to Seritage Growth Properties and its subsidiaries.  Additionally, where reference is made to "GAAP", this refers to accounting principles generally accepted in the United States.

i

TABLE OF CONTENTS

SERITAGE GROWTH PROPERTIES

SUPPLEMENTAL INFORMATION

PERIOD ENDED JUNE 30, 2019

	Page
COMPANY INFORMATION	1
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets	2
Condensed Consolidated Statements of Operations	3
SUPPLEMENTAL FINANCIAL INFORMATION
Market Capitalization and Financial Ratios	4
Total Net Operating Income	5
EBITDAre and Company EBITDA	6
Funds from Operations and Company FFO	7
Additional Information	8
PROPERTY INFORMATION
Portfolio Overview	10
Leasing Activity	13
Redevelopment Projects	14
Termination Properties	20
Joint Venture Properties	22
Wholly Owned Properties	24
DISCLOSURES
Non-GAAP Measures	30
Forward-Looking Statements	31

ii

COMPANY INFORMATION

Company Contacts
Benjamin Schall	President and Chief Executive Officer	Kenneth Lombard	EVP and Chief Operating Officer
Brian Dickman	EVP and Chief Financial Officer	Matthew Fernand	EVP and General Counsel
James Bry	EVP, Development and Construction	Mary Rottler	EVP, Leasing and Operations
ir@seritage.com	Investor Relations and Communications	646.277.1268

Summary Information

June 30, 2019

(In thousands, except per share, PSF and ratio amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
Financial Results	2019			2018			2019			2018
Net (loss) income attributable to Seritage    common shareholders (page 3)	$	(18,128	)	$	(7,996	)	$	(26,320	)	$	1,104
Total NOI (page 5)		14,645			36,460			38,923			73,339
FFO (page 7)		(6,167	)		6,487			(11,345	)		17,535
Company FFO (page 7)		(6,062	)		8,529			(11,122	)		20,958
Net (loss) income per diluted share attributable    to Seritage common shareholders (page 3)	$	(0.50	)	$	(0.23	)	$	(0.73	)	$	0.03
FFO per diluted share (page 7)		(0.11	)		0.12			(0.20	)		0.31
Company FFO per diluted share (page 7)		(0.11	)		0.15			(0.20	)		0.38
Wtd. avg. diluted shares - EPS		36,291			35,483			35,983			35,588
Wtd. avg diluted shares - FFO/share		55,806			55,641			55,798			55,776
Stock trading price range	$40.07 to $46.49			$34.64 to $44.53			$32.98 to $46.49			$34.50 to $44.53
							As of			As of
Financial Ratios (page 4)							June 30, 2019			December 31, 2018
Total debt to total market capitalization								39.3	%		46.1	%
Net debt to Company EBITDA								14.9	x		10.3	x
Company EBITDA to cash interest expense								0.9	x		1.3	x
							As of			As of
Property Data (page 10)							June 30, 2019			December 31, 2018
Number of properties								221			232
Gross leasable area (total / at share)							35,108 / 32,691			36,299 / 33,951
Percentage leased (total / at share)							51.0% / 52.4%			67.0% / 66.3%
				As of June 30, 2019
							% of Total
Tenant				Annual Rent			Annual Rent			Annual Rent PSF
Sears/Kmart				$	20,320			10.9	%	$	3.01
In-place diversified, non-Sears leases					79,756			42.9	%		13.41
Signed not yet opened ("SNO") in-place    diversified, non-Sears leases					85,740			46.2	%		19.26
Total				$	185,816			100.0	%	$	10.84
				As of June 30, 2018
							% of Total
Tenant				Annual Rent			Annual Rent			Annual Rent PSF
Sears/Kmart				$	96,567			43.1	%	$	4.51
In-place diversified, non-Sears leases					56,778			25.4	%		12.98
SNO in-place diversified, non-Sears leases					70,560			31.5	%		18.98
Total				$	223,905			100.0	%	$	6.57

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CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheets (unaudited)

June 30, 2019

(In thousands, except share and per share amounts)

	June 30, 2019			December 31, 2018
ASSETS
Investment in real estate
Land	$	686,160		$	696,792
Buildings and improvements		932,624			900,173
Accumulated depreciation		(158,446	)		(137,947	)
		1,460,338			1,459,018
Construction in progress		393,655			292,049
Net investment in real estate		1,853,993			1,751,067
Real estate held for sale		5,277			3,094
Investment in unconsolidated joint ventures		418,967			398,577
Cash and cash equivalents		325,505			532,857
Tenant and other receivables, net		50,388			36,926
Lease intangible assets, net		96,332			123,656
Prepaid expenses, deferred expenses and other assets, net		48,286			29,899
Total assets	$	2,798,748		$	2,876,076
LIABILITIES AND EQUITY
Liabilities
Term Loan Facility, net	$	1,598,276		$	1,598,053
Accounts payable, accrued expenses and other liabilities		104,952			127,565
Total liabilities		1,703,228			1,725,618
Commitments and contingencies
Shareholders' Equity
Class A common shares $0.01 par value; 100,000,000 shares authorized;    36,828,991 and 35,667,521 shares issued and outstanding    as of June 30, 2019 and December 31, 2018, respectively		368			357
Class B common shares $0.01 par value; 5,000,000 shares authorized;    1,247,060 shares issued and outstanding    as of June 30, 2019 and December 31, 2018		12			13
Series A preferred shares $0.01 par value; 10,000,000 shares authorized;     2,800,000 shares issued and outstanding as of June 30, 2019 and     December 31, 2018; liquidation preference of $70,000		28			28
Additional paid-in capital		1,144,458			1,124,504
Accumulated deficit		(380,734	)		(344,132	)
Total shareholders' equity		764,132			780,770
Non-controlling interests		331,388			369,688
Total equity		1,095,520			1,150,458
Total liabilities and equity	$	2,798,748		$	2,876,076

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CONSOLIDATED FINANCIAL STATEMENTS

Condensed Consolidated Statements of Operations (unaudited)

June 30, 2019

(In thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
REVENUE
Rental revenue	$	38,697		$	48,356		$	82,275		$	102,133
Management and other fee income		1,814			914			2,096			914
Total revenue		40,511			49,270			84,371			103,047
EXPENSES
Property operating		9,302			6,533			19,539			13,774
Real estate taxes		10,159			9,217			20,351			20,598
Depreciation and amortization		20,194			49,551			46,410			84,218
General and administrative		8,297			8,673			18,056			16,470
Provision for doubtful accounts		—			109			—			170
Total expenses		47,952			74,083			104,356			135,230
Gain on sale of real estate, net		11,612			34,187			32,873			76,018
Equity in loss of unconsolidated joint ventures		(9,944	)		(2,158	)		(8,722	)		(4,740	)
Interest and other income		2,175			456			4,773			1,136
Interest expense		(22,141	)		(17,862	)		(45,595	)		(34,281	)
Change in fair value of interest rate cap		—			(172	)		—			(7	)
(Loss) income before taxes		(25,739	)		(10,362	)		(36,656	)		5,943
Provision for taxes		(146	)		(240	)		(123	)		(344	)
Net (loss) income		(25,885	)		(10,602	)		(36,779	)		5,599
Net income (loss) attributable to non-controlling interests		8,982			3,831			12,909			(2,042	)
Net loss (income) attributable to Seritage	$	(16,903	)	$	(6,771	)	$	(23,870	)	$	3,557
Preferred dividends		(1,225	)		(1,225	)		(2,450	)		(2,453	)
Net (loss) income attributable to Seritage common shareholders	$	(18,128	)	$	(7,996	)	$	(26,320	)	$	1,104
Net (loss) income per share attributable to Seritage Class A    and Class C common shareholders - Basic	$	(0.50	)	$	(0.23	)	$	(0.73	)	$	0.03
Net (loss) income per share attributable to Seritage Class A    and Class C common shareholders - Diluted	$	(0.50	)	$	(0.23	)	$	(0.73	)	$	0.03
Weighted average Class A and Class C common shares    outstanding - Basic		36,291			35,483			35,983			35,449
Weighted average Class A and Class C common shares    outstanding - Diluted		36,291			35,483			35,983			35,588

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SUPPLEMENTAL FINANCIAL INFORMATION

Market Capitalization and Financial Ratios

June 30, 2019

(In thousands, except per share and ratio amounts)

	As of			As of
Equity Market Capitalization	June 30, 2019			December 31, 2018
Class A common shares outstanding		36,829			35,668
OP units outstanding		18,973			20,119
Total shares & units outstanding		55,802			55,787
Share Price	$	42.96		$	32.33
Equity market capitalization	$	2,397,254		$	1,803,594
Total Market Capitalization
Equity market capitalization	$	2,397,254		$	1,803,594
Preferred equity		70,000			70,000
Total debt		1,600,000			1,600,000
Total market capitalization	$	4,067,254		$	3,473,594
Financial Ratios
Total debt to total market capitalization		39.3	%		46.1	%
Total debt	$	1,600,000		$	1,600,000
Cash and cash equivalents		(325,505	)		(532,857	)
Net Debt	$	1,274,495		$	1,067,143
Net debt to Company EBITDA (1)		14.9	x		10.3	x
Gross real estate investments	$	2,255,947		$	2,156,295
Investment in unconsolidated joint ventures		418,967			398,577
Total real estate investments	$	2,674,914		$	2,554,872
Net debt to total real estate investments		47.6	%		41.8	%
Interest expense (net of amounts capitalized) (1)	$	101,334		$	90,020
Amortization of deferred financing costs (1)		(6,956	)		(10,323	)
Cash interest expense (net of amounts capitalized) (1)	$	94,378		$	79,697
Company EBITDA to cash interest expense (net of amounts capitalized) (1)		0.9	x		1.3	x

(1) For the twelve months ended June 30, 2019 and December 31, 2018, respectively.

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SUPPLEMENTAL FINANCIAL INFORMATION

Total Net Operating Income

June 30, 2019

(In thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
NOI and Total NOI	2019			2018			2019			2018
Net (loss) income	$	(25,885	)	$	(10,602	)	$	(36,779	)	$	5,599
Termination fee income		—			—			—			(174	)
Management and other fee income		(1,814	)		(914	)		(2,096	)		(914	)
Depreciation and amortization		20,194			49,551			46,410			84,218
General and administrative expenses		8,297			8,673			18,056			16,470
Equity in loss of unconsolidated    joint ventures		9,944			2,158			8,722			4,740
Gain on sale of real estate		(11,612	)		(34,187	)		(32,873	)		(76,018	)
Interest and other income		(2,175	)		(456	)		(4,773	)		(1,136	)
Interest expense		22,141			17,862			45,595			34,281
Change in fair value of interest rate cap		—			172			—			7
Provision for income taxes		146			240			123			344
NOI	$	19,236		$	32,497		$	42,385		$	67,417
NOI of unconsolidated joint ventures		2,849			5,007			7,159			9,765
Straight-line rent adjustment (1)		(5,923	)		(606	)		(8,903	)		(3,174	)
Above/below market rental income/expense (1)		(1,517	)		(438	)		(1,718	)		(669	)
Total NOI	$	14,645		$	36,460		$	38,923		$	73,339

	As of June 30,
Annualized Total NOI	2019			2018
Total NOI (per above)	$	14,645		$	36,460
Period adjustments (2)		1,355			189
Adjusted Total NOI		16,000			36,649
Annualize		x 4			x 4
Adjusted Total NOI annualized		64,000			146,596
Plus: estimated annual Total NOI from SNO leases		83,168			68,870
Less: estimated annual Total NOI from associated    space to be recaptured from Sears		(2,388	)		(6,370	)
Annualized Total NOI	$	144,780		$	209,096

(1) Includes adjustments for unconsolidated joint ventures.

(2) Includes adjustments to account for leases not in place for the full period.

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SUPPLEMENTAL FINANCIAL INFORMATION

EBITDAre and Company EBITDA

June 30, 2019

(In thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
EBITDAre and Company EBITDA	2019			2018			2019			2018
Net (loss) income	$	(25,885	)	$	(10,602	)	$	(36,779	)	$	5,599
Interest expense		22,141			17,862			45,595			34,281
Provision for income and other taxes		146			240			123			344
Depreciation and amortization		20,194			49,551			46,410			84,218
Depreciation and amortization (unconsolidated    joint ventures)		12,755			3,516			15,382			7,309
Interest expense (unconsolidated joint ventures)		4			—			4			—
Gain on sale of interests in unconsolidated    joint ventures		—			—			—			—
Gain on sale of real estate		(11,612	)		(34,187	)		(32,873	)		(76,018	)
EBITDAre	$	17,743		$	26,380		$	37,862		$	55,733
Termination fee income		—			—			—			(174	)
Change in fair value of interest rate cap		—			172			—			7
Company EBITDA	$	17,743		$	26,552		$	37,862		$	55,566

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SUPPLEMENTAL FINANCIAL INFORMATION

Funds from Operations and Company FFO

June 30, 2019

(In thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
FFO and Company FFO	2019			2018			2019			2018
Net (loss) income	$	(25,885	)	$	(10,602	)	$	(36,779	)	$	5,599
Real estate depreciation and amortization    (consolidated properties)		19,800			48,985			45,375			83,098
Real estate depreciation and amortization    (unconsolidated joint ventures)		12,755			3,516			15,382			7,309
Gain on sale of real estate		(11,612	)		(34,187	)		(32,873	)		(76,018	)
Dividends on preferred shares		(1,225	)		(1,225	)		(2,450	)		(2,453	)
FFO attributable to common shareholders    and unitholders	$	(6,167	)	$	6,487		$	(11,345	)	$	17,535
Termination fee income		—			—			—			(174	)
Change in fair value of interest rate cap		—			172			—			7
Amortization of deferred financing costs		105			1,870			223			3,590
Company FFO attributable to common    shareholders and unitholders	$	(6,062	)	$	8,529		$	(11,122	)	$	20,958
FFO per diluted common share and unit	$	(0.11	)	$	0.12		$	(0.20	)	$	0.31
Company FFO per diluted common share and unit	$	(0.11	)	$	0.15		$	(0.20	)	$	0.38
Weighted Average Common Shares and Units Outstanding
Weighted average common shares outstanding		36,291			35,483			35,983			35,588
Weighted average OP units outstanding		19,515			20,158			19,815			20,188
Weighted average common shares and    units outstanding		55,806			55,641			55,798			55,776

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SUPPLEMENTAL FINANCIAL INFORMATION

Additional Information

June 30, 2019

(In thousands)

	As of		As of
Debt Summary	June 30, 2019		December 31, 2018
Term Loan Facility (drawn / undrawn)	$1,600,000 / 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
Right of use asset	$	19,095	$	—
Deferred expenses		13,806		9,621
Other assets		6,666		5,411
FF&E		4,744		5,299
Other prepaid expenses		2,103		3,605
Prepaid real estate taxes		1,077		2,680
Prepaid insurance		795		3,283
Total prepaid expenses, deferred expenses and other assets	$	48,286	$	29,899
Accounts Payable, Accrued Expenses and Other Liabilities
Accounts payable and accrued expenses	$	25,666	$	28,065
Accrued development expenditures		18,964		26,180
Accrued real estate taxes		13,958		14,108
Below-market leases		11,853		12,281
Environmental reserve		9,477		9,477
Lease liability		8,141		—
Unearned tenant reimbursements		5,417		10,975
Accrued interest		4,667		4,978
Prepaid rental income		3,299		4,021
Common and preferred dividends and OP Unit distributions payable		1,788		15,758
Deferred maintenance		1,722		1,722
Total accounts payable, accrued expenses and other liabilities	$	104,952	$	127,565

- 8 -

SUPPLEMENTAL FINANCIAL INFORMATION

Additional Information (cont’d)

June 30, 2019

(In thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
Select Non-Cash Items	2019			2018			2019			2018
Straight-line rental income
Wholly-owned	$	5,609		$	384		$	8,964		$	2,832
Joint ventures		314			247			(61	)		362
Total	$	5,923		$	631		$	8,903		$	3,194
Net amortization of above/below market rental    income/expense
Wholly-owned	$	143		$	180		$	247		$	414
Joint ventures		1,374			200			1,471			197
Total	$	1,517		$	380		$	1,718		$	611
Amortization of deferred financing costs	$	(105	)	$	(3,590	)	$	(223	)	$	(3,590	)
Stock-based compensation expense		(1,353	)		(3,379	)		(2,885	)		(3,379	)
Dividends
Dividends per Class A and Class C common share	$	—		$	0.25		$	0.25		$	0.50
Declaration date		—		April 24, 2018
Record date		—		June 29, 2018
Payment date		—		July 12, 2018

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PROPERTY INFORMATION

Portfolio Overview

June 30, 2019

(In thousands, except number of properties/leases and PSF amounts)

Portfolio Summary

The following table provides a summary of the Company’s portfolio, including JV Properties presented at the Company’s proportional share, as of June 30, 2019:

	Consolidated			Unconsolidated			Seritage
	Portfolio			Joint Ventures			Total
Number of properties		194			27			221
Total GLA		30,274			4,834			35,108
At share		30,274			2,417			32,691
Leased GLA		16,373			1,535			17,908
At share		16,373			767			17,140
Percentage leased		54.1	%		31.8	%		51.0	%
At share		54.1	%		31.8	%		52.4	%

Property Type

As of June 30, 2019, the portfolio included 115 properties characterized as attached to regional malls and 106 characterized as shopping center or freestanding properties.  The following table provides a summary of the portfolio, including JV Properties presented at the Company’s proportional share, based on these property types and signed leases as of June 30, 2019:

	Number of		Leased		Annual Base
Property Type (1)	Properties		GLA		Rent ("ABR")		ABR PSF		Leased
Mall		115		8,462	$	99,962	$	11.81		46.5	%
Shopping Center		106		8,678		85,854		9.89		59.9	%
Total		221		17,140	$	185,816	$	10.84		52.4	%

(1) Company classification.  Mall properties are attached to regional malls; Shopping Center properties include properties attached to, within or adjacent to neighborhood shopping or power centers, as well as freestanding properties.

Tenant Overview

The following table provides a summary of annual base rent for the portfolio, including JV Properties presented at the Company’s proportional share, based on signed leases as of June 30, 2019:

	Number of		Leased		% of Total			Annual Base		% of
Tenant	Leases		GLA		Leased GLA			Rent ("ABR")		Total ABR			ABR PSF
Sears/Kmart (1)		54		6,742		39.3	%	$	20,320		10.9	%	$	3.01
In-place diversified, non-Sears leases		260		5,946		34.7	%		79,756		42.9	%		13.41
SNO diversified, non-Sears leases		179		4,452		26.0	%		85,740		46.2	%		19.26
Sub-total diversified, non-Sears leases		439		10,398		60.7	%		165,496		89.1	%		15.92
Total		493		17,140		100.0	%	$	185,816		100.0	%	$	10.84

(1) Number of leases reflects number of properties subject to the Holdco Master Lease and Original JV Master Leases.

- 10 -

PROPERTY INFORMATION

Portfolio Overview (cont’d)

June 30, 2019

(In thousands, except number of leases and PSF amounts)

Top Tenants

The following table lists the top tenants in the portfolio, including JV Properties presented at the Company’s proportional share, based on signed leases as of June 30, 2019:

(dollars in thousands)
Tenant	Number of Leases		Annual Rent		% of Total AnnualRent			Concepts/Brands
Sears/Kmart (1)		54	$	20,320		10.9	%	Sears, Sears Auto Center, Kmart
Dave & Busters		12		10,011		5.4	%
Dick's Sporting Goods		9		8,298		4.5	%
Round One Entertainment		8		7,450		4.0	%
At Home		12		7,273		3.9	%
24 Hour Fitness		7		6,405		3.4	%
Burlington Stores		10		6,195		3.3	%
Ross Dress For Less		15		5,512		3.0	%	Ross Dress for Less, dd's Discounts
Cinemark		4		4,899		2.6	%
Nordstrom Rack		6		4,385		2.4	%
Equinox Fitness		17		4,322		2.3	%	Equinox, Blink Fitness
AMC		3		4,202		2.3	%
Primark		3		3,002		1.6	%
Bed Bath & Beyond		6		2,490		1.3	%	Bed Bath & Beyond, buybuyBaby, Cost Plus World Market, Christmas Tree Shops andThat!
TJX		9		2,353		1.3	%	TJ Maxx, Marshalls, HomeGoods, HomeSense, Sierra Trading Post
Darden		12		2,336		1.3	%	Longhorn Steakhouse, Olive Garden, Seasons 52, Yardhouse
Hobby Lobby		4		2,024		1.1	%
PetSmart		4		2,012		1.1	%

(1) Number of leases reflects number of properties subject to the Holdco Master Lease and Original JV Master Leases.

- 11 -

PROPERTY INFORMATION

Portfolio Overview (cont’d)

June 30, 2019

(In thousands, except number of properties and PSF amounts)

Geographic Summary

The following table sets forth information regarding the geographic diversification of the portfolio, including JV Properties presented at the Company’s proportional share, based on signed leases as of June 30, 2019:

(in thousands except property count and PSF data)
State	Number of Properties		Annual Rent		% of Total Annual Rent			Rent PSF
Florida		25	$	34,920		18.8	%	$	17.33
California		39		32,791		17.6	%		7.90
Illinois		10		11,435		6.2	%		11.96
New York		10		10,967		5.9	%		20.81
Texas		15		9,710		5.2	%		9.00
New Jersey		5		8,877		4.8	%		17.17
Puerto Rico		6		6,965		3.7	%		7.66
Pennsylvania		6		6,325		3.4	%		11.34
Virginia		5		5,733		3.1	%		12.22
New Hampshire		4		3,612		1.9	%		9.76
Total Top 10		125	$	131,335		70.6	%	$	11.37
Other (1)		96		54,481		29.4	%		9.75
Total		221	$	185,816		100.0	%	$	10.84

(1) Includes 37 states

- 12 -

PROPERTY INFORMATION

Leasing Activity

June 30, 2019

(In thousands, except number of leases and PSF amounts)

Signed Leases

The table below provides a summary of the Company’s leasing activity since inception through June 30, 2019, including JV Properties presented at the Company’s proportional share:

(in thousands except number of leases and PSF data)
	Total								Release of Sears Holdings Space
			Leased		Annual		Annual				Leased		Annual		Annual		Releasing
Period	Leases		GLA		Rent		Rent PSF		Leases		GLA		Rent		Rent PSF		Multiple
2015		9		154	$	4,650	$	30.28		6		130	$	3,820	$	29.41		4.4	x
Q1 2016		7		214		6,990		32.60		7		214		6,990		32.60		5.7	x
Q2 2016		15		422		7,240		17.15		13		363		6,440		17.75		4.7	x
Q3 2016		14		543		7,470		13.74		12		456		6,250		13.70		4.0	x
Q4 2016		29		891		14,900		16.72		27		849		13,930		16.41		4.1	x
2016		65		2,070		36,600		17.68		59		1,882		33,610		17.86		4.5	x
Q1 2017		22		535		8,780		16.41		21		530		8,660		16.34		4.0	x
Q2 2017		28		598		11,340		18.95		26		592		11,240		18.99		3.7	x
Q3 2017		21		601		9,770		16.25		18		486		8,730		17.97		4.6	x
Q4 2017		23		872		14,827		17.00		21		868		14,669		16.90		3.8	x
2017		94		2,606		44,717		17.16		86		2,476		43,299		17.49		4.0	x
Q1 2018		20		391		7,915		20.24		19		389		7,891		20.29		4.1	x
Q2 2018		42		714		10,709		15.00		42		714		10,709		15.00		3.7	x
Q3 2018		22		546		7,487		13.71		18		529		7,012		13.26		3.8	x
Q4 2018		30		664		13,930		20.98		29		659		13,749		20.86		4.0	x
2018		114		2,315		40,041		17.30		108		2,291		39,361		17.18		3.9	x
Q1 2019		29		365		10,972		30.06		26		343		10,598		30.90		4.1	x
Q2 2019		28		603		12,010		19.92		23		497		10,762		21.65		3.6	x
Total Retail		339		8,113	$	148,990	$	18.36		308		7,619	$	141,450	$	18.57		4.1	x
Other (1)		5		740		5,156
Total		344		8,853	$	154,146

(1) Includes certain self storage, auto dealership, office and ground leases.

SNO Lease Summary

The table below provides a summary of the Company’s SNO leases from March 31, 2019 to June 30, 2019, including JV Properties presented at the Company’s proportional share:

(in thousands except number of leases and PSF data)
	Number of						Total
	SNO Leases			GLA			ABR			ABR PSF
As of March 31, 2019		174			4,623		$	84,032		$	18.18
Opened		(18	)		(574	)		(6,935	)		12.08
Sold / contributed to JVs / terminated		(5	)		(200	)		(3,367	)		16.84
Signed		28			603			12,010			19.92
As of June 30, 2019		179			4,452		$	85,740		$	19.26

- 13 -

PROPERTY INFORMATION

Redevelopment Projects

June 30, 2019

(In thousands, except number of projects)

Below is a summary of the Company’s announced development activity from inception through June 30, 2019, presented at 100% share and including certain assets that have been monetized through sale or joint venture:

(in millions)
								Total						Estimated
	Number		Project		Percentage			Estimated		Spent		Projected Annual Income (2)		Incremental
Project Status	of Projects		Square Feet		Leased			Project Costs (1)		To Date		Total	Incremental	Yield (3)
Complete		18		1.7		94	%	$150 - 155		$	143
Substantially Complete /    Delivered to Tenant(s)		32		3.6		78	%	435 - 460			304
Underway		26		4.0		55	%	810 - 840			262
Announced		7		0.9		56	%	130 - 145			10
Current Projects		83		10.2		70	%	$1,525 - 1,600		$	719	$207 - 214	$165 - 172	10.3 - 11.3%
Acquired		15							64
Sold		4							30
Total Projects		102						$1,619 - 1,694

(1) Total estimated project costs include aggregate termination fees of approximately $81.0 million to recapture 100% of certain properties.

(2) Projected annual income is based on assumptions for stabilized rents to be achieved at space under redevelopment.  There can be no assurance that stabilized rent targets will be achieved

(3) Projected incremental annual income divided by total estimated project costs.

- 14 -

PROPERTY INFORMATION

Redevelopment Projects (cont’d)

June 30, 2019

The tables below provide brief descriptions of each of the redevelopment projects originated on the Company’s platform since its inception:

Total Project Costs under $10 Million
		Total		Estimated	Estimated
		Project		Construction	Substantial
Property	Description	Square Feet		Start	Completion
King of Prussia, PA	Repurpose former auto center space for Outback Steakhouse, Yard House and Escape Room		29,100	Complete
Merrillville, IN	Termination property; redevelop existing store for At Home and small shop retail		132,000	Complete
Elkhart, IN	Termination property; existing store has been released to Big R Stores		86,500	Complete
Bowie, MD	Recapture and repurpose auto center space for BJ's Brewhouse		8,200	Complete
Troy, MI	Partial recapture; redevelop existing store for At Home		100,000	Complete
Rehoboth Beach, DE	Partial recapture; redevelop existing store for andThat! and PetSmart		56,700	Complete
Henderson, NV	Termination property; redevelop existing store for At Home, Seafood City, Blink Fitness and additional retail		144,400	Complete
Cullman, AL	Termination property; redevelop existing store for Bargain Hunt, Tractor Supply and Planet Fitness		99,000	Complete
Jefferson City, MO	Termination property; redevelop existing store for Orscheln Farm and Home		96,000	Complete
Guaynabo, PR	Partial recapture; redevelop existing store for Planet Fitness, Capri and additional retail and restaurants		56,100	Complete
Westwood, TX	Termination property; site has been leased to Sonic Automotive for an auto dealership		213,600	Complete
Florissant, MO	Site densification; new outparcel for Chick-fil-A		5,000	Complete
Albany, NY	Recapture and repurpose auto center space for BJ's Brewhouse, Ethan Allen and additional small shop retail		28,000	Substantially complete
Kearney, NE	Termination property; redevelop existing store for Marshall's, PetSmart, Ross Dress for Less and Five Below		92,500	Substantially complete
Dayton, OH	Recapture and repurpose auto center space for Outback Steakhouse and additional restaurants		14,100	Substantially complete
New Iberia, LA	Termination property; redevelop existing store for Ross Dress for Less, Rouses Supermarkets, Hobby Lobby and small shop retail		93,100	Substantially complete
Hopkinsville, KY	Termination property; redevelop existing store for Bargain Hunt, Farmer's Furniture, Harbor Freight Tools and small shop retail		87,900	Substantially complete
Mt. Pleasant, PA	Termination property; redevelop existing store for Aldi, Big Lots and additional retail		86,300	Substantially complete
Layton, UT	Termination property; a portion of the space has been leased to Extra Space Storage; existing tenants include Vasa Fitness and small shop retail		172,100	Substantially complete
St. Clair Shores, MI	100% recapture; demolish existing store and develop site for new Kroger grocery store		107,200	Delivered to tenant(s)
Gainesville, FL	Termination property; repurpose existing store as office space for Florida Clinical Practice Association / University of Florida College of Medicine		139,100	Delivered to tenant(s)
North Little Rock, AR	Recapture and repurpose auto center space for LongHorn Steakhouse and small shop retail		17,300	Delivered to tenant(s)
Houston, TX	100% recapture; entered into ground lease with adjacent mall owner; potential to participate in future redevelopment		214,400	Delivered to tenant(s)
Oklahoma City, OK	Site densification; new fitness center for Vasa Fitness		59,500	Delivered to tenant(s)
Greensboro, NC	Site densification; new outparcel for Mavis Tires		6,900	Q1 2020	Q4 2020
Middletown, NJ	Termination property; redevelop site for new ShopRite grocery store and additional retail		191,100	Q1 2020	Q2 2021
Hagerstown, MD	Recapture and repurpose auto center space for BJ's Brewhouse, Verizon and additional retail		15,400	Sold
Hampton, VA	Site densification; new outparcel for Chick-fil-A		2,200	Sold

- 15 -

PROPERTY INFORMATION

Redevelopment Projects (cont’d)

June 30, 2019

Total Project Costs $10 - $20 Million
		Total		Estimated	Estimated
		Project		Construction	Substantial
Property	Description	Square Feet		Start	Completion
Braintree, MA	100% recapture; redevelop existing store for Nordstrom Rack, Saks OFF 5th and additional retail		90,000	Complete
Honolulu, HI	100% recapture; redevelop existing store for Longs Drugs (CVS), PetSmart and Ross Dress for Less		79,000	Complete
Anderson, SC	100% recapture (project expansion); redevelop existing store for Burlington Stores, Gold's Gym, Sportsman's Warehouse, additional retail and restaurants		111,300	Complete
Springfield, IL	Termination property; redevelop existing store for Burlington Stores, Binny's Beverage Depot, Marshall's, Orangetheory Fitness, Outback Steakhouse, Core Life Eatery and additional small shop retail		133,400	Complete
Madison, WI	Partial recapture; redevelop existing store for Dave & Busters, Total Wine & More, additional retail and restaurants		75,300	Substantially complete
Paducah, KY	Termination property; redevelop existing store for Burlington Stores, Ross Dress for Less and additional retail		102,300	Substantially complete
Thornton, CO	Termination property; redevelop existing store for Vasa Fitness and additional junior anchors		191,600	Substantially complete
Cockeysville, MD	Partial recapture; redevelop existing store for HomeGoods, Michael's Stores, additional junior anchors and restaurants (note: contributed to Cockeysville JV in Q1 2019)		83,500	Substantially complete
Warwick, RI	Termination property (project expansion); redevelop existing store and detached auto center for At Home, BJ's Brewhouse, Raymour & Flanigan, additional retail and restaurants		190,700	Substantially complete
Temecula, CA	Partial recapture; redevelop existing store and detached auto center for Round One, small shop retail and restaurants		65,100	Substantially complete
Hialeah, FL	100% recapture; redevelop existing store for Bed, Bath & Beyond, Ross Dress for Less and dd's Discounts to join current tenant, Aldi		88,400	Substantially complete
NorthHollywood, CA	Partial recapture; redevelop existing store for Burlington Stores and Ross Dress for Less		79,800	Substantially complete
West Jordan, UT	Termination property (project expansion); redevelop existing store and attached auto center for At Home, Burlington Stores, Planet Fitness and small shop retail		190,300	Substantially complete
Salem, NH	Densify site with new theatre for Cinemark and recapture and repurpose auto center for restaurant space to join existing tenant Dick's Sporting Goods		71,200	Delivered to tenant(s)
Fairfax, VA	Partial recapture; redevelop existing store and attached auto center for Dave & Busters, additional junior anchors and restaurants		110,300	Delivered to tenant(s)
Canton, OH	Partial recapture; redevelop existing store for Dave & Busters and restaurants		83,900	Delivered to tenant(s)
North Riverside, IL	Partial recapture; redevelop existing store and detached auto center for Blink Fitness, Round One, additional junior anchors, small shop retail and restaurants		103,900	Delivered to tenant(s)
Olean, NY	Termination property (project expansion); redevelop existing store for Marshall's, Ollie's Bargain Basement and additional retail		125,700	Delivered to tenant(s)
Las Vegas, NV	Partial recapture; redevelop existing store for Round One and additional retail		78,800	Underway	Q3 2019
Roseville, MI	Termination property (project expansion); redevelop existing store for At Home, Hobby Lobby, Chick-fil-A and additional retail		369,800	Underway	Q3 2019
Warrenton, VA	Termination property; redevelop existing store for HomeGoods and additional retail		97,300	Underway	Q3 2019
North Miami, FL	100% recapture; redevelop existing store for Burlington Stores, Michael's and Ross Dress for Less		124,300	Underway	Q4 2019
Yorktown Heights, NY	Partial recapture; redevelop existing store for 24 Hour Fitness and other retail uses		85,200	Underway	Q4 2019
Charleston, SC	100% recapture (project expansion); redevelop existing store and detached auto center for Burlington Stores and additional retail		126,700	Underway	Q4 2019
Chicago, IL (Kedzie)	Termination property; redevelop existing store for Ross Dress for Less, dd's Discounts, Five Below, Blink Fitness and additional retail		123,300	Underway	Q4 2019
El Paso, TX	Termination property; redevelop existing store for Ross Dress for Less, dd's Discounts and additional retail		114,700	Underway	Q4 2019

- 16 -

PROPERTY INFORMATION

Redevelopment Projects (cont’d)
June 30, 2019
Total Project Costs $10 - $20 Million (cont’d)
		Total		Estimated	Estimated
		Project		Construction	Substantial
Property	Description	Square Feet		Start	Completion
Reno, NV	100% recapture; redevelop existing store and auto center for Round One and additional retail		169,800	Underway	Q4 2019
Pensacola, FL	Termination property; redevelop existing store for BJ's Wholesale, additional retail and restaurants		134,700	Underway	Q1 2020
Fresno, CA	Partial recapture, redevelop existing store and detached auto center for Ross Dress for Less, dd's Discounts and additional retail		78,300	Underway	Q1 2020
Manchester, NH	Termination property; redevelop existing store for Dick's Sporting Goods, Dave & Busters, additional retail and restaurants		117,700	Underway	Q3 2020
Victor, NY	Termination property, redevelop existing store for Dick's Sporting Goods and additional retail		140,500	Underway	Q3 2020
Merced, CA	Termination property; redevelop existing store for Burlington Stores, Ulta Beauty and additional retail		92,600	Q3 2019	Q1 2021
Santa Cruz, CA	Partial recapture; redevelop existing store for TJ Maxx, HomeGoods and additional junior anchors		62,200	Sold
Vancouver, WA	Partial recapture; redevelop existing store for Round One, Hobby Lobby and additional retail and restaurants		72,400	Sold
Saugus, MA	Partial recapture; redevelop existing store and detached auto center (temporarily on hold)		99,000	To be determined

- 17 -

PROPERTY INFORMATION

Redevelopment Projects (cont’d)

June 30, 2019

Total Project Costs over $20 Million
		Total		Estimated	Estimated
		Project		Construction	Substantial
Property	Description	Square Feet		Start	Completion
Memphis, TN	100% recapture; demolish and construct new buildings for LA Fitness, Nordstrom Rack, Ulta Beauty, Hopdoddy Burger Bar and additional retail and restaurants		135,200	Complete
St. Petersburg, FL	100% recapture; demolish and construct new buildings for Dick's Sporting Goods, Lucky's Market, PetSmart, Five Below, Chili's Grill & Bar, Pollo Tropical, LongHorn Steakhouse, Verizon and additional small shop retail and restaurants		142,400	Complete
Orlando, FL	100% recapture; demolish and construct new buildings for Floor & Decor, Orchard Supply Hardware, LongHorn Steakhouse, Mission BBQ, Olive Garden and additional small shop retail and restaurants		139,200	Substantially complete
WestHartford, CT	100% recapture; redevelop existing store and detached auto center for buybuyBaby, Cost Plus World Market, REI, Saks OFF Fifth, other junior anchors, Shake Shack and additional small shop retail (note: contributed to West Hartford JV in Q2 2018)		147,600	Substantially complete
Wayne, NJ	Partial recapture (project expansion); redevelop existing store and detached auto center for Cinemark, Dave & Busters, Yardhouse and additional retail and restaurants (note: contributed to GGP II JV in Q3 2017)		156,700	Delivered to tenant(s)
Carson, CA	100% recapture (project expansion); redevelop existing store for Burlington Stores, Ross Dress for Less, Gold's Gym and additional retail		163,800	Delivered to tenant(s)
Greendale, WI	Termination property; redevelop existing store and attached auto center for Dick's Sporting Goods, Round One, TJ Maxx, additional retail and restaurants		223,800	Delivered to tenant(s)
Watchung, NJ	100% recapture; demolish full-line store and detached auto center and construct new buildings for Cinemark, HomeSense, Sierra Trading Post, Ulta Beauty, Chick-fil-A, small shop retail and additional restaurants		126,700	Delivered to tenant(s)
Austin, TX	100% recapture (project expansion); redevelop existing store for AMC Theatres, additional junior anchors and restaurants		177,400	Underway	Q3 2019
El Cajon, CA	100% recapture; redevelop existing store and auto center for Ashley Furniture, Bob's Discount Furniture, Burlington Stores and additional retail and restaurants; a portion of the basement has been leased to Extra Space Storage		242,700	Underway	Q3 2019
Anchorage, AK	100% recapture; redevelop existing store for Safeway, Guitar Center, Planet Fitness and additional retail to join current tenant, Nordstrom Rack		142,500	Underway	Q4 2019
Aventura, FL	100% recapture; demolish existing store and construct new, multi-level open air retail destination featuring a leading collection of experiential shopping, dining and entertainment concepts alongside a treelined esplanade and activated plazas		216,600	Underway	Q4 2019
East Northport, NY	Termination property; redevelop existing store and attached auto center for AMC Theatres, 24 Hour Fitness, additional junior anchors and small shop retail		179,700	Underway	Q4 2019
San Diego, CA	100% recapture; redevelop existing store into two highly-visible, multi-level buildings with exterior facing retail space leased to Equinox Fitness and a premier mix of experiential shopping, dining, and entertainment concepts (note: contributed to UTC JV in Q2 2018)		206,000	Underway	Q4 2019
Santa Monica, CA	100% recapture; redevelop existing building into premier, mixed-use asset featuring unique, small-shop retail and creative office space (note: contributed to Mark 302 JV in Q1 2018)		96,500	Underway	Q4 2019
Tucson, AZ	100% recapture; redevelop existing store and auto center for Round One and additional retail		224,300	Underway	Q4 2019
Fairfield, CA	100% recapture (project expansion); redevelop existing store and auto center for Dave & Busters, AAA Auto Repair Center and additional retail		146,500	Underway	Q1 2020
Plantation, FL	100% recapture (project expansion); redevelop existing store and auto center for GameTime, Powerhouse Gym, additional retail and restaurants		184,400	Underway	Q1 2020
Roseville, CA	Termination property (project expansion): redevelop existing store and auto center for Cinemark, Round One, AAA Auto Repair Center, additional retail and restaurants		147,400	Underway	Q2 2020
San Antonio, TX	Termination property (project expansion); redevelop existing store for Bed Bath & Beyond, buybuyBaby, Tru Fit and additional retail to complement repurposed auto center occupied by Orvis, Jared's Jeweler and Shake Shack		215,900	Underway	Q2 2020

- 18 -

PROPERTY INFORMATION

Redevelopment Projects (cont’d)
June 30, 2019
Total Project Costs over $20 Million (cont’d)
		Total		Estimated	Estimated
		Project		Construction	Substantial
Property	Description	Square Feet		Start	Completion
Ft. Wayne, IN	Termination property (project expansion); redevelop existing store for Dave & Buster's, HomeGoods and additional retail to complement new outparcels for BJ's Brewhouse, Chick-fil-A and Portillo's		96,400	Underway	Q4 2020
Orland Park, IL	100% recapture; redevelop existing store for AMC Theatres, 24 Hour Fitness, additional retail and restaurants		181,900	Q3 2019	Q4 2020
Hialeah, FL	100% recapture (project expansion); redevelop existing store and auto center for Paragon Theaters, Ulta Beauty, Five Below, Panera Bread and additional retail and restaurants		158,100	Q3 2019	Q2 2021
Asheville, NC	100% recapture; redevelop existing store and auto center for Alamo Drafthouse, restaurants and small shop retail		110,600	Q4 2019	Q2 2021

- 19 -

PROPERTY INFORMATION

Termination Properties

June 30, 2019

Under the terms of the Holdco Master Lease, Holdco has the right, at any time, to terminate any property upon the payment of a termination fee equal to one year of base rent plus annual taxes and other operating expenses.  Additionally, beginning in the second year of the term of the Holdco Master Lease, Holdco has the right to terminate without payment of a termination fee: (i) up to 16 properties in the second year, (ii) up to 12 properties in the third year, (iii) up to 10 properties in the fourth year, and (iv) thereafter, the remaining properties, in each instance with carry over rights if less than the maximum permitted number of properties are terminated in any lease year.  As of June 30, 2019, Holdco had not exercised any of its termination rights under the Holdco Master Lease.

The table below includes the 87 properties at which Sears Holdings had exercised its termination rights under the Original Master Lease prior to its rejection on March 12, 2019:

					Announced
Property	Square Feet		Notice	Termination	Redevelopment
Antioch, CA		95,200	August 2018	December 2018
Columbus, MS		117,100	August 2018	December 2018
Dayton, OH		148,800	August 2018	December 2018	Q2 2017
Flagstaff, AZ		66,200	August 2018	December 2018
Ft. Wayne, IN		213,600	August 2018	December 2018	Q3 2016 / Q3 2017 / Q2 2019
Jackson, MI		144,200	August 2018	December 2018
Manchester, NH		135,100	August 2018	December 2018	Q4 2018
Salem, NH		119,000	August 2018	December 2018	Q4 2017
Savannah, GA		155,700	August 2018	December 2018
Scott Depot, WV		89,800	August 2018	December 2018	Sold
Steger, IL		87,400	August 2018	December 2018
Victor, NY		115,300	August 2018	December 2018	Q2 2019
West Jordan, UT		117,300	August 2018	December 2018	Q3 2016 / Q3 2018
Chesapeake, VA		169,400	June 2018	November 2018
Clay, NY		138,000	June 2018	November 2018
Havre, MT		94,700	June 2018	November 2018	Sold
Newark, CA		145,800	June 2018	November 2018
Oklahoma City, OK		173,700	June 2018	November 2018	Q3 2017
Troy, MI		271,300	June 2018	November 2018	Q3 2016
Virginia Beach, VA		86,900	June 2018	November 2018	Q3 2015
Madison, WI		88,100	June 2018	October 2018	Q2 2016
Thousand Oaks, CA		50,300	June 2018	October 2018	Q3 2015
Cedar Rapids, IA		141,100	April 2018	August 2018
Citrus Heights, CA		280,700	April 2018	August 2018
Gainesville, FL		140,500	April 2018	August 2018	Q2 2018
Maplewood, MN		168,500	April 2018	August 2018
Pensacola, FL		212,300	April 2018	August 2018	Q2 2018
Rochester, NY		128,500	April 2018	August 2018
Roseville, CA		121,000	April 2018	August 2018	Q2 2017 / Q1 2018
San Antonio, TX		187,800	April 2018	August 2018	Q4 2015
Warrenton, VA		113,900	April 2018	August 2018	Q1 2018
Westwood, TX		215,000	June 2017	January 2018	Q3 2018
Friendswood, TX		166,000	June 2017	November 2017
Albany, NY		216,200	June 2017	October 2017	Q1 2016
Burnsville, MN		161,700	June 2017	October 2017
Chicago, IL (N Harlem)		293,700	June 2017	October 2017
Cockeysville, MD		83,900	June 2017	October 2017	Q1 2017
East Northport, NY		187,000	June 2017	October 2017	Q2 2017
Greendale, WI		238,400	June 2017	October 2017	Q4 2017
Hagerstown, MD		107,300	June 2017	October 2017	Q1 2016 / Sold
Johnson City, NY		155,100	June 2017	October 2017	Sold
Lafayette, LA		194,900	June 2017	October 2017
Mentor, OH		208,700	June 2017	October 2017
Middleburg Heights, OH		351,600	June 2017	October 2017

- 20 -

PROPERTY INFORMATION

Termination Properties (cont’d)
June 30, 2019
					Announced
Property	Square Feet		Notice	Termination	Redevelopment
Olean, NY		75,100	June 2017	October 2017	Q1 2017
Overland Park, KS		215,000	June 2017	October 2017
Roseville, MI		277,000	June 2017	October 2017	Q3 2016
Sarasota, FL		204,500	June 2017	October 2017
Toledo, OH		209,900	June 2017	October 2017
Warwick, RI		169,200	June 2017	October 2017	Q3 2016 / Q3 2017
York, PA		82,000	June 2017	October 2017	Sold
Chapel Hill, OH		187,179	January 2017	April 2017
Concord, NC		137,499	January 2017	April 2017	Sold
Detroit Lakes, MN		79,102	January 2017	April 2017
El Paso, TX		103,657	January 2017	April 2017	Q2 2018
Elkins, WV		94,885	January 2017	April 2017	Sold
Henderson, NV		122,823	January 2017	April 2017	Q1 2017
Hopkinsville, KY		70,326	January 2017	April 2017	Q1 2018
Jefferson City, MO		92,016	January 2017	April 2017	Q2 2017
Kenton, OH		96,066	January 2017	April 2017
Kissimmee, FL		112,505	January 2017	April 2017
Layton, UT		90,010	January 2017	April 2017	Q3 2018
Leavenworth, KS		76,853	January 2017	April 2017	Sold
Mt. Pleasant, PA		83,536	January 2017	April 2017	Q2 2018
Muskogee, OK		87,500	January 2017	April 2017	Sold
Owensboro, KY		68,334	January 2017	April 2017	Sold
Paducah, KY		108,244	January 2017	April 2017	Q3 2017
Platteville, WI		94,841	January 2017	April 2017	Sold
Riverside, CA (Iowa Ave.)		94,500	January 2017	April 2017
Sioux Falls, SD		72,511	January 2017	April 2017	Sold
Alpena, MI		118,200	September 2016	January 2017
Chicago, IL (S Kedzie)		118,800	September 2016	January 2017	Q3 2018
Cullman, AL		98,500	September 2016	January 2017	Q2 2017
Deming, NM		96,600	September 2016	January 2017
Elkhart, IN		86,500	September 2016	January 2017	Q4 2016
Harlingen, TX		91,700	September 2016	January 2017	Sold
Houma, LA		96,700	September 2016	January 2017	Sold
Kearney, NE		86,500	September 2016	January 2017	Q3 2016
Manistee, MI		87,800	September 2016	January 2017
Merrillville, IN		108,300	September 2016	January 2017	Q4 2016
New Iberia, LA		91,700	September 2016	January 2017	Q2 2017
Riverton, WY		94,800	September 2016	January 2017	Sold
Sault Sainte Marie, MI		92,700	September 2016	January 2017
Sierra Vista, AZ		86,100	September 2016	January 2017	Sold
Springfield, IL		84,200	September 2016	January 2017	Q3 2016
Thornton, CO		190,200	September 2016	January 2017	Q1 2017
Yakima, WA		97,300	September 2016	January 2017	Sold
Total square feet		11,728,387

- 21 -

PROPERTY INFORMATION

Joint Venture Properties

June 30, 2019

Brookfield Retail Partners (formerly GGP, Inc.) Joint Venture

					Total
	Mall Name	City	State	Joint Venture	GLA (1)		Leased (1)
1	Northridge Fashion Center	Northridge	CA	GGP II JV		145,900		100.0	%
2	Altamonte Mall	Altamonte Springs	FL	GGP II JV		107,200		32.0	%
3	Coastland Center	Naples	FL	GGP II JV		80,900		39.8	%
4	Cumberland Mall	Atlanta	GA	GGP II JV		109,400		0.0	%
5	Natick Collection (2)	Natick	MA	GGP I JV		95,300		21.0	%
6	Willowbrook Mall	Wayne	NJ	GGP II JV		140,500		81.4	%
7	Sooner Mall (2)	Norman	OK	GGP I JV		33,400		0.0	%
8	Stonebriar Centre	Frisco	TX	GGP I JV		81,500		0.0	%
9	Alderwood	Lynnwood	WA	GGP I JV		88,800		27.7	%

(1) Based on signed leases as of June 30, 2019; GLA presented at the Company's proportional share.

(2) Property is subject to a lease or ground lease agreement.

Simon Joint Venture

					Total
	Mall Name	City	State	Joint Venture	GLA (1)		Leased (1)
1	Santa Rosa Plaza	Santa Rosa	CA	Simon JV		82,700		0.0	%
2	Briarwood	Ann Arbor	MI	Simon JV		85,300		0.0	%
3	The Shops at Nanuet	Nanuet	NY	Simon JV		110,700		0.0	%
4	Woodland Hills Mall	Tulsa	OK	Simon JV		75,100		0.0	%
5	Barton Creek Square	Austin	TX	Simon JV		82,300		0.0	%

(1) Based on signed leases as of June 30, 2019; GLA presented at the Company's proportional share.

- 22 -

PROPERTY INFORMATION

Joint Venture Properties (cont’d)

June 30, 2019

Macerich Joint Venture

					Total
	Mall Name	City	State	Joint Venture	GLA (1)		Leased (1)
1	Chandler Fashion Center	Chandler	AZ	Macerich JV		70,800		52.3	%
2	Arrowhead Towne Center	Glendale	AZ	Macerich JV		62,500		0.0	%
3	Los Cerritos Center	Cerritos	CA	Macerich JV		138,800		0.0	%
4	Vintage Faire Mall	Modesto	CA	Macerich JV		74,200		23.3	%
5	Danbury Fair	Danbury	CT	Macerich JV		89,200		100.0	%
6	Deptford Mall	Deptford	NJ	Macerich JV		95,900		35.2	%
7	Freehold Raceway Mall	Freehold	NJ	Macerich JV		69,300		100.0	%
8	Washington Square Mall	Portland	OR	Macerich JV		110,000		0.0	%
9	South Plains Mall	Lubbock	TX	Macerich JV		75,300		0.0	%

(1) Based on signed leases as of June 30, 2019; GLA presented at the Company's proportional share.

Invesco Real Estate Joint Ventures

					Total
	Property Address	City	State	Joint Venture	GLA (1)		Leased (1)
1	302 Colorado Avenue	Santa Monica	CA	Mark 302 JV		48,200		0.0	%
2	4575 La Jolla Village Drive	San Diego	CA	UTC JV		113,200		49.3	%

(1) Based on signed leases as of June 30, 2019; GLA presented at the Company's proportional share.

First Washington Joint Venture

					Total
	Property Address	City	State	Joint Venture	GLA (1)		Leased (1)
1	1445 New Britain Avenue	West Hartford	CT	West Hartford JV		81,800		86.7	%

(1) Based on signed leases as of June 30, 2019; GLA presented at the Company's proportional share.

Greenberg Gibbons Joint Venture

					Total
	Property Address	City	State	Joint Venture	GLA (1)		Leased (1)
1	126 Shawan Road	Cockeysville	MD	Cockeysville JV		68,600		33.8	%

(1) Based on signed leases as of June 30, 2019; GLA presented at the Company's proportional share.

- 23 -

PROPERTY INFORMATION

Wholly Owned Properties

June 30, 2019

					Holdco	Total					Land
	Property Address	City	State	Property Type (1)	Master Lease (2)	GLA (3)		Leased (3)			Acres
1	700 East Northern Lights Boulevard	Anchorage	AK	Shopping Center			158,500		82.4	%		26
2	1731 2nd Avenue Southwest	Cullman	AL	Freestanding			88,500		100.0	%		6
3	3930 McCain Boulevard	North Little Rock	AR	Mall	X		177,100		94.2	%		15
4	4800 North US Highway 89	Flagstaff	AZ	Mall			66,200		0.0	%		7
5	6515 East Southern Avenue	Mesa	AZ	Mall			121,900		9.8	%		11
6	10140 North 91st Avenue	Peoria	AZ	Shopping Center			104,400		100.0	%		10
7	7611 West Thomas Road	Phoenix	AZ	Mall			144,200		8.3	%		10
8	12025 North 32nd Street	Phoenix	AZ	Freestanding			151,200		100.0	%		11
9	3400 Gateway Boulevard	Prescott	AZ	Mall	X		102,300		100.0	%		10
10	2250 El Mercado Loop	Sierra Vista	AZ	Mall			94,700		0.0	%		7
11	5950 East Broadway Boulevard	Tucson	AZ	Mall			218,900		23.1	%		20
12	3150 South 4th Avenue	Yuma	AZ	Shopping Center			90,400		0.0	%		14
13	3625 East 18th Street	Antioch	CA	Shopping Center			95,200		0.0	%		7
14	42126 Big Bear Boulevard	Big Bear Lake	CA	Shopping Center	X		80,000		91.6	%		8
15	20700 South Avalon Boulevard	Carson	CA	Mall			182,200		82.8	%		13
16	565 Broadway	Chula Vista	CA	Mall	X		250,100		100.0	%		16
17	5900 Sunrise Mall	Citrus Heights	CA	Mall			289,500		0.0	%		22
18	912 County Line Road	Delano	CA	Freestanding			86,100		0.0	%		6
19	575 Fletcher Parkway	El Cajon	CA	Mall			244,900		76.6	%		22
20	3751 South Dogwood Road	El Centro	CA	Mall			139,700		37.7	%		14
21	1420 Travis Boulevard	Fairfield	CA	Mall			169,500		26.6	%		9
22	5901 Florin Road	Florin	CA	Shopping Center			272,700		4.4	%		20
23	3636 North Blackstone Avenue	Fresno	CA	Shopping Center	X		216,700		97.0	%		13
24	1500 Anna Sparks Way	McKinleyville	CA	Shopping Center	X		94,800		100.0	%		8
25	1011 West Olive Avenue	Merced	CA	Shopping Center			92,600		54.2	%		10
26	5080 East Montclair Plaza Lane	Montclair	CA	Mall	X		174,700		100.0	%		3
27	22550 Town Circle	Moreno Valley	CA	Mall	X		169,400		100.0	%		11
28	6000 Mowry Avenue	Newark	CA	Mall			145,800		17.1	%		10
29	12121 Victory Boulevard	North Hollywood	CA	Shopping Center	X		161,900		100.0	%		4
30	72880 Highway 111	Palm Desert	CA	Mall	X		136,500		100.0	%		8
31	1855 Main Street	Ramona	CA	Shopping Center	X		107,500		94.6	%		10
32	5261 Arlington Avenue	Riverside	CA	Freestanding	X		214,200		100.0	%		19
33	3001 Iowa Avenue	Riverside	CA	Freestanding			132,600		28.7	%		13
34	1191 Galleria Boulevard	Roseville	CA	Mall			133,400		89.9	%		9
35	1700 North Main Street	Salinas	CA	Mall	X		133,000		100.0	%		10
36	100 Inland Center	San Bernardino	CA	Mall	X		264,700		100.0	%		22

- 24 -

PROPERTY INFORMATION

Wholly Owned Properties (cont’d)

June 30, 2019

					Holdco	Total					Land
	Property Address	City	State	Property Type (1)	Master Lease (2)	GLA (3)		Leased (3)			Acres
37	1178 El Camino Real	San Bruno	CA	Mall	X		276,900		100.0	%		13
38	2180 Tully Road	San Jose	CA	Mall	X		262,500		100.0	%		22
39	200 Town Center East	Santa Maria	CA	Mall	X		108,600		100.0	%		5
40	895 Faulkner Road	Santa Paula	CA	Freestanding	X		71,300		100.0	%		10
41	40710 Winchester Road	Temecula	CA	Mall	X		120,100		94.8	%		10
42	145 West Hillcrest Drive	Thousand Oaks	CA	Shopping Center			164,000		69.3	%		11
43	3295 East Main Street	Ventura	CA	Mall	X		178,600		100.0	%		2
44	1209 Plaza Drive	West Covina	CA	Mall	X		142,000		100.0	%		16
45	100 Westminster Mall	Westminster	CA	Mall			197,900		0.0	%		14
46	10785 West Colfax Avenue	Lakewood	CO	Shopping Center			153,000		7.8	%		8
47	1400 East 104th Avenue	Thornton	CO	Shopping Center			179,800		31.7	%		25
48	850 Hartford Turnpike	Waterford	CT	Mall			149,200		0.0	%		11
49	19563 Coastal Highway	Rehoboth Beach	DE	Freestanding	X		123,300		100.0	%		13
50	5900 Glades Road	Boca Raton	FL	Mall			178,500		2.4	%		19
51	7350 Manatee Avenue West	Bradenton	FL	Shopping Center	X		82,900		100.0	%		9
52	27001 U.S. 19 North	Clearwater	FL	Mall			211,300		41.5	%		14
53	1625 Northwest 107th Avenue	Doral	FL	Mall			212,900		42.3	%		13
54	4125 Cleveland Avenue	Ft. Myers	FL	Mall	X		146,800		100.0	%		12
55	6201 West Newberry Road	Gainesville	FL	Mall			139,100		100.0	%		8
56	1675 West 49th Street	Hialeah	FL	Mall	X		197,500		86.7	%		8
57	1460 West 49th Street	Hialeah	FL	Freestanding			106,300		100.0	%		9
58	2211 West Vine Street	Kissimmee	FL	Shopping Center			148,900		24.4	%		14
59	3800 US Highway 98 North	Lakeland	FL	Mall			156,200		0.0	%		12
60	1050 South Babcock Street	Melbourne	FL	Freestanding			102,600		0.0	%		14
61	19505 Biscayne Boulevard	Miami	FL	Mall			216,600		50.6	%		12
62	20701 Southwest 112th Avenue	Miami	FL	Mall	X		170,100		100.0	%		15
63	10700 Biscayne Boulevard	North Miami	FL	Freestanding			119,600		95.2	%		11
64	3100 Southwest College Road	Ocala	FL	Mall			146,200		0.0	%		12
65	380 Blanding Boulevard	Orange Park	FL	Shopping Center			87,400		100.0	%		9
66	3111 East Colonial Drive	Orlando	FL	Mall			130,400		94.9	%		18
67	733 North Highway 231	Panama City	FL	Mall			139,300		0.0	%		15
68	7171 North Davis Highway	Pensacola	FL	Shopping Center			126,700		80.3	%		15
69	8000 West Broward Boulevard	Plantation	FL	Mall			184,300		60.0	%		18
70	8201 South Tamiami Trail	Sarasota	FL	Mall			204,500		0.0	%		15
71	4501 66th Street North	St. Petersburg	FL	Freestanding	X		120,600		100.0	%		11
72	2300 Tyrone Boulevard North	St. Petersburg	FL	Mall			149,300		97.9	%		14

- 25 -

PROPERTY INFORMATION

Wholly Owned Properties (cont’d)

June 30, 2019

					Holdco	Total					Land
	Property Address	City	State	Property Type (1)	Master Lease (2)	GLA (3)		Leased (3)			Acres
73	7810 Abercorn Street	Savannah	GA	Mall			167,300		6.9	%		15
74	500 North Nimitz Highway	Honolulu	HI	Freestanding			76,100		100.0	%		4
75	1501 Highway 169 North	Algona	IA	Freestanding	X		99,300		100.0	%		7
76	4600 1st Avenue Northeast	Cedar Rapids	IA	Mall			146,000		0.0	%		12
77	1405 South Grand Avenue	Charles City	IA	Freestanding	X		96,600		100.0	%		11
78	2307 Superior Street	Webster City	IA	Shopping Center			40,800		0.0	%		4
79	460 North Milwaukee Street	Boise	ID	Mall			123,600		0.0	%		8
80	4730 West Irving Park Road	Chicago	IL	Freestanding			356,700		10.7	%		6
81	1601 North Harlem Avenue	Chicago	IL	Freestanding			293,700		24.7	%		7
82	5050 South Kedzie Avenue	Chicago	IL	Shopping Center			120,700		73.8	%		9
83	17550 Halsted Street	Homewood	IL	Shopping Center			196,100		100.0	%		19
84	3340 Mall Loop Drive	Joliet	IL	Mall			204,600		18.6	%		17
85	2860 South Highland Avenue	Lombard	IL	Freestanding			139,300		100.0	%		8
86	7503 West Cermak Road	North Riverside	IL	Mall	X		202,500		93.6	%		13
87	2 Orland Square Drive	Orland Park	IL	Mall			160,000		52.4	%		16
88	2500 Wabash Avenue	Springfield	IL	Shopping Center			127,800		85.7	%		14
89	3231 Chicago Road	Steger	IL	Freestanding			87,400		0.0	%		3
90	3101 Northview Drive	Elkhart	IN	Shopping Center			86,600		100.0	%		8
91	4201 Coldwater Road	Ft. Wayne	IN	Mall			93,400		85.9	%		15
92	101 West Lincoln Highway	Merrillville	IN	Shopping Center			170,900		87.1	%		17
93	9701 Metcalf Avenue	Overland Park	KS	Shopping Center			215,000		5.6	%		19
94	3010 Fort Campbell Boulevard	Hopkinsville	KY	Shopping Center			85,100		75.9	%		13
95	5101 Hinkleville Road	Paducah	KY	Mall			97,300		68.7	%		9
96	5715 Johnston Street	Lafayette	LA	Mall			194,900		0.0	%		16
97	900 East Admiral Doyle Drive	New Iberia	LA	Freestanding			114,600		100.0	%		12
98	200 Grossman Drive	Braintree	MA	Shopping Center			89,700		94.8	%		34
99	1325 Broadway	Saugus	MA	Mall	X		210,700		55.9	%		16
100	15700 Emerald Way	Bowie	MD	Shopping Center			131,500		5.7	%		11
101	3207 Solomons Island Road	Edgewater	MD	Shopping Center	X		117,100		100.0	%		14
102	417 Main Street	Madawaska	ME	Shopping Center			49,700		0.0	%		2
103	2355 US Highway 23 South	Alpena	MI	Freestanding			118,200		0.0	%		12
104	1250 Boardman-Jackson Crossing	Jackson	MI	Shopping Center			152,700		5.6	%		15
105	2100 Southfield Road	Lincoln Park	MI	Shopping Center			301,700		1.3	%		17
106	1560 US 31 South	Manistee	MI	Shopping Center			94,700		0.0	%		12
107	32123 Gratiot Avenue	Roseville	MI	Mall			364,600		43.8	%		21
108	2760 I-75 Business Spur	Sault Sainte Marie	MI	Freestanding			92,700		0.0	%		11

- 26 -

PROPERTY INFORMATION

Wholly Owned Properties (cont’d)

June 30, 2019

					Holdco	Total					Land
	Property Address	City	State	Property Type (1)	Master Lease (2)	GLA (3)		Leased (3)			Acres
109	22801 Harper Avenue	St. Clair Shores	MI	Freestanding			103,000		100.0	%		11
110	300 West 14 Mile Road	Troy	MI	Mall			384,100		27.0	%		30
111	3100 Washtenaw Road	Ypsilanti	MI	Freestanding			99,400		100.0	%		12
112	14250 Buck Hill Road	Burnsville	MN	Mall			161,700		0.0	%		15
113	1305 Highway 10 West	Detroit Lakes	MN	Shopping Center			87,100		0.0	%		15
114	3001 White Bear Avenue North	Maplewood	MN	Mall			175,000		0.0	%		14
115	425 Rice Street	St. Paul	MN	Freestanding			217,900		0.7	%		17
116	11 South Kingshighway Street	Cape Girardeau	MO	Freestanding			75,000		100.0	%		6
117	1 Flower Valley Shopping Center	Florissant	MO	Shopping Center			124,000		17.2	%		11
118	2304 Missouri Boulevard	Jefferson City	MO	Freestanding			97,700		100.0	%		10
119	3700 South Campbell Avenue	Springfield	MO	Shopping Center			112,900		100.0	%		8
120	2308 Highway 45 North	Columbus	MS	Shopping Center			166,700		27.2	%		18
121	1 South Tunnel Road	Asheville	NC	Mall			110,600		40.7	%		16
122	1302 Bridford Parkway	Greensboro	NC	Shopping Center			178,500		78.4	%		16
123	1 20th Avenue Southeast	Minot	ND	Shopping Center	X		110,400		100.0	%		13
124	4700 2nd Avenue	Kearney	NE	Freestanding			80,000		81.1	%		8
125	1500 South Willow Street	Manchester	NH	Mall			114,100		70.5	%		11
126	310 Daniel Webster Highway	Nashua	NH	Mall	X		167,100		100.0	%		7
127	50 Fox Run Road	Portsmouth	NH	Mall			127,100		0.0	%		13
128	77 Rockingham Park Boulevard	Salem	NH	Mall			207,200		59.4	%		14
129	1500 Highway 35	Middletown	NJ	Freestanding			191,100		100.0	%		23
130	1640 Route 22	Watchung	NJ	Freestanding			116,400		93.6	%		19
131	1205 East Pine Street	Deming	NM	Freestanding			96,600		0.0	%		10
132	10405 South Eastern Avenue	Henderson	NV	Shopping Center			143,500		100.0	%		12
133	4000 Meadows Lane	Las Vegas	NV	Mall	X		130,300		83.3	%		11
134	5400 Meadowood Mall Circle	Reno	NV	Mall			183,700		22.5	%		3
135	1425 Central Avenue	Albany	NY	Mall			277,900		18.6	%		21
136	4155 State Route 31	Clay	NY	Mall			146,500		0.0	%		12
137	4000 Jericho Turnpike	East Northport	NY	Shopping Center			179,700		48.4	%		18
138	195 North Broadway	Hicksville	NY	Freestanding			284,800		34.3	%		30
139	2801 West State Street	Olean	NY	Freestanding			121,700		45.5	%		13
140	317 Greece Ridge Center Drive	Rochester	NY	Mall			128,500		0.0	%		15
141	171 Delaware Avenue	Sidney	NY	Shopping Center	X		94,400		100.0	%		19
142	200 Eastview Mall	Victor	NY	Mall			123,000		83.4	%		14
143	600 Lee Boulevard	Yorktown Heights	NY	Mall			160,000		24.1	%		12
144	4100 Belden Village Avenue Northwest	Canton	OH	Mall	X		219,400		100.0	%		19

- 27 -

PROPERTY INFORMATION

Wholly Owned Properties (cont’d)

June 30, 2019

					Holdco	Total					Land
	Property Address	City	State	Property Type (1)	Master Lease (2)	GLA (3)		Leased (3)			Acres
145	2000 Brittain Road	Chapel Hill	OH	Mall			193,100		0.0	%		21
146	2700 Miamisburg Centerville Road	Dayton	OH	Mall			192,500		7.0	%		16
147	1005 East Columbus Street	Kenton	OH	Freestanding			96,100		0.0	%		11
148	502 Pike Street	Marietta	OH	Freestanding	X		87,500		100.0	%		7
149	7875 Johnnycake Ridge Road	Mentor	OH	Mall			208,700		0.0	%		20
150	6950 West 130th Street	Middleburg Heights	OH	Shopping Center			351,600		0.0	%		15
151	1447 North Main Street	North Canton	OH	Shopping Center	X		87,100		100.0	%		9
152	3408 West Central Avenue	Toledo	OH	Shopping Center			209,900		0.0	%		11
153	4400 South Western Avenue	Oklahoma City	OK	Freestanding			223,700		22.4	%		24
154	3132 East 51st Street	Tulsa	OK	Freestanding			87,200		100.0	%		9
155	1180 Southeast 82nd Avenue	Happy Valley	OR	Mall			144,300		31.2	%		12
156	1180 Walnut Bottom Road	Carlisle	PA	Shopping Center			117,800		0.0	%		3
157	3975 Columbia Avenue	Columbia	PA	Shopping Center	X		86,700		100.0	%		8
158	160 North Gulph Road (4)	King Of Prussia	PA	Mall			210,800		82.8	%		14
159	1745 Quentin Road	Lebanon	PA	Shopping Center	X		117,200		100.0	%		15
160	100 Cross Roads Plaza	Mount Pleasant	PA	Shopping Center			86,300		67.7	%		10
161	400 North Best Avenue	Walnutport	PA	Freestanding	X		121,200		100.0	%		16
162	PR 167 & Las Cumbres	Bayamon	PR	Shopping Center	X		115,200		100.0	%		10
163	400 Calle Betances	Caguas	PR	Mall	X		138,700		100.0	%		8
164	Avenue 65 Infanteria	Carolina	PR	Mall	X		198,000		100.0	%		11
165	Martinez Nadal Avenue	Guaynabo	PR	Shopping Center	X		223,500		94.6	%		18
166	PR Road 2, Km 149.5	Mayaguez	PR	Shopping Center	X		118,200		100.0	%		13
167	2643 Ponce Bypass	Ponce	PR	Shopping Center	X		126,900		100.0	%		9
168	650 Bald Hill Road	Warwick	RI	Shopping Center			211,700		96.0	%		20
169	3801B Clemson Boulevard	Anderson	SC	Shopping Center			119,300		100.0	%		12
170	7801 Rivers Avenue	Charleston	SC	Mall			128,600		52.7	%		14
171	2800 North Germantown Parkway	Cordova	TN	Mall			160,900		0.0	%		12
172	4570 Poplar Avenue	Memphis	TN	Freestanding			112,700		87.7	%		11
173	12625 North Interstate Highway 35	Austin	TX	Shopping Center			153,700		29.3	%		25
174	3450 West Camp Wisdom Road	Dallas	TX	Mall			205,300		0.0	%		13
175	9484 Dyer Street	El Paso	TX	Freestanding			114,200		53.0	%		11
176	300 Baybrook Mall	Friendswood	TX	Mall			166,000		0.0	%		13
177	303 Memorial City	Houston	TX	Mall			214,400		100.0	%		20
178	12605 North Gessner Road	Houston	TX	Freestanding			134,000		100.0	%		11
179	6301 Northwest Loop 410	Ingram	TX	Mall			168,400		0.0	%		12
180	2501 Irving Mall	Irving	TX	Mall			84,500		29.2	%		18

- 28 -

PROPERTY INFORMATION

Wholly Owned Properties (cont’d)

June 30, 2019

					Holdco	Total					Land
	Property Address	City	State	Property Type (1)	Master Lease (2)	GLA (3)		Leased (3)			Acres
181	201 Central Park Mall	San Antonio	TX	Freestanding			198,800		90.0	%		15
182	4000 North Shepherd	Shepherd	TX	Freestanding	X		201,700		100.0	%		12
183	13131 Preston Road	Valley View	TX	Mall			235,000		2.5	%		23
184	9570 Southwest Freeway	Westwood	TX	Freestanding			213,600		100.0	%		18
185	2010 North Main Street	Layton	UT	Shopping Center			176,900		90.3	%		14
186	7453 South Plaza Center Drive	West Jordan	UT	Shopping Center			208,300		100.0	%		12
187	5901 Duke Street	Alexandria	VA	Mall	X		262,100		100.0	%		18
188	1401 Greenbrier Parkway	Chesapeake	VA	Mall			169,400		0.0	%		15
189	12000 Fair Oaks Mall	Fairfax	VA	Mall			220,200		33.6	%		15
190	4588 Virginia Beach Boulevard	Virginia Beach	VA	Mall			197,300		56.0	%		14
191	141 West Lee Highway	Warrenton	VA	Shopping Center			86,100		25.4	%		9
192	2200 148th Avenue Northeast	Redmond	WA	Shopping Center			230,700		0.0	%		15
193	5200 South 76th Street	Greendale	WI	Mall			187,400		75.5	%		21
194	53 West Towne Mall	Madison	WI	Mall			142,400		38.1	%		18
	Total - Wholly-Owned Properties						30,273,600		54.1	%		2,555

(1) Company classification.  Mall properties are attached to regional malls; Shopping Center properties include properties attached, within or adjacent to neighborhood shopping or power centers, as well as freestanding properties.

(2) Denotes property subject to the Holdco Master Lease.

(3) Based on signed leases as of June 30, 2019.

(4) Property is subject to a ground lease.

- 29 -

DISCLOSURES

Non-GAAP Measures

The Company makes reference to NOI, Total NOI, EBITDAre, Company EBITDA, 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, EBITDAre, Company EBITDA, 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 we deem most comparable have been provided in this Supplemental Information package.

Net Operating Income ("NOI”), Total NOI and Annualized Total NOI

NOI is defined as income from property operations less property operating expenses.  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 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.

Annualized Total NOI is an estimate, as of the end of the reporting period, of the annual Total NOI to be generated by the Company’s portfolio including all signed leases and modifications to the Original Master Lease and Holdco Master Lease with respect to recaptured space.   We calculate Annualized Total NOI by adding or subtracting current period adjustments for leases that commenced or expired during the period to Total NOI (as defined) for the period and annualizing, and then adding estimated annual Total NOI attributable to SNO leases and subtracting estimated annual Total NOI attributable to Sears Holdings and Holdco space to be recaptured.

Annualized Total NOI is a forward-looking non-GAAP measure for which the Company does not believe it can provide reconciling information to a corresponding forward-looking GAAP measure without unreasonable effort.

Earnings before Interest Expense, Income Tax, Depreciation, and Amortization for Real Estate ("EBITDAre") and Company EBITDA

EBITDAre is calculated in accordance with the definition set forth by the National Association of Real Estate Investment Trusts ("NAREIT"), which may not be comparable to measures calculated by other companies who do not use the NAREIT definition of EBITDA.  EBITDAreis calculated as net income computed in accordance with GAAP, excluding interest expense, income tax expense, depreciation and amortization, gains (or losses) from property sales and impairment charges on depreciable real estate assets.  The Company believes EBITDAre provides useful information to investors regarding our results of operations because it removes the impact of the Company’s capital structure (primarily interest expense) and its asset base (primarily depreciation and amortization).  Management also believes the use of EBITDAre facilitates comparisons between us and other equity REITs and real property owners that are not REITs.

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

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.  

- 30 -

DISCLOSURES

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, unrealized loss on interest rate cap, litigation charges, acquisition-related expenses, amortization of deferred financing costs and certain up-front-hiring and personnel costs, that it does not believe are representative of ongoing operating results.

Forward-Looking Statements

This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the company’s control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that could cause or contribute to such differences include, but are not limited to: our historical exposure to Sears Holdings and the effects of its previously announced bankruptcy filing; Holdco’s termination and other rights under its master lease with us; competition in the real estate and retail industries; risks relating to our recapture and redevelopment activities; contingencies to the commencement of rent under leases; the terms of our indebtedness; restrictions with which we are required to comply in order to maintain REIT status and other legal requirements to which we are subject; and our relatively limited history as an operating company.  For additional discussion of these and other applicable risks, assumptions and uncertainties, see the “Risk Factors” and forward-looking statement disclosure contained in our filings with the Securities and Exchange Commission, including the risk factors relating to Sears Holdings and Holdco.  While we believe that our forecasts and assumptions are reasonable, we caution that actual results may differ materially.  We intend the forward-looking statements to speak only as of the time made and do not undertake to update or revise them as more information becomes available, except as required by law.

- 31 -

Seritage Growth Properties

500 Fifth Avenue | New York, NY 10110

212-355-7800 | www.seritage.com