Seritage Growth Properties (NYSE: SRG) has reported its first quarter 2024 operating results, revealing several notable changes since the previous period.
The company has generated $48.8 million of gross proceeds from sales in Q1 2024, including $34.0 million from one income producing multi-tenant retail asset reflecting a 7.6% capitalization rate, and $14.8 million from four vacant/non-income producing non-core assets sold at $28.56 per square foot.
Furthermore, subsequent to the quarter end, Seritage has generated $31.8 million of gross proceeds from sales, with $28.0 million coming from one income producing multi-tenant retail asset reflecting a 5.3% capitalization rate.
The company also made significant principal repayments on its term loan facility, reducing the balance to $330.0 million at March 31, 2024, and to $280.0 million as of May 7, 2024.
In terms of financial performance, Seritage reported a net loss attributable to common shareholders of ($20.2) million, or ($0.36) per share, for the first quarter of 2024. The total net operating income (NOI) for the quarter was $2.1 million. This figure reflects the impact of ($0.8) million NOI relating to sold properties.
The table below provides a summary of the company’s financial results for the three months ended March 31, 2024, revealing a net loss attributable to common shareholders of $20.2 million, and a net loss per share of $0.36.
Moreover, during the quarter, the company signed one lease covering 1.6 thousand square feet at a projected annual net rent of $110.25 per square foot, and opened five tenants totaling approximately 53.5 thousand square feet at an average net rent of $53.98 per square foot.
The company had cash on hand of $130.8 million, including $15.9 million of restricted cash, as of March 31, 2024. This decreased to $102.4 million, including $11.7 million of restricted cash, as of May 7, 2024.
Additionally, the company has provided future sales projections. For example, in gateway markets, it anticipates selling one multi-tenant asset for $25 * $30 million, eight premier assets, and various other assets with projected sale prices ranging from $15 million to $200 million.
In terms of leasing, the company has a multi-tenant retail leasing pipeline of over 100 thousand square feet, with a total occupancy of 68.8% for its multi-tenant retail properties as of March 31, 2024.
As a result of these announcements, the company's shares have moved -0.1% on the market, and are now trading at a price of $9.32. For more information, read the company's full 8-K submission here.
