At a Glance
- Seritage Growth Properties reported a net loss of $11.5 million for Q1 2026.
- The company's FFO stood at a negative $1.4 million, or $(0.03) per diluted share.
- Seritage continues its strategy of monetizing its remaining real estate portfolio.
Seritage Growth Properties (NYSE: SRG) announced its first quarter 2026 operating results, revealing a net loss attributable to common shareholders of $11.5 million, or $(0.21) per diluted share. The real estate investment trust, known for redeveloping former Sears and Kmart properties, also reported a negative Funds From Operations (FFO) of $1.4 million for the quarter. These figures underscore the company's ongoing strategic shift towards asset monetization and eventual dissolution.
First Quarter Financial Performance Highlights
For the first quarter of 2026, Seritage generated total revenues of $16.9 million. This revenue figure reflects the shrinking operational footprint as the company continues to divest properties. The comparable operating net operating income (NOI) for the period was a negative $0.6 million, indicating operational challenges in its remaining portfolio.
The company maintained a strong rent collection rate, with 99% of billed rents for the first quarter of 2026 being collected. This high collection rate provides some stability despite the broader strategic changes. Occupancy across its portfolio stood at 89.2% of total occupied gross leasable area (GLA), which amounted to 1.1 million square feet at the end of the quarter.
Seritage also reported a property disposition during the quarter, selling one asset for $1.0 million. This sale contributes to the substantial $1.9 billion in total dispositions the company has completed since 2017. The continued sale of assets is a central component of Seritage's long-term strategic plan.
"Our first quarter results reflect the ongoing execution of our strategy to monetize our remaining portfolio,"
— Andrea Olshan, Chief Executive Officer at Seritage Growth Properties
Strategic Direction and Portfolio Management
The company's primary focus remains on the systematic monetization of its real estate assets. This strategy aims to maximize shareholder value through controlled dispositions. The sale of properties is a deliberate move towards a full dissolution, as previously communicated to investors.
As part of this strategy, Seritage is actively evaluating various opportunities to optimize the value of its existing properties. This includes assessing market conditions and potential buyers for its diverse portfolio. The consistent progress in dispositions highlights the company's commitment to this defined path.
The company has significantly reduced its operational footprint over the past several years, transitioning from a large-scale redevelopment company to one focused on asset sales. This shift is designed to return capital to shareholders efficiently. Further information regarding the company's portfolio and strategy can be found on the Seritage Growth Properties website.
Seritage Growth Properties continues its deliberate transition, with first-quarter results aligning with its stated goal of liquidating its assets. The company remains committed to maximizing shareholder value through strategic dispositions and efficient property management. This ongoing process is a key indicator of its trajectory towards a full dissolution, as management consistently evaluates market opportunities.