Seritage Growth Properties reported its financial results for the three and nine months ended September 30, 2026. For the third quarter, the company reported net income attributable to common shareholders of $2.7 million, or $0.05 per share. However, for the nine-month period, the company reported a net loss of $36.2 million, or $0.64 per share.
The company generated gross proceeds of $3.0 million from the sale of one vacant asset. Additionally, it received a distribution of $8.9 million from an unconsolidated entity related to the sale of underlying property. The company also entered into an option purchase and sale agreement to sell a vacant premier asset in Dallas, Texas, for anticipated gross proceeds of $50.8 million. The agreement includes specific monthly option payments that will increase starting in January 2027, with the company having received $0.6 million in option payments through September 30, 2026.
On the balance sheet, as of September 30, 2026, the company had cash on hand of $45.4 million, including $32.7 million of restricted cash. It also holds $10.0 million of availability under a revolving loan facility. The company recorded an impairment charge of $15.2 million on one consolidated property during the nine months ended September 30, 2026, and an other-than-temporary impairment loss of $5.2 million on one unconsolidated entity.
On July 24, 2026, the company entered into a new $15.0 million term loan facility and a $25.0 million revolving loan facility. It drew $15.0 million at closing, which, combined with cash on hand, was used to repay a prior $50.0 million term loan facility. The company also faces ongoing litigation, including a class action lawsuit filed in July 2024 alleging securities law violations, and several derivative lawsuits filed in 2025.
