SRG - Seritage Earnings: A Big Step Forward
Seritage Growth Properties (NYSE: SRG) shares have suffered mightily since the COVID-19 pandemic hit. The pandemic disrupted management's redevelopment plans, led to a slew of lease cancellations, and left the Sears real estate spinoff burning lots of cash without any clear path to breaking even.
Under new CEO Andrea Olshan, Seritage has begun to enact a strategy shift over the past year. The company's fourth-quarter earnings report showed that the real estate investment trust ( REIT ) is finally making progress toward reducing cash burn and capitalizing on the substantial opportunities embedded in its real estate.
In November, Seritage Growth Properties reported that its net operating income (NOI) increased modestly in the third quarter, compared to the second quarter. However, the sequential improvement of just $0.5 million didn't move the needle, considering that Seritage has been burning over $100 million a year (before redevelopment costs).
For further details see:
Seritage Earnings: A Big Step Forward