- Seritage Growth Properties is still burning lots of cash, while leasing activity has slowed to a crawl and the backlog of leases signed for future openings has shrunk dramatically.
- A string of gains on asset sales in recent years strongly suggests that Seritage's net asset value (NAV) is significantly higher than book value and the current stock price.
- Cash burn will steadily chip away at this NAV, though. As a result, Seritage Growth Properties stock should trade at a substantial discount to NAV.
- Unless management pivots to a strategy of partially or fully liquidating the company's assets to stop the cash burn, investors should avoid Seritage stock.
For further details see:
Avoid Seritage Growth Properties Despite Discount To NAV