- Armchair quarterbacks love to hate Seritage but have limited foresight into why. The company is burning cash now, and it was burning cash pre-COVID when shares were over $40.
- The difference today, compared to pre-COVID, is Seritage now has a CEO in place with both short and long-term plans. The breadcrumbs have been provided, and now we follow.
- The new CEO has clearly stated who the company is today and what they will be in the future. This involves aggressively moving to sell valuable properties burning cash.
- Until recently, investors have never seen the breadcrumbs about these assets. Seritage has told us what they intend to sell, how much those cash those assets are burning per year, and my math in this article shows those assets should generate ~$600M in proceeds.
- More importantly, Seritage is telling investors they are reaching stabilization of multi-tenant retail. As these assets become stabilized, they represent the path to unlocking much cheaper financing than the 7% the company is paying today. As the company is able to use its stabilized assets, Seritage will also free up other assets to pursue achievable plans to "densify" some of the company's best properties.
For further details see:
Seritage Growth Properties: Significant Monetization Activities, A Path To Positive Cash From Operations, And A Massively Undervalued Asset Base - Shares Could Double