The story at Seritage Growth Properties (NYSE: SRG) is still the same as it was when the company was spun off from now bankrupt Sears Holdings in 2015. It is the timing of management's action plan that's gotten all screwed up. It prepared as best it could, but at this point it is reliant on the good graces of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A). Here's what you need to know.
Seritage was a way for financially troubled Sears to raise cash. The retailer specifically created the real estate investment trust (REIT) so it could quickly sell hundreds of its properties in one swift move. Today, Seritage owns 194 properties outright and has 24 joint-venture assets. Seritage didn't go into this blind; it knew from day one that it would have to replace the Sears and Kmart stores at the properties it acquired from Sears Holdings.
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