Seritage Growth Properties
Market Cap
US$2.1b
Last Updated
2020/02/20 02:38 UTC
Data Sources
Company Financials +
Executive Summary
Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 189 wholly-owned properties and 28 joint venture properties totaling approximately 34.4 million square feet of space across 44 states and Puerto Rico.
Snowflake Analysis
Overvalued with worrying balance sheet.
Share Price & News
How has Seritage Growth Properties's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SRG has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.7%
SRG
-0.5%
US REITs
0.5%
US Market
1 Year Return
-14.8%
SRG
14.9%
US REITs
20.3%
US Market
Return vs Industry: SRG underperformed the US REITs industry which returned 14.9% over the past year.
Return vs Market: SRG underperformed the US Market which returned 20.3% over the past year.
Shareholder returns
| SRG | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | -0.5% | 0.5% |
| 30 Day | -7.1% | 2.1% | 2.0% |
| 90 Day | -12.8% | 6.5% | 9.4% |
| 1 Year | -14.3%-14.8% | 19.6%14.9% | 22.8%20.3% |
| 3 Year | -15.4%-20.0% | 36.4%19.3% | 50.1%40.4% |
| 5 Year | n/a | 58.1%25.5% | 73.1%54.1% |
Price Volatility Vs. Market
How volatile is Seritage Growth Properties's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
How Does Seritage Growth Properties (NYSE:SRG) Affect Your Portfolio Volatility?4 weeks ago | Simply Wall St
Some Seritage Growth Properties (NYSE:SRG) Shareholders Are Down 11%1 month ago | Simply Wall St
How Should Investors Feel About Seritage Growth Properties's (NYSE:SRG) CEO Pay?Valuation
Is Seritage Growth Properties undervalued compared to its fair value and its price relative to the market?
1.81x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate SRG's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate SRG's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: SRG is unprofitable, so we can't compare its PE Ratio to the REITs industry average.
PE vs Market: SRG is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate SRG's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: SRG is good value based on its PB Ratio (1.8x) compared to the US REITs industry average (2.1x).
Next Steps
Future Growth
How is Seritage Growth Properties forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
0.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SRG is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: SRG is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: SRG is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: Insufficient data to determine if SRG's revenue is forecast to grow faster than the US market.
High Growth Revenue: Insufficient data to determine if SRG's revenue is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if SRG's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Seritage Growth Properties performed over the past 5 years?
-24.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SRG is currently unprofitable.
Growing Profit Margin: SRG is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: SRG is unprofitable, and losses have increased over the past 5 years at a rate of -24.3% per year.
Accelerating Growth: Unable to compare SRG's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: SRG is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (6.9%).
Return on Equity
High ROE: SRG has a negative Return on Equity (-12.88%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Seritage Growth Properties's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: SRG has a high level of physical assets or inventory.
Debt Coverage by Assets: SRG's debt is not covered by short term assets (assets are 0.2x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable SRG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: SRG is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -33.2% per year.
Financial Institutions Analysis
Asset Level: SRG's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if SRG has a sufficient allowance for bad loans.
Low Risk Liabilities: SRG reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if SRG has an acceptable proportion of non-loan assets held.
Low Risk Deposits: SRG has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if SRG has an appropriate level of bad loans.
Next Steps
Dividend
What is Seritage Growth Properties's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SRG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate SRG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SRG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SRG's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: SRG is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SRG's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Ben Schall (44yo)
US$8,872,766
Compensation
Mr. Benjamin W. Schall, also known as Ben, serves as the Chief Executive Officer, President of Seritage Growth Properties since 2015 and serves as its Trustee since July 6, 2015. Previously, Mr. Schall ser ...
CEO Compensation Analysis
Compensation vs Market: Ben's total compensation ($USD8.87M) is above average for companies of similar size in the US market ($USD3.82M).
Compensation vs Earnings: Ben's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0yrs | US$8.87m | 0.53% $11.1m | |
| Executive VP & CFO | 5.1yrs | US$1.79m | 0.038% $789.5k | |
| Executive VP & COO | 1.8yrs | US$1.28m | 0.0035% $73.2k | |
| Executive VP | 0yrs | US$1.62m | 0.039% $816.9k | |
| Executive Vice President of Development & Construction | 0.2yrs | US$1.17m | 0.0082% $172.5k | |
| Executive Vice President of Leasing & Operations | 4.7yrs | US$1.20m | 0.025% $531.4k | |
| Senior Vice President of Investments & Portfolio Management | 1.1yrs | no data | no data | |
| Senior Vice President of Leasing & Development | 0yrs | no data | no data | |
| Senior Vice President of Development | 0yrs | no data | no data | |
| Senior Vice President | 0yrs | no data | no data |
1.8yrs
Average Tenure
43.5yo
Average Age
Experienced Management: SRG's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0yrs | US$8.87m | 0.53% $11.1m | |
| Independent Trustee | 4.6yrs | US$100.00k | 0.063% $1.3m | |
| Chairman of the Board | 4.6yrs | US$100.00k | 1.76% $37.0m | |
| Independent Trustee | 0.8yrs | no data | no data | |
| Independent Trustee | 4.6yrs | US$115.00k | 0.0071% $148.5k | |
| Independent Trustee | 1.8yrs | US$60.17k | 0.012% $257.1k | |
| Independent Trustee | 4.6yrs | US$100.00k | 0.033% $685.4k |
4.6yrs
Average Tenure
57yo
Average Age
Experienced Board: SRG's board of directors are considered experienced (4.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.
Top Shareholders
Company Information
Seritage Growth Properties's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Seritage Growth Properties
- Ticker: SRG
- Exchange: NYSE
- Founded: 2015
- Industry: Retail REITs
- Sector: Real Estate
- Implied Market Cap: US$2.104b
- Market Cap: US$1.365b
- Shares outstanding: 55.80m
- Website: https://www.seritage.com
Number of Employees
Location
- Seritage Growth Properties
- 500 Fifth Avenue
- Suite 1530
- New York
- New York
- 10110
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SRG | NYSE (New York Stock Exchange) | Yes | Class A Common Shares | US | USD | Jul 2015 |
| SRG.PRA | NYSE (New York Stock Exchange) | 7% CUM PFD SR A | US | USD | Dec 2017 |
Biography
Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 189 wholly-owned properties and 28 joint venture properties totaling approximately 34.4 million square feet of space across 44 states and Puerto Rico. The Company was formed to unlock the underlying real estate value of a high-quality retail portfolio it acquired from Sears Holdings in July 2015. Pursuant to a master lease, the Company has the right to recapture certain space from the successor to Sears Holdings for retenanting or redevelopment purposes. The Company’s mission is to create and own revitalized shopping, dining, entertainment and mixed-use destinations that provide enriched experiences for consumers and local communities, and create long-term value for our shareholders.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 02:38 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.