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Seritage Growth Properties

NYSE:SRG
Snowflake Description

Mediocre balance sheet not a dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SRG
NYSE
$2B
Imp Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 206 wholly-owned properties and 26 joint venture properties totaling approximately 36.3 million square feet of space across 48 states and Puerto Rico. The last earnings update was 50 days ago. More info.


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SRG Share Price and Events
7 Day Returns
-1.5%
NYSE:SRG
-2.7%
US REITs
0.2%
US Market
1 Year Returns
23.7%
NYSE:SRG
14.5%
US REITs
6.3%
US Market
SRG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Seritage Growth Properties (SRG) -1.5% -1.7% 13.4% 23.7% -17.2% -
US REITs -2.7% 0.5% 7.1% 14.5% 11% 25.5%
US Market 0.2% 2.1% 8.5% 6.3% 37.9% 45.7%
1 Year Return vs Industry and Market
  • SRG outperformed the REITs industry which returned 14.5% over the past year.
  • SRG outperformed the Market in United States of America which returned 6.3% over the past year.
Price Volatility
SRG
Industry
5yr Volatility vs Market

SRG Value

 Is Seritage Growth Properties undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Seritage Growth Properties to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Seritage Growth Properties.

NYSE:SRG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:SRG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.55
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.546 (1 + (1- 21%) (64.75%))
0.883
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.883 * 5.96%)
7.99%

Discounted Cash Flow Calculation for NYSE:SRG using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for Seritage Growth Properties is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Seritage Growth Properties is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

NYSE:SRG DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (USD, Millions) Source Present Value
Discounted (@ 7.99%)
2019 -21.00 Analyst x1 -19.45
2020 2.80 Analyst x1 2.40
2021 51.50 Analyst x1 40.89
2022 64.22 Est @ 24.71% 47.22
2023 75.86 Est @ 18.11% 51.64
2024 86.09 Est @ 13.5% 54.28
2025 94.93 Est @ 10.27% 55.42
2026 102.54 Est @ 8.01% 55.43
2027 109.12 Est @ 6.42% 54.62
2028 114.92 Est @ 5.32% 53.27
Present value of next 10 years cash flows $395.72
NYSE:SRG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $114.92 × (1 + 2.73%) ÷ (7.99% – 2.73%)
$2,243.27
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,243.27 ÷ (1 + 7.99%)10
$1,039.76
NYSE:SRG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $395.72 + $1,039.76
$1,435.48
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,435.48 / 55.79
$25.73
NYSE:SRG Discount to Share Price
Calculation Result
Value per share (USD) From above. $25.73
Current discount Discount to share price of $44.24
= -1 x ($44.24 - $25.73) / $25.73
-71.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Seritage Growth Properties is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Seritage Growth Properties's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Seritage Growth Properties's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:SRG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-2.20
NYSE:SRG Share Price ** NYSE (2019-04-18) in USD $44.24
United States of America REITs Industry PE Ratio Median Figure of 152 Publicly-Listed REITs Companies 31.08x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.15x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Seritage Growth Properties.

NYSE:SRG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:SRG Share Price ÷ EPS (both in USD)

= 44.24 ÷ -2.20

-20.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Seritage Growth Properties is loss making, we can't compare its value to the US REITs industry average.
  • Seritage Growth Properties is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Seritage Growth Properties's expected growth come at a high price?
Raw Data
NYSE:SRG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -20.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
10.7%per year
United States of America REITs Industry PEG Ratio Median Figure of 139 Publicly-Listed REITs Companies -0.1x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Seritage Growth Properties, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Seritage Growth Properties's assets?
Raw Data
NYSE:SRG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $21.89
NYSE:SRG Share Price * NYSE (2019-04-18) in USD $44.24
United States of America REITs Industry PB Ratio Median Figure of 191 Publicly-Listed REITs Companies 1.84x
United States of America Market PB Ratio Median Figure of 5,178 Publicly-Listed Companies 1.91x
NYSE:SRG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:SRG Share Price ÷ Book Value per Share (both in USD)

= 44.24 ÷ 21.89

2.02x

* Primary Listing of Seritage Growth Properties.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Seritage Growth Properties is overvalued based on assets compared to the US REITs industry average.
X
Value checks
We assess Seritage Growth Properties's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Seritage Growth Properties has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SRG Future Performance

 How is Seritage Growth Properties expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Seritage Growth Properties expected to grow at an attractive rate?
  • Unable to compare Seritage Growth Properties's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Seritage Growth Properties's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Unable to compare Seritage Growth Properties's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NYSE:SRG Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:SRG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 10.7%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 1.9%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:SRG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:SRG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 61 -56
2020-12-31 9 -72
2019-12-31 -22 -79
NYSE:SRG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 204 55 -78
2018-09-30 203 38 -66
2018-06-30 209 64 -32
2018-03-31 218 43 -45
2017-12-31 233 60 -74
2017-09-30 249 56 -46
2017-06-30 248 61 -77
2017-03-31 255 119 -63
2016-12-31 253 97 -52
2016-03-31 234 -52

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Seritage Growth Properties is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Unable to determine if Seritage Growth Properties is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:SRG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Seritage Growth Properties Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SRG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
NYSE:SRG Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -2.20
2018-09-30 -1.87
2018-06-30 -0.92
2018-03-31 -1.32
2017-12-31 -2.19
2017-09-30 -1.38
2017-06-30 -2.37
2017-03-31 -1.97
2016-12-31 -1.64
2016-03-31 -1.64

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Seritage Growth Properties will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Seritage Growth Properties's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Seritage Growth Properties has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SRG Past Performance

  How has Seritage Growth Properties performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Seritage Growth Properties's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Seritage Growth Properties does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Seritage Growth Properties's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Seritage Growth Properties's 1-year growth to the US REITs industry average as it is not currently profitable.
Earnings and Revenue History
Seritage Growth Properties's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Seritage Growth Properties Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SRG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 204.31 -78.38 35.05
2018-09-30 202.75 -65.79 36.37
2018-06-30 208.79 -31.84 33.28
2018-03-31 218.02 -45.08 29.61
2017-12-31 233.23 -74.00 28.06
2017-09-30 249.46 -45.55 21.12
2017-06-30 248.20 -77.16 20.16
2017-03-31 254.63 -63.06 19.61
2016-12-31 253.32 -51.56 17.74
2016-03-31 233.86 -51.92 23.39
2015-12-31 236.69 -44.68 19.91
2014-12-31 273.10 -4.37 3.85

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Seritage Growth Properties has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Seritage Growth Properties used its assets less efficiently than the US REITs industry average last year based on Return on Assets.
  • It is difficult to establish if Seritage Growth Properties improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Seritage Growth Properties's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Seritage Growth Properties has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SRG Health

 How is Seritage Growth Properties's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Seritage Growth Properties's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Seritage Growth Properties is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Seritage Growth Properties's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Seritage Growth Properties's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Seritage Growth Properties Company Filings, last reported 3 months ago.

NYSE:SRG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,150.46 1,598.05 532.86
2018-09-30 1,251.41 1,598.12 581.62
2018-06-30 1,299.19 1,217.87 105.55
2018-03-31 1,322.57 1,274.38 140.29
2017-12-31 1,320.86 1,345.52 241.57
2017-09-30 1,333.12 1,284.62 104.25
2017-06-30 1,329.44 1,333.36 14.97
2017-03-31 1,377.89 1,174.02 31.84
2016-12-31 1,424.31 1,166.87 52.03
2016-03-31 1,541.68 1,143.76 57.13
2015-12-31 1,570.08 1,142.42 64.97
2014-12-31
  • Seritage Growth Properties's level of debt (138.9%) compared to net worth is high (greater than 40%).
  • Unable to establish if Seritage Growth Properties's debt level has increased without past 5-year debt data.
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.

  • Whilst loss making Seritage Growth Properties has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Seritage Growth Properties has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 13.6% per year.
X
Financial health checks
We assess Seritage Growth Properties's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Seritage Growth Properties has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SRG Dividends

 What is Seritage Growth Properties's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.26%
Current annual income from Seritage Growth Properties dividends.
If you bought $2,000 of Seritage Growth Properties shares you are expected to receive $45 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Seritage Growth Properties's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Seritage Growth Properties's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:SRG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 184 Stocks 4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:SRG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
NYSE:SRG Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-25 1.000 2.222
2018-10-23 1.000 2.654
2018-07-24 1.000 2.116
2018-04-25 1.000 2.448
2018-02-20 1.000 2.768
2017-10-24 1.000 2.461
2017-07-26 1.000 2.162
2017-04-25 1.000 2.386
2017-02-28 1.000 2.290
2016-11-01 1.000 2.248
2016-08-02 1.000 2.098
2016-05-04 1.000 2.060
2016-03-08 1.000 2.009
2015-12-17 1.000 2.498

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Seritage Growth Properties has been paying a dividend for less than 10 years.
  • Seritage Growth Properties has only been paying a dividend for 3 years, and since then there has been no growth.
Current Payout to shareholders
What portion of Seritage Growth Properties's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.6x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Seritage Growth Properties's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Seritage Growth Properties afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Seritage Growth Properties has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SRG Management

 What is the CEO of Seritage Growth Properties's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ben Schall
COMPENSATION $8,872,766
AGE 43
CEO Bio

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 served as the Chief Operating Officer at Rouse Properties, Inc. from March 8, 2012 to April 2015. Prior to this, He held a number of roles at Vornado Realty Trust from 2003 to 2012, where his positions included Senior Vice President. Mr. Schall holds a Masters of Business Administration from Harvard Business School and a Bachelor of Arts degree from Swarthmore College.

CEO Compensation
  • Ben's compensation has increased whilst company is loss making.
  • Ben's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Seritage Growth Properties management team in years:

3.8
Average Tenure
42.5
Average Age
  • The tenure for the Seritage Growth Properties management team is about average.
Management Team

Ben Schall

TITLE
President
COMPENSATION
$9M
AGE
43

Brian Dickman

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
42
TENURE
4.3 yrs

Ken Lombard

TITLE
Executive VP & COO
COMPENSATION
$1M
AGE
63
TENURE
0.9 yrs

Matthew Fernand

TITLE
Executive VP
COMPENSATION
$2M
AGE
41

James Bry

TITLE
Executive Vice President of Development & Construction
COMPENSATION
$1M
AGE
50
TENURE
3.8 yrs

Mary Rottler

TITLE
Executive Vice President of Leasing & Operations
COMPENSATION
$1M
AGE
41
TENURE
3.8 yrs

Maurice Funes

TITLE
Senior Vice President of Leasing & Development

Paul D’Arelli

TITLE
Senior Vice President of Development

Chris Mrozinski

TITLE
Senior Vice President

Meghan Kruger

TITLE
Senior Vice President of Leasing
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Seritage Growth Properties board of directors in years:

3.8
Average Tenure
56.5
Average Age
  • The tenure for the Seritage Growth Properties board of directors is about average.
Board of Directors

Edward Lampert

TITLE
Chairman of the Board
COMPENSATION
$100K
AGE
56
TENURE
3.8 yrs

Ben Schall

TITLE
President
COMPENSATION
$9M
AGE
43
TENURE
3.8 yrs

John McClain

TITLE
COMPENSATION
$115K
AGE
57
TENURE
3.8 yrs

David Fawer

TITLE
COMPENSATION
$100K
AGE
49
TENURE
3.8 yrs

Tom Steinberg

TITLE
COMPENSATION
$100K
AGE
61
TENURE
3.8 yrs

Sharon Osberg

TITLE
Independent Trustee
COMPENSATION
$60K
AGE
68
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
12. Dec 18 Sell James Bry Individual 11. Dec 18 11. Dec 18 -3,318 $38.08 $-126,344
10. Aug 18 Buy Sharon Osberg Individual 08. Aug 18 08. Aug 18 2,000 $48.36 $96,708
18. Jun 18 Buy Sharon Osberg Individual 18. Jun 18 18. Jun 18 1,200 $44.45 $53,340
X
Management checks
We assess Seritage Growth Properties's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Seritage Growth Properties has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SRG News

Simply Wall St News

What Are Analysts Saying About Seritage Growth Properties's (NYSE:SRG) Growth?

The most recent earnings release Seritage Growth Properties's (NYSE:SRG) announced in December 2018 … that losses became smaller relative to the prior year's level … as a result of recent tailwinds

Simply Wall St -

Seritage Growth Properties (NYSE:SRG) Shareholders Have Enjoyed A 32% Share Price Gain

For example, the Seritage Growth Properties (NYSE:SRG) share price is up 32% in the last year, clearly besting than the market return of around 8.0% (not including dividends). … Given that Seritage Growth Properties didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … In the last year Seritage Growth Properties saw its revenue shrink by 12%.

Simply Wall St -

Investing In Property Through Seritage Growth Properties (NYSE:SRG)

Seritage Growth Properties is a US$2.5b. … View our latest analysis for Seritage Growth Properties. … REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities

Simply Wall St -

How Does Seritage Growth Properties (NYSE:SRG) Affect Your Portfolio Volatility?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility).

Simply Wall St -

How Many Insiders Bought Seritage Growth Properties (NYSE:SRG) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Seritage Growth Properties (NYSE:SRG). … The Last 12 Months Of Insider Transactions At Seritage Growth Properties. … In total, Seritage Growth Properties insiders bought more than they sold over the last year

Simply Wall St -

Is It Time To Buy Seritage Growth Properties (NYSE:SRG)?

Seritage Growth Properties (NYSE:SRG), a reits company based in United States,. … As a US$2.46b market-cap stock, it seems odd Seritage Growth Properties is not more well-covered by analysts. … Let’s take a look at Seritage Growth Properties’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Should Income Investors Buy Seritage Growth Properties (NYSE:SRG) Before Its Ex-Dividend?

Check out our latest analysis for Seritage Growth Properties How I analyze a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is their annual yield among the top 25% of dividend payers? … NYSE:SRG Historical Dividend Yield Mar 24th 18 How does Seritage Growth Properties fare? … Seritage Growth Properties has a negative payout ratio, which means that it is loss-making, and paying its dividend from its retained earnings.

Simply Wall St -

Is Seritage Growth Properties (NYSE:SRG) A Healthy REIT?

Seritage Growth Properties is a US$1.98B small-cap real estate investment trust (REIT) based in New York, United States. … Check out our latest analysis for Seritage Growth Properties REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities. … Next Steps: Seritage Growth Properties can bring diversification into your portfolio due to its unique REIT characteristics.

Simply Wall St -

Should You Have Seritage Growth Properties's (NYSE:SRG) In Your Portfolio?

If you are looking to invest in Seritage Growth Properties’s (NYSE:SRG), or currently own the stock, then you need to understand its beta in order to understand how it can affect the risk of your portfolio. … Seritage Growth Properties's beta of 0.97 indicates that the stock value will be less variable compared to the whole stock market. … SRG’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio.

Simply Wall St -

Is Seritage Growth Properties's (NYSE:SRG) CEO Overpaid Relative To Its Peers?

Therefore I will use earnings as a proxy of Schall's performance in the past year. … NYSE:SRG Past Future Earnings Feb 16th 18 Is SRG's CEO overpaid relative to the market? … Typically I would look at market cap and earnings as a proxy for performance, however, SRG's negative earnings lower the usefulness of my formula.

Simply Wall St -

SRG Company Info

Description

Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 206 wholly-owned properties and 26 joint venture properties totaling approximately 36.3 million square feet of space across 48 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 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.

Details
Name: Seritage Growth Properties
SRG
Exchange: NYSE
Founded: 2015
$2,468,005,510
$1,577,931,129
55,786,743
Website: http://www.seritage.com
Address: Seritage Growth Properties
500 Fifth Avenue,
Suite 1530,
New York,
New York, 10110,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE SRG Class A Shares New York Stock Exchange US USD 06. Jul 2015
NYSE SRG.PRA 7% CUM PFD SR A New York Stock Exchange US USD 11. Dec 2017
Number of employees
Current staff
Staff numbers
69
Seritage Growth Properties employees.
Industry
Retail REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/20 00:33
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/15
Last earnings filing: 2019/03/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.