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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 3/10

vs
industry
vs
history
Cash-to-Debt 0.02
SRG's Cash-to-Debt is ranked lower than
57% of the 655 Companies
in the Global REIT - Retail industry.

( Industry Median: 0.06 vs. SRG: 0.02 )
Ranked among companies with meaningful Cash-to-Debt only.
SRG' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.02  Med: 0.05 Max: No Debt
Current: 0.02
Equity-to-Asset 0.32
SRG's Equity-to-Asset is ranked lower than
86% of the 684 Companies
in the Global REIT - Retail industry.

( Industry Median: 0.51 vs. SRG: 0.32 )
Ranked among companies with meaningful Equity-to-Asset only.
SRG' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.3  Med: 0.31 Max: 0.32
Current: 0.32
0.3
0.32
Altman Z-Score: 0.44
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 2/10

vs
industry
vs
history
Operating Margin % -18.95
SRG's Operating Margin % is ranked lower than
94% of the 692 Companies
in the Global REIT - Retail industry.

( Industry Median: 49.17 vs. SRG: -18.95 )
Ranked among companies with meaningful Operating Margin % only.
SRG' s Operating Margin % Range Over the Past 10 Years
Min: -18.95  Med: -12.24 Max: -12.24
Current: -18.95
-18.95
-12.24
Net Margin % -25.12
SRG's Net Margin % is ranked lower than
95% of the 693 Companies
in the Global REIT - Retail industry.

( Industry Median: 39.81 vs. SRG: -25.12 )
Ranked among companies with meaningful Net Margin % only.
SRG' s Net Margin % Range Over the Past 10 Years
Min: -25.12  Med: -20.73 Max: -20.73
Current: -25.12
-25.12
-20.73
ROE % -7.50
SRG's ROE % is ranked lower than
95% of the 696 Companies
in the Global REIT - Retail industry.

( Industry Median: 6.34 vs. SRG: -7.50 )
Ranked among companies with meaningful ROE % only.
SRG' s ROE % Range Over the Past 10 Years
Min: -7.5  Med: -6.1 Max: -6.1
Current: -7.5
-7.5
-6.1
ROA % -2.30
SRG's ROA % is ranked lower than
95% of the 700 Companies
in the Global REIT - Retail industry.

( Industry Median: 3.31 vs. SRG: -2.30 )
Ranked among companies with meaningful ROA % only.
SRG' s ROA % Range Over the Past 10 Years
Min: -2.3  Med: -1.86 Max: -1.86
Current: -2.3
-2.3
-1.86
ROC (Joel Greenblatt) % -2.69
SRG's ROC (Joel Greenblatt) % is ranked lower than
96% of the 585 Companies
in the Global REIT - Retail industry.

( Industry Median: 16.50 vs. SRG: -2.69 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
SRG' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -2.69  Med: -1.64 Max: -1.64
Current: -2.69
-2.69
-1.64
GuruFocus has detected 3 Warning Signs with Seritage Growth Properties $SRG.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» SRG's 30-Y Financials

Financials (Next Earnings Date: 2017-08-04 Est.)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q2 2016

SRG Guru Trades in Q2 2016

HOTCHKIS & WILEY 227,600 sh (New)
Mario Gabelli 30,000 sh (New)
Fairholme Fund 2,084,600 sh (unchged)
Mohnish Pabrai 529,113 sh (-0.29%)
Bruce Berkowitz 3,433,750 sh (-0.41%)
Edward Lampert 436,078 sh (-1.86%)
Paul Tudor Jones 5,614 sh (-12.39%)
Murray Stahl 8,466 sh (-21.92%)
» More
Q3 2016

SRG Guru Trades in Q3 2016

Edward Lampert 436,078 sh (unchged)
Mohnish Pabrai 529,113 sh (unchged)
Bruce Berkowitz 3,433,750 sh (unchged)
Fairholme Fund 2,084,600 sh (unchged)
Paul Tudor Jones Sold Out
HOTCHKIS & WILEY 227,010 sh (-0.26%)
Mario Gabelli 29,800 sh (-0.67%)
Murray Stahl 8,251 sh (-2.54%)
» More
Q4 2016

SRG Guru Trades in Q4 2016

Paul Tudor Jones 12,944 sh (New)
Keeley Asset Management Corp 32,048 sh (New)
Murray Stahl 9,276 sh (+12.42%)
Bruce Berkowitz 3,433,750 sh (unchged)
Mohnish Pabrai 529,113 sh (unchged)
Fairholme Fund 2,084,600 sh (unchged)
HOTCHKIS & WILEY 209,750 sh (-7.60%)
Mario Gabelli 24,800 sh (-16.78%)
Edward Lampert 353,095 sh (-19.03%)
» More
Q1 2017

SRG Guru Trades in Q1 2017

HOTCHKIS & WILEY 1,936,642 sh (+823.31%)
Edward Lampert 526,095 sh (+49.00%)
Mario Gabelli 31,200 sh (+25.81%)
Bruce Berkowitz 3,666,950 sh (+6.79%)
Murray Stahl 9,332 sh (+0.60%)
Fairholme Fund 2,224,600 sh (+6.72%)
Paul Tudor Jones 8,144 sh (-37.08%)
Mohnish Pabrai 27,002 sh (-94.90%)
» More
» Details

Insider Trades

Latest Guru Trades with SRG

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Business Description

Industry: REITs » REIT - Retail    NAICS: 533110    SIC: 6798
Compare:NYSE:WPG, NYSE:CBL, NYSE:BFS, NYSE:KRG, NYSE:ADC, OTCPK:SGLMF, NYSE:RPT, NYSE:AAT, OTCPK:PPRQF, NYSE:GTY, OTCPK:LPMDF, NYSE:PEI, NYSE:UBA, NYSE:ALX, NAS:ROIC, OTCPK:FRIVF, NYSE:AKR, NYSE:WSR, OTCPK:SRRTF, NYSE:CDR » details
Headquarter Location:USA
Seritage Growth Properties operates in the real estate sector of the United States. As a self-managed REIT, it focusses mainly on investing in retail properties. Its revenue is in the form of rents received through letting out its properties.

Seritage Growth Properties is a self-administered and self-managed retail REIT. Seritage is principally engaged in the acquisition, management, and leasing of diversified retail real estate throughout the United States. The company operates both wholly owned properties and joint-venture properties totaling millions of square feet across nearly all of the United States. The overwhelming majority of the company's properties are leased to Sears Holdings pursuant to a master lease. The master lease provides Seritage with recapture rights for certain space from Sears. A core tenet of the company's strategy is to convert single-tenant buildings into multitenant properties and charge significantly higher rates through the use of these recapture rights.

Guru Investment Theses on Seritage Growth Properties

Bruce Berkowitz Comments on Seritage - Jan 31, 2017

Fortune Magazine notes that “there is still a lot of life in that American mainstay, the suburban mall,” but the tenant mix is shifting to accommodate new consumer preferences.5 Indeed, growing demand for “very un-mall-like grocery stores, spin-class fitness shops, and entertainment centers” presents attractive opportunities for landlords such as Seritage, who can convert existing retail square footage to “non-retail spaces that people want.”6 In 18 months, Seritage (NYSE:SRG) has re-leased 2.2 million square feet and commenced or completed 48 wholly owned redevelopment projects. Sears now represents 65% of signed lease revenue; down from 90%. Headlines overlook this renter diversification and ignore Seritage’s acceleration with large mixed-use redevelopments in Santa Monica (California), Aventura (Florida), Hicksville (New York), and Redmond (Washington).



From Bruce Berkowitz (Trades, Portfolio)'s Fairholme Fund (Trades, Portfolio) annual shareholder letter 2016.

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Bruce Berkowitz Comments on Seritage - Aug 02, 2016

Having recently celebrated its first anniversary as an independent and publicly traded real estate investment trust (REIT), Seritage (NYSE:SRG) is making steady progress in repurposing, re-tenanting, and redeveloping many of the 266 properties that it purchased from Sears last year. In the company’s inaugural Annual Report, CEO Ben Schall explains why the company’s genesis within Sears will prove lucrative:

The origins of our real estate portfolio trace back 30 to 40 years ago, during a period of expansive retail real estate development and the proliferation of super regional malls. Sears played a central role as a leading anchor, property owner and, at times, co-developer of many of these new developments. Sears’ prominence during this era is reflected in two important outcomes evident in today’s real estate landscape. First, Sears received fee ownership over large parcels of land to construct its department stores, auto centers and related uses. Second, and equally important, Sears was able to select prime locations at the front entrance and at the primary intersections at many of these new developments. Seritage Growth Properties is now the beneficiary of this real estate lineage, with fee ownership over some of the most desirable and visible locations in many of the top markets across the country. The premise of Seritage, the reason we were formed, and what we’re focused on each and every day, is unlocking the underlying real estate value of our high quality portfolio, and in turn, creating significant returns for our shareholders.8

Consider the significant growth potential for retail property owners like Seritage (and for that matter, Sears): “Redeveloping anchor space comes at a cost to landlords, but holds the promise of hefty returns as department stores paying as little as $2 a square foot in rent are replaced by new anchors paying $15 to $20 a square foot, real estate executives said. If the space is carved into smaller parcels for specialty retailers, rent can approach $100 a square foot. At the same time, the new, more productive tenants help lift sales at the overall mall by pulling in more shoppers, the executives said.”9 With time, we expect Seritage’s net operating income and dividend payout to grow rather dramatically, and for our longstanding investment thesis on the repurposing of Sears-related assets to come to fruition.


From Bruce Berkowitz (Trades, Portfolio)'s first-half 2016 letter to shareholders.

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Bruce Berkowitz Comments on Seritage Growth Properties - Feb 03, 2016

Seritage Growth Properties (“Seritage”) (NYSE:SRG), a newly formed public real estate investment trust (REIT) that purchased the aforementioned 266 properties from Sears in mid-2015, comprises 2.5% of Fund assets. Our detailed property-by-property analysis, which has been independently corroborated by third party real estate professionals, indicates that Seritage is signifi cantly undervalued at current market prices. One can only speculate that Warren Buffett (Trades,Portfolio) concurs with our assessment given his recent decision to personally acquire shares. Seritage’s real estate portfolio, which includes 235 properties and joint venture interests in 31 additional properties, has the opportunity to command signifi cantly higher rents. Seritage appears to have the largest development backlog of any national REIT, and will be able to develop more rentable space over time without a need for further acquisitions. Commentary from the company’s joint venture partners – General Growth Properties, Macerich, and Simon Properties – about ongoing and future projects across the country only serves to reinforce our conclusions. As shown in the following chart, Seritage and Sears have two of the lowest priced real estate portfolios in the United States.

From Bruce Berkowitz (Trades, Portfolio)'s 2015 Annual Letter for the Fairholme Fund.

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Top Ranked Articles about Seritage Growth Properties

Bruce Berkowitz Loading Up on Seritage Growth Properties Insider buys 110,500 shares of company
Insider Bruce Berkowitz (Trades, Portfolio) has purchased 110,500 shares of Seritage Growth Properties (NYSE:SRG) between March 9 and April 6, according to the Securities and Exchange Commission (SEC). Read more...
Bruce Berkowitz Comments on Seritage Guru stock highlight
Fortune Magazine notes that “there is still a lot of life in that American mainstay, the suburban mall,” but the tenant mix is shifting to accommodate new consumer preferences.5 Indeed, growing demand for “very un-mall-like grocery stores, spin-class fitness shops, and entertainment centers” presents attractive opportunities for landlords such as Seritage, who can convert existing retail square footage to “non-retail spaces that people want.”6 In 18 months, Seritage (NYSE:SRG) has re-leased 2.2 million square feet and commenced or completed 48 wholly owned redevelopment projects. Sears now represents 65% of signed lease revenue; down from 90%. Headlines overlook this renter diversification and ignore Seritage’s acceleration with large mixed-use redevelopments in Santa Monica (California), Aventura (Florida), Hicksville (New York), and Redmond (Washington). Read more...
Bruce Berkowitz Comments on Seritage Guru stock highlight
Having recently celebrated its first anniversary as an independent and publicly traded real estate investment trust (REIT), Seritage (NYSE:SRG) is making steady progress in repurposing, re-tenanting, and redeveloping many of the 266 properties that it purchased from Sears last year. In the company’s inaugural Annual Report, CEO Ben Schall explains why the company’s genesis within Sears will prove lucrative:

The origins of our real estate portfolio trace back 30 to 40 years ago, during a period of expansive retail real estate development and the proliferation of super regional malls. Sears played a central role as a leading anchor, property owner and, at times, co-developer of many of these new developments. Sears’ prominence during this era is reflected in two important outcomes evident in today’s real estate landscape. First, Sears received fee ownership over large parcels of land to construct its department stores, auto centers and related uses. Second, and equally important, Sears was able to select prime locations at the front entrance and at the primary intersections at many of these new developments. Read more...

Ratios

vs
industry
vs
history
PB Ratio 1.64
SRG's PB Ratio is ranked lower than
92% of the 685 Companies
in the Global REIT - Retail industry.

( Industry Median: 1.12 vs. SRG: 1.64 )
Ranked among companies with meaningful PB Ratio only.
SRG' s PB Ratio Range Over the Past 10 Years
Min: 1.57  Med: 3.03 Max: 3.62
Current: 1.64
1.57
3.62
PS Ratio 5.17
SRG's PS Ratio is ranked higher than
63% of the 655 Companies
in the Global REIT - Retail industry.

( Industry Median: 7.50 vs. SRG: 5.17 )
Ranked among companies with meaningful PS Ratio only.
SRG' s PS Ratio Range Over the Past 10 Years
Min: 5.03  Med: 6.07 Max: 10.04
Current: 5.17
5.03
10.04
Price-to-Free-Cash-Flow 57.05
SRG's Price-to-Free-Cash-Flow is ranked lower than
87% of the 319 Companies
in the Global REIT - Retail industry.

( Industry Median: 19.07 vs. SRG: 57.05 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
SRG' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 25.47  Med: 53.03 Max: 64.28
Current: 57.05
25.47
64.28
Price-to-Operating-Cash-Flow 12.35
SRG's Price-to-Operating-Cash-Flow is ranked lower than
61% of the 567 Companies
in the Global REIT - Retail industry.

( Industry Median: 14.68 vs. SRG: 12.35 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
SRG' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 12.07  Med: 15.08 Max: 41.4
Current: 12.35
12.07
41.4
EV-to-EBIT -70.81
SRG's EV-to-EBIT is ranked lower than
99.99% of the 892 Companies
in the Global REIT - Retail industry.

( Industry Median: 21.84 vs. SRG: -70.81 )
Ranked among companies with meaningful EV-to-EBIT only.
SRG' s EV-to-EBIT Range Over the Past 10 Years
Min: -900  Med: -335.5 Max: -68.1
Current: -70.81
-900
-68.1
EV-to-EBITDA 20.57
SRG's EV-to-EBITDA is ranked lower than
84% of the 904 Companies
in the Global REIT - Retail industry.

( Industry Median: 17.01 vs. SRG: 20.57 )
Ranked among companies with meaningful EV-to-EBITDA only.
SRG' s EV-to-EBITDA Range Over the Past 10 Years
Min: 16.8  Med: 20.3 Max: 28.8
Current: 20.57
16.8
28.8
Current Ratio 1.28
SRG's Current Ratio is ranked higher than
63% of the 651 Companies
in the Global REIT - Retail industry.

( Industry Median: 0.96 vs. SRG: 1.28 )
Ranked among companies with meaningful Current Ratio only.
SRG' s Current Ratio Range Over the Past 10 Years
Min: 1.28  Med: 1.46 Max: 1.78
Current: 1.28
1.28
1.78
Quick Ratio 1.28
SRG's Quick Ratio is ranked higher than
65% of the 651 Companies
in the Global REIT - Retail industry.

( Industry Median: 0.90 vs. SRG: 1.28 )
Ranked among companies with meaningful Quick Ratio only.
SRG' s Quick Ratio Range Over the Past 10 Years
Min: 1.28  Med: 1.46 Max: 1.78
Current: 1.28
1.28
1.78
Days Sales Outstanding 35.31
SRG's Days Sales Outstanding is ranked lower than
65% of the 495 Companies
in the Global REIT - Retail industry.

( Industry Median: 17.68 vs. SRG: 35.31 )
Ranked among companies with meaningful Days Sales Outstanding only.
SRG' s Days Sales Outstanding Range Over the Past 10 Years
Min: 34.01  Med: 34.01 Max: 35.31
Current: 35.31
34.01
35.31

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 2.47
SRG's Dividend Yield % is ranked lower than
99.99% of the 918 Companies
in the Global REIT - Retail industry.

( Industry Median: 5.21 vs. SRG: 2.47 )
Ranked among companies with meaningful Dividend Yield % only.
SRG' s Dividend Yield % Range Over the Past 10 Years
Min: 1.33  Med: 2.24 Max: 2.82
Current: 2.47
1.33
2.82
Forward Dividend Yield % 2.47
SRG's Forward Dividend Yield % is ranked lower than
99.99% of the 920 Companies
in the Global REIT - Retail industry.

( Industry Median: 5.45 vs. SRG: 2.47 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 2.46
SRG's 5-Year Yield-on-Cost % is ranked lower than
99.99% of the 920 Companies
in the Global REIT - Retail industry.

( Industry Median: 6.04 vs. SRG: 2.46 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
SRG' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.33  Med: 2.24 Max: 2.82
Current: 2.46
1.33
2.82

Valuation & Return

vs
industry
vs
history
Price-to-Tangible-Book 3.21
SRG's Price-to-Tangible-Book is ranked lower than
97% of the 677 Companies
in the Global REIT - Retail industry.

( Industry Median: 1.13 vs. SRG: 3.21 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
SRG' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 3.13  Med: 8.62 Max: 8.84
Current: 3.21
3.13
8.84
Price-to-Median-PS-Value 0.85
SRG's Price-to-Median-PS-Value is ranked higher than
84% of the 521 Companies
in the Global REIT - Retail industry.

( Industry Median: 1.08 vs. SRG: 0.85 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
SRG' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0  Med: 1.08 Max: 1.46
Current: 0.85
0
1.46
Earnings Yield (Greenblatt) % -1.42
SRG's Earnings Yield (Greenblatt) % is ranked lower than
93% of the 914 Companies
in the Global REIT - Retail industry.

( Industry Median: 4.46 vs. SRG: -1.42 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
SRG' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: -1.44  Med: 0 Max: 70.68
Current: -1.42
-1.44
70.68

More Statistics

Revenue (TTM) (Mil) $251.1
EPS (TTM) $ -1.75
Short Percentage of Float44.88%
52-Week Range $38.49 - 51.99
Shares Outstanding (Mil)56.03
» More Articles for NYSE:SRG

Headlines

Articles On GuruFocus.com
Insiders Love These Stocks, but Should You? May 22 2017 
Bruce Berkowitz Invests in Shopping Malls May 16 2017 
Mohnish Pabrai Sells Seritage, Buys AerCap May 12 2017 
A Buffett Bet That's Looking Very Attractive Again May 01 2017 
Bruce Berkowitz Loading Up on Seritage Growth Properties Apr 10 2017 
Eddie Lampert's 2016 Sears Chairman's Letter Mar 20 2017 
Bruce Berkowitz Comments on Seritage Jan 31 2017 
Bruce Berkowitz's Full-Year Fairholme Fund Letter Jan 31 2017 
Largest Insider Trades of the Week Jan 16 2017 
Sears Holdings' Spin-Off Seritage Can Develop Land Sep 29 2016 

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Why Sears' Eddie Lampert Needs A Reality Check May 22 2017
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Sears CEO: There's still time for a turnaround May 11 2017
Seritage: The Bull-Bear Battle Continues May 09 2017
Seritage Growth Properties reports 1Q results May 04 2017
Seritage Growth Properties Reports First Quarter 2017 Operating Results May 04 2017
Why Bankruptcy At Sears Makes Sense For Its CEO May 01 2017
[$$] Misstatements on Two Companies Apr 28 2017
Seritage Growth Properties Announces Second Quarter 2017 Dividend Apr 25 2017
Department Store Closures A Good Thing For Malls Apr 25 2017
[$$] Lampert's Seritage Strategy Could Lead to Long-Term Gains Apr 25 2017
Sears Holdings Just Offered More Proof That It's Doomed Apr 25 2017
Sears: Why Better Isn't Good Enough Apr 24 2017
Seritage Growth Properties Announces First Quarter 2017 Earnings Release Date Apr 20 2017
This REIT Is Positioned to Profit From Sears Holdings' Slow Demise Apr 18 2017
A REIT That Warren Buffett Likes: Seritage Growth Properties Apr 12 2017
5 Stocks Insiders Love Right Now Apr 12 2017
Sears store near Aventura Mall, Kmart in Hialeah marked for closure Apr 06 2017
If Sears Goes Bankrupt, Is Its Craftsman Deal Doomed? Apr 03 2017

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