Author Topic: SRG - Seritage Growth Properties  (Read 232531 times)

Spekulatius

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Re: SRG - Seritage Growth Properties
« Reply #590 on: May 04, 2018, 05:28:10 PM »
Please forgive my ignorance, as I suspect this is a stupid question with a simple/obvious answer, but:

How do these numbers jive?

Quote
Financial Results
For the quarter ended March 31, 2018:
 Net income attributable to common shareholders of $9.1 million, or $0.26 per diluted share
 Total Net Operating Income (“Total NOI”) of $36.9 million
 Funds from Operations (“FFO”) of $11.0 million, or $0.20 per diluted share
 Company FFO of $12.4 million, or $0.22 per diluted share

What I see is that $9.1M net income = $0.26 per diluted share but total FFO is $11.0M or $0.20 per diluted share.

If the diluted per share figure remains static, how does 9M translate to a higher per share value than $11M?

:-\


The earnings were boosted by roughly $41M profit from property dispositions, but proceeds from property disposition don’t contribute to NOI (which is property operating profit).
« Last Edit: May 04, 2018, 06:00:05 PM by Spekulatius »
To be a realist, one has to believe in miracles.


treasurehunt

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Re: SRG - Seritage Growth Properties
« Reply #591 on: May 04, 2018, 05:55:09 PM »
Please forgive my ignorance, as I suspect this is a stupid question with a simple/obvious answer, but:

How do these numbers jive?

Quote
Financial Results
For the quarter ended March 31, 2018:
 Net income attributable to common shareholders of $9.1 million, or $0.26 per diluted share
 Total Net Operating Income (“Total NOI”) of $36.9 million
 Funds from Operations (“FFO”) of $11.0 million, or $0.20 per diluted share
 Company FFO of $12.4 million, or $0.22 per diluted share

What I see is that $9.1M net income = $0.26 per diluted share but total FFO is $11.0M or $0.20 per diluted share.

If the diluted per share figure remains static, how does 9M translate to a higher per share value than $11M?

:-\
The financial supplement has the information needed to figure out the answer. The denominator is different for the two calculations - 35,501 for EPS and 55,719 for FFO per share. For FFO the 20,218 outstanding units are added to the number of A and C shares outstanding. I think 55,719 is the share count that actually matters when analysing the company.

LongTermView

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Re: SRG - Seritage Growth Properties
« Reply #592 on: May 21, 2018, 02:09:46 PM »
http://ir.seritage.com/file/Index?KeyFile=393586630
Quote
SERITAGE GROWTH PROPERTIES AND FIRST WASHINGTON REALTY ANNOUNCE PARTNERSHIP TO OWN THE CORBIN COLLECTION IN WEST HARTFORD, CONNECTICUT
Company Release - 5/21/2018 4:59 PM ET
NEW YORK--(BUSINESS WIRE)-- Seritage Growth Properties (NYSE:SRG) and First Washington Realty, a national real estate investment and management company, today announced a joint venture partnership to own The Corbin Collection, the 163,700 square foot redevelopment of the former Sears store and auto center in West Hartford, Connecticut.

The transaction values The Corbin Collection at approximately $52 million, including costs remaining to complete the project. Seritage sold a 50% interest in the project to an affiliate of First Washington Realty, and received proceeds of approximately $23 million at closing, which it utilized primarily to repay existing mortgage debt associated with the property.

LongTermView

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Re: SRG - Seritage Growth Properties
« Reply #593 on: May 22, 2018, 07:25:30 AM »
Pretty big announcements the last few days. It's kind of surprising there isn't more talk about them here.

http://ir.seritage.com/file/Index?KeyFile=393597384
Quote
SERITAGE GROWTH PROPERTIES AND INVESCO REAL ESTATE ANNOUNCE PARTNERSHIP TO OWN THE COLLECTION AT UTC IN LA JOLLA, CALIFORNIA
Company Release - 5/22/2018 9:12 AM ET
Joint Venture to Redevelop Former Sears Site into Premium Shopping, Dining and Entertainment Destination

NEW YORK--(BUSINESS WIRE)-- Seritage Growth Properties (NYSE: SRG) and Invesco Real Estate, a global real estate investment manager, today announced a joint venture partnership to own The Collection at UTC, the adaptive re-use of the existing Sears store and auto center at Westfield UTC in La Jolla, California.

The transaction values The Collection at UTC at approximately $165 million, including costs remaining to complete the project. Seritage sold a 50% interest in the project to a separate account managed by Invesco and received proceeds of approximately $44 million at closing, which it utilized primarily to repay existing mortgage debt associated with the property. The partnership will invest, or pursue construction financing to fund, the additional capital required to convert the Sears store and auto center into 226,200 square feet of premium space leased to a collection of growing retailers and leading dining, entertainment and fitness concepts.

cubsfan

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Re: SRG - Seritage Growth Properties
« Reply #594 on: May 22, 2018, 12:59:46 PM »
I don't think anyone wants to hear about anything to do with Sears.

Like Brookfield, I think Seritage is going to be a good one. These announcements are under the radar,
No conference calls, non-promotional management.

Add in a short position of 50% of the float - and you get a pretty combustible mix if good news arises.
If the hedge funds are so short Seritage because of the "Sears is dying story" they'll have a tough
time covering as Sears continues to come up with creative ways to finance the company.

scorpioncapital

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Re: SRG - Seritage Growth Properties
« Reply #595 on: May 22, 2018, 01:38:01 PM »
One thing I admire about buffett is the ability to think a few moves ahead. It's like chess. Now times are good for some companies, over time, the race will be won by making the right moves. Can mistakes be made? Sure. IBM for example. But in investing there are BIG mistakes and small mistakes. You can switch horses if you feel a better one comes around. If you cover your bases, the loss on the underperformer won't be too bad. In other words there is time to decide your optimal portfolio.

Broeb22

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Re: SRG - Seritage Growth Properties
« Reply #596 on: May 29, 2018, 08:04:37 AM »
https://www.businesswire.com/news/home/20180529005568/en/Seritage-Growth-Properties-Announces-Appointment-Sharon-Osberg

Buffett's bridge buddy joining SRG board a coincidence?

No position here, but I would find it surprising that a person Buffett plays bridge with 3-4x per week would not be some kind of connection to the board for Buffett...

LongTermView

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Re: SRG - Seritage Growth Properties
« Reply #597 on: May 29, 2018, 10:15:30 AM »
Good, maybe Warren and Sharon can get them to lower the dividend or cut it completely for a few years.

cubsfan

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Re: SRG - Seritage Growth Properties
« Reply #598 on: May 29, 2018, 10:30:55 AM »
Not likely to see a dividend cut since it will endanger the REIT status.

LongTermView

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Re: SRG - Seritage Growth Properties
« Reply #599 on: May 29, 2018, 10:39:49 AM »
Not likely to see a dividend cut since it will endanger the REIT status.

I was under the impression they have some room since their earnings are near zero.