Author Topic: SRG - Seritage Growth Properties  (Read 513155 times)

RadMan24

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Re: SRG - Seritage Growth Properties
« Reply #1040 on: November 13, 2020, 12:40:27 PM »
Look, all three of you have good points and they are well taken. Nevertheless, let's see where the company stands 12 months from now and if all the liquidity concerns, redevelopment risks, and CFO leaving have taken a turn for the worst. The company has plenty of capital on hand the last time I checked.

And to BG's point, there are a lot of debbie downer's on this topic and post, which does drive some hostility.

A recent SA article outlines some of the risks and counterweights quite well. But I think this idea has been beaten to a pulp whether its a good or bad one.

fwiw, the former SRG CFO went to Getty Realty.


Anglozurich

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Re: SRG - Seritage Growth Properties
« Reply #1041 on: November 24, 2020, 08:49:16 AM »
A few referenced Bruce Flatt's Bloomberg interview on the BAM thread. On malls, he was relatively positive and stated that valuations of higher quality assets have way more room to move up given rates have been pushed down. He also said if there are 8 malls in a secondary or tertiary location, the bottom 4 will die but the top 4 will survive and be better because of it. A good few of these old Sears locations are high quality. Many of SRG's assets are not in the bottom 50% purely on the basis of location, even before redevelopment.

The jury is still out. This one has to play out but on the scoreboard. Thus far, Pabrai is looking good. Thats a 3x since the depths of the pandemic.

thepupil

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Re: SRG - Seritage Growth Properties
« Reply #1042 on: November 24, 2020, 12:18:39 PM »
amen on the scoreboard, no idea why the equity is worth $1.1B/ EV is $2.7B, but credit where its due.

SRG is SuRG-ing !

Lollapalooza

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Re: SRG - Seritage Growth Properties
« Reply #1043 on: December 10, 2020, 01:39:35 PM »
Hmm.. and now is the CEO who leaves. Is that smoke on the horizon?

Foreign Tuffett

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Re: SRG - Seritage Growth Properties
« Reply #1044 on: December 10, 2020, 01:59:53 PM »
Hmm.. and now is the CEO who leaves. Is that smoke on the horizon?

Definitely a troubling development, particularly given that no successor is lined up

http://ir.seritage.com/news/news-details/2020/Seritage-Growth-Properties-Announces-CEO-Transition/default.aspx
Former Teldar Paper Vice President

BG2008

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Re: SRG - Seritage Growth Properties
« Reply #1045 on: December 10, 2020, 02:17:39 PM »
Hmm.. and now is the CEO who leaves. Is that smoke on the horizon?

Definitely a troubling development, particularly given that no successor is lined up

http://ir.seritage.com/news/news-details/2020/Seritage-Growth-Properties-Announces-CEO-Transition/default.aspx

I think Ben is very important to the thesis. 

RadMan24

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Re: SRG - Seritage Growth Properties
« Reply #1046 on: December 10, 2020, 02:40:59 PM »
Hmm.. and now is the CEO who leaves. Is that smoke on the horizon?

Definitely a troubling development, particularly given that no successor is lined up

http://ir.seritage.com/news/news-details/2020/Seritage-Growth-Properties-Announces-CEO-Transition/default.aspx

I think Ben is very important to the thesis.

CFO and CEO gone, CFO replaced internally, we'll just have to wait and see whose appointed as the CEO. Ben went to Avalon Bay. Probably not a bad move on his part, the incentives from SRG probably wore off.  https://www.businesswire.com/news/home/20201210006020/en/AvalonBay-Communities-Inc.-Appoints-Benjamin-Schall-President-and-Announces-CEO-Succession-Plan

Opinions can flout on how troubling it is. I put it mildly concerning, with everything on pause, it's not a deal breaker, nor a crux to the thesis. Ben had experience to do the job, but he wasn't a boom or bust piece of the puzzle. I'm willing to bet they find someone willing to take on this challenge, the incentives are there, and fresh perspectives in a post-covid world would not be bad.

scorpioncapital

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Re: SRG - Seritage Growth Properties
« Reply #1047 on: December 11, 2020, 02:12:52 AM »
why is this bad ? he has not exactly done a great job for shareholders. true the covid came in but they were pretty overleveraged even before. might a new CEO do a better job, be more aggressive in focusing?

Foreign Tuffett

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Re: SRG - Seritage Growth Properties
« Reply #1048 on: December 11, 2020, 03:52:59 AM »
why is this bad ? he has not exactly done a great job for shareholders. true the covid came in but they were pretty overleveraged even before. might a new CEO do a better job, be more aggressive in focusing?

Schall could only play the cards he was dealt. Attempting to redevelop a huge number of Sears boxes has been a Sisyphean task over the past few years.

SRG should tried to raise money by issuing shares back when it was trading at $45+. But Eddie Lampert probably hates issuing new shares just as much as he loves buybacks.




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Gregmal

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Re: SRG - Seritage Growth Properties
« Reply #1049 on: December 11, 2020, 05:06:26 AM »
Yes, they'll have to bring in a new CEO, which means several months searching, a new(sorry no refunds from the last guy) compensation package loaded with more freebie shares, and worst part for shareholders, another 2-3 years of honeymoon where the CEO can rightfully or not, make excuses and talk about the bigger picture/long term without consequences.