SRG - Seritage Growth Properties

[johnny]

Buying a box for $20 a square foot and immediately renting out a chunk at $18/ft to the city. Sounds like small town capitalism at its finest.

[RadMan24]

Buying a box for $20 a square foot and immediately renting out a chunk at $18/ft to the city. Sounds like small town capitalism at its finest.

There's a burlington empty box, Sears empty box, and JCP, on the verge of being empty.

I'd also take the $3 million and run.

[Foreign Tuffett]

Is anyone still involved here?

New Sears is down to 50 properties and $20.3 million in annual rent.

SRG continues to sell properties. Notably, they have sold properties that have been wholly or partially redeveloped like Hagerstown, Santa Cruz, and Vancouver (WA). I think this signals that management feels it needs to generate liquidity, even at the cost of maximizing long term value.

[TwoCitiesCapital]

Is anyone still involved here?

New Sears is down to 50 properties and $20.3 million in annual rent.

SRG continues to sell properties. Notably, they have sold properties that have been wholly or partially redeveloped like Hagerstown, Santa Cruz, and Vancouver (WA). I think this signals that management feels it needs to generate liquidity, even at the cost of maximizing long term value.

I am, but it's a very small position and I'm not optimistic about the near term.

 Has been an easy trading vehicle for me though - buy below $40 and sell above $45. Sell covered calls in between. Made a few rounds trips in the name so my profits have been secured while I wait.

[RadMan24]

Is anyone still involved here?

New Sears is down to 50 properties and $20.3 million in annual rent.

SRG continues to sell properties. Notably, they have sold properties that have been wholly or partially redeveloped like Hagerstown, Santa Cruz, and Vancouver (WA). I think this signals that management feels it needs to generate liquidity, even at the cost of maximizing long term value.

They have not sold Santa Cruz, entered into a partnership to co-develop property. Could they have developed the property without outside investment? Possibly, but then again, you have to manage the risk of Sears stores not bringing in any income.

I would, if you're just starting out, focus on the cash flow - either from rent, property sales, termination fees, minus capex and then look at property development pipeline to get a sense of future cash flows 3-5 years from now

[Foreign Tuffett]

Is anyone still involved here?

New Sears is down to 50 properties and $20.3 million in annual rent.

SRG continues to sell properties. Notably, they have sold properties that have been wholly or partially redeveloped like Hagerstown, Santa Cruz, and Vancouver (WA). I think this signals that management feels it needs to generate liquidity, even at the cost of maximizing long term value.

They have not sold Santa Cruz, entered into a partnership to co-develop property. Could they have developed the property without outside investment? Possibly, but then again, you have to manage the risk of Sears stores not bringing in any income.

I would, if you're just starting out, focus on the cash flow - either from rent, property sales, termination fees, minus capex and then look at property development pipeline to get a sense of future cash flows 3-5 years from now

Wrong

Santa Cruz - sold

Santa Monica - 50/50 JV

Santa Claus - the fat guy who shows up on Christmas

Santa Maria - one of Columbus' ships

Hope this helps.

[RadMan24]

fair enough

[Foreign Tuffett]

"Transform Holdco" aka "New Sears" is terminating leases for 29 more stores

https://www.sec.gov/ix?doc=/Archives/edgar/data/1628063/000156459019042009/srg-8k_20191104.htm

[TwoCitiesCapital]

Is anyone still involved here?

New Sears is down to 50 properties and $20.3 million in annual rent.

SRG continues to sell properties. Notably, they have sold properties that have been wholly or partially redeveloped like Hagerstown, Santa Cruz, and Vancouver (WA). I think this signals that management feels it needs to generate liquidity, even at the cost of maximizing long term value.

I am, but it's a very small position and I'm not optimistic about the near term.

 Has been an easy trading vehicle for me though - buy below $40 and sell above $45. Sell covered calls in between. Made a few rounds trips in the name so my profits have been secured while I wait.

Last round trip had me stopped out at $43 as my covered calls were ITM at expiration. Looks like we're getting back to the buy point to make another round trip by re-initiating the position.

One day this won't be a trading vehicle, but in the interim....