Executive Summary

Q1 2025 showed modest revenue but a larger net loss: revenue was $4.60M while net loss to common widened to $(23.43)M, or $(0.42) per share, driven by higher G&A and losses from unconsolidated JVs despite a $6.94M gain on asset sales and lower interest expense .
Plan-of-sale execution continued: $29.9M asset sale at a 7.7% cap rate closed; one JV asset under contract for $14.0M gross ($11.2M at share); and a ~$70M PSA under negotiation with a long-dated closing .
Leasing progressed at key projects: Premier (incl. JVs) rose to 76.7% leased with ABR up to $21.0M and ABR/PSF to $71.04; Aventura reached 82.2% leased .
Post-quarter, SRG prepaid $40M on its Berkshire Hathaway term loan, taking outstanding to $200M and cutting annual interest by ~$2.8M; cumulative repayments since Dec-2021 total $1.4B, reducing annual interest by ~$99.4M .

What Went Well and What Went Wrong

What Went Well
- Executed asset sales and pipeline activity: $29.9M gross proceeds at a 7.7% cap rate; one JV asset under contract ($14.0M gross; $11.2M at share); ~$70M PSA under negotiation .
- Stronger leasing at Premier assets: 76.7% leased with total ABR $20.999M and ABR/PSF $71.04; Aventura advanced to 82.2% leased with only 17.8% available .
- Debt trajectory improving: subsequent $40M prepayment reduces term loan to $200M and annual interest by ~$2.8M, building on substantial prior repayments .
- Management tone: “continue to pursue our Plan of Sale…priority of repaying our remaining debt…monetize remaining assets” — Adam Metz, Interim CEO & President .
What Went Wrong
- Larger quarterly loss: Net loss to common widened to $(23.43)M vs $(20.21)M yoy, with G&A rising to $15.69M from $9.19M and equity in loss of unconsolidated entities at $(7.93)M vs +$0.38M yoy .
- Revenue pressure from asset dispositions: rental income fell to $4.46M from $5.73M yoy as the portfolio shrank per the plan of sale .
- Ongoing shareholder litigation and derivative actions tied to alleged disclosure/internal control issues, creating overhang and potential cost/distraction .
- Macro headwinds (rates, financing availability) may pressure asset pricing and timing of distributions per Market Update .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Total Revenue ($USD Millions)	$3.251	—	$4.599
Net Loss to Common ($USD Millions)	$(23.198)	$(12.576)	$(23.427)
Diluted EPS ($)	$(0.41)	$(0.22)	$(0.42)
NOI - cash basis at share ($USD Millions)	$(0.934)	$3.522	$2.588

Balance sheet and liquidity

Metric	Q3 2024	Q4 2024	Q1 2025
Cash & Cash Equivalents ($USD Millions)	$85.599	$85.206	$94.268
Restricted Cash ($USD Millions)	$12.613	$12.503	$12.864
Cash on Hand incl. Restricted ($USD Millions)	$98.2	$97.7	$107.1
Term Loan Facility Outstanding ($USD Millions)	$280.0	$240.0	$240.0

Capital actions after quarter end

Item	Post-Q1 Update
Term Loan Outstanding after 6/11/25 prepayment	$200.0M; annual interest reduced by ~$2.8M; $1.4B repaid since Dec-2021 (annual interest reduced by ~$99.4M)

Key drivers (P&L components)

Item ($USD Millions)	Q1 2025	Q1 2024
Rental Income	$4.457	$5.725
Gain on Sale of Real Estate (net)	$6.936	$1.139
G&A	$15.693	$9.192
Equity in (Loss) Income of Unconsolidated Entities	$(7.928)	$0.379
Interest Expense	$5.230	$7.011

Segment/KPIs

Multi-Tenant Retail | Metric | Q4 2024 | Q1 2025 | |---|---|---| | Total Retail Leases – GLA (000s SF) | 476.3 | 391.2 | | Total Retail Leases – % of Leasable GLA | 94.0% | 92.0% | | ABR ($USD Millions) | $9.558 | $7.138 | | ABR PSF ($) | $20.07 | $18.25 | | SNO Leases (000s SF) | 141.1 (tenants in negotiation shown) | 141.1 |
Premier Mixed-Use (incl. JVs at proportional share) | Metric | Q4 2024 | Q1 2025 | |---|---|---| | Total Diversified Leases – GLA (000s SF) | 288.1 | 295.6 | | % of Total Leasable GLA | 63.7% | 76.7% | | ABR ($USD Millions) | $16.770 | $20.999 | | ABR PSF ($) | $58.21 | $71.04 |
Aventura (FL) project | Metric | Q4 2024 | Q1 2025 | |---|---|---| | % Leased | 78.7% | 82.2% | | SF Available (000s) | 46 | 38 |

Transaction pipeline

Item	Amount	Notes
Closed asset sale	$29.9M	7.7% cap rate
Under contract (JV asset)	$14.0M gross ($11.2M at share)	Customary diligence
PSA under negotiation (premier asset)	~$70.0M	Long-dated closing contemplated

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal revenue/EPS guidance	FY/Qtr	None	None	Maintained (no guidance provided)
Preferred dividend (Series A)	Quarterly	$0.4375/sh	$0.4375/sh (paid Apr 15, 2025; declared for Jul 15, 2025)	Maintained
Term loan maturity (extension right)	Facility	Maturity July 31, 2025	Extension right to July 31, 2026 if exercised	Added extension right

Note: Company provided “Future Sales Projections” as asset-level ranges (not consolidated guidance); management cautions outcomes and timing may differ due to market conditions .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024 and Q4 2024)	Current Period (Q1 2025)	Trend
Plan of sale progress	Continued dispositions, assets under contract/negotiation; simplifying portfolio	One sale closed at 7.7% cap; one JV asset under contract; ~$70M PSA in negotiation	Improving execution
Debt reduction/refinancing	Focus on term loan maturity; exploring extension/refi options	Subsequent $40M prepayment; outstanding now $200M (post-Q1)	Improving leverage
Leasing momentum (Premier/Aventura)	Premier ~63.7%-74.7% leased; Aventura 78.7%	Premier 76.7% leased; Aventura 82.2%	Improving occupancy
Macro/market conditions	Financing costs and buyer universe pressuring prices/timing	Elevated rates, potential downward pricing pressure persist	Persistent headwind
Litigation/Shareholder actions	Class action disclosed	Additional derivative actions filed; company will defend	Increasing legal overhang
Leadership	—	CEO transition to Interim CEO Adam Metz (effective Apr 11, 2025)	Transition in progress

Management Commentary

“We will continue to pursue our Plan of Sale with the priority of repaying our remaining debt from the sale of assets…take the necessary steps to monetize the remaining assets in our portfolio to create value for our shareholders.” — Adam Metz, Interim CEO & President .
“We anticipate that a majority of our assets…will be in the market in 2025…we have made significant progress towards the completion of our Plan of Sale.” — Andrea Olshan, CEO & President (Q4 release) .
CEO transition rationale: portfolio reduced from ~160 assets to 15; leadership needs have changed; Board Chairman Adam Metz appointed Interim CEO & President .

Q&A Highlights

Not applicable — no earnings call transcript was furnished in the company’s filings or press releases for Q1 2025.

Estimates Context

Metric	Q1 2025 Actual	S&P Global Consensus	Surprise
Revenue ($USD Millions)	$4.599	N/A (not available)	N/A
Diluted EPS ($)	$(0.42)	N/A (not available)	N/A

No Wall Street consensus (EPS or revenue) was available in S&P Global for Q1 2025; coverage appears limited. Results should be evaluated vs. internal plan-of-sale milestones and balance sheet progress rather than traditional consensus modeling.

Key Takeaways for Investors

Execution on plan-of-sale remains the core driver: asset sales at market-clearing cap rates and PSA progress underpin value realization and debt paydown .
Balance sheet de-risking is tangible: post-quarter $40M prepayment lowers the term loan to $200M and trims annual interest by ~$2.8M, improving cash burn and optionality .
Leasing momentum at Premier (incl. Aventura) is a positive signal for monetization potential: higher % leased and ABR/PSF may support better pricing on future transactions .
Near-term earnings will remain volatile given portfolio shrinkage and JV P&L variability; focus on cash, debt trajectory, and realized sale proceeds versus GAAP EPS .
Macro headwinds (rates/financing availability) remain the principal risk to proceeds and timing; patience on transaction closings and distributions is required per company caution .
Legal overhang (class action/derivative suits) introduces headline risk and potential costs; monitor developments but note company’s intent to defend .
CEO transition to an interim leader aligned with late-stage disposition phase; watch for strategic updates and any changes to execution pace .

Seritage Growth Properties (SRG)·Q1 2025 Earnings Summary