Seritage Growth Properties (NYSE: SRG) reported Q1 EPS of ($0.23), versus $0.26 reported last year.

Operating Highlights

During the quarter ended March 31, 2019:

• Signed new leases totaling 440,000 square feet (365,000 square feet at share) at an average base rent of $30.37 PSF ($30.06 PSF at share). Since the Company’s inception in July 2015, the Company’s share of new leasing activity has totaled nearly 8.3 million square feet at an average rent of $17.23 PSF, including new retail leases totaling 7.5 million square feet at an average rent of $18.24 PSF.
• Achieved an average releasing multiple of 4.1x for space currently or formerly occupied by Sears or Kmart, with new retail rents averaging $30.96 PSF compared to $7.51 PSF paid by Sears or Kmart. Since inception, releasing multiples have averaged 4.1x, with new retail rents at $18.35 PSF compared to $4.52 PSF paid by Sears or Kmart.
• Increased the Company’s share of annual base rent from diversified, non-Sears tenants to 83.3% of total annual base rent from 54.3% in the prior year period, including all signed leases and net of rent attributable to associated space to be recaptured. Diversified, non-Sears rental income has increased by over 260% since inception to $158.7 million, including all signed leases.
• Announced new redevelopment activity totaling approximately $65.0 million, including two new projects and the expansion of two previously announced projects. Total redevelopment program to date includes 99 projects completed or commenced representing approximately $1.6 billion of estimated capital investment.
• Formed a 50% joint venture partnership with the owner of the adjacent shopping center to redevelop the Company’s asset in Cockeysville, Maryland. The transaction valued the property at approximately $18.7 million and generated $9.3 million of gross cash proceeds. The venture plans to complete the retail redevelopment of the full-line store and auto center and may also pursue multi-family development on a portion of the 14-acre site.
• Sold seven properties totaling 639,000 feet for gross cash proceeds of $29.5 million. These properties were generally located in smaller markets and all seven properties were vacant at the time of sale.

“We are pleased with our start to the year with 440,000 square feet of total new leasing at a strong average rate of $30 per square foot and an average multiple of 4.1x for space previously occupied by Sears. Our leasing since inception now stands at 8.3 million square feet and an average re-leasing multiple of 4.1x. We continue to make significant progress on our redevelopment program, with two new projects and two expanded projects this quarter. Our total program currently consists of 99 projects completed or commenced with a total of approximately $1.6 billion of capital investment,” said Benjamin Schall, President and Chief Executive Officer. “With a strong balance sheet and over $875 million of liquidity, we will continue to utilize our specialized platform and high-quality portfolio to create first-class retail centers and larger mixed-use projects that generate long-term value for our shareholders.”

For earnings history and earnings-related data on Seritage Growth Properties (SRG) click here.