Toggle SGML Header (+)


Section 1: 10-Q (10-Q)

srg-10q_20190630.htm
false 2019 Q2 0001628063 --12-31 Large Accelerated Filer false 383976287 2025-07-31 P5Y P4Y 383976287 us-gaap:ManagementServiceMember us-gaap:ManagementServiceMember us-gaap:ManagementServiceMember us-gaap:ManagementServiceMember P25Y P40Y P5Y P15Y 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 April 2019 / June 2017 April 2019 / September 2018 December 2018 / December 2016 September 2018 / May 2016 September 2018 / December 2016 March 2018 / December 2017 March 2018 / December 2017 March 2018 / September 2017 December 2017 / September 2017 September 2017 / July 2016 April 2017 / July 2016 April 2017 / December 2016 April 2017 / October 2016 P11Y14D 2019-02-25 2018-10-23 2018-07-24 2018-04-24 2018-02-20 2019-03-29 2018-12-31 2018-09-28 2018-06-29 2018-03-30 2019-04-11 2018-10-11 2018-07-12 2018-04-12 2019-07-23 2019-04-30 2019-02-25 2018-10-23 2018-07-24 2018-04-24 2018-02-20 2018-02-20 2019-09-30 2019-06-28 2019-03-29 2018-12-31 2018-09-28 2018-06-29 2018-03-30 2018-03-30 2019-07-15 2019-04-15 2018-10-15 2018-07-16 2018-04-16 2018-04-16 0001628063 2019-01-01 2019-06-30 xbrli:shares 0001628063 us-gaap:CommonClassAMember 2019-07-30 0001628063 us-gaap:CommonClassBMember 2019-07-30 0001628063 us-gaap:CommonClassCMember 2019-07-30 iso4217:USD 0001628063 2019-06-30 0001628063 2018-12-31 0001628063 us-gaap:CommonClassAMember 2019-06-30 0001628063 us-gaap:CommonClassAMember 2018-12-31 0001628063 us-gaap:CommonClassBMember 2019-06-30 0001628063 us-gaap:CommonClassBMember 2018-12-31 0001628063 us-gaap:SeriesAPreferredStockMember 2019-06-30 0001628063 us-gaap:SeriesAPreferredStockMember 2018-12-31 iso4217:USD xbrli:shares 0001628063 2019-04-01 2019-06-30 0001628063 2018-04-01 2018-06-30 0001628063 2018-01-01 2018-06-30 0001628063 us-gaap:CommonClassAMember 2017-12-31 0001628063 us-gaap:CommonClassBMember 2017-12-31 0001628063 us-gaap:CommonClassCMember 2017-12-31 0001628063 us-gaap:SeriesAPreferredStockMember 2017-12-31 0001628063 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001628063 us-gaap:RetainedEarningsMember 2017-12-31 0001628063 us-gaap:NoncontrollingInterestMember 2017-12-31 0001628063 2017-12-31 0001628063 us-gaap:RetainedEarningsMember 2018-01-01 2018-06-30 0001628063 us-gaap:NoncontrollingInterestMember 2018-01-01 2018-06-30 0001628063 us-gaap:CommonClassAMember 2018-01-01 2018-06-30 0001628063 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-06-30 0001628063 us-gaap:CommonClassCMember 2018-01-01 2018-06-30 0001628063 us-gaap:CommonClassBMember 2018-01-01 2018-06-30 0001628063 us-gaap:CommonClassAMember 2018-06-30 0001628063 us-gaap:CommonClassBMember 2018-06-30 0001628063 us-gaap:CommonClassCMember 2018-06-30 0001628063 us-gaap:SeriesAPreferredStockMember 2018-06-30 0001628063 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001628063 us-gaap:RetainedEarningsMember 2018-06-30 0001628063 us-gaap:NoncontrollingInterestMember 2018-06-30 0001628063 2018-06-30 0001628063 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001628063 us-gaap:RetainedEarningsMember 2018-12-31 0001628063 us-gaap:NoncontrollingInterestMember 2018-12-31 0001628063 us-gaap:RetainedEarningsMember 2019-01-01 2019-06-30 0001628063 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-06-30 0001628063 us-gaap:CommonClassAMember 2019-01-01 2019-06-30 0001628063 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-06-30 0001628063 us-gaap:CommonClassBMember 2019-01-01 2019-06-30 0001628063 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001628063 us-gaap:RetainedEarningsMember 2019-06-30 0001628063 us-gaap:NoncontrollingInterestMember 2019-06-30 0001628063 us-gaap:CommonClassAMember 2018-03-31 0001628063 us-gaap:CommonClassBMember 2018-03-31 0001628063 us-gaap:CommonClassCMember 2018-03-31 0001628063 us-gaap:SeriesAPreferredStockMember 2018-03-31 0001628063 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001628063 us-gaap:RetainedEarningsMember 2018-03-31 0001628063 us-gaap:NoncontrollingInterestMember 2018-03-31 0001628063 2018-03-31 0001628063 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001628063 us-gaap:NoncontrollingInterestMember 2018-04-01 2018-06-30 0001628063 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001628063 us-gaap:CommonClassAMember 2018-04-01 2018-06-30 0001628063 us-gaap:CommonClassCMember 2018-04-01 2018-06-30 0001628063 us-gaap:CommonClassBMember 2018-04-01 2018-06-30 0001628063 us-gaap:CommonClassAMember 2019-03-31 0001628063 us-gaap:CommonClassBMember 2019-03-31 0001628063 us-gaap:SeriesAPreferredStockMember 2019-03-31 0001628063 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001628063 us-gaap:RetainedEarningsMember 2019-03-31 0001628063 us-gaap:NoncontrollingInterestMember 2019-03-31 0001628063 2019-03-31 0001628063 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001628063 us-gaap:NoncontrollingInterestMember 2019-04-01 2019-06-30 0001628063 us-gaap:CommonClassAMember 2019-04-01 2019-06-30 0001628063 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001628063 us-gaap:CommonClassBMember 2019-04-01 2019-06-30 0001628063 us-gaap:AboveMarketLeasesMember 2019-01-01 2019-06-30 0001628063 us-gaap:LeasesAcquiredInPlaceMember 2019-01-01 2019-06-30 0001628063 srg:CommonClassAAndCommonClassCMember 2019-01-01 2019-06-30 0001628063 srg:SearsHoldingsCorporationMember 2015-06-10 2015-06-11 srg:Property xbrli:pure 0001628063 srg:SearsHoldingsCorporationMember 2015-06-11 srg:JointVenture srg:RetailFacility 0001628063 srg:SearsHoldingsCorporationMember us-gaap:CorporateJointVentureMember 2015-06-11 0001628063 srg:SearsHoldingsCorporationMember us-gaap:CorporateJointVentureMember srg:JointVenturePropertiesMember 2015-06-11 0001628063 srg:SearsHoldingsCorporationMember srg:OriginalMasterLeaseMember 2015-06-10 2015-06-11 0001628063 srg:SearsHoldingsCorporationMember srg:OriginalJointVentureMasterLeasesMember srg:JointVenturePropertiesMember 2015-06-10 2015-06-11 0001628063 srg:HoldcoMember 2019-02-11 2019-02-11 0001628063 srg:HoldcoMasterLeaseMember 2019-02-28 utr:sqft 0001628063 us-gaap:WhollyOwnedPropertiesMember 2019-01-01 2019-06-30 0001628063 us-gaap:WhollyOwnedPropertiesMember 2019-06-30 srg:State 0001628063 srg:JointVenturePropertiesMember 2019-01-01 2019-06-30 0001628063 srg:JointVenturePropertiesMember 2019-06-30 0001628063 us-gaap:WhollyOwnedPropertiesMember srg:HoldcoMasterLeaseMember 2019-01-01 2019-06-30 0001628063 srg:JointVenturePropertiesMember srg:HoldcoJointVentureMasterLeasesMember 2019-01-01 2019-06-30 0001628063 srg:OperatingPartnershipMember 2019-06-30 srg:Segment 0001628063 us-gaap:BuildingMember srt:MinimumMember 2019-01-01 2019-06-30 0001628063 us-gaap:BuildingMember srt:MaximumMember 2019-01-01 2019-06-30 0001628063 us-gaap:LandImprovementsMember srt:MinimumMember 2019-01-01 2019-06-30 0001628063 us-gaap:LandImprovementsMember srt:MaximumMember 2019-01-01 2019-06-30 0001628063 srg:RealEstateAssetsFourPropertiesMember 2019-04-01 2019-06-30 0001628063 srg:RealEstateAssetsElevenPropertiesMember 2019-01-01 2019-06-30 srg:Parcel 0001628063 srg:RealEstateAssetsLandParcelMember 2019-01-01 2019-06-30 0001628063 us-gaap:ManagementServiceMember 2019-01-01 2019-06-30 0001628063 srg:SearsHoldingsCorporationMember 2019-06-30 0001628063 us-gaap:InterestRateCapMember 2019-06-30 0001628063 us-gaap:InterestRateCapMember 2019-01-01 2019-06-30 0001628063 us-gaap:InterestRateCapMember 2018-12-31 0001628063 us-gaap:InterestRateCapMember 2019-04-01 2019-06-30 0001628063 us-gaap:InterestRateCapMember 2018-04-01 2018-06-30 0001628063 us-gaap:InterestRateCapMember 2018-01-01 2018-06-30 0001628063 us-gaap:CommonClassCMember 2018-08-29 0001628063 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0001628063 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 2019-06-30 0001628063 us-gaap:AccountingStandardsUpdate201602Member 2019-06-30 0001628063 us-gaap:LeasesAcquiredInPlaceMember 2019-06-30 0001628063 us-gaap:AboveMarketLeasesMember 2019-06-30 0001628063 us-gaap:LeasesAcquiredInPlaceMember 2018-12-31 0001628063 srg:BelowMarketGroundLeasesMember 2018-12-31 0001628063 us-gaap:AboveMarketLeasesMember 2018-12-31 0001628063 us-gaap:LeasesAcquiredInPlaceMember 2019-04-01 2019-06-30 0001628063 us-gaap:LeasesAcquiredInPlaceMember 2018-04-01 2018-06-30 0001628063 us-gaap:LeasesAcquiredInPlaceMember 2018-01-01 2018-06-30 0001628063 srg:BrookfieldPropertiesRetailOneMember 2019-06-30 0001628063 srg:BrookfieldPropertiesRetailTwoMember 2019-06-30 0001628063 srg:MacerichMember 2019-06-30 0001628063 srg:SimonPropertyGroupIncMember 2019-06-30 0001628063 srg:InvescoRealEstateMember 2019-06-30 0001628063 srg:InvescoRealEstateTwoMember 2019-06-30 0001628063 srg:FirstWashingtonRealtyMember 2019-06-30 0001628063 srg:GreenbergGibbonsMember 2019-06-30 0001628063 srg:BrookfieldPropertiesRetailOneMember 2019-01-01 2019-06-30 0001628063 srg:BrookfieldPropertiesRetailTwoMember 2019-01-01 2019-06-30 0001628063 srg:MacerichMember 2019-01-01 2019-06-30 0001628063 srg:SimonPropertyGroupIncMember 2019-01-01 2019-06-30 0001628063 srg:InvescoRealEstateMember 2019-01-01 2019-06-30 0001628063 srg:InvescoRealEstateTwoMember 2019-01-01 2019-06-30 0001628063 srg:FirstWashingtonRealtyMember 2019-01-01 2019-06-30 0001628063 srg:GreenbergGibbonsMember 2019-01-01 2019-06-30 0001628063 srg:InvescoRealEstateMember srg:SantaMonicaCAMember srg:MarkThreeHundredTwoJointVentureLimitedLiabilityCompanyMember 2018-03-20 0001628063 srg:InvescoRealEstateMember srg:SantaMonicaCAMember srg:MarkThreeHundredTwoJointVentureLimitedLiabilityCompanyMember 2018-03-20 2018-03-20 0001628063 srg:InvescoRealEstateMember srg:SantaMonicaCAMember us-gaap:AccountingStandardsUpdate201705Member srg:MarkThreeHundredTwoJointVentureLimitedLiabilityCompanyMember 2018-03-20 2018-03-20 0001628063 srg:InvescoRealEstateMember srg:SantaMonicaCAMember srt:MaximumMember srg:MarkThreeHundredTwoJointVentureLimitedLiabilityCompanyMember 2018-03-20 2018-03-20 0001628063 srg:InvescoRealEstateMember srg:SantaMonicaCAMember srt:MaximumMember srg:MarkThreeHundredTwoJointVentureLimitedLiabilityCompanyMember 2018-03-20 0001628063 srg:InvescoRealEstateMember srg:SantaMonicaCAMember srt:MinimumMember srg:MarkThreeHundredTwoJointVentureLimitedLiabilityCompanyMember 2018-03-20 0001628063 srg:InvescoRealEstateMember srg:SantaMonicaCAMember srt:MinimumMember srg:MarkThreeHundredTwoJointVentureLimitedLiabilityCompanyMember 2018-03-20 2018-03-20 0001628063 srg:InvescoRealEstateMember srg:WestHartfordJVMember srg:WestHartfordCTMember 2018-05-18 0001628063 srg:InvescoRealEstateMember srg:WestHartfordJVMember srg:WestHartfordCTMember 2018-05-17 2018-05-18 0001628063 srg:InvescoRealEstateMember srg:WestHartfordJVMember srg:WestHartfordCTMember us-gaap:AccountingStandardsUpdate201705Member 2018-05-18 0001628063 srg:InvescoRealEstateMember srg:WestHartfordJVMember srg:WestHartfordCTMember srt:MaximumMember 2018-05-17 2018-05-18 0001628063 srg:InvescoRealEstateMember srg:WestHartfordJVMember srg:WestHartfordCTMember srt:MaximumMember 2018-05-18 0001628063 srg:InvescoRealEstateMember srg:WestHartfordJVMember srg:WestHartfordCTMember srt:MinimumMember 2018-05-18 0001628063 srg:InvescoRealEstateMember srg:WestHartfordJVMember srg:WestHartfordCTMember srt:MinimumMember 2018-05-17 2018-05-18 0001628063 srg:CockeysvilleMDMember srg:InvescoRealEstateMember srg:CockeysvilleJVMember 2019-03-29 0001628063 srg:CockeysvilleMDMember srg:InvescoRealEstateMember srg:CockeysvilleJVMember 2019-03-28 2019-03-29 0001628063 srg:CockeysvilleMDMember us-gaap:AccountingStandardsUpdate201705Member srg:InvescoRealEstateMember srg:CockeysvilleJVMember 2019-03-29 0001628063 srg:WestHartfordJVMember 2019-04-01 2019-06-30 0001628063 srg:WestHartfordJVMember 2018-04-01 2018-06-30 0001628063 srg:WestHartfordJVMember 2019-01-01 2019-06-30 0001628063 srg:WestHartfordJVMember 2018-01-01 2018-06-30 0001628063 srg:HoldcoMasterLeaseMember 2019-02-27 2019-02-28 srg:Option 0001628063 srg:HoldcoMasterLeaseMember 2019-02-28 srg:Lease 0001628063 srg:HoldcoMasterLeaseMember srt:MaximumMember 2019-02-27 2019-02-28 0001628063 srg:HoldcoMasterLeaseMember 2019-01-01 2019-06-30 0001628063 srg:OriginalAndHoldcoMasterLeaseMember 2019-04-01 2019-06-30 0001628063 srg:OriginalAndHoldcoMasterLeaseMember 2018-04-01 2018-06-30 0001628063 srg:OriginalAndHoldcoMasterLeaseMember 2019-01-01 2019-06-30 0001628063 srg:OriginalAndHoldcoMasterLeaseMember 2018-01-01 2018-06-30 0001628063 srg:HoldcoMasterLeaseMember 2019-06-30 0001628063 srg:OriginalMasterLeaseMember 2019-06-30 0001628063 srg:OriginalMasterLeaseMember 2019-01-01 2019-06-30 0001628063 srg:NorthRiversideILMember 2019-01-01 2019-06-30 0001628063 srg:HialeahFLWestlandMember 2019-01-01 2019-06-30 0001628063 srg:SaugusMAMember 2019-01-01 2019-06-30 0001628063 srg:FresnoCAMember 2019-01-01 2019-06-30 0001628063 srg:OklahomaCityOKMember 2019-01-01 2019-06-30 0001628063 srg:FlorissantMOMember 2019-01-01 2019-06-30 0001628063 srg:SalemNHMember 2019-01-01 2019-06-30 0001628063 srg:LasVegasNVMember 2019-01-01 2019-06-30 0001628063 srg:YorktownHeightsNYMember 2019-01-01 2019-06-30 0001628063 srg:FtWayneINPropertyOneMember 2019-01-01 2019-06-30 0001628063 srg:NorthLittleRockARMember 2019-01-01 2019-06-30 0001628063 srg:CantonOHMember 2019-01-01 2019-06-30 0001628063 srg:DaytonOHMember 2019-01-01 2019-06-30 0001628063 srg:RosevilleCAMember 2019-01-01 2019-06-30 0001628063 srg:TemeculaCAMember 2019-01-01 2019-06-30 0001628063 srg:CockeysvilleMDMember 2019-01-01 2019-06-30 0001628063 srg:OleanNYMember 2019-01-01 2019-06-30 0001628063 srg:GuaynaboPRMember 2019-01-01 2019-06-30 0001628063 srg:RosevilleMIMember 2019-01-01 2019-06-30 0001628063 srg:TroyMIMember 2019-01-01 2019-06-30 0001628063 srg:RehobothBeachDEMember 2019-01-01 2019-06-30 0001628063 srg:WarwickRIMember 2019-01-01 2019-06-30 0001628063 srg:MadisonWIMember 2019-01-01 2019-06-30 0001628063 srg:NorthHollywoodCAMember 2019-01-01 2019-06-30 0001628063 srg:WestJordanUTMember 2019-01-01 2019-06-30 0001628063 srg:AlbanyNYMember 2019-01-01 2019-06-30 0001628063 srg:BowieMDMember 2019-01-01 2019-06-30 0001628063 srg:HagerstownMDMember 2019-01-01 2019-06-30 0001628063 srg:WestCovinaWestCovinaCaMember 2019-01-01 2019-06-30 0001628063 srg:SanAntonioTXMember 2019-01-01 2019-06-30 0001628063 srg:CapeGirardeauMOMember 2019-06-30 0001628063 srg:DoralFLMember 2019-06-30 0001628063 srg:FairfaxVAMember 2019-06-30 0001628063 srg:GilletteWYMember 2019-06-30 0001628063 srg:HappyValleyORMember 2019-06-30 0001628063 srg:HoustonTXMemorialCityMember 2019-06-30 0001628063 srg:SantaCruzCAMember 2019-06-30 0001628063 srg:VancouverWAMember 2019-06-30 0001628063 srg:AshevilleNCMember 2019-06-30 0001628063 srg:ChicagoILSixCornersMember 2019-06-30 0001628063 srg:ClearwaterFLMember 2019-06-30 0001628063 srg:ElCajonCAMember 2019-06-30 0001628063 srg:FairfieldCAMember 2019-06-30 0001628063 srg:PlantationFLMember 2019-06-30 0001628063 srg:RedmondWAMember 2019-06-30 0001628063 srg:RenoNVMember 2019-06-30 0001628063 srg:TucsonAZMember 2019-06-30 0001628063 srg:AnchorageAKMember 2019-06-30 0001628063 srg:BocaRatonFLMember 2019-06-30 0001628063 srg:WestminsterCAMember 2019-06-30 0001628063 srg:HicksvilleNYMember 2019-06-30 0001628063 srg:OrlandParkILMember 2019-06-30 0001628063 srg:AustinTXTechRidgeMember 2019-06-30 0001628063 srg:SaintClairShoresMIMember 2019-06-30 0001628063 srg:WatchungNJMember 2019-06-30 0001628063 srg:AndersonSCMember 2019-06-30 0001628063 srg:AventuraFLMember 2019-06-30 0001628063 srg:CarsonCAMember 2019-06-30 0001628063 srg:CharlestonSCMember 2019-06-30 0001628063 srg:HialeahFLFreestandingMember 2019-06-30 0001628063 srg:SanDiegoCAMember 2019-06-30 0001628063 srg:ValleyViewTXMember 2019-06-30 0001628063 srg:NorthMiamiFLMember 2019-06-30 0001628063 srg:SantaMonicaCAMember 2019-06-30 0001628063 srg:StPetersburgFLTyroneSquareMember 2019-06-30 0001628063 srg:WestHartfordCTMember 2019-06-30 0001628063 srg:OrlandoFLMember 2019-06-30 0001628063 srg:BraintreeMAMember 2019-06-30 0001628063 srg:HonoluluHIMember 2019-06-30 0001628063 srg:MemphisTNMember 2019-06-30 0001628063 srg:CapeGirardeauMOMember 2019-01-01 2019-06-30 0001628063 srg:DoralFLMember 2019-01-01 2019-06-30 0001628063 srg:GilletteWYMember 2019-01-01 2019-06-30 0001628063 srg:HappyValleyORMember 2019-01-01 2019-06-30 0001628063 srg:HoustonTXMemorialCityMember 2019-01-01 2019-06-30 0001628063 srg:VancouverWAMember 2019-01-01 2019-06-30 0001628063 srg:AshevilleNCMember 2019-01-01 2019-06-30 0001628063 srg:ChicagoILSixCornersMember 2019-01-01 2019-06-30 0001628063 srg:ClearwaterFLMember 2019-01-01 2019-06-30 0001628063 srg:ElCajonCAMember 2019-01-01 2019-06-30 0001628063 srg:RenoNVMember 2019-01-01 2019-06-30 0001628063 srg:TucsonAZMember 2019-01-01 2019-06-30 0001628063 srg:AnchorageAKMember 2019-01-01 2019-06-30 0001628063 srg:BocaRatonFLMember 2019-01-01 2019-06-30 0001628063 srg:WestminsterCAMember 2019-01-01 2019-06-30 0001628063 srg:HicksvilleNYMember 2019-01-01 2019-06-30 0001628063 srg:OrlandParkILMember 2019-01-01 2019-06-30 0001628063 srg:SaintClairShoresMIMember 2019-01-01 2019-06-30 0001628063 srg:WatchungNJMember 2019-01-01 2019-06-30 0001628063 srg:AventuraFLMember 2019-01-01 2019-06-30 0001628063 srg:HialeahFLFreestandingMember 2019-01-01 2019-06-30 0001628063 srg:SanDiegoCAMember 2019-01-01 2019-06-30 0001628063 srg:ValleyViewTXMember 2019-01-01 2019-06-30 0001628063 srg:NorthMiamiFLMember 2019-01-01 2019-06-30 0001628063 srg:SantaMonicaCAMember 2019-01-01 2019-06-30 0001628063 srg:StPetersburgFLTyroneSquareMember 2019-01-01 2019-06-30 0001628063 srg:WestHartfordCTMember 2019-01-01 2019-06-30 0001628063 srg:OrlandoFLMember 2019-01-01 2019-06-30 0001628063 srg:BraintreeMAMember 2019-01-01 2019-06-30 0001628063 srg:HonoluluHIMember 2019-01-01 2019-06-30 0001628063 srg:MemphisTNMember 2019-01-01 2019-06-30 0001628063 srg:FairfaxVAMember 2019-01-01 2019-06-30 0001628063 srg:SantaCruzCAMember 2019-01-01 2019-06-30 0001628063 srg:FairfieldCAMember 2019-01-01 2019-06-30 0001628063 srg:PlantationFLMember 2019-01-01 2019-06-30 0001628063 srg:RedmondWAMember 2019-01-01 2019-06-30 0001628063 srg:AustinTXTechRidgeMember 2019-01-01 2019-06-30 0001628063 srg:AndersonSCMember 2019-01-01 2019-06-30 0001628063 srg:CarsonCAMember 2019-01-01 2019-06-30 0001628063 srg:CharlestonSCMember 2019-01-01 2019-06-30 0001628063 srg:SanDiegoCAMember 2018-05-31 0001628063 srg:CockeysvilleMDMember 2019-06-30 0001628063 srg:SantaMonicaCAMember 2018-03-31 0001628063 srg:WestHartfordCTMember 2018-05-31 0001628063 srg:WayneNJMember 2017-07-31 0001628063 srg:MasterLeaseMember srg:SearsHoldingsCorporationMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:AntiochCAMember 2019-03-12 0001628063 srg:ColumbusMSMember 2019-03-12 0001628063 srg:DaytonOHMember 2019-03-12 0001628063 srg:FlagstaffAZMember 2019-03-12 0001628063 srg:FtWayneINMember 2019-03-12 0001628063 srg:JacksonMIMember 2019-03-12 0001628063 srg:ManchesterNHMember 2019-03-12 0001628063 srg:SalemNHMember 2019-03-12 0001628063 srg:SavannahGAMember 2019-03-12 0001628063 srg:ScottDepotWVMember 2019-03-12 0001628063 srg:StegerILMember 2019-03-12 0001628063 srg:VictorNYMember 2019-03-12 0001628063 srg:WestJordanUTMember 2019-03-12 0001628063 srg:ChesapeakeVAMember 2019-03-12 0001628063 srg:ClayNYMember 2019-03-12 0001628063 srg:HavreMTMember 2019-03-12 0001628063 srg:NewarkCAMember 2019-03-12 0001628063 srg:OklahomaCityOKMember 2019-03-12 0001628063 srg:TroyMIMember 2019-03-12 0001628063 srg:VirginiaBeachVAMember 2019-03-12 0001628063 srg:MadisonWIMember 2019-03-12 0001628063 srg:ThousandOaksCAMember 2019-03-12 0001628063 srg:CedarRapidsIAMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:CitrusHeightsCAMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:GainesvilleFLMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:MaplewoodMNMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:PensacolaFLMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:RochesterNYMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:RosevilleCAMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:SanAntonioTXMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:WarrentonVAMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:WestwoodTXMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:FriendswoodTXMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:AlbanyNYMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:BurnsvilleMNMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:ChicagoILNHarlemMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:CockeysvilleMDMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:EastNorthportNYMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:GreendaleWIMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:HagerstownMDMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:JohnsonCityNYMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:LafayetteLAMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:MentorOHMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:MiddleburgHeightsOHMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:OleanNYMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:OverlandParkKSMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:RosevilleMIMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:SarasotaFLMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:ToledoOHMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:WarwickRIMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:YorkPAMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:ChapelHillOHMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:ConcordNCMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:DetroitLakesMNMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:ElPasoTXMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:ElkinsWVMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:HendersonNVMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:HopkinsvilleKYMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:JeffersonCityMOMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:KentonOHMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 0001628063 srg:AntiochCAMember 2019-03-12 2019-03-12 0001628063 srg:ColumbusMSMember 2019-03-12 2019-03-12 0001628063 srg:DaytonOHMember 2019-03-12 2019-03-12 0001628063 srg:FlagstaffAZMember 2019-03-12 2019-03-12 0001628063 srg:FtWayneINMember 2019-03-12 2019-03-12 0001628063 srg:JacksonMIMember 2019-03-12 2019-03-12 0001628063 srg:ManchesterNHMember 2019-03-12 2019-03-12 0001628063 srg:SalemNHMember 2019-03-12 2019-03-12 0001628063 srg:SavannahGAMember 2019-03-12 2019-03-12 0001628063 srg:ScottDepotWVMember 2019-03-12 2019-03-12 0001628063 srg:StegerILMember 2019-03-12 2019-03-12 0001628063 srg:VictorNYMember 2019-03-12 2019-03-12 0001628063 srg:WestJordanUTMember 2019-03-12 2019-03-12 0001628063 srg:ChesapeakeVAMember 2019-03-12 2019-03-12 0001628063 srg:ClayNYMember 2019-03-12 2019-03-12 0001628063 srg:HavreMTMember 2019-03-12 2019-03-12 0001628063 srg:NewarkCAMember 2019-03-12 2019-03-12 0001628063 srg:OklahomaCityOKMember 2019-03-12 2019-03-12 0001628063 srg:TroyMIMember 2019-03-12 2019-03-12 0001628063 srg:VirginiaBeachVAMember 2019-03-12 2019-03-12 0001628063 srg:MadisonWIMember 2019-03-12 2019-03-12 0001628063 srg:ThousandOaksCAMember 2019-03-12 2019-03-12 0001628063 srg:CedarRapidsIAMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:CitrusHeightsCAMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:GainesvilleFLMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:MaplewoodMNMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:PensacolaFLMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:RochesterNYMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:RosevilleCAMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:SanAntonioTXMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:WarrentonVAMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:WestwoodTXMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:FriendswoodTXMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:AlbanyNYMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:BurnsvilleMNMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:ChicagoILNHarlemMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:CockeysvilleMDMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:EastNorthportNYMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:GreendaleWIMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:HagerstownMDMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:JohnsonCityNYMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:LafayetteLAMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:MentorOHMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:MiddleburgHeightsOHMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:OleanNYMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:OverlandParkKSMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:RosevilleMIMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:SarasotaFLMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:ToledoOHMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:WarwickRIMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:YorkPAMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:ChapelHillOHMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:ConcordNCMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:DetroitLakesMNMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:ElPasoTXMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:ElkinsWVMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:HendersonNVMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:HopkinsvilleKYMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:JeffersonCityMOMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 srg:KentonOHMember srg:SearsHoldingsCorporationMember srg:MasterLeaseMember srg:LeaseTerminationsMember 2019-03-12 2019-03-12 0001628063 us-gaap:GeneralAndAdministrativeExpenseMember 2019-04-01 2019-06-30 0001628063 us-gaap:GeneralAndAdministrativeExpenseMember 2018-04-01 2018-06-30 0001628063 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-06-30 0001628063 us-gaap:GeneralAndAdministrativeExpenseMember 2018-01-01 2018-06-30 0001628063 srg:PropertyOperatingExpenseMember 2019-04-01 2019-06-30 0001628063 srg:PropertyOperatingExpenseMember 2018-01-01 2018-03-31 0001628063 srg:PropertyOperatingExpenseMember 2019-01-01 2019-06-30 0001628063 srg:PropertyOperatingExpenseMember 2018-01-01 2018-06-30 0001628063 srg:TermLoanFacilityMember srg:BerkshireHathawayLifeInsuranceCompanyMember 2018-07-30 2018-07-31 0001628063 srg:TermLoanFacilityMember srg:BerkshireHathawayLifeInsuranceCompanyMember 2018-07-31 0001628063 srg:TermLoanFacilityMember srg:BerkshireHathawayLifeInsuranceCompanyMember srg:InitialFundingMember 2018-07-31 0001628063 srg:TermLoanFacilityMember srg:BerkshireHathawayLifeInsuranceCompanyMember srg:IncrementalFundingFacilityMember 2018-07-31 0001628063 srg:TermLoanFacilityMember srg:BerkshireHathawayLifeInsuranceCompanyMember 2019-01-01 2019-06-30 0001628063 srg:TermLoanFacilityMember srg:BerkshireHathawayLifeInsuranceCompanyMember 2019-06-30 0001628063 srg:TermLoanFacilityMember srg:BerkshireHathawayLifeInsuranceCompanyMember srt:MinimumMember 2018-07-30 2018-07-31 0001628063 srg:TermLoanFacilityMember srg:BerkshireHathawayLifeInsuranceCompanyMember srt:MaximumMember 2018-07-30 2018-07-31 0001628063 srt:MinimumMember 2019-01-01 2019-06-30 srg:DerivativeInstrument 0001628063 us-gaap:FairValueInputsLevel2Member 2018-06-30 0001628063 us-gaap:FairValueInputsLevel2Member 2018-12-31 0001628063 srt:MinimumMember srg:SearsHoldingsCorporationMember 2019-04-18 2019-04-18 0001628063 srt:MaximumMember srg:SearsHoldingsCorporationMember 2019-04-18 2019-04-18 0001628063 us-gaap:BeneficialOwnerMember srg:OperatingPartnershipMember srg:SearsHoldingsCorporationMember 2019-06-30 0001628063 us-gaap:CommonClassAMember us-gaap:BeneficialOwnerMember srg:OperatingPartnershipMember srg:SearsHoldingsCorporationMember 2019-06-30 0001628063 srg:ClassBNonEconomicCommonSharesMember us-gaap:BeneficialOwnerMember srg:OperatingPartnershipMember srg:SearsHoldingsCorporationMember 2019-06-30 0001628063 srg:UnconsolidatedJointVenturesMember 2019-06-30 0001628063 srg:UnconsolidatedJointVenturesMember 2018-12-31 0001628063 srg:OperatingPartnershipMember us-gaap:BeneficialOwnerMember 2019-06-30 0001628063 srg:ClassBNonEconomicCommonSharesMember 2019-01-01 2019-06-30 0001628063 srg:ClassBNonEconomicCommonSharesMember 2019-06-30 0001628063 srg:ClassCNonVotingCommonSharesMember 2019-06-30 0001628063 srg:SeriesACumulativeRedeemablePreferredSharesMember 2017-12-31 0001628063 srg:SeriesACumulativeRedeemablePreferredSharesMember 2017-01-01 2017-12-31 0001628063 us-gaap:ScenarioForecastMember srg:SeriesACumulativeRedeemablePreferredSharesMember 2022-12-14 0001628063 us-gaap:ScenarioForecastMember srt:MaximumMember srg:SeriesACumulativeRedeemablePreferredSharesMember 2022-12-13 2022-12-14 0001628063 srg:CommonClassAAndCommonClassCMember 2019-02-24 2019-02-25 0001628063 srg:CommonClassAAndCommonClassCMember 2018-10-22 2018-10-23 0001628063 srg:CommonClassAAndCommonClassCMember 2018-07-23 2018-07-24 0001628063 srg:CommonClassAAndCommonClassCMember 2018-04-23 2018-04-24 0001628063 srg:CommonClassAAndCommonClassCMember 2018-02-19 2018-02-20 0001628063 us-gaap:SeriesAPreferredStockMember us-gaap:SubsequentEventMember 2019-07-22 2019-07-23 0001628063 us-gaap:SeriesAPreferredStockMember 2019-04-01 2019-04-30 0001628063 us-gaap:SeriesAPreferredStockMember 2019-02-24 2019-02-25 0001628063 us-gaap:SeriesAPreferredStockMember 2018-10-22 2018-10-23 0001628063 us-gaap:SeriesAPreferredStockMember 2018-07-23 2018-07-24 0001628063 us-gaap:SeriesAPreferredStockMember 2018-04-23 2018-04-24 0001628063 us-gaap:SeriesAPreferredStockMember 2018-02-19 2018-02-20 0001628063 us-gaap:SeriesAPreferredStockMember 2017-12-14 2017-12-31 0001628063 srg:TimeBasedRestrictedSharesAndRestrictedShareUnitsMember 2019-06-30 0001628063 srg:TimeBasedRestrictedSharesAndRestrictedShareUnitsMember 2018-12-31 0001628063 srg:SeritageGrowthProperties2015SharePlanMember 2015-07-07 0001628063 srg:TimeBasedRestrictedSharesAndRestrictedShareUnitsMember 2019-01-01 2019-06-30 0001628063 us-gaap:RestrictedStockMember 2018-12-31 0001628063 us-gaap:RestrictedStockMember 2019-01-01 2019-06-30 0001628063 us-gaap:RestrictedStockMember 2019-06-30 0001628063 us-gaap:RestrictedStockMember us-gaap:GeneralAndAdministrativeExpenseMember 2019-04-01 2019-06-30 0001628063 us-gaap:RestrictedStockMember us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-06-30 0001628063 us-gaap:RestrictedStockMember us-gaap:GeneralAndAdministrativeExpenseMember 2018-04-01 2018-06-30 0001628063 us-gaap:RestrictedStockMember us-gaap:GeneralAndAdministrativeExpenseMember 2018-01-01 2018-06-30 0001628063 us-gaap:RestrictedStockMember 2018-06-30 0001628063 us-gaap:RestrictedStockMember 2019-04-01 2019-06-30 0001628063 us-gaap:RestrictedStockMember 2018-04-01 2018-06-30

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______to _______

Commission File Number 001-37420

SERITAGE GROWTH PROPERTIES

(Exact name of registrant as specified in its charter)

 

Maryland

38-3976287

(State of Incorporation)

(I.R.S. Employer Identification No.)

 

500 Fifth Avenue, Suite 1530, New York, New York

10110

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code: (212) 355-7800

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbols

Name of each exchange on which registered

Class A common shares of beneficial interest, par value $0.01 per share

SRG

New York Stock Exchange

7.00% Series A cumulative redeemable preferred shares of beneficial interest, par value $0.01 per share

SRG-PA

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes      No  

As of July 30, 2019, the registrant had the following common shares outstanding:

 

Class

Shares Outstanding

Class A common shares of beneficial interest, par value $0.01 per share

36,828,522

Class B common shares of beneficial interest, par value $0.01 per share

1,247,060

Class C common shares of beneficial interest, par value $0.01 per share

0

 

 


SERITAGE GROWTH PROPERTIES

QUARTERLY REPORT ON FORM 10-Q

QUARTER ENDED JUNE 30, 2019

TABLE OF CONTENTS

 

PART I.

FINANCIAL INFORMATION

 

 

 

Page

 

 

 

Item 1.

Condensed Consolidated Financial Statements (unaudited)

3

 

Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018

3

 

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018

4

 

Condensed Consolidated Statements of Equity for the three and six months ended June 30, 2019 and 2018

5

 

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018

7

 

Notes to Condensed Consolidated Financial Statements

9

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

32

 

 

 

Item 3.

Quantitative and Qualitative Disclosure about Market Risk

43

 

 

 

Item 4.

Controls and Procedures

43

 

 

 

PART II.

OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

44

 

 

 

Item 1A.

Risk Factors

44

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

44

 

 

 

Item 3.

Defaults upon Senior Securities

44

 

 

 

Item 4.

Mine Safety Disclosures

44

 

 

 

Item 5.

Other Information

44

 

 

 

Item 6.

Exhibits

45

 

 

 

SIGNATURES

 

46

 

 

 


PART I.

FINANCIAL INFORMATION

Item 1.

Unaudited Condensed Consolidated Financial Statements

SERITAGE GROWTH PROPERTIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, amounts in thousands, except share and per share amounts)

 

 

 

June 30, 2019

 

 

December 31, 2018

 

ASSETS

 

 

 

 

 

 

 

 

Investment in real estate

 

 

 

 

 

 

 

 

Land

 

$

686,160

 

 

$

696,792

 

Buildings and improvements

 

 

932,624

 

 

 

900,173

 

Accumulated depreciation

 

 

(158,446

)

 

 

(137,947

)

 

 

 

1,460,338

 

 

 

1,459,018

 

Construction in progress

 

 

393,655

 

 

 

292,049

 

Net investment in real estate

 

 

1,853,993

 

 

 

1,751,067

 

Real estate held for sale

 

 

5,277

 

 

 

3,094

 

Investment in unconsolidated joint ventures

 

 

418,967

 

 

 

398,577

 

Cash and cash equivalents

 

 

325,505

 

 

 

532,857

 

Tenant and other receivables, net

 

 

50,388

 

 

 

36,926

 

Lease intangible assets, net

 

 

96,332

 

 

 

123,656

 

Prepaid expenses, deferred expenses and other assets, net

 

 

48,286

 

 

 

29,899

 

Total assets

 

$

2,798,748

 

 

$

2,876,076

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Term Loan Facility, net

 

$

1,598,276

 

 

$

1,598,053

 

Accounts payable, accrued expenses and other liabilities

 

 

104,952

 

 

 

127,565

 

Total liabilities

 

 

1,703,228

 

 

 

1,725,618

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

 

 

Class A common shares $0.01 par value; 100,000,000 shares authorized;

   36,828,991 and 35,667,521 shares issued and outstanding

   as of June 30, 2019 and December 31, 2018, respectively

 

 

368

 

 

 

357

 

Class B common shares $0.01 par value; 5,000,000 shares authorized;

   1,247,060 and 1,322,365 shares issued and outstanding

   as of June 30, 2019 and December 31, 2018, respectively

 

 

12

 

 

 

13

 

Series A preferred shares $0.01 par value; 10,000,000 shares authorized;

    2,800,000 shares issued and outstanding as of June 30, 2019 and

    December 31, 2018; liquidation preference of $70,000

 

 

28

 

 

 

28

 

Additional paid-in capital

 

 

1,144,458

 

 

 

1,124,504

 

Accumulated deficit

 

 

(380,734

)

 

 

(344,132

)

Total shareholders' equity

 

 

764,132

 

 

 

780,770

 

Non-controlling interests

 

 

331,388

 

 

 

369,688

 

Total equity

 

 

1,095,520

 

 

 

1,150,458

 

Total liabilities and equity

 

$

2,798,748

 

 

$

2,876,076

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements. 

- 3 -


SERITAGE GROWTH PROPERTIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, amounts in thousands, except per share amounts)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue

 

$

38,697

 

 

$

48,356

 

 

$

82,275

 

 

$

102,133

 

Management and other fee income

 

 

1,814

 

 

 

914

 

 

 

2,096

 

 

 

914

 

Total revenue

 

 

40,511

 

 

 

49,270

 

 

 

84,371

 

 

 

103,047

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating

 

 

9,302

 

 

 

6,533

 

 

 

19,539

 

 

 

13,774

 

Real estate taxes

 

 

10,159

 

 

 

9,217

 

 

 

20,351

 

 

 

20,598

 

Depreciation and amortization

 

 

20,194

 

 

 

49,551

 

 

 

46,410

 

 

 

84,218

 

General and administrative

 

 

8,297

 

 

 

8,673

 

 

 

18,056

 

 

 

16,470

 

Provision for doubtful accounts

 

 

 

 

 

109

 

 

 

 

 

 

170

 

Total expenses

 

 

47,952

 

 

 

74,083

 

 

 

104,356

 

 

 

135,230

 

Gain on sale of real estate, net

 

 

11,612

 

 

 

34,187

 

 

 

32,873

 

 

 

76,018

 

Equity in loss of unconsolidated joint ventures

 

 

(9,944

)

 

 

(2,158

)

 

 

(8,722

)

 

 

(4,740

)

Interest and other income

 

 

2,175

 

 

 

456

 

 

 

4,773

 

 

 

1,136

 

Interest expense

 

 

(22,141

)

 

 

(17,862

)

 

 

(45,595

)

 

 

(34,281

)

Change in fair value of interest rate cap

 

 

 

 

 

(172

)

 

 

 

 

 

(7

)

(Loss) income before taxes

 

 

(25,739

)

 

 

(10,362

)

 

 

(36,656

)

 

 

5,943

 

Provision for taxes

 

 

(146

)

 

 

(240

)

 

 

(123

)

 

 

(344

)

Net (loss) income

 

 

(25,885

)

 

 

(10,602

)

 

 

(36,779

)

 

 

5,599

 

Net income (loss) attributable to non-controlling interests

 

 

8,982

 

 

 

3,831

 

 

 

12,909

 

 

 

(2,042

)

Net loss (income) attributable to Seritage

 

$

(16,903

)

 

$

(6,771

)

 

$

(23,870

)

 

$

3,557

 

Preferred dividends

 

 

(1,225

)

 

 

(1,225

)

 

 

(2,450

)

 

 

(2,453

)

Net (loss) income attributable to Seritage common shareholders

 

$

(18,128

)

 

$

(7,996

)

 

$

(26,320

)

 

$

1,104

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share attributable to Seritage Class A

   and Class C common shareholders - Basic

 

$

(0.50

)

 

$

(0.23

)

 

$

(0.73

)

 

$

0.03

 

Net (loss) income per share attributable to Seritage Class A

   and Class C common shareholders - Diluted

 

$

(0.50

)

 

$

(0.23

)

 

$

(0.73

)

 

$

0.03

 

Weighted average Class A and Class C common shares

   outstanding - Basic

 

 

36,291

 

 

 

35,483

 

 

 

35,983

 

 

 

35,449

 

Weighted average Class A and Class C common shares

   outstanding - Diluted

 

 

36,291

 

 

 

35,483

 

 

 

35,983

 

 

 

35,588

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

 

- 4 -


SERITAGE GROWTH PROPERTIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited, amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

Common

 

 

Class B

Common

 

 

Class C

Common

 

 

Series A

Preferred

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Non-

Controlling

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Interests

 

 

Equity

 

Balance at January 1, 2018

 

 

32,416

 

 

$

324

 

 

 

1,329

 

 

$

13

 

 

 

3,151

 

 

$

31

 

 

 

2,800

 

 

$

28

 

 

$

1,116,060

 

 

$

(229,760

)

 

$

434,164

 

 

$

1,320,860

 

Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,557

 

 

 

2,042

 

 

 

5,599

 

Common dividends and

   distributions declared

   ($0.50 per share and unit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,994

)

 

 

(10,084

)

 

 

(28,078

)

Preferred dividends

   declared ($0.8750 per

   share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,453

)

 

 

 

 

 

(2,453

)

Vesting of restricted share units

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,379

 

 

 

 

 

 

 

 

 

3,379

 

Preferred stock offering

   costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(113

)

 

 

 

 

 

 

 

 

(113

)

Share class exchanges, net

   (3,150,281 common  shares)

 

 

3,150

 

 

 

31

 

 

 

 

 

 

 

 

 

(3,150

)

 

 

(31

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share class surrenders

   (6,501 common shares)

 

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OP Unit exchanges

   (98,923 units)

 

 

99

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,925

 

 

 

 

 

 

(2,926

)

 

 

 

Balance at June 30, 2018

 

 

35,679

 

 

$

356

 

 

 

1,322

 

 

$

13

 

 

 

1

 

 

$

 

 

 

2,800

 

 

$

28

 

 

$

1,122,251