Seritage net loss reaches $31.3M as developer races to refinance July debt

Seritage Growth Properties (NYSE:SRG) reported a widening net loss for the first quarter of 2026, driven by significant asset impairment charges, while management continues to negotiate the restructuring of its remaining corporate debt ahead of a summer deadline.

The New York-based real estate investment trust posted a net loss attributable to common shareholders of $31.3 million, or $0.56 per share, for the three months ended March 31, 2026.

The bottom-line results were heavily impacted by non-cash valuation adjustments, including a $15.2 million impairment charge on one of its consolidated properties and an other-than-temporary impairment loss of $5.2 million tied to an unconsolidated entity.

A primary operational focus for the company is its capital structure.

Chief Executive Officer and President Adam Metz confirmed that Seritage is advancing discussions to refinance its remaining $50 million of corporate debt, which is scheduled to mature at the end of July 2026.

Concurrently, the board is evaluating potential strategic transactions alongside its ongoing, multi-year plan to wind down operations and liquidate its remaining real estate holdings.

Monetization efforts yielded mixed capital inflows during and immediately after the quarter.

Seritage received a $5.7 million distribution from an unconsolidated entity following a partial underlying property sale, contributing to total unconsolidated property distributions of $7.4 million for the period.

Subsequent to the March 31 book-close, the developer generated $11 million in gross proceeds from the sale of a single vacant, non-income-producing asset.

Meanwhile, the company's liquidity profile showed modest improvement into the spring.

Seritage concluded the first quarter with $58.8 million in cash on hand, which included $14.3 million in restricted cash.

By May 14, 2026, its total cash position had risen to $63.2 million, with $14.4 million remaining restricted.

During the quarter, the firm limited its capital expenditures, investing $0.1 million into its consolidated properties and $2.4 million into its unconsolidated pipeline to preserve cash for upcoming debt service.