Seritage Growth Properties Secures $30 Million Loan Prepayment

NEW YORK, 03/01/2023–(BUSINESS WIRE)–Seritage Growth Properties (NYSE: SRG) (the “Company”), a national owner and developer of retail, residential and mixed-use properties, today announced that on December 29, 2022, the Company made a voluntary prepayment of $30 million toward its $1.6 billion term loan facility provided by Berkshire Hathaway Life Insurance Company of Nebraska (“Berkshire Hathaway”).

Prepayment will reduce the outstanding term loan facility balance to $1.03 trillion. The prepayment will also reduce Seritage’s total annual interest expense related to the term loan facility by approximately $2.1 million.

Learn More About Seritage Growth Properties

Seritage is principally involved in the acquisition, development, redevelopment and management of mixed-use properties throughout the United States. As of September 30, 2022, the Company’s portfolio consisted of interests in 121 properties comprised of approximately 16.1 million square feet of gross leaseable area (“GLA”) or build-to-suit leased area, approximately 313 acres held for or under development and approximately 7.9 million square feet of GLA or approximately 631 acres to be disposed of. The portfolio includes approximately 13.5 million square footage of GLA owned by 104 properties, and 2.6 millions square feet of GLA by 17 unconsolidated entities.

Forward-Looking Statements

This document contains forward looking statements as defined by the federal securities laws. Forward-looking statements refer to beliefs, projections and future plans, strategies and strategies, anticipated events and trends, and similar expressions regarding matters that are not historical facts. You can identify forward-looking phrases by their use of forward looking terminology like “may,”‘should”, “expects,” future plans and strategies, anticipated events or trends, and the negative of such words and phrases. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that could cause or contribute to such differences include, but are not limited to: declines in retail, real estate and general economic conditions; the impact of the COVID-19 pandemic on the business of the Company’s tenants and business, income, cash flow, results of operations, financial condition, liquidity, prospects, ability to service the Company’s debt obligations and ability to pay dividends and other distributions to shareholders, risks relating to redevelopment activities; contingencies to the commencement of rent under leases; the terms of the Company’s indebtedness and other legal requirements to which the Company is subject; failure to achieve expected occupancy and/or rent levels within the projected time frame or at all; the impact of ongoing negative operating cash flow on the Company’s ability to fund operations and ongoing development; the Company’s ability to access or obtain sufficient sources of financing to fund the Company’s liquidity needs; the Company’s relatively limited history as an operating company; and environmental, health, safety and land use laws and regulations. For additional discussion of these and other applicable risks, assumptions and uncertainties, see the “Risk Factors” and forward-looking statement disclosure contained in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s definitive proxy statement filed with the SEC on September 14, 2022, the Company’s annual report on Form 10-K for the year ended December 31, 2021 and in Part II, Item 1A of the Company’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2022. Although the Company believes its assumptions and forecasts are reasonable, actual results could differ significantly. The forward-looking statements made by the Company are only valid as of the time they were made. They cannot be updated or revised as new information becomes available, other than as required by law.

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Contacts

Seritage Growth Properties
John Garilli
Interim Chief Financial Officer
(212) 355-7800
[email protected]