Seritage Earnings: Another Dreadful Quarter
Seritage Growth Properties' (NYSE: SRG) mission of converting former Sears and Kmart stores for better uses has attracted a surprising amount of investor interest, despite poor supply demand dynamics for retail real estate in recent years. Unfortunately, the REIT hasn't had an easy time carrying out its redevelopment plan. Between Sears' rapid collapse and the COVID-19 pandemic, most of Seritage's real estate portfolio now sits vacant.
Bulls have been hoping that new management and a plan to quickly sell off non-core properties might turn the tide. However, Seritage's second-quarter earnings report showed that the company is still floundering and has no easy way out.
In recent years, Seritage has struggled to keep a reasonable proportion of its real estate occupied. As of June 30, occupancy stood at a dismal 23%. Naturally, this makes it impossible for the REIT to produce decent financial results.
Source Fool.com
