SRG

Seritage is not an operating business anymore; it's a court-of-shareholders liquidation. Shareholders approved the Plan of Sale in October 2022, and the 10-K describes a Board 'currently overseeing the Plan of Sale' — selling all assets, distributing net proceeds, and dissolving. The portfolio is down to interests in just 10 properties (~0.8M sq ft and 156 acres). With $607K of annual 'revenue' the income statement and every ratio built on it (P/S of 247, net margin of -11,238%) are meaningless. The only questions that matter are: what will the remaining assets fetch, and what's left for the equity after obligations.

The delevering story is real and is the bull case. In FY2025 the company sold five consolidated assets plus unconsolidated interests for ~$230.7M gross proceeds, prepaid $190.0M of debt, and cut the Term Loan Facility to $50.0M. Total liabilities fell 77.6% to $61.0M against $331M of stockholders' equity — liabilities/equity of just 0.18x. Book value is ~$5.88/share versus a $2.66 price, so the stock trades at roughly 45% of stated equity. If liquidation realizes anything close to carrying value, there is meaningful upside.