Seritage Growth Properties — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income attributable to common shareholders of $2.7 million ($0.05 per share) for the three months ended September 30, 2026, compared to a net loss of $13.6 million ($0.24 per share) for the same period in 2025.
• Reported a net loss attributable to common shareholders of $36.2 million ($0.64 per share) for the nine months ended September 30, 2026, compared to a net loss of $66.8 million ($1.19 per share) for the nine months ended September 30, 2025.
• Total revenue was $1.6 million for the three months ended September 30, 2026, down from $4.8 million in the prior year period; revenue was $5.6 million for the nine months ended September 30, 2026, down from $14.0 million in the prior year period.
• Rental income was $1.5 million for the three months ended September 30, 2026, compared to $4.6 million in the prior year period.
• Total expenses were $6.1 million for the three months ended September 30, 2026, compared to $10.9 million in the prior year period.
• Recognized a $15.2 million impairment charge on consolidated properties and a $5.2 million other-than-temporary impairment loss on an unconsolidated entity during the nine months ended September 30, 2026.
• Cash on hand was $45.4 million as of September 30, 2026, including $32.7 million in restricted cash, with $10.0 million available under a revolving loan facility.
• Received $10.4 million in distributions from unconsolidated properties during the three months ended September 30, 2026, and $19.2 million during the nine months ended September 30, 2026.
• Invested $1.9 million in consolidated properties and $0.3 million in unconsolidated properties during the three months ended September 30, 2026.
• Invested $2.8 million in consolidated properties and $2.8 million in unconsolidated properties during the nine months ended September 30, 2026.
• Total liabilities were $38.7 million as of September 30, 2026, down from $61.0 million as of December 31, 2025.
• Total shareholders' equity was $295.0 million as of September 30, 2026, down from $331.4 million as of December 31, 2025.

Guidance and Future Outlook:

• The Company continues to work on individual asset sales and potential strategic options for the portfolio and the Company, though no new transactions are under contract.
• Management expects that persistent challenging market conditions, including elevated interest rates and limited capital availability, will continue to adversely impact Plan of Sale proceeds and the timing/amounts of distributions to shareholders.
• The Company intends to use existing cash on hand and availability under its revolving loan facility to pay financing obligations and fund operations and development activity.

Business Segments and Product Lines:

• The portfolio as of September 30, 2026, consisted of eight properties with approximately 0.7 million square feet of gross leasable area and 133 acres of land.
• Consolidated properties include one multi-tenant retail site (83.6% leased) and two premier sites (0.0% leased).
• Unconsolidated properties include two other joint ventures (5.1% leased) and three premier sites (67.4% leased).
• Generated gross proceeds of $3.0 million from the sale of one vacant/non-income producing asset in Q3 2026.
• Entered into a purchase and sale agreement to sell a vacant premier asset in Dallas, Texas, for anticipated gross proceeds of $50.8 million before credits and costs.
• Received $0.6 million in option payments related to the Dallas asset through September 30, 2026.

Market and Competitive Landscape:

• The Company faces challenging market conditions including elevated interest rates, reduced availability of debt and equity capital, supply chain issues, international conflicts associated with tariffs, potential labor issues, and uncertainty from wars.
• Interest rates are currently higher than in 2022.
• Raising equity capital for land development deals remains challenging.
• These conditions could apply downward pricing pressures on remaining assets.

Risks and Challenges:

• Ongoing class action and derivative lawsuits alleging violations of federal securities laws and breach of fiduciary duty by the Company and its officers/directors.
• The Company's ability to access sufficient financing to fund liquidity needs.
• Risks related to redevelopment activities, disposition of properties, and the success of the strategic review process and Plan of Sale.
• Potential failure to achieve expected occupancy and/or rent levels.
• Environmental, health, safety, and land use laws and regulations.
• Possible acts of war, terrorist activity, or cybersecurity incidents.

Management Commentary and Tone:

• Adam Metz, CEO & President, stated that while there are no new transactions under contract, the Company continues to work on individual asset sales and potential strategic options.
• Management intends to vigorously defend itself against the allegations in the ongoing lawsuits.

Other Key Points:

• On July 24, 2026, the Company entered into a new $15.0 million term loan facility and a $25.0 million revolving loan facility.
• The Company drew $15.0 million under the revolving loan facility at closing and used the proceeds along with cash on hand to fully repay the $50.0 million outstanding balance on its prior term loan facility.
• The Board of Trustees declared Series A preferred dividends of $0.43750 per share for the periods ending March 31, June 30, September 30, and December 31, 2026.
• The strategic review process remains ongoing as the Company executes the Plan of Sale approved by shareholders in 2022, with the Company remaining open-minded to pursuing value-maximizing alternatives, including a potential sale of the Company.
• Sold properties during the nine months ended September 30, 2026, included a partial site in Alexandria, VA (Q1), a full site in Riverside, CA (Q2), and a full site in Riverside, CA and a partial site in Alexandria, VA (Q3).