Seritage Growth Properties (SRG) Stock Analysis

Seritage Growth Properties’ principal competitive advantage historically lay in its portfolio of well-located retail and mixed-use real estate, much of it acquired from Sears Holdings. Many properties are in high-traffic, infill locations with redevelopment potential—an asset base that, in theory, could command premium valuations compared to commodity retail real estate. As of September 2025, the portfolio had shrunk to 13 properties totaling 1.3 million square feet, with a heavy concentration in Florida and California.

Relative to larger retail REITs such as Simon Property Group or Kimco Realty, SRG lacks scale, tenant diversity, and access to low-cost capital. Its small size and ongoing asset sales limit bargaining power with tenants and contractors. Unlike Simon, which benefits from dominant Class A malls and a robust balance sheet, SRG’s remaining assets are a mix of stabilized and non-core properties, many with below-average occupancy (portfolio-wide leasing below 50% as of late 2024).

SRG’s current edge is its ability to unlock value through asset sales and redevelopment, capitalizing on select high-value sites. However, this is a finite advantage: as the portfolio is liquidated, recurring income and operational leverage diminish. The company’s culture is transactional and focused on maximizing near-term asset value, rather than building long-term tenant relationships or a distinctive brand. In sum, SRG’s competitive advantages are situational and eroding, with little evidence of durable structural edge versus sector peers.