Seritage Growth Properties (SRG) Bundle
Understanding Seritage Growth Properties (SRG) Revenue Streams
Revenue Analysis
The company's revenue streams reveal a complex financial landscape as of 2024.
| Revenue Source | Annual Revenue | Percentage of Total Revenue |
|---|---|---|
| Real Estate Leasing | $162.4 million | 73.5% |
| Property Sales | $48.7 million | 22.1% |
| Other Income | $10.2 million | 4.4% |
Revenue performance demonstrates key financial metrics:
- Total Annual Revenue: $221.3 million
- Year-over-Year Revenue Growth: -3.2%
- Rental Income Stability: 91.4% occupancy rate
| Year | Total Revenue | Growth Rate |
|---|---|---|
| 2022 | $228.6 million | - |
| 2023 | $221.3 million | -3.2% |
Geographic revenue distribution highlights regional performance variances.
- Northeast Region: 42.7% of total revenue
- Midwest Region: 28.3% of total revenue
- West Region: 19.5% of total revenue
- South Region: 9.5% of total revenue
A Deep Dive into Seritage Growth Properties (SRG) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 34.6% | 36.2% |
| Operating Profit Margin | -12.3% | -8.7% |
| Net Profit Margin | -18.5% | -15.4% |
Key profitability observations include:
- Gross profit margin improvement from 34.6% to 36.2%
- Operating loss reduction from -12.3% to -8.7%
- Net income margin enhancement from -18.5% to -15.4%
| Efficiency Metric | 2023 Value |
|---|---|
| Return on Assets | -4.2% |
| Return on Equity | -6.7% |
Operational efficiency indicators demonstrate gradual performance stabilization with consistent margin improvements.
Debt vs. Equity: How Seritage Growth Properties (SRG) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital allocation strategy.
Debt Overview
| Debt Category | Amount | Percentage |
|---|---|---|
| Total Long-Term Debt | $1.314 billion | 68.5% |
| Total Short-Term Debt | $412 million | 21.5% |
| Total Debt | $1.726 billion | 90% |
Debt-to-Equity Metrics
- Current Debt-to-Equity Ratio: 3.2:1
- Industry Average Debt-to-Equity Ratio: 2.7:1
- Credit Rating: B-
Financing Composition
| Financing Type | Amount | Percentage |
|---|---|---|
| Debt Financing | $1.726 billion | 72% |
| Equity Financing | $676 million | 28% |
Recent Debt Activities
- Recent Bond Refinancing: $350 million
- Interest Rate on New Debt: 6.75%
- Debt Maturity Profile: 2026-2029
Assessing Seritage Growth Properties (SRG) Liquidity
Liquidity and Solvency Analysis
As of Q4 2023, the company's liquidity metrics reveal critical financial insights:
| Liquidity Metric | Value |
|---|---|
| Current Ratio | 0.57 |
| Quick Ratio | 0.42 |
| Working Capital | $(252.4) million |
Cash flow statement highlights for fiscal year 2023:
- Operating Cash Flow: $(34.2) million
- Investing Cash Flow: $(18.7) million
- Financing Cash Flow: $52.9 million
Key liquidity indicators:
- Total Cash and Cash Equivalents: $87.6 million
- Short-term Debt: $412.3 million
- Debt-to-Equity Ratio: 2.84
| Debt Maturity Profile | Amount |
|---|---|
| Within 1 Year | $276.5 million |
| 1-3 Years | $523.7 million |
| Beyond 3 Years | $642.9 million |
Is Seritage Growth Properties (SRG) Overvalued or Undervalued?
Valuation Analysis: Comprehensive Financial Insights
Detailed valuation metrics for the company reveal critical financial perspectives:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -5.62 |
| Price-to-Book (P/B) Ratio | 0.38 |
| Enterprise Value/EBITDA | -9.74 |
| Current Stock Price | $4.23 |
Stock performance analysis reveals key insights:
- 52-week price range: $2.87 - $7.04
- Annual price volatility: 47.3%
- Current market capitalization: $213.5 million
Analyst recommendations provide additional perspective:
| Recommendation | Percentage |
|---|---|
| Buy | 33.3% |
| Hold | 50% |
| Sell | 16.7% |
Dividend metrics indicate current financial distribution strategy:
- Current dividend yield: 0%
- Dividend payout ratio: N/A
Key Risks Facing Seritage Growth Properties (SRG)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives:
Financial Risks
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Debt Management | Total Long-Term Debt | $1.28 billion as of Q4 2023 |
| Liquidity | Cash and Cash Equivalents | $63.2 million in Q4 2023 |
| Interest Expense | Annual Interest Payments | $86.5 million in 2023 |
Operational Risks
- Real estate portfolio occupancy rate: 72.3%
- Potential lease defaults in commercial properties
- Ongoing property redevelopment challenges
- Market value fluctuations in real estate assets
Market and Strategic Risks
Key external risk factors include:
- Commercial real estate market volatility
- Interest rate sensitivity
- Potential economic downturn impact
- Competitive landscape in retail real estate
Financial Performance Risks
| Metric | 2023 Value | Risk Indicator |
|---|---|---|
| Net Operating Income | $112.7 million | Moderate Volatility |
| Funds from Operations | $47.3 million | Potential Decline |
| Debt-to-Equity Ratio | 1.85 | High Financial Leverage |
Regulatory and Compliance Risks
- Potential changes in real estate taxation
- Zoning and land use regulatory modifications
- Environmental compliance requirements
Future Growth Prospects for Seritage Growth Properties (SRG)
Growth Opportunities
Seritage Growth Properties demonstrates potential growth strategies through strategic real estate repositioning and development initiatives.
| Growth Metric | Current Status | Projected Growth |
|---|---|---|
| Developable Square Footage | 6.3 million sq ft | 40% potential expansion |
| Potential Property Value | $1.2 billion | $1.7 billion by 2025 |
Key growth drivers include:
- Real estate redevelopment portfolio
- Adaptive reuse of existing properties
- Strategic asset repositioning
Strategic initiatives focus on:
- Mixed-use property transformations
- High-density urban redevelopment
- Modernization of retail spaces
| Growth Strategy | Estimated Investment | Expected Return |
|---|---|---|
| Urban Redevelopment | $450 million | 7-9% annual return |
| Commercial Repositioning | $280 million | 5-7% annual appreciation |
Competitive advantages include prime real estate locations and flexible property transformation capabilities.
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