Seritage Growth Properties: 50% Upside In 18 Months With Clear Catalysts

Summary

  • Last month, Seritage Growth Properties filed preliminary proxy documents asking shareholders to approve a plan of sale that would effectively liquidate the company.
  • Seritage stock currently trades at a steep discount to the anticipated distribution range of $18.50-$29 per share.
  • By early 2024, Seritage will likely have sold enough assets to eliminate its debt and preferred stock and begin shareholder distributions.
  • As downside risks are eliminated, asset sales are completed, and distributions begin, Seritage stock could post a total return of 50% over the next 18 months.
Last Sears Store In Chicago To Close Its Doors

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Last month, Seritage Growth Properties (NYSE:SRG) stock doubled, after the company filed a preliminary proxy statement that asks shareholders to approve a "plan of sale" that would result in selling all of its real estate and winding down operations.

In

This article was written by

Adam Levine-Weinberg is a value investor who has been researching and writing about stocks for Seeking Alpha and The Motley Fool since 2011. He graduated from Swarthmore College in 2007, received an M.A. in Political Science from the University of Chicago in 2009, and received his CFA charter in 2017. He is always on the hunt for irrationally beaten-down stocks, particularly in the aerospace, retail, real estate, and auto sectors.

Disclosure: I/we have a beneficial long position in the shares of SRG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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