Seritage appoints interim CEO amid strategic downsizing

Published 28/03/2025, 11:38
Seritage appoints interim CEO amid strategic downsizing

NEW YORK - Seritage Growth Properties (NYSE: SRG), a real estate firm specializing in retail, residential, and mixed-use properties, announced a leadership change with Adam Metz stepping in as Interim CEO and President starting April 11, 2025. With a current market capitalization of $185.69 million, the company continues to implement its shareholder-approved Plan of Sale, which has significantly reduced its portfolio. According to InvestingPro data, the stock has experienced significant volatility, declining 65.8% over the past year.

Andrea Olshan will depart from her roles as CEO, President, and Board member on the same date. The decision aligns with the company’s strategic pivot, which has seen its asset base shrink from roughly 160 properties to 15 since March 2022. This reduction has altered the company’s leadership needs, prompting the mutually agreed change. InvestingPro analysis indicates the company maintains strong liquidity with a current ratio of 4.23, suggesting adequate resources to manage this transition.

Adam Metz, who has been an independent member of the Seritage Board since 2022, brings extensive experience in real estate business leadership to his interim role. The Board is considering other candidates for the permanent position, with the ongoing sale plan influencing their search.

The Board expressed gratitude to Ms. Olshan for her leadership over the past four years, particularly for her role in advancing the Plan of Sale and repaying over $1.3 billion of the company’s loan facility amid challenging market conditions. Ms. Olshan acknowledged the efforts of the management team and the Board’s support during her tenure. Trading at a price-to-book ratio of 0.44, InvestingPro analysis suggests the stock may be undervalued relative to its assets. Discover more insights and 8 additional ProTips about SRG with an InvestingPro subscription, including detailed financial health metrics and Fair Value estimates.

Prior to its strategic shift, Seritage was primarily focused on diverse retail and mixed-use property development across the United States. The company will continue to manage its remaining locations until they are sold. As of September 30, 2024, Seritage’s holdings included 21 properties, with approximately 2.7 million square feet of gross leasable area and 342 acres of land.

This leadership transition is part of Seritage’s broader strategy to streamline operations and focus resources as the company navigates a period of contraction and reorientation. With current revenues of $56.36 million and an overall weak financial health score according to InvestingPro metrics, the company’s forward-looking statements indicate an awareness of the risks and uncertainties inherent in the real estate market, emphasizing that actual results may differ from current expectations. Access comprehensive analysis and the full Pro Research Report for SRG, along with 1,400+ other stocks, through an InvestingPro subscription.

The information in this article is based on a press release statement from Seritage Growth Properties.

In other recent news, Snam reported strong financial results for the fourth quarter of 2024. The company achieved a 13.9% year-over-year increase in adjusted EBITDA, reaching €2,753 million, and a 10.4% rise in net income to €1,289 million. Total investments also surged by 31% compared to 2023, amounting to €2.9 billion. Snam’s forward guidance for 2025 includes an EBITDA target of €2.85 billion and net income guidance of €1.35 billion. The company plans to maintain a disciplined approach to debt, with net debt expected to rise to €18.4 billion. Additionally, Snam has committed to a 4% annual growth in dividends, with a maximum payout ratio of 80%. The company has made significant advancements in LNG capacity and biometan plant connections, reflecting its strategic focus on energy infrastructure. Analyst firms such as Morgan Stanley and Exane BNP Paribas have shown interest in Snam’s regulatory environment and strategic investments, indicating continued attention from the financial community.

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