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Seritage Growth Properties (NYSE:SRG) announced changes to its executive employment agreements, according to a press release statement based on a recent SEC filing. The real estate investment trust, currently trading at $3.74 with a market cap of $210.65 million, has seen significant price volatility with a 10.56% return over the past week. According to InvestingPro analysis, the company appears slightly overvalued compared to its Fair Value estimate.
On November 21, the Compensation Committee approved an amendment to the employment offer letter addendum for Eric Dinenberg, the company’s Chief Operating Officer. The amendment establishes a six-month retention period for Mr. Dinenberg beginning March 16, 2026, and ending September 15, 2026, replacing the one-year renewal period previously in place. The total compensation and benefits Mr. Dinenberg will receive during this period, excluding a potential additional bonus, will be approximately 50% of what he would have received under a full one-year renewal.
Mr. Dinenberg’s annual salary and annual target bonus will increase by 5%. He will be eligible for a retention bonus of $434,109, with one-third payable on July 15, 2026, and two-thirds on September 15, 2026, contingent on continued employment. If he remains employed through the end of the term, he will also receive a cash bonus of $173,643 in lieu of an equity award for 2026 and a prorated target bonus of $245,479 for service from January 1, 2026, to September 15, 2026.
The amendment provides for an additional $1,000,000 bonus if, during the term, Seritage enters into and closes a transaction involving a change of control or sale of substantially all assets before or within 12 months after the term ends. This potential transaction comes as Seritage faces financial challenges, with InvestingPro data showing the company is not profitable over the last twelve months with negative EBITDA of $32.6 million and diluted EPS of -$1.42.
If Mr. Dinenberg’s employment is terminated without cause, due to death or disability, or for “good reason,” he will be entitled to unpaid portions of the retention bonus, salary for the remainder of the term, the prorated bonus, the 2026 cash award, and a lump sum equal to one year of base salary.
The Board of Trustees also extended the employment of Matthew Fernand, Chief Legal Officer and Corporate Secretary, for an additional one-year term beginning March 16, 2026, by not issuing a notice of non-renewal under his employment agreement.
All information is based on a press release statement and SEC filing.
In other recent news, Seritage Growth Properties made a significant financial move by prepaying $130 million toward its $1.6 billion term loan facility with Berkshire Hathaway Life Insurance Company of Nebraska. This prepayment was made possible through proceeds from recent property sales, notably the sale of its Aventura, Florida property. The company has now repaid a total of $1.53 billion on this loan since December 2021, leaving $70 million outstanding. Additionally, Seritage Growth Properties agreed to sell the Aventura property to Boulevard Step Ventures LLC for $131 million. The agreement includes a $5 million earnest money deposit, which is non-refundable under certain conditions. The sale is expected to close 30 days after the effective date of September 2, 2025, contingent on the fulfillment of customary conditions. These developments highlight Seritage’s efforts to manage its financial obligations and streamline its property portfolio.
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