Bruce Berkowitz Comments on Seritage
- By Holly LaFon
Fortune Magazine notes that "there is still a lot of life in that American mainstay, the suburban mall," but the tenant mix is shifting to accommodate new consumer preferences.5 Indeed, growing demand for "very un-mall-like grocery stores, spin-class fitness shops, and entertainment centers" presents attractive opportunities for landlords such as Seritage, who can convert existing retail square footage to "non-retail spaces that people want."6 In 18 months, Seritage (SRG) has re-leased 2.2 million square feet and commenced or completed 48 wholly owned redevelopment projects. Sears now represents 65% of signed lease revenue; down from 90%. Headlines overlook this renter diversification and ignore Seritage's acceleration with large mixed-use redevelopments in Santa Monica (California), Aventura (Florida), Hicksville (New York), and Redmond (Washington).
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The intrinsic value of SRG
From Bruce Berkowitz (Trades, Portfolio)'s Fairholme Fund (Trades, Portfolio) annual shareholder letter 2016.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 3 Warning Signs with SRG. Click here to check it out.
The intrinsic value of SRG
