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REIT company: Buffett concept stock Seritage Growth Properties (SRG) (2015)

Seritage Growth Properties (NYSE: SRG) was founded in 2015 and was split by Sears (SHLD) . It is a real estate investment trust (REIT). The company operates mainly through Seritage Growth Properties, LP, which is a company registered in Laware State Limited Partnership. In December 2015, Berkshire Hathaway announced that it had purchased nearly 8.02% of Seritage Growth Properties.

Seritage Growth Properties

Seritage Growth Properties (SRG):

Due to  increasing competition pressure and long-term poor operation of Sears (SHLD) , under the efforts of activist investors and management, Sears finally decided to split the more valuable and long-term value-added fixed assets into reits, namely: Seritage Growth Properties, in order to maximize the interests of shareholders.

Seritage Growth Properties is a publicly traded, self-managed and self-managed REIT with 180 wholly-owned real estate and 28 joint venture real estate in 45 states and Puerto Rico, with a total area of ​​approximately 30 million square feet. The company’s mission is to create and own vibrant shopping, dining, entertainment and mixed-use destinations that provide consumers and local communities with a rich experience and create long-term value for shareholders.

Seritage Growth Properties assets at the beginning of the spin-off:

Seritage Growth Properties Assets

At the time of the spin-off, Seritage Growth Properties acquired 235 wholly-owned properties, 31 joint venture properties, a total of 266 properties, with a total area of ​​42 million square feet. Most of its properties are concentrated in the bustling metropolitan area. California properties accounted for 20.8% of its total free property income.

Before Seritage, 91% of the area was leased to Hill Department Store and 78% of its revenue came from Hill Department Store.

After the spin-off, Seritage has the right to reprice 50% of the property area and sign the contract according to the contract.

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