Seritage Growth prepays $40M on term loan
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 11 2025
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Source: SeekingAlpha
Loan Prepayment Details: Seritage Growth Properties made a voluntary prepayment of $40M towards its $1.6B term loan from Berkshire Hathaway, bringing total repayments since December 2021 to $1.4B, with $200M remaining outstanding.
Financial Impact: This prepayment will decrease Seritage's annual interest expenses by approximately $2.8M, contributing to a cumulative reduction of about $99.4M in interest expenses since late 2021.
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Analyst Views on SRG
Wall Street analysts forecast SRG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SRG is 6.28 USD with a low forecast of 6.28 USD and a high forecast of 6.28 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 3.280
Low
6.28
Averages
6.28
High
6.28
Current: 3.280
Low
6.28
Averages
6.28
High
6.28
About SRG
Seritage Growth Properties is a national owner and developer of retail, residential and mixed-use properties. The Company’s portfolio consists of interests in 16 properties comprised of approximately 1.6 million square feet of gross leasable area (GLA) or build-to-suit leased area and 240 acres of land. Its portfolio encompasses nine wholly owned properties consisting of approximately 0.8 million square feet of GLA and 132 acres (such properties, the Consolidated Properties) and seven unconsolidated entities consisting of approximately 0.8 million square feet of GLA and 108 acres (such properties, the Unconsolidated Properties). Its assets are held by and its operations are primarily conducted, directly or indirectly, through Seritage Growth Properties, L.P., a Delaware limited partnership (the Operating Partnership). The Company's subsidiaries include Seritage SRC Finance LLC, Seritage KMT Finance LLC, Seritage SRC Mezzanine Finance LLC and Seritage KMT Mezzanine Finance LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Seritage Growth Properties Makes $20M Prepayment, Reducing Annual Interest by $1.4M
- Loan Prepayment: Seritage Growth Properties has repaid a total of $1.55 billion since December 2021, with a recent voluntary prepayment of $20 million, leaving $50 million outstanding, indicating proactive debt management by the company.
- Interest Expense Reduction: This prepayment will reduce the company's annual interest expense by approximately $1.4 million, reflecting a strategic move to optimize financial structure and enhance future financial flexibility.
- Improved Financial Health: Cumulative repayments since December 2021 have decreased annual interest expenses by about $110 million, demonstrating significant progress in reducing financial costs, which aids in improving overall profitability.
- Portfolio Overview: As of September 30, 2025, Seritage's portfolio consists of 13 properties with approximately 1.3 million square feet of gross leasable area, showcasing the company's ongoing efforts in diversified asset management.
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Seritage Growth Properties Makes $20M Prepayment, Reducing Interest Expense
- Prepayment Action: Seritage Growth Properties has voluntarily made a $20 million prepayment towards its $1.6 billion term loan, having repaid a total of $1.55 billion since December 2021, leaving $50 million outstanding, which alleviates financial pressure on the company.
- Interest Expense Reduction: This prepayment is expected to reduce Seritage's annual interest expense by approximately $1.4 million, thereby improving cash flow and enhancing financial flexibility for future investments.
- Loan Repayment Overview: Since December 2021, cumulative repayments have led to a reduction of around $110 million in total annual interest expenses, demonstrating the company's ongoing commitment to effective debt management and financial health.
- Portfolio Status: As of September 30, 2025, Seritage's portfolio consists of 13 properties with approximately 1.3 million square feet of gross leasable area, indicating the company's sustained investment in diversified retail and mixed-use properties across the U.S.
Continue Reading