Seritage Growth Properties · NYSE:SRG
Seritage Growth Properties — Investor Presentation (November 2019)
33 slides from Seritage Growth Properties's investor presentation, November 2019
Slide 1: Corporate Profile November 2019
C O R P O R AT E P R O F I L E NOVEMBER 2019
Slide 2: Forward-Looking Statements
F O R WA R D - This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters L O O K I
Slide 3: Company Overview
COMPANY OVERVIE my
Slide 4: Stability, Redevelopment, Growth
Stability Diversified income: 90% of rental income, on a signed lease basis, is derived from diversified, non-Sears tenants Strong financial position: Over $680 million of liquidity, including cash on hand and committed capital SERITAGE GROWTH Redevelopment PROPERTIES Proven redevelopment strategy:
Slide 5: Company Overview
MISSION PORTFOLIO Create and own revitalized shopping, dining, entertainment 217 PROPERTIES and mixed-use destinations that provide enriched 34.4M SQUARE FEET experiences for consumers and local communities, and that 2,800 ACRES generate long-term value for our shareholders 44 STATES INVESTMENT HIGH
Slide 6: Highly Desirable Real Estate
H I G H LY D E S I R A B L E R EA L E S TAT E Largest concentrations of asset value in high growth markets | Diverse real estate: 114 properties attached to regional malls and 103 freestanding or shopping center properties | Strong demographics: average population density of 651,000 and average hous
Slide 7: Business Update
L E A S I N G (1) 9,613,000 Square feet of new leases signed $18.46 4.1x Average rent PSF, new retail leases (2) Average re-leasing multiple, same-space basis DEVELOPMENT 104 Redevelopment projects, BUSINESS completed or commenced UPDATE 10-11% ~$1.7 Billion Projected unlevered returns Total project
Slide 8: Value Creation Through Redevelopment
VALUE CREATION THROUGH REDEVELOPMENT Creating significant shareholder value through redevelopment of high-quality portfolio | Projected incremental income of over $168 million drives potential gross value creation of approximately $2.8 billion across 84 redevelopment projects originated on the Serit
Slide 9: Portfolio Composition
PORTFOLIO COMPOSITION Breadth of value creation opportunities and robust pipeline of remaining projects PREMIER & LARGER SCALE S U B U R B A N R E TA I L SMALLER MARKET 36 assets 157 assets 24 assets 7.4 million SF 24.8 million SF 2.4 million SF Strategy: redevelop retail and densify with Strategy:
Slide 10: Leasing & Development
LEASING & DEVELOPMENT a enn ee Te oe
Slide 11: Leasing Activity
LEASING ACTIVITY Consistent re-leasing spreads of 3.5x to 4.5x prior rents LEASING VOLUME SF thousands 1,000 29 25 31 23 43 372 new 933 28 800 891 872 853 878 signed leases 28 21 28 760 600 14 22 15 598 601 603 543 535 20 29 400 9.6 million 422 7 391 365 200 9 total SF 214 154 0 Q4 2015 Q1 2016 Q2 2
Slide 12: Alignment with Growing Retailers
ALIGNMENT Entertainment, Food & Beverage WITH 36% GROWING RETAILERS Everyday Uses 17% Leasing activity driven by Other 10% strong demand from growing retailers in expanding retail sectors Specialty Retail Home 16% 10% Value Fashion 11% Note: reflects percentage of annual base rent from leases signed
Slide 13: Development Activity
DEVELOPMENT ACTIVITY Consistent projected returns of 10-12% on incremental capital A N N O U N C E D C A P I TA L S P E N D I N G & P R O J E C T E D R E T U R N S (1)(2) $ millions 11.2% 13.8% 10.7% 8.9% 13.5% 10.4% 9.7% 10.1% 9.9% 10.6% 11.5% 10.9% 11.2% 11.2% 13.9% 9.6% 10-11% projected $200.0 re
Slide 14: Retail Redevelopment
RETAIL REDEVELOPMENT Creating first-class shopping centers occupied by a diverse set of growing retailers
Slide 15: Plantation, FL
BEFOR E BEFOR E P L A N TAT I O N , F L 100% recapture; redevelop existing store and auto center for GameTime, Powerhouse Gym, Whiskey Cake, Lazy Dog, YOLO, additional retail and restaurants PROJECT SUMMARY Status: Underway Total Project Square Feet: 184,400 Construction Start: Q3 2018 Estimated Sub
Slide 16: North Miami, FL
BEFORE BEFORE NORTH MIAMI, FL 100% recapture; redevelop existing store for Burlington Stores, Michael's and Ross Dress for Less to join existing tenant, Aldi PROJECT SUMMARY Status: Underway Total Project Square Feet: 124,300 Construction Start: Q3 2017 Estimated Substantial Completion: Q2 2020 P.11
Slide 17: Austin, TX
BEFOR E BEFOR E AUSTIN, TX 100% recapture; redevelop existing store for AMC Theatres, additional retail and restaurants PROJECT SUMMARY Status: Delivered to Tenants Total Project Square Feet: 53,900 Construction Start: Q2 2018 Estimated Substantial Completion: Q4 2019 P.12
Slide 18: Anchorage, AK
BEFOR E ANCHORAGE, AK 100% recapture, redevelop existing store for Safeway, Planet Fitness, Guitar Center and additional retail to join current tenant, Nordstrom Rack PROJECT SUMMARY Status: Delivered to Tenants Total Project Square Feet: 142,500 Construction Start: Q2 2018 Substantial Completion: Q
Slide 19: Watchung, NJ
BEFOR E WATCHUNG,NJ 100% recapture; demolish existing full-line store and detached auto center and redevelop for Homegoods, Sierra Trading Post, Ulta, Cinemark, additional retail and restaurants PROJECT SU MMARY Status: Substantially Complete Total Project Square Feet: 126,700 Construction Start: Q1
Slide 20: West Hartford, CT
BEFORE BEFORE WEST HARTFORD, CT 100% recapture; redevelop existing store and detached auto center for buybuyBaby, Cost Plus World Market, REI, Saks OFF Fifth, Shake Shack and additional retail PROJECT SUMMARY Status: Substantially Complete Total Project Square Feet: 147,600 Construction Start: Q1 20
Slide 21: Hialeah, FL
BB EE FF O O RR EE HIALEAH, FL 100% recapture; redevelop existing store for Bed, Bath & Beyond, Ross Dress for Less and dd’s Discount to join current tenant Aldi PROJECT SUMMARY Status: Complete Total Project Square Feet: 88,400 Construction Start: Q3 2017 Substantial Completion: Q2 2019 P.16
Slide 22: St. Petersburg, FL
BEFORE ST. PETERSBURG, FL 100% recapture; demolish existing full-line store for Dick’s Sporting Goods, Lucky’s Market, PetSmart, Chili’s, Verizon, Macaroni Grill, Pollo Tropical, Longhorn, additional retail and restaurants PROJECT SUMMARY Status: Complete Total Project Square Feet: 142,400 Construct
Slide 23: Large Scale and Mixed-Use Development
Regional Mall King of Prussia, PA LARGE SCALE AND MIXED-USE DEVELOPMENT Opportunities to increase density and combine retail with residential, office and hotel development
Slide 24: Premier Projects Execution
E S P L A N A D E AT AV E N T U R A ( A v e n t u r a , F L ) Demolish existing store and construct new, multi-level open air retail destination featuring a leading collection of experiential shopping, dining and entertainment concepts alongside a treelined esplanade and activated plazas PREMIER PRO
Slide 25: Large Scale and Mixed-Use Projects
H E R I TA G E PA R K I N O V E R L A K E ( R e d m o n d , WA ) | 14-acre master-planned redevelopment in the heart of Redmond, WA | Master plan recently approved for over one million square of LARGE residential, retail and office development SCALE AND MIXED-USE PA R K H E R I TA G E ( D a l l a s
Slide 26: Financial Information
F I N A N C I A L I N F O R M AT I O N
Slide 27: Retenanting Economics
RETENANTING ECONOMICS Rental uplift driven by redevelopment allows the Company to replace lost Sears or Kmart revenue by activating only a portion of the space once occupied by Sears or Kmart | Since inception in July 2015, over 27.0 million square feet of leased space and over $115.0 million of ann
Slide 28: Asset Monetization
ACTIVITY TO DATE | Realize partial value creation plus future upside through significant retained interest S T R AT E G I C | Establish relationships with large, 50% interests in 10 assets EQUITY JOINT institutional capital allocators $185 million VENTURES gross proceeds | Representative transaction
Slide 29: Financial Position
C A P I TA L S T R U C T U R E LIQUIDITY SUMMARY $ millions (in millions) Total Market Capitalization: $4,500 $4.1 billion Cash $232.3 Incremental Funding Facility(2) 400.0 $3,600 Assets under contract for sale(3) 50.1 Total Debt $1.6 billion Total Liquidity $683.3 FINANCIAL $2,700 Preferred Equity
Slide 30: Management & Platform
M A N AG E M E N T & P L AT F O R M
Slide 31: Corporate Responsibility
CORPORATE RESPONSIBILITY Committed to Environmental, Social and Governance practices that serve our shareholders, our team and our communities INTENSIVE REDEVELOPMENT ACTIVE PROPERTY MANAGEMENT • Over 100 projects completed or commenced • Smart irrigation systems and landscape design representing $1
Slide 32: Fully Integrated Real Estate Platform
F U L LY I N T EG R AT E D R EA L E S TAT E P L AT F R O M Expertise unlocking real estate value through redevelopment and retenanting. | Experienced team of 90+ full-time | Management team with extensive public | Established relationships with leasing development, construction, leasing, legal, comp
Slide 33: Contact Information
500 Fifth Avenue | New York, NY 10110 212-355-7800 | www.seritage.com
Seritage Growth Properties — Investor Presentation (November 2019) on 6ix