Seritage Growth Properties Reports Second Quarter 2026 Operating Results

NEW YORK, August 14, 2026--Seritage Growth Properties (NYSE: SRG) (the "Company"), a national owner and developer of retail, residential and mixed-use properties today reported financial and operating results for the three and six months ended June 30, 2026.

"We were pleased to close on the refinancing of the term loan facility which should allow us additional flexibility to execute sales at appropriate pricing and timing to help maximize value for our shareholders while we continue our efforts on the plan of sale. Additionally, we continue to explore the possibility of a strategic transaction as we simplify our portfolio," said Adam Metz, CEO & President.

Q2 Sale Highlights:

• Generated gross proceeds of $11.0 million from the sale of one vacant/non-income producing asset.

• Subsequent to June 30, 2026, generated $3.0 million in gross proceeds from the sale of one vacant/non-income producing asset and received a distribution of $8.9 million from an unconsolidated entity as a result of the sale of a portion of the underlying property.

• As previously disclosed, the Company has entered into an option purchase and sale agreement (the "PSA") to sell one vacant non-income producing premier asset in Dallas, Texas for anticipated gross proceeds of $50.8 million before applicable credits and costs. The sale is subject to customary closing conditions and is also cross-conditioned and cross-defaulted with an option purchase and sale agreement between the buyer and unaffiliated owners of a neighboring parcel. The buyer made an initial option payment of $169,200, then (i) commencing on July 1, 2026, and each month thereafter that the PSA remains in effect through December 1, 2026, the Company shall receive an option payment equal to $126,900 and (ii) commencing on January 1, 2027, and each month thereafter that the PSA remains in effect through January 1, 2028, the Company shall receive an option payment equal to $274,950. All option payments are incremental to the purchase price and are non-refundable except as otherwise provided for in the PSA. There can be no assurances that the buyer will exercise the option to purchase the property.

Financial Highlights:

For the three and six months ended June 30, 2026:

• As of June 30, 2026, the Company had cash on hand of $62.9 million, including $14.4 million of restricted cash. As of August 14, 2026, the Company has cash on hand of $48.6 million, including $32.7 million of restricted cash, and $10.0 million of availability under its revolving loan facility discussed below.

• During the three and six months ended June 30, 2026, the Company invested $0.8 million and $0.9 million, respectively, in its consolidated properties and $0.1 million and $2.5 million, respectively, in its unconsolidated properties.

• During the three and six months ended June 30, 2026, the Company received distributions of $1.4 million and $8.8 million, respectively, from its unconsolidated properties.

• The Company did not recognize any impairment charges on its consolidated properties for the three months ended June 30, 2026. The Company recognized an impairment charge of $15.2 million on one of its consolidated properties during the six months ended June 30, 2026.

• During the three months ended June 30, 2026, the Company did not record any other-than-temporary impairment losses on its unconsolidated entities. The Company recorded an other-than-temporary impairment loss of $5.2 million on one of its unconsolidated entities during the six months ended June 30, 2026.

• Net loss attributable to common shareholders of ($7.4) million, or ($0.13) per share and ($38.9) million, or ($0.69) per share, for the three and six months ended June 30, 2026, respectively.

• Subsequent to June 30, 2026, the Company entered into a new $15.0 million term loan facility and a $25.0 million revolving loan facility. At closing, the Company drew $15.0 million under the revolving loan facility, leaving $10.0 million available for future borrowings. The Company used a combination of the proceeds from the closing of the new loans together with cash on hand to fully repay the $50.0 million outstanding balance on the Term Loan Facility.