Top 5 Holdings
2010: 1. SHC 3.55B 2. Autozone $3.06B 3. Autonation $1.75B 4. Capital One $313M 5. Citigroup $167M
2015: 1. SHC $450M 2. Autonation $405M 3. Land's End $157M 4. Sears Canada $134M 5. Gap $105M
2018: 1. Autonation: $128M 2. Land's End $80.2M 3. Seritage $11.0M 4. Sears Hometown $10.1M
2019: 1. Autonation: $116M 2. Land's End $76M 3. Seritage: $9.7M
LOL. It's even worse than that. Seritage is only leasing at $16 per square foot lately. Four years in, and it's a money loser that doesn't even pay dividends. Literally the worst run REIT in America. Another Eddie production [tm]
Seritage is renting out at $18 psf, much below what was hoped, and it hasn't been improving. They've been renting out their best properties too, and following the 80/20 rule it's only going down from there. The lease rate has been a disaster, remediation costs high, and like Sears EBITDA, Seritage likes to look at FFO and pretend like operating expenses won't rise and the interest expenses on those billion dollar loans don't exist, that the loan covenants won't trigger, and the secular market for those properties isn't cratering due to end of the bull market headwinds, which is why it's suffering massive net losses just like every other business Eddie has ever touched. Like Sears, Eddie doesn't seem to understand that properties where you don't invest in upkeep depreciate just that much faster, losing value until you reach a tipping point where it's completely worthless. Eddie doesn't understand how to execute a plan that extracts long term value from capital, never has, never will. Any time horizon longer than a couple of years will only end in investor tears.
Seritage now has more properties, and leases with stronger retailers than Kmart/Sears, so they're a better company since all they do is collect rent from places like At Home, Home Depot, and the like