realassetsvalue Posted January 19, 2021 Share Posted January 19, 2021 Would also be very interested to hear what he has to say. Also wanted to see what people think of the Dec 23 8-K - paying out retention bonuses to key executives: "On December 23, 2020, the Compensation Committee of the Board of Trustees of Seritage Growth Properties (the “Company”) awarded retention bonuses to certain personnel including Ken Lombard, Matthew Fernand, Amanda Lombard, Mary Rottler, James Bry, and Andrew Galvin in the amount of $215,000, $215,000, $215,000, $195,000, $195,000, and $195,000, respectively (the “Retention Bonuses”). The Retention Bonuses will become payable as long as the recipient continues employment with the Company through December 31, 2021 (the “Retention Date”). In the event that, prior to the Retention Date, (i) the recipient’s employment is terminated by the Company without Cause (as defined in the recipient’s employment offer letter (the “Offer Letter”)), or (ii) the recipient resigns for Good Reason (as defined in the recipient’s Offer Letter), the Retention Bonus will become payable as an additional component of the severance payments and benefits to which the recipient is entitled pursuant to his or her Offer Letter under those termination events. If the recipient’s employment is terminated for any reason other than those described above, the recipient will forfeit all rights to receive any portion of the Retention Bonus." I suppose a positive that they are keeping these people in place for at least another year but does this imply that they were looking to get out the door? Link to comment Share on other sites More sharing options...
rogermunibond Posted January 19, 2021 Share Posted January 19, 2021 https://www.wsj.com/articles/developers-want-malls-to-become-warehouses-or-offices-it-is-a-slog-11611061201 Mall redevelopments getting tougher Link to comment Share on other sites More sharing options...
RadMan24 Posted January 19, 2021 Share Posted January 19, 2021 Would also be very interested to hear what he has to say. Also wanted to see what people think of the Dec 23 8-K - paying out retention bonuses to key executives: "On December 23, 2020, the Compensation Committee of the Board of Trustees of Seritage Growth Properties (the “Company”) awarded retention bonuses to certain personnel including Ken Lombard, Matthew Fernand, Amanda Lombard, Mary Rottler, James Bry, and Andrew Galvin in the amount of $215,000, $215,000, $215,000, $195,000, $195,000, and $195,000, respectively (the “Retention Bonuses”). The Retention Bonuses will become payable as long as the recipient continues employment with the Company through December 31, 2021 (the “Retention Date”). In the event that, prior to the Retention Date, (i) the recipient’s employment is terminated by the Company without Cause (as defined in the recipient’s employment offer letter (the “Offer Letter”)), or (ii) the recipient resigns for Good Reason (as defined in the recipient’s Offer Letter), the Retention Bonus will become payable as an additional component of the severance payments and benefits to which the recipient is entitled pursuant to his or her Offer Letter under those termination events. If the recipient’s employment is terminated for any reason other than those described above, the recipient will forfeit all rights to receive any portion of the Retention Bonus." I suppose a positive that they are keeping these people in place for at least another year but does this imply that they were looking to get out the door? $200k --- "hey stick around, we're going to bring in a new CEO, or hire internally, whichever, and things will start to improve as we exit into the post covid world. " It might make some of the executives a little expensive for others to take if they wanted to leave and compensate for lost compensation. Some of these guys make $1.1 million to $750k a year (others that aren't NEOs, maybe a little less), with the retention bonus equating to about a year's worth of annual bonuses. Seems to be more of a safety valve to provide some anxiety relief, but it's not going to stop someone who really wants to leave Link to comment Share on other sites More sharing options...
WneverLOSE Posted January 19, 2021 Share Posted January 19, 2021 This sounds like bonuses with extra steps 8) What can go wrong adding bonuses when the business is suffering and signaling employs the leverage is in their hands for the next salary negotiations ::) Link to comment Share on other sites More sharing options...
golonginvestor Posted January 19, 2021 Share Posted January 19, 2021 Would also be very interested to hear what he has to say. Also wanted to see what people think of the Dec 23 8-K - paying out retention bonuses to key executives: "On December 23, 2020, the Compensation Committee of the Board of Trustees of Seritage Growth Properties (the “Company”) awarded retention bonuses to certain personnel including Ken Lombard, Matthew Fernand, Amanda Lombard, Mary Rottler, James Bry, and Andrew Galvin in the amount of $215,000, $215,000, $215,000, $195,000, $195,000, and $195,000, respectively (the “Retention Bonuses”). The Retention Bonuses will become payable as long as the recipient continues employment with the Company through December 31, 2021 (the “Retention Date”). In the event that, prior to the Retention Date, (i) the recipient’s employment is terminated by the Company without Cause (as defined in the recipient’s employment offer letter (the “Offer Letter”)), or (ii) the recipient resigns for Good Reason (as defined in the recipient’s Offer Letter), the Retention Bonus will become payable as an additional component of the severance payments and benefits to which the recipient is entitled pursuant to his or her Offer Letter under those termination events. If the recipient’s employment is terminated for any reason other than those described above, the recipient will forfeit all rights to receive any portion of the Retention Bonus." I suppose a positive that they are keeping these people in place for at least another year but does this imply that they were looking to get out the door? If stock award was part of these folks compensation package, the value of that would have gone down significantly. Possibly these bonuses are to compensate for this factor. Also, are as their CEO/CFO have left to other companies they probably don't want further senior management to be poached. Link to comment Share on other sites More sharing options...
shamelesscloner Posted January 19, 2021 Share Posted January 19, 2021 If I am not wrong, yesterday Guy Spier spoke about SRG at MOI Global best ideas 2021. Does anyone have a replay of it? might give some more insights.. I saw that too! Working on getting access to a replay... Link to comment Share on other sites More sharing options...
BG2008 Posted January 20, 2021 Share Posted January 20, 2021 Phil Town is dumping shares of SRG according to latest FB live Q&A, for all you Rule One fans ;) https://fb.watch/31C3cbcnay/ (SRG bit starts at 34:15) While most here appear to be postulating that Schall left for a better compensation package, Town thinks he may have been removed by Berkshire. Who is Phil Town and why is it important? Link to comment Share on other sites More sharing options...
shamelesscloner Posted January 20, 2021 Share Posted January 20, 2021 Phil Town is dumping shares of SRG according to latest FB live Q&A, for all you Rule One fans ;) https://fb.watch/31C3cbcnay/ (SRG bit starts at 34:15) While most here appear to be postulating that Schall left for a better compensation package, Town thinks he may have been removed by Berkshire. Who is Phil Town and why is it important? Phil Town teaches value investing to the masses in a way that's not intimidating for newbies, and it's really not important. Link to comment Share on other sites More sharing options...
valuepickr Posted January 22, 2021 Share Posted January 22, 2021 Here is the great insight by Abhishek on SRG . https://coffeewithabhishek.wordpress.com/2020/12/18/seritage-growth-properties-low-risk-high-uncertainty/ Link to comment Share on other sites More sharing options...
stahleyp Posted January 24, 2021 Share Posted January 24, 2021 Phil Town is dumping shares of SRG according to latest FB live Q&A, for all you Rule One fans ;) https://fb.watch/31C3cbcnay/ (SRG bit starts at 34:15) While most here appear to be postulating that Schall left for a better compensation package, Town thinks he may have been removed by Berkshire. Who is Phil Town and why is it important? Phil Town teaches value investing to the masses in a way that's not intimidating for newbies, and it's really not important. And...doesn't bother sharing his own performance. ::) Link to comment Share on other sites More sharing options...
valuepickr Posted January 25, 2021 Share Posted January 25, 2021 If I am not wrong, yesterday Guy Spier spoke about SRG at MOI Global best ideas 2021. Does anyone have a replay of it? might give some more insights.. I saw that too! Working on getting access to a replay... Did you get chance to get Access of this ? Link to comment Share on other sites More sharing options...
shamelesscloner Posted January 25, 2021 Share Posted January 25, 2021 If I am not wrong, yesterday Guy Spier spoke about SRG at MOI Global best ideas 2021. Does anyone have a replay of it? might give some more insights.. I saw that too! Working on getting access to a replay... Did you get chance to get Access of this ? Yes John was kind enough to give me access, and it was a fantastic talk by Guy Link to comment Share on other sites More sharing options...
balaparavi Posted January 26, 2021 Share Posted January 26, 2021 @Shamelesscloner Would you mind summarizing what Guy Spier shared on SRG and CARE Ratings (I heard he touched upon this business which is listed in India) in MOI? Thank you in advance! Link to comment Share on other sites More sharing options...
valuepickr Posted January 26, 2021 Share Posted January 26, 2021 If I am not wrong, yesterday Guy Spier spoke about SRG at MOI Global best ideas 2021. Does anyone have a replay of it? might give some more insights.. I saw that too! Working on getting access to a replay... Did you get chance to get Access of this ? Yes John was kind enough to give me access, and it was a fantastic talk by Guy Would you like to summarize with larger community? Link to comment Share on other sites More sharing options...
scorpioncapital Posted January 26, 2021 Share Posted January 26, 2021 Is the levered return of development at seritage calculated by taking a hypothetical return of say 10% on total real estate investments (~2.5 billion) and dividing that by the current price or nav including the OP units? e.g 10% of 2.5 billion is 250m. Divide that into appx 900 market cap (since nav = market cap right now at ~16/share) for a return of 28% on purchase price? Or do you have to substract the interest on the debt for approximately 17-18% levered return after debt payment. At the moment it is quite high at 7% so I assume they think they can make good money even with this cost of capital. does interest rate re-rate lower if a company becomes more solid over time? I can't imagine rents not being higher in 10 years but interest cost could still be around 7% since it is already 7% in an environment of 0% interest rate so as inflation or rates move up, I imagine the upward adjustment in financing cost for companies like srg would be non-existent since it is already pre-funded at that higher rate. Link to comment Share on other sites More sharing options...
kaioji Posted January 26, 2021 Share Posted January 26, 2021 Guy Spier's talk from MOI Global: SRG provides 2020 updates: http://ir.seritage.com/news/news-details/2021/Seritage-Growth-Properties-Provides-2020-Update/default.aspx My thoughts on 2020 updates: https://investingjourney.mn.co/posts/my-thoughts-on-srgs-2020-update Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted January 26, 2021 Share Posted January 26, 2021 Per today's 8-K, pro forma annual rent including SNO leases is $150.6 million In Q4 2015 the equivalent number was $202.9 million I get that all the SHLD leases are now gone, but that is far from rapid progress. Link to comment Share on other sites More sharing options...
cjwilson Posted January 26, 2021 Share Posted January 26, 2021 @Shamelesscloner Would you mind summarizing what Guy Spier shared on SRG and CARE Ratings (I heard he touched upon this business which is listed in India) in MOI? Thank you in advance! John Mihaljevic has made the talk with Guy Spier public on SoundCloud. It's a great interview. Enjoy! @Shamelesscloner thanks for urging MOI to share the good word of Guy Spier. ;) https://soundcloud.com/moiglobal/guy-spier-care-ratings-seritage-growth-properties/s-RsoQRCOnFGj?fbclid=IwAR06LPaYBUTAa8ektFiQ05A4ShqLBpl4CrXzSRV-M-eiWGn8S87TEcbR8Ww Link to comment Share on other sites More sharing options...
shamelesscloner Posted January 26, 2021 Share Posted January 26, 2021 @Shamelesscloner Would you mind summarizing what Guy Spier shared on SRG and CARE Ratings (I heard he touched upon this business which is listed in India) in MOI? Thank you in advance! John Mihaljevic has made the talk with Guy Spier public on SoundCloud. It's a great interview. Enjoy! @Shamelesscloner thanks for urging MOI to share the good word of Guy Spier. ;) https://soundcloud.com/moiglobal/guy-spier-care-ratings-seritage-growth-properties/s-RsoQRCOnFGj?fbclid=IwAR06LPaYBUTAa8ektFiQ05A4ShqLBpl4CrXzSRV-M-eiWGn8S87TEcbR8Ww Kudos to John and Guy for opening it up! My biggest takeaway... only a handful of properties account for 95% of the investment thesis. Pareto would be proud ;) Link to comment Share on other sites More sharing options...
RadMan24 Posted January 27, 2021 Share Posted January 27, 2021 Per today's 8-K, pro forma annual rent including SNO leases is $150.6 million In Q4 2015 the equivalent number was $202.9 million I get that all the SHLD leases are now gone, but that is far from rapid progress. Have you heard of COVID-19? Link to comment Share on other sites More sharing options...
thepupil Posted January 27, 2021 Share Posted January 27, 2021 Cmon Radman, when are you gonna lose the hostility? Ya gotta be swimming in GME and SRG tendies right now! The tendieman has come and rewarded your portfolio. Be happy! SRG run rate rental income/NOI heading in the wrong direction from 3Q, but it appears to me they actually de-levered a teensy bit last Q and may have even generated a little cash from the asset sales (rather than completely burning them). I’ve never been more tempted buy just from the short interest alone, but am holding back. Link to comment Share on other sites More sharing options...
RadMan24 Posted January 27, 2021 Share Posted January 27, 2021 Cmon Radman, when are you gonna lose the hostility? Ya gotta be swimming in GME and SRG tendies right now! The tendieman has come and rewarded your portfolio. Be happy! SRG run rate rental income/NOI heading in the wrong direction from 3Q, but it appears to me they actually de-levered a teensy bit last Q and may have even generated a little cash from the asset sales (rather than completely burning them). I’ve never been more tempted buy just from the short interest alone, but am holding back. That wasn't hostile! It's just direct. Everyone on this board knows why those SNO leases are down. It ain't just b/c all the SHLD leases are gone... Link to comment Share on other sites More sharing options...
thepupil Posted January 27, 2021 Share Posted January 27, 2021 perhaps hostile is the wrong word. in my view to dismiss the declines in run rate revenue/NOI because of covid may not be the correct thing to do. but hey, scoreboard, SRG is SuRG-ing and that's all that matters! Link to comment Share on other sites More sharing options...
michitche95 Posted January 27, 2021 Share Posted January 27, 2021 what's going on?! SRG at $22, a short squeeze? Link to comment Share on other sites More sharing options...
MattR Posted January 27, 2021 Share Posted January 27, 2021 what's going on?! SRG at $22, a short squeeze? Some hedge fonds need to liquidate their short positions due to GME rising so high. Link to comment Share on other sites More sharing options...
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