Why Seritage Growth Properties Stock Plunged 11% at the Open Today
Shares of real estate investment trust (REIT) Seritage Growth Properties (NYSE: SRG) dropped sharply out of the gate on Dec. 11, falling just over 11% in the first few minutes of trading. The big story, however, came out after the close on Dec. 10. Investors were clearly displeased.
Seritage Growth was created by Sears Holdings as a way for the troubled retailer to monetize its property holdings. From the start, the REIT's goal was to redevelop its portfolio and find replacements for struggling Sears and Kmart stores. It had been executing that plan reasonably well given the circumstances, but the coronavirus put a wrench in the works in 2020. With store closures and retail bankruptcies on the rise, Seritage's future has gotten more complicated.
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Source Fool.com
