Why Seritage Growth Stock Rocketed 16% at the Open on May 8
Shares of real estate investment trust (REIT) Seritage Growth Properties (NYSE: SRG) moved sharply higher as trading began on May 8, gaining 16% in the first half hour of the day. The company had reported earnings the night before, and the report was obviously well received. After the quick jump, the stock gave back some of the gain, with the advance hovering around 10% by 10 a.m. Wall Street time.
If you look only at the headline numbers from Seritage's earnings results, the big stock gain doesn't make much sense. The REIT posted negative funds from operations (FFO), which is comparable to earnings for an industrial company, of $0.31 per share for the first quarter of 2020. Moreover, it was able to collect only 47% of its April rents. Those are not good numbers, and they help explain why Seritage isn't currently paying a dividend. However, some positive information was hidden underneath those figures.
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Source Fool.com
