Why These 15 Real Estate Stocks Are Plunging In 2025

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5. Seritage Growth Properties (NYSE:SRG)

Number of Hedge Fund Holders In Q4 2024: 22

Seritage Growth Properties (NYSE:SRG) is a REIT that focuses on retail and mixed-use properties.

The stock is down significantly so far in 2025 due to Seritage amending its Senior Secured Term Loan Agreement with Berkshire Hathaway Life Insurance Company of Nebraska late last year.

This will allow the company to extend the maturity date by one year from the end of July 2025 to the end of July 2026. This will require a 2% fee on the outstanding principal amount at the original maturity date, so investors are spooked about earnings.

Furthermore, the company has been selling off properties as part of its Plan of Sale. This is expected to reduce debt, but it will also diminish future revenue-generating assets.

For example, the company posted $33.7 million in gross proceeds from two vacant property sales in 2024. However, investors are concerned about the shrinking portfolio and whether or not these sales are enough to cover debt and make sense long-term.

SRG stock is down 16.50% year-to-date.

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