Seritage Growth Properties (SRG)

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The Argument for SRG:

"In an investor presentation last month, Seritage noted that Sears pays deeply discounted rental rates of only $4.45 per square foot. If it can get another retailer to occupy the space instead, it's able to realize rates of anywhere from $13 to $18 per square foot.

Currently, though, Sears occupies 84% of the square footage Seritage leases, yet because its rents are so low, it accounts for only 60% of the annual rent the REIT collects. That's better than when it first started: Third party tenants only accounted for 20% of the rent. On some level, there could be the hope that Sears goes bankrupt so it can convert more real estate to profitable usage."

https://www.fool.com/investing/2017/07/17/investors-are-betting-big-against-seritage-growth.aspx