SERITAGE GROWTH PROPERTIES: The Future of Commercial Real Estate? Part 2 | #130

Seritage Growth Properties is a fully integrated REIT and owner of 195 properties totaling over 30 million square feet across 44 states and Puerto Rico. The company has great investors, including Warren Buffett, Guy Spier, Mohnish Pabrai, and Phil Town.

In this podcast, we invited Abhishek Shete, who is an active member of the Value Investor Chatter Slack Community, to discuss SRG. He has been working for a construction company in the US for past 5 years but have always been fond of learning about businesses. Inspired by Charlie Munger, Warren Buffet and Mohnish Pabrai, he is looking for an opportunity in this field on professional level. He loves constructive feedback so feel free to reach out to him on twitter handle - @abhishekshete15. If you would like to read more on Abhishek's analysis of SRG, here is a link to his blog: https://coffeewithabhishek.wordpress.com

(0:00) Introduction & About Abhishek 

(2:54) SRG Thesis Summary 

(4:04) Health of Their Balance Sheet 

(7:15) Owned by the Greats (Warren, Guy Spier, Mohnish Pabrai, and Phil Town) 

(8:50) Poor Cash Flow & Bear Case 

(15:50) Management Incentive Structure

(18:09) How do they handle excess capital? 

(19:06) Is management open and honest? CEO and CFO Departure

(22:13) SRG Valuation and Valuation Thesis 

(29:51) How to reach out to Abhishek?

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