Yakira Capital Gradually Offloads 7% of Seritage Preferred Shares in a Calm, Risk‑Managed Exit

Insider Selling Builds on a Pattern of Caution

Across the past month, Yakira Capital Management, Inc. has steadily trimmed its stake in Seritage Growth Properties’ 7 % Series A cumulative redeemable preferred shares. The most recent sale on Feb. 23 involved 7,375 shares at $23.95, reducing its holdings to 286,993 shares—roughly 7 % of the outstanding preferred class. This follows a chain of earlier sales beginning in late January, with a cumulative reduction of about 10 % of the company’s preferred shares. The consistent, incremental divestiture signals a cautious reassessment rather than a panic sale, especially given the company’s ongoing real‑estate redevelopment focus.

What It Means for Investors

The timing of these transactions—amid a 5.65 % weekly decline and a 14.49 % monthly slide—aligns with broader market pressure on diversified REITs. Yakira’s selling may be interpreted as a risk‑management move: by reducing exposure to the preferred class, the firm preserves capital while maintaining a smaller, potentially more defensible position. For the market, such insider activity often triggers a modest sell‑pressure ripple, reflected in the slight 0.01 % drop in the stock price on the trade date. However, the absence of a sharp price reaction and the low social‑media buzz (0 %) suggest limited impact on investor sentiment.

Yakira Capital Management’s Profile

Yakira Capital Management, a Delaware‑based investment advisory firm, routinely manages three entities—Yakira Partners, L.P., Yakira Enhanced Offshore Fund Ltd., and MAP 136 Segregated Portfolio—each holding portions of Seritage’s preferred shares. Historically, Yakira has favored a gradual, systematic sell‑off: between Jan. 26 and Feb. 23, the firm liquidated 18,492 shares, lowering its ownership from 304,332 to 286,993 shares. The average sale price hovered around $24.10, indicating a stable valuation perspective. This pattern reflects a disciplined approach to portfolio rebalancing, prioritizing liquidity and risk mitigation over speculative positioning.

Implications for Seritage’s Future

Seritage’s core business—redeveloping high‑traffic retail spaces—remains under pressure from evolving consumer habits and competitive leasing environments. The preferred shares’ cumulative redeemable feature provides a cushion for creditors and investors, but the current negative earnings and price‑to‑earnings ratio of –2.15 highlight ongoing profitability challenges. Yakira’s measured selling may signal confidence that the company’s strategic initiatives will eventually unlock value, yet it also underscores the need for stronger cash flows and a clearer path to positive earnings. Investors watching for a turnaround should monitor Seritage’s lease renewal activity, capital‑expenditure plans, and any forthcoming dividend or redemption announcements.

Bottom Line

Yakira Capital Management’s continued divestiture of Seritage Growth Properties’ preferred shares illustrates a prudent, phased exit strategy amid a volatile real‑estate market. While the immediate market impact is muted, the transactions reinforce the narrative that the company’s financial performance and strategic execution will be pivotal for future investor confidence.