Yakira Capital’s Quiet Sell‑Off of Seritage Preferred Shares Signals a Shift in Investor Confidence

Insider Selling at Seritage Growth Properties Signals a Shift in Owner Confidence

Seritage Growth Properties (SRG) has seen a recent wave of selling activity from its primary investment advisor, Yakira Capital Management, Inc., which holds the majority of the company’s 7 % Series A cumulative redeemable preferred shares. On February 4 2026, Yakira sold 2,554 shares at $24.13, followed by another 1,030 shares sold the next day at $24.08. These transactions bring the firm’s stake down to just over 300,000 shares, a decline of roughly 3 % from the 304,332 shares held after the January 26 sale of 5,072 shares. While the absolute number of shares sold is modest relative to the size of the class, the timing and consistency of these sales coincide with a broader decline in SRG’s common stock, which has fallen 10.79 % month‑to‑date and 15.24 % year‑to‑date.

What Does This Mean for Investors?

The recent insider selling, coupled with the company’s weak quarterly performance and a steep drop in the preferred‑share price, could be interpreted as a warning sign for long‑term shareholders. Preferred shares are generally viewed as a lower‑risk vehicle compared to common stock; a sell‑off in this class may suggest that the primary custodian is rebalancing its portfolio or reducing exposure ahead of an anticipated price correction. For investors holding common shares, the implied sentiment could presage a period of further volatility, especially if other institutional holders follow suit. However, the lack of a dramatic price movement in the preferred shares—selling at $24.08 versus $24.13—indicates that the sales are likely strategic rather than panic‑driven.

Yakira Capital Management: A Profile of Cautious Optimism

Yakira Capital Management, Inc. is a Delaware‑based investment advisory firm that manages several funds, including Yakira Partners, L.P., Yakira Enhanced Offshore Fund Ltd., and MAP 136 Segregated Portfolio. Historically, Yakira has traded in the 7 % Series A preferred class on a relatively regular basis, often selling a few thousand shares at market‑close prices that hover near the $24 mark. The firm’s disclosures consistently note that it holds the shares on behalf of its funds, and it disclaims direct beneficial ownership for Section 16 purposes. This pattern suggests a disciplined, long‑term investment approach that seeks to balance yield with risk exposure, rather than speculative short‑term trades.

Implications for SRG’s Future Trajectory

Seritage’s core business—owning, developing, and leasing diversified real‑estate properties—has historically delivered stable, albeit modest, returns. The current market conditions, however, have pressured the company’s valuation into the lower end of its 52‑week range, potentially eroding the appeal of its preferred dividend yield. If other major holders perceive similar risks, the cumulative effect could intensify downward pressure on the stock. On the flip side, a more conservative capital structure may enable SRG to pursue opportunistic acquisitions or refinance at lower rates, which could benefit long‑term shareholders if the company can navigate the current dip and capitalize on the real‑estate cycle’s recovery.

In summary, while Yakira’s recent sales are small in scale, they align with a broader trend of declining investor confidence in SRG’s preferred shares and a weaker common‑stock performance. Investors should monitor subsequent insider activity and the company’s strategic decisions closely, as these moves may foreshadow further adjustments in the property‑asset‑class landscape.