Seritage Growth Properties said Friday that it has hired Agree
Realty Corp. executive Brian Dickman as its finance chief, rounding
out the management team for the real-estate investment trust
recently spun off from Sears Holdings Corp.
Mr. Dickman, who has also been appointed executive vice
president, is expected to join the company on Aug. 17. Prior to
serving as Agree Realty's chief financial officer, Mr. Dickman was
an investment banker focusing on REITs at RBC Capital Markets and
held similar positions at Lehman Brothers and Barclays PLC.
Seritage's shares began trading on the New York Stock Exchange
on Monday and have gained about 3.6% through Thursday's close. On
Tuesday, Seritage completed its purchase of 235 properties and more
than 30 joint-venture interests from Sears. Seritage will lease
back all but 11 of the properties to Sears.
Sears said last year that it was exploring spinning off some of
its top Sears and Kmart properties into a REIT as it sought to
raise much-needed cash.
REITs were created by Congress decades ago as a way to let
ordinary Americans buy shares in skyscrapers or shopping malls just
as they could buy stock in a company or mutual fund. The basic
rules are simple: REITs have to have most of their assets and
income tied to real estate, and they pay no tax on income
distributed to their shareholders as long as they pay out at least
90% as dividends.
Meanwhile, Sears's business has continued to deteriorate. The
retailer has been slashing costs and selling off assets to bolster
its cash position in the face of declining sales and shopper
traffic. Earlier this year, some of its suppliers demanded tougher
payment terms over concerns about the retailer's access to
cash.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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