Seritage Growth Properties Reports Second Quarter 2017 Operating Results New York, NY – August 3, 2017 – Seritage Growth Properties (NYSE: SRG) (the “Company”), a national owner of 258 retail properties totaling over 40 million square feet of gross leasable area (“GLA”), today reported financial and operating results for the three and six months ended June 30, 2017. Financial Results For the three months ended June 30, 2017: Net loss attributable to common shareholders of $21.2 million, or $0.63 per diluted share Total Net Operating Income (“Total NOI”) of $44.9 million Funds from Operations (“FFO”) of $23.8 million, or $0.43 per diluted share Company FFO of $25.7 million, or $0.46 per diluted share For the six months ended June 30, 2017: Net loss attributable to common shareholders of $41.1 million, or $1.22 per diluted share Total NOI of $91.8 million FFO of $54.8 million, or $0.99 per diluted share Company FFO of $52.7 million, or $0.95 per diluted share Operating Highlights During the quarter ended June 30, 2017, including the Company’s proportional share of its unconsolidated joint ventures (“JVs”): Signed new leases totaling 598,000 square feet at an average of $18.95 PSF. Since the Company’s inception in July 2015, new leasing activity has totaled 3.4 million square feet at an average of $18.28 PSF. – Achieved releasing spreads of 3.7x for space currently or formerly occupied by Sears Holdings Corporation (“Sears Holdings”), with new rents averaging $18.99 PSF compared to $5.20 PSF paid by Sears Holdings. Since inception, releasing spreads have averaged 4.2x, with new rents at $18.29 PSF compared to $4.36 PSF paid by Sears Holdings. – Added $11.3 million of contractual third-party rental income. Third-party income has increased over 134% since inception to $103.0 million, including all signed leases. Increased annual base rent from tenants other than Sears Holdings to 44.0% of total annual base rent from 29.3% in the prior year period, including all signed leases and net of rent attributable to associated space to be recaptured. Increased annualized Total NOI by 9.2% to $228.2 million from $209.0 million in the prior year period, including all signed leases and net of rent attributable to associated space to be recaptured. Commenced 12 new redevelopment projects and expanded five previously announced projects to incorporate additional recaptured space, bringing total redevelopment activity since inception to 65 projects completed or commenced for a total estimated investment of $688.4 million. Initiated the recapture of 100% of the space at Sears stores in Aventura, FL, Dallas, TX (Valley View Center) and La Jolla, CA (Westfield UTC) in advance of commencing premier retail and mixed-use redevelopments at these prime locations. Subsequent to the quarter end, the Company completed two transactions with GGP Inc. (“GGP”) for gross consideration of $247.6 million (the “GGP Transactions”). Pursuant to the GGP Transactions, the Company (i) sold to GGP the Company’s 50% interest in eight of the 12 assets in the existing joint venture between the two companies for $190.1 million; and (ii) sold to GGP a 50% joint venture interest in five additional assets for $57.5 million. 1 As a result of the GGP Transactions, the Company reduced amounts outstanding under its mortgage loan by $50.6 million and received approximately $171.6 million of additional cash proceeds before closing costs, which it intends to use to fund its redevelopment pipeline and for general corporate purposes. “With an additional 600,000 square feet of leases signed this quarter at an average rent of $18.95 per square foot, we have now leased 3.4 million square feet across the portfolio at average spreads of over 4 times the previous rent. We ended the quarter with 44% of our income, including signed leases, derived from tenants other than Sears Holdings, up 15% from a year ago, and we remain on track to have this figure at or north of 50% by the end of 2017,” said Benjamin Schall, President and Chief Executive Officer. “We commenced an additional 12 redevelopment projects in the quarter, bringing our total to 65 projects with a projected spend of $690 million. We continue to deploy this capital at 10-12% unlevered yields on cost, unlocking significant value upon project execution. We were also pleased to close our transaction with GGP in early July, allowing us to harvest value from eight assets in our original joint venture and to generate incremental value on five new assets as part of the expanded joint venture. As we look ahead, strong demand for our portfolio is leading to a growing pipeline of opportunities, including a series of premier and mixed use redevelopments that we expect to generate substantial shareholder value.” Financial Results For the three months ended June 30, 2017: Net loss attributable to Class A and Class C shareholders was $21.2 million, or $0.63 per diluted share, as compared to a net loss of $7.1 million, or $0.23 per diluted share, for the prior year period Total NOI, which includes the Company’s proportional share of NOI from 31 properties owned through investments in its unconsolidated JVs, was $44.9 million as compared to $47.2 million for the prior year period. FFO, as calculated in accordance with the National Association of Real Estate Investment Trusts (“NAREIT”) definition, was $23.8 million, or $0.43 per diluted share, as compared to $30.2 million, or $0.54 per diluted share, for the prior year period. Company FFO was $25.8 million, or $0.46 per diluted share, as compared to $32.1 million, or $0.58 per diluted share, for the prior year period. For the six months ended June 30, 2017: Net loss attributable to Class A and Class C shareholders was $41.1 million, or $1.22 per diluted share, as compared to a net loss of $15.5 million, or $0.49 per diluted share, for the prior year period Total NOI was $91.8 million as compared to $93.7 million for the prior year period. FFO was $54.8 million, or $0.99 per diluted share, as compared to $59.7 million, or $1.07 per diluted share, for the prior year period. Company FFO was $52.7 million, or $0.95 per diluted share, as compared to $64.7 million, or $1.16 per diluted share, for the prior year period. The Company makes certain adjustments to FFO, which it refers to as Company FFO, to account for certain non-cash and non-comparable items, such as termination fee income, unrealized gain or loss on interest rate caps and amortization of deferred financing costs, that it does not believe are representative of ongoing operating results. Portfolio Summary As of June 30, 2017, the Company’s portfolio included interests in 266 retail properties totaling over 42 million square feet of gross leasable area, including 235 wholly-owned properties and 31 properties owned through investments in unconsolidated JVs. Approximately 50% of the portfolio consisted of properties attached to regional malls and approximately 50% consisted of shopping center or freestanding properties. The portfolio was 90.7% leased and included 37 properties leased only to third-party tenants, 88 properties leased to Sears Holdings and one or more third-party tenants, and 92 properties leased only to Sears Holdings. Of the properties leased to Sears Holdings, 133 operated under the Sears brand and 47 operated under the Kmart brand. Pro forma for the GGP Transactions, the Company owned interests in 258 properties totaling over 40 million square feet. 2 Development Update Wholly-Owned Properties During the quarter ended June 30, 2017, the Company commenced 12 new redevelopment projects representing an estimated total investment of approximately $139.7 million and expanded five previously announced projects to incorporate additional recaptured space for an estimated total investment of $27.5 million. In total, including projects initiated prior to the Company’s formation, the Company has completed or commenced 65 projects representing an estimated total investment of approximately $688.4 million as of June 30, 2017. The table below summarizes project commencements in the Company’s wholly-owned portfolio since inception: (in thousands) Estimated Estimated Number Project Development Project Quarter of Projects Square Feet Costs (1) Costs (1) Acquired (2) 15 $ 63,600 $ 63,600 Q4 2015 5 352 51,500 64,200 Q1 2016 5 273 50,000 50,000 Q2 2016 (3) 5 384 70,400 70,700 Q3 3016 (3) 10 1,046 113,600 120,700 Q4 2016 (3) 8 768 111,400 121,000 Q1 2017 5 589 58,500 58,500 Q2 2017 12 949 136,200 139,700 Total 65 4,361 $ 655,200 $ 688,400 (1) Total estimated development costs exclude, and total estimated project costs include, termination fees to recapture 100% of certain properties. (2) Projects were in various stages of development when acquired by the Company in July 2015. (3) Includes subsequent expansions to previously announced projects. As of June 30, 2017, the Company had originated 50 wholly-owned projects since the Company’s inception. These projects, including the five expanded projects, represent an estimated total investment of $624.8 million, of which $518.7 million remained to be spent, and are expected to generate an incremental yield on cost of 11.0-12.0%. The table below provides additional information regarding the Company’s wholly-owned development activity from inception through June 30, 2017: (in thousands) Estimated Estimated Estimated Estimated Number Project Development Project Projected Annual Income (2) Incremental Project Costs (1) of Projects Square Feet Costs (1) Costs (1) Total Existing Incremental Yield (3) < $10,000 22 1,270 $ 97,400 $ 97,400 $ 18,500 $ 4,800 $ 13,600 $10,001 - 20,000 20 2,006 266,200 286,100 43,500 12,700 30,800 > $20,000 8 1,101 228,000 241,300 37,700 9,000 28,600 New Projects 50 4,377 $ 591,600 $ 624,800 $ 99,700 $ 26,500 $ 73,000 11.0 - 12.0% Acquired projects 15 63,600 63,600 Total 65 $ 655,200 $ 688,400 (1) Total estimated development costs exclude, and total estimated project costs include, termination fees to recapture 100% of certain properties.