DISTRESSED DAILY: Seritage Drops REIT Status As It Weighs Sales

Seritage Growth Properties, the real estate investment trust that bought Sears and Kmart properties in 2015, is giving up its REIT status as it weighs options including a sale.

The move is part of a larger strategic review the company announced last month, which also saw Edward Lampert step down from his role as chairman. The company said its advisers recommended Seritage become a C corporation retroactively as of Jan. 1 to help maximize the value of its assets.

Experts not involved in Seritage’s review said the change gives the company the flexibility to invest beyond real estate and ...