What caused the drop in SRG's EPS in Q3 2024?

The decline in Seritage Growth Properties' (SRG) EPS in Q3 2024 can be attributed to a combination of factors:

1. **Financial Reporting Weakness**: On August 14, 2023, SRG identified a "material weakness" in its internal control over financial reporting, specifically related to the impairment indicators for investments in real estate. This weakness likely contributed to the decrease in EPS as it indicates a deficiency in the company's financial management.
2. **Asset Adjustments and Impairment**: After the markets closed on May 10, 2024, SRG stated it was making adjustments to its asset values, which included reducing the value of certain real estate assets. This adjustment, along with the failure to identify potential indicators of impairment in a timely manner, led to a gross value reduction of at least $325 million in the company's portfolio. Such adjustments typically result in lower reported earnings as the asset values are written down to their estimated fair market values.
3. **Market Conditions and Strategic Decisions**: SRG is executing a Plan of Sale to divest its assets and dissolve the company. This strategic move could indicate a lack of confidence in the company's short-term profitability, which might have impacted earnings. Additionally, the company's CEO announced that he would step down, which could lead to uncertainty and negatively affect investor sentiment and, consequently, financial performance.

In summary, the drop in SRG's EPS in Q3 2024 is likely a result of a combination of financial reporting weaknesses, asset impairments, and strategic decisions. These factors, either directly or indirectly, affect the company's profitability and, ultimately, its EPS.