SITE Centers (SITC) Q2 OFFO Beat Estimates, Stock Rises
Shares of SITE Centers Corp. SITC rose 2.63% in the Jul 30 regular trading session on the NYSE after it reported second-quarter 2024 operating funds from operations (OFFO) per share of 27 cents, which beat the Zacks Consensus Estimate of 24 cents.
The results reflected a rise in base rent per square foot and same-store net operating income (NOI).
SITE Centers generated revenues of $114.1 million, which missed the Zacks Consensus Estimate of $114.7 million.
On a year-over-year basis, the top line declined 16.3% and OFFO per share fell 6.9%.
Per David R. Lukes, president and CEO of SITC, “The planned spin-off of Curbline Properties remains on track with further progress in the second quarter across all fronts highlighted by nearly $1 billion of quarterly transactions, 24% trailing twelve month new leasing spreads for Curbline Properties, and over $50 million of debt repurchased or retired prior to maturity.”
Quarter in Detail
SITC reported a leased rate of 93.2% on a pro-rata basis as of Jun 30, 2024, down from 94.2% as of Mar 31, 2024. The figure compared unfavorably with the prior-year quarter’s figure of 95.5%.
The base rent per square foot was $21.98 as of Jun 30, 2024, up from $19.89 recorded a year ago.
SITE Centers, on a pro-rata basis, generated cash new and cash renewal leasing spreads of 44.2% and 9.1%, respectively, in the second quarter.
Moreover, the same-store NOI improved 0.8% from the prior-year quarter’s level on a pro-rata basis.
SITE Centers exited the second quarter with $1.18 billion of cash, up from $551.3 million as of Mar 31, 2023.
Portfolio Activity
During the second quarter and the third quarter to date, SITC has acquired six convenience shopping centers and a ground-leased parcel of land for $56 million.
These included Red Mountain Corner in Phoenix, AZ, for $2.1 million; Sunrise Plaza in Vero Beach, FL, for $5.5 million; Roswell Market Center in Atlanta, GA, for $17.8 million; Wilmette Center in Chicago for $2.9 million; Crocker Commons in Cleveland, OH, for $18.5 million; Maple Corner in Nashville, TN, for $8.2 million; and a ground-leased parcel at Collection at Brandon Boulevard in Tampa, FL, for $1.0 million. It also acquired its joint venture partner's 80% interest in Meadowmont Village in Raleigh, NC, for $35.4 million.
The company disposed 13 shopping centers and a parcel at shopping center during the quarter for $800.7 million.
SITE Centers currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SITE CENTERS CORP. Price, Consensus and EPS Surprise
SITE CENTERS CORP. price-consensus-eps-surprise-chart | SITE CENTERS CORP. Quote
Upcoming Earnings Releases
We now look forward to the earnings release of other retail REITs like Federal Realty Investment Trust FRT and Regency Centers REG, slated to report on Aug 1.
The Zacks Consensus Estimate for Federal Realty’s second-quarter 2024 FFO per share is pegged at $1.68, suggesting a marginal year-over-year increase. FRT currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Regency Center’s second-quarter 2024 FFO per share is pegged at $1.02, implying a marginal year-over-year decrease. REG currently carries a Zacks Rank #2 (Buy).
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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