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SITE Centers (SITC) Q2 OFFO Beat Estimates, Stock Rises

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Shares of SITE Centers Corp. (SITC - Free Report) 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 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 - Free Report) and Regency Centers (REG - Free Report) , 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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