It has been about a month since the last earnings report for SITE CENTERS CORP. (SITC Quick QuoteSITC - Free Report) . Shares have lost about 0.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is SITE Centers Corp. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

SITE Centers Q2 OFFO Beat Estimates, Same-Store NOI Up

SITE Centers 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 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 12-month new leasing spreads for Curbline Properties, and over $50 million of debt repurchased or retired prior to maturity.”

Quarter in Detail

SITE Centers reported a leased rate of 93.2% on a pro-rata basis as of Jun 30, 2024, down from 94.2% as of March 31, 2024. The figure also compared unfavorably with the prior-year quarter’s figure of 95.5%.

The base rent per square foot was $21.98 as of June 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. 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 March 31, 2024.

Portfolio Activity

Since the beginning of the second quarter through July 30, 2024, 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; and Maple Corner in Nashville, TN, for $8.2 million. The company acquired a ground-leased parcel at Collection at Brandon Boulevard in Tampa, FL, for $1 million. It also acquired its joint venture partner's 80% interest in Meadowmont Village in Raleigh, NC, for $35.4 million.

The company disposed of 13 shopping centers and a parcel at a shopping center during the quarter for $800.7 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

VGM Scores

Currently, SITE Centers Corp. has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, SITE Centers Corp. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.