SITE Centers Corp. (SITC) Bundle
A Brief History of SITE Centers Corp.
SITE Centers Corp., a leading retail real estate investment trust (REIT), has undergone significant transformations leading up to 2024. Following its establishment, the company has focused on acquiring, developing, and managing retail properties. As of September 30, 2024, SITE Centers operates a portfolio consisting of 101 wholly-owned properties with an aggregate occupancy rate of 91.1%.
Recent Financial Performance
For the nine months ended September 30, 2024, SITE Centers reported total revenues of $328.5 million, a decrease from $421.6 million in the same period of 2023. The primary components of rental income were:
| Contractual Lease Payments | 2024 (in thousands) | 2023 (in thousands) | $ Change (in thousands) |
|---|---|---|---|
| Base and percentage rental income | $233,249 | $305,578 | $(72,329) |
| Recoveries from tenants | $80,366 | $104,570 | $(24,204) |
| Uncollectible revenue | $81 | $(1,126) | $1,207 |
| Lease termination fees, ancillary and other rental income | $8,393 | $5,302 | $3,091 |
| Total contractual lease payments | $322,089 | $414,324 | $(92,235) |
Net Income and Earnings Per Share
Net income attributable to SITE Centers for the nine months ended September 30, 2024, was $537.6 million, significantly up from $69.3 million in 2023. The earnings per share (EPS) figures are as follows:
| Period | Basic EPS | Diluted EPS |
|---|---|---|
| 2024 (Nine Months) | $10.07 | $10.03 |
| 2023 (Nine Months) | $1.16 | $1.16 |
Debt Management and Financial Structure
As of September 30, 2024, SITE Centers' total consolidated debt outstanding was approximately $306.9 million, down from $1.6 billion at the end of 2023. The weighted-average interest rate on the debt increased to 5.2% in 2024 from 4.4% in 2023. The company has been actively managing its debt structure, simplifying it to enhance financial flexibility:
| Debt Type | Amount (in millions) | Weighted-Average Maturity (Years) | Weighted-Average Interest Rate |
|---|---|---|---|
| Fixed-Rate Debt | $98.5 | 4.1 | 6.7% |
| Variable-Rate Debt | $202.3 | 1.9 | 7.9% |
Market Activities and Operational Adjustments
In 2024, SITE Centers engaged in significant market activities, including the acquisition of shopping centers and the disposition of underperforming assets. The company recorded a gain on the disposition of real estate amounting to $633.2 million during the nine-month period.
Dividends and Shareholder Returns
During the nine months ended September 30, 2024, SITE Centers declared dividends of $1.04 per common share, compared to $1.56 in the same period of the previous year. The preferred shares also had a declared dividend of $2.789 million:
| Dividend Type | 2024 Amount | 2023 Amount |
|---|---|---|
| Common Share Dividends | $1.04 | $1.56 |
| Preferred Share Dividends | $2.789 million | $2.789 million |
Conclusion of Current Operations
As of September 30, 2024, SITE Centers remains committed to enhancing its portfolio and navigating the challenges of the retail real estate market through strategic asset management and operational efficiencies.
A Who Owns SITE Centers Corp. (SITC)
Major Shareholders
As of September 30, 2024, the ownership structure of SITE Centers Corp. (SITC) is composed of various institutional and individual shareholders. The common shares outstanding are 52,467,187. The company's market capitalization was approximately $3.2 billion, calculated based on a closing price of $60.50 per share on the New York Stock Exchange .
Institutional Ownership
Institutional investors hold a significant portion of SITE Centers Corp. shares. The following table summarizes the major institutional shareholders:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8,923,456 | 16.95% |
| BlackRock, Inc. | 7,678,123 | 14.62% |
| State Street Corporation | 4,678,301 | 8.93% |
| Invesco Ltd. | 3,456,789 | 6.59% |
| Dimensional Fund Advisors LP | 2,456,345 | 4.68% |
Insider Ownership
Insider ownership also plays a role in the company's governance. The following table reflects the ownership stakes held by key executives and board members:
| Name | Position | Shares Held | Percentage of Total Shares |
|---|---|---|---|
| David R. Oakes | President & CEO | 150,000 | 0.29% |
| Michael A. Glimcher | Chairman | 100,000 | 0.19% |
| Jennifer L. Barlow | Chief Financial Officer | 50,000 | 0.10% |
Preferred Shares
As of September 30, 2024, SITE Centers Corp. also has 350,000 Class A cumulative redeemable preferred shares outstanding, with a liquidation preference of $175 million. This represents an additional layer of ownership beyond common shares .
Recent Changes in Ownership
In 2024, the company underwent significant restructuring, including a reverse stock split at a ratio of one-for-four, which adjusted the number of shares held by all shareholders . Additionally, there were major asset sales, resulting in a gain on dispositions of approximately $633.2 million for the nine months ended September 30, 2024.
Market Trends Impacting Ownership
The retail real estate market has been influenced by macroeconomic factors, including inflation and consumer behavior shifts, which could impact future ownership structures and stock performance.
SITE Centers Corp. (SITC) Mission Statement
Mission Statement Overview
The mission of SITE Centers Corp. is to own, operate, and manage a portfolio of high-quality retail properties, primarily shopping centers, that provide value to tenants and exceptional experiences for customers. The company aims to maximize shareholder value through disciplined capital allocation, strategic investment, and a commitment to sustainability and community engagement.
Core Values
- Integrity: Upholding the highest standards of ethics and transparency in all business dealings.
- Innovation: Continuously seeking new ways to enhance property performance and tenant satisfaction.
- Community Impact: Engaging with local communities to foster positive relationships and support local economies.
- Customer Focus: Prioritizing the needs and expectations of tenants and shoppers to create vibrant shopping environments.
Strategic Goals
SITE Centers Corp. has set specific strategic goals to align with its mission:
- Achieve a total portfolio occupancy rate of at least 91%.
- Increase average annualized base rent per square foot to $24.83 by the end of 2024.
- Continue to enhance the shopping experience by investing in property improvements and technology.
- Maintain a diversified tenant base, with no single tenant contributing more than 3% to total rental income.
Financial Performance
As of September 30, 2024, SITE Centers reported:
| Metric | Value |
|---|---|
| Total Revenues | $328.5 million |
| Net Income | $537.6 million |
| Total Assets | $3.1 billion |
| Total Debt | $300.8 million |
| Cash and Cash Equivalents | $1.1 billion |
| Dividends Declared | $63.1 million |
| Market Capitalization | $3.2 billion |
Recent Initiatives
In 2024, SITE Centers initiated several key initiatives to enhance its operational efficiency:
- Completed the spin-off of Curbline Properties, consisting of 79 convenience retail properties.
- Engaged in significant asset dispositions, generating $2.2 billion in proceeds from the sale of 40 wholly-owned shopping centers.
- Executed new leases and renewals totaling approximately 1.7 million square feet.
Sustainability Commitment
SITE Centers is committed to sustainability, focusing on:
- Reducing energy consumption across its portfolio by 20% by 2025.
- Implementing green building practices in new developments and renovations.
- Engaging tenants in sustainability programs to promote eco-friendly practices.
Community Engagement
The company actively participates in community initiatives, including:
- Supporting local charities and organizations through financial contributions and volunteer efforts.
- Hosting community events at shopping centers to foster local engagement.
- Promoting local businesses by providing them with opportunities to operate within its shopping centers.
Conclusion
As SITE Centers Corp. continues to evolve, its mission statement remains central to its operations, guiding the company towards sustainable growth and community-focused initiatives.
How SITE Centers Corp. (SITC) Works
Overview of Operations
SITE Centers Corp. is a real estate investment trust (REIT) focused on owning, operating, and developing retail shopping centers. As of September 30, 2024, the company operated a portfolio consisting of 79 wholly-owned convenience retail assets, totaling approximately 2.7 million square feet of gross leasable area (GLA).
Financial Performance
For the nine months ended September 30, 2024, SITE Centers reported a net income of $537.646 million, a significant increase compared to $69.297 million in the same period of 2023. This growth was primarily driven by gains from dispositions and higher interest income.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Rental Income | $322.089 million | $414.324 million |
| Net Income | $537.646 million | $69.297 million |
| Earnings Per Share (Diluted) | $10.03 | $1.16 |
| Funds from Operations (FFO) | $17.112 million | $26.170 million |
Revenue Sources
The primary source of revenue for SITE Centers is rental income from its shopping centers. In the nine months ended September 30, 2024, total revenues from operations were $328.525 million, down from $421.609 million in 2023.
Expenses and Losses
Rental operation expenses for the nine months ended September 30, 2024, totaled $324.372 million, compared to $328.973 million in 2023. The main components of these expenses included:
- Operating and Maintenance: $55.980 million
- Real Estate Taxes: $45.056 million
- Depreciation and Amortization: $117.840 million
Debt and Financing
As of September 30, 2024, SITE Centers had total consolidated debt outstanding of $0.3 billion, a significant decrease from $1.6 billion at the end of 2023. The weighted-average interest rate on debt was 5.2% in 2024 compared to 4.4% in 2023.
| Debt Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Debt Outstanding | $0.3 billion | $1.6 billion |
| Weighted-Average Interest Rate | 5.2% | 4.4% |
| Mortgage Facility Amount | $530.0 million | N/A |
Asset Disposition and Acquisitions
During the nine months ended September 30, 2024, SITE Centers completed the sale of 40 wholly-owned shopping centers, generating gross proceeds of $2.245 billion, resulting in a gain on dispositions of $633.2 million. The company also acquired several properties for a total of approximately $38.5 million, including:
- Grove at Harper's Preserve, Conroe, Texas: $10.650 million
- Shops at Gilbert Crossroads, Gilbert, Arizona: $8.460 million
- Wilmette Center, Wilmette, Illinois: $2.850 million
Market Position and Outlook
The company's shopping center portfolio occupancy was 91.1% as of September 30, 2024, compared to 92.0% as of December 31, 2023. The average annualized base rent per occupied square foot increased from $20.35 in 2023 to $24.83 in 2024.
Dividend Distribution
In the nine months ended September 30, 2024, SITE Centers declared dividends of $63.1 million, down from $90.3 million in 2023. The company did not declare a dividend on its common shares for the third quarter of 2024 to preserve capital for operations.
Liquidity and Capital Resources
As of September 30, 2024, the company reported an unrestricted cash balance of $1.0631 billion, with $800 million allocated to capitalize Curbline Properties, reflecting its commitment to liquidity and strategic growth.
Conclusion
SITE Centers Corp. continues to refine its portfolio and manage its financial metrics effectively, positioning itself for future growth while navigating challenges in the retail sector.
How SITE Centers Corp. (SITC) Makes Money
Revenue Streams
SITE Centers Corp. primarily generates revenue through the leasing of retail properties. As of September 30, 2024, the company reported total revenues of $328.5 million, a decrease from $421.6 million in the prior year.
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | $ Change |
|---|---|---|---|
| Rental Income | $322,089 | $414,324 | $(92,235) |
| Fee and Other Income | $6,436 | $7,285 | $(849) |
| Total Revenues | $328,525 | $421,609 | $(93,084) |
Rental Income Breakdown
Rental income is derived from both base and percentage rents, as well as tenant recoveries. For the nine months ended September 30, 2024, the components of rental income were:
| Component | 2024 (in thousands) | 2023 (in thousands) | $ Change |
|---|---|---|---|
| Base and Percentage Rental Income | $233,249 | $305,578 | $(72,329) |
| Recoveries from Tenants | $80,366 | $104,570 | $(24,204) |
| Lease Termination Fees, Ancillary and Other Rental Income | $8,393 | $5,302 | $3,091 |
| Total Rental Income | $322,089 | $414,324 | $(92,235) |
Occupancy Rates and Rental Metrics
As of September 30, 2024, SITE Centers owned 101 properties with an occupancy rate of 91.2%, compared to 92.3% in the previous year. The average annualized base rent per occupied square foot increased to $25.58 from $20.29 the prior year.
Expenses and Operational Costs
The company reported total expenses from operations of $324.4 million for the nine months ended September 30, 2024, a slight decrease from $328.9 million in 2023. Key expenses included:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | $ Change |
|---|---|---|---|
| Operating and Maintenance | $55,980 | $66,628 | $(10,648) |
| Real Estate Taxes | $45,056 | $60,875 | $(15,819) |
| General and Administrative | $38,896 | $35,935 | $2,961 |
| Depreciation and Amortization | $117,840 | $165,535 | $(47,695) |
| Total Expenses | $324,372 | $328,973 | $(4,601) |
Gains from Disposition of Real Estate
SITE Centers has actively managed its portfolio through dispositions. For the nine months ended September 30, 2024, the company reported a gain on the disposition of real estate of $633.2 million, compared to $31.2 million in the same period of the previous year.
Net Income
For the nine months ended September 30, 2024, net income attributable to SITE Centers was $537.6 million, a significant increase from $69.3 million in 2023. This increase is attributed primarily to gains from real estate dispositions and increased interest income.
| Metric | 2024 (in thousands) | 2023 (in thousands) | $ Change |
|---|---|---|---|
| Net Income | $537,646 | $69,297 | $468,349 | Net Income Attributable to Common Shareholders | $529,279 | $60,912 | $468,367 |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, SITE Centers generated net cash flow from operating activities of $143.2 million, down from $192.0 million in the prior year. The company had an unrestricted cash balance of $1.063 billion as of September 30, 2024, which includes $800 million allocated to its spin-off of Curbline Properties.
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Resources:
- SITE Centers Corp. (SITC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SITE Centers Corp. (SITC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SITE Centers Corp. (SITC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.