SITE Centers Corp. Reports Significant Financial Developments in Latest 10-Q Filing

SITE Centers Corp. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company had 52,430,161 shares of common stock outstanding, with a par value of $0.10 per share.

As of September 30, 2024, total real estate assets netted $1.857 billion, a substantial decrease from $3.261 billion at the end of 2023. This decline is attributed to the spin-off of 79 convenience retail properties into Curbline Properties Corp. on October 1, 2024. Cash and cash equivalents increased to $1.063 billion from $552 million, while total liabilities dropped to $475 million from $1.886 billion, reflecting the repayment of significant debt. Total equity rose to $2.652 billion from $2.176 billion.

For the three months ended September 30, 2024, rental income was $89.0 million, down from $142.5 million in the same period of 2023. However, interest income increased to $14.0 million, compared to none in the prior year. The company reported a loss before earnings from equity method investments of $45.3 million, contrasting with a profit of $17.3 million in 2023. Notably, income before tax expense surged to $323.2 million from $48.9 million, leading to net income attributable to SITE Centers of $323.0 million, a significant increase from $48.6 million in the previous year. Basic earnings per share rose to $6.09 from $0.87.

For the nine months ended September 30, 2024, total revenues were $328.5 million, down from $421.6 million in 2023. The decrease in revenue was primarily due to property dispositions, which resulted in a $72.3 million reduction in rental income. The company recorded impairment charges of $66.6 million during this period.

Strategically, SITE Centers completed the spin-off of Curbline Properties, transferring $800 million in cash and assets. The company also executed a reverse stock split at a ratio of one-for-four in anticipation of the spin-off. In terms of debt management, SITE Centers repaid all outstanding senior unsecured indebtedness and closed a $530 million mortgage facility, significantly reducing its total debt from $1.626 billion at the end of 2023 to $300.8 million by September 30, 2024.

The company’s portfolio consisted of 112 shopping centers, with an occupancy rate of 91.1%, down from 92.0% at the end of 2023. The average annualized base rent per square foot increased to $24.83, up from $20.35 at the end of 2023. The company anticipates a decrease in rental income and net income in future periods due to the spin-off and recent property dispositions.