Yahoo Finance SITE Centers (SITC) Stock Declines Despite Q1 OFFO Beat
Shares of SITE Centers Corp. SITC lost 1.46% in the Apr 30 regular trading session on the NYSE after it reported first-quarter 2024 operating funds from operations (OFFO) per share of 28 cents, which beat the Zacks Consensus Estimate of 24 cents.
Results reflected better-than-anticipated revenues on a rise in base rent per square foot and same-store net operating income (NOI).
SITE Centers generated revenues of $120.6 million in the reported quarter, outpacing the Zacks Consensus Estimate of $119.6 million.
On a year-over-year basis, the top line declined 11.8% and OFFO per share fell 6.7%.
Per David R. Lukes, president and CEO of SITC, “SITE Centers made additional progress on the announced planned spin-off of the Company’s Convenience assets in the first quarter highlighted by $189 million of year-to-date transaction activity and remains on track to form and scale what is expected to be the first public real estate company focused exclusively on Convenience properties.”
Quarter in Detail
SITC reported a leased rate of 94.2% on a pro-rata basis as of Mar 31, 2024, down from 94.5% as of Dec 31, 2023. The figure compared unfavorably with the prior-year quarter’s tally of 95.9%.
The base rent per square foot was $20.69 as of Mar 31, 2024, improving from $19.65 recorded a year ago.
SITE Centers, on a pro-rata basis, generated cash new and cash renewal leasing spreads of 11.5% and 8%, respectively, in the first quarter.
Moreover, the same-store NOI improved 1.5% on a pro-rata basis in the reported quarter from the prior-year quarter.
SITE Centers exited the first quarter of 2024 with $551.3 million of cash, down from $552 million as of Dec 31, 2023.
Portfolio Activity
In the first quarter, SITC acquired two convenience shopping centers for $19.1 million. These included Grove at Harper's Preserve in Houston, TX, for $10.6 million and Shops at Gilbert Crossroads in Phoenix, AX, for $8.5 million.
The company disposed of three wholly-owned shopping centers during the quarter for $119.4 million.
SITE Centers currently carries a Zacks Rank #5 (Strong Sell).
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 releases of other retail REITs like Federal Realty Investment Trust FRT and Regency Centers REG, which are slated to report on May 2.
The Zacks Consensus Estimate for Federal Realty’s first-quarter 2024 FFO per share is pegged at $1.65, suggesting a year-over-year increase of 3.8%. FRT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Regency Center’s first-quarter 2024 FFO per share is pegged at $1.03, implying a year-over-year decrease of 4.6%. REG currently carries a Zacks Rank #3.
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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