SITE Centers (US:SITC)2024-07-31 20:05Financial Performance - For the six months ended June 30, 2024, net income attributable to common shareholders was $209.1 million, a significant increase from $15.1 million in the prior year[57]. - Net income attributable to SITE Centers for the three months ended June 30, 2024, was $238.2 million, a significant increase of $232.9 million compared to $5.4 million in the same period of 2023[80]. - Net income attributable to SITE Centers for the six months ended June 30, 2024, was $214.7 million, compared to $20.6 million for the same period in 2023[95]. - Total expenses from operations for the six months ended June 30, 2024, were $246.7 million, an increase of $23.3 million from $223.4 million in the same period of 2023[73]. - The Company recorded impairment charges of $66.6 million for the six months ended June 30, 2024, due to changes in hold period assumptions[74]. Funds From Operations (FFO) - The Company reported Funds From Operations (FFO) attributable to common shareholders of $92.1 million for the six months ended June 30, 2024, compared to $119.4 million in the same period of 2023[57]. - FFO attributable to common shareholders for the three months ended June 30, 2024, was $40.177 million, a decrease of $17.342 million from $57.519 million in the same period of 2023[88]. - Operating FFO attributable to common shareholders for the six months ended June 30, 2024, was $115.684 million, down $8.339 million from $124.023 million in the prior year[88]. - The decrease in FFO for the six months ended June 30, 2024, was primarily due to net property dispositions and a write-off of $9.3 million in fees related to a $1.1 billion Mortgage Facility commitment[88]. Property and Leasing Activity - As of June 30, 2024, the Company owned approximately 17.9 million square feet of gross leasable area (GLA) across 112 shopping centers, including 11 through unconsolidated joint ventures[57]. - The Company leased approximately 1.8 million square feet of GLA, including 37 new leases and 156 renewals, during the six months ended June 30, 2024[66]. - The aggregate occupancy of the Company's operating shopping center portfolio was 90.9% at June 30, 2024, down from 92.3% at June 30, 2023[66]. - The Company had approximately $34 million in construction in progress for various active redevelopments and anticipates an additional $5 million yet to be incurred[123]. - As of June 30, 2024, the Company executed new leases and renewals totaling approximately 1.4 million square feet, indicating strong retailer demand[131]. Debt and Financing - A financing commitment for a $1.1 billion mortgage facility was obtained, with the committed amount reduced to $554.8 million as of June 30, 2024, due to the release of collateral properties[59]. - The weighted-average debt outstanding was $1.6 billion with a weighted-average interest rate of 4.5% for the six months ended June 30, 2024, compared to $1.8 billion and 4.4% in 2023[77]. - The Company had total consolidated debt outstanding of $1.5 billion as of June 30, 2024, down from $1.6 billion at December 31, 2023[98]. - The Company has $400.4 million in senior notes maturing in 2025, with plans to fund repayment through cash on hand, asset sales, and additional financing[128]. - The Company plans to use retained cash flow and proceeds from asset sales to repay indebtedness and fund capital expenditures[143]. Asset Sales and Spin-off Plans - The Company plans to spin off its convenience assets into a separate publicly traded REIT named Curbline Properties Corp., expected to be completed around October 1, 2024[58]. - The Company generated approximately $1.8 billion of gross proceeds from sales of properties from July 1, 2023, to July 26, 2024[61]. - The Company sold 15 wholly-owned shopping centers in 2024, contributing to significant gains from dispositions[80]. - The Company plans to sell additional assets post-separation of Curbline to repay outstanding indebtedness and redeem preferred stock, contingent on market conditions[136]. Cash Flow and Dividends - As of June 30, 2024, the Company reported cash flow provided by operating activities of $106.4 million, a decrease of $20.4 million compared to $126.8 million in the same period of 2023[109]. - Cash flow provided by investing activities increased significantly by $839.0 million, primarily due to an increase in proceeds from the disposition of real estate and joint ventures of $843.6 million[110]. - The Company declared common and preferred cash dividends totaling $60.3 million for the six months ended June 30, 2024, maintaining a similar level compared to $60.2 million in 2023[111]. Market and Economic Conditions - The Company faces risks from inflation, rising interest rates, and changing consumer behaviors that could impact tenant performance and leasing activity[135]. - The Company is subject to financial covenants that, if violated, could lead to higher finance costs or accelerated maturities[127]. - The Company must make distributions to shareholders to maintain its REIT status, which could require borrowing funds under unfavorable terms[140]. Environmental and Governance Considerations - The Company faces potential liabilities and increased costs due to environmental, social, and governance initiatives[141].