SITE Centers (SITC) - 2025 Q1 - Quarterly Results

Earnings Release & Financial Statements This section details SITE Centers' Q1 2025 financial performance, including net income, FFO, and strategic asset dispositions Press Release and Financial Highlights SITE Centers reported a Q1 2025 net income of $3.1 million, a turnaround from a prior-year loss, with operating FFO impacted by strategic dispositions - The company completed the spin-off of Curbline Properties on October 1, 2024, now reflected as discontinued operations, significantly impacting year-over-year comparisons[11] Q1 2025 vs. Q1 2024 Key Financial Results (in millions) | Metric | Q1 2025 | Q1 2024 | Change Driver | | :--- | :--- | :--- | :--- | | Net Income (Common Shareholders) | $3.1 ($0.06/share) | -$26.3 (-$0.51/share) | Higher other property revenues, lower interest expense, absence of impairment charges | | Operating FFO (Common Shareholders) | $8.3 ($0.16/share) | $59.8 ($1.14/share) | Primarily due to Curbline spin-off, property dispositions, and lower interest income | | Pro Rata Leased Rate | 89.8% | 91.7% | N/A | - The company is actively marketing over $350.0 million in properties for sale, alongside $95.3 million under contract, indicating a continued focus on asset sales[8] - During Q1, the company executed 22 leases totaling 75,000 square feet, with cash renewal leasing spreads of 3.4% on a pro rata basis[12] Company Summary This section provides an overview of SITE Centers' portfolio, capital structure, debt, and leasing activities Portfolio Summary As of March 31, 2025, SITE Centers' portfolio comprises 33 operating centers with 5.9 million square feet pro-rata GLA and an 89.8% leased rate Quarterly Operational Overview (Pro Rata Share) | Metric | 3/31/2025 | 12/31/2024 | 3/31/2024 | | :--- | :--- | :--- | :--- | | Base Rent PSF | $19.75 | $19.64 | $19.55 | | Commenced Rate | 89.4% | 90.6% | 89.8% | | Leased Rate | 89.8% | 91.1% | 91.7% | Top 5 MSA Exposure by Pro Rata ABR | MSA | % of ABR | ABR PSF | | :--- | :--- | :--- | | 1. Chicago-Naperville-Elgin, IL-IN-WI | 14.6% | $30.58 | | 2. Trenton, NJ | 12.8% | $18.49 | | 3. Orlando-Kissimmee-Sanford, FL | 12.3% | $20.92 | | 4. Phoenix-Mesa-Chandler, AZ | 7.5% | $19.10 | | 5. Los Angeles-Long Beach-Anaheim, CA | 7.5% | $26.16 | Capital Structure and Debt Detail As of March 31, 2025, SITE Centers' market capitalization was $1.0 billion, with $332.0 million net debt and $412.8 million pro-rata debt at 6.69% weighted average interest Capital Structure Comparison (in millions) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Common Shares Equity | $673.4 | $801.7 | | Net Debt | $332.0 | $336.2 | | Total Market Capitalization | $1,005.4 | $1,137.9 | Debt Composition (SITE Share, in millions) | Rate Type | Balance (SITE Share) | Weighted Avg. Years to Maturity | Weighted Avg. Interest Rate | | :--- | :--- | :--- | :--- | | Fixed | $175.6 | 3.7 years | 6.54% | | Variable | $237.2 | 3.2 years | 6.81% | | Total | $412.8 | 3.5 years | 6.69% | Leasing Summary In Q1 2025, SITE Centers executed 22 leases for 75,491 square feet pro-rata, achieving a 3.5% combined cash leasing spread and $25.73 NER per square foot Q1 2025 Leasing Activity (Pro Rata Share) | Lease Type | Count | GLA (sq ft) | Cash Leasing Spread | Average Term (Yrs) | | :--- | :--- | :--- | :--- | :--- | | New Leases | 5 | 8,554 | 6.8% | 8.6 | | Renewals | 17 | 66,937 | 3.4% | 4.4 | | Total | 22 | 75,491 | 3.5% | 4.9 | Q1 2025 Net Effective Rents (Pro Rata Share) | Lease Type | ABR PSF | Total Capex PSF | NER PSF | | :--- | :--- | :--- | :--- | | New Leases | $36.46 | $4.93 | $31.53 | | Renewals | $25.52 | $0.06 | $25.46 | Lease Expirations The company's lease expiration schedule shows significant ABR maturities between 2026-2029, with the profile substantially extended if all lease options are exercised Lease Expirations by Year (% of Total Pro Rata ABR, No Options Exercised) | Year | % of Total ABR | | :--- | :--- | | 2025 | 3.0% | | 2026 | 9.3% | | 2027 | 17.0% | | 2028 | 15.1% | | 2029 | 15.2% | | Thereafter | 7.9% | - Assuming all lease options are exercised, only 18.1% of ABR expires through 2034, significantly extending the maturity profile[41] Top 30 Tenants The top 30 tenants account for 51.0% of pro-rata ABR, with the top five, led by TJX Companies, representing 18.1% Top 5 Tenants by Pro Rata ABR | Rank | Tenant | % of Total Pro Rata ABR | | :--- | :--- | :--- | | 1 | TJX Companies | 4.6% | | 2 | Burlington | 4.4% | | 3 | Kroger | 3.6% | | 4 | PetSmart | 3.3% | | 5 | LA Fitness | 3.2% | - The top 30 tenants occupy 3.1 million square feet, representing 52.5% of the total pro-rata owned Gross Leasable Area (GLA)[43] Unconsolidated Joint Ventures This section provides an overview of SITE Centers' unconsolidated joint ventures, including their property holdings and financial contributions Unconsolidated Joint Ventures Overview SITE Centers holds interests in 11 properties through two JVs, generating $15.7 million NOI (at 100%) and contributing $1.6 million to SITE's FFO in Q1 2025 Joint Venture Summary (in millions) | Joint Venture | SITE Own % | Number of Properties | Debt Balance (at 100%) | | :--- | :--- | :--- | :--- | | DTP (Chinese Inst. Investors) | 20% | 10 | $380.6 | | RVIP IIIB (Prudential) | 50% | 1 | $60.9 | Combined JV Financials (at 100%, in millions) | Metric | 1Q25 | 1Q24 | | :--- | :--- | :--- | | Net Operating Income | $15.7 | $16.2 | | FFO | $6.3 | $6.0 | | FFO at SITE's ownership interests | $1.6 | $1.6 | Shopping Center Summary This section provides a comprehensive list of the company's properties, detailing their locations, ownership, GLA, and key tenants Property List This section lists the company's 34 properties, detailing their locations, ownership, GLA, and key anchor tenants, serving areas with a $110,000 weighted average household income - The property list details 33 operating centers plus the headquarter office buildings[56] - Key anchor tenants include major national retailers such as TJX, Burlington, Best Buy, Dick's Sporting Goods, Kroger, and AMC Theatres[56] - The weighted average household income for the trade area within a 10-minute drive of the centers is $110,000, indicating a focus on affluent suburban communities[56] Reporting Policies and Other This section outlines SITE Centers' key accounting policies, non-GAAP measures, and detailed leasing metrics for its portfolio Notable Accounting and Supplemental Policies This section outlines key accounting policies, including the treatment of the Curbline Properties spin-off as discontinued operations and revenue recognition principles - The spin-off of 79 convenience properties into Curbline Properties is treated as a discontinued operation, representing a strategic shift[60] - For tenants where collection is not probable, the company uses the cash basis of accounting, recognizing rental income only upon receipt of payment[62] - The company capitalizes interest on funds used for construction and certain administration costs, ceasing when the property is available for occupancy[67] Non-GAAP Measures The company uses non-GAAP measures like FFO, Operating FFO, and NOI to provide investors with additional tools for assessing performance and core operations - FFO is a standard REIT performance measure that excludes historical cost depreciation and gains/losses from property sales to better reflect operational trends[70][71] - Operating FFO is a company-specific metric adjusting FFO for non-core items like transaction costs to reflect the operating portfolio's performance[72] - NOI reflects property-level income and expenses, providing an unleveraged view of operational performance without corporate-level impacts[76] Leasing Metrics for Wholly-Owned and Unconsolidated Joint Ventures at 100% This section provides detailed leasing metrics for the entire portfolio, wholly-owned properties, and unconsolidated JVs, including leased rates and expiration schedules Portfolio Summary at 100% The total portfolio (at 100%) had a 91.1% leased rate in Q1 2025, with wholly-owned at 89.4% and JVs at 93.2% Leased Rate Comparison (as of 3/31/2025) | Portfolio Segment | Leased Rate | Base Rent PSF | | :--- | :--- | :--- | | Wholly Owned SITE | 89.4% | $19.95 | | Joint Venture (100%) | 93.2% | $16.67 | | Total Portfolio (100%) | 91.1% | $18.44 | Wholly Owned Leasing Summary In Q1 2025, the wholly-owned portfolio signed 14 leases for 63,383 square feet, achieving a 3.5% combined cash leasing spread Q1 2025 Wholly Owned Leasing Activity | Lease Type | Count | GLA (sq ft) | Cash Leasing Spread | | :--- | :--- | :--- | :--- | | New Leases | 3 | 7,077 | 6.8% | | Renewals | 11 | 56,306 | 3.4% | | Total | 14 | 63,383 | 3.5% | Unconsolidated JV Leasing Summary In Q1 2025, unconsolidated JVs (at 100%) signed 8 leases for 60,537 square feet, with a 3.5% combined cash leasing spread from renewals Q1 2025 Unconsolidated JV Leasing Activity (at 100%) | Lease Type | Count | GLA (sq ft) | Cash Leasing Spread | | :--- | :--- | :--- | :--- | | New Leases | 2 | 7,384 | 0.0% (non-comparable) | | Renewals | 6 | 53,153 | 3.5% | | Total | 8 | 60,537 | 3.5% | Wholly Owned Lease Expirations Wholly-owned lease expirations (no options) show 17.3% of ABR expiring in 2027 and 15.1% in 2028, with significant concentration through 2030 Wholly Owned Lease Expirations (% of ABR, No Options) | Year | % of Total ABR | | :--- | :--- | | 2025 | 3.0% | | 2026 | 9.0% | | 2027 | 17.3% | | 2028 | 15.1% | | 2029 | 15.3% | Unconsolidated JV Lease Expirations Unconsolidated JV lease expirations (at 100%, no options) show 12.1% of ABR expiring in 2026, 15.9% in 2027, and 15.2% in 2028 Unconsolidated JV Lease Expirations (% of ABR, No Options, at 100%) | Year | % of Total ABR | | :--- | :--- | | 2025 | 3.2% | | 2026 | 12.1% | | 2027 | 15.9% | | 2028 | 15.2% | | 2029 | 14.6% |