SITE Centers (SITC) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter net loss attributable to common shareholders was $6.2 million, or $0.13 per diluted share, compared to net income of $320.2 million, or $6.07 per diluted share, in the year-ago period[10] - Operating funds from operations attributable to common shareholders ("Operating FFO") was $5.6 million, or $0.11 per diluted share, compared to $42.8 million, or $0.81 per diluted share, in the year-ago period[10] - Rental income for Q3 2025 was $24,203,000, a decrease of 59.3% compared to $59,441,000 in Q3 2024[23] - Net operating income (NOI) for Q3 2025 was $15,128,000, down 62.5% from $40,270,000 in Q3 2024[23] - The company reported a net loss attributable to common shareholders of $6,158,000 in Q3 2025, compared to a net income of $320,164,000 in Q3 2024[25] - FFO (Funds from Operations) attributable to common shareholders was $3,639,000 in Q3 2025, compared to a loss of $13,495,000 in Q3 2024[25] - Operating FFO per share was $0.11 for Q3 2025, down from $0.82 in Q3 2024[25] - Common stock dividends declared per share were $3.25 in Q3 2025, compared to $0.00 in Q3 2024[25] Asset and Liability Management - The total assets decreased to $653,955,000 in Q3 2025 from $933,602,000 in Q4 2024, reflecting a decline of 30%[27] - Total liabilities decreased to $345,669,000 in Q3 2025 from $416,858,000 in Q4 2024, a reduction of 17%[27] - The company reported a net debt of $207.7 million, down from $336.2 million, reflecting a 38.1% decrease[34] - Cash balance increased to $128,234,000 in Q3 2025 from $54,595,000 in Q4 2024, an increase of 134%[27] Property Transactions and Leases - The company sold seven properties for an aggregate price of $380.9 million year to date[7] - The company has properties under contract for sale valued at over $292 million, with buyers' due diligence conditions expired[7] - The company has agreed to sell East Hanover Plaza, Southmont Plaza, and Stow Community Center for an aggregate price of $126.0 million, with closing expected in Q4 2025[18] - Executed six new leases and 23 renewals for 237,000 square feet during the quarter[10] - The company completed a strategic spin-off of Curbline Properties on October 1, 2024, which is now reflected as discontinued operations[64] Leasing and Occupancy - Reported a leased rate of 87.6% at September 30, 2025, down from 91.1% at December 31, 2024[10] - The average occupancy rate across properties was 87.6% as of September 30, 2025[60] - The leased rate stands at 87.6%, down from 91.3% a year ago, representing a decline of 3.7 percentage points[29] - The company has a total of 151 leases with an average rent of $14.79 per square foot, with 425 leases under 10,000 square feet[42] Impairments and Charges - Recorded impairments of $106.6 million due to changes in the hold period assumptions for five wholly-owned assets[10] - The company recorded impairment charges of $106,570,000 in Q3 2025, compared to $66,600,000 in the same period last year[25] Market Capitalization and Share Value - The market value per share decreased to $9.01 from $15.29 over the past year, a decline of 41.5%[34] - Total market capitalization has decreased to $680.2 million from $1.14 billion, a reduction of 40.3%[34] Future Projections and Strategy - The company anticipates continued market expansion and strategic acquisitions in the upcoming quarters[46] - The overall strategy includes focusing on lease renewals and potential market expansions to enhance revenue streams[97] - The company expects to maintain a consistent growth in ABR across the years, with significant contributions from leases expiring in the coming years[97] Joint Ventures and Additional Properties - The company has a total of 11 joint venture properties, with an average owned percentage of 20%[49] - The joint ventures have a total GLA of 3,755, with a net operating income (NOI) of $14,081 at 100%[49] - The debt balance for the joint ventures stands at $440,992, with mortgage debt at $103,688[49] Rental Income and Revenue - Rental income for the third quarter includes minimum rents of $3,377 and recoveries of $1,144[53] - The company reported a net income loss attributable to unconsolidated joint ventures of $(1,639,000) in Q3 2025, compared to a gain of $985,000 in Q3 2024[57] - Total revenues for 9M 2025 decreased to $61,099,000 from $62,667,000 in 9M 2024, reflecting a year-over-year decline of approximately 2.5%[57]