SITE Centers (US:SITC)2025-11-05 21:31Financial Performance - For the three months ended September 30, 2025, the Company reported a net loss attributable to common shareholders of $6.158 million, compared to a net income of $320.164 million for the same period in 2024 [75]. - The total revenues for the nine months ended September 30, 2025, were $103.193 million, a decrease of $139.374 million compared to $242.567 million for the same period in 2024 [84]. - For the nine months ended September 30, 2025, net income attributable to common shareholders was $43.4 million, down $485.8 million from $529.3 million in 2024 [89]. - For the three months ended September 30, 2025, the company reported an operating loss of $137.0 million, a significant increase of $77.2 million compared to the same period in 2024 [85]. - The company recorded impairment charges of $106.6 million for the nine months ended September 30, 2025, compared to $66.6 million in the prior year, reflecting a $39.9 million increase [85]. Revenue and Occupancy - The aggregate occupancy rate of the Company's operating shopping center portfolio was 86.7% at September 30, 2025, down from 90.6% at December 31, 2024 [82]. - For the nine months ended September 30, 2025, the Company reported a decrease in base and percentage rental income of $107.324 million primarily due to the disposition of shopping centers [84]. - Recoveries from tenants for the nine months ended September 30, 2025, were approximately 68.6% of operating expenses, down from 82.3% in 2024, primarily due to transactional activity [86]. Dividends and Shareholder Returns - The Company declared special cash dividends of $1.50 and $3.25 per common share in June and August 2025, respectively, and announced an additional special cash dividend of $1.00 per common share to be paid in November 2025 [82]. - The Company declared special cash dividends totaling $250.3 million during the nine months ended September 30, 2025 [113]. - The Company repurchased 0.5 million common shares at an aggregate cost of approximately $26.6 million under its share repurchase program [116]. Debt and Financing - The weighted-average debt outstanding decreased from $1.3 billion in 2024 to $0.3 billion in 2025, with a weighted-average interest rate increasing from 5.2% to 6.1% [87]. - As of September 30, 2025, the Company had $251.3 million in consolidated indebtedness, with a mortgage facility secured by 10 assets [106]. - The Company has no consolidated debt maturing in 2025 and expects to fund future maturities from cash on hand, asset sales, and cash flow from operations [130]. - The Company may seek additional debt financings or asset sales to manage its balance sheet and repay upcoming maturities [127]. - The Company's fixed-rate debt as of September 30, 2025, amounts to $97.5 million with a weighted average interest rate of 6.7% [144]. - The Company's variable-rate debt as of September 30, 2025, is $151.2 million with a weighted average interest rate of 6.9% [144]. Asset Management and Sales - The Company generated approximately $3.1 billion in gross proceeds from property sales from July 1, 2023, to December 31, 2024, to fund acquisitions and repay debt [76]. - The company sold six wholly-owned shopping centers in 2025, compared to 40 shopping centers sold in 2024, indicating a strategic shift in asset management [90]. - The Company has entered into agreements to sell five properties for an aggregate sales price of approximately $292.1 million, with expected closing in Q4 2025 [120]. - From January 1, 2025, to November 5, 2025, the Company sold wholly-owned shopping centers for a total sales price of $380.9 million [122]. Operational Costs and Expenses - Cash flow provided by operating activities decreased by $115.1 million to $28.084 million for the nine months ended September 30, 2025 [112]. - The company experienced a decrease in general and administrative expenses for the nine months ended September 30, 2025, primarily due to the transfer of employees to Curbline during the spin-off [85]. - The Company anticipates approximately $28.4 million in costs to complete redevelopment projects at properties owned by Curbline [108]. - The Company had approximately $4.4 million in construction in progress for various active re-tenanting projects as of September 30, 2025 [123]. Market and Economic Conditions - The Company is subject to risks from changing economic conditions, including inflation and interest rate fluctuations, which could impact retail sales and tenant performance [138]. - The Company benefits from a diversified tenant base, with only five tenants accounting for 3% or more of the Company's annualized base rent [137]. - A 100 basis-point increase in short-term market interest rates on variable-rate debt would result in an increase in interest expense of approximately $1.1 million for the nine months ended September 30, 2025 [144]. - The fair value of the Company's fixed-rate debt would increase to $102.2 million with a 100 basis-point increase in market interest rates as of September 30, 2025 [147]. Regulatory and Compliance Issues - The Company is subject to complex regulations related to its status as a REIT, which could be adversely affected if it fails to qualify as a REIT [143]. - The Company may incur additional expenses to comply with or respond to claims under the Americans with Disabilities Act or changes in government regulations [146]. - The Company’s exposure to increases in interest rates could rise if it incurs additional variable-rate indebtedness in a rising interest rate environment [145]. - The Company and its joint ventures intend to actively manage interest costs on their variable-rate debt portfolio [148].