SITE Centers Reports First Quarter 2025 Results

BEACHWOOD, Ohio--(BUSINESS WIRE)-- SITE Centers Corp. (NYSE: SITC), an owner of open-air shopping centers located primarily in suburban, high household income communities, announced today operating results for the quarter ended March 31, 2025.

“SITE Centers continues to see strong demand from private and institutional investors seeking to acquire high-quality, open-air shopping centers consistent with the Company’s portfolio. The Company currently has two properties with an aggregate price of $95.3 million under contract for sale subject to standard closing conditions with an additional group of properties in various stages of contract negotiations or in the marketing process in excess of $350.0 million,” commented David R. Lukes, President and Chief Executive Officer. “SITE Centers remains focused on maximizing the value of its assets through continued leasing, asset management and potential additional asset sales.”

Results for the First Quarter

• First quarter net income attributable to common shareholders was $3.1 million, or $0.06 per diluted share, as compared to net loss of $26.3 million, or $0.51 per diluted share, in the year-ago period. The increase year-over-year was primarily the result of an increase in other property revenues and a decrease in impairments and interest expense offset by the result of the spin-off of Curbline Properties Corp. (“Curbline” or “Curbline Properties”) (NYSE: CURB), lower Net Operating Income (“NOI”) as a result of property dispositions, lower gain on sale from dispositions, and lower interest income.
• First quarter operating funds from operations attributable to common shareholders (“Operating FFO” or “OFFO”) was $8.3 million, or $0.16 per diluted share, compared to $59.8 million, or $1.14 per diluted share, in the year-ago period. The decrease year-over-year was primarily the result of the spin-off of Curbline Properties, lower NOI as a result of property dispositions and lower interest income offset by decreased interest expense, no preferred dividends and decreased debt related charges.

Significant First Quarter Activity and Key Operating Results

• Recorded $8.4 million of other property revenues in conjunction with the resolution of a condemnation proceeding with the State of Florida relating to business damages and compensation for land taken in 2022 at the Shoppes at Paradise Pointe. Cash of $3.8 million was received during the quarter with the remainder received in April 2025. The condemnation proceeds were not included in calculating operating funds from operations.
• Reported a leased rate of 89.8% at March 31, 2025 as compared to 91.1% at December 31, 2024 and 91.7% at March 31, 2024, all on a pro rata basis. The March 31, 2024 leased rate has been adjusted to reflect the removal of all properties included in the Curbline Properties spin-off and all properties sold during 2024.
• Reported a commenced rate of 89.4% at March 31, 2025 as compared to 90.6% at December 31, 2024 and 89.8% at March 31, 2024, all on a pro rata basis. The March 31, 2024 commenced rate has been adjusted to reflect the removal of all properties included in the Curbline Properties spin-off and all properties sold during 2024.
• Executed five new leases and 17 renewals for 75,000 square feet during the quarter.
• Generated cash renewal leasing spreads of 3.4%, on a pro rata basis, for the first quarter of 2025.
• In the first quarter of 2025, eliminated the reclassification of general and administrative expense to operating and maintenance expense. The prior-year period reported amount of $2.6 million has been reclassified to conform with the current year presentation.

Discontinued Operations

On October 1, 2024, the Company completed the spin-off of Curbline Properties. The spin-off of the convenience properties represented a strategic shift in the Company’s business and, as such, the Curbline properties are reflected as discontinued operations for the three months ended March 31, 2024.

About SITE Centers Corp.

SITE Centers is an owner and manager of open-air shopping centers located primarily in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC. Additional information about the Company is available at www.sitecenters.com. To be included in the Company’s e-mail distributions for press releases and other investor news, please click here.

Supplemental Information

Copies of the Company's quarterly financial supplement are available on the Investor Relations portion of the Company's website, ir.sitecenters.com.

Non-GAAP Measures and Other Operational Metrics

Funds from Operations (“FFO”) is a supplemental non-GAAP financial measure used as a standard in the real estate industry and is a widely accepted measure of real estate investment trust (“REIT”) performance. Management believes that both FFO and Operating FFO provide additional indicators of the financial performance of a REIT. The Company also believes that FFO and Operating FFO more appropriately measure the core operations of the Company and provide benchmarks to its peer group.

FFO is generally defined and calculated by the Company as net income (loss) (computed in accordance with generally accepted accounting principles in the United States (“GAAP”)), adjusted to exclude (i) preferred share dividends, (ii) gains and losses from disposition of real estate property and related investments, which are presented net of taxes, (iii) impairment charges on real estate property and related investments, (iv) gains and losses from changes in control and (v) certain non-cash items. These non-cash items principally include real property depreciation and amortization of intangibles, equity income (loss) from joint ventures and adding the Company’s proportionate share of FFO from its unconsolidated joint ventures, determined on a consistent basis. The Company’s calculation of FFO is consistent with the definition of FFO provided by NAREIT. The Company calculates Operating FFO as FFO excluding certain non-operating charges, income and gains/losses. Operating FFO is useful to investors as the Company removes non-comparable charges, income and gains/losses to analyze the results of its operations and assess performance of the core operating real estate portfolio. Other real estate companies may calculate FFO and Operating FFO in a different manner.

The Company also uses NOI, a non-GAAP financial measure, as a supplemental performance measure. NOI is calculated as property revenues less property-related expenses. The Company believes NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level and, when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis.

FFO, Operating FFO and NOI do not represent cash generated from operating activities in accordance with GAAP, are not necessarily indicative of cash available to fund cash needs and should not be considered as alternatives to net income computed in accordance with GAAP, as indicators of the Company’s operating performance or as alternatives to cash flow as a measure of liquidity. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures have been provided herein.

Safe Harbor

SITE Centers Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact, including statements regarding the Company's projected operational and financial performance, strategy, prospects and plans, may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, general economic conditions, including inflation and interest rate volatility; local conditions such as the supply of, and demand for, retail real estate space in our geographic markets; the consistency with future results of assumptions based on past performance; the impact of e-commerce; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant and the impact of any such event on rental income from other tenants and our properties; our ability to enter into agreements to sell properties on commercially reasonable terms and to satisfy closing conditions applicable to such sales; our ability to finance our businesses on commercially acceptable terms or at all; impairment charges; valuation and risks relating to our joint venture investments; the termination of any joint venture arrangements or arrangements to manage real property; property damage, expenses related thereto and other business and economic consequences (including the potential loss of rental revenues) resulting from extreme weather conditions or natural disasters in locations where we own properties, and the ability to estimate accurately the amounts thereof; sufficiency and timing of any insurance recovery payments related to damages from extreme weather conditions or natural disasters; any change in strategy; the impact of pandemics and other public health crises; unauthorized access, use, theft or destruction of financial, operations or third party data maintained in our information systems or by third parties on our behalf; our ability to maintain REIT status; and the finalization of the financial statements for the period ended March 31, 2025. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company's most recent reports on Forms 10-K and 10-Q. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

SITE Centers Corp. Income Statement: Consolidated Interests
	in thousands, except per share
		1Q25		1Q24
	Revenues:
	Rental income (1)	$31,450		$91,726
	Other property revenues	8,895		856
		40,345		92,582
	Expenses:
	Operating and maintenance	7,132		15,035
	Real estate taxes	4,721		13,717
		11,853		28,752
	Net operating income (2)	28,492		63,830
	Other income (expense):
	JV and other fee income (3)	2,278		1,470
	Interest expense	(5,565)		(18,663)
	Depreciation and amortization	(13,252)		(33,950)
	General and administrative (4)	(9,395)		(13,546)
	Other income (expense), net (5)	(392)		2,997
	Impairment charges	0		(66,600)
	Income (loss) before earnings from discontinued operations, JVs and other	2,166		(64,462)
	Equity in net income of JVs	39		17
	Gain on disposition of real estate, net	1,029		31,714
	Tax expense	(149)		(252)
	Income (loss) from continuing operations	3,085		(32,983)
	Income from discontinued operations (6)	0		9,431
	Net income (loss) SITE Centers	3,085		(23,552)
	Preferred dividends	0		(2,789)
	Net income (loss) Common Shareholders	$3,085		($26,341)
	Weighted average shares – Basic – EPS (7)	52,436		52,355
	Assumed conversion of diluted securities	0		0
	Weighted average shares – Diluted – EPS (7)	52,436		52,355
	Basic and Diluted earnings per share:
	From continuing operations	$0.06		$(0.69)
	From discontinued operations	0		0.18
	Total	$0.06		$(0.51)
(1)	Rental income:
	Minimum rents	$20,366		$59,626
	Ground lease minimum rents	1,321		2,773
	Straight-line rent, net and amortization of (above)/below-market rent, net	335		827
	Percentage and overage rent	364		1,828
	Recoveries	8,402		23,954
	Uncollectible revenue	(108)		518
	Ancillary and other rental income	401		1,098
	Lease termination fees	0		1,102
	Embedded lease Shared Services Agreement (“SSA”) with Curbline	369		0
(2)	Includes NOI from wholly-owned assets sold in 2024	130		43,406
(3)	Curbline SSA fee	692		0
	Curbline SSA gross up	631		0
	Embedded Lease SSA	(369)		0
(4)	Other charges related to system conversion	515		116
(5)	Interest income (fees), net	361		7,294
	Transaction costs	(122)		(296)
	Curbline SSA gross up	(631)		0
	Debt extinguishment costs	0		(665)
	Gain on debt retirement and gain (loss) on derivative instruments	0		(3,336)
(6)	Curbline assets classified as a "discontinued operation" for financial reporting purposes on a retrospective basis
(7)	Prior period presented has been adjusted to reflect the Company's one-for-four reverse stock split

SITE Centers Corp. Reconciliation: Net Income to FFO and Operating FFO and Other Financial Information
	in thousands, except per share
		1Q25		1Q24
	Net income (loss) attributable to Common Shareholders	$3,085		($26,341)
	Depreciation and amortization of real estate	12,414		32,619
	Equity in net income of JVs	(39)		(17)
	JVs' FFO	1,593		1,584
	Discontinued operations' depreciation and amortization of real estate	0		9,200
	Impairment of real estate	0		66,600
	Gain on disposition of real estate, net	(1,029)		(31,714)
	FFO attributable to Common Shareholders	$16,024		$51,931
	Gain on debt retirement	0		(760)
	Loss on derivative instruments	0		4,096
	Discontinued operations' transaction costs	0		3,102
	Transaction, debt extinguishment and other (at SITE's share)	122		1,037
	Condemnation revenue	(8,379)		0
	Other charges	515		395
	Total non-operating items, net	(7,742)		7,870
	Operating FFO attributable to Common Shareholders	$8,282		$59,801
	Weighted average shares & units – Basic: FFO & OFFO (1)	52,436		52,355
	Assumed conversion of dilutive securities (1)	0		200
	Weighted average shares & units – Diluted: FFO & OFFO (1)	52,436		52,555
	FFO per share – Basic (1)	$0.31		$0.99
	FFO per share – Diluted (1)	$0.31		$0.99
	Operating FFO per share – Basic (1)	$0.16		$1.14
	Operating FFO per share – Diluted (1)	$0.16		$1.14
	Common stock dividends declared, per share (1)	$0.00		$0.52
	Capital expenditures (SITE Centers share) (2):
	Redevelopment costs	0		2,675
	Maintenance capital expenditures	347		1,188
	Tenant allowances and landlord work	1,063		9,525
	Leasing commissions	285		1,191
	Construction administrative costs (capitalized)	440		819
	Certain non-cash items (SITE Centers share) (2):
	Straight-line rent	219		303
	Straight-line fixed CAM	16		63
	Amortization of below-market rent/(above), net	235		674
	Straight-line ground rent expense (income)	20		(5)
	Debt fair value and loan cost amortization	(908)		(1,432)
	Capitalized interest expense	29		293
	Stock compensation expense	(384)		(2,031)
	Non-real estate depreciation expense	(842)		(1,333)
(1)	Prior period presented has been adjusted to reflect the Company's one-for-four reverse stock split
(2)	Excludes amounts from discontinued operations for all periods

SITE Centers Corp. Balance Sheet: Consolidated Interests
	$ in thousands
		At Period End
		1Q25		4Q24
	Assets:
	Land	$204,714		$204,722
	Buildings	965,209		964,845
	Fixtures and tenant improvements	254,413		254,152
		1,424,336		1,423,719
	Depreciation	(665,402)		(654,389)
		758,934		769,330
	Construction in progress and land	2,765		2,682
	Real estate, net	761,699		772,012
	Investments in and advances to JVs	30,447		30,431
	Cash	58,155		54,595
	Restricted cash	11,466		13,071
	Receivables and straight-line rents (1)	29,972		25,437
	Intangible assets, net (2)	27,579		28,759
	Amounts receivable from Curbline	215		1,771
	Other assets, net	10,222		7,526
	Total Assets	929,755		933,602
	Liabilities and Equity:
	Secured debt	301,643		301,373
	Amounts payable to Curbline	32,579		33,762
	Other liabilities (3)	75,916		81,723
	Total Liabilities	410,138		416,858
	Common shares	5,247		5,247
	Paid-in capital	3,980,896		3,981,597
	Distributions in excess of net income	(3,470,373)		(3,473,458)
	Deferred compensation	7,996		8,041
	Accumulated other comprehensive income	4,893		5,472
	Common shares in treasury at cost	(9,042)		(10,155)
	Total Equity	519,617		516,744
	Total Liabilities and Equity	$929,755		$933,602
(1)	Straight-line rents (including fixed CAM), net	$8,862		$8,653
(2)	Operating lease right of use assets	15,545		15,818
(3)	Operating lease liabilities	35,240		35,532
	Below-market leases, net	9,117		9,306

 

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SITE Centers Corp.

3300 Enterprise Parkway

Beachwood, OH 44122

For additional information:

Gerald Morgan, EVP and Chief Financial Officer

216-755-5500

Source: SITE Centers Corp.