SITE Centers (SITC) Q2 2024 earnings summary

Executive summary

• Net income attributable to common shareholders rose to $235.5M in Q2 2024, driven by gains from real estate dispositions and higher interest income, while the planned spin-off of Curbline Properties, with 72 wholly owned properties, remains on track for October 1, 2024.

• Portfolio focused in affluent U.S. sub-markets, with 101 wholly-owned properties and average household income of $113K (90th percentile).

• SITE Centers executed nearly $1 billion in Q2 transactions, including significant asset sales and acquisitions to reposition the portfolio and fund the spin-off.

• Curbline to be the first public REIT focused exclusively on convenience sector, launching debt-free with $600M cash.

• SITE Centers' balance sheet positioned for spin-off, with no unsecured debt and $2.1B in liquidity as of June 30, 2024.

Financial highlights

• Q2 2024 net income was $235.5M, up from $2.6M in Q2 2023, while FFO and rental income declined year-over-year due to asset dispositions.

• SITE Centers had $2.1B in liquidity at quarter-end, including $1.2B in cash and $950M in credit availability.

• Curbline portfolio's trailing 12-month new leasing spreads reached 24%–64.5%, with almost 50% straight-line new leasing rent spreads.

• Dispositions since July 2023 total $1.8B at a blended cap rate of 7.1%.

• Lease termination income in Q2 2024 was $1.6M, well above the 2023 quarterly average.

Outlook and guidance

• Curbline same-store NOI growth projected at 3.5%–5.5% for 2024, with expectations to average over 3% for the next three years.

• No formal 2024 FFO guidance due to significant transaction activity and the spin-off.

• Dividend policy to be influenced by operations, spin-off, and asset sales, with distributions subject to debt and preferred stock restrictions.