SITE Centers (SITC) Q3 2024 earnings summary

Executive summary

• Net income attributable to common shareholders rose to $320.2M for Q3 2024 and $529.3M for the nine months, driven by gains from real estate dispositions and higher interest income, offset by property sales, debt costs, spin-off expenses, and impairments.

• Completed the spin-off of Curbline Properties on October 1, 2024, transferring 79 convenience retail assets and $800M in cash to the new entity, creating two distinct business plans.

• Sold 40 wholly-owned shopping centers and two joint venture assets for $2.33B gross proceeds YTD; 25 shopping centers for $1.4B and acquired seven convenience centers for $145.3M included in the Curbline spin-off.

• Redeemed all remaining senior unsecured notes due 2025–2027, repaid $200M term loan, and terminated revolving credit facility.

• Portfolio as of September 30, 2024, included 112 shopping centers (11 via joint ventures) totaling 11.5M sq. ft. GLA.

Financial highlights

• Q3 2024 net income attributable to common shareholders: $320.2M vs. $45.9M in Q3 2023; nine months: $529.3M vs. $60.9M.

• Q3 2024 diluted EPS: $6.07 vs. $0.87; nine months: $10.03 vs. $1.16.

• FFO for Q3 2024: $(13.5)M vs. $67.8M; Operating FFO: $42.8M vs. $69.9M.

• Revenues for Q3 2024: $90.8M, down from $144.8M year-over-year, mainly due to property dispositions.

• Rental income for Q3 2024: $89.0M, down from $142.5M in Q3 2023; nine months: $322.1M, down from $414.3M year-over-year.

Outlook and guidance

• Rental income and net income expected to decrease in future periods due to the Curbline spin-off and recent property sales.

• Projected 2024 property-level NOI (excluding Curbline and sold properties) is $94.7–$96.9M, assuming no further asset sales.

• Future dividend policy will be influenced by operations and asset sales, subject to debt covenants and liquidity management.

• Company intends to use proceeds from future asset sales to repay debt and make shareholder distributions.