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SITE Centers Corp. (SITC)·Q1 2025 Earnings Summary

Executive Summary

  • SITE Centers reported revenue of $40.345M and GAAP diluted EPS of $0.06; Operating FFO per diluted share was $0.16, with NOI of $28.492M .
  • Leased rate declined to 89.8% (from 91.1% in Q4) and commenced rate to 89.4% (from 90.6%), reflecting disposition impact and the CURB spin-off .
  • Consensus suggested a revenue beat and an FFO/share miss: S&P Global consensus revenue $31.97M vs reported $40.35M; FFO/share consensus $0.178 vs reported $0.16* .
  • Management highlighted strong private market demand and an active sale pipeline ($95.3M under contract; >$350M in negotiations), signaling potential capital recycling catalysts .

What Went Well and What Went Wrong

What Went Well

  • “SITE Centers continues to see strong demand from private and institutional investors seeking to acquire high-quality, open-air shopping centers... two properties with an aggregate price of $95.3 million under contract... an additional group... in excess of $350.0 million” — CEO David R. Lukes .
  • Other property revenues of $8.895M were buoyed by $8.4M condemnation proceeds at Shoppes at Paradise Pointe; cash of $3.8M received in quarter (remainder in April) .
  • NOI margin improved sequentially as NOI rose to $28.492M on $40.345M revenue (see table below), aided by lower interest expense year over year .

What Went Wrong

  • Occupancy softened: leased rate fell 130 bps QoQ to 89.8% and commenced rate fell 120 bps QoQ to 89.4% .
  • Operating FFO per diluted share dropped sharply YoY to $0.16 from $1.14 due to CURB spin-off, dispossession-driven lower NOI, and lower interest income .
  • Sequential leasing momentum slowed vs Q4, with cash renewal spreads of 3.4% in Q1 vs 10.6% in Q4 .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$89.429 $32.865 $40.345
Net Income to Common ($USD Millions)$320.164 ($13.248) $3.085
Diluted EPS (GAAP, $)$6.07 ($0.25) $0.06
NOI ($USD Millions)$61.074 $19.398 $28.492
NOI Margin (%)68.3% (derived from 61.074/89.429) 59.0% (19.398/32.865) 70.6% (28.492/40.345)
FFO/share – Diluted ($)$(0.26) $0.02 $0.31
Operating FFO/share – Diluted ($)$0.81 $0.16 $0.16

KPIs

KPIQ3 2024Q4 2024Q1 2025
Leased Rate (pro rata)91.3% 91.1% 89.8%
Commenced Rate (pro rata)89.8% 90.6% 89.4%
Base Rent PSF (pro rata)$19.60 $19.64 $19.75
New Leases (count)5 (Q3 pool) 0 5
Renewals (count)37 (Q3) 5 17
New + Renewals GLA (000s)244.8 (Q3) 21.0 75.5
Cash Renewal Spread (%)6.6% (Q3) 10.6% 3.4%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Company guidance metrics (revenue, margins, OpEx, etc.)Q1 2025None providedNone providedMaintained (none)
Dividend – Special Cash DistributionQ2 2025N/A$1.50 per common share payable 7/15/2025New announcement

Earnings Call Themes & Trends

Note: No Q1 2025 call transcript located; themes derived from Q1 press release and quarterly supplements.

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Asset sales program / private market demandDisposed 25 centers for $1.4B; strong market interest; simplification plan Two properties $95.3M under contract; >$350M in marketing/negotiations Continuing monetization
Capital structure simplificationRedeemed all remaining unsecured notes; repaid term loan; later redeemed preferred shares No new capital structure actions disclosed in Q1 releaseNeutral
Occupancy trajectory (leased/commenced)Leased 91.3% (Q3) → 91.1% (Q4) Leased 89.8%, commenced 89.4% Softening
Leasing spreadsQ3 cash renewal 6.6%; Q4 10.6% Cash renewal 3.4% Weaker spreads
Non-GAAP drivers (FFO/OFFO)OFFO/share $0.81 (Q3), $0.16 (Q4), impacted by dispositions OFFO/share $0.16; condemnation proceeds excluded Stable QoQ, down YoY
CURB spin-off effectsCompleted Oct 1; discontinued ops reflected; pipeline largely sold Year-ago comps adjusted for CURB; lower NOI and interest income YoY Lapping spin-off

Management Commentary

  • “SITE Centers remains focused on maximizing the value of its assets through continued leasing, asset management and potential additional asset sales.” — David R. Lukes, President & CEO .
  • “The Company currently has two properties with an aggregate price of $95.3 million under contract for sale... with an additional group... in excess of $350.0 million” — David R. Lukes .
  • “Recorded $8.4 million of other property revenues... resolution of a condemnation proceeding... Cash of $3.8 million was received during the quarter with the remainder received in April 2025” .

Q&A Highlights

No Q1 2025 earnings call transcript was available in our document catalog or reputable online sources; therefore, no Q&A themes or clarifications can be provided for this quarter [earnings-call-transcript not found in ListDocuments; https://seekingalpha.com/symbol/SITC/earnings/transcripts].

Estimates Context

Metric (Q1 2025)S&P Global ConsensusReported ActualSurprise
Revenue ($USD Millions)$31.97M*$40.345M +$8.38M (beat)
Primary EPS ($)($0.11)*$0.06 (GAAP diluted) Above consensus (definitions differ)
FFO / Share (REIT) ($)$0.1777*Operating FFO/share $0.16 −$0.018 (miss)

Values marked with * retrieved from S&P Global. Note: S&P “Primary EPS” may differ from company-reported GAAP EPS; S&P recorded Primary EPS actual of ($0.082)*, which differs from company GAAP diluted EPS $0.06, likely due to methodological differences (e.g., normalization, continuing ops focus).

Key Takeaways for Investors

  • Asset sale pipeline is active and sizable ($95.3M under contract; >$350M marketing), providing potential near-term catalysts for deleveraging or capital returns .
  • Occupancy metrics weakened QoQ (leased 89.8%, commenced 89.4%), and cash renewal spreads moderated to 3.4%; leasing execution bears close monitoring for NOI stabilization .
  • Despite a revenue beat vs consensus, Operating FFO/share missed S&P expectations, reflecting portfolio mix post-CURB and lower interest income; estimate revisions may nudge FFO lower near term* .
  • NOI margin improved sequentially, aided by non-recurring other property revenues; underlying rent recoveries and cost control remain key to sustaining margin into Q2 .
  • June’s announced $1.50 special distribution (payable July 15) indicates confidence in liquidity and monetization pace, but it is a one-time action rather than recurring dividend reset .
  • Focus the thesis on: capital recycling speed, leasing spreads/occupancy trajectory, and JV/consolidated debt management; these will drive FFO recovery and valuation.