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SITE Centers Corp. (SITC)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 GAAP EPS was $0.88, far above S&P Global consensus Primary EPS of -$0.21, driven primarily by a $53.2M gain on real estate dispositions; Operating FFO/share (non-GAAP) was $0.16 versus S&P consensus 0.1616 (essentially in line), while revenue of $31.11M came in below the $33.10M consensus . Consensus values marked with an asterisk are from S&P Global estimates data.
  • SITE Centers accelerated capital recycling: five property sales over the past two months totaled $319.0M and the Board declared special cash distributions aggregating $4.75/share ($1.50 paid July 15 and $3.25 payable August 29), creating near‑term stock catalysts tied to distribution timing .
  • Occupancy softened as dispositions progressed: leased rate fell to 88.1% (pro rata) from 91.1% at 12/31/24; commenced rate declined to 87.5% from 90.6% at both 12/31/24 and 6/30/24 (pro rata) .
  • Balance sheet continued to de‑risk: cash increased to $153.8M, net debt fell to $224.8M, and the debt stack (at share) had a 3.3‑year WAM and 6.68% weighted average rate at quarter‑end .
  • CEO emphasized ongoing focus on “maximizing the value of its assets through continued leasing, asset management and potential additional asset sales,” with >$190M of properties awarded to buyers still in diligence, sustaining a recycling narrative into 2H25 .

What Went Well and What Went Wrong

What Went Well

  • Disposition gains supported strong GAAP earnings: $53.236M gain on disposition drove diluted EPS to $0.88 in Q2 (vs. -$0.21* consensus), despite lower recurring NOI .
  • Capital returns and balance sheet: two special cash distributions totaling $4.75/share (paid/declared in July–Aug) and net debt reduced to $224.8M; cash rose to $153.8M .
  • Lower financing burden and stable fees: interest expense fell to $5.314M from $18.260M y/y; JV/other fee income increased to $2.362M from $1.542M y/y (Curbline SSA and JV fees) .
  • Management tone: “SITE Centers remains focused on maximizing the value of its assets through continued leasing, asset management and potential additional asset sales.” — David R. Lukes, CEO .

What Went Wrong

  • Core earnings power down sharply: Operating FFO attributable to common shareholders fell to $8.347M ($0.16/share) from $55.883M ($1.06/share) y/y on lower NOI post spin-off and dispositions .
  • Top-line and NOI contracted materially vs. prior year: revenues $31.11M vs. $85.97M y/y; NOI $19.96M vs. $58.84M y/y, reflecting asset sales and Curbline spin-off .
  • Leasing softness and occupancy drift: leased rate declined to 88.1% (from 91.1% at 12/31/24), and comparable new-lease cash spreads were negative (‑23.4%) with limited new lease count (4 new, 13 renewals; 145k sf) .

Financial Results

Actuals (company-reported) across periods:

MetricQ2 2024Q1 2025Q2 2025
Revenue ($M)$85.97 $40.35 $31.11
Net Operating Income ($M)$58.84 $28.49 $19.96
Diluted EPS (GAAP)$4.45 $0.06 $0.88
Operating FFO/share – Diluted$1.06 $0.16 $0.16
Interest Expense ($M)$(18.26) $(5.57) $(5.31)
G&A ($M)$(14.88) $(9.40) $(9.42)

Consensus vs Actual – Q2 2025 (S&P Global):

MetricCompany ActualS&P Consensus*Surprise
GAAP EPS (Primary EPS)$0.88 -$0.21*+$1.09 (beat, driven by gains)
Operating FFO/share (REIT)$0.16 $0.1616*-$0.0016 (in line)
Revenue ($M)$31.11 $33.10*-$1.99 (miss)

Note: Asterisks indicate values retrieved from S&P Global.

Leasing & Operating KPIs

KPI (pro rata unless noted)Q4 2024Q1 2025Q2 2025
Leased Rate91.1% 89.8% 88.1%
Commenced Rate90.6% 89.4% 87.5%
Base Rent PSF (pro rata)$19.64 $19.75 $19.83
Comparable New Lease Cash Spread0.0% (no comps) +6.8% -23.4%
New + Renewal GLA (000s sf)21.0 68.4 144.8
Cash ($M)$54.60 $58.16 $153.79
Net Debt ($M, at share)$336.25 —$224.82

Capital Recycling & Dividends

ItemQ2 2025 and Recent
Property sales (Q2)Promenade at Brentwood $71.6M; Chapel Hills West $23.65M
Property sales (post‑Q2)Sandy Plains Village $25.0M (7/21); Winter Garden Village $165.0M (8/1); Deer Valley Towne Center $33.7M (8/1)
Aggregate recent sales$319.0M over two months, per release
Specials$1.50/share paid 7/15; $3.25/share payable 8/29 (due-bill trading mechanics apply)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent (Q2 2025)Change
Property-level NOI (ex-Curbline, at share)FY 2024$94.7–$96.9M (as of Q3 2024) Not updated/reiterated in Q1 or Q2 2025 materials Not reiterated
EPS/FFO formal guidance2025None disclosed in prior 2025 releases None provided in Q2 release Maintained “no formal guide”
Dividends2025Regular onlySpecial $1.50 (paid 7/15) and $3.25 (payable 8/29) New special distributions

Earnings Call Themes & Trends

Transcript not available via our tools; themes synthesized from consecutive company materials.

TopicPrevious Mentions (Q4’24, Q1’25)Current Period (Q2’25)Trend
Capital recycling / asset salesQ4: Completed major dispositions; simplified capital structure incl. preferred redemption . Q1: Active pipeline >$350M marketing/negotiations; $95.3M under contract .Executed $319.0M of sales over two months; additional >$190M awarded to buyers in diligence .Continued acceleration
Shareholder returnsQ4: No specials; focus on simplification . Q1: No dividend declared .Declared/paid $1.50 special (7/15) and announced $3.25 special (payable 8/29) .Step-up in capital return
Occupancy / leasingQ4: Leased 91.1%; cash renewal spreads +10.6% . Q1: Leased 89.8%; cash renewal spreads +3.4%; five new and 17 renewals .Leased 88.1%; comparable new lease cash spreads -23.4%; four new and 13 renewals, 145k sf .Softening occupancy and new-lease economics
Balance sheetQ4: Preferred redemption; shift to secured mortgage facility; high cash balance post-spin . Q1: Cash $58.2M; secured debt ~$301.6M .Cash $153.8M; net debt $224.8M; WAM ~3.3 yrs; 6.68% avg rate .Lower net debt; ample liquidity
Curbline spin-off / SSAQ4: Spin completed; SSA income feeds through . Q1: SSA fees/gross-up present .SSA items continue (fees/gross-up) .Ongoing run-rate component

Management Commentary

  • “The Company sold five properties over the past two months for an aggregate price of $319.0 million and declared aggregate dividends of $4.75 per share… 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 .
  • Q1 setup for recycling: “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… additional group >$350.0 million in process.” — David R. Lukes .
  • Context from 2024: “Following the disposition of 25 properties during the third quarter for an aggregate price of $1.4 billion… Going forward, SITE Centers intends to maximize value through continued leasing, asset management and potential additional asset sales.” — David R. Lukes .

Q&A Highlights

We were unable to locate a Q2 2025 earnings call transcript via our document tools or public transcript repositories; the company hosted a webcast and posted a supplement but no transcript was accessible through our tools at this time . As a result, Q&A-specific clarifications (e.g., cadence of future sales, cadence of occupancy stabilization, or commentary on leasing spreads) could not be extracted.

Estimates Context

  • Coverage remains thin for quarterly revenue and EPS (S&P shows only ~1–2 estimates), elevating dispersion risk and making “beats/misses” less statistically robust. Q2 2025 Primary EPS consensus: -$0.21 (actual $0.88); revenue consensus: $33.10M (company actual $31.11M); FFO/share consensus: $0.1616 (actual $0.16)*. GAAP EPS beat is non-recurring in nature due to $53.236M gain on dispositions; core OFFO essentially in line .
  • Where models diverge from company-reported revenue (e.g., treatment of JV at-share revenue), the company’s consolidated revenue basis ($31.11M) was used for comparison; investors should reconcile with any proportionate metrics used by analysts when interpreting “revenue beats/misses” .
    Note: Asterisks indicate values retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term catalysts are tied to special distributions and continued asset sales; due-bill trading mechanics apply to the $3.25 special payable Aug 29, which can influence short-term trading flows .
  • The headline EPS beat is primarily transactional (gains), not indicative of improved underlying NOI; traders should anchor on OFFO and NOI trends for core performance .
  • Occupancy drift and negative cash spreads on new leases signal a tougher leasing environment as the portfolio repositions; monitor leased/commenced rates and leasing spreads through 2H25 .
  • Balance sheet flexibility improved: higher cash, lower net debt, and modest debt maturities/WAM support optionality for further recycling or shareholder returns .
  • With >$190M awarded to buyers and additional assets in marketing, execution on dispositions remains a central narrative and source of incremental capital return potential .
  • Absent formal guidance, buyside models should emphasize run-rate NOI after dispositions, leasing pace/spreads, and OFFO conversion (not GAAP EPS) as the stock’s fundamental anchors .
  • Watch for sustained fee income (SSA/JV) and operating expense discipline to partially offset NOI pressure from asset sales .

Appendix: Selected Details and KPIs

  • Income Statement (Q2 2025, consolidated): revenue $31.11M; NOI $19.96M; JV and other fee income $2.36M; interest expense $(5.31)M; D&A $(12.92)M; G&A $(9.42)M; gain on real estate disposition $53.24M .
  • OFFO reconciliation (Q2 2025): Operating FFO $8.347M or $0.16/share; FFO $6.935M or $0.13/share .
  • Portfolio stats (pro rata): leased rate 88.1%; commenced 87.5%; base rent PSF $19.83; operating centers 31 (20 wholly owned; 11 JV) .
  • Debt (at share): $398.3M mortgage debt; fixed/variable mix 175.2/223.2; WAM 3.3 years; 6.68% weighted average rate; SOFR caps on key pools .

Sources: Company 8‑K and Q2’25 financial supplement, Q1’25 and Q4’24 press releases, and additional press releases noted. All financial and operating figures cited above are from the referenced company documents unless marked with an asterisk (S&P Global estimates).

  • Q2’25 8‑K/Quarterly Supplement and Press Release:
  • Q1’25 Press Release and tables:
  • Q4’24 Press Release and tables:
  • July 21 and Aug 1, 2025 press releases (sales and special dividend mechanics):
  • Company Results Center (webcast/supplement index):