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, despite lower property NOI and transaction costs.

• Significant progress on strategic goals, including the planned spin-off of Curbline Properties, expected to complete around October 1, 2024, with 72 wholly owned properties and no debt at separation.

• Portfolio repositioned through over $1 billion in transactions in Q2, including major asset sales and acquisitions.

• SITE Centers' post-spin portfolio will remain diversified, with ongoing asset sales and strong leasing momentum.

• SITE Centers expected to have no unsecured debt and $2.1B in liquidity as of June 30, 2024.

Financial highlights

• Q2 2024 net income: $235.5M; FFO: $40.2M; Operating FFO: $55.9M; revenues: $114.1M; NOI: $78.7M.

• Curbline portfolio expected to generate $84M of NOI in 2024, with same-store NOI growth projected at 3.5%-5.5%.

• SITE Centers portfolio projected to deliver $201M of NOI in 2024, excluding further dispositions.

• Over $1.8B of dispositions closed since July 2023 at a blended cap rate of 7.1%.

• Cash position at quarter-end was $1.18B, with $2.1B in liquidity including credit availability.

Outlook and guidance

• Curbline spin-off expected to close around October 1, 2024, with Curbline in a net cash position and no debt.

• 2024 property-level NOI projected at $198.3M–$204.4M for SITE Centers and $82.6M–$84.9M for Curbline, assuming 3.5%–5.5% SSNOI growth for Curbline.

• No formal 2024 FFO guidance due to spin-off and transaction activity, but portfolio NOI projections provided.

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

• Curbline anticipated to acquire $500M annually, with $125M per quarter as a sustainable run rate.