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SITE Centers (SITC)
NYSE:SITC
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SITE Centers
(NYSE:SITC)
71Outperform
Positive Factors
Asset Sales
In Q3, SITC sold assets in excess of $1.3B, or 3x the expected amount for the quarter heading into the 10/1 spin date, an impressive feat.
Spin-off Impact
The CURB spin-off may unlock value for shareholders and management has a strong track record with similar transactions.
Negative Factors
Debt and Growth Potential
SITC is expected to continue selling assets to focus on debt repayment, which could impact future growth potential.
Investor Attention
CURB's presence is expected to absorb greater investor attention at the margin, impacting SITC.
SITE Centers (SITC) vs. S&P 500 (SPY)
Market Cap
$682.12M
Dividend Yield9.13%
Average Volume (3M)1.05M
Price to Earnings (P/E)1.3
Beta (1Y)1.10
Revenue Growth-29.17%
EPS Growth102.41%
CountryUS
Employees220
SectorReal Estate
Sector Strength62
IndustryREITs
Share Statistics
EPS (TTM)9.77
Shares Outstanding52,430,424
10 Day Avg. Volume1,226,618
30 Day Avg. Volume1,051,885
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)N/A
Price to Sales (P/S)2.42
Price to Cash Flow (P/CF)-5.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.17Price Target Upside26.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
SITE Centers Business Overview & Revenue Model
Company DescriptionSITE Centers is an owner and manager of open-air shopping centers that provide a highly-compelling shopping experience and merchandise mix for retail partners and consumers. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC.
How the Company Makes MoneySITE Centers generates revenue primarily through leasing spaces within its portfolio of open-air shopping centers to a variety of tenants, which include retail stores, restaurants, and service providers. The company earns rental income from these leases, which typically include base rent and, in some cases, additional income from tenant reimbursements for property operating expenses. SITE Centers may also benefit from strategic partnerships and joint ventures, which can enhance its asset portfolio and revenue potential. Additionally, the company might engage in property development and redevelopment projects, further contributing to its revenue streams.
SITE Centers Financial Statement Overview
Summary
SITE Centers presents a strong financial profile with high profitability, a solid balance sheet, and stable cash flows. The company's minimal debt and high equity ratio mitigate financial risks, while impressive profit margins highlight efficient operations. Nonetheless, the declining revenue and cash flow growth warrant attention to ensure long-term sustainability and growth.Income Statement
SITE Centers shows strong profitability with a significant net profit margin of 191.6% and a remarkable EBIT margin of 195.2% for 2024. Despite a substantial drop in revenue compared to the previous year, the company has maintained high profitability, indicating efficient cost management and strong operational performance. However, the revenue decline is a concern that might impact future growth prospects if not addressed.78
Positive
Balance Sheet
The company exhibits a strong balance sheet with a debt-to-equity ratio of 0, reflecting no reliance on debt for financing. Additionally, the equity ratio stands at 66.9%, showcasing a robust capital structure and lower financial risk. The high return on equity of 99.9% further indicates effective utilization of shareholder funds. Overall, the balance sheet is solid with minimal financial leverage.84
Very Positive
Cash Flow
SITE Centers has seen a decline in operating cash flow, yet maintains a healthy free cash flow position. The free cash flow to net income ratio is favorable, indicating good liquidity and capacity to sustain operations without external financing. However, the negative growth in free cash flow compared to previous years suggests potential challenges in funding growth initiatives from internal cash flows alone.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 277.47M | 546.27M | 540.81M | 492.34M | 416.76M | Gross Profit |
| 181.80M | 380.55M | 370.82M | 339.56M | 278.36M | EBIT |
| 525.76M | 339.27M | 157.61M | 186.55M | 92.39M | EBITDA |
| 716.89M | 339.27M | 361.16M | 372.32M | 263.06M | Net Income Common Stockholders |
| 531.82M | 265.70M | 168.72M | 124.94M | 35.72M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 54.59M | 551.97M | 20.25M | 41.81M | 69.74M | Total Assets |
| 933.60M | 4.06B | 4.05B | 3.97B | 4.11B | Total Debt |
| 301.37M | 1.63B | 1.71B | 1.68B | 1.93B | Net Debt |
| 246.78M | 1.07B | 1.69B | 1.64B | 1.86B | Total Liabilities |
| 416.86M | 1.89B | 1.95B | 1.92B | 2.16B | Stockholders Equity |
| 516.74M | 2.18B | 2.09B | 2.04B | 1.94B |
| Cash Flow | Free Cash Flow | |||
| 112.04M | 238.53M | 257.26M | 282.51M | 190.17M | Operating Cash Flow |
| 112.04M | 238.53M | 257.26M | 282.51M | 190.17M | Investing Cash Flow |
| 1.84B | 559.90M | -167.56M | 74.45M | 102.48M | Financing Cash Flow |
| -2.46B | -250.62M | -111.74M | -380.98M | -237.36M |
SITE Centers Technical Analysis
Negative
12.77
Price Trends
14.19
Negative
14.87
Negative
13.85
Negative
Market Momentum
-0.39
Negative
34.88
Neutral
43.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SITC, the sentiment is Negative. The current price of 12.77 is below the 20-day moving average (MA) of 13.01, below the 50-day MA of 14.19, and below the 200-day MA of 13.85, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 34.88 is Neutral, neither overbought nor oversold. The STOCH value of 43.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SITC.
SITE Centers Risk Analysis
SITE Centers disclosed 37 risk factors in its most recent earnings report. SITE Centers reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SITE Centers Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $8.41B | 28.57 | 9.58% | 4.49% | 6.21% | 22.32% | |
71 Outperform | $13.21B | 34.47 | 5.82% | 3.73% | 10.15% | 3.36% | |
71 Outperform | $682.12M | 1.33 | 39.40% | 9.13% | -29.17% | 102.41% | |
70 Outperform | $8.04B | 23.64 | 11.61% | 4.20% | 3.41% | 10.54% | |
63 Neutral | $14.40B | 38.36 | 4.03% | 4.57% | 14.51% | -45.53% | |
61 Neutral | $4.73B | 18.32 | -3.52% | 11.32% | 5.97% | -21.87% | |
42 Neutral | $136.77M | ― | -32.96% | 8.28% | -32.95% | -45.50% |
* Real Estate Sector Average
Performance Comparison
SITC
SITE Centers
12.77
1.61
14.43%
KIM
Kimco Realty
21.01
2.75
15.06%
REG
Regency Centers
72.39
15.03
26.20%
FRT
Federal Realty
96.78
-0.95
-0.97%
BRX
Brixmor Property
26.26
4.28
19.47%
RPT
Rithm Property Trust
2.88
-0.71
-19.78%
SITE Centers Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -12.17% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with strong transaction activity and leasing performance, particularly in the Curbline portfolio. However, there were some concerns about occupancy challenges and volatility in operating metrics. Overall, the strategic focus on growth and strong leasing spreads were positive indicators.Highlights
Significant Transaction Activity
Closed nearly $1 billion of transactions in Q2 2024, including $951 million of wholly-owned property sales year-to-date, with an additional $1 billion of real estate under contract or negotiation.
Strong Leasing Performance
Reported 24% trailing 12-month new leasing spreads for the Curbline portfolio, with almost 50% straight-line new leasing rent spreads for the trailing 12-month period.
Convenience Portfolio Growth
Acquired five Convenience Properties in Q2 for $65 million and closed another $27 million of acquisitions in Q3 to date, with $200 million of additional Convenience assets awarded or under contract.
High Retention and Strong Credit
National tenant retention is mid-90%, and local tenant retention is around mid-80%, with an overall strong credit tenant base.
Lowlights
Occupancy Challenges
Leased rate was down 100 basis points sequentially due to the sale of assets with high lease rates and acquisition of vacant spaces.
Volatility in Operating Metrics
Operating metrics for both SITE and Curb remain volatile due to a smaller asset base, with potential variability in future performance.
Company Guidance
During the SITE Centers' Q2 2024 earnings call, guidance provided included several key metrics and strategic updates. The company closed nearly $1 billion in transactions for the quarter, including over $50 million in debt purchases or retirements. The Curbline Properties portfolio, which is part of a planned spin-off expected in October 2024, reported a 24% trailing 12-month new leasing spread. The portfolio comprises 72 wholly-owned Convenience Properties, expected to generate about $84 million in NOI, and boasts a same-store NOI growth projection greater than 3% for the next three years. SITE Centers has closed $951 million in property sales year-to-date, with a total of $1.8 billion in dispositions at an average cap rate of 7.1%. The company has over $1 billion of real estate either under contract or in negotiation, with an anticipated overall cap rate in the mid-7s. The call emphasized the continued focus on acquisitions, with $65 million in Convenience Property purchases in Q2 and over $200 million awarded or under contract, highlighting an acquisition strategy centered on high-income areas and minimal CapEx requirements.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.