Amid the rebounding retail real-estate market, SITE Centers Corp. (SITC - Free Report) has provided an update on its transaction activities for fourth-quarter 2022 and from the beginning of 2023 through Jan 9, 2023.
Reflecting broader retail real-estate market concerns, shares of SITC lost 2.55% on Jan 10 normal trading session on the NYSE.
In fourth-quarter 2022, the company disposed of four shopping centers and one parcel at a wholly-owned shopping center for $166.3 million ($157.8 million at company’s share).
Highlighting SITC’s prudent capital-management practices, it used the proceeds to repurchase $28.8 million of common stock at an average price of $13.33 per share, acquire a convenience property worth $5.8 million and repay the outstanding balance on its revolving credit facility.
Further, subsequent to the end of 2022, the company purchased two additional convenience properties for $26.1 million.
Per David R. Lukes, president and CEO of SITC, “In the fourth quarter, we opportunistically sold a select group of assets and recycled the capital into share repurchases and Convenience acquisitions further strengthening SITE’s balance sheet, long-term growth rate and overall portfolio quality.”
SITE Centers has been following an aggressive capital-recycling program through which it is divesting slow-growth assets and redeploying the proceeds for the acquisitions of premium U.S. shopping centers. These centers are convenience-oriented properties that offer strong opportunities for rent growth and redevelopment activities.
Such match-funding initiatives relieve pressure off the company’s balance sheet while paving the way for top-line and cash-flow growth and adding value to the portfolio in the long term.
This retail REIT has a decent balance-sheet position with ample liquidity. As of Sep 30, 2022, it had $891 million of liquidity and an average pro-rata net debt to adjusted EBITDA of 5.3X.
It also enjoys investment-grade credit ratings of BBB-/Baa3/BBB with a stable outlook from S&P/ Moody's/ Fitch, respectively, which render it favorable access to the debt market. With strong financial footing and enough financial flexibility, it is well-placed to capitalize on long-term growth opportunities.
Nonetheless, given the conveniences of online shopping, rising e-commerce adoption is concerning for SITE Centers. Online retailing will likely remain a popular choice among customers, adversely impacting the market share for brick-and-mortar stores.
Also, stiff competition from industry peers and rising interest rates remain key concerns for the company.
Shares of this Zacks Rank #3 (Hold) company have gained 14.9% in the past three months, lower than the industry’s rally of 19.7%.
Stocks to Consider
Some better-ranked stocks from the REIT sector are VICI Properties (VICI - Free Report) , Stag Industrial (STAG - Free Report) and National Retail Properties (NNN - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for VICI Properties’ current-year FFO per share is pegged at $1.92.
The Zacks Consensus Estimate for Stag Industrial’s 2022 FFO per share is pegged at $2.21.
The Zacks Consensus Estimate for National Retail Properties’ ongoing year’s FFO per share stands at $3.20.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Amid the rebounding retail real-estate market, SITE Centers Corp. (SITC - Free Report) has provided an update on its transaction activities for fourth-quarter 2022 and from the beginning of 2023 through Jan 9, 2023.
Reflecting broader retail real-estate market concerns, shares of SITC lost 2.55% on Jan 10 normal trading session on the NYSE.
In fourth-quarter 2022, the company disposed of four shopping centers and one parcel at a wholly-owned shopping center for $166.3 million ($157.8 million at company’s share).
Highlighting SITC’s prudent capital-management practices, it used the proceeds to repurchase $28.8 million of common stock at an average price of $13.33 per share, acquire a convenience property worth $5.8 million and repay the outstanding balance on its revolving credit facility.
Further, subsequent to the end of 2022, the company purchased two additional convenience properties for $26.1 million.
Per David R. Lukes, president and CEO of SITC, “In the fourth quarter, we opportunistically sold a select group of assets and recycled the capital into share repurchases and Convenience acquisitions further strengthening SITE’s balance sheet, long-term growth rate and overall portfolio quality.”
SITE Centers has been following an aggressive capital-recycling program through which it is divesting slow-growth assets and redeploying the proceeds for the acquisitions of premium U.S. shopping centers. These centers are convenience-oriented properties that offer strong opportunities for rent growth and redevelopment activities.
Such match-funding initiatives relieve pressure off the company’s balance sheet while paving the way for top-line and cash-flow growth and adding value to the portfolio in the long term.
This retail REIT has a decent balance-sheet position with ample liquidity. As of Sep 30, 2022, it had $891 million of liquidity and an average pro-rata net debt to adjusted EBITDA of 5.3X.
It also enjoys investment-grade credit ratings of BBB-/Baa3/BBB with a stable outlook from S&P/ Moody's/ Fitch, respectively, which render it favorable access to the debt market. With strong financial footing and enough financial flexibility, it is well-placed to capitalize on long-term growth opportunities.
Nonetheless, given the conveniences of online shopping, rising e-commerce adoption is concerning for SITE Centers. Online retailing will likely remain a popular choice among customers, adversely impacting the market share for brick-and-mortar stores.
Also, stiff competition from industry peers and rising interest rates remain key concerns for the company.
Shares of this Zacks Rank #3 (Hold) company have gained 14.9% in the past three months, lower than the industry’s rally of 19.7%.
Stocks to Consider
Some better-ranked stocks from the REIT sector are VICI Properties (VICI - Free Report) , Stag Industrial (STAG - Free Report) and National Retail Properties (NNN - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for VICI Properties’ current-year FFO per share is pegged at $1.92.
The Zacks Consensus Estimate for Stag Industrial’s 2022 FFO per share is pegged at $2.21.
The Zacks Consensus Estimate for National Retail Properties’ ongoing year’s FFO per share stands at $3.20.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
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