We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SITE Centers (SITC) Q1 OFFO Beats, NOI Falls, Shares Down
Read MoreHide Full Article
Shares of SITE Centers Corp. (SITC - Free Report) tanked 1.3% during Apr 22 regular trading session, after the company reported a year-over-year decline in operating funds from operations (OFFO) per share for first-quarter 2021.
In fact, the retail REIT reported first-quarter 2021 OFFO per share of 28 cents, which surpassed the Zacks Consensus Estimate of 23 cents. The reported figure, however, declined 12.5% year over year.
The adverse impacts of the COVID-19 pandemic as well as reduced interest income and joint venture fees, owing to the termination of joint ventures in the previous year, marred results. Nonetheless, first-quarter results include $5 million of net revenues related to prior periods majorly from cash-basis tenants.
The company generated revenues of $119.99 million in the first quarter, outpacing the Zacks Consensus Estimate of $109.82 million. Also, the top line improved 5.18% year over year.
Per management, “we had an excellent start to the year with another robust quarter of leasing, over $200 million of growth capital raised and continued improvements in both rent collection and deferral repayment trends”.
Quarter in Detail
Same-store net operating income declined 2.1% on a pro-rata basis in the first quarter, excluding redevelopment. The company reported a leased rate of 91.4% as of Mar 31 compared with the prior-year quarter’s figure of 92.9% on a pro-rata basis.
Annualized base rent per occupied square foot was $18.39 on a pro-rata basis as of Mar 31, 2021, down from $18.49 as of Mar 31, 2020. The company, on a pro-rata basis, generated new and renewal leasing spreads of 14.9% and -4.2%, respectively, in the March-end quarter.
Portfolio Activity
The company along with its partners disposed of a parcel of undeveloped land in Richmond Hill, Ontario, for net proceeds of $22.1 million at the company’s share, after accounting for customary closing costs and foreign currency translation.
Balance Sheet
SITE Centers exited the first quarter with $190.8 million in cash, up from 69.7 million as of Dec 31, 2020.
Outlook
The company expects 2021 OFFO per share between 94 cents and $1.02 compared with 90 cents to $1 mentioned earlier. The Zacks Consensus Estimate for the same is pegged at 96 cents.
COVID-19 Update
As of Apr 16, all of the company’s properties were open, while 99% of tenants (at the company’s share and based on average base rents) were open for business.
As of the same date, SITE Centers collected about 96% of rents for the first quarter. Rent collection for the previous three quarters also improved.
Rent deferral agreements with tenants, which remained unpaid, represented 1% of first-quarter 2021 rents, 1% of fourth-quarter 2020 rents, 8% of third-quarter 2020 rents and 6% of second-quarter 2020 rents.
We now look forward to the earnings releases of other REITs like Digital Realty Trust, Inc. (DLR - Free Report) ,Cousins Properties (CUZ - Free Report) , and CubeSmart (CUBE - Free Report) . All three companies are slated to report first-quarter earnings on Apr 29.
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.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
SITE Centers (SITC) Q1 OFFO Beats, NOI Falls, Shares Down
Shares of SITE Centers Corp. (SITC - Free Report) tanked 1.3% during Apr 22 regular trading session, after the company reported a year-over-year decline in operating funds from operations (OFFO) per share for first-quarter 2021.
In fact, the retail REIT reported first-quarter 2021 OFFO per share of 28 cents, which surpassed the Zacks Consensus Estimate of 23 cents. The reported figure, however, declined 12.5% year over year.
The adverse impacts of the COVID-19 pandemic as well as reduced interest income and joint venture fees, owing to the termination of joint ventures in the previous year, marred results. Nonetheless, first-quarter results include $5 million of net revenues related to prior periods majorly from cash-basis tenants.
The company generated revenues of $119.99 million in the first quarter, outpacing the Zacks Consensus Estimate of $109.82 million. Also, the top line improved 5.18% year over year.
Per management, “we had an excellent start to the year with another robust quarter of leasing, over $200 million of growth capital raised and continued improvements in both rent collection and deferral repayment trends”.
Quarter in Detail
Same-store net operating income declined 2.1% on a pro-rata basis in the first quarter, excluding redevelopment. The company reported a leased rate of 91.4% as of Mar 31 compared with the prior-year quarter’s figure of 92.9% on a pro-rata basis.
Annualized base rent per occupied square foot was $18.39 on a pro-rata basis as of Mar 31, 2021, down from $18.49 as of Mar 31, 2020. The company, on a pro-rata basis, generated new and renewal leasing spreads of 14.9% and -4.2%, respectively, in the March-end quarter.
Portfolio Activity
The company along with its partners disposed of a parcel of undeveloped land in Richmond Hill, Ontario, for net proceeds of $22.1 million at the company’s share, after accounting for customary closing costs and foreign currency translation.
Balance Sheet
SITE Centers exited the first quarter with $190.8 million in cash, up from 69.7 million as of Dec 31, 2020.
Outlook
The company expects 2021 OFFO per share between 94 cents and $1.02 compared with 90 cents to $1 mentioned earlier. The Zacks Consensus Estimate for the same is pegged at 96 cents.
COVID-19 Update
As of Apr 16, all of the company’s properties were open, while 99% of tenants (at the company’s share and based on average base rents) were open for business.
As of the same date, SITE Centers collected about 96% of rents for the first quarter. Rent collection for the previous three quarters also improved.
Rent deferral agreements with tenants, which remained unpaid, represented 1% of first-quarter 2021 rents, 1% of fourth-quarter 2020 rents, 8% of third-quarter 2020 rents and 6% of second-quarter 2020 rents.
SITE Centers currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SITE CENTERS CORP. Price, Consensus and EPS Surprise
SITE CENTERS CORP. price-consensus-eps-surprise-chart | SITE CENTERS CORP. Quote
We now look forward to the earnings releases of other REITs like Digital Realty Trust, Inc. (DLR - Free Report) ,Cousins Properties (CUZ - Free Report) , and CubeSmart (CUBE - Free Report) . All three companies are slated to report first-quarter earnings on Apr 29.
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.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>