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SITE Centers (SITC) Q2 OFFO Beats, NOI Rises, Shares Up
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Shares of SITE Centers Corp. (SITC - Free Report) rose 4.09% during the Jul 29 regular trading session, after the company reported better-than-expected operating funds from operations (OFFO) per share and revenues for second-quarter 2021.
Notably, the retail REIT reported second-quarter OFFO per share of 31 cents, which surpassed the Zacks Consensus Estimate of 24 cents. The reported figure also surged 47.6% year over year.
The quarterly results reflect favorable impact of the COVID-19 pandemic, partially offset by lower interest income and joint-venture fees, due to the termination of joint ventures in the previous year. The second-quarter results include $7.6 million of net revenues related to prior periods majorly from cash-basis tenants.
The company generated revenues of $126.71 million in the reported quarter, outpacing the Zacks Consensus Estimate of $116.42 million. Additionally, the top line improved 29% year over year.
Per management, “SITE Centers had a very strong second quarter with continued improvements in collections and deferral repayment trends, strong leasing activity and the deployment of nearly $50 million of capital into new acquisitions,”.
Quarter in Detail
Same-store net operating income improved 28.7% on a pro-rata basis in the second quarter, excluding redevelopment. The company reported a leased rate of 91.8% as of Jun 30 compared with the prior-year quarter’s 92.4% on a pro-rata basis.
Annualized base rent per occupied square foot was $18.39 on a pro-rata basis as of Jun 30, 2021, down from $18.51 as of Jun 30, 2020. The company, on a pro-rata basis, generated new and renewal leasing spreads of 5.3% and 5.2%, respectively, in the June-end quarter.
Balance Sheet
SITE Centers exited the second quarter with $57.9 million in cash, down from 69.7 million as of Dec 31, 2020.
Outlook
The company projects 2021 OFFO per share to lie between $1.06 and $1.10 compared with the 94 cents to $1.02 mentioned earlier. The Zacks Consensus Estimate for the same is pegged at $1.02.
COVID-19 Update
As of Jul 21, all of the company’s properties were open and operational, with 100% of tenants (at the company’s share and based on average base rents) open for business.
As of the same date, SITE Centers collected about 98% of rents for the second quarter. Rent collection for the previous four quarters also improved.
Rent deferral agreements with tenants, which remained unpaid, represented 4% of third-quarter 2020 rents and 2% of second-quarter 2020 rents. The deferral arrangements remained immaterial for the fourth quarter of 2020 through the second quarter of 2021.
We now look forward to the earnings releases of other REITs, including Vornado Realty Trust (VNO - Free Report) , Realty Income Corporation (O - Free Report) and Healthpeak Properties, Inc. , scheduled to be out next week.
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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SITE Centers (SITC) Q2 OFFO Beats, NOI Rises, Shares Up
Shares of SITE Centers Corp. (SITC - Free Report) rose 4.09% during the Jul 29 regular trading session, after the company reported better-than-expected operating funds from operations (OFFO) per share and revenues for second-quarter 2021.
Notably, the retail REIT reported second-quarter OFFO per share of 31 cents, which surpassed the Zacks Consensus Estimate of 24 cents. The reported figure also surged 47.6% year over year.
The quarterly results reflect favorable impact of the COVID-19 pandemic, partially offset by lower interest income and joint-venture fees, due to the termination of joint ventures in the previous year. The second-quarter results include $7.6 million of net revenues related to prior periods majorly from cash-basis tenants.
The company generated revenues of $126.71 million in the reported quarter, outpacing the Zacks Consensus Estimate of $116.42 million. Additionally, the top line improved 29% year over year.
Per management, “SITE Centers had a very strong second quarter with continued improvements in collections and deferral repayment trends, strong leasing activity and the deployment of nearly $50 million of capital into new acquisitions,”.
Quarter in Detail
Same-store net operating income improved 28.7% on a pro-rata basis in the second quarter, excluding redevelopment. The company reported a leased rate of 91.8% as of Jun 30 compared with the prior-year quarter’s 92.4% on a pro-rata basis.
Annualized base rent per occupied square foot was $18.39 on a pro-rata basis as of Jun 30, 2021, down from $18.51 as of Jun 30, 2020. The company, on a pro-rata basis, generated new and renewal leasing spreads of 5.3% and 5.2%, respectively, in the June-end quarter.
Balance Sheet
SITE Centers exited the second quarter with $57.9 million in cash, down from 69.7 million as of Dec 31, 2020.
Outlook
The company projects 2021 OFFO per share to lie between $1.06 and $1.10 compared with the 94 cents to $1.02 mentioned earlier. The Zacks Consensus Estimate for the same is pegged at $1.02.
COVID-19 Update
As of Jul 21, all of the company’s properties were open and operational, with 100% of tenants (at the company’s share and based on average base rents) open for business.
As of the same date, SITE Centers collected about 98% of rents for the second quarter. Rent collection for the previous four quarters also improved.
Rent deferral agreements with tenants, which remained unpaid, represented 4% of third-quarter 2020 rents and 2% of second-quarter 2020 rents. The deferral arrangements remained immaterial for the fourth quarter of 2020 through the second quarter of 2021.
SITE Centers currently carries a Zacks Rank #2 (Buy). 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, including Vornado Realty Trust (VNO - Free Report) , Realty Income Corporation (O - Free Report) and Healthpeak Properties, Inc. , scheduled to be out next week.
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.