SITE Centers Corp. ( SITC Quick Quote 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.
SITE Centers exited the second quarter with $57.9 million in cash, down from 69.7 million as of Dec 31, 2020.
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.
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
We now look forward to the earnings releases of other REITs, including
Vornado Realty Trust ( VNO Quick Quote VNO - Free Report) , Realty Income Corporation ( O Quick Quote O - Free Report) and Healthpeak Properties, Inc. ( PEAK Quick Quote PEAK - Free Report) , scheduled to be out next week.
Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.