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SITE Centers (SITC) Q3 OFFO & Revenues Top Estimates, NOI Up
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SITE Centers Corp. (SITC - Free Report) reported third-quarter operating funds from operations (OFFO) per share per share of 29 cents, beating the Zacks Consensus Estimate of 24 cents. The reported figure also jumped 26.1% year over year.
The quarterly results reflect favorable impact of the COVID-19 pandemic, partially offset by a lower interest income and joint-venture fees, due to the termination of joint ventures in 2020. The third-quarter results include $7.6 million of net revenues related to the prior periods majorly from cash-basis tenants.
The company generated revenues of $121.08 million in the reported quarter, outpacing the Zacks Consensus Estimate of $119.3 million. Additionally, the top line improved 26.2% year over year.
Per management, “Third quarter results and recent activity highlight SITE Centers’ continued success and momentum on multiple fronts: new leasing volume was the highest for any quarter in over two years, the Company met 2021 investment goals with the acquisition of Hammond Springs, and in October Retail Value Inc. declared and paid $190 million of preferred dividends to SITE Center.”
Quarter in Detail
The same-store net operating income improved 20.5% on a pro-rata basis in the third quarter, excluding redevelopment. The company reported a leased rate of 92.3% as of Sep 30 compared with the prior-year quarter’s 91.9% on a pro-rata basis.
The annualized base rent per occupied square foot was $18.44 on a pro-rata basis as of Sep 30, 2021, down from $18.53 as of Sep 30, 2020. The company, on a pro-rata basis, generated new and renewal leasing spreads of 18.1% and 2.6%, respectively, in the September-end quarter.
Balance Sheet
SITE Centers exited the third quarter with $61.9 million in cash, down from 69.7 million as of Dec 31, 2020.
Outlook
The company projects 2021 OFFO per share to lie between $1.13 and $1.14 compared with the $1.06-$1.10 cents estimated earlier. The Zacks Consensus Estimate for the same is pegged at $1.10.
COVID-19 Update
As of Oct 15, 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 99% of rents for the third quarter. Rent collection for the previous four quarters also improved. Rent deferral agreements with tenants, which remained unpaid, represented nearly 1% of 2020 rents. The deferral arrangements remained immaterial from the first quarter through the third quarter of 2021.
We now look forward to the earnings releases of other REITs like AvalonBay Communities (AVB - Free Report) , Duke Realty scheduled for Oct 27, and Equinix, Inc. (EQIX - Free Report) for Nov 3.
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) Q3 OFFO & Revenues Top Estimates, NOI Up
SITE Centers Corp. (SITC - Free Report) reported third-quarter operating funds from operations (OFFO) per share per share of 29 cents, beating the Zacks Consensus Estimate of 24 cents. The reported figure also jumped 26.1% year over year.
The quarterly results reflect favorable impact of the COVID-19 pandemic, partially offset by a lower interest income and joint-venture fees, due to the termination of joint ventures in 2020. The third-quarter results include $7.6 million of net revenues related to the prior periods majorly from cash-basis tenants.
The company generated revenues of $121.08 million in the reported quarter, outpacing the Zacks Consensus Estimate of $119.3 million. Additionally, the top line improved 26.2% year over year.
Per management, “Third quarter results and recent activity highlight SITE Centers’ continued success and momentum on multiple fronts: new leasing volume was the highest for any quarter in over two years, the Company met 2021 investment goals with the acquisition of Hammond Springs, and in October Retail Value Inc. declared and paid $190 million of preferred dividends to SITE Center.”
Quarter in Detail
The same-store net operating income improved 20.5% on a pro-rata basis in the third quarter, excluding redevelopment. The company reported a leased rate of 92.3% as of Sep 30 compared with the prior-year quarter’s 91.9% on a pro-rata basis.
The annualized base rent per occupied square foot was $18.44 on a pro-rata basis as of Sep 30, 2021, down from $18.53 as of Sep 30, 2020. The company, on a pro-rata basis, generated new and renewal leasing spreads of 18.1% and 2.6%, respectively, in the September-end quarter.
Balance Sheet
SITE Centers exited the third quarter with $61.9 million in cash, down from 69.7 million as of Dec 31, 2020.
Outlook
The company projects 2021 OFFO per share to lie between $1.13 and $1.14 compared with the $1.06-$1.10 cents estimated earlier. The Zacks Consensus Estimate for the same is pegged at $1.10.
COVID-19 Update
As of Oct 15, 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 99% of rents for the third quarter. Rent collection for the previous four quarters also improved.
Rent deferral agreements with tenants, which remained unpaid, represented nearly 1% of 2020 rents. The deferral arrangements remained immaterial from the first quarter through the third quarter of 2021.
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 AvalonBay Communities (AVB - Free Report) , Duke Realty scheduled for Oct 27, and Equinix, Inc. (EQIX - Free Report) for Nov 3.
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.