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SITE Centers (SITC) Q4 OFFO & Revenues Top Estimates, NOI Up
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SITE Centers Corp. (SITC - Free Report) reported fourth-quarter 2021 operating funds from operations (OFFO) per share of 30 cents, beating the Zacks Consensus Estimate of 27 cents. The reported figure also jumped 20% year over year.
Results were aided by a strong leasing activity and an improvement in same-store net operating income (NOI) on a pro-rata basis.
SITE Centers generated revenues of $124.6 million in the reported quarter, outpacing the Zacks Consensus Estimate of $120.9 million. Additionally, the top line improved 14.8% year over year.
For 2021, SITE Centers reported OFFO per share of $1.17, up 18.2% from the prior year’s 99 cents. Further, the figure topped the Zacks Consensus Estimate of $1.14. Total revenues of $492.3 million were up 18.1% year over year.
Same-store NOI rose 13.9% on a pro-rata basis in 2021, excluding redevelopment.
Per management, “Fourth quarter and full-year 2021 results were ahead of expectations on almost every front with record new leasing activity and above-guidance investment volume funded, in part, by proceeds from the $190 million of preferred dividends paid to SITE Centers by Retail Value Inc..”
Quarter in Detail
The same-store NOI improved 13.2% on a pro-rata basis in the fourth quarter, excluding redevelopment. SITC reported a leased rate of 92.7% as of Dec 31 compared with the prior-year quarter’s 91.6% on a pro-rata basis.
The annualized base rent per occupied square foot was $18.33 on a pro-rata basis as of Dec 31, 2021, down from $18.50 as of Dec 31, 2020. SITE Centers, on a pro-rata basis, generated new and renewal leasing spreads of 14.7% and 4%, respectively, in the December quarter.
Balance Sheet
SITE Centers exited the fourth quarter with $41.8 million of cash, down from 69.7 million as of Dec 31, 2020.
Outlook
SITE Centers projects 2022 OFFO per share between $1.08 and $1.13. The Zacks Consensus Estimate for the same is pegged at $1.10.
SITE Centers currently carries a Zacks Rank #4 (Sell).
SITE CENTERS CORP. Price, Consensus and EPS Surprise
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported an adjusted FFO of $1.97 per share for fourth-quarter 2021, up 7.1% from the year-ago quarter’s $1.84. The figure surpassed the Zacks Consensus Estimate of $1.96.
The year-over-year improvement in ARE’s FFO resulted from 24.4% top-line growth to $576.9 million. Results reflected decent internal growth. Alexandria witnessed a continued healthy leasing activity and rental rate growth during the quarter.
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported fourth-quarter 2021 core FFO per share of $1.90, surpassing the Zacks Consensus Estimate of $1.87. The reported number increased 15.2% from the year-ago figure of $1.57.
MAA’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. The average physical occupancy for the same-store portfolio also increased year over year.
Equity Residential’s (EQR - Free Report) fourth-quarter 2021 normalized FFO per share of 82 cents outpaced the Zacks Consensus Estimate of 80 cents. Rental income of $645.1 million also beat the consensus mark of $628.6 million.
On a year-over-year basis, Equity Residential’s normalized FFO per share improved 7.9%, while rental income rose 5.2%. EQR’s results were driven by strong physical occupancy, a substantial improvement in pricing power and higher non-Residential revenues.
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) Q4 OFFO & Revenues Top Estimates, NOI Up
SITE Centers Corp. (SITC - Free Report) reported fourth-quarter 2021 operating funds from operations (OFFO) per share of 30 cents, beating the Zacks Consensus Estimate of 27 cents. The reported figure also jumped 20% year over year.
Results were aided by a strong leasing activity and an improvement in same-store net operating income (NOI) on a pro-rata basis.
SITE Centers generated revenues of $124.6 million in the reported quarter, outpacing the Zacks Consensus Estimate of $120.9 million. Additionally, the top line improved 14.8% year over year.
For 2021, SITE Centers reported OFFO per share of $1.17, up 18.2% from the prior year’s 99 cents. Further, the figure topped the Zacks Consensus Estimate of $1.14. Total revenues of $492.3 million were up 18.1% year over year.
Same-store NOI rose 13.9% on a pro-rata basis in 2021, excluding redevelopment.
Per management, “Fourth quarter and full-year 2021 results were ahead of expectations on almost every front with record new leasing activity and above-guidance investment volume funded, in part, by proceeds from the $190 million of preferred dividends paid to SITE Centers by Retail Value Inc..”
Quarter in Detail
The same-store NOI improved 13.2% on a pro-rata basis in the fourth quarter, excluding redevelopment. SITC reported a leased rate of 92.7% as of Dec 31 compared with the prior-year quarter’s 91.6% on a pro-rata basis.
The annualized base rent per occupied square foot was $18.33 on a pro-rata basis as of Dec 31, 2021, down from $18.50 as of Dec 31, 2020. SITE Centers, on a pro-rata basis, generated new and renewal leasing spreads of 14.7% and 4%, respectively, in the December quarter.
Balance Sheet
SITE Centers exited the fourth quarter with $41.8 million of cash, down from 69.7 million as of Dec 31, 2020.
Outlook
SITE Centers projects 2022 OFFO per share between $1.08 and $1.13. The Zacks Consensus Estimate for the same is pegged at $1.10.
SITE Centers currently carries a Zacks Rank #4 (Sell).
SITE CENTERS CORP. Price, Consensus and EPS Surprise
SITE CENTERS CORP. price-consensus-eps-surprise-chart | SITE CENTERS CORP. Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITs
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported an adjusted FFO of $1.97 per share for fourth-quarter 2021, up 7.1% from the year-ago quarter’s $1.84. The figure surpassed the Zacks Consensus Estimate of $1.96.
The year-over-year improvement in ARE’s FFO resulted from 24.4% top-line growth to $576.9 million. Results reflected decent internal growth. Alexandria witnessed a continued healthy leasing activity and rental rate growth during the quarter.
Mid-America Apartment Communities, Inc. (MAA - Free Report) , commonly referred to as MAA, reported fourth-quarter 2021 core FFO per share of $1.90, surpassing the Zacks Consensus Estimate of $1.87. The reported number increased 15.2% from the year-ago figure of $1.57.
MAA’s quarterly results were driven by an increase in the average effective rent per unit for the same-store portfolio. The average physical occupancy for the same-store portfolio also increased year over year.
Equity Residential’s (EQR - Free Report) fourth-quarter 2021 normalized FFO per share of 82 cents outpaced the Zacks Consensus Estimate of 80 cents. Rental income of $645.1 million also beat the consensus mark of $628.6 million.
On a year-over-year basis, Equity Residential’s normalized FFO per share improved 7.9%, while rental income rose 5.2%. EQR’s results were driven by strong physical occupancy, a substantial improvement in pricing power and higher non-Residential revenues.
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.