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SITE Centers (SITC) Refinances Credit Facility, Stock Up

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SITE Centers Corp. (SITC - Free Report) has strengthened its balance-sheet position by refinancing its $950 million unsecured revolving credit facility. It also extended the maturity to Jun 6, 2026, with two options available to extend the maturity by six months.

Reflecting positive sentiments, shares of this retail real estate investment trust (REIT) appreciated 1.68% in the Jun 7 trading session following the announcement.

Additionally, the underlying benchmark will shift to SOFR instead of the London interbank offered rate (LIBOR) as part of the refinancing procedure.

SITE Centers also enhanced its borrowing potential by increasing its unsecured term loan facility from $100 million to $200 million. The maturity date for the same was stretched to Jun 6, 2027.

There was an availability of $100 million under the delayed draw feature through Dec 6, 2022, with no amount drawn on closing on the company’s end.

On the balance sheet front, SITE Centers exited the first quarter with $872 million of liquidity, including $855 million of availability in the lines of credit. Also, as of Mar 31, 2022, SITC had $76 million of debt maturing for 2022.

SITE Centers actively engages in an aggressive capital-recycling program through which it divests slow-growth assets and redeploys proceeds for the acquisitions of premium U.S. shopping centers.

It also completed the previously announced disposition of the company’s 20% interest in the SAU Joint Venture to its partner for $155.7 million in April 2022. In the first quarter, it acquired $140 million of assets. Having accessibility to secured and unsecured debt markets at attractive funding costs enables the company to carry on with its expansion activities.

Shares of this Zacks Rank #2 (Buy) company have lost 5.1% compared with the industry’s decline of 6% over the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Stocks to Consider

Some better-ranked stocks from the REIT sector are Prologis (PLD - Free Report) , OUTFRONT Media (OUT - Free Report) and Cedar Realty Trust .

The Zacks Consensus Estimate for Prologis’ 2022 funds from operations (FFO) per share has moved 1.8% upward in the past two months to $5.15. PLD presently carries a Zacks Rank of 2 (Buy).

The Zacks Consensus Estimate for OUTFRONT Media’s current-year FFO per share has moved 1.5% northward in the past month to $2.09. OUT also carries a Zacks Rank of 1 at present.

The Zacks Consensus Estimate for Cedar Realty Trust’s ongoing year’s FFO per share has been raised 3.6% over the past month to $2.59. CDR carries a Zacks Rank #2, currently.

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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