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SITE Centers (SITC) Beat Q1 OFFO Estimates, Scraps Dividend
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SITE Centers Corp.’s (SITC - Free Report) first-quarter 2020 operating funds from operations (OFFO) per share of 32 cents surpassed the Zacks Consensus Estimate of 29 cents. The reported figure remained flat year over year.
The company generated revenues of $114.1 million in the quarter, beating the Zacks Consensus Estimate of $111.3 million. Also, the top line came in higher than the $113.7 million recorded in the prior year.
The quarterly results reflect healthy leasing activity and same-store net operating income (NOI) growth. Management informed that the company has no material near-term maturities and capital commitments. However, the company scrapped its dividend payments for the second quarter in light of the coronavirus pandemic. Though the company has not made any decisions with respect to its dividend policy beyond the second quarter of 2020 and intends to maintain compliance with REIT taxable income distribution requirements.
Quarter in Detail
Same-store NOI growth on a pro-rata basis was 3.7% in the first quarter, excluding redevelopment. The company reported a leased rate of 92.9% as of Mar 31, 2020, down 10 basis points from the prior-year quarter’s end, on a pro-rata basis.
Annualized base rent per occupied square foot was $18.49 on a pro-rata basis as of Mar 31, 2020, up 3.2% from $17.92 as of Mar 31, 2019. The company, on a pro-rata basis, generated new and renewal leasing spreads of 20.1% and 3.3%, respectively, in the first quarter.
Portfolio Activity
SITE Centers closed the sale of its 15% stake in the DDRTC joint venture to its partner, TIAA-CREF. This generated net proceeds of about $141 million for the company.
The company also sold one shopping center and land for a total price of $33.4 million, out of which SITE Centers’ share came in at $13.4 million, including $7.5 million from the repayment of a mezzanine loan.
Balance Sheet
SITE Centers exited the March-end quarter with $514.3 million in cash, up from $16.1 million as of Dec 31, 2019.
The company repurchased 0.8 million common shares for $7.5 million, for a weighted average price of $9.18.
We, now, look forward to the earnings releases of other REITs, Omega Healthcare Investors, Inc. (OHI - Free Report) , Vornado Realty Trust (VNO - Free Report) and Realty Income Corporation (O - Free Report) . All three companies are scheduled to release quarterly numbers on May 4.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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SITE Centers (SITC) Beat Q1 OFFO Estimates, Scraps Dividend
SITE Centers Corp.’s (SITC - Free Report) first-quarter 2020 operating funds from operations (OFFO) per share of 32 cents surpassed the Zacks Consensus Estimate of 29 cents. The reported figure remained flat year over year.
The company generated revenues of $114.1 million in the quarter, beating the Zacks Consensus Estimate of $111.3 million. Also, the top line came in higher than the $113.7 million recorded in the prior year.
The quarterly results reflect healthy leasing activity and same-store net operating income (NOI) growth. Management informed that the company has no material near-term maturities and capital commitments. However, the company scrapped its dividend payments for the second quarter in light of the coronavirus pandemic. Though the company has not made any decisions with respect to its dividend policy beyond the second quarter of 2020 and intends to maintain compliance with REIT taxable income distribution requirements.
Quarter in Detail
Same-store NOI growth on a pro-rata basis was 3.7% in the first quarter, excluding redevelopment. The company reported a leased rate of 92.9% as of Mar 31, 2020, down 10 basis points from the prior-year quarter’s end, on a pro-rata basis.
Annualized base rent per occupied square foot was $18.49 on a pro-rata basis as of Mar 31, 2020, up 3.2% from $17.92 as of Mar 31, 2019. The company, on a pro-rata basis, generated new and renewal leasing spreads of 20.1% and 3.3%, respectively, in the first quarter.
Portfolio Activity
SITE Centers closed the sale of its 15% stake in the DDRTC joint venture to its partner, TIAA-CREF. This generated net proceeds of about $141 million for the company.
The company also sold one shopping center and land for a total price of $33.4 million, out of which SITE Centers’ share came in at $13.4 million, including $7.5 million from the repayment of a mezzanine loan.
Balance Sheet
SITE Centers exited the March-end quarter with $514.3 million in cash, up from $16.1 million as of Dec 31, 2019.
The company repurchased 0.8 million common shares for $7.5 million, for a weighted average price of $9.18.
SITE Centers carries a Zacks Rank #3 (Hold), at present. 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, Omega Healthcare Investors, Inc. (OHI - Free Report) , Vornado Realty Trust (VNO - Free Report) and Realty Income Corporation (O - Free Report) . All three companies are scheduled to release quarterly numbers on May 4.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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