SITE Centers Q1 2025 slides: Financial metrics reflect post-Curbline spin-off reality

SITE Centers Corp. (NYSE:SITC) released its first quarter 2025 financial results on May 7, showing the significant impact of last year’s Curbline Properties spin-off on the company’s financial metrics while maintaining relatively stable leasing performance.

Quarterly Performance Highlights

SITE Centers reported net income attributable to common shareholders of $3.1 million, or $0.06 per diluted share, for the first quarter of 2025. This represents a substantial improvement from the net loss of $26.3 million, or $0.51 per diluted share, in the same period last year. However, Operating Funds From Operations (FFO) declined significantly to $8.3 million ($0.16 per diluted share) from $59.8 million ($1.14 per diluted share) in Q1 2024.

The company’s leasing performance remained relatively stable with a leased rate of 89.8% and a commenced rate of 89.4% as of March 31, 2025. During the quarter, SITE Centers executed five new leases and 17 renewals covering approximately 75,000 square feet of retail space, generating cash renewal leasing spreads of 3.4%.

As shown in the following quarterly results summary:

Detailed Financial Analysis

The company’s financial statements clearly reflect the impact of the Curbline Properties spin-off, which was completed on October 1, 2024. Rental income decreased significantly to $31.5 million in Q1 2025 from $91.7 million in Q1 2024, a decline of approximately 66%. Similarly, net operating income fell to $28.5 million from $63.8 million in the year-ago period.

On the positive side, interest expense decreased substantially to $5.6 million from $18.7 million in Q1 2024, reflecting the company’s reduced debt load following the restructuring.

The reconciliation between net income and FFO shows the detailed adjustments made to arrive at the company’s key performance metrics:

The consolidated income statement provides a comprehensive view of the company’s financial performance, highlighting the significant year-over-year changes:

SITE Centers maintained a stable balance sheet with total assets of $929.8 million as of March 31, 2025, compared to $933.6 million at the end of 2024. The company’s equity position improved slightly to $519.6 million from $516.7 million in the previous quarter.

Strategic Initiatives & Portfolio Management

Following the Curbline spin-off, SITE Centers has focused on managing its portfolio of open-air shopping centers. The company’s capital structure as of March 31, 2025, shows a market value per share of $12.84 with 52,445 common shares outstanding and net debt of $332 million.

The company’s debt profile and capital structure are detailed below:

SITE Centers’ portfolio now consists of 33 shopping centers with an average base rent per square foot of $19.75. The company maintains geographic diversification with properties in major metropolitan areas including Chicago, Trenton, Orlando, and Phoenix.

The leasing summary shows the company’s ability to maintain rental rates, with new leases commanding an average base rent of $32.37 per square foot and renewals at $24.88 per square foot:

Forward-Looking Statements

SITE Centers’ lease expiration schedule provides insight into future revenue stability. The company has a relatively balanced expiration profile over the coming years, with approximately 111,000 square feet of leases expiring in 2025.

The company’s tenant diversification remains strong with its top 30 tenants representing a balanced mix of national retailers. TJX Companies (NYSE:TJX) leads the tenant roster, accounting for 4.6% of total pro rata base rent, followed by Burlington (NYSE:BURL), Kroger (NYSE:KR), PetSmart, and LA Fitness.

SITE Centers’ portfolio metrics over time show the evolution of key performance indicators following the corporate restructuring:

The company continues to demonstrate solid leasing activity across its wholly-owned properties:

As well as in its unconsolidated joint ventures:

SITE Centers stock closed at $12.05 on May 7, 2025, up 1.35% for the day, and currently trades within its 52-week range of $10.46 to $18.15. The company’s market performance reflects investor assessment of its post-spin-off strategy and portfolio quality.

While the financial results show significant year-over-year changes due to the Curbline spin-off, SITE Centers appears to be stabilizing its operations with solid leasing metrics and a focused portfolio strategy. Investors will likely be watching for continued stabilization and potential growth opportunities in the coming quarters as the company fully establishes its post-spin-off identity.

Full presentation:

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