Shares of SITE Centers Corp. SITC plunged 5.03% in the Feb. 27 regular trading session on the NYSE after it reported fourth-quarter 2024 operating funds from operations (OFFO) per share of 16 cents, which missed the Zacks Consensus Estimate of 23 cents.

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Results reflect a fall in revenues and leased rate on year-over-year basis. However, increase in commenced rate supported the results to some extent.

SITE Centers generated revenues of $32.9 million, which missed the Zacks Consensus Estimate of $42.7 million.

On a year-over-year basis, the top line declined 66.4%, and OFFO per share fell 84.5%.

Per David R. Lukes, president and CEO of SITC, “The company’s commenced rate increased through new tenant store openings in an environment of strong leasing demand, and we intend to capitalize where we view strong private market interest in purchasing high-quality assets by marketing a subset of shopping centers for sale. Going forward, SITE Centers intends to maximize value through continued leasing, asset management and potential additional asset sales.”

For 2024, SITE Centers reported OFFO per share of $3.17, a decrease of 33% from the prior year’s number. Further, the figure lagged the Zacks Consensus Estimate of $3.24. Total revenues of $271.1 million were 39.2% down year over year and missed the Zacks Consensus Estimate of $366.8 million.

SITC’s Quarter in Detail

SITC reported a leased rate of 91.1% on a pro-rata basis as of Dec. 31, 2024, down from 91.3% as of Sept. 30, 2024. The figure compared unfavorably with the prior-year quarter’s figure of 92.2%.

On a pro-rata basis, it reported commenced rate of 90.6% as of Dec. 31, 2024, up from 89.8% as of Sept. 30, 2024. The figure compared favorably with the year-ago quarter’s 89.6%.

The base rent per square foot was $19.64 as of Dec. 31, 2024, up from $19.42 recorded a year ago.

SITE Centers, on a pro-rata basis, generated cash renewal leasing spreads of 10.6% in the fourth quarter.

SITE Centers exited the fourth quarter with $54.6 million of cash, down from $1.06 billion as of Sept. 30, 2024.

SITE Centers currently carries a Zacks Rank #3 (Hold).

SITE CENTERS CORP. Price, Consensus and EPS SurpriseSITE CENTERS CORP. Price, Consensus and EPS Surprise

SITE CENTERS CORP. price-consensus-eps-surprise-chart | SITE CENTERS CORP. Quote

Performance of Other Retail REITs

Federal Realty Investment Trust’s FRT fourth-quarter 2024 funds from operations (FFO) per share of $1.73 came in line with the Zacks Consensus Estimate. This also marked a rise of 5.5% from the year-ago quarter’s tally of $1.64.

Story Continues

Results reflected healthy leasing activity and significant occupancy gains at its properties. FRT currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Regency Centers Corporation REG reported fourth-quarter 2024 NAREIT FFO per share of $1.09, outpacing the Zacks Consensus Estimate of $1.07. The figure increased 6.9% from the prior-year quarter.

Results reflected healthy leasing activity. It witnessed a year-over-year improvement in the same property net operating income and base rents during the quarter. REG currently carries a Zacks Rank #2 (Buy).

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

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