SITE Centers Corp (SITC) Reports Q3 2023 Earnings: Net Income Drops to $45.9M
Third quarter net income attributable to common shareholders was $45.9 million, down from $63.4 million in Q3 2022.
Operating FFO for Q3 2023 was $69.9 million, up from $62.8 million in the same period last year.
SITE Centers Corp (NYSE:SITC) sold 11 wholly owned shopping centers in Q3 and Q4 to date for an aggregate price of $645.6 million.
The company acquired three convenience shopping centers during the quarter for an aggregate price of $28.1 million.
On October 30, 2023, SITE Centers Corp (NYSE:SITC), an owner and manager of open-air shopping centers, released its earnings report for the quarter ended September 30, 2023. The company reported a net income attributable to common shareholders of $45.9 million, or $0.22 per diluted share, as compared to a net income of $63.4 million, or $0.30 per diluted share, in the same period last year. The decrease in net income was primarily due to lower income from joint ventures as a result of asset sales in the third quarter of 2022, partially offset by higher gain on sale from asset sales, property net operating income ("NOI") growth, and the net impact of property acquisitions.
Financial Performance
The company's Operating FFO for the third quarter was $69.9 million, or $0.33 per diluted share, compared to $62.8 million, or $0.29 per diluted share, in the same period last year. This increase was primarily due to property NOI growth and the net impact of property acquisitions. The third quarter OFFO included $8.1 million, or $0.04 per diluted share, of income related to below-market lease adjustments primarily for terminated Bed, Bath & Beyond leases.
Transaction Activities
SITE Centers Corp (NYSE:SITC) sold 11 wholly owned shopping centers in the third quarter and fourth quarter to date for an aggregate price of $645.6 million. During the third quarter, the company sold five wholly-owned shopping centers for an aggregate price of $118.3 million. The company also acquired three convenience shopping centers during the quarter for an aggregate price of $28.1 million.
Key Operating Results
The company reported an increase of 2.9% in same-store net operating income (SSNOI) on a pro rata basis for the third quarter of 2023, compared to the year-ago period. The leased rate was 94.6% at September 30, 2023, compared to 95.5% at June 30, 2023, and 95.0% at September 30, 2022. The sequential decline was primarily related to the recapture of the remaining units leased by Bed, Bath & Beyond and the sale of properties in the third quarter with an average leased rate of 98.5%, partially offset by new leasing activity.
2023 Full-Year Guidance
The company has updated its 2023 full-year guidance for net income attributable to common shareholders and Operating FFO per share to reflect third quarter results and announced transaction activity. The revised guidance for net income attributable to common shareholders is between $0.28 and $0.33 per diluted share, and for Operating FFO is between $1.16 and $1.18 per diluted share.
Explore the complete 8-K earnings release (here) from SITE Centers Corp for further details.
This article first appeared on GuruFocus.
