SITE Centers Corp. SITC reported fourth-quarter 2023 operating funds from operations (OFFO) per share of 26 cents, in line with the Zacks Consensus Estimate.

Results reflected lower-than-anticipated revenues despite a decent rise in base rent per square foot and same-store net operating income (NOI). Reflecting positive sentiments, shares of the company gained 1.51% in the Feb 13 regular trading session on the NYSE. It continued the rally of 3.12% in the after-hours market trading.

SITE Centers generated revenues of $123.2 million in the reported quarter, missing the Zacks Consensus Estimate of $131.7 million.

On a year-over-year basis, the top line declined 9.7%, and OFFO per share fell 10.3%.

Per David R. Lukes, president and CEO of SITC, “We are well underway on the timeline to form and scale the first public real estate company focused exclusively on Convenience properties and remain excited by the prospects and opportunity set. Additionally, we believe the transactions closed or announced in the last three months, along with the significant disposition activity in process, position both SITE Centers and Curbline Properties to create stakeholder value.”

For 2023, SITE Centers reported OFFO per share of $1.18, remaining unchanged from the prior year’s number. Further, the figure outpaced the Zacks Consensus Estimate of $1.17. Total revenues of $539.5 million were marginally down year over year.

Quarter in Detail

SITC reported a leased rate of 94.5% on a pro-rata basis as of Dec 31, 2023, down from 94.6% as of Sep 30, 2023. The figure compared unfavorably with the prior-year quarter’s tally of 95.4%.

The base rent per square foot was $20.35 as of Dec 31, 2023, improving from $19.52 recorded a year ago.

SITE Centers, on a pro-rata basis, generated cash new and cash renewal leasing spreads of 9.2% and 3.1%, respectively, in the fourth quarter.

Moreover, the same-store NOI improved 0.3% on a pro-rata basis in the reported quarter, inclusive of redevelopment, from the prior-year quarter.

SITE Centers exited the fourth quarter of 2023 with $552 million of cash, up from $26.6 million as of Sep 30, 2023.

Portfolio Activity

In the fourth quarter, SITC acquired four convenience shopping centers for $62.4 million. These included Point at University in Charlotte, NC, for $8.9 million, Estero Crossing in Cape Coral, FL, for $17.1 million, Presidential Plaza North in Atlanta, GA, for $7.4 million and Shops at Lake Pleasant in Phoenix, AZ, for $29 million.

The company disposed of 12 wholly-owned shopping centers during the quarter for $736.2 million.