Site Centers Serves DTP Buy-Sell Notice After Sales
The REIT posted a $1.3 million net loss, or $0.03 a share, and held $238.9 million of unrestricted cash at June 30.
SITE Centers Corp. (SITC), an owner and manager of open-air shopping centers, posted a second-quarter net loss of $1.3 million, or $0.03 a share, as it continued to shrink its portfolio and moved to force a resolution of its remaining joint venture.
A year earlier the company reported net income of $46.5 million, or $0.88 a share. The company said the year-over-year decline was primarily the result of a smaller gain on disposition of real estate, higher impairment charges and lower net operating income after property sales, offset by higher interest income and lower interest expense and depreciation.
Operating funds from operations swung to a loss of $4.6 million, or $0.09 a share, from income of $8.3 million, or $0.16 a share, a year earlier. The company attributed that move primarily to lower NOI from dispositions, partly offset by more interest income and less interest expense.
Rental income was $6.8 million. Net operating income was $2.0 million. Interest expense was zero. The company recorded a $7.8 million net gain on disposition of real estate.
In the quarter it sold Meadowmont Crossings and the Pike Outlets for aggregate gross prices of $61.1 million, with net proceeds of about $56.5 million after prorations, allocations and other credits. Year to date, President and Chief Executive Officer David R. Lukes said the company had sold five properties, a land parcel and a joint venture interest for aggregate gross sales prices of about $167.8 million.
The leased rate was 82.5% at June 30, compared with 87.8% at year-end 2025 and 88.1% a year earlier, on a pro rata basis. The company said the change was due primarily to transactional activity and the remaining mix of properties. Operating centers at 100% ownership fell to 14 from 16 at March 31. Gross leasable area on a pro rata owned-and-ground-lease share was 1.14 million square feet. Base rent was $18.40 a square foot.
It executed two new leases and 14 renewals covering 64,702 square feet.
Unrestricted cash was $238.9 million at June 30. The company said it expects to maintain a higher cash balance pending resolution of the DTP joint venture to maximize options to monetize its remaining joint venture investment.
On June 29 it delivered a buy-sell notice to its DTP partner. Unless an alternative consensual resolution is agreed, the partner must inform the company by August 31 whether to purchase SITE’s 20% interest for about $32.4 million or sell its 80% interest to SITE for about $129.6 million. Closing should occur no later than October 15, the company said, adding that no assurances can be given the partner will comply.
The company declared a $1.00 a share special dividend paid July 31. Environmental and tenant litigation legal expense was $1.0 million in the quarter.
In July it sold Meadowmont Market in Chapel Hill, North Carolina, and a land parcel in Freehold, New Jersey, for aggregate gross prices of about $11.5 million, with net proceeds of about $11.1 million. It has agreements to sell Shoppes at Paradise Point in Fort Walton Beach, Florida, and The Maxwell in Chicago for $8.4 million and $15.3 million in cash, subject to closing adjustments. Due diligence has expired on both deals and closings are expected by the end of the third quarter, subject to customary conditions.
The company remains focused on maximizing the value of its remaining assets through additional sales and resolution of the DTP investment, Lukes said.
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