Site Centers Posts Third-Quarter Operating FFO Loss

The Tip Desk · November 2, 2026 · 3 min read

Operating FFO was a $3.1 million loss, or $0.06 a share, as the REIT sold three assets and agreed to a $3.00 special cash distribution.

SITE Centers Corp. (SITC), a self-administered REIT in the final stages of liquidating its shopping-center portfolio, reported a third-quarter net loss of $5.4 million, or $0.10 a share, and an operating funds-from-operations loss of $3.1 million, or $0.06 a share.

The year-over-year net-loss improvement from $6.2 million, or $0.13 a share, a year earlier was attributed by the company primarily to lower interest expense, impairment charges and depreciation and amortization, partially offset by a smaller gain on disposition of real estate and lower net operating income after property sales. Operating FFO had been income of $5.6 million, or $0.11 a share, in the year-ago quarter; the company said the swing was primarily lower NOI from dispositions, partly offset by a decrease in interest expense.

Rental income fell to $4.47 million from $24.20 million a year earlier. Total revenues were $4.60 million. NOI dropped to $2.24 million from $15.13 million. Interest expense was zero versus $3.94 million a year earlier. Depreciation and amortization fell to $2.43 million from $10.77 million. Impairment charges were $2.00 million versus $106.57 million a year earlier. Gain on disposition of real estate, net, was $1.85 million versus $108.40 million.

In the quarter the company sold Meadowmont Market, Shoppes at Paradise Pointe and a land parcel for an aggregate gross sales price of $19.9 million. Net proceeds after prorations, allocations and other credits were approximately $19.1 million. Year to date, President and Chief Executive Officer David R. Lukes said the company had sold seven properties, a land parcel and its interests in two joint ventures for an aggregate gross sales price of approximately $223.8 million.

Cash rose to $200.2 million at September 30, 2026 from $119.0 million at year-end 2025. Real estate, net, declined to $42.89 million from $225.74 million at year-end 2025.

After quarter-end, the company sold The Maxwell in Chicago on October 1 for a gross price of approximately $15.3 million, with net proceeds of about $13.9 million; the asset had been classified as held for sale at September 30. On October 15 it sold its partnership interests in the Dividend Trust Portfolio joint venture for a gross sales price of approximately $32.4 million. It also agreed to sell The Blocks in Portland for a gross sales price of approximately $18.2 million, with net proceeds expected at about $14.6 million and closing expected by the end of the fourth quarter of 2026.

The company paid a $1.00 a share special dividend on July 31, 2026. On October 15 it announced a special cash distribution of $3.00 a common share payable on November 5, 2026. Based on preliminary analysis, it does not expect to have REIT taxable income in 2026 and estimates that 100% of its 2026 distributions will be return of capital; a final tax-allocation determination is scheduled for January 2027.

The company said it remains focused on maximizing the value of its remaining two real estate investments and other financial assets. Those remaining assets include The Blocks and the Beachwood, Ohio headquarter office buildings, which it is actively marketing for sale. In September it entered a lease with Curbline Properties Corp. for about 31,089 square feet of the headquarters, with an initial five-year term beginning October 1, 2027 at $8.00 a square foot of annual base rent.

The company provided notice to the New York Stock Exchange of its plan to voluntarily de-list its common shares prior to the commencement of trading on December 4, 2026. Following the de-listing, it expects the shares to trade in the over-the-counter market and be quoted on the OTCID Basic Market.