Site Centers Q2 Revenue Falls 64%, Operating FFO at $0.16 per Share

Site Centers Q2 revenue drops 63.8% to $31.1 million, beating the consensus estimate of $26.2 million. Operating FFO per share was $0.16, exceeding the analyst estimate of -$0.16. The company has been focusing on reshaping its portfolio through property dispositions, spin-offs, and prioritizing shareholder returns.

Site Centers (NYSE: SITC), a major U.S. operator of open-air shopping centers, reported its earnings for the second quarter on August 5, 2025. The company's revenue dropped 63.8% to $31.1 million, beating the consensus estimate of $26.2 million. Operating FFO per share was $0.16, exceeding the analyst estimate of -$0.16 [1].

The decline in revenue was primarily due to the Curbline spin-off and continued property dispositions. The company sold five properties in the past two months for a combined $319.0 million, including Winter Garden Village ($165.0 million) and Promenade at Brentwood ($71.6 million). At the end of Q2 2025, Site Centers owned 31 shopping centers, down from 33 at the close of the prior year. Its gross leasable area shrank to 5.36 million square feet from nearly 5.92 million square feet at the end of 2024 [1].

Despite the revenue contraction, the company's cash position improved to $153.8 million as of Q2 2025, up from $54.6 million as of Q4 2024. This was due to asset sales that helped reduce net debt from $336.2 million to $224.8 million. Large special cash distributions totaling $4.75 per share were announced and paid following Q2 2025, highlighting returns to shareholders amid shrinking recurring earnings [1].

Operating FFO decreased from $55.9 million ($1.06 per diluted share) in Q2 2024 to $8.3 million ($0.16 per diluted share) in Q2 2025, reflecting a much smaller business following the spin-off and property sales. The company's leasing activity revealed operational headwinds, with a negative same-space leasing spread of 3.4% overall, including negative spreads of 23.4% for new leases and 1.7% for renewals [1].

The company's tenant roster remains anchored by large, stable retailers, with the top 30 covering over half of the portfolio. Occupancy rates softened, with the overall portfolio lease rate falling to 88.1% in Q2 2025, down from 91.8% in Q2 2024. Wholly owned assets had a leased rate of 87.6% as of Q2 2025, while joint venture holdings were 91.7% leased [1].

Future results will be shaped by the closing of contracted property sales and the ability to stabilize leasing spreads and occupancy rates. Investors should closely watch trends in renewal rates and new lease economics, as negative spreads and lower occupancy rates could pressure future revenue and cash flows [1].

References:
[1] https://www.nasdaq.com/articles/site-centers-sitc-q2-revenue-drops-64
[2] https://finimize.com/content/site-centers-sells-properties-as-income-slips-in-q2
[3] https://www.panabee.com/news/site-centers-earnings-q2-2025-report