SITE Centers Corp. reported third‑quarter 2025 revenue of $24.528 million, a 59% decline from the $59.666 million earned in the same period last year, and a net loss of $6.2 million, or $0.13 per diluted share, compared with a net income of $320.2 million, or $6.07 per diluted share, in Q3 2024. The loss reflects a sharp contraction in operating income and a $106.6 million impairment related to changes in hold‑period assumptions for five properties.
The revenue drop is largely attributable to the company’s accelerated asset‑disposition strategy. Seven properties were sold year‑to‑date for $380.9 million, and more than $292 million of properties are under contract for sale. These sales reduce the operating base, explaining the steep revenue decline, while the company’s focus on leasing and asset management aims to preserve cash flow from the remaining portfolio.
Operating Funds from Operations (OFFO) fell to $5.6 million, or $0.11 per diluted share, from $42.8 million, or $0.81 per diluted share, in the same quarter of 2024. The decline in OFFO, coupled with the impairment charge, drove the net loss. The company’s cost structure remains largely fixed, so the loss is driven by the reduced revenue base rather than rising expenses.
The special dividend of $5.75 per share, announced in the earnings release, is part of a broader capital‑return strategy that includes a $1.50 dividend in July, $3.25 in August, and a $1.00 dividend announced in October. The proceeds from the asset sales are being used to reduce debt and fund these shareholder distributions, reinforcing the company’s commitment to returning value to investors.
The spin‑off of Curbline Properties on October 1, 2024, removed the convenience‑retail segment from SITE Centers’ balance sheet. The Curbline assets are treated as discontinued operations for the quarter, shrinking the core portfolio but freeing capital for debt reduction and shareholder returns.
CEO David R. Lukes said, “Year to date, the Company has sold seven properties for an aggregate price of $380.9 million and declared aggregate dividends of $5.75 per share. In addition, we have in excess of $292 million of properties under contract for sale for which the buyers’ general due diligence condition has expired, and are also in earlier stages of the marketing and negotiation process with additional properties. SITE Centers remains focused on maximizing the value of its assets through continued leasing, asset management and potential additional asset sales.” The statement underscores the company’s intent to continue the disposition program while maintaining operational focus.
The earnings report signals a short‑term revenue contraction but a long‑term shift toward a leaner, cash‑generating portfolio. While the asset sales generate capital and reduce debt, the shrinking operating base raises concerns about future earnings sustainability. Management’s emphasis on continued leasing and asset management suggests confidence that the remaining properties can generate sufficient cash flow to support ongoing dividend payments and debt service, but the company’s Altman Z‑Score of –3.14 indicates potential financial distress if the disposition pace slows or market conditions deteriorate.
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