BEACHWOOD, Ohio - SITE Centers Corp. (NYSE: NYSE:SITC), a real estate investment trust specializing in open-air shopping centers, has announced a one-for-four reverse stock split approved by its Board of Directors. The decision follows authorization from the company's shareholders at the annual meeting on May 8, 2024.
The reverse stock split will consolidate every four issued common shares of SITE Centers into one common share. Shareholders will not receive fractional shares but will instead be compensated with cash for any fractions. The adjusted common shares are expected to commence trading on the New York Stock Exchange on a split-adjusted basis at market open on August 19, 2024.
Shareholders holding shares in certificated form will receive a letter of transmittal with instructions on how to exchange their stock certificates. Those with shares in the book-entry form will have their accounts updated automatically, requiring no action on their part. Shareholders who hold their shares through a bank, broker, or other nominee are advised to contact their nominee for details regarding the reverse stock split process.
This announcement is based on a press release statement from SITE Centers Corp.
In other recent news, SITE Centers Corp. has been actively restructuring its property portfolio. The company recently sold several assets, including six shopping centers, to an affiliate of Pine Tree for a total of $495 million. The properties sold were located in Phoenix, Columbus, Miami, Cincinnati, and Portland. SITE Centers also reported $50.2 million in property sales, totaling $1.0 billion in dispositions since mid-2023.
The company has been equally active in acquisitions, purchasing two Convenience properties for $8.4 million and repurchasing $15.9 million of its senior unsecured notes at a discount. Contracts are in place for acquiring $78.0 million of Convenience properties, and the company has secured over $150 million of similar properties.
In terms of earnings, SITE Centers has announced a quarterly dividend of $0.13 per share for the second quarter of 2024, reflecting its commitment to providing returns to its investors.
The company also released its operating results for the first quarter of 2024, which included strategic progress on spinning off its convenience portfolio into a new entity, Curbline Properties, expected to be finalized by October 1, 2024. Curbline Properties is anticipated to generate $79 million in net operating income for the year.
InvestingPro Insights
As SITE Centers Corp. (NYSE: SITC) embarks on a strategic move with its one-for-four reverse stock split, investors are closely watching the company's financial health and market performance. According to InvestingPro data, SITC currently boasts a market capitalization of $3.19 billion and trades at a price-to-earnings (P/E) ratio of 14.92, indicating a valuation that is potentially attractive relative to near-term earnings growth. However, the adjusted P/E ratio over the last twelve months as of Q1 2024 stands at a much higher 66.45, suggesting that investors may be expecting significant earnings improvements in the future.
The company's revenue has experienced a decline of 8.17% over the last twelve months as of Q1 2024, aligning with analyst anticipations of a sales downturn in the current year. Yet, despite these challenges, SITE Centers has maintained a strong dividend track record, increasing its dividend for three consecutive years and maintaining dividend payments for 32 years in total. This could reflect a commitment to shareholder returns even in less favorable revenue conditions. Additionally, the company's current dividend yield is 3.41%, with the last dividend ex-date recorded on June 18, 2024.
InvestingPro Tips highlight that while some analysts have revised their earnings downwards for the upcoming period, the company is still expected to be profitable this year. Moreover, SITE Centers is trading near its 52-week high, with the price at 99.41% of this peak. An interesting note for investors is the company's low price volatility, which may appeal to those seeking more stable investment opportunities. For those looking to delve deeper into SITE Centers' performance and prospects, InvestingPro offers a wealth of additional tips—12 more are available to be precise. This could be a valuable resource for investors considering the company's recent corporate actions and market dynamics.
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