SITE Centers Corp. reported a significant decline in financial performance for the first quarter of 2026, with total revenues falling to $13.0 million, down from $42.6 million in the same period last year. The decrease was primarily driven by a substantial drop in rental income, which plummeted to $9.2 million from $31.5 million, and a reduction in fee and other income. The company also recorded impairment charges of $17.5 million, contributing to a net income of $938,000, a decrease of 69% compared to $3.1 million in the prior year.
The company's financial position showed notable changes compared to the previous fiscal period. Total assets decreased to $401.9 million from $418.7 million, largely due to a reduction in real estate assets, which fell to $148.0 million from $225.7 million. The company’s liabilities also decreased, with total liabilities at $66.0 million, down from $84.0 million. Cash and cash equivalents increased significantly to $193.5 million, up from $119.0 million, reflecting a strong liquidity position despite the overall decline in revenues.
Strategically, SITE Centers has been active in asset dispositions, selling two wholly-owned shopping centers for gross proceeds of $74.5 million, which resulted in a gain of $4.0 million. Additionally, the company sold its partnership interests in a joint venture for approximately $20.8 million, resulting in a gain of $20.0 million. These transactions are part of the company's ongoing strategy to monetize its remaining assets and streamline operations as it prepares for a potential wind-up of its business.
Operationally, the company leased approximately 18,000 square feet of gross leasable area during the quarter, with a cash lease spread of 16.7% for new leases and 1.9% for renewals. However, the overall occupancy rate of the shopping center portfolio declined to 84.9% from 89.4% a year earlier. The average annualized base rent per square foot also decreased to $20.00 from $22.61, indicating challenges in maintaining rental rates amid ongoing market conditions.
Looking ahead, SITE Centers anticipates continued challenges in rental income and net income due to ongoing asset dispositions and declining property revenues. The company expects to incur significant expenses related to the wind-up of its operations, including costs associated with the Shared Services Agreement with Curbline Properties. Management remains focused on maintaining liquidity and managing cash reserves as it navigates these transitions, with no dividends declared for the periods ended March 31, 2026, or 2025.
About SITE Centers Corp.
SITE Centers Corp. is a self-managed REIT specializing in owning, leasing, and managing open-air shopping centers primarily in suburban, high-income communities across the U.S. Its portfolio includes retail properties and office buildings, generating income mainly from tenant rents. The company focuses on asset management, strategic sales, and redevelopment to maximize value, operating with significant leverage while navigating economic, environmental, and market risks.
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