Following the announcement of an asset spin-off, SITE Centers Corp. (NYSE: SITC) is seeing a notable stock-price increase on the US stock charts today. As of the most recent market check, SITC shares were on a remarkable rise of 47.88%, trading at $17.45. This upward trajectory reflects investor confidence in the strategic maneuver undertaken by the company.
Completion of Curbline Properties Corp. Spin-Off
As previously announced, SITE Centers (SITC) has successfully completed the spin-off of Curbline Properties Corp., which is now a separate company and will begin trading on the New York Stock Exchange under the ticker code “CURB.” Curbline’s specialty is owning convenience stores in affluent suburban communities that are conveniently located near busy thoroughfares and high-traffic intersections.
Distribution of CURB Shares
In accordance with the spin-off plan, SITE Centers stockholders received two shares of Curbline common stock for every one common share of SITC owned as of the record date on September 23, 2024.
Recent Transaction Activity
Earlier this week, SITE Centers released an update on its transaction activities, including projections for Curbline’s balance sheet. From September 17 to September 27, 2024, the company successfully sold 11 wholly owned properties for a total gross price of $610.1 million.
Following these transactions, Curbline is anticipated to be capitalized with approximately $800 million in cash, alongside a $400 million undrawn unsecured line of credit and a $100 million unsecured delayed draw term loan, with no outstanding debt.
Financial Position
In the third quarter thus far, SITE Centers has sold a total of 13 wholly owned properties for a gross aggregate price of $714.3 million. The net proceeds from these sales have partially funded the repayment of $159 million of its $530 million mortgage facility originally secured by 23 properties.
Additionally, CITE Centers (SITC) has acquired six convenience shopping centers, totaling $111.2 million in the third quarter, further diversifying its portfolio with notable properties such as Loma Alta Station in San Diego, CA, and Nine Mile Corner in Denver, CO.
