SITC - Embedded Expectations Analysis - 2021 05 03
SITE Centers Corp. (SITC:USA) currently trades above recent averages relative to UAFRS-based (Uniform) assets, with a 1.4x Uniform P/B. At these levels, the market is pricing in bullish expectations for the firm, but management may be concerned about the sustainability of leasing demand, unpaid rents, and tenant recruitmentSpecifically, management may have concerns about the sustainability of elevated leasing demand, particularly for larger spaces, the sustainability of their tenants' sales growth, and continued weakness in property transaction volumes. Additionally, they may lack confidence in their ability to collect unpaid rents, continue to raise rents for national tenants, and attract higher quality tenants. Furthermore, management may have concerns about further rent write-offs as well as the sustainability of their dividend. Finally, they may lack confidence in their ability to achieve their 2021 blended leasing targets, and they may be exaggerating the potential of their pipeline
SITE Centers is a self-administered and self-managed real estate investment trust (REIT), engaged in the business of acquiring, owning, developing, redeveloping, expanding, leasing, financing and managing shopping centers. The company's portfolio consisted of shopping centers (including shopping centers owned through joint ventures). These centers are principally in the Southeast and Midwest, with significant concentrations in Georgia, Florida, North Carolina and Ohio.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.