Opinions
The Panic-Proof Portfolio (Stockchase Research)
SITE Centers Corp.
SITC-N
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May 20, 2025
$12.330
Stock price when the opinion was issued
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Stockchase Research Editor: Michael O'Reilly
SITC is a retail shopping centre REIT. It recently announced a divestiture of 11 centres and purchase of 4 others as it carefully rebalances its portfolio to maximize capital efficiency along with rebalancing its debt -- allowing it access to an investment grade credit rating. We like that cash reserves are growing, while debt is reduced. It trades at 2x earnings, under book value and supports a 21% ROE. We recommend setting a stop-loss at $12, looking to achieve $24 -- upside potential of 41%. Yield 3.0%
(Analysts’ price target is $24.83)
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SITC shares have been under pressure as shopping centres have fallen out of favour with many investors. Now the valuation offers a robust 42% ROE, while trading 1.2x book and 1x earnings. Cash reserves are prudently being used to aggressively retire debt and buy back shares. The company is not paying a distribution presently, providing the company more flexibility and giving investors a tax-efficient investment vehicle. We recommend setting a stop-loss at $10.50, looking to achieve $15.50 -- upside potential of 24%. Yield 0%
(Analysts’ price target is $15.38)