DB:DDR2

Stock Analysis Report

Executive Summary

SITE Centers is an owner and manager of open-air shopping centers that provide a highly-compelling shopping experience and merchandise mix for retail partners and consumers.

Rewards

Trading at 26.9% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -15.8% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has SITE Centers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DDR2 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

DDR2

3.9%

DE REITs

0.1%

DE Market


1 Year Return

2.2%

DDR2

44.1%

DE REITs

14.1%

DE Market

Return vs Industry: DDR2 underperformed the German REITs industry which returned 44.1% over the past year.

Return vs Market: DDR2 underperformed the German Market which returned 14.1% over the past year.


Shareholder returns

DDR2IndustryMarket
7 Day3.4%3.9%0.1%
30 Day0%8.8%0.2%
90 Day-8.4%15.7%3.3%
1 Year8.4%2.2%48.7%44.1%17.6%14.1%
3 Yearn/a41.4%21.3%14.8%4.8%
5 Yearn/a45.2%13.9%22.2%5.4%

Price Volatility Vs. Market

How volatile is SITE Centers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SITE Centers undervalued compared to its fair value and its price relative to the market?

28.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DDR2 (€12) is trading below our estimate of fair value (€16.42)

Significantly Below Fair Value: DDR2 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DDR2 is poor value based on its PE Ratio (39x) compared to the REITs industry average (9.8x).

PE vs Market: DDR2 is poor value based on its PE Ratio (39x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: DDR2's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DDR2 is good value based on its PB Ratio (1.5x) compared to the DE REITs industry average (1.7x).


Next Steps

Future Growth

How is SITE Centers forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DDR2's earnings are forecast to decline over the next 3 years (-15.8% per year).

Earnings vs Market: DDR2's earnings are forecast to decline over the next 3 years (-15.8% per year).

High Growth Earnings: DDR2's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DDR2's revenue is expected to decline over the next 3 years (-3.6% per year).

High Growth Revenue: DDR2's revenue is forecast to decline over the next 3 years (-3.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DDR2's Return on Equity is forecast to be low in 3 years time (1.9%).


Next Steps

Past Performance

How has SITE Centers performed over the past 5 years?

18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DDR2 has high quality earnings.

Growing Profit Margin: DDR2's current net profit margins (11.8%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: DDR2 has become profitable over the past 5 years, growing earnings by 18.5% per year.

Accelerating Growth: DDR2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DDR2 had negative earnings growth (-23.2%) over the past year, making it difficult to compare to the REITs industry average (91.2%).


Return on Equity

High ROE: DDR2's Return on Equity (5.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SITE Centers's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: DDR2 has a high level of physical assets or inventory.

Debt Coverage by Assets: DDR2's debt is not covered by short term assets (assets are 0x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: DDR2 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: DDR2 is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: DDR2's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if DDR2 has a sufficient allowance for bad loans.

Low Risk Liabilities: DDR2 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if DDR2 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: DDR2 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if DDR2 has an appropriate level of bad loans.


Next Steps

Dividend

What is SITE Centers's current dividend yield, its reliability and sustainability?

6.27%

Current Dividend Yield


Upcoming Dividend Payment

Purchase SITE Centers before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company6.3%marketbottom25%1.3%markettop25%3.6%industryaverage2.7%forecastin3Years6.4%

Current dividend yield vs market & industry

Notable Dividend: DDR2's dividend (6.13%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: DDR2's dividend (6.13%) is in the top 25% of dividend payers in the German market (3.57%)


Stability and Growth of Payments

Stable Dividend: DDR2's dividend payments have been volatile in the past 10 years.

Growing Dividend: DDR2's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.3%), DDR2's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DDR2's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

David Lukes (49yo)

2.9yrs

Tenure

US$5,974,858

Compensation

Mr. David R. Lukes has been the Chief Executive Officer and President of SITE Centers Corp. since March 2, 2017. Mr. Lukes has been Chief Executive Officer and President of Retail Value Inc. since February ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD5.97M) is above average for companies of similar size in the German market ($USD2.01M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Lukes
President2.9yrsUS$5.97m0.084% $2.0m
Michael Makinen
Executive VP & COO2.9yrsUS$1.94m0.0082% $191.4k
Christa Vesy
Executive VP & Chief Accounting Officer13.3yrsUS$1.08m0.046% $1.1m
Conor Fennerty
Senior VP of Capital Markets0.3yrsno data0.026% $601.8k
John Cattonar
Senior Vice President of Investments2.8yrsno datano data
Brandon Day-Anderson
Head of Investor Relations0yrsno datano data
Eric Cotton
Deputy General Counsel & Corporate Compliance Officer3.9yrsno datano data
Aaron Kitlowski
Executive VP2.3yrsno datano data
Rob McGovern
Senior Vice President of Leasing3.4yrsno datano data
Kim Scharf
Senior Vice President of Information Technology2.8yrsno datano data

2.9yrs

Average Tenure

48.5yo

Average Age

Experienced Management: DDR2's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Lukes
President2.9yrsUS$5.97m0.084% $2.0m
Terrance Ahern
Independent Chairman of the Board8.9yrsUS$278.01k0.12% $2.8m
Victor MacFarlane
Independent Director17.8yrsUS$175.10k0.035% $825.5k
Alexander Otto
Independent Director4.8yrsUS$125.06k16.92% $395.4m
Thomas Finne
Independent Director10.4yrsUS$135.42k0.024% $556.5k
Jane DeFlorio
Independent Director3.1yrsUS$180.42k0.0089% $208.5k
Dawn Sweeney
Independent Director1.3yrsUS$40.71k0.0016% $37.2k
Linda Abraham
Independent Director1.3yrsUS$40.68k0.0055% $127.6k

3.9yrs

Average Tenure

57.5yo

Average Age

Experienced Board: DDR2's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SITE Centers Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SITE Centers Corp.
  • Ticker: DDR2
  • Exchange: DB
  • Founded:
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$2.523b
  • Market Cap: US$2.332b
  • Listing Market Cap: US$2.337b
  • Shares outstanding: 193.34m
  • Website: https://www.sitecenters.com

Number of Employees


Location

  • SITE Centers Corp.
  • 3300 Enterprise Parkway
  • Beachwood
  • Ohio
  • 44122
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SITCNYSE (New York Stock Exchange)YesCommon SharesUSUSDFeb 1993
DDR2DB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1993
SITC.PRKNYSE (New York Stock Exchange)DEP SH CUM PFD KUSUSDMar 2013
SITC.PRANYSE (New York Stock Exchange)DEP SH CUM PFD AUSUSDMay 2017

Biography

SITE Centers is an owner and manager of open-air shopping centers that provide a highly-compelling shopping experience and merchandise mix for retail partners and consumers. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:04
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.