55 Net-Nets and The One That is Liquidating Its Real Estate (SITC)
I do a monthly scan of Net-Nets just to see what's in there. Most results are in the Biotech realm/company just plodding along burning capital. There is one result that popped in the list recently that caught my eye.
SITE Centers (SITC) began selling large open-air shopping centers heavily in 2023–24 to raise cash. From July 2023 through the end of 2024, it generated about $3.1 billion from property sales. That money was used to buy/build a portfolio of smaller “convenience” retail properties, fund the new company Curbline Properties (CURB), and repay debt and preferred stock.
Then, in October 2024, SITE spun those convenience properties off into CURB. SITE shareholders received shares of CURB, while SITE was left holding the remaining traditional shopping centers.
Since then, the strategy has increasingly become monetize the remaining SITE assets and return the proceeds to shareholders. In 2025 alone, SITE sold 14 shopping centers for $752.5 million, paid off its consolidated mortgage debt, and paid $6.75/share of dividends during the year. Management said all of its remaining wholly owned retail properties were being marketed for sale.
Ok, but is it a Net Net?
Cash 238,926
Total Liabilities 83,035
Cash minus 238M - 83M leaves us 156M against the 154M in current market cap. I mean BARELY. But it counts. So, a dollar is a dollar. But, what about the rest of the assets?
Assets:
Land $20,346
Buildings 113,610
Fixtures and tenant improvements 76,561
Sum: 210,517
Depreciation (131,601)
Construction in progress and land 548
Real estate, net 79,464
Now THERE IS A CATCH.
SITC Has an ownership stake in DTP, DTP is a separate joint venture that owns 10 shopping centers. SITC owns only 20% of it today.
The other 80% is owned by a Chinese institutional-investor partner. The 10 centers total about 3.4 million square feet, and the joint venture has about $380.6 million of mortgage debt at 6.38%.
The problem for SITC is that it can’t freely sell its 20% stake or sell the underlying properties without the partner’s cooperation. That’s a big issue because SITC is trying to wind itself down and convert everything to cash. Management explicitly says resolving DTP is one of the last major pieces of that process.
So SITC triggered a contractual buy-sell provision on June 29, 2026. It basically works like this:
Option A: Partner buys SITC’s 20% for \\\~$32.4M
Option B: Partner sells its 80% to SITC for \\\~$129.6M
I do not think that SITC is trying to acquire another portfolio of stores while it is winding down finding buyers for its other properties. However, it is worth to see what the outcome of that would look like.
488M in Real Estate vs 398M in Liabilities. 21M in cash. The current real estate portfolio could be discounted at 22% and be enough to cover the Liabilities. But 158.31M (cash net of liabilities) − 129.60M (buyout cost) = 28.71M and 111M if they sell the real estate at listed book price for a total of 139M after paying off liabilities. Assuming they do this 22% haircut, the math gets far narrower. This however does not include the 79M in real estate that SITC is still wanting to sell. But that result does end in a share price higher than the cash after liquidating all the real estate. Hopefully DTP is more interested in staying in real estate than SITC's management stating that: \*\*“Following the anticipated sale of our remaining properties and monetization of the value of our remaining joint venture investment, we expect to file a certificate of dissolution…”\*\* Hopefully DTP just pays for SITC's stake and shareholders can get an extra 32M to the cash pile.
Additional stuff reiterating the above found in the article.
Just happened to show up by sheer chance? Maybe I'm missing something? ANYWAY \*\*Thank you\*\* for listening to my ramblings. Article here https://companycharts.substack.com/p/the-monthly-net-net-scan-55-tickers?r=6kpr46&utm\_medium=ios
