SITE Centers Announces Tax Estimate for Curbline Properties Distribution

Rhea-AI Summary

SITE Centers has provided tax information regarding the Curbline Properties spin-off distribution. On October 1, 2024, SITE Centers shareholders received two Curbline Properties shares per share held, with a fair market value of $22.29 per CURB share for federal tax purposes. The distribution is estimated to be approximately 21% taxable capital gain and 79% return of capital. The final tax treatment will be reported on Form 1099-DIV in January 2025, with potential changes based on SITE Centers' full-year 2024 operating results.

Positive

• Return of capital comprises 79% of the distribution, which is generally tax-advantaged for shareholders

Negative

• 21% of the distribution will be taxed as capital gains
• Final tax treatment remains subject to change based on 2024 operating results

Insights

Tax Expert

The taxable spin-off of Curbline Properties presents significant tax implications for SITE Centers shareholders. With a fair market value of $22.29 per CURB share and a distribution ratio of 2:1, the total value per SITE Centers share is substantial. The preliminary tax breakdown shows 21% as taxable capital gain and 79% as return of capital, which is notably tax-efficient for shareholders.

The return of capital portion reduces the cost basis of SITE Centers shares, deferring tax liability until shares are sold. However, investors should prepare for potential tax obligations on the capital gains portion in their 2024 returns. The preliminary nature of these estimates suggests shareholders should maintain flexibility in their tax planning, as the final characterization could shift based on SITE Centers' full-year 2024 performance.

REIT Analyst

This spin-off represents a strategic move in SITE Centers' portfolio optimization. The high return of capital component (79%) indicates significant accumulated earnings and profits, reflecting strong historical performance. The structure of the distribution suggests careful tax planning to maximize shareholder value while maintaining REIT qualification requirements.

The spin-off creates two focused entities: SITE Centers maintaining its core retail portfolio and Curbline Properties likely targeting specific property segments. This separation could enhance operational efficiency and allow each entity to pursue targeted growth strategies. The substantial fair market value of $22.29 per CURB share indicates meaningful asset value recognition.

BEACHWOOD, Ohio--(BUSINESS WIRE)--

SITE Centers Corp. (NYSE: SITC) (the “Company” or “SITE Centers”) today provided additional information related to the spin-off and distribution of Curbline Properties Corp. (NYSE: CURB) (“Curbline Properties” or “CURB”). On October 1, 2024, each shareholder of SITE Centers received two common shares of Curbline Properties in a taxable spin. The fair market value of the CURB shares received by SITE Centers shareholders for federal income tax purposes has been determined by SITE Centers to be $22.29 per CURB share.

Based upon preliminary taxable net income analysis to date, the Company estimates that approximately 21% of the CURB distribution constitutes a taxable capital gain and approximately 79% constitutes a return of capital. Full year 2024 operating results for SITE Centers could result in a change to the character of the CURB distribution. The final determination of the tax treatment of total 2024 distributions will be reported to SITE Centers shareholders on Form 1099-DIV, which will be issued in January 2025.

About SITE Centers

SITE Centers is an owner and manager of open-air shopping centers primarily located in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the NYSE under the ticker symbol SITC. Additional information about the Company is available at www.sitecenters.com. To be included in the Company’s e-mail distributions for press releases and other investor news, please click here.

Safe Harbor

SITE Centers considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, the finalization of the tax basis for the assets included in the CURB distribution and the calculation of the Company’s earnings and profits and the character of the Company’s dividends for 2024. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company's most recent reports on Forms 10-K and 10-Q. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241125517292/en/

Gerald Morgan, EVP and

Chief Financial Officer

216-755-5500

Source: SITE Centers Corp.

FAQ

What is the fair market value of Curbline Properties shares distributed by SITE Centers (SITC)?

The fair market value of Curbline Properties (CURB) shares has been determined to be $22.29 per share for federal income tax purposes.

How many Curbline Properties shares did SITE Centers (SITC) shareholders receive in the October 2024 spin-off?

SITE Centers shareholders received two Curbline Properties shares for each SITE Centers share held in the October 1, 2024 distribution.

What is the tax treatment of the SITE Centers (SITC) Curbline Properties distribution?

The distribution is estimated to be approximately 21% taxable capital gain and 79% return of capital, with final tax treatment to be reported on Form 1099-DIV in January 2025.