Retail landlord Site Centers recently sold 14 shopping centers for more than $800 million in advance of spinning off its smaller strip malls into a separate company to focus on the real estate type that it's bullish on.

The Beachwood, Ohio-based firm on Tuesday provided an update on its bevy of property sales, as well as a handful of its acquisitions, when it reported fourth-quarter earnings. More divestitures are in the pipeline, according to company officials.

Those are part of the steps the real estate investment trust is taking as it prepares to spin off what it's calling Curbline Properties, which at this point is slated to include 65 convenience centers, so-called strip centers or strip malls, namely a row of shops located close to the road without a big-box store or grocery as an anchor.

“We are well underway on the timeline to form and scale the first public real estate company focused exclusively on convenience properties and remain excited by the prospects and opportunity set," David Lukes, Site president and CEO, said in a statement.

Site owns and manages many suburban, open-air shopping centers, in addition to strip centers. It unveiled plans for the spin-off last October, saying that the convenience sector "offers attractive, inflation-protected returns driven by high renewal and retention rates and limited capital expenditures."

Strip malls have found favor with investors and shoppers in the wake of the COVID-19 pandemic, because people with hybrid work schedules sometimes frequent them during the day.

"We began investing in convenience assets over five years ago," Lukes said during the earnings call. "And after several years of transaction activity, reviewing data analytics and financial and tenant analysis, we are more convinced than ever that the convenience sector is both differentiated and a unique growth opportunity."

Site reported that it sold 14 wholly owned shopping centers during the fourth quarter of 2023 and first quarter of 2024 to date for an aggregate price of $818.6 million, including 12 shopping centers during the fourth quarter for $736.2 million. For the full year in 2023, it sold a total of 22 shopping centers for $966.6 million.

The buyers have included Urban Edge Properties, a New York-based REIT. It acquired two Boston-area shopping centers from Site for $309 million last October.

In the fourth quarter of 2023, Site acquired four convenience shopping centers for an aggregate price of $62.4 million, including Point at University in Charlotte, North Carolina, for $8.9 million; Estero Crossing in Cape Coral, Florida, for $17.1 million; Presidential Plaza North in Atlanta for $7.4 million; and Shops at Lake Pleasant in Phoenix for $29 million. During the whole of 2023, Site purchased 12 convenience shopping centers for a total of $165.1 million.

"Management provided bullish commentary regarding pace of disposition program and widening pool of interest," Truist Securities said in a note on Tuesday. "[Site] currently has an additional $750 million of assets under [letter of intent] or negotiation ... which is better than we have initially modeled."

The note said that Site "also mentioned that another package of over $800 million of assets would be marketed in the next couple months," adding, "overall, [Site’s] disposition program and pricing has been better than we have expected."

At some point, Site itself may cease to exit, if the company sheds all its open air shopping centers, according to one Wall Street analyst.

"Management is full steam ahead on the spin-off of Curbline Properties," the investment bank Piper Sandler said in a note. "While there is no planned ... liquidation vehicle planned for [Site], we believe the legacy portfolio ultimately will be wound down. On Tuesday's earnings call, management was noncommittal, simply laying out this year's pace of dispositions will be the determinant."

The Curbline spin-off is expected to be completed by Oct. 1, officials said on the call.

"Arguably, what we own today represents the largest, highest quality convenience portfolio in the United States," Lukes said. "These properties would primarily cater to daily customer errands are an integral part of the suburban lifestyle, which has only become more entrenched with increased suburban migration and the rise of hybrid work, and combined with a balance sheet that is truly unmatched with no outstanding debt."

In its earnings report, Site said that in December it had closed on a five-year, $380.6 million mortgage secured by a 10-property, joint-venture portfolio.