Site Centers Corp. · NYSE:SITC
Site Centers — Q3 2020 Earnings Presentation
22 slides from Site Centers's earnings presentation, Oct 27, 2020
Slide 1: 3Q20 Earnings
3Q20 Earnings SITE CENTERS CONFERENCE CALL O C T O B E R 2 7, 2 0 2 0
Slide 2: Safe Harbor Statement
S A F E H A R B O R S TAT E M E N T SITE Centers Corp. 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
Slide 3: Table of Contents
3 Q 2 0 K E Y TA K E AWAYS 4 Table of 3 Q 2 0 R E S U LT S S U M M A R Y 5 O P E R AT I N G S TAT U S 6 Contents 3Q20 RENT COLLECTION OVERVIEW 8 BL ACKSTONE TRANSACTION 10 O P E R AT I O N S OV E R V I E W 11 PORTFOLIO COMPOSITION 13 T E N A N T AC C E S S T O C A P I TA L 15 E A R N I N G S C O N S
Slide 4: Focused portfolio located in the top sub-markets of the U.S.
3 Q 2 0 K E Y TA K E AWAY S Focused portfolio located in the top sub-markets of the U.S. 69 WHOLLY-OWNED PROPERTIES WITH AVERAGE HOUSEHOLD INCOME OF $108K (87TH PERCENTILE) TRACK RECORD OF DECISIVE SUBSTANTIAL LIQUIDITY NO MATERIAL DEVELOPMENT MINIMAL NEAR-TERM DEBT ACTIONS COMMITMENTS MATURITIES •
Slide 5: 3Q20 Results Summary
3 Q 2 0 R E S U LT S S U M M A R Y $0.01 $ 0.23 3Q20 EARNINGS 3 Q 2 0 O P E R AT I N G PER SHARE FF O/S H 91.9% (11.2)% 5.5% LEASED YTD SSNOI TTM BLENDED 89.7% COMMENCED ( P R O - R ATA ) LEASING SPREAD 17.7% TTM NEW EXCLUDING LEASE SPREAD REDEVELOPMENT SITE CENTERS 3Q20 CONFERENCE CALL 5
Slide 6: SITE Centers Portfolio Operating Status
S I T E C E N T E R S P O R T F O L I O O P E R AT I N G S TAT U S 1 0 0 % O F P R O P E R T I E S R E M A I N O P E N A N D O P E R AT I N G 100% 98% 98% OF TENANTS OPEN FOR BUSINESS, UP 53% FROM APRIL 5 TROUGH 80% • 98% of anchors open + 53% • 99% of shop tenants open 56% OF TENANTS DEEMED ESSENTI
Slide 7: Major Tenant Categories Partially Operating
SITE CENTERS 1. Collections as of 1Q20 earnings results. Major Tenant • Theatres (70% Open) • Grocery (100% Open) Note: As of October 23, 2020. Weighted by base rent. • Entertainment (90% Open) • Fitness (Class) (86% Open) • Office Supplies (100% Open) • Fitness (Monthly) (88% Open) Partially Operat
Slide 8: April-October Rent Collection Overview
APRIL- OC TOBER RENT COLLEC TION OVERVIEW 70% O F 2Q20, 8 4% O F 3Q20, AND 90% O F O C TO B E R R E N T PA I D T O D AT E , W I T H C O L L E C T I O N S O N G O I N G 2Q20 JULY AUGUST SEPTEMBER OCTOBER 14% 8% 8% 8% 10% 3% 0% 12% 10% 16% 90% 90% 80% 82% 70% Billed Actual Billed Actual Billed Actual
Slide 9: 2Q20 and 3Q20 Uncollected Rent Overview
2Q20 AND 3Q20 UNCOLLEC TED RENT OVERVIEW 8% LO C AL SH O P AN CH O R 60% 2Q20 AND 3Q20 BASE RENT, PRS 15% NATIO NAL SH O P Percent of $200 Uncollected Base Rent 92% OF UNPAID 3Q20 $150 18% MID -TIER (5 -10 K SF) RENT IS FROM NATIONAL TENANTS $100 94% OF DEFERRAL 6% 2022 & B E YO ND 2020 6% ARRANGEME
Slide 10: Blackstone BRE DDR Joint Venture Agreement
BL ACKSTONE BRE DDR JOINT VENTURE AGREEMENT B L ACKSTO N E IV TR ANSAC TIO N CLOSE D O N O C TO B E R 15 WITH B L ACKS TO N E III E XPEC TE D TO CLOSE BY YE AR E N D AT THE CLOSING OF THE BRE DDR III TRANSACTION: • SITC will receive BRE DDR III’s interests in White Oak Village B R E D D R I V ACQ U
Slide 11: 3Q20 Operations Overview
3 Q 2 0 O P E R AT I O N S O V E R V I E W 3Q20 BLENDED TTM LEASING SPREADS +5.5%; TTM NEW LEASE SPREADS +17.7% • Executed 3 anchor leases in 3Q20 and 2 more anchors subsequent to quarter end including a grocer at a JV asset LEASED RATE DECLINED 50 BPS FROM 2Q20 TO 91.9% • Decline in leased rate due
Slide 12: Significant Exposure to Best-in-Class Essential Anchors
SI G N I FI C A N T E X P OSU R E TO B E S T- I N - C L ASS E SS E N TIA L A N C H O RS NOI BY ANCHOR TYPE1 A LT E R N A T I V E A N C H O R 5 % 68% OF PORTFOLIO IS AN CH O R E D BY G RO CE R O R A WA R E H O U S E C L U B W I T H INCLUDES ESSENTIAL A G ROCERY COMPONENT DISCOUNT 11% ANCHOR 84% 84% O
Slide 13: SITE Centers Portfolio Composition
SITC PORTFOLIO COMPOSITION 7% 4% GROUND LEASES LOC. RESTAURANTS 3% 8% FITNESS 4% MOVIE THEATRES LOC. SMALL SHOPS (<5K SF) 60% ANCHORS (>10K SF) 15% NAT. SMALL SHOPS ABR ABR (<5K SF) At Share At Share 9% 90% MID-TIER (5K - 10K SF) ALL OTHER INDUSTRIES Note: As of September 30, 2020. Numbers may not a
Slide 14: Restaurant Exposure is Primarily National & Franchises
R E S TA U R A N T E X P O S U R E D E TA I L S Restaurant exposure is primarily national & franchises R ES TA U R A N T EX P O S U R E TO P 1 0 R E STA U R A N T E X P O SU R E TENANT TYPE % OF RESTAURANT ABR PANERA BREAD National 4% DARDEN National 3% NATIONAL RESTAURANTS 8% STARBUCKS COFFEE Natio
Slide 15: National Tenant Access to Capital
N AT I O N A L T E N A N T A C C E S S T O C A P I TA L 11.7b 50.3b R AISED BY 7 OF R AISED BY 23 OF $ TOP 10 TENANTS (20.7 % ABR) $ TOP 50 TENANTS (3 4.5% ABR) 0.2% abr 0.7% abr 0.4% abr $0 . 5 B CO M M O N EQ U I T Y 0.5% abr $0.5B UNSECURED $5.5B UNSECURED 0.5% abr $2.5B UNSECURED 1.7% abr $0.7B
Slide 16: Significant Liquidity With Minimal Near-Term Maturities
S I G N I F I C A N T L I Q U I D I T Y W I T H M I N I M A L N E A R -T E R M M AT U R I T I E S $900 AS OF SEPTEMBER 30, 2020, SITE CENTERS $800 HAS $852M OF LIQUIDITY INCLUDING: $700 • $57M of consolidated cash on the balance sheet $600 • $795M available on the Company’s lines of credit $500 AS O
Slide 17: Earnings Considerations and COVID-19 Financial Statement Impact
E A R N I N G S C O N S I D E R AT I O N S A N D C O V I D -1 9 F I N A N C I A L S TAT E M E N T I M PA C T RVI FEE INCOME 3Q20 RVI FEE INCOME NET INCOME FFO OFFO • $5.6M total RVI fees in 3Q20, including $0.9M RVI Fees $4,717 $4,717 $4,717 of disposition fees (excluded from OFFO) RVI Disposition F
Slide 18: Appendix
Appendix 18
Slide 19: Non-GAAP Financial Measures - Definitions
NON - GA AP FINANCIAL MEASURES - DEFINITIONS Funds from Operations (“FFO”) is a supplemental non-GAAP financial measure used as a standard in the real estate industry and is a widely accepted measure of real estate investment trust (“REIT”) performance. Management believes that both FFO and Operatin
Slide 20: Reconciliations - Net Income Attributable to Common Shareholders to FFO and Operating FFO
R E C O N C I L I AT I O N S - N E T I N C O M E AT T R I B U TA B L E TO C O M M O N S H A R E H O L D E R S TO F F O A N D O P E R AT I N G F F O 3Q20 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $0.01 Depreciation and amortization of real estate 0.21 JVs' FFO 0.02 Adjustment of preferred equity
Slide 21: Reconciliation - Net Income Attributable to Site Centers to SSNOI
R E C O N C I L I AT I O N - N E T I N C O M E AT T R I B U TA B L E TO S I T E C E N T E R S TO SSN O I AT SITE CENTERS SHARE (NON-GAAP) GAAP RECONCILIATION: 9M20 9M19 NET INCOME ATTRIBUTABLE TO SITE CENTERS $37,007 $76,697 Fee income (34,149) (45,360) Interest income (10,480) (13,658) Interest exp
Slide 22: Reconciliation - Net Income Attributable to Site Centers to SSNOI Continued
R E C O N C I L I AT I O N - N E T I N C O M E AT T R I B U TA B L E TO S I T E C E N T E R S T O S S N O I CONTINUED AT SITE CENTERS SHARE (NON-GAAP) 9M20 9M19 NET INCOME FROM UNCONSOLIDATED JOINT VENTURES $366 $4,676 Interest expense 9,251 12,742 Depreciation and amortization 13,665 18,195 Impairm