Site Centers Corp. · NYSE:SITC
Site Centers — Q4 2022 Earnings Presentation
27 slides from Site Centers's earnings presentation, Feb 8, 2023
Slide 1: 4Q22 Earnings Conference Call
4Q22 EARNINGS CONFERENCE CALL SITE CENTERS | FEBRUARY 8, 2023
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
4 Q 2 2 K E Y TA K E AWAY S 4 4 Q 2 2 R E S U LT S S U M M A R Y 5 Table of O P E R AT I O N S O V E R V I E W 6 Contents G U I D A N C E & E A R N I N G S C O N S I D E R AT I O N S 11 CONVENIENCE 12 APPENDIX 20 SITE CENTERS 4Q22 CONFERENCE CALL 3
Slide 4: Focused portfolio located in the wealthiest sub-markets of the U.S.
4 Q 2 2 K E Y TA K E AWAY S Focused portfolio located in the wealthiest sub-markets of the U.S. 1 0 1 W HOL LY-OW NE D P R OP E R TI E S W I TH AVE R AG E H O U S EHO LD INCO ME O F $112 K (90 TH PE RCE NTILE ) 1 4Q22 OPPORTUNISTIC DISPOSITIONS TO FUND FUTURE INVESTMENTS • $167M of assets sold in 4Q
Slide 5: 4Q22 Results Summary
4 Q 2 2 R E S U LT S S U M M A R Y $0.12 $ 0.29 4Q22 EARNINGS O P E R AT I N G PER SHARE FFO PER SHARE 95.4% 1.8% 55.2% LEASED 4Q22 SSNOI G ROW TH 4Q22 NEW CASH 92 .5% COMMENCED ( P R O - R ATA ) LEASE SPREAD INCLUDING 11.7% 4Q22 BLENDED REDE VELOPMENT CASH LE ASE SPRE AD SITE CENTERS 4Q22 CONFERENC
Slide 6: Operations Overview – Leasing Trends
4 Q 2 2 O P E R AT I O N S O V E R V I E W – L E A S I N G T R E N D S SN O CO M M E N CE M E NT SCH E D U L E ( A B R) 20M 19m $ 4Q22 new cash leasing spreads 55.2%; blended cash leasing spreads 11.7% CUMULATIVE SNO ABR ($M) 15M $19M SNO Pipeline represents 4.8% of 4Q22 ABR • National Tenants repre
Slide 7: Significant liquidity at quarter end
S I G N I F I C A N T L I Q U I D I T Y AT Q U A R T E R E N D $1,000 $800 A s of Decemb er 31, 2022, SITE Centers had $970 M of liquidit y including: • $20 M of c ash a n d c ash e q ui v ale nt s $600 • $95 0 M of av ailabilit y o n th e C o m p a ny ’s lin e of c re dit $400 Variable rate debt ac
Slide 8: Investment Highlights: Shops on Montview
S H O P S O N M O N T V I E W D EN V ER , CO M S A - $96 K AVG . H H I N CO M E Investment Highlights • SITE Centers acquired Shops on Montview for $6M in December 2022. • Shops on Montview is a 9KSF convenience property located in the heart of Denver’s largest residential neighborhood, Central Park
Slide 9: Investment Highlights: Foxtail Center
F O X TA I L C E N T E R B A LT I M O R E , M D M S A - $ 12 9 K AV G . H H I N C O M E Investment Highlights • SITE Centers acquired Foxtail Center for $15M in January 2023. • Foxtail Center is a 30KSF convenience property located in the affluent Baltimore suburb of Timonium, MD, along York Road, o
Slide 10: Investment Highlights: Parker Keystone
PA R K E R K E Y S T O N E D EN V ER , CO M S A - $12 0 K AVG . H H I N CO M E Investment Highlights • SITE Centers acquired Parker Keystone for $11M in January 2023. • Parker Keystone is located in Parker, CO, one of the nation’s fastest growing housing markets. The asset’s prime location at a majo
Slide 11: 2023 Guidance and Earnings Considerations
2 0 2 3 G U I D A N C E A N D E A R N I N G S C O N S I D E R AT I O N S 4 Q 2 2 E arni ng s C o nsi dera tions • 4Q22 included $800K of uncollectible revenue related to prior periods • $300K of straight-line rent from conversion of cash basis tenants 2023 GUIDANCE1 FY2023 • Wholly-owned asset sales
Slide 12: Convenience Real Estate Opportunity
Convenience Real Estate Opportunity SITE CENTERS 4Q22 CONFERENCE CALL 12
Slide 13: Convenience Sector Attributes
C O N V E N I E N C E S E C TO R AT T R I B U T E S 1 CLOSE PROXIMITY TO GROWING SUBURBAN POPULATION 2 STANDARDIZED SITE PLAN REDUCES CAPEX Data analytics confirm that curbside real estate Convenience properties are laid out as a ubiquitous overwhelmingly caters to convenience trips from the line-up
Slide 14: Scalable Investment Opportunity
SCAL ABLE INVESTMENT OPPORTUNIT Y OVE R $ 40 B O F CO NVE NIE N CE PRO PE RTIES WE RE SO LD IN 2018 -2022 PROVIDIN G A B ROAD INVESTM E NT O PP O RTU NIT Y SE T 2018 - 2022 TRANSACTION DATA $50 $40b $42b $40 $37b 38b $ $34b $ BILLIONS $30 $20 $14b $10 $0 REGIONAL COMMUNITY HIGH NEIGHBORHOOD CONVENIE
Slide 15: Lease Structure and Credit Profile Offer Attractive Investment Attributes
L E A S E S T R U C T U R E A N D C R E D I T P R O F I L E O F F E R AT T R A C T I V E I N V E S T M E N T AT T R I B U T E S C o n ve n i e n c e p ro p e r t i e s h a ve e l ev a t e d a f t e r C a p E x re t u r n s h i g h l i g h t e d b y : • S i g n i f i c a n t t e n a n t d i ve rs i f
Slide 16: Limited Capital Required Improving Returns and Cash Flow
L I M I T E D C A P I TA L R E Q U I R E D I M P R O V I N G R E T U R N S A N D C A S H F LO W C o n ve n i e n c e p ro p e r t i e s re q u i re l i m i t e d c a p i t a l g e n e ra t i n g s u b s t a n t i a l f re e c a s h f l ow o n a n a b s o l u t e a n d re l a t i ve b a s i s : • C a
Slide 17: Growing Convenience Real Estate Portfolio
G R O W I N G C O N V E N I E N C E R E A L E S TAT E P O R T F O L I O SITE CE NTE RS ’ CO NVE NIE N CE P O RTFO LIO IS CO N CE NTR ATE D IN TO P SU B - MARK E TS AN D MSA s PRIMARILY IN TH E SOUTHWEST AN D SOUTH E AST U.S . B E N E FITIN G FRO M STRO N G P O PU L ATIO N AN D E M PLOYM E NT G ROW T
Slide 18: SITE Centers Convenience Real Estate Portfolio
S I T E C E N T E R S C O N V E N I E N C E R E A L E S TAT E P O R T F O L I O 27 CO NVE NIE N CE ASSE TS WITH AN AVE R AG E H HI O F $13 8 K AN D GSA TAP SCO RE O F 8 4 IN AD DITIO N TO A N U M B E R O F AD DITIO NAL CO NVE NIE N CE ASSE TS THAT ARE ADJACE NT TO E XISTIN G PRO PE RTIES WITH WO RK
Slide 19: SITE Centers Convenience Real Estate Portfolio Continued
S I T E C E N T E R S C O N V E N I E N C E R E A L E S TAT E P O R T F O L I O CONTINUED 27 CO NVE NIE N CE ASSE TS WITH AN AVE R AG E H HI O F $13 8 K AN D GSA TAP SCO RE O F 8 4 IN AD DITIO N TO A N U M B E R O F AD DITIO NAL CO NVE NIE N CE ASSE TS THAT ARE ADJACE NT TO E XISTIN G PRO PE RTIES W
Slide 20: Appendix
Appendix SITE CENTERS 4Q22 CONFERENCE CALL 20
Slide 21: Non-GAAP Financial Measures and Other Operational Metrics - Definitions
N O N - G A A P F I N A N C I A L M E A S U R E S A N D OT H E R O P E R AT I O N A L M E T R I C S - 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
Slide 22: Non-GAAP Financial Measures and Other Operational Metrics - Definitions Continued
N O N - G A A P F I N A N C I A L M E A S U R E S A N D OT H E R O P E R AT I O N A L M E T R I C S - D E F I N I T I O N S CONTINUED The Company uses the ratio Debt to Adjusted EBITDA (“Debt/Adjusted EBITDA”) as it believes it provides a meaningful metric as it relates to the Company’s ability to m
Slide 23: Reconciliation: Net Income Attributable to Common Shareholders to FFO and Operating FFO
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 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 ( A C T U A L A N D P R O J E C T E D R E S U LT S ) PER SHARE DILUTED ACTUAL 4Q22 ACTUAL 2022 ESTIMATE 2023 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDER
Slide 24: Reconciliation: Net Income Attributable to Site Centers to Same Store NOI
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 SAM E STO RE N OI AT SITE CENTERS SHARE (NON-GAAP) GAAP RECONCILIATION 4Q22 4Q21 NET INCOME ATTRIBUTABLE TO SITE CENTERS $28,197 $58,994 Fee Income (2,075) (10,257) Interest Expense 20,386 18,682 Depreci
Slide 25: Reconciliation 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 A M E S T O R E N O I CONTINUED AT SITE CENTERS SHARE (NON-GAAP) GAAP RECONCILIATION 4Q22 4Q21 NET INCOME FROM UNCONSOLIDATED JOINT VENTURES $361 $39,516 Interest Expense 1,682 2,444 Depreciation and
Slide 26: Reconciliation - Debt/Adjusted EBITDA TTM December 31, 2022
R E C O N C I L I A T I O N - D E B T/ A D J U S T E D E B I T D A T T M DEC EM B ER 3 1, 20 22 CONSOLIDATED NET INCOME TO SITE CENTERS $168,719 Interest Expense 77,692 Income Tax, Net 816 Depreciation and Amortization 203,546 EBITDA 450,773 Impairment Charges 2,536 Gain on Sale and Change in Contro
Slide 27: Reconciliation - Debt/Adjusted EBITDA Continued
R E C O N C I L I A T I O N - D E B T /A D J U S T E D E B I T D A CONTINUED T T M DEC EM B ER 3 1, 20 22 Consolidated Debt - Average 1,692,200 Loan Costs, Net - Average 5,843 Face Value Adjustments - Average (951) Cash and Restricted Cash - Average (32,233) AVERAGE NET EFFECTIVE DEBT $1,664,859 DEB