Site Centers Corp. · NYSE:SITC
Site Centers — Q2 2023 Earnings Presentation
41 slides from Site Centers's earnings presentation, Jul 25, 2023
Slide 1: Quarterly Financial Supplement for the Period Ended June 30, 2023
SITE QUARTERLY FINANCIAL SUPPLEMENT FOR THE PERIOD ENDED JUNE 30, 2023 RECENT ACQUISITION BRIARCROFT CENTER, HOUSTON, TEXAS SITC LISTED NYSE
Slide 2: Company & Portfolio Overview
SITE CENTERS COMPANY & PORTFOLIO OVERVIEW SITE Centers is an owner and manager of open-air shopping centers 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
Slide 3: Table of Contents
SITE Centers Corp. Table of Contents Section Page Earnings Release & Financial Statements Press Release.......................................................................................................................................................... 1-9 Company Summary Portfolio Summary.....
Slide 4: SITE Centers Reports Second Quarter 2023 Results
SITE Centers Corp. For additional information: 3300 Enterprise Parkway Conor Fennerty, EVP and Beachwood, OH 44122 Chief Financial Officer 216-755-5500 FOR IMMEDIATE RELEASE: SITE Centers Reports Second Quarter 2023 Results BEACHWOOD, OHIO, July 25, 2023 - SITE Centers Corp. (NYSE: SITC), an owner o
Slide 5: Leasing spreads, leased rate and guidance
• Generated straight-lined new leasing spreads of 35.0% and straight-lined renewal leasing spreads of 11.3%, both on a pro rata basis, for the trailing twelve-month period ended June 30, 2023 and straight-lined new leasing spreads of 23.3% and straight-lined renewal leasing spreads of 11.9%, both on
Slide 6: Non-GAAP Measures and Other Operational Metrics
Non-GAAP Measures and Other Operational Metrics 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 Opera
Slide 7: Safe Harbor
major redevelopment properties, and deals for units vacant at the time of acquisition are considered non-comparable and excluded from the calculation. Safe Harbor SITE Centers Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Sec
Slide 8: Income Statement: Consolidated Interests
SITE Centers Corp. Income Statement: Consolidated Interests in thousands, except per share 2Q23 2Q22 6M23 6M22 Revenues: Rental income (1) $135,954 $136,203 $271,826 $266,087 Other property revenues 429 922 1,390 2,097 136,383 137,125 273,216 268,184 Expenses: Operating and maintenance 22,476 22,278
Slide 9: Reconciliation: Net Income to FFO and Operating FFO
SITE Centers Corp. Reconciliation: Net Income to FFO and Operating FFO and Other Financial Information in thousands, except per share 2Q23 2Q22 6M23 6M22 Net income attributable to Common Shareholders $2,564 $57,601 $15,059 $68,749 Depreciation and amortization of real estate 57,350 49,775 110,067 9
Slide 10: Balance Sheet: Consolidated Interests
SITE Centers Corp. Balance Sheet: Consolidated Interests $ in thousands At Period End 2Q23 4Q22 Assets: Land $1,094,240 $1,066,852 Buildings 3,770,497 3,733,805 Fixtures and tenant improvements 600,948 576,036 5,465,685 5,376,693 Depreciation (1,724,837) (1,652,899) 3,740,848 3,723,794 Construction
Slide 11: Reconciliation of Net Income Attributable to SITE to Same Store NOI
SITE Centers Corp. Reconciliation of Net Income Attributable to SITE to Same Store NOI $ in thousands 2Q23 2Q22 2Q23 2Q22 At SITE Centers Share SITE Centers at 100% (Non-GAAP) GAAP Reconciliation: Net income attributable to SITE Centers $5,353 $60,390 $5,353 $60,390 Fee income (1,775) (3,557) (1,775
Slide 12: Reconciliation of Net Income Attributable to SITE to Same Store NOI
SITE Centers Corp. Reconciliation of Net Income Attributable to SITE to Same Store NOI $ in thousands 6M23 6M22 6M23 6M22 At SITE Centers Share SITE Centers at 100% (Non-GAAP) GAAP Reconciliation: Net income attributable to SITE Centers $20,637 $74,327 $20,637 $74,327 Fee income (3,634) (6,818) (3,6
Slide 13: Portfolio Summary
SITE Centers Corp. Portfolio Summary 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Shopping Center Count Operating Centers - 100% 121 120 119 122 132 Wholly Owned 108 105 101 103 99 JV Portfolio 13 15 18 19 33 Gross Leasable Area (GLA) Owned and Ground Lease - Pro Rata Share 22,999 23,014 23,09
Slide 14: Capital Structure
SITE Centers Corp. Capital Structure $, shares and units in thousands, except per share June 30, 2023 December 31, 2022 December 31, 2021 Capital Structure Market Value Per Share $13.22 $13.66 $15.83 Common Shares Outstanding 209,273 210,853 211,235 Operating Partnership Units 0 141 141 Total Outsta
Slide 15: Same Store Metrics
SITE Centers Corp. Same Store Metrics (1) Same Store at SITE Share Quarterly Same Store NOI YTD Same Store NOI 2Q23 2Q22 Change 6M23 6M22 Change Leased rate 95.5% 94.6% 0.9% 95.5% 94.6% 0.9% Commenced rate 92.4% 91.3% 1.1% 92.4% 91.3% 1.1% Revenues: Minimum rents $94,571 $92,737 $188,352 $183,270 Re
Slide 16: Leasing Summary
SITE Centers Corp. Leasing Summary At pro rata share except for count Leasing Activity Comparable Pool Total Pool Leasing Spreads Straight- Count GLA ABR PSF Cash lined Term Count GLA ABR PSF Term New Leases 2Q23 11 89,204 $26.73 14.8% 23.3% 9.4 33 170,016 $25.97 8.6 1Q23 14 23,874 $40.79 20.3% 36.7
Slide 17: Lease Expirations
SITE Centers Corp. Lease Expirations At pro rata share except for count; $ and GLA in thousands Assumes no exercise of lease options Greater than 10K SF Less than 10K SF Total % of % of % of # of Expiring % of SF ABR Rent # of Expiring % of SF ABR Rent # of Expiring % of SF ABR Rent Year Leases SF >
Slide 18: Top 50 Tenants
SITE Centers Corp. Top 50 Tenants $ and GLA in thousands Number of Units Base Rent Owned GLA Credit Ratings Tenant WO JV Total Pro Rata % of Total At 100% Pro Rata % of Total At 100% (S&P/Moody's/Fitch) 1 TJX Companies (1) 53 8 61 $23,074 5.8% $24,967 1,634 7.1% 1,798 A/A2/NR 2 Dick's Sporting Goods
Slide 19: Redevelopment Pipeline
SITE Centers Corp. Redevelopment Pipeline (1) $ in thousands SITE Est. Est. Est. Placed Own Yield Net Costs Remain. In Initial Est. Shopping Center MSA % (%) Costs to Date Costs Service CIP Occ. Stabilize Key Tenants West Bay Plaza - Phase II Cleveland, OH 100% $7,941 $6,988 $953 $6,988 $0 2Q22 4Q23
Slide 20: Transactions
SITE Centers Corp. Transactions $ and GLA in thousands Acquisitions SITE Owned Price Property Name MSA Own % GLA At 100% At Share 01/05/23 Foxtail Center Baltimore-Columbia-Towson, MD 100% 30 $15,075 $15,075 01/06/23 Parker Keystone Denver-Aurora-Lakewood, CO 100% 17 11,000 11,000 1Q 2023 Total 47 $
Slide 21: Debt Summary
SITE Centers Corp. Debt Summary $ in thousands Consolidated Debt Unconsolidated Debt Total Debt Debt Composition 100% SITE Share Interest Rate 100% SITE Share Interest Rate SITE Share Interest Rate Unsecured Credit Facilities $175,000 $175,000 6.02% $0 $0 - $175,000 6.02% Unsecured Term Loan 200,000
Slide 22: Debt Detail
SITE Centers Corp. Debt Detail $ in thousands Balance Balance Maturity GAAP Interest 100% SITE Share Date Rate Bank Debt Unsecured Term Loan ($200m)(1) $200,000 $200,000 06/27 3.99% Unsecured Revolver ($950m)(2) 175,000 175,000 06/27 SOFR + 95 $375,000 $375,000 Unsecured Debt Unsecured Notes - 2024
Slide 23: Debt/Adjusted EBITDA
SITE Centers Corp. Debt/Adjusted EBITDA $ in thousands Twelve months Twelve months ended ended June 30, 2023 June 30, 2022 Consolidated Consolidated net income to SITE $115,029 $161,385 Interest expense 81,369 75,018 Tax expense 786 1,301 Depreciation and amortization 214,703 194,375 Adjustments for
Slide 24: Unconsolidated Joint Ventures
SITE Centers Corp. Unconsolidated Joint Ventures $ and GLA in thousands SITE Number of Owned Leased 2Q23 NOI Gross Debt Balance Joint Venture Own % Properties GLA Rate ABR at 100% (1) RE Assets at 100% (2) Chinese Institutional Investors DTP 20% 10 3,397 96.4% $14.78 $12,636 $588,335 $364,320 Madiso
Slide 25: Unconsolidated Joint Ventures
SITE Centers Corp. Unconsolidated Joint Ventures Combined SITE JV Pro Rata Adjustments (1) Income Statement Pro Rata Adjustments 2Q23 Balance Sheet Pro Rata Adjustments 2Q23 Revenues: Assets: Rental Income (2) $5,482 Land $39,271 Other income (3) 215 Buildings 134,469 5,697 Improvements 15,778 Expen
Slide 26: Unconsolidated Joint Ventures at 100%
SITE Centers Corp. Unconsolidated Joint Ventures at 100% $ in thousands Combined Income Statement 2Q23 2Q22 6M23 6M22 Revenues: Rental income (1) $23,092 $37,443 $47,408 $78,383 Other income (2) 978 719 1,352 1,428 24,070 38,162 48,760 79,811 Expenses: Operating and maintenance 3,465 5,755 7,084 12,
Slide 27: Property List
SITE Centers Corp. Property List Note: GLA in thousands. Anchors include tenants greater than 20K SF. SITE Owned ABR # Center MSA Location ST Own % JV GLA PSF Anchor Tenants 1 Chandler Center Phoenix-Mesa-Scottsdale, AZ Chandler AZ 100% 7 $42.45 — 2 Shops at Power and Baseline Phoenix-Mesa-Scottsdal
Slide 28: Property List
SITE Centers Corp. Property List Note: GLA in thousands. Anchors include tenants greater than 20K SF. SITE Owned ABR # Center MSA Location ST Own % JV GLA PSF Anchor Tenants 40 Lee Vista Promenade Orlando-Kissimmee-Sanford, FL Orlando FL 100% 314 $17.61 Academy Sports, Bealls OUTLET, Epic Theatres,
Slide 29: Property List
SITE Centers Corp. Property List Note: GLA in thousands. Anchors include tenants greater than 20K SF. SITE Owned ABR # Center MSA Location ST Own % JV GLA PSF Anchor Tenants 81 The Hub New York-Newark-Jersey City, NY-NJ-PA Hempstead NY 100% 249 $13.35 Home Depot, Stop & Shop 82 Belgate Plaza Charlot
Slide 30: Property List
SITE Centers Corp. Property List Note: GLA in thousands. Anchors include tenants greater than 20K SF. SITE Owned ABR # Center MSA Location ST Own % JV GLA PSF Anchor Tenants 117 Boulevard Marketplace Washington-Arlington-Alexandria, DC-VA-MD-WV Fairfax VA 100% 19 $40.27 — 118 Fairfax Marketplace Was
Slide 31: Notable Accounting and Supplemental Policies
SITE Centers Corp. Notable Accounting and Supplemental Policies The information contained in the Quarterly Financial Supplement does not purport to disclose all items required by the accounting principles generally accepted in the United States of America (“GAAP”) and is unaudited information. The C
Slide 32: Notable Accounting and Supplemental Policies
SITE Centers Corp. Notable Accounting and Supplemental Policies Real Estate • Real estate assets are stated at cost less accumulated depreciation, which, in the opinion of management, is not in excess of the individual property's estimated undiscounted future cash flows, including estimated proceeds
Slide 33: Non-GAAP Measures
SITE Centers Corp. Non-GAAP Measures Performance Measures FFO and Operating FFO The Company believes that Funds from Operations (“FFO”) and Operating FFO, both non-GAAP financial measures, provide additional and useful means to assess the financial performance of REITs. FFO and Operating FFO are fre
Slide 34: Non-GAAP Measures
SITE Centers Corp. Non-GAAP Measures In calculating the expected range for or amount of net (loss) income attributable to common shareholders to estimate projected FFO and Operating FFO for future periods, the Company does not include a projection of gain and losses from the disposition of real esta
Slide 35: Non-GAAP Measures
SITE Centers Corp. Non-GAAP Measures Other Measures SITE Pro Rata Share Financial Information The Company believes that the SITE pro rata share of its joint ventures presented in the quarterly supplement is not, and is not intended to be, a presentation in accordance with GAAP. SITE share financial
Slide 36: Portfolio Summary at 100%
SITE Centers Corp. Portfolio Summary at 100% GLA in thousands 6/30/2023 3/31/2023 12/31/2022 9/30/2022 6/30/2022 Shopping Center Summary Operating Centers – 100% 121 120 119 122 132 Wholly Owned - SITE 108 105 101 103 99 JV Portfolio 13 15 18 19 33 Owned and Ground Lease GLA – 100% 26,240 26,578 26,
Slide 37: Leasing Summary
SITE Centers Corp. Leasing Summary Wholly Owned at 100% Leasing Activity Comparable Pool Total Pool Leasing Spreads Straight- Count GLA ABR PSF Cash lined Term Count GLA ABR PSF Term New Leases 2Q23 11 89,204 $26.73 14.8% 23.3% 9.4 28 164,964 $26.12 8.6 1Q23 13 23,554 $41.00 20.6% 37.1% 9.6 30 122,0
Slide 38: Leasing Summary
SITE Centers Corp. Leasing Summary Unconsolidated Joint Ventures at 100% Leasing Activity Comparable Pool Total Pool Leasing Spreads Straight- Count GLA ABR PSF Cash lined Term Count GLA ABR PSF Term New Leases 2Q23 0 0 $0.00 ---% ---% 0.0 5 25,262 $21.11 9.2 1Q23 1 1,600 $26.00 (7.4%) (2.7%) 3.0 2
Slide 39: Leasing Expirations
SITE Centers Corp. Leasing Expirations Wholly Owned at 100%; $ and GLA in thousands Assumes no exercise of lease options Greater than 10K SF Less than 10K SF Total % of # of Expiring % of SF ABR Rent # of Expiring % of SF % of ABR Rent # of Expiring % of SF % of ABR Rent Year Leases SF > 10K ABR > 1
Slide 40: Leasing Expirations
SITE Centers Corp. Leasing Expirations Unconsolidated Joint Ventures at 100%; $ and GLA in thousands Assumes no exercise of lease options Greater than 10K SF Less than 10K SF Total % of # of Expiring % of SF ABR Rent # of Expiring % of SF % of ABR Rent # of Expiring % of SF % of ABR Rent Year Leases
Slide 41: Investor Relations Department
SITE CENTERS INVESTOR RELATIONS DEPARTMENT e: ir@sitecenters.com w: ir.sitecenters.com 3300 Enterprise Pkwy, Beachwood, OH 44122 o:216-755-5500 f:216-755-1500 w: sitecenters.com • NYSE:SITC