Site Centers Corp. · NYSE:SITC
Site Centers — Q1 2022 Earnings Presentation
22 slides from Site Centers's earnings presentation, Apr 26, 2022
Slide 1: 1Q22 Earnings Conference Call
1Q22 Earnings SITE CENTERS CONFERENCE CALL APRIL 26, 2022
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 presentation 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
Table of 1 Q 2 2 K E Y TA K E AWAY S 4 Contents 1 Q 2 2 R E S U LT S S U M M A R Y 5 JV PORTFOLIO ACQUISITION 6 O P E R AT I O N S OV E R V I E W 7 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 9 CONVENIENCE 10 APPENDIX 15 SITE CENTERS 1Q22 CONFERENCE CALL 3
Slide 4: 1Q22 Key Takeaways
1 Q 2 2 K E Y TA K E AWAY S Focused portfolio located in the wealthiest sub-markets of the U.S. 92 W HOL LY-OW NE D P R OP E R TI E S W I TH AVE R AG E H OUSEHO LD INCO ME O F $110 K (8 8 TH PE RCE NTILE ) 1 ROBUST LEASING TRENDS • 50 bp sequential increase in leased rate 2 STRONG ACQUISITION ACTIVI
Slide 5: 1Q22 Results Summary
1 Q 2 2 R E S U LT S S U M M A R Y $0.05 $0.29 1Q22 EARNINGS O P E R AT I N G PER SHARE FFO PER SHARE 93.2% 2.9% 15.4% LEASED 1Q22 SSNOI 1Q22 NEW 90.2% COMMENCED ( P R O - R ATA ) LEASE SPREAD INCLUDING + 7.2% 1Q22 BLENDED REDE VELOPMENT LE ASE SPRE AD SITE CENTERS 1Q22 CONFERENCE CALL 5
Slide 6: Acquisitions In Florida
A C Q U I S I T I O N S I N C R E A S E F L O R I D A T O O V E R 2 0 % O F C O M PA N Y ’ S VA L U E TA L L A H A S S E E THE SHOPPES AT NEW TAMPA (WESLEY CHAPEL) AVG HHI $105K | GSA TAP SCORE 83 ORLANDO C ASS E L B E R RY CO M M O NS (CASSELBERRY) AVG HHI $114K GSA TAP SCORE 79 SHOPPES AT PARADISE
Slide 7: Operations Overview - Leasing Trends Elevated
1 Q 2 2 O P E R AT I O N S OV E R V I E W – L E A S I N G T R E N D S E L E VAT E D 1Q22 NEW LEASE SPREADS +15.4%; LEA SED RATE INCREA SED 18 0BPS 1 Q22 B L E N D ED LEAS IN G S P R EAD S + 7.2 % IN 1Q 22 FROM 1Q 21 • $18M S NO pipeline repres ents 5 % of ABR • Mom e n t u m i n b ot h shop s a n d
Slide 8: 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 AS OF MARCH 31, 2022, SITE CENTERS HAD $872M OF LIQUIDIT Y INCLUDING: • $17M of consolidated cash on hand $800 • $855M of availability on the Company’s lines of credit $600 SE T TLED 2 .2M COMMON SHARES PRE VIOUSLY OFFERED AND SOL
Slide 9: 2022 Guidance And Earnings Considerations
2 0 2 2 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 FY2022 2022 GUIDANCE ORIGINAL REVISED 1Q 2 2 E A R N IN G S C O N S ID ER AT I O N S O FF O $1.0 8 - $1.13 $1.10 - $1.15 • Un collecti ble revenues in clude $1.3M J V Fe e In c o m e $8 .0 - $10.0 M $8 .0 - $10.0 M of p ay ment
Slide 10: Convenience
Convenience SITE CENTERS 1Q22 CONFERENCE CALL 10
Slide 11: Convenience Property Attributes
CONVENIENCE PROPERT Y AT TRIBUTES STANDARIZED SITE PLAN LAYOUT Convenience properties include a ubiquitous line-up of spaces that are attractive to a variety of credit tenants including restaurant, apparel and service tenants. SUPPLY DEMAND IMBALANCE STRONG PROXIMITY TO RESIDENTIAL Increased suburba
Slide 12: Scalable Investment Opportunity
SCAL ABLE INVESTMENT OPPORTUNIT Y OVER $35B OF CONVENIENCE PROPERTIES WERE SOLD IN 2016 -2020 PROVIDING A B ROAD INVESTMENT OPP ORTUNIT Y SE T 2016 - 2020 TRANSACTION DATA $49B $50 $40 $35B $34B $27B $ BILLIONS $30 $20 $16B $11B $10 $0 REGIONAL CO M M U N IT Y NEIGHBORHOOD CO N V E N I E N CE HIGH N
Slide 13: Convenience Properties Offer Attractive Investment Attributes
C O N V E N I E N C E P R O P E R T I E S 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 ELEVATED AFTER CAPEX RETURNS HIGHLIGHTED BY: • Concentration in national, credit tenants consistent with the SITE Centers portfolio • Limited CapEx given high tenant productivity and elevate
Slide 14: SITE Centers - Growing Convenience Real Estate Portfolio
S I T E C E N T E R S - 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 OWNS O R HAS ACQUIRE D IN TH E L AST T WO YE ARS 12 SE PAR ATE CO NVE NIE N CE ASSE TS IN AD DITIO N TO A N U M B E R O F CO NVE NIE N CE PARCE L S THAT ARE ADJACE NT TO E XISTIN G ASSE TS
Slide 15: Appendix
Appendix SITE CENTERS 1Q22 CONFERENCE CALL 15
Slide 16: 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 17: Non-GAAP Financial Measures - 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 - 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 meet various leverage tests for the corresponding p
Slide 18: Reconciliation - Net Income 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 T O C O M M O N S H A R E H O L D E R S T O 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 AND PROJECTED RESULTS ACTUAL 1Q22 PRIOR ESTIMATE 2022 REVISED ESTIMATE 202
Slide 19: Reconciliation - Net Income 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 1Q22 1Q21 NET INCOME ATTRIBUTABLE TO SITE CENTERS $13,937 $16,008 Fee Income (3,261) (8,152) Interest Expense 18,258 19,395 Deprecia
Slide 20: Reconciliation - Net Income To Same Store NOI 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 1Q22 1Q21 NET INCOME FROM UNCONSOLIDATED JOINT VENTURES $26 $4,378 Interest Expense 2,088 2,701 Depreciation and Am
Slide 21: Reconciliation - Debt/Adjusted EBITDA
R E C O N C I L I AT I O N - D E B T /A D J U S T E D E B I T D A T T M M ARC H 3 1, 20 22 CONSOLIDATED NET INCOME TO SITE $122,864 Interest Expense 75,246 Income Tax, Net 1,437 Depreciation and Amortization 190,572 Adjustments for Non-Controlling Interests (483) EBITDA 389,636 Gain on Change in Con
Slide 22: 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 TTM MARCH 31, 2022 Consolidated Debt - Average 1,769,396 Loan Costs, Net - Average 6,429 Face Value Adjustments - Average (1,133) Cash and Restricted Cash - Average (106,034) AVERAGE NET EFFECTIVE DEBT $1,668,658 DEBT/ADJUS