Site Centers Corp. · NYSE:SITC
Site Centers — Q1 2019 Earnings Presentation
17 slides from Site Centers's earnings presentation, Apr 24, 2019
Slide 1: 1Q19 Earnings Conference Call
1Q19 Earnings SITE CENTERS CONFERENCE CALL 24 A P R I L , 20 19 SITE CENTERS 1Q19 CONFERENCE C ALL 1
Slide 2: Safe Harbor Statement
S A F E H A R B O R S TAT E M E N T SITE Centers 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 the Co
Slide 3: Table of Contents
Table of 1 Q 1 9 K E Y TA K E AWAYS 4 1 Q 19 R E S U LT S S U M M A R Y 5 Contents 1 Q 19 L E A S I N G U P DAT E 6 B A L A N C E S H E E T U P DAT E 7 TRANSACTION ACTIVIT Y 8 I M PAC T O F N E W L E AS E AC C O U N T I N G S TA N DA R D 9 GUIDANCE & EARNINGS C O N S I D E R AT I O N S 10 APPENDIX 1
Slide 4: 1Q19 Key Takeaways
1 Q 1 9 K E Y TA K E AWAY S Five-Year Plan On Track 1 2019 YTD OPERATIONS AND RESULTS AHEAD OF PLAN 2 INCREASED OFFO & SSNOI EXPECTATIONS 1Q HIGHLIGHTS Opportunistic activity – $1M Capital recycling – Vista Village Balance Sheet improvement – CS/Shopko management fee disposition at 6% cap rate debt/
Slide 5: 1Q19 Results Summary
1 Q 1 9 R E S U LT S S U M M A R Y $0.15 $0.32 1Q19 E PS/SH 1 Q 19 O P E R AT I N G FF O/S H 93.0% 2.0% 8.6% LEASED S S N O I ( P R O - R ATA ) TTM BLENDED LEASING SPREAD 21.6% TTM NEW LEASE SPREAD SITE CENTERS 1Q19 CONFERENCE C ALL 5
Slide 6: 1Q19 Leasing Update
1 Q 1 9 L E A S I N G U P D AT E 1Q19 blended leasing spreads +10.7%; SITE Centers new lease spreads +23.2% Continued demand for space across the portfolio with 10 anchor leases executed with 9 different brands in the quarter New, renewal, and blended leasing spreads for 1Q are all in excess of trai
Slide 7: Balance Sheet Update
B A L A N C E S H E E T U P D AT E Debt/adjusted EBITDA C O N S O L I D AT E D M AT U R I T Y S C H E D U L E ( $ M ) now 5.5X compared to 6.5X in 1Q18 $1, 2 0 0 $1, 0 0 0 Minimal near-term $80 0 refinancing and interest $600 rate risk with just $58M $400 of consolidated debt $2 0 0 maturing through
Slide 8: Transaction Activity
TR ANSAC TION AC TIVIT Y 1Q19 ASSET SALES 2019 Y TD ASSET SALES $ 186M $ 222M DISPOSITIONS DISPOSITIONS ($90M PRO-RATA) ($95M PRO-RATA) B L ACKSTONE PREFERRED REPAYMENT B L ACKSTONE PREFERRED REPAYMENT $ 12M $12M PROCEEDS PROCEEDS SITE CENTERS 1Q19 CONFERENCE C ALL 8
Slide 9: Impact of New Lease Accounting Standard
I M PA C T O F N E W L E A S E A C C O U N T I N G S TA N D A R D PREVIOUS CURRENT Bad Debt Presentation Change GAAP GAAP VA R I A N C E Rental Income $112,662 $112,221 ($441) - - Bad debt is now a component of rental Other Property Revenues $1,469 $1,469 - income and is no longer a component of Tot
Slide 10: 2019 Guidance & Earnings Considerations
2 0 1 9 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 RVI Fee Income RVI FEE INCOME NET INCOME FFO OFFO - -$9.5M in 1Q including $1.1M of disposition fees and $1.8M RVI Fees $6,556 $6,556 $6,556 refinancing fee RVI Disposition Fees $1,100 $1,100 - - -Disposition and refinancing RVI Re
Slide 11: Appendix
Appendix SITE CENTERS 1Q19 CONFERENCE C ALL 11
Slide 12: 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 13: 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 believes that FFO, OFFO and SSNOI are not, and are not intended to be, presentations in accordance with GAAP. FFO, OFFO and SSNOI information have their limitations as they exclude any capital expenditure
Slide 14: Reconciliation - Net Income 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 1Q19 2019E Net income attributable to common shareholders $0.15 $0.25 - $0.30 Depreciation and amortization of real estate 0.23 0.83 - 0.85 Equity in ne
Slide 15: Reconciliation - Net Income to SSNOI
R E C O N C I L I AT I O N - N E T I N C O M E ( LO S S ) AT T R I B U TA B L E TO SITE CEN TERS TO SSN O I AT SITE CENTERS SHARE (NON-GAAP) 1Q19 1Q18 1Q19 1Q18 NET INCOME (LOSS) ATTRIBUTABLE TO SITE CENTERS $35,790 ($54,153) $35,790 ($54,153) Fee income (17,332) (8,111) (17,332) (8,111) Interest in
Slide 16: Reconciliation - Net Income 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 ( LO S S ) AT T R I B U TA B L E T O 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) 1Q19 1Q18 1Q19 1Q18 NET INCOME FROM UNCONSOLIDATED JOINT VENTURES 6,666 23,405 774 8,452 Interest expense 25,656 24,243 4,429 3,749 Depre
Slide 17: Reconciliation - Debt/Adjusted EBITDA
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 1Q19 1Q18 CONSOLIDATED Net income (loss) to SITE $35,790 ($54,153) Interest expense 21,726 44,040 Income tax expense 272 (18) Depreciation and amortization 42,608 74,424 Adjustments for non-controlling interests (216) (167) EBITDA – c