Site Centers Corp. · NYSE:SITC
Site Centers — Q1 2023 Earnings Presentation
25 slides from Site Centers's earnings presentation, Apr 25, 2023
Slide 1: 1Q23 Earnings Conference Call
1Q23 EARNINGS CONFERENCE CALL SITE CENTERS | APRIL 25, 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
1 Q 2 3 K E Y TA K E AWAY S 4 1 Q 2 3 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 9 CONVENIENCE 10 APPENDIX 17 SITE CENTERS 1Q23 CONFERENCE CALL 3
Slide 4: Focused Portfolio Located in the Wealthiest Sub-Markets
1 Q 2 3 R E S U LT S K E Y TA K E AWAY S Focused portfolio located in the wealthiest sub-markets of the U.S. 1 0 5 WHOL 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 REINVESTMENT OF 4Q22 DISPOSITION PROCEEDS 2 LEASED RATE UP 50BP TO 95.9% •
Slide 5: Q1 2023 Results Summary
1 Q 2 3 R E S U LT S S U M M A R Y $0.06 $ 0.30 1Q23 EARNINGS O P E R AT I N G PER SHARE FFO PER SHARE 95.9% 4.2% 20.3% LEASED 1Q23 SSNOI G ROW TH 1Q23 NEW CASH 92 .9% COMMENCED ( P R O - R ATA ) LEASE SPREAD INCLUDING 9.9% 1Q23 BLENDED REDE VELOPMENT CASH LE ASE SPRE AD SITE CENTERS 1Q23 CONFERENCE
Slide 6: Operations Overview – Leasing Trends
1 Q 2 3 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 $ 20.3% 1Q23 New Cash Lease Spread; 9. 9 % 1 Q 2 3 B l e n d e d C a s h L e a s e S p r e a d CUMULATIVE SNO ABR ($M) 15M $19M SNO Pipeline represents 4.8% of 1Q23 ABR • N
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 March 31 2023, SITE Centers had $90 0 M • $25M of cash and cash equivalents $600 • $ 8 75 M of a v a i l a b i l i t y on t he C om p an y’s lin e of c re dit Variable rate debt accounts for 6% of total debt (PRS) at q
Slide 8: Barrett Corners Atlanta, GA
B A R R E T T C O R N E R S AT L A N TA , G A M S A - $ 8 9 K AV G . H H I N C O M E Investment Highlights • SITE Centers acquired Barrett Corners for $16M in April 2023 • Barrett Corners is a 19KSF convenience center positioned at a major intersection along one of Atlanta’s busiest retail corridors
Slide 9: 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 1Q 2 3 E arni ng s C o nsi derat ions • JV a s s e t s a l e s c on t ri bu t e d P R S $150 K FY2023 o f N OI a n d $ 1 3 0 K of fe e i n c ome in t h e 2023 GUIDANCE1 ORIGINAL REVISED f irs t q u a rt e r N et In c o m e At t
Slide 10: Convenience Real Estate Opportunity
Convenience Real Estate Opportunity SITE CENTERS 1Q23 CONFERENCE CALL 10
Slide 11: 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 12: 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 13: Lease Structure and Credit Profile
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 igni fi c a n t t e n a n t di ve rs i fi c a
Slide 14: 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 15: SITE Centers Convenience 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 3 0 CO NVE NIE N CE ASSE TS WITH AN AVE R AG E H HI O F $132 K AN D GSA TAP SCO RE O F 83 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 U
Slide 16: SITE Centers Convenience 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 3 0 CO NVE NIE N CE ASSE TS WITH AN AVE R AG E H HI O F $132 K AN D GSA TAP SCO RE O F 83 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 WI
Slide 17: Appendix
Appendix SITE CENTERS 1Q23 CONFERENCE CALL 17
Slide 18: Non-GAAP Financial Measures and Other Metrics
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 19: Non-GAAP Financial Measures and Other Metrics 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 20: Reconciliation: Net Income to FFO and OFFO
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 F I R S T Q U A R T E R 2 0 2 3 R E S U LT S PER SHARE DILUTED ACTUAL 1Q23 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $0.06 Depreciation and Amortizat
Slide 21: Reconciliation: Projected Net Income to FFO
R E C O N C I L I AT I O N : P R O J E C T E D 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 PER SHARE DILUTED ORIGINAL ESTIMATE 2023 REVISED ESTIMATE 2023 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $0.16 - $0.24 $0.17 - $0.2
Slide 22: 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 1Q23 1Q22 NET INCOME ATTRIBUTABLE TO SITE CENTERS $15,284 $13,937 Fee Income (1,859) (3,261) Interest Expense 19,923 18,258 Deprecia
Slide 23: 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 1Q23 1Q22 NET INCOME FROM UNCONSOLIDATED JOINT VENTURES $1,004 $26 Interest Expense 1,587 2,088 Depreciation and Am
Slide 24: 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 T T M M ARC H 3 1, 20 23 CONSOLIDATED Consolidated Net Income to SITE $170,067 Interest Expense 79,357 Income Taxes, Net 776 Depreciation and Amortization 207,198 EBITDA 457,398 Impairment Charges 2,536 Gain on Sale and Change in Con
Slide 25: 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 M ARC H 3 1, 20 23 Consolidated Debt - Average 1,770,299 Loan Costs, Net - Average 5,350 Face Value Adjustments - Average (849) Cash and Restricted Cash - Average (22,337) AVERAGE NET EFFECTIVE DEBT $1,752,463 DEBT/AD