SITE Centers Corp. · NYSE:SITC
SITE Centers — Citi Global Property CEO Conference 2023
40 slides from SITE Centers's conference presentation, March 2023
Slide 1: Citi Global Property CEO Conference
CITI GLOBAL PROPERTY CEO CONFERENCE SITE CENTERS | MARCH 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: SITE Centers Key Takeaways
S I T E C E N T E R S K E Y TA K E AWAY S F O C U S E D P O R T F O L I O L O C AT E D I N T H E W E A LT H I E S T S U B - M A R K E T S O F T H E U . S . 101 WHOLLY- OWNED PROPERTIES WITH AVER AG E HOUSEHOLD INCOME OF $112K (90TH PERCENTILE) 373 C A P I TA L A L L O C AT I O N T R AC K R E C O R D
Slide 4: SITE Centers Portfolio Overview
SITE CENTERS PORTFOLIO OVERVIEW 114k 1 OF S H O P P I N G C EN T ER S N AT I O N A L LY 111 45 W O /J V A S S E T S W O /J V A S S E T S SOLD SINCE 3Q18 ACQUIRED SINCE 3Q18 SIT E CE N T E RS OW NS A CU R AT E D CO L L E C TI O N O F AVG H H I $112 K 101 P O P 111 K S H O P PI N G C E N T E RS (90TH
Slide 5: Portfolio Concentrated in Suburban, High HHI Communities
P O R T F O L I O C O N C E N T R AT E D I N S U B U R B A N , H I G H H H I C O M M U N I T I E S A S S E T S L O C AT E D I N A F F L U E N T S U B - M A R K E T S W I T H B A R R I E R S T O E N T RY A N D T O P Q UA R T I L E D E M O G R A P H I C S 90th PERCENTILE 76th PERCENTILE 100% 100% 112k
Slide 6: Portfolio Composition
PORTFOLIO COMPOSITION 88% of tenants are national by AB R • 63 of top 100 (50%+ of ABR) public • New concept growth across multiple unit sizes Concentrated in af fluent sub - markets • Avg. HHI of $112K vs. $67K national average • 2.4% 5-year population growth vs. 1.2% national average • $502K avera
Slide 7: Portfolio Composition by MSA and Region
PORTFOLIO COMPOSITION O T H E R 65% A T L A N T A 8% M I A M I 8% $112k 111k AVG H HI P O P U L AT I O N O R L A N D O 7% Top 5 MSAs by C H I C A G O 6% ABR B O S T O N 6% Concentrated in affluent suburban communities in top U.S. growth markets. 4 6% N O R T H E A S T 16% SOUTHEAST ABR by M I D W E
Slide 8: Key Stakeholders and Sustainability Awards
S I T E C E N T E R S ’ K E Y S TA K E H O L D E R S A N D S U S TA I N A B I L I T Y AWA R D S I N 2 0 2 2 , T H E C O M PA N Y P U B L I S H E D I T S 8 T H S U S TA I N A B I L I T Y R E P O R T W H I C H WA S T H E 6T H R E P O R T C O M P L E T E D T O T H E G L O B A L R E P O R T I N G I N I
Slide 9: Operations Overview
Operations Overview SITE CENTERS 2023 CITI GLOBAL PROPERT Y CEO CONFERENCE 9
Slide 10: Robust Tenant Demand and Limited Supply Driving Leased Rate Higher
R O B U S T T E N A N T D E M A N D A N D L I M I T E D S U P P LY D R I V I N G L E A S E D R AT E H I G H E R S I T E C E N T E R S H A S E X E C U T E D A L M O S T 8 M S F O F L E A S E S AT S H A R E I N T H E L A S T T WO Y E A R S W I T H E L E VAT E D D E M A N D AC R O S S A L L U N I T S I
Slide 11: SNO Pipeline Expected to Drive Future NOI Growth
SN O PIPELIN E E XPEC TED TO D RIV E FUTURE N OI G ROW TH $19M SN O PIPELIN E R EPR ESEN TS 5% O F A B R • National tenants represent 83% of the SNO pipeline (36% publicly traded) ® 2022+ SNO COMMENCEMENT SCHEDULE (ABR) 96% 20 19m $ 18 CU M U L ATIV E S N O A B R ($M) 95% 16 94% < 290 BP SPREAD 14 1
Slide 12: Elevated Anchor Demand Across Portfolio
E L E VAT E D A N C H O R D E M A N D A C R O S S P O R T F O L I O S I T E C E N T E R S H A S S I G N E D 7 3 A N C H O R S S I N C E T H E S TA R T O F T H E PA N D E M I C C O N C E N T R AT E D I N P U B L I C , C R E D I T N AT I O N A L T E N A N T S O T H E R 76% N E W C O N C E P T 24% New
Slide 13: Anchor Availability Declining Due to Robust Leasing Activity
A N C H O R AVA I L A B I L I T Y D EC L I N I N G D U E TO R O B US T L E A SI N G AC T I V I T Y O N LY 5 W H O L LY OW N E D A N C H O R S AVA I L A B L E A S O F Y E A R E N D 2 0 2 2 S H R I N K I N G VA C A N T A N C H O R I N V E N T O R Y 7 IN N EG OTIATIO NS, A DVA N CED 1 L E ASED DISCUSSI
Slide 14: Historically Low Levels of Supply
H I S T O R I C A L LY L O W L E V E L S O F S U P P LY 2019-2021 SAW HISTO RIC ALLY LOW LE VE L S O F SU PPLY ALO N G WITH IN CRE ASE D D E MAN D FRO M PAN D E MIC RE L ATE D SO CIE TAL SHIF TS 2.5% N E W R E TAIL SU PPLY & SH A D OW SU PPLY 2.1% 2.0% 1.5% 1.4% 1.4% 1.0% 0.9% 0.9% 0.9% 0.6% 0.5% 0.
Slide 15: Capital Deployment
Capital Deployment SITE CENTERS 2023 CITI GLOBAL PROPERT Y CEO CONFERENCE 15
Slide 16: Redevelopment Pipeline Concentrated on Convenience Projects
R E D E V E LO P M E N T P I P E L I N E C O N C E N T R AT E D O N C O N V E N I E N C E P R O J E C T S SITE CE NTE RS’ RE D E VE LO PM E NT PIPE LIN E D E LIVE RIES SE T TO R AM P IN 2 H23 WITH JUST OVE R HALF O F TH E PIPE LIN E O PE NIN G BY YE AR E N D AT A B LE N D E D YIE LD O F 11% 2023 D E
Slide 17: 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 18: Investment Highlights: Shops at Boca Center
S H O P S AT B O C A C E N T E R B O C A R ATO N , F L - $ 1 19 K AV G . H H I N C O M E Investment Highlights • SITE Centers acquired Shops at Boca Center in March 2022 for $90M. • The 117 ksf retail center is located in a vibrant mixed-use shopping center anchored by a 360 ksf office tower and 256
Slide 19: Investment Highlights: Shoppes of Crabapple
S H O P P E S O F C R A B A P P L E A L P H A R E T TA , G A - $ 1 4 6 K AV G . H H I N C O M E Investment Highlights • SITE Centers acquired Shoppes of Crabapple in April 2022 for $4.4M. • 8KSF convenience asset located at the crossroads of Alpharetta’s busiest intersection, one of Atlanta’s fastes
Slide 20: Investment Highlights: Greater Phoenix Convenience Portfolio
G R E AT E R P H O E N I X C O N V E N I E N C E P O R T F O L I O PHOENIX, A Z. MSA Investment Highlights • SITE Centers acquired 4 properties in the Phoenix MSA for $23M in 3Q22. • The properties, totaling 32KSF, are each located at highly trafficked intersections in Phoenix’s suburbs. • The tenan
Slide 21: Investment Highlights: Fairfax Convenience Portfolio
FA I R FA X C O N V E N I E N C E P O R T F O L I O WASHIN GTO N D.C . MSA Investment Highlights • SITE Centers acquired 3 convenience assets in Fairfax, VA for $35M in June 2022. • Each property benefits from its location along Route 50, one of Northern Virginia’s primarily commercial roads. • The
Slide 22: Convenience Real Estate Opportunity
Convenience Real Estate Opportuniity SITE CENTERS 2023 CITI GLOBAL PROPERT Y CEO CONFERENCE 22
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 R
Slide 29: 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
Slide 30: Outlook & Balance Sheet
Outlook & Balance Sheet SITE CENTERS 2023 CITI GLOBAL PROPERT Y CEO CONFERENCE 30
Slide 31: 2023 Outlook
2023 OUTLO O K $ 0.16-0.24 1.10-1.16 $ N E T I N C O M E AT T R I B U TA B L E FFO/O FFO TO COMMON SHAREHOLDERS PER SHARE PER SHARE (1.00)-2.50% 5-7m 1 $ SSNOI JV FEE INCOME Note: As of February 8, 2023. 1. Including redevelopment and approximately $3.4 million included in Uncollectible Revenue, pri
Slide 32: 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 • $300K of straight-line rent from conversion of cash basis tenants 2023 GUIDANCE1 FY2023 • Wholly-owned asset sales
Slide 33: Significant Liquidity with Minimal Near-Term Maturities
S I G N I F I C A N T L I Q U I D I T Y W I T H M I N I M A L N E A R -T E R M M AT U R I T I E S CO N S O L I DAT E D M AT U R I T Y S C H E D U L E ($ M ) 1 1,200 1,000 A s of Decemb er 31, 2022, SITE Centers had $970 M 800 of liquidit y including: 600 • $20 M of c ash a n d c ash e q ui v ale nt
Slide 34: Appendix
Appendix SITE CENTERS 2023 CITI GLOBAL PROPERT Y CEO CONFERENCE 34
Slide 35: Non-GAAP Financial Measures and Other Operational Metrics - Definitions
NON - GA AP FINANCIAL MEASURES AND 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 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”) p
Slide 36: Non-GAAP Financial Measures Definitions Continued
NON - GA AP FINANCIAL MEASURES AND O T 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 meet various leverage
Slide 37: 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 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 ( P R O J E C T E D R E S U LT S ) PER SHARE DILUTED Estimate 2023 NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS $0.16 - $0.24 Depreciation and amortizat
Slide 38: 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 DEC EM B ER 3 1, 20 22 CONSOLIDATED NET INCOME TO SITE CENTERS $168,719 Interest Expense 77,692 Income Taxes, Net 816 Depreciation and Amortization 203,546 EBITDA 450,773 Impairment Charges 2,536 Gain on Sale and Change in Cont
Slide 39: 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 C O N T I N U E D 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
Slide 40: Office Locations
Cleveland New York Hong Kong Atlanta Denver Los Angeles 330 0 Enterprise Park way 320 Park Avenue U n i t 1 3 1 3 , Tw o P a c i f i c P l a c e 303 Perimeter Center N. 390 Union Boulevard 95 South Pine Avenue B ea chwo o d, O H 4 4122 27th Floor 8 8 Q u e e n s w ay, A d m i r a l t y, H K Suite 72
SITE Centers — Citi Global Property CEO Conference 2023 on 6ix