Site Centers Corp. · NYSE:SITC
Site Centers — Citi 2019 Global Property CEO Conference
34 slides from Site Centers's conference presentation, 2019
Slide 1: Citi 2019 Global Property CEO Conference
Citi 2019 Global Property CEO Conference H O L LY WO O D , F L O R I DA
Slide 2: Forward Looking Statements
F O R WA R D L O O K I N G S TAT E M E N T S The Company considers portions of the information contained 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
Slide 3: SITE Centers 5-Year Business Plan
S I T E C E N T E R S 5 -Y E A R B U S I N E S S P L A N RETURN FOCUSED 5% PREMIER AVG O FF O/N AV O P E R AT I N G GROWTH P L AT F O R M COMPELLING REDE VELOPMENT PIPELINE 2.75% OPPORTUNISTIC INVESTING BAL ANCE SHEET STRENGTH AVG SSN O I GROWTH SITE CENTERS » CITI 2019 GLOBAL PROPERTY CEO CONFERENC
Slide 4: Site Centers Business Drivers: Progress Report
SITE CENTERS BUSINESS DRIVERS » PROGRESS REPORT ATTRACT ADD OPPORTUNISTIC AND ADAPT INVESTING LEASING REDEVELOPMENT ACQUISITIONS GOAL GOAL GOAL LEASE UP 60 ANCHOR $10 0M OF ANNUAL SPENDING $75M OF ANNUAL INVESTMENTS OPPORTUNITIES U P DAT E U P DAT E U P DAT E - L E E V I S TA ($ 3 9 M ) C O M P L E
Slide 5: 2018 SITE Centers Accomplishments
2018 SITE CE NTE RS ACCO M PLISH M E NTS $81M RVI SITE CENTERS $85M FIRST RVI SPIN-OFF NAME CHANGE & OPPORTUNISTIC ASSET SALE COMPLETED 2 NEW BOARD MEMBERS INVESTMENTS $1.35BN $900M $607M DISPOSITION JOINT VENTURE RVI MORTGAGE PROGRAM COMPLETED CLOSED JAN DEC SITE CENTERS » CITI 2019 GLOBAL PROPERTY
Slide 6: Joint Venture with Chinese Institutional Investors
JOINT VENTURE WITH CHINESE INSTITUTIONAL INVESTORS PRE - FUNDS OPPORTUNISTIC INVESTING AND REDE VELOPMENT P ORTIONS OF SITE CENTERS 5 -YE AR BUSINESS PL AN $6 07 M J O IN T V EN T U R E, SIT E CEN T ERS R E TAININ G 20 % IN T ER ES T; $36 4M M O RTG AG E FU N D ED AT CLOSIN G SIT E CEN T ERS TO R EC
Slide 7: 2019 Outlook
2019 OUTLO O K 1 -1 $ .13 .18 1-2% OFFO SSNOI $ 20-24m $14-17m 62m $ 23-25m $ JV FEES INTEREST INCOME G&A RVI FEE INCOME SITE CENTERS » CITI 2019 GLOBAL PROPERTY CEO CONFERENCE 7
Slide 8: Minimal Near-Term Refinancing Risk
M I N I M A L N E A R -T E R M R E F I N A N C I N G R I S K W EIG H T ED AV ER AG E M AT U RIT Y N OW A B OV E PEER- G RO U P AV ER AG E W IT H N O CO NSO LIDAT ED M AT ERIA L M AT U RITIES U N TIL 2022 WA % D E B T M AT U R I N G 2 0 1 9 - 2 0 2 1 INTEREST W E I G H T E D AV E R A G E D E B T M A
Slide 9: Significant Balance Sheet Progress
SIGNIFICANT BAL ANCE SHEET PROGRESS $1000 BALANCE SHEET POSITIONED $900 FOR GROWTH $800 $700 Debt / EBITDA now 5.6X compared to 6.5X in 1Q18 $600 Minimal near-term refinancing and interest rate risk with just $58M of consolidated debt maturing $500 through 2021 $400 $870M of availability under the c
Slide 10: Leasing
ADD OPPORTUNISTIC ATTRACT INVESTING AND ADAPT REDE VELOPMENT ACQUISITIONS LEASING
Slide 11: Significant Exposure to Best-in-Class Grocers
S I G N I F I C A N T E X P O S U R E T O B E S T- I N - C L A S S G R O C E R S ASSE TS W IT H G RO CERY E XP OSU R E ACCO U N T FO R 43% O F T H E CO NSO LIDAT ED P O RT FO LIO W IT H AV E R AG E R E P O R TE D SA L ES O F $ 6 6 6/F T IN CLU DIN G M ASS M ERCH A N TS W IT H A G RO CERY CO M P O N
Slide 12: Dominant Assets Account for Almost 50% of Value
D O M I N A N T A S S E T S A C C O U N T F O R A L M O S T 5 0 % O F VA L U E SHOPPERS WORLD WINTER GARDEN VILLAGE NASSAU PARK PAVILION THE SHOPS AT MIDTOWN MIAMI PERIMETER POINTE (BOSTON) (ORLANDO) (NEW YORK) (MIAMI) (ATLANTA) AVG HHI $104K GSA TAP 38 AVG HHI $103K GSA TAP 94 AVG HHI $160K GSA TAP
Slide 13: Portfolio Diversity
PORTFOLIO DIVERSIT Y TO P 12 M A R K E TS ACCO U N T FO R 70 % O F PRO R ATA A B R B O S TO N 6 % N E W YO R K 6 % 8% CHICAGO 6% COLUMBUS WA S H I N G TO N , D C 3 % DENVER 6% LOS ANGELES 4% C H A R L OT T E 6 % PHOENIX 4% AT L A N TA 9 % ORLANDO 6% MIAMI 5% SITE CENTERS » CITI 2019 GLOBAL PROPERTY
Slide 14: Top Quartile Demographics
TO P QUARTILE D E M O G R APHIC S A S S E T S A R E C O N C E N T R AT E D I N A F F L U E N T C O M M U N I T I E S W I T H B A R R I E R S TO E N T R Y A N D COMPELLING DEMOGR APHICS. S I T E C E N T E R S P R O P E R T I E S A R E I N T H E TO P Q U A R T I L E W H E N C O M PA R E D TO A L L U .
Slide 15: Compelling Releasing Economics
COMPELLING RELEASING ECONOMICS R ECEN T B A N K RU P TCIES H AV E HIG H LIG H T ED T H E Q UA LIT Y A N D EM B ED D ED M A R K-TO - M A R K E T O F SIT E CEN T ERS R E A L ES TAT E. B A N K RU P TCIES A LSO PROVID E A N O PP O RT U NIT Y TO R EC A P T U R E CO N T RO L O F G L A A N D PA R K IN G FI
Slide 16: Attract and Adapt: Johns Creek Town Center
AT T R A C T A N D A D A P T » L E A S I N G 38% E S T I M AT E D JOHNS CREEK 10k sf MARK-TO-MARKET ON ANCHOR BOXES TOWN CENTER S U WA N E E , G A E X PA N S I O N OPPORTUNITY SPECIALT Y GROCER-ANCHORED CENTER WITH 10K SF EXPANSION OPPORTUNIT Y AND SIGNIFICANT MARK-TO -MARKET ON IN-PL ACE ANCHOR LEA
Slide 17: Attract and Adapt: Woodfield Village Green
AT T R A C T A N D A D A P T » L E A S I N G WOODFIELD VILL AG E G RE E N DEMOLISH VA C A N T B O X SCHAUMBURG, IL AND BUILD O U T PA R C E L 14% EST. ADAPT EXISTING SITE PL AN TO INCREMENTAL MA XIMIZE THE VALUE OF ENTITLED SQUARE FOOTAGE BY SCRAPING RETURN A VACANT ANCHOR BOX AND CONSTRUCTING A NEW
Slide 18: Attract and Adapt: Nassau Park Pavilion
AT T R A C T A N D A D A P T » L E A S I N G ASSUMED LEASE FROM TOYS “R” US N A S S A U PA R K R E L O C AT E PAV I L I O N VA C A N T S H O P PRINCETON, NJ S PA C E 9% ESTIMATED UNOWNED INCREMENTAL VA C A N T RETURN WEGMANS -ANCHORED FORMER CENTER WITH OPPORTUNIT Y SAM’S CLUB TO RELOCATE SHOP SPACE
Slide 19: Redevelopment
ATTRACT OPPORTUNISTIC AND ADAPT INVESTING ADD LEASING ACQUISITIONS REDE VELOPMENT
Slide 20: Compelling Land Use Economics
COMPELLING L AND USE ECONOMICS $10 $0 $0 $0 $30 $0 O N LY 2 5 % O F L A N D I S G E N E R AT I N G RENT AND THEREFORE... ABR ABR $ 12 $ 4 BUILDING SF SITE SF SITE CENTERS » CITI 2019 GLOBAL PROPERTY CEO CONFERENCE 20
Slide 21: Shopping Centers Are Inefficient Users of Land
SHOPPING CENTERS ARE INEFFICIENT USERS OF L AND $18 M U LT I - FA M I LY $14 $15 SUBURBAN OFFICE $9 $6 INDUSTRIAL $5 ABR ABR $ 12 $ 4 BUILDING SF SITE SF SITE CENTERS » CITI 2019 GLOBAL PROPERTY CEO CONFERENCE 21
Slide 22: Add Density: Fairfax Towne Center
ADD DENSIT Y » REDEVELOPMENT FA I R FA X T O W N E CENTER FA I R FA X , VA MULTI-FAMILY OPPORTUNIT Y ON UNUSED L AND WITH NO DILUTION $ 148k AV G H H I N C O M E 0.5 FA R SITE CENTERS » CITI 2019 GLOBAL PROPERTY CEO CONFERENCE 22
Slide 23: Add Density: Shoppers World
ADD DENSIT Y » REDEVELOPMENT SHOPPERS WORLD FRAMINGHAM, MA SIGNIFICANT OPPORTUNIT Y FOR DENSIT Y WITH NO DILUTION $ 104k AV G H H I N C O M E 92k S Q U A R E F O OTAG E R E C A P T U R E D SITE CENTERS » CITI 2019 GLOBAL PROPERTY CEO CONFERENCE 23
Slide 24: Add Density: Duvall Village
ADD DENSIT Y » REDEVELOPMENT D U VA L L VILL AG E BOWIE, MD OPPORTUNIT Y TO MASTERPL AN SITE FOR CONVENIENCE RETAIL AND TOWNHOMES $ 121k AV G H H I N C O M E $ 220k PROPERTY NOI SITE CENTERS » CITI 2019 GLOBAL PROPERTY CEO CONFERENCE 24
Slide 25: Add Density » Redevelopment
ADD DENSIT Y » REDEVELOPMENT SITE CENTERS » CITI 2019 GLOBAL PROPERTY CEO CONFERENCE 25
Slide 26: Add Density » Redevelopment
ADD DENSIT Y » REDEVELOPMENT SITE CENTERS » CITI 2019 GLOBAL PROPERTY CEO CONFERENCE 26
Slide 27: Add Density: Freehold Marketplace
ADD DENSIT Y » REDEVELOPMENT FREEHOLD MARKE TPL ACE FRE E H O LD, NJ WALMART-ANCHORED CENTER WITH 100K SF EXPANSION OPPORTUNIT Y $ 109k AV G H H I N C O M E 5.6x E S T. N O I I N C R E A S E SITE CENTERS » CITI 2019 GLOBAL PROPERTY CEO CONFERENCE 27
Slide 28: Acquisitions
ATTRACT ADD AND ADAPT OPPORTUNISTIC INVESTING LEASING REDE VELOPMENT ACQUISITIONS
Slide 29: Opportunistic Investing
High Cap Rate MARKET DISLIKES • Tier II Markets • Large Assets • Power Centers • Short Duration • At Risk Tenancies Opportunistic Investing Low Cap Rate MARKET LIKES • Coastal • Grocer y Centers • Small Assets • Lease Term • Credit Quality SITE CENTERS » CITI 2019 GLOBAL PROPERTY CEO CONFERENCE 29
Slide 30: Opportunistic Investing: Melbourne Shopping Center
O PP O RTUNISTIC INVESTIN G » ACQUISITIO NS MELBOURNE SHOPPING CENTER MELBOURNE, FL PUBLIX-ANCHORED CENTER WITH SIGNIFICANT VACANCY AND REDEVELOPMENT POTENTIAL $ 11.4m PURCHASE PRICE $ 54 PER FOOT PRICE 72% O C C U PA N C Y ( A S O F 3 Q 1 8 ) SITE CENTERS » CITI 2019 GLOBAL PROPERTY CEO CONFERENCE
Slide 31: Opportunistic Investing: Sharon Greens
O PP O RTUNISTIC INVESTIN G » ACQUISITIO NS SHARON GREENS CUMMING, GA KROGER-ANCHORED CENTER IN AFFLUENT ATL ANTA SUBURB WITH SHOP LEASING OPPORTUNIT Y $ 146k AV G H H I N C O M E 4.1% 5-YEAR NOI CAGR SITE CENTERS » CITI 2019 GLOBAL PROPERTY CEO CONFERENCE 31
Slide 32: Appendix
Appendix SITE CENTERS » CITI 2019 GLOBAL PROPERTY CEO CONFERENCE 32
Slide 33: Non-GAAP Financial Measures - Definitions
NON - GA AP FINANCIAL MEASURES - DEFINITIONS 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 Operating FFO (“OFFO”) provide add
Slide 34: Reconciliation of Net Income to FFO and Operating FFO Estimate
R E C O N C I L I AT I O N O F 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 E S T I M AT E Per Share - Diluted 2019E Net income attributable to common shareholders $0.29 - $0.29 Depreciation and amortization of real estate 0.7
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