SITE Centers Corp. · NYSE:SITC
SITE Centers — Citi Global Property CEO Conference 2024
42 slides from SITE Centers's conference presentation, March 2024
Slide 1: Citi Global Property CEO Conference
SITE CENTERS CITI GLOBAL PROPERTY CEO CONFERENCE MARCH 2024
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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 the Company’s
Slide 3: Transaction Overview: Unlocking a Unique Scalable Investment Opportunity
TRANSACTION OVERVIEW Unlocking a Unique Scalable Investment Opportunity Focused Growth Vehicle Intended Maximize and Realize NAV Through to Scale Fragmented Property Type Operations and Asset Sales • Spin-off unlocks the first and only public REIT exclusively focused • SITE Centers intends to maximi
Slide 4: Transaction Overview: Key Operating Metrics
TRANSACTION OVERVIEW: KEY OPERATING METRICS The Spin separates the Company’s Convenience strategy from SITE Centers, providing investors two distinct growth and investment strategies. 4Q2023 Property Count (including JVs) 65 73 Estimated Property NOI Projection ($m)1 $73.9 - $77.9 $260.7 - $269.8 AB
Slide 5: Transaction Overview: Estimated Timeline & Cash Flows
TRANSACTION OVERVIEW: ESTIMATED TIMELINE & CASH FLOWS Public Announcement $0.16 Per Share Spin Special Dividend Complete Form 10 Submission & Review. Pre-Spin Reinvestment Period. OCT NOV-DEC JAN-SEP OCT 2023 2024 2024 SOURCES USES (1Q24 – 3Q24) (1Q24 – 3Q24) Mortgage Proceeds1 $1,100m Unsecured Not
Slide 6: Transaction Overview: Pro Forma Balance Sheets
TRANSACTION OVERVIEW: PRO FORMA BALANCE SHEETS 4Q2023 PRO FORMA SITE Centers SITE Centers Curbline SITC Preferred Stock - - $300m Pro forma for the Spin, SITE Centers is expected to Cash & Restricted Cash $569m $0m $300m have no unsecured debt outstanding and CURB is Total Assets $569m $0m $600m exp
Slide 7: Curbline Properties (CURB)
CURBLINE PROPERTIES (CURB) 7
Slide 8: Components of Growth: A Uniquely Positioned Company
CURBLINE PROPERTIES: A UNIQUELY POSITIONED COMPANY Unmatched Balance Sheet Capacity Limited Operating First Mover Advantage in Capital Needs a Fragmented Market COMPONENTS OF GROWTH Innovative Scalable Investment Management Team Opportunity Set Highly Diversified Portfolio Attractive Leasing by Tena
Slide 9: Curbline Properties: Portfolio Overview
CURBLINE PROPERTIES: PORTFOLIO OVERVIEW The Curbline Portfolio is a 2m SF portfolio of unanchored Convenience real estate concentrated in the top U.S. sub-markets screened and curated based on demographics, credit profile, mark-to-market and NOI growth 2.2m $35.84 96.7% SQUARE FEET RENT PSF LEASED R
Slide 10: Differentiated from Public Peers
CURBLINE PROPERTIES: DIFFERENTIATED FROM PUBLIC PEERS SHOPS AS A % OF ABR AVERAGE ASSET SIZE (SF) TOP 10 TENANT CONCENTRATION 92% 35k sf 14.0% 100% 300 35% 90% 30% 250 80% 25% 70% 200 60% 20% 50% 150 15% 40% 100 30% 10% 20% 50 5% 10% 0% 0 0% CURB ROIC REG PECO KRG FRT BRX KIM UE CURB ROIC PECO REG K
Slide 11: Diversified Geographic Exposure
CURBLINE PROPERTIES: DIVERSIFIED GEOGRAPHIC EXPOSURE The Curbline portfolio is well diversified across the largest MSAs and affluent sub-markets in the United States benefiting from strong population and employment growth along with significant barriers to entry THE CURBLINE PORTFOLIO % OF ABR PER R
Slide 12: Key Convenience Sector Attributes
CURBLINE PROPERTIES: KEY CONVENIENCE SECTOR ATTRIBUTES SCALABLE Convenience assets are among the most liquid retail real ATTRACTIVE ECONOMICS estate sector with $8b of properties trading on an annual basis and over 68,000 properties nationwide providing an Convenience properties are laid out as a ub
Slide 13: Convenience: Excellent Access, Visibility and Dedicated Parking
CURBLINE PROPERTIES: CONVENIENCE: EXCELLENT ACCESS, VISIBILITY AND DEDICATED PARKING Real estate located on the curbline caters to daily, largely necessity-based convenience trips from the growing suburban population of the United States. Convenience assets offer excellent access and visibility, ded
Slide 14: Convenience: Data Case Study - Shoppes of Crabapple
CURBLINE PROPERTIES: CONVENIENCE: DATA CASE STUDY - SHOPPES OF CRABAPPLE ALPHARETTA , GEORGIA DEMOGR APHIC S $ 175k 152k DRIVE-THRU AVG. HHI POPULATION AC TUAL TR ADE ARE A CRABAPPLE RD 3 MILE 17k vpd ARNOLD MILL RD 22k vpd PRIMARY SECONDARY 53% 5% 5% 7% Note: Avg. HHI weighted based on Actual Trade
Slide 15: Convenience: Data Case Study - What Our Data Proves
CURBLINE PROPERTIES: CONVENIENCE: DATA CASE STUDY - SHOPPES OF CRABAPPLE ALPHARETTA , GEORGIA WHAT OUR DATA PROVES Shoppes of Crabapple is positioned to attract customer demand with superior access, visibility and parking. In fact, Convenience centers like Shoppes of Crabapple achieve 2m 15.7 127k 3
Slide 16: Convenience: Significant Depth and Breadth of Demand for Space
CURBLINE PROPERTIES: CONVENIENCE: SIGNIFICANT DEPTH AND BREADTH OF DEMAND FOR SPACE Curbline’s access, visibility and standardized unit size attracts a diverse group of primarily national credit tenants, with significant volume from public QSR operators, banks, medical and other service users NEW LE
Slide 17: Convenience: National Convenience Tenants Growing Store Footprints
CURBLINE PROPERTIES: CONVENIENCE: NATIONAL CONVENIENCE TENANTS GROWING STORE FOOTPRINTS There are a significant number of national convenience tenants growing store fleets, introducing new concepts and expanding into new markets providing a wide mix of potential leasing opportunities ANNOUNCED S TOR
Slide 18: Convenience: Supply Demand Imbalance
CURBLINE PROPERTIES: CONVENIENCE: SUPPLY DEMAND IMBALANCE The CURB portfolio leased rate has averaged 96.4% over the last 7 years highlighting the portfolio and property type’s supply and demand imbalance CURB PORTFOLIO LE A SED R ATE VS . PEER SHOP LE A SED R ATE 100% 96.4% 98% 96% 7 YEAR AVG. 94%
Slide 19: Convenience: Traffic, Access & Demand Drive Compelling Lease Economics
CURBLINE PROPERTIES: CONVENIENCE: TRAFFIC, ACCESS & DEMAND DRIVE COMPELLING LEASE ECONOMICS CURB portfolio has generated compelling leasing economics in excess of the open-air retail industry driven by Convenience property type tailwinds and the strength of Curbline’s sub-markets. Key metrics includ
Slide 20: Scalable Investment: Significant Total Addressable Market
CURBLINE PROPERTIES: SCALABLE INVESTMENT: SIGNIFICANT TOTAL ADDRESSABLE MARKET Convenience Assets Represent Sizable Portion of Total U.S. Retail GLA • Convenience real estate accounts for 60% of total shopping centers by count and almost 13% by GLA • CURB’s portfolio represents just 0.2% of total ad
Slide 21: Scalable Investment: Elevated Transaction Volume & Opportunity Set
CURBLINE PROPERTIES: SCALABLE INVESTMENT: ELEVATED TRANSACTION VOLUME & OPPORTUNITY SET Over $41B of convenience properties were sold in 2019 - 2023 providing a broad investment opportunity set 2019 -202 3 CUMUL ATIVE TR ANSAC TION VOLUME ($) $45 $40 $41 $40 $36 $35 $31 $29 $30 $ BILLION $25 $20 $15
Slide 22: Scalable Investment: Limited Public Market Competition
CURBLINE PROPERTIES: SCALABLE INVESTMENT: LIMITED PUBLIC MARKET COMPETITION 92% of Convenience assets were acquired by Transaction volume is concentrated in the largest private buyers providing a unique opportunity for MSAs with compelling sub-market demographics a public vehicle to scale and differ
Slide 23: Scalable Investment: Curbline Growth Opportunity
CURBLINE PROPERTIES: SCALABLE INVESTMENT: CURBLINE GROWTH OPPORTUNITY CURB’s projected balance sheet -- no debt, $300m of cash on hand, a $300m preferred investment in SITE Centers – and retained cash flow expected to drive significant capacity to capitalize on opportunities and scale CURBLINE INVES
Slide 24: Attractive Economics: Renewals Focus Reduces Downtime While Capturing MTM
CURBLINE PROPERTIES: ATTRACTIVE ECONOMICS: RENEWALS FOCUS REDUCES DOWNTIME WHILE CAPTURING MTM The unanchored business has attractive economic returns driven by the sector’s standard lease structures, high retention rates and limited CapEx requirements • Lease structures drive above-average occupanc
Slide 25: Attractive Economics: Standardized Site Plan and Unit Sizes
CURBLINE PROPERTIES: ATTRACTIVE ECONOMICS: STANDARDIZED SITE PLAN AND UNIT SIZES The standardized site plan and unit sizes of unanchored properties require limited operating capital expenditures to backfill vacancies (7% average as % of NOI from 2020 to 2024) generating substantial free cash flow on
Slide 26: Attractive Economics: Diversified National Tenant Exposure Reduces Turnover
CURBLINE PROPERTIES: ATTRACTIVE ECONOMICS: DIVERSIFIED NATIONAL TENANT EXPOSURE REDUCES TURNOVER RANK TENANT % OF GLA % OF ABR The CURB portfolio is populated by a well-diversified 1 STARBUCKS 1.5% 2.3% roster of tenants concentrated in national, credit 2 DARDEN 2.1% 1.8% 3 VERIZON 1.0% 1.3% tenants
Slide 27: SITE Centers (SITC)
SITE CENTERS (SITC) 27
Slide 28: Pro Forma SITE Centers: Curated Shopping Center Portfolio
PRO FORMA SITE CENTERS: C U R AT E D S H O P P I N G C E N T E R P O R T F O L I O 114k 1 OF S H O P P I N G C EN T ER S N AT I O N A L LY 133 53 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 AVG H HI P O P U L AT I O N 88th 75th 58 PERCENTILE PERCENTILE $108k 110k SI
Slide 29: Pro Forma SITE Centers: Portfolio Overview
PRO FORMA SITE CENTERS: PORTFOLIO OVERVIEW SITE CENTERS’ CUR ATED PORTFOLIO IS G EOG R APHIC ALLY DIVERSIFIED WITH SIG NIFIC ANT DISCOUNT AND G ROCER E XPOSURE GROCERY-ANCHORED GEOGRAPHIC NATIONAL TENANT ASSETS ACCOUNT FOR ALMOST DIVERSIFICATION CONCENTRATION 70% OF SITE PORTFOLIO 6% 11% 3% 3% 27% 3
Slide 30: Pro Forma SITE Centers: Concentrated in High Income Growth Markets
PRO FORMA SITE CENTERS: C O N C E N T R AT E D I N H I G H I N C O M E G R O W T H M A R K E T S CONCENTR ATED IN AFFLUENT SUBURBAN COMMUNITIES IN TOP U.S. G ROW TH MARKE TS $ 108k AVG H HI 9% CHICAGO P R I N C E TO N / T R E N TO N 7 % 110k 5% COLUMBUS DENVER 7% P O P U L AT I O N LOS ANGELES 5% C
Slide 31: Pro Forma SITE Centers: SNO Pipeline Expected to Drive Future NOI Growth
PRO FORMA SITE CENTERS: SN O PIPELINE E XPEC TED TO D RIV E FUTURE N OI G ROW TH $11M SNO pipeline represents 4.2% of ABR • National tenants represent 93% of the SNO pipeline as of 4Q23 (37% publicly traded) ® SIT E CE N T E RS L E AS E D A N D CO M M E N CE D R AT E 2 02 4 + S N O CO M M E N CE M E
Slide 32: Pro Forma SITE Centers: Select Asset Overview
PRO FORMA SITE CENTERS: SELECT ASSET OVERVIEW CUR ATED PORTFOLIO OF ASSE TS CONCENTR ATED IN TOP SUB MARKE TS CARILLON EAST HANOVER FAIRFAX NASSAU PARK PROMENADE WHOLE FOODS PLACE PLAZA TOWNE CENTER PAVILION AT BRENTWOOD AT BAY PLACE NAPLES NEW YORK WASHINGTON, DC PRINCETON ST. LOUIS SAN FRANCISCO M
Slide 33: Pro Forma SITE Centers: Elevated Anchor Demand Driving Growth
PRO FORMA SITE CENTERS: E L E VAT E D A N C H O R D E M A N D D R I V I N G G R O W T H SITE CENTERS HAS SIG NED 89 ANCHORS, INCLUDING 49 UNIQUE CONCEP TS, SINCE 1Q2020 CONCENTR ATED IN PUB LIC , NATIONAL CREDIT TENANTS O T H E R 80% N E W C O N C E P T 20% New Concept Anchor Leases by ABR O T H E R
Slide 34: Pro Forma SITE Centers: Leverage to Decline with Dispositions
PRO FORMA SITE CENTERS: LE V ER AG E TO D ECLINE WITH DISP OSITIO NS C O N S O L I DAT E D M AT U R I T Y S C H E D U L E ($ M ) 1 Debt/EBITDA 4.2x as of 4Q23, SITE’s $1,600 leverage expected to continue to decline ahead of the spin due to dispositions and $1,400 debt repayments $1,200 • Repurchased
Slide 35: 2024 YTD Disposition Overview
2024 Y T D D ISP OSITI O N OV ERV IE W SITC Management has a strong track record of value realization with over $7B (at 100%) of assets sold in 2017-2023 in addition to: • Monetization of all 50 Retail Value Inc. assets for $2.0B including 12 properties in Puerto Rico • Strategic unwind of JV portfo
Slide 36: Appendix
APPENDIX 36
Slide 37: Curbline Property List
CURBLINE PROPERTY LIST PROPERTY MSA CITY STATE GLA ABR PSF Chandler Center Phoenix-Mesa-Scottsdale, AZ Chandler AZ 7 $43.58 Shops at Power and Baseline Phoenix-Mesa-Scottsdale, AZ Mesa AZ 4 $56.22 Deer Valley Plaza Phoenix-Mesa-Scottsdale, AZ Phoenix AZ 38 $29.98 Paradise Village Plaza Phoenix-Mesa-
Slide 38: Curbline Property List
CURBLINE PROPERTY LIST PROPERTY MSA CITY STATE GLA ABR PSF Shops at Lake Brandon Tampa-St. Petersburg-Clearwater, FL Brandon FL 12 $40.50 The Shoppes of Boot Ranch Tampa-St. Petersburg-Clearwater, FL Palm Harbor FL 52 $29.14 Southtown Center Tampa-St. Petersburg-Clearwater, FL Tampa FL 44 $39.35 Est
Slide 39: Curbline Property List
CURBLINE PROPERTY LIST PROPERTY MSA CITY STATE GLA ABR PSF Emmet Street North Charlottesville, VA Charlottesville VA 2 $78.55 Emmet Street Station Charlottesville, VA Charlottesville VA 11 $54.50 Towne Crossing Shops Richmond, VA Midlothian VA 7 $39.79 Boulevard Marketplace Washington-Arlington-Alex
Slide 40: Non-GAAP Financial Measures and Other Operational Metrics - Definitions
NON-GAAP FINANCIAL MEASURES AND OTHER OPERATIONAL METRICS - DEFINITIONS NOI and SSNOI The Company also uses NOI, a non-GAAP financial measure, as a supplemental performance measure. NOI is calculated as property revenues less property-related expenses. The Company believes NOI provides useful inform
Slide 41: Non-GAAP Financial Measures and Other Operational Metrics - Definitions (Continued)
NON-GAAP FINANCIAL MEASURES AND OTHER OPERATIONAL METRICS - DEFINITIONS ( C O N T I N U E D ) Cash Lease Spreads Cash Leasing Spreads are calculated by comparing the prior tenant’s annual base rent in the final year of the prior lease to the executed tenant’s annual base rent in the first year of th
Slide 42: Reconciliation: Debt/Adjusted EBITDA
RECONCILIATION: DEBT/ADJUSTED EBITDA TTM December 31, 2023 TTM December 31, 2023 Consolidated Pro Rata Including JVs Consolidated Net Income to Site $265,703 EBTIDAre 340,838 Interest Expense 82,002 Adjusted EBITDA 353,822 Tax Expense 2,045 Depreciation and Amortization 212,460 Consolidated Debt - A
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