SITE Centers Corp. · NYSE:SITC
SITE Centers — 2020 Citi Global Property CEO Conference
44 slides from SITE Centers's conference presentation, March 2020
Slide 1: SITE Centers 2020 Citi Global Property CEO Conference
MARCH 2-4, 2020 SITE CENTERS 2020 CITI GLOBAL PROPERT Y CEO CONFERENCE 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: 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 O P E R AT I N G AVG O FF O/N AV P L AT F O R M GROWTH COMPELLING REDE VELOPMENT PIPELINE OPPORTUNISTIC INVESTING BAL ANCE SHEET STRENGTH RECOGNIZED 2.75% ESG LEADER AVG SSN O I GROW TH EXCL REDE VELOPMENT SITE CENTER
Slide 4: 5-Year Estimated NAV Growth
5 -Y E A R E S T I M AT E D N AV G R O W T H SITE CENTERS IS A LEASING STORY 2 14% ADD REDEVELOPMENT GOAL: $75M OF ANNUAL SPENDING U P D AT E : T H E C O L L E C T I O N AT B R A N D O N B LV D ( $ 2 8 M ) 4 Q 2 0 E S T . S TA B I L I Z AT I O N 1 65% 1 0 0 0 VA N N ES S ($5 M ) 2 Q 2 0 E S T . S TA
Slide 5: 2020 Outlook
2020 OUTLOOK $ 1.10-1.14 2.0-3.0% OFFO SSNOI INCLUDING PER SHARE REDE VELOPMENT $ 16-20m 10-13m $ $12-18m JV FEES INTEREST INCOME RVI FEE INCOME1 Note: As of 4Q2019 1. Excludes disposition fees SITE CENTERS 2020 CITI GLOBAL PROPERT Y CEO CONFERENCE 5
Slide 6: Company-Wide Commitment to ESG Leadership
CO M PA N Y-W I D E CO M M I T M E N T TO E S G L E A D E R S H I P SIT E C E N T E RS IS CO M M IT T E D TO T R A NS PA R E N C Y A R O U N D O U R E N V I R O N M E N TA L , S O C I A L , A N D G OV E R N A N C E G O A L S G R E E N S TA R R AT E D Community People Corporate CO R P O R AT E C H A
Slide 7: Leasing
1 AT T R AC T AND ADAPT 2ADD 3 OPPORTUNISTIC INVESTING R ED E V ELO PM EN T ACQUISITIONS LEASING SITE CENTERS 2020 CITI GLOBAL PROPERT Y CEO CONFERENCE 7
Slide 8: Higher Quality and Focused Wholly-Owned Portfolio
H I G H E R Q U A L I T Y A N D F O C U S E D W H O L LY - O W N E D P O R T F O L I O 160 143 69 W H O L LY- O W N E D W H O L LY- O W N E D W H O L LY- O W N E D PROPERTIES AS OF PROPERTIES AS OF PROPERTIES AS OF MAR. 3, 2017 S EP T. 3 0, 20 17 DEC. 31, 2019 INCREASE OF +20% AVG H H IN CO M E, A B
Slide 9: Top Quartile Demographics
TOP QUARTILE DEMOGR APHICS 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 AND 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 . S . OPEN
Slide 10: Shopping Centers Offer Discount Retailers Taking Market Share
S H O P P I N G C E N T E R S O F F E R D I S C O U N T… S I T E C E N T E R S ’ D I S C O U N T R E TA I L E R S A R E TA K I N G M A R K E T S H A R E TJ X , R O S S , A N D B U R L I N G TO N H AV E G R O W N T H E I R S A L E S S I N C E 2 0 1 0 B Y A N A M O U N T E Q U A L TO M A C Y ’ S TO TA
Slide 11: ...And Convenience Which Are Driving Sales Growth
... AND CONVENIENCE WHICH ARE DRIVING SALES GROW TH SHOPPING CENTER SEC TOR FORMAT ADVANTAG ES E VIDENT IN GAP DIVISION CO M PAR AB LE SALES AVG S A L E S P S F 1 PSF DESPITE DIFFERENT AVG S A L E S P S F 1 F O OT P R I N T S A N D F O R M AT S $ 426 +14 . 8% $417 +34.2% SINCE 2010 SINCE 2010 B UT O
Slide 12: Portfolio Concentrated in Major MSAs
S I T E C E N T E R S ’ P O R T F O L I O I S C O N C E N T R AT E D I N M A J O R M S A s T O P 12 M A R K E T S A C C O U N T F O R 7 2 % O F P R O R ATA A B R B O S TO N 6 % N E W YO R K 8 % 7% CHICAGO 7% COLUMBUS DENVER 6% LOS ANGELES 4% C H A R L OT T E 6 % PHOENIX 4% AT L A N TA 9 % S A N A N
Slide 13: Dominant Assets Account for Majority of Value
D O M I N A N T A S S E T S AC 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 14: Compelling Re-Leasing Economics
COMPELLING RE-LEASING 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 ESTAT 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 FIE
Slide 15: Robust and Diverse Demand for Anchor Opportunities
ROBUST AND DIVERSE DEMAND FOR ANCHOR OPPORTUNITIES ANCHOR OPENINGS TO PROVIDE M U LT I - Y E A R TA I LW I N D T O N O I G R O W T H ANCHOR LE ASE PROG RESS 38 OF 60 INVESTOR DAY ANCHOR 60 OPP ORTUNITIES E XECUTED WITH 27 DIFFERENT RE TAIL BANNERS 50 • +47% lease spread on executed deals • Over half
Slide 16: Existing Portfolio Vacancies Provide Opportunity
E X I S T I N G P O R T F O L I O VAC A N C I E S P R OV I D E O P P O R T U N I T Y SIGNIFICANT OPPORTUNITY TO DRIVE SHOP REVENUE $30 $20 R EN T ( MI L L I ON S) 94.0% TL AE AR GS EEDT R A T E $10 88.0% LOEFA 4S QE D1 9 A S $0 ANCHOR SHOP 83.5% CA SO MOMF E4NQC1E9D EXECUTED OPPORTUNITY SITE CENTERS
Slide 17: Steady Shop Leasing Performance
S T E A DY S H O P L E A SI N G P E R F O R M A N C E STRONG SHOP LEASING VOLUME AND ECONOMICS D R I V E N B Y H E A LT H Y M I X O F S E R V I C E T E N A N T S 13% OT H E R 350 $29.00 $28.50 300 $28.00 87% N EW L E AS E A BR PS F VOL U ME (K S F) $27.50 250 $27.00 OF NEW DEALS W I T H S ER V I C E
Slide 18: Chapel Hills - Tactical Redevelopment and Market Share Gains
C H A P E L H I L L S - TA C T I C A L R E D E V E LO P M E N T A N D M A R K E T S H A R E GAINS DRIVING NOI GROW TH C H A PE L H I L L S COLORADO SPRINGS, CO 787 $ 340% PR O JECTED 9% PO PULATIO N G R OWTH IN NEX T 5 YEA R S S A L ES PER 6.1% MTM ES T. GR O U ND S Q U A R E F O OT L EA S E R EC A
Slide 19: Chapel Hills - Customer Data Generates Leasing Opportunities
C H A P E L H I L L S - CUS TO M ER DATA G EN ER AT ES L E A SIN G O PP O RT U N ITIES ACTUAL TRADE AREA CHA PEL HIL L S 370k $101k P O P UL AT I O N AVG H H I CHA PEL HIL L S M A L L 140k $ 97k P O P UL AT I O N AVG H H I CHAPEL HILLS S H O P P I N G C E N T E R L O C AT I O N SH O PPIN G CENTER CU
Slide 20: Edgewater Towne Center - Strategic Re-Tenanting Drives NOI Growth
E D G E W AT E R T O W N E C E N T E R - S T R AT E G I C R E -T E N A N T I N G D R I V E S NOI GROW TH E D G E WAT E R TOW N E C E N T E R EDGEWATER, NJ M IX ED- USE CENTER ; R ESIDENTIA L OV ER R ETA IL 7.0% 27% 1,206 $ 5 - YE A R E ST. N O I CAG R GR OSS R ETU R N ON 5 -M IL E TRA D E A REA R E-
Slide 21: Paradise Village Gateway - Improving Merchandise Mix
PA R A D I S E V I L L A G E G AT E WAY - I M P R O V I N G M E R C H A N D I S E M I X A N D GROWING NOI PA R A D I S E VI L L AG E 70% G AT E WAY PHOENIX, AZ MA RK- TO- M AR KET OPP OR TU NITY RECAPTURING A GROUND LEASE TO UNLOCK EMBEDDED GROW TH AND DRIVE TR AFFIC 13% YIEL D + 4.0% 5 - YE A R E S
Slide 22: Redevelopment
1 AT T R AC T AND ADAPT 2ADD 3 OPPORTUNISTIC INVESTING LEASING ACQUISITIONS R ED E V ELO PM EN T SITE CENTERS 2020 CITI GLOBAL PROPERT Y CEO CONFERENCE 22
Slide 23: 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 2020 CITI GLOBAL PROPERT Y CEO CONFERENCE 23
Slide 24: Shopping Centers Are Inefficient Users of Land
SHOPPING CENTERS ARE INEFFICIENT USERS OF LAND $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 2020 CITI GLOBAL PROPERT Y CEO CONFERENCE 24
Slide 25: Why Retail Rents Are Actually Lower Than Industrial Rents
W H Y R E TA I L R E N T S A R E AC T UA L LY L OW E R T H A N I N D U S T R I A L R E N T S 0.27 EAST HANOVER PLAZA 8.365 ACRES FAR 2 NEW JERSEY ADJACENT INDUSTRIAL PROPERTY 5.510 ACRES 0.46 FAR 2 K E Y TA K E AWAY Shopping centers have lower rent per square foot than industrial after adjusting for
Slide 26: Steady Pipeline of Redevelopment Projects
S TE A DY PIPE LIN E O F R E D E V E LO PM E NT PROJ EC TS $ 6 3 M O F R E D E V E L O P M E N T U N D E R WAY AT P R O J E C T E D 8 % Y I E L D WEST BAY PLAZA ($39M) - PHASE II UNDERWAY THE COLLECTION AT BRANDON BLVD ($28M) REDEVELOPMENT OF KMART AND MARC’S BOXES REDEVELOPMENT OF KMART BOX KEY TEN
Slide 27: Tactical Redevelopment Opportunities
TA C T I C A L R E D E V E L O P M E N T O P P O R T U N I T I E S $ 6 3 M PI P E LI N E O F O U T PA R C E L A N D E X PA NSI O N O P P O R T U N I T I E S AT P R O J E C T E D 1 0 % Y I E L D PRO PE R T Y MSA SPE N D ($ M) ES T. D E LIV E RY G uilfo rd C o mm o ns Har t fo rd $3 .7 20 19 J ohns Cr
Slide 28: Future Densification Opportunities Provide Optionality
F U T U R E D E N S I F I C AT I O N O P P O R T U N I T I E S P R O V I D E O P T I O N A L I T Y D SOL DUVALL VILLAGE SHOPPERS WORLD (WASHINGTON, DC) (BOSTON) AVG HHI $121K GSA TAP 78 AVG HHI $104K GSA TAP 38 FAIRFAX TOWNE CENTER FREEHOLD MARKETPLACE PERIMETER POINTE (WASHINGTON, DC) (NEW YORK) (A
Slide 29: Acquisitions
1 AT T R AC T AND ADAPT 2ADD 3 OPPORTUNISTIC INVESTING LEASING R ED E V ELO PM EN T ACQUISITIONS SITE CENTERS 2020 CITI GLOBAL PROPERT Y CEO CONFERENCE 29
Slide 30: 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 2020 CITI GLOBAL PROPERT Y CEO CONFERENCE 30
Slide 31: Key Acquisition Attributes
K E Y A C Q U I S I T I O N AT T R I B U T E S TA R G E T E D A C Q U I S I T I O N S A R E F I LT E R E D F O R FA C T O R S T H AT D R I V E G R O W T H A N D C R E AT E VA L U E Footfall Encumbrances Scarcity O CCU PA N C Y RENT GROW TH REDE VELOPMENT KEY EXAMPLES KEY EXAMPLES KEY EXAMPLE • MARKE
Slide 32: Vintage Plaza, Austin, Texas
V I N TA G E P L A Z A A U S T I N , T E X A S Investment Highlights Community-anchored strip center with major daytime traffic drivers Data supports a unique trade area - dispersed and high income with traffic generated by adjacent offices and Dell’s nearby world headquarters Total nearby office co
Slide 33: The Blocks, Portland, Oregon
T H E B L O C K S P O R T L A N D, O R E G O N Investment Highlights Collection of retail condo units in Portland’s rapidly growing Pearl District Local and national tenants. Strong daytime traffic is complimented by tourism, drawing 10% of consumers from Seattle, San Francisco, and Los Angeles Rece
Slide 34: Southtown Center, Tampa, Florida
S O U T H T O W N C E N T E R TA M PA , F LO R I D A Investment Highlights Shadow grocery-anchored community center at a prominent signalized intersection South Tampa is a dense, infill market with an extremely affluent customer base and strong population growth Strong performing Publix (~$50M) and
Slide 35: Leasing Activity to Drive Substantial Value Creation at 4Q18 Acquisition Properties
L E A S I N G A C T I V I T Y T O D R I V E S U B S TA N T I A L VA L U E C R E AT I O N AT 4 Q18 ACQUISITIO N PRO PE RTIES MELBOURNE MARKE T SQUARE SHOPPING CENTER SHARON GREENS DOUGL ASVILLE, GA MELBOURNE, FL CUMMING, GA 9.6% 16.2% 5.4% 2 0 1 9 - 2 0 2 3 E S T. N O I C AGR 2019-2023 E S T. N OI C
Slide 36: Balance Sheet
Balance Sheet SITE CENTERS 2020 CITI GLOBAL PROPERT Y CEO CONFERENCE 36
Slide 37: Significant Balance Sheet Progress
SIGNIFICANT BALANCE SHEET PROGRESS $1,200 B AL AN C E S H E E T P O S I T I O N E D $1,000 FOR G ROWT H Debt / Adjusted EBITDA now 5.5x compared to $800 6.5x in 3Q18 Minimal near-term refinancing and interest rate $600 risk with just $36M of pro rata consolidated debt maturing through 2022 $400 $965
Slide 38: Minimal Near-Term Refinancing Risk
M I N I M A L N E A R-TE R M R E FI N A N CI N G RIS K N O M AT E R I A L C O N S O L I D AT E D M AT U R I T I E S U N T I L 2 0 2 3 WA % D E B T M AT U R I N G 2 0 2 0 - 2 0 2 2 INTEREST W E I G H T E D AV E R A G E D E B T M A T U R I T Y R AT E KIM 3.7% AKR REG 3.5% R PA I A KR 4.0% WRI RPAI 3.5
Slide 39: Appendix
Appendix SITE CENTERS 2020 CITI GLOBAL PROPERT Y CEO CONFERENCE 39
Slide 40: 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 41: Non-GAAP Financial Measures - Definitions (cont.)
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 ( C O N T. ) 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 expendit
Slide 42: 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 2020E Net income attributable to common shareholders $0.24 - $0.29 Depreciation and amortization of real estate 0.7
Slide 43: Reconciliation of Debt / Adjusted EBITDA
R E C O N C I L I AT I O N O F D E B T / A D J U S T E D E B I T D A 4Q19 3Q18 CONSOLIDATED Net income to SITE $24,002 ($8,931) Interest expense 20,748 26,962 Income tax, net (168) 238 Depreciation and amortization 41,687 49,629 Adjustments for non-controlling interests (184) (171) EBITDA – current
Slide 44: Reconciliation of Debt / Adjusted EBITDA (cont.)
R E C O N C I L I AT I O N O F D E B T / A D J U S T E D E B I T D A ( C O N T. ) 4Q19 3Q18 Consolidated debt 1,847,297 2,385,002 Partner share of consolidated debt (9,431) (9,647) Loan costs, net 9,038 12,749 Face value adjustments (983) (1,794) Cash and restricted cash (18,682) (12,719) Net effect
SITE Centers — 2020 Citi Global Property CEO Conference on 6ix