Site Centers Corp. · NYSE:SITC
Site Centers — Q1 2024 Earnings Presentation
28 slides from Site Centers's earnings presentation, Apr 30, 2024
Slide 1: 1Q24 Earnings Conference Call
1Q24 EARNINGS CONFERENCE CALL SITE CENTERS | APRIL 30, 2024
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 24 K E Y TA K E AWAY S 4 1 Q 24 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 8 CURBLINE PROPERTIES PORTFOLIO 9 APPENDIX 21
Slide 4: 1Q24 Key Takeaways
1 Q 24 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 1 W HOL LY-OW NE D P R O P E R TI E S W I TH AVE R AG E H O U S EHO LD INCO ME O F $111K (90 TH PE RCE NTILE ) 1 $189M OF TOTAL TRANSACTION ACTIVITY YTD 1 2 SPIN-OFF OF CONVENIENCE PORTFOL
Slide 5: 1Q24 Results Summary
1 Q 24 R E S U LT S S U M M A R Y ($0.13) 0.28 $ 1Q24 LOSS 1Q24 OFFO PER SHARE PER SHARE 94.2% 1.5% 11.5% LEASED 1Q24 SSNOI 1Q24 NEW CASH 91.6% COMMENCED G ROW TH LEASE SPREAD (PRO - R ATA) 8.2% 1Q24 BLENDED CASH LE ASE SPRE AD SITE CENTERS 1Q24 CONFERENCE C ALL 5
Slide 6: Operations Overview: SNO Commencement Schedule
1 Q 24 O P E R AT I O N S O V E R V I E W SN O CO M M E N CE M E NT SCH E D U L E ( A B R) 15 2 9. 0 % T T M n e w c a s h l e a s i n g s p r e a d s ; 13m $ 8.8% TTM blended cash leasing spreads 12 CUMULATIVE SNO ABR ($M) $13M SNO Pipeline represents 3.9% of 1Q24 ABR 9 • N at io na l t e n a n t s
Slide 7: Significant unencumbered asset base and liquidity
SIGNIFICANT UNENCUMBERED ASSET BASE AND LIQUIDIT Y A s of 1Q24, SITE has no consolidated debt maturities 1600 in 2024, no unhedged variable rate debt and $1.5B of liquidit y ($557M of cash and restric ted cash & $950 M 1400 of availabilit y on the Company ’s line of credit) During 1Q24, SITE repurch
Slide 8: Guidance & Earnings Considerations
2 0 24 P R O J E C T I O N S 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 4 E arni ng s C o nsi dera tions • A s s e t s s ol d i n 1 Q 24 c on t ri bu t e d $937K of N O I t o t h e qu art e r • Ot he r i n c om e i n c l u de d $ 7. 3 M of in t e re st in c om e f rom c ash an d c ash e q
Slide 9: Curbline Properties (CURB)
c CURBLINE CURBLINE PROPERTIES (CURB)
Slide 10: 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. 1Q2024 Property Count (including JVs) 67 69 Estimated Property NOI Projection ($m)1 $76.9 - $80.2 $252.8 - $260.6 AB
Slide 11: 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-MAR APR-SEP OCT 2023 2024 2024 SOURCES USES (2Q24-3Q24) (2Q24-3Q24) Mortgage Proceeds1 $1,046m Unsecured
Slide 12: Transaction Overview: Pro Forma Balance Sheets
TRANSACTION OVERVIEW: PRO FORMA BALANCE SHEETS 1Q2024 PRO FORMA SITE Centers SITE Centers Curbline Pro forma for the Spin, SITE Centers is expected to have no SITC Preferred Stock - - $300m unsecured debt outstanding and CURB is expected to be in Cash & Restricted Cash $557m - $300m a net cash posit
Slide 13: Curbline Properties: 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 14: 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 and was screened and curated based on demographics, credit profile, mark-to-market and cash flow growth 2.2m $35.87 96.6% SQUARE FEET REN
Slide 15: Curbline Properties: Differentiated From Public Peers
CURBLINE PROPERTIES: DIFFERENTIATED FROM PUBLIC PEERS SHOPS AS A % OF ABR AVERAGE ASSET SIZE (SF) TOP 10 TENANT CONCENTRATION 92% 34k sf 13.6% 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 16: Curbline Properties: 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 17: 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 hom
Slide 18: 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, dedi
Slide 19: 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 INVEST
Slide 20: 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 1 2.1% 1.8% 3 Verizon 1.0% 1.4% tenant
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP Financial Measures and Other Operational Metrics - Definitions
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 FFO and Operating FFO 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 e
Slide 23: Non-GAAP Financial Measures - Definitions 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 Debt to Adjusted EBTIDA The Company uses the ratio Debt to Adjusted EBITDA (“Debt/Adjusted EBITDA”) as it believes it provides a meaningful metric as it relates to th
Slide 24: Reconciliation: Net Loss to FFO and Operating FFO
R E C O N C I L I AT I O N : N E T LO S S 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 ACTUAL 1Q24 NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS ($0.13) Depreciation and amortization of real estate 0.20 JVs' FFO 0.01 Impairment o
Slide 25: Reconciliation: Net (Loss) Income to Same Store NOI
R E C O N C I L I AT I O N : ( N E T LO S S ) 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 1Q24 1Q23 NET (LOSS) INCOME ATTRIBUTABLE TO SITE CENTERS ($23,552) $15,284 Fee income (1,470) (1,859) Interest expense 18
Slide 26: Reconciliation: Net Income to Same Store NOI 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 1Q24 1Q23 NET (LOSS) INCOME FROM UNCONSOLIDATED JOINT VENTURES ($176) $1,004 Interest expense 1,832 1,587 Depreciat
Slide 27: 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 24 CONSOLIDATED Consolidated net income to SITE $226,867 Interest expense 80,993 Tax expense 2,084 Depreciation and amortization 201,594 EBITDA 511,538 Impairment charges 66,600 Gain on disposition of real estat
Slide 28: 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 24 Consolidated debt - average 1,673,750 Loan costs, net - average 4,993 Face value adjustments - average (391) Cash and restricted cash - average (291,089) AVERAGE NET EFFECTIVE DEBT $1,387,263 Debt/A