SITE Centers Corp. · NYSE:SITC
SITE Centers — Merger or Acquisition (September 2024)
32 slides from SITE Centers's merger presentation, Sep 17, 2024
Slide 1: Curbline Properties Spin-Off Update
CURBLINE PROPERTIES SPIN-OFF UPDATE S E P T E M B E R 1 7, 2 0 2 4
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 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
Slide 3: Table of Contents
Table of Contents SPIN- OFF OVERVIEW CURBLINE PROPERTIES 4 7 SITE CENTERS 23 APPENDIX 30
Slide 4: Spin-Off Overview
& CURBLINE SPIN-OFF OVERVIEW
Slide 5: 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 on • SITE Centers intends to max
Slide 6: 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-JUN JUL-SEP OCT 2023 2024 2024 SOURCES USES (3Q24) (3Q24) Mortgage Proceeds, Net1 $510M Unsecured Notes
Slide 7: Curbline Properties (CURB)
& CURBLUINE CURBLINE PROPERTIES (CURB)
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 3M SF portfolio of Convenience real estate concentrated in the top suburban U.S. sub-markets that has been screened and curated based on demographics, credit profile, mark-to-market and cash flow growth • The Portfolio is expected t
Slide 10: Balance Sheet Overview and Growth Opportunity
CURBLINE PROPERTIES: BALANCE SHEET OVERVIEW AND GROWTH OPPORTUNITY Curbline’s projected balance sheet – no debt, $600M of cash on hand, $400M unsecured revolver, $100M delayed-draw term loan – and retained cash flow expected to drive significant capacity to capitalize on opportunities and scale CURB
Slide 11: Differentiated from Public Peers
CURBLINE PROPERTIES: DIFFERENTIATED FROM PUBLIC PEERS SHOPS A S A % OF ABR AVER AGE A S SE T SIZE (SF) TOP 1 0 TENANT CONCENTR ATION 92% 34k sf 13.2% 100% 300 35% 90% 30% 250 80% 70% 25% 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 PEC
Slide 12: Diversified Geographic Exposure
CURBLINE PROPERTIES: DIVERSIFIED GEOGRAPHIC EXPOSURE The Curbline portfolio is well diversified across the largest MSAs and affluent suburban sub-markets in the United States benefiting from strong population and employment growth along with significant barriers to entry THE CURBLINE PORTFOLIO % OF
Slide 13: Key Convenience Sector Attributes
CURBLINE PROPERTIES: KEY CONVENIENCE SECTOR ATTRIBUTES ATTRACTIVE ECONOMICS Convenience properties are laid out as a homogeneous line-up of primarily shop units that are attractive to a wide SCALABLE variety of high credit national tenants which limits long- Convenience assets are among the most liq
Slide 14: Convenience: Excellent Access, Visibility and Dedicated Parking
CURBLINE PROPERTIES: CONVENIENCE: EXCELLENT ACCESS, VISIBILITY AND DEDICATED PARKING THE ATTRIBUTES OF CONVENIENCE REAL ESTATE Real estate located on the curbline caters to daily, largely necessity-based convenience trips from the growing suburban population of the United States. Convenience DRIVE-T
Slide 15: 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 QSRs, banks, medical and other service users. In addition, t
Slide 16: Convenience: Traffic, Access & Demand Drive Compelling Lease Economics
CURBLINE PROPERTIES: CONVENIENCE: TRAFFIC, ACCESS & DEMAND DRIVE COMPELLING LEASE ECONOMICS Curbline’s 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
Slide 17: 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 and a significant investment opportunity • Convenience real estate accounts for 60% of total shopping centers by count and almost 13% by GLA • Curbline
Slide 18: 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 19: Scalable Investment: Limited Public Market Competition
CURBLINE PROPERTIES: SCALABLE INVESTMENT: LIMITED PUBLIC MARKET COMPETITION 92% of Convenience assets were acquired by private Transaction volume is concentrated in the largest MSAs buyers providing a unique opportunity for a public with compelling sub-market demographics where CURB vehicle to scale
Slide 20: Scalable Investment: 2024 YTD Acquisition Overview
CURBLINE PROPERTIES: SCALABLE INVESTMENT: 2024 YTD ACQUISITION OVERVIEW • Management has a strong capital allocation track record and has acquired over $1B of real estate since 1Q20 • Completed over $200M of acquisitions YTD 2024 including $111M in 3Q to date 3 Q 2 4 W H O L LY O W N E D A C Q U I S
Slide 21: 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 22: Attractive Economics: Diversified National Tenant Exposure
CURBLINE PROPERTIES: ATTRACTIVE ECONOMICS: DIVERSIFIED NATIONAL TENANT EXPOSURE REDUCES TURNOVER RANK TENANT % OF GLA % OF ABR 71% 33% 1 Starbucks 1.4% 2.6% 2 Darden 1 1.9% 1.7% OF ABR FROM OF ABR FROM PUBLICLY 3 Verizon 0.9% 1.3% NATIONAL TENANTS TRADED TENANTS 4 Inspire Brands 2 1.0% 1.2% 5 JPMorg
Slide 23: SITE Centers (SITC)
SITE CENTERS (SITC)
Slide 24: SITE Centers: Portfolio Overview
SITE CENTERS: PORTFOLIO OVERVIEW SITE CENTERS IS AN 8.8M SF (AT SHARE ) P ORTFOLIO OF RE AL ESTATE CONCENTR ATED IN AFFLUENT COMMUNITIES. THE P ORTFOLIO IS E XPEC TED TO G ENER ATE NOI OF $140. 4 -14 4.8M 1 (AT SHARE ) IN 2024 BASED ON ASSE TS OWNED AS OF SEP T. 16, 2024 8.8mSQUARE FEET 45 PROPERTIE
Slide 25: SITE Centers: Pro-Forma Balance Sheet
SITE CENTERS: PRO - FORMA BAL ANCE SHEET SITE Centers has no outstanding unsecured debt and no consolidated maturities until 3Q28 • In August 2024, SITE Centers completed a $530M mor tgage financing secured by 23 assets. To date 5 assets have been released from the loan due to dispositions PRO FORMA
Slide 26: SITE Centers: Significant Geographic Diversification
S I T E C E N T E R S : S I G N I F I C A N T G E O G R A P H I C D I V E R S I F I C AT I O N SITE CENTERS’ CUR ATED P ORTFOLIO 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 68% DIVERSIFICATION CONC
Slide 27: SITE Centers: Concentrated in High Income Growth Markets
S I T E C E N T E R S : 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 $ 117k AVG H HI CHICAGO 11% P R I N C E TO N / T R E N TO N 1 5 % 131k DENVER 6% WA S H I N G TO N D . C . 5 % P O P U L AT I
Slide 28: SITE Centers: Select Asset Overview
SITE CENTERS: SELECT ASSET OVERVIEW CUR ATED PORTFOLIO OF ASSE TS CONCENTR ATED IN TOP SUB MARKE TS WINTER GARDEN EAST HANOVER FAIRFAX NASSAU PARK PROMENADE WHOLE FOODS VILLAGE PLAZA TOWNE CENTER PAVILION AT BRENTWOOD AT BAY PLACE ORLANDO NEW YORK WASHINGTON, DC PRINCETON ST. LOUIS SAN FRANCISCO MSA
Slide 29: SITE Centers: 2024 YTD Disposition Overview
SIT E CEN T ERS: 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 $8B (at 100%) of assets sold in 2017-2024 YTD Completed over $2.4B of dispositions since June 30, 2023 including third quarter to date dispositions of $714M 3 Q 2 4 W H O
Slide 30: Appendix
APPENDIX
Slide 31: Non-GAAP Financial Measures and Other Operational Metrics - Definitions
NON-GAAP FINANCIAL MEASURES AND OTHER OPERATIONAL METRICS - DEFINITIONS NOI and SSNOI The Company 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 information
Slide 32: Curbline Properties: 1H24 Quarterly NOI Detail
CURBLINE PROPERTIES: 1H24 QUARTERLY NOI DETAIL 1Q24 2Q24 REVENUES: Rental income1 27,861 27,949 Other property income 178 207 28,039 28,156 EXPENSES: Operating and maintenance 2,932 3,059 Real estate taxes 3,021 2,975 5,953 6,034 NET OPERATING INCOME2 22,086 22,122 1. Rental income: Minimum rents 16
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