Site Centers Corp. · NYSE:SITC
Site Centers — NAREIT June 2020
28 slides from Site Centers's conference presentation, June 2020
Slide 1: NAREIT Presentation June 2020
SITE CENTERS NAREIT Presentation JUNE 2020
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: SITE Centers Key Takeaways
S I T E C E N T E R S K E Y TA K E AWAY S Focused portfolio located in the top sub-markets of the U.S. 69 WHOLLY-OWNED PROPERTIES WITH AN AVERAGE HOUSEHOLD INCOME OF $108K (87 TH PERCENTILE) 84% OF CONSOLIDATED NOI ANCHORED BY ESSENTIAL RETAILERS INCLUDING 68% FROM GROCERS AND WAREHOUSE CLUBS 18 OF
Slide 4: Company-Wide Commitment to ESG Leadership
C O M PA N Y-W I D E C O M M I T M E N T TO E S G L E A D E R S H I P S I T E C E N T E R S I S C O M M I T T E D T O T R A N S 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 , SO CIAL , AN D G OV E R NAN CE G OAL S G R E E N S TA R R AT E D Community People Corporate CORP OR ATE CHARITAB L
Slide 5: COVID-19 Update
COVID-19 Update 5
Slide 6: Steps Taken to Date
S T E P S TA K E N T O D AT E IMPLEMENTED LEASING RESPONSE PLAN BORROWED $500M ON LINE TO ADDRESS UNPAID RENT AND TENANT OF CREDIT TO BUILD LIQUIDITY REQUESTS FOR RENT DEFERMENT MAR APR TRANSITIONED EMPLOYEE BASE RE-EVALUATED CAPITAL EXPENDITURES TO WORKING REMOTELY AND CAPITAL DEPLOYMENT TO IMPROVE
Slide 7: SITE Centers Portfolio Operating Status
S I T E C E N T E R S P O R T F O L I O O P E R AT I N G S TAT U S W H I L E T H E I N D I V I D U A L T E N A N T S O P E N F O R B U S I N E S S VA R I E S A C R O S S T H E P O R T F O L I O , 1 0 0 % O F P R O P E R T I E S A R E O P E N A N D O P E R AT I N G 100% 77% OF TENANTS OPEN FOR BUSINE
Slide 8: Tenant Category Operating Status
SITE CENTERS Major Tenant Major Tenant • Grocery (100% Open) Note: As of May 29, 2020. Weighted by base rent. • Theatres (74% Closed) Categories Closed • Office Supplies (100% Open) • Warehouse Clubs (100% Open) • Fitness (Monthly) (68% Closed) • Home Improvement (96% Open) Categories Operating • Cl
Slide 9: April and May Rent Collection Overview
A P R I L A N D M AY R E N T C O L L E C T I O N O V E R V I E W 57% 62% OF APRIL BILLED BASE RENTS COMBINED RENT PAID IN APRIL WERE PAID AND MAY • 2% of rent deferred in April APRIL M AY $30 $30 $30 $30 $30 100% $30 100% 100% 100% 100% 53% OF MAY BILLED BASE RENTS WERE PAID • 4% of rent deferred in
Slide 10: Portfolio Overview
Portfolio Overview 10
Slide 11: 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, 2 0 17 MAR. 31, 2020 INCREASE OF +20% AVG H H IN CO M E, A
Slide 12: 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 T O E N T R Y A N D C O M P E L L I N G DEMOGRAPHICS. 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 T O P Q U A R T I L E W H E N C O M PA R E D T O A L L
Slide 13: 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 9 % 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 8 % S A N A N
Slide 14: 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 76 AVG HHI $160K GSA TAP
Slide 15: Significant Exposure to Best-in-Class Essential Anchors
SI G N I FI C A N T E X P OSU R E TO B E S T- I N - C L ASS E SS E N TIA L A N C H O RS NOI BY ANCHOR TYPE1 A LT E R N A T I V E A N C H O R 6 % 68% OF PORTFOLIO IS AN CH O R E D BY G RO CE R O R A WA R E H O U S E C L U B W I T H INCLUDES ESSENTIAL A G ROCERY COMPONENT DISCOUNT 11% ANCHOR 84% 84% O
Slide 16: National Tenant Access to Capital
N AT I O N A L T E N A N T A C C E S S T O C A P I TA L 10.0b 39.2b R AISED BY 6 OF R AISED BY 18 OF $ TOP 10 TENANTS (17.1% ABR) $ TOP 50 TENANTS (28.4% ABR) 0.6% abr 0.5% abr 0.7% abr 0.4% abr $0. 5B CO M M O N $0.5B UNSECURED $2.5B UNSECURED $1.3B SENIOR SECURED 0.2% abr EQ U IT Y 0.2% abr $3.5B
Slide 17: SITC Portfolio Composition
SITC PORTFOLIO COMPOSITION A B R AT S H AR E A BR AT SH A R E 7% 4% GROUND LEASES LOC. RESTAURANTS 3% 7% FITNESS 4% MOVIE THEATRES LOC. SMALL SHOPS (<5K SF) 61% ANCHORS 16% (>10K SF) NAT. SMALL SHOPS (<5K SF) 9% MID-TIER (5K - 10K SF) 89% ALL OTHER INDUSTRIES Note: As of March 31, 2020. Numbers may
Slide 18: Restaurant Exposure Is Primarily National & Franchises
R E S TA U R A N T E X P O S U R E D E TA I L S Restaurant exposure is primarily national & franchises R ES TA U R A N T EX P O S U R E TO P 1 0 R E STA U R A N T E X P O SU R E TENANT TYPE % OF RESTAURANT ABR PANERA BREAD National 4% NATIONAL RESTAURANTS 8% STARBUCKS COFFEE National 3% BRINKER Nati
Slide 19: Shopping Centers Offer Discount...
S H O P P I N G C E N T E R S O F F E R D IS CO 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 T O 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 2 8 % M O R E T H A N M A C Y ’ S T O TA L
Slide 20: ...and Convenience Which Are Driving Sales Growth
... AND CONVENIENCE WHICH ARE DRIVING SALES GROW TH S H O P P I N G C E N T E R S ’ F O R M AT A D VA N TA G E S E V I D E N T I N R E TA I L E R B R E A K- O U T S Lbrands 0.1% SITE CENTERS ABR 1.5% SITE CENTERS ABR 0.1% SITE CENTERS ABR 0.3% SITE CENTERS ABR AVG S A L E S P S F 1 AVG S A L E S P S
Slide 21: Diverse Demand from National Tenants
D I V E R S E D E M A N D F R O M N AT I O N A L T E N A N T S A N C H O R O P E N I N G S T O P R O V I D E 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 62 0 K S Q U A R E F E E T, AT S H A R E , S I G N E D B U T N O T O P E N A S O F M AY 1 5 , 2 0 2 0 • D I S C O U N T, G R O C E R Y, B
Slide 22: Balance Sheet
Balance Sheet 22
Slide 23: Significant Liquidity with Minimal Near-Term Maturities
S I G N I F I C A N T L I Q U I D I T Y W I T H M I N I M A L N E A R -T E R M M AT U R I T I E S $900,000 AS OF MARCH 31, 2020, SITE CENTERS HAS $839M $750,000 OF LIQUIDITY INCLUDING: • $514M of consolidated cash on the balance sheet $600,000 • $325M available on the Company’s lines of credit $450,
Slide 24: Significant Balance Sheet Strength
SIGNIFICANT BALANCE SHEET STRENGTH CONSOLIDATED DEBT MATURITIES $1200 BALANCE SHEET STRENGTH $1000 • Debt / Adjusted EBITDA now 5.3x compared to 6.5x in 3Q18 $800 • Minimal near-term refinancing and interest rate risk with just $52M of pro rata consolidated debt maturing $600 through 2021 $400 • $32
Slide 25: Minimal Near-Term Refinancing Risk
M I N I M A L N E A R -T E R M R E FI N A N CI N G R IS K PEER-LEADING LIQUIDIT Y CDR S I TC AKR RPT WRI UE KR G KRG RPT BRX R PA I WRI SI TC FRT UE AKR FRT KIM BR X REG REG R PA I KI M CD R $0 $ 500 $1 , 000 $1,500 $2,000 0 10 20 30 40 50 60 70 LIQUID ITY (CAS H PLUS UN US ED LIN E BALA NCE) ‘2 0 -
Slide 26: Appendix
Appendix 26
Slide 27: Non-GAAP Financial Measures - Definitions
NON - GA AP FINANCIAL MEASURES - DEFINITIONS The Company uses the ratio Debt to Adjusted EBITDA (“Debt/Adjusted EBITDA”) as it believes it provides a meaningful metric as it relates to the Company’s ability to meet various leverage tests for the corresponding periods. The components of Debt/Adjusted
Slide 28: 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 1Q2020 3Q2018 CONSOLIDATED Net Income (loss) to SITE $34,333 ($8,931) Interest Expense 20,587 26,962 Income Tax, Net 233 238 Depreciation and Amortization 42,993 49,629 Adjustments for Non-Controlling Interests (184) (171) EBITDA – Cu