site centers capital one conference · site centers capital one conference 2021 4 4q20 leasing...

J A N U A R Y 2 0 2 1

S I T E C E N T E R S

Capital One Conference

S I T E C E N T E R SS I T E C E N T E R S C A P I TA L O N E C O N F E R E N C E 2 0 2 1 2

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 expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, the impact of the COVID-19 pandemic on the Company’s ability to manage its properties and finance its operations and on tenants’ ability to operate their businesses, generate sales and meet their financial obligations, including the obligation to pay ongoing and deferred rents; the Company’s ability to pay dividends; local conditions such as the supply of, and demand for, retail real estate space in the area; the impact of e-commerce; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant and the impact of any such event on rental income from other tenants and our properties; redevelopment and construction activities may not achieve a desired return on investment; our ability to buy or sell assets on commercially reasonable terms; our ability to complete acquisitions or dispositions of assets under contract; our ability to secure equity or debt financing on commercially acceptable terms or at all; impairment charges; our ability to enter into definitive agreements with regard to our financing and joint venture arrangements and the Company’s ability to satisfy conditions to the completion of these arrangements; valuation and risks relating to our joint venture and preferred equity investments; the termination of any joint venture arrangements or arrangements to manage real property and the ability to satisfy conditions of such terminations; property damage, expenses related thereto and other business and economic consequences (including the potential loss of rental revenues) resulting from extreme weather conditions or natural disasters in locations where we own properties, and the ability to estimate accurately the amounts thereof; sufficiency and timing of any insurance recovery payments related to damages from extreme weather conditions or natural disasters; any change in strategy and our ability to maintain REIT status; and finalization of the financial statements and operating results for the period ending December 31, 2020. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company’s most recent reports on Form 10-K and Form 10-Q. The impacts of the COVID-19 pandemic may also exacerbate the risks described therein, any of which could have a material effect on the Company. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

In addition, this presentation includes certain non-GAAP financial measures. Non-GAAP financial measures should not be considered replacements for, and should be read together with, the most comparable GAAP measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in the appendix and in the Company’s quarterly financial supplement located at www.sitecenters.com/investors.

S A F E H A R B O R S TAT E M E N T


S I T E C E N T E R S K E Y TA K E AWAY S

TO P Q U A R T I L E D E M O G R A P H I C S

• Assets concentrated in affluent communities with barriers to entry ($108K Avg HHI, 87th percentile)

• More resilient incomes and purchasing power

• Retailers looking to concentrate stores in last-mile of wealthiest suburbs (4Q20 PRS leasing volume was highest since 3Q18); accelerating demand from anchors

N AT I O N A L T E N A N T S W E L L P O S I T I O N E D W I T H

AC C E S S TO C A P I TA L

• National tenants constitute 89% of base rent

• 23 of top 50 tenants raised $50B in 2020

• National collection trends continue to trend higher as agreements executed outpacing local collections

I N C R E A S I N G O P P O R T U N I T Y

P I P E L I N E

• Total redevelopment pipeline +$16M from 2Q20 (10% blended yields)

• Multiple outparcel and pad opportunities unlocked as part of COVID negotiations; increased demand for convenience and drive-thru

• Blackstone assets have near-term leasing and investment prospects to drive above-average CF growth

Note: All figures as of September 30, 2020.

1 2 3


4 Q 2 0 L E A S I N G O V E R V I E W

945K LEASES SIGNED, UP 51% YOY, INCLUDING 7 ANCHOR DEALS EXECUTED TOTALING $1.9M OF ABR AT SHARE

SIGNED, NOT OPENED, PIPELINE TOTALS $13M OF ABR (PRS) AT DECEMBER 31, 2020

SELECT 2020 AND 2021 NATIONAL TENANT OPENINGS

2H20 LE ASING AC TIV IT Y AHE AD OF PRE - COVID LE VEL S DUE TO INCRE ASED DEMAND FROM ANCHORS

0

200,000

400,000

600,000

800,000

1,000,000

4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

SQ

UA

RE

FE

ET

HIGHEST LEASING VOLUME SINCE 3Q18

T O T A L P R S N E W A N D R E N E W A L L E A S I N G A C T I V I T Y


C O M PA N Y- W I D E C O M M I T M E N T T O E S G L E A D E R S H I P

SITE CENTERS IS COMMIT TED TO TR ANSPARENCY AROUND OUR ENVIRONMENTAL , SOCIAL , AND G OVERNANCE G OAL S

TOTAL AWARDED IN 2020

TOTAL SCHOLARSHIPS AWARDED OVER L IFE

OF THE PROGRAM

2020 SCHOLARSHIP RECIP IENTS

AVG TRA IN ING HRS PER EMPLOYEE

TOTAL TRA IN ING HOURS

$25k

45

530

11.4k

SCHOLARSHIPTRAINING

FULL-SERV ICE F ITNESS CENTER

GREEN STAR RATED

3ksf

WEEKLY F ITNESS CLASSES

EMPLOYEES PART IC IPAT ING

17

115

WELLNESS PROGRAM

PeopleCommunity

EMPLOYEE G IFT MATCHING

DONATED TO CHARITABLE ORGS

HOURS EMPLOYEES SPENT VOLUNTEER ING

$30k

$199k

1,174

CORPORATE GIVING

RAISED FOR SPECIAL OLYMPICS TEXAS

RAISED FOR AMER ICAN CANCER SOCIETY

TOYS DONATED TO RONALD McDONALD

HOUSE THROUGH SPONSORED EVENTS

$3k+

$6k

20k+

CHARITABLE GIVING

WOMEN(38%)

MEN(62%)

INDEPENDENT MEMBERS (88%)

3

5

7

BOARD OF DIRECTORS

STAKEHOLDER ENGAGEMENT

Corporate Governance

The Company engages with each of our stakeholders in

different capacities. The level and nature of the engagement

is based on the specific operational relationship

with the stakeholder.

6

COVID-19 Update


98% OF TENANTS OPEN FOR BUSINESS, UP 53% FROM APRIL 5 TROUGH• 98% of anchors open

• 99% of shop tenants open

56% OF TENANTS DEEMED ESSENTIAL1

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

Note: As of January 7, 2021. Weighted by base rent.1. Based on state guidelines for essential businesses.

10 0% OF PROPERTIES REMAIN OPEN AND OPER ATING

3/12

/20

4/12

/20

5/12

/20

6/12

/20

7/12

/20

8/12

/20

9/12

/20

10/1

2/20

11/12

/20

12/1

2/20

1/7/

2140%

60%

80%

100% 98%

45%

+53%


Billed Actual Billed Actual Billed Actual

2 Q 2 0 - 4 Q 2 0 R E N T C O L L E C T I O N O V E R V I E W

75% OF 2Q20, 86% OF 3Q20, AND 93% OF 4Q20 RENT PA ID TO DATE , WITH COLLEC TIONS ONG OING

Note: As of January 7, 2021. Figures may not sum to 100% due to rounding. Unpaid rent includes abatements and rent billed to bankrupt tenants. All months include acquired Blackstone III and IV assets at 100% ownership.

BILLED PAID REACHED DEFERRAL ARRANGEMENTS UNPAID

4Q202Q20 3Q20

14%

11% 6% 0%8%7%

75%86%

93%


1 2 3TO P Q U A R T I L E

D E M O G R A P H I C S




P I P E L I N E


P O R T F O L I O C O N C E N T R AT E D I N S U B U R B A N , H I G H H O U S E H O L D I N C O M E C O M M U N I T I E S

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$0K↓

$40K

$40K↓

$50K

$50K↓

$60K

$60K↓

$70K

$70K↓

$80K

$80K↓

$90K

$90K↓

$100K

$100K↓

$110K

$110K↓

$120K

$120K↓

$130K

$130K↓

$140K

$140K↓

$150K

$150K + 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q200

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

A V G H H I N C O M E ( 3 - M I L E ) 1

PE

RC

EN

TIL

E R

AN

K O

F O

PE

N-A

IR S

HO

PP

ING

CE

NT

ER

PR

OP

ER

TIE

S $108kS I T C P O R T F O L I O

+23%

T O L L B R O T H E R S Q U A R T E R LY C O N T R A C T E D H O M E S 287th

P E R C E N T I L E

ASSE TS LOC ATED IN AFFLUENT SUB - MARKE TS WITH BARR IERS TO ENTRY AND TOP QUARTILE DEMO G R APHICS

SUBURBAN COMMUNIT IES ARE SEE ING S IG NIF IC ANT P OPUL ATION G ROW TH AND INCRE ASED HOUSING DEMAND

1. Demographic data as of September 30, 2020.2. Source: Company filings


T O P I N C O M E B R A C K E T S M O R E R E S I L I E N T T O D AT E

SITE CENTERS ’ SUB - MARKE TS HAVE SEEN G RE ATER INCOME AND PURCHASING P OWER STAB IL IT Y DURING THE COVID PANDEMIC

-40%

-30%

-20%

-10%

0%

10%

J A N 2 0F i r s t U . S . C O V I D - 1 9 C a s e

M A R 1 3N a t i o n a l E m e r g e n c y D e c l a r e d

S E P T 3

M A R 2 7C A R E S A c t E n a c t e d

A P R 1 5S t i m u l u s P a y m e n t s S t a r t

-0.8%High Wage

(>$60K)

-5.7%Middle Wage ($27K-$60K)

-19.7%Low Wage

(


1. Source: Company documents.2. Gap brand and Victoria’s Secret total rent PSF based on 2019 financing filings.3. Average rent in SITE Centers portfolio.

S H O P P I N G C E N T E R F O R M AT O F F E R S C O N V E N I E N C E A N D L O W E R O P E R AT I N G C O S T S

SHOPPING CENTER FORMAT ADVANTAG ES E V IDENT IN RE TAILER B RE AK- OUTS

VS . VS .

S I G N I F I C A N T LY H I G H E R M A R G I N S

L O W E R C O S T O F O C C U P A N C Y

H I G H E R S A L E SH I G H E R S A L E S G R O W T H

Lbrands

0.1%

5%EBITDA MARGIN1

SITE CENTERS ABR

$20.84 IN NNN EXPENSES

$71.36TOTAL RENT PSF2

+14.8% SINCE 2010

$426AVG SALES PSF1

1.9%SITE CENTERS ABR

18%EBITDA MARGIN1



+34.2% SINCE 2010

$417AVG SALES PSF1


1%OPERATING MARGIN1



+3.2% SINCE 2010

$684AVG SALES PSF1


21%OPERATING MARGIN1



+50.2% SINCE 2010

$931AVG SALES PSF1


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(BOSTON)

AVG HHI $104K GSA TAP 38

COTSWOLD VILLAGE(CHARLOTTE)


UNIVERSITY HILLS(DENVER)


WINTER GARDEN VILLAGE(ORLANDO)


THE BLOCKS(PORTLAND)


JOHNS CREEK TOWN CENTER(ATLANTA)


NASSAU PARK PAVILION(NEW YORK)


FAIRFAX TOWNE CENTER(WASHINGTON, DC)


WHOLE FOODS AT BAY PLACE(SAN FRANCISCO)


THE SHOPS AT MIDTOWN MIAMI(MIAMI)


PROMENADE AT BRENTWOOD(ST. LOUIS)


MARKETPLACE AT HIGHLAND VILLAGE(DALLAS)


PERIMETER POINTE(ATLANTA)


3030 NORTH BROADWAY(CHICAGO)


EDGEWATER TOWNE CENTER(NEW YORK)



1 32N AT I O N A L T E N A N T S

W E L L P O S I T I O N E D W I T H AC C E S S TO C A P I TA L



P I P E L I N E


S I T C P O R T F O L I O C O M P O S I T I O N

89%NATIONAL TENANTS

4%LOC. RESTAURANTS

11%LOCAL

TENANTS

90%ALL OTHER INDUSTRIES

3%FITNESS

Note: As of September 30, 2020, Includes Blackstone III and IV properties at 100%. Sums may not add to 100% due to rounding.

4%MOVIE THEATRES

ABR At Share

ABR At Share


S I T E ’ S R E S TA U R A N T E X P O S U R E I S P R I M A R I LY N AT I O N A L T E N A N T S

Note: Weighted by base rent.

L O C A L R E S TA U R A N T S 4%

A L L OT H E R T E N A N T S 88%

N AT I O N A L R E S TA U R A N T S 8%

RESTAURANT EXPOSURE TOP 10 RESTAURANT EXPOSURE

TENANT TYPE % OF RESTAURANT ABR

PANERA BREAD National 4%

DARDEN National 3%

STARBUCKS COFFEE National 3%

BRINKER National 3%

CHIPOTLE National 2%

FIVE GUYS BURGERS National 2%

CHICK-FIL-A National 2%

BUFFALO WILD WINGS National 1%

SUBWAY SANDWICHES National 1%

PANDA EXPRESS National 1%

THE MA JORIT Y OF S ITE CENTERS ’ RESTAUR ANTS ARE QSRS WITH L IM ITED S IT- DOWN D IN ING


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

0.2% abr$8.0B UNSECURED



2.7% abr$0.5B CONVERT



$11.7b $50.3bRAISED BY 7 OF TOP 10 TENANTS IN 2020(20.7% ABR) RAISED BY 23 OF TOP 50 TENANTS IN 2020(34.5% ABR)



1.9% abr$3.0B UNSECURED 1.9% abr

$0.5B UNSECURED1.3% abr$1.1B CONVERT & UNSECURED


1.7% abr$0.7B FIRST LIEN

0.4% abr$0.5B COMMON

EQUIT Y

2.0% abr$2.3B SENIOR

SECURED



SECURED



0.4% abr$3.5B

UNSECURED 3.3% abr$0.9B ASSET BASED

REVOLVER


SECURED & UNSECURED


0.6% abr$12.5B

UNSECURED


0.4% abr$0.4B

UNSECURED 0.4% abr$0.2B COMMON

EQUIT Y

0.0% abr$1.5B UNSECURED 0.1% abr

$11.8BUNSECURED


0.2% abr$1 .9B UNSECURED


0.3% abr$0.8B IPO

0.0% abr$0.1B REVOLVER

0.1% abr$0.0B COMMON

EQUITY

0.0% abr$0.1B REVOLVER


SECURED

1.2% abr$0.5B SECURED TL


Q U A R T E R LY S I T E C E N T E R S R E TA I L E R S A L E S S N A P S H O T

0%

5%

10%

15%

20%

25%

% C

OM

P S

ALE

S

+2%3.3%

ABR2.7%

ABR2.4%

ABR1.9%

ABR1.9%

ABR1.9%

ABR1.2%

ABR1.0%

ABR0.8%

ABR0.7%

ABR

+23%

+16% +17%

+11%

+23%

+13%

+8%+5%

+24%

Source: Company data. Note: Sales figures represent last publicly reported quarter.

SITE CENTERS ’ TENANTS CONTINUE TO TAKE MARKE T SHARE WITH RE TAILERS REPRESENTING 18% OF AB R REP ORTING AN AVER AG E QUARTERLY COMP SALES INCRE ASE OF +14%


N AT I O N A L T E N A N T E X P O S U R E L E A D I N G T O I M P R O V I N G C O L L E C T I O N S A N D C A S H F L O W

SITE CENTERS ’ TENANT ROSTER IS PR IMARILY NATIONAL TENANTS WITH S IG NIF IC ANT ACCESS TO C APITAL

NATIONAL TENANT COLLEC TIONS MATER IALLY OUTPERFORMING LOC AL

IN 2Q20, NATIONAL TENANT COLLEC TIONS L AGG ED LOC AL S ’ DUE TO DEFERR AL NEG OTIAT IONS AND AG REEMENTS

Note: As of January 7, 2021.

NATIONAL LOCAL

APR MAY JUN JUL AUG SEPT OCT NOV DEC50%

60%

70%

80%

90%

100%

N A T I O N A L V S . L O C A L T E N A N T C O L L E C T I O N S


1 2 3INCREAS ING

OPPORTUNITY P IPEL INE





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 Y – H A M I LT O N M A R K E T P L A C E

H A M I LTO N M A R K E T P L AC E , H A M I LTO N , N J - $ 1 1 5 K AVG . H H I N C O M E / / 6 1 G S A TA P S C O R E

No-build restrictions eliminated as part of COVID-related negotiations allowing for the construction of an 8K SF multi-tenant pad opportunity for QSR users. The redevelopment capitalizes on an underutilized parking field in this regionally dominant shopping center.

PROP

OSED

RETA

IL

$3M VALUE - CRE ATION OPP ORTUNIT Y UNLOCKED AS PART OF COVID NEG OTIAT IONS

High Traffic

IntersectionHigh traffic intersection

in the center is ideal for restaurant pad 8ksf

shop building at double-digit return

on cost


S H O P P E R S WO R L D , F R A M I N G H A M , M A - $ 1 0 4 K AVG . H H I N C O M E

Dated restaurant concept encumbers an extremely valuable parcel with excellent visibility and access. The site-plan can be adapted to monetize the convenience the site provides at an estimated 18% return on capital

$4M VALUE- CREATION OPPORTUNITY WITH THE RECAPTURE OF AN OUTPARCEL AT LEASE EXPIRATION

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 Y – S H O P P E R S W O R L D

Drive-Thru Outparcel

Capitalize on convenience by converting an under-

utilized parking lot

Route 9 Convenience

Existing convenient access and accessibilty to the

shopping center

Drive-Thru Access

Scrape existing outparcel and reconfigure to add convenient drive-thru

tenant


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 Y – U N I V E R S I T Y H I L L S

U N I V E R S I T Y H I L L S , D E N V E R , C O - $ 1 0 3 K AVG . H H I N C O M E / / 9 8 G S A TA P S C O R E

Site plan to be adapted to replace fitness user with shops at double-digit returns to benefit from the visibility, convenience and sub-market rent growth at the entrance to an asset anchored by a top quintile grocer

$4M REDEVELOPMENT OF FORMER GYM WITH ROW OF SHOPS TO CAPITALIZE ON SITE VISIBILITY

Future Tactical

OpportunityCapitalize on convenience

by converting an under-utilized parking lot

S. Colorado

Blvd.Parcel is located along

heavily trafficked S Colorado Blvd.

24 Hour Fitness filed for bankruptcy on June 15, 2020 and the location

was rejected soon thereafter


TA C T I C A L L E A S I N G O P P O R T U N I T Y – T H E H U B

THE HUBHEMPSTEAD, NY

27%

$103k

71%

4.4%

OF ABR FROM GROUND LEASES

AVG HHI

OF ABR FROM 4 TENANTS (CHASE, HOME DEPOT,

STOP & SHOP, FIVE BELOW)

EST. 5-YEAR NOI CAGR

LEASING OPPORTUNITIES EXPECTED TO GENERATE 7% NOI GROW TH FROM 2020 TO 2022

60%M T M O P P O R T U N I T Y

LOI with fast casual concept to replace

Burger King

70%G R O S S R E T U R NLOI with investment grade service user

for vacant shop

15%R E N E WA L S P R E A Don executed fair market

value option; $229M deposits

Future Tactical

OpportunityReconfigure dated shop

building to increase visibility and capitalize on strong demand for outparcels

along Fulton Ave

$75mA N N U A L

S A L E S


TA C T I C A L L E A S I N G O P P O R T U N I T Y – W H I T E O A K V I L L A G E

WHITE OAK VILLAGERICHMOND, VA

4

18%

20%

SHOP LEASES EXECUTED IN 4Q20 VS. 4 DEALS IN

PRIOR 6 YEARS OF JV OWNERSHIP

OF ABR FROM GROUND LEASES

OF ABR FROM PUBLIX WITH SIGNIFICANT TERM

New Daytime Traffic

U N OW N E D 1 , 3 0 0 E M P L OY E E C A L L

C E N T E R

2A D D I T I O N A L

L E A S E S I N N E G OT I AT I O N

OVER 20K SF OF SMALL-SHOP LEASING EXPECTED TO DRIVE 12% NOI GROWTH

4L E A S E S

E X E C U T E D I N 2 H 2 0

26

Balance Sheet


Note: Balance sheet metrics as of September 30, 2020. Dollars in thousands.

BALANCE SHEET STRENGTH• Well laddered maturity schedule with

weighted average maturity of 4.5 years

• $795M available under the company’s $970M Lines of Credit as of September 30, 2020

2020 2021 2022 2023 2024 2025 2026 2027 2028$0

$100

$200

$300

$400

$500

$600

$700

$800

C O N S O L I D A T E D D E B T M A T U R I T I E S

3Q20 DEBT MATURING

S I G N I F I C A N T B A L A N C E S H E E T S T R E N G T H

BALANCE SHEET FLEXIBILITY AND OPTIONALITY• Cash flow covenants are based on GAAP,

not cash, revenue, and calculated on a trailing twelve month basis

BOND COVENANTS 9/30/20 ACTUAL

Outstanding Debt to Undepreciated Real Estate Assets (max 65%) 35%

Secured Debt (max 40%) 1%

Unencumbered Real Estate Assets Ratio (min 135%) 265%

Fixed Charges Ratio (min 1.5x) 3.4x

site centers capital one conference · site centers capital one conference 2021 4 4q20 leasing...

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