Business Wire | Oct 27, 2020 07:00AM EDT

SITE Centers Reports Third Quarter 2020 Operating Results

Oct. 27, 2020

BEACHWOOD, Ohio--(BUSINESS WIRE)--Oct. 27, 2020--SITE Centers Corp. (NYSE: SITC) today announced operating results for the quarter ended September 30, 2020.

"We made continued progress in terms of store openings and collections in the third quarter and we are encouraged by improving leasing activity and volume," commented David R. Lukes, President and Chief Executive Officer. "With the closing of the first of the two Blackstone joint venture transactions earlier this month, we added to our liquidity position and the Company remains well positioned with no material near-term maturities and no material capital commitments."

Results for the Quarter

* Third quarter net income attributable to common shareholders was $2.2 million, or $0.01 per diluted share, as compared to net income of $15.2 million, or $0.08 per diluted share, in the year-ago period. The period-over-period decrease in net income was primarily attributable to the impact of the COVID-19 pandemic partially offset by the change in the BRE preferred investment reserve. * Third quarter operating funds from operations attributable to common shareholders ("Operating FFO" or "OFFO") was $43.5 million, or $0.23 per diluted share, compared to $55.4 million, or $0.30 per diluted share, in the year-ago period.

Significant Third Quarter and Recent Activity

* On October 15, 2020, an affiliate of Blackstone transferred its common equity interest in BRE DDR IV to the Company for consideration of $1.00 and the Company's preferred investment in the BRE DDR IV joint venture was redeemed, thereby leaving the Company as the sole owner of (i) the seven properties owned by the BRE DDR IV joint venture, including Echelon Village Plaza and Larkin's Corner, in which the Company did not previously have a material economic interest, and (ii) BRE DDR IV's restricted and unrestricted cash ($8.9 million in the aggregate as of October 15, 2020). These seven properties are subject to existing mortgage loans which had an aggregate outstanding principal balance of $146.6 million as of October 15, 2020. Additional details are provided in the "BRE DDR Joint Ventures" section of this release. * Sold one unconsolidated shopping center and a wholly-owned land parcel for an aggregate sales price of $2.9 million or $0.7 million at the Company's share. * As previously disclosed, on September 14, 2020, the Company eliminated the executive position of Chief Operating Officer resulting in a separation charge of $1.7 million. The charge is excluded from third quarter and full year OFFO.

Key Quarterly Operating Results

* Reported a decrease of 17.8% in same store net operating income on a pro rata basis for the third quarter of 2020, excluding redevelopment primarily due to the impact of the COVID-19 pandemic. Including redevelopment, same store net operating income for the third quarter of 2020 decreased by 16.5%. * Generated new leasing spreads of 12.9% and renewal leasing spreads of 5.5%, both on a pro rata basis, for the quarter and new leasing spreads of 17.7% and renewal leasing spreads of 4.1%, both on a pro rata basis, for the trailing twelve-month period. * Reported a leased rate of 91.9% at September 30, 2020 on a pro rata basis, compared to 92.4% on a pro rata basis at June 30, 2020 and 94.2% at September 30, 2019. The sequential decline was primarily related to the bankruptcy of Ascena and Pier 1 with the Company's anchored leased rate increasing 40 basis points sequentially due to new leasing activity. * As of September 30, 2020, the signed but not opened spread was 220 basis points representing $10.9 million of annualized base rent on a pro rata basis scheduled to commence. * Annualized base rent per occupied square foot on a pro rata basis was $18.53 at September 30, 2020, compared to $18.04 at September 30, 2019.

COVID-19 Update

* Reopened SITE Centers' headquarters in Cleveland, Ohio and select regional offices in order to allow employees to return on a voluntary basis. The Company continues to offer remote working to respond to the needs of our employees. * COVID-19 pandemic response remains at the forefront of our property operations objectives. As tenants ramped up their in-store operations, SITE Centers worked to facilitate curbside and online purchase pick-up, continued with the Company's social media and property level promotional programs, and worked to promote social distancing and CDC protocols among shopping center patrons through signage and other measures. Our property operations teams continued to maintain heightened cleaning and disinfection procedures in accordance with CDC guidelines and worked diligently to promote that vendor partners' operations in accordance with SITE's Vendor COVID Operating Protocol. * As of October 23, 2020, all of the Company's properties remain open and operational with 98% of tenants, at the Company's share and based on average base rents, open for business. This compares to an open rate low of 45% as of April 5, 2020 and 92% as of July 24, 2020. * As of October 23, 2020, the Company's tenants had paid approximately 70% of second quarter rent and 84% of third quarter rent. The payment rates for the Company's tenants are reflected as follows:

Second Quarter July August September October 2020 2020 2020 2020 2020

As of October 70% 80% 82% 90% 90%23, 2020

As of July 24, 64% 71% N/A N/A N/A2020

* As of October 23, 2020, the Company has reached deferral arrangements with tenants representing 16% of second quarter 2020 rents and 8% of third quarter 2020 rents.

BRE DDR Joint Ventures

On July 14, 2020, the Company entered into agreements with affiliates of Blackstone to terminate the BRE DDR III and BRE DDR IV joint ventures. As described above, the BRE DDR IV transaction closed on October 15, 2020. BRE DDR III is expected to close by year end. At the closing of the BRE DDR III transaction, the Company will transfer its common and preferred equity interests in BRE DDR III to an affiliate of Blackstone in exchange for (i) BRE DDR III's interests in White Oak Village and Midtowne Park, (ii) 50% of the unrestricted cash then held by BRE DDR III (BRE DDR III's unrestricted cash balance was $18.5 million as of September 30, 2020), and (iii) $1.9 million in cash. At closing, the White Oak Village and Midtowne Park properties will continue to be subject to existing mortgage loans which had an aggregate outstanding principal balance of $50.0 million as of September 30, 2020. This transaction is expected to close in the fourth quarter of 2020 as soon as all applicable conditions have been satisfied including receipt of lender consents.

BRE DDR IV Acquisition Properties (Closed October 15, 2020)

SITE Owned Total ABRCenter MSA Location ST JV Own GLA GLA PSF %

Concourse Miami-Fort Lauderdale-West Palm Jupiter FL 5% BREDDR 134 134 $17.40Village Beach, FL IV

Millenia Orlando-Kissimmee-Sanford, FL Orlando FL 5% BREDDR 100 100 $26.30Crossing IV

Echelon Philadelphia-Camden-Wilmington, BREDDRVillage PA-NJ-DE-MD Voorhees NJ 0% IV 89 89 $20.58Plaza

The Hub New York-Newark-Jersey City, Hempstead NY 5% BREDDR 249 249 $12.42 NY-NJ-PA IV

Southmont Allentown-Bethlehem-Easton, Easton PA 5% BREDDR 251 386 $16.25Plaza PA-NJ IV

Ashbridge Philadelphia-Camden-Wilmington, Downingtown PA 5% BREDDR 386 386 $9.47Square PA-NJ-DE-MD IV

Larkin's Philadelphia-Camden-Wilmington, Boothwyn PA 0% BREDDR 225 225 $9.78Corner PA-NJ-DE-MD IV

BRE DDR III Acquisition Properties

SITE Owned Total ABRCenter MSA Location ST JV Own GLA GLA PSF %

Midtowne Greenville-Anderson-Mauldin, Anderson SC 5% BREDDR 167 174 $9.83Park SC III

White BREDDROak Richmond, VA Richmond VA 5% III 432 956 $15.99Village

About SITE Centers Corp.

SITE Centers is an owner and manager of open-air shopping centers that provide a highly-compelling shopping experience and merchandise mix for retail partners and consumers. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC. Additional information about the Company is available at https://www.sitecenters.com. To be included in the Company's e-mail distributions for press releases and other investor news, please click here.

Conference Call and Supplemental Information

The Company will hold its quarterly conference call today at 8:30 a.m. Eastern Time. To participate with access to the slide presentation, please visit the Investor Relations portion of SITE's website, ir.sitecenters.com, or for audio only, dial 888-317-6003 (U.S.), 866-284-3684 (Canada) or 412-317-6061 (international) using pass code 9120571 at least ten minutes prior to the scheduled start of the call. The call will also be webcast and available in a listen-only mode on SITE Centers' web site at ir.sitecenters.com. If you are unable to participate during the live call, a replay of the conference call will also be available at ir.sitecenters.com for further review. You may also access the telephone replay by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international) using passcode 10148482 through November 27, 2020. Copies of the Company's Supplemental package and earnings slide presentation are available on the Company's website.

Non-GAAP Measures

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 Operating FFO provide additional indicators of the financial performance of a REIT. The Company also believes that FFO and Operating FFO more appropriately measure the core operations of the Company and provide benchmarks to its peer group.

FFO is generally defined and calculated by the Company as net income (loss) (computed in accordance with generally accepted accounting principles in the United States ("GAAP")), adjusted to exclude (i) preferred share dividends, (ii) gains and losses from disposition of real estate property and related investments, which are presented net of taxes, (iii) impairment charges on real estate property and related investments, including reserve adjustments of preferred equity interests, (iv) gains and losses from changes in control and (v) certain non-cash items. These non-cash items principally include real property depreciation and amortization of intangibles, equity income (loss) from joint ventures and equity income (loss) from non-controlling interests and adding the Company's proportionate share of FFO from its unconsolidated joint ventures and non-controlling interests, determined on a consistent basis. The Company's calculation of FFO is consistent with the definition of FFO provided by NAREIT. The Company calculates Operating FFO as FFO excluding certain non-operating charges, income and gains. Operating FFO is useful to investors as the Company removes non-comparable charges, income and gains to analyze the results of its operations and assess performance of the core operating real estate portfolio. Other real estate companies may calculate FFO and Operating FFO in a different manner.

The Company also uses net operating income ("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 to investors regarding the Company's financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level and, when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis.

The Company presents NOI information herein on a same store basis or "SSNOI." The Company defines SSNOI as property revenues less property-related expenses, which exclude straight-line rental income (including reimbursements) and expenses, lease termination income, management fee expense, fair market value of leases and expense recovery adjustments. SSNOI includes assets owned in comparable periods (15 months for quarter comparisons). In addition, SSNOI is presented both including and excluding activity associated with development and major redevelopment. SSNOI excludes all non-property and corporate level revenue and expenses. Other real estate companies may calculate NOI and SSNOI in a different manner. The Company believes SSNOI at its effective ownership interest provides investors with additional information regarding the operating performances of comparable assets because it excludes certain non-cash and non-comparable items as noted above.

FFO, Operating FFO, NOI and SSNOI do not represent cash generated from operating activities in accordance with GAAP, are not necessarily indicative of cash available to fund cash needs and should not be considered as alternatives to net income computed in accordance with GAAP, as indicators of the Company's operating performance or as alternatives to cash flow as a measure of liquidity. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures have been provided herein.

Safe Harbor

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 the finalization of the financial statements for the period ended September 30, 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.

SITE Centers Corp.

Income Statement: Consolidated Interests

in thousands, except per share

3Q20 3Q19 9M20 9M19

Revenues:

Rental income (1) $95,874 $108,060 $306,482 $332,555

Other property revenues 70 759 1,804 3,404

Business interruption income 0 885 0 885

95,944 109,704 308,286 336,844

Expenses:

Operating and maintenance 15,775 16,738 50,774 54,322

Real estate taxes 16,542 16,721 51,547 52,262

32,317 33,459 102,321 106,584



Net operating income 63,627 76,245 205,965 230,260



Other income (expense):

Fee income (2) 9,610 12,821 34,149 45,360

Interest income 3,445 4,616 10,480 13,658

Interest expense (18,089) (21,160) (58,487) (63,973)

Depreciation and amortization (41,148) (40,732) (125,014) (123,400)

General and administrative (13,664) (15,304) (38,542) (44,348) (3)

Other expense, net (4) (186) (322) (18,207) (254)

Impairment charges 0 (2,750) 0 (3,370)

Income before earnings from 3,595 13,414 10,344 53,933 JVs and other



Equity in net income of JVs 250 2,612 908 5,446

Adjustment (reserve) of 3,542 (6,373) (19,393) (12,106) preferred equity interests

Gain on sale of joint venture 82 0 45,635 0 interest

Gain on disposition of real 218 14,497 993 31,087 estate, net

Tax expense (284) (249) (859) (827)

Net income 7,403 23,901 37,628 77,533

Non-controlling interests (116) (271) (621) (836)

Net income SITE Centers 7,287 23,630 37,007 76,697

Preferred dividends (5,133) (8,382) (15,399) (25,148)

Net income Common $2,154 $15,248 $21,608 $51,549 Shareholders



Weighted average shares - 193,203 180,567 193,366 180,555 Basic - EPS

Assumed conversion of diluted 162 940 0 1,064 securities

Weighted average shares - 193,365 181,507 193,366 181,619 Basic & Diluted - EPS



Earnings per common share - $0.01 $0.08 $0.11 $0.28 Basic

Earnings per common share - $0.01 $0.08 $0.11 $0.28 Diluted



(1) Rental income:

Minimum rents $76,735 $75,293 $228,416 $225,131

Ground lease minimum rents 5,418 5,018 16,319 15,059

Recoveries 25,833 26,018 80,371 81,466

Uncollectible revenue (14,188) (505) (27,918) (178)

Percentage and overage rent 806 553 1,770 2,839

Ancillary and other rental 1,194 1,295 4,260 5,233 income

Lease termination fees 76 388 3,264 3,005



(2) Fee Income:

JV and other fees 4,037 6,783 15,416 21,905

RVI fees 4,717 5,492 16,111 18,495

RVI disposition fees 856 546 2,622 3,160

RVI refinancing fee 0 0 0 1,800



(3) Mark-to-market adjustment (289) (1,418) 1,617 (2,818) (PRSUs)

Executive separation charge (1,650) 0 (1,650) 0



(4) Other income (expense), net

Transaction and other (186) 0 (1,021) 164 expense, net

Debt extinguishment costs, 0 (322) (17,186) (418) net

SITE Centers Corp.

Reconciliation: Net Income to FFO and Operating FFO

and Other Financial Information

in thousands, except per share

3Q20

3Q19

9M20

9M19

Net income attributable to Common Shareholders

$2,154

$15,248

$21,608

$51,549

Depreciation and amortization of real estate

39,812

39,329

120,889

118,924

Equity in net income of JVs

(250)

(2,612)

(908)

(5,446)

JVs' FFO

4,388

8,498

14,529

24,169

Non-controlling interests

0

28

28

84

Impairment of real estate

0

2,750

0

3,370

(Adjustment) reserve of preferred equity interests

(3,542)

6,373

19,393

12,106

Gain on sale of joint venture interest

(82)

0

(45,635)

0

Gain on disposition of real estate, net

(218)

(14,497)

(993)

(31,087)

FFO attributable to Common Shareholders

$42,262

$55,117

$128,911

$173,669

RVI disposition and refinancing fees

(856)

(546)

(2,622)

(4,960)

Mark-to-market adjustment (PRSUs)

289

1,418

(1,617)

2,818

Hurricane property income, net

0

(885)

0

(885)

Executive separation charge

1,650

0

1,650

0

Debt extinguishment, transaction, net

186

322

18,207

443

Joint ventures - debt extinguishment, other

0

(52)

42

(6)

Total non-operating items, net

1,269

257

15,660

(2,590)

Operating FFO attributable to Common Shareholders

$43,531

$55,374

$144,571

$171,079

Weighted average shares & units - Basic: FFO & OFFO

193,343

180,708

193,507

180,697

Assumed conversion of dilutive securities

21

940

0

1,064

Weighted average shares & units - Diluted: FFO & OFFO

193,364

181,648

193,507

181,761

FFO per share - Basic

$0.22

$0.31

$0.67

$0.96

FFO per share - Diluted

$0.22

$0.30

$0.67

$0.96

Operating FFO per share - Basic

$0.23

$0.31

$0.75

$0.95

Operating FFO per share - Diluted

$0.23

$0.30

$0.75

$0.94

Common stock dividends declared, per share

$0.00

$0.20

$0.20

$0.60

Capital expenditures (SITE Centers share):

Development and redevelopment costs

3,289

20,207

17,431

41,594

Maintenance capital expenditures

3,394

3,846

10,989

9,673

Tenant allowances and landlord work

2,655

8,600

18,246

23,606

Leasing commissions

786

1,542

2,412

3,625

Construction administrative costs (capitalized)

715

924

2,195

2,484

Certain non-cash items (SITE Centers share):

Straight-line rent

739

566

(390)

1398

Straight-line fixed CAM

155

196

450

581

Amortization of (above)/below-market rent, net

1,230

1,058

3,780

3,328

Straight-line rent expense

(45)

(186)

(167)

(1,020)

Debt fair value and loan cost amortization

(1,233)

(1,166)

(3,587)

(3,429)

Capitalized interest expense

234

400

792

951

Stock compensation expense

(2,710)

(3,628)

(5,088)

(9,095)

Non-real estate depreciation expense

(1,270)

(1,352)

(3,938)

(4,282)

SITE Centers Corp.

Reconciliation: Net Income to FFO and Operating FFO

and Other Financial Information

in thousands, except per share

3Q20 3Q19 9M20 9M19

Net income attributable to Common $2,154 $15,248 $21,608 $51,549 Shareholders

Depreciation and amortization of 39,812 39,329 120,889 118,924 real estate

Equity in net income of JVs (250) (2,612) (908) (5,446)

JVs' FFO 4,388 8,498 14,529 24,169

Non-controlling interests 0 28 28 84

Impairment of real estate 0 2,750 0 3,370

(Adjustment) reserve of preferred (3,542) 6,373 19,393 12,106 equity interests

Gain on sale of joint venture (82) 0 (45,635) 0 interest

Gain on disposition of real (218) (14,497) (993) (31,087) estate, net

FFO attributable to Common $42,262 $55,117 $128,911 $173,669 Shareholders

RVI disposition and refinancing (856) (546) (2,622) (4,960) fees

Mark-to-market adjustment (PRSUs) 289 1,418 (1,617) 2,818

Hurricane property income, net 0 (885) 0 (885)

Executive separation charge 1,650 0 1,650 0

Debt extinguishment, transaction, 186 322 18,207 443 net

Joint ventures - debt 0 (52) 42 (6) extinguishment, other

Total non-operating items, net 1,269 257 15,660 (2,590)

Operating FFO attributable to $43,531 $55,374 $144,571 $171,079 Common Shareholders



Weighted average shares & units - 193,343 180,708 193,507 180,697 Basic: FFO & OFFO

Assumed conversion of dilutive 21 940 0 1,064 securities

Weighted average shares & units - 193,364 181,648 193,507 181,761 Diluted: FFO & OFFO



FFO per share - Basic $0.22 $0.31 $0.67 $0.96

FFO per share - Diluted $0.22 $0.30 $0.67 $0.96

Operating FFO per share - Basic $0.23 $0.31 $0.75 $0.95

Operating FFO per share - Diluted $0.23 $0.30 $0.75 $0.94

Common stock dividends declared, $0.00 $0.20 $0.20 $0.60 per share



Capital expenditures (SITE Centers share):

Development and redevelopment 3,289 20,207 17,431 41,594 costs

Maintenance capital expenditures 3,394 3,846 10,989 9,673

Tenant allowances and landlord 2,655 8,600 18,246 23,606 work

Leasing commissions 786 1,542 2,412 3,625

Construction administrative costs 715 924 2,195 2,484 (capitalized)



Certain non-cash items (SITE Centers share):

Straight-line rent 739 566 (390) 1398

Straight-line fixed CAM 155 196 450 581

Amortization of (above)/ 1,230 1,058 3,780 3,328 below-market rent, net

Straight-line rent expense (45) (186) (167) (1,020)

Debt fair value and loan cost (1,233) (1,166) (3,587) (3,429) amortization

Capitalized interest expense 234 400 792 951

Stock compensation expense (2,710) (3,628) (5,088) (9,095)

Non-real estate depreciation (1,270) (1,352) (3,938) (4,282) expense

SITE Centers Corp.

Balance Sheet: Consolidated Interests

$ in thousands

At Period End

3Q20

4Q19

Assets:

Land

$881,543

$881,397

Buildings

3,312,645

3,277,440

Fixtures and tenant improvements

501,431

491,312

4,695,619

4,650,149

Depreciation

(1,393,578)

(1,289,148)

3,302,041

3,361,001

Construction in progress and land

52,042

59,663

Real estate, net

3,354,083

3,420,664

Investments in and advances to JVs

79,119

181,906

Investment in and advances to affiliate (1)

190,770

190,105

Receivable - preferred equity interests, net

96,128

112,589

Cash

57,224

16,080

Restricted cash

289

3,053

Notes receivable

0

7,541

Receivables and straight-line (2)

79,208

60,594

Intangible assets, net (3)

67,766

79,813

Other assets, net

20,275

21,277

Total Assets

3,944,862

4,093,622

Liabilities and Equity:

Revolving credit facilities

175,000

5,000

Unsecured debt

1,449,075

1,647,963

Unsecured term loan

99,591

99,460

Secured debt

53,316

94,874

1,776,982

1,847,297

Dividends payable

5,133

44,036

Other liabilities (4)

203,035

220,811

Total Liabilities

1,985,150

2,112,144

Preferred shares

325,000

325,000

Common shares

19,400

19,382

Paid-in capital

5,706,225

5,700,400

Distributions in excess of net income

(4,083,405)

(4,066,099)

Deferred compensation

5,442

7,929

Other comprehensive income

(3,728)

(491)

Common shares in treasury at cost

(12,463)

(7,707)

Non-controlling interests

3,241

3,064

Total Equity

1,959,712

1,981,478

Total Liabilities and Equity

$3,944,862

$4,093,622

(1)

Preferred investment in RVI

$190,000

$190,000

Receivable from RVI

770

105

(2)

SL rents (including fixed CAM), net

32,021

31,909

(3)

Operating lease right of use assets

21,024

$21,792

(4)

Operating lease liabilities

40,174

40,725

Below-market leases, net

43,205

46,961

SITE Centers Corp.

Balance Sheet: Consolidated Interests

$ in thousands

At Period End

3Q20 4Q19

Assets:

Land $881,543 $881,397

Buildings 3,312,645 3,277,440

Fixtures and tenant improvements 501,431 491,312

4,695,619 4,650,149

Depreciation (1,393,578) (1,289,148)

3,302,041 3,361,001

Construction in progress and land 52,042 59,663

Real estate, net 3,354,083 3,420,664



Investments in and advances to JVs 79,119 181,906

Investment in and advances to affiliate (1) 190,770 190,105

Receivable - preferred equity interests, net 96,128 112,589

Cash 57,224 16,080

Restricted cash 289 3,053

Notes receivable 0 7,541

Receivables and straight-line (2) 79,208 60,594

Intangible assets, net (3) 67,766 79,813

Other assets, net 20,275 21,277

Total Assets 3,944,862 4,093,622



Liabilities and Equity:

Revolving credit facilities 175,000 5,000

Unsecured debt 1,449,075 1,647,963

Unsecured term loan 99,591 99,460

Secured debt 53,316 94,874

1,776,982 1,847,297

Dividends payable 5,133 44,036

Other liabilities (4) 203,035 220,811

Total Liabilities 1,985,150 2,112,144



Preferred shares 325,000 325,000

Common shares 19,400 19,382

Paid-in capital 5,706,225 5,700,400

Distributions in excess of net income (4,083,405) (4,066,099)

Deferred compensation 5,442 7,929

Other comprehensive income (3,728) (491)

Common shares in treasury at cost (12,463) (7,707)

Non-controlling interests 3,241 3,064

Total Equity 1,959,712 1,981,478



Total Liabilities and Equity $3,944,862 $4,093,622



(1) Preferred investment in RVI $190,000 $190,000

Receivable from RVI 770 105



(2) SL rents (including fixed CAM), net 32,021 31,909



(3) Operating lease right of use assets 21,024 $21,792



(4) Operating lease liabilities 40,174 40,725

Below-market leases, net 43,205 46,961

SITE Centers Corp.

Reconciliation of Net Income Attributable to SITE to Same Store NOI

$ in thousands

3Q20

3Q19

3Q20

3Q19

SITE Centers at 100%

At SITE Centers Share

(Non-GAAP)

GAAP Reconciliation:

Net income attributable to SITE Centers

$7,287

$23,630

$7,287

$23,630

Fee income

(9,610)

(12,821)

(9,610)

(12,821)

Interest income

(3,445)

(4,616)

(3,445)

(4,616)

Interest expense

18,089

21,160

18,089

21,160

Depreciation and amortization

41,148

40,732

41,148

40,732

General and administrative

13,664

15,304

13,664

15,304

Other expense, net

186

322

186

322

Impairment charges

0

2,750

0

2,750

Equity in net income of joint ventures

(250)

(2,612)

(250)

(2,612)

(Adjustment) reserve of preferred equity interests

(3,542)

6,373

(3,542)

6,373

Tax expense

284

249

284

249

Gain on sale of joint venture interest

(82)

0

(82)

0

Gain on disposition of real estate, net

(218)

(14,497)

(218)

(14,497)

Income from non-controlling interests

116

271

116

271

Consolidated NOI

63,627

76,245

63,627

76,245

SITE Centers' consolidated JV

0

0

(320)

(435)

Consolidated NOI, net of non-controlling interests

63,627

76,245

63,307

75,810

Net (loss) income from unconsolidated joint ventures

(4,748)

6,027

59

2,331

Interest expense

14,700

22,530

2,937

3,918

Depreciation and amortization

23,901

36,867

4,250

6,024

Impairment charges

0

0

0

0

Preferred share expense

4,626

5,544

231

277

Other expense, net

3,246

5,017

694

966

(Gain) loss on disposition of real estate, net

(319)

440

(43)

(10)

Unconsolidated NOI

$41,406

$76,425

8,128

13,506

Total Consolidated + Unconsolidated NOI

71,435

89,316

Less: Non-Same Store NOI adjustments

(1,699)

(5,788)

Total SSNOI including redevelopment

69,736

83,528

Less: Redevelopment Same Store NOI adjustments

(5,294)

(5,155)

Total SSNOI excluding redevelopment

$64,442

$78,373

SSNOI % Change including redevelopment

(16.5%)

SSNOI % Change excluding redevelopment

(17.8%)

SITE Centers Corp.

Reconciliation of Net Income Attributable to SITE to Same Store NOI

$ in thousands

3Q20 3Q19 3Q20 3Q19

At SITE Centers SITE Centers at Share 100% (Non-GAAP)

GAAP Reconciliation:

Net income attributable to SITE $7,287 $23,630 $7,287 $23,630Centers

Fee income (9,610) (12,821) (9,610) (12,821)

Interest income (3,445) (4,616) (3,445) (4,616)

Interest expense 18,089 21,160 18,089 21,160

Depreciation and amortization 41,148 40,732 41,148 40,732

General and administrative 13,664 15,304 13,664 15,304

Other expense, net 186 322 186 322

Impairment charges 0 2,750 0 2,750

Equity in net income of joint (250) (2,612) (250) (2,612)ventures

(Adjustment) reserve of preferred (3,542) 6,373 (3,542) 6,373equity interests

Tax expense 284 249 284 249

Gain on sale of joint venture (82) 0 (82) 0interest

Gain on disposition of real estate, (218) (14,497) (218) (14,497)net

Income from non-controlling interests 116 271 116 271

Consolidated NOI 63,627 76,245 63,627 76,245

SITE Centers' consolidated JV 0 0 (320) (435)

Consolidated NOI, net of 63,627 76,245 63,307 75,810non-controlling interests



Net (loss) income from unconsolidated (4,748) 6,027 59 2,331joint ventures

Interest expense 14,700 22,530 2,937 3,918

Depreciation and amortization 23,901 36,867 4,250 6,024

Impairment charges 0 0 0 0

Preferred share expense 4,626 5,544 231 277

Other expense, net 3,246 5,017 694 966

(Gain) loss on disposition of real (319) 440 (43) (10)estate, net

Unconsolidated NOI $41,406 $76,425 8,128 13,506



Total Consolidated + Unconsolidated 71,435 89,316NOI

Less: Non-Same Store NOI adjustments (1,699) (5,788)

Total SSNOI including redevelopment 69,736 83,528

Less: Redevelopment Same Store NOI (5,294) (5,155)adjustments

Total SSNOI excluding redevelopment $64,442 $78,373



SSNOI % Change including (16.5%) redevelopment

SSNOI % Change excluding (17.8%) redevelopment

SITE Centers Corp.

Reconciliation of Net Income Attributable to SITE to Same Store NOI

$ in thousands

9M20

9M19

9M20

9M19

SITE Centers at 100%

At SITE Centers Share

(Non-GAAP)

GAAP Reconciliation:

Net income attributable to SITE Centers

$37,007

$76,697

$37,007

$76,697

Fee income

(34,149)

(45,360)

(34,149)

(45,360)

Interest income

(10,480)

(13,658)

(10,480)

(13,658)

Interest expense

58,487

63,973

58,487

63,973

Depreciation and amortization

125,014

123,400

125,014

123,400

General and administrative

38,542

44,348

38,542

44,348

Other expense, net

18,207

254

18,207

254

Impairment charges

0

3,370

0

3,370

Equity in net income of joint ventures

(908)

(5,446)

(908)

(5,446)

Reserve of preferred equity interests

19,393

12,106

19,393

12,106

Tax expense

859

827

859

827

Gain on sale of joint venture interest

(45,635)

0

(45,635)

0

Gain on disposition of real estate, net

(993)

(31,087)

(993)

(31,087)

Income from non-controlling interests

621

836

621

836

Consolidated NOI

205,965

230,260

205,965

230,260

SITE Centers' consolidated JV

0

0

(1,200)

(1,314)

Consolidated NOI, net of non-controlling interests

205,965

230,260

204,765

228,946

Net (loss) income from unconsolidated joint ventures

(36,455)

13,846

366

4,676

Interest expense

47,555

73,472

9,251

12,742

Depreciation and amortization

77,580

113,340

13,665

18,195

Impairment charges

33,240

12,267

1,890

2,453

Preferred share expense

13,710

16,487

685

824

Other expense, net

10,844

16,358

2,250

2,988

(Gain) loss on disposition of real estate, net

(9,229)

(15,205)

(1,778)

1,515

Unconsolidated NOI

$137,245

$230,565

26,329

43,393

Total Consolidated + Unconsolidated NOI

231,094

272,339

Less: Non-Same Store NOI adjustments

(7,098)

(21,620)

Total SSNOI including redevelopment

223,996

250,719

Less: Redevelopment Same Store NOI adjustments

(15,791)

(16,157)

Total SSNOI excluding redevelopment

$208,205

$234,562

SSNOI % Change including redevelopment

(10.7%)

SSNOI % Change excluding redevelopment

(11.2%)

View source version on businesswire.com: https://www.businesswire.com/news/home/20201027005142/en/

CONTACT: Conor Fennerty, EVP and Chief Financial Officer 216-755-5500