Business Wire | Feb 18, 2021 06:30AM EST

SITE Centers Reports Fourth Quarter and Year-End 2020 Operating Results

Feb. 18, 2021

BEACHWOOD, Ohio--(BUSINESS WIRE)--Feb. 18, 2021--SITE Centers Corp. (NYSE:SITC) today announced operating results for the quarter and year ended December 31, 2020.

"Leasing activity and collections momentum continued to build through year-end and we are encouraged by the pace of recovery in our operations," commented David R. Lukes, President and Chief Executive Officer. "This level of activity, coupled with our financial position, with no material near-term maturities or capital commitments, and our focused portfolio targeting the highest household income communities in the United States gives me confidence in our Company's outlook for sustainable growth."

Results for the Quarter

* Fourth quarter net loss attributable to common shareholders was $6.4 million, or $0.03 per diluted share, as compared to net income of $9.7 million, or $0.05 per diluted share, in the year-ago period. The year-over-year decrease in net income was primarily attributable to the impact of the COVID-19 pandemic and lower joint venture fees related to the sale of the Company's stake in the DDRTC joint venture. * Fourth quarter operating funds from operations attributable to common shareholders ("Operating FFO" or "OFFO") was $48.3 million, or $0.25 per diluted share, compared to $62.3 million, or $0.33 per diluted share, in the year-ago period. The year-over-year decrease was primarily attributable to the impact of the COVID-19 pandemic and lower joint venture fees related to the sale of the Company's stake in the DDRTC joint venture.

Results for the Year

* Net income attributable to common shareholders for the year ended December 31, 2020, was $15.2 million, or $0.08 per diluted share, which compares to net income of $61.3 million, or $0.33 per diluted share for the prior year. * Operating FFO was $0.99 per diluted share for the full year 2020, which compares to $1.27 per diluted share for 2019.

Significant Fourth Quarter and Recent Activity

* Fourth quarter of 2020 total leasing volume was the highest produced since the third quarter of 2018 and represented a year-over-year increase of 51% as compared to the fourth quarter of 2019. * 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) $5.4 million in cash. 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. * On November 20, 2020, the Company transferred its common and preferred equity interest in the BRE DDR III joint venture to an affiliate of Blackstone in exchange for White Oak Village and Midtowne Park and $4.9 million in cash. These two properties are subject to existing mortgage loans, which had an aggregate outstanding principal balance of $50.0 million as of November 20, 2020. * On February 2, 2021, the Company, along with its partners, sold a parcel of undeveloped land in Richmond Hill, Ontario. SITE Centers' share of net proceeds totaled approximately $22 million after accounting for customary closing costs and foreign currency translation. As of December 31, 2020, the Company's net investment had a book value of $3.3 million. Subsequent to the transaction, the Company has no other investments outside the continental United States. * On February 18, 2021 the Company declared its first quarter 2021 common stock dividend of $0.11 per share. The common stock dividend is payable on April 6, 2021 to shareholders of record at the close of business on March 18, 2021. The Board of Directors has not made any decisions with respect to the dividend policy beyond the first quarter of 2021.

Significant Full-Year Activity

* Sold two unconsolidated shopping centers and land parcels for an aggregate sales price of $36.2 million, or $14.1 million at SITE Centers' share, including $7.5 million from the repayment of a mezzanine loan. * Completed the sale of SITE Centers' 15% stake in the DDRTC Joint Venture to its partner, TIAA-CREF, which resulted in net proceeds to the Company of $140.4 million. * Repaid $200 million aggregate principal amount of 4.625% senior unsecured notes due 2022. The Company recorded a charge in connection with the notes' prepayment of $17.2 million primarily related to prepayment penalties. * Repurchased 0.8 million of its common shares for $7.5 million. The shares were repurchased at a weighted-average price of $9.18 per share. * Issued the Company's sixth Corporate Responsibility and Sustainability Report (www.sitecenters.com/2019CSR). This report was completed in alignment with the Global Reporting Initiative (GRI) and with the Sustainability Accounting Standards Board (SASB) metrics and frameworks and provides updates on the annual results of the Company's corporate responsibility and sustainability programs. * Included in Newsweek's annual list of America's Most Responsible Companies for the second consecutive year. * Included in Bloomberg Gender Equality Index which tracks performance of companies committed to gender equality for the second consecutive year.

Key Quarterly Operating Results

* Reported a decrease of 11.8% and 10.9% in SSNOI on a pro rata basis for the fourth quarter of 2020 and for the year ended December 31, 2020, respectively, excluding redevelopment, primarily due to the impact of the COVID-19 pandemic. Including redevelopment, SSNOI decreased by 12.0% and 11.1% on a pro rata basis for the quarter and year ended December 31, 2020, respectively. * Generated new leasing spreads of 8.0% and renewal leasing spreads of 2.7%, both on a pro rata basis, for the trailing twelve-month period and new leasing spreads of -3.8% and renewal leasing spreads of -1.9%, both on a pro rata basis, for the fourth quarter of 2020. Fourth quarter renewal spreads were impacted by the Company's decision to execute a short-term renewal with one anchor in order to maintain occupancy. * Reported a leased rate of 91.6% at December 31, 2020, compared to 91.9% at September 30, 2020 and 93.8% at December 31, 2019, in each case on a pro rata basis. The sequential decline was primarily related to the bankruptcy of Steinmart and related store closures. * As of December 31, 2020, the signed but not opened spread was 290 basis points representing $12.8 million of annualized base rent on a pro rata basis. * Annualized base rent per occupied square foot on a pro rata basis was $18.50 at December 31, 2020, compared to $18.25 at December 31, 2019.

COVID-19 Update

* SITE Centers continues to work with tenants to maximize their ability to provide goods and services to customers in accordance with phased openings in the municipalities where the Company operates as well as other public health measures and practices. Efforts include facilitating curbside and online purchase pick-up, utilization of social media platforms, and on site promotional programs and marketing. Our property operations team continues to monitor CDC and local governmental health agencies to ensure property level practices are in line with best practices and engage with property level vendors in accordance with its Vendor COVID Operating Protocol. * As of February 12, 2021, 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 98% as of October 23, 2020. * As of February 12, 2021, the Company's tenants had paid approximately 94% of fourth quarter 2020 and 94% of January 2021 rent. The payment rates for the Company's tenants, at the Company's share and based on average base rents are reflected as follows:

2Q20 3Q20 4Q20 January 2021

As of February 12, 2021 79% 88% 94% 94%

As of October 23, 2020 70% 84% 90% N/A

As of July 24, 2020 64% 71% N/A N/A

* As of February 12, 2021, agreed upon rent deferral arrangements with tenants that remain unpaid represented 11% of second quarter 2020 rents, 8% of third quarter 2020 rents and 2% of fourth quarter rents. Deferral arrangements represent 1% of January 2021 rents.

GuidanceThe Company estimates net income attributable to common shareholders for 2021 to be from $(0.06) to $0.05 per diluted share and Operating FFO to be $0.90 to $1.00 per diluted share. RVI disposition and refinancing fees, debt extinguishment and mark-to-market adjustments of equity awards are excluded from guidance.

Reconciliation of Net Income Attributable to Common Shareholders to FFO and Operating FFO estimates:

FY 2021E Per Share - Diluted

Net income attributable to Common Shareholders ($0.06) - $0.05

Depreciation and amortization of real estate 0.86 - 0.89

Equity in net (income) of JVs (0.01)

JVs' FFO 0.08 - 0.10

FFO (NAREIT) and Operating FFO $0.90 - $1.00

Other key assumptions for 2021 guidance include:

FY2021E

Joint Venture fee income $11 - $15 million

RVI fee income (excluding disposition fees) (1) $13 - $17 million

(1)

Consistent with 2019 and 2020, guidance excludes impact of disposition and refinancing fees from RVI for the full year.

About SITE Centers Corp.SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. 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 InformationThe Company will hold its quarterly conference call today at 8:00 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 4946984 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 10150669 through March 18, 2021. Copies of the Company's Supplemental package and earnings slide presentation are available on the Company's website.

Non-GAAP MeasuresFunds 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.

In calculating the expected range for or amount of net (loss) income attributable to common shareholders to estimate projected FFO and Operating FFO for future periods, the Company does not include a projection of gain and losses from the disposition of real estate property, potential impairments and reserves of real estate property and related investments, debt extinguishment costs, certain transaction costs or certain fee income. Other real estate companies may calculate expected 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 HarborSITE 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; 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; our ability to maintain REIT status; and the finalization of the financial statements for the period ended 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.

(1) Consistent with 2019 and 2020, guidance excludes impact of disposition and refinancing fees from RVI for the full year.

About SITE Centers Corp.SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. 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 InformationThe Company will hold its quarterly conference call today at 8:00 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 4946984 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 10150669 through March 18, 2021. Copies of the Company's Supplemental package and earnings slide presentation are available on the Company's website.

Non-GAAP MeasuresFunds 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.

In calculating the expected range for or amount of net (loss) income attributable to common shareholders to estimate projected FFO and Operating FFO for future periods, the Company does not include a projection of gain and losses from the disposition of real estate property, potential impairments and reserves of real estate property and related investments, debt extinguishment costs, certain transaction costs or certain fee income. Other real estate companies may calculate expected 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 HarborSITE 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; 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; our ability to maintain REIT status; and the finalization of the financial statements for the period ended 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.

SITE Centers Corp.

Income Statement: Consolidated Interests

in thousands, except per share

4Q20 4Q19 12M20 12M19

Revenues:

Rental income (1) $108,382 $110,866 $414,864 $443,421

Other property revenues 91 926 1,895 4,330

Business interruption income 0 0 0 885

108,473 111,792 416,759 448,636

Expenses:

Operating and maintenance 18,027 17,033 68,801 71,355

Real estate taxes 18,054 16,046 69,601 68,308

36,081 33,079 138,402 139,663



Net operating income 72,392 78,713 278,357 308,973



Other income (expense):

Fee income (2) 9,425 13,992 43,574 59,352

Interest income 1,408 4,351 11,888 18,009

Interest expense (19,117) (20,748) (77,604) (84,721)

Depreciation and amortization (45,655) (41,687) (170,669) (165,087)

General and administrative (14,339) (14,036) (52,881) (58,384) (3)

Other (expense) income, net (193) 611 (18,400) 357 (4)

Impairment charges (5,200) 0 (5,200) (3,370)

(Loss) income before earnings (1,279) 21,196 9,065 75,129 from JVs and other



Equity in net income of JVs 608 6,073 1,516 11,519

Reserve of preferred equity 0 (3,438) (19,393) (15,544) interests

(Loss) gain on sale and change in control of (171) 0 45,464 0 interests, net

Gain on disposition of real 76 293 1,069 31,380 estate, net

Tax (expense) benefit (272) 168 (1,131) (659)

Net (loss) income (1,038) 24,292 36,590 101,825

Non-controlling interests (247) (290) (869) (1,126)

Net (loss) income SITE (1,285) 24,002 35,721 100,699 Centers

Write-off of preferred share 0 (7,176) 0 (7,176) original issuance costs

Preferred dividends (5,133) (7,082) (20,531) (32,231)

Net (loss) income Common ($6,418) $9,744 $15,190 $61,292 Shareholders



Weighted average shares - 193,248 190,360 193,336 183,026 Basic - EPS

Assumed conversion of diluted 0 162 441 228 securities

Weighted average shares - 193,248 190,522 193,777 183,254 Basic & Diluted - EPS



Earnings per common share - $(0.03) $0.05 $0.08 $0.33 Basic

Earnings per common share - $(0.03) $0.05 $0.08 $0.33 Diluted



(1) Rental income:

Minimum rents $75,412 $76,121 $303,828 $301,252

Ground lease minimum rents 6,076 5,213 22,395 20,272

Recoveries 26,760 25,529 107,132 106,995

Uncollectible revenue (3,989) 205 (31,908) 27

Percentage and overage rent 1,172 1,278 2,942 4,117

Ancillary and other rental 1,725 2,306 5,984 7,539 income

Lease termination fees 1,226 214 4,491 3,219



(2) Fee Income:

JV and other fees 3,771 7,399 19,247 29,305

RVI fees 5,133 6,401 21,185 24,895

RVI disposition fees 521 192 3,142 3,352

RVI refinancing fee 0 0 0 1,800



(3) Mark-to-market adjustment (929) 928 688 (1,891) (PRSUs)

Executive separation charge 0 0 (1,650) 0



(4) Other income (expense), net

Transaction and other (193) 611 (1,214) 775 expense, net

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

SITE Centers Corp.

Reconciliation: Net Income to FFO and Operating FFO

and Other Financial Information

in thousands, except per share

4Q20

4Q19

12M20

12M19

Net (loss) income attributable to Common Shareholders

($6,418)

$9,744

$15,190

$61,292

Depreciation and amortization of real estate

44,233

39,889

165,122

158,813

Equity in net income of JVs

(608)

(6,073)

(1,516)

(11,519)

JVs' FFO

5,142

9,359

19,671

33,528

Non-controlling interests

7

28

35

113

Impairment of real estate

5,200

0

5,200

3,370

Reserve of preferred equity interests

0

3,438

19,393

15,544

Loss (gain) on sale and change in control of interests, net

171

0

(45,464)

0

Gain on disposition of real estate, net

(76)

(293)

(1,069)

(31,380)

FFO attributable to Common Shareholders

$47,651

$56,092

$176,562

$229,761

RVI disposition and refinancing fees

(521)

(192)

(3,142)

(5,152)

Mark-to-market adjustment (PRSUs)

929

(928)

(688)

1,891

Hurricane property income, net

0

0

0

(885)

Executive separation charge

0

0

1,650

0

Debt extinguishment, transaction, net

193

189

18,400

632

Joint ventures - debt extinguishment, other

0

(53)

42

(60)

Write-off of preferred share original issuance costs

0

7,176

0

7,176

Total non-operating items, net

601

6,192

16,262

3,602

Operating FFO attributable to Common Shareholders

$48,252

$62,284

$192,824

$233,363

Weighted average shares & units - Basic: FFO & OFFO

193,388

190,501

193,477

183,168

Assumed conversion of dilutive securities

449

162

441

228

Weighted average shares & units - Diluted: FFO & OFFO

193,837

190,663

193,918

183,396

FFO per share - Basic

$0.25

$0.29

$0.91

$1.25

FFO per share - Diluted

$0.25

$0.29

$0.91

$1.25

Operating FFO per share - Basic

$0.25

$0.33

$1.00

$1.27

Operating FFO per share - Diluted

$0.25

$0.33

$0.99

$1.27

Common stock dividends declared, per share

$0.05

$0.20

$0.25

$0.80

Capital expenditures (SITE Centers share):

Development and redevelopment costs

2,873

15,052

20,304

56,647

Maintenance capital expenditures

1,328

2,871

12,317

12,544

Tenant allowances and landlord work

6,337

12,435

24,582

36,040

Leasing commissions

1,164

1,891

3,577

5,516

Construction administrative costs (capitalized)

821

1,272

3,016

3,756

Certain non-cash items (SITE Centers share):

Straight-line rent

(1,455)

(76)

(1,845)

1,322

Straight-line fixed CAM

167

195

620

776

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

1,530

1,266

5,310

4,594

Straight-line ground rent expense

(40)

(69)

(207)

(1,089)

Debt fair value and loan cost amortization

(1,199)

(1,128)

(4,784)

(4,557)

Capitalized interest expense

145

329

937

1,280

Stock compensation expense

(2,936)

(146)

(8,024)

(9,241)

Non-real estate depreciation expense

(1,357)

(1,746)

(5,295)

(6,027)

SITE Centers Corp.

Reconciliation: Net Income to FFO and Operating FFO

and Other Financial Information

in thousands, except per share

4Q20 4Q19 12M20 12M19

Net (loss) income attributable to ($6,418) $9,744 $15,190 $61,292Common Shareholders

Depreciation and amortization of 44,233 39,889 165,122 158,813real estate

Equity in net income of JVs (608) (6,073) (1,516) (11,519)

JVs' FFO 5,142 9,359 19,671 33,528

Non-controlling interests 7 28 35 113

Impairment of real estate 5,200 0 5,200 3,370

Reserve of preferred equity 0 3,438 19,393 15,544interests

Loss (gain) on sale and change in 171 0 (45,464) 0control of interests, net

Gain on disposition of real estate, (76) (293) (1,069) (31,380)net

FFO attributable to Common $47,651 $56,092 $176,562 $229,761Shareholders

RVI disposition and refinancing fees (521) (192) (3,142) (5,152)

Mark-to-market adjustment (PRSUs) 929 (928) (688) 1,891

Hurricane property income, net 0 0 0 (885)

Executive separation charge 0 0 1,650 0

Debt extinguishment, transaction, 193 189 18,400 632net

Joint ventures - debt 0 (53) 42 (60)extinguishment, other

Write-off of preferred share 0 7,176 0 7,176original issuance costs

Total non-operating items, net 601 6,192 16,262 3,602

Operating FFO attributable to Common $48,252 $62,284 $192,824 $233,363Shareholders



Weighted average shares & units - 193,388 190,501 193,477 183,168Basic: FFO & OFFO

Assumed conversion of dilutive 449 162 441 228securities

Weighted average shares & units - 193,837 190,663 193,918 183,396Diluted: FFO & OFFO



FFO per share - Basic $0.25 $0.29 $0.91 $1.25

FFO per share - Diluted $0.25 $0.29 $0.91 $1.25

Operating FFO per share - Basic $0.25 $0.33 $1.00 $1.27

Operating FFO per share - Diluted $0.25 $0.33 $0.99 $1.27

Common stock dividends declared, per $0.05 $0.20 $0.25 $0.80share



Capital expenditures (SITE Centers share):

Development and redevelopment costs 2,873 15,052 20,304 56,647

Maintenance capital expenditures 1,328 2,871 12,317 12,544

Tenant allowances and landlord work 6,337 12,435 24,582 36,040

Leasing commissions 1,164 1,891 3,577 5,516

Construction administrative costs 821 1,272 3,016 3,756(capitalized)



Certain non-cash items (SITE Centers share):

Straight-line rent (1,455) (76) (1,845) 1,322

Straight-line fixed CAM 167 195 620 776

Amortization of (above)/below-market 1,530 1,266 5,310 4,594rent, net

Straight-line ground rent expense (40) (69) (207) (1,089)

Debt fair value and loan cost (1,199) (1,128) (4,784) (4,557)amortization

Capitalized interest expense 145 329 937 1,280

Stock compensation expense (2,936) (146) (8,024) (9,241)

Non-real estate depreciation expense (1,357) (1,746) (5,295) (6,027)

SITE Centers Corp.

Balance Sheet: Consolidated Interests

$ in thousands

At Period End

4Q20

4Q19

Assets:

Land

$953,556

$881,397

Buildings

3,488,499

3,277,440

Fixtures and tenant improvements

509,866

491,312

4,951,921

4,650,149

Depreciation

(1,427,057)

(1,289,148)

3,524,864

3,361,001

Construction in progress and land

37,467

59,663

Real estate, net

3,562,331

3,420,664

Investments in and advances to JVs

77,297

181,906

Investment in and advances to affiliate (1)

190,035

190,105

Receivable - preferred equity interests, net

0

112,589

Cash

69,742

16,080

Restricted cash

4,672

3,053

Notes receivable

0

7,541

Receivables and straight-line (2)

73,517

60,594

Intangible assets, net (3)

111,022

79,813

Other assets, net

19,668

21,277

Total Assets

4,108,284

4,093,622

Liabilities and Equity:

Revolving credit facilities

135,000

5,000

Unsecured debt

1,449,613

1,647,963

Unsecured term loan

99,635

99,460

Secured debt

249,260

94,874

1,933,508

1,847,297

Dividends payable

14,844

44,036

Other liabilities (4)

215,109

220,811

Total Liabilities

2,163,461

2,112,144

Preferred shares

325,000

325,000

Common shares

19,400

19,382

Paid-in capital

5,705,164

5,700,400

Distributions in excess of net income

(4,099,534)

(4,066,099)

Deferred compensation

5,479

7,929

Other comprehensive income

(2,682)

(491)

Common shares in treasury at cost

(11,319)

(7,707)

Non-controlling interests

3,315

3,064

Total Equity

1,944,823

1,981,478

Total Liabilities and Equity

$4,108,284

$4,093,622

(1)

Preferred investment in RVI

$190,000

$190,000

Receivable from RVI

35

105

(2)

SL rents (including fixed CAM), net

30,552

31,909

(3)

Operating lease right of use assets

20,604

$21,792

(4)

Operating lease liabilities

39,794

40,725

Below-market leases, net

57,348

46,961

SITE Centers Corp.

Balance Sheet: Consolidated Interests

$ in thousands

At Period End

4Q20 4Q19

Assets:

Land $953,556 $881,397

Buildings 3,488,499 3,277,440

Fixtures and tenant improvements 509,866 491,312

4,951,921 4,650,149

Depreciation (1,427,057) (1,289,148)

3,524,864 3,361,001

Construction in progress and land 37,467 59,663

Real estate, net 3,562,331 3,420,664



Investments in and advances to JVs 77,297 181,906

Investment in and advances to affiliate (1) 190,035 190,105

Receivable - preferred equity interests, net 0 112,589

Cash 69,742 16,080

Restricted cash 4,672 3,053

Notes receivable 0 7,541

Receivables and straight-line (2) 73,517 60,594

Intangible assets, net (3) 111,022 79,813

Other assets, net 19,668 21,277

Total Assets 4,108,284 4,093,622



Liabilities and Equity:

Revolving credit facilities 135,000 5,000

Unsecured debt 1,449,613 1,647,963

Unsecured term loan 99,635 99,460

Secured debt 249,260 94,874

1,933,508 1,847,297

Dividends payable 14,844 44,036

Other liabilities (4) 215,109 220,811

Total Liabilities 2,163,461 2,112,144



Preferred shares 325,000 325,000

Common shares 19,400 19,382

Paid-in capital 5,705,164 5,700,400

Distributions in excess of net income (4,099,534) (4,066,099)

Deferred compensation 5,479 7,929

Other comprehensive income (2,682) (491)

Common shares in treasury at cost (11,319) (7,707)

Non-controlling interests 3,315 3,064

Total Equity 1,944,823 1,981,478



Total Liabilities and Equity $4,108,284 $4,093,622



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

Receivable from RVI 35 105



(2) SL rents (including fixed CAM), net 30,552 31,909



(3) Operating lease right of use assets 20,604 $21,792



(4) Operating lease liabilities 39,794 40,725

Below-market leases, net 57,348 46,961

SITE Centers Corp.

Reconciliation of Net (Loss) Income Attributable to SITE to Same Store NOI

$ in thousands

4Q20

4Q19

4Q20

4Q19

SITE Centers at 100%

At SITE Centers Share(Non-GAAP)

GAAP Reconciliation:

Net (loss) income attributable to SITE Centers

($1,285)

$24,002

($1,285)

$24,002

Fee income

(9,425)

(13,992)

(9,425)

(13,992)

Interest income

(1,408)

(4,351)

(1,408)

(4,351)

Interest expense

19,117

20,748

19,117

20,748

Depreciation and amortization

45,655

41,687

45,655

41,687

General and administrative

14,339

14,036

14,339

14,036

Other expense (income), net

193

(611)

193

(611)

Impairment charges

5,200

0

5,200

0

Equity in net income of joint ventures

(608)

(6,073)

(608)

(6,073)

Reserve of preferred equity interests

0

3,438

0

3,438

Tax expense

272

(168)

272

(168)

Loss on sale and change in control of interests, net

171

0

171

0

Gain on disposition of real estate, net

(76)

(293)

(76)

(293)

Income from non-controlling interests

247

290

247

290

Consolidated NOI

72,392

78,713

72,392

78,713

SITE Centers' consolidated JV

0

0

(451)

(473)

Consolidated NOI, net of non-controlling interests

72,392

78,713

71,941

78,240

Net (loss) income from unconsolidated joint ventures

(915)

63,196

526

5,828

Interest expense

12,455

20,415

2,817

3,666

Depreciation and amortization

22,199

36,409

4,586

5,991

Impairment charges

0

1,540

0

77

Preferred share expense

1,998

5,345

100

268

Other expense, net

2,952

4,205

696

990

Gain on disposition of real estate, net

(28)

(51,806)

(6)

(2,665)

Unconsolidated NOI

$38,661

$79,304

8,719

14,155

Total Consolidated + Unconsolidated NOI

80,660

92,395

Less: Non-Same Store NOI adjustments

456

(244)

Total SSNOI including redevelopment

81,116

92,151

Less: Redevelopment Same Store NOI adjustments

(2,575)

(3,093)

Total SSNOI excluding redevelopment

$78,541

$89,058

SSNOI % Change including redevelopment

(12.0%)

SSNOI % Change excluding redevelopment

(11.8%)

SITE Centers Corp.

Reconciliation of Net (Loss) Income Attributable to SITE to Same Store NOI

$ in thousands

4Q20 4Q19 4Q20 4Q19

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

GAAP Reconciliation:

Net (loss) income attributable to ($1,285) $24,002 ($1,285) $24,002SITE Centers

Fee income (9,425) (13,992) (9,425) (13,992)

Interest income (1,408) (4,351) (1,408) (4,351)

Interest expense 19,117 20,748 19,117 20,748

Depreciation and amortization 45,655 41,687 45,655 41,687

General and administrative 14,339 14,036 14,339 14,036

Other expense (income), net 193 (611) 193 (611)

Impairment charges 5,200 0 5,200 0

Equity in net income of joint (608) (6,073) (608) (6,073)ventures

Reserve of preferred equity 0 3,438 0 3,438interests

Tax expense 272 (168) 272 (168)

Loss on sale and change in control 171 0 171 0of interests, net

Gain on disposition of real estate, (76) (293) (76) (293)net

Income from non-controlling 247 290 247 290interests

Consolidated NOI 72,392 78,713 72,392 78,713

SITE Centers' consolidated JV 0 0 (451) (473)

Consolidated NOI, net of 72,392 78,713 71,941 78,240non-controlling interests



Net (loss) income from (915) 63,196 526 5,828unconsolidated joint ventures

Interest expense 12,455 20,415 2,817 3,666

Depreciation and amortization 22,199 36,409 4,586 5,991

Impairment charges 0 1,540 0 77

Preferred share expense 1,998 5,345 100 268

Other expense, net 2,952 4,205 696 990

Gain on disposition of real estate, (28) (51,806) (6) (2,665)net

Unconsolidated NOI $38,661 $79,304 8,719 14,155



Total Consolidated + Unconsolidated 80,660 92,395NOI

Less: Non-Same Store NOI 456 (244)adjustments

Total SSNOI including redevelopment 81,116 92,151

Less: Redevelopment Same Store NOI (2,575) (3,093)adjustments

Total SSNOI excluding redevelopment $78,541 $89,058



SSNOI % Change including (12.0%) redevelopment

SSNOI % Change excluding (11.8%) redevelopment

SITE Centers Corp.

Reconciliation of Net Income Attributable to SITE to Same Store NOI

$ in thousands

12M20

12M19

12M20

12M19

SITE Centers at 100%

At SITE Centers Share(Non-GAAP)

GAAP Reconciliation:

Net income attributable to SITE Centers

$35,721

$100,699

$35,721

$100,699

Fee income

(43,574)

(59,352)

(43,574)

(59,352)

Interest income

(11,888)

(18,009)

(11,888)

(18,009)

Interest expense

77,604

84,721

77,604

84,721

Depreciation and amortization

170,669

165,087

170,669

165,087

General and administrative

52,881

58,384

52,881

58,384

Other expense (income), net

18,400

(357)

18,400

(357)

Impairment charges

5,200

3,370

5,200

3,370

Equity in net income of joint ventures

(1,516)

(11,519)

(1,516)

(11,519)

Reserve of preferred equity interests

19,393

15,544

19,393

15,544

Tax expense

1,131

659

1,131

659

Gain on sale and change in control of interests, net

(45,464)

0

(45,464)

0

Gain on disposition of real estate, net

(1,069)

(31,380)

(1,069)

(31,380)

Income from non-controlling interests

869

1,126

869

1,126

Consolidated NOI

278,357

308,973

278,357

308,973

SITE Centers' consolidated JV

0

0

(1,652)

(1,787)

Consolidated NOI, net of non-controlling interests

278,357

308,973

276,705

307,186

Net (loss) income from unconsolidated joint ventures

(37,370)

77,042

892

10,504

Interest expense

60,010

93,887

12,068

16,408

Depreciation and amortization

99,779

149,749

18,251

24,186

Impairment charges

33,240

13,807

1,890

2,530

Preferred share expense

15,708

21,832

785

1,092

Other expense, net

13,796

20,563

2,946

3,978

Gain loss on disposition of real estate, net

(9,257)

(67,011)

(1,784)

(4,180)

Unconsolidated NOI

$175,906

$309,869

35,048

54,518

Total Consolidated + Unconsolidated NOI

311,753

361,704

Less: Non-Same Store NOI adjustments

7,543

(2,347)

Total SSNOI including redevelopment

319,296

359,357

Less: Redevelopment Same Store NOI adjustments

(10,620)

(13,017)

Total SSNOI excluding redevelopment

$308,676

$346,340

SSNOI % Change including redevelopment

(11.1%)

SSNOI % Change excluding redevelopment

(10.9%)

View source version on businesswire.com: https://www.businesswire.com/news/home/20210218005149/en/

CONTACT: SITE Centers Corp. Conor Fennerty, EVP and Chief Financial Officer 216-755-5500