Business Wire | Jul 29, 2021 06:30AM EDT

SITE Centers Reports Second Quarter 2021 Operating Results

Jul. 29, 2021

BEACHWOOD, Ohio--(BUSINESS WIRE)--Jul. 29, 2021--SITE Centers Corp. (NYSE: SITC), an owner of open-air shopping centers in affluent, suburban communities, announced today operating results for the quarter ended June 30, 2021.

"SITE Centers had a very strong second quarter with continued improvements in collections and deferral repayment trends, strong leasing activity and the deployment of nearly $50 million of capital into new acquisitions," commented David R. Lukes, President and Chief Executive Officer. "Looking forward, I am very encouraged by the strength of our leasing and operational prospects along with our balance sheet capacity to invest additional capital as opportunities arise."

Results for the Quarter

* Second quarter net income attributable to common shareholders was $13.8 million, or $0.06 per diluted share, as compared to net loss of $9.7 million, or $0.05 per diluted share, in the year-ago period. The year-over-year increase in net income was primarily attributable to the impact of the COVID-19 pandemic and gains reported from joint ventures asset sales, partially offset by the write-off of preferred share original issuance costs, lower interest income and the valuation allowance related to the Company's former preferred investments in the BRE DDR ventures, which were terminated in the fourth quarter of 2020. * Second quarter operating funds from operations attributable to common shareholders ("Operating FFO" or "OFFO") was $65.3 million, or $0.31 per diluted share, compared to $39.9 million, or $0.21 per diluted share, in the year-ago period. The year-over-year increase was primarily attributable to the impact of the COVID-19 pandemic, partially offset by lower interest income and joint venture fees related to the termination of joint ventures in 2020. Second quarter results included $7.6 million of net revenue at SITE Centers' share, related to prior periods primarily from cash basis tenants.

Significant Second Quarter and Recent Activity

* In May 2021, acquired two shopping centers for an aggregate sales price of $48.8 million, including the previously announced Shoppes at Addison Place (Delray Beach, FL) for $40.0 million. * Sold three unconsolidated shopping centers and wholly-owned land parcels for an aggregate sales price of $38.9 million, totaling $9.3 million at SITE Center's share. * Redeemed all $150.0 million aggregate liquidation preference of its outstanding 6.250% Series K cumulative Redeemable Preferred Shares. As a result of the transaction, the Company recorded a non-cash charge of $5.1 million to net income attributable to common shareholders, which represents the difference between the redemption price and the carrying amount immediately prior to redemption. * In June 2021, the Company offered and sold 980,396 common shares on a forward basis under its $250 million ATM program at a weighted average price of $15.09 per share generating expected gross proceeds before issuance costs of $14.8 million. The shares may be settled at any time before the settlement date, July 1, 2022. * Issued the Company's seventh Corporate Responsibility and Sustainability Report. The Report was completed in alignment with the Global Reporting Initiative (GRI) and with the Sustainability Accounting Standards Board (SASB) metrics and frameworks. The report intends to provide updates on the annual results of the Company's corporate responsibility and sustainability programs and can be found at https://www.sitecenters.com/2020CRS.

Key Quarterly Operating Results

* Reported an increase of 29.9% in SSNOI on a pro rata basis for the second quarter of 2021, including redevelopment. The second quarter 2021 results were favorably impacted by prior period rent collections from cash basis tenants, partially offset by the impact of lower occupancy. * Generated new leasing spreads of 5.0% and renewal leasing spreads of 1.2%, both on a pro rata basis, for the trailing twelve-month period and new leasing spreads of 5.3% and renewal leasing spreads of 5.2%, both on a pro rata basis, for the second quarter of 2021. * Reported a leased rate of 91.8% at June 30, 2021 on a pro rata basis, compared to 91.6% on a pro rata basis at December 31, 2020 and 92.4% at June 30, 2020. * As of June 30, 2021, the signed but not opened spread was 210 basis points representing $10.6 million of annualized base rent on a pro rata basis. * Annualized base rent per occupied square foot on a pro rata basis was $18.39 at June 30, 2021, compared to $18.51 at June 30, 2020. * Commenced construction on Phase II of the redevelopment of West Bay Plaza (Cleveland, OH). The $9.4 million project is anchored by Sierra Trading Post and Chase Bank and is the final phase of the property's redevelopment. * Stabilized the $4.8 million redevelopment of 1000 Van Ness (San Francisco, CA) with the opening of CGV Cinemas.

COVID-19 Update

* As of July 21, 2021, all of the Company's properties remain open and operational with 100% of tenants, at the Company's share and based on average base rents, open for business. * As of July 21, 2021, the Company's tenants had paid approximately 98% of second quarter 2021 rents. 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 1Q21 2Q21

As of July 21, 2021 89% 93% 97% 97% 98%

As of April 16, 2021 84% 89% 95% 96% N/A

As of February 12, 2021 79% 88% 94% N/A N/A

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

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

* As of July 21, 2021, agreed upon rent deferral arrangements with tenants that remain unpaid represented 2% of second quarter 2020 rents and 4% of third quarter 2020 rents. Agreed upon rental deferral arrangements for the fourth quarter of 2020 through second quarter of 2021 are immaterial.

Guidance

The Company has updated its 2021 full year guidance for net income attributable to common shareholders and Operating FFO per share to include the impact of the second quarter operating results. RVI disposition and refinancing fees, impairment charges, gains on sale of assets and debt extinguishment are excluded from guidance. The guidance update is as follows:

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

FY 2021E FY 2021E (prior) (revised) Per Share - Per Share - Diluted Diluted

Net income attributable to Common Shareholders $0.04 - $0.13 $0.15 - $0.20

Depreciation and amortization of real estate 0.80 - 0.83 0.83 - 0.86

Equity in net (income) of JVs (0.03) (0.05)

JVs' FFO 0.08 - 0.10 0.08 - 0.10

Gain on sale of joint venture interest, net (0.07) (0.07)(reported actual)

Impairment of real estate (reported actual) 0.03 0.03

FFO (NAREIT) $0.88 - $0.96 $1.00 - $1.04

Mark-to-market adjustment (PRSUs) and other 0.03 0.03(reported actual)

Write-off of Class K Preferred Share original 0.03 0.03issuance costs

Operating FFO $0.94 - $1.02 $1.06 - $1.10

Other key assumptions for 2021 guidance include:

FY 2021E (prior) FY 2021E (revised)

Joint Venture fee income $11 - $15 $12 - $14 million million

RVI fee income (excluding disposition fees) $13 - $17 $15 - $17 million(1) million

SSNOI (2) N/A 10.5% - 13.0%

(1)

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

(2)

Including redevelopment.

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. Please click here to be included in the Company's e-mail distributions for press releases and other investor news.

Conference Call and Supplemental Information

The Company will hold its quarterly conference call today at 10:00 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 8953491 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' website 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 10155994 through August 29, 2021. 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.

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. Reconciliation of 2021 SSNOI projected growth target to the most directly comparable GAAP financial measure is not provided because the Company is unable to provide such reconciliation without unreasonable effort.

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; 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 June 30, 2021. 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 Forms 10-K and 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.

(2) Including redevelopment.

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. Please click here to be included in the Company's e-mail distributions for press releases and other investor news.

Conference Call and Supplemental Information

The Company will hold its quarterly conference call today at 10:00 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 8953491 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' website 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 10155994 through August 29, 2021. 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.

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. Reconciliation of 2021 SSNOI projected growth target to the most directly comparable GAAP financial measure is not provided because the Company is unable to provide such reconciliation without unreasonable effort.

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; 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 June 30, 2021. 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 Forms 10-K and 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

2Q21 2Q20 6M21 6M20

Revenues:

Rental income (1) $126,230 $98,079 $246,120 $210,608

Other property revenues 484 181 581 1,734

126,714 98,260 246,701 212,342

Expenses:

Operating and maintenance 19,422 16,519 39,638 34,999

Real estate taxes 19,535 17,348 39,199 35,005

38,957 33,867 78,837 70,004



Net operating income 87,757 64,393 167,864 142,338



Other income (expense):

Fee income (2) 8,754 9,311 16,906 24,539

Interest expense (19,136) (19,811) (38,531) (40,398)

Depreciation and amortization (47,217) (40,873) (92,777) (83,866)

General and administrative (3) (12,425) (13,502) (29,820) (24,878)

Other expense, net (4) (324) 2,938 (690) (10,986)

Impairment charges 0 0 (7,270) 0

Income before earnings from JVs 17,409 2,456 15,682 6,749 and other



Equity in net income (loss) of 4,850 (1,513) 9,235 658 JVs

Reserve of preferred equity 0 (4,878) 0 (22,935) interests

(Loss) gain on sale of joint 0 (128) 13,908 45,553 venture interest

Gain on disposition of real 218 2 198 775 estate, net

Tax expense (490) (342) (855) (575)

Net income (loss) 21,987 (4,403) 38,168 30,225

Non-controlling interests (118) (210) (291) (505)

Net income (loss) SITE Centers 21,869 (4,613) 37,877 29,720

Write-off of preferred share (5,156) 0 (5,156) 0 original issuance costs

Preferred dividends (2,945) (5,133) (8,078) (10,266)

Net income (loss) Common $13,768 ($9,746) $24,643 $19,454 Shareholders



Weighted average shares - Basic - 211,035 193,170 204,819 193,448 EPS

Assumed conversion of diluted 846 0 808 0 securities

Weighted average shares - Basic & 211,881 193,170 205,627 193,448 Diluted - EPS



Earnings (loss) per common share $0.06 $(0.05) $0.12 $0.10 - Basic

Earnings (loss) per common share $0.06 $(0.05) $0.12 $0.10 - Diluted



(1) Rental income:

Minimum rents $78,870 $75,462 $157,106 $150,469

Ground lease minimum rents 6,516 5,432 12,860 10,900

Percentage and overage rent 1,311 363 2,333 964

Straight-line rent, net 116 571 (231) (819)

Amortization of (above)/ 870 1,007 1,874 2,031 below-market rent, net

Recoveries 30,482 27,340 61,077 54,539

Uncollectible revenue 5,787 (13,241) 7,185 (13,730)

Ancillary and other rental income 1,496 981 2,841 3,065

Lease termination fees 782 164 1,075 3,189



(2) Fee Income:

JV and other fees 3,571 3,780 6,971 11,378

RVI fees 4,591 5,321 9,343 11,395

RVI disposition fees 592 210 592 1,766



(3) Mark-to-market adjustment (PRSUs) 0 (261) (5,589) 1,906



(4) Other income (expense), net:

Transaction and other expense, (165) (612) (352) (835) net

Interest income (159) 3,550 (323) 7,035

Debt extinguishment costs, net 0 0 (15) (17,186)

SITE Centers Corp.

Reconciliation: Net Income to FFO and Operating FFO

and Other Financial Information

in thousands, except per share

2Q21

2Q20

6M21

6M20

Net income (loss) attributable to Common Shareholders

$13,768

($9,746)

$24,643

$19,454

Depreciation and amortization of real estate

45,807

39,456

89,995

81,075

Equity in net (income) loss of JVs

(4,850)

1,513

(9,235)

(658)

JVs' FFO

5,971

2,998

11,406

10,141

Non-controlling interests

17

0

33

28

Impairment of real estate

0

0

7,270

0

Reserve of preferred equity interests

0

4,878

0

22,935

Loss (gain) on sale of joint venture interest

0

128

(13,908)

(45,553)

Gain on disposition of real estate, net

(218)

(2)

(198)

(775)

FFO attributable to Common Shareholders

$60,495

$39,225

$110,006

$86,647

RVI disposition and refinancing fees

(592)

(210)

(592)

(1,766)

Mark-to-market adjustment (PRSUs)

0

261

5,589

(1,906)

Debt extinguishment, transaction, net

165

612

367

18,021

Joint ventures - debt extinguishment, other

30

0

30

42

Write-off of preferred share original issuance costs

5,156

0

5,156

0

Total non-operating items, net

4,759

663

10,550

14,391

Operating FFO attributable to Common Shareholders

$65,254

$39,888

$120,556

$101,038

Weighted average shares & units - Basic: FFO & OFFO

211,176

193,311

204,959

193,589

Assumed conversion of dilutive securities

846

0

808

0

Weighted average shares & units - Diluted: FFO & OFFO

212,022

193,311

205,767

193,589

FFO per share - Basic

$0.29

$0.20

$0.54

$0.45

FFO per share - Diluted

$0.29

$0.20

$0.53

$0.45

Operating FFO per share - Basic

$0.31

$0.21

$0.59

$0.52

Operating FFO per share - Diluted

$0.31

$0.21

$0.59

$0.52

Common stock dividends declared, per share

$0.12

$0.00

$0.23

$0.20

Capital expenditures (SITE Centers share):

Redevelopment costs (major and tactical)

3,754

5,408

6,555

14,142

Maintenance capital expenditures

4,846

5,340

6,296

7,595

Tenant allowances and landlord work

6,607

5,208

17,777

15,591

Leasing commissions

1,134

658

2,568

1,626

Construction administrative costs (capitalized)

803

640

1,415

1,480

Certain non-cash items (SITE Centers share):

Straight-line rent

133

213

(168)

(1,129)

Straight-line fixed CAM

136

149

267

298

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

964

1,148

2,089

2,550

Straight-line ground rent expense

(35)

(53)

(72)

(122)

Debt fair value and loan cost amortization

(1,277)

(1,243)

(2,457)

(2,353)

Capitalized interest expense

151

271

262

558

Stock compensation expense

(1,807)

(2,555)

(9,376)

(2,379)

Non-real estate depreciation expense

(1,345)

(1,351)

(2,652)

(2,668)

SITE Centers Corp.

Reconciliation: Net Income to FFO and Operating FFO

and Other Financial Information

in thousands, except per share

2Q21 2Q20 6M21 6M20

Net income (loss) attributable to $13,768 ($9,746) $24,643 $19,454 Common Shareholders

Depreciation and amortization of 45,807 39,456 89,995 81,075 real estate

Equity in net (income) loss of JVs (4,850) 1,513 (9,235) (658)

JVs' FFO 5,971 2,998 11,406 10,141

Non-controlling interests 17 0 33 28

Impairment of real estate 0 0 7,270 0

Reserve of preferred equity 0 4,878 0 22,935 interests

Loss (gain) on sale of joint venture 0 128 (13,908) (45,553) interest

Gain on disposition of real estate, (218) (2) (198) (775) net

FFO attributable to Common $60,495 $39,225 $110,006 $86,647 Shareholders

RVI disposition and refinancing fees (592) (210) (592) (1,766)

Mark-to-market adjustment (PRSUs) 0 261 5,589 (1,906)

Debt extinguishment, transaction, 165 612 367 18,021 net

Joint ventures - debt 30 0 30 42 extinguishment, other

Write-off of preferred share 5,156 0 5,156 0 original issuance costs

Total non-operating items, net 4,759 663 10,550 14,391

Operating FFO attributable to Common $65,254 $39,888 $120,556 $101,038 Shareholders



Weighted average shares & units - 211,176 193,311 204,959 193,589 Basic: FFO & OFFO

Assumed conversion of dilutive 846 0 808 0 securities

Weighted average shares & units - 212,022 193,311 205,767 193,589 Diluted: FFO & OFFO



FFO per share - Basic $0.29 $0.20 $0.54 $0.45

FFO per share - Diluted $0.29 $0.20 $0.53 $0.45

Operating FFO per share - Basic $0.31 $0.21 $0.59 $0.52

Operating FFO per share - Diluted $0.31 $0.21 $0.59 $0.52

Common stock dividends declared, per $0.12 $0.00 $0.23 $0.20 share



Capital expenditures (SITE Centers share):

Redevelopment costs (major and 3,754 5,408 6,555 14,142 tactical)

Maintenance capital expenditures 4,846 5,340 6,296 7,595

Tenant allowances and landlord work 6,607 5,208 17,777 15,591

Leasing commissions 1,134 658 2,568 1,626

Construction administrative costs 803 640 1,415 1,480 (capitalized)



Certain non-cash items (SITE Centers share):

Straight-line rent 133 213 (168) (1,129)

Straight-line fixed CAM 136 149 267 298

Amortization of (above)/below-market 964 1,148 2,089 2,550 rent, net

Straight-line ground rent expense (35) (53) (72) (122)

Debt fair value and loan cost (1,277) (1,243) (2,457) (2,353) amortization

Capitalized interest expense 151 271 262 558

Stock compensation expense (1,807) (2,555) (9,376) (2,379)

Non-real estate depreciation expense (1,345) (1,351) (2,652) (2,668)





SITE Centers Corp.

Balance Sheet: Consolidated Interests

$ in thousands

At Period End

2Q21

4Q20

Assets:

Land

$961,551

$953,556

Buildings

3,510,342

3,488,499

Fixtures and tenant improvements

526,902

509,866

4,998,795

4,951,921

Depreciation

(1,497,861)

(1,427,057)

3,500,934

3,524,864

Construction in progress and land

43,392

37,467

Real estate, net

3,544,326

3,562,331

Investments in and advances to JVs

75,097

77,297

Investment in and advances to affiliate (1)

190,070

190,035

Cash

57,945

69,742

Restricted cash

3,206

4,672

Receivables and straight-line (2)

61,984

73,517

Intangible assets, net (3)

101,071

111,022

Other assets, net

19,759

19,668

Total Assets

4,053,458

4,108,284

Liabilities and Equity:

Revolving credit facilities

0

135,000

Unsecured debt

1,450,691

1,449,613

Unsecured term loan

99,723

99,635

Secured debt

248,008

249,260

1,798,422

1,933,508

Dividends payable

28,248

14,844

Other liabilities (4)

209,757

215,109

Total Liabilities

2,036,427

2,163,461

Preferred shares

175,000

325,000

Common shares

21,104

19,400

Paid-in capital

5,940,528

5,705,164

Distributions in excess of net income

(4,123,347)

(4,099,534)

Deferred compensation

4,484

5,479

Other comprehensive income

0

(2,682)

Common shares in treasury at cost

(4,311)

(11,319)

Non-controlling interests

3,573

3,315

Total Equity

2,017,031

1,944,823

Total Liabilities and Equity

$4,053,458

$4,108,284

(1)

Preferred investment in RVI

$190,000

$190,000

Receivable from RVI

70

35

(2)

SL rents (including fixed CAM), net

30,365

30,552

(3)

Operating lease right of use assets

19,618

$20,604

(4)

Operating lease liabilities

39,013

39,794

Below-market leases, net

55,538

57,348

SITE Centers Corp.

Balance Sheet: Consolidated Interests

$ in thousands

At Period End

2Q21 4Q20

Assets:

Land $961,551 $953,556

Buildings 3,510,342 3,488,499

Fixtures and tenant improvements 526,902 509,866

4,998,795 4,951,921

Depreciation (1,497,861) (1,427,057)

3,500,934 3,524,864

Construction in progress and land 43,392 37,467

Real estate, net 3,544,326 3,562,331



Investments in and advances to JVs 75,097 77,297

Investment in and advances to affiliate (1) 190,070 190,035

Cash 57,945 69,742

Restricted cash 3,206 4,672

Receivables and straight-line (2) 61,984 73,517

Intangible assets, net (3) 101,071 111,022

Other assets, net 19,759 19,668

Total Assets 4,053,458 4,108,284



Liabilities and Equity:

Revolving credit facilities 0 135,000

Unsecured debt 1,450,691 1,449,613

Unsecured term loan 99,723 99,635

Secured debt 248,008 249,260

1,798,422 1,933,508

Dividends payable 28,248 14,844

Other liabilities (4) 209,757 215,109

Total Liabilities 2,036,427 2,163,461



Preferred shares 175,000 325,000

Common shares 21,104 19,400

Paid-in capital 5,940,528 5,705,164

Distributions in excess of net income (4,123,347) (4,099,534)

Deferred compensation 4,484 5,479

Other comprehensive income 0 (2,682)

Common shares in treasury at cost (4,311) (11,319)

Non-controlling interests 3,573 3,315

Total Equity 2,017,031 1,944,823



Total Liabilities and Equity $4,053,458 $4,108,284



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

Receivable from RVI 70 35



(2) SL rents (including fixed CAM), net 30,365 30,552



(3) Operating lease right of use assets 19,618 $20,604



(4) Operating lease liabilities 39,013 39,794

Below-market leases, net 55,538 57,348

SITE Centers Corp.

Reconciliation of Net Income Attributable to SITE to Same Store NOI

$ in thousands

2Q21

2Q20

2Q21

2Q20

SITE Centers at 100%

At SITE Centers Share

(Non-GAAP)

GAAP Reconciliation:

Net income (loss) attributable to SITE Centers

$21,869

($4,613)

$21,869

($4,613)

Fee income

(8,754)

(9,311)

(8,754)

(9,311)

Interest expense

19,136

19,811

19,136

19,811

Depreciation and amortization

47,217

40,873

47,217

40,873

General and administrative

12,425

13,502

12,425

13,502

Other expense (income), net

324

(2,938)

324

(2,938)

Equity in net (income) loss of joint ventures

(4,850)

1,513

(4,850)

1,513

Reserve of preferred equity interests

0

4,878

0

4,878

Tax expense

490

342

490

342

Loss on sale of joint venture interest

0

128

0

128

Gain on disposition of real estate, net

(218)

(2)

(218)

(2)

Income from non-controlling interests

118

210

118

210

Consolidated NOI

87,757

64,393

87,757

64,393

SITE Centers' consolidated JV

0

0

(306)

(404)

Consolidated NOI, net of non-controlling interests

87,757

64,393

87,451

63,989

Net income (loss) from unconsolidated joint ventures

15,146

(13,053)

3,809

(1,674)

Interest expense

10,971

15,100

2,706

2,985

Depreciation and amortization

16,587

23,575

3,791

4,219

Impairment charges

0

1,520

0

304

Preferred share expense

0

4,554

0

227

Other expense, net

3,010

2,941

744

620

(Gain) loss on disposition of real estate, net

(8,186)

(4)

(1,637)

4

Unconsolidated NOI

$37,528

$34,633

9,413

6,685

Total Consolidated + Unconsolidated NOI

96,864

70,674

Less: Non-Same Store NOI adjustments

234

4,050

Total SSNOI including redevelopment

97,098

74,724

Less: Redevelopment Same Store NOI adjustments

(4,247)

(2,566)

Total SSNOI excluding redevelopment

$92,851

$72,158

SSNOI % Change including redevelopment

29.9%

SSNOI % Change excluding redevelopment

28.7%

SITE Centers Corp.

Reconciliation of Net Income Attributable to SITE to Same Store NOI

$ in thousands

2Q21 2Q20 2Q21 2Q20

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

GAAP Reconciliation:

Net income (loss) attributable to SITE $21,869 ($4,613) $21,869 ($4,613)Centers

Fee income (8,754) (9,311) (8,754) (9,311)

Interest expense 19,136 19,811 19,136 19,811

Depreciation and amortization 47,217 40,873 47,217 40,873

General and administrative 12,425 13,502 12,425 13,502

Other expense (income), net 324 (2,938) 324 (2,938)

Equity in net (income) loss of joint (4,850) 1,513 (4,850) 1,513ventures

Reserve of preferred equity interests 0 4,878 0 4,878

Tax expense 490 342 490 342

Loss on sale of joint venture interest 0 128 0 128

Gain on disposition of real estate, net (218) (2) (218) (2)

Income from non-controlling interests 118 210 118 210

Consolidated NOI 87,757 64,393 87,757 64,393

SITE Centers' consolidated JV 0 0 (306) (404)

Consolidated NOI, net of 87,757 64,393 87,451 63,989non-controlling interests



Net income (loss) from unconsolidated 15,146 (13,053) 3,809 (1,674)joint ventures

Interest expense 10,971 15,100 2,706 2,985

Depreciation and amortization 16,587 23,575 3,791 4,219

Impairment charges 0 1,520 0 304

Preferred share expense 0 4,554 0 227

Other expense, net 3,010 2,941 744 620

(Gain) loss on disposition of real (8,186) (4) (1,637) 4estate, net

Unconsolidated NOI $37,528 $34,633 9,413 6,685



Total Consolidated + Unconsolidated NOI 96,864 70,674

Less: Non-Same Store NOI adjustments 234 4,050

Total SSNOI including redevelopment 97,098 74,724

Less: Redevelopment Same Store NOI (4,247) (2,566)adjustments

Total SSNOI excluding redevelopment $92,851 $72,158



SSNOI % Change including redevelopment 29.9%

SSNOI % Change excluding redevelopment 28.7%

SITE Centers Corp.

Reconciliation of Net Income Attributable to SITE to Same Store NOI

$ in thousands

6M21

6M20

6M21

6M20

SITE Centers at 100%

At SITE Centers Share

(Non-GAAP)

GAAP Reconciliation:

Net income attributable to SITE Centers

$37,877

$29,720

$37,877

$29,720

Fee income

(16,906)

(24,539)

(16,906)

(24,539)

Interest expense

38,531

40,398

38,531

40,398

Depreciation and amortization

92,777

83,866

92,777

83,866

General and administrative

29,820

24,878

29,820

24,878

Other expense, net

690

10,986

690

10,986

Impairment charges

7,270

0

7,270

0

Equity in net income of joint ventures

(9,235)

(658)

(9,235)

(658)

Reserve of preferred equity interests

0

22,935

0

22,935

Tax expense

855

575

855

575

Gain on sale of joint venture interest

(13,908)

(45,553)

(13,908)

(45,553)

Gain on disposition of real estate, net

(198)

(775)

(198)

(775)

Income from non-controlling interests

291

505

291

505

Consolidated NOI

167,864

142,338

167,864

142,338

SITE Centers' consolidated JV

0

0

(673)

(881)

Consolidated NOI, net of non-controlling interests

167,864

142,338

167,191

141,457

Net income (loss) from unconsolidated joint ventures

48,662

(31,707)

8,187

307

Interest expense

21,918

32,855

5,407

6,314

Depreciation and amortization

33,704

53,679

7,675

9,415

Impairment charges

0

33,240

0

1,890

Preferred share expense

0

9,084

0

454

Other expense, net

5,974

7,598

1,486

1,556

Gain on disposition of real estate, net

(36,587)

(8,910)

(4,478)

(1,735)

Unconsolidated NOI

$73,671

$95,839

18,277

18,201

Total Consolidated + Unconsolidated NOI

185,468

159,658

Less: Non-Same Store NOI adjustments

1,214

5,881

Total SSNOI including redevelopment

186,682

165,539

Less: Redevelopment Same Store NOI adjustments

(7,435)

(5,139)

Total SSNOI excluding redevelopment

$179,247

$160,400

SSNOI % Change including redevelopment

12.8%

SSNOI % Change excluding redevelopment

11.8%

View source version on businesswire.com: https://www.businesswire.com/news/home/20210729005142/en/

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