Business Wire | Oct 25, 2021 06:30AM EDT

SITE Centers Reports Third Quarter 2021 Operating Results

Oct. 25, 2021

BEACHWOOD, Ohio--(BUSINESS WIRE)--Oct. 25, 2021--SITE Centers Corp. (NYSE: SITC), an owner of open-air shopping centers located in suburban, high household income communities, announced today operating results for the quarter ended September 30, 2021.

"Third quarter results and recent activity highlight SITE Centers' continued success and momentum on multiple fronts: new leasing volume was the highest for any quarter in over two years, the Company met 2021 investment goals with the acquisition of Hammond Springs, and in October Retail Value Inc. declared and paid $190 million of preferred dividends to SITE Centers," commented David R. Lukes, President and Chief Executive Officer. "We believe continued operational and investment momentum, along with the distribution on our preferred investment in RVI, position SITE Centers for a multi-year period of sustainable growth."

Results for the Quarter

* Third quarter net income attributable to common shareholders was $25.3 million, or $0.12 per diluted share, as compared to net income of $2.2 million, or $0.01 per diluted share, in the year-ago period. The year-over-year increase in net income was primarily attributable to lower uncollectible revenue related to the COVID-19 pandemic, lower general and administrative expenses, gains reported from asset sales and higher disposition fees earned from Retail Value Inc. ('RVI"), partially offset by 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. * Third quarter operating funds from operations attributable to common shareholders ("Operating FFO" or "OFFO") was $61.4 million, or $0.29 per diluted share, compared to $43.5 million, or $0.23 per diluted share, in the year-ago period. The year-over-year increase was primarily attributable to lower uncollectible revenue related to the COVID-19 pandemic and lower general and administrative expenses, partially offset by lower interest income. Third quarter results included $1.6 million of net revenue at SITE Centers' share related to prior periods primarily from cash basis tenants.

Significant Third Quarter and Recent Activity

* In September 2021, acquired Hammond Springs (Atlanta, GA) for $31.0 million. * Sold one unconsolidated shopping center and two wholly-owned land parcels for an aggregate sales price of $34.2 million, totaling $21.1 million at SITE Centers' share. * In the third quarter of 2021, the Company offered and sold 720,076 common shares on a forward basis under its $250 million ATM program at a weighted-average price of $15.89 per share generating expected gross proceeds before issuance costs of $11.4 million. The shares may be settled at any time before the settlement date, September 9, 2022. Year to date, the Company has offered and sold 1,700,472 shares on a forward basis under its ATM program at a weighted average price of $15.43 per share before issuance costs generating expected gross proceeds of $26.2 million with no shares settled to date. * On October 6, 2021, SITE Centers received a distribution of $190 million on the RVI Series A Preferred Shares which represents the full amount expected to be paid by RVI on account of the Company's preferred investment. * In October 2021, the Company repaid $87.6 million of mortgage debt, which was scheduled to mature in January 2022.

Key Quarterly Operating Results

* Reported an increase of 21.6% in SSNOI on a pro rata basis for the third quarter of 2021, including redevelopment, as compared to the year-ago period. The third quarter 2021 results were favorably impacted by lower year-over-year uncollectible revenue and prior period rent collections from cash basis tenants. * Generated new leasing spreads of 7.3% and renewal leasing spreads of 0.6%, both on a pro rata basis, for the trailing twelve-month period ended September 30, 2021 and new leasing spreads of 18.1% and renewal leasing spreads of 2.6%, both on a pro rata basis, for the third quarter of 2021. * Reported a leased rate of 92.3% at September 30, 2021 on a pro rata basis, compared to 91.6% on a pro rata basis at December 31, 2020 and 91.9% at September 30, 2020. * As of September 30, 2021, the signed but not opened spread was 210 basis points representing $11.9 million of annualized base rent on a pro rata basis. * Annualized base rent per occupied square foot on a pro rata basis was $18.44 at September 30, 2021, compared to $18.53 at September 30, 2020.

COVID-19 Update

* As of October 15, 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 October 15, 2021, the Company's tenants had paid approximately 99% of third 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 3Q21

As of October 15, 2021 91% 96% 97% 98% 99% 99%

As of July 21, 2021 89% 93% 97% 97% 98% N/A

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

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

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

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

* As of October 15, 2021, agreed upon rent deferral arrangements with tenants that remain unpaid represented approximately 1% of 2020 rents. Agreed upon rental deferral arrangements for the first quarter of 2021 through third 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 third 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 $0.15 - $0.20 $0.28 - $0.30Shareholders

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

Equity in net (income) of JVs (0.05) (0.06)

JVs' FFO 0.08 - 0.10 0.09 - 0.11

Gain on sale of joint venture interest, net (0.07) (0.10)(reported actual)

Impairment of real estate (reported actual) 0.03 0.03

FFO (NAREIT) $1.00 - $1.04 $1.10 - $1.11

Disposition fees (reported actual) - (0.03)

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 $1.06 - $1.10 $1.13 - $1.14

Other key assumptions for 2021 guidance include:

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

Joint Venture fee income $12 - $14 $13 - $14 million million

RVI fee income (excluding disposition $15 - $17 $16 - $17fees) (1) million million

SSNOI (2) 10.5% - 13.0% 12.5% - 14.0%

(1) Consistent with 2019 and 2020, guidance excludes impact of disposition andrefinancing 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 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 8:00 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 8760189 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 10158874 through November 25, 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 the 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 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 September 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

3Q21 3Q20 9M21 9M20

Revenues:

Rental income (1) $120,569 $95,874 $366,689 $306,482

Other property revenues 514 70 1,095 1,804

121,083 95,944 367,784 308,286

Expenses:

Operating and maintenance 18,562 15,775 58,200 50,774

Real estate taxes 19,160 16,542 58,359 51,547

37,722 32,317 116,559 102,321



Net operating income 83,361 63,627 251,225 205,965



Other income (expense):

Fee income (2) 13,358 9,610 30,264 34,149

Interest expense (19,170) (18,089) (57,701) (58,487)

Depreciation and (44,669) (41,148) (137,446) (125,014) amortization

General and administrative (11,727) (13,664) (41,547) (38,542) (3)

Other expense, net (4) (524) 3,259 (1,214) (7,727)

Impairment charges 0 0 (7,270) 0

Income before earnings from 20,629 3,595 36,311 10,344 JVs and other



Equity in net income of JVs 1,824 250 11,059 908

Adjustment (reserve) of 0 3,542 0 (19,393) preferred equity interests

Gain on sale of joint 35 82 13,943 45,635 venture interests

Gain on disposition of real 5,871 218 6,069 993 estate, net

Tax expense (202) (284) (1,057) (859)

Net income 28,157 7,403 66,325 37,628

Non-controlling interests (93) (116) (384) (621)

Net income SITE Centers 28,064 7,287 65,941 37,007

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

Preferred dividends (2,789) (5,133) (10,867) (15,399)

Net income Common $25,275 $2,154 $49,918 $21,608 Shareholders



Weighted average shares - 211,048 193,203 206,918 193,366 Basic - EPS

Assumed conversion of 1,143 162 1,156 0 diluted securities

Weighted average shares - 212,191 193,365 208,074 193,366 Basic & Diluted - EPS



Earnings per common share - $0.12 $0.01 $0.24 $0.11 Basic

Earnings per common share - $0.12 $0.01 $0.24 $0.11 Diluted



(1) Rental income:

Minimum rents $79,256 $75,158 $236,362 $225,627

Ground lease minimum rents 6,547 5,418 19,407 16,319

Percentage and overage rent 1,016 806 3,349 1,770

Straight-line rent, net 687 551 456 (269)

Amortization of (above)/ 897 1,026 2,771 3,058 below-market rent, net

Recoveries 29,441 25,833 90,518 80,371

Uncollectible revenue 1,083 (14,188) 8,268 (27,918)

Ancillary and other rental 1,586 1,194 4,427 4,260 income

Lease termination fees 56 76 1,131 3,264



(2) Fee Income:

JV and other fees 3,846 4,037 10,817 15,416

RVI fees 4,012 4,717 13,355 16,111

RVI disposition fees 5,500 856 6,092 2,622



(3) Mark-to-market adjustment 0 (289) (5,589) 1,617 (PRSUs)

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



(4) Other income (expense), net:

Transaction and other (356) (186) (707) (1,021) expense, net

Interest income (168) 3,445 (492) 10,480

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

SITE Centers Corp.

Reconciliation: Net Income to FFO and Operating FFO

and Other Financial Information

in thousands, except per share

3Q21

3Q20

9M21

9M20

Net income attributable to Common Shareholders

$25,275

$2,154

$49,918

$21,608

Depreciation and amortization of real estate

43,283

39,812

133,279

120,889

Equity in net income of JVs

(1,824)

(250)

(11,059)

(908)

JVs' FFO

5,659

4,388

17,065

14,529

Non-controlling interests

17

0

49

28

Impairment of real estate

0

0

7,270

0

(Adjustment) reserve of preferred equity interests

0

(3,542)

0

19,393

Gain on sale of joint venture interests

(35)

(82)

(13,943)

(45,635)

Gain on disposition of real estate, net

(5,871)

(218)

(6,069)

(993)

FFO attributable to Common Shareholders

$66,504

$42,262

$176,510

$128,911

RVI disposition fees

(5,500)

(856)

(6,092)

(2,622)

Mark-to-market adjustment (PRSUs)

0

289

5,589

(1,617)

Executive separation charge

0

1,650

0

1,650

Debt extinguishment, transaction, net

356

186

722

18,207

Joint ventures - debt extinguishment, other

1

0

32

42

Write-off of preferred share original issuance costs

0

0

5,156

0

Total non-operating items, net

(5,143)

1,269

5,407

15,660

Operating FFO attributable to Common Shareholders

$61,361

$43,531

$181,917

$144,571

Weighted average shares & units - Basic: FFO & OFFO

211,189

193,343

207,059

193,507

Assumed conversion of dilutive securities

1,143

21

1,156

0

Weighted average shares & units - Diluted: FFO & OFFO

212,332

193,364

208,215

193,507

FFO per share - Basic

$0.31

$0.22

$0.85

$0.67

FFO per share - Diluted

$0.31

$0.22

$0.85

$0.67

Operating FFO per share - Basic

$0.29

$0.23

$0.88

$0.75

Operating FFO per share - Diluted

$0.29

$0.23

$0.87

$0.75

Common stock dividends declared, per share

$0.12

$0.00

$0.35

$0.20

Capital expenditures (SITE Centers share):

Redevelopment costs (major and tactical)

6,143

3,289

12,698

17,431

Maintenance capital expenditures

3,153

3,394

9,449

10,989

Tenant allowances and landlord work

9,763

2,655

27,540

18,246

Leasing commissions

1,838

786

4,406

2,412

Construction administrative costs (capitalized)

805

715

2,220

2,195

Certain non-cash items (SITE Centers share):

Straight-line rent

727

739

559

(390)

Straight-line fixed CAM

149

155

416

450

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

993

1,230

3,082

3,780

Straight-line ground rent expense

(25)

(45)

(97)

(167)

Debt fair value and loan cost amortization

(1,261)

(1,233)

(3,717)

(3,587)

Capitalized interest expense

200

234

462

792

Stock compensation expense

(1,947)

(2,710)

(11,323)

(5,088)

Non-real estate depreciation expense

(1,319)

(1,270)

(3,971)

(3,938)

SITE Centers Corp.

Reconciliation: Net Income to FFO and Operating FFO

and Other Financial Information

in thousands, except per share

3Q21 3Q20 9M21 9M20

Net income attributable to Common $25,275 $2,154 $49,918 $21,608 Shareholders

Depreciation and amortization of 43,283 39,812 133,279 120,889 real estate

Equity in net income of JVs (1,824) (250) (11,059) (908)

JVs' FFO 5,659 4,388 17,065 14,529

Non-controlling interests 17 0 49 28

Impairment of real estate 0 0 7,270 0

(Adjustment) reserve of preferred 0 (3,542) 0 19,393 equity interests

Gain on sale of joint venture (35) (82) (13,943) (45,635) interests

Gain on disposition of real (5,871) (218) (6,069) (993) estate, net

FFO attributable to Common $66,504 $42,262 $176,510 $128,911 Shareholders

RVI disposition fees (5,500) (856) (6,092) (2,622)

Mark-to-market adjustment (PRSUs) 0 289 5,589 (1,617)

Executive separation charge 0 1,650 0 1,650

Debt extinguishment, transaction, 356 186 722 18,207 net

Joint ventures - debt 1 0 32 42 extinguishment, other

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

Total non-operating items, net (5,143) 1,269 5,407 15,660

Operating FFO attributable to $61,361 $43,531 $181,917 $144,571 Common Shareholders



Weighted average shares & units - 211,189 193,343 207,059 193,507 Basic: FFO & OFFO

Assumed conversion of dilutive 1,143 21 1,156 0 securities

Weighted average shares & units - 212,332 193,364 208,215 193,507 Diluted: FFO & OFFO



FFO per share - Basic $0.31 $0.22 $0.85 $0.67

FFO per share - Diluted $0.31 $0.22 $0.85 $0.67

Operating FFO per share - Basic $0.29 $0.23 $0.88 $0.75

Operating FFO per share - Diluted $0.29 $0.23 $0.87 $0.75

Common stock dividends declared, $0.12 $0.00 $0.35 $0.20 per share



Capital expenditures (SITE Centers share):

Redevelopment costs (major and 6,143 3,289 12,698 17,431 tactical)

Maintenance capital expenditures 3,153 3,394 9,449 10,989

Tenant allowances and landlord 9,763 2,655 27,540 18,246 work

Leasing commissions 1,838 786 4,406 2,412

Construction administrative costs 805 715 2,220 2,195 (capitalized)



Certain non-cash items (SITE Centers share):

Straight-line rent 727 739 559 (390)

Straight-line fixed CAM 149 155 416 450

Amortization of (above)/ 993 1,230 3,082 3,780 below-market rent, net

Straight-line ground rent expense (25) (45) (97) (167)

Debt fair value and loan cost (1,261) (1,233) (3,717) (3,587) amortization

Capitalized interest expense 200 234 462 792

Stock compensation expense (1,947) (2,710) (11,323) (5,088)

Non-real estate depreciation (1,319) (1,270) (3,971) (3,938) expense





SITE Centers Corp.

Balance Sheet: Consolidated Interests

$ in thousands

At Period End

3Q21

4Q20

Assets:

Land

$962,872

$953,556

Buildings

3,533,242

3,488,499

Fixtures and tenant improvements

544,374

509,866

5,040,488

4,951,921

Depreciation

(1,536,248)

(1,427,057)

3,504,240

3,524,864

Construction in progress and land

42,143

37,467

Real estate, net

3,546,383

3,562,331

Investments in and advances to JVs

72,684

77,297

Investment in and advances to affiliate (1)

190,121

190,035

Cash

61,924

69,742

Restricted cash

3,414

4,672

Receivables and straight-line (2)

59,910

73,517

Intangible assets, net (3)

97,474

111,022

Other assets, net

20,383

19,668

Total Assets

4,052,293

4,108,284

Liabilities and Equity:

Revolving credit facilities

0

135,000

Unsecured debt

1,451,229

1,449,613

Unsecured term loan

99,767

99,635

Secured debt

241,561

249,260

1,792,557

1,933,508

Dividends payable

28,251

14,844

Other liabilities (4)

213,018

215,109

Total Liabilities

2,033,826

2,163,461

Preferred shares

175,000

325,000

Common shares

21,110

19,400

Paid-in capital

5,942,466

5,705,164

Distributions in excess of net income

(4,123,534)

(4,099,534)

Deferred compensation

4,590

5,479

Other comprehensive income

0

(2,682)

Common shares in treasury at cost

(4,815)

(11,319)

Non-controlling interests

3,650

3,315

Total Equity

2,018,467

1,944,823

Total Liabilities and Equity

$4,052,293

$4,108,284

(1)

Preferred investment in RVI

$190,000

$190,000

Receivable from RVI

121

35

(2)

SL rents (including fixed CAM), net

31,178

30,552

(3)

Operating lease right of use assets

19,469

$20,604

(4)

Operating lease liabilities

38,889

39,794

Below-market leases, net

54,802

57,348

SITE Centers Corp.

Balance Sheet: Consolidated Interests

$ in thousands

At Period End

3Q21 4Q20

Assets:

Land $962,872 $953,556

Buildings 3,533,242 3,488,499

Fixtures and tenant improvements 544,374 509,866

5,040,488 4,951,921

Depreciation (1,536,248) (1,427,057)

3,504,240 3,524,864

Construction in progress and land 42,143 37,467

Real estate, net 3,546,383 3,562,331



Investments in and advances to JVs 72,684 77,297

Investment in and advances to affiliate (1) 190,121 190,035

Cash 61,924 69,742

Restricted cash 3,414 4,672

Receivables and straight-line (2) 59,910 73,517

Intangible assets, net (3) 97,474 111,022

Other assets, net 20,383 19,668

Total Assets 4,052,293 4,108,284



Liabilities and Equity:

Revolving credit facilities 0 135,000

Unsecured debt 1,451,229 1,449,613

Unsecured term loan 99,767 99,635

Secured debt 241,561 249,260

1,792,557 1,933,508

Dividends payable 28,251 14,844

Other liabilities (4) 213,018 215,109

Total Liabilities 2,033,826 2,163,461



Preferred shares 175,000 325,000

Common shares 21,110 19,400

Paid-in capital 5,942,466 5,705,164

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

Deferred compensation 4,590 5,479

Other comprehensive income 0 (2,682)

Common shares in treasury at cost (4,815) (11,319)

Non-controlling interests 3,650 3,315

Total Equity 2,018,467 1,944,823



Total Liabilities and Equity $4,052,293 $4,108,284



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

Receivable from RVI 121 35



(2) SL rents (including fixed CAM), net 31,178 30,552



(3) Operating lease right of use assets 19,469 $20,604



(4) Operating lease liabilities 38,889 39,794

Below-market leases, net 54,802 57,348

SITE Centers Corp.

Reconciliation of Net Income Attributable to SITE to Same Store NOI

$ in thousands

3Q21

3Q20

3Q21

3Q20

SITE Centers at 100%

At SITE Centers Share(Non-GAAP)

GAAP Reconciliation:

Net income attributable to SITE Centers

$28,064

$7,287

$28,064

$7,287

Fee income

(13,358)

(9,610)

(13,358)

(9,610)

Interest expense

19,170

18,089

19,170

18,089

Depreciation and amortization

44,669

41,148

44,669

41,148

General and administrative

11,727

13,664

11,727

13,664

Other expense (income), net

524

(3,259)

524

(3,259)

Impairment charges

0

0

0

0

Equity in net income of joint ventures

(1,824)

(250)

(1,824)

(250)

Adjustment of preferred equity interests

0

(3,542)

0

(3,542)

Tax expense

202

284

202

284

Gain on sale of joint venture interests

(35)

(82)

(35)

(82)

Gain on disposition of real estate, net

(5,871)

(218)

(5,871)

(218)

Income from non-controlling interests

93

116

93

116

Consolidated NOI

83,361

63,627

83,361

63,627

SITE Centers' consolidated JV

0

0

(284)

(320)

Consolidated NOI, net of non-controlling interests

83,361

63,627

83,077

63,307

Net income (loss) from unconsolidated joint ventures

4,863

(4,748)

1,756

59

Interest expense

10,980

14,700

2,706

2,937

Depreciation and amortization

16,605

23,901

3,805

4,250

Impairment charges

0

0

0

0

Preferred share expense

0

4,626

0

231

Other expense, net

2,832

3,246

700

694

Loss (gain) on disposition of real estate, net

455

(319)

91

(43)

Unconsolidated NOI

$35,735

$41,406

9,058

8,128

Total Consolidated + Unconsolidated NOI

92,135

71,435

Less: Non-Same Store NOI adjustments

(516)

3,923

Total SSNOI including redevelopment

91,619

75,358

Less: Redevelopment Same Store NOI adjustments

(3,643)

(2,338)

Total SSNOI excluding redevelopment

$87,976

$73,020

SSNOI % Change including redevelopment

21.6%

SSNOI % Change excluding redevelopment

20.5%

SITE Centers Corp.

Reconciliation of Net Income Attributable to SITE to Same Store NOI

$ in thousands

3Q21 3Q20 3Q21 3Q20

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

GAAP Reconciliation:

Net income attributable to SITE $28,064 $7,287 $28,064 $7,287Centers

Fee income (13,358) (9,610) (13,358) (9,610)

Interest expense 19,170 18,089 19,170 18,089

Depreciation and amortization 44,669 41,148 44,669 41,148

General and administrative 11,727 13,664 11,727 13,664

Other expense (income), net 524 (3,259) 524 (3,259)

Impairment charges 0 0 0 0

Equity in net income of joint (1,824) (250) (1,824) (250)ventures

Adjustment of preferred equity 0 (3,542) 0 (3,542)interests

Tax expense 202 284 202 284

Gain on sale of joint venture (35) (82) (35) (82)interests

Gain on disposition of real estate, (5,871) (218) (5,871) (218)net

Income from non-controlling interests 93 116 93 116

Consolidated NOI 83,361 63,627 83,361 63,627

SITE Centers' consolidated JV 0 0 (284) (320)

Consolidated NOI, net of 83,361 63,627 83,077 63,307non-controlling interests



Net income (loss) from unconsolidated 4,863 (4,748) 1,756 59joint ventures

Interest expense 10,980 14,700 2,706 2,937

Depreciation and amortization 16,605 23,901 3,805 4,250

Impairment charges 0 0 0 0

Preferred share expense 0 4,626 0 231

Other expense, net 2,832 3,246 700 694

Loss (gain) on disposition of real 455 (319) 91 (43)estate, net

Unconsolidated NOI $35,735 $41,406 9,058 8,128



Total Consolidated + Unconsolidated 92,135 71,435NOI

Less: Non-Same Store NOI adjustments (516) 3,923

Total SSNOI including redevelopment 91,619 75,358

Less: Redevelopment Same Store NOI (3,643) (2,338)adjustments

Total SSNOI excluding redevelopment $87,976 $73,020



SSNOI % Change including 21.6% redevelopment

SSNOI % Change excluding 20.5% redevelopment

SITE Centers Corp.

Reconciliation of Net Income Attributable to SITE to Same Store NOI

$ in thousands

9M21

9M20

9M21

9M20

SITE Centers at 100%

At SITE Centers Share(Non-GAAP)

GAAP Reconciliation:

Net income attributable to SITE Centers

$65,941

$37,007

$65,941

$37,007

Fee income

(30,264)

(34,149)

(30,264)

(34,149)

Interest expense

57,701

58,487

57,701

58,487

Depreciation and amortization

137,446

125,014

137,446

125,014

General and administrative

41,547

38,542

41,547

38,542

Other expense, net

1,214

7,727

1,214

7,727

Impairment charges

7,270

0

7,270

0

Equity in net income of joint ventures

(11,059)

(908)

(11,059)

(908)

Reserve of preferred equity interests

0

19,393

0

19,393

Tax expense

1,057

859

1,057

859

Gain on sale of joint venture interests

(13,943)

(45,635)

(13,943)

(45,635)

Gain on disposition of real estate, net

(6,069)

(993)

(6,069)

(993)

Income from non-controlling interests

384

621

384

621

Consolidated NOI

251,225

205,965

251,225

205,965

SITE Centers' consolidated JV

0

0

(958)

(1,200)

Consolidated NOI, net of non-controlling interests

251,225

205,965

250,267

204,765

Net income (loss) from unconsolidated joint ventures

53,525

(36,455)

9,943

366

Interest expense

32,898

47,555

8,113

9,251

Depreciation and amortization

50,309

77,580

11,480

13,665

Impairment charges

0

33,240

0

1,890

Preferred share expense

0

13,710

0

685

Other expense, net

8,806

10,844

2,186

2,250

Gain on disposition of real estate, net

(36,132)

(9,229)

(4,387)

(1,778)

Unconsolidated NOI

$109,406

$137,245

27,335

26,329

Total Consolidated + Unconsolidated NOI

277,602

231,094

Less: Non-Same Store NOI adjustments

490

9,705

Total SSNOI including redevelopment

278,092

240,799

Less: Redevelopment Same Store NOI adjustments

(11,071)

(7,478)

Total SSNOI excluding redevelopment

$267,021

$233,321

SSNOI % Change including redevelopment

15.5%

SSNOI % Change excluding redevelopment

14.4%

View source version on businesswire.com: https://www.businesswire.com/news/home/20211025005208/en/

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