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S I T E C E N T E R S N A R E I T 2 0 1 9 1
N A R E I T P R E S E N T A T I O NN O V E M B E R 2 0 1 9
S I T E C E N T E R S N A R E I T 2 0 1 9 2
SITE Centers considers portions of the information in this presentation 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, local conditions such as supply of space or a reduction in demand for real estate in
the area; competition from other available space; 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; our ability to enter
into definitive agreements with regard to our financing and joint venture arrangements and our ability to satisfy conditions to the completion of these
arrangements; 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 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; any change in strategy; and our ability to maintain REIT status. 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 for the year ended December 31, 2018. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect
events or circumstances that arise after the date hereof.
In addition, this presentation includes certain non-GAAP financial measures. Non-GAAP financial measures should not be considered replacements
for, and should be read together with, the most comparable GAAP measures. Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP measures can be found in the appendix and in the Company’s quarterly financial supplement located at
www.sitecenters.com/investors.
S A F E H A R B O R S TAT E M E N T
S I T E C E N T E R S N A R E I T 2 0 1 9 3
S I T E C E N T E R S 5 -Y E A R B U S I N E S S P L A N
O P P O R T U N I S T I C I N V E S T I N G
B A L A N C E S H E E T S T R E N G T H
E S G C E N T E R E D M I N D S E T
C O M P E L L I N G R E D E V E L O P M E N T
P I P E L I N E
P R E M I E R O P E R A T I N G P L A T F O R M
R E T U R N F O C U S E D
A V G O F F O / N A V G R O W T H
A V G S S N O I G R O W T H
5%
2.75%
S I T E C E N T E R S N A R E I T 2 0 1 9 4
5 -Y E A R E S T I M AT E D N AV G R O W T H
R E D E V E L O P M E N T
O P P O R T U N I S T I C I N V E S T I N G
L E A S I N G
26%
10%
63%
S I T E C E N T E R S I S A L E A S I N G S T O R Y
G OA L : $7 5 M O F A N N UA L I N V ES T M E N T S
U P DAT E : R E P U R C H A S E D $ 5 0 M O F S TO C K AT $ 1 1 . 74 W E I G H T E D - AV E R AG E P R I C E
R E C E I V E D $1 M F E E R E L AT E D TO M A N AG E M E N T O F S H O P KO P O R T F O L I O
AC Q U I S I T I O N O F 2 A S S E T S F O R $ 6 4 M I N 4 Q 19
G OA L : $ 1 0 0 M O F A N N UA L S P E N D I N G
U P DAT E : T H E C O L L E C T I O N AT B R A N D O N B LV D ($28 M ) 4 Q 2 0 ES T. S TA B I L I Z AT I O N
1 0 0 0 VA N N ES S ($ 5 M ) 1 Q 2 0 ES T. S TA B I L I Z AT I O N
W ES T B AY P L A Z A P H A S E I I ($ 12 M ) 2 Q 2 2 ES T. S TA B I L I Z AT I O N
G OA L : L E A S E U P 6 0 A N C H O R O P P O R T U N I T I ES
U P DAT E : 3 4 O F 6 0 A N C H O R S L E A S E D AT + 5 0 % S P R E A D S
G OA L : 94 % S H O P L E A S E D R AT E
U P DAT E : 8 8 % L E A S E D A S O F 3 Q 19
1AT T R AC T
A N D A DA P T
2A D D
3O P P O R T U N I S T I C
I N V E S T I N G
Note: Numbers may not total 100% due to rounding
S I T E C E N T E R S N A R E I T 2 0 1 9 5
2 0 1 9 O U T L O O K
O F F O
I N T E R E S T I N C O M E
S S N O I
G & AJ V F E E S R V I F E E I N C O M E
$1.20-1.22
$16-17m
2.75-3.25%
$60m$27-29m $23-24m
Note: As of October 30, 2019
S I T E C E N T E R S N A R E I T 2 0 1 9 6
S I T E C E N T E R S I S C O M M I T T E D T O T R A N S PA R E N C Y A R O U N D O U R E N V I R O N M E N TA L , S O C I A L , A N D G O V E R N A N C E G O A L S
1 2 C O R E B U S I N E S S O B J E C T I V E S
GOVERNANCE TENANT ENGAGEMENT
COMMUNITY ENGAGEMENT
TRANSPARENCY IN REPORT ING
SUSTAINABLE BU ILD ING
PRACT ICES
GOOD EMPLOYER PRACT ICES
ETHICAL BUS INESS
PRACT ICES
ENERGY EFF IC IENCY
HEALTH & SAFETY
CL IMATE CHANGE
WATER EFF IC IENCY
WASTE MANAGEMENT
C O M M I T M E N T T O E S G I N I T I AT I V E S
AWARDED
TOTAL SCHOLARSHIPS AWARDED OVER L IFE
OF THE PROGRAM
2019 SCHOLARSHIP RECIP IENTS
AVG TRA IN ING HRS PER EMPLOYEE
TOTAL TRA IN ING HOURS
$25k
40
530+
11.6k
S C H O L A R S H I PT R A I N I N G
FULL-SERV ICE F ITNESS CENTER
3ksf
WEEKLY F ITNESS CLASSES
EMPLOYEES PART IC IPAT ING
18
133
W E L L N E S S P R O G R A M
PeopleCommunity
EMPLOYEE G IFT MATCHING
DONATED TO CHARITABLE ORGS
HOURS EMPLOYEES SPENT VOLUNTEER ING
$25k
$178k
804
C O R P O R AT E G I V I N G
RAISED FOR SPECIAL OLYMPICS TEXAS
RAISED FOR AMER ICAN CANCER SOCIETY
TOYS DONATED TO RONALD McDONALD
HOUSE CHARIT IES
$7k+
$11k+
10k+
C H A R I TA B L E G I V I N G
WOMEN(38%)
MEN(62%)
INDEPENDENT MEMBERS (88%)
3
5
7
B O A R D O F D I R E C TO R S
S TA K E H O L D E R E N G A G E M E N T
Corporate Governance
During 2018, the Company engaged with each of our stakeholders in different capacities. The level and nature of the engagement is based on the specific operational relationship with the stakeholder.
S I T E C E N T E R S N A R E I T 2 0 1 9 7
R E D E V E LO P M E N T
L E A S I N GA C Q U I S I T I O N S
1 2 3AT T R AC T
A N D A DA P T
A D D O P P O R T U N I S T I CI N V E S T I N G
S I T E C E N T E R S N A R E I T 2 0 1 9 8
H I G H E R Q U A L I T Y A N D F O C U S E D W H O L LY- O W N E D P O R T F O L I O
160 143 68
A V G H H I N C O M E , A B R P S F & G R E E N S T R E E T T A P S C O R E
I N C R E A S E O F
+20%
W H O L L Y - O W N E D P R O P E R T I E S A S O F
M A R . 3 , 2 0 1 7
W H O L L Y - O W N E DP R O P E R T I E S A S O F
S E P T . 3 0 , 2 0 1 7
W H O L L Y - O W N E DP R O P E R T I E S A S O F
N O V . 7 , 2 0 1 9
S I T E C E N T E R S N A R E I T 2 0 1 9 9
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$0K↓
$40K
$40K↓
$50K
$50K↓
$60K
$60K↓
$70K
$70K↓
$80K
$80K↓
$90K
$90K↓
$100K
$100K↓
$110K
$110K↓
$120K
$120K↓
$130K
$130K↓
$140K
$140K↓
$150K
$150K +
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0K↓
20K
20K↓
40K
40K↓
60K
60K↓
80K
80K↓
100K
100K↓
120K
120K↓
140K
140K↓
160K
160K↓
180K
180K↓
200K
200K↓
220K
220K↓
240K
240K↓
260K
260K↓
280K
280K↓
300K
300K +
A V G H H I N C O M E ( 3 - M I L E )
PE
RC
EN
TIL
E R
AN
K O
F O
PE
N-A
IR S
HO
PP
ING
CE
NT
ER
PR
OP
ER
TIE
S
PE
RC
EN
TIL
E R
AN
K O
F O
PE
N-A
IR S
HO
PP
ING
CE
NT
ER
PR
OP
ER
TIE
S 116kS I T C P O R T F O L I O
$101kS I T C P O R T F O L I O
P O P U L A T I O N ( 3 - M I L E )
78thP E R C E N T I L E
83rdP E R C E N T I L E
A S SE TS A R E CO N C EN T R AT ED IN A FFLU EN T CO M M U N IT IES W IT H B A R R IERS TO EN T RY A N D CO M PEL L IN G D EM O G R A PH I C S .
S I T E C EN T ERS PR O PERT IES A R E IN T H E TO P Q UA RT I L E W H EN CO M PA R ED TO A L L U . S . O PEN - A IR SH O PP IN G C EN T ERS .
T O P Q U A R T I L E D E M O G R A P H I C S
S I T E C E N T E R S N A R E I T 2 0 1 9 10
AT T H E A P E X O F R E TA I L , S H O P P I N G C E N T E RS O F F E R D IS CO U N T…
TJX , R OS S , A N D B U R L IN GTO N H AV E G R OW N T H EIR SA L ES S IN C E 20 10 BY A N A M O U N T EQ UA L TO M AC Y ’ S TOTA L SA L ES
TJX , R OS S , A N D B U R L IN GTO N ACCO U N T FO R 9.1% O F S I T E C EN T ERS ’ A B R A S O F SEP T EM B ER 3 0 , 20 19
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
NET SALES (2018)NET SALES (2010)
NET
SA
LES
($
M)
NET
SA
LES
($
M)
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
ROSSTJX BURLINGTON MACY’S
TJX
+69%
+74%
+0%
$12,234
$6,375
$2,789
$24,971
+72%
Ross Burlington Macy’s Off-Price Sales Growth Since 2010
Macy’s2018 Sales
S I T E C E N T E RS ’ D IS CO U N T R E TA I L E RS A R E TA K I N G M A R K E T S H A R E
S I T E C E N T E R S N A R E I T 2 0 1 9 11
. . . A N D CO N V E N I E N C E W H I C H A R E D R I V I N G S A L E S G R OW T H
$ 1 4 . 8 5 I N N N N E X P E N S E S
$ 5 . 9 8 I N N N N E X P E N S E S
+ 1 4 . 8 % S I N C E 2 0 1 0
+ 3 4 . 2 % S I N C E 2 0 1 0
$67.66 $25.97
$426 $417
5% 18%
1. Source: Annual company documents2. Gap Inc. rent assumed to be comparable to SPG average starting rent from June 30, 2019 supplemental disclosure.3. Source: The Gap Inc. 8-K filed September 12, 2019.
T H I S H U R T S G A P ’ S M A R G I N SEBITDA MARGIN3 EBITDA MARGIN3
B U T O C C U P A N C Y C O S T S A R E 2 . 5 x H I G H E R F O R G A P B E C A U S E O F H I G H E R M A L L
C A M A N D R E N T
TOTAL RENT PSF2 TOTAL RENT PSF2
C O M P A R A B L E S A L E S P S F D E S P I T E D I F F E R E N T
F O O T P R I N T S A N D F O R M A T SAVG SALES PSF 1 AVG SALES PSF 1
SHOPPING CENTER SECTOR FORMAT ADVANTAGES EVIDENT IN GAP SPLIT
S I T E C E N T E R S N A R E I T 2 0 1 9 12
S I T E C E N T E R S ’ P O R T F O L I O I S C O N C E N T R AT E D I N M A J O R M S A s
5%
6%
9%
6%
7%
8%
4%
9%
6%
5%
4%
6%
BOSTON
NEW YORK
SAN ANTONIO
CHARLOTTE
ATLANTA
ORLANDO
MIAMI
PHOENIX
LOS ANGELES
DENVER
CHICAGO
COLUMBUS
T O P 1 2 M A R K E T S A C C O U N T F O R 7 0 % O F P R O R ATA A B R
S I T E C E N T E R S N A R E I T 2 0 1 9 13
SHOPPERS WORLD(BOSTON)
AVG HHI $104K GSA TAP 38
COTSWOLD VILLAGE(CHARLOTTE)
AVG HHI $126K GSA TAP 95
UNIVERSITY HILLS(DENVER)
AVG HHI $103K GSA TAP 98
WINTER GARDEN VILLAGE(ORLANDO)
AVG HHI $103K GSA TAP 94
THE FOUNTAINS(MIAMI)
AVG HHI $80K GSA TAP 66
JOHNS CREEK TOWN CENTER(ATLANTA)
AVG HHI $145K GSA TAP 95
NASSAU PARK PAVILION(NEW YORK)
AVG HHI $160K GSA TAP 85
FAIRFAX TOWNE CENTER(WASHINGTON, DC)
AVG HHI $148K GSA TAP 99
WHOLE FOODS AT BAY PLACE(SAN FRANCISCO)
AVG HHI $104K GSA TAP 94
THE SHOPS AT MIDTOWN MIAMI(MIAMI)
AVG HHI $63K GSA TAP 35
PROMENADE AT BRENTWOOD(ST. LOUIS)
AVG HHI $112K GSA TAP 99
MARKETPLACE AT HIGHLAND VILLAGE(DALLAS)
AVG HHI $139K GSA TAP 92
PERIMETER POINTE(ATLANTA)
AVG HHI $109K GSA TAP 92
3030 NORTH BROADWAY(CHICAGO)
AVG HHI $122K GSA TAP 99
EDGEWATER TOWNE CENTER(NEW YORK)
AVG HHI $94K GSA TAP 97
D O M I N A N T A S S E T S A C C O U N T F O R A L M O S T 5 0 % O F VA L U E
S I T E C E N T E R S N A R E I T 2 0 1 9 14
RECENT BANKRUPTCIES HAVE HIGHLIGHTED THE QUALIT Y AND EMBEDDED MARK-TO-MARKET OF SITE CENTERS REAL ESTATE
BANKRUPTCIES ALSO PROVIDE AN OPPORTUNIT Y TO RECAPTURE CONTROL OF GL A AND PARKING FIELDS AT DOMINANT ASSETS
FIVE-YEAR FORECASTS ASSUME ANNUAL BANKRUPTCIES CONSISTENT WITH L AST THREE YEARS
S P R E A D
+27%S P R E A D
+48%S P R E A D S P R E A D
+44% +27%( E X C L U D E S V A L U E C R E A T I O N F R O M
C O N T R O L A T S H O P P E R S W O R L D
A N D P E R I M E T E R P O I N T E )
COM PE LL IN G RE LE ASING ECO NO MIC S
S I T E C E N T E R S N A R E I T 2 0 1 9 15
R O B U S T A N D D I V E R S E D E M A N D F O R A N C H O R O P P O R T U N I T I E S
3 4 O F 6 0 A N C H O R O P P O R T U N I T I E S E X E C U T E D W I T H 2 3 D I F F E R E N T R E TA I L B A N N E R S
A N C H O R O P E N I N G S C O N C E N T R AT E D I N 2 H 19
• 12 A N C H O R S O P E N E D I N 3 Q
• 4 A N C H O R S E X P E C T E D TO O P E N I N 4 Q
A N C H O R O P E N I N G S T O P R O V I D E M U LT I -Y E A R TA I LW I N D T O N O I G R O W T H
2019 ANCHOR OPPORTUNITY OPENINGS
S I T E C E N T E R S N A R E I T 2 0 1 9 16
S T E A DY S H O P L E A S I N G P E R F O R M A N C E D E S P I T E U P T I C K I N B A N K R U P TC I E S
SMALL SHOP VOLUME (KSF GLA) ABR PSF
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q190
50
100
150
200
250
300
350
$25.50
$26.00
$26.50
$27.00
$27.50
$28.00
$28.50
VO
LUM
E (K
SF)
NEW
LEAS
E AB
R P
SF
S T R O N G S H O P L E A S I N G V O L U M E A N D E C O N O M I C S D R I V E N B Y H E A LT H Y M I X O F S E R V I C E T E N A N T S
S I T E C E N T E R S N A R E I T 2 0 1 9 17
COTSWO LD V ILL AG E - S T R O N G M T M A N D L E A S IN G AC T I V IT Y D R I V IN G N O I G R OW T H
COTSWOLD VILLAGE
CHARLOTTE, NC
MARKET DOMINANT GROCERY-ANCHORED CENTER
21%
57%
$813
3.7%
288k $100k
291k $114k
BLENDED ANCHOR MTM
RELEASING SPREAD
SALES PER SQUARE FOOT
EXP RCD 3Q20
At Lease5-YEAR NOI CAGR
POPULATION AVG HHI
5-MILE TRADE AREA
POPULATION AVG HHI
ACTUAL TRADE AREA
S I T E C E N T E R S N A R E I T 2 0 1 9 18
R E D E V E LO P M E N TL E A S I N G A C Q U I S I T I O N S
1 2 3AT T R AC T
A N D A DA P T A D D O P P O R T U N I S T I CI N V E S T I N G
S I T E C E N T E R S N A R E I T 2 0 1 9 19
C O M P E L L I N G L A N D U S E E C O N O M I C S
$0 $0
$0
$30$10 $0
O N LY 2 5 % O F L A N D I S G E N E R A T I N G R E N T A N D T H E R E F O R E . . .
B U I L D I N G S F S I T E S F
A B R A B R
$12 $4
S I T E C E N T E R S N A R E I T 2 0 1 9 20
S H O P P I N G C E N T E R S A R E I N E F F I C I E N T U S E R S O F L A N D
I N D U S T R I A L$ 6 $ 5
S U B U R B A N O F F I C E$ 1 5 $ 9
M U L T I - F A M I LY$ 1 8 $ 1 4
B U I L D I N G S F S I T E S F
A B R A B R
$12 $4
Adjusting for parking fields, and the greater density potential they represent in the future, the shopping center has a lower rent.
KEY TAKEAWAY
FAR2
FAR2
0.46
0.27
WHY RETAIL RENTS ARE ACTUALLY LOWER THAN INDUSTRIAL RENTS
S I T E C E N T E R S N A R E I T 2 0 1 9 21
1. Company details.2. Morris County Tax Board
EAST HANOVER PLAZA
8.365 ACRES
ADJACENT INDUSTRIAL PROPERTY
5.510 ACRES
INDUSTRIAL PROPERTY
EAST HANOVER PLAZA
TOTAL RENT PSF1 $12.00 $20.28
FLOOR AREA RATIO (FAR)2 0.46 0.27
REVENUE/LAND SF $5.53 $5.44
NEW JERSEY
S I T E C E N T E R S N A R E I T 2 0 1 9 22
S T E A DY P I P E L I N E O F R E D E V E L O P M E N T P R O J E C T S
WEST BAY PLAZA ($39M) - PHASE I COMPLETEREDEVELOPMENT OF KMART AND MARC’S BOXES
KEY TENANTS: FRESH THYME, HOMESENSE, ULTA
1000 VAN NESS ($5M)REDEVELOPMENT OF AMC SPACE
KEY TENANT: CGV CINEMAS
THE COLLECTION AT BRANDON BLVD ($28M)REDEVELOPMENT OF KMART BOX
KEY TENANTS: LUCKY’S MARKET, BEALLS, CRUNCH FITNESS
NASSAU PARK PAVILION ($12M) - COMPLETEREDEVELOPMENT OF KOHL’S BOX
KEY TENANTS: T.J.MAXX, HOMESENSE, BURLINGTON
$ 9 6 M O F R E D E V E L O P M E N T U N D E R WAY AT P R O J E C T E D 8 % Y I E L D
S I T E C E N T E R S N A R E I T 2 0 1 9 23
THE COLLEC TION AT B R AND O N BOULE VARD - R EP OS IT I O N IN G O F FO R M ER K M A RT AT CO M PEL L IN G Y IEL D
THE COLLECTION AT BRANDON BLVD
BRANDON, FL
REDEVELOPMENT OF FORMER KMART SPACE INTO GROCER, GYM, AND CONVENIENCE-ORIENTED SHOPS
99%
9.7%
218k $67k
376k $71kGLA LEASED OR
AT LEASE
STABILIZED YIELD
POPULATION AVG HHI
5-MILE TRADE AREA
POPULATION AVG HHI
ACTUAL TRADE AREA
730%BLENDED MTM
10.9%YIELD
NEW 5KSF OUTPARCEL
S I T E C E N T E R S N A R E I T 2 0 1 9 24
TA C T I C A L R E D E V E L O P M E N T O P P O R T U N I T I E S
PROPERTY MSA SPEND ($M) EST. DELIVERY
Belgate Shopping Center Charlotte $3.1 2019
Guilford Commons Har t ford $2.3 2019
Johns Creek Town Center Atlanta $2.4 2019
Lee Vista Promenade Orlando $1.9 2019
Tanasbourne Town Center Por tland $3.9 2020
Chapel Hil ls Denver $1.1 2021
Hamilton Marketplace Trenton $2.8 2021
Nassau Park Pavil ion Trenton $5.2 2021
Woodfield Vil lage Green Chicago $2.8 2021
Freehold Marketplace New York $8.8 2022
$ 3 4 M P I P E L I N E O F O U T PA R C E L A N D E X PA N S I O N O P P O R T U N I T I E S AT P R O J E C T E D 1 0 % Y I E L D
S I T E C E N T E R S N A R E I T 2 0 1 9 25
F U T U R E D E N S I F I C AT I O N O P P O R T U N I T I E S P R OV I D E O P T I O N A L I T Y
SHOPPERS WORLD(BOSTON)
AVG HHI $104K GSA TAP 38
DUVALL VILLAGE(WASHINGTON, DC)
AVG HHI $121K GSA TAP 78
FAIRFAX TOWNE CENTER(WASHINGTON, DC)
AVG HHI $148K GSA TAP 99
FREEHOLD MARKETPLACE(NEW YORK)
AVG HHI $107K GSA TAP 64
PERIMETER POINTE(ATLANTA)
AVG HHI $109K GSA TAP 92
SOLD
S I T E C E N T E R S N A R E I T 2 0 1 9 26
R E D E V E LO P M E N TL E A S I N G
A C Q U I S I T I O N S
1 2 3AT T R AC T
A N D A DA P TA D D O P P O R T U N I S T I C
I N V E S T I N G
S I T E C E N T E R S N A R E I T 2 0 1 9 27
OpportunisticInvesting
M A R K E T D I S L I K E S• Tier II Markets• Large Assets• Power Centers• Short Duration • At Risk Tenancies
M A R K E T L I K E S• Coastal• Grocery Centers• Small Assets• Lease Term • Credit Quality
High Cap Rate
Low Cap Rate
S I T E C E N T E R S N A R E I T 2 0 1 9 28
EncumbrancesR E N T G R O W T H
K E Y E X A M P L E
• M E L B O U R N E S H O P P I N G C E N T E R ( M E L B O U R N E , F L )
ScarcityR E D E V E L O P M E N T
K E Y E X A M P L E S
• V I N T A G E P L A Z A ( R O U N D R O C K , T X )
• T H E B L O C K S ( P O R T L A N D , O R )
FootfallO C C U P A N C Y
K E Y E X A M P L E S
• M A R K E T S Q U A R E ( D O U G L A S V I L L E , G A )
• S H A R O N G R E E N S ( C U M M I N G , G A )
K E Y ACQ U IS I T I O N AT T R I B U T E S
TA R G E T E D A C Q U I S I T I O N S A R E F I LT E R E D F O R FA C T O R S T H AT D R I V E G R O W T H A N D C R E AT E VA L U E
S I T E C E N T E R S N A R E I T 2 0 1 9 29
RoomLabel100 MEN'S WEARHOUSE 8,500110 TUMBLES 5,612130 AVAILABLE 1,500200 PHO DAN 3,010205 BAMBOO NAILS & SPA 1,600215 DREAMY BROWS AND LASHES 1,189220 SNIP-ITS 1,452230 AVAILABLE 1,200250 BURN BOOT CAMP 4,077260 BO ASIAN BISTRO 2,715270 LA FRONTERA DENTAL 2,370300 CHASE 4,010310 DELUXE CLEANERS 1,000320 VERACRUZ ALL NATURAL 1,372330 BROOKLYN PIE CO. 1,005
Latitude: 30.4804 , Longitude: -97.6843
ROUND ROCK, TX 786812711 La Frontera Blvd.VINTAGE PLAZA
UNOWNED PARKING GARAGE
207
12 13 13 13
11117
12
10
11
15
12
12
12
12
9
6
16
LA F
RO
NTE
RA
BLVD
KOU
RI A
VE
W LOUIS HENNA BLVD
I45
PYLON
UNOWNED PARKING GARAGE
TUM
BLES
LAFRONTERA
DENTAL
BO A
SIAN
BIST
RO
BUR
N B
OO
TC
AMP
SNIP
ITS
DR
EAM
Y BR
OW
SAN
D L
ASH
ES
BAM
BOO
NAI
LS&
SPA
PHO
DAN
BROOKLYN PIECOMPANY
DELUXECLEANERS
VERACRUZALL NATURAL
130AVAILABLE
1,500 SF
230
AVAI
LABL
E1,
200
SF
215022019/10/04
TENANT INDEX
Community-anchored strip center with major daytime traffic drivers
Data supports a unique trade area - dispersed and high income with traffic generated by adjacent offices and Dell’s nearby world headquarters
Total nearby office complex of 6.3 million sf
Submarket growth and near-term expirations present opportunity to re-tenant and drive existing tenant rent growth using data-driven approach
+3.2% estimated 5-year NOI CAGR
Investment Highlights
VINTAG E PL A Z A AUS T IN , T E X AS
S I T E C E N T E R S N A R E I T 2 0 1 9 30
THE B LO CKS P O RT L A N D, O R EG O N
Collection of retail condo units in Portland’s rapidly growing Pearl District
Local and national tenants. Strong daytime traffic is complimented by tourism, drawing 10% of consumers from Seattle, San Francisco, and Los Angeles
Recent demographic shifts have brought high-income jobs and upscale residences to the submarket
1,000+ employees added to Downtown Portland over the last 2 years
+4.7% estimated 5-year NOI CAGR
Investment Highlights
S I T E C E N T E R S N A R E I T 2 0 1 9 31
L E ASING AC TIV IT Y TO DR IVE SUBSTANTIAL VALUE CRE ATIO N AT 4Q18 ACQUIS IT IO N PRO PE RT IES
91.8%OCCUPANCY (3Q19)
UP FROM 85.7% IN 3Q18
6 YEAR BLENDED DOWNTIME
VACANT AS OF
3Q18COMBINED 3 UNITS AND
LEASED TO TRAFFIC-DRIVING GYM AS PART OF LONG-TERM
ASSET MANAGEMENT STRATEGY
8 YearBlended Downtime
$733SALES PSF
($20.5M TOTALSALES)
83.2%OCCUPANCY (3Q19)
UP FROM 70.7% IN 3Q18
92.4%OCCUPANCY (3Q19)
UP FROM 86.2% IN 3Q18
NEW LEASES SINCE ACQUISITION
5
5.4%2019-2023 NOI CAGR
SHARO N G RE E NS CU M M IN G , G A
M E LB OURN E SH O PPIN G CE NTE R
M EL B O U R N E , FLMARKE T SQUARE
D O U G L A S V IL L E , G A
9.6%2019-2023 NOI CAGR
16.2%2019-2023 NOI CAGR
S I T E C E N T E R S N A R E I T 2 0 1 9 32
Balance Sheet
S I T E C E N T E R S N A R E I T 2 0 1 9 33
S I G N I F I C A N T B A L A N C E S H E E T P R O G R E S S
COMMITMENT TO INVESTMENT-GRADE CREDIT RATING
Larger and higher quality unencumbered pool with no Puerto Rico exposure
Minimal consolidated secured debt with just two wholly-owned assets encumbered
BALANCE SHEET POSITIONED FOR GROWTH
Debt / Adjusted EBITDA now 5.8x compared to 6.5x in 3Q18
Minimal near-term refinancing and interest rate risk with just $82M of consolidated debt maturing through 2021
Full availability under the company’s $970M Line of Credit as of 3Q19
$0
$100
$200
$300
$400
$500
20272025 202620242023202220212019 2020
Consolidated Maturities ($M)
LEVERAGE / PUBLIC BOND COVENANTS 1Q18 3Q19
Pro-Rata Net Debt / Adjusted EBITDA 6.5x 5.8x
Total Debt to RE Assets 45% 36%
Secured Debt to Assets Ratio 17% 2%
Unencumbered Assets to Unsecured Debt 213% 250%
Fixed Charge Coverage (Ex. Prepayment Penalties) 3.0x 3.5x
Note: As of 3Q19
S I T E C E N T E R S N A R E I T 2 0 1 9 34
M I N I M A L N E A R -T E R M R E F I N A N C I N G R I S K
Source: Company details, as of 2Q19Source: Company details, as of 2Q19
2019 2020 2021
AKR
RPAI
KIM
REG
WRI
FRT
ROIC
UE
BRX
SITC
0% 10% 20% 30%
AKR
RPAI
WRI
ROIC
SITC
BRX
UE
REG
KIM
FRT
0 2 4 6 8 10 12
% DEBT MATUR ING 2019 - 2021WA
INTERESTRATE
WEIGHTED AVERAGE DEBT MATUR ITY
4.8%
3.6%
4.1%
3.8%
3.9%
3.1%
3.5%
3.0%
5.0%
4.7%
W E I G H T E D AV E R A G E M AT U R I T Y N O W A B O V E P E E R G R O U P AV E R A G E W I T H N O M AT E R I A L C O N S O L I D AT E D M AT U R I T I E S U N T I L 2 0 2 2
S I T E C E N T E R S N A R E I T 2 0 1 9 35
Appendix
S I T E C E N T E R S N A R E I T 2 0 1 9 36
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 (“OFFO”) 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 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 NAREIT definition. 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, mark-to-market adjustments of equity awards, hurricane-related activity, certain transaction costs or certain fee income. The expected range of net income attributable to common shareholders to estimate projected FFO and Operating for 2019 does include the impact of the common share issuance completed in October 2019 and expected redemption of the Class J Preferred Shares. 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 in excess of lost rent, management fee expense, fair market value of leases and expense recovery adjustments. SSNOI also excludes activity associated with development and major redevelopment and includes assets owned in comparable periods (15 months for quarter comparisons). SSNOI excludes all non-property and corporate level revenue. Other real estate companies may calculate NOI and SSNOI in a different manner. The Company believes SSNOI 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.
The Company believes that FFO, OFFO and SSNOI are not, and are not intended to be, presentations in accordance with GAAP. FFO, OFFO and SSNOI information have their limitations as they exclude any capital expenditures associated with the re-leasing of tenant space or as needed to operate the assets. FFO, OFFO and SSNOI do not represent amounts available for dividends, capital replacement or expansion, debt service obligations or other commitments and uncertainties. Management does not use FFO, OFFO and SSNOI as indicators of the Company’s cash obligations and funding requirements for future commitments, acquisitions or development activities. FFO, OFFO and SSNOI do not represent cash generated from operating activities in accordance with GAAP, and are not necessarily indicative of cash available to fund cash needs. FFO, OFFO and SSNOI should not be considered as alternatives to net income computed in accordance with GAAP, as indicators of operating performance or as alternatives to cash flow as a measure of liquidity. A reconciliation of 2019 projected FFO and OFFO to the most directly comparable GAAP measure of net income (loss) has been provided herein. Reconciliations of the 2019 and five-year growth target for SSNOI to the most directly comparable GAAP financial measure are not provided because the Company is unable to provide such reconciliations without unreasonable effort.
NON - GA AP F INAN CIAL ME ASURES - DE F IN IT IONS
S I T E C E N T E R S N A R E I T 2 0 1 9 37
The Company uses the ratio Debt to Adjusted EBITDA (“Debt/Adjusted EBITDA”) as it believes it provides a meaningful metric as it relates to the Company’s ability to meet various leverage tests for the corresponding periods. The components of Debt/Adjusted EBITDA include net effective debt divided by adjusted EBITDA (annualized), as opposed to net income determined in accordance with GAAP. Adjusted EBITDA is calculated as net income attributable to SITE before interest, income taxes, depreciation and amortization and further adjusted to eliminate the impact of certain items that the Company does not consider indicative of its ongoing performance. Net effective debt is calculated as the Company’s consolidated debt outstanding excluding unamortized loan costs and fair market value adjustments, less cash and restricted cash as of the balance sheet date presented or projected. Such amounts are calculated at the Company’s proportionate share of ownership.
The Company also calculates EBITDAre as net income attributable to SITE before interest, income taxes, depreciation and amortization, gains and losses from disposition of real estate property and related investments, impairment charges on real estate property and related investments including reserve adjustments of preferred equity interests and gains and losses from changes in control. Such amount is calculated at the Company’s proportionate share of ownership.
Adjusted EBITDA should not be considered as an alternative to earnings as an indicator of the Company’s financial performance, or an alternative to cash flow from operating activities as a measure of liquidity. The Company’s calculation of Adjusted EBITDA may differ from the methodology utilized by other companies. Investors are cautioned that items excluded from Adjusted EBITDA are significant components in understanding and assessing the Company’s financial condition. Reconciliations of Adjusted EBITDA and net effective debt used in the prorata Debt/Adjusted EBITDA ratio to their most directly comparable GAAP measures of net income (loss) and debt is provided herein.
NON - GA AP F INAN CIAL ME ASURES - DE F IN IT IONS (CONT. )
S I T E C E N T E R S N A R E I T 2 0 1 9 38
RECONCIL IAT ION OF NE T INCO ME AT TR IBUTAB LE TO COMMONSHARE HOLDE RS TO FFO AND O PE R ATING FFO EST IMATE
Per Share - Diluted 2019E
Net income attributable to common shareholders $0.27 - $0.30Depreciation and amortization of real estate 0.83 - 0.86Equity in net (income) of JVs (0.04)JVs' FFO 0.16 - 0.18Gain on disposition of real estate (nine months actual) (0.17)Impairment of real estate / reserve of preferred equity interests (nine months actual) 0.08FFO (NAREIT) $1.16 - $1.18Write off of estimated Class J Preferred Shares' original issuance costs1 $0.04Operating FFO $1.20 - $1.22
1. Guidance includes impact of previously disclosed common share issuance in October 2019 as well as the expected redemption of the Class J Preferred Shares.
Note: In calculating the expected range for or amount of net income attributable to common shareholders to estimate projected FFO and projected Operating FFO for the year ending December 31, 2019, 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, mark-to-market adjustments of equity awards, hurricane-related activity, certain transaction costs or certain fee income. In addition, consistent with prior quarters, the full year guidance excludes the impact of disposition and refinancing fees from RVI as well as the mark-to-market adjustments of equity awards.
S I T E C E N T E R S N A R E I T 2 0 1 9 39
RECONCIL IAT ION OF DE BT / ADJUSTE D E B ITDA
3Q19 3Q18
CONSOLIDATED
Net income (loss) to SITE $23,630 ($8,931)
Interest expense 21,160 26,962
Income tax expense 250 238
Depreciation and amortization 40,732 49,629
Adjustments for non-controlling interests (178) (171)
EBITDA – current quarter 85,594 67,727
Impairments 2,750 19,890
Reserve of preferred equity interests 6,373 2,201
Gain on disposition of real estate, net (14,498) (124)
EBITDAre – current quarter 80,219 89,694
Equity in net (income) loss of JVs (2,612) 2,920
Other expense, net 1,740 1,475
Hurricane property income - (157)
Business interruption income (885) (1,784)
JV Adjusted EBITDA (at SITE Share) 8,446 7,247
Adjusted EBITDA – current quarter 86,908 99,395
Adjusted EBITDA – annualized 347,632 397,580
$ in thousands
S I T E C E N T E R S N A R E I T 2 0 1 9 40
RECONCIL IAT ION OF DE BT / ADJUSTE D E B ITDA (CONT. )
3Q19 3Q18
Consolidated debt 1,833,283 2,385,002
Partner share of consolidated debt (9,486) (9,647)
Loan costs, net 9,359 12,749
Face value adjustments (805) (1,794)
Cash and restricted cash (25,452) (12,719)
Net effective debt $1,806,899 $2,373,591
Debt/Adjusted EBITDA – Consolidated1 5.2x 6.0x
PRO RATA INCLUDING JVsEBTIDAre – current quarter 86,105 99,696
Adjusted EBITDA – current quarter 91,056 103,108
Adjusted EBITDA – annualized 364,224 412,432
Consolidated net debt 1,806,899 2,373,591
JV debt (at SITE Share) 309,621 306,345
Cash and restricted cash (14,658) (12,543)
Net effective debt $2,101,862 $2,667,393
Debt/Adjusted EBITDA – Pro Rata1 5.8x 6.5x
1. Excludes perpetual preferred stock. $ in thousands