SITE Centers : FY24 Q4 Supplement

Published: 2025-02-27 06:31:05 ET SITC

Quarterly

Financial

Supplement

F O R T H E P E R I O D E N D E D D E C E M B E R 3 1 , 2 0 2 4

SITE Centers Corp.

Table of Contents

Section

Page

Earnings Release & Financial Statements

Press Release

1-6

Company Summary

Portfolio Summary

Capital Structure and Debt Detail

Leasing Summary

Lease Expirations

Top 30 Tenants

Investments

Transactions

Unconsolidated Joint Ventures

13-15

Shopping Center Summary

Property List

Reporting Policies and Other

Notable Accounting and Supplemental Policies

17-18

Non-GAAPMeasures

19-20

Leasing Metrics for Wholly-Ownedand Unconsolidated Joint Ventures at 100%

21-25

SITE

Centers Corp.

For additional information:

3300

Enterprise Parkway

Gerald Morgan, EVP and

Beachwood, OH 44122

Chief Financial Officer

216-755-5500

FOR IMMEDIATE RELEASE:

SITE Centers Reports Fourth Quarter 2024 Results

Beachwood, Ohio, February 27, 2025 - SITE Centers Corp. (NYSE: SITC), an owner of open-air shopping centers located primarily in suburban, high household income communities, announced today operating results for the quarter ended December 31, 2024.

"SITE Centers furthered the Company's goal of recognizing value for stakeholders in the fourth quarter by continuing the simplification of its capital structure through the redemption of the remaining $175 million of outstanding preferred shares. The Company's commenced rate increased through new tenant store openings in an environment of strong leasing demand, and we intend to capitalize where we view strong private market interest in purchasing high quality assets by marketing a subset of shopping centers for sale," commented David R. Lukes, President and Chief Executive Officer. "Going forward, SITE Centers intends to maximize value through continued leasing, asset management and potential additional asset sales."

Results for the Fourth Quarter

Significant Fourth Quarter Activity and Key Operating Results

Discontinued Operations

On October 1, 2024, the Company completed the spin-off of 79 convenience properties and distributed $800.0 million of cash to Curbline Properties. The spin-off of the convenience properties represented a strategic shift in the Company's business and, as such, the Curbline properties are reflected as discontinued operations for all periods presented.

About SITE Centers Corp.

SITE Centers is an owner and manager of open-air shopping centers located primarily 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.

Supplemental Information

Copies of the Company's quarterly financial supplement are available on the Investor Relations portion of the Company's website, ir.sitecenters.com.

Non-GAAP Measures and Other Operational Metrics

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, (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 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/losses. Operating FFO is useful to investors as the Company removes non-comparable charges, income and gains/losses to analyze the results of its operations and assess performance of the core operating real estate portfolio. Other real estate companies may calculate FFO and Operating FFO in a different manner.

The Company also uses 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.

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

Safe Harbor

SITE Centers Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact, including statements regarding the Company's projected operational and financial performance, strategy, prospects and plans, 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, general economic conditions, including inflation and interest rate volatility; local conditions such as the supply of, and demand for, retail real estate space in our geographic markets; the consistency with future results of assumptions based on past performance; 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; our ability to enter into agreements to sell properties on commercially reasonable terms and to satisfy closing conditions applicable to such sales; our ability to finance our businesses on commercially acceptable terms or at all; impairment charges; 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; the impact of pandemics and other public health crises; unauthorized access, use, theft or destruction of financial, operations or third party

data maintained in our information systems or by third parties on our behalf; our ability to maintain REIT status; and the finalization of the financial statements for the period ended December 31, 2024. 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 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

4Q24

4Q23

12M24

12M23

Revenues:

Rental income (1)

$32,583

$97,435

$269,286

$444,062

Other property revenues

282

251

1,801

1,736

Expenses:

32,865

97,686

271,087

445,798

Operating and maintenance (2)

8,924

19,218

55,372

78,306

Real estate taxes

4,543

13,444

40,292

65,501

13,467

32,662

95,664

143,807

Net operating income (3)

19,398

65,024

175,423

301,991

Other income (expense):

JV and other fee income (4)

2,035

1,510

6,380

6,817

Interest expense

(5,833)

(19,657)

(59,463)

(80,482)

Depreciation and amortization

(13,061)

(38,154)

(101,344)

(180,611)

General and administrative (5)

(8,393)

(14,931)

(47,080)

(50,867)

Other income (expense), net (6)

335

6,522

(16,761)

5,565

Impairment charges

(66,600)

(Loss) income before earnings from discontinued operations, JVs and other

(5,519)

314

(109,445)

2,413

Equity in net income of JVs

(324)

6,577

Gain on sale and change in control of interests

2,669

3,749

Gain on disposition of real estate, net

187,796

633,219

218,655

Tax expense

(29)

(1,234)

(761)

(2,045)

(Loss) income from continuing operations

(5,822)

186,958

525,764

229,349

Income from discontinued operations (7)

9,466

6,060

36,372

Net (loss) income

(5,822)

196,424

531,824

265,721

Non-controlling interests

(18)

Net (loss) income SITE Centers

(5,822)

196,424

531,824

265,703

Write off of preferred share original issuance costs

(6,155)

Preferred dividends

(1,271)

(2,789)

(9,638)

(11,156)

Net (loss) income Common Shareholders

($13,248)

$193,635

$516,031

$254,547

Weighted average shares - Basic - EPS (8)

52,430

52,331

52,393

52,365

Assumed conversion of diluted securities (7)

191

Weighted average shares - Diluted - EPS (8)

52,430

52,352

52,584

52,405

Basic earnings per share:

From continuing operations

$(0.25)

$3.51

$9.69

$4.16

From discontinued operations

0.18

0.12

0.69

Total

$(0.25)

$3.69

$9.81

$4.85

Diluted earnings per share:

From continuing operations

$(0.25)

$3.52

$9.65

$4.16

From discontinued operations

0.17

0.12

0.69

Total

$(0.25)

$3.69

$9.77

$4.85

Minimum rents

$20,826

$65,497

$176,496

$292,449

Ground lease minimum rents

1,310

3,188

7,968

13,773

Straight-line rent, net and amortization of (above)/below-market rent, net

786

1,202

4,446

13,208

Percentage and overage rent

632

1,545

4,651

5,570

Recoveries

8,401

24,408

70,360

113,214

Uncollectible revenue

109

(278)

702

(1,010)

Ancillary and other rental income

519

1,858

3,329

6,300

Lease termination fees

1,334

558

(2)

Includes allocated general and administrative expense

1,193

2,779

8,046

10,833

(3)

Includes NOI from wholly-owned assets sold in 2024

N/A

88,815

N/A

(4)

Curbline Shared Services Agreement ("SSA") fee

593

Curbline SSA gross up

499

Embedded Lease SSA (included in rental income)

(369)

(5)

Separation and other charges

361

1,032

1,709

5,046

(6)

Interest income (fees), net

1,775

4,553

31,620

4,348

Transaction costs

(941)

(42)

(1,685)

(836)

Curbline SSA gross up

(499)

Debt extinguishment costs

(92)

(42,822)

(50)

Gain on debt retirement and gain (loss) on equity derivative instruments

2,103

(3,375)

2,103

SITE Centers Corp.

Reconciliation: Net Income to FFO and Operating FFO

and Other Financial Information

in thousands, except per share

4Q24

4Q23

12M24

12M23

Net (loss) income attributable to Common Shareholders

($13,248)

$193,635

$516,031

$254,547

Depreciation and amortization of real estate

12,467

36,754

97,186

175,156

Equity in net income of JVs

324

(82)

(6,577)

JVs' FFO

1,337

1,654

6,040

7,981

Discontinued operations' FFO adjustments (1)

8,771

29,556

31,478

Non-controlling interests

Impairment of real estate

66,600

Gain on sale and change in control of interests

(2,669)

(3,749)

Gain on disposition of real estate, net

(50)

(187,796)

(633,219)

(218,655)

FFO attributable to Common Shareholders

$830

$52,936

$79,443

$240,199

Separation and other charges

361

1,308

1,709

5,752

Discontinued operations' transaction and debt extinguishment

costs

1,323

30,851

2,376

Write-off of preferred share original issuance costs

6,155

Transaction, debt extinguishment and other (at SITE's share)

941

515

44,154

1,648

Derivative mark-to-market

(2,103)

4,412

(2,103)

Total non-operating items, net

7,457

1,043

87,281

7,673

Operating FFO attributable to Common Shareholders

$8,287

$53,979

$166,724

$247,872

Weighted average shares & units - Basic: FFO & OFFO (2)

52,430

52,331

52,393

52,377

Assumed conversion of dilutive securities (2)

191

Weighted average shares & units - Diluted: FFO & OFFO (2)

52,430

52,352

52,584

52,417

FFO per share - Basic (2)

$0.02

$1.01

$1.52

$4.59

FFO per share - Diluted (2)

$0.02

$1.01

$1.51

$4.58

Operating FFO per share - Basic (2)

$0.16

$1.03

$3.18

$4.73

Operating FFO per share - Diluted (2)

$0.16

$1.03

$3.17

$4.73

Common stock dividends declared, per share (2)

$0.00

$1.16

$1.04

$2.72

Capital expenditures (SITE Centers share) (3):

Redevelopment costs

3,148

4,849

14,462

Maintenance capital expenditures

753

4,960

4,937

15,413

Tenant allowances and landlord work

1,897

14,001

25,486

44,892

Leasing commissions

389

1,477

3,634

6,092

Construction administrative costs (capitalized)

320

776

2,973

3,171

Certain non-cash items (SITE Centers share) (3):

Straight-line rent

670

578

3,159

1,621

Straight-line fixed CAM

178

329

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

177

754

1,777

12,057

Straight-line ground rent expense (income)

(25)

(155)

Debt fair value and loan cost amortization

(908)

(1,261)

(5,398)

(4,741)

Capitalized interest expense

322

571

1,238

Stock compensation expense

(327)

(1,965)

(6,285)

(7,083)

Non-real estate depreciation expense

(597)

(1,402)

(4,168)

(5,466)

(1) Discontinued operations' FFO adjustments

Depreciation and amortization of real estate investments

$8,771

$29,556

$31,849

Loss (gain) on disposition of real estate, net

(371)

$8,771

$29,556

$31,478

SITE Centers Corp.

Balance Sheet: Consolidated Interests

$ in thousands

At Period End

4Q24

4Q23

Assets:

Land

$204,722

$614,328

Buildings

964,845

2,688,953

Fixtures and tenant improvements

254,152

479,196

1,423,719

3,782,477

Depreciation

(654,389)

(1,434,209)

769,330

2,348,268

Construction in progress and land

2,682

37,875

Real estate, net

772,012

2,386,143

Investments in and advances to JVs

30,431

39,372

Cash

54,595

551,402

Restricted cash

13,071

16,908

Receivables and straight-line rents (1)

25,437

54,096

Intangible assets, net (2)

28,759

86,363

Amounts receivable from Curbline

1,771

Other assets, net

7,526

5,434

Assets related to discontinued operations

921,632

Total Assets

933,602

4,061,350

Liabilities and Equity:

Revolving credit facilities

Unsecured debt

1,303,243

Unsecured term loan

198,856

Secured debt

301,373

98,418

301,373

1,600,517

Dividends payable

63,806

Amounts payable to Curbline

33,762

Other liabilities (3)

81,723

162,490

Liabilities related to discontinued operations

58,994

Total Liabilities

416,858

1,885,807

Preferred shares

175,000

Common shares

5,247

5,359

Paid-in capital

3,981,597

5,990,982

Distributions in excess of net income

(3,473,458)

(3,934,736)

Deferred compensation

8,041

5,167

Accumulated other comprehensive income

5,472

6,121

Common shares in treasury at cost

(10,155)

(72,350)

Total Equity

516,744

2,175,543

Total Liabilities and Equity

$933,602

$4,061,350

(1)

Straight-line rents (including fixed CAM), net

$8,653

$23,162

(2)

Operating lease right of use assets

15,818

17,373

(3)

Operating lease liabilities

35,532

37,108

Below-market leases, net

9,306

24,853

SITE Centers Corp.

Portfolio Summary

12/31/2024

9/30/2024 (1)

6/30/2024 (1)

3/31/2024 (1)

12/31/2023 (1)

Shopping Center Count

Operating Centers - 100%

Wholly Owned

JV Portfolio

Gross Leasable Area (GLA)

Owned and Ground Lease - Pro Rata Share

5,918

5,917

5,916

5,914

Wholly Owned

5,060

5,059

5,057

JV Portfolio - Pro Rata Share

858

857

Quarterly Operational Overview

Pro Rata Share

Base Rent PSF

$19.64

$19.60

$19.62

$19.55

$19.42

Base Rent PSF < 10K

$31.35

$31.12

$30.87

$30.62

$30.36

Base Rent PSF > 10K

$16.05

$16.18

$16.19

$16.13

Commenced Rate

90.6%

89.8%

90.6%

89.8%

89.6%

Commenced Rate < 10K SF

85.8%

84.8%

84.5%

83.2%

82.5%

Commenced Rate > 10K SF

92.1%

91.4%

92.5%

91.8%

Leased Rate

91.1%

91.3%

91.8%

91.7%

92.2%

Leased Rate < 10K SF

86.9%

87.0%

86.8%

86.3%

86.7%

Leased Rate > 10K SF

92.4%

92.7%

93.3%

93.9%

Top 10 MSA Exposure

MSA

Properties

GLA

% of GLA

ABR

% of ABR

ABR PSF

Chicago-Naperville-Elgin, IL-IN-WI

613

10.4%

$15,247

15.9%

$29.39

Trenton, NJ

759

12.8%

12,224

12.7%

$18.43

Orlando-Kissimmee-Sanford, FL

629

10.6%

11,819

12.3%

$20.89

Phoenix-Mesa-Scottsdale, AZ

501

8.5%

7,090

7.4%

$18.88

Atlanta-Sandy Springs-Roswell, GA

591

10.0%

6,798

7.1%

$15.40

Los Angeles-Long Beach-Anaheim, CA

390

6.6%

6,405

6.7%

$26.27

St. Louis, MO-IL

338

5.7%

5,565

5.8%

$25.70

Denver-Aurora-Lakewood, CO

413

7.0%

5,078

5.3%

$14.30

Cleveland-Elyria, OH

406

6.9%

5,054

5.3%

$12.79

New York-Newark-Jersey City, NY-NJ-PA

196

3.3%

4,387

4.6%

$24.82

Other

1,082

18.3%

16,475

17.1%

$17.46

Total

5,918

100.0%

$96,142

100.0%

$19.64

Note: $ and GLA in thousands except shopping center count and base rent PSF; Top 10 MSA figures for SITE at share except for property count. All results exclude the Company's owned Beachwood, OH headquarters office buildings.

(1) Amounts have been adjusted to reflect the removal of properties included in the Curbline Properties spin-off and assets sold in 2024

SITE Centers Corp.

Capital Structure

$, shares and units in thousands, except per share

December 31, 2024

December 31, 2023

Capital Structure

Market Value Per Share

$15.29

$13.63

Common Shares Outstanding (1)

52,430

209,328

Common Shares Equity

$801,655

$2,853,141

Perpetual Preferred Stock - Class A

175,000

Unsecured Credit Facilities

Unsecured Term Loan

200,000

Unsecured Notes Payable

1,305,758

Mortgage Debt (includes JVs at SITE share)

413,318

240,882

Total Debt (includes JVs at SITE share)

413,318

1,746,640

Less: Cash (including restricted cash)

77,071

581,760

Net Debt

$336,247

$1,164,880

Total Market Capitalization

$1,137,902

$4,193,020

SITE Centers Corp.

Debt Detail

$ in thousands

Contractual

Balance

Maturity

Interest Rate at

100%

SITE Share

Date

12/31/2024

Mortgage Debt

Deer Park Town Center, IL(1)

$61,178

$30,436

12/26

SOFR + 200

SITE Loan Pool (13 assets)(2)

206,900

09/28

SOFR + 275

Nassau Park Pavilion, NJ

99,862

11/28

6.66%

DTP Loan Pool (10 assets)

380,600

76,120

01/29

6.38%

$748,540

$413,318

Consolidated

$306,762

Unconsolidated

441,778

106,556

Consolidated & Unconsolidated Debt Subtotal

748,540

413,318

Unamortized Loan Costs, Net

(20,705)

(8,503)

Total Consolidated & Unconsolidated Debt

$727,835

$404,815

Weighted

Rate Type

Weighted

Average Interest

Average Years

Rate

Fixed

$480,462

$175,982

3.9 years

6.54%

Variable

268,078

237,336

3.5 years

6.82%

$748,540

$413,318

3.8 years

6.70%

Note: Maturity dates assume all borrower extension options are exercised.

Disclaimer

Site Centers Corp. published this content on February 27, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 27, 2025 at 11:30:04.636.