SITC SITE Centers Corp

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 (prior)

Per Share – Diluted

FY 2021E (revised)

Per Share – 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 (reported actual)

(0.07)

(0.07)

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 (reported actual)

0.03

0.03

Write-off of Class K Preferred Share original issuance costs

0.03

0.03

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 million

$12 – $14 million

RVI fee income (excluding disposition fees) (1)

$13 – $17 million

$15 – $17 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.

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 and other

17,409

 

2,456

 

15,682

 

6,749

 

 

 

 

 

 

 

 

 

 

Equity in net income (loss) of JVs

4,850

 

(1,513)

 

9,235

 

658

 

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

 

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 original issuance costs

(5,156)

 

0

 

(5,156)

 

0

 

Preferred dividends

(2,945)

 

(5,133)

 

(8,078)

 

(10,266)

 

Net income (loss) Common Shareholders

$13,768

 

($9,746)

 

$24,643

 

$19,454

 

 

 

 

 

 

 

 

 

 

Weighted average shares – Basic – EPS

211,035

 

193,170

 

204,819

 

193,448

 

Assumed conversion of diluted securities

846

 

0

 

808

 

0

 

Weighted average shares – Basic & Diluted – EPS

211,881

 

193,170

 

205,627

 

193,448

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share – Basic

$0.06

 

$(0.05)

 

$0.12

 

$0.10

 

Earnings (loss) per common share – Diluted

$0.06

 

$(0.05)

 

$0.12

 

$0.10

 

 

 

 

 

 

 

 

 

(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)/below-market rent, net

870

 

1,007

 

1,874

 

2,031

 

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, net

(165)

 

(612)

 

(352)

 

(835)

 

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.

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

 

 

 

 

 

 

 

 

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/

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