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SITE Centers Reports Third Quarter 2020 Operating Results

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SITE Centers Corp. (NYSE:SITC) today announced operating results for the quarter ended September 30, 2020.

"We made continued progress in terms of store openings and collections in the third quarter and we are encouraged by improving leasing activity and volume," commented David R. Lukes, President and Chief Executive Officer. "With the closing of the first of the two Blackstone joint venture transactions earlier this month, we added to our liquidity position and the Company remains well positioned with no material near-term maturities and no material capital commitments."

Results for the Quarter

  • Third quarter net income attributable to common shareholders was $2.2 million, or $0.01 per diluted share, as compared to net income of $15.2 million, or $0.08 per diluted share, in the year-ago period. The period-over-period decrease in net income was primarily attributable to the impact of the COVID-19 pandemic partially offset by the change in the BRE preferred investment reserve.
  • Third quarter operating funds from operations attributable to common shareholders ("Operating FFO" or "OFFO") was $43.5 million, or $0.23 per diluted share, compared to $55.4 million, or $0.30 per diluted share, in the year-ago period.

Significant Third Quarter and Recent Activity

  • On October 15, 2020, an affiliate of Blackstone transferred its common equity interest in BRE DDR IV to the Company for consideration of $1.00 and the Company's preferred investment in the BRE DDR IV joint venture was redeemed, thereby leaving the Company as the sole owner of (i) the seven properties owned by the BRE DDR IV joint venture, including Echelon Village Plaza and Larkin's Corner, in which the Company did not previously have a material economic interest, and (ii) BRE DDR IV's restricted and unrestricted cash ($8.9 million in the aggregate as of October 15, 2020). These seven properties are subject to existing mortgage loans which had an aggregate outstanding principal balance of $146.6 million as of October 15, 2020. Additional details are provided in the "BRE DDR Joint Ventures" section of this release.
  • Sold one unconsolidated shopping center and a wholly-owned land parcel for an aggregate sales price of $2.9 million or $0.7 million at the Company's share.
  • As previously disclosed, on September 14, 2020, the Company eliminated the executive position of Chief Operating Officer resulting in a separation charge of $1.7 million. The charge is excluded from third quarter and full year OFFO.

Key Quarterly Operating Results

  • Reported a decrease of 17.8% in same store net operating income on a pro rata basis for the third quarter of 2020, excluding redevelopment primarily due to the impact of the COVID-19 pandemic. Including redevelopment, same store net operating income for the third quarter of 2020 decreased by 16.5%.
  • Generated new leasing spreads of 12.9% and renewal leasing spreads of 5.5%, both on a pro rata basis, for the quarter and new leasing spreads of 17.7% and renewal leasing spreads of 4.1%, both on a pro rata basis, for the trailing twelve-month period.
  • Reported a leased rate of 91.9% at September 30, 2020 on a pro rata basis, compared to 92.4% on a pro rata basis at June 30, 2020 and 94.2% at September 30, 2019. The sequential decline was primarily related to the bankruptcy of Ascena and Pier 1 with the Company's anchored leased rate increasing 40 basis points sequentially due to new leasing activity.
  • As of September 30, 2020, the signed but not opened spread was 220 basis points representing $10.9 million of annualized base rent on a pro rata basis scheduled to commence.
  • Annualized base rent per occupied square foot on a pro rata basis was $18.53 at September 30, 2020, compared to $18.04 at September 30, 2019.

COVID-19 Update

  • Reopened SITE Centers' headquarters in Cleveland, Ohio and select regional offices in order to allow employees to return on a voluntary basis. The Company continues to offer remote working to respond to the needs of our employees.
  • COVID-19 pandemic response remains at the forefront of our property operations objectives. As tenants ramped up their in-store operations, SITE Centers worked to facilitate curbside and online purchase pick-up, continued with the Company's social media and property level promotional programs, and worked to promote social distancing and CDC protocols among shopping center patrons through signage and other measures. Our property operations teams continued to maintain heightened cleaning and disinfection procedures in accordance with CDC guidelines and worked diligently to promote that vendor partners' operations in accordance with SITE's Vendor COVID Operating Protocol.
  • As of October 23, 2020, all of the Company's properties remain open and operational with 98% of tenants, at the Company's share and based on average base rents, open for business. This compares to an open rate low of 45% as of April 5, 2020 and 92% as of July 24, 2020.
  • As of October 23, 2020, the Company's tenants had paid approximately 70% of second quarter rent and 84% of third quarter rent. The payment rates for the Company's tenants are reflected as follows:

 

 

Second Quarter 2020

 

July 2020

 

August 2020

 

September 2020

 

October 2020

As of October 23, 2020

 

70%

 

80%

 

82%

 

90%

 

90%

As of July 24, 2020

 

64%

 

71%

 

N/A

 

N/A

 

N/A

  • As of October 23, 2020, the Company has reached deferral arrangements with tenants representing 16% of second quarter 2020 rents and 8% of third quarter 2020 rents.

BRE DDR Joint Ventures

On July 14, 2020, the Company entered into agreements with affiliates of Blackstone to terminate the BRE DDR III and BRE DDR IV joint ventures. As described above, the BRE DDR IV transaction closed on October 15, 2020. BRE DDR III is expected to close by year end. At the closing of the BRE DDR III transaction, the Company will transfer its common and preferred equity interests in BRE DDR III to an affiliate of Blackstone in exchange for (i) BRE DDR III's interests in White Oak Village and Midtowne Park, (ii) 50% of the unrestricted cash then held by BRE DDR III (BRE DDR III's unrestricted cash balance was $18.5 million as of September 30, 2020), and (iii) $1.9 million in cash. At closing, the White Oak Village and Midtowne Park properties will continue to be subject to existing mortgage loans which had an aggregate outstanding principal balance of $50.0 million as of September 30, 2020. This transaction is expected to close in the fourth quarter of 2020 as soon as all applicable conditions have been satisfied including receipt of lender consents.

BRE DDR IV Acquisition Properties (Closed October 15, 2020)

Center

 

MSA

 

Location

 

ST

 

SITE

Own %

 

JV

 

Owned

GLA

 

Total

GLA

 

ABR

PSF

Concourse Village

 

Miami-Fort Lauderdale-West Palm Beach, FL

 

Jupiter

 

FL

 

5%

 

BREDDR IV

 

134

 

134

 

$17.40

Millenia Crossing

 

Orlando-Kissimmee-Sanford, FL

 

Orlando

 

FL

 

5%

 

BREDDR IV

 

100

 

100

 

$26.30

Echelon Village Plaza

 

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

 

Voorhees

 

NJ

 

0%

 

BREDDR IV

 

89

 

89

 

$20.58

The Hub

 

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

 

Hempstead

 

NY

 

5%

 

BREDDR IV

 

249

 

249

 

$12.42

Southmont Plaza

 

Allentown-Bethlehem-Easton, PA-NJ

 

Easton

 

PA

 

5%

 

BREDDR IV

 

251

 

386

 

$16.25

Ashbridge Square

 

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

 

Downingtown

 

PA

 

5%

 

BREDDR IV

 

386

 

386

 

$9.47

Larkin's Corner

 

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

 

Boothwyn

 

PA

 

0%

 

BREDDR IV

 

225

 

225

 

$9.78

BRE DDR III Acquisition Properties

Center

 

MSA

 

Location

 

ST

 

SITE

Own %

 

JV

 

Owned

GLA

 

Total

GLA

 

ABR

PSF

Midtowne Park

 

Greenville-Anderson-Mauldin, SC

 

Anderson

 

SC

 

5%

 

BREDDR III

 

167

 

174

 

$9.83

White Oak Village

 

Richmond, VA

 

Richmond

 

VA

 

5%

 

BREDDR III

 

432

 

956

 

$15.99

About SITE Centers Corp.

SITE Centers is an owner and manager of open-air shopping centers that provide a highly-compelling shopping experience and merchandise mix for retail partners and consumers. 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. 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 8:30 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 9120571 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' web site 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 10148482 through November 27, 2020. 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.

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.

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 and the ability to satisfy conditions of such terminations; 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 and our ability to maintain REIT status; and the finalization of the financial statements for the period ended September 30, 2020. 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 and Form 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

 

 

 

 

 

 

 

3Q20

 

3Q19

 

9M20

 

9M19

 

Revenues:

 

 

 

 

 

 

 

 

 

Rental income (1)

 

$95,874

 

$108,060

 

$306,482

 

$332,555

 

Other property revenues

 

70

 

759

 

1,804

 

3,404

 

Business interruption income

 

0

 

885

 

0

 

885

 

 

 

95,944

 

109,704

 

308,286

 

336,844

 

Expenses:

 

 

 

 

 

 

 

 

 

Operating and maintenance

 

15,775

 

16,738

 

50,774

 

54,322

 

Real estate taxes

 

16,542

 

16,721

 

51,547

 

52,262

 

 

 

32,317

 

33,459

 

102,321

 

106,584

 

 

 

 

 

 

 

 

 

 

 

Net operating income

 

63,627

 

76,245

 

205,965

 

230,260

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Fee income (2)

 

9,610

 

12,821

 

34,149

 

45,360

 

Interest income

 

3,445

 

4,616

 

10,480

 

13,658

 

Interest expense

 

(18,089)

 

(21,160)

 

(58,487)

 

(63,973)

 

Depreciation and amortization

 

(41,148)

 

(40,732)

 

(125,014)

 

(123,400)

 

General and administrative (3)

 

(13,664)

 

(15,304)

 

(38,542)

 

(44,348)

 

Other expense, net (4)

 

(186)

 

(322)

 

(18,207)

 

(254)

 

Impairment charges

 

0

 

(2,750)

 

0

 

(3,370)

 

Income before earnings from JVs and other

 

3,595

 

13,414

 

10,344

 

53,933

 

 

 

 

 

 

 

 

 

 

 

Equity in net income of JVs

 

250

 

2,612

 

908

 

5,446

 

Adjustment (reserve) of preferred equity interests

 

3,542

 

(6,373)

 

(19,393)

 

(12,106)

 

Gain on sale of joint venture interest

 

82

 

0

 

45,635

 

0

 

Gain on disposition of real estate, net

 

218

 

14,497

 

993

 

31,087

 

Tax expense

 

(284)

 

(249)

 

(859)

 

(827)

 

Net income

 

7,403

 

23,901

 

37,628

 

77,533

 

Non-controlling interests

 

(116)

 

(271)

 

(621)

 

(836)

 

Net income SITE Centers

 

7,287

 

23,630

 

37,007

 

76,697

 

Preferred dividends

 

(5,133)

 

(8,382)

 

(15,399)

 

(25,148)

 

Net income Common Shareholders

 

$2,154

 

$15,248

 

$21,608

 

$51,549

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares – Basic – EPS

 

193,203

 

180,567

 

193,366

 

180,555

 

Assumed conversion of diluted securities

 

162

 

940

 

0

 

1,064

 

Weighted average shares – Basic & Diluted – EPS

 

193,365

 

181,507

 

193,366

 

181,619

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share – Basic

 

$0.01

 

$0.08

 

$0.11

 

$0.28

 

Earnings per common share – Diluted

 

$0.01

 

$0.08

 

$0.11

 

$0.28

 

 

 

 

 

 

 

 

 

 

(1)

Rental income:

 

 

 

 

 

 

 

 

 

Minimum rents

 

$76,735

 

$75,293

 

$228,416

 

$225,131

 

Ground lease minimum rents

 

5,418

 

5,018

 

16,319

 

15,059

 

Recoveries

 

25,833

 

26,018

 

80,371

 

81,466

 

Uncollectible revenue

 

(14,188)

 

(505)

 

(27,918)

 

(178)

 

Percentage and overage rent

 

806

 

553

 

1,770

 

2,839

 

Ancillary and other rental income

 

1,194

 

1,295

 

4,260

 

5,233

 

Lease termination fees

 

76

 

388

 

3,264

 

3,005

 

 

 

 

 

 

 

 

 

 

(2)

Fee Income:

 

 

 

 

 

 

 

 

 

JV and other fees

 

4,037

 

6,783

 

15,416

 

21,905

 

RVI fees

 

4,717

 

5,492

 

16,111

 

18,495

 

RVI disposition fees

 

856

 

546

 

2,622

 

3,160

 

RVI refinancing fee

 

0

 

0

 

0

 

1,800

 

 

 

 

 

 

 

 

 

 

(3)

Mark-to-market adjustment (PRSUs)

 

(289)

 

(1,418)

 

1,617

 

(2,818)

 

Executive separation charge

 

(1,650)

 

0

 

(1,650)

 

0

 

 

 

 

 

 

 

 

 

 

(4)

Other income (expense), net

 

 

 

 

 

 

 

 

 

Transaction and other expense, net

 

(186)

 

0

 

(1,021)

 

164

 

Debt extinguishment costs, net

 

0

 

(322)

 

(17,186)

 

(418)

SITE Centers Corp.

Reconciliation: Net Income to FFO and Operating FFO

and Other Financial Information

 

in thousands, except per share

 

 

 

 

 

 

 

3Q20

 

3Q19

 

9M20

 

9M19

 

Net income attributable to Common Shareholders

 

$2,154

 

$15,248

 

$21,608

 

$51,549

 

Depreciation and amortization of real estate

 

39,812

 

39,329

 

120,889

 

118,924

 

Equity in net income of JVs

 

(250)

 

(2,612)

 

(908)

 

(5,446)

 

JVs' FFO

 

4,388

 

8,498

 

14,529

 

24,169

 

Non-controlling interests

 

0

 

28

 

28

 

84

 

Impairment of real estate

 

0

 

2,750

 

0

 

3,370

 

(Adjustment) reserve of preferred equity interests

 

(3,542)

 

6,373

 

19,393

 

12,106

 

Gain on sale of joint venture interest

 

(82)

 

0

 

(45,635)

 

0

 

Gain on disposition of real estate, net

 

(218)

 

(14,497)

 

(993)

 

(31,087)

 

FFO attributable to Common Shareholders

 

$42,262

 

$55,117

 

$128,911

 

$173,669

 

RVI disposition and refinancing fees

 

(856)

 

(546)

 

(2,622)

 

(4,960)

 

Mark-to-market adjustment (PRSUs)

 

289

 

1,418

 

(1,617)

 

2,818

 

Hurricane property income, net

 

0

 

(885)

 

0

 

(885)

 

Executive separation charge

 

1,650

 

0

 

1,650

 

0

 

Debt extinguishment, transaction, net

 

186

 

322

 

18,207

 

443

 

Joint ventures - debt extinguishment, other

 

0

 

(52)

 

42

 

(6)

 

Total non-operating items, net

 

1,269

 

257

 

15,660

 

(2,590)

 

Operating FFO attributable to Common Shareholders

 

$43,531

 

$55,374

 

$144,571

 

$171,079

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares & units – Basic: FFO & OFFO

 

193,343

 

180,708

 

193,507

 

180,697

 

Assumed conversion of dilutive securities

 

21

 

940

 

0

 

1,064

 

Weighted average shares & units – Diluted: FFO & OFFO

 

193,364

 

181,648

 

193,507

 

181,761

 

 

 

 

 

 

 

 

 

 

 

FFO per share – Basic

 

$0.22

 

$0.31

 

$0.67

 

$0.96

 

FFO per share – Diluted

 

$0.22

 

$0.30

 

$0.67

 

$0.96

 

Operating FFO per share – Basic

 

$0.23

 

$0.31

 

$0.75

 

$0.95

 

Operating FFO per share – Diluted

 

$0.23

 

$0.30

 

$0.75

 

$0.94

 

Common stock dividends declared, per share

 

$0.00

 

$0.20

 

$0.20

 

$0.60

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures (SITE Centers share):

 

 

 

 

 

 

 

 

 

Development and redevelopment costs

 

3,289

 

20,207

 

17,431

 

41,594

 

Maintenance capital expenditures

 

3,394

 

3,846

 

10,989

 

9,673

 

Tenant allowances and landlord work

 

2,655

 

8,600

 

18,246

 

23,606

 

Leasing commissions

 

786

 

1,542

 

2,412

 

3,625

 

Construction administrative costs (capitalized)

 

715

 

924

 

2,195

 

2,484

 

 

 

 

 

 

 

 

 

 

 

Certain non-cash items (SITE Centers share):

 

 

 

 

 

 

 

 

 

Straight-line rent

 

739

 

566

 

(390)

 

1398

 

Straight-line fixed CAM

 

155

 

196

 

450

 

581

 

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

 

1,230

 

1,058

 

3,780

 

3,328

 

Straight-line rent expense

 

(45)

 

(186)

 

(167)

 

(1,020)

 

Debt fair value and loan cost amortization

 

(1,233)

 

(1,166)

 

(3,587)

 

(3,429)

 

Capitalized interest expense

 

234

 

400

 

792

 

951

 

Stock compensation expense

 

(2,710)

 

(3,628)

 

(5,088)

 

(9,095)

 

Non-real estate depreciation expense

 

(1,270)

 

(1,352)

 

(3,938)

 

(4,282)

SITE Centers Corp.

Balance Sheet: Consolidated Interests

 

$ in thousands

 

 

 

 

 

 

 

At Period End

 

 

 

3Q20

 

4Q19

 

Assets:

 

 

 

 

 

Land

 

$881,543

 

$881,397

 

Buildings

 

3,312,645

 

3,277,440

 

Fixtures and tenant improvements

 

501,431

 

491,312

 

 

 

4,695,619

 

4,650,149

 

Depreciation

 

(1,393,578)

 

(1,289,148)

 

 

 

3,302,041

 

3,361,001

 

Construction in progress and land

 

52,042

 

59,663

 

Real estate, net

 

3,354,083

 

3,420,664

 

 

 

 

 

 

 

Investments in and advances to JVs

 

79,119

 

181,906

 

Investment in and advances to affiliate (1)

 

190,770

 

190,105

 

Receivable – preferred equity interests, net

 

96,128

 

112,589

 

Cash

 

57,224

 

16,080

 

Restricted cash

 

289

 

3,053

 

Notes receivable

 

0

 

7,541

 

Receivables and straight-line (2)

 

79,208

 

60,594

 

Intangible assets, net (3)

 

67,766

 

79,813

 

Other assets, net

 

20,275

 

21,277

 

Total Assets

 

3,944,862

 

4,093,622

 

 

 

 

 

 

 

Liabilities and Equity:

 

 

 

 

 

Revolving credit facilities

 

175,000

 

5,000

 

Unsecured debt

 

1,449,075

 

1,647,963

 

Unsecured term loan

 

99,591

 

99,460

 

Secured debt

 

53,316

 

94,874

 

 

 

1,776,982

 

1,847,297

 

Dividends payable

 

5,133

 

44,036

 

Other liabilities (4)

 

203,035

 

220,811

 

Total Liabilities

 

1,985,150

 

2,112,144

 

 

 

 

 

 

 

Preferred shares

 

325,000

 

325,000

 

Common shares

 

19,400

 

19,382

 

Paid-in capital

 

5,706,225

 

5,700,400

 

Distributions in excess of net income

 

(4,083,405)

 

(4,066,099)

 

Deferred compensation

 

5,442

 

7,929

 

Other comprehensive income

 

(3,728)

 

(491)

 

Common shares in treasury at cost

 

(12,463)

 

(7,707)

 

Non-controlling interests

 

3,241

 

3,064

 

Total Equity

 

1,959,712

 

1,981,478

 

 

 

 

 

 

 

Total Liabilities and Equity

 

$3,944,862

 

$4,093,622

 

 

 

 

 

 

(1)

Preferred investment in RVI

 

$190,000

 

$190,000

 

Receivable from RVI

 

770

 

105

 

 

 

 

 

 

(2)

SL rents (including fixed CAM), net

 

32,021

 

31,909

 

 

 

 

 

 

(3)

Operating lease right of use assets

 

21,024

 

$21,792

 

 

 

 

 

 

(4)

Operating lease liabilities

 

40,174

 

40,725

 

Below-market leases, net

 

43,205

 

46,961

SITE Centers Corp.

Reconciliation of Net Income Attributable to SITE to Same Store NOI

$ in thousands

 

 

 

 

 

 

 

 

 

 

3Q20

 

3Q19

 

3Q20

 

3Q19

 

 

SITE Centers at 100%

 

At SITE Centers Share

(Non-GAAP)

GAAP Reconciliation:

 

 

 

 

 

 

 

 

Net income attributable to SITE Centers

 

$7,287

 

$23,630

 

$7,287

 

$23,630

Fee income

 

(9,610)

 

(12,821)

 

(9,610)

 

(12,821)

Interest income

 

(3,445)

 

(4,616)

 

(3,445)

 

(4,616)

Interest expense

 

18,089

 

21,160

 

18,089

 

21,160

Depreciation and amortization

 

41,148

 

40,732

 

41,148

 

40,732

General and administrative

 

13,664

 

15,304

 

13,664

 

15,304

Other expense, net

 

186

 

322

 

186

 

322

Impairment charges

 

0

 

2,750

 

0

 

2,750

Equity in net income of joint ventures

 

(250)

 

(2,612)

 

(250)

 

(2,612)

(Adjustment) reserve of preferred equity interests

 

(3,542)

 

6,373

 

(3,542)

 

6,373

Tax expense

 

284

 

249

 

284

 

249

Gain on sale of joint venture interest

 

(82)

 

0

 

(82)

 

0

Gain on disposition of real estate, net

 

(218)

 

(14,497)

 

(218)

 

(14,497)

Income from non-controlling interests

 

116

 

271

 

116

 

271

Consolidated NOI

 

63,627

 

76,245

 

63,627

 

76,245

SITE Centers' consolidated JV

 

0

 

0

 

(320)

 

(435)

Consolidated NOI, net of non-controlling interests

 

63,627

 

76,245

 

63,307

 

75,810

 

 

 

 

 

 

 

 

 

Net (loss) income from unconsolidated joint ventures

 

(4,748)

 

6,027

 

59

 

2,331

Interest expense

 

14,700

 

22,530

 

2,937

 

3,918

Depreciation and amortization

 

23,901

 

36,867

 

4,250

 

6,024

Impairment charges

 

0

 

0

 

0

 

0

Preferred share expense

 

4,626

 

5,544

 

231

 

277

Other expense, net

 

3,246

 

5,017

 

694

 

966

(Gain) loss on disposition of real estate, net

 

(319)

 

440

 

(43)

 

(10)

Unconsolidated NOI

 

$41,406

 

$76,425

 

8,128

 

13,506

 

 

 

 

 

 

 

 

 

Total Consolidated + Unconsolidated NOI

 

 

 

 

 

71,435

 

89,316

Less: Non-Same Store NOI adjustments

 

 

 

 

 

(1,699)

 

(5,788)

Total SSNOI including redevelopment

 

 

 

 

 

69,736

 

83,528

Less: Redevelopment Same Store NOI adjustments

 

 

 

 

 

(5,294)

 

(5,155)

Total SSNOI excluding redevelopment

 

 

 

 

 

$64,442

 

$78,373

 

 

 

 

 

 

 

 

 

SSNOI % Change including redevelopment

 

 

 

 

 

(16.5%)

 

 

SSNOI % Change excluding redevelopment

 

 

 

 

 

(17.8%)

 

 

SITE Centers Corp.

Reconciliation of Net Income Attributable to SITE to Same Store NOI

$ in thousands

 

 

 

 

 

 

 

 

 

 

9M20

 

9M19

 

9M20

 

9M19

 

 

SITE Centers at 100%

 

At SITE Centers Share

(Non-GAAP)

GAAP Reconciliation:

 

 

 

 

 

 

 

 

Net income attributable to SITE Centers

 

$37,007

 

$76,697

 

$37,007

 

$76,697

Fee income

 

(34,149)

 

(45,360)

 

(34,149)

 

(45,360)

Interest income

 

(10,480)

 

(13,658)

 

(10,480)

 

(13,658)

Interest expense

 

58,487

 

63,973

 

58,487

 

63,973

Depreciation and amortization

 

125,014

 

123,400

 

125,014

 

123,400

General and administrative

 

38,542

 

44,348

 

38,542

 

44,348

Other expense, net

 

18,207

 

254

 

18,207

 

254

Impairment charges

 

0

 

3,370

 

0

 

3,370

Equity in net income of joint ventures

 

(908)

 

(5,446)

 

(908)

 

(5,446)

Reserve of preferred equity interests

 

19,393

 

12,106

 

19,393

 

12,106

Tax expense

 

859

 

827

 

859

 

827

Gain on sale of joint venture interest

 

(45,635)

 

0

 

(45,635)

 

0

Gain on disposition of real estate, net

 

(993)

 

(31,087)

 

(993)

 

(31,087)

Income from non-controlling interests

 

621

 

836

 

621

 

836

Consolidated NOI

 

205,965

 

230,260

 

205,965

 

230,260

SITE Centers' consolidated JV

 

0

 

0

 

(1,200)

 

(1,314)

Consolidated NOI, net of non-controlling interests

 

205,965

 

230,260

 

204,765

 

228,946

 

 

 

 

 

 

 

 

 

Net (loss) income from unconsolidated joint ventures

 

(36,455)

 

13,846

 

366

 

4,676

Interest expense

 

47,555

 

73,472

 

9,251

 

12,742

Depreciation and amortization

 

77,580

 

113,340

 

13,665

 

18,195

Impairment charges

 

33,240

 

12,267

 

1,890

 

2,453

Preferred share expense

 

13,710

 

16,487

 

685

 

824

Other expense, net

 

10,844

 

16,358

 

2,250

 

2,988

(Gain) loss on disposition of real estate, net

 

(9,229)

 

(15,205)

 

(1,778)

 

1,515

Unconsolidated NOI

 

$137,245

 

$230,565

 

26,329

 

43,393

 

 

 

 

 

 

 

 

 

Total Consolidated + Unconsolidated NOI

 

 

 

 

 

231,094

 

272,339

Less: Non-Same Store NOI adjustments

 

 

 

 

 

(7,098)

 

(21,620)

Total SSNOI including redevelopment

 

 

 

 

 

223,996

 

250,719

Less: Redevelopment Same Store NOI adjustments

 

 

 

 

 

(15,791)

 

(16,157)

Total SSNOI excluding redevelopment

 

 

 

 

 

$208,205

 

$234,562

 

 

 

 

 

 

 

 

 

SSNOI % Change including redevelopment

 

 

 

 

 

(10.7%)

 

 

SSNOI % Change excluding redevelopment

 

 

 

 

 

(11.2%)

 

 

 

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