Exhibit 99.1

QUARTERLY FINANCIAL SUPPLEMENT FOR THE PERIOD ENDED SEPTEMBER 30, 2018 SITE

 

 

 


 

SITE Centers Corp.

Table of Contents

 

Section

Page

 

 

Earnings Release & Financial Statements

 

Press Release

1-10

 

 

Company Summary

 

Portfolio Summary

11

Capital Structure

12

Same Store Metrics

13

Leasing Summary

14

Top 50 Tenants

15

Lease Expirations

16

 

 

Investments

 

Redevelopments

17

Dispositions

18

 

 

Debt Summary

 

Debt Summary

19

Consolidated Debt Detail

20

Unconsolidated Debt Detail

21-22

Debt/Adjusted EBITDA

23

 

 

Unconsolidated Joint Ventures

 

Unconsolidated Joint Ventures

24-26

 

 

Shopping Center Summary

 

Top 20 MSA Exposure

27

Property List

28-33

 

 

Reporting Policies and Other

 

Notable Accounting and Supplemental Policies

34-35

Non-GAAP Measures and Reconciliations

36-39

Leasing Metrics for Wholly-Owned and Unconsolidated Joint Ventures at 100%

40-44

 

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, 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 at 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 or our failure 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; the success of our deleveraging strategy; our ability to maintain REIT status; and the finalization of the financial statements for the period ended September 30, 2018. 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 Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

 

 

 


 

 

For immediate release:

 

SITE CENTERS REPORTS THIRD QUARTER 2018 OPERATING RESULTS

 

BEACHWOOD, OHIO, October 24, 2018 – SITE Centers Corp. (NYSE: SITC), formerly known as DDR Corp. today announced operating results for the quarter ended September 30, 2018.  

 

“Our third quarter results represent clear progress on achievement of the multi-year strategic plan we presented at investor day,” commented David R. Lukes, president and chief executive officer.  “Same store NOI and FFO per share were above our own expectations, and our quarterly leasing volumes should help us achieve our multi-year leasing goals.  We also made significant progress on the capital side of our strategic plan with continued advances of our redevelopment pipeline.”

 

Results for the Quarter

 

Third quarter net loss attributable to common shareholders was $17.3 million, or $0.09 per diluted share, as compared to net loss of $7.4 million, or $0.04 per diluted share, in the year ago-period. The year-over-year increase in net loss is primarily attributable to the dilutive impact of the spin-off transaction and lower gain on sale of real estate partially offset by lower interest expense and debt extinguishment costs.

 

Third quarter operating funds from operations attributable to common shareholders (“Operating FFO” or “OFFO”) was $61.0 million, or $0.33 per diluted share, compared to $111.2 million, or $0.60 per diluted share, in the year ago-period. The year-over-year decrease in OFFO is primarily attributable to the dilutive impact of the spin-off transaction partially offset by lower interest expense.

 

Changed the presentation of property management related expenses to reflect industry convention for the presentation of such costs.  The impact for the third quarter of 2018 and 2017 was $1.7 million and $3.0 million, respectively, which was reclassified from General and administrative expenses to Operating and maintenance expenses.  There is no impact to Net income, FFO or OFFO.

 

Significant Third Quarter Activity

 

On July 1, 2018, completed the previously announced spin-off of Retail Value Inc. (“RVI”), an independent company listed on the New York Stock Exchange under the ticker symbol RVI. RVI owned a portfolio of 48 assets that included 36 continental U.S. assets and all 12 of SITE’s previously owned Puerto Rico assets at the time of the spin-off.  SITE has retained a preferred stock investment of $190 million in RVI and will continue to manage the RVI assets.  

 

Sold 11 shopping centers and land parcels for an aggregate sales price of $261.5 million, totaling $42.6 million at SITE’s share, including $21.7 million from the repayment of the Company’s preferred equity investment in its two joint ventures with Blackstone.  

 

Key Quarterly Operating Results

 

Reported 2.2% same store net operating income growth on a pro rata basis for the quarter.

 

Generated new leasing spreads of 20.6% and renewal leasing spreads of 8.2%, both on a pro rata basis for the quarter, and new leasing spreads of 23.0% and renewal leasing spreads of 6.6%, both on a pro rata basis for the trailing twelve-month period.

 

Reported a leased rate of 92.7% at September 30, 2018 on a pro rata basis, compared to 93.4% at September 30, 2017.

 

Annualized base rent per occupied square foot on a pro rata basis was $17.47 at September 30, 2018, compared to $17.13 at September 30, 2017.

1


 

Guidance

There has been no change in the Company’s Operating FFO per share guidance since the update provided on October 9, 2018. The Company continues to estimate Operating FFO for the fourth quarter of 2018 to be at least $0.30 per diluted share and estimates Operating FFO for 2019 to be from $1.15 to $1.20 per diluted share.  Disposition fees from RVI are excluded from Operating FFO guidance.  The growth in SSNOI for the year ending December 31, 2018 is still estimated to be at least 1.5% and the growth in SSNOI for the year ending December 31, 2019 is estimated to range between 1% - 2%, both estimates excluding major redevelopment.  

 

Reconciliations of Net Income Attributable to Common Shareholders to FFO and Operating FFO estimates:

 

 

4Q2018E

Per Share – Diluted

 

FY2019E

Per Share – Diluted

Net income attributable to common shareholders

$0.03 – $0.07

 

$0.20 – $0.27

Depreciation and amortization of real estate

0.24 – 0.25

 

0.86 – 0.89

Equity in net (income) of JVs

(0.01) – (0.03)

 

(0.04) – (0.05)

JVs' FFO

0.03 – 0.04

 

0.10 – 0.12

FFO (NAREIT) and Operating FFO

at least    $0.30

 

$1.15 – $1.20

 

Other key assumptions for 2019 guidance include:

 

 

 

 

FY2019E

RVI fee income

 

 

$24 - $26 million

Joint Venture fee income

 

 

$17 - $21 million

Interest income

 

 

$14 - $17 million

General & administrative expenses(1)

 

 

$63 million

 

 

 

 

 

(1)

Adjusted to reflect the reclassification of approximately $7 million of expense to Operating and maintenance expenses.

About SITE Centers Corp.

SITE 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 www.sitecenters.com.  

 

Conference Call and Supplemental Information

The Company will hold its quarterly conference call today at 5:00 p.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 1026254 at least ten minutes prior to the scheduled start of the call. A replay of the conference call will also be available at ir.sitecenters.com for one year after the call. A copy of the Company’s Supplemental package is 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 GAAP), adjusted to exclude (i) preferred share dividends, (ii) gains and losses from disposition of depreciable real estate property and related investments, which are presented net of taxes, (iii) impairment charges on depreciable real estate property and related investments and (iv) 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 the

2


 

National Association of Investment Trusts (“NAREIT”). The Company calculates Operating FFO by 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, hurricane-related activity, 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 and expenses, lease termination income, 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 and expenses. 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.

 

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 are included in this release and the accompanying financial supplement.  Reconciliations of 2018 and 2019 SSNOI projected growth targets to the most directly comparable GAAP financial measure are not provided because the Company is unable to provide such reconciliations without unreasonable effort.

 


3


 

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, 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 or our failure 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; the success of our deleveraging strategy; our ability to maintain REIT status; and the finalization of the financial statements for the period ended September 30, 2018. 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 Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

 

 

4


SITE Centers Corp.

Income Statement:  Consolidated Interests

 

$ in thousands, except per share

 

 

 

 

 

3Q18

 

3Q17

 

9M18

 

9M17

 

Revenues (1):

 

 

 

 

 

 

 

 

Minimum rents (2)

$92,159

 

$153,925

 

$380,724

 

$485,777

 

Percentage rent

600

 

1,016

 

3,861

 

4,538

 

Recoveries

31,951

 

51,368

 

133,863

 

164,477

 

Other property revenues (3)

2,483

 

13,824

 

14,923

 

23,723

 

Business interruption income

1,784

 

0

 

6,884

 

0

 

 

128,977

 

220,133

 

540,255

 

678,515

 

Expenses (4):

 

 

 

 

 

 

 

 

Operating and maintenance

18,386

 

31,926

 

85,473

 

103,845

 

Real estate taxes

21,211

 

30,618

 

83,712

 

98,691

 

 

39,597

 

62,544

 

169,185

 

202,536

 

 

 

 

 

 

 

 

 

 

Net operating income

89,380

 

157,589

 

371,070

 

475,979

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Fee income (5)

15,118

 

7,291

 

30,424

 

25,517

 

Interest income

5,055

 

6,807

 

15,412

 

22,365

 

Interest expense

(26,962)

 

(46,296)

 

(115,915)

 

(147,031)

 

Depreciation and amortization

(49,629)

 

(85,210)

 

(196,515)

 

(266,370)

 

General and administrative (6)

(15,232)

 

(13,449)

 

(45,353)

 

(60,499)

 

Other income (expense), net (7)

(1,454)

 

(64,340)

 

(99,316)

 

(65,298)

 

Impairment charges

(19,890)

 

(10,284)

 

(68,394)

 

(60,353)

 

Hurricane property and impairment loss (8)

157

 

(6,089)

 

(817)

 

(6,089)

 

Loss before earnings from JVs and other

(3,457)

 

(53,981)

 

(109,404)

 

(81,779)

 

 

 

 

 

 

 

 

 

 

Equity in net (loss) income of JVs

(2,920)

 

4,811

 

9,687

 

2,429

 

(Reserve) adjustment of preferred equity interests

(2,201)

 

15,377

 

(4,537)

 

(60,623)

 

Valuation allowance of prepaid tax asset

0

 

(8,777)

 

0

 

(8,777)

 

Tax expense

(238)

 

(490)

 

(611)

 

(1,186)

 

Gain on disposition of real estate, net

124

 

44,291

 

39,643

 

127,017

 

Net (loss) income

(8,692)

 

1,231

 

(65,222)

 

(22,919)

 

Non-controlling interests

(239)

 

(248)

 

(1,191)

 

(728)

 

Net (loss) income SITE

(8,931)

 

983

 

(66,413)

 

(23,647)

 

Preferred dividends

(8,382)

 

(8,383)

 

(25,148)

 

(20,376)

 

Net loss Common Shareholders

($17,313)

 

($7,400)

 

($91,561)

 

($44,023)

 

 

 

 

 

 

 

 

 

 

Weighted average shares – Basic & Diluted – EPS (9)

184,655

 

183,843

 

184,616

 

183,519

 

 

 

 

 

 

 

 

 

 

Earnings per common share – Basic & Diluted (9)

($0.09)

 

($0.04)

 

($0.50)

 

($0.24)

 

 

 

 

 

 

 

 

 

 

Revenue items:

 

 

 

 

 

 

 

(1)

Lost revenue related to hurricane

$0

 

($2,558)

 

($6,570)

 

($2,558)

(2)

Ground lease revenue

5,305

 

10,625

 

24,875

 

32,314

(3)

Lease termination fees

99

 

9,380

 

3,316

 

10,188

 

 

 

 

 

 

 

 

 

(4)

Operating expenses:

 

 

 

 

 

 

 

 

Bad debt expense

(132)

 

(1,335)

 

(31)

 

(2,591)

 

 

 

 

 

 

 

 

 

(5)

Fee Income:

 

 

 

 

 

 

 

 

JV and other fees

6,265

 

7,291

 

21,571

 

25,517

 

RVI fees

7,231

 

0

 

7,231

 

0

 

RVI disposition fees

1,622

 

0

 

1,622

 

0

 

 

 

 

 

 

 

 

 

(6)

General and administrative expenses:

 

 

 

 

 

 

 

 

Separation charges

0

 

0

 

(4,641)

 

(16,552)

 

Internal leasing expenses

(1,182)

 

(1,190)

 

(3,760)

 

(4,040)

 

Construction administrative costs (capitalized)

1,120

 

1,681

 

3,682

 

5,899

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5


SITE Centers Corp.

Income Statement:  Consolidated Interests

 

$ in thousands

 

 

 

 

 

3Q18

 

3Q17

 

9M18

 

9M17

(7)

Other income (expense), net

 

 

 

 

 

 

 

 

Transaction and other expense, net

(1,421)

 

1,506

 

(40,883)

 

1,144

 

Debt extinguishment costs, net

(33)

 

(65,846)

 

(58,433)

 

(66,442)

 

 

(1,454)

 

(64,340)

 

(99,316)

 

(65,298)

 

 

 

 

 

 

 

 

 

(8)

Hurricane property and impairment loss

 

 

 

 

 

 

 

 

Impairment charge (property damage deductible)

0

 

(5,100)

 

0

 

(5,100)

 

Clean up costs and other expenses

157

 

(989)

 

(817)

 

(989)

 

 

157

 

(6,089)

 

(817)

 

(6,089)

 

 

 

 

 

 

 

 

 

(9)

Prior periods presented have been adjusted to reflect the Company's one-for-two reverse stock split.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6


SITE Centers Corp.

Reconciliation:  Net (Loss) Income to FFO and Operating FFO

and Other Financial Information

 

$ in thousands, except per share

 

 

 

 

 

3Q18

 

3Q17

 

9M18

 

9M17

 

Net loss attributable to Common Shareholders

($17,313)

 

($7,400)

 

($91,561)

 

($44,023)

 

Depreciation and amortization of real estate

48,242

 

81,064

 

191,997

 

258,137

 

Equity in net loss (income) of JVs

2,920

 

(4,811)

 

(9,687)

 

(2,429)

 

JVs' FFO

7,060

 

8,268

 

20,871

 

21,062

 

Non-controlling interests

28

 

76

 

587

 

227

 

Impairment of depreciable real estate (1)

19,890

 

13,620

 

68,394

 

54,603

 

Gain on disposition of depreciable real estate, net

(124)

 

(44,477)

 

(38,809)

 

(125,900)

 

FFO attributable to Common Shareholders

$60,703

 

$46,340

 

$141,792

 

$161,677

 

RVI disposition fees

(1,622)

 

0

 

(1,622)

 

0

 

Reserve (adjustment) of preferred equity interests

2,201

 

(15,377)

 

4,537

 

60,623

 

Hurricane property (income) loss, net (2)

(1,941)

 

3,616

 

504

 

3,616

 

Impairment charges non-depreciable assets

0

 

1,764

 

0

 

10,850

 

Separation charges

0

 

0

 

4,641

 

16,552

 

Debt extinguishment, transaction, other, net

1,475

 

65,835

 

99,337

 

66,782

 

Joint ventures - debt extinguishment, transaction, other

187

 

95

 

890

 

778

 

Valuation allowance of Puerto Rico prepaid tax asset

0

 

8,777

 

0

 

8,777

 

Loss (gain) on disposition of non-depreciable real estate, net

0

 

186

 

(834)

 

(1,117)

 

Total non-operating items, net

300

 

64,896

 

107,453

 

166,861

 

Operating FFO attributable to Common Shareholders

$61,003

 

$111,236

 

$249,245

 

$328,538

 

 

 

 

 

 

 

 

 

 

Weighted average shares & units Basic: FFO & OFFO (3)

184,803

 

184,080

 

184,775

 

183,772

 

Assumed conversion of dilutive securities (3)

9

 

18

 

8

 

28

 

Weighted average shares & units – Diluted: FFO & OFFO (3)

184,812

 

184,098

 

184,783

 

183,800

 

 

 

 

 

 

 

 

 

 

FFO per share – Basic & Diluted (3)

$0.33

 

$0.25

 

$0.77

 

$0.88

 

Operating FFO per share – Basic & Diluted (3)

$0.33

 

$0.60

 

$1.35

 

$1.79

 

Common stock dividends declared, per share (3)

$0.20

 

$0.38

 

$0.96

 

$1.14

 

 

 

 

 

 

 

 

 

 

Capital expenditures (SITE share):

 

 

 

 

 

 

 

 

Development and redevelopment costs

11,543

 

13,005

 

45,060

 

32,525

 

Maintenance capital expenditures

4,176

 

5,841

 

7,746

 

9,865

 

Tenant allowances and landlord work

5,219

 

12,897

 

25,097

 

42,079

 

Leasing commissions

861

 

877

 

2,701

 

2,600

 

 

 

 

 

 

 

 

 

(1)

Impairment charges:

 

 

 

 

 

 

 

 

Hurricane impairment charge (property damage deductible)

0

 

5,100

 

0

 

5,100

 

Impairment charge on RVI portfolio held for sale (pre-spin)

14,110

 

0

 

14,110

 

0

 

Impairment charge on shopping centers marketed for sale

5,780

 

8,520

 

54,284

 

49,503

 

 

19,890

 

13,620

 

68,394

 

54,603

 

 

 

 

 

 

 

 

 

(2)

Hurricane property (income) loss, net (SITE Share):

 

 

 

 

 

 

 

 

Lost tenant revenue

0

 

2,571

 

6,570

 

2,571

 

Business interruption income

(1,784)

 

0

 

(6,884)

 

0

 

Clean up costs and other expenses, net

(157)

 

1,045

 

818

 

1,045

 

 

(1,941)

 

3,616

 

504

 

3,616

 

 

 

 

 

 

 

 

 

(3)

Prior periods presented have been adjusted to reflect the Company's one-for-two reverse stock split.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7


SITE Centers Corp.

Certain Non-Cash Items (SITE share)

 

 

$ in thousands

 

 

 

 

 

3Q18

 

3Q17

 

9M18

 

9M17

 

Straight-line rent, net

$206

 

($864)

 

$109

 

($207)

 

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

1,112

 

2,369

 

1,638

 

10,603

 

Straight-line ground rent (expense) income

(37)

 

(53)

 

(113)

 

162

 

Debt fair value and loan cost amortization

(1,133)

 

(1,096)

 

(6,407)

 

(3,221)

 

Capitalized interest expense

268

 

529

 

936

 

1,405

 

Stock compensation expense

(1,437)

 

(1,561)

 

(4,521)

 

(5,053)

 

Non-real estate depreciation expense

(1,341)

 

(4,101)

 

(4,389)

 

(8,043)

 

Non-cash interest income

0

 

0

 

0

 

1,283

 

 

8


SITE Centers Corp.

Balance Sheet:  Consolidated Interests

 

$ in thousands

 

 

 

 

 

At Period End

 

 

3Q18

 

4Q17

 

Assets:

 

 

 

 

Land

$970,008

 

$1,738,792

 

Buildings

3,634,232

 

5,733,451

 

Fixtures and tenant improvements

508,270

 

693,280

 

 

5,112,510

 

8,165,523

 

Depreciation

(1,284,446)

 

(1,953,479)

 

 

3,828,064

 

6,212,044

 

Construction in progress and land

58,717

 

82,480

 

Real estate, net

3,886,781

 

6,294,524

 

 

 

 

 

 

Investments in and advances to JVs

83,792

 

106,037

 

Investment in and advances to affiliate (1)

226,469

 

0

 

Receivable – preferred equity interests, net

204,078

 

277,776

 

Cash

11,446

 

92,611

 

Restricted cash

1,827

 

2,113

 

Notes receivable, net

19,670

 

19,675

 

Receivables, net (2)

74,253

 

108,695

 

Property insurance receivable

0

 

58,583

 

Intangible assets, net

88,752

 

182,407

 

Other assets, net

23,024

 

27,652

 

Total Assets

4,620,092

 

7,170,073

 

 

 

 

 

 

Liabilities and Equity:

 

 

 

 

Revolving credit facilities

105,000

 

0

 

Unsecured debt

1,896,458

 

2,810,100

 

Unsecured term loan

198,540

 

398,130

 

Secured debt

185,004

 

641,082

 

 

2,385,002

 

3,849,312

 

Dividends payable

45,406

 

78,549

 

Other liabilities (3)

214,693

 

344,774

 

Total Liabilities

2,645,101

 

4,272,635

 

 

 

 

 

 

Preferred shares

525,000

 

525,000

 

Common shares

18,467

 

18,426

 

Paid-in capital

5,542,949

 

5,531,249

 

Distributions in excess of net income

(4,115,736)

 

(3,183,134)

 

Deferred compensation

8,474

 

8,777

 

Other comprehensive income

(1,093)

 

(1,106)

 

Common shares in treasury at cost

(8,054)

 

(8,280)

 

Non-controlling interests

4,984

 

6,506

 

Total Equity

1,974,991

 

2,897,438

 

 

 

 

 

 

Total Liabilities and Equity

$4,620,092

 

$7,170,073

 

 

 

 

 

(1)

Preferred investment in RVI

$190,000

 

$0

 

Receivable from RVI

36,469

 

0

 

 

226,469

 

0

 

 

 

 

 

(2)

Straight-line rents receivable, net

35,575

 

59,439

 

 

 

 

 

(3)

Below-market leases, net

61,358

 

127,513

 

 

9


SITE Centers Corp.

Reconciliation of Net Income (Loss) Attributable to SITE to Same Store NOI (1)

 

$ in thousands

 

 

 

 

 

 

 

 

 

 

 

 

At SITE Share

(Non-GAAP)

 

3Q18

 

3Q17

 

3Q18

 

3Q17

GAAP Reconciliation:

 

 

 

 

 

 

 

Net (loss) income attributable to SITE

($8,931)

 

$983

 

($8,931)

 

$983

Fee income

(15,118)

 

(7,291)

 

(15,118)

 

(7,291)

Interest income

(5,055)

 

(6,807)

 

(5,055)

 

(6,807)

Interest expense

26,962

 

46,296

 

26,962

 

46,296

Depreciation and amortization

49,629

 

85,210

 

49,629

 

85,210

General and administrative

15,232

 

13,449

 

15,232

 

13,449

Other expense, net

1,454

 

64,340

 

1,454

 

64,340

Impairment charges

19,890

 

10,284

 

19,890

 

10,284

Hurricane property and impairment loss

(157)

 

6,089

 

(157)

 

6,089

Equity in net loss (income) of joint ventures

2,920

 

(4,811)

 

2,920

 

(4,811)

Reserve (adjustment) of preferred equity interests

2,201

 

(15,377)

 

2,201

 

(15,377)

Valuation allowance of prepaid tax asset

0

 

8,777

 

0

 

8,777

Tax expense

238

 

490

 

238

 

490

Gain on disposition of real estate

(124)

 

(44,291)

 

(124)

 

(44,291)

Income from non-controlling interests

239

 

248

 

239

 

248

Consolidated NOI

89,380

 

157,589

 

89,380

 

157,589

SITE's consolidated JV

0

 

0

 

(404)

 

(381)

Consolidated NOI, net of non-controlling interests

89,380

 

157,589

 

88,976

 

157,208

 

 

 

 

 

 

 

 

Net (loss) income from unconsolidated joint ventures

(50,859)

 

36,080

 

(7,735)

 

3,733

Interest expense

23,126

 

24,276

 

3,689

 

3,675

Depreciation and amortization

34,332

 

45,291

 

4,766

 

5,518

Impairment charges

87,880

 

2,160

 

13,182

 

432

Preferred share expense

6,249

 

8,307

 

313

 

416

Other expense, net

5,460

 

6,577

 

962

 

892

Gain on disposition of real estate, net

(32,548)

 

(31,740)

 

(3,313)

 

(1,572)

Unconsolidated NOI

73,640

 

90,951

 

11,864

 

13,094

 

 

 

 

 

 

 

 

Total Consolidated + Unconsolidated NOI

163,020

 

248,540

 

100,840

 

170,302

Less:  Non-Same Store NOI adjustments

(13,987)

 

(101,258)

 

(8,435)

 

(79,913)

Total SSNOI

$149,033

 

$147,282

 

$92,405

 

$90,389

 

 

 

 

 

 

 

 

SSNOI % Change

1.2%

 

 

 

2.2%

 

 

 

 

 

 

 

 

 

 

(1) Excludes major redevelopment activity; see Investments section for additional detail. See calculation definition in the Non-GAAP Measures

section.

 

 

 

10


SITE Centers Corp.

Portfolio Summary

 

 

GLA in thousands

 

 

 

 

 

 

 

 

 

 

 

 

9/30/2018

 

6/30/2018

 

3/31/2018

 

12/31/2017

 

9/30/2017

Shopping Center Count

 

 

 

 

 

 

 

 

 

 

Operating Centers - 100%

 

182

 

193

 

208

 

223

 

236

Wholly Owned

 

78

 

78

 

82

 

86

 

93

JV Portfolio

 

104

 

115

 

126

 

137

 

143

 

 

 

 

 

 

 

 

 

 

 

Gross Leasable Area (GLA)

 

 

 

 

 

 

 

 

 

 

Owned and Ground Lease - Pro Rata Share

 

26,632

 

26,763

 

27,529

 

28,643

 

30,563

Wholly Owned

 

22,867

 

22,884

 

23,535

 

24,476

 

26,279

JV Portfolio - Pro Rata Share

 

3,765

 

3,879

 

3,994

 

4,167

 

4,284

Unowned - 100%

 

16,578

 

17,973

 

19,847

 

20,994

 

22,351

 

 

 

 

 

 

 

 

 

 

 

Quarterly Operational Overview

 

 

 

 

 

 

 

 

 

 

Pro Rata Share

 

 

 

 

 

 

 

 

 

 

Base Rent PSF

 

$17.47

 

$17.36

 

$17.16

 

$17.20

 

$17.13

Base Rent PSF < 10K

 

$27.23

 

$27.31

 

$26.68

 

$26.86

 

$26.78

Base Rent PSF > 10K

 

$14.74

 

$14.68

 

$14.54

 

$14.51

 

$14.43

Commenced Rate

 

90.6%

 

91.0%

 

91.3%

 

91.4%

 

91.7%

Leased Rate

 

92.7%

 

93.1%

 

93.6%

 

93.5%

 

93.4%

Leased Rate < 10K SF

 

90.3%

 

90.2%

 

89.7%

 

89.7%

 

88.3%

Leased Rate > 10K SF

 

93.4%

 

94.0%

 

94.7%

 

94.7%

 

94.9%

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned SITE

 

 

 

 

 

 

 

 

 

 

Base Rent PSF

 

$17.83

 

$17.72

 

$17.52

 

$17.41

 

$17.34

Leased Rate

 

92.6%

 

93.2%

 

93.6%

 

93.5%

 

93.4%

Leased Rate < 10K SF

 

91.0%

 

91.2%

 

90.7%

 

90.3%

 

88.7%

Leased Rate > 10K SF

 

93.0%

 

93.7%

 

94.5%

 

94.4%

 

94.8%

 

 

 

 

 

 

 

 

 

 

 

Joint Venture at Pro Rata Share

 

 

 

 

 

 

 

 

 

 

Base Rent PSF

 

$15.29

 

$15.23

 

$15.02

 

$14.93

 

$14.81

Leased Rate

 

93.0%

 

92.8%

 

93.3%

 

93.6%

 

93.3%

Leased Rate < 10K SF

 

86.5%

 

85.3%

 

85.4%

 

86.3%

 

86.1%

Leased Rate > 10K SF

 

95.4%

 

95.6%

 

96.2%

 

96.4%

 

96.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operational Statistics

 

 

 

 

 

 

 

 

 

 

% of Aggregate Property NOI - Wholly Owned

 

87.7%

 

87.3%

 

87.0%

 

86.4%

 

N/A

% of Aggregate Property NOI - Joint Venture – Pro Rata Share

 

12.3%

 

12.7%

 

13.0%

 

13.6%

 

N/A

 

 

 

 

 

 

 

 

 

 

 

SITE SS NOI at share

 

2.2%

 

1.4%

 

2.6%

 

0.8%

 

N/A

 

 

 

 

 

 

 

 

 

 

 

TTM Total Leasing - at pro rata share (GLA in 000's)

 

3,942

 

3,501

 

3,289

 

3,648

 

4,570

TTM Blended New and Renewal Rent Spreads - at pro rata share

 

8.7%

 

8.4%

 

8.9%

 

8.4%

 

7.9%

 

 

 

 

 

 

 

 

 

 

 

Note:  Prior periods have been adjusted to only reflect SITE property and tenant statistics; RVI information for all periods prior to 7/1/18 has been removed.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11


SITE Centers Corp.

Capital Structure

 

$, shares and units in thousands, except per share

 

 

 

 

 

 

 

 

September 30, 2018

 

December 31, 2017

 

December 31, 2016

Capital Structure

 

 

 

 

 

 

Market Value Per Share

 

$13.39

 

$17.92

 

$30.54

 

 

 

 

 

 

 

Common Shares Outstanding

 

184,669

 

184,237

 

183,132

Operating Partnership Units

 

141

 

186

 

199

Total Outstanding Common Shares

 

184,810

 

184,423

 

183,331

 

 

 

 

 

 

 

Common Shares Equity

 

$2,474,603

 

$3,304,857

 

$5,598,939

 

 

 

 

 

 

 

Perpetual Preferred Stock - Class J

 

200,000

 

200,000

 

200,000

Perpetual Preferred Stock - Class K

 

150,000

 

150,000

 

150,000

Perpetual Preferred Stock - Class A

 

175,000

 

175,000