SITE Centers Reports Second Quarter 2024 Results

SITE Centers Corp. (NYSE: SITC), an owner of open-air shopping centers in suburban, high household income communities, announced today operating results for the quarter ended June 30, 2024.

“The planned spin-off of Curbline Properties remains on track with further progress in the second quarter across all fronts highlighted by nearly $1 billion of quarterly transactions, 24% trailing-twelve month new leasing spreads for Curbline Properties, and over $50 million of debt repurchased or retired prior to maturity,” commented David R. Lukes, President and Chief Executive Officer. “We remain excited to launch and scale what is expected to be the first public real estate company focused exclusively on Convenience properties and remain encouraged by the opportunity set and growth prospects, both organic and via acquisitions, for Curbline Properties."

Results for the Second Quarter

• Second quarter net income attributable to common shareholders was $235.5 million, or $1.11 per diluted share, as compared to net income of $2.6 million, or $0.01 per diluted share, in the year-ago period. The increase year-over-year primarily was the result of higher gain on sale from dispositions and interest income partially offset by the impact of lower property Net Operating Income (“NOI") as a result of net property dispositions and the write-off of fees related to the mortgage facility commitment and Curbline transaction costs.
• Second quarter operating funds from operations attributable to common shareholders (“Operating FFO” or “OFFO”) was $55.9 million, or $0.27 per diluted share, compared to $61.3 million, or $0.29 per diluted share, in the year-ago period. The decrease year-over-year primarily was due to the impact of lower property NOI as a result of net property dispositions, partially offset by higher interest income.

Significant Second Quarter and Recent Activity

• Sold 15 shopping centers and a parcel at a shopping center in the second quarter and third quarter to date for an aggregate price of $868.2 million ($839.0 million at share), including 13 shopping centers and a parcel at a shopping center during the second quarter for an aggregate price of $800.7 million ($771.5 million at share).
• Acquired six convenience shopping centers and a ground leased parcel of land during the second quarter and third quarter to date for an aggregate price of $56.0 million, including Red Mountain Corner (Phoenix, AZ) for $2.1 million, Sunrise Plaza (Vero Beach, FL) for $5.5 million, Roswell Market Center (Atlanta, GA) for $17.8 million, Wilmette Center (Chicago, IL) for $2.9 million, Crocker Commons (Cleveland, OH) for $18.5 million, Maple Corner (Nashville, Tennessee) for $8.2 million and a ground leased parcel at Collection at Brandon Boulevard (Tampa, FL) for $1.0 million. The Company also acquired its joint venture partner's 80% interest in Meadowmont Village (Raleigh, NC) for $35.4 million.
• During the quarter, repurchased $26.7 million aggregate principal amount of outstanding senior unsecured notes due in 2026 and 2027 for total cash consideration, including expenses, of $26.3 million and recorded a gain on retirement of debt of approximately $0.3 million.
• In July 2024, announced a one-for-four reverse stock split of the Company’s common shares. The Company anticipates the common shares will begin trading on a split-adjusted basis on the NYSE at the opening of trading on August 19, 2024.
• Issued the Company's tenth Corporate Responsibility and Sustainability Report. The report was completed in alignment with the Global Reporting Initiative and with the Sustainability Accounting Standards Board metrics and frameworks. The report intends to provide an annual update on the Company's corporate responsibility and sustainability programs and can be found at https://www.sitecenters.com/2023CSR.

Curbline Properties

• In October 2023, announced the expected spin-off of the Company’s Convenience assets into a separate publicly-traded REIT to be named Curbline Properties Corp. (“Curbline Properties” or “CURB”). The spin-off is expected to be completed on or around October 1, 2024. As of June 30, 2024, the Company has amassed a portfolio of 72 wholly-owned properties to be included in the CURB portfolio, including assets separated or in the process of being separated from SITE Centers properties. The transaction is subject to certain conditions, including the effectiveness of CURB’s Form 10 registration statement and final approval and declaration of the distribution by SITE Centers' Board of Directors.
• In October 2023, obtained a commitment from affiliates of Apollo, including ATLAS SP Partners, to provide a $1.1 billion mortgage facility to be secured by 40 properties with flexibility to reduce the commitment or loan balance with proceeds from asset sales or other sources of capital. The mortgage is expected to be funded prior to the spin-off date with loan and additional asset sale proceeds expected to be used to retire all unsecured debt, including all outstanding public notes, prior to the spin-off of CURB. In the first and second quarters of 2024, the Company released 13 properties that had previously been identified to serve as collateral for the facility, thereby reducing the committed amount to $554.8 million as of June 30, 2024. The Company expensed $8.6 million of fees related to the facility in the second quarter as a result of the property releases and the corresponding commitment reduction.

Key Quarterly Operating Results

• Reported an increase of 0.8% in same-store net operating income (“SSNOI”) on a pro rata basis for the second quarter of 2024 as compared to the year-ago period.
• Generated cash new leasing spreads of 38.8% and cash renewal leasing spreads of 6.9%, both on a pro rata basis, for the trailing twelve-month period ended June 30, 2024, and cash new leasing spreads of 44.2% and cash renewal leasing spreads of 9.1%, both on a pro rata basis, for the second quarter of 2024.
• Generated straight-lined new leasing spreads of 50.1% and straight-lined renewal leasing spreads of 11.6%, both on a pro rata basis, for the trailing twelve-month period ended June 30, 2024, and straight-lined new leasing spreads of 50.6% and straight-lined renewal leasing spreads of 14.8%, both on a pro rata basis, for the second quarter of 2024.
• Reported a leased rate of 93.2% at June 30, 2024 compared to 94.2% at March 31, 2024 and 95.5% at June 30, 2023, all on a pro rata basis. The sequential decline was primarily related to the sale of properties in the second quarter with an average leased rate of 96.7%.
• As of June 30, 2024, the Signed Not Opened (“SNO”) spread was 230 basis points, representing $10.2 million of annualized base rent on a pro rata basis.

Property NOI Projection

The Company projects, based on the assumptions below, 2024 property level NOI to be as follows:

Portfolio

 

NOI Projection ($M)

SITE Centers

 

$198.3 – $204.4

Curbline Properties

 

$82.6 – $84.9

These projections:

• Calculate NOI pursuant to the definition of NOI used in the SSNOI calculation as described below, except that it includes lease termination fees (SITC and CURB NOI includes $1.1M and $3.3M of YTD 2024 termination fees, respectively), excludes NOI from all properties sold prior to June 30, 2024, assumes all SITE Centers properties owned as of June 30, 2024 are held for the full year 2024 and includes NOI for Curbline Properties assets acquired in 2024 from the date of acquisition,
• Assume 2024 SSNOI growth of 3.5% – 5.5% for Curbline Properties,
• Exclude from NOI G&A allocated to operating expenses which totaled $2.2 million in 2Q2024, or $8.8 million annualized and
• Adjust NOI for the estimated impact of remaining expected parcel separations and includes NOI for SITE Centers from its Beachwood, OH office headquarters.

In reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, reconciliation of the projected NOI and assumed range of 2024 SSNOI growth to the most directly comparable GAAP financial measure is not provided because the Company is unable to provide such reconciliations without unreasonable effort due to the multiple components of the calculations which for the same-store calculation only includes properties owned for comparable periods and excludes all corporate level activity as described below under Non-GAAP Measures and Other Operational Metrics.

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 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 8:00 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 2886949 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 7227743 through August 30, 2024. Copies of the Company’s supplemental package and earnings slide presentation are available on the Company’s website.

Non-GAAP Measures and Other Operational Metrics

Funds from Operations (“FFO”) is a supplemental non-GAAP financial measure used as a standard in the real estate industry and is a widely accepted measure of real estate investment trust (“REIT”) performance. Management believes that both FFO and Operating FFO provide additional indicators of the financial performance of a REIT. The Company also believes that FFO and Operating FFO more appropriately measure the core operations of the Company and provide benchmarks to its peer group.

FFO is generally defined and calculated by the Company as net income (computed in accordance with generally accepted accounting principles in the United States (“GAAP”)), adjusted to exclude (i) preferred share dividends, (ii) gains and losses from disposition of real estate property and related investments, which are presented net of taxes, (iii) impairment charges on real estate property and related investments, (iv) gains and losses from changes in control and (v) certain non-cash items. These non-cash items principally include real property depreciation and amortization of intangibles, equity income (loss) from joint ventures and equity income from non-controlling interests and adding the Company’s proportionate share of FFO from its unconsolidated joint ventures and non-controlling interests, determined on a consistent basis. The Company’s calculation of FFO is consistent with the definition of FFO provided by NAREIT. The Company calculates Operating FFO as FFO excluding certain non-operating charges, income and gains/losses. Operating FFO is useful to investors as the Company removes non-comparable charges, income and gains/losses to analyze the results of its operations and assess performance of the core operating real estate portfolio. Other real estate companies may calculate FFO and Operating FFO in a different manner.

The Company also uses NOI, a non-GAAP financial measure, as a supplemental performance measure. NOI is calculated as property revenues less property-related expenses. The Company believes NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level and, when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis.

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 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 prior period comparisons). In addition, SSNOI is presented including activity associated with 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. In reliance on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K, reconciliation of the projected NOI and assumed rate of 2024 SSNOI growth to the most directly comparable GAAP financial measure is not provided because the Company is unable to provide such reconciliations without unreasonable effort due to the multiple components of the calculations which for the same-store calculation only includes properties owned for comparable periods and excludes all corporate level activity as noted above.

The Company calculates Cash Leasing Spreads by comparing the prior tenant's annual base rent in the final year of the prior lease to the executed tenant's annual base rent in the first year of the executed lease. Straight-Lined Leasing Spreads are calculated by comparing the prior tenant's average base rent over the prior lease term to the executed tenant's average base rent over the term of the executed lease. For both SITE Cash and Straight-Lined Leasing Spreads, the reported calculation includes only comparable leases which are deals executed within one year of the date that the prior tenant vacated. Deals executed after one year of the date the prior tenant vacated, deals which are a combination of existing units, new leases at redevelopment properties, and deals for units vacant at the time of acquisition are considered non-comparable and excluded from the calculation. For both Curbline Properties Cash and Straight-Lined Leasing Spreads, the reported calculation includes both leases vacant greater than twelve months along with split and combination deals. The Curbline Properties calculation excludes first generation units and spaces vacant at the time of acquisition.

Safe Harbor

SITE Centers Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact, including statements regarding the Company's projected operational and financial performance, strategy, prospects and plans, may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, general economic conditions, including inflation and interest rate volatility; local conditions such as the supply of, and demand for, retail real estate space in our geographic markets; the consistency with future results of assumptions based on past performance; the impact of e-commerce; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant and the impact of any such event on rental income from other tenants and our properties; our ability to enter into agreements to buy and sell properties on commercially reasonable terms and to satisfy closing conditions applicable to such sales; our ability to complete the spin-off of Curbline Properties in a timely manner or at all; our ability to secure equity or debt financing on commercially acceptable terms or at all; redevelopment and construction activities may not achieve a desired return on investment; impairment charges; valuation and risks relating to our joint venture investments; the termination of any joint venture arrangements or arrangements to manage real property; property damage, expenses related thereto and other business and economic consequences (including the potential loss of rental revenues) resulting from extreme weather conditions or natural disasters in locations where we own properties, and the ability to estimate accurately the amounts thereof; sufficiency and timing of any insurance recovery payments related to damages from extreme weather conditions or natural disasters; any change in strategy; the impact of pandemics and other public health crises; unauthorized access, use, theft or destruction of financial, operations or third party data maintained in our information systems or by third parties on our behalf; our ability to maintain REIT status; and the finalization of the financial statements for the period ended June 30, 2024. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company's most recent reports on Forms 10-K and 10-Q. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

SITE Centers Corp.

Income Statement: Consolidated Interests

 

in thousands, except per share

 

 

 

 

 

2Q24

 

2Q23

 

6M24

 

6M23

 

Revenues:

 

 

 

 

 

 

 

 

Rental income (1)

$113,480

 

$135,954

 

$233,072

 

$271,826

 

Other property revenues

649

 

429

 

1,678

 

1,390

 

 

114,129

 

136,383

 

234,750

 

273,216

 

Expenses:

 

 

 

 

 

 

 

 

Operating and maintenance

19,251

 

22,476

 

39,795

 

45,642

 

Real estate taxes

16,148

 

20,279

 

32,886

 

40,332

 

 

35,399

 

42,755

 

72,681

 

85,974

 

 

 

 

 

 

 

 

 

 

Net operating income (2)

78,730

 

93,628

 

162,069

 

187,242

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

JV and other fee income

1,542

 

1,775

 

3,012

 

3,634

 

Interest expense

(18,426)

 

(20,921)

 

(37,339)

 

(40,844)

 

Depreciation and amortization

(40,439)

 

(58,698)

 

(83,589)

 

(112,714)

 

General and administrative (3)

(12,713)

 

(14,031)

 

(23,785)

 

(24,676)

 

Other income (expense), net (4)

(6,214)

 

(634)

 

(6,319)

 

(1,321)

 

Impairment charges

0

 

0

 

(66,600)

 

0

 

Income (loss) before earnings from JVs and other

2,480

 

1,119

 

(52,551)

 

11,321

 

 

 

 

 

 

 

 

 

 

Equity in net income of JVs

61

 

4,618

 

78

 

5,977

 

Gain on sale and change in control of interests

2,669

 

0

 

2,669

 

3,749

 

Gain on disposition of real estate, net

233,316

 

(22)

 

265,030

 

183

 

Tax expense

(281)

 

(362)

 

(533)

 

(575)

 

Net income

238,245

 

5,353

 

214,693

 

20,655

 

Non-controlling interests

0

 

0

 

0

 

(18)

 

Net income SITE Centers

238,245

 

5,353

 

214,693

 

20,637

 

Preferred dividends

(2,789)

 

(2,789)

 

(5,578)

 

(5,578)

 

Net income Common Shareholders

$235,456

 

$2,564

 

$209,115

 

$15,059

 

 

 

 

 

 

 

 

 

 

Weighted average shares – Basic – EPS

209,553

 

209,266

 

209,486

 

209,616

 

Assumed conversion of diluted securities

1,756

 

181

 

767

 

445

 

Weighted average shares – Diluted – EPS

211,309

 

209,447

 

210,253

 

210,061

 

 

 

 

 

 

 

 

 

 

Earnings per common share – Basic

$1.12

 

$0.01

 

$1.00

 

$0.07

 

Earnings per common share – Diluted

$1.11

 

$0.01

 

$0.99

 

$0.07

 

 

 

 

 

 

 

 

 

(1)

Rental income:

 

 

 

 

 

 

 

 

Minimum rents

$73,510

 

$89,023

 

$149,572

 

$177,996

 

Ground lease minimum rents

5,296

 

6,343

 

10,740

 

12,812

 

Straight-line rent, net

1,464

 

988

 

2,144

 

1,664

 

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

961

 

1,691

 

2,113

 

2,876

 

Percentage and overage rent

1,460

 

2,252

 

3,387

 

3,403

 

Recoveries

28,550

 

34,501

 

58,232

 

69,817

 

Uncollectible revenue

(369)

 

(548)

 

(14)

 

(315)

 

Ancillary and other rental income

1,058

 

1,448

 

2,294

 

3,205

 

Lease termination fees

1,550

 

256

 

4,604

 

368

 

 

 

 

 

 

 

 

 

(2)

Includes NOI from wholly-owned assets sold in 2024

11,206

 

N/A

 

26,438

 

N/A

 

 

 

 

 

 

 

 

 

(3)

Separation charge

0

 

2,928

 

0

 

2,928

 

 

 

 

 

 

 

 

 

(4)

Interest income (fees), net

8,550

 

(90)

 

15,844

 

(114)

 

Transaction costs

(4,191)

 

(544)

 

(7,589)

 

(1,207)

 

Debt extinguishment costs

(9,780)

 

0

 

(10,445)

 

0

 

Gain on debt retirement

277

 

0

 

1,037

 

0

 

Loss on equity derivative instruments

(1,070)

 

0

 

(5,166)

 

0

SITE Centers Corp.

Reconciliation: Net Income to FFO and Operating FFO

and Other Financial Information

 

in thousands, except per share

 

 

 

 

 

2Q24

 

2Q23

 

6M24

 

6M23

 

Net income attributable to Common Shareholders

$235,456

 

$2,564

 

$209,115

 

$15,059

 

Depreciation and amortization of real estate

39,203

 

57,350

 

81,022

 

110,067

 

Equity in net income of JVs

(61)

 

(4,618)

 

(78)

 

(5,977)

 

JVs' FFO

1,564

 

2,201

 

3,148

 

4,183

 

Non-controlling interests

0

 

0

 

0

 

18

 

Impairment of real estate

0

 

0

 

66,600

 

0

 

Gain on sale and change in control of interests

(2,669)

 

0

 

(2,669)

 

(3,749)

 

(Gain) loss on disposition of real estate, net

(233,316)

 

22

 

(265,030)

 

(183)

 

FFO attributable to Common Shareholders

$40,177

 

$57,519

 

$92,108

 

$119,418

 

Gain on debt retirement

(277)

 

0

 

(1,037)

 

0

 

Loss on equity derivative instruments

1,070

 

0

 

5,166

 

0

 

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

14,083

 

677

 

18,222

 

1,506

 

Separation and Other charges

830

 

3,099

 

1,225

 

3,099

 

Total non-operating items, net

15,706

 

3,776

 

23,576

 

4,605

 

Operating FFO attributable to Common Shareholders

$55,883

 

$61,295

 

$115,684

 

$124,023

 

 

 

 

 

 

 

 

 

 

Weighted average shares & units – Basic: FFO & OFFO

209,553

 

209,326

 

209,486

 

209,717

 

Assumed conversion of dilutive securities

723

 

181

 

767

 

445

 

Weighted average shares & units – Diluted: FFO & OFFO

210,276

 

209,507

 

210,253

 

210,162

 

 

 

 

 

 

 

 

 

 

FFO per share – Basic

$0.19

 

$0.27

 

$0.44

 

$0.57

 

FFO per share – Diluted

$0.19

 

$0.27

 

$0.44

 

$0.57

 

Operating FFO per share – Basic

$0.27

 

$0.29

 

$0.55

 

$0.59

 

Operating FFO per share – Diluted

$0.27

 

$0.29

 

$0.55

 

$0.59

 

Common stock dividends declared, per share

$0.13

 

$0.13

 

$0.26

 

$0.26

 

 

 

 

 

 

 

 

 

 

Capital expenditures (SITE Centers share):

 

 

 

 

 

 

 

 

Redevelopment costs

2,957

 

3,707

 

6,010

 

8,117

 

Maintenance capital expenditures

2,371

 

4,878

 

3,657

 

7,024

 

Tenant allowances and landlord work

9,446

 

11,031

 

21,481

 

25,752

 

Leasing commissions

2,359

 

2,066

 

4,318

 

4,394

 

Construction administrative costs (capitalized)

853

 

805

 

1,814

 

1,601

 

 

 

 

 

 

 

 

 

 

Certain non-cash items (SITE Centers share):

 

 

 

 

 

 

 

 

Straight-line rent

1,510

 

1,024

 

2,224

 

1,720

 

Straight-line fixed CAM

59

 

69

 

123

 

144

 

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

1,041

 

1,782

 

2,310

 

3,051

 

Straight-line ground rent expense

(1)

 

(41)

 

(6)

 

(105)

 

Debt fair value and loan cost amortization

(1,405)

 

(1,198)

 

(2,816)

 

(2,426)

 

Capitalized interest expense

179

 

308

 

471

 

594

 

Stock compensation expense

(2,057)

 

(1,742)

 

(3,945)

 

(3,362)

 

Non-real estate depreciation expense

(1,237)

 

(1,349)

 

(2,569)

 

(2,652)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SITE Centers Corp.

Balance Sheet: Consolidated Interests

 

$ in thousands

 

 

 

 

 

At Period End

 

 

2Q24

 

4Q23

 

Assets:

 

 

 

 

Land

$766,741

 

$930,540

 

Buildings

2,709,676

 

3,311,368

 

Fixtures and tenant improvements

460,678

 

537,872

 

 

3,937,095

 

4,779,780

 

Depreciation

(1,322,286)

 

(1,570,377)

 

 

2,614,809

 

3,209,403

 

Construction in progress and land

34,304

 

51,379

 

Real estate, net

2,649,113

 

3,260,782

 

 

 

 

 

 

Investments in and advances to JVs

32,576

 

39,372

 

Cash

1,181,292

 

551,968

 

Restricted cash

4,286

 

17,063

 

Receivables and straight-line (1)

48,165

 

65,623

 

Intangible assets, net (2)

92,423

 

86,363

 

Other assets, net

37,710

 

40,180

 

Total Assets

4,045,565

 

4,061,351

 

 

 

 

 

 

Liabilities and Equity:

 

 

 

 

Revolving credit facilities

0

 

0

 

Unsecured debt

1,216,029

 

1,303,243

 

Unsecured term loan

199,023

 

198,856

 

Secured debt

98,579

 

124,176

 

 

1,513,631

 

1,626,275

 

Dividends payable

30,170

 

63,806

 

Other liabilities (3)

167,665

 

195,727

 

Total Liabilities

1,711,466

 

1,885,808

 

 

 

 

 

 

Preferred shares

175,000

 

175,000

 

Common shares

21,437

 

21,437

 

Paid-in capital

5,973,663

 

5,974,904

 

Distributions in excess of net income

(3,780,374)

 

(3,934,736)

 

Deferred compensation

4,937

 

5,167

 

Accumulated comprehensive income

8,572

 

6,121

 

Common shares in treasury at cost

(69,136)

 

(72,350)

 

Total Equity

2,334,099

 

2,175,543

 

 

 

 

 

 

Total Liabilities and Equity

$4,045,565

 

$4,061,351

 

 

 

 

 

(1)

SL rents (including fixed CAM), net

$27,477

 

$31,206

 

 

 

 

 

(2)

Operating lease right of use assets

16,350

 

17,373

 

Below market ground leases (as lessee)

13,670

 

0

 

 

 

 

 

(3)

Operating lease liabilities

36,091

 

37,108

 

Below-market leases, net

37,977

 

46,096

 

 

 

 

 

SITE Centers Corp.

Reconciliation of Net Income Attributable to SITE to Same Store NOI

$ in thousands

 

 

 

 

 

 

 

 

2Q24

 

2Q23

 

2Q24

 

2Q23

 

SITE Centers at 100%

 

At SITE Centers Share (Non-GAAP)

GAAP Reconciliation:

 

 

 

 

 

 

 

Net income attributable to SITE Centers

$238,245

 

$5,353

 

$238,245

 

$5,353

Fee income

(1,542)

 

(1,775)

 

(1,542)

 

(1,775)

Interest expense

18,426

 

20,921

 

18,426

 

20,921

Depreciation and amortization

40,439

 

58,698

 

40,439

 

58,698

General and administrative

12,713

 

14,031

 

12,713

 

14,031

Other expense (income), net

6,214

 

634

 

6,214

 

634

Equity in net income of joint ventures

(61)

 

(4,618)

 

(61)

 

(4,618)

Tax expense

281

 

362

 

281

 

362

Gain on sale and change in control of interests

(2,669)

 

0

 

(2,669)

 

0

(Gain) loss on disposition of real estate, net

(233,316)

 

22

 

(233,316)

 

22

Consolidated NOI

78,730

 

93,628

 

78,730

 

93,628

Less: Non-Same Store NOI adjustments

 

 

 

 

(15,651)

 

(31,002)

Total Consolidated SSNOI

 

 

 

 

$63,079

 

$62,626

 

 

 

 

 

 

 

 

Consolidated SSNOI % Change

 

 

 

 

0.7%

 

 

 

 

 

 

 

 

 

 

Net income from unconsolidated joint ventures

7,334

 

15,860

 

1,582

 

3,233

Interest expense

7,902

 

6,307

 

1,758

 

1,441

Depreciation and amortization

6,785

 

8,281

 

1,663

 

1,938

Other expense (income), net

2,048

 

2,378

 

472

 

538

Gain on disposition of real estate, net

(8,426)

 

(14,874)

 

(1,685)

 

(2,975)

Unconsolidated NOI

$15,643

 

$17,952

 

3,790

 

4,175

Less: Non-Same Store NOI adjustments

 

 

 

 

(320)

 

(807)

Total Unconsolidated SSNOI at SITE share

 

 

 

 

$3,470

 

$3,368

 

 

 

 

 

 

 

 

Unconsolidated SSNOI % Change

 

 

 

 

3.0%

 

 

 

 

 

 

 

 

 

 

SSNOI % Change at SITE Share

 

 

 

 

0.8%

 

 

SITE Centers Corp.

Reconciliation of Net Income Attributable to SITE to Same Store NOI

$ in thousands

 

 

 

 

 

 

 

 

6M24

 

6M23

 

6M24

 

6M23

 

SITE Centers at 100%

 

At SITE Centers Share (Non-GAAP)

GAAP Reconciliation:

 

 

 

 

 

 

 

Net income attributable to SITE Centers

$214,693

 

$20,637

 

$214,693

 

$20,637

Fee income

(3,012)

 

(3,634)

 

(3,012)

 

(3,634)

Interest expense

37,339

 

40,844

 

37,339

 

40,844

Depreciation and amortization

83,589

 

112,714

 

83,589

 

112,714

General and administrative

23,785

 

24,676

 

23,785

 

24,676

Other expense (income), net

6,319

 

1,321

 

6,319

 

1,321

Impairment charges

66,600

 

0

 

66,600

 

0

Equity in net income of joint ventures

(78)

 

(5,977)

 

(78)

 

(5,977)

Tax expense

533

 

575

 

533

 

575

Gain on sale and change in control of interests

(2,669)

 

(3,749)

 

(2,669)

 

(3,749)

Gain on disposition of real estate, net

(265,030)

 

(183)

 

(265,030)

 

(183)

Income from non-controlling interests

0

 

18

 

0

 

18

Consolidated NOI

162,069

 

187,242

 

162,069

 

187,242

Less: Non-Same Store NOI adjustments

 

 

 

 

(36,200)

 

(62,359)

Total Consolidated SSNOI

 

 

 

 

$125,869

 

$124,883

 

 

 

 

 

 

 

 

Consolidated SSNOI % Change

 

 

 

 

0.8%

 

 

 

 

 

 

 

 

 

 

Net income from unconsolidated joint ventures

6,179

 

20,627

 

1,406

 

4,237

Interest expense

16,173

 

13,348

 

3,590

 

3,028

Depreciation and amortization

13,930

 

17,343

 

3,390

 

4,029

Other expense (income), net

3,944

 

4,938

 

913

 

1,112

Gain on disposition of real estate, net

(8,397)

 

(20,178)

 

(1,679)

 

(4,037)

Unconsolidated NOI

$31,829

 

$36,078

 

7,620

 

8,369

Less: Non-Same Store NOI adjustments

 

 

 

 

(789)

 

(1,681)

Total Unconsolidated SSNOI at SITE share

 

 

 

 

$6,831

 

$6,688

 

 

 

 

 

 

 

 

Unconsolidated SSNOI % Change

 

 

 

 

2.1%

 

 

 

 

 

 

 

 

 

 

SSNOI % Change at SITE Share

 

 

 

 

0.9%

 

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240730770180/en/

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