SITC - Earnings call 3 2023 | SITE Centers Corp.

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Operator

Good afternoon, and welcome to the SITE Centers business update call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Stephanie Ruys de Perez, VP of Capital Markets. Please go ahead.

Stephanie de Perez

Thank you, operator. to the conference and company's XXXX welcome the to third and earnings. of spin-off convenience evening, SITE call Centers discuss quarter Good retail properties

Financial Officer, today Lukes; Chief me Fennerty. Executive Joining and are Chief Officer, Conor David

today's this intended In posted we prepared to spin-off presentation support our addition at website during and have on supplement our afternoon, our release call. financial www.sitecenters.com, to press investor the distributed quarterly which remarks are

the meaning today risks Please within be results contain of forward-looking from These statements that and materially forward-looking our actual to federal aware forward-looking of statements certain our and may subject laws. differ statements. securities statements are uncertainties,

SEC, be XX-K presentation in website our our XX-Q. including information press releases, recent the in found report on our posted may and most Form to the investor and Additional with today's filings

addition, be In in comparable operating these financial call, and most to measures including same-store on supplement today's Descriptions the operating financial non-GAAP and today's presentation. non-GAAP net be FFO investor found reconciliation measures of can and measures income. will FFO, quarterly discussing financial GAAP we directly

At Lukes. this is time, introduce Executive Officer, pleasure our to Chief it David my

David Lukes

the Good you joining call analysis, assets in marks reviewing XX initially $XXX access with new, growth after plans in first, convinced to ago. of focused all and company And growth of such convenience Why retail? and a you, liquidity the form X seeded visibility Properties. our the and and owned tenant SITE no Centers. we and will activity, into of unique and cash main ever from and is the within we Tonight evening, years for an reasons: Three differentiated site short estate convenience the be that to a preferred of centers portfolio for a We provides. notice. called over like Curbline real do convenience million Curbline analytics sector and debt transaction the are wholly that began years financial our properties, chapter unique announce our both Thank on exciting number opportunity. investing more data than company, Stephanie. thrilled in thank convenience I'm convenience spin investment and off

of economics the tenants. of the the business; Second, and breadth third, depth and quality

expand me Let those X on reasons.

access buildings First, row simple consisting convenience visibility of of anchor. and itself. intersections. along Curbline typically thoroughfares Location, the our assets and of These a are suburban shops in traffic major is

mobile the not has using We shown Convenience that data traffic but analytics properties with caters traditional per generate going square customer larger To convenience the properties and shopping between For units. research is visibility. and difference confirms all our Data know point, X.Xx a running this. customer than convenience that the draw to anchor, assets, easy geo-location Aaron's. Aaron's. access rather estate foot phone real

of more the And that in highlight of hybrid These our minutes. of and almost X work. only XX% rise and grown migration suburban the years. half of those is This the increased entrenched the properties out an figures integral and duration which less customers has short are suburban part X behavior, with help has in statistic past in become which lifestyle, than

strong square shops retail needs. Because and Second, foot CapEx shopper growth convenience attractive the tenants. by these sector Curbline, limited are or to per demand high a in significant along NOI highlighted AFFO number high offers is the occupancy-neutral cash so economics, that's due of high the from flow traffic

just high the meaning and re-leasing sales that command demand of X% means, renewal driving very annual tenant historic little CapEx The lead because lower and CapEx elevated has rent and less premium fixed CapEx rates, attractive This include rents assets substantial course, high to of is format cash convenience low is convenience which economics, with the in Furthermore, unit simple, free CapEx veins. level of estate retail our typically so of the cholesterol these general. real NOI, in bumps. downtime, its are convenience traffic buildings flow. of

drive-throughs. is mix. locations, access the of have XX% Because tenant by especially retail in are characterized drive-through. is for portfolio suites offered best high-quality by a portfolio with XX% base the with properties and Curbline Curbline high, today visibility for convenience rent strong and endcap so Third, of for drive-through well-diversified the competing credit a by tenants spaces or a the generated space the those demand

as itself convenience conviction given high is economics and our tenant us a convenience that have of tenants a X property extensive plan, mix Verizon units, These an whom have as site conviction Chipotle national are strong quality this service along and property Darden, and of our one, a local anchor, attributes proved type. These Starbucks, for in Chase, nature superior attracted such with diversified critical. over and analysis factors, location the business strong standardized the out JPMorgan investment compelling

So appeal set do centers together why is this? we site are Centers But believe investors. roof, fully one under X Curbline they coexist SITE and and these high-quality value right the different stakeholders now to to Both today. businesses each from that the for are a within and time may of not single maximizing not portfolio other,

also recycling. without allocated and that the compelling. properties find allow associated capital the dilution into headwind investors convenience asset spin with capital in for they This the exclusively opportunity Curbline long-term company to to and the to allows allows It most unlock allocate be

So few let's start comments SITE Centers about a itself. with

is mix top XXth with compelling assets lease a Excluding the net power, States terms in positioned grocery, demographics part characteristics. of asset, growth of and lifestyle are in convenience will the curated that SITE percentile be United of the that long-term of the Curbline, carefully portfolio

maximize we the for of Curbline XX blended the have are tonight Highlighting the the X, July from properties. The X.X%. properties cap separation assets, to are for of at rate of value SITE we million we announcing and also that sold a announcing since opportunity tonight, allows these quality us SITE that $XXX

additional cap have properties $XXX an closing a and contract for subject million standard under to rate. X similar conditions at We mid-X

aggregate, the remain compelling assets today of are such concerns. macro to market versus in billion high-quality additional almost We $X desirable the we assets market typically sell Irrespective more liquid valuations today. strategic to that and turbulence, in of value face have the even assets at implied of expect buyers in

absolute The unwinds selected joint SITE basis. on Centers carefully mold. relative extremely spinoff value and attractive portfolio and Having been the and fits that via an venture retail remains

Over years, assets. both These the private which buyers of include very sold seeking management almost has shopping process, good gained buyers are public billion parties and high-quality we've understanding of team a past $X that centers. Through REITs. this X strategic

has his And our regard, they deep buyers unlevered and primary have submarkets, and in John with as we CIO, know job. all seeking they focus know these in this our cases, Cattonar often done Off-market those high-quality And amazing the an execution are team acquirers. relationships assets, assets. have been our

on fundamentals forward, for Going continue supply dramatically for remaining I should to would tenants, expect of shifted environment that demand on for The trends and higher maximizing set to post operating value years come. retail the a has focus SITE properties. sector pandemic support broader to the with limited

vacant represents of generate company-specific the which along deliveries factors are tailwinds, along redevelopment substantial base rent, pipeline, adjusted macro lease-up units spin not with like expected and with signed X.X% to These of open but compelling our creation. Curbline with value Centers, spin-off the more will along upside, realization, line, value should than operational stakeholders flexibility This provide growth. SITE NOI success. retain of after X path forward the to with having of the

I would NAV, and asset been best means the market expect sales have continue realize to to private Recently, these. to pursue us

XX% the eventual of the However, our properties outcomes. of to high-quality almost may nature of lead grocery-anchored, are which portfolio, other

We will goals. our available options achieve consider to to all us

earlier, now right create back Curbline as to stand-alone coming company. time So why the a I to question the is posed

before, that portfolio several First, now. said we've we investing United as in with meaningful convenience convenience largest States. what in a Arguably, insight I own time, high-quality retail today scale. in the we've years the And of represents been portfolio for assembled

position and for is aspirations. Second, Curbline way its right initial no liquidity. capitalize us the asset sales the substantial debt growth to That with announced

ownership investors, lead XXX we size think unique the X.XX% market is from convenience have we other and right the Curbline institutional time untapped we way And U.S. to the plenty seize total mature, are retail institutional meaning creating portfolio properties for To room comprising opportunity, largely to opportunity of proven by now been a The why this to this that fold. change all that, sector differentiated is line REITs. is represents initial REIT the as X.X reason itself. first-mover according is of square for square into bringing Curbline's grow. The assets Curbline the and liquids we data in inventory, intend has million million Third for to feet ICSC while of sector addressable feet. this

years and for organic when believe and to on purchased And potential as thoroughfare average and growth process units, or format subdivided in annual all existing to the is suburban growth next of center years a larger driven these than of the to with as highest to intersection the with subdivided a what by in has types. recapture roster being properties, expected properties the Curbline Each compared needs a bumps, the limited is diversified to mark-to-market well-trafficked took risk, of tenant minimal concentration we well work individual property other process and X CapEx Same-store almost high-quality assets XX% factoring of or located these almost NOI attributes. that the of remainder be ability X from greater acquisitions X% complete. site

and of and is cash companies generate about funding that but business sheet the best-in-class tonight, debt investment on balance to mortgage. of transactions balance bit the for after Conor execute needed additional stakeholders. respective returns truly financing Curbline sheets no a capital with announced combined plans companies hand, billion unmatched talk growth and position $X.X to expected with commitments no both material their will outstanding and more with And preferred the is properties the on

sets SITE distinct X employee For needed. plans Curbline, and distinct X business skill with for these

agreement, to base opportunity of team upon for in front As create the employees as us future. engagement to of and shared ultimately focus will companies compelling the on in expect their act significant have for Curbline position both conclusion become both of such, executive strongly of own the properties Board employee may formation, level leadership of would to We continue Centers upon Directors. the the but and its of believe centers. I organizations and SITE some That stakeholder the services direction X site the will from depend Curbline strategic size value and resources

organization our to important is as for SITE spin-off of The we that, position properties everyone work over the Centers prepared with Conor, to call due step. Curbline for to I I'll thank X this want work past their of turn over it to truly the to across turning the everyone And Before us years growth. at Conor. over for possible

Conor Fennerty

balance on you, by as guidance the announcement the I'll from dividend. as and David. quarter concluding earnings calling start a and third out of operations with special sheet Thank items before the well significant touch few

first extremely SITE. the Curbline on with have on we As positioned and focused assets. scale both plans. to David the expected announced their transactions publicly commitment and noted, are on balance execute traded the Starting REIT sheet and today, excited based we form with And exclusively financing business to convenience SITE

SITE properties unsecured to and have to affiliates to closing expected expected expected is of conditions. bonds SITE's bonds. is The upon funded repay for of SITE SP. expected allows the post-spin. Funding where years will utilized during properties in and mortgage part has appropriate including spin, facility $X.X outstanding with of provides by the of are from Atlas to draw be occur facility, mortgage subject a be sell We secured It satisfaction to flexibility term including obtained which the prior on all funding delayed XX outstanding the and extended for bonds commitment the XXXX, unsecured commitment X will be fully disposition X-year also to period improve The retire proceeds. clarity debt, commitment duration billion outcome Apollo, Centers to that

a end quarter of at debt X.Xx, leverage, debt-to-EBITDA of XX%. was terms In yield with north

to leverage expect to we quarter. Xx In spin, debt-to-EBITDA with fourth the continue prior decline below in period the the to

during base for also additional We asset and scale stakeholders. period, collateral maintain expect unencumbered providing to a primarily significant SITE's this

balance will with capital an further a Curbline expected no sheet and and largely preferred to post at focus while explore itself the capital. Centers. to This credit other acquiring of access the capitalized spin $XXX the to liquid private Curbline universe unsecured its is of For providing SITE differentiate to convenience debt, of from time expected financing cash spin investment the buyer properties, the and its million to be scaling line is to million in Curbline properties. have improve platform on $XXX company liquidity allows also options highly

advantage to Investor of take year presentation found profile the X Shifting this Curbline. third base the of results. asset capital structure increasing of next Details Additionally, on Relations to further Pages of our sources we growth and the and on X quarter transaction and section posted website. on will of recycle be can assets and the the uses

Third previously quarter budget and are Beyond recapture per along $X with to of lease adjustments operations, in by adjustments. better-than-expected nonrecurring Bath OFFO space was over highlighted share to below-market the to occupancy nature. of primarily ahead due & $X.XX These million Bed relates just or leased higher-than-expected

are savings the Outside G&A no material other as lower-than-expected plan The previously these were of third the there items, quarter quarter. restructuring slightly also call-outs realized. benefited the announced from from in

to Moving operations.

volume spreads up and first significant Bed and activity the leasing of feet picked million spreads. & square new over XX% from year, the the Bath spaces driven and leased quarter with X.X mark-to-market leasing Third former by on a half Beyond

depth we to This third steady elevated, about the at to the Bath and remain partially a lease was decline or spaces, and XX.X%, points of rate Bath the assets an and the down the by on backfill make point users. quality XX.X%. we've activity releasing date, leasing. due sure leased of make to quarter, of sequentially of average basis lease Bath of Overall of the headwind, and national highlighting was the remain of offset In Bed Bed to XXX basis which half sequential continue credit remaining progress To just on economics XX new demand. Bed recapture lease the the units, lost ABR. rate was at And units leasing confident portfolio sale

growth forward, and the guidance growth. increasing a by recapture commencements. driven Bath, speaks are embedded the to Bed despite we increase, portfolio NOI the to X.X% Looking results footage square same-store range and all date of of rent the to This of X.X% to earlier-than-expected from strength

to dispositions increasing as share, referenced announced that are David $X.XX date as that under also are which OFFO the closed to includes assets range $X.XX a per by well We guidance have previously the of to contract.

operational expected headwind to to year to partially largest the the asset be a full asset to $X.XX is In outperformance. particularly sales year of results. aggregate, expected be these And are timing full where $X.XX driver the offset range. we Transaction activity, in sales, of end up

the forecast, declare significant in Lastly, will that payable be as of centers of to and a disposition XXXX. activity expected dividend site January special result announced a

to declare dividend share, per time, prior and the At expect cash special we the dividend be this finalize expect that will we least $X.XX and details to year-end. at

And back with it David. that, I'll turn to

David Lukes

ready to Conor. Thanks, now Operator, we're take questions.

Operator

Kesten Our with from Instructions] Dori come will question Wells [Operator first Fargo.

Dori Kesten

the you're envision seeing? spin long-term Congratulations you then ahead of Curbline's on to just Can EBITDA as what plans disposition acquisitions debt be? the the and And walk have announcement. you follow-up, through a the net and you pricing

David Lukes

can is Dori, said? and what You said the repeat dispositions that? acquisitions that spin, you you before just the

Dori Kesten

Yes.

Conor Fennerty

Yes, Dori, it's Conor.

on referenced So I another we the completed look if back SITE dispositions date. Centers it's the We've of presentation, disposition then Page to contract on the completed also you of top on date, under And that. XX. think at million investor to the assets section wholly got the $XXX of

uses the the kind -- presentation, those dispositions next on business sorry, plan on also, tie year. me, sources We additional into excuse how the the press the of of over have release X Page have some and and detail I'm

look sales course that additional over we The and spin. will buy comments should David's asset expect, assets next assets be year and though, sell to dependent the of ultimate additional the magnitude acquisition. to the in of my You to comments, well as to prior will the those

it deck. was on but until TBD to I though. So window a got call, appreciate quite on front, the detail of that bit a this short we've

Dori Kesten

I sorry, the, debt plan But -- follow-up there's And sorry, for that, a it already what's the leverage? looking no to yes, think there's then I incremental was I'm Curb in what's when guess, the on the as spinned. I long-term No, deck. beyond for

Conor Fennerty

be provide it's leverage But operated Curb. ahead of I the on that's targets X-plus We'll it years, the at in as details path will we maintain we've there's optionality of data we have which to operate SITE is in have thing will last Centers once All something with debt over in which looked or Dori, the not and Conor how think Centers place, Yes, kind some to last put SITE duration, strategic Curb said, consistent of again. we fair leverage incredible with new having leverage. the that is we've think manner it's as spin we that different generally optionality. assume at have and a will lower couple years had that one we

So we the or an business lot think we'll moving fair a up detail date. the we'll balance generally but leverage we be closer perspective, duration to opportunity, that get happy it's provide have SITE again, more But the and to spin if scale, Centers. assume from see we'd sheet we greater additional a run as I similar to

Operator

Mailman come from Citi. will Craig with question next Our

Craig Mailman

A questions of here. couple

X.X%, assets get it sense to some on the these market rate? like an stabilized what a for initial. of the I'm where of what trying bogey looks we willing is cap rates sort sold of Just that cap good of and rate? -- pretty what's is contract, a about of on the you just what Cap just under pay to just think should the that for versus really Or today's kind is

David Lukes

XX-month that. cap fees after is NOI. The forward Craig. which rate we're and management traditional the method, I means identifying Sure, David. can way its It's take

that we're quote buyer rate. asset forward is agreed the cap NOI the cap saying when the purchase rate, under when we contract, that for and went basis to the an XX-month So

rate on I X.X% those a is of general around corporate think you assets, kind the somewhere As of growth CAGR business, far as to which the growth rate of NOI. look this

on into either you that, unlevered of you're And IRR under the When XX. I top think activity $XXX or extra the XXX I what of of so volume X.X% so the can mean, we've closed had, contract. average sheer you And assets mid-Xs. back expectations million forward over are. the in in still the or do on add closed with

So good weeks to a these or the where when X think pretty guidance either market that were you closed. I contract was assets as gives X ago or under

Craig Mailman

couple last of that the I someone so versus contract do contract guys -- you guess in you kind the mean rates of contract and have ones a out, it XX-year struck to pricing gone were while went pricing lot I weeks moving recently are start of of move, it's were I of to that of the mean north and you assets give some really of of any to is that going blends where before struck X.X%? assets again? more the has under after. got think have move Could out but seen the just views you before a know cap some kind I rates stuff some of these started recently where up back

David Lukes

Yes.

seen -- think continued recently rates. mean, cap much contract in so I far, as I going haven't Friday, so under I we've movement as

forward. gone what's that estate, contract buyers I assets don't assets pretty X in market values RVI, of size to will And the has are values now what that, an high-quality And going a today. included of a ago, just X so this were JV and the as years buyers where or of I all is like and say contract spin-off down But under. we've update the most And gap X company hunting. other that those negotiated or of are in have a with really they're are month this would going. with ago feels for portfolio I to really that are been have that there under versus that real it holding we unwinds It larger. assets. been curated part, of So the was the unlevered remember, say have much trophy the small the

the the in the some in through we've you our Midwest, the overall today if assets good you the they're and of at some portfolio. We've So Southwest, East. sold, pretty West, some look some look a in sold the representation portfolio that in

think assets. there's lot job I people so of do done buyers to good that a to seeking that that what we're want debt. They're is out there And know attaching of assets willing still it those has great we the without are And trophy finding John quality. buyers the high-quality a with really

Conor Fennerty

piggyback to on Craig. that, just And Yes.

haven't to of point, a a local any sell, good interest really I or assets buyer. they kind way think which buyer assets had might rates. or target will Dave's But the you're we've those different for assets that been what point because are assets. date, of right, underwriting To we different sensitive more are a way selling might capitalizing financing there held. it's a be a of cash-on-cash of have they strategic To or we

very buyer. bit So have a think that there's We trophy than assets, It's exercise embedded do to big underwriting embedded David's different a cash-on-cash differentiation. use mark-to-market. terminology, growth, little buying were NOI I a

Craig Mailman

I that. and my billion question appreciate the to bridge it. like spin going you put on from to presumably, effectuated. other I But in that, $X I trying harp to billion, SITE you're some growth is with $X to proceeds it the going Curbline seems expectations be debt guys the using I the get of there, No, -- just capacity. valuation the to guess using that you're is the after before gap the wasn't X% deck trying to cap was the

trying with how at accretive this long that source to kind reinvest Curbline worth debt trying to to of just in rates point. X, term an you be works where are So think bridge just today, bridge in that might guys assets manner. to the I'm to you of where grow accretion I'm the able are math

Conor Fennerty

David. ahead. Go It's -- no, Yes. a

You start.

David Lukes

been an assets could say of date, tracking log we've X Craig, for to unlimited, capital literally years, the that, last And big convenience assets. was we've pretty John's underwritten. not a has high-quality great feels I our of it awfully we've thousands on team ones because Well, all borrowing we purchase. properties selective volume rates. where convenience even been good like trade fairly got really on with ones a But And the the spread handle the which of we've trade. to

cash although Curbline sheet to very have So immediately. so start is a balance can buying going we and liquid

I high-quality where seen this a do spread continue. is asset in estate and expect that class in borrowing past would And real the that trades more there to seen expect rate. trade that to similarly than you've the we've I past,

Operator

from will Piper Connor with Mitchell question Next Sandler. come

Alexander Goldfarb

for Connor. It's on Alex Goldfarb

time So questions it you when over the then shopping with they better assets of a the cost significant A traditional repurposing of to one, just when a was And the growth about work David. and just guys a plus you centers than you company, happened convenience Center SITE at of number NOI took prescient because given be out -- few the portfolio. your was the what years COVID. with the during ago, here, said first capital did faster turned you -- buying

X they cost running it them if versus to keep benefit growth. we size think is, the entities guys capital of be and earnings like it of just same way? because and overall split both sense make does Why apart sounds question and going the My together both companies, to you management, scale are about

David Lukes

Alex. question, understandable totally a It's Yes.

unique to motivation customers asset the the cases, It shopping has into center, traditional real or a after in in I answer be be is is retail very simple they're number to a that to separated retail. estate of they think trips To aggregated. It deserves in errands the that it the class. duration retail attributes lot unique that's real day, go has many that a pure-play deserve was a aggregated the estate, from motive, and are company a that after. once servicing me, back is short of the

couple of X to by anchored We trading or last it if very X format. that a is we a achieve markets different itself. is there's it strongly $XXX-something This believe of weeks, or time, what very almost formats. value it And today, the it at sold at Now relative you off to SITE what typologies high-quality the Centers you the a in format private And better unique. NAV. tick, that huge And specific look real fundamentals portfolio makes is and look between when is just spread the deserves same where its the there's at markets we're what public million at do. the forgotten

companies X the separating Centers. Curbline think I shot growth real now SITE So achieving both realization gives for a NAV at for and

Conor Fennerty

to management the comment, just And clarify Alex.

and the level at executive If the prepared remarks, the by David, Board. the size direction you engagement focus look his ultimately companies and was back your of comment strategic of X from in the team will depend the on

to want clarify just that I So comment.

Alexander Goldfarb

second paid external running don't are for Curbline to when companies But goes Conor. looks that I question, be Okay. Maybe bono. ran I got that. serves, RVI, for think to guys now both like you think entity, sort that mean pro But of you guys guys memory did I an as you the so basically I'm is run will. it you wrong. going right if you

little there's bigger So It I given you the of future. opportunity like out the grow guys much how roll-up a Are enthusiasm, SITE Centers. on both? way potential just maybe And that Curbline of being like it you your comment the paid to could to spend you just your bit sounds a hear is David, more sounds time. plan if versus the

whereas -- past, into the but another I is to that. Centers, SITE Curbline almost entity is something is like it future don't the or gets So like sounds say merged want maybe

Curbline management So why maybe you guys paid, for you? could spending garner you time guys getting focus how how are just, you are wouldn't and the perspective, from more your a

David Lukes

was Sure. if therefore, delever. and down spins. the the lower-quality to this both on hand, RVI that I those Well, the comments public owned use to, is and only tie your about announcement debt fact RVI pay to particular a remove company back the with raise and they're what assets we can RBI because proceeds method one a standard and of from similarity

Centers just assets leverage company managed deem you a This all-time down movement. high and the strong off now well demand. right if as got because very important. the different. feels got very for exhibited was that of bat. tactical remember, of wind which right rid of SITE NAV and redevelopment is leasing we a It Centers everything So was going that same for assets in we is a sector we A by lot reduced We've lesser this the demand, work. externally of SITE lot means it very to quality be That has spreads quarter. realizing like is

you what such What class year do that's happens. that very, additional as class, know of I are size X But course over lot makes know, spent it's a asset excited these you we think that what time, of and the unique recycling this companies right relative the the because will studying of don't I'm because enthusiastic and a next about is tick. Curbline And is very asset exciting. there be we've

is to SITE which with company. and there's a So going do to Centers do Curbline, growing a realizing job the forward, there's and NAV job at

it's is that the to work too honestly, specifics have that. is like compensated to How around being the company of But large for required. that would sure any and management executive the compensation Board into soon is honestly, that at that's something back for ties them, aware well they make

give whole of detail. really I lot So can't a

Operator

Thomas Our Capital with next question come Todd KeyBanc Markets. will from

Todd Thomas

agreement? expecting question. agreement being over executed a A more RVI lot I what following infrastructure about and mentioned shared may its guess, spin infrastructure, pay services I the the and you same the ask the or own I and can and here. as time of back, for here guess line just I to assets comments or questions. monetize up but there's And management that have on your some not A you mortgage, couple acquire they on continue down the Alex's around you're spin quite services digest Centers, develop shared bit several to wanted time I a was on are time to to asset specific which about off, flexibility similarities. provide, whether there but detail Curb lie within to years over the SITE guess the which little hear

David Lukes

can to in if some the these have Todd. then to Absolutely, think of companies shared companies specifics. and orderly of you up an start, time a and follow the But services about give it's agreement both of can resources that both sure with transition reduce Sure. purpose execution risk. make Conor case, I this

umbrella. NAV, those So just SITE all manage includes asset company that happens full-time all which with management, itself of of all And under employees, our still functions. winding of that for realizing at our construction, It means same of today those Curbline, for are And up. leasing, the so assets all means development, Centers, today. these that large, assets

companies. X between when there time period X from So to which or X-year X transition now, a spin is be those quarters the at concludes, actually we'll able

I is to Board vehicle expect get-go. itself. say these one, assuming employees managed Directors the The off, the side. the reason stand off that which from big externally This in full that difference their to months. own going exactly be the I is have X know And believe to how I think time the executive are better companies to XX details is of services run an those was company than its different on to own. X of the needs I both with the by able doesn't to burn very that be RVI, companies we're That And that

his decision it companies transactions think Mike of transition we've of team, transactions got that the works. balls a that transition. And to that's think therefore, for mean, leadership fact a look air. to have legal agreement given And that work I owned for specifically services the in the to of days. on why And both of in decision millions last I XX wise how literally on And the lot at off and is worked that's alone. gives hundreds important. I them makes transition the delay as time the dollars sense side, John

Conor Fennerty

to on Todd, numbers question. around and earlier Craig's And some Yes. that put piggyback

before spin value think of of additional appropriately acquire enterprise asset Centers' If it you the expect is has of Curb deck, to we our an can assets the at of, time and XX what But we big today, this, billion. taken look we SITE $X this Page spin, ahead be on once on invest call think you and a the imagine as an think we've that, view is you we cautious fully today. could to is

And resources value it's assets, se, you're grows David's up realizing that that where pretty to point, you're appropriate resources just Curb significantly. company per you're to assets David's as so business transitioning SITE point, and scales. a as adding from to selling the wind adding And

Todd Thomas

of And expected Okay. what's just looking assets, at of in whether just capital and planned owned for then of I less whether time? debt perceived are capital sort structure sort discuss the you given secured? the an the convenience these sort to structure considerations an Are guess, assets unsecured these And maybe that in structure today, capital are there be option? an over unsecured inventory public any how markets be can or they're you markets would financing Curb

Conor Fennerty

Look, and we benefits a path, We unsecured taking secured and pros would Todd. approach. there's the host think there's and being cons like think to we of kind say the borrower huge the of of for unsecured Sure, I reasons. middle

raise is effectively million lot an in at REIT REITs We huge a for simpler kind it's look dollars easier. of competitive public the That's a the se some economies and it's you if them. just of look overnight. at of hundreds And of big advantage. per scale, One of larger space, those benefit basis. maintenance quarterly straightforward It's a frankly can on and ongoing

spin. coming ways expectation, to to our time back look, the a question, again, So we're Dori's from long

cycle unencumbered of really there is But are our predominantly Centers think balance Curb high-quality healthy unsecured, very similar to But pool, would yield. it expectation the look is sheet where debt SITE a really we inefficient and It's times versa. advantage the vice or the competitive the is having efficient is where where a in a debt market market in thing. or one there's great and times secured times

us So or similar going secured. be I going look to SITE I be to But we're just saying eerily think commit Centers. just to wouldn't do we'll unsecured we're to

the the months on financing available We've Curb, and we on In and than fourth really great of it's much question a debt have in quarter commitments active financing expected. and for excuse assets side that question. on side terms others in lenders been that financing others what's interesting capital a closed, are market and next more that quarter me, for or the the your X-plus the to last couple larger that me, close, scale initially I there I the than And of are expected year. first is really convenience on the excuse of

just to side; It's LifeCos is active. one approach looking a opposed So are to pooled but [ class in for exact two, assets at the asset size, assets equity are high reasons asset we that growth. you're ] bank different single the on quality, AFFO as strong side the the they're really high and the attracted really credit in that internal same that given really

we've that the large-format pools So the you're or be. a versus it's traditionally, center the and just grocery, a different but it might demand, for in by asset sense surprised interest of going given been structuring size pleasantly power whatever little assets bit

Todd Thomas

mortgage secured? the the Okay. What that you've commitment rate on $X.X billion is

Conor Fennerty

Todd. Sure,

dependent So fund. the rate on we much how is

details dependent get much Again, probably loan. it's to provide more So on CMBS to look fair a spend. that's to it's rate rate totally it's time we We'll market CMBS determined. fair though assume we like how as to will to that but rate a loan. It's fund, be assume closer the market

Operator

next will Zhang Hong come JPMorgan. question with Our from

Hong Zhang

while and be acquisitions volumes through strip assets. purchased since kind SITE we have pricing more should convenience focused presume For been your a will on convenience Curbline traditional primarily going How focused forward now, of acquisition will and I think about centers? on these assets be Centers

David Lukes

for as we're the the Yes, side. of to awful we're recycling, XX the months course X realizing NAV on energy into an next I putting think of disposition lot

structure would say a strategy that's of selective going we're careful be more But can is we've simply on the total and so of type. its addressable market that business. And commensurate last I when couple the years, reason we're capital convenience forward, with to the so in And we underwritten Curbline our we establishing going thousands property the deals that looked acquisitions. for at through we scale look of the

I think a we totally a very confidence minimum at of in year that, acquire the can $XXX have high-quality outside a level available that what's assets business million of market. high

certainly a very biggest be advantages. like addressable one going-forward think there to feels that of is is large And it the volume going market. So I acquisition strategic our

Operator

with Ki Kim from come Bin will question Truist. next Our

Ki Bin Kim

Curbline. about a would than I Just reflect back with to I'm understand I SITE pro topic. going you an more alignment I alignment and to to to to kind a go of The sure shareholders have going Curb? G&A sure just comp that? SITE with more shareholder, as to forma And more be make your aligned want do incentive that the think own shareholders. make back want kind and NOI will of earlier Centers Curbline. that X.Xx with just to interest lot than interest the Or management

Conor Fennerty

Ki Bin, it's Conor.

you're September Page NOI. of which the XX. point Remember, you I as X, referencing on that's to So

$XXX going forward. and NOI run subtract will better of quarter a kind in the fourth sold of assets the million take the for that contract, should and you million, give So you $XXX rate under

So that mentioned the and would as X, number have I assets to of over next a of continuing be Point point David course one. we year. sell occasions, expect in be to

there. So figure more even I'd from that come NOI expect down to so

assets We also expect to well. be as earlier comments acquiring to

expect number keep coming to So up. the Curb

so I And at it's you're as XX, a if you're think looking September right, X:X. of it

the NOI I fast now, of weighting forward forward kind materially September think If X. to -- you're from between going XX you to a year to different see a look

value you, the couple to than my value to a second and again, to years. be SITE The comments enterprise in of of enterprise to Centers I'd to to Curb thing this of is kind question, and the of coming greater expect say or we back Craig's today Todd equal

So think I -- correct. do

a to moment just dramatically You're imbalance, but of reinvest of we At kind that that as expects kind next in there's of equity. couple different shift correct. years over the time,

Ki Bin Kim

dividends realize and other occurring. in a that payout going million G&A basis, be like? the what some is run transactions going forma you're $XXX I be to both might paying additional there in there's to net companies out dividends. Okay. look Because probably And And currently, be might pro about to on

looks curious what just like. So total the dividend

Conor Fennerty

is SITE under is dividend Board. something at management recommendation the Centers to direction of just policy the free historically would the cash I Yes. say flow. that's the maximize Look, But

Obviously, that et I the going in is cetera. to assume tax, SITE couple has of our a Curb, what it's income, generally or years, last with which have around is executed for XX%. payout consistent So would to and on ratio guided goal, we depend net

So direction something management that's under approach. the payout but that be think Again, would the is of to assume the of Curb the Board, fair consistent. it's I ratio

the obviously dividends For obviously, are relevant, don't there's a special of any tax losses I big but would of The common net income SITE, a with gains strategy of dividends transactions the piece as be as say kind or dividend expect dividends a want common result have I we they in and of are dividend. will to going be SITE are of to function common mixed dividends. as special our

story. is is retained more and Curb but income -- special an This about much flow for to SITE. it a this for cash not or remains be dividends dividend it's So seen,

Ki Bin Kim

Okay.

Conor Fennerty

of your -- one. terms back to just sorry, question because I think it's G&A In come important an

X think, G&A focused acutely spent and and If SITE for years Centers. quarters the you of we minimizing I restructuring, think back, last a on intensely announced we number G&A ago, have

to are can how how David's point there a and SITE. quite up assume we few should learned set up from can that point our lessons set You and to Curb we earlier,

based as we SITE that be of not And we we assume so minimized right companies. investment. G&A full or But focusing we And should now Centers of get having intensely once what you could SITE the organizations. years, learned think, the than costs efficiently, couple can to with more right, part last incremental Curb frankly, realization efficiently as off you're there X if on public run we've company of over we Centers will are X do of we

Operator

Jefferies. Linda come next from with will question Our Tsai

Linda Yu Tsai

multiple premium of sort at on relative a to you going as trade kind to SITE would of Curb Curb basis? What gets expect

Conor Fennerty

assume as size the today. different great find from about earlier, you folks But go a a we'll market. it's excited potential ultimate opportunity others to on the and Linda, yourself point little our bit get should question. is Well, I mean like we're will we there. of set rely We'll and and We'll closer. that Curb be from growth the out to

Linda Yu Tsai

terms And peer comps Curb what do you consider your to be to set? of closest in like the

Conor Fennerty

obviously got It's one other attributes attributes I got anything excited is know question. a we the got company common it if a but which It's economics model, it, with It's kind a really too it's some great unique the the everything. of lease. got that centers. mean, that, don't frankly there we're attributes, it's of other best the it's I of are than we and bit a But little think to view, But add like of about. because excuse tenancy of property it'd industrials, got of attributes David, this. excited about It's shopping are net has types. in it's bit me, don't But little financial got our obviously, of And everything.

Linda Yu Tsai

of base between the X? credit quality there Last question. tenant the the any Is of in terms differential

Conor Fennerty

the incredibly It's credit QSRs, et guess banks, differential, a Curb you cetera. I the right? roster highlighted I say, excited few about, just service would Yes. something X excellent, XX tenant we're of of couple than rather just the One, that in if a the top section, look it's is for at quite reasons. -- quality

The massive is tenant of second say. diversification, significant should diversification I tenant thing there's or

kind of tenants mitigated concentration. about less simple risk going that think the you away, around fact it's have you some certain when the so of by And

to that and other just you more when Curb The looking space to it's There backfill. aspect are space get is for is back, a just is real do CapEx to tenants a that lower. easier lot beneficiary so the

think we is average. it, the let's shopping credit call in than, So what center addition having better to

said, of for we've backfilling had there's them. obviously, being out credit We that economics risk a better been that and just SITE Centers, better some also lot there's All think them. of and diversification one

Sports Authority, little like way found more There's profitably just the model. different Curbline we space. tonight great that Greg, little HS the think pivoting like expensive. one a But toys, just a downtime. to It's a show just a X-plus just more that that results over years, last our I like just It's It's a just it's side. business business. said, That to we're backfill still

Operator

Our be Craig a next with from Citi. will Mailman question follow-up

Craig Mailman

and Curbline's will a guys you Just preferred couple SITE? what ones. pref be quick pricing the know of Do on

Conor Fennerty

Craig, it's Conor.

is we've the with plans. both respective sheets companies As the David to of to their today the that goal announced balance position of accomplish business mentioned, kind structuring

opportunity to Curb many And a preferred investment liquidity, a lot scale. That take cash of so forms, preferred capitalizing have which and that investment, means convenience position could liquidity, allows like with and substantial it preferred, could whether mezzanine pros more Each or it's sell and it we of them be cash, assets, a a kind investment. of cons. could could if have be mortgage be it

as we'll fair coupon. that to at And and over be real chance it's "necessary" forms. assume a there's progress that So things different time, that, isn't year. the There's cash, evolve no this we how there's see but next the very no of place could to Again, year. maturity, the work takes perhaps but just remains throughout that seen in

Craig Mailman

be management I'm companies? managing interest get of or you if probably I just trying conflict heard sand I where here know is time term figured ultimate curious, to timing And your decision. structure. out from spin kind line comments Okay. I'm standpoint. Board -- a you just of to the of make a time agreement Board both needs on just there's the it spent kind out guys would just kind seeing long then the the do on I of That's to mean said standpoint still or but of the helpful. figure sense guys I'm assuming trying a effectuated. by plan the earlier, a on

David Lukes

I don't team short another think situation the for answer is managing X a see here. externally term a that's executive where I think is, don't the intent probably that entity. long I

with these with over would think the relative X of course is the see to of kind what's Board to of A I how companies Exhibit much that we've difference working the what sold which in last decision a of management easier size year. respect months, being the next companies, point of X to I managed. the companies there are prudent these would is And size we're saying and means be that X those how X be in it months, could substantial an

a standpoint, Remember, company the to X not for of buys intended leadership running lot general long-term shared a agreement a services from entities. to it's But time be itself the different solution. be

Conor Fennerty

conflict would And tech. that. I sale, was decisions. So externally right? major independent even your was And asset there approved X RVI will an managed SITE, of independent Board to every approved RVI these that that's by add Remember, Boards, have companies that though inherent

part in same and checks that same balances So the and SITE as vein, you'd have of Curb.

Craig Mailman

that of and rid consideration of to you think through got a SITE just that control could manage from sell point? probably get place? you guys of do the were And think if even -- this the is to guys getting have after double at guys of Or you rid do still you incentive not this just change guys you kind Board and would then ask you'd Okay. SITE the Or in dip? you of spin, that

David Lukes

it at consideration contracts contract a have company, see that's you company. when with with don't you companies. a different think I contract, an X don't point, I have one X you employment I -- Craig. different this with mean, employment a

about in outcome portfolios Centers tent. we're that is and very the are the company excited growth I because responsible for of team very both shareholders SITE ultimate vehicle, executive its under also one think that we the today, has

the outcome Centers from transactions of perspective, the lot in in as So couple of John that a space and months completed to for growth for unique. making it's to shareholders. responsibility SITE last reasonable enthusiasm point to again stakeholders. But sure so we can I'll be carries a growing get has that the Curbline as is through thing that the to right pure doing for since there's good

Conor Fennerty

conflicts on There's just side management Craig. level. that, pointing capital allocation last to. speaks over company -- And this market aware I stakeholder We're add at the public record on and comments just track that at and point, experience the the I itself the you're to Board the our would to think of value X-plus extensive for David's I and years.

Craig Mailman

That's fair.

for Conor, one, last you. Just

multiple the net is and and industrial kind retail you that else? this commentary this that feel your expansion I take space, Is to how burden like should comment? CapEx relative around the this you You just that's be give mentioned lowest why everyone of to going And should that is lease. valuation that in guys

Conor Fennerty

by implicitly obviously right? that versus is close roster. think in got we've rate, terms comp mean, There at embedded better -- I it's differentiated. unique trade there growth we so think just differentiation truly to that going companies net. business to profile this this, than cap a triple there's a some net peers, pretty implied and think with a doing elements I are are mean, right? a mean tenant X% we retail I But we triple retail incredible are of there's

a a that different types. that we're just about question. again, tie that property business some sense So It's of attributes with bunch other not the it's dodging this there's

evasive genesis of as opposed to the per comments kind to trying be the that's So se.

Operator

from Markets. will Our question Capital follow-up KeyBanc a Todd be with Thomas next

Todd Thomas

towards my sales will it and sounds that Centers there forward So SITE additional be the follow-up like acquisitions be going Curb. may geared here from is that

designed for pricing the like over that us outlook you the to not value liquidate pricing likely SITE hear XQ RVI shrink particularly you SITE announced? is growth But as like the you Centers Centers? what more time, is for I continues to grow help sounds dispositions was understand was that's that planning It to of do. perhaps the and in market assets private if So XQ ballpark can to than same

David Lukes

still they're think, market Yes, that is assets If different telling a are and X.Xx, options. pretty going the at amount. same his assets actually team have and what's sizable to SITE post. are and about past done is look it pre out worth Todd, signals, anchored the us John And that the finding another those our in I to way in is we've quarter and announcement this market we're answer worth the Centers x, to the really we listen so

markets transact. I are listening still and the would forward, if public the that we're we'll worth they're markets, us going continue less than So say telling that to private

like capital anchored center shopping much to we that's think continuing of sales. recycle We're lot next of to the the a very year, out business. do and happen. more positive I on getting over course would into of business the And asset response convenience

really that's I year, course think both the can looking think companies. capital. benefits over allocate we're to the the I of next recycle we where And more that

Conor Fennerty

the Yes. off pay sheet [ you And I to the to of site ] point point, just investment. for Todd, balance to SITE. pay mortgage, breadth to would David's sell positioned assets off continue to It's to

of couple pages we highlight can additional So I think on there's factor probably Centers. on a SITE

Operator

any the concludes our to question-and-answer for session. This like I would turn remarks. Lukes conference close back to over David

David Lukes

you I'm Thank of we'll speak the the to to taking much time soon. sure join you all call. many very for

Operator

presentation. Thank you attending today's concluded. The conference has for now

now disconnect. may You

SITE Centers (SITC) 30 Oct 232023 Q3 Earnings call transcript