SITC - Earnings call 4 2023 | SITE Centers Corp.

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Operator

Good day, and welcome to SITE Centers Reports Fourth Quarter 2023 Operating Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Stephanie de Perez. Vice President, Capital Markets. Please go ahead.

Stephanie de Perez

you. Thank welcome Fourth and Conference XXXX SITE Call. to morning, Quarter Centers' Earnings Good

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

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

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

may the earnings press SEC, information XX-Q. on release, with most found our and filings report recent our Additional in including Form be and our XX-K in

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

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

David Lukes

NAV a through realizing growth company and of along on This dispositions dual Curbline activity us from spin-off through and into Good the for Properties. focused highlighted with announcement, acquisitions path quarterly fourth The by call. the for joining announced nearly called to was morning, SITE a transaction management. growing Curbline significant the new the planned put you $X and earnings quarter SITE portfolio billion least, Centers Centers asset has of our convenience Centers portfolio thank of within and SITE our say of portfolio unique

past Curb the plans made progress come. with months for X both spin-off the only have on and announcement, business substantial more to SITE progress are but We

talk Curbline, results. on quarter to I'll an conclude over how an impacts update and the operations with and on XXXX all update sheet balance then to this in before Conor the it about of transition next turning start transactions, to with

began and in transaction X than years a both we opportunity. analytics, and years we investing Curbline, after and convenience that ever convenience are is convinced over sector financial analysis, ago, Starting growth with unique data of differentiated and several tenant reviewing the assets activity, more

we concentration by bumps, and recapture ability compared needs flow As REIT first-mover are retail diversified mark-to-market annual limited has as is CapEx types. what REITs unique and driven Curbline other this high-quality growth as a to opportunity, minimal all Properties differentiated seize announced, to creating units, that risk potential organic we the tenant highest be to roster a other cash to from and the believe and with property

Same-store NOI X for X% average when the the current than next X.X% and years in Curbline portfolio grow all of for these is attributes. in expected factoring greater to XXXX

year-end, $XX convenience what NOI the and believe what expected XXXX. limited share by these the of of economics, States. Arguably, the own characteristics, assets common we highlighted XX the convenience portfolio All Curbline million represents generate we wholly-owned are properties CapEx portfolio As about today excellent in to included needs. including largest, in United highest-quality visibility, access, compelling

become errands cash has returns expected And to hybrid balance unmatched for is best-in-class no with Properties is customer on of integral sheet with outstanding daily preferred are which and and the with These that stakeholders. combined investment the Curbline to properties, which an suburban truly debt a of work. hand, generate and more migration growth primarily suburban lifestyle, only rise the cater part and increased entrenched

investment or few million the of in this on to than around million we today, be year. and with the form in of of preferred $XXX X capitalized months on completed to be more now completed of transactions to October date, As we a the spinoff Based cash expect the $XXX expect liquidity Centers. SITE or ago Curb

on the simply is $XXX would progress more and no of likely with retain that capitalized million SITE preferred debt should dispositions make would not investment cash. be Additionally, Curb front, in and a it we

To quarter at of to another blended point, Subsequent rate sold X.X%. that moving a to fourth sold in wholly-owned the transactions. year-end, we cap of $XXX $XX We million million. properties

the today, resulting negotiation a pricing of almost of currently LOI roughly in pace dispositions has of As million and $XXX of has assets robust, either remained under rate X%. remained cap blended or those at of estate strong, the in contract real

Centers roughly assets SITE Needless the the the with quality that bulk say, a is the by announcement. highlights submarket containing and opportunity The speaks the power we inventory of the to value dominant traditional to of this primarily level XX% with spin-off grocer. portfolio centers, of demand of identified

and past the centers. these been assets, the retail which high-quality over all include know buyers The and public that are often to the Through sold know real and remained that attractive very team of range $X buyers extremely acquirers joint of they and has mold, seeking a buyers good via this of shopping years, estate. selected a have spin-off wide unwinds, looking estate. Kokinchak fits venture John RVI wide submarkets, portfolio to carefully having cases, invest Over gained billion in our In our private X unlevered high-quality of open-air understanding real Centers both process, SITE they buyers and a management assets. participants, of REITs. his parties including team market These are range

like with to expected and with factors of are forward higher has of lease-up for which The tailwinds, pipeline, company-specific that units along years. vacant environment substantial operating dramatically NOI trends rent, tenants, from set along for retail shifted broader post-pandemic growth. deliveries generate the with represents X.X% base support should the SNO of macro limited SITE's spin The redevelopment demand a sector fundamentals adjusted supply and

of properties on our additional sales. confident combined, tailwinds, knowledge specific factors sector value very and asset us X on buyer private universe These the in market its via sites maximizing plus makes

I forward, opportunity arbitrage. focus on NAV to creation this value the expect would Going SITE to continue compelling and

Phoenix. properties for our properties incomes quarter $XX focus and on weighted a the of rate convenience and without for bumps Coral, Charlotte, X the million acquired Average in Atlanta household in we fourth over quarter CapEx. drive acquisitions, $XXX,XXX acquiring investments almost lease significant of highlighting renewals terms lease XXX%, growth the In and where average were Cape

meaning we addressable by itself. X.X of X/X encouraged remain of the for the feet. opportunity have convenience grow. comprising total room assets represents X% million the market inventory Curbline's of The size to subsector, opportunities to unique feet is the convenience in square plenty of current U.S. forward, including portfolio Going XXX million we square according ICSC

act of we volume sorts expect of which advantage in to dispositions to a That we to said, are acquire demand properties as XXXX. while governor prioritizing acquisitions prior SITE's take assets, spin, will to the additional for

the very operations, budget. quarter with productive with results we and Ending quarter of had ahead a fourth

a volume getting sequentially, largely tenants this great which of business quarterly was of Our drove and property but continue operations do Overall, schedule, open part was of a our down ahead portfolio quarter. teams leasing job for smaller availability. a outperformance to function this less

fourth very to -- existing demand sales, execution our strong into XX new asset from expanding our along sequentially basis which both Leasing tenants due down a and team, lease XX% key averaged leasing rate of the Despite with from markets, leased. significant be service quarter continues was the concepts suburban retailers same headwind XX% for strength from to XX-basis-point points space. competing

to share lease X Bath expect Bed and all completed of Looking in our square negotiation, figures XX-month including forward, remaining effectively today. we over the feet similar reported economics at have which square at the another spreads than quarters we be footage, XXX,XXX next trailing

same of our our We XXXX. to be property the NOI material of continue to driver leases the of course signed expect growth over commencement

to spin-off thank everyone leading Curbline Before is turning the to possible The call announcement work the into at across for the truly stakeholders. create their want compelling few I strongly front Properties it positions of team the last in due believe the over of us for that the and months. everyone significant Centers value for SITE to and opportunity to growth. Conor, over company's We the this organization, us of is work

to turn And it over Conor. I'll that, with

Conor Fennerty

the earnings concluding fourth to Thanks, David. operations the start with outlook and and before I'll balance updates quarter with sheet. XXXX

the G&A of quarter operations fourth David we As budget had offset interest better-than-expected due higher expenses, about expenses and ahead snow related higher quarter were million do items, other material no to Specific CAM in expect operating removal income, was to operating reoccur. OFFO expenses. $X not in part the in partially including that Outside by to callouts items, quarter. there some seasonal the of higher we and noted, and to landlord these of

year. David quarter leasing was this to due highlighted in leasing significant Moving operations. less pipeline of Overall, operating and portfolio depth along the confident half activity backfill remaining to more XX-month spreads space. expect of on levels the With volatile. that economics with But over course dispositions the back year, become the trailing the the remain consistent will based we metrics year-end, small demand. with of Fourth we highlighting of to of denominator, vacancies, available and be remain the the the quality on at the and lower elevated, leasing volume

XXXX. Moving to

and on and they As October, assets. first publicly their focused extremely REIT plans. recent we the positioned that balance on in form business to financing with excited Curbline David along have convenience commitment the activity, to on with scale SITE the are noted, transaction based need we exclusively traded execute And mortgage both and announced sheets

expected formal not asset XXXX guidance of result are and a As FFO a spin-off significant range. the planned sales, providing we

projection total portfolio for for the SITE include expect portfolios move all NOI as as over year, the forward and are that update we we the of projections the We transaction though, of And properties year-end. activity. providing Curb owned to for ranges course

portfolio, at be X.X% for is be additional range to acquisitions, Curb same-store the to expected growth NOI any For total expected midpoint is million roughly projected before X.X% of and the XXXX. and between NOI $XX the

portfolio, $XXX range the the dispositions. million total the at be to of For SITE is roughly midpoint before projected expected any NOI

on earnings are underpinning our details in release press assumptions ranges slides. these Additional the and

fees planned In to items, we per the quarter G&A line other prior average of expect million average $X.XX around JV $XX to to and per million spin-off. around quarter terms

on timing the of of be the income first from dependent is and assets rates to in fourth quarter the in $X.X as quarter and million balance on asset FFO, NOI debt elevated included in activity. to of supplement. be sales, cash the expected driver short-term the the particularly largest year, will the though repayment detailed Transaction of sold is interest quarterly likely hand, any obviously remain volume, significant the Given half

Moving to the balance sheet.

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

debt-to-EBITDA stakeholders. for course expect base, drawing expect primarily maintain on with to significant, to mortgage billion providing of unencumbered asset to Xx. Prior continue and collateral additional $X.X we we SITE leverage commitment, scale to the Over decline XXXX, below the

mortgage the XX XXXX majority prior to from expect consolidated to the and and SITE commitment. will by fourth quarter part spin Centers mortgage Funding satisfaction the to to of repaid the the is post-spin. subject mortgage the conditions. expected This of debt retire be are in outstanding notes with We be prior secured the expected properties one closing wholly-owned to spin-off, of occur proceeds that to

have at its platform, universe cash, of For million $XXX will company providing while This Curbline the Curbline of largely capital Properties, Centers. and a to from in liquid preferred is the allow the itself to differentiate no properties. investment buyer private the focus balance SITE debt, now spin highly communities million sheet acquiring scaling expected time the to $XXX on

we and investment the capital no projected level entirely the of slides. XX on be Details of David sources found prior XX completed Pages look preferred uses Curb can asset the and Additionally, to on in on and structures fund earnings spin, sight. depending cash as and sales with noted, may

with Lastly, share, per special from is dividend The $X.XX first company of declared the on The $X.XX January its activity, cash quarter which a transaction also dividend share. unchanged result quarter. SITE hand. XXXX, in paid XXXX as of funded per dividend fourth a was of Centers

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

David Lukes

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

Operator

[Operator first with today Alexander Piper question comes Sandler. from Goldfarb Instructions] The

Alexander Goldfarb

Just a here. questions few

first, a Just one, big David.

for clearly, sort You're but that will, RVI not of entity going about Curb. you're hard ultimately it's you SITE, away, and pace at management's an if think focus dispositions the still on type SITE outlining legacy of especially to doing not

on think should SITE we So bit can October post a you more give how color just little X, about XXXX?

David Lukes

I'd Sure, happy to. be Alex.

strong and a markets at I we're think markets. really signals are signals on assets very getting values it that private depends the public the from at point, value. the the market we're signals what And higher getting this what private from

continue, that we're sales, to we listening so those then Should to pick and probably signals, continue And up. assets. I asset those sell think,

at can how activity strong. have You going much think right I are see we on values now very that

will that continue the and between being can the at strategy the the outcome date, is spin time eventual So assets, sell what moving forward, we'll to I time. is, all reconsider now in what say is we and and

Alexander Goldfarb

Okay. year-end I X.X% into the I you on prior batch year, early think that And dispositions. on the this you rates, then cap averaged think sold

now talk So a actually assets, a and about selling to perspective the almost the to cap you're little on And saying lower don't you literally, when the You're then talk Curb can sounds be the you're returns, then But acquisitions. looks ones recall asset higher next you just it like, bit the only have but which CapEx X%. you buying, convenience comments, that. based just what these not ones your a get said I needs, little IRR? but And batch assets sounds incredible, on rates? have wanted more at can about more also, bit look on you

part you're debt as underwrite of far expectations for quality as credit maybe assets. on as could you about that, the just you finding talk bad what then as Curb And

David Lukes

you cap times. in the assets cap were discussed on assets cap closed the in Xs. formats of say a the here of I rates, of low quarter sold Well, Sure. transactions a range did wide difficult some the that rates. I a pin in and handful as cap It's and well there. Xs, wide and a assets that rates number will averaging to I we fourth down think some are have numerous as the We X.X% high sold have range when

we've same where There negotiate starting low are and that are Xs. properties There's awarded group thing. we're to the some LOI, This high it's are next contracts, some properties that Xs. we're under deals,

lower. X% So don't the of have note, we be know to properties I do means I this an interesting is if batch, in higher the going don't I know X.X% think think batch, the going what average and or forward. I are the that average in additional last

last The credit found And in private the largely participants mandate that Beyond because more intrigued sense, left of in that lies submarket they're in What fits that lot like are of the the And high-income X the duration asset less by SITE the private quality, in strong. the X has so is robust duration that the we is term. lease-up been buyers I a focused portfolio. Centers' have of on market the or have and Bed format, weaker demographics. tenants pretty & lease years Bath are retail the and that portfolio the the

we So assets, on it like the those participants feels market mandates. are a putting private higher value those which fit means that

square also are There's is One a centers know, are more X of high. have portfolio of to contributes as the the $X,XXX that of have We store. foot. that, store and a the of to a than sales in than things grocery presence quite them lot the grocery attached still them a average you number activity that today dozen a more

would of expect months to So what I be valuation to with I next been do the feels think be. that seeing that the consistent we've couple

the are of this that this of and view seeing cap our buyers that. is So outcome value we're and seeing credit rates duration quality, the on

we're side, between main buy of the buying the growth. the that convenience that and we're On difference selling where growth buying properties, and is cost what

convenience So if a higher that the we IRR properties agree significantly do but than what of less, with the today. deliver higher to number, generate unlevered can that selling cost the I we're you is same-store much is

Operator

comes next from question The Citi. with Craig Mailman

Craig Mailman

almost quarters pace you a quarter. sort it of you are have Thank last guys million the sales, because on least at follow-up of the the $XXX averaged couple of

$XXX guys have You contract. million under

it about kind the to marketed be you what, that balance forma Is the of maybe what us of $XXX at or left $X.X for not sense the about contract to phase, much close could a million. is of how give LOI year? and volume the to billion Just from right under the Because seems like being a currently, beyond guys cadence but pro have, perspective? $XXX sell million,

David Lukes

you're David. Sure, marketing. a the but volume think you, you're what going? I asking of It's what's that to we're difficult assets where Craig, hear it's Is is that little total

Craig Mailman

Yes, pretty talk to that I'll similar kind did you what fourth louder just on my of you're $XXX the million fact and quarter. the cadence sorry. in total volume the a marketing today that Yes, phone. the that's

that kind it here run think near left, Is is about in what's about term? way an here? rate left feels And right achievable So of about quarterly what's we of kind billion. $X.X kind also of the think as like that the to

David Lukes

much now, under properties in somewhere $XXX negotiating to days. that sometime going pricing been That has transactions, up various like like to brokers. to the a the portfolio with and be around is another that's process. group launching transacts. I The $XXX transact. have real in we group, XX million There forms right do said, been properties have let's wanted question There's couple where that the of Well, dozen equates we are how say, it's of didn't a speeded LOI about of small together and didn't that X assets an that There marketing has situations million. a next buyer

it simply one in it So small comes does really groups is much John's and to down is have or by to transact, it one portfolios? larger team or how time

another out $XXX early say, actually closes it transacts. much the got difficult feels I me that's how then still than much of another So an know that $XXX there's for, of fourth of closed What and like is million it in we there. to marketing other that's if of volume million for we've million it's stage really plenty don't how spoken $XXX in and we've got quarter,

Conor Fennerty

timing of had we between a being the the listed, it's you're a a just from or on when thing cetera. cadence you only context. kind to closings now, December to X the just et point meaning and David's are from lull then just the likely next batch, see to month probably slide perspective, Craig, assets give I'd of

million not LOI a run likely $XXX quarter point, second lot being contract, more to based a quarters. first could off listed, plus what's third David's have it's in see So or under rate. how much But we the and you volume

and of In for ranges the on projected terms NOI valuation, did the SITE we question your provide Curb.

asset to put sizing of want rate base. So help should on you give kind sense defer the to you that a of what you in but remaining there, cap I'll on

Craig Mailman

your point hit of that's to how kind marketed does you that And on driving decision rate, ultimately, are what's And getting in? what that No, the the David, think being do is sell versus are here? fall the kind rate the kind of of helpful. think what you the you're of what into pricing kind hit to translate of that bids characteristics maybe some or don't that versus

far doesn't as fact low versus anyway? of sense the better of you at kind some continue here since of they pricing to portfolio And so are ultimately or wind spin? ball how bids? the why that point effectuating just outside And parameters this it the you're given just mean, need I a to not them this down for hold make to out take these

David Lukes

say a I little in spread Yes. bid-ask would was the quarter, fourth the wider.

chose like there transact some strategic XXXX capital I were that properties so buyers or off second a Craig, the value-add was have where sold has last is certain half were in that What In market. there fourth year, relationships a most of in with buyers on. at we not flows. what think were quarter market the And changed, strips. And number of looking feels of buyers John to we

interest plus the been to XX has core from in in quarter seems there's have What days allocated just capital changed noticeable. more The is first in the strips buyers. increase last institutional that and core to

therefore, amount capital the So and like stay has real me the fundamentals looking gone to to bid-ask core of buyers is it to that confidence pretty really high. has spread tailwinds the me come feels for it core level feels the seems of sector likely good estate the transaction activity higher, has like and in, up,

the so back it rate than think year. was in do half the probably of last I hit And is higher

Craig Mailman

And Okay. X then one. just last

couple of a we're the initial kind of here. announcement past know months I Just

So and management of between the do on you with SITE G&A fee clarity more guys goes kind along the Curb? have spin any structure structure, that

David Lukes

to the the different. order one from that of that we'll purpose shared will be between getting companies G&A remember the that Let's and for are in is the services in One is X X getting allow to migrate smaller putting to very And bigger. place other. company these companies facilitate transition, that X

shared don't in end the companies. the burns the X the overlap between agreement of once staffing At expect I off, any day, services

leadership. going which the couple able lot a needs more to I the know would of be months in type more information I to would certainly X in quarters, to and think to expect the we're And as which of staff give months, more next market. company we next

Board transition G&A period, don't very the a a of on but our confidence lot as Directors Centers as the focused SITE today you Management is to very few very there's And in at morning. this I issue. can Curbline G&A But a eventually I add detail high. level efficient more lot the focused issue. think quarters, be we'll have run that's giving and a is next is Our on we that at level least

Conor Fennerty

more just -- effectively giving get [indiscernible] that earnings projections, for spin, to towards obviously And back an got transition part kind we've you the giving pieces. Yes, the to is closer about come of ingredients they remember you the some see in of Craig, we're about that. start you'll parts. months us and we still the the Form as think David's my point, off, story comment to X-plus ranges. important you of to The We pieces if NOI

see kind months. of a next today the provide over you'll additional information, October dripping information think much out we versus I of So like again, of couple

Operator

with Todd from question next The KeyBanc. Thomas comes

Todd Thomas

you're acquisitions the you SITE I'm you're but a investment for First, think, we Properties should volume emphasizing can of Centers the curious seeing for terms how I dispositions in Curb pricing? Curb think just today today, on of bit And entity? product said the in going of the David, just expand forward little you that pipeline market in

David Lukes

angst certain all thought. we're given any assets. would have a We've in a there's that time volume we're of of are is much that Curbline internally got be I at U.S. opportunities lot Todd, of higher because the buying underwriting. assets Yes. The available amount than excited to

market like been feels rate We've mid-X% financial addressable in there. investment. the the that buying somewhere range. is strongly it So the about cap of feel returns We

time The the capital to mentioned challenge lot intrigued got is on. one centers, of I high. Craig, simply very seems we going to We've of 'XX, turn activity with Like management. awful disposition an strip it's of the as calendar that amount to be been

And that's so dispositions. side, the legal the on and diligence that's underwriting allocating And towards side, we've been side. on due transaction the internal that's on resources

has much governor a to we so a how little on allocate of And it bit can acquisitions. put

the to the I acquisitions a expect on months little busy slower be over So bit selling. awfully of would we're next couple because

Todd Thomas

is X.X% in segment? driving the rate next years, I elevated Curb basis premium that the just term same-store more or that for X% expected to in said is you quarter several talk Can to on guess, to midpoint. Curb grow, to over And X.X% relative XXXX X.X%, growth grow expected around but same-store the at so about what's near Why Okay. long-term more that is target? you growth growth the 'XX, the

Conor Fennerty

and collapse the the of Sure. Conor. The SNO of lease of factors Todd, the rate. There's there. kind and being biggest occupancy couple it's simply pipeline a one just

volume sector, just like our open-air occupancy much we been there's SITE lot compress much kind So of over to the peers, Curb Centers, much in the gap time. like of a portfolio, and that leasing expect like

you advantage portfolio have downtime. is of The Curb the other less member just

the the downtime in to shorter about of you years, it think over if got back so And you lot couple space backfill versus a if is last anchor.

And in time growth. you're period, compression those just to is get or seeing much backfilled a line spaces which kind driving shorter so that of the

have we are as remember, -- is well. significant denominator, mark-to-market very Those it's as driving some thing well. other a The small very, opportunities

smaller drivers similar boost open-air would or and It's I tighter of kind say a So estate. versus again, time a just it's line real a other denominator.

Todd Thomas

And sense. David. Okay. one That makes actually, one, last

an the sale be estate on still dispositions? So marketplace you've the there on is today best of a year, now, the any to property something retail for of appetite in for think, executed appetite larger mentioned beginning Is the activity the twice real take one-off I the the portfolio here. end to place or site year in increase basis? disposition Or since

David Lukes

work it with Todd. or about certainly a It capital the job transactions. if sensitive. be really portfolios a I'll curious but we're I be or XXXX several likes bit really been it seen, to that it's portfolios. an we also We're curious, knows groups a portfolios of one-off remains that don't the continue been asset. cases, of easier. I more there's have got And increase price submarket And and And in open-minded there with extra means a the see certain worth because just But because value. to makes potential our will know. little conversations private be as that's lot a well need

Operator

with The ISI. next question comes from Evercore Samir Khanal

Samir Khanal

X% David, I positive to people may be cap, to you have an power a that may market a that of under of the mean the million that's sell. $XXX contract, it out for X% read considering centers think remaining the some was on kind closer there what

the on centers. bit this So sort like a color get power I these just little a geographic these don't of located? more on, know, are regions trying Or bit color Is portfolio where maybe more deal? type to a give us assets

David Lukes

I awarded of first just did said, remember under contract. Samir, a not all, under contract, say Yes. I negotiating LOI or

they assets with XX% what some majority working by store, fairly They're The much relevant. have type feel provide at volume others, grocery a to of but out, portfolio. like what spread formats. are consistent that don't. about the them retail of we on across get currently approximately those we're might About least might replaced we're of we're XX% was of negotiating pricing contracts is today today on felt since traditional around the some it working the country. in is important So various fall how it disclosure I and

are Some are of larger smaller assets, some assets. them

pretty feels And of me, majority so mix it of a good portfolio. to the like our

feel that yet very grocers. in that say for a it's assets have consistent not assets And better, to with read-through would of most part, theater high-volume a probably a rent. high are majority there I the worse. i.e., the pretty that, are They are have not that the included that But some we I transacted are are might there portfolio. some like

Samir Khanal

Curbline. I no guess initially. at And for capital But my structure sort Okay. longer-term time? this guess, I Got even around debt or second I to question the you of plan Curb what's have leverage decided is it. the know have

Conor Fennerty

it's Conor. Samir,

Dave of time cash to today, million As of investment. preferred expecting $XXX I a mentioned, million spin and the both $XXX and we're as at

However, let's to David's sell of to we've if $XXX we or $X.X cash, shift assets, GAV and got $X.X likely think to billion million yes, call just that point, continue today. billion of it, I

do into we to million $XX point, more Tom's a expect acquire call quarter million to let's going to Now assets, it. it, $XX

it, perhaps, a you're million $XXX So $X of it, call billion about spin. and GAV of, talking $X.X and billion, round call numbers, cash to

that years, mean balance trajectory? is, utilized better looked to to last once at a assume our consistent, think that out. group. how path capital. marginally Centers X deploy that SITE it's it company there, leverage I your cash, then And was look than question peer you if over would generally what's I leverage sheet you kind to we'll the if cash that maintain the the of or fair use plays not have Curb Initially, we've I see And think

that's that fair seen All that a from I think now. aways assume, curb see -- out me, be for it's fair similar to path. excuse And to said, to it's fair

So to assume what we'll I structure -- think again, how from helps answer don't just we're I your if fair have consistent as But we cap it's there. we SITE see go know it's a today. question. that with

Samir Khanal

does. it No,

Operator

Floris The question Van Compass with Point. Dijkum next comes from

Floris Gerbrand van Dijkum

growth, Pretty say. like couple months. you new be looks going higher the for you're to exciting, next of busy It as concepts,

Just costs curious involved. the on some of

the what cost billion would cost the commitments could debt of $X.X of got be? of what the debt, is that commitment you mortgage that mentioned You and that us for you've tell the debt,

you you And related want then think, assets the lenders to that is assets already? secondly, post credit debt on. as they're I part Presumably, spin. know to assets, XX what those said will of identified you've providing Have that,

better be that And on little your or post maybe remaining you give those are a some of that of assets expect SITE's to detail so does -- what's spin? bit of assets part

Conor Fennerty

It's Conor.

got you and If which we've as uses we of the year-end. our transaction, on XX, sources updated look Page slides at for

announced a you the that of the similar on XX, third of provided quarter. slide at the time October spin as was we recall, If

this rolled the help of kind uses. to we've and with quarter sources So

commitment are from to we've fee out point correct costs. to that related the You excluded those that transaction

market we out But generally I a think there'll they're here. be the additional terms. the part in filled from next assume provided to details K, in our of it's fair as had of couple We weeks RVI commitment facility.

is think market and generally a month, that back closed assume If years X commitment ago a to facility similar. something Apollo it's X around I very this fee actually of upfront you in and ago kind the XXXX, is fair recall point it or years

who with with team as years as that I back SP, old Atlas that X products mentioned. are If counter-party is [indiscernible] you just ago, our counter-party, X or come to the

we've group and deals someone it's number a done in. a of number a with have lot we've occasions, a a trust So group worked great deal of for it's with, of we

them. commitment, gone of for we As XX those part process already assets. We've our through underwriting that identified with

Yes, So worked has been yes, lender that pool the that. has identified. through

as kind go-shop effectively different can a take a of continue also where we market there's go provision in part and or with Apollo. recall, to work to can we commitment path, Atlas you or a that that If of

use Craig transaction robust. even we based To a ultimate There's where that really think world. point, at smaller details I world don't financials to be David's asset we'll get we borrowings there's even sales. more of should I remains the ultimate a more the aggressive if are determined. We say, or from a to any economics, earlier, But spend transaction So off closer. facility have -- as market much time provide

more market as it's spin, -- a And updates again, provide deal. as closer details through assume to we we'll XXXX. So to but market progress rate provide get Again, it's we'll we CMBS it's a fair

Floris Gerbrand van Dijkum

Maybe....

Conor Fennerty

sorry. ahead, Go

Floris Gerbrand van Dijkum

fire away. no, No, you

Conor Fennerty

here. me to say, let I for question missed if I your was going anything know

Floris Gerbrand van Dijkum

no. No,

answers think. that that question, I part think I of the

as I'm portfolio. The other one the question far [indiscernible] somewhat your There's there's other, sizable similar I to which had yours, that's there as aware, one was in other is portfolio relation curve to out portfolio.

You must for -- have you that looked a you at Maybe could portfolio versus portfolio? give that factors closely. couple potential of your differentiating

million assets? what convenience your assets Or have much as acquired you've of portfolio, was of Curb that how NOI, carve-outs actual the you existing that NOI that what's for standalone how $XX -- and your of versus percentage should from assets separately think the your people about

Two-part question. I apologize.

David Lukes

carve There Part I'll take there's a a, much into is buy inventory say on you because portfolio. in that leave of did and hand this what to Conor U.S. information. which I what b, convenience. what so to just chose behind. between chose the portfolios the out let I I'd portfolios smaller different are out. mean comparison select years. in there. hate details. imperfect a will midsized to to have we number We But the last we X in Part We carve-out get chose

know. we're data we've quality, the the the locations, cell credit very as growth that years, submarkets, tracking the daily traffic, happy the for phone with been you the So quality,

So we hate on. I comparing we're have information the don't portfolio with to just that it really have. just we to start other portfolios happy perfect

Conor Fennerty

literally aspect really a this to a it's asset. from asset of think We David's up point, important ground I this. by And built

the guess, as in are of good but point marginally right, outs feel So The Page overall metrics about XX, which David's assets. day, overall point. or every every we in makes more carve your difficult about to comparisons, that's really portfolio the ABR, the of here, terms coming Floris, than XX%, down I maybe that. we on buy

And of to $X $X.X and to we GAV dropped $XXX you the outs million, Samir's billion-ish we balance $XXX a deployed question if carve-outs $X billion, sheet, to of think cave as that we're about, million today, billion amount. are the on fairly insignificant

really about cash. over them, subset shrink deploy time happy hand-selected good feel we kind operate we we lever the of again, each to those carve-outs. as of each But the portfolio will of of least own them. that We're So at and

Operator

comes Bin Ki Kim with from question Truist. next The

Ki Bin Kim

can Just quote a that a is? you here. what that? rates your including couple And you're dispositions, like you items property just of if things When housekeeping definition talk management cap about on charge and

Conor Fennerty

the management. In our only Ken, a one of is including Conor. a mind, it's NOI, cap which definition X XX-month rate, there's

Ki Bin Kim

that's a for Centers SITE I'm $XXX Okay. what of XX/XX/XXXX projection ] [ translate million level, portfolio? if the you that from like assuming NOI portfolio, your And just And on standpoint? as provide NOI can to does same-store high a

Conor Fennerty

Yes, right. you're

as assets X the sold January were includes it or February of that So date. to in

adjust so for need to those. And you

of balance sheet So the effectively, XX/XX. NOI we gave the and you

So it's call to a point out. good

In didn't just a reasons. provide And in is terms a both projection remarks, we same-store NOI, prepared to our of site couple and losing is for of for and the alluded biggest Dave I something this centers reason, relevance. it's

of our Does in of volatility just seems number result, to a are Bath around same-store because included which going will sold $X Beyond. up. real estate, start real Bath higher if to we fourth Beyond In & that better vein, really simply SITE effectively had XXXX, not expect not. of a estate because in whether Bath not we to we dropped metrics in getting the Centers that Bed None there terms or of Bed worse real for assets we So as in It's would quarter. but better is & or estate for year, operating a it's those those If our sell assets, things our portfolio? the the the Bed mean same first grow be relatives. of the half it's and No. or billion go in of

through think you you course it's similar year, half for place. some the as first some then and acceleration the should of fair how over dramatic fourth quarter if look a come SMO a And about and in same-store growth half of pretty backfills year as guideposts you into site those comp we the back static the pipeline Bed bath think Bad -- about in to year be of start portfolio to the assume also see the the and Now to of would the Bath.

And we number consistent so and pretty back gets a it's the give think we in or just 'XX metric be to relevance of But what are what caveat XXXX provide dramatic off did sales the for reporting volatility is half, think that you 'XX. again, based relevant don't peers for that same-store at the in some is I to would pretty our time. think course over we guidance of that with that a and I you, the of just that level low asset the of this their

Operator

Wells The next Dori question with from comes Kesten Fargo.

Dori Kesten

at Would sales or firm move spin time October call rather material point? line you could incremental for Or the forward? this that

Conor Fennerty

a great is one. question. we X great this It's placeholder. It's a October think At time,

You're absolutely right.

don't change done, transaction this dramatic up said, we might asset that All remember, positively get right? or date. transactions we move that need in some back to saw move negatively, to or you If sell another

financing the effectively was bridge. is That that

response to David's same today. here and stakeholder stakeholders, both SITE which earlier is point Curb from So from is upside or to everything purely the

update along. So a go you great it's question. We'll

are our whether the transactions -- or best probably today, to remain forward date guess. it's moves that feels biggest so. a As It variable back month like of transactions or

Dori Kesten

-- level what sales equity the guess, from asset of point And on from this what preferred remove I stake transaction? the Okay. would

Conor Fennerty

I pretty we a a probably additional for dollar. here, $XXX an It's to go million sold close story preferred mean, away. would dollar if the

likely we to Curb it again, the does need just in cash off seeing, the volume simply everything feel it's that David's activity likely activity We said, likely is Curb we're place. the pretty and additional have around assets good of got that sell I like think point feel that is to [indiscernible]. financing, we no level today, on the don't of going but That we've based cash.

Operator

Roja comes Green with from Paulina question next Street. The

Paulina Rojas Schmidt

towards my ABR the shop. is And for about the say in-place for of your peers XX-foot, for which it's end small And what question I I see Curb. high is

the your So I for do today? was wondering where market see space rent you

David Lukes

a higher store, in grocery to rents. the to to vary along rents. we have properties The format dramatically shop a of adjacent to lower tend larger as In of shops, is that that up adjacent larger can refer B question, reality property to other the the property. it's a the tend The rents are back shops a Yes, in front that they're property have good retailer Curbline a in words, the Paulina.

higher it's So the not good question. a or rents. The buildings pads along surprising the high-traffic intersection the are that generate that mark-to-market multi-tenant is to tend outparcel really

of been that. the is reason growing, on which data, And pretty a the out suburban telling Part succinct answer lot phone hybrid cell the us rents migration. a I of with coming is a workforce of specifically pandemic don't that for The have market have is shops that entrenched.

lot demand. You're tenant just seeing a more

is And not so that a present. mark-to-market sure rents we but a lot of really growing data, pace have the certainly the we're are don't great at

Conor Fennerty

portfolio. XX% in Yes, Paulina, the our back -- important new think spreads if look you I last I year think our XX, over averaged Curb an from disclosures October lease X

market the grocery-anchored out like a biggest that national to asset, we that to as in one the actually that asset think get is can mark-to-market opposed get the mark-to-market. at you're is grocer or a leases about with think things the such biggest is is duration type I the back, large going rent i.e., the or of really property tenants someone you the and formal we else, about achievable, meaning that the of mark-to-market never

is important it, property we real isn't formats. other it's type like which an we differentiator the always can in at really that the and of case So open-air there's mark-to-market, get

Paulina Rojas Schmidt

I second are consideration And wonder maximize made to trying at it a prioritizing accelerate you my dispositions. sure is, XXXXs? acquisitions to then that question during if And all was you

Conor Fennerty

question, really good a It's Yes. Paulina.

is this gain XXXX spin, because we're taxable a passed gains actually not stakeholders. off then that to Just better effectively the on is given

say, other So to that There're overall would significant have blended certain enterprise. just level. portfolio I is portfolio don't significant but basis, it's the tax actually think assets on an point the relative at we I have don't material should I the make gains, gains,

market the XXXX of for both So for is us focus today. those a of reasons, less

Operator

Mike next comes with Mueller The from question JPMorgan.

Michael Mueller

few on Curb. questions a Just

a break kind you the out can give as if sense Curb all, blended of at spreads, stuff of you would your between them want SITE sell? that us legacy rent look we would to First you and how they compare to when

Conor Fennerty

Curb. -- question October Paulina with different the a or bit. spreads little there there's -- is for again approach will though, -- haven't broken presentation, the my out we Paulina, is to response different for Mike, -- provided point bit a little approach to Yes, we There Curb to I not in them out, or a

to likely XX are have that for months the out include We last that within moved not a all included spreads tenant spreads in variety that, a just of reasons.

think it's than just that if lot just is get bigger it's and the a not a But -- kind look to that we two, we SITE. relevant with XX%. spread lower. dramatically that's capital pool; One, And a have It's averaged just spreads differentiated metric. more different approach, you of new our

only So those back different again, I'd not caveat being and all bit XX XX than vacant includes spaces, presentation, the approach, less a point just just little the that's that October you months. to

Michael Mueller

part Sorry, I miss that. of

year expansion would whether renovation envision goes supplemental, out in bit much the And guess activity a at you when is look out question, theoretically one as And everything went signal the with redevelopment my that, SITE? for it it's looking the break then out guess think you you I question. little typically the I a we're spend like well? safe that other tied that, to say last portfolio to too. I a legacy pretty some or during so, that like at expansion. Or when Curb having or

Conor Fennerty

the up spend on and that Just framing University and new today shops David well, at of the is but him, to path. is old Starbucks of pad. Curb, that's I'll part Hills SITE what's for our SITE, defer in as Curb part That the

David Lukes

low can point. estate to Going renewals redevelopment we there. with said this purpose and of It's will CapEx. forward, business activity raise minimal that, larger the more real is portfolio buy best here gets at I required business. a the The the the is where Having think that rents our be certainly at renovation work

would component think having redevelopment I large a not but we be to this expect activity, I will business. in So some have us

Operator

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

David Lukes

Thank you to all for we you joining next our quarter. and will call, talk

Operator

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

may You disconnect. now

SITE Centers (SITC) 13 Feb 242023 Q4 Earnings call transcript