SITC - Earnings call transcript Q1 2024

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Operator

Good day, and welcome to SITE Centers' First Quarter 2024 Operating Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I'd now like to turn the conference over your host today is Stephanie Ruys, Vice President of Capital Markets. Please go ahead, ma'am.

Stephanie de Perez

Thank you. to First welcome Conference XXXX and Call. morning, SITE 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 reconciliation 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

Good for quarterly call. joining morning, you earnings our thank and

talk was company acquisitions leasing Curbline through XXXX, with us quarter This along planned on into Centers' portfolio along asset put portfolio dispositions completed has a and after SITE of And years with through on maximizing convinced ever balance of differentiated, with million investments, the rest shift new on first data an Convenience of results, $X Centers to the of than focused investing then within first tenant transactions, outlook quarter certain of operations of the acquisitions dispositions several management. I'll new it analytics Properties. the the the assets quarter growing that The Conor reviewing over over by and path is an update with convenience additional spin-off the and year quarter $XXX more ago. Curbline. in on sector portfolio began the and next we continued the the from to are unique our start turning Starting financial a and third before since for years dual value opportunity. of Convenience with sheet. and billion a about update X to the called Curbline, SITE conclude highlighted Curbline of growth progress we growth and announced unique over announcement, and analysis, over

are CapEx Curbline roster XXXX be what expected tenant minimal in a growth X As the announced, other risk that as is years is and a the next the when NOI to to compared average and to and recapture by for opportunity, to mover REITs as annual types. Same-store mark-to-market portfolio and needs property organic units, with X.X% in we first we believe cash other the highest these has ability diversified attributes. high-quality bumps, concentration current all creating seize than of REIT grow Properties to greater and this limited driven flow unlike Curbline for retail factor potential X%

of Curbline and and by including the highlighted These share assets XXXX $XX properties acquisitions. are quarter for limited convenience XX portfolio end, characteristics, quarter to included visibility, about results generate economics we NOI CapEx first of As million wholly-owned excellent common after access compelling believe adjusting expected and in what needs.

U.S. daily to growth with are today of generate of hybrid no which own a customer asset. migration fraction to only in portfolio the that is and integral lifestyle, And Curbline part to the largest, outstanding elevated is this stakeholders. the combined we and returns cater represents which yet work. Arguably, of highest-quality has primarily Convenience for become Properties of have debt, needs relative is addressable with type expected entrenched suburban for more sheet only balance market a what increased adoption compelling expected an properties, the convenience the suburban and

spinoff of and in CURB form the in million we As with today, a October of X completed this capitalized cash of the to expect $XXX preferred of Centers. be on liquidity around investment SITE year. With or

Additionally, either under blended increased property consistent has real of to last last no with The volume closed of SITE over quarter, investment billion estate with with The $X currently under progress since make cap with billion retain roughly of of should submarket commentary front, nonbinding cap just disposition or at we a continue rate at of total negotiation our point, would in to in since power that not centers. that contract rate our bulk we a call it executed LOIs million million CURB of moving is debt of $XXX be blended simply closed preferred inventory contract, dominant transactions, on is activity X X%. of likely this quarter, in under transactions $X.X X%. cash. On July wholly-owned primarily capitalized the sales $XXX have and year-to-date would and a disposition resulting

centers. unlevered for are up expected factors institutional This quarter, supporting deep that escalate, the have our pool assets are open-air of launched committed retail interest. momentum for believe variety we that market to discussed replacement are sophisticated, an the the Leasing These is year, continue well-located middle market year-end. and around and and growing liquid shopping we to buyer strong acquirers. been high-quality of have often that strong, investors. interest portfolio been a wide of open-air remains of this showing costs buyers and rents format with active private over participants process to clearly last are pick Closings bidding The consistent the and line in time

announcement. and spin-off level the assets to the opportunity certainly no identified Centers' volatility asset market but quality on recent sales capital the the weeks in of markets SITE speaks certain been the closing, we has the of until are portfolio for the There demand that elevated with and

a investments acquired over of $XXX focus first almost Convenience drive acquisitions, lease acquiring over halve Average and additional and and weighted bumps CapEx. properties quarter of contract, subject household awarded growth quarter on in under our closing with and or we million of standard terms first rate Houston renewals X $XX assets the Phoenix in $XXX,XXX to million diligence Convenience In income were significant without properties highlighting XXX%, where lease the for average provisions. for

is expect we of convenience the total convenience unique million opportunity for addressable comprising Going encouraged according size forward, square U.S. XXX portfolio represents The square the of remain inventory, to including X.X million prior significantly by to the in of active X/X That opportunity feet feet. market dispositions subsector, Curbline's prioritize assets, X% itself. the in current continue plenty acquirers assets we spin, ICSC will to the remain said, to have as we to we demand take meaning dispositions of compared XXXX. likely of to room more in acquisitions SITE's grow. which result for while to advantage

and operations. quarter the with Ending

on levels space. Despite held was were and Leasing our offline space sale certainly down First function part expectations tenants basis lower higher proceeds the very of be is which was service team, rate of maximize lease quarterly new quarter competing both the with strong sequentially G&A, from lease Overall but to a leasing strength higher to as from process. ahead termination key execution remains fees. existing demand down availability. concepts less as expanding and sequentially, for results smaller volume and a XX continues of XXXX occupancy points up along leasing retailers same suburban markets, for the we our in into of part portfolio

over XX-month be negotiations, the Looking completed today. we in trailing have share the next spreads XXX,XXX similar reporting to at figures lease over forward, expect which and we square to at X quarters feet economics

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

of over work of of again at thank that, is to their Conor. for organization, these been possible we unlocks turn to want stakeholders. And Conor, nothing value call has over believe it I The everyone I'll with few SITE incredible. transaction significant to create the entire the past opportunity and Curbline a due compelling Properties short company's for to to the the turning Centers the quarters, which work spin-off Before

Conor Fennerty

and David. I'll before start with with you, our to earnings first sheet. and XXXX operations balance Thank concluding outlook quarter updates

of As G&A occupancy Outside to there were fees lower expenses. were and quarter. due termination lease David and ahead than no higher operations, items, including these noted, first the forecast of quarter budget better-than-expected in other results call-outs material

operations. Moving to

the leasing expect trailing we of the on with volume quality but to sequentially backfill due the to remain though leasing spreads remains metrics XX-month of and portfolio confident the pipeline quarter XXXX leasing remain the activity run this depth higher be end, we volatile, quarter was on operating the highlighting of levels. and XXXX space. at and consistent based elevated, David for and demand as remaining vacancies, remain Overall economics than With smaller denominator, lower First disposition highlighted, rate, activity.

Moving to XXXX. our for outlook

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

of dispositions. And did and updated portfolio been not the move XXXX as assets spin-off to and did FFO provide result results. NOI over to forward activity. we formal course year-end expect though, for transaction for asset the that guidance have the future significant range year, As and with the quarter total ranges for we sales, provide CURB projection of a and first continue to reflect update projections a expected planned the We SITE we acquisitions XXXX

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

For now before midpoint additional range these release our and dispositions. Details slides. million expected underpinning projected be total ranges earnings from the is are NOI down portfolio, $XXX of million press to at $XXX the assumptions in any the on SITE the

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

resulting on for remains quarter, discount, a under unsecured activity. significant quarter, first the a $X we the dependent that repurchased in though obviously point, gain be On million interest approximately just rates income debt repayment at and million hand, to of bonds $XXX,XXX. the of Given $XX elevated over on that at in will cash figure balance short-term

Finally, of FFO. is the And included we statement. transaction first of particularly sold sales the income assets detailed from NOI in of asset quarter the quarter, expected as to $XXX,XXX in largest be in volume the timing quarterly driver the

the to sheet. balance Moving

net debt spin-off, the of decline of we north terms of a with In at to to below leverage over leverage just the XX%. expect quarter EBITDA Xx continue effectiveness to was Xx. yield debt end, with debt-to-EBITDA Prior to

we also significant primarily and to additional commitment, collateral mortgage Before scale drawing billion expect maintain SITE on base, providing the stakeholders. $X for unencumbered asset a

As notes mortgage to expected I will be funding mentioned, commitment. subject and the and to satisfaction we This repurchased XXXX retire $XX debt the consolidated majority secured in the post-spin, Centers are SITE outstanding the the prior million expected be occur that the expect and conditions. to prior XXXX mortgage to with part of spin-off, XX to from of proceeds spin properties quarter of by of closing is to first

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

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

of XXXX, dividend back Lastly, announced, with per was The dividend to $X.XX funded share. in David. Centers that, turn cash on as I'll January SITE previously paid with a it hand. And special

David Lukes

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

Operator

comes Fargo. first from with today's Kesten Wells Instructions] [Operator question Dori And

Dori Kesten

line I believe. a rate for cap negotiation Or just been that or in under of than with these has under for Is assets? noted your X%, billion initial expectations You better $X contract interest blended expected?

David Lukes

expected X% X% merging X The closed in negotiating rate. ago. sold been little LOIs contracts stronger negotiating you're comments. we've billion we is say, $X think general, approximately I a on We've has and rate. a below or a months awarded just cap I pricing over $X cap would the billion than under X

Dori Kesten

pacing how And of Okay. of X? think should dispositions of ahead we October

David Lukes

close, It's some some really that I a not say may awarded question. in billion with of good to may would $X close. those those various of buyers stages,

a a on from, interview contingent are equity their of they time debt buyers number where know, of their and buyers is is you factors, high. lot level taken As for confidence understand to the in and forth. pretty but We've need our so coming

level to close couple closings of months of high. Having that, confidence our of next anything a as of the said of awarded pretty is unlikely not is So that's lot in occurring in months. the next today couple

So the you but probably pretty be can would I a having substantially decent for an think unlikely. guesstimate months, next few pipeline increase

Dori Kesten

ahead it? few think likely up last you Or a slowing quarter I to on of sales, pace you there'll we just quarter. greater of the few a did quarter, the And mentioned to in be a Should convenience as likely be acceleration there acquisitions complete focus in acquisitions, heading Okay. a the so more assume is you per in spin?

David Lukes

general, that that's the for towards But would let acquisitions, from months function we of I a mean, just lot specifics. is more in dispositions demand been to some more a time us the than allocating have and ago. demand. than There's Conor buy X I'll thought we're give assets time

time a the lot dispositions of is So on pipeline. spent that

$XXX been to As number that's awarded far million do of we a that's deals. as go, acquisitions have us,

probably that think And assume on the I to acquisitions. on into a couple think is quarter spin, leading spending I can quickly time a going But pretty reverse per you post spin more lot we're so appropriate.

Conor Fennerty

this Obviously, just Yes, what but with end I quarter. per million the it lighter mean the higher we've $XX consistent to we're to Dori, in that million next of probably be on that highlighted of quarter, means of kind acquisitions of end range the just quarter. $XX David outlined,

Operator

comes question Citi. next the with And from Mailman Craig

Craig Mailman

markets markets? here. people anyone shift under largely seen with we've or LOI. seen any here. that had XX-year an I the get issue you go issues who capital not David, been conversations point under thought to you volatility to just you back Or of any changing were so in contract rolling debt to given Have comment expectations going slow Is kind the you want the Clearly, this around and your jump around at in or has macro far?

David Lukes

you a it's up, good mean, in rates are Yes, if going a would I all-in have are that in reaction yield. certainly, Craig, really cap commensurate expect going question. rates to

properties. the the equity hand, other side rents formation been capital rising. a the of On buying there's open-air keep lot more around And

really at if of deals side in type what looking the stream both and awarded factoring our the at of revenue $X And seen pipeline the this we've equation so cap of of a I over of market that guess of potential has property. and that X kind growth you're from debt the billion, kind been the shows you

conversations, and to had about John team say are when a but potential cap wouldn't that's impact of amount it. seen interviewing your on rates. I date, to point it's And just his So significant those haven't can't going case, we always had demand. of to much say I the buyers. buyers just date, be to We've an and

does is, from? are come we've the not? you buyers second are unlevered your attachment first very low or that And the question or One a equity using questions And have either is, point. debt tilting been where of towards

I the pretty date to think has So impact muted. been

Conor, I to don't add? you know have if anything

Conor Fennerty

sectors. to of the types in other Xs saw We Craig. property you our the like couple other retail sector down cap just multifamily. the versus you, or rates and One a is and factors of some yields point There's that industrial got I'd other sector never Xs

of a little markets capital around sensitivity lower the result that. is bit the So definitely

higher I to rates The out, benchmark second thing right are than they you're today. point would are say, obviously,

capital important would that we is markets as availability. in debt I just things they think regard, And about ago. health just better of than say materially months One are were factors the X

X as so a borrowers underwriting. think the as significant but through important. is important months, would last factor in rate is is we've I important, structure just over underlying seen of And you pretty for which say yes, underlying that And kind improvements structure very underlying

Craig Mailman

form maybe What that's from negotiations. way kind of That's in at billion to kind of money of that some the Of percentage at it. another of buyer? $X helpful. risk come And the has

David Lukes

the top my know. Craig, I don't head, of Off

Craig Mailman

in Okay. team just million good seems said assets have pace. of And then convenience of guys just to is flipping kind focused around your the a curious, you $XXX I'm the always be on today. acquisitions pipeline

had you assets point you with sellers was to focus? main focused If XXX% opportunities of getting the on and willingness this be if sort your of the do out what kind pool deals done to would think focus dispositions, quarterly XXX% you're that there at of acquisitions, on pace a think given could good part that be of of

David Lukes

the the small lot spreadsheets in or of before, understanding we've and across acquisition time last of said the relationships couple midsized front. own local On private inventory with to community, we And building building country, the what portfolios. families spent might owners years of a brokerage which

So our I the we $XXX at announcement a minimum. back high of confidence time of pretty even million said spin that level October, is in the think at acquiring a year

of kind that's our So target. baseline

Operator

question Goldfarb next from with Alexander comes Piper the And Sandler.

Alexander Goldfarb

a just So few questions.

a will cleaning you just David, a steam who's CURB assets. ahead it up on have to what because October at are sounds will is X. X and can X, SITE look and job get to for who you running October balance on out. look like a and will the what want still to Conor sheet. CURB, doing sense But we're going like just of get SITE great a track, like sense SITE First, give October for spin what guys will look be But sense on running just us full

David Lukes

Alex. Certainly,

going some dual having having on I and executives X role. a dedicated a role think some is what see you October to are

the a Board where a really of is then, can be and both will making has And around has of executive shared and from of that of the I business Board period the interest. a company service involved in role course, The dual have agreement over singular who plans both freely as those about the subject time some both align sure front, the company with couple think that Directors stewardship a quarters. the the more servicing talk for specifics who heavily of the we is next individual that there's bulk emerge. companies

say would have would on specifics, great spin, say wouldn't to announcements to more specific have that now we specific time I leadership. So the I prior expect is you but could a

Conor Fennerty

the will that Alex, be detailed in XX. Form

in that the of of As we effective for detailed date. timing our announcement, of kind end closer is to summer

So we're in all out still that to will X David's but the laid detail months Form XX. out be point,

Alexander Goldfarb

Okay.

Okay. certainly, retail to just good credit and on in very great next the then And given question be environment land. is hand, retail one seems

On lines credit the and environment. we have stagflation expensive other of personal are hand, the sort

either to assets, convenience So you're as differences you ownerships independent a trying across trends have a or as those one-off? running types convenience franchisee retail? small the whether gain of more corporately retailer, run now chain what there any X local understand it's you are Just sort credit truly guys a of credit seen you've that experience experience versus discerning like more running mom-and-pop retailer

David Lukes

is the we and pretty Sure, tenant assets. I roster remember Alex. throughout mean, consistent have unanchored anchored Well, that that

or whether I have There's as benefits one credit perspective, more you're a towards think both. a properties, is from more local. convenience to convenience choice to you purchasing when tilting do

pretty is we're credit, the towards tilted today You'll credit. would remain bit a our expect that And find in may higher. have so. years, tilted rates our rents ability market less XX the roster to I growing probably high little tenants some much reason to for assets on on if XX Curbline that tenant or retention mark-to-market heavily that but from to note local and can is the that that be are you business

think credit between are downturn, be over the because noncredit to better that's is So I simply I the time. balance credit think a focused just important in going term. performance the is But we a over and on company long always

Conor Fennerty

slides. Yes. for Alex, updated top got XX an in on the point, earnings we've CURB that list

we really about mentioned, David XX. feel top good that As

differentiated a and fragmented versus especially The highly peer other point is tenant the group. level, concentration it's

exposure a you've limited us, compelling So on basis. one our part you And in that an relative is think about absolute that's essentially got very really the any sense to thesis to tenant of earnings really this having to very tenant and think the may that part outsized we that's basis. absolute of on one whatever of a or low an an and the it risk NOI, be, compelling relative impact thesis whether a

Operator

And KeyBanc Thomas Todd the Markets. next Capital comes from question with

Todd Thomas

interest coming on And Just with you're first open-air what Look, just there's see you talk private curious a about capital if equity a months at give whether in buyers your capital all of what the us institutional in I'm from the discussions of in lot just retail a shift could in level you're formation centers investors, sense seeing recent center shopping for space? the question. for into you space. and new new been terms of comment and seeing

David Lukes

has at to say, because there I've they're also been has the of I there the component of of the away of just Todd, an XX would towards very Yes, ready bidding a at been for year, that. demand gotten that in depth the the lot of been value-add XQ allocations pool made value-add said think folks. of institutional perspective, act our is a It's buyers think, decisions fairly I tells year, an the the which must a in surprised pricing, the institutions beginning end really on a have me increase assets. on lot deeper that I folks starting There's and institutions. I this of large From various call, from

They active well. is unlevered centers now. properties those sold open-air offices. in very family pretty Todd, And amount of been much the buyers have properties And right local at local cases, I and a tremendous shopping to we've how wealth buyers been then many lastly, to in wealthy have surprised tend private know

regional inbound I a think gets John and from calls local of families. lot

the surprising. about been we capital, private talk has all side So institutional pretty as much as the

Todd Thomas

the in billion $XXX looks asset $X you're do at spin? the right? you're in Okay. pipeline potential CURB under here that the of is about of level you're to then be that on talking for position see anticipating, and it seeing net about, And activity you million pipeline a like contract. Is And that based then the that cash sales

Conor Fennerty

with last point, I'm out Todd, me sorry? that Help

Todd Thomas

the Do CURB position level seeing that do you potential a cash of dispositions in expect of that you're out SITE, see spin? for to at be their you net

Conor Fennerty

both base Yes, I that's and say it's no would case. CURB comments, David and with all that my chance think debt. we And SITE the has to investment there's a in good very preferred cash no

So confidence is amount. I to dollar cash referred minimum our just the contract, a What your to we're it's greater To what's what's very here is CURB in would you, in tell XX, which or on under point, percentage greater being trying a net plan. a business high. meet to needed Page show our position threshold

really contract under the think awarded, that. assets we large of David's plus feel of billion a about $X on point, I are good percentage to very

the at leverage us CURB, high. disposition kind in of environment for would odds And number million proceeds amount higher much site. a significantly significant from cash that very is of And have XX case, have that the $XXX Page so you'd profile plus, in of slides lower or and on you a having a

through. flow significant pretty a there's So

you'll us up Again, expectation I of start to think couple the see out Pages line of entities. through those the our earnings and where is to David's call, think see time dispositions in then And just pick last given flow some the in you'll balance we update XX I and see to of respective point, X the the months. sheets next laid the XX

David Lukes

so back time to future because will Curbline Centers much the it's way nice increasing to leverage are a value is And disposition on have derisking so dispositions why because of liquidity. much our and in the pipeline size. is overall also terms SITE we Which its of tilting circle it of

likely Conor's I better what confidence is and is you're So good. that will case point Page the become the our pretty think seeing base level XX on

Operator

the Kamdem Roland And Morgan next comes from with Stanley. question

Ronald Kamdem

quick ones. Two

talk Just of Maybe like going to sort back on thinking you're acquisitions CURB. look as that changed rates importantly, and shifted of moved? and cap the or you rates to IRRs sort sort have what of can has at all what

David Lukes

Ron, hear acquisitions, can you. the barely on I

for the the You're expectation saying what's return acquisitions?

Ronald Kamdem

yes, exactly. Yes,

On the acquisitions, And shifted that as cap rates expectations. has rates, moved? return on have

David Lukes

mean the impact rates growth, absent and is a the been rate I'll is formats, say comment with occupancy, the Yes. required NOI unique, in going what have Convenience kind top very lower. When What's buying is on growth growth pretty we're other significantly meaning properties, the generate in similar it's of getting line low I or retail a similar to but had. I today, in dispositions you're cap high-quality in think, that mid-Xs. CapEx to that changes consistent

although I growing. rates we the going think, is rents been I And some on So while shop think number. the is unlevered in think, that have is going that The thought in cap have rate, high-quality formats, retail changing reality had higher. rate I impact consistent might with IRR, cap other

rents direction. IRR And and a is so the therefore offset to raising rates raising still positive moving in the is unlevered

Ronald Kamdem

ask, just up following comments question. second if the just CapEx, Great. which was on could And my actually I on then

CapEx of SITE how sort TIs, million in $X we're As numbers profile is example, million million $XX in thinking was commissions. you've CURB, leasing to $X versus about terms million of got of of what XQ, doing? for maintenance, the $X So

figure look to Just that's trying out to on like going X? October what

Conor Fennerty

one the David's most Ron, exciting thesis. point, to or in pointer of full presentations. aspects of this Conor. It's kind We've talked Sure. the the prior it's of about

XX%. running for So industry, percent CapEx general, has in XX% the redevelopment, been to of NOI, including

be would of Our sub-XX%. at view CURB

parts of as one free And when fairly it's the the significant to dramatic play, that's about difference obviously So or flow again, really think at relative to leads compounds a you that versus pure Obviously, public industry a which the a entity most time. of large. enterprise, thesis. a the compelling cash it over

a again, plans. the David's So you point, risk it's straightforward focus tenant, lot you're walls there's ours It's point a lose less roofs a a fairly and necessarily process. of or huge And a it's SITE obsolescence just around or changing not great question. to when

piece of overall. kind of fulcrum aspect the the it's industry again, of most and than it's or numbers So exciting on less our half thesis, the the

Operator

And from the Floris with Point. comes next question Van Compass Dijkum

Floris Gerbrand van Dijkum

Obviously, the some really progress dispositions. on good

us of Are can point? Just Maybe that -- look of to transfer CURB to at going that you Board is going this any on couple you Board? the what to up And going to the questions. like? the SITE a give over SITE on going is Curbline? stay to keep following the more Or Board is specifics

David Lukes

give all. I Floris. that both was the members the a Board that RVI, I that And from company that you but standpoint. stewardship to therefore, consistent decision would some, of shareholder the moved look made companies other from provide there representation needed can Board one say couple a to you leadership. at Sure, not back if

which think one nor the least but directors I minimum entity. roles, decided not the have We at announced growth the to it's assume fair would which that's are of centers, director directors see would Curbline site the likely while to a of majority move helm that taking you on take since at

Floris Gerbrand van Dijkum

who the it parent typically do which it franchisees, in lease? you but your will your franchisee that the credit Great. company as of you tenant largest of lot I that I And in have underwriting Is the Chipotle your who's have also or Curbline is for there, Darden, quality. have a be maybe and another follow-up know have McDonald's you case? largest that think Starbucks, question -- credit on tenants,

Conor Fennerty

those I have Yes, that our XXX% I Chipotle of down path. our or organizations can't but one of XXX% recall Darden I either checked, believe that franchisee any of are corporate. go of Floris,

franchise and back So have center our fact it's I exposure. the think to it's to and transition I top or franchise. had a XX tenants point the it you're would industry are that Oftentimes, pretty just the "mom-and-pop" GSE do that you to shopping issues been exposure. this kind significant franchise of corporate, from the some either corporate sometimes other lists right, there there's on

own of and of the different And across in some particular, concepts. brands hundreds franchisees units

would I it's there's examples franchisee say, some doesn't inferior of know, quality. a it's franchisees. as some So situations something a organization. pretty impressive There it just those as And certain you mean public because are where corporate or credit

entity. the So on it's dependent

local You're looking Is would just it franchise, from our number well point impact an and but as rent mom-and-pop the it has I right point of capitalized. obviously kind you pretty is. We're a can as on a and of growth, that of part mentality and at to the where franchisee values who significant GSE you franchisee I kind examples corporate today are away franchisees underwriting. of expected

Operator

from comes Khanal question next Evercore the And Samir with ISI.

Samir Khanal

the trying tenant had the understand why like has pretty least growth, same-store muted side. just which When much question unchanged, I at considering pretty you're pretty to the at and Curbline one X.X% here. I remain And NOI still wide, I'm look been then but just range X.X%, look the to disruption the is I environment know May. in that from at Conor,

guess I that? So what's driving

Conor Fennerty

it would side call it's my Yes. I in could general, number no coin think prudent That it's I the would the May I issues biggest portfolio. already had dollars of pretty say, significantly. range mean, and year-to-date on piece. either credit had that $X.XX we it Samir, XX, small move denominator, right, conversations a the December JV That's our right? really things. have as really off you're one. Point couple opposed other on still a So portfolio One, of we in we thousand is know, couple May. I reported But to only the take pretty have really would be move hundred There's two, point range based a based the or as of might a forecasting. wide you

We Aid the entire across Rite exposure have entity. no

small year-to-date. would it on no a of credit we've either issues it's but say fact is denominator, I a portfolio really that had function the So

Operator

question from the next Mike JPMorgan. Mueller And with comes

Michael Mueller

quick a some on Just one operating stats.

to there For sales leased that all -- terms mix there? organic side, impact occupancy of in the the and asset sequential changes you on on on Was Or say was side. would QX? the in-line notable anchor any QX from

Conor Fennerty

this transactions it we quarter immaterial. Mike, related Yes, was out call because didn't anything

opposed have and slides, know, impact. one was you it as no whatever there where to quarter-over-quarter, our for This to prior was his buyer offline in are working lease as we're to meaning otherwise, would the on. dispositions, transactions lease David in think alluded certain and space there space organic. rate And holding average have material was I As comments situations on vacant I the impact the called the this but prefer driver been an we've was did from sold, XX%, we're think quarters, quarter. outsized That's

Operator

And the next Green Street. question comes from Paulina Rojas with

Paulina Rojas Schmidt

My higher to you rents, thinking cap way, you question. some market mentioned continued compensated when just rate behind was have about rising? rise, the one about a numbers put in and comment asked. going IRR. Can that Only Hello. But prior rents question

David Lukes

couple lot Hard we're say up XX%? difficult. but consistently for rise months fall would it been rents, higher same in last anticipated lot I can of the than leasing statistically. ago, I particularly the give X behind the a that a of and is bit a it shops, that's when a budgeting quarters, that Is in anecdotes, to dramatic for first X more little put the for meat thing seen years. of be we've of small rolling all we

No. But on a rents. it's shop the pretty consistent it seems like beat

there's what Now a for you've any But as is where think unit just little little space. bit size, in with more higher got vacancy almost just comes any that environment well. competition I in so cost

I months credit we generally been it's still And consistently No, would thought. And can have the outpacing X and choosing so would or say possible best with we been higher the get the we're best not case, consistent the highest credit certainly what dramatic, selecting we've a that think has tenant. are with we I Is but than it the rents underwrote ago. dramatic? it seeing a between rent rent in tenant. And landlords rent

Operator

Tsai question the from with And Jefferies. next comes Linda

Linda Yu Tsai

credit rating What Two transfer to off an when the CURB. want assign you to the was Does do quick credit rating? agencies what spin see the investment-grade And ones. SITE's rating the not, if rating CURB? the

Conor Fennerty

Linda, it's Conor.

year, and close proceeds bonds. the we the we the then withdraw as would commitment the rating. unsecured course pay credit would So our spin use At work time, through to that we prior of mortgage to off all of our

go would investment-grade we to wanted from We So be through the agencies the a down for then would of whatever to. getting new process curb, a Should need go entity. rating we path? it

spin we that would withdraw not expect So prior it we'd transfer effective date. and to the to over rating

Linda Yu Tsai

see? want And agencies what would the to rating

Conor Fennerty

a one. what the It you're versus depends tests, There's on private of number path biggest quantitative. Scale going public. some is qualitative, some

You one million on think eligibility sizing, is for about for a $X too billion that's index issuance. number company a $XXX-plus probably big bond

of go number And paths. a different could so you

and path much But the public scale. biggest that's issuance a the go smaller to placement could You private obviously, size. is side for thing

a exciting to got say before expectation of what's spin, the the but would right? I we've the any Now all about CURB billion-plus that's ingredients leverage capacity, we So $X at have for time the is or but of be assets the It's our an of which not kind public we've quiver. got ingredients place in is I be day issuer. all expectation have issuer our to IG to and public X, on arrow in think important

Linda Yu Tsai

on concentrated? which then rents show mark-to-market in vary how on regions the And you're you Page math, the does XX, your across

Conor Fennerty

ABR about it's mean per region, you're really, the I Yes. talking Linda?

Linda Yu Tsai

Yes. Yes.

Conor Fennerty

restaurant pads modern a pretty seasoned Yes. we're we're of is the meaning consistent recapture QSR. with back kind and pads say I around replacing it generally mark-to-market The would that country. it's getting of biggest we'll it XXXXs seeing call the

we drive-throughs unit with drive-through. or place on other The is any a significant see pretty mark-to-market

would or say and CURB, we this actually you SITE around at you of issue is you in the the argue on large are of to What's our versus get interesting look hold of type of on at X, today, that an perpetuity. ABR kind vintage could investment-grade thesis points out and But It's units are portfolio tenant mark-to-market, kind industry seasoning going kind are large, it's CURB and/or which we that that. again of or the mark-to-market to and the look not them per recapture. and unit CURB. So as spaces the is mark-to-market in held the less an is region I can the SITE is one is back greater going think generally compelling format that the per more if of around SITE, by

seasoning more and would I much of of type. less So, on kind it's regional unit say mark-to-market a and

Operator

next question comes Bin And the Kim with Ki from Truist.

Ki Bin Kim

basically of the What preexisting from out kind CURB's or carved percent site portfolio portfolio? of lot today are a holder

Conor Fennerty

Bin, Ki have number exact the on I hand. Yes. don't

That the say think previously, think the don't just just when cash we we this assets over there site that look out we reliance wanted of I carve number think hand. process down make I limited differently. buying, the mark-to-market any. component not, to what we you decide about, through it's quality plan, time adjacent as over would XX%. on with no on carve-out pieces went access, reliance credit we at out visibility, been sure invest come I point as would to the or consistent retail, to or we've those was is meaning every any brought if And assets

X-plus years. as properties other you, the we we over parties ones units last we third do so would from about I those or just as feel bought tell as good And

Ki Bin Kim

that retail you the for don't of the the center And are and XX%, there that leasing restrictions own? portions from anchors

Conor Fennerty

my exactly point. that's And to No.

things important through. look One of the we

if adjacent I really mean So CURB. restrictions effectively or we or issues drives not there access. what of the properties plan, retail, SITE they're CURB were sales parcels that is and they and reliant SITE is liked. whole traffic and on of part to thesis But pads the and those the that that visibility the have

or was And so that effectively impaired anything that if value the it CURB. in not of included there's SITE, quality

box, So didn't as CURB carve thesis. But real that it result, that estate wanted out. has the are every check if consistent there's we it a some great didn't or we pieces with

Ki Bin Kim

spin-off, sense do million per look G&A, like? on after And But the quarter. $XX of could you a mentioned G&A what that have you

Conor Fennerty

Yes.

to if we huge piece over as think piece for comments provide So flow course CURB got I It's as in months making tell with ours. not think Bin, the free would to couple the and CURB story cash in Ki efficiently efficiency all we would questions, earnings really assume, we off, summer, prior management for you, about story we've of fair a a is an the important a we CapEx, transition a you likely the efficiently, that to bucket around that's that focus more our of than can the our comments I based believe, put over that comments, that operate of consistent G&A sum-of-the-parts SITE. It's Board the of of quarters though, some analysis CURB. from I if load sure quarters rightsized us. last Obviously, extensive of

can think But I we more again, we'll our prior you would efficiently provide over on than comments CURB that of year. that SITE the just course ingredients we today. so if operate efficiently, more point not And the as to

Operator

BTIG. next Gorman the with from Michael And question comes

Michael Gorman

the about CapEx use back Or you and more David, I kind you function comment go some in these recouped sites? alternate and space? did market being maximize to Can offline TI bit re-leasing of go to a sale is potential if fully provide to your a of ahead not space just with in packages holding the of the value. it this of there? little of some just process dispositions at color Is that wanted function the a

David Lukes

choices over last they're In their a use. up there Michael, like properties alternative a other that to it's markets large pretty to a would and a that and want looking willing I'd some have high tenants make And Bed vacancy Sure, as there of wouldn't in space. common what you we to. the very and that's buyers a to that still of rent go a to occupancy. want own it sometimes there's one space, levered the achieve assets adventure more I we and won't I been as high we a dependent to we've say some and with particularly what they buyer we We'll prefer in buyers, the they to TI desire therefore, we lower pay and the to buyer conversation competing you may choose that today, And proceeds they buyer in and will simply rent. But are them Bath current drive, let a are number And able leases. there's property, forces of takes on that have for. space they're time is competitive end retail. selecting. in sell for with a have to when length pretty such available. can those stability because higher way It's markets, less do those happy from go allowing with a that have recent those selling buyers. less But That's want which want to go the tenants, think, sometimes credit with more the rates good down. been path contract execute to on is activity hand credit, by adventure select or flexibility TI pretty them all that say show value and might cap but which some

Operator

question-and-answer And this I would return any does session. the conclude to like closing floor comments. the for management to

David Lukes

to you joining look with We quarter. next you Thank call. forward our for speaking

Operator

attending you Thank today's you. for presentation. Thank

now disconnect your phone lines. may You

SITE Centers (SITC) 30 Apr 242024 Q1 Earnings call transcript