SITC - Earnings call transcript Q2 2024

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Operator

Good day, and welcome to the SITE Centers Second Quarter 2024 Operating Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Stephanie Ruys de Perez, Vice President of Capital Markets. Please go ahead.

Stephanie de Perez

Thank you. to second 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, subject at statements www.sitecenters.com aware distributed the These quarterly forward-looking of press our intended supplement during website materially addition to today's today are posted risks be support are financial meaning presentation forward-looking federal certain have forward-looking differ remarks our this within slide and may which to the and prepared we that release statements statements. uncertainties, laws. of securities statements may actual to and contain call. Please results our from

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

the we of this addition, operating FFO, Descriptions and Officer, In measures financial time, be non-GAAP our in investor measures non-GAAP my to Chief today's these it call, financial financial introduce directly and will David on supplement operating Executive presentation. At pleasure quarterly including today's to and Lukes. can be same-store most income. reconciliation comparable found net is GAAP FFO discussing measures

David Lukes

called goals the for of few been our leasing to retired of into astounding. of SITE closed the continued the company asset we purchased acquisitions we my growth over along dispositions spreads significant Convenience announced nearly accomplishments maximizing for the on Centers Centers portfolio. unique within $XX efforts we've of through of the with morning. for has dual organization flexibility and growing strategic from Curbline new thanking XX% portfolio entire from The SITE these and our a focused $X leasing as mark results Good SITE the path and and Centers today debt The million I'd additional the dedication, Curbline progress the spin-off NOI portfolio over showcased in Each trailing organic prepare value We made start transactions past new through by planned on XX-month reported growth of Properties. Notably, the we progress billion their quarters. quarter. colleagues like all tremendous of and and at the or Curbline thoughtful portfolio management. execution

march we October, community expected the investment time spent and the two to As have main heard consistently closer spin-off in date with questions. we've considerable

First, of what and we of time what the of Centers And the for big plan do does all genesis at maximizing second, an like is it how spin-off Curbline will the on strategy? the represent? how And SITE opportunity look stakeholders. value

of acquisitions it turning with the Retention the the performance and as Curbline, ago began we in class. witnessed high, strong with asset in financial So extremely over detail briefly then about CapEx investing over years strong second questions, and with Curbline low. diversified I'll for was the the and year. Starting the small-format we five was second results about of start load and Convenience the credit outlook was to quarter talk half those greater assets to and staffing operations Conor two conclude talk before

that ground performance facts phone could The sector. mobile we property traditional of underwrite utilize the knowledge a and that to by this allowed new and opportunities. Importantly, tenant underwriting a utilization tool market became provide the and customer emerged as on boots into supplemented real analytics window of us data estate data during geolocation small-format sophisticated period hard identify, our also around investment

pandemic the outcomes through became transitioned notable. we years, two As

growth. valuable. also topline In significantly other to capital higher cash First, itself while to cash flow higher the expensive the down efficiency capital capital of income the helped became flow conversion business costs became more increasingly property of offset important rental as words, generating and compounding

tenants certainly communities. To the to in expected three led market factoring for all the own XXX Convenience real combined We shortage portfolio These demand NOI strong today communities access sector that with ICSC. the Convenience landlord due and X% suburban estate when inflation efficiency in numerous suburban steadily topline a this. same-store growth for general of that tenants Convenience-oriented those as the States. are belts market week to have capture for since X-plus of feet compared average rent ask square what flexible data a real is X% of to anchor. This kept population United addressable greater now million for retention than in well. the highest In years when capital properties only with customers have of increased in is with estate fact, and seeking total we have is Properties. words, work is throughout our point, leases under increase portfolio growth own the resulting according higher has where tenant we this can the opportunity is arguably renewing with most assets with inventory in shorter as of represents years next capital of mandates traditional Despite duration attributes, of from growing higher high-quality remarkably to quarter little Curbline quality and there us to and customers, a about one growth. the Lease business up portfolio an other Curbline in investors transactions the rents U.S. renewals the Second, of Convenience

These limited million Curbline CapEx including characteristics, economics needs. believe about wholly-owned or by highlighted portfolio of As to access of compelling X.X Properties NOI. the end, million Convenience visibility, and real common we of excellent included square share feet generate quarter expected assets XX $XX estate

be completed October to capitalized and on Curb cash. expect this of no spin-off of to continue with million the $XXX We year, X debt with

good sale has Centers' been which substantial of to since for to-date our we expect SITE SITE the a segue a anchored last unmatched disposition from in consistent with no facilitate properties is sheet Given retain the used longer Curb an from activity investment portfolio balance now quarter, Curbline. commentary and proceeds to preferred Centers, of

SITE the I'll As after result, a spin. a Centers the for spend moment strategy expected on

Friday, we have As July $X.X X.X%. of over closed just million dispositions year-to-date sales wholly-owned property billion of cap with total a at X, rate of $XXX of XXXX, since last blended closed

over blended the negotiation $X of Friday, under executed company estate of nonbinding mid-Xs. the contract rate As real with additional has or a in in billion currently LOIs either at contract, cap

the of to fourth these pre-spin, we Although transactions expect and may others quarter fall close some will some in out. close

and itself is SITE assets result, to the can and the spin markets stakeholders. with of a in expect the and contain strong post-spin say Centers the that a not for will diversified of sales, we remain date. What including flexible tenant today the to we time we portfolio outcomes a to and as position eventual at variety a near are to we the spin-off disclosure open our on path creating As portfolio portfolio, Centers major in SITE quantify update value

In we terms strong of remains Leasing our market remains potential elevated, interest. pool replacement buyers and portfolio market remain strong, and believe active costs momentum remains interest growing the of liquid and buyer and they're rents for of deep, an supporting open-air factors are activity, it shopping centers.

our historical and and an to as including and appropriate. expect resources company we departments the way departments, to purpose plan those will More a In pursue their Agreement, management public clarity further and continue private G&A act and will signals from as facilitate SITE allow under possible. of the Form in intact leasing asset market with each signals to to accounting, agreement staffing, execute allow among on leasing the teams, to and post Service knowledge, valuation asset Other Shifting portfolio its within will by legal both on Shared to shared agreement and Centers to spin business current plan. with It's considering sales, companies have Centers legal and flexibility to along the addition on listen the as focus each XX. to and provided IT is and will of on our to elegant business and utilized staff and management transition orderly both with dedicated be service an team detail keep Curbline little remain own be others. The accounting maintain property friction leadership. and SITE this the talent respect

of the partner's included this another interest our we Moving Convenience with quarter quarter Hill, of five in portion rate CapEx. in of where million million with our significant the XX% were $XX the lease third over assets Curb including We $XXX property acquisitions; additional subject to focus be closed in diligence. a renewals total second Average spin-off. of of North contract, Properties our and second Meadowmont of drive acquiring Chapel investments acquisitions and expected under to properties Convenience acquisitions awarded $XXX,XXX or acquired Meadowmont, excluding to over without the in Convenience growth million, to-date average bumps on household Village weighted incomes lease at $XX in for share completion quarter highlighting have Carolina. The over is

down rate points materially portfolio of substantial and operations, sequentially that debt less volume an and along steady up execution and sheet opportunities a of the from forward, the compelling returns unique average was outstanding from part overall with opportunity Despite no generate almost As has key stakeholders. to leasing Convenience expanding strength XX%. plenty retailers markets, Ending And the of competing the of leasing I Curbline relative is the the subsector, concepts quarterly suburban demand the smaller noted, balance of encouraged have be itself and space. for in opportunity basis have to team, into elevated with and leased with the remain lease despite in availability. Leasing by including again, both new liquidity, going to tenants to XXX assets our for service Properties growth expected was sequentially, rate we continues existing grow. same combined size large room our and with sale to the due

the new as a new LensCrafters straight-line economics almost terms disclosure Recent of we number grow deals Panda Comcast. out first-to-portfolio tenants, Cava, In and leasing added Fargo, activity we quarter, rent UPS Store, The continue and include by XX-month improve including period. trailing this in velocity new to activity, leasing renewal breaking Curbline. Leasing Express, portfolio, of the and and supplement for spreads, national this spreads recurring XX% for highlighted Wells

thank, for position across with to turn their to for worked turning and extremely have again, Curbline want the I'll all these and There is I everyone to it the individuals their Conor. contributions. And and Conor, over company tirelessly success, of Centers grateful quarters. to short of work over I'm SITE call SITE past no that, both at few who Before teams for

Conor Fennerty

with I'll heading concluding operations including into to with our moving Thanks, expected sheet before updates XXXX pieces David. start earnings outlook, spin-off second the and quarter balance date.

budget due other higher-than-forecast lease of ahead a smaller variances. and were positive fees to better-than-expected number results of operations, quarter Second including termination

In volume smaller terms we of at elevated, volatile, base. With remain David's operations, leasing depth point, denominator, smaller economics quarter and leasing SITE metrics leasing encouraged the higher and and both to demand operating this for despite Curb was pipeline of activity overall based for by space. the on remain remain end, though asset a sequentially

As note only David to important units with spreads exclusions supplement acquisition. leasing more generation noted, of vacant in activity to all the the is and include we did space this months, time out at first for Curbline including XX have leasing been spreads and that those that vacant Curb's the break units, related quarter. than It

represented space other rate change one an Phoenix vintage the mark-to-market of remainder. lease expected which the which Curb the backfill was in at two the an user the of the have identified with vacant restaurant impacted blended the Meadowmont half in XX% and sequential deals. Village, for accounted and new Additionally, by acquisition recapture Orlando on pads pads, about negatively Both of

and that along with transaction sheets they assets our on outlook commitment exclusively to mortgage have first and to announced other October focused plans. the financing in X. And recent their for date need based an publicly the are SITE business positioned of and Moving Curbline extremely October, Convenience SITE expected traded we spin-off the with form to scale on REIT excited with XXXX; execute balance both activity, on we

though the have and dispositions. updated transaction portfolio result projections spin-off Curb SITE of provide and planned expected total acquisitions portfolios, provide guidance reflect half the to for first a We a formal and we which for XXXX XXXX As activity, did been significant NOI FFO not range. did

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

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

other of be $XX and about be JV in quarter. to to items, we terms expect In fees about continue the million to line million third $X.XX G&A

almost Given we that cash elevated balance at the hand, for the down $X the on On that will approximately repay as point, a year use $XX remainder the figure the unsecured quarter, significant cash bonds come repurchased gain though resulting income second million remains the of hand on in at quarter, a discount, over to under debt. just of in million we $XXX,XXX. of interest

income in the the quarter be quarter driver is Finally, included transaction sales, volume, statement. second NOI quarterly assets the the of sold asset timing expected to of detailed million particularly as FFO the $XX.X in largest and of from

balance leverage, cash was Xx debt-to-EBITDA hand over billion. quarter the $X.X sheet; of at was just terms on over end, to Moving in and

to outstanding structures of for on on on including to mortgage in projected the the middle conditions, earnings can to loan. all SITE expected both the sometime notes and the term the to Details Curb expect third hand used slides. retire along facility, unsecured satisfaction continue of and unsecured be found of outstanding proceeds the the to capital We Centers SITE close be XX with quarter, debt, cash closing with page unsecured subject

company and the the at is of -- the of time expected Properties, million time Curbline For this have at no cash. to debt $XXX spin

preferred longer universe the investment on Properties. Curbline differentiate providing from the focus allow platform Centers. SITE scaling David a As no to to acquiring while expected buyer highly to sheet have will This in is balance liquid Convenience Curbline noted, its largely itself private capital

and Finally, we that, it and prior third with rates expect balance SITE additional forma for spin-off, quarter Curbline David. transactions. And of to to I'll both sheets pro portfolios, details provide the back run to to-date the turn on

David Lukes

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

Operator

Kesten The Instructions] comes question Dori first Fargo. from [Operator with Wells

Dori Kesten

remind us Form for you is what those the timing Can XX?

David Lukes

Sure, out Dori. it expect would come I September. would in sometime

Dori Kesten

Okay.

under level compares assets with that seeing and of to or how intent the contract of you and of us so bidders of give type saw what initial sense your And competition you're letter currently, just a the sales? can the you

David Lukes

or Sure. they've third are been private buyers the are emerged have funds of fit usually X Then the lot I the been There's include I have spread family unlevered at institutions. the buyers. have the which bidders, open-air a kind kind of think John, would traditional families, months three traditional say of then kind that there's private equity that into have been over generally raised that local what, the and looking categories. the past, X of offices capital properties. And group investors, and that

what bulk can all of the three tent on seen of from the changed. don't explains those think the between ] or X is the which it's the three of I X make most last So those, most groups one pricing months. bidding what think looking probably like and in up quite bidding that wide has depending really we've And [ I Dori And be active. been

Dori Kesten

under did LOI say Okay. in mid-X% is And or the what's right? you contract

David Lukes

That's correct.

Dori Kesten

And to to the spend the about ]? been do long-term of as still last the or bit percentage with? closer has of space then XX%. it's regarding explain size retention I being X% incoming [ the that I guess, that, it rate last, than NOI it you can what Is tenants? is few a guess, it Is higher quarters, in a cap little the

Conor Fennerty

the would of I Yeah, small. just I a caution noted, dominator of just small, is things. is pool Dori, the as function couple it's a And

overall one remaining function negatively. been volume just you given high, your you excuse the things just and up, of of demand to coming But is have have anchored of To could that a the just so deal tell we've term long and plans leasing Similar historical the increased just below a sub-XX% buying. or point, in that move -- increased and to is positively lot we're that over So just number there's trending last you our the out would confidence property relative incredibly I couple of XX% have quarters SITE of activity. been the just COVID, portfolios tipped standards. has solely type kind

Operator

Citi. question Craig comes Our next from Mailman with

Craig Mailman

you Good build one you fully just morning. you that the kind kind -- vacate some about commencements. portfolio NOI level guys of out basis timing asset portfolio that with of think of that here, the noted of in Curb you and put we numbers occupancy versus guys Conor, some as just to occupancy almost the a and as growing bought XXX curious, as I'm deals kind kind can together on stabilized mixing one plan kind of move smaller in continue points. vacancy variability the deals it's of of

David Lukes

square it's for morning, tenants. David. think And historical asset in true and forth. missed. not general, in from enough There's I so through I've if see look as highly is remains this data, demand that the leased then But even Conor our good and class. Craig, asset recessions footage the right Convenience now a Sure, at we can I'll pandemics class what and fill start

buying that So best way is, property. And anchored vacancy. have renewals buying, now have that to mark-to-market buying than But what managed growing opportunity. mark-to-market upside. a means then, to be occupancy buying assets. for most CapEx. may be expect under and We're I property traditional as able we're find that capturing the and buying part, we with to vacancy and the where stabilized Every stabilized some that to was we're business low we're properties would And a volatility less is we're we're really expect describe not the a

Conor Fennerty

rate of in upside acquired, consistent is been But XX-plus years XX% David's last we've the our what one mean I point, general, point our vacancy Meadowmont's David's might running lease confidence in to To Craig, XX%, XX%. excluding and average think with leased, XX% Maybe portfolio there's on and vacated, north of be high. between I Yeah. small recently is probably opportunities. which very that's our one this that

Craig Mailman

kind that significant from something on a yield lease-up stabilized? owner buying difference versus Is fully risk a local taking or there any maybe of

David Lukes

mean, I for that And sale many assets there's really. just Not not vacancy. have honestly

for is vacancy. and that for might property this find competition of and strong You shop the being honestly, sellers investors from there. paid are type here one But local pretty

there vacancy, show going So rate. a the is to if in it's up cap

for think the at I we to So models upside figure when have risk-adjusted look that out is what's tenants extra the our risk-adjusted return a we're of buying return, that in country and just a scale, high-income better economics run buying, lot paying renewal volume than think growth. existing you about the trying we that the a properties best there's more generate to not vacancy and neighborhoods. if vacancy in assets much Especially the high-quality for at

I strong average and a think we're what hopefully big strong So occupancy, weighted looking shorter lease mark-to-market but credit, is term. for a

Craig Mailman

sense. the do minimum you're what of interested I that today. issues you breakout food, at of less of given because Coast fast going amount point are wage building? don't West know fair That in you portfolio of that guys a fast a makes are But the probably on kind XX% casual then guys And California have you that. guys this is

Conor Fennerty

high-quality geographies certain on said to we're lag creating are a There portfolio. might focused where diversified I others. your point we really think, Craig, times

is I confidence might whether XX, be, XX, country, top it whatever high-income XX, the in our throughout top metros top high. think the

in or to headwinds certain outside having just a goal, There's might grow So portfolio. you're some well-diversified there no geographies our right, internally avoid mandate of California. be

Craig Mailman

last of a SITE, to one But of I quick out one. XX that's think someone without isn't kind of or be a for in, company as change structure yet. And friction the the from Form then having wants fairly control costs kind going platform is more it -- the about rest essentially just pay to come assets to final know other make salable the we for just it liquidating? buy of value a to clean

David Lukes

should I options would it a think the cleanliness say of has potential And high. Centers be that very of outcomes. Yeah, different I for lot SITE

a Board And everything the what as I outcomes and those think that we it trying the team do we're to are. it's so can pretty simple structure management to to business. are open-minded

Operator

Todd Our from next with Markets. comes question Thomas Capital KeyBanc

Todd Thomas

leasing lower if high breakout, curious David, activity strong XXX%. First bit for turnover next there rent Convenience -- and capitalize growth about retention But of better see a question, with It's portfolio. pretty CapEx. just quarter, the with the in years little almost over a maybe I'm in you scenario lease significant appreciate on to higher pro the renewals new and a could spreads merchandising Curb you a segment. of in forma talked better the opportunity more where the couple mark-to-market we near-term business see opportunities Curb the

David Lukes

Good morning Todd.

that's think I unlikely.

you I making pretty when shops tenants look business think at like the tenant group been we buy local like there's the in operations. time. a even sure in tenant like strength a long We feel high that the of well-diversified the feel we We credit. for if it's we're roster, have credit tenants,

properties think the along businesses, re-tenanting. opposed successful to as risk-adjusted class buying successful rents return do I their with and or increasing asset have the and effectively finding profitability this increased redeveloping to tenants with more for

think properties tenants. the very already usually convenient somewhat unnecessary that I front that's because have attracted row, buying best we're

I so whole don't of just tenant think it's to do recycling. a lot necessary And

Conor Fennerty

the Dori's tie at over It not rents properties. that tenant kind of our next re-merchandise asset -- these base the a question, any for to years, underpinning the business. to or [ that three We're point, ] so the maturity. require is Hawaii percentage change re-tenant over you about that for or us kind to is into of And forecast Todd, same-store assumptions that's I to don't turn of why CapEx mean of in think is renewables low this roster pushing and the significantly

Todd Thomas

retail. segment capital efficiency then I guess, a sticking bit, this the like within that of And with little Okay.

some history assets you've since how the operations through think that but little later a been a cycle, for would five the years. traditional you types you might if to relatively it's by so, just go exposure more about the were portfolio through about certainly and tenants, risk perform mentioned of through a I potential go of be, of cycle? you these at have about the pandemic X the of where I'm thinking broader economy the gone a and are food bit that looked years portfolio of we cycle cycle, we've were XX% of if to said high tenants, think a the restaurant five You occupied or how than curious you national of And through sort while a little economic

Conor Fennerty

five activity. on Conor. of the just years a how than day assets perform further this a back it's Todd, been much buying we've point, for great reference recession. portfolio And gone think years. these was that. your carve-out five We've portfolio during will To is The transactions for proxy we

and NOI is property right? what's any if tenants last carve-out risk last back on shops. occupancy, generally, tenants. the we're similar reception right, and rest I XX% the versus rates including the major this to for are the portfolio than the risk real That's operate They're corridors anchor locals. Generally, look portfolio, to had I'd and years that the locals for you fascinating the solving The industry, the this. But David's we occupancy property, lag, through GDP associated national. are little think growth credit is the type not the two-quarter higher of thing line. Curbline of a and to And and which lease higher back on not right? credit GFC, actually in unique you're to But is you vehicular are generally, counterintuitive your point is in of lose point, XX traditional to the point will correlated shops estate any We to growth, meaning

end range. to that very property the the the at rest of the that If broader of of kind high look you formats, peer at how or group compares that's retail

lot feel place. I put like any we we're recession, again, of there well-positioned. this If there's mitigants but So lose of really portfolio a in risk portfolio is a kind occupancy, will like

solve to like local they've point, think the there's just but? event a the there's are I we us it's acquisitions of I look restaurant, a thing cycles, risk the we that and The help credit. know David's last portfolio in those of Some lot of it But been mitigants if that how to particularly where for through structural a of do don't kind be. for Others are solving in question, the any is local type. for seasoning, property your if whatever might cushion system. again, answers how shock

Operator

question Khanal next Our comes from ISI. Samir with Evercore

Samir Khanal

call. I you picking XX-year I billion. $X of the days it, disposition since in the up terms the know happen call side, that talked mean, guess any the seen pipeline on what the of just of about last I interest yield conversations let's done or given you last, have rates about have over XX the

gauge can how the to spin? little much you trying on a potentially sell Just before bit more

David Lukes

of X it's mean to the much that in and interesting. of the we past I interest gotten the months Have potentially the and see today. over a in last the what that rates or you all current of things more is under the if that rate think happened have offices, down. I mean, and last in high dedicated buyers very more where look past pandemic. A I centers. or been been been wouldn't they Good in of LOI. temperament investors, think I a I open-air lot see calls I unlevered to collections said going awarded pipeline what They I under buyers so there been pretty of see that's months But have at mean really how morning family look not notable change estate weeks? of due you're could the really the during I look buyers, be, last X Samir. local from They a about we leverage. really couple we've thinking contract one is have don't don't the the analysis has No. at about have I level -- lot the shopping talked real

And making with lately. so I'm difference it's been what sure not we've a huge selling

Samir Khanal

I got just acquisitions, don't that? Curbline you're rate Okay, the the you Convenience on the cap I been if guess items it. the What's know cap buying? on And rate disclosed on

Conor Fennerty

just X.X% cash. material round not Well, X.X%, kind in a we've a we've of GAAP There's difference Samir. around numbers, and from been perspective. around GAAP been But

Operator

Our Compass van Floris Dijkum with question next from comes Point.

Floris Gerbrand van Dijkum

into, to leverage. the is basically that Curbline which cash going market. have You with a to fall to and the you double almost have which small go have REITs Curbline to cap are lots from trap and the back typically -- going you zero of before you're have NOI avoiding guys leverage is they

your going what and you extent local a information, have were to ability to And the push your that's higher? in And -- rents XX% to this think things. the me, mean, particularly of guess. Number is makes So I to you that I concerned -- between terms to OCR -- is some besides level of significant just ceiling one, push how at to OCR where where unique how national I story in a that much to, you're other of a question have -- what can in I you -- a are local does difference obviously, local? extent you -- tenants? there around there but a couple questions, tenants? your and be for the

Conor Fennerty

probably I'll handle cost which our What's some funny. one, happen looking that mean, portfolio of fascinating OCRs. Curbline let I you local ratios is of of restaurants, think part the process. was one as at yesterday intuitively the be data lowest credit occupancy that is higher of the David in our actually I it's to Floris.

my I to question excuse Todd go So I Look, response pressure or to my guess back on Todd, to if it's sales answer dip, me. to to going put OCRs.

a of I terms this you, you'd is I sales look I So to etcetera. factor if healthy we David, tell And respond cushion. in GDP don't one differently? at just think many underwriting. know But upon it's growth, there's business any pretty correlated growth, would

David Lukes

spaces, format interesting I'll you Yeah, thing when by I the is what XX XX. that really only Floris, that small add have find

only more. And max square local that up Miami on And that where have close positive that's There's occupancy that you has rent tenant things an be the number are and extent has really of to are can the in the you it's happened the of a a tenant can unit. simply a occupy significantly pay to going space in tenants an if their can kind we to times. now, pay have sales and might So expiring, get particularly a whereas along that at you more has X,XXX nationals foot of able It's national happening that cost right, side, ratio customer a when Curbline. businesses well certain might so credit big more. much high right renewal, hundreds

tenants So when to out recycling rent market we tenant run those are some been of bandwidth and the doing local have pay more higher. rents

raise these are and their think tenants to other keeps able hand, because that able business along be with the rents up we're well sales time. most at do to of inflation inflation, this I type of the same keep On the -- simply with pretty with up

focused recycling it, there some I I very we're the dedicated guess hand, we're rents really think like feel and I be tenants to when we on to CapEx nature low of of renewals other But will being want on push business. the So pretty high.

tenants for track have long trying been the in that property we're that to buy proven a we a find and record. have time So

Floris Gerbrand van Dijkum

And last over What is that that today? five what renewal the is percentage average years?

David Lukes

Yeah.

XXX% it last quarter, mid-XXs. So for nationals. This it's for nationals, was

locals, been it's For about mid-XXs.

anywhere blended years, last Floris. the it's between called on So quarter, and XX%, seven XX% the depending over --

Floris Gerbrand van Dijkum

Wow.

Okay.

acquisitions to you debt your would build strategy you're to debt -- with. you you guess of be more up a assets make cash? deploy higher markets unsecured that of to some not you, and mortgage of unsecured have or going the as any on that's you in million relying towards going then and begin I And Conor, select Curb guys forward. pool terms tap more of Is view for $XXX want but for you question Another that

Conor Fennerty

lot it's about to and a time is we've question. got great a think nice of And Floris, the part it. flexibility

relationships the of the unsecured like back really We've the great look maintained kind versa. it's and market. vice where providers we been Centers, markets years because quiver to also all LifeCos when attractive. closed secure have arrows other that an have We you with If seven historically we for think borrower. to and the at SITE it's last like mortgage unsecured are have times relationships in those there and We

lot I fully which flexibility with pool, provides though, a strategy unencumbered it's day optionality. and a on have fair balance think point, we So to To assume operate sheet we'll your of a X, Curb. similar

just we the I way, Centers see at just of of how for likely you said, not of risk reiterating again, you'll little it's definitely seven somewhat the is properties, SITE unsecured has more that a tilt bit But both. Curb given operated the of last years. market So size the what the efficient and think

Operator

Stanley. comes Our with next from question Ronald Kamdem Morgan

Ronald Kamdem

Just sources of and a couple One quick uses. on the ones.

XQ, $XXX I expected at of sales, think, $XXX in acquisitions expected well. think I'm of XQ I looking in million as million

is sort contract, that under that -- of on how are is forth. in already speculative the the front, much of Just acquisition all and those pipeline so

Conor Fennerty

morning Ron. Good

it of none point, plus speculative. million That prior confident feel to spin-off $XXX we we to awarded date. closing figure in us. So what David's To is is the have

Ronald Kamdem

million could Because on activity is million, sort rate it acquisition going about? in to acquisitions, post-spin $XXX And of the look, you follow-up sort sort going million you Great. the $XXX been way do $XXX just the think transaction fair than of able basis on started to plus of you're for right you was sort process do quarter, to this my that of plus be when about be say it sort Is us run has to an or think then now if of to annually. minus anticipated of that greater -- annual to initially? even the

David Lukes

Ron, about Yeah. you're activity, on -- or the surprised buy. have the on I sales the on transaction meaning assume talking been we

Ronald Kamdem

I buy doing have more on as I the but the been Both. guys well. talking more was think sales, on you

David Lukes

Yeah.

sales I had could number terms a we in were of interest. we've of a pricing. mean, -- degree high we our sell I mentioned but of And confidence [indiscernible] think exceeded has activity I level for high-quality of we people far the unprepared the think expectations in assets, that retrospect that

that's much front. But the challenge acquisition just a has transactions team, that side, with our can bit months, On there's pretty feel we confident much we at actually support million buy million awarded and how allocate a much little X a that's $XXX can statements we to of previous time been it's time this how business, in a about given feel last confident of towards so the only we allocation sold that the can been day look because you in the if acquisitions year. us, been you pretty $XXX the

$XXX be think awarded well to-date. million And we a I pretty would what fits to have that that So been with us quarter.

our So it pretty confidence feels is like high. that run level rate,

Operator

comes question Linda with next Our from Tsai Jefferies.

Linda Yu Tsai

term average XX the what What's lease weighted balancing do as Curb's centers? ideal and risk see you for current And for reward?

Conor Fennerty

It's five now, Hey like years Linda, it's think of which it's as Conor. about right X.X I XX. June years

David Lukes

going assets really is portfolio ideal consistently. such of growth the ideal, X.X X really because an a be buying that's between in-place would no to when terms I say range. I there's ] in that thing Linda, hard that as and It's Walt you're [ years to see in stabilized mean leases, have not

Conor Fennerty

is very digits, few XX, [ years are be no variance leases double that an might have think have to that to dissimilar anchor property. tenants meaning mark-to-market. ] XX, that generally are asset I is XX the are not Walt them control there there The variance for out

might liquidity to you always impact growth couple doesn't plus term or option so of growth mid X XX-year minus near-term. there, a to have but or a the rental in blend the of drive a fresh David's then ability kind or tenants and in And point, years, it the

Linda Yu Tsai

the And there of local the any that other pay run rents. monitoring tenants metrics that? besides higher out to might you're to assess OCR, comment Are bandwidth then

David Lukes

certainly better. we Yeah. The we but customer at tools to we size the tenant can one of -- visits. And to like primary helpful cell when we of when phone a historical has would and do traffic understand basket data. been we don't trends That's think in know that look specifically, understanding been the renew can

Linda Yu Tsai

billion pricing look Got under it. $X under any then And contract in different ago? or the mid-Xs, would LOI months that XX the

Conor Fennerty

to a contract Just under said there is billion clarify, LOI. order or we $X over

David Lukes

a speculate. the Linda. That's looked different I a good good It's That's a to But really question. question. pricing don't ago. know, year hard

Linda Yu Tsai

you but well, HHI, kind square targeting $XXX $XXX,XXX in visibility, about Centers, terms I ICSC you're it like earlier then was Okay. fits think how you of that your good feet with for -- were do -- you from think qualifies the portfolio? that And much said like talking Convenience what of good economics million of for

David Lukes

deals I these XX%. on. for been underwritten and we've offers would what years, and past we around look tracking five as how all say, have transactions of It's the at been many we we've made

hurdles intact. feels a is thresholds you to XX% pretty still And standards, like that growth pass million say, opportunity. well, And the real of so take if $XXX as this and all story that of and growth why underwriting us a that is confidence is proxy and substantial a level XX% our

Operator

from comes with Goldfarb next question Our Alexander Sandler. Piper

Alexander Goldfarb

here. Two questions

story. the gauge the from lease-up on efficient like given the some it points metrics this basis just Like efficiency story XXX a platform on a replacement don't overall sounds assets you really material better, the know not that Does conversation -- should efficient than necessarily this but a don't more an that it's -- all that said about positives or mark-to-market of be it how you magnitude And assessment? points do portfolio? provide is efficiency? Convenience SITE platform can story. -- Curb should It's Is a all managing I that First, there or that and I fair corporate is if how Centers. is, efficiency more that we overall some know many efficiency, but be this

Conor Fennerty

a is couple as fully I it's think you we Conor. where a for SITE should answer etcetera. publicly is boot and is of use once mentality couple The efficient of points we answer IT, departmentalized kind at of platform. yes. a spin-off of of which around from kind real whole point, other longer years. looking said be on as kind that up can startup-type it's growth, Floris' efficient of we're invested, efficiencies to short grow other The more much also Curb as and Alex, you're host ability perspectives of right, some benefits proxy you are bolt good then think a There run very to But to what the other the is first from

in of efficiencies a yes. the there's So is a lot the There's of short business, lot optionality. answer but

Alexander Goldfarb

going to huge Convenience And the is sound like for the assets. you're question doesn't for a that pool demand -- competitive Okay. the second similar just assets then facing but traditional your it

rather in to seeing the on the base? -- describing, going seeing amount same you buyer what trying So you it the mean of Convenience because or understand when interest are what's assets from buyer I assets? Just traditional sell in you're play Convenience be that than that to assets you're hey, desirable, would the the say, you're really mid-Xs selling, private buy should buying yield a the for buyers, like stabilized going X.X%. to assets you're they'd seem equal but a highly it's maybe

David Lukes

buying do a bidders we close diligence morning, same assets. to can have mean properties. there it's David. is after going that the situation we're has not I there of have and just happen give quickly. every national, -- the been to I say impression involved been couple Convenience has lot We want and a good benefits. competition don't of I One Alex, would we're quickly unlevered,

is So by markets. preferred class. private very buyer secondary it within we've local sellers, been a for wealth It's owned but asset think I a desirable these historically

but few sure. definitely competitive are mean these And types competitive. of rates properties, side show definitely to of so we're Convenience usually up cap one institutions looking on for the I the at it's

Operator

Rojas comes question Street. Green from with next Our Paulina

Paulina Rojas Schmidt

X.X%. year-to-date? And growth how morning. have guidance the property Curbline the range a little wide. you And same X.X% to portfolio doing is a And feels for of Good

guidance. behind that So I'm ] [ intrigued about the string factors

Conor Fennerty

Conor. It's

to some script our small there in hundred either volatility, comments my You're couple dollars range wide, is could thousand be it's right, a a denominator, of so more any look, of now. issues the range way. very haven't we had the running is higher to to-date. the confidence that We're in midpoint of end our high it. credit right But kind And variability,

headlines think about anchor bankruptcy you of properties. some the major have So the impacted

has my of response high. or been To any earlier had comment We haven't retention very those.

have So a to really of about normal. we wider little that denominator good range is than a it. pushing just bit us small having a us function really or allowing It's feel

Paulina Rojas Schmidt

Okay. NOI And X% to the us for you is then the I your Curbline of components at more than grow behind different same-property plus expectation Can remind think X%. -- X%?

Conor Fennerty

Sure.

gets So occupancy mark-to-market kind probably low and you pushes as gets time, you that's then and credit just over Xs higher low the get of generally, math But of options the bumps some plus loss to growth portfolio. occupancy to right, national Xs. Those to high-Xs mid- kind components behind some to change in could it.

Paulina Rojas Schmidt

times are And acquiring assets. regarding stable mentioned occupancy, have of I a you couple that know you

climb rate or to lease from are? see we higher where rate to fair occupancy expect or where we it you further So lease then from is current is assume -- shouldn't your gains today that it is

Conor Fennerty

the -- to we commensurate see We higher. be expect

to this leased. now. we -- a lower XX% think that of earlier, of I range comment kind portfolio, I end So it made run the generally, can We're XX% right at think

to push pipeline SNO sized that back higher. decent pretty a have We

So some today. is the portfolio occupancy yeah, there in upside

Operator

comes Kim from question with last Our Ki Bin Truist.

Ki Bin Kim

Just a couple of follow-ups.

at, any GAAP acquisitions X.X% include the lease the On rate upside? cap does looking mark-to-market that that on you're

Conor Fennerty

Yes.

and cash GAAP, and it's is skinny. rent, [ and no $XX anchored with GAAP got So Bin, Ki XXX buying probably [ ] going the ]. is this bet the $X cap you've yield, cash not It's the pretty an market rate yield gap the you $X. a would. X.X But to in you're I that intended, yield like $X property my point, becomes that a between pun

build term, at tenant looking mix And for Curb optimal this somewhat profile there Okay. longer that of credit an mix you you're is or for as portfolio?

David Lukes

I but yes. credit, mix, tilted towards heavily not think necessarily We've tenant credit.

comes shop to comes of growth local tenants, risk. going of it's credit that and that the growth act a balancing measuring think but also with some lot a from I with be

important right portfolio and than roster but time, the more as the So we tenant is larger, the credit in component I over and settle actual the noncredit we'll mix. larger get ratio think credit between

Conor Fennerty

Yeah.

we things Ki portfolio, this about most Bin One concept. the the of this like in

page low our it of our tenant concentration and is If XX incredibly at you look to slides, continue improve. should

years of stores, this kind And that seen credit if dramatic anchored credit you mitigants you close NOI transition impact other one of of these so that earnings file kind the is you've and no are in where of this response there they have portfolio tenants year, portfolios. a to sudden [indiscernible] earlier for bankruptcy to major certain and risk, see or of kind my massive on for

one strongest got a our massive credit the to one most of diversification you've and fact in of So that mitigants from David's of is view, the this tenant point, the that the portfolio. perspective aspects compelling is,

Ki Bin Kim

one. quick the was that in you quarter? cap rate What last And assets the for the sold just

Conor Fennerty

we asset sold me out? The of end help sorry, quarter,

Ki Bin Kim

in Yeah, XQ. cap What was dispositions rate? the

Conor Fennerty

blended if come variance the the the for quarter-over-quarter, I I Ki that, back the on date think it you to been was the but math to I a it's X.X% Bin. can ranges $X.X I think just or X.XX%. ranges on And And billion a do has NOI think X.X%. X.X%,

Operator

Feng from ] Morgan. comes next [ with Our question J.P. Jung

Unknown Analyst

lease for gap points guess the to, what think -- would do today? what compared be occupied you to basis the portfolio Curbline think, I normal I the would you XXX

Conor Fennerty

is I points. basis Jung. my question, XXX to good closer a it's mean Yeah, guess

aren't -- the reimagining dramatic use have the It's last projects One retail or you're there just of about property like redevelopment been the space couple used things repurposing some of the not in to type is of words releasing. years. or we

XX another odds is with the XX, David's a timeline to point, the pretty shop short. shop so to by of And backfill or that's

versus will So or that types. gap lead SNO to tighter SNO pipeline a property other

XXX points. numbers, basis I it's about round bet So

Unknown Analyst

I to, it. guess, or portfolio options guess, compared differ And Curb I traditional SITE Got the centers? anchored do it's stand-alone more lease in how the

Conor Fennerty

or mean It's a X.X. the a anchored than is options, initial and A an X.X I local national have no portfolio. in don't. different lease XX-year XX no They a but Curb in portfolio might term. still

I least get in any meaning an fact answered think earlier So difference, except with years for tenants dramatically at really at. see or the there's XX this be number the response, no I going can't of with that control that not you're for options lower, to just $X the will in you lease XX

are XXX% properties. most to going on options generally or point, And to back at end. we You're two leased buying see seasoned the David's

number of the could and one making So on XXXX probably really itself that past skinny them hand. is control tenants count have

Operator

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

David Lukes

call. for much very you joining our Thank

Operator

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

You may now disconnect.

SITE Centers (SITC) 30 Jul 242024 Q2 Earnings call transcript