SITE Centers Corp. (NYSE:SITC), an owner of open-air shopping centers in suburban, high household income communities, announced today operating results for the quarter ended September 30, 2022.

"Third quarter results reflect a continuation of year-to-date trends with excellent operational and leasing performance, continued capital recycling and investments in our Convenience thesis, and further strengthening of our balance sheet," commented David R. Lukes, President and Chief Executive Officer. "Our Company and focused portfolio, clustered in the top sub-markets of the country, remains well positioned with minimal near-term debt maturities and a significant Signed but Not Opened (SNO) pipeline."

Results for the Quarter

Third quarter net income attributable to common shareholders was $63.4 million, or $0.30 per diluted share, as compared to net income of $25.3 million, or $0.12 per diluted share, in the year-ago period.
Third quarter operating funds from operations attributable to common shareholders ("Operating FFO" or "OFFO") was $62.8 million, or $0.29 per diluted share, compared to $61.4 million, or $0.29 per diluted share, in the year-ago period. Third quarter net operating income was higher year-over year driven by base rent growth and the net impact of property acquisitions, partially offset by lower management fees from joint ventures and Retail Value Inc. ("RVI"). Third quarter OFFO results included $0.3 million of net revenue at SITE Centers' share related to prior periods primarily from cash basis tenants and related reserve adjustments.

Significant Third Quarter and Recent Activity

Acquired five convenience shopping centers during the quarter for an aggregate price of $31.4 million, including Parkwood Shops (Atlanta, GA) for $8.4 million and a four-property portfolio (Phoenix, AZ) including Chandler Center, Shops at Power and Baseline, Northsight Plaza and Broadway Center for $23.0 million.
Sold 15 shopping centers during the quarter for an aggregate price of $450.6 million ($118.1 million at share), including the Company's 20% interest in the DDRM Joint Venture Pool A, based on a gross asset value of $387.6 million (at 100%).
In September, proceeds from the sale of one wholly-owned property (Columbus, OH) of $35.0 million were used to pay down debt and repurchase 1.6 million of the Company's common shares in open market transactions at an aggregate cost of $20.0 million, or $12.74 per share.
Closed a $360 million refinancing of the DDRM Joint Venture's existing mortgage debt. Proceeds from the DDRM joint venture sales (including Pool A) were subsequently applied to repay a portion of the refinanced facility.
In August, the Company swapped the recently refinanced $200.0 million unsecured term loan to a fixed rate of 3.8% (3.99% GAAP) through the loan's maturity in June 2027.

Key Quarterly Operating Results

Reported an increase of 1.1% in SSNOI on a pro rata basis for the third quarter of 2022, including redevelopment, as compared to the year-ago period. The third quarter of 2021 SSNOI included $0.9 million of net revenue at SITE Centers' share related to 2020 primarily from cash basis tenants, which was a 100 basis point headwind to third quarter 2022 SSNOI growth.
Generated new leasing spreads of 18.6% and renewal leasing spreads of 5.6%, both on a pro rata basis, for the trailing twelve-month period ended September 30, 2022 and new leasing spreads of 10.8% and renewal leasing spreads of 7.1%, both on a pro rata basis, for the third quarter of 2022.
Reported a leased rate of 95.0% at September 30, 2022 on a pro rata basis, compared to 94.4% on a pro rata basis at June 30, 2022 and 92.3% on a pro rata basis at September 30, 2021. The sequential and year-over-year increase was primarily driven by small-shop (less than 10,000 square feet) leasing activity with a 520 basis point increase on a pro rata basis from September 30, 2021.
As of September 30, 2022, the SNO spread was 350 basis points, representing $21.7 million of annualized base rent on a pro rata basis as store openings were offset by new leasing activity.
Annualized base rent per occupied square foot on a pro rata basis was $19.11 at September 30, 2022, compared to $18.44 at September 30, 2021.

Guidance

The Company has updated its 2022 full-year guidance for net income attributable to common shareholders and Operating FFO per share to include the impact of the third quarter operating results. Impairment charges, gains on sale of assets, transaction and debt extinguishment costs are excluded from guidance. The guidance update is as follows:

Reconciliation of Net Income Attributable to Common Shareholders to FFO and Operating FFO estimates:

	FY 2022E (prior)	FY 2022E (revised)
	Per Share – Diluted	Per Share – Diluted
Net income attributable to Common Shareholders	$0.36 – $0.41	$0.64 – $0.66
Depreciation and amortization of real estate	0.89 – 0.94	0.92 - 0.94
Equity in net (income) of JVs	(0.01) – 0.00	(0.12)
JVs' FFO	0.05 – 0.07	0.04 – 0.05
Impairment of real estate (reported actual)	0.01	0.01
Gain on sale and change in control of interests (reported actual)	(0.21)	(0.21)
Gain on disposition of real estate (reported actual)	(0.02)	(0.15)
FFO (NAREIT)	$1.12 – $1.15	$1.15 – $1.16
Debt extinguishment, transaction and other (reported actual)	0.01	0.01
Operating FFO	$1.13 – $1.16	$1.16 – $1.17

Other key assumptions for 2022 full-year guidance include:

	FY 2022E (prior)	FY 2022E (revised)
Joint Venture fee income	$8.0 – $10.0 million	$10.0 million
RVI fee income	$0.5 – $1.0 million	$1.0 million
SSNOI (1)	(0.25)% – 1.00%	(0.25)% – 1.00%
SSNOI – Adjusted for 2021 Uncollectible Revenue Impact (2)	3.50% – 4.75%	3.50% – 4.75%

(1)		Including redevelopment and approximately $13 million included in Uncollectible Revenue, primarily related to rent received from cash basis tenants, reported in 2021 related to prior periods, which is an approximately 380 basis point headwind to 2022 SSNOI growth.
(2)		Including redevelopment and excluding revenue impact of approximately $13 million included in Uncollectible Revenue, primarily related to rent received from cash basis tenants, reported in 2021 related to prior periods.

About SITE Centers Corp.

SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC. Additional information about the Company is available at www.sitecenters.com. To be included in the Company's e-mail distributions for press releases and other investor news, please click here.

Conference Call and Supplemental Information

The Company will hold its quarterly conference call today at 8:30 a.m. Eastern Time. To participate with access to the slide presentation, please visit the Investor Relations portion of SITE's website, ir.sitecenters.com, or for audio only, dial 888-317-6003 (U.S.), 866-284-3684 (Canada) or 412-317-6061 (international) using pass code 4603833 at least ten minutes prior to the scheduled start of the call. The call will also be webcast and available in a listen-only mode on SITE Centers' website at ir.sitecenters.com. If you are unable to participate during the live call, a replay of the conference call will also be available at ir.sitecenters.com for further review. You may also access the telephone replay by dialing 877-344-7529 (U.S.), 855-669-9658 (Canada) or 412-317-0088 (international) using passcode 8477474 through November 25, 2022. Copies of the Company's supplemental package and earnings slide presentation are available on the Company's website.

Non-GAAP Measures

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

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

In calculating the expected range for or amount of net (loss) income attributable to common shareholders to estimate projected FFO and Operating FFO for future periods, the Company does not include a projection of gain and losses from the disposition of real estate property, potential impairments and reserves of real estate property and related investments, debt extinguishment costs, certain transaction costs or certain fee income. Other real estate companies may calculate expected FFO and Operating FFO in a different manner.

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

The Company presents NOI information herein on a same store basis or "SSNOI." The Company defines SSNOI as property revenues less property-related expenses, which exclude straight-line rental income (including reimbursements) and expenses, lease termination income, management fee expense, fair market value of leases and expense recovery adjustments. SSNOI includes assets owned in comparable periods (15 months for quarter comparisons). In addition, SSNOI is presented including activity associated with development and major redevelopment. SSNOI excludes all non-property and corporate level revenue and expenses. Other real estate companies may calculate NOI and SSNOI in a different manner. The Company believes SSNOI at its effective ownership interest provides investors with additional information regarding the operating performances of comparable assets because it excludes certain non-cash and non-comparable items as noted above.

FFO, Operating FFO, NOI and SSNOI do not represent cash generated from operating activities in accordance with GAAP, are not necessarily indicative of cash available to fund cash needs and should not be considered as alternatives to net income computed in accordance with GAAP, as indicators of the Company's operating performance or as alternatives to cash flow as a measure of liquidity. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures have been provided herein. Reconciliation of the 2022 SSNOI projected growth target to the most directly comparable GAAP financial measure is not provided because the Company is unable to provide such reconciliation without unreasonable effort.

Safe Harbor

SITE Centers Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, local conditions such as the supply of, and demand for, retail real estate space in the area; the impact of e-commerce; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant and the impact of any such event on rental income from other tenants and our properties; redevelopment and construction activities may not achieve a desired return on investment; our ability to buy or sell assets on commercially reasonable terms; our ability to complete acquisitions or dispositions of assets under contract; our ability to secure equity or debt financing on commercially acceptable terms or at all; impairment charges; our ability to enter into definitive agreements with regard to our financing and joint venture arrangements and the Company's ability to satisfy conditions to the completion of these arrangements; valuation and risks relating to our joint venture investments; the termination of any joint venture arrangements or arrangements to manage real property; property damage, expenses related thereto and other business and economic consequences (including the potential loss of rental revenues) resulting from extreme weather conditions or natural disasters in locations where we own properties, and the ability to estimate accurately the amounts thereof; sufficiency and timing of any insurance recovery payments related to damages from extreme weather conditions or natural disasters; any change in strategy; the impact of pandemics (including the COVID-19 pandemic) and other public health crises; our ability to maintain REIT status; and the finalization of the financial statements for the period ended September 30, 2022. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company's most recent reports on Forms 10-K and 10-Q. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

SITE Centers Corp.
Income Statement: Consolidated Interests
	in thousands, except per share
		3Q22	3Q21	9M22	9M21
	Revenues:
	Rental income (1)	$135,123	$120,569	$401,210	$366,689
	Other property revenues	1,067	514	3,164	1,095
		136,190	121,083	404,374	367,784
	Expenses:
	Operating and maintenance	22,314	18,562	66,528	58,200
	Real estate taxes	20,423	19,160	61,230	58,359
		42,737	37,722	127,758	116,559

	Net operating income	93,453	83,361	276,616	251,225

	Other income (expense):
	Fee income (2)	2,653	13,358	9,471	30,264
	Interest expense	(20,139)	(19,170)	(57,306)	(57,701)
	Depreciation and amortization	(51,179)	(44,669)	(152,564)	(137,446)
	General and administrative (3)	(10,799)	(11,727)	(34,403)	(41,547)
	Other expense, net	(501)	(524)	(2,152)	(1,214)
	Impairment charges	0	0	(2,536)	(7,270)
	Income before earnings from JVs and other	13,488	20,629	37,126	36,311

	Equity in net income of JVs	25,918	1,824	27,468	11,059
	Gain on sale and change in control of interests	228	35	45,554	13,943
	Gain on disposition of real estate, net	26,837	5,871	31,292	6,069
	Tax expense	(258)	(202)	(863)	(1,057)
	Net income	66,213	28,157	140,577	66,325
	Non-controlling interests	(18)	(93)	(55)	(384)
	Net income SITE Centers	66,195	28,064	140,522	65,941
	Write-off of preferred share original issuance costs	0	0	0	(5,156)
	Preferred dividends	(2,789)	(2,789)	(8,367)	(10,867)
	Net income Common Shareholders	$63,406	$25,275	$132,155	$49,918

	Weighted average shares – Basic – EPS	213,846	211,048	213,278	206,918
	Assumed conversion of diluted securities	482	1,143	582	1,156
	Weighted average shares – Basic & Diluted – EPS	214,328	212,191	213,860	208,074

	Earnings per common share – Basic	$0.30	$0.12	$0.62	$0.24
	Earnings per common share – Diluted	$0.30	$0.12	$0.62	$0.24

(1)	Rental income:
	Minimum rents	$89,686	$79,256	$261,849	$236,362
	Ground lease minimum rents	6,733	6,547	20,191	19,407
	Straight-line rent, net	921	687	2,454	456
	Amortization of (above)/below-market rent, net	1,189	897	3,407	2,771
	Percentage and overage rent	797	1,016	3,582	3,349
	Recoveries	33,214	29,441	99,811	90,518
	Uncollectible revenue	(381)	1,083	1,889	8,268
	Ancillary and other rental income	1,619	1,586	4,416	4,427
	Lease termination fees	1,345	56	3,611	1,131

(2)	Fee income:
	JV and other fees	2,528	3,846	8,616	10,817
	RVI fees	125	4,012	470	13,355
	RVI disposition fees	0	5,500	385	6,092

(3)	Mark-to-market adjustment (PRSUs)	0	0	0	(5,589)

SITE Centers Corp.
Reconciliation: Net Income to FFO and Operating FFO
and Other Financial Information
	in thousands, except per share
		3Q22	3Q21	9M22	9M21
	Net income attributable to Common Shareholders	$63,406	$25,275	$132,155	$49,918
	Depreciation and amortization of real estate	49,925	43,283	148,828	133,279
	Equity in net income of JVs	(25,918)	(1,824)	(27,468)	(11,059)
	JVs' FFO	1,271	5,659	9,469	17,065
	Non-controlling interests	18	17	55	49
	Impairment of real estate	0	0	2,536	7,270
	Gain on sale and change in control of interests	(228)	(35)	(45,554)	(13,943)
	Gain on disposition of real estate, net	(26,837)	(5,871)	(31,292)	(6,069)
	FFO attributable to Common Shareholders	$61,637	$66,504	$188,729	$176,510
	RVI disposition fees	0	(5,500)	(385)	(6,092)
	Mark-to-market adjustment (PRSUs)	0	0	0	5,589
	Debt extinguishment, transaction, net	341	356	1,643	722
	Joint ventures – debt extinguishment and other, net	855	1	858	32
	Write-off of preferred share original issuance costs	0	0	0	5,156
	Total non-operating items, net	1,196	(5,143)	2,116	5,407
	Operating FFO attributable to Common Shareholders	$62,833	$61,361	$190,845	$181,917

	Weighted average shares & units – Basic: FFO & OFFO	213,987	211,189	213,419	207,059
	Assumed conversion of dilutive securities	341	1,143	441	1,156
	Weighted average shares & units – Diluted: FFO & OFFO	214,328	212,332	213,860	208,215

	FFO per share – Basic	$0.29	$0.31	$0.88	$0.85
	FFO per share – Diluted	$0.29	$0.31	$0.88	$0.85
	Operating FFO per share – Basic	$0.29	$0.29	$0.89	$0.88
	Operating FFO per share – Diluted	$0.29	$0.29	$0.89	$0.87
	Common stock dividends declared, per share	$0.13	$0.12	$0.39	$0.35

	Capital expenditures (SITE Centers share):
	Redevelopment costs (major and tactical)	4,606	6,143	16,451	12,698
	Maintenance capital expenditures	6,480	3,153	16,467	9,449
	Tenant allowances and landlord work	13,739	9,763	35,340	27,540
	Leasing commissions	1,642	1,838	6,010	4,406
	Construction administrative costs (capitalized)	939	805	3,085	2,220

	Certain non-cash items (SITE Centers share):
	Straight-line rent	906	727	2,611	559
	Straight-line fixed CAM	114	149	325	416
	Amortization of (above)/below-market rent, net	1,287	993	3,683	3,082
	Straight-line ground rent expense	(34)	(25)	(100)	(97)
	Debt fair value and loan cost amortization	(1,340)	(1,261)	(3,854)	(3,717)
	Capitalized interest expense	341	200	808	462
	Stock compensation expense	(1,694)	(1,947)	(5,135)	(11,323)
	Non-real estate depreciation expense	(1,256)	(1,319)	(3,742)	(3,971)

SITE Centers Corp.
Balance Sheet: Consolidated Interests
	$ in thousands
		At Period End
		3Q22	4Q21
	Assets:
	Land	$1,095,662	$1,011,401
	Buildings	3,848,821	3,624,164
	Fixtures and tenant improvements	587,962	556,056
		5,532,445	5,191,621
	Depreciation	(1,672,242)	(1,571,569)
		3,860,203	3,620,052
	Construction in progress and land	59,812	47,260
	Real estate, net	3,920,015	3,667,312

	Investments in and advances to JVs	46,001	64,626
	Cash	20,883	41,807
	Restricted cash	3,119	1,445
	Receivables and straight-line (1)	59,446	61,382
	Intangible assets, net (2)	116,348	113,106
	Other assets, net	31,159	17,373
	Total Assets	4,196,971	3,967,051

	Liabilities and Equity:
	Revolving credit facilities	80,000	0
	Unsecured debt	1,453,384	1,451,768
	Unsecured term loan	198,437	99,810
	Secured debt	90,235	125,799
		1,822,056	1,677,377
	Dividends payable	30,528	28,243
	Other liabilities (3)	226,952	218,779
	Total Liabilities	2,079,536	1,924,399

	Preferred shares	175,000	175,000
	Common shares	21,437	21,129
	Paid-in capital	5,974,001	5,934,166
	Distributions in excess of net income	(4,044,178)	(4,092,783)
	Deferred compensation	4,865	4,695
	Accumulative comprehensive income	9,782	0
	Common shares in treasury at cost	(29,266)	(5,349)
	Non-controlling interests	5,794	5,794
	Total Equity	2,117,435	2,042,652

	Total Liabilities and Equity	$4,196,971	$3,967,051

(1)	SL rents (including fixed CAM), net	$34,082	$31,526

(2)	Operating lease right of use assets	17,795	19,047

(3)	Operating lease liabilities	37,339	38,491
	Below-market leases, net	63,267	59,690

SITE Centers Corp.
Reconciliation of Net Income Attributable to SITE to Same Store NOI
$ in thousands
	3Q22	3Q21	3Q22	3Q21
	SITE Centers at 100%		At SITE Centers Share (Non-GAAP)
GAAP Reconciliation:
Net income attributable to SITE Centers	$66,195	$28,064	$66,195	$28,064
Fee income	(2,653)	(13,358)	(2,653)	(13,358)
Interest expense	20,139	19,170	20,139	19,170
Depreciation and amortization	51,179	44,669	51,179	44,669
General and administrative	10,799	11,727	10,799	11,727
Other expense, net	501	524	501	524
Equity in net income of joint ventures	(25,918)	(1,824)	(25,918)	(1,824)
Tax expense	258	202	258	202
Gain on sale and change in control of interests	(228)	(35)	(228)	(35)
Gain on disposition of real estate, net	(26,837)	(5,871)	(26,837)	(5,871)
Income from non-controlling interests	18	93	18	93
Consolidated NOI, net of non-controlling interests	93,453	83,361	93,453	83,361

Net income from unconsolidated joint ventures	105,872	4,863	21,272	1,756
Interest expense	8,241	10,980	1,831	2,706
Depreciation and amortization	9,450	16,605	2,156	3,805
Impairment charges	9,010	0	1,802	0
Other expense, net	6,120	2,832	1,286	700
(Gain) loss on disposition of real estate, net	(119,813)	455	(23,963)	91
Unconsolidated NOI	$18,880	$35,735	4,384	9,058

Total Consolidated + Unconsolidated NOI			97,837	92,419
Less: Non-Same Store NOI adjustments			(6,079)	(1,683)
Total SSNOI including redevelopment			91,758	90,736
Less: Redevelopment Same Store NOI adjustments			(863)	(759)
Total SSNOI excluding redevelopment			$90,895	$89,977

SSNOI % Change including redevelopment			1.1%
SSNOI % Change excluding redevelopment			1.0%

SITE Centers Corp.
Reconciliation of Net Income Attributable to SITE to Same Store NOI
$ in thousands
	9M22	9M21	9M22	9M21
	SITE Centers at 100%		At SITE Centers Share (Non-GAAP)
GAAP Reconciliation:
Net income attributable to SITE Centers	$140,522	$65,941	$140,522	$65,941
Fee income	(9,471)	(30,264)	(9,471)	(30,264)
Interest expense	57,306	57,701	57,306	57,701
Depreciation and amortization	152,564	137,446	152,564	137,446
General and administrative	34,403	41,547	34,403	41,547
Other expense, net	2,152	1,214	2,152	1,214
Impairment charges	2,536	7,270	2,536	7,270
Equity in net income of joint ventures	(27,468)	(11,059)	(27,468)	(11,059)
Tax expense	863	1,057	863	1,057
Gain on sale and change in control of interests	(45,554)	(13,943)	(45,554)	(13,943)
Gain on disposition of real estate, net	(31,292)	(6,069)	(31,292)	(6,069)
Income from non-controlling interests	55	384	55	384
Consolidated NOI, net of non-controlling interests	276,616	251,225	276,616	251,225

Net income from unconsolidated joint ventures	105,833	53,525	21,887	9,943
Interest expense	26,560	32,898	5,982	8,113
Depreciation and amortization	37,123	50,309	8,304	11,480
Impairment charges	17,550	0	3,510	0
Other expense, net	11,114	8,806	2,468	2,186
Gain on disposition of real estate, net	(121,505)	(36,132)	(24,254)	(4,387)
Unconsolidated NOI	$76,675	$109,406	17,897	27,335

Total Consolidated + Unconsolidated NOI			294,513	278,560
Less: Non-Same Store NOI adjustments			(19,604)	(4,637)
Total SSNOI including redevelopment			274,909	273,923
Less: Redevelopment Same Store NOI adjustments			(2,618)	(2,211)
Total SSNOI excluding redevelopment			$272,291	$271,712

SSNOI % Change including redevelopment			0.4%
SSNOI % Change excluding redevelopment			0.2%

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SITE Centers Reports Third Quarter 2022 Operating Results