SITE Centers Reports Third Quarter 2020 Operating Results

Rhea-AI Summary

SITE Centers Corp. (NYSE: SITC) reported Q3 2020 results, showing a net income of $2.2 million ($0.01 per diluted share), down from $15.2 million ($0.08 per diluted share) year-over-year, primarily due to COVID-19 impacts. Operating FFO was $43.5 million ($0.23 per diluted share), decreasing from $55.4 million ($0.30 per diluted share). The leased rate stood at 91.9%, down from 92.4% in Q2 2020. The company closed its BRE DDR IV joint venture transaction, enhancing liquidity. Currently, 98% of tenants are operational, with rent collection improving steadily.

Positive

• Closed BRE DDR IV transaction, enhancing liquidity with $8.9 million cash.
• Leased rate at 91.9%, with new leasing spreads of 12.9%.
• Improved tenant rent collection rates, with 90% for October 2020.

Negative

• Net income decreased by 85% year-over-year due to COVID-19.
• Operating FFO dropped by 21.5% compared to the previous year.
• Same store net operating income decreased by 17.8% on a pro rata basis.

BEACHWOOD, Ohio--(BUSINESS WIRE)--SITE Centers Corp. (NYSE: SITC) today announced operating results for the quarter ended September 30, 2020.

“We made continued progress in terms of store openings and collections in the third quarter and we are encouraged by improving leasing activity and volume,” commented David R. Lukes, President and Chief Executive Officer. “With the closing of the first of the two Blackstone joint venture transactions earlier this month, we added to our liquidity position and the Company remains well positioned with no material near-term maturities and no material capital commitments.”

Results for the Quarter

• Third quarter net income attributable to common shareholders was $2.2 million, or $0.01 per diluted share, as compared to net income of $15.2 million, or $0.08 per diluted share, in the year-ago period. The period-over-period decrease in net income was primarily attributable to the impact of the COVID-19 pandemic partially offset by the change in the BRE preferred investment reserve.
• Third quarter operating funds from operations attributable to common shareholders (“Operating FFO” or “OFFO”) was $43.5 million, or $0.23 per diluted share, compared to $55.4 million, or $0.30 per diluted share, in the year-ago period.

Significant Third Quarter and Recent Activity

• On October 15, 2020, an affiliate of Blackstone transferred its common equity interest in BRE DDR IV to the Company for consideration of $1.00 and the Company’s preferred investment in the BRE DDR IV joint venture was redeemed, thereby leaving the Company as the sole owner of (i) the seven properties owned by the BRE DDR IV joint venture, including Echelon Village Plaza and Larkin’s Corner, in which the Company did not previously have a material economic interest, and (ii) BRE DDR IV’s restricted and unrestricted cash ($8.9 million in the aggregate as of October 15, 2020). These seven properties are subject to existing mortgage loans which had an aggregate outstanding principal balance of $146.6 million as of October 15, 2020. Additional details are provided in the “BRE DDR Joint Ventures” section of this release.
• Sold one unconsolidated shopping center and a wholly-owned land parcel for an aggregate sales price of $2.9 million or $0.7 million at the Company’s share.
• As previously disclosed, on September 14, 2020, the Company eliminated the executive position of Chief Operating Officer resulting in a separation charge of $1.7 million. The charge is excluded from third quarter and full year OFFO.

Key Quarterly Operating Results

• Reported a decrease of 17.8% in same store net operating income on a pro rata basis for the third quarter of 2020, excluding redevelopment primarily due to the impact of the COVID-19 pandemic. Including redevelopment, same store net operating income for the third quarter of 2020 decreased by 16.5%.
• Generated new leasing spreads of 12.9% and renewal leasing spreads of 5.5%, both on a pro rata basis, for the quarter and new leasing spreads of 17.7% and renewal leasing spreads of 4.1%, both on a pro rata basis, for the trailing twelve-month period.
• Reported a leased rate of 91.9% at September 30, 2020 on a pro rata basis, compared to 92.4% on a pro rata basis at June 30, 2020 and 94.2% at September 30, 2019. The sequential decline was primarily related to the bankruptcy of Ascena and Pier 1 with the Company’s anchored leased rate increasing 40 basis points sequentially due to new leasing activity.
• As of September 30, 2020, the signed but not opened spread was 220 basis points representing $10.9 million of annualized base rent on a pro rata basis scheduled to commence.
• Annualized base rent per occupied square foot on a pro rata basis was $18.53 at September 30, 2020, compared to $18.04 at September 30, 2019.

COVID-19 Update

• Reopened SITE Centers’ headquarters in Cleveland, Ohio and select regional offices in order to allow employees to return on a voluntary basis. The Company continues to offer remote working to respond to the needs of our employees.
• COVID-19 pandemic response remains at the forefront of our property operations objectives. As tenants ramped up their in-store operations, SITE Centers worked to facilitate curbside and online purchase pick-up, continued with the Company’s social media and property level promotional programs, and worked to promote social distancing and CDC protocols among shopping center patrons through signage and other measures. Our property operations teams continued to maintain heightened cleaning and disinfection procedures in accordance with CDC guidelines and worked diligently to promote that vendor partners’ operations in accordance with SITE’s Vendor COVID Operating Protocol.
• As of October 23, 2020, all of the Company’s properties remain open and operational with 98% of tenants, at the Company’s share and based on average base rents, open for business. This compares to an open rate low of 45% as of April 5, 2020 and 92% as of July 24, 2020.
• As of October 23, 2020, the Company’s tenants had paid approximately 70% of second quarter rent and 84% of third quarter rent. The payment rates for the Company’s tenants are reflected as follows:

		Second Quarter 2020		July 2020		August 2020		September 2020		October 2020
As of October 23, 2020		70%		80%		82%		90%		90%
As of July 24, 2020		64%		71%		N/A		N/A		N/A

• As of October 23, 2020, the Company has reached deferral arrangements with tenants representing 16% of second quarter 2020 rents and 8% of third quarter 2020 rents.

BRE DDR Joint Ventures

On July 14, 2020, the Company entered into agreements with affiliates of Blackstone to terminate the BRE DDR III and BRE DDR IV joint ventures. As described above, the BRE DDR IV transaction closed on October 15, 2020. BRE DDR III is expected to close by year end. At the closing of the BRE DDR III transaction, the Company will transfer its common and preferred equity interests in BRE DDR III to an affiliate of Blackstone in exchange for (i) BRE DDR III’s interests in White Oak Village and Midtowne Park, (ii) 50% of the unrestricted cash then held by BRE DDR III (BRE DDR III’s unrestricted cash balance was $18.5 million as of September 30, 2020), and (iii) $1.9 million in cash. At closing, the White Oak Village and Midtowne Park properties will continue to be subject to existing mortgage loans which had an aggregate outstanding principal balance of $50.0 million as of September 30, 2020. This transaction is expected to close in the fourth quarter of 2020 as soon as all applicable conditions have been satisfied including receipt of lender consents.

BRE DDR IV Acquisition Properties (Closed October 15, 2020)

Center

MSA

Location

ST

SITE Own %

JV

Owned GLA

Total GLA

ABR PSF

Concourse Village

Miami-Fort Lauderdale-West Palm Beach, FL

Jupiter

FL

5%

BREDDR IV

134

134

$17.40

Millenia Crossing

Orlando-Kissimmee-Sanford, FL

Orlando

FL

5%

BREDDR IV

100

100

$26.30

Echelon Village Plaza

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

Voorhees

NJ

0%

BREDDR IV

89

89

$20.58

The Hub

New York-Newark-Jersey City, NY-NJ-PA

Hempstead

NY

5%

BREDDR IV

249

249

$12.42

Southmont Plaza

Allentown-Bethlehem-Easton, PA-NJ

Easton

PA

5%

BREDDR IV

251

386

$16.25

Ashbridge Square

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

Downingtown

PA

5%

BREDDR IV

386

386

$9.47

Larkin's Corner

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

Boothwyn

PA

0%

BREDDR IV

225

225

$9.78

BRE DDR III Acquisition Properties

Center

MSA

Location

ST

SITE Own %

JV

Owned GLA

Total GLA

ABR PSF

Midtowne Park

Greenville-Anderson-Mauldin, SC

Anderson

SC

5%

BREDDR III

167

174

$9.83

White Oak Village

Richmond, VA

Richmond

VA

5%

BREDDR III

432

956

$15.99

About SITE Centers Corp.

SITE Centers is an owner and manager of open-air shopping centers that provide a highly-compelling shopping experience and merchandise mix for retail partners and consumers. 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 https://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 9120571 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’ web site 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 10148482 through November 27, 2020. 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, including reserve adjustments of preferred equity interests, (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.

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 both including and excluding 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.

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, the impact of the COVID-19 pandemic on the Company’s ability to manage its properties and finance its operations and on tenants’ ability to operate their businesses, generate sales and meet their financial obligations, including the obligation to pay ongoing and deferred rents; the Company’s ability to pay dividends; 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 and preferred equity investments; the termination of any joint venture arrangements or arrangements to manage real property and the ability to satisfy conditions of such terminations; 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 and our ability to maintain REIT status; and the finalization of the financial statements for the period ended September 30, 2020. 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 Form 10-K and Form 10-Q. The impacts of the COVID-19 pandemic may also exacerbate the risks described therein, any of which could have a material effect on the Company. 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
			3Q20		3Q19		9M20		9M19
	Revenues:
	Rental income (1)		$95,874		$108,060		$306,482		$332,555
	Other property revenues		70		759		1,804		3,404
	Business interruption income		0		885		0		885
			95,944		109,704		308,286		336,844
	Expenses:
	Operating and maintenance		15,775		16,738		50,774		54,322
	Real estate taxes		16,542		16,721		51,547		52,262
			32,317		33,459		102,321		106,584
	Net operating income		63,627		76,245		205,965		230,260
	Other income (expense):
	Fee income (2)		9,610		12,821		34,149		45,360
	Interest income		3,445		4,616		10,480		13,658
	Interest expense		(18,089)		(21,160)		(58,487)		(63,973)
	Depreciation and amortization		(41,148)		(40,732)		(125,014)		(123,400)
	General and administrative (3)		(13,664)		(15,304)		(38,542)		(44,348)
	Other expense, net (4)		(186)		(322)		(18,207)		(254)
	Impairment charges		0		(2,750)		0		(3,370)
	Income before earnings from JVs and other		3,595		13,414		10,344		53,933
	Equity in net income of JVs		250		2,612		908		5,446
	Adjustment (reserve) of preferred equity interests		3,542		(6,373)		(19,393)		(12,106)
	Gain on sale of joint venture interest		82		0		45,635		0
	Gain on disposition of real estate, net		218		14,497		993		31,087
	Tax expense		(284)		(249)		(859)		(827)
	Net income		7,403		23,901		37,628		77,533
	Non-controlling interests		(116)		(271)		(621)		(836)
	Net income SITE Centers		7,287		23,630		37,007		76,697
	Preferred dividends		(5,133)		(8,382)		(15,399)		(25,148)
	Net income Common Shareholders		$2,154		$15,248		$21,608		$51,549
	Weighted average shares – Basic – EPS		193,203		180,567		193,366		180,555
	Assumed conversion of diluted securities		162		940		0		1,064
	Weighted average shares – Basic & Diluted – EPS		193,365		181,507		193,366		181,619
	Earnings per common share – Basic		$0.01		$0.08		$0.11		$0.28
	Earnings per common share – Diluted		$0.01		$0.08		$0.11		$0.28
(1)	Rental income:
	Minimum rents		$76,735		$75,293		$228,416		$225,131
	Ground lease minimum rents		5,418		5,018		16,319		15,059
	Recoveries		25,833		26,018		80,371		81,466
	Uncollectible revenue		(14,188)		(505)		(27,918)		(178)
	Percentage and overage rent		806		553		1,770		2,839
	Ancillary and other rental income		1,194		1,295		4,260		5,233
	Lease termination fees		76		388		3,264		3,005
(2)	Fee Income:
	JV and other fees		4,037		6,783		15,416		21,905
	RVI fees		4,717		5,492		16,111		18,495
	RVI disposition fees		856		546		2,622		3,160
	RVI refinancing fee		0		0		0		1,800
(3)	Mark-to-market adjustment (PRSUs)		(289)		(1,418)		1,617		(2,818)
	Executive separation charge		(1,650)		0		(1,650)		0
(4)	Other income (expense), net
	Transaction and other expense, net		(186)		0		(1,021)		164
	Debt extinguishment costs, net		0		(322)		(17,186)		(418)

SITE Centers Corp.
Reconciliation: Net Income to FFO and Operating FFO
and Other Financial Information
	in thousands, except per share
			3Q20		3Q19		9M20		9M19
	Net income attributable to Common Shareholders		$2,154		$15,248		$21,608		$51,549
	Depreciation and amortization of real estate		39,812		39,329		120,889		118,924
	Equity in net income of JVs		(250)		(2,612)		(908)		(5,446)
	JVs' FFO		4,388		8,498		14,529		24,169
	Non-controlling interests		0		28		28		84
	Impairment of real estate		0		2,750		0		3,370
	(Adjustment) reserve of preferred equity interests		(3,542)		6,373		19,393		12,106
	Gain on sale of joint venture interest		(82)		0		(45,635)		0
	Gain on disposition of real estate, net		(218)		(14,497)		(993)		(31,087)
	FFO attributable to Common Shareholders		$42,262		$55,117		$128,911		$173,669
	RVI disposition and refinancing fees		(856)		(546)		(2,622)		(4,960)
	Mark-to-market adjustment (PRSUs)		289		1,418		(1,617)		2,818
	Hurricane property income, net		0		(885)		0		(885)
	Executive separation charge		1,650		0		1,650		0
	Debt extinguishment, transaction, net		186		322		18,207		443
	Joint ventures - debt extinguishment, other		0		(52)		42		(6)
	Total non-operating items, net		1,269		257		15,660		(2,590)
	Operating FFO attributable to Common Shareholders		$43,531		$55,374		$144,571		$171,079
	Weighted average shares & units – Basic: FFO & OFFO		193,343		180,708		193,507		180,697
	Assumed conversion of dilutive securities		21		940		0		1,064
	Weighted average shares & units – Diluted: FFO & OFFO		193,364		181,648		193,507		181,761
	FFO per share – Basic		$0.22		$0.31		$0.67		$0.96
	FFO per share – Diluted		$0.22		$0.30		$0.67		$0.96
	Operating FFO per share – Basic		$0.23		$0.31		$0.75		$0.95
	Operating FFO per share – Diluted		$0.23		$0.30		$0.75		$0.94
	Common stock dividends declared, per share		$0.00		$0.20		$0.20		$0.60
	Capital expenditures (SITE Centers share):
	Development and redevelopment costs		3,289		20,207		17,431		41,594
	Maintenance capital expenditures		3,394		3,846		10,989		9,673
	Tenant allowances and landlord work		2,655		8,600		18,246		23,606
	Leasing commissions		786		1,542		2,412		3,625
	Construction administrative costs (capitalized)		715		924		2,195		2,484
	Certain non-cash items (SITE Centers share):
	Straight-line rent		739		566		(390)		1398
	Straight-line fixed CAM		155		196		450		581
	Amortization of (above)/below-market rent, net		1,230		1,058		3,780		3,328
	Straight-line rent expense		(45)		(186)		(167)		(1,020)
	Debt fair value and loan cost amortization		(1,233)		(1,166)		(3,587)		(3,429)
	Capitalized interest expense		234		400		792		951
	Stock compensation expense		(2,710)		(3,628)		(5,088)		(9,095)
	Non-real estate depreciation expense		(1,270)		(1,352)		(3,938)		(4,282)

SITE Centers Corp.
Balance Sheet: Consolidated Interests
	$ in thousands
			At Period End
			3Q20		4Q19
	Assets:
	Land		$881,543		$881,397
	Buildings		3,312,645		3,277,440
	Fixtures and tenant improvements		501,431		491,312
			4,695,619		4,650,149
	Depreciation		(1,393,578)		(1,289,148)
			3,302,041		3,361,001
	Construction in progress and land		52,042		59,663
	Real estate, net		3,354,083		3,420,664
	Investments in and advances to JVs		79,119		181,906
	Investment in and advances to affiliate (1)		190,770		190,105
	Receivable – preferred equity interests, net		96,128		112,589
	Cash		57,224		16,080
	Restricted cash		289		3,053
	Notes receivable		0		7,541
	Receivables and straight-line (2)		79,208		60,594
	Intangible assets, net (3)		67,766		79,813
	Other assets, net		20,275		21,277
	Total Assets		3,944,862		4,093,622
	Liabilities and Equity:
	Revolving credit facilities		175,000		5,000
	Unsecured debt		1,449,075		1,647,963
	Unsecured term loan		99,591		99,460
	Secured debt		53,316		94,874
			1,776,982		1,847,297
	Dividends payable		5,133		44,036
	Other liabilities (4)		203,035		220,811
	Total Liabilities		1,985,150		2,112,144
	Preferred shares		325,000		325,000
	Common shares		19,400		19,382
	Paid-in capital		5,706,225		5,700,400
	Distributions in excess of net income		(4,083,405)		(4,066,099)
	Deferred compensation		5,442		7,929
	Other comprehensive income		(3,728)		(491)
	Common shares in treasury at cost		(12,463)		(7,707)
	Non-controlling interests		3,241		3,064
	Total Equity		1,959,712		1,981,478
	Total Liabilities and Equity		$3,944,862		$4,093,622
(1)	Preferred investment in RVI		$190,000		$190,000
	Receivable from RVI		770		105
(2)	SL rents (including fixed CAM), net		32,021		31,909
(3)	Operating lease right of use assets		21,024		$21,792
(4)	Operating lease liabilities		40,174		40,725
	Below-market leases, net		43,205		46,961

SITE Centers Corp.
Reconciliation of Net Income Attributable to SITE to Same Store NOI
$ in thousands
		3Q20		3Q19		3Q20		3Q19
		SITE Centers at 100%				At SITE Centers Share (Non-GAAP)
GAAP Reconciliation:
Net income attributable to SITE Centers		$7,287		$23,630		$7,287		$23,630
Fee income		(9,610)		(12,821)		(9,610)		(12,821)
Interest income		(3,445)		(4,616)		(3,445)		(4,616)
Interest expense		18,089		21,160		18,089		21,160
Depreciation and amortization		41,148		40,732		41,148		40,732
General and administrative		13,664		15,304		13,664		15,304
Other expense, net		186		322		186		322
Impairment charges		0		2,750		0		2,750
Equity in net income of joint ventures		(250)		(2,612)		(250)		(2,612)
(Adjustment) reserve of preferred equity interests		(3,542)		6,373		(3,542)		6,373
Tax expense		284		249		284		249
Gain on sale of joint venture interest		(82)		0		(82)		0
Gain on disposition of real estate, net		(218)		(14,497)		(218)		(14,497)
Income from non-controlling interests		116		271		116		271
Consolidated NOI		63,627		76,245		63,627		76,245
SITE Centers' consolidated JV		0		0		(320)		(435)
Consolidated NOI, net of non-controlling interests		63,627		76,245		63,307		75,810
Net (loss) income from unconsolidated joint ventures		(4,748)		6,027		59		2,331
Interest expense		14,700		22,530		2,937		3,918
Depreciation and amortization		23,901		36,867		4,250		6,024
Impairment charges		0		0		0		0
Preferred share expense		4,626		5,544		231		277
Other expense, net		3,246		5,017		694		966
(Gain) loss on disposition of real estate, net		(319)		440		(43)		(10)
Unconsolidated NOI		$41,406		$76,425		8,128		13,506
Total Consolidated + Unconsolidated NOI						71,435		89,316
Less: Non-Same Store NOI adjustments						(1,699)		(5,788)
Total SSNOI including redevelopment						69,736		83,528
Less: Redevelopment Same Store NOI adjustments						(5,294)		(5,155)
Total SSNOI excluding redevelopment						$64,442		$78,373
SSNOI % Change including redevelopment						(16.5%)
SSNOI % Change excluding redevelopment						(17.8%)

SITE Centers Corp.
Reconciliation of Net Income Attributable to SITE to Same Store NOI
$ in thousands
		9M20		9M19		9M20		9M19
		SITE Centers at 100%				At SITE Centers Share (Non-GAAP)
GAAP Reconciliation:
Net income attributable to SITE Centers		$37,007		$76,697		$37,007		$76,697
Fee income		(34,149)		(45,360)		(34,149)		(45,360)
Interest income		(10,480)		(13,658)		(10,480)		(13,658)
Interest expense		58,487		63,973		58,487		63,973
Depreciation and amortization		125,014		123,400		125,014		123,400
General and administrative		38,542		44,348		38,542		44,348
Other expense, net		18,207		254		18,207		254
Impairment charges		0		3,370		0		3,370
Equity in net income of joint ventures		(908)		(5,446)		(908)		(5,446)
Reserve of preferred equity interests		19,393		12,106		19,393		12,106
Tax expense		859		827		859		827
Gain on sale of joint venture interest		(45,635)		0		(45,635)		0
Gain on disposition of real estate, net		(993)		(31,087)		(993)		(31,087)
Income from non-controlling interests		621		836		621		836
Consolidated NOI		205,965		230,260		205,965		230,260
SITE Centers' consolidated JV		0		0		(1,200)		(1,314)
Consolidated NOI, net of non-controlling interests		205,965		230,260		204,765		228,946
Net (loss) income from unconsolidated joint ventures		(36,455)		13,846		366		4,676
Interest expense		47,555		73,472		9,251		12,742
Depreciation and amortization		77,580		113,340		13,665		18,195
Impairment charges		33,240		12,267		1,890		2,453
Preferred share expense		13,710		16,487		685		824
Other expense, net		10,844		16,358		2,250		2,988
(Gain) loss on disposition of real estate, net		(9,229)		(15,205)		(1,778)		1,515
Unconsolidated NOI		$137,245		$230,565		26,329		43,393
Total Consolidated + Unconsolidated NOI						231,094		272,339
Less: Non-Same Store NOI adjustments						(7,098)		(21,620)
Total SSNOI including redevelopment						223,996		250,719
Less: Redevelopment Same Store NOI adjustments						(15,791)		(16,157)
Total SSNOI excluding redevelopment						$208,205		$234,562
SSNOI % Change including redevelopment						(10.7%)
SSNOI % Change excluding redevelopment						(11.2%)