CORRESP 1 filename1.htm CORRESP

August 15, 2023

CORRESPONDENCE FILING VIA EDGAR

United States Securities and Exchange Commission

Division of Corporation Finance

Office of Real Estate & Construction

100 F Street, N.E.

Washington, DC 20549

 

Attention:    Howard Efron
   Robert Telewicz

 

  Re:   SITE Centers Corp.
    Form 10-K for the Year Ended December 31, 2022
    Filed February 23, 2023
    Form 8-K filed April 25, 2023
    File No. 001-11690

Ladies and Gentlemen:

SITE Centers Corp., an Ohio corporation (the “Company” or “we,” “us” or “our”), is submitting this letter in response to the letter from the staff (the “Staff”) of the Securities and Exchange Commission, dated August 4, 2023 (the “Comment Letter”), with respect to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed February 23, 2023, and Form 8-K, filed April 25, 2023.

Below is the Company’s response. For the convenience of the Staff, the Company has repeated the Staff’s comment before the response.

Form 8-K filed July 25, 2023

Exhibit 99.1 Quarterly Financial Supplement Dated as of June 30, 2023

Site Centers Corp. Same Store Metrics, page 12

 

1.

We have considered your response to our prior comment. In your response you state your belief that 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. It appears that your presentation of SSNOI combines consolidated results with your proportionate share of operations of unconsolidated investees in each line item of your table. Please tell us how you applied question 100.04 of the Compliance & Disclosure Interpretations related to Non-GAAP measures when considering whether this apparent use of proportionate consolidation represents a tailored accounting principle.

United States Securities and Exchange Commission

Division of Corporation Finance

Page 2

Response:

In the future, we will revise our disclosure of the SSNOI metrics as presented on page 12 of the Quarterly Financial Supplement to only present the Same Store Property Revenues and Expenses for the consolidated properties. The Company’s prorata share of SSNOI from unconsolidated joint ventures will be presented as a separate line to reconcile to the total SSNOI reported at the Company’s share. We have modified our page 12 presentation in the Quarterly Financial Supplement as of June 30, 2023 and included herein as Attachment A to reflect our proposed changes for the convenience of the Staff.

***********

If you have any questions regarding this matter, please do not hesitate to contact the undersigned at 646-868-4750.

 

Very truly yours,
/s/ Conor Fennerty
Conor Fennerty
Executive Vice President,
Chief Financial Officer and Treasurer

 

cc:

Christa A Vesy, Executive Vice President,

and Chief Accounting Officer

Attachment A

SITE Centers Corp.

Same Store Metrics (1)

 

     Same Store Net Operating Income  
     Quarterly Same Store NOI     YTD Same Store NOI  
     2Q23     2Q22     Change     6M23     6M22     Change  

Leased rate

      95.7 %      94.7 %      1.0 %      95.7 %      94.7 %      1.0 % 

Commenced rate

      92.5 %      91.4 %      1.1 %      92.5 %      91.4 %      1.1 % 

Revenues:

             

Minimum rents

    $ 90,756     $ 89,008       $ 180,768     $ 175,791    

Recoveries

      33,797       31,902         67,168       63,010    

Uncollectible revenue

      (695 )      1,006         (558 )      2,044    

Percentage and overage rents

      2,249       1,587         3,386       2,624    

Ancillary and other rental income

      1,630       1,451         3,574       2,900    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     127,737       124,954       2.2 %      254,338       246,369       3.2 % 

Expenses:

             

Operating and maintenance

      (18,162 )      (17,239 )        (36,773 )      (34,663 )   

Real estate taxes

      (19,535 )      (19,195 )        (38,864 )      (38,278 )   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     (37,697 )      (36,434 )      3.5 %      (75,637 )      (72,941 )      3.7 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Consolidated SSNOI

    $ 90,040     $ 88,520       1.7 %    $ 178,701     $ 173,428       3.0 % 

Total Unconsolidated SSNOI at SITE share

      3,700       3,629         7,344       7,326    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total SSNOI at SITE share(2)

   $ 93,740     $ 92,149       1.7 %    $ 186,045     $ 180,754       2.9 % 

Consolidated SSNOI Operating Margin

      70.5 %      70.8 %        70.3 %      70.4 %   

Consolidated SSNOI Recovery Rate

      89.7 %      87.6 %        88.8 %      86.4 %   

 

(1)

See calculation definition in the Non-GAAP Measures section and GAAP reconciliation on page 8. Figures reported include redevelopment.

(2)

Results include the impact of rental income at SITE’s share related to prior periods of $0.1M and $1.2M for the second quarters of 2023 and 2022 and $0.6M and $2.3M for the first six months of 2023 and 2022, respectively, primarily related to cash basis tenants.

 

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