Kimco Realty Corporation (hc) · NYSE:KIM
Kimco Realty Corporation (hc) — Kimco Realty — Merger or Acquisition (April 2021)
17 slides from Kimco Realty Corporation (hc)'s merger presentation, Apr 15, 2021
Slide 1: Kimco and Weingarten Strategic Merger
Investor Presentation KIMCO AND WEINGARTENSTRATEGIC MERGER APRIL 2021 Creates Premier Open-Air Shopping Center & Mixed-Use Real Estate Company 1 SAFE HARBOR This communication contains certain “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended (t
Slide 2: Safe Harbor
‘This communication contains certain “forward-looking” statements within the meaning of Section 27A of the Secutties Act of 1633, as amended (the "Securitas Act), and Section 21E of the Exchange Act. Kimco Really Corporation KIM) and Weingarten Realy Investor CWI) inlend such foward-lcking statement
Slide 3: Transaction Overview
TRANSACTION OVERVIEW 1. Includes customary transaction costs. TRANSACTION DETAIL Kimco Realty Corporation (“Kimco”) is merging with Weingarten Realty Investors (“Weingarten”) in a strategic combination Total consideration per Weingarten share of 1.408 Kimco shares plus $2.89 in cash$3.9 billion equi
Slide 4: Combination Creates Premier Open-Air Shopping Center and Mixed-Use Real Estate Company
Combination Creates Premier Open-Air Shopping Center and Mixed-Use Real Estate Company TRANSACTION RATIONALE ENHANCES PORTFOLIO QUALITY AND DIVERSIFICATION Highly complementary portfolios create an unparalleled high-quality, grocery-anchored shopping center portfolio of 559 operating properties in t
Slide 5: Transaction Rationale (Cont'd)
TRANSACTION RATIONALE (CONT’D) 1. Cash expense synergies adjusted for capitalized costs and stock-based compensation. GENERATES POSITIVE FINANCIAL IMPACT WITH IMMEDIATE EARNINGS ACCRETION Transaction is expected to be immediately accretive to earnings Kimco’s scalable platform along with the signifi
Slide 6: Weingarten Snapshot
WEINGARTEN SNAPSHOT As of 12/31/2020 unless otherwise noted. 1.2. As of 2/22/2021. Pre-COVID. 159# of Properties 30M SFTotal Gross Leasable Area (GLA) $718/SFAVG Grocery Sales/SF (2) 82%% of ABR from Grocery Anchored Centers 92.9%Operating Portfolio Occupancy $20.43ABR/SF Baa1/BBBMoody’s / S&P Ratin
Slide 7: Pro Forma Combined Company Metrics
KIM4Q20 WRI4Q20 Pro Forma $8.5 $3.5 $12.0 $14.6 $5.3 $20.5 42% 34% 41% 7.9x 6.0x 7.6x 400 159 559 70 30 100 93.9% 92.9% 93.6% $18.19 $20.43 $18.79 78% 82% 79% 42% 81% 53% Equity Value ($bn) Enterprise Value ($bn) Net Debt + Preferred / EV Net Debt + Preferred / EBITDA (1) # of Operating Properties T
Slide 8: Combination Creates Top REIT by Market Cap and a Clear Leader in the Shopping Center Sector
Combination Creates Top 30 REIT by Market Cap and a Clear Leader in the Shopping Center Sector Sources: MSCI and SNL Financial. Market data as of 4/14/2021. ENHANCED SIZE AND SCALE LARGEST REITS IN THE RMZ SHOPPING CENTER REIT LANDSCAPE BY EQUITY MARKET CAPITALIZATION 12 EXTRA SPACE STORAGE 18.9 13
Slide 9: ~85% of Annual Base Rent from Top Major Metro Markets
~85% of Annual Base Rent Will Come from Top Major Metro Markets with Significant Overlap Between the Portfolios Note: Data as of 12/31/2020. Percentages reflect pro rata annual base rent (ABR). GEOGRAPHIC OVERVIEW San Francisco (4%) Sacramento (1%)San Jose (1%) Seattle (3%) Portland (1%) Los Angeles
Slide 10: Highly Diversified, Strong Credit Tenant Base
Highly Diversified, Strong Credit Tenant Base with Long-Standing Relationships Source: Company filings as of 12/31/2020. TOP 10 TENANTS 3.7% 2.3% 2.0% 2.0% 1.8% 1.8% 1.6% 1.4% 1.3% 1.3% A/A2 A/A2 BB-/Ba3 BBB+/A2 A+/A2 B-/B2 BBB/Baa1 BBB/Baa1 AA/Aa2 BB/WR Well-staggered lease expiration schedule over
Slide 11: High Quality Portfolio
GLA is defined as gross leasable area. ABR is defined as annual base rent.As of 12/31/2020. HIGH QUALITY PORTFOLIO Did You Know… 86% of pro rata ABR comes from Anchors, Mid Tier Stores, and National/Franchise-Based tenants which typically have stronger credit profiles and greater access to capital 1
Slide 12: Essential Retail Breakdown by Pro Rata ABR
QSR 9.1% Full Service 6.4% Essential Retail Breakdown by Pro Rata ABR ABR is defined as annual base rent. As of 12/31/2020. HIGH QUALITY PORTFOLIO Essential Retail 44% Non-Essential Retail42% Restaurants 14% 5.4% Home Office / Appliance 4.3% Medical / Medical Supply 3.7% Banking / Finance 3.7% Home
Slide 13: Weingarten's De-Risked Mixed-Use Development Projects
Weingarten’s Largely De-Risked, Mixed-Use Development Projects Will Drive Earnings Growth and Value Creation MEANINGFUL NAV CREATION OPPORTUNITY Source: Company filings as of 12/31/2020. Project West Alex Centro Arlington The Driscoll at River Oaks Location Alexandria, VA Arlington, VA Houston, TX C
Slide 14: Complementary Mixed-Use Development Pipeline
COMPLEMENTARY MIXED-USED DEVELOPMENT PIPELINE PENTAGON CENTRE Kimco Weingarten The combined company will have three mixed-use developments under construction in the Washington, D.C. market in close proximity to The Pentagon and the new Amazon headquarters in Crystal CityWith limited new residential
Slide 15: Strong Balance Sheet Provides Financial Flexibility
58% 33% 2%3% 3% Strong Balance Sheet Provides Financial Flexibility and Ability to Execute Business and Growth Strategy PRO FORMA BALANCE SHEET SUMMARY $20.7B Common EquityUnsecured Debt Mortgage Debt Share of JV Debt Preferred Equity The combined company will have a strong, investment grade rated c
Slide 16: Well-Staggered Debt Maturities
WELL-STAGGERED DEBT MATURITIES Pro Forma Debt Maturity Schedule $0 $1,000 $2,000 $3,000 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+ 3% 13% 10% 9% 11% 10% 6% 6% 1% Debt in Millions Consolidated Debt Joint Venture Debt Fixed Rate Floating Rate WAVG Term Secured Debt 3.62%*1.67%*4.1 Yrs89% Unsec
Slide 17: Transaction Highlights
TRANSACTION HIGHLIGHTS NAV CREATIONIncrease net asset value (NAV) through combined mixed-use development platform and sector- leading retailer relationships BENEFITS OF SCALE$20 billion pro forma enterprise value will facilitate access to capital and create economies of scale FINANCIAL STRENGTHImmed