Kimco Realty Corporation (hc) · NYSE:KIM
Kimco Realty Corporation (hc) — Q1 2024 Earnings Presentation
26 slides from Kimco Realty Corporation (hc)'s earnings presentation, May 2, 2024
Slide 1: Investor Presentation First Quarter 2024
Investor Presentation First Quarter 2024 Tradewinds Shopping Center Key Largo, Florida
Slide 2: Safe Harbor
Safe Harbor This communication contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends such forward-loo
Slide 3: Strategy Overview
Stonebridge at Potomac Town Center Strategy Overview Woodbridge, Virginia 1958/1991 KIM Baa1/BBB+ • Capitalize on our efficiencies and advantages of Founded / IPO NYSE Listed Moody’s/S&P Credit Ratings scale to serve as the best-in-class operator for tenants. 569/101M $21.5B S&P500 Properties/Total
Slide 4: Multiple Cashflow Growth Drivers
Kimco Realty® at a Glance Multiple Cashflow Growth Drivers Est. Portfolio Avg: 1.25-1.5% per year: Organic Growth • Small shop: 3-5% per year (Rent Bumps) • Anchors: 10-12% (every 5 Years) Leasing and 330bp Signed Not Opened (SNO) spread Mark-To-Market • ~$63M in incremental annual base rent Opportu
Slide 5: Location, Location, Location
Kimco Realty® at a Glance Location, Location, Location Where Demographic Trends 82% of Annual Base Rent (ABR) from Top Major Support Rent Growth Metro Markets4 • 12 of the 15 fastest-growing cities in the U.S. are Broad national presence with specialized local insight in the Sun Belt1 Denver • Top K
Slide 6: Favorable Shopping Center Outlook
Solid Fundamentals Favorable Shopping Center Outlook Supply expected to remain low Retail rents would need to increase ~30-50%+ to produce required returns on costs of ~$300-500+/SF of ground-up development. Historically Low New Retail Development Strip Center supply expected to remain flat through
Slide 7: Demand Driver: Retailers Expanding Physical Presence
Solid Fundamentals Demand Driver: Retailers Expanding Physical Presence Retailer’s Growth Plans Drive Demand and Increase Rents Store Closures Near Historic Lows3 49% of retailers plan to expand over the 85%+ of 2023 planned openings favor Store closings in 2023 remained well below the historical ne
Slide 8: Physical Stores Boost Sales and Profitability
Solid Fundamentals Physical Stores Boost Sales and Profitability Store Openings Boost Sales ~7%1 Retailers Are Using Stores as Hubs Established Retailers Emerging Retailers “More than 97% of our sales were fulfilled by our stores.”3 +6.8% +6.8% +13.9% “…70% of eCommerce sales fulfilled by stores.”4
Slide 9: Embedded Future Cash Flow Growth
High Quality, Diversified Portfolio Embedded Future Cash Flow Growth Growing Number of Fully Executed Leases That Will Commence Paying Rent Over the Next ~12-24 Months Provide Strong Future Cash Flow Growth SNO Spread Represents Future Cash Flow Growth Signed Not Open (SNO) Lease Spread: 98% • Repre
Slide 10: Strong and Highly Diversified Tenant Base
High Quality, Diversified Portfolio Strong and Highly Diversified Tenant Base Limited Exposure: No Tenant >4% of ABR Upside through Mark to Market Opportunities S&P/MOODY’S A/A2 3.8% • 42% pro-rata new lease spread on 21 resolved Bed Bath & Beyond leases A/A2 1.8% BBB+/A2 1.8% • 39% Anchor Leasing S
Slide 11: Value Creation: Adding Grocery Anchors
Solid Fundamentals Value Creation: Adding Grocery Anchors Grocery Anchored Centers Offer: Recent Grocery Conversions Lower Cap rates, ~125-150 BPS vs. non-grocery Tradewinds Shopping GOAL Center High Foot Traffic, U.S. households make on avg. approx. two grocery Replaced a Kmart with an trips per we
Slide 12: Value Creation: Adding Mixed-Use Components
Accretive Capital Allocation Value Creation: Adding Mixed-Use Components Mixed-Use Supports Shopping Center Strength GOAL Enhances Property Value With lower blended cap rate Premium Market Rents Due to on-site retail and service amenities Acquisition Pipeline • ROFO/ROFR* for all Ground Leases • Pos
Slide 13: Accretive Acquisitions & Investments
Accretive Capital Allocation Accretive Acquisitions & Investments 2024 Assumptions • $300M to $350M in acquisitions including Special Situation Group (SSG) Investments • 7.0% to 8.0% blended cap rate Unique to Kimco: Special Situations Group Provides capital to third party owners of retail real esta
Slide 14: Significant Financial Capacity to Support Growth
Significant Financial Strength Significant Financial Capacity to Support Growth COMMITTED TO SOURCES USES ▪ Investment grade credit rating of: ▪ $135M+ of annual free cash flow after ▪ 2024: $12M of total consolidated BBB+ S&P / Baa1 Moody’s dividends and leasing capex (tenant debt maturities remain
Slide 15: Well-Staggered Debt Maturity Profile
Significant Financial Strength Well-Staggered Debt Maturity Profile 3,500 Debt Profile: Consolidated JV1 3,000 Fixed Rate (98.2% of outstanding Cons. Debt) 3.77%2 5.08%2 Floating Rate (1.8% of outstanding Cons. Debt) 6.24%2 6.39%2 27% In Millions 2,500 WAVG Term 8.8 Yrs 3.3 Yrs Secured Debt 5% 73% 2
Slide 16: Appendix
Appendix Alabama Shepherd S.C. Houston, TX
Slide 17: 1Q Snapshot
1. Incl. preferred stock & pro-rata JV net debt As of 3/31/2024 Kimco Realty® at a Glance 1Q Snapshot Operations Balance Sheet 96.0% 4.0M 5.6x 98.2% Portfolio Occupancy (pro-rata) Square Feet Net Debt to EBITDA on a of Consolidated Debt is Leased Look-through basis1 at a Fixed Rate +35.5% Pro-rata r
Slide 18: Strong Fundamentals Support Positive Operating Metrics
Kimco Realty® at a Glance Strong Fundamentals Support Positive Operating Metrics Occupancy: Room to Exceed All-Time Rent $/SF Growing at 3.8% CAGR1 High of 96.4% 96.2% 96.0% $20.32 $20.09 95.7% $19.12 $19.66 $18.19 Impacted Impacted by RPT by RPT 94.4% Acquisition Acquisition 93.9% 2020 2021 2022 20
Slide 19: Portfolio Breakdown: Anchor & Small Shop Tenancy
High Quality, Diversified Portfolio Portfolio Breakdown: Anchor & Small Shop Tenancy 47% of Kimco’s ABR is derived from small shop tenants (<10K SF), comprised primarily of: • Restaurants (quick serve, fast casual and full service) Top 50 Small Shop Tenants • Goods and Services (dollar stores, elect
Slide 20: Portfolio Breakdown: Local Tenant Categories
High Quality, Diversified Portfolio Portfolio Breakdown: Local Tenant Categories 20% of ABR is derived from Total Portfolio Composition Local Portfolio Composition local tenants, comprised % of Pro-rata ABR % of Pro-rata Local ABR primarily of: Grocery/Pharmacy Home 4% 4% • Restaurants (quick serve,
Slide 21: Value Creation: Increasing Mixed-Use Entitlements
Accretive Capital Allocation Value Creation: Increasing Mixed-Use Entitlements Value & Development Optionality • Entitlement Value: ~$125M to $210M (~$25K to ~$55K per unit) additional value for future development of ~7,600 multi-family residential units and hotel keys.1 • Entitlement Optionality: 1
Slide 22: Corporate Responsibility Strategic Areas of Focus
CR Leadership Corporate Responsibility Strategic Areas of Focus Pillars Strategy COMMUNICATE Regularly engage with key stakeholders, reporting Openly With Stakeholders relevant information on pertinent issues Kimco CR Pitch EMBRACE Foster a sense of place at our shopping centers, The Future creating
Slide 23: Recent Results & Recognition
CR Leadership Recent Results & Recognition Pillars Recent Results Recognition Awarded Green Lease LeaderTM at Awarded Nareit®'s 2023 “Leader in COMMUNICATE Dow Jones® Platinum Level, recognizing green the Light” Award for outstanding Nareit ® Sustainability Indices Openly With leasing practices and
Slide 24: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures (Unaudited, in thousands) Net Debt to EBITDA Calculations 24 kimcorealty.com Investor Presentation | First Quarter 2024
Slide 25: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures (Unaudited, dollars in thousands, except per share data) FFO/Share Reconciliation1 2024 Three Months Ended March 31, 2023 Net (loss)/income available to the company's common shareholders $ (18,916) $ 283,512 Gain on sale of properties (318) (39,206) Gain
Slide 26: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures (Unaudited, in thousands) Same Property NOI Reconciliation1 2 Three Months Ended March 31, 2024 2023 Net (loss)/income available to the company's common shareholders $ (18,916) $ 283,512 Adjustments: Management and other fee income (4,849) (4,554) General
Kimco Realty Corporation (HC) — Q1 2024 Earnings Presentation on 6ix