Kimco Realty Corporation (hc) · NYSE:KIM
Kimco Realty Corporation (hc) — Q2 2024 Earnings Presentation
30 slides from Kimco Realty Corporation (hc)'s earnings presentation, Aug 1, 2024
Slide 1: Investor Presentation Second Quarter 2024
Investor Presentation Second Quarter 2024 Fullerton Plaza Baltimore, Maryland
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 Founded / IPO NYSE Listed Moody’s/S&P Credit Ratings of scale to serve as the best-in-class operator for tenants. 567/101M $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 to 1.5% per year: Organic Growth • Small shop: 3 to 5% per year (Rent Bumps) • Anchors: 10 to 12% (every 5 Years) 320bp Signed Not Opened (SNO) spread Leasing and • ~$63M in incremental annual base rent Mark-To-Marke
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 in the Broad national presence with specialized local insight 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 ~65% on average in the Top 50 Markets to produce required returns on costs of ~$450/SF of ground-up development.1 Historically Low New Retail Development Retail Space Leasing at Rec
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 Lows2 ~49% of retailers plan to expand over the next 5 years1 Store openings are on track to outpace closings for the 3rd consecutive year3 Anc
Slide 8: Retailer FOMO: The Landlord Leasing Advantage
Solid Fundamentals Retailer FOMO: The Landlord Leasing Advantage Increased retailer flexibility brought on by the current operating fundamentals Terms “retailers (are) paying higher rents, agreeing to pricier rent • Higher rent bumps over the lease term escalations and jumping on spaces as soon as,
Slide 9: Physical Stores: Boost Sales & Profitability
Solid Fundamentals Physical Stores: Boost Sales & Profitability Physical Store Openings Physical Stores Increase Online Sales Profitability Boost Trade Area Sales1 Omni-channel Shoppers Spend More Omnichannel shoppers Omnichannel Established spend 3 to 4 times more shoppers drive a Retailers than si
Slide 10: Visible Embedded Future Cash Flow Growth
High Quality, Diversified Portfolio Visible Embedded Future Cash Flow Growth New Rent Commencements Fuel Cash Flow Growth Next 12 to 24 Months SNO Spread Represents Future Cash Flow Growth Signed Not Open (SNO) Lease Spread: 98% • Represents ~$63M of Incremental ABR at 6.30.24 • 53% related to ancho
Slide 11: 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 23 resolved Bed Bath & Beyond leases A/A2 1.8% BBB+/A2 1.8% • 42.4% Anchor Leasing
Slide 12: 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 High Foot Traffic, U.S. households make on avg. approx. two grocery trips per week in 20231 Center Replaced a Km
Slide 13: Value Creation: Redevelopment
Accretive Capital Allocation Value Creation: Redevelopment Retail Redevelopment & Outparcels Mixed-Use Redevelopments ‘Bread & Butter’ Retail Projects 8% to 12% WAVG Yield1 2 Recently Completed Project Spotlight Wilkens Beltway Plaza, Baltimore, MD Wexford Plaza, Pittsburgh, PA Coulter Place @ Subur
Slide 14: Value Creation: Anchor Repositioning
Accretive Capital Allocation Value Creation: Anchor Repositioning Expected Completions through 2025 2024 Repositioning Success • 12 Projects • 4 Projects • $65M Gross Investment • $16M Gross Investment • 13 to 20% WAVG Blended Yield1 • 19.8% WAVG Blended Yield1 Recently Completed Dulles Town Crossin
Slide 15: 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. Premium grocers drive stronger apartment performance1 Acquis
Slide 16: Accretive Acquisitions & Investments
Accretive Capital Allocation Accretive Acquisitions & Investments 2024 Assumptions • $300M to $350M in acquisitions including Special Situation Group Investments • 7.0% to 8.0% blended cap rate Unique to Kimco: Special Situations Group (SSG) Provides capital to third party owners of retail real esta
Slide 17: RPT Acquisition & Successful Integration
Accretive Capital Allocation RPT Acquisition & Successful Integration Favorable Deal Pricing Growth Opportunities • $2.2B acquisition of 56 properties totaling Lease Activity: 13M sf at ~8.50% implied cap rate • YTD spreads on new leases (+87%), • Equates to ~$165 psf; well below est. far exceed und
Slide 18: Significant Financial Capacity to Support Growth
Significant Financial Strength Significant Financial Capacity to Support Growth COMMITTED TO SOURCES USES ▪ Investment grade credit rating of: ▪ ~$140M of annual free cash flow ▪ 2024: No debt maturities remaining BBB+ S&P / Baa1 Moody’s after dividends and leasing capex ▪ 2024 Capital Allocation Pr
Slide 19: Well-Staggered Debt Maturity Profile
Significant Financial Strength Well-Staggered Debt Maturity Profile Debt Profile: Consolidated JV1 3,500 Fixed Rate (97% of outstanding Cons. Debt) 3.75%2 5.13%2 3,000 Floating Rate (3% of outstanding Cons. Debt) 6.23%2 6.39%2 WAVG Term 8.7 Yrs 3.1 Yrs 26% In Millions 2,500 Secured Debt 4% 73% Unsec
Slide 20: Appendix
Appendix Alabama Shepherd S.C. Houston, TX
Slide 21: 2Q Snapshot
1. Incl. preferred stock & pro-rata JV net debt As of 6/30/2024 Kimco Realty® at a Glance 2Q Snapshot Operations Balance Sheet 5.1% 96.2% 2.3M 5.8x 97% Growth in FFO/diluted Portfolio Occupancy Square Feet Net Debt to EBITDA on a Consolidated Debt share over 2Q23 (pro-rata) Leased Look-through basis
Slide 22: 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% 96.2% $20.32 $20.19 95.7% $19.12 $19.66 $18.19 94.4% 93.9% 2020 2021 2022 2023 2Q24 2020 2021 2022 2023 2Q24 Pricing Power Minimum R
Slide 23: 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 • Beauty Supplies and Personal services (s
Slide 24: Portfolio Breakdown: Local Tenant Categories
High Quality, Diversified Portfolio Portfolio Breakdown: Local Tenant Categories 19% 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: Home Grocery 4% 4% • Restaurants Apparel (quick serve,
Slide 25: Value Creation: Increasing Mixed-Use Entitlements
Accretive Capital Allocation Value Creation: Increasing Mixed-Use Entitlements Value & Development Optionality • Entitlement Value: ~$140M to $250M (~$25K to ~$55K per unit) additional value for future development of 8,173 multi-family residential units and hotel keys.1 • Entitlement Optionality: 1.
Slide 26: 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 27: 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 28: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures (Unaudited, in thousands) Net Debt to EBITDA Calculations 28 kimcorealty.com Investor Presentation | Second Quarter 2024
Slide 29: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures (Unaudited, dollars in thousands, except per share data) FFO/Share Reconciliation1 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income available to the company's common shareholders $ 111,777 $ 100,426 $ 92,861 $ 383,938 G
Slide 30: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures (Unaudited, in thousands) Same Property NOI Reconciliation1 2 Three Months Ended June 30, 2024 2023 Six Months Ended June 30, 2024 2023 Net income available to the company's common shareholders $ 111,777 $ 100,426 $ 92,861 $ 383,938 Adjustments: Managemen
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