Kimco Realty Corporation (hc) · NYSE:KIM
Kimco Realty Corporation (hc) — Q4 2024 Earnings Presentation
32 slides from Kimco Realty Corporation (hc)'s earnings presentation, Feb 7, 2025
Slide 1: Investor Presentation Fourth Quarter 2024
Investor Presentation Fourth Quarter 2024 First U.S. Location The Marketplace at Factoria Bellevue, Washington
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 A- / BBB+ / Baa1 • Capitalize on our efficiencies and advantages Founded / IPO NYSE Listed Fitch / S&P / Moody’s Credit Ratings of scale to serve as the best-in-class operator for tenants. 568 / 101M $25.1B S&P
Slide 4: Kimco Realty at a Glance: 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) 270bp Signed Not Opened (“SNO”) spread Leasing and • ~$56M of annual base rent (“ABR”) Mark-To-Market
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 • 13 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: New Development Expected To Remain Low
Solid Fundamentals Favorable Shopping Center Outlook New Development Expected To Remain Low Rent Increase Needed to Make Development Economically Feasible1 Strip Center supply expected to remain flat through 20282 100% 90% ~65% ~$450/SF 80% market rent increase avg cost of ground-up 70% needed in th
Slide 7: Favorable Shopping Center Outlook: Constrained Supply Boosts Rental Rates
Solid Fundamentals Favorable Shopping Center Outlook Constrained Supply Boosts Rental Rates and Accelerates Leasing Retail Market Rent Spreads Soar1 Retail Space Leasing at Record Pace2 Average Time For Retail Space to Lease Rolling Change in Market Rents “This is the most rapid pace on record and i
Slide 8: Demand Driver: Retailers Expanding Physical Presence
Solid Fundamentals Demand Driver: Retailers Expanding Physical Presence Retailer’s Growth Plans Drive Demand and Increase Rents Anchor (10K+ SQFT) Small Shop (<10K SQFT) Top 50 Small Shop Tenants ranked by Pro-rata ABR% are all National International Retailers & Grocers Source: Company releases, med
Slide 9: 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 Timing Space Results • Higher rent bumps • Signing leases not yet • Flexibility in their • Strong Leasing over the lease term in KIM’s control protot
Slide 10: Ecommerce Boosts Demand for Physical Stores
Solid Fundamentals Ecommerce Boosts Demand for Physical Stores Modern Retailer Evolution Stage 3: Physical Stores Increase Online Sales Profitability Stores Fulfill Online Orders ~98% of orders ~80% of online orders Over 50% of online orders fulfilled in stores1 fulfilled in stores2 fulfilled in sto
Slide 11: Visible Embedded Future Cash Flow Growth
High Quality, Diversified Portfolio Visible Embedded Future Cash Flow Growth SNO Spread Represents Future Cash Flow Growth Signed Not Open (SNO) Lease Spread: 98% • All incremental • ~$34M of Cash Flow Impact on 2024 compared to initial 96.2% 96.3% expectations of $15-$20M 96% 95.7% 270bps or ~$56M
Slide 12: 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 3.7% • 59.2% Anchor Leasing Spreads trailing 12 months (“TTM”) BBB+/A2 1.8% • 39 Anchor leases expiring through 2025 with
Slide 13: Value Creation: Adding Grocery Anchors
Accretive Capital Allocation Value Creation: Adding Grocery Anchors Benefits of Grocery- Highly Productive Nearing Goal of 85% ABR from Anchored Centers: Grocers: Grocery Anchored Portfolio • Lower Cap rates, ~125-150 BPS vs. non-grocery ~$850/SF AVG KIM Grocer Sales2 84% Above the Peer Group3 AVG 7
Slide 14: Value Creation: Redevelopment
Accretive Capital Allocation Value Creation: Redevelopment Retail Redevelopment & Outparcels Mixed-Use Redevelopments ‘Bread & Butter’ Retail Projects 8% to 12% WAVG Blended Stabilized Yield1 2 Recently Completed Project Spotlight 280 Metro Center, Colma, CA Pavilions Place, Westminster, CA 4Q 2024
Slide 15: Value Creation: Anchor Repositioning
Accretive Capital Allocation Value Creation: Anchor Repositioning 2024 Repositioning Success Expected Completions through 2025 • 13 Projects • 7 Projects • $54M Gross Investment • $43M Gross Investment • 18.8% WAVG Blended Stabilized Yield1 • 13 to 20% WAVG Blended Stabilized Yield1 Recently Complet
Slide 16: 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 17: Capital Expenditures
Accretive Capital Allocation Capital Expenditures Below Sector Average Capex Spend 45% Capital Expenditures (incl. Redev.) by REIT1 40% 38% (% of NOI ’19 – ’23) 35% 33% 10% 3% 29% 30% 26% 25% 25% 7% 9% 23% 13% 20% 20% 20% 10% 20% 14% 19% 17% 17% 10% 7% 6% 9% 15% 6% 4% 5% 3% 9% 22% 21% 4% 3% 5% 10% 1
Slide 18: Accretive Acquisitions & Investments
Accretive Capital Allocation Accretive Acquisitions & Investments Unique to Kimco: Structured Investment Program Building a Strategic Acquisition Pipeline with ROFO/ROFR Provides capital to third party owners of retail real estate earning above average returns. • Current returns: High single-digit -
Slide 19: RPT Acquisition & Successful Integration
Accretive Capital Allocation RPT Acquisition & Successful Integration Favorable Deal Pricing • In January of 2024, completed $2.2B acquisition of 56 properties totaling 13M sf at ~8.50% implied cap rate • Equates to ~$165 psf; well below est. replacement cost of ~$450 psf1 • Sold 10 former RPT prope
Slide 20: Significant Financial Capacity to Support Growth
Significant Financial Strength Significant Financial Capacity to Support Growth COMMITTED TO SOURCES USES ▪ Investment grade credit rating of: ▪ Over $135M of annual free cash ▪ 2025: $743M of unsecured debt and A- Fitch flow after dividends and leasing $49M of mortgage debt maturing in capex (tenan
Slide 21: Well-Staggered Debt Maturity Profile
Significant Financial Strength Well-Staggered Debt Maturity Profile Debt Profile: Consolidated JV1 3,500 Fixed Rate (99.8% of outstanding Cons. Debt) 3.89%2 5.12%2 3,000 Floating Rate (0.2% of outstanding Cons. Debt) 5.85%2 5.78%2 WAVG Term 8.0 Yrs 2.7 Yrs 24% In Millions 2,500 Secured Debt 5.9% 72.
Slide 22: Appendix
Appendix Alabama Shepherd S.C. Houston, TX
Slide 23: 4Q Snapshot
Kimco Realty® at a Glance 4Q Snapshot As of 12/31/2024 1. Incl. preferred stock & pro-rata JV net debt 2. As of January 23rd, 2025 Operations Balance Sheet 7.7% 96.3% 2.4M 5.6x 8.0YR 99.8% Growth in FFO/diluted Portfolio Occupancy Square Feet Net Debt to EBITDA on a WAVG Debt Maturity Consolidated D
Slide 24: Strong Fundamentals Support Positive Operating Metrics
Kimco Realty® at a Glance Strong Fundamentals Support Positive Operating Metrics Occupancy Nears All-Time High Rent $/SF Growing at 3.1% CAGR1 96.4% 96.2% 96.3% $20.32 $20.52 95.7% $19.12 $19.66 $18.19 94.4% 93.9% 2019 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Pricing Power Minimum Rent Grow
Slide 25: 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 • Other (home/home improvement, hobby/pet,
Slide 26: 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 27: Value Creation: Increasing Mixed-Use Entitlements
Accretive Capital Allocation Value Creation: Increasing Mixed-Use Entitlements Value & Development Optionality • Entitlement Value: ~$180M to $330M (~$30K to ~$60K per unit) additional value for future development of 9,929 multi-family residential units and hotel keys.1 • Entitlement Optionality: 1.
Slide 28: Corporate Responsibility Strategic Areas of Focus
CR Leadership Corporate Responsibility Strategic Areas of Focus Pillars Strategy COMMUNICATE Regularly engage with key stakeholders, reporting Kimco CR Pitch Openly With Stakeholders relevant information on pertinent issues Kimco CR Pitch EMBRACE Foster a sense of place at our shopping centers, The
Slide 29: Recent Results & Recognition
CR Leadership Recent Results & Recognition Pillars Recent Results Recognition Awarded Green Lease LeaderTM at Awarded Nareit®'s 2024 “Leader in COMMUNICATE Dow Jones® Platinum Level, recognizing green the Light” Award for outstanding Nareit ® Sustainability Indices Openly With leasing practices and
Slide 30: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures (Unaudited, in thousands) Net Debt to EBITDA Calculations 30 kimcorealty.com Investor Presentation | Fourth Quarter 2024
Slide 31: 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 December 31, 2024 2023 Year Ended December 31, 2024 2023 Net income available to the company's common shareholders $ 154,835 $ 133,360 $ 375,718 $ 629,25
Slide 32: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures (Unaudited, in thousands) Same Property NOI Reconciliation1 2 Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Net income available to the company's common shareholders $ 154,835 $ 133,360 $ 375,718 $ 629,252 Adjustments: Manage
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