Kimco Realty Corporation (hc) · NYSE:KIM
Kimco Realty Corporation (hc) — Q3 2023 Earnings Presentation
42 slides from Kimco Realty Corporation (hc)'s earnings presentation, Oct 26, 2023
Slide 1: Investor Presentation Third Quarter 2023
Investor Presentation First in Last Mile Retail Third Quarter 2023 Stonebridge at Potomac Town Center Woodbridge, Virginia
Slide 2: Safe Harbor
Safe Harbor Forward Looking Statements 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”). Kimco Rea
Slide 3: Kimco Realty at a Glance: Kimco's Strategy
Kimco’s Kimco’s KIMCO REALTY® AT A GLANCE Strategy Strategy • Own and operate open-air, grocery-anchored • Grocery Anchored shopping centers and mixed-use assets where we can benefit from economies of scale. Shopping Centers • Maintain and grow our nationally diversified portfolio located in the hig
Slide 4: Well-Positioned, Grocery Anchored Portfolio in Major Sun Belt & Coastal Markets
Well-Positioned, Grocery Anchored Portfolio KIMCO REALTY® AT A GLANCE in Major Sun Belt & Coastal Markets 86% of Annual Base Rent (ABR) comes from Our Top Major Metro Markets 1 Major Metro Markets ABR Contribution Denver 84% Coastal and Sun Belt Markets Seattle 1 Boston 2 New York 2% Other Major Met
Slide 5: Strategic Goals
Strategic Goals KIMCO REALTY® AT A GLANCE Financial & Operating 2025 Goals 3.0-5.0% 85% AFFO GROWTH ABR FROM GROCERY RATE ANCHORED PORTFOLIO 2020-2022: >36.7% CAGR 3Q23: 82% 2.5%+ 15% SAME PROPERTY NOI ABR FROM MIXED-USE GROWTH RATE PORTFOLIO 3Q23: 2.6% 3Q23: 13% 6.0-6.5x1 12,000 LOOK-THROUGH MULTI-
Slide 6: 3Q Snapshot
3Q Snapshot KIMCO REALTY® AT A GLANCE 95.5% 2.1M +34.9% 5.9x Operating Portfolio Square Feet Pro-rata rent spread on Net Debt to EBITDA on a Occupancy Leased comparable new leases in 3Q Look-through basis1 2.6% 91.1% 8.8 YR $2.4B+ SSNOI Growth Small Shop Occupancy, Debt Maturity Immediate over 3Q22
Slide 7: Operations Update
Operations Update KIMCO REALTY® AT A GLANCE Occupancy Rent Per Square Foot Reapproaching All-Time Highs $20.00 $20.19 96.4% $19.66 $19.86 $19.12 95.8% 95.7% 95.8% 95.8% $17.99 $18.19 95.5% $17.35 94.4% 93.9% 2018 2019 2020 2021 2022 1Q23 2Q23 3Q23 (1) 2018 2019 2020 2021 2022 1Q23 2Q23 3Q23 Comparab
Slide 8: Multiple FFO Growth Drivers
Westlake S.C. Daly City, CA Multiple FFO Growth Drivers KIMCO REALTY® AT A GLANCE ESG: Strong commitments in Organic Growth the areas of (Rent Bumps) climate change, DEI and small business support Leasing and Mark Redeployment to Market of Albertsons Opportunities Investment Accretive (Re)developmen
Slide 9: Solid Fundamentals
Frontier Village S.C. Lake Stevens, WA Solid Fundamentals Investor Presentation | Third Quarter 2023 9
Slide 10: Favorable Outlook for Shopping Centers
Favorable Outlook for Shopping Centers SOLID FUNDAMENTALS • Open-air gets retailers Shift to Open-Air closer to their customers Record • Historically low new • Higher trip frequency retail development Grocery Anchored driven by necessities Low Supply • New store openings • Lower total cost of outpac
Slide 11: Record Low Supply
Record Low Supply SOLID FUNDAMENTALS Historically Low New Retail Development Store Closures Near Historic Lows Retail Completions Lowest Since Q1 2011 (in '000s)1 “Store closings in 2023 so far is coming close to 2022's number but remains below the historical average”3 14,000 “…retail space per capi
Slide 12: Expanding Retailers
Expanding Retailers SOLID FUNDAMENTALS Tenants Expanding Today1 Substantial Demand Grocer Health/Beauty Products Personal Services Over 85% of 2023 planned openings favor open-air formats2 Category Retailers Locations Discount Dollar Tree, Five Below 1,840 Health, Wellness Ulta Beauty, Bath & Body W
Slide 13: Grocery Advantage
Grocery Advantage SOLID FUNDAMENTALS Current Remaining Highly Productive Grocers, Grocery Anchored / Component 85% Non-Grocery Above the Peer Group1 Average ~$770/SF GOAL 82% of ABR AVG Grocery Sales CURRENT in our centers2 Store proximity remains key as click-and-collect Stronger Grocery Portfolio
Slide 14: Retailers are Going Off-Mall
Retailers are Going “Off-Mall” SOLID FUNDAMENTALS Shift to Open-Air “We're definitely exploring the [neighborhood-based store] Dania Pointe strategy further…versus just strictly inside a mall…You’re seeing Dania Beach, FL that strategy work.”1 “…will open 30 new small-format stores by the fall of 20
Slide 15: Omni-Channel: First In Last Mile
Omni-Channel: First In Last Mile SOLID FUNDAMENTALS “More than 97% of our sales were fulfilled by our stores.”1 ”…omnichannel shoppers spend 2.5 to 3 times more than single channel shoppers.”2 “39% of digital orders were fulfilled by our store teams.” 2 “We executed >200M curbside pickups and fulfil
Slide 16: Close to Home: Retailers Focus on First Ring Suburbs
Close to Home: Retailers Focus on First Ring SOLID FUNDAMENTALS Suburbs For the 1st time 10.5% 45% Since 2013, urban retail Growth in share of Of millennials expect to buy vacancies surpassed Americans living in suburbs a home in the suburbs2 suburban retail vacancies1 from 2010 to 20202 …half of Sw
Slide 17: Operational Momentum
Operational Momentum SOLID FUNDAMENTALS Leased To Economic Occupancy Spread = Visible Spread Translates Future Cashflow Growth To ~$52M of ABR with ~$1.9M of cash flow expected to commence during 4Q23 All-time high 97% 96% 96.0% 95.6% 95.7% 95.8% 95.8% Mark To Market 95.5% 95.3% 95.1% 94.6% • Anchor
Slide 18: High Quality, Diversified Portfolio
Publix at Princeton Lakes Atlanta, GA High Quality, Diversified Portfolio Investor Presentation | Third Quarter 2023 18
Slide 19: Strong Tenant Base
Strong Tenant Base HIGH QUALITY, DIVERSIFIED PORTFOLIO Top Tenants By ABR S&P/MOODY’S A/A2 3.8% A/A2 2.1% 14 released at +38% spread BBB+/A2 1.9% AA/A1 1.8% BB+/Ba2 1.8% • Recapturing a below market portfolio • Upgrading tenant mix to drive traffic at our centers • Limiting downtime and capex by bac
Slide 20: Anchor & Small Shop Tenant Exposure
Anchor & Small Shop Tenant Exposure HIGH QUALITY, DIVERSIFIED PORTFOLIO 47% of Kimco’s ABR is derived from small shop tenants (<10K SF), comprised primarily of: • Restaurants, including quick serve, fast casual and full service • Other uses, such as dollar stores, electronics, liquor/tobacco and oth
Slide 21: Top Small Shop Tenants by Pro-rata ABR%
Top 50 Small Shop Tenants by Pro-rata ABR% HIGH QUALITY, DIVERSIFIED PORTFOLIO Top 50 100% 2,000+ 27% 13% Pro-rata Pro-rata Small Shop Tenants National Stores Portfolio ABR Small Shop ABR Top 50 Small Shop Tenants by Pro-rata ABR % 1 JPMorgan Chase & Co. 11 Wells Fargo & Company 21 McDonald's Corpor
Slide 22: Local Tenant Exposure
Local Tenant Exposure HIGH QUALITY, DIVERSIFIED PORTFOLIO 21% of Kimco’s ABR is Total Portfolio Composition Local Portfolio Composition derived from local tenants, % of Pro-rata ABR % of Pro-rata Local ABR comprised primarily of: Grocery/Pharmacy Home • Restaurants, including 4% 4% quick serve, fast
Slide 23: Accretive Capital Allocation
Village Plaza at Bunker Hill Houston, TX Accretive Capital Allocation Investor Presentation | Third Quarter 2023 23
Slide 24: Why Mixed-Use
River Oaks S.C. Houston, TX Why Mixed-Use • ACCRETIVE CAPITAL ALLOCATION Diversifies portfolio cashflow • Hedges Inflation • Residential leases = short duration leases that regularly mark-to-market Current • Offers a higher CAGR than retail-only sites Mixed-Use Centers 15% Goal • Improves property v
Slide 25: Disciplined Mixed-Use Redevelopments to Drive Future NOI Growth
Disciplined Mixed-Use Redevelopments to ACCRETIVE CAPITAL ALLOCATION Drive Future NOI Growth ACTIVE PROJECT FUTURE OPPORTUNITY FUTURE OPPORTUNITY SUBURBAN SQUARE: Coulter Ave. WESTLAKE S.C. (South Phase) CAMBRIAN PARK PLAZA Ardmore, PA (Philadelphia MSA) Daly City, CA (San Francisco MSA) San Jose, C
Slide 26: Value Creation Through Redevelopment
Value Creation Through Redevelopment ACCRETIVE CAPITAL ALLOCATION Red Mountain Gateway, Mesa, AZ Target shadow anchored Other Notable Retail Completions During 2023 Before Current Building Description Meadowbrook Backfill former Modell's with Burlington Commons Copperwood Backfill former Shoe Expo w
Slide 27: Future Mixed-Use Opportunities
Future Mixed-Use Opportunities ACCRETIVE CAPITAL ALLOCATION Opportunities are distributed across the portfolio, diversifying against market-specific circumstances Embedded Value Creation: ~$130M to $210M additional value from land entitled for the development of 7,946 multi-family residential units
Slide 28: Kimco Plus: Opportunistic Investing
Kimco Plus: Opportunistic Investing ACCRETIVE CAPITAL ALLOCATION Decades of retail property experience, financial acumen, and strong retailer relationships have resulted in unlocking real estate value for both real estate rich retailers and property owners Albertsons (NYSE: ACI) - Monetization • $19
Slide 29: RPT Transaction Overview
RPT Transaction Overview ACCRETIVE CAPITAL ALLOCATION ⚫ 100% stock acquisition by Kimco Realty Corporation (“Kimco”) of RPT Realty (“RPT”) ▪ 0.6049 all-stock fixed exchange ratio Transaction Structure ▪ ~$1bn common equity value and ~$2bn transaction value, including the assumption of debt and prefe
Slide 30: RPT Strategic Rationale
RPT Strategic Rationale ACCRETIVE CAPITAL ALLOCATION 1 Enhances Kimco’s scaled portfolio of high-quality open-air, grocery-anchored shopping centers and mixed-use properties ⚫ ~70% of RPT properties align with Kimco's key strategic markets1 ⚫ Increases square footage of high-quality assets in target
Slide 31: RPT Acquisition Increases Scale in Key Kimco Markets
RPT Acquisition Increases Scale in Key Kimco Markets ACCRETIVE CAPITAL ALLOCATION KIM properties Greater Scale RPT properties in Strategic Markets Boston KIM standalone % Grocery- Pro forma Anchored 3-Mile HHI 67% $122 $138 Boston 35% 80% 85% $128 $121 Atlanta Tampa $85 70% $84 Tampa 66% Miami 88% 8
Slide 32: Significant Financial Strength
Hilltop Village Center Alexandria, VA Significant Financial Strength Investor Presentation | Third Quarter 2023 32
Slide 33: $2.4+ Billion of Financial Capacity to Support Growth
$2.4+ Billion of Financial Capacity to SIGNIFICANT FINANCIAL STRENGTH Support Growth COMMITTED TO SOURCES USES ▪ Investment grade credit rating of: ▪ ACI Stock: ~14.2M shares remain ▪ No remaining mortgage debt BBB+ S&P / Baa1 Moody’s (valued at $323.3M as of 9/30/23) maturing in 2023 ▪ Net/Debt to
Slide 34: Well-Staggered Debt Maturity Profile with Significant Liquidity Position
Well-Staggered Debt Maturity Profile with SIGNIFICANT FINANCIAL STRENGTH Significant Liquidity Position Liquidity Debt Profile: Consolidated/JV Value of remaining ACI Shares Fixed Rate (99.8% of outstanding Cons. Debt) 3.48%1 5.06%1 2,800 Cash and cash equivalents Floating Rate (0.2% of outstanding
Slide 35: ESG Leadership
Mendenhall Commons Memphis, TN ESG Leadership Investor Presentation | Third Quarter 2023 35
Slide 36: ESG Strategic Areas of Focus
ESG Strategic Areas of Focus ESG LEADERSHIP Our Pillars Our Strategy COMMUNICATE Maintain regular engagement with key stakeholder Openly With audiences, reporting information on issues of relevance Kimco ESG Our Stakeholders to those audiences Report EMBRACE Foster a sense of place at our shopping c
Slide 37: Recent Results & Recognition
Recent Results & Recognition ESG LEADERSHIP Our Pillars Recent Results Recognition Awarded Nareit's 2022 “Leader in COMMUNICATE Achieved #1 in GRESB U.S. Retail: Dow Jones® the Light” Award for outstanding Nareit ® Sustainability Indices Openly With Retail Centers Peer Group, with an “A” ESG practic
Slide 38: Appendix
Westminster Center Westminster, CA Appendix Investor Presentation | Third Quarter 2023 38
Slide 39: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures APPENDIX (Unaudited, in thousands) Net Debt/EBITDA Calculations Net income/(loss) $ 120,790 Interest 60,424 Net Debt / EBITDA Calculation Depreciation and amortization 127,437 Gain on sale of properties - Net Debt $ 6,704,748 Gain on sale of joint venture properti
Slide 40: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures APPENDIX (Unaudited, dollars in thousands, except per share data) FFO/Share Reconciliation (1) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income available to the company's common shareholders $ 111,954 $ 51,647 $ 495,8
Slide 41: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures APPENDIX (Unaudited, in thousands) Same Property NOI Reconciliation (1) (2) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net income available to the company's common shareholders $ 111,954 $ 51,647 $ 495,892 $ 156,844 Adjust
Slide 42: Investor Presentation | Third Quarter 2023
Publix at Princeton Lakes Atlanta, GA Investor Presentation | Third Quarter 2023
Kimco Realty Corporation (HC) — Q3 2023 Earnings Presentation on 6ix