Kimco Realty Corporation (hc) · NYSE:KIM
Kimco Realty Corporation (hc) — Q3 2024 Earnings Presentation
31 slides from Kimco Realty Corporation (hc)'s earnings presentation, Oct 31, 2024
Slide 1: Investor Presentation Third Quarter 2024
Investor Presentation Third Quarter 2024 Waterford Lakes Town Center Orlando, 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 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. 567 / 101M $24.7B S&P
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) 310bp Signed Not Opened (SNO) spread Leasing and • ~$61M 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 Markets3 • 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
Solid Fundamentals Favorable Shopping Center Outlook Historically Low New Retail Development Retail Space Leasing at Record Pace Strip Center supply expected to remain flat through 2028 1 Retail tenants are competing for high-quality available space Supply Growth1 Average Time For Retail Space to Le
Slide 7: 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 ~65% 100% 90% 80% market rent increase 70% needed in the Top 50 60% Markets to produce 50% required returns1 40% 30% ~$450/SF 20% 10% 0% avg cos
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 Store Closures Near Historic Lows1 Anchor (10K+ SQFT) Store openings continue to outpace closings Retail Bankruptcies2 Small Shop (<10K SQFT) Top 50 Small Shop Tenants rank
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 ~98% of orders ~80% of online Over 50% of fulfilled in orders fulfilled online orders Online Orders stores1 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% • Represents ~$61M of ABR at 9.30.24 96.2% 96.2% 96.4% • All incremental 96.0% 96% 95.7% • 90% is expected to commence by the end of 2025
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 3.8% • 48.2% Anchor Leasing Spreads trailing 12 months (“TTM”) A/A2 1.8% • 54 Anchor leases expiring through 2025 with no
Slide 13: Value Creation: Adding Grocery Anchors
Accretive Capital Allocation Value Creation: Adding Grocery Anchors Benefits of Grocery Anchored Centers: Grocery Conversions Lower Cap rates, ~125-150 BPS vs. non-grocery Highland Lake Plaza (RPT) GOAL High Foot Traffic, U.S. households make on avg. approx. two grocery Upgrade and split vacant 35K
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 Wilkens Beltway Plaza, Baltimore, MD Wexford Plaza, Pittsburgh, PA Co
Slide 15: Value Creation: Anchor Repositioning
Accretive Capital Allocation Value Creation: Anchor Repositioning Expected Completions through 2025 2024 Repositioning Success • 10 Projects • 10 Projects • $56M Gross Investment • $42M Gross Investment • 13 to 20% WAVG Blended Stabilized Yield1 • 16.6% WAVG Blended Stabilized Yield1 Recently Comple
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: Accretive Acquisitions & Investments
Accretive Capital Allocation Accretive Acquisitions & Investments Unique to Kimco: Special Situations Group (SSG) 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 18: 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 (+58%), • Equates to ~$165 psf; well below est. far exceed und
Slide 19: 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 A- Fitch after dividends and leasing capex ▪ 2024 Capital Allocation Priorities (tenan
Slide 20: 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) 3.86%2 5.12%2 30% 3,000 Floating Rate (0.2% of outstanding Cons. Debt) 6.50%2 6.22%2 WAVG Term 8.3 Yrs 2.9 Yrs In Millions 2,500 Secured Debt 4% 73% U
Slide 21: Appendix
Appendix Alabama Shepherd S.C. Houston, TX
Slide 22: 3Q Snapshot
Kimco Realty® at a Glance 3Q Snapshot As of 9/30/2024 1. Incl. preferred stock & pro-rata JV net debt Operations Balance Sheet 7.5% 96.4% 2.4M 5.6x 8.3YR 99.8% Growth in FFO/diluted Portfolio Occupancy Square Feet Net Debt to EBITDA on a WAVG Debt Maturity Consolidated Debt share over 3Q23 (pro-rata
Slide 23: Strong Fundamentals Support Positive Operating Metrics
Kimco Realty® at a Glance Strong Fundamentals Support Positive Operating Metrics Occupancy Matches All-Time High Rent $/SF Growing at 3.8% CAGR1 96.2% 96.4% $20.32 $20.29 95.7% $19.12 $19.66 $18.19 94.4% 93.9% 2020 2021 2022 2023 3Q24 2020 2021 2022 2023 3Q24 Pricing Power Minimum Rent Growth Positi
Slide 24: 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 25: 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 3% 4% • Restaurants Apparel (quick serve,
Slide 26: Value Creation: Increasing Mixed-Use Entitlements
Accretive Capital Allocation Value Creation: Increasing Mixed-Use Entitlements Value & Development Optionality • Entitlement Value: ~$175M to $325M (~$30K to ~$60K per unit) additional value for future development of 9,761 multi-family residential units and hotel keys.1 • Entitlement Optionality: 1.
Slide 27: 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 28: 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 29: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures (Unaudited, in thousands) Net Debt to EBITDA Calculations Net Income $ 138,426 Interest 76,216 Net Debt / EBITDA Calculation Depreciation and amortization 144,688 Gain on sale of properties (551) Net Debt $ 7,512,171 Gain on sale of joint venture properti
Slide 30: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures Reconciliation of Net Income Available to the Company's Common Shareholders to FFO Available to the Company's Common Shareholders (1) (in thousands, except per share data) (unaudited) (Unaudited, dollars in thousands, except per share data) FFO/Share Reco
Slide 31: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures (Unaudited, in thousands) Same Property NOI Reconciliation1 2 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net income available to the company's common shareholders $ 128,022 $ 111,954 $ 220,883 $ 495,892 Adjustment
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