Kimco Realty Corporation (hc) · NYSE:KIM
Kimco Realty Corporation (hc) — Q4 2023 Earnings Presentation
39 slides from Kimco Realty Corporation (hc)'s earnings presentation, Feb 8, 2024
Slide 1: Investor Presentation Fourth Quarter 2023
Investor Presentation First in Last Mile Retail Fourth Quarter 2023 Mary Brickell Village Miami, 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, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe ha
Slide 3: Kimco Realty at a Glance: Strategy
Kimco’s Westmont Plaza Westmont, NJ Strategy KIMCO REALTY® AT A GLANCE Strategy Overview • Own and operate open-air, grocery-anchored • Grocery Anchored shopping centers and mixed-use assets, providing essential, necessity-based goods Shopping Centers and services to local communities, capitalizing
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) from Top Major Metro Markets1 Major Metro Markets ABR Contribution Denver 84% Coastal and Sun Belt Markets Seattle 1 Boston 2 New York 2% Other Major Metro Markets S
Slide 5: Multiple FFO Growth Drivers
Hollywood Hills Plaza Hollywood, FL 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)d
Slide 6: 4Q Snapshot
4Q Snapshot KIMCO REALTY® AT A GLANCE 96.2% 2.7M +24.0% 91.7% Portfolio Occupancy, Square Feet Pro-rata rent spread on Small Shop Occupancy, Largest QoQ Gain in 15+ Years Leased comparable new leases +170bps YoY; all-time high 3.2% 6.0x 8.7 YR $2.7B+ Net Debt to EBITDA on a Debt Maturity Immediate S
Slide 7: Operations Update
Operations Update KIMCO REALTY® AT A GLANCE Occupancy Rent Per Square Foot Reapproaching All-Time Highs $20.32 96.4% $19.66 96.2% $19.12 95.8% 95.7% $17.99 $18.19 $17.35 94.4% 93.9% 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Comparable Leasing Spreads Same-site NOI 52 Consecutive Qu
Slide 8: Solid Fundamentals
Quail Corners Charlotte, NC Solid Fundamentals Investor Presentation | Fourth Quarter 2023 8
Slide 9: Favorable Outlook for Shopping Centers
Favorable Outlook for Shopping Centers SOLID FUNDAMENTALS • Open-air brings 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 outp
Slide 10: 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 are expected to remain well below the historical average3 “…retail space per capita in the 45 12,000 11,306 larges
Slide 11: Expanding Retailers
Expanding Retailers SOLID FUNDAMENTALS 49% of retailers plan to expand over the next 5 years, up from 40% in 20161 Tenants Expanding Today2 Substantial Demand3 Grocer Health/Beauty Products Personal Services Over 85% of 2023 planned openings favor open-air formats3 Category Retailers Locations Disco
Slide 12: Grocery Advantage
Grocery Advantage SOLID FUNDAMENTALS Current Remaining Highly Productive Grocers, Grocery Anchored / Component 85% Non-Grocery Above the Peer Group1 Average ~$800/SF GOAL 82% of ABR AVG Grocery Sales CURRENT in our centers2 Stronger Grocery Portfolio Metrics ~ 2.4% YOY +/- 70 BPS ” Higher recurring
Slide 13: 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 “Omni services…continue to drive strong growth
Slide 14: Synergy in Retail: Physical Stores Matter
Synergy in Retail: Physical Stores Matter SOLID FUNDAMENTALS Physical Stores Boost Online Sales1 Digital Natives Are Opening Physical Stores2 6.9% Sales Boost After Store Open ”…high online advertising and shipping Physical Stores are “a way to costs made it impossible to be build community and buil
Slide 15: Retailers are Going Off-Mall
Retailers are Going “Off-Mall” SOLID FUNDAMENTALS Shift to Open-Air “You know where your customer is buying and where they Dania Pointe live…We’re looking at this digital shipping data, and we just Dania Beach, FL [put] a store down in the middle of it.”1 “…will open 30 new small-format stores by th
Slide 16: Embedded Future ABR Growth
Embedded Future ABR Growth SOLID FUNDAMENTALS Leased To Economic Occupancy Spread = Visible Future Cashflow Growth All-time high 97% 96.2% 96.0% Spread Translates To 96% 95.6% 95.7% 95.8% 95.8% 95.5% ~$57M of ABR with ~$15-20M 95.3% 95.1% cash flow for full year 2024 94.6% 94.7% 95% 94.4% 93.9% 93.9
Slide 17: High Quality, Diversified Portfolio
San Marcos Plaza San Marcos, CA High Quality, Diversified Portfolio Investor Presentation | Fourth Quarter 2023 17
Slide 18: Strong Tenant Base
Strong Tenant Base HIGH QUALITY, DIVERSIFIED PORTFOLIO Top Tenants By ABR S&P/MOODY’S A/A2 3.7% A/A2 2.1% 18 released at +43% spread BB+/Ba2 1.9% BBB+/A2 1.9% AA/A1 1.8% • Recapturing a below market portfolio • Upgrading tenant mix to drive traffic at our centers • Limiting downtime and capex by bac
Slide 19: 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 (quick serve, fast casual and full service) • Goods and Services (dollar stores, electronics, liquor/tobacco) • Medical & fit
Slide 20: 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 21: Local Tenant Exposure
Local Tenant Exposure HIGH QUALITY, DIVERSIFIED PORTFOLIO 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 • Restaurants 4% 4% (quick serve, fast casual Apparel an
Slide 22: Accretive Capital Allocation
Merrick Commons Merrick, NY Accretive Capital Allocation Investor Presentation | Fourth Quarter 2023 22
Slide 23: Value Creation Through Redevelopment
Value Creation Through Redevelopment ACCRETIVE CAPITAL ALLOCATION Anaheim Plaza, Anaheim, CA Other Notable Retail Completions During 2023 Before Current Building Description Meadowbrook Backfill former Modell's with Burlington Commons Copperwood Backfill former Shoe Expo with dd's Discounts (Ross St
Slide 24: Mixed-Use Drives Multiple Benefits
Mixed-Use Drives River Oaks S.C. Houston, TX Multiple Benefits • ACCRETIVE CAPITAL ALLOCATION Inflation Hedge • Residential leases = short duration leases that regularly mark-to-market including Cash Flow • Offers a higher CAGR than retail-only sites • Enhances property valuation with lower blended
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: 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: ~$125M to $210M additional value from land entitled for the development of 7,595 multi-family residential units
Slide 27: Kimco Plus & Structured Investments: Opportunistic Investments
Kimco Plus & Structured Investments: ACCRETIVE CAPITAL ALLOCATION Opportunistic Investments Decades of retail property experience, financial acumen, and strong retailer relationships unlock real estate value for both retailers and property owners Kimco Plus: Albertsons (NYSE: ACI) Monetization • $19
Slide 28: Significant Financial Strength
Airport Plaza Farmingdale, NY Significant Financial Strength Investor Presentation | Fourth Quarter 2023 28
Slide 29: Strategic Targets
Strategic Targets SIGNIFICANT FINANCIAL STRENGTH Financial & Operating Targets 3.0-5.0% 85% AFFO/SHARE ABR FROM GROCERY GROWTH RATE ANCHORED PORTFOLIO 2020-2023: >8% CAGR 4Q23: 82% 2.5%+ 15% SAME PROPERTY NOI ABR FROM MIXED-USE GROWTH RATE PORTFOLIO 4Q23: 3.2% 4Q23: 13% 6.0-6.5x1 12,000 LOOK-THROUGH
Slide 30: Financial Capacity to Support Growth
Financial Capacity to Support Growth: SIGNIFICANT FINANCIAL STRENGTH $2.8 Billion COMMITTED TO SOURCES USES ▪ Investment grade credit rating of: ▪ ACI Stock: ~14.2M shares remain ▪ 2024: $646M of unsecured debt BBB+ S&P / Baa1 Moody’s (valued at $326.8M as of 12/31/23) and $12.2M of mortgage debt ▪
Slide 31: 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) 3.67%1 5.06%1 3,500 Cash and cash equivalents Floating Rate (0.2% of outstanding
Slide 32: ESG Leadership
The Summit at Scottsdale Scottsdale, AZ ESG Leadership Investor Presentation | Fourth Quarter 2023 32
Slide 33: ESG Strategic Areas of Focus
ESG Strategic Areas of Focus ESG LEADERSHIP Pillars Strategy COMMUNICATE Regularly engage with key stakeholders, reporting Openly With relevant information on pertinent issues Kimco ESG Stakeholders Report EMBRACE Foster a sense of place at our shopping centers, creating The Future people-centered p
Slide 34: Recent Results & Recognition
Recent Results & Recognition ESG LEADERSHIP Pillars Recent Results Recognition Awarded Nareit's 2023 “Leader in COMMUNICATE Retained position as constituent of Dow Jones® the Light” Award for outstanding the DJSI North America Index for Nareit ® Sustainability Indices Openly With ESG practices withi
Slide 35: Appendix
Alabama Shepherd S.C. Houston, TX Appendix Investor Presentation | Fourth Quarter 2023 35
Slide 36: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures APPENDIX (Unaudited, in thousands) Net Debt/EBITDA Calculations Net income/(loss) $ 142,113 Interest 67,797 Net Debt / EBITDA Calculation Depreciation and amortization 124,282 Gain on sale of properties (22,600) Net Debt $ 6,833,039 Gain on sale of joint venture p
Slide 37: 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 December 31, Year Ended December 31, 2023 2022 2023 2022 Net income/(loss) available to the company's common shareholders $ 133,360 $ (56,086) $ 629,2
Slide 38: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures APPENDIX (Unaudited, in thousands) Same Property NOI Reconciliation (1) (2) Three Months Ended December 31, Year Ended December 31, 2023 2022 2023 2022 Net income/(loss) available to the company's common shareholders $ 133,360 $ (56,086) $ 629,252 $ 100,758 Adjust
Slide 39: Investor Presentation | Fourth Quarter 2023
Stonebridge at Potomac Town Center Woodbridge, VA Investor Presentation | Fourth Quarter 2023
Kimco Realty Corporation (HC) — Q4 2023 Earnings Presentation on 6ix