Kimco Realty Corporation (hc) · NYSE:KIM
Kimco Realty Corporation (hc) — Q1 2023 Earnings Presentation
38 slides from Kimco Realty Corporation (hc)'s earnings presentation, Apr 27, 2023
Slide 1: Investor Presentation First Quarter 2023
Investor Presentation First in Last Mile Retail First Quarter 2023
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 Palms at Town and Country Miami, FL 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 dive
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 Seattle 84% Coastal and Sun Belt Markets Portland Boston 1 New York 2% Other Ma
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% 1Q23: 81% 2.5%+ 15% SAME PROPERTY NOI ABR FROM MIXED-USE GROWTH RATE PORTFOLIO 1Q23: 1.4% 1Q23: 13% 6.0-6.5x 12,000 LOOK-THROUGH MULTI-FAMILY
Slide 6: 1Q Snapshot
1Q Snapshot KIMCO REALTY® AT A GLANCE 95.8% 4.5M +44.0% 6.2x Operating Portfolio Square Feet Pro-rata rent spread on Net Debt to EBITDA on a Occupancy Leased comparable new leases in 1Q Look-through basis1 1.4% +70bps 9.3 YR $2.3B+ SSNOI Growth Growth in Small Shop Debt Maturity Immediate over 1Q22
Slide 7: Operations Update
Operations Update KIMCO REALTY® AT A GLANCE Occupancy Rent Per Square Foot Reapproaching All-Time Highs 96.4% $19.86 $19.12 $19.22 $19.31 $19.43 $19.66 95.8% 95.8% $17.99 $18.19 95.7% $16.29 95.3% 95.1% 94.7% 94.4% 93.9% 2018 2019 2020 2021 1Q22 2Q22 3Q22 4Q22 1Q23 2018 2019 2020 2021 1Q22 2Q22 3Q22
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 | First 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 A dramatic drop in new retail supply over the last 13 years1 “Store closings in 2023 continue on the record low pace reported in 2022”3 300M 12,000 11,306 10,000 9,670 250M “As a percentage
Slide 12: Grocery Advantage
Grocery Advantage SOLID FUNDAMENTALS Current Remaining Highly Productive Grocers, Grocery Anchored / Component Non-Grocery Above the Peer Group1 Average 81% of ABR CURRENT 85% GOAL ~$770/SF AVG Grocery Sales in our centers2 Store proximity remains key as click-and-collect Stronger Grocery Portfolio
Slide 13: 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 Dania Beach, FL seeing that strategy work.”1 “The shift is part of a strategy…to open "off-mall, smal
Slide 14: Omni-Channel: First In Last Mile
Omni-Channel: First In Last Mile SOLID FUNDAMENTALS ““…>96% of all sales including digital are [fulfilled by stores]…” 1 If we get a physical stores shopper to start shopping online they spend 2.5x as much but also frequent the stores more often.2 31% of digital orders in 2022 were fulfilled by stor
Slide 15: Operational Momentum
Operational Momentum SOLID FUNDAMENTALS Leased To Economic Occupancy Spread = Visible Spread Translates Future Cashflow Growth To ~$46M of ABR with ~$23M to flow by end of 2023* All-time high 97% 96.4% Net Effective Rents 96.0% 96% 95.6% 95.7% 95.8% +6% for 1Q23 vs. Trailing 12 Months 95.3% 95.1% 95
Slide 16: High Quality, Diversified Portfolio
Publix at Princeton Lakes Atlanta, GA High Quality, Diversified Portfolio Investor Presentation | First Quarter 2023 16
Slide 17: Strong Tenant Base
Strong Tenant Base HIGH QUALITY, DIVERSIFIED PORTFOLIO Top Tenants By ABR Expanding Tenants1 S&P/MOODY’S Grocer Health/Beauty Products Personal Services A/A2 3.7% A/A2 2.1% AA/A1 1.9% BB/Ba2 Off Price Retail Sporting Goods Fitness 1.9% BBB+/A2 1.9% / B+/B1 1.6% BBB+/Baa1 1.5% Large Format Restaurant
Slide 18: Anchor & Small Shop Tenant Exposure
Anchor & Small Shop Tenant Exposure HIGH QUALITY, DIVERSIFIED PORTFOLIO 46% 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 19: 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 Restaurant Brands
Slide 20: Local Tenant Exposure
Local Tenant Exposure HIGH QUALITY, DIVERSIFIED PORTFOLIO 22% 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: • Restaurants, including Hobby/Pet Grocery/Pharmacy quick serve, fast
Slide 21: Accretive Capital Allocation
Village Plaza at Bunker Hill Houston, TX Accretive Capital Allocation Investor Presentation | First Quarter 2023 21
Slide 22: 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 23: Disciplined Mixed-Use Redevelopments to Drive NOI Growth
Disciplined Mixed-Use Redevelopments to ACCRETIVE CAPITAL ALLOCATION Drive NOI Growth ACTIVE PROJECT FUTURE OPPORTUNITY FUTURE OPPORTUNITY SUBURBAN SQUARE: Coulter Ave. EAST BANK S.C. WESTLAKE S.C. (South Phase) Ardmore, PA (Philadelphia MSA) Aurora, CO (Denver MSA) Daly City, CA (San Francisco MSA)
Slide 24: Value Creation Through Redevelopment
Value Creation Through Redevelopment ACCRETIVE CAPITAL ALLOCATION Kentlands Marketplace, Gaithersburg, MD Whole Foods anchored The Boulevard, Staten Island, NY Shop Rite anchored Before Before 13.2% Return Redevelop Main Street with restaurants and boutique retailers 14% Return Upgrade façade and te
Slide 25: 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: ~$100M to $180M additional value from land entitled for the development of 6,581 multi-family units (~$20K to $4
Slide 26: 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 - Monetization • $194.1M special
Slide 27: 2023 Capital Allocation Priorities
2023 Capital Allocation Priorities ACCRETIVE CAPITAL ALLOCATION Third Party Acquisitions, Partnership Buyouts & Structured Investments +/- $100M Net of dispositions Leasing and Capex Costs $200M TO $250M Including tenant improvements, leasing commissions and landlord work ~$10 to $15 million earmark
Slide 28: Significant Financial Strength
Hilltop Village Center Alexandria, VA Significant Financial Strength Investor Presentation | First Quarter 2023 28
Slide 29: $2.3+ Billion of Financial Capacity to Support Growth
$2.3+ Billion of Financial Capacity to SIGNIFICANT FINANCIAL STRENGTH Support Growth COMMITTED TO SOURCES USES ▪ Investment grade credit rating of: ▪ ACI Stock: Received $194.1M special ▪ ~$12M mortgage debt maturing in BBB+ S&P / Baa1 Moody’s dividend in Jan. 2023; Monetized 2023 $137.4M in Q1 & $1
Slide 30: 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 Proceeds from ACI monetization Fixed Rate (99.7% of outstanding Cons. Debt) 3.49%1 4.92%1 2,800 FCF after dividends and leasing capex Floating Rate (0.3% of
Slide 31: ESG Leadership
Mendenhall Commons Memphis, TN ESG Leadership Investor Presentation | First Quarter 2023 31
Slide 32: 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 Our Stakeholders to those audiences Kimco ESG Report EMBRACE Foster a sense of place at our shopping c
Slide 33: Recent Results & Recognition
Recent Results & Recognition ESG LEADERSHIP Recognition and Partnerships Our Pillars Recent Results Recognition COMMUNICATE Awarded Nareit's 2022 “Leader in the Retained position as a constituent of Dow Jones® Sustainability Indices Nareit ® Openly With Light” Award for outstanding ESG the DJSI Nort
Slide 34: Appendix
Westminster Center Westminster, CA Appendix Investor Presentation | First Quarter 2023 34
Slide 35: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures APPENDIX (Unaudited, in thousands) Net Debt/EBITDA Calculations Net income/(loss) $ 293,776 Interest 61,306 Net Debt / EBITDA Calculation Depreciation and amortization 126,301 Gain on sale of properties (39,206) Net Debt $ 6,823,158 Gain on sale of joint venture p
Slide 36: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures APPENDIX (Unaudited, dollars in thousands, except per share data) FFO/Share Reconciliation (1) 2023 Three Months Ended March 31, 2022 Net income available to the company's common shareholders $ 283,512 $ 230,948 Gain on sale of properties (39,206) (4,193) Gain on
Slide 37: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures APPENDIX (Unaudited, in thousands) Same Property NOI Reconciliation (1) (2) Three Months Ended March 31, 2023 2022 Net income available to the Company's common shareholders $ 283,512 $ 230,948 Adjustments: Management and other fee income (4,554) (4,595) General an
Slide 38: Investor Presentation | First Quarter 2023
Publix at Princeton Lakes Atlanta, GA Investor Presentation | First Quarter 2023
Kimco Realty Corporation (HC) — Q1 2023 Earnings Presentation on 6ix