Feb 1, 2017 - Store. 1% Department Stores. 2% Electronics. 2% Office Supply Stores. 1% Books ..... SIGNATURE SERIES. The
KIMCO’S 2020 VISION
INVESTOR Presentation Fourth Quarter 2016
SAFE HARBOR The statements in this presentation, including targets and assumptions, state the Company’s and management’s hopes, intentions, beliefs, expectations or projections of the future and are forward-looking statements. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from current expectations include the key assumptions contained within this presentation, general economic conditions, local real estate conditions, increases in interest rates, foreign currency exchange rates, increases in operating costs and real estate taxes. Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the Company’s SEC filings, including but not limited to the Company’s Annual Report on Form 10-K. Copies of each filing may be obtained from the Company or the SEC.
Suburban Square, Philadelphia, PA
Cover: Corsica Square, Miami, FL
KIMCO’S 2020 VISION
PORTFOLIO QUALITY
NAV CREATION
FINANCIAL STRENGTH
High-quality assets, tightly clustered in major metro markets that provide multiple growth levers
Increase net asset value (NAV) through redevelopment, select ground-up development and active investment management
Maintain a strong balance sheet and financial flexibility, on a path to A-/ A3 credit rating
3
3
KIMCO’S HISTORY TSR Since IPO1
Dividend Growth
11/29/91 – 12/31/16 2 $1.08* $1.08
12.7% $0.84 10.6%
KIM
$0.64
$0.72
$0.90
$0.96
$1.02
$0.76
9.6%
DJIA S&P 500 2010
1958 – Founded by Milton Cooper & Marty Kimmel 1991 – IPO that launched the “Modern REIT Era” 2006 – Named to the S&P 500 Index
2011
2012
2013
2014
2015
2016
2017
• 524 U.S. properties totaling 85M square feet in 34 states and Puerto Rico • Total Enterprise Value – $16.7 billion Information as of 12/31/2016 1 Source: Bloomberg 2 Quarterly dividend annualized
4
CASE FOR OPEN-AIR REAL ESTATE Today’s Market Low Supply is Driving Kimco ABR
New Supply Near 38-Year Low Shopping Center Supply Growth (GLA)1
Kimco Pro-rata ABR/SF 10 year CAGR is over 4% $15.08
12%
$14.46 10%
$13.74 $12.99
8%
$12.58 6%
$11.29
$11.52 $11.66
$11.91
$10.97
4%
$9.94
2%
0%
4Q06
4Q07
4Q08
4Q09
4Q10
4Q11
4Q12
4Q13
4Q14
4Q15
4Q16
U.S. retail market occupancy increased with net absorption totaling 43.1M sf during 3Q162
1 Green
Street Advisors January 2016 Group, “The CoStar Retail Report: National Retail Market” Third Quarter 2016
2 CoStar
5
SWEET SPOT OF RETAILING Market Cap ($B): Off-Price Retailers vs. Department Stores 2007
Macy's $21
4Q, 2016
Ross Stores $5
Macy’s $11 TJX $13
Ross Stores $26
Nordstrom $8 Off-Price Total:
$18B Nordstrom $15
Sears $27
JC Penney $19
Off-Price Total:
$75B
Sears $1
Department Stores Total:
Department Stores Total:
$85B
$26B TJX $49
Source: Bloomberg
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PORTFOLIO QUALITY
Riverplace, Jacksonville, FL
PORTFOLIO QUALITY Highly Concentrated in Major Metropolitan Markets
Seattle Portland
12 22
Denver
Minneapolis/St. Paul St. Louis Chicago
ABR Contribution Pittsburgh
San Francisco Sacramento San Jose
8
4
Los Angeles Orange County San Diego
1 19
9 17
6 10
Phoenix
21 Dallas Austin
2
20
16
3
Boston
13
18
14
New York Philadelphia Baltimore Washington D.C. Raleigh-Durham
Major Markets 1-5
14%
Major Markets 6-10
16%
Major Markets 11-22
21%
Other Markets
Charlotte Orlando
11 7 Atlanta 15 Houston 5 Tampa
49%
Miami Fort Lauderdale West Palm Beach
* Rankings for Kimco’s top 22 major metropolitan markets by percentage of ABR as of 12/31/2016 are denoted on map. ABR is defined as Annual Base Rent.
8
PORTFOLIO QUALITY Tenant Diversity Top Tenants % of ABR – Only 14 tenants with an ABR exposure greater than 1.0%
SCALE:
Approximately 8,800
STABILITY:
leases with 4,100 tenants
Well staggered lease maturity; averages
~8% of GLA each year for next 10 years
QUALITY: ~56% of ABR from the top 50 tenants is attributed to tenants with investment grade credit ratings
SECURITY:
Single tenant exposure no more than 3.4%
of total ABR;
low ABR with strong mark to market upside
3.4% 2.4%
2.1%
2.0%
1.8%
1.7%
1.6%
1.4%
1.3%
1.2%
1.1%
As of 12/31/2016
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PORTFOLIO QUALITY Necessity Based Goods and Services
Internet Resistant 54%
% of ABR
15% Grocery/ Warehouse Clubs
12% Restaurants
Omni-Channel Players 41%
Internet Vulnerable
5%
% of ABR
% of ABR
9%
Service
8%
Off-Price
5%
Other – Internet Resistant
9%
Home Improvement/ Home Goods
3%
Health Clubs/ Fitness
7%
Apparel/ Accessories
2%
Medical
6%
Sporting Goods/ Hobbies
5%
Pharmacy/ Personal Care
5%
Other – Omni Channel
2%
Electronics
3%
Banking/ Finance
2%
Office Supply Stores
3%
Mass Merchandiser
1%
Books
2%
Off-Price Dept. Store
1%
Department Stores
72% of ABR from Grocery Anchored Centers
As of 12/31/2016
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PORTFOLIO QUALITY Multi-Year Highs and Continued Growth in Operating Metrics Occupancy 4Q16 95.8%
4Q15 4Q14
95.7%
4Q13 4Q12 93.1%
Annual Same Property NOI Growth
3.8% 2.5% 1.1%
15.6% 27.8% 3.6%
Rent Per Square Foot 3Q16 4Q16 4Q15 4Q15
3.3%
2012
2011
2.8%
3.1%
2013
19.5%
2014
2011
2014
25.0%
2012
93.9%
2016 2015
29.3%
2016 2015 2013
94.9%
4Q11
Annual New Leasing Spreads
95.4%
4Q14 4Q14 4Q13 4Q13 4Q12 4Q12 $12.58 4Q11 4Q11 $11.91
$14.46$14.46 $13.74 $12.99
$15.08
$13.74 $12.99 $12.58 $11.91 Note: All figures are at Kimco’s share
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PORTFOLIO QUALITY Quality Leads to Multiple Growth Levers
NOI Growth Walk Through 2020
140 -165 bps
Organic Growth (Rent Bumps)
110 -160 bps
Leasing & Value Creation
100 -150 bps
Redevelopment
435 -585 bps
85 -110 bps
Ground-Up Development
Targeted Annual Growth Rate
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PORTFOLIO QUALITY Building Blocks of NOI Growth
$10M $55M $80M $50M
U.S. Portfolio
$65M
$935M
Organic Growth
Net Acquisitions2
Ground-Up Development
Redevelopment Pipeline
$1.2B
Rent Spreads/ Lease-up/ Value Creation
2015 BASE 1
2020E 1 2015
is based on U.S. portfolio at 12/31/15 NOI in excess of dispositions
2 Acquisition
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PORTFOLIO QUALITY Growth through Leasing & Value Creation 92.0%
91.0%+
Small Shop Occupancy
90.0%
89.9%
Progress to Date
88.7%
88.0%
88.0%
• Improved small shop ABR = $26.19 psf
• Small shop spreads for last four quarters • New Leases = +9.4% • Renewals & Options = +8% • Driving force behind occupancy: • Restaurants • Personal-care services • Medical uses • Mobile operators
86.0%
85.2% 84.0%
82.0%
84.2% 82.5%
80.0%
78.0% 4Q11
4Q12
4Q13
4Q14
4Q15
4Q16
2020 Goal
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PORTFOLIO QUALITY Unmatched Mark to Market Opportunities Anchor Mark
Anchor Mark
Top 10 Core Markets
to Market Chicago
to Market New York
+40%
+65%
13 2% 119K
65 13% 187K
San Francisco, Sacramento, San Jose
Philadelphia, Baltimore, Washington D.C.
sites ABR
sites ABR
Population
+31%
Population
+114%
24 5% 172K sites
71 16% 102K
Los Angeles, Orange County, San Diego
Raleigh-Durham
ABR
Population
sites ABR
+62%
53 10% 163K Population
8
sites ABR Phoenix
+51%
13 4% 135K sites ABR
Population
+35%
10 2% 87K sites ABR
Population
Houston
+45%
11 4% 94K sites ABR
Population
+21%
2% 66K
sites ABR Dallas
Population
Population
Miami, Ft. Lauderdale, West Palm Beach
+82%
29 5% 148K sites ABR
Population
15
PORTFOLIO QUALITY Growth through Leasing & Value Creation $20
$19.21
$18
$15.50
$ABR/SF
$16
$15.41 +66.4%
$14.42 $14
Anchor Lease Spreads/Mark To Market
$16.79
+43.4
$12.53 +37.6%
+44.0% +43.5%
$12
+34.9% $11.70
$11.27
$11.55
Mark to Market Spread on Anchor Leases: +66%
68 Naked Leases1 expiring through 2018 totaling 1.3M
5 Kmart Leases expiring through 2018: 362% market upside
Total Average RPSF up 31% since 2010
sf
$10.70
$10 $10.05 $9.28 $8 2013 Actual
2014 Actual
2015 Actual
New Rent
2016 Actual
Expiring Rent
2017-18E
2019E & After
Projected Rent
1
Naked Leases are defined as leases with no remaining options
16
NAV CREATION
Crossroads Plaza, Raleigh, NC
NAV CREATION: REDEVELOPMENT Highest and Best Use Total Pipeline | $3.0B+
Current*: ~$800M+
Future: ~$2.0B+
$50M
$370M
Projected NOI
Value Creation
Mixed-use densification options: – Partner with best in class developer – Ground Lease – Sell Redevelopment projects involve changing the footprint of the shopping center or changing the total center GLA
Incremental Return: 8%-13% Note: All figures are at Kimco’s share *Current pipeline includes current projects as well as those in the design and entitlement phase
18
NAV CREATION: REDEVELOPMENT Growth through Redevelopment Spending ($M) $250
$250
$200 $200
$175
$175
$150
$102 $100
$50
$80
$72
$27
$2013A
2014A
2015A
2016A
2017E
2018E
2019E
2020E Note: All figures are at Kimco’s share
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NAV CREATION Growth through Selective Ground-up Development Pipeline
Current
$514M
Projected ROIC
7%-9%
Dania Pointe, Dania Beach, FL
Development Approach
Risk Management
Retailer demand-driven
~75% Pre-leased to build
Building additional concentration
Phased construction
Build to own
Experienced team
20
FINANCIAL STRENGTH
Davidson Commons, Charlotte, NC
2020 VISION – BALANCE SHEET STRENGTH Strong liquidity position ($2.25B available from unsecured line of credit) Large unencumbered asset pool (70% properties are currently unencumbered) Lower Net Debt/Recurring EBITDA leverage levels
5.0x – 5.5x
• Consolidated
• Pro rata (including preferreds)
6.4x – 6.9x
Fixed Charge Coverage 3.0x+ (currently 3.7x) Extended WAVG debt maturity profile (3Q2015 - 4.3yrs; 4Q2016 -
8.7yrs)
Committed to strong investment grade ratings S&P: BBB+
|
Moody’s: Baa1
| Fitch: BBB+
25
22
STRONG CAPITAL STRUCTURE Today
Capital Activity Highlights
5% 1% 7%
24%
Feb. 1, 2017: Secured new
Total Enterprise Value:
Common Equity
$2.25B unsecured revolving credit
Unsecured Debt
facility, final maturity 2022
Mortgage Debt
$16.7B
Preferred Stock 64%
Non-controlling Interest
Nov. 1, 2016: Completed $400M note at 2.7% due 2024 and $350M notes at 4.125% due 2046
Note: As of 12/31/2016
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WELL-STAGGERED DEBT MATURITIES Joint Venture Debt
Consolidated Debt Fixed Rate Floating Rate WAVG Term
1,200
4.06%* 1.77%* 8.7 Yrs*
27% 1,200
13% 13% 9%
8%
8%
Debt in Millions
Debt in Millions
5.08%* 2.60%* 4.0 Yrs*
900
900
600
Fixed Rate Floating Rate WAVG Term
8% 7%
600
17%
7% 300
300
22% 12% 13%
11%
10% 7%
3% 0%
0% 0
5%
0
Secured
Unsecured
Line of Credit
Term Loan
Kimco’s Share
Partner’s Share
*Weighted average Note: Percentages are annual maturities of total debt stack
24
2020 VISION – LEVERAGE VIEW 6.0x
3.6x 5.9x
3.6x
3.5x
5.8x 3.5x
5.4x 5.5x
3.4x
5.2x 3.0x
2015A
2016A
2017E
2018E
2020E
Net Debt/ Recurring EBITDA
Recurring Fixed Charge Coverage
2019E
Grow Recurring EBITDA & Funds Available for Distribution (after common dividends)
Opportunistic use of ATM program
Development/Redevelopment spending $250M - $450M per year
Exited Canada
Modest net acquirer
Monetize Albertsons investment
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A LOOK BACK
$1.08*
$1.50
$1.46
Consistently Raised Dividend Commensurate With Recurring FFO/ Share Growth
$1.40
Maintained a ~5% Recurring FFO CAGR Through Our Transformation
$1.33
Dividends
$1.26
Funds From Operations
$1.20
$1.14
Multiple Years of Growth
$1.02 $0.96 $0.90 $0.84 $0.76 $0.72 $0.64
2010
2011
2012
2013
2014
2015
Headline FFO
2016
2010
2011
2012
2013
2014
2015
2016
2017
Conservative FFO Payout Ratio *Quarterly dividend annualized
26
2017 GUIDANCE 2017 Guidance (per diluted share)
EPS
$0.64 - $0.67
FFO
$1.50 - $1.54
FFO as Adjusted*
$1.50 - $1.54
2017 Operational Assumptions Transactional Income/ (Expense), net
$0
U.S. Portfolio Occupancy
95.8% - 96.2%
U.S. Same Site NOI Growth
+2.0% - +3.0%
Operating Property Acquisitions
$300 million - $400 million
Operating Property Dispositions
$250 million - $350 million *Excludes transactional income/(expense), net Note: All figures are at Kimco’s share
27
APPENDIX
The Marketplace at Factoria, Bellevue, WA
RECONCILIATION OF FFO TO NET INCOME FFO ($M)
FFO/Share (1)
2016A
2017E
2016A
2017E
FFO
$556
$640 - $657
$1.32
$1.50 - $1.54
Depreciation and amortization
(347)
(342) - (354)
(0.83)
(0.80) - (0.83)
Depreciation and amortization real estate JVs(2)
(45)
(38) - (46)
(0.11)
(0.09) - (0.11)
Gain on disposition of operating properties
93
9 – 21
0.22
0.02 - 0.05
Gain on disposition of JV operating properties, and change in control of interests
218
4–8
0.52
0.01 - 0.02
Impairments of operating properties
(102)
0–0
(0.24)
0–0
Benefit/(Provision) for income taxes(3)
(40)
0–0
(0.09)
0–0
0
0–0
0
0–0
$333
$273 - $286
$0.79
$0.64 - $0.67
Noncontrolling interests(3) Net income available to common shareholders
(1) Reflects diluted per share basis and the operational impact if certain units were converted to common stock at the beginning of the period (2) Net of non-controlling interests (3) Related to gains, impairments and depreciation on operating properties, where applicable
29
SIGNATURE SERIES
The Boulevard, Staten Island, NY
SHOPPES AT WYNNEWOOD Completed Ground-up Development Project Summary
Phase I: 45K sf Whole Foods
Phase II: 10K sf small shops
Location: ─ “Main Line” area in the Philadelphia-Camden-Wilmington MSA ─ Located 1 mile from Kimco’s Suburban Square – flagship property (~$900 sales psf)
Average Household Income over $105K
Timing & Economics
Phase I: Total costs = $27.5M Date completed = 3Q 2016 Phase II: Total costs = $10.9M Date Completed = 1Q 2016
31
GRAND PARKWAY MARKETPLACE Ground-up Development Project Summary
Phase I
Phase II
Phase I: 488K sf open-air center anchored by Target
Phase II: 255K sf open-air center
Location: ─ Houston-The Woodlands-Sugar Land MSA ─ Near Exxon Corporate Campus (>10k employees) ─ 168k people (5 mile radius) ─ Avg. household income >$100k (5 mile radius)
Phase I is 74% pre-leased
Timing & Economics
Phase I: Estimated costs = $87.0M Estimated completion = 2017 Phase II: Estimated costs = $52.0M Estimated completion = 2018
32
DANIA POINTE Ground-up Development Project Summary
Phase I: 320K sf modern open air retail
Phase II: 490K sf fast fashion lifestyle centerl anchored by H&M, restaurants, and entertainment in a “Main Street” setting with two hotel towers, residential, and office space
Location:
Phase II
Phase I
108 acres on I-95 in Dania Beach, FL (5 miles south of Fort Lauderdale) Project adjacent to Kimco’s 900K sf Oakwood Plaza S.C.
Timing & Economics
Phase I: Estimated costs = $109.0M
Estimated completion = 2018
33
PROMENADE AT CHRISTIANA Ground-up Development Project Summary
Develop 435k sf open-air center
Location: ─ New Castle County, Delaware ─ Fronting one half mile of I-95 ─ 1/2 mile from GGP’s Christiana Mall which produces sales of $1,200 psf ─ Destination shopping market due to no sales tax
Timing & Economics
Estimated costs = $64.0M
Estimated completion = 2018
34
OWINGS MILLS Ground-up Development Project Summary
Develop 615K sf open-air center (de-malling)
Location: ─ Baltimore-Columbia-Towson MSA ─ Direct access ramp to 795 which connects Carrol County with Baltimore County ─ Mass transit access within walking distance of the property
Timing & Economics
Estimated Costs = $108.0M
Estimated Completion = 2019
35
WILDE LAKE – COLUMBIA, MD Completed Mixed Use Redevelopment The Project • Total Project Costs*: $18.9M • Anticipated Stabilization*: 2016
Original Village Center – located ½ mile from “Downtown”
Strategically located market with minimal class A residential
Specialty grocer located at project
Favorable entitlement process implemented, easing future entitlements in same markets
Redeveloped existing retail and newly constructed:
32,000 sf retail 15,000 sf office 230 residential units Ground leased residential structure
Future Projects • 4 additional Columbia village centers for redevelopment • Total Project Costs: $300M-320M • Value Creation: $150M-200M
• Value Creation*: $14.1M • Incremental ROI*: 8%
*Includes Starbucks
36
PENTAGON CENTRE – PENTAGON CITY, VA In Progress Redevelopment
Gross Costs (Phase I): $164.5M
Incremental NOI: $10.1M
Incremental ROI: 6%-7%
Incremental Value Creation:
$66.9M
Multi-phase project with first phase expected to be completed in 2019
Above grade retail parking structure (426 spaces)
Develop two residential towers: 440 units (Tower I) 250 units (Tower II), and modernize existing retail
Located in Washington D.C. MSA, #7 in U.S.
Site sits above Pentagon City Metro
After
Before
A B C D
37
THE BOULEVARD – STATEN ISLAND, NY Future Redevelopment
Gross Costs: $173.5M
Incremental NOI: $11.0M
Incremental ROI: 6%-7%
Incremental Value Creation: $71.1M
Before
Trophy NY metro asset
Leasing overflow to other cluster assets
Transformative, innovative site plan design -
Maximize density
-
Improve parking efficiency
-
Enhance visibility & signage
-
Accommodate anchor prototypes
After
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CORPORATE SUSTAINABILITY Established Priorities
Operational Leadership
Tenant Partnerships
Tangible Results
Transparency & Leadership
Common Area Energy Consumption
129,826
131,946
120,099 113,108
Stakeholder Engagement
110,330
15%
2011
2012
2013
MWH consumed
Quality Team
Community
2014
2015
#1 Retail Owner, 2016 Newsweek Top Green Companies in the U.S. Sole Retail Owner, 2016 Dow Jones Sustainability North America Index 2014 - 2016 GRESB Green Star
2014 CDP Climate Disclosure Leadership
39
KIMCO NOTES
KIMCO NOTES
KIMCO NOTES
