Kimco Realty (KIM) investor relations material

Operating environment and portfolio transformation

• Retail sector supply remains extremely limited, with only 0.2% of stock under construction, supporting high occupancy and leasing momentum.

• Small shop occupancy reached an all-time high of 93%, while anchor occupancy remains 110 basis points below its peak, indicating further upside.

• Portfolio transformation has increased grocery-anchored centers to 87%, with 28 grocery stores under construction, enhancing merchandising and traffic.

• Traffic counts are up over 3% year-over-year, driven by convenience and necessity-based retail, with diverse tenant demand including medical and wellness uses.

• 9% of Annual Base Rent comes from flat ground leases, providing opportunities to recycle capital into higher-growth assets.

Financial performance and capital allocation

• Achieved over 5% FFO growth and 3% same-site NOI growth for three consecutive years, supported by an A-/A3 credit rating.

• SNO (signed but not open) pipeline represents 400 basis points of occupancy and $75 million in untapped annual base rent.

• Asset sales at low cap rates (around 5%) allow reinvestment at higher yields, with ground lease dispositions expected to reach $150 million this year.

• Multifamily entitlements (over 12,000 units) are monetized through joint ventures and sales, using 1031 exchanges to defer taxes and redeploy capital.

• Structured investment program delivers high single-digit to low double-digit yields, with rights of first offer on quality assets.

Market dynamics and growth levers

• Retailers are aggressively pursuing store openings through 2027–2028, with high retention rates and improved economics for landlords.

• Lease terms have become more landlord-friendly, with reduced co-tenancy provisions and increased percentage rents.

• Mark-to-market opportunity remains significant, with 65% of anchor rents below market and limited new supply constraining competition.

• Growth levers include structured investments, redevelopment, multifamily monetization, and asset management to enhance margins and NOI.

• Balance sheet strength and liquidity enable opportunistic buybacks and capital deployment, while maintaining A-/A3 ratings.