KIMCO’S 2020 VISION INVESTOR Presentation First Quarter 2017
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 http://investors.kimcorealty.com/ or the SEC. Suburban Square, Philadelphia, PA Cover: Corsica Square, Miami, FL
KIMCO’S 2020 VISION High-quality assets, tightly clustered in major metro markets PORTFOLIO QUALITY that provide multiple growth levers Increase net asset value (NAV) through redevelopment, select NAV CREATION ground-up development and active investment management Maintain a strong balance sheet and financial flexibility, on FINANCIAL STRENGTH a path to A-/ A3 credit rating 3 3
KIMCO’S HISTORY TSR Since IPO * Dividend Growth 11/29/91 – 3/31/17 $1.08* $1.08** 12.0% $1.02 $0.96 $0.90 $0.84 $0.76 $0.72 10.7% $0.64 KIM 9.7% DJIA S&P 500 2010 2011 2012 2013 2014 2015 2016 2017 • 517 U.S. properties totaling 84M square feet in 34 states 1958 – Founded by Milton Cooper & Marty Kimmel and Puerto Rico 1991 – IPO that launched the “Modern REIT Era” • Total Enterprise Value – $15.5 billion 2006 – Named to the S&P 500 Index Information as of 3/31/2017 4 * Source: Bloomberg ** Quarterly dividend annualized
PERCEPTION VS. REALITY: CASE FOR KIMCO Westlake Shopping Center, Daly City, CA
PERCEPTION VS. REALITY: CASE FOR KIMCO Perception “ The Limited to Close Is American Retail The retail Apocalypse All 250 Stores on a Historic has officially descended In letter to employees, CFO Larry ” on America Tipping Point? Fultz cites heavy debt load and tough retail environment “ “ “ Retail Store American retail as Mall Closures Ripple Closings on Track we know it is dying Through Small to Beat Out a slow and painful ” Town America ” ” Recession Levels death “ Apparel Retailer Wet Seal As Sears falters, A giant wave of store to Close All Stores shadow darkens closures is wreaking Teen retailer unable to find fresh over American malls ” havoc on shopping malls capital or a buyer 6
PERCEPTION VS. REALITY: CASE FOR KIMCO Reality: The Limited Impact of 2017 Store Closures on Kimco Total Store Limited Impact Closures on KIMCO: 68 0 0 138 Limited 0.9% Of GLA 0 77 Impact on 175 3 0.4% Of ABR* KIMCO: 220 8 389 6 1 106** 400 2 126 0 ” 1,699 20 *ABR is defined as Annual Base Rent 7 **Stage Stores has closed a deal to buy approximately 50 Gordmans leases
PERCEPTION VS. REALITY: CASE FOR KIMCO Reality: Many Retailers are Growing Their Store Count Off-Price Fitness Grocers And more… Traffic-Drivers Restaurants 8 Source: CoStar, Cushman & Wakefield and Peer Reporting
PERCEPTION VS. REALITY: CASE FOR KIMCO Reality: Geographically Diverse and Highly Concentrated in Major Metro Markets Minneapolis/St. Paul Denver Seattle 11 St. Louis Chicago 22 Portland Pittsburgh Boston 13 19 ABR Contribution New York San Francisco 2 8 20 Philadelphia Sacramento 4 63% Major Markets 1-10 16 1 Baltimore San Jose Washington D.C. 18 9 Raleigh-Durham 17% Major Markets 11-22 Los Angeles 17 3 Charlotte Orange County 6 14 San Diego 10 Orlando Phoenix 21 12 7 Atlanta 15 Houston Dallas Miami Tampa 5 Fort Lauderdale Austin West Palm Beach 80% of Annual Base Rent comes from our Core Markets* 9 * Rankings for Kimco’s top 22 major metropolitan markets by percentage of ABR as of 3/31/2017 are denoted on map.
PERCEPTION VS. REALITY: CASE FOR KIMCO Reality: Tenant Diversity Only 15 tenants with an ABR exposure greater than 1.0% 3.5% 2.5% 2.1% 2.0% 1.8% 1.7% 1.6% 1.4% 1.3% 1.2% 1.1% 10 As of 3/31/2017
PERCEPTION VS. REALITY: CASE FOR KIMCO Reality: Tenant Diversity SCALE STABILITY SECURITY QUALITY R ~55% 8,700 Fixed, contractual Average lease term*: of ABR from 10 yrs rents with bumps top 50 tenants leases the is anchors attributed to tenants with 4,000 5 yrs investment grade credit tenants ratings small shop 11 As of 3/31/2017 *excluding options
PERCEPTION VS. REALITY: CASE FOR KIMCO Reality: Necessity Based Goods and Services % of ABR Internet Resistant 55% 14% Grocery/ Warehouse Clubs 13% Restaurants 9% Service 9% Off-Price % of ABR 5% Other (i.e. wireless, dollar store) Omni-Channel Players 40% 9% Home Improvement/ Home Goods 3% Health Clubs/ Fitness 6% Sporting Goods/ Hobbies 2% Medical 6% Other (i.e. pet, party, accesories) ~60% of 5% Pharmacy/ Personal Care non-anchor % of ABR Internet 5% Apparel Vulnerable 5% ABR from Service based 2% Electronics 72% of ABR 3% Banking/ Finance tenants 2% Office Supply Stores from Grocery 3% Mass Merchandiser Anchored 1% Books 2% Off-Price Dept. Store Centers 1% Department Stores 12 As of 3/31/2017
PERCEPTION VS. REALITY: CASE FOR KIMCO Reality: Omni-channel Movement “Click -and- Collect” – Omni-channel at its finest “Over 40 percent of all of our online orders leverage our physical stores.” - Kevin Hofmann, president of online at Home Depot * Kohl’s CEO Kevin Mansell said that more than 20% of the time, it’s "buy online, pick up in store" shoppers make additional purchases .* “As Walmart pushes its e-commerce initiatives it will face steep increases in shipping costs, and eliminating last-mile expenses is one way to create considerable savings” ** “ DSW reports that 15-20% of customers picking up an online order in- store end up buying an additional item.”** From E-Commerce to Omnichannel 13 *Source: CNBC “Like it or not, 'click and collect' is here to stay” Jan 13, 2016 **Source: Business Insider “Walmart discounts click -and-collect: Aprill 13, 2017
PERCEPTION VS. REALITY: CASE FOR KIMCO Reality: Today’s Market Demand for Retail Space Outweighs Supply Low Supply is Driving Kimco ABR National Fundamentals Outlook* Kimco Pro-rata ABR/SF 10 year CAGR is over 4% $15.08 $15.23 $14.46 $13.74 $12.99 $12.58 $11.29 $11.52 $11.66 $11.91 $10.97 $9.94 4Q06 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 1Q17 U.S. retail market occupancy increased with net absorption totaling 13.7M sf during 1Q17** 14 * CoStar Group 1Q17 Retail Webinar PowerPoint, chart as of 4Q16 ** CoStar Group, “The CoStar Retail Report: National Retail Market” First Quarter 2017
PORTFOLIO QUALITY Riverplace, Jacksonville, FL
PORTFOLIO QUALITY Multi-Year Highs and Continued Growth in Operating Metrics Annual New Leasing Spreads Rent Per Square Foot $15.23 29.3% 2016 1Q17 $14.46 1Q16 2015 $14.67 25.0% $13.74 2014 19.5% 1Q15 $14.00 $12.99 1Q14 $13.18 2013 15.6% $12.58 1Q13 2012 27.8% $12.66 $11.91 1Q12 3.6% $11.96 2011 Annual Same Property NOI Growth Occupancy 95.3% 2.8% 1Q17 2016 95.8% 2015 3.1% 1Q16 1Q15 95.7% 3.3% 2014 1Q14 94.7% 2013 3.8% 1Q13 93.7% 2012 2.5% 1Q12 92.8% 2011 1.1% 16 All figures are at Kimco’s share
PORTFOLIO QUALITY Quality Leads to Multiple Growth Levers NOI Growth Walk Through 2020 435 -585 bps 85 -110 100 -150 110 -160 bps 140 -165 bps bps bps Targeted Annual Growth Rate Ground-Up Organic Growth Leasing & Value Redevelopment Development (Rent Bumps) Creation 17
PORTFOLIO QUALITY Building Blocks of NOI Growth $10M Net Acquisitions** $55M $70M Ground-Up Development $50M Redevelopment U.S. Portfolio $1.2B Pipeline $65M Rent Spreads/ Lease-up/ Value Creation Organic Growth $935M 2015 BASE* 2020E 18 *2015 is based on U.S. portfolio at 12/31/15 **Acquisition NOI in excess of dispositions
PORTFOLIO QUALITY Growth through Leasing & Value Creation 91.0% Small Shop Occupancy 89.6% 89.0% Progress to Date 88.6% 88.2% • Improved small shop ABR = $26.42 psf 87.0% • Small shop spreads for last four quarters • New Leases = +8.0% 85.6% 85.0% • Renewals & Options = +7.6% 84.0% 83.0% • Driving force behind occupancy: 82.3% • Restaurants 81.0% • Personal-care services • Medical uses 79.0% 77.0% 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 19
PORTFOLIO QUALITY Unmatched Mark to Market Opportunities Anchor Mark Anchor Mark Top 10 Core Markets to Market to Market New York Chicago 14 65 +37% +60% sites sites San Francisco, Philadelphia, Baltimore, Sacramento, San Jose Washington D.C. 23 71 +28% +106% sites sites Los Angeles, Orange Raleigh-Durham County, San Diego 8 52 +57% +18% sites sites Miami, Ft. Lauderdale, Phoenix Houston Dallas West Palm Beach 11 29 13 10 +31% +46% +77% +45% sites sites sites sites 20
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