KIMCO’S 2020 VISION INVESTOR Presentation Third 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 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 1 Dividend Growth 11/29/91 – 9/30/16 $1.08 2 $1.08* 13.4% $1.02 $0.96 $0.90 $0.84 $0.76 $0.72 10.3% $0.64 KIM 9.5% DJIA S&P 500 2010 2011 2012 2013 2014 2015 2016 2017 • 534 U.S. properties totaling 86M square feet in 35 states 1958 – Founded by Milton Cooper & Marty Kimmel 1991 – IPO that launched the “Modern REIT Era” and Puerto Rico • Total Enterprise Value – $18.2 billion 2006 – Named to the S&P 500 Index Information as of 9/30/2016 1 Source: Bloomberg 4 2 Quarterly dividend annualized
CASE FOR OPEN-AIR REAL ESTATE Today’s Market New Supply Near 38-Year Low High Demand Shopping Center Supply Growth (GLA) 1 Planned Retailer Store Openings 3 (in thousands) 12% 90 10% 80 8% 70 6% 60 4% 50 2% 40 0% • More than 79,272 store openings scheduled over the next two years (3) U.S. retail market occupancy increased with • Pure-play online retail opening physical stores Next 24 months net absorption totaling 43.1M sf during 3Q16 2 Next 12 months • Discounters and off-price concepts are increasing store count 1 Green Street Advisors January 2016 2 CoStar Group, “The CoStar Retail Report: National Retail Market” Third Quarter 2016 5 3 RBC Capital Markets, “Retail REITs: July 2016 National Retailer Demand Monthly (NRDM)” July 2016
SWEET SPOT OF RETAILING Market Cap ($B): Off-Price Retailers vs. Department Stores 2007 3Q, 2016 Ross Macy’s Stores $5 $11 Macy's TJX Ross Stores $21 $13 $26 Nordstrom $9 Off-Price Off-Price Total: Total: $18B $75B Sears $1 Department Department Nordstrom Stores Total: Stores Total: $15 Sears $85B $26B $27 JC Penney TJX $49 $19 Source: Bloomberg 6
PORTFOLIO QUALITY Riverplace, Jacksonville, FL
PORTFOLIO QUALITY Highly Concentrated in Major Metropolitan Markets Denver Minneapolis/St. Paul Seattle St. Louis Chicago Portland Pittsburgh Boston New York San Francisco Philadelphia Sacramento Baltimore San Jose Washington D.C. Raleigh-Durham Los Angeles Charlotte Orange County San Diego Phoenix Orlando Atlanta Houston Miami Dallas Tampa Fort Lauderdale Austin West Palm Beach 8
PORTFOLIO QUALITY Tenant Diversity Top Tenants % of ABR – Only 15 tenants with an ABR exposure greater than 1.0% SCALE: Approximately 8,900 leases with 4,100 tenants STABILITY: Well staggered lease maturity; averages ~8% of GLA each year for next 10 years QUALITY: ~55% 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% 2.2% 2.0% 1.9% 1.7% 1.6% 1.4% 1.3% 1.2% 1.1% As of 9/30/2016 9
PORTFOLIO QUALITY Necessity Based Goods and Services % of ABR Internet Resistant 54% 15% Grocery/ Warehouse Clubs 12% Restaurants 9% Service 8% Off-Price % of ABR 5% Other – Internet Resistant Omni-Channel Players 41% 10% Home Improvement/ Home Goods 3% Health Clubs/ Fitness 7% Apparel/ Accessories 2% Medical 6% Sporting Goods/ Hobbies 5% Department Stores % of ABR Internet Vulnerable 5% 5% Pharmacy/ Personal Care 72% of ABR 2% Electronics 5% Other – Omni Channel 2% Office Supply Stores from Grocery 3% Banking/ Finance Anchored 1% Books Centers 10
PORTFOLIO QUALITY Multi-Year Highs and Continued Growth in Operating Metrics Occupancy Annual New Leasing Spreads 95.1% 26.6% 3Q16 3Q16 2015 95.8% 25.0% 4Q15 4Q14 95.7% 2014 19.5% 4Q13 94.9% 2013 15.6% 4Q12 2012 27.8% 93.9% 4Q11 93.1% 3.6% 2011 Annual Same Property NOI Growth Rent Per Square Foot 3.3% 3Q16 $14.94 3Q16 3Q16 $14.46 4Q15 2015 $14.46 3.1% 4Q15 $13.74 4Q14 3.3% $13.74 2014 4Q14 4Q13 $12.99 $12.99 2013 3.8% 4Q13 4Q12 $12.58 $12.58 2012 2.5% 4Q12 $11.91 4Q11 4Q11 2011 1.1% $11.91 Note: All figures are at Kimco’s share 11
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 12
PORTFOLIO QUALITY Building Blocks of NOI Growth $10M Net Acquisitions 3 $55M $80M Ground-Up Development $50M Redevelopment U.S. Portfolio $1.2B Pipeline $65M Rent Spreads/ Lease-up/ Value Creation Organic Growth $935M 2015 BASE 1 2020E 1 2015 is based on U.S. portfolio at 12/31/15 2 Assumes proceeds from sales used to pay down debt 13 3 Acquisition NOI in excess of dispositions
PORTFOLIO QUALITY Growth through Leasing & Value Creation 92 Small Shop Occupancy 90 90.0% Progress to Date 89.2% 88 • Improved small shop ABR = $26.02 psf 88.0% 87.0% 86 • Small shop spreads for last four quarters • New Leases = +11% 84 84.7% • Renewals & Options = +8% 83.9% 82 The Path to 90% occupancy 81.8% 80 • Deal and occupancy bounties • Operator portfolio reviews 78 • Targeting of service-oriented tenants 76 3Q11 3Q12 3Q13 3Q14 3Q15 3Q16 Goal 14
PORTFOLIO QUALITY Unmatched Mark to Market Opportunities Anchor Mark Anchor Mark Top 10 Core Markets to Market to Market Chicago New York +27% +64% 189K 14 sites 2% 119K sites 12% 65 Population ABR Population ABR San Francisco, Philadelphia, Baltimore, +30% +89% Sacramento, San Jose Washington D.C. 24 sites 5% 170K sites 16% 72 102K ABR Population ABR Population Los Angeles, Orange +58% +14% Raleigh-Durham County, San Diego 161K 66K 54 sites 10% sites 2% 9 Population Population ABR ABR Miami, Ft. Lauderdale, Phoenix Dallas Houston +40% +48% +30% +84% West Palm Beach 13 sites 4% 12 sites 4% 135K 94K 148K sites 2% 10 87K sites 5% 29 ABR ABR Population Population Population ABR Population ABR *ABR is defined as Annual Base Rent 15
PORTFOLIO QUALITY Growth through Leasing & Value Creation $20 $18.51 $18 Anchor Lease Spreads/Mark To Market $15.56 $15.50 $16 Mark to Market Spread on Anchor Leases: +59% $14.42 +60% $ABR/SF 82 Naked Leases 1 expiring through 2018 totaling 1.5M sf $14 $12.53 +48% +38% 5 Kmart Leases expiring through 2018: 362% market upside +44% $12 +35% Actual anchor spreads for 1H16 were +46% $11.65 $11.27 Total Average RPSF up 30% since 2010 $10 $10.51 $10.05 $9.28 $8 2013 Actual 2014 Actual 2015 Actual 2016-18E 2019E & After New Rent Expiring Rent 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: ~$1.0B+ Shadow: ~$2.0B+ (through 2020) (beyond 2020) $80M $550M $XXX M Projected NOI Value Creation • Mixed-use densification options: Partner with best in class developer – Incremental Return: 8%-13% – Ground Lease – Sell 18
NAV CREATION: REDEVELOPMENT Growth through Redevelopment Spending ($M) $250 $225 $225 $225 $200 $190 $150 $135 $118 $100 $47 $50 $42 $0 2013 2014 2015 2016E 2017E 2018E 2019E 2020E Note: Numbers are represented in gross terms. 19
NAV CREATION Growth through Selective Ground-up Development Pipeline $740M 2015-2020 7%-9% Projected ROIC 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
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