KIM - Earnings call transcript Q4 2017 | Kimco Realty Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to Kimco Realty Corporation Fourth Quarter 2017 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note that this event is being recorded. I would now like to turn the conference over to David Bujnicki, Senior Vice President. ahead. go Please

David Bujnicki

thank earnings and joining fourth Kimco's Good you XXXX call. quarter morning for

on Conor Cohen, Joining Ross call of Officer, the me are other as and Jamieson, Chief members Investment as Dave well Cooper, executive Flynn, Chief Officer; and Glenn team. CFO; our our Operating President CEO; our

materially forward-looking, in company's made important to is the forward-looking statements reminder, of address actual a that to of it could the course a such projected refer SEC this company's risks, other that and the from call statements, due As uncertainties factors. filings during to may such factors. results differ be those deemed variety note Please and

better management to area Reconciliations make Conor. reference results. with presentation, can measures, of call certain these this turn non-GAAP that web to found our may that, Relations Kimco's help Investor understand I'll in the the metrics operating financial During And investors site. be of non-GAAP we believe over

Conor Flynn

for We and the morning tremendous finished entire Kimco us by a with thanks effort Good XXXX team. off joining today.

record activity a quarter site and leasing and same in fourth the portfolio, FFO. validating positive capped recurring the occupancy, spreads, of off trends NOI, leasing with desirability Our our year,

but resilient, portfolio has the continually constantly goalposts are and recognize Our proven that's to the we quality portfolio. that enhance moving, strive we why of our

objectives. our term upgrade by disposing portfolio, long to off the Our do focus further will that not XXXX primary meet be in assets

While continuing the development redevelopment and projects.

portfolio and runway create on core are To the means retailers store need environment; year provide for of growth a While program rationalization We flexibility continue another To we continue first, our that redevelopment growth; the continuing significant changing majority a quality, corridor, as improved steps; the in is results the in for impact, principles; of in continued of positions this weighted Los for value. a space. will more that solid our focus us for New this a and D.C.-Baltimore-Philadelphia us, in portfolio a long Bay creates term this the taking Angeles, markets short rapidly possible highest additional have dilutive that maintain centers. with with portfolio The anchored term closures. Area. to following becoming and anticipate will XXXX, XXXX and further goals, substantial a mixed becoming leader to and concentrated York, balance sheet run quality, Miami, grocery in by these our achieve coastal store

liquidity to focused our notwithstanding profile, on remain Second, ample repurchase sheet maximizing and capacity position, strengthening debt favorable the stock, we balance flexibility. and maturity it's

already made have we progress into Glenn We XXXX. strides have and goal, during the more go made on detail on will this

serves and Third, we our mix, development our and portfolio, continue which redevelopment refine we programs. purposes; of it to growth assets, to further will double quality as overall the improvise our strategically the geographic and demographic capital strengthens recycle support

unlock we and to innovative with exploring the see non-stop retailers strong We and Mill elected With be anchored business continues demand. of on to the for lifeblood Phase Kimco's objectives include respect is properties. Christiana this Fifth, outsized and momentum X now X, Center in providers, Grand we land the projects, reclassify enjoy open team and leasing, located Phase Costco. offer embedded of our Jamieson working the the Dania both we which to Boulevard continue These and creations retail, by and same value value is and and changes well stay Pentagon announced Phase development, demand Lincoln David also projects leasing ways Parkway redevelopments occurring partnering existing to into Fourth, process. leasing and expedite service X, the quality ahead category. strong strong Square, The Station, for will the leasing, recently are developments streamline from leasing, and XXXX. to provide details NOI. yields. future site maintain our increase will redevelopment significant of to of Parkway our for and which held and the development of and Grand high development Pointe more our

our funding we margins in being change will cash the on our Given to the projects requirements in cost-to-capital And closer and other efficiency for our across are continue finally, generating finished focus to and company. that improve flow.

our another And and shareholders. higher put in place committed a vehicle the growth. tirelessly cover plan, flexible a steps office, I our management program, Glenn will to structure to made structure. streamline serve recently is value repurchase return steps assure achieve will overall can the more and team continually to the and turn is as that performance our will capital share has I each believe Kimco's with we regional outlined. example, working and these decision Demonstrated close in improving operating continued just to in call detail. quality a We Midwest I will portfolio, to an you term As the of confidence produce this that, to more over million long that board Ross. $XXX

Ross Cooper

side, mid-X% We sold in quarter on ended seller, as blended all the as rate XXXX, XX The accelerated $XXX Thank of net you, level. close to very was shopping share dispositions, of to This cap with year Kim's QX fourth with sales and $XXX million. centers on sales million. gross by our million year fourth quarter XX full execution. highlighted amounting Conor. productive a XXXX Overall, the for a quarter we center fourth the in a were strong result $XXX the modest transaction had and investment volume in

term Town in redevelopment California, On Los Center acquired side, and the Angeles, acquisition long with we creation value opportunities. Whittwood

million will we we accretive, substantial sellers, $XXX XXXX, anchor As our noted in intend million. within Any existing portfolio. or $XXX unowned on year, previously, acquisitions to this be net totaling undertake focus between adjacent, to parcels,

the Cap five rates to with interest, bifurcation without see trading best assets core rise. and both the all a continue to sticky, remain tertiary continue in grocery time major driven lows, and pricing, landscape, strong those on whereas a focus. component, quality those fours range, high and investment On we by low non-core the and particularly at institutional between assets, on secondary the transactions outside investor recent coasts, markets in

While is XXX each asset time. spread unique, anywhere XXX at points from the to this we and core non-core see basis between

of XXXX in XX first seen contract completed, pullback rates our able have plans our up be related providing Although return. interest the our start, a This from accepted have and capital the any year, execute several gives to related the continues in there those is of debt the ability gotten in ability Even disposition us there million access with or offer. moving thereby available, and of financing. market, not healthy going another supply primarily finding an operators, obtaining are over a providers. we of to to interest confidence or days plenty $XXX local in buyers the increase on to with targets, great capital million of regional yield markets, in with under off to peers, sales we an private backing cash-on-cash the the dispositions These with equity and of $XX are cost attractive, to and

the on in of and financial market $XXX our over performance for guidance for will have provide quarter. and additional Glenn sale. the XXXX now properties million now we insight Additionally, color

Glenn Cohen

Ross positive strong results, sheet focusing are XXXX and solid good Conor liquidity We outlined by and objectives, XXXX Thanks operating on with position, finished a now and our balance morning. Ross. as a and

the of further quarter, of color, fourth and include part region, then details charges, with consolidation fourth $X.X as and associated full quarter per on central regarding of share our XXXX guidance. results, XXXX year some million corporate Now $X.XX the per $X.XX NAREIT share the for or FFO our restructuring. was our severance which

many with assets, we selling properties for of other in this marketing been having are our by sale, quality region regions. the We absorbed XXXX, remaining the in anticipate which high

million For gains comprised net the million These year, by rate. $XX.X FFO preferred a per repayment transactional of full of debt or of well offset adjusted $X.XX $X.XX of and $XX.X as and redemption expenses, $X.XX charges non-operating Albertsons, $XX.X income, exchange per excludes share for million last includes primarily the income foreign share transactional This million, was million reported $X.XX $X.X per expenses, is as the FFO million share was were and $X.XX. of and which impairments, mentioned. NAREIT land $XX.X of FFO, per share impairments above the just year. quarter, $X recurring transactional from severance charges early or fourth

Offsetting the our million, the an was fees, attributable lease in balances. increase negative minimum impact was from $X.X from despite of higher due portion the Puerto by NOI NOI debt expense ventures. results properties, This Hurricane our pro termination fourth prior million interest to Maria. and from rents joint higher to rata including Rico Our increase $X.X driven to a quarter benefitted

to lower including expense and by share related and contribution tax million share offset $XX.X those and million of collectively. JV $X.XX from year This Now XXXX NOI full per to sold FFO increase lower exit The versus $X.X of was was FFO $X.XX Canada. assets adjusted $XX.X was G&A for consolidated recurring per primarily provision to of million improved due is attributable XXXX. transferred, our --

XXXX the FFO begin in run late and projects, in $XXX cash has from which development invested million flows in will into Our impacted and short been growth the XXXX beyond.

points XXXX finished enter from of increased shop XX%, year remain XX.X% at ago XX metrics points small and and XX strong, operating with to basis a quarter. the Our year since XX.X%. up basis we up occupancy Anchor occupancy last as occupancy

were higher growth due these and reduction X.X%. basis negative housing combined X.X% a of been on properties. in quarter, growth For quarter, rising basis same new our property the projects XX.X%, from XXX for would fourth of and Same items, leasing X.X% points, and Puerto a have the with Maria leasing Rico of Absent was Hurricane options renewals redevelopment a impact fourth points property includes XX spreads NOI to spreads by NOI X.X%.

increased NOI XXXX, Rico For by population will reduction the NOI attributable property basis our in Puerto property exclude X.X%, Beginning same Rico. full point Puerto our year, including a to same XX properties. seven

million, XXXX sheet; we additional as debt-to-recurring-EBITDA a balance of net consolidated and basis, JVs $XXX portion $XX.X relative with issued the preferred to and an underwriters and outstanding, from X.XX% their year the million the X.X preferred In of times subsequent exercised overallotment option. including Turning on times. stock rata X.X perpetual December, in of we end, pro stock finished

weighted years of year XXXX. Subsequent debt and maturity end, million unsecured During secured XXXX, profile we XX.X years, years. to maturing million average we a weighted maturity we interest debt, with the remainder $XX few from past average leaving years. just repaid of of a X.X of of of In weighted only billion $XXX average increased to X.XX bonds issued the our rate X.XX% XX.X for have

billion $X.X revolving credit of $XXX over availability debt with Our million liquidity excellent, position through of just on over is maturing facility, XXXX. and a

for Now income underlying and our some excludes color a XXXX guidance assumptions; and expense. as transactional guidance the on XXXX any reminder,

defined such, FFO are guidance for FFO As and as XXXX the our same. NAREIT adjusted

incorporate it as will occurs. and transactional We income expense

$X.XX into that to account cap issued. takes Our dispositions XXXX. funding FFO financing guidance assumes share. million This of to projects, the dilutive quarter development million the our projected our satisfy $XXX guidance for million, X.XX% range blended which per these with the fourth stock are million to help and to X%. range net sales $XXX.X rates is XXXX to in redevelopment from the will related preferred The The XXXX costs $XXX range also was of proceeds to recently between dispositions guidance and X.X% associated total of $X.XX perpetual $XXX $XXX million requirements with impact

to share proceeds As of the in development development a of Phase generating may Dania received have expected cash repurchase we be start program to X to redeem preferred reminder, in the common flow stock shares opportunistically repurchase pursuant common and debt, reduce excess costs, callable today. redevelopment Any or XXXX. announced is only used the

is end place which same Our believe the quarter The bankrupt in low vacated. level, X.XX% we This point subsequently for to growth of expectation quarter property is XXXX, XXXX. the for in range X%. first that were range be for will property tenants the our due to same NOI of several NOI the low but reflects first

for NOI basis [ph] occupancy potential range XXX Our comfortable including given the the we upper fall between holiday Despite of impact Toys"R"Us. the stands the consists leased with economic uncertainty property these tenant season, same range, which versus the are circumstances, end out also around our growth widespread points. bankruptcies and negative of level, the at

answer highly happy point, focused to execution, And a As final your about team we'd be our our confident is with on that, motivated are questions. future. and

David Bujnicki

portion of additional that, Q&A with We an one follow-up to call. efficient, move ask are question. the more ask To to we ready the question make this you

any have additional could queue. rejoin the If questions, you you

our caller. take first can You

Operator

from comes first Bank of America. Our of ahead. question go Craig Please Schmidt

Craig Schmidt

know I cap disposition. given to rates little I this improved rounds of the a you touched given the you. but Thank thought lower, on was going it; assets, Ross, first that -- were be

wondering about just rate? that So X% X.X% to cap

Ross Cooper

good the of assets, capital a have and market some have buyer into consistency have and have putting the we have that receiving the by actually question, aggressive. that's bids Yeah, we pricing new on pretty seen I The encouraged the seen. been been formations very and been in that pool the we we have been

to a ensure bit continue will which on that the into helpful, and we rate we very we the we achieve continue to our execute giving But I little end are guess, So are range hit certainly mid-Xs. will. that, we flexibility strategy we of are cap that comfortable to that lower our of ourselves, targets,

Craig Schmidt

maybe And you Glenn, ratio? being? would be for your dividend AFFO just target Okay. would comfortable where payout Where you to that

Glenn Cohen

coming Well from overall, to it help wanted projects, our than down. redevelopment be development around EBITDA as that starts a online drive little Today, that, will higher it's XX%. but the and we

Craig Schmidt

Okay. Thank you.

Operator

Please next go Samir question comes ISI. Khanal Our from Evercore of ahead.

Samir Khanal

Good morning guys.

lot So able the mean, of will you to again. Conor, flooding of like, of that transaction be much you gives confidence guess, the there million. thing. sort I sort for kind of that the not -- for a bid doing assets of you the I same million anything on year? are just many $XXX isn't are getting It execute on peers over $XX and your market, what market the are feels

or risk trickle when -- this with of lot just million trying and of it about into So assets, a to it a think some should of weighted the to second trickle could get XXXX sort it you much to the first work and I that at XXXX is feels into dispositions, how is do, there of of -- we of like is contract million mean here? of, am could of under this there think a I $XX one-off kind half more sense being $XX point? half what's of that kind

Conor Flynn

It's question. a good

confidence, I of be that at think execution dispositions are portfolio our going to on gives when we to we look able the the that execute. to-date, us

for able mean, do I So to been portfolio we the significantly. have strategy a one-off repositioning

the billion We what to have that's do those you of Ross, worth we and $X ready sold close team feel to in estate, confidence now like real what ranges. gives the to to think? able to have execution place, we us be go, have hit

Ross Cooper

months, attractive and meetings they sidelines I countless yields think, some Yeah and on the in from investors, would interest, are today's environment. mean, to calls the are as renewed the starting last seeing reemerge, phone for been been, frankly few we I has a players, that, and pricing have last really years, I add and really, brokers, few operators, cash over that have had there just sense, some with mean, in I

amount million So said, as $XXX significant a an some we is offer, no accepted for really in I $XX million; range for deal be size $XX is the strategy. under the that, significant do it doubt, it with to on deals,, average one-off amount with to There of or have and a us maybe $XX spot mean, behind a is you that to investors. million on which sweet million seems work contract

sub portfolios, too a to is for that a We with think looking groups are us at are larger although discount heavy a few take. talking and we smaller portfolio

working will Everybody we that done, motivated. no doubt a our and hard but confident targets. So are work, our is of lot we it hit to get team it's is

Samir Khanal

guys. Thanks Okay.

Operator

question Please next Our ahead. Ki go SunTrust. comes from Bin of Kim

Ki Bin Kim

Thanks morning and guys. good

could all you that let's probably issue are leverage redevelopment. million speaking, a in because you sales year, So and is much ton, for we how it timing more asset using I expect proceeds those of asset there EBITDA done with say know XXXX? change sales you everything but in; ratio in get reasonably whole this $XXX a flowing And doesn't want, your

Glenn Cohen

It's question. a good

we think clean a portfolio at we today, I to XXXX. want look really when our in have portfolio

sure So for why XXXX. going that's disposition have make an plan are to we we elevated

a forward, see that's coasts. barriers we we going where we That's heavily that really the weighted have So growth, portfolio, biggest the that's where clean the toward highest entry. to see

execute up team that's do on going that, is game we where ourselves We know that's So our have we to geared are to But that. our plan. going forward, positioning and forward.

Ki Bin Kim

million you that question is, do? get round the you there But to another the have or possibly there, is $XXX does

Conor Flynn

up gets well us to cleans a us positioned rate, continuing gets the to really run That us where see there. into years. growth for the we portfolio and That future be

Ki Bin Kim

composition centers last looking might Okay. things bit be the at you look And in you from any question, that sell, to just are when problematic? power of large a little there,

Glenn Cohen

Yeah. is portfolio. of The cross of our a a composition really bit section

But some is anchored power. power range. is $XX deal that So to There would in million it heavily assets, I is $XX there are say primarily weighted centers. The some there is that is centers. or million one grocery, on larger towards two size

market that today, them early in of getting we interest. One in are exceptional Missouri, have we the

price are So to we our hit confident are going targets that we there.

power $XX million. you center I north announce, in saw think acquired, yesterday was was there recently Idaho, big a that of

type we are that size. of be there are larger and able are buyers that move in have, So to we to we the going that few confident that products, for are bit a

Ki Bin Kim

you. thank Okay,

Operator

BMO comes Markets. Metz go of question Jeremy next Please from ahead. Our Capital

Jeremy Metz

in X% to yields new good dispositions some more one any the here, earlier addition to could are a of we range? Ross, back going rung raise year something the on in ventures? to from to factoring X.X% capital you morning. in raising in that Hey, joint that selling priced way digit see capital, attractively this high single that bottom possibly as Is questions

Glenn Cohen

way disposition and our those try at look a the and in portfolio. execute get of always out We to program, assets

potential want don't existing announce have to very But continue launching new new as quiver. always an I we Three to to again, a business For JV that, opportunities, have of platform. in that a today, plans our with stated have that think we JV. currently any we strong arrow partners We an do have us.

Jeremy Metz

million spend Okay. And buyback, have a then, of pipeline in maturities of full amortization. million $XXX terms and the obviously of redevelopment, you nearly $XXX here, pretty of

care far this that took of year. of already you some so think I

You proceeds. delevering talked about have also further with

So priority the a of fit willing trying to your upgrade? further dispositions getting understand long to where rating on exactly be increase buybacks to for it what Would scale? you and fund of it, term goals bid means a kind

Glenn Cohen

Again, the us. be important to ratings very to continue

overtime know, are to we As what issue. that would continuing But A-, and and to rating. time, towards you is head stable us an over get really -- BBB+, that AAA solid

it about. buyback, and foremost, developments relates we to we our have As redevelopments, the and funding on are as first focused talked

So $XXX options this us. that open $XXX are then And as with range. we have million [ph] million really to to

trading. We is stock will the see where

that's $XXX year. $XXX callable we We And today. already million of all perpetual debt have this already preferred, paid then, have debt of million reduction,

is this So of bond and [ph]. The down. a we more pay next XX we that's is than and XX at have whole debt could not really of XXXX, October that

So earlier option that's a us at take on. look another for to

Conor Flynn

as do why see that to the public cheap. incredibly and place, share we right really opportunity showcase the and mean, program buyback an disconnect we pricing is now. reason that's have stock our think do We the always I private between in

Jeremy Metz

Thanks guys.

Operator

Please from of question Christy next comes Citi. Our ahead. go McElroy

Christy McElroy

has on you And the exactly there fallout? just an bit uplift, same of you in and expected, that, the you upper I rate sense more what what changed Just XXXX. color last Appreciate everyone. on you buffered what's in a end expectations What the don't? growth morning tenant towards us higher had color growth for three little previously good Hey, store exactly a think a give for Can range. the know so months? of bit in

Glenn Cohen

Christy. Hi

looking still they bankruptcy from are are I what reemerge mean, We see here. does. Toys to to trying

if lists, season, you holiday they as and had to their a are they difficult figure We yet still very trying have themselves know. seen out

few on do that we guidance to So of have will stores on a continue We range there determine same to we We and with play that the are our still really want are tenants, fit the like year, that site see early NOI. strong. very-very where grow stable of seeing things in demand in out, terms that's that from us. to

about, and shadow We are portfolio, to supply, more continue monitoring talking reposition coastal. as as a been we have move the bit we

I more think we centers. continue demand see our for to will

Christy McElroy

then is a commence, we sort Can there sense to already but you rate leases have between give and leased, leased signed big of and the through as And Great. have those what just timing commencements, the a magnitude of rate. just year? yet us regard commenced with difference just, you obviously -- that dollars the [ph] of of sit of been have to the

Glenn Cohen

The to signed total $XX what's in $XX what's there is of range the million million already. dollars of probably

of So that's the gap towards get stop as that that middle point basis more start that coming going online, we we and year, closing, gap. half of the think second XXX the should to

Conor Flynn

You it close. did see

Glenn Cohen

Right.

go expect start XX that into to and tighten, we So you again, we and But will that get more year. outs leasing, that later have basis have will it. the as then you tighten with saw already. And ins we points

Christy McElroy

you. Thank Okay.

Operator

Rich Morgan Stanley. question comes Hill next Please go ahead. from of Our

Rich Hill

better changed? were it's Hey, of around were certainly comments earnings, didn't redevelopment your to the last what's think program. in thought very specifically necessarily hear and last source program. and go earnings. relative you to good on quarter, want cheap debt-to-EBITDA you your buyback it that that I guys. mentioning $X maybe morning I stock down, make sense capital; But since last there share to certainly that the and back I your Maybe understanding focused mind, looks

debt are of am So changed lot have development how levels your you with curious, price, to but thinking your about relative pipeline? and I things share a obviously, that your

Glenn Cohen

it share the is. from first So point, price, look the where

it's our yield, today, based XX%. on FFO at earnings almost You look

is over dividend Our X%. yield

dramatic than ago. pretty were months shift where we even that's three So

should question, So into this have that program to available brings us. we

The availability, had size our to the we That was, other beyond redevelopments, thing our and of that again, and be developments fund important levels, mind, that, that then could is have to the use that. going towards we where ramped ratings at us. there program. our price if we very up to did we is in is those again, disposition it the Keeping

we or we to So of net get available or or debt at charge metric share where be But not the control any is, a level out we to going debt-to-EBITDA and fixed above of are risk. cognizant allow to coverage other price that have would put that opportunities us. are

Conor Flynn

think that's I right.

want long as we I when of We being a the redevelopment value, the the share prognosis return capital. opportunistic stock, for on be value. believe price the shareholder where with have at in and is pushed can, think in redevelopment the the it cheap price. how long itself when we today a again, and tremendous place. we creating advantage our we fit, and you really and the when we it the presents priority program yet, that's in our have still And see still look term term to But tremendous we why take a business, is

Rich Hill

are necessarily your It Got opportunities, like, accretive, relative assets; selling you less see this of saying me where is modestly you a all priority. of question on like fair? been capital, sounds Is a buy more other good where not could that; you are three relative it not all where to accretive. of that to as it. not it's because slightly comparing And just months follow-up have ago, use back just they that shares relative we you are one sounds to -- to super

Conor Flynn

it. allocate we how That's

Rich Hill

Okay. guys. Thanks your I appreciate time. Great.

Operator

Our of Goldfarb next Alexander O'Neill. Sandler from ahead. question comes Please go

Alexander Goldfarb

Good morning.

guys portfolio two again. you now, first, with were questions; are done said major repositionings, of So previously you a obviously and had Conor, you embarking

that saw, coastal to decision talked guys mostly sell be? something the portfolio is you IRR the buyers it that of of there the in that or about, the the versus the what's different the growth the sort will curious profile Midwest? So new Is of reemergence you Midwest preference of

Conor Flynn

question. good a It's

Midwest, I what just have measure boxes, up we seen the profile and think our weighted bigger that when we of the growth profile at doesn't there, you on towards the look have to it's heavily coastal just properties. seen

really to when really look to of out the assets, portfolio, targets the substantially bedrock Midwest growing say, to we showcase let's the clean is we this and through up higher wanted that portfolio growing buy the -- so the disposition than, for at. year, back And went and was

when set is going we it up the at to pushing that rest year, prioritizing to this it of And so portfolio? we and that, out think we in how us really growth look nicely have embedded the showcase much

Alexander Goldfarb

was Christiana Okay. to existing of land you took assets. that, And that it said you and the back, as a follow-up mentioned out development put it I or you think

Christiana some today, let's Glenn projects then hurdles down recover are continuing how or where how other of doesn't forward, was on them going your have sort stock on that with? to to view curious the is your saying, assume changed, to it the that stock for essentially. buy here, compared hurdles versus the to is back And what deals, Just you is changing is your this hey, are of that redevelopment off How stock new future. if proceed better for projects, new

Conor Flynn

had are $X,XXX the has already the cost to Where it at thought it's of allocate to or underway, to have that longer already offroad, sits development show pipeline. development. a sales. capital term, over today. a in looked cost to it of best site the that we capital, priorities a that and and deliver we we we our still land, that believe when Christiana, capital site But significant take we that on GGP's one, going foot IXX, changed, frontage look to does then our on in house cost growth, sits because can out has opportunity of to at more On are tremendous of just right the where projects that next the We the say, move that significant and was we mall it Yeah. Christiana it's

it's capital just capital significantly. a of understanding that So and our prudent being changed allocator, cost really has

yields. us you those we see significantly forward, higher That's more have the between portfolio. Going value redevelopments, created average, to X% that still On tremendous will of where see do be in and the have XX%. been

we it where prioritize forward. really that's going So

Alexander Goldfarb

Okay. you. Thank

Operator

Our Yulico Nick UBS. from ahead. of next Please go question comes

Greg McGinniss

Greg is for Hey Nick. good morning. This McGinniss on

the closure, those with Regarding your regarding further that in with you expectations, in were and discussions lease? retailer the Toys"R"Us line are

David Jamieson

It's had well, opportunities be them do, an they and growth of Jamieson. had period that had to is out a they holiday us this anticipated for restructure actually back out with opportunities -- worked discussions Dave at We point XX, well, today. context down the existing extended marked And on that as to what active are to the their being time, we Yeah, recapture our able and down be where coming Toys right appreciating is would in and other season, success, we portfolio. the new this with go proactive to box, clear we question. we and XX closely enabled great as some secure each through have as at leases, monitoring market had of so very are preparing has reduce to that this some there call We've adjustments been back. when of term, challenges, leases, to and we to the identify

emerge bankruptcy they today. from dependent on how So

Greg McGinniss

Right.

And so for pipeline, demand, givebacks these does bankruptcy, how potential and on these your you redevelopment sizes? tenant up Sears within fit that mentioned tenant demand how strong is with box following anchor and that,

David Jamieson

these boxes have for demand Tenant high. extraordinarily been

users. the all guys, it the from the it seen off-price fitness have grocers, we seen from have We

in confident we very backfill ability terms of these boxes. So to our are

there markets our relates limited it about anything very Keyes, well, people Sears, in we the Sears on what's at they a you rata As with is population pro no those are Florida, Bridgehampton you are say core are to look in as to can construct like look and remaining really they entry at when that they in and are at these densities look at in that comparatively you the South which which new. are coast, And where and high extremely are is it Washington. basis, XXX,XXX supply, located. barrier excludes the California, in portfolio are on They

for So putting going pipeline forward. tremendous that our together, that redevelopment opportunities all creates

Ross Cooper

boxes I XX% you and the would to market, at we rent have. just below around the the is add $XX when locations XX% on look that Toys average

feel we rest center. So higher recapture some these traffic, shopping will optimistic to add we value can that do boxes, some that able be quality drive that more to will the of if tenants of will the we

Greg McGinniss

spend development and $XXX And follow-up do how expect quick to outlay sorry, this in After million $XXX one to XXXX just fall you year, here. that XXXX? much the million

Glenn Cohen

be probably We'd $XXX during around and million $XXX million XXXX.

Greg McGinniss

Thank very much. Great. you

Operator

question next from St. Our comes Haendel

Please Mizuho ahead. of go Juste

Haendel St. Juste

on a from there I Puerto embedded of of expectations guidance. are you question sense you from Glenn, insurance first Rico? then, for Hey terms in terms in morning. good for, us there, a distributions you what guess expecting the proceeds And could what's Curious, in FFO of also Albertsons? perhaps give

Glenn Cohen

Albertsons. for something there, all at numbers will us. in put happens upside nothing be Albertsons, and there when So just to if

As couple year. to less then $X we proceeds in from million Puerto million year, guess last probably our a is dollars, Rico to the probably it get $X.X is, around are during Puerto will the million and insurance guess our properties NOI Rico, the relates versus

that that. upbridge So will

You back heavy are Puerto think we is -- of all got are The up to are that at most a traffic there, There I properties the under running. and in assets, actually occupied today. performing. power again. tenants and just realize, the have They lot Rico, of were XX.X% were

perform are So properties to the again. well actually starting

Conor Flynn

boost a seeing as demand actually down were in well. there We

being think coming given operating landlord there lot that so capitalized operator to of and quickly, Puerto a is been and a in well them has rebuild open well our retailers get open not efficient able and Rico, sites capitalized, ability have are back we to get to and that's have us operating. a or that the I us, not

gotten to actually centers. increased come demand have to we So retailers some from looking our

Haendel St. Juste

mentioned you embedded million Puerto Appreciate that the FFO proceeds? that. couple is Rican in the guidance, there, the of Glenn,

Glenn Cohen

Yes.

Haendel St. Juste

there in another And if expense in think embedded savings are for how the should about $XXX the there what's you and Is you further this and on sell anything Okay. cost [ph], same NOI potential then guide, bad the portfolio we And for refurb debt assuming guide embedded million growth? store year? what then for that?

Glenn Cohen

reserve What's run In sorry? part around that. as am second bad X%, Haendel, your terms on debt, the again, our I of of question, we

Haendel St. Juste

here, the rationalizing about to costs? Thinking your some about million portfolio, to savings sell the maybe assets $XXX you Potential cost another as $XXX million. of think as platform, you

Glenn Cohen

the relates closing those of of selling and lot part Again, around region the assets. of a Midwest consolidation

to relatively we G&A, years I for at going that is has you if now, this been things with our it that see relatively in G&A flat will look impact line. the held several doing. you been mean, flat, and our it's have So

Haendel St. Juste

Okay. Thank you.

Operator

Please next go comes of Our JPMorgan. ahead. Michael question from Mueller

Michael Mueller

Yeah hi.

million and the or selling would the So to for there of should notable as this about sizable million ratably X%, cap I back and assets of rate the mean, balance portfolio $XXX in is rate. are up in of is $XXX X.X% a that X%. quality cap the we size just there selling? is, If to gone, -- we it go of to how chunk that terms of is a it are you say, you would cap you better X.X% of another portfolio beyond a with how the that the going of drop step-up think and getting outside what the is you chunk think once rate

Glenn Cohen

with sizable the you we quality, in best step-up are And we up toe-to-toe there and out is in have business. at the a of is Midwest. coast, that assets I move the there think we is look your correct, we part think down and when the latter the

that But there, prove jump year. be we showing numbers a our the through. plan quality, we growth make have sure with on execute shines will it once significant execution is is we to disposition our to so, on there out, in going it do And that's us that and that this and and our to believe obviously, really

Michael Mueller

dispositions; throughout that out do playing a see amount have then for now? you the a timing just under Okay. right contract how And decent question you the year? know I

Ross Cooper

are as pushing we much Yeah, can. done as as we quickly get to

strong, the of game in very of get fourth through pushing and our We year the the with that's that is third first and quarters. to plan be execution year definitely we are possible. confident sold as to are But half the as first half going much continued the

Michael Mueller

it. Got

Okay. Thank you.

Operator

from of Our next comes Wes RBC. Golladay question Please go ahead.

Wes Golladay

Hey, good morning everyone.

the that development at cause is [indiscernible] just $XXX spend looks existing a of for million the Looking in and total supplement share. like there can little redevelopment, over pipeline

identify in spend of potential attributable this for is that landlord new much development spend committed work year? the allowances later projects the redevelopment pipeline how we see XXXX is and for much how and supplement, to you the So in and it or tenant

Glenn Cohen

redevelopments. about between the developments then of million is it's it. about and to the are million the The $XXX developments $XXX $XXX it, $XXX it, about about of half of So the split million really $XXX $XXX and million redevelopments -- million, are million,

Ross Cooper

term. continue longer be And that as entitlements we existing and any for working I redevelopment, add other priority that on, to are we see the that work think would than us add, on projects plan to we to you just don't got continue company new the the to for development assets that's will

Conor Flynn

it's project. $XXX The done, is you project pretty redevelopments Island. of -- It's of happening, groundbreaking million -- projects, been Highland the large. It's spent. the being already is construction money When Staten has in already think

the quickly. project going our so Again, with lot that's there you that's Pentagon well. a So into of tower capital project. that thing project, is with as same The it that moving being is have built, along pretty

the So is the coming. where those two places capital major are

well. should As by on of so know, lot the going continuing into are the to open developments is so we spend end you there that's that have, of capital Dania. Phase XXXX, one a be we as that

Glenn Cohen

will then that. follow X And Phase

Conor Flynn

could as well. we And Right. square

Wes Golladay

mortgages would dispositions, that a a or modeling year? guidance? preferred are cash then with be we How And in these of properties, tied drag? later retire lot Maybe should Okay. there in expect to the the you big

Glenn Cohen

is selling. There to properties tied we of these debt very-very little any are mortgage

Wes Golladay

Okay. Thank you.

Operator

comes Securities. question One Capital of Our next Please from Chris go Lucas ahead.

Chris Lucas

the have really quick looking questions maintain I I is very just, would guys. and morning preferred credit rating? you as there availability to stack solid it your improve preferred? is focus capital and curious capacity Glenn, execution I guess more a to the Good guess just there do have more ones; on recognize to real relates You I of is more two one stack, your had December, within a in there?

Glenn Cohen

There availability for is sure. more

billion. Again, is pricing approach it's sensitive. a at pricing X%. where is think look you I now, somewhat to are, reality where is, it's we there over The is $X little starting probably bit if today,

is to between coming starts NOI net the and fund start are as of that profile; And an are that debt-to-EBITDA completed well, ability a time And quarter, X see coupon X have we -- counting look data the if little less maturing that in as at in to online, we redevelopment levels, between debt long a XXXX, start So now maturity, doesn't our you issued [ph], works sales, for getting you we so with on, all and really we the that will at a maturity you development inning what have and again, and those again, higher really attractive. projects. becomes where into projects a get from taper somewhat had drop.

Chris Lucas

-- today guess, been on announcements, we the Conor, more are there the just as that store am just versus year environment how you the sense? some feels I I retailer Is to a has then, It where better. would maybe ago? And Okay. your stable, environment. but curious on compare feels

Conor Flynn

there. is health back wellness categories, should that's grocers. retailers look off-price bit, so be continues you to the really the going on that think at a help what's the I and then in I little stores. at the and categories it look and the specialty you accurate. strength And coming Inflation mean, grocery the fitness, when of today,

are that biggest just the an than combined missed, going as things for and stores, retailers the much of rather think important is start you really together. to what's the recognize network, is to think the huge I forward, to starting You are is effect, is demand and retailers number; more the because, this see in e-commerce the to was number, connects going all network. start When physical continue boost one big sometimes and to that network, more I it there important think growing. a omnichannel think important and are to store how And one a store to and race to to going see think number of to sales physical how it's recognize showcase I that's sales I is e-commerce I starting retailers show estimate

Chris Lucas

you. Thank Right.

Operator

comes question go Wells ahead. next Fargo. Christian Our of from Russell Please

Christian Russell

Thank you.

happening describe public programs I private all am calling as markets and call the First latest quarter. considered, out my with have balance price that the main shareholder we basically, million, is today, one that question from to guys is, cheap. And in the off, and and tremendous and the cap and environment stuck a that create comments versus our value the fortress highs market, an what's really comment assets, current meaning which wondering we me, big low our at was maybe that could from in that two physical best to a regarding $XXX disconnect own then share looking stock Ross' to listening prices? the the from incredibly am on buyback at is, conference the congratulations do in time or me I stock? as other sheet, like in the price, all a a things of time to rates, it the has just And myself, is, using portfolio as described and manager, the translates

Conor Flynn

I believe think we we idea. that's you we It's if exactly great our what at be it's playbook, think doing. look that and something think that should a in,

private sure execution, buyback shares lot But best we to balance well pricing. the as on is that have shape our it showcase public as side in of to disposition make leasing. possible, of a want and disconnect the we got and sheet on So especially between really

Operator

follow-up Citi. of McElroy Christy from question our And is go a ahead. Please next

Michael Bilerman

Michael with it's Yeah, here, Bilerman analyst Citi. an

tax on question, sales. Just the for Glenn, consideration

that doesn't if can't year. and think relative because you I year, this that a through are more there lot is sales $XXX you acquisitions in back gains were last anything tax dividend, that Obviously, you to is special couldn't dividend. How know, like to your you managing by the that year? cards, seem the you in buying had, shelter, million are part and you driven XXXX the shelter for through last a it potentially

Glenn Cohen

good question It a Michael. is

year, we have lot absorb if of we comfortable We position gains. are we done XXXX all and can feel where actually of did analysis the the composition the our today, last exchanges. at cash the a dividend that relative to dividend. about a And look we you lot Again, of

So returned like of you wound XX%. a being capital, dividend the to with up component

a without being So acquisitions and ordinary see can acquisitions dividend you XXXXs, any would no very having the very composition or look what minimal like, different level capital of of and gain.

Michael Bilerman

Right, --

Glenn Cohen

we it. We don't special think a think we dividend. absorb We can would need

Michael Bilerman

capital the out are increased cover to you minimum ordinary, be a you already special? the so room to paying need without able above So effectively, have relative for gains to well

Glenn Cohen

Yes. Correct.

Michael Bilerman

also now. company more capital lower board, whether the to of didn't being your simplify portfolio, sort highlight of But at to XX have avenue across rates? the your and much would venture that about in And forward. of have Dania, complete you your interests considered to assets? recognize And is development? push you Jantzen Have a want a at sales, that recognize stuff all, asset you in just then, re-joint here or selling know raise to able arguably from cap thinking a you once in going of the of the Whittwood and so terms some like assets, higher down just to create dilution big less and company, value XX, bought those I sort are in quality you an quality of interest portfolio be of better Effectively, some done and joint ventures I representative percentish I in just lot

Glenn Cohen

continue York do said Yeah have Prudential we Michael, the I mean, three I New large think will do have Plan, to I Canadian with before, and want that's a very us. we business that point. Pension to partners, and lifted very that, Common, as good

we see, arrow to we our Again, will of that forward. at cost back, that So that of as I as look in if an have come a -- could cost doesn't we if way going and our cheaper we look think at access can capital, continue to capital quiver. potentially

So something it's potential we opportunity. a looking at, that as are

Operator

conference I question-and-answer concludes any back over David Mr. session. remarks. our to This like turn closing to for Bujnicki would the

David Bujnicki

for day. any today. enjoy our participating you am call the you of the follow-up rest I questions answer you have. I may Thank in hope available to

Operator

today's you Thank has conference for attending The now presentation. concluded.

your You may now disconnect lines.

Kimco Realty (KIM) 15 Feb 182017 Q4 Earnings call transcript