Kimco Realty (KIM) 25 Oct 182018 Q3 Earnings call transcript

Company Profile

Participants

David Bujnicki	Senior Vice President
Conor Flynn	Chief Executive Officer
Ross Cooper	President and Chief Investment Officer
Glenn Cohen	Chief Financial Officer
David Jamieson	Chief Operating Officer
Jeremy Metz	BMO Capital Markets
Christy McElroy	Citi
Craig Schmidt	Bank of America
Greg McGinniss	Scotiabank
Rich Hill	Morgan Stanley
Alexander Goldfarb	Sandler O'Neill
Steve Sakwa	Evercore ISI
Vince Tibone	Green Street Advisors
Derek Johnston	Deutsche Bank
Wesley Golladay	RBC Capital Markets
Haendel St. Juste	Mizuho
Michael Mueller	JPMorgan
Chris Lucas	Capital One Securities
Ki Bin Kim	SunTrust
Linda Tsai	Barclays

Call transcript

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Operator

Good morning. And welcome to the Kimco's Third Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions [Operator Instructions]. Please note this event is being recorded. to President. conference like Bujnicki, to now Vice Senior would turn over the David I ahead. go Please

David Bujnicki

Good morning. you call. And thank XXXX third earnings quarter for joining Kimco's

me as Glenn that available Cohen, our CFO; David executive Conor Cooper, Joining team Chief are and other Kimco's call to Operating members our during Officer; our Officer, President Officer; and Executive the as answer Ross Flynn, Investment Chief Jamieson, the on well present call. Chief questions are of

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

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

Conor Flynn

update of and transactional our progress, will Today, good morning an an and environment. overall our and provide of leasing then third our quarterly components growth Dave on quarter strategy. and two the report give I'll critical our redevelopment performance activity describe Thanks overview everyone. on Ross transaction

faster economy anticipate and north Overall, from Retail the high provide Retail will healthy moving eyes, XX-year well season unfolding to the in critical the of before strategic our guidance. the major every that increase have portfolio Glenn preferences purchasing the imagine. We details portfolio retail will in is consumer Finally, a seeing retail to habits, traffic are our is right could benefit season. positioned Federation dynamic impacting category, XXXX ICSC confidence pace at embrace retail has for of and made power. that were projections on is XXXX, consumer holiday and transformed holiday this dispositions metrics enter decision our near updated resulted in and Darwinism. in National growth key both now we shopping our as form change sales shifts X%, and at is which our Having we increased anyone and from than and a

and savvy adapt While renew adapted in to retailers environment, successfully some liquidation, retailer in and have models experienced or unable and reorganization more flourishing. legacy the been well have who resulting are there are compete capitalized business their many

many market stepping and seeing are rapid and thrive. concepts also creative in a grabbing cliff. new continues We share Off-price at to

the to XX-years. in in tip to began with was emerge. concepts and new demand comp National recent the or on trends restaurants showed retail showing. the of of to Target, recent for Retail categories to And new with reporting growth concepts continue Federation XXXX. gone discount traffic from appeal Walmart most create X.X%, consumers Comparable categories, increased Target’s far in retailers across and fashion. and its ages forms Health and like recorded since is which other the results iceberg, new shop Target example, and by strongest and X.X% sales best XX% just have and that classes exercise concepts new store income wellness Our their Retailers report, groups. traffic the survey this at acquisitions of earnings the spans Company and across offensive of are continuing

capitalized and shopping closings. new are the Why occurring maybe the Because the better the for better. taste reinvesting retail in to right center of Kimco’s prepared sheet. in continuous And changes store for disconcerting matter and this having landscape assets making fact the change daily better a rock investor, our are to validated evolution changing the the survivors sector more The solid focusing by exceptional the while than is better? there So, an to needs. real that quality openings the best vision balance adapt on real and comers are consumers' on basis. estate, and place is with The estate a Kimco's in the the key team dovetails strategy create and and is live-work-play experiences. of

see As great shopping reflected same side our with with center strength continued is portfolio strong also NOI. continuing retailers the expanding for remains space and in key locations. occupancy leasing in our metrics demand new and This in spreads to

continue XX.X% spreads spreads in row quarters are a XX Our new our streak with of lease XX%. over

strong occupancy Us impact XX.X% the vacates.. remains the Our despite R from slight portfolio to Toys

reached an at our XX.X%. has time shop occupancy high of all While small

have value. has coming R weighted drivers them XX boxes with LOIs been with market. our have spaces, bankruptcy been these leaders all boxes and locations of and The the proactively while on but leases As have points executed Sears furniture, XX% significantly only off-price the Us, provide to And demand our remaining recent should marketing to XX Us pending of are opportunity or Toys from more which remaining these XX create and we below reposition than to Holding's R basis are recapture of Sears The on to and primary hobby, assumed locations. strong total or leases ready ADR, Toys the long fitness leases been XX Kimco Kmart entertainment. and start account locations, we for

and now and Market the to future This apartment As around what of City building to strength set it than the shareholders significant strong it both a for in and of for our in thrilled We project pleased closing, Philadelphia of ever lines Sprouts raise for block. XXXX have growth into Other FFO motivated host guidance and is we we a mixed NOI local more into to is window with believe set the the opening given our level we Station were Square our are Center our same his site now, grand long create redevelopments is the Pointe term Lincoln our growth value. Owings and the provides execution our In transaction XXXX. in major opening I'll the to the quarter third important updates. Company last first beyond. platform. Farmers moving projects, units residents to at drive has us portfolio platforms. deliver in The our over and These redevelopment are for signatures just confidence Ross Mills, use on team focused to opening that Dania that of XX% Mill momentum all the of we leasing expect next help milestones opening And preleased include from are major and in at turn over week, Costco's laser week. for series sustainable Maryland with Florida the phase are

Ross Cooper

provided end $XX $XXX million. proceeds now at With of have a $XXX very quarter, occurred with on up XX Carolina you, the year. An million million setting additional KIM $XXX of million those Kim the closings in to exceeding year-to-date South for of for behind Greenville us, approximately the total our beginning We quarter third another the range side, the Thank of Conor. year-end. bottom centers we yesterday sold sale share. sold million, productive transaction us strong we share In XX had for shopping centers $XXX

range. guidance million. set million we ending a for As are the range third of year raising $XXX firmly and the to of blended through within cap the end anticipate low such, within dispositions X.X% to range quarter the new $XXX X% The remains target the rate of we

only indicated, a we redevelopment. As of pruning disposition previously our given with level our plans modest asset of year, activity used proceeds to being disposition the this anticipate primarily success XXXX fund

is growth the opportunities. the enter focus with internal we the year major the right-sized As portfolio, our for Company

and and very transactions raise investor rates opportunities. across capital with demand transactions readily competitive for assets well Core plentiful lenders, sales that continue sources. markets. for over been and investors criteria also this There levels remain in centers the continue stretch continues provide of portfolio asset potential. as Cap a several product and We've color, to to sticky terms geographic In to in tangible seek in course approached coastal for Xs high Value-add and the increase with equity be opportunities. with market meet asset debt dry-powder low as earmarked are limited capital substantial Xs has been disposition investor yield our and the for available chasing willing to shopping their non-traditional upside by private larger institutional evaluating from traditional for financing quality locations. all strong of be year parties interested demand

now is provide program, performance sales the Glenn this off to detail on focus for our the We disposition on still value. will maximize quarter. at continue best remainder believe one-off basis. a stage way we our the on that asset of finishing However, the to financial additional of

Glenn Cohen

morning. good Thanks, and Ross

third at a execution performance our shape. our to position continued solid continues are focus of brisk strategic in exemplifies online, beginning sheet Leasing further range in is projects disposition pace, quarter and come signature are Our suites target balance our and our liquidity on plan. our

per a year. proceeds beginning excludes quarter of income, for impairments, For $X.XX per months on in non-operating million reduction. was the as the $XXX diluted and quarter redevelopment from share, of $X.XX decrease same The last the as and as fourth is quarter, $XX the and about which the $X.XX program, aggressive land produce The share past gains $XXX the transactional from for sales. which share our third early disposition well resulted per the flow, which from income assets of cash programs, during $X.XX $X.XX diluted diluted of to bonds used adjusted, approximately of transactional development FFO charge X.XXX% primarily includes during NAREIT and direct sale million was are was which result our share charges the NOI share FFO compared we fund quarter. and per per million XX reduction from the extinguishment corresponding a debt dispositions to to

XX transformed Our XX% is our base operating strong coming with nationwide rents portfolio in assets metrics. our top markets producing over annual from of

programmed Us impact despite was as speedy mentioned, boxes that of basis Conor vacated Our being Toys pace. addressed the the occupancy XX point quarter, the end anchor and R from during quarter XX.X% at at the the the are

component tenants. and was expenses of basis includes leases quarter and increase. to Most encouraging options same recent was property and due produced received lease filings site bankruptcy new the last and credit X.X% NOI, estate cash our projects. offset refund year Same for primarily was higher by remained for the of the due in redevelopment positive spreads of digit leasing which double the various to growth higher points renewals net recoveries a real of minimum Our rent loss XX side contribution from reserve growth large third NOI X.X% X.X%

was growth from growth NOI For the being ended the R month site nine from redevelopments. primarily site minimum period R rejections leases Same and period delay month at from and with the no the nine by quarter Toys and benefited contributions September affirmed anticipated assigned the or in more effect Toys X% incremental same September, timing both of lease rent NOI Us. for Us

On maturing until and May XX.X the is our consolidation REIT same debt profile of during maturing in longest one no million the the maturity of balance years, timeframe. XXXX, average $XXX sheet debt industry weighted with only of mortgage now debt the front, unsecured

have facility, which for liquidity unsecured refinements. on significant credit opportunistic available any We billion a funding over revolving $X our provides

the site Let NOI same X.X% range of a to site results, we guidance. year-to-date our year growth new XXXX me on moment X% for same increasing Based are a NOI XXXX X.X% guidance from X.X%. to to on our full spend

We listing $X.XX per to a $X.XX of $X.XX range to to from new share full per range a from share range to and our $X.XX share our to to year of guidance $X.XX. $X.XX per FFO increasing are FFO adjusted as also $X.XX range $X.XX, NAREIT new guidance

our on call. guidance XXXX provide will We earnings next

energized and in questions. with forward realizing XXXX, as benefits that, to look your of and confident complete year. the remains coming efforts we'd our we team happy And take Our to be

David Bujnicki

offer start that question an the a you additional may follow-up. want ask to Q&A, I with Before we just reminder a

the questions, you can further first queue. caller. to any are If take our welcome you have Anita, rejoin you

Operator

question first Metz Jeremy The comes today instructions] Please go ahead. [Operator with BMO Capital from Markets.

Jeremy Metz

those stuff that a some you to exactly Ross, can the level of mark-to-market and profile likes next what the moving for hoping mentioned mean? around in assets. Can then put terms I look And in little about modest numbers you was give you you a the of year. more sales could sold quarter detail more rough occupancy, what

Ross Cooper

Midwest be the In XX% and continued terms of a within to was this of Occupancy less of the primarily the $XXX very of quarter. amount but quarters, remains just little disposition other sales the side country. quarter, than high assets previous total on located million Central couple geographically the for the outside bit a part the of around

selling are stabilize assets. we So fairly

year, will as mentioned, As less we next meaningfully it we get into be number. a

confident We size right portfolio that are the we have end very this year. of the in by

opportunities So recurring the we’ll fund and a continue it will with XXXX. growth But FFO to that, for and redevelopment focus prune on assets number. really modest be

Jeremy Metz

to that of $XXX a fair million, that ballpark put to $XXX million So kind is is it?

Ross Cooper

our when think I be redevelopment dispositions to that. that mid started look you million for are number, which low at spend, $XXX in will really earmarked the

Jeremy Metz

then Firm. you one Mattress peer you’re boxes terms the of the can to of those to How in is comment And many XX where going Toys' second from it versus are me, on here, And also just need boxes. up? bankruptcies break re-tenant as

XX have You leases. the

many you is $XX level. do north list? a then the term near the on so closing at are how in So of little portfolio that point rent this And about aggregate, know

fair So that down the that frame assume rents around will is opportunity? it come here can you range those any to or you re-lease as

David Jamieson

address let’s the question. R First, Us, Toys

awarded already signed, those have six or there of were In been at initially. that terms auction

in backfills. So call three XX. there, brings They are have is have assumed this six there single be no rents. box are of will had which before of we and a or the been From of operators. you should that the one since single negotiation, executed, then tenant retailers remaining, LOI split what’s negotiation, have that by either six to downtime is which backfills, tenant seven in other we’ve six Of

So flagged they and that box there, for that on potential see under only then disposition. remaining are out are four you of group, And could be two contract splits. currently the

to which the single has the I'll boxes, then dominant reduce boxes. Glenn. So overall been reposition obviously turn helped these over it Mattress is use Firm required as tenant it seen what we've for the really to And to is cost relates

Glenn Cohen

of With Mattress close regard XX properties don’t month of listed to filling for any in Firm, closings. and the of store eight sites our to first we were now, know the

want want with more fast at have shortly see We’re to of middle as assuming to they the plan might company. fall November XXX% might a rent We out don’t come by out it might be that give pace pretty working figure to improve them. a few to should thereafter them unsecured reductions creditors. plan the bankruptcy But we with to of

Conor Flynn

any we're at a Typically, with like And in be the We mark-to-market locations. up don't front comfortable significant on financials. to feel any as they hit We NCAP. market. on demand those they're time from know, just those from small roll downs. pretty see right or like shop restaurants, service from see tenants, for rent occupancy, And is pad right much all as it's on either locations you highs. There our

bases those that strong be really very feel we will quickly. and recaptured So leased

Operator

ahead. with Next from go Citi. McElroy comes Please Christy question

Christy McElroy

Sears process. XX make back to just being know of progress point? And get context bankruptcy I ready you're But to in it's have in impact collateral the recapture them. what to how boxes, early the looking in regards to debt ability some being much with in your the Kmart process. the on does financing at potentially of wondering Bridgehampton Just terms the

David Jamieson

the XX. So Kmart's the on

And us. there actually So to right that to back coming will what four know we is has be today to go auction. it now,

reminder own eventually dispo one XX%. have as remaining one of own XX%, three, as venture in where the is of negotiation those And for which -- slated boxes is is for tenant other other in we which users. those joint of we the balance and while single well, One and and for LOIs we then a

a we cost feel yet auction, go comfortable said, very been That not still it has from date needs to there. standpoint, So to auction yet. set

these the been doing over clearly event for we've out we is constantly leases. we've be continue what market So prior prepared in we've to preleasing messaged contingent what this and with and boxes quarters

when act. back, them we'll So get be if and ready do to we

Glenn Cohen

part And so usually if company, collateral, Bridgehampton, to in around the very to to leases did. down [indiscernible], Almost reorganization not typically, all we get a it's it might what part doesn't matter they of trying selective are do there back. it's that was probably will going and they're an is the then But that which if or time. to Bridgehampton be have then the is bankruptcy. regards But we'll get one of wind with they're to an and property back here opportunity that

Christy McElroy

at whenever. pace And you a in then, happening Conor, about the changes talked bit big faster a retail

about in context Just have the in from spend necessary opportunities So after also elevated how relative thinking to thinking the bigger churn. investigation put on revenue cash you to is Can perspective. redevelopment you're there you're get trying hand generating dividend? back you a pace environment? picture that created but of to this that how then free about And re-tenanting positive flow CapEx

Conor Flynn

markets look you for we our believers retailers the And entry about locations. population base they the see to that's what the big geographic very Kimco, to to where where to to we in see we we store at there. and the barriers vocal portfolio the their that's concentrate U.S. do term top-line want strategic wanted in transform see long be. were where want for that's goals When we We're growth, with really

some really because have point, locations our diversity, be a the store of those we we what we tenant and really ahead seeing coming found than we markets. think But not concentrated our us. are churn, our it's to is demand a anticipated. stronger that have boxes point areas well legacy the of you're be tenant diversity, We've in the And are you Us So as at customer put in leasing, been those are for boxes us really the retailers Toy There feel you not when R like gone are is look focal beauty those in why the where for actually the that's will the I as anticipated that where invested mentioned. back our Kimco unmatched. through best

for If mark-to-market as boxes great we at for return portfolio to those Toys' can drive repositioning the real way estate driving it us what right we on that unlock the to an focus significant have traffic. you that opportunity. been with the it on got value are a continue And going time. on, we investment by more at We halo potential shareholders really ability living our of surrounding look rents the of then on not to shareholders. boxes been for traffic that effect as to with that generate retailers extended boxes, get we've the will some Kmart that the at it's really now the that quality of spaces the great an our you drive whether or period the tenants these us look And gives look have

you've landlord to just to other right of that to others place, that’s got in mix that so tightly think portfolio and lineup shop you've with n the think, from excited Lincoln to you've redevelopment seen very just the a to that’s 'XX someone has create because to I place to and we're Company in got and lien, today's who's down where page And you really got best got, about turn can't pipeline do concentrated and of trim head each next into world, big and makes perspective. projects as the more deliver with metro boxes you’ve starting we've markets the with the been it, the the making difference where Square focus our going

Christy McElroy

on box to these bunch up of box it follow a that, Toys' eat going free next boxes, be to What of that imagine I to them be can few quick is you about going the one year. cash them splits. that had a this Kmart timeline boxes, getting foots. to were into think imagine have positive? potentially I I sounded impact on to like are spend Just the that? originally talking CapEx continued flow are

Conor Flynn

actually remember are six you $XX cost the work landlord of And right actually at from location. the the for were been TI Toys' majority individual of outlay in boxes. foot capital we and range look have Right to $XX the awarded taking the no pretty when has Toys', it's now, tenants Well, a that the And boxes modest there. there. actually the so Toys' existing

we've and So, these been careful like going are that we cognizant CapEx feel the into of boxes.

it dates box, to to You're get feel have takes occupancy tenants tenant users, that that boxes longer rent we the you're get open behind seen effort spread. the we and quicker. these happen. compression paying of you've right when lion expediting been leased put put starting you split lot like a more But We single of bit the share rent And the economic commence. with of and to resources those a since can see little commencement

Glenn Cohen

are also not these generating revenue same rents. forget, Don’t is generating maintaining is -- CapEx. revenue this just This

these rents have on You a are boxes bucks X Sears that at foot.

generation that’s a is fair amount of revenue there going come from it. to So

Operator

Next question ahead. from America. Please Bank Schmidt with go of Craig comes

Craig Schmidt

toward anchors, you losers actually replacing just Looking given the be redevelopment on winners efforts, future will view space? and in existing

Conor Flynn

part put want the together to to the to the traffic points always you assets, really of all drive day. you how are try during that’s at at to going think generate your and tenants most business, Craig. look traffic the When that I

And long-term so, sign our long-term a this Typically, leases. business. retailers is

best-in-class. have leases. times, we the these controlled real over But So, estate is long-term years our love many would the to estate with been repositioning the real by

back well these coming the seen to the as more So, opportunity to drive as repositioning as boxes you've us, opportunity, have traffic. mark-to-market us get been

look TJX Farmers all traffic. banners, Trading newest you Specialty and been the And the are Foods. doing Those and Sprouts players. it on Burlington whole then quite including of rate it get about, lot a amount their Homesense doing so Post, also and are at Sierra assets concepts, they and compresses of well; with Joe's players their there repositioning and the really more that has we're because cap Rawson off-price with we and drives the Market; the of where When Sprouts tremendous lot a Grocers, excited deals and Whole types Trader

Craig Schmidt

the is space, then And of new taking the business of in the small climate what terms smaller space?

Glenn Cohen

for strong. highest look by up. far on very small It's very, our occupancy, you shops just shop look The at has opportunity existing a small When an business, to so ever in our businesses climate business has the locations. open seen and gives last we've in performing. run are take this XX.X% they way is the The model an successful you small It continuing just that been franchise have which in so very a Company. less to evidenced on people to been to find business focus on the trying can specifically start

seen very very, carriers well, all doing casual, doing active. fast the financials the well, You've QSRs,

Go real category. excited for great one is that fact can the just high-high of again, there the on illustrating that of Amazon further trends, the rollouts, shop how it's a pace be Amazon small knows. quality too estate You that with that no the But

Conor Flynn

you been putting to of look always players like had focus, able look the terms the boost when major, continue in business We fitness resistant and really out a expand hair a makeup those and our shop what’s at of of we've salon, figure health we nail use we shift has that and where When base, haven’t you at those beauty tenant have Craig, seen in the can’t the small demand. a been now the lot do you the salon on it element to uses, just we wellness see type and major we because that here. online And Internet been like services.

Glenn Cohen

part also. we’ve to portfolio little evidence it's Having a the the I sales done, working. mean all it's with that And transform just add of

Now getting profits XX.X% where it's proves of are. the to small shop,

shop that and demographic small properties higher being have just higher You density, to are areas, population, lead they market space to in it's able better centers. add to incomes, the higher higher household more

Operator

comes question ahead. Greg next Please Scotiabank. McGinniss with The go from

Greg McGinniss

about you’re I distributed taxable dispositions and curious have believe is full being thinking of currently how I XX% was the of percent before? about just dividend income you the what if considering raises payout mid talked this and level year

Glenn Cohen

Again, dividend We ahead grow is dividend and we quarter each forward. continuing are we our we level on our is. and today. comfortable analyze the as we focused EBITDA go with recurring board look And to level where FFO go and discuss with are and our the

is monitor. where now, and to and continue and go For fine we're we’ll quarter-by-quarter very it comfortable

Conor Flynn

mentioned that’s and we 'XX. redevelopment grow now believe very 'XX EBITDA is pipeline deliver. As what levels in FFO before, starting really we we and And really the to have preleased the showcasing a have and large recurring prefunded that and going to

as to So, places come which that’s we time back free and to where cash we've help been drive again, want investing the people create that flow. want really time to will us

Greg McGinniss

you the that think do how So increasing matching or goal dividend, I or guess? mid discrepancy about -- out of the XX% for payout

Conor Flynn

and continue to sense makes it to dividend. and talk balance grow and going to grow a recurring it’s our EBITDA when to our then FFO board with and Again, see we’re continue

Greg McGinniss

limited And is we another with redevelopment there expect point? acquisitions? Should pretty next worth at year. anything even for disposition and funding earmarked year this I of buying mean,

David Jamieson

the market that in assets certainly are there like. mean, we I

be modest be continue extremely imagine I selective next year. an will would to for and very it We level

it prepared the with to in remarks, With the for cap rates. aggressive and the is today, high in for the mentioned doesn't rates capital acquiring market. is cost cap quality I where be sense low our the As make still open of prices stocks very us

open get cost when where capital than does relationships the come now, market. long we So, significantly yield acquisition to what We out opportunities is our there. better back. on we'll that's we term priority everything our redevelopment building We're planned see monitor. for for of spend But would continue clearly the

Ross Cooper

spending for out. redevelopment lot that We have a human And on the years capital will us entitlements of take working several future very of getting a deep projects is projects. team pipeline

that we our comfortable pretty can feel accretively. capital where we So deploy

Conor Flynn

be for looking always could that things value sense creation potential makes adjacent will redevelopment add parcels our We and opportunities. to where for it potential

Operator

from go Please Next comes Rich Morgan with Stanley. ahead. question Hill

Rich Hill

of side little the time to want a just part I Maybe on argument the bit of more flow cash debate. spend the

-- just I'm looking your your should it income, pruning consolidated that there your other that of things or be your portfolio, came Is consolidated like when you down statement we condensed looks So, revenue to are quarter-over-quarter. at considering? due

Glenn Cohen

No, it's to amount a direct correlation sales. of the

of mentioned, sold That's months, it over to. XX $XXX last I over relates million what As the assets. we've

Rich Hill

Is at you're to stable looks discussed. to on time, that was go to at the CapEx spending time. because what line maybe because previously point? same But just the Is more up back -- just then is like this it same development that at

Glenn Cohen

developments, the we the Again, Sports some money on back Authority starting We put boxes see come are not to that redevelopments. line. the are between into

look economic you that's at spread, by lease to points. basis narrowed XX If actually our

that's that more put in than capital those again, flows we get So starting. from to

Rich Hill

I the we additional it. But some appreciate Once have thank I guys, get questions. XX-Q, you may

Operator

comes next with Goldfarb The from question go Sandler ahead. Please O'Neill. Alexander

Alexander Goldfarb

Just two questions.

Firm, with Sears, First, just Glenn, Mattress being Toys, the biggies.

can an start to year so quantify about that NOI probably doesn't XXXX of come And back online of it next, till down going can some back in at later. this part. come XXXX. but that much not basis out much how later on But annualized maybe we is out NOI NOI Sears may these when out is you go selling And retailers I the of of go then later coming that just going As as going get away. think maybe still NOI that to guess in understand restructure you're to how of be the versus we an wind understanding with it,

Glenn Cohen

case that with know we get answer do Kmart. them don't really to them actually short we we a of don't have because know can't mentioned, And what's to what know We going with that, balance we there that happen as few to Ray the XX. on know there Mattress in Sears the to but be the Firm, is is of expect been eight the The we happen going as block is don’t other although, final going well. what's

we up I once plan, part Mattress worth is going because is rejection The make as wind years' other would of it reject, point of that they are on getting rent a the the Firm XXX% a claim. on to full

our on are a Firm So, really have NOI. the going don’t 'XX to they Mattress I impact leases, major think

very So, it's very, what to predict to it's be. hard going

makes so for when up to XX think you a of Sears is does it look is makes Mattress stay in place. in points. will than rework, many points, basis come out those news XX the than like I less going And Firm total, look Mattress clients as basis up less Firm good us

Alexander Goldfarb

then just seem really thinking as on any position guys worth don't And far it I the mean, Albertsons, it as next second question there? is What Is for get it your you for would like thinking steps. are credit -- you it. your

hope just it and not this is merger? your with the good sale is especially improving? seem Or either sort pursuing a So some my to likely, and had in over. Does sales And Albertsons good having if recently. being IPO environment of done recently understanding and try that still is linger more to be private seems earnings retail or or affect some

Conor Flynn

noise allowing something the billion flow year sales themselves company they in merger and to improved. be sometime over had a that over in of they during went the And the it. $X.X reduced the shape is ago now a all they're free about think to They do position prevailing for levels. in cash us coming have debt Aid. themselves in period, But They hopefully operations improved year a can get $X debt on do with expected in do distracted time going with to IPO. business from that, their months billion that reducing And to the markets we 'XX eight net they're debt. them of very And and didn’t can the getting the and debt the well, all $XX half about focused the we improving not. the they're listen ask in again and running net IPO or its whether route it's But get right direction to billion for now. I the is business, something they that markets right little have Rite they that good on of us way company

Glenn Cohen

enrolled; add Albertsons an our business in there I'd on 'XX going it again it's we to there just is are that focused core leasing, for also outside Alex our of development, for us. nothing numbers, happens, when -- Albertsons in be redevelopment;

line. in in debt not it's that anyone's anything of metrics our any not it's goes numbers, else So along that or

Alexander Goldfarb

it's but still Glenn, a understand, capital. I of source

have you people beneficial where now to, does So more private help mean, which maybe are sell running the it possibly, last de-lever guys you than like to maximizing the seems I occur? right to dual get you're you where if it IPO and tracking it just doesn’t you dollar. that's guys there

Conor Flynn

this point. not We're that at doing

very on we're execute leave year the if We of considered on table, money the don’t now are it, we're we're for is even upside And that going there want prospects they where much a next or think. so on bullish because plan. about think the I that, and so. to thinking bullish lot very the too We they you not haven’t

Operator

The comes from go with Steve Evercore next Please ahead. question ISI. Sakwa

Steve Sakwa

I the guess first really redevelopment on question is development program.

can and for what even for do kind are maybe 'XX. yields? seeing just side those that the construction you 'XX, think contemplating look 'XX the rents What maybe returns you And As on pressures what achieve? out deals of you and on are you're there you cost

Conor Flynn

and Parkway when look that’s actually actually next X, really deliver at preleased because all when start pipeline look down we're in the we look just actually and with right preleased ribbon the XXX% Station, is apartment family open really opened the expect we it's the XX% section retail Lowe's just and signed over prelease. lease and cutting to and on it we’re XX% Phase so that you our going are in open, and and you in good 'XX Dania our really X, pipeline, really will Square, X we operations feel Grand to at XXXth the Phase into Phase Cosco, the prefunded at Pointe, and there; bring Lincoln have over look in when at really going we starting multi right 'XX; to heavily we're Mill now 'XX; week for of now; preleased you and you like shape, and When developments after its that now stabilize

we’ve well in have shape, great is continue the take Pentagon metro watch off to and large have some going On as got above the Island in tower; we all of when our under redevelopment multifamily as is really that under are contracts. the sit projects City Pentagon topped there that we right construction; side, that’s that few Staten up. The take shape; to continues construction Gmax projects Boulevard currently

our So even feel our with locked we’ve returns. prices have in though been cost comfortable very and rising,

we On the then going And of number fund highest of it, returns hard we’re actually we’re the we those pipeline, you is have entitlements. shareholders. our identified as venture the portfolio. earlier, create working one have entitling to future tree would and in of And we ground going how where decision really and unlock each for a those can how can capital sell We a those projects shareholders. projects, are we our seen for the our cost our as best really best across can mentioned we how to entitlements. We entitlements. and joint value We

to been and look the get the multifamily it, retail right now best been we to higher. going cost shelve going have opportunities capital that, and when call much so look have portfolio in And X.X% is, the for then to ready approach, going to the forward. The returns they X% take future. have we we’re in we’re on at the projects our where And returns at

And so the way cognizant off going it identify then on basis funding best really and going to what’s where the forward, unlock capital we're take requirements value. cost of the we're of our a and is one to and

Steve Sakwa

is blend So what? for just have on you there think 'XX and average, way you will the So, it? deliveries of average returns to 'XX a

Glenn Cohen

you it X%, that to multifamily X% X% the In range. have online and because I of coming brings blended, we X% into look when at between the think projects that that

Steve Sakwa

look guidance. giving the and as and the like maybe Kmart happened timing lot realized you're But watch the I next year was year year. think just about forward there of this this that’s you things tenant And XXXX Sears maybe under list and not and of a

this your As versus coming into as a you year? next does or just how today, look reserves need list that as year big that were consider would And year at would ago? to you maybe be think the they stack watch up

Conor Flynn

obviously that. Actually The we watch a retailers something out it's list and about going smaller and getting lot bit these business. legacy of is continue with talk to little liquidating see a we

is for you compared it Sears And example, Kmart, really public even at has though we XX one look to so, subleased what our have been already is modest locations actually to them it in retailer. exposure, when of past. a years

that years look auction, we'd chance of and some have any overly where think or are three there continue to going as we but of run the any and XXX look that we at disruption that at basis rate of mean, might going of cognizant we'll costs want downtime there we’re portfolio, going forward think normal income outlay reserve we lose of is capital 'XX points that a locations to have four that. all. and on leases, there We in we think don’t the we of that 'XX. market purchased the at sound at our going that because something auction, clearly, the on bad optimistic be is we're So look We is we so retail number still locations. some limiting and again. those a of debt at and our below those I forward don’t positioned

Operator

Tibone The Street next Vince Please Green comes ahead. question Advisors. from with go

Vince Tibone

expect start For spaces? that When what to re-leased. the and you Toys' the already boxes seven been tenants mark-to-market was paying and have rents on open do those those

David Jamieson

as the and we'd to start has 'XX mid-single back those, much half the mid-single of of terms And the flows of been coming So digits. in expect mark-to-market low in into seeing well. them 'XX to pretty in digits,

So again, those tenant are uses. single six the of of seven

So, forward and push bit those than be the start others. find will a little sooner

Vince Tibone

a ago? that on year these in is Were your line you're spaces or those maybe expecting spreads expectations with

David Jamieson

significantly mean, up the of I were picked in leases auctions. below were market most one that

remaining, opportunity look that portfolio, mark-to-market And the slightly they we those you market. whole for when at the So was then were whole the had close to higher.

So in with expecting. were what that's we about line

Vince Tibone

next question Ross. My is for

versus buyer discounted still by assets? potential selling portfolio could deals being the individual are by that You achieve about interested pricing portfolio deals. mentioned you Kimco was Do feel approached by buyers you

Ross Cooper

the I year. the part at were there think narrowed the that discount for level discussions was that were modest still having is there but when early certainly of it's discount we of a portfolios somewhere

think that private and retail equity there groups at I more within So, opportunities are are constructive large on portfolios. a looking getting do bit that

So, that other see some of this into portfolio with end 'XX tail get we you us, may But we're for the program. as at owners.

it to So, finish one-off we we're have off going with strategy. just -- the

Operator

ahead. The Johnston next Derek Please from go with Bank. Deutsche question comes

Derek Johnston

cap that divergence changes pushes between in any anchored, formats? online about you've versus with into you different Could grocery, talk grocery any pricing? or demand Have recent rates seen power centers especially seen for you

Glenn Cohen

much I grocery think favor, market in is particularly best-in-class the assets, grocers. anchored core still very the products major for for

that their rent the So, having for automotive Whereas anchored what much major an there years the replacable. seen are real performance that with either if investor. in I little of proof closed grocer would their California. critical couple of of of investment deals who the an Portland, more I We've being are in priced anchored type institutional buyers agree get was a grocery is premise examples all grocery as the you bit is, that a Raleigh, or is, assets sub-X%. believe outside type past, Northern of

the who the So, now are is, upside. rent how of if and I market any between major compares more performance how their think is there focused markets, you're outside on people if just much retailer is, a bit is a blending their institutional to power there grocery additional

we're So, that's what marketplace in the really today. seeing

Derek Johnston

quarters and associated a did previous volumes And no little activity CapEx a and in bit light. TIs higher it the new than looked XQ, leasing with looked

if portfolio. up is you there boxes or was breaking understand a this lease there's that with related insight specific may and new any can a I that please? into course, statistic bigger But and to slightly some consistent smaller share Q-over-Q XXXX remain is of this volatile a the it Of elevated something

Glenn Cohen

side. that the You're new at by is cost leases spot more on to the also what's on few it driven rent look But a was elevated important side.

foot. quarter you forward over just in over at a this look or XX $XX So bucks, when we're trailing the at

was by. a there is there the the of that's increase cost for additional gain as significant So well where it slight driven than compensate more and

much your we So and and pretty trend out continue. the four those will you assume back strip you're trailing in

Operator

comes with RBC. question go Golladay Wesley Please from Next ahead.

Wesley Golladay

awarded be, had others. you construction assumed to think some Toys boxes talk at maybe of with by you is Could cetera? six Looking Us, those landlords, I And entities mentioned others. retailers might Kmart's the it R Toys' are you about maybe the who teams, et

Conor Flynn

assumed, So we all have primarily they were retailers. those on that

construction, have cetera. own So they who on get furniture it, And been the managing off so these those with the their operators, thing. retailers, same doing price graphs would be construction Toys', Kmart's of their and you have absolutely the then popular fitness, et drivers been

Wesley Golladay

we when $XXX budget then the part redevelopment? million. dedicated Is budget any Kmart that look year, higher And there at Siers to level, the redevelopment at around of a for it's next believe I

Conor Flynn

to we how this just holder. as fee a is that to again, have a see out. that plays wait There have will we and But place

Operator

comes from Haendel question Next St.

with Mizuho. Please go ahead. Juste

Haendel St. Juste

years' full Thanks. like once same and more I activities settles think bit that’s this you Conor, know to two have growing basis year disposition REIT in XXXX looking are NOI a you generate now 'XX, growth the And guess, about row. back on not bit talk all obviously steady-state you. guidance the the down? drag. you the NOI basis a more curious noise held portfolio, raised for XXXX what quarters ready but on I'm transition same-store guess I guidance, a can of portfolio Kimco the a and the by a store I base,

Conor Flynn

FFO best it be rate NOI X% have to growth that order believe entire and Our the in X.X% to REIT do that X% in on shopping growth. higher. have same really sector the to and long-term a that’s center in to that, we run site goal That's of north we an or long-term rate

the to you at what our goal when that’s do there. long-term and so we're trying get And to portfolio look

into because are we ramp that the change, of 'XX to us 'XX. and some and continue from dispositions has redevelopments to they because the 'XX accounting ahead developments hurdles because did ramp of of start of the Now, that continuing to

cut growth that’s So, there. a going say really we're top year. where we have it obviously our make committed And off that goal 'XX across portfolio, a to and see the have forward. we we We continue work is our run is to repositioned to where quality top-flight portfolio can we now get to

Haendel St. Juste

A -- follow up question on side. the tenant

your to partners because traditional B&C and seen year it's who of of more tenant this We environment the as and tenants opening center seeing starting sometimes Five you’re impacts next how are go or into for retention strip going it Mall stores front of these some the large thinking here often a competitive? have view gets on number of a number tenants on cheaper. still Thanks. forward Curious what Below

Conor Flynn

focused anchors headed with big you and we're to they're business is monster that lot the opportunity they watch the we visibility competitive have competitor. doing that you It's entrance. used continue really closely. when at a at exterior something about looking have. the When And look the to set look to retailers a really on sure of malls at look that though the when fields they that great making that we talk a there street, as you four think the and that listed set, off, parking an really about And retailers you are at, mall

that to parking two you exterior of or that about only field be And to there's could the one boxes visibility really flip and exterior and so, maybe entrance. and that think that the mall, when retain type probably repositioned

that And so box retailer portfolio A-mall box. concentrated probably limited, or now a, for doing either markets, top or do is the we've the today identification XX we very be probably a a redevelopment that gets repositioned going discounter a the limited them to it luxury to off-price if likelihood very in of an they're and and that because has believe back,

And as we've so, of to that the at been for supply number talking continue a now well for channel that that’s why positioned look we portfolio years. about

Haendel St. Juste

how Do levels about that, years going how you forward. historically, last have say have think -- handy what should or the been retention we maybe thinking the you're five and

Conor Flynn

look at shop you when that continue assumption. to Not renewals small pleased retention with junior options we doing, budget and only in that also of rate. the the amount in and be mean, be we're continue I boxes boxes, increased. have levels boxes, the to the retention anchor on we but The

watching somewhere of what's to digit single numbers the when reflection these options it. a think well. and with high down renewals opportunity in you in and Yet when I tenants been move we’ve portfolio pretty really go have are options the It's single it's else if that stream, quarter-after-quarter. capital mean, happened think the as putting real they closely running improved without so, into a portfolio signing better digits have any evident high I they get And can the renewals deal. that's they

Operator

question Morgan. Please JP. from ahead. Next comes go Michael Mueller with

Michael Mueller

Hill developments, guess we through opportunities When Lincoln you backfills development a new are Square I Station to going Dania of the pipeline and see that those?

Conor Flynn

the world. and of Dania’s look Lincoln haystack the that world those to in real continue to the going the needles We're the for in Square are

So, our and the on see huge portfolio opportunity we look redevelopment of the at side. amount

it. going look And so organic to to pipeline. that the that's where continue phase focus and we that Dania to growth add to for we're multiple internal has can

that mind second ground in We've we to obviously Dania have as construction, now phase also which keep X forward. The are wanting been apartments is lease. moving on is Phase the a under

that but into continues project And anchor one so first it's a next zone phases in not as the to that evolve listed really as opening comes week. it's an

ground think of these of the are more going redevelopment the see going portfolio, ups. of you see those I transformation more types as forward, So, to you're Pentagons, versus say

David Jamieson

It's able the properties. And the these that gain team entitlements. further where identify can working we been that’s really has on entitlements where to been

Operator

with Your comes Please Securities. next ahead. One Lucas Chris go question Capital from

Chris Lucas

need given it where there the as this you Is in and year of stand a for just given dividend sizable sales special the quick potentially come relates sales? Glenn, the question asset to volume you to income taxable where on expect asset any pricing.

Glenn Cohen

all. need in of mean, I a be composition at the special of very don't dividend we we lot we been past. it's us planning in dividend than the a done a put think where different what see you'll But the will position to strategic have

good of the capital to capital. market Right the defer capital XXXX would of will it gain. be level and now, it of I ordinary had exchange be we of have not gains, So there mix to pretty return has some because a no think income return used

taxable we capital So, year. significant in have this of pretty gains that income amount a are

Chris Lucas

sense versus a simple you those were backfills. what on the Kmart And potentially as could quick redevelopment more is? you then that that us trigger Sears just boxes, them XX bucket Could those question, Conor, likely just a split between to to that are give if to

Conor Flynn

that is found capital to just number lease the table There we fits that of the limit it there to number have do is it on a in either retailers our ground fit out. of individual we've in ranges. It's and do as all. a now waiting in normal can that looking as dense a scale X we of that we What is or urban locations that that could QX focused the patiently been mixed terms box development, number been large to take in at reverse assets And we've X those are PI whole are there it's for. to built-to-suite probably or and a

on range, So costs is right rents $XX are you a at that the very said, the in as to on. within -- we're And and a have which there that on foot we look those spread. spot focusing the our $XX achieving the the that we're sweet actually we've probably visibility ones when

spread So going with where forward. at get if continue be the the see to as retailers back. it we other really through that's go the table we ready of we the boxes we'll But process,

Chris Lucas

we a should on Rico in follow be or Sears. this about anything operations And through process? they different then as Kmart quick just thinking Puerto up there about go unique that Is their

Conor Flynn

in some the tell just entire are they're would sales chain. Their incredible highest I the of performers there. that

a as them. -- and for ones they amount were create that see profitable significant are a as EBITDA reorganized so entity those And of

just So, keep in mind. that's to something

interesting on on mention been portfolio the is as I may thing change at Puerto should that which there Island. an in The Rico look other deemed down has cap just development the as zone, for we the rates our whole opportunity Island is

Operator

question SunTrust. Please Bin Next with Ki comes ahead. Kim from go

Ki Bin Kim

it stock about is you doing do painful of Is that you comments sales, you’ve But dispositions. the consistent other very to a Going curious your asset mentality too I really want back market in much. do peers? lot in bring stable market turn something little line don't changing dilution with sales pricing doesn't more? or strong in you your do can appreciate basically that's more and I your not But but market from bit your more it. more it in know that overall, for keep leverage, terms times and what in asset know been messaging pretty X the above about do sales XXXX don't just just their why down to to asset a to

Conor Flynn

are of portfolio. in existing with We're But where I mean, performance portfolio I think right. quarter-after-quarter the results the it sits on we're strong very the seeing confident in you terms today.

very think portfolio grocery portfolio have But a that, centers, that recurring quality, really unmatched. of to FFO we than are core, stated redevelopment really to so portfolio in we here within anchored an set that and excited that have a back as just 'XX. confident we has this we We mix right-sized as more the opportunity growth strong for believe are well is bring

future we're portfolio. about this So, within the excited

David Jamieson

EBITDA, that add growth I at beginning and EBITDA of you made net naturally they we look just from come are would thing have now flow. these debt redevelopments, the down, it's the going and The to all to other is developments when to because investments

to in development now just invested billion $X.X that have projects beginning flow. are We

naturally. on leverage come comes down EBITDA see you all will as into that and 'XX So, 'XX, board further

Ki Bin Kim

and change points down a XX? cap on applied call. to rate portfolio XX it look But you Second has internal today the XXX question, cap one. timeframe, that asset versus your tough rate rate directionally, a months at for the you're I view has on for give sales. this But might your over know going pre your cap be million of or come applied when basis not the portfolio ago XX how

Conor Flynn

of we're I yet. the a we've XX hopeful And amount we the percentage done you and that our asset ago, think take best compared significant look of to portfolio we've that all between represented versus when put the implied portfolio at But But overall clearly today have today. where have bigger to that’s value. the be see where the as we is portfolio, up well into we're cap price months repositioning gap. still our that the of there don't narrowing been optimistic we'll within that stock think as work a our a today, opportunities redevelopment they sit flowing, start as that we we is continue would market discrepancy on private the the big rate from that that

Operator

Please Linda Tsai comes question go The next ahead. with Barclays. from

Linda Tsai

range, flip as side, know sales on figure understand data special any out of to service there you and can competing been focus at and your mile you retailers Are trade area? centers. centers a impact this share more help of more does the help providers could have look cannibalization? is and in still data relying the now you you have trade true or which help then but look to on expand density area. retailers geo understand you And attractiveness data And the insights a you technology to XXX of the said I past the

David Jamieson

ethnic In the look to which the draw unique. pull have when it's a aging you miles terms they they pretty XXX, grocers, at, have outside is XX draw, away, that interesting grocers, of can actually significant it to from traditional say XX we your

you when see so, keep you And into anchor, an them that consideration. as

better utilizing. data, case As they we to to of in continue to utilization how partnering very get with be retailers that and it are relates understanding the of our proactive

others And both retailers best what's in for it's are And and And and of customer forward. customer, to how we making a Walmart, evolution oriented customer offering on more Target customer. to I as and the with important. more service-oriented, needs the pickup of store critical going partnership people which so what mean, retail can have that’s collectively, be, they still end their and in buy joint the our to to draw online utilizing create and such is customer really, the most

And of and those performance, those are some so you the see it's outstanding really winners result a that really seeing efforts.

a as and part retailers us we for work forward see So our going business we'll continue to it of with critical alike.

Operator

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

David Bujnicki

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

Operator

concluded. This presentation. you conference now for attending Thank today’s has

disconnect. now may You

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