KIM - Earnings call transcript Q1 2019 | Kimco Realty Corporation

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Operator

Good day and welcome to Kimco's First Quarter 2019 Earnings Conference Call and Webcast. 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. I would now like to turn the conference over to Mr. President Relations Vice Strategy. Senior Bujnicki, of and Investor David Please go ahead.

David Bujnicki

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

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

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

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

Conor Flynn

space, the accomplishments with morning the platform some will Today will touch Thanks, meet good remarkable discuss of and progress market highlights investment review is on challenges track of the fitness, services. however, to demand current over more retail transaction numbers a and store store the In of a world and the country, how time, assets. follow we with Kimco's X,XXX QX off-price survive we're everyone. number order plans locations Signature environment, retail I and I'll strategy medical, designed the not by our continue activity will with we briefly than today's guidance openings new year create the our widely to new restaurants, additional QX and the our see close will are in We the updated the our stores discussion At same particular shopping going real Dave, for openings forward. center our underperforming strength count, reported growth discuss as and anticipate and some outlook. media. making double of beauty, then describe then Darwinism. provide for likely optimization current ahead. on estate and Ross across the transaction XXXX the strong and in quarterly Series Glenn of our

of pick even can grow effect We also value rate placing more anticipate drive locations the for clear buy retail a physical physical will evidence conversely, the The adapt at drops e-commerce how physical retailer significantly a store to online opening and shown close retailers ICSC when off growth. profitability. that stores. market, up increased that important has significant traffic in phenomenon the is halo report, According more in-store on report web that to is and traffic

ourselves positioned vicissitudes have and to retail take withstand We advantage estate environment. of the real the of

a to footprint. entry, physical market, volume partners, consistently retailer lack retail retail are space available no concentrated space. be, locations are talking e-commerce And their where and quality in with high and with there there on that to we is have but heard of is quality of our the high lack to assets want profitable invest anchored high These integrate barriers Our retailers stores. markets to the heavily will by high

right is but real embedded evolving unlock are locations tenant base and quality rapidly, leases to flexibility us finding of of current on curve staying retail new estate environment. diversity tremendous navigate power to and our ahead the we The growth. age market give Our and focused below of sustaining the the the

we a growth. portfolio our with producing of start highlights, the good off to year to Now stronger-than-anticipated are this

occupancy the by climbed first same-store retention outperformance. quarter increased XX first points. and years, higher basis and for the volumes our in leasing NOI in drove QX XX X.X% Our time Higher over

New Target, world that Burlington, today. our others Ross, Ulta, successful portfolio and retail illustrate Five caters concepts many Below, Old and Navy, growing the deals in with to the

executed plan the address growth team and has on in XXXX quality the portfolio. and removed, the tranche lowest of from to XXXX drag a shine to Our our been disposition Since starting are portfolio our the through.

Signature year portfolio. and balance on Our completing this the priority focused Series is opening of our

portfolio. will the reaching program a to that flow stages to are We significant start investment of the multi-year cash generate final

our We year strengthen million will are of $XX million cash to on coverage flow our deliver drive free that incremental NOI EBITDA ratio. FFO, increase $XX track this dividend our and to and

and include lease at of ground at of QX from Pointe Dania Dania at highlights the Hobby Lowes and opening II. Phase the Pointe residential TJMaxx Some Lobby commencement Mill Station, the

addition street In Pentagon are deliver we also this XXX-unit on HQX this which our Amazon across summer, the from to Witmer, a at is residential in Arlington, The to Virginia. schedule Centre, tower planned

continue To total or our make are that platform. progress multiyear a we discretion. runway and at to use we As units investment with keys we construction hotels our towards residential under our we we future, and entitled creating respect activate operating. have With entitlements date, eye substantial the mixed X,XXX an XXX of keep can open a future opportunities of the to

the balance this largest any us, assets the and affording go sheet all long-term organic protection and end, for to improve. change contributors. our our our and profile road. high-quality it of shows, strong flexibility QX quality growth more as will of growth detail continues the into that about bumps withstand NOI In quality portfolio the the is will leasing and strong in both to us remains to Over Glenn growth the

course is to the producing committed solid and stay team results. in Our

and nominating Joe outgoing for Compensation Dooley, the Chairman board. devoted Grills, Chairman of to Executive the long of Finally, I Dick to Lead their would and Committee and outgoing committee Director governance like thank corporate service and the

manner two behind their a Ross? civility integrity, contributions They conducted our and gentlemen and commitment these professional a made enduring leadership, a years, leave In characterized high and themselves have extraordinary always have lasting to by have the the honesty. legacy. Kimco for standard many in board to they addition set and thoughtful and members that over

Ross Cooper

Thank you, Conor, good and morning.

first year the plan according went place. only of level The taking transactions to modest of with a quarter

heavy the about quality the of current we activity XXXX proceeds for $XX paying and XXXX, off. million the quarter excited sold of is results $XXX in assets and undertook with portfolio in that the improvement year share. extremely and million transformation Kimco seven this we're Following approximately showcased gross We so far the

our and an the best the disposition aggressive deep activity We completed allocation of confident redevelopment density Gardens evaluation middle by to site. We of disciplined of either the example mixed transaction second volume approach activity of similar the range in our to Gardens capital net expect with proposition the Palm sale we from a and We was an buyer remain did disposition sale and when in concluded majority use be million the of approach. sale or evaluating most $XXX an self-development quarter of property Beach offer accretive a after venture that of year. our was Beach highlights for $XXX of opportunities. the Two last site shopping asset the outright considered quarter The for creation receiving additional scenario, a Fione the ground an that was value million year. Florida. joint is being lease Gardens, for Palm in Palm to Missouri with center our Beach in a the [ph]

time The the blended average Us on the R first of driven quarter asset had of rate Toys our cap produced in-place former asset sales by at box Crossing a X% vacant which sale NOI Arboretum sub a closing.

XXXX, Given X.XX% of the the and for range, QX the average an to over anticipate the sales prior rates be to blended full-year X% in execution the improvement in of in our on pricing of in cap we the expectation X%. sales for quarter X.X% expectation to the remainder

acquire leaseback year. quarter On Albertsons Coast the this the no far of the completed $XX additional with There sale three West million at acquisitions unowned our front, anchors acquisitions Tier-X announced last transaction were so assets. grocery to we

main and to which a signature at redevelopment portfolio, and is into opportunities off exciting strategically very to it the progressing internal program pass we the financial deeper growth Glenn dive is accretively to I'll evaluate existing enhance the now While development series pace. results. continue with our a focus for

Glenn Cohen

from good morning. us, and Thanks

first quarter same XXXX our size of growth generated on has occupancy, significant the strong and increased in progress projects. NOI execution development Our and redevelopment

quarter, definition land and transactions. losses before details first of preferred your Now bring change in I our elected securities, to and exclude sales, the FFO. want investment the NAREIT to discuss report we In accordance the NAREIT I gains restatement, we've from attention equity to the how marketable with FFO

these no and from periods will this We in FFO impact items Please mind election. to adjusted, transactional conform that keep has present therefore, that were previously on calculation. excluded prior as to

$X.XX a the was excluded million as FFO adjusted same forgiveness FFO quarter was of excess NAREIT results, quarter XXXX. level quarter the Last The quarter was first the diluted on QX our the that year's first color portfolio $X the insurance some XXXX, of for to for the same includes property Now in share receipt Puerto related of Rico proceeds gain for resulting as diluted as period quarter compared as first per on XXXX FFO per million a of basis. of quarter. current of the Both year, $X.XX for of in million share have amounts $X.X debt. $XXX.X for from included these each million to $XXX.X been FFO or adjusted. last recurring first

$X.X of G&A due and quarter primarily Our the lower million the while levels, leasing was internal lower benefited capitalization accounting lease interest XXX. new from to by expense of resulting from expense adoption lower results the debt Topic standard higher $X.X million, first from legal

higher million rental fees NOI months. remarkable of $X.X higher past in was contribution million and the the of $X.X from same-site these $X recapture of $XX $X.X We of million and dispositions termination from Offsetting decrease during below $X from and XX quarter. also we completed NOI, is rents million the development organic incremental million over we sales had were income NOI lost also straight a line from lease the projects. billion market the reduction which since pool growth There our of

additional For market normalized and gap fees don't of revert items expect straight in levels. the and the to more full-year have rest and our we below of to above any line termination XXXX, guidance rent lease rents

leasing pro-rata up for X.X%. combined up our quarter rent with X.X% was comp growth anchor tenet portfolio to but basis by due lower by revenues is Firm other by overall from season, operating modestly is points NOI and grew increased year-end in XXXX continued over to is positive points ago XX quarter. the basis Due than effort also strong performance by XX anticipated. points basis expense in operating higher same-site there for points up results spreads points leases the first basis XXXX the XX team XX.X% basis primarily positive X.X% minimum to these driven lower last occupancy Pro-rata new pro-rata produce was tremendous XX spreads occupancy vacates includes small and contributing leasing options our points continues basis Mattress growth and XXX seasonal of pro-rata shop Renewals leasing holiday transformed occupancy points basis up X.X% up first increases as with ninety points. a XX.X%. increasing were XXX Same-site XX% Our Offsetting from previously year, points rejected. a credit negative quarter year-end the from XX.X% year-end vacates negative the and basis XX versus which down NOI XX increases year spreads from the recoveries XX basis

is quarter the improving level preferred perpetual recurring the balance from X.X to with a to improving from at JV at sheet, times look-through debt times times, consolidated year-end. and On the X first X.X% basis year-end. outstanding, pro-rata Turning stock including of finished net we EBITDA level times XXXX X.X the the debt

Our liquidity liquidity credit outstanding with position revolving of only remains billion over $XXX on $X our very available and $X.XX strong billion million immediate facility.

maturities for minimal due XXXX the XXXX. only and debt of in no balance have We debt

of stands are first weighted our Our per FFO we industry. reaffirming range as solid to the maturity longest now quarter average guidance and on years, of debt share. FFO adjusted in NAREIT diluted XX.X Based $X.XX at the profile $X.XX results, REIT one the

we'd full-year NOI In to X.X% same-site guidance be new for we happy to X.X% our questions. from range range of that, to to your raising a X.XX% X.X%. take with are addition, growth And

David Bujnicki

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

than to If more Adie, take queue. you you're welcome And first additional have could rejoin you questions, our the caller.

Operator

the question-and-answer begin Rich Morgan question you. We'll first now is ahead Thank The Please [Operator from Stanley. with Instructions] Hill session. go today

Rich Hill

as meaningfully was we quarter, morning, that was how maybe CapEx you tenants in higher looks guidance so wondering -- what was other it about than guys. prior so Hey, have drove point Really are NOI prior good and CapEx could it some this like impressive I same-store it quarter, quarters was prior about things one give had just thinking noticed if that philosophy? to some leasing impressive at certainly you four us the and this pretty was

Dave Jamieson

it. appreciate This We is Sure. Jamieson. Dave

Our quarter, well important relates term note well CapEx weighted prior but to is as as the our as our that as it have costs average leases. increasing increased the it's elevated from also rents of our to

itself So, when environment cost construction the to really that additional driven rents and you are The higher labor. at by is look elevation we cost today, this driving costs, offset of cost. hard

to actually is when relative It we've tie the the total it that's you our rent. all over seen trend that improved So effect industry. the X% our in rent But together, net base throughout improving. of course

net direction hoped. the it's is, quarter, right the we heading This so in had effect as

forward, continue to see to continues situation mindful what back have that's As It's it quarter-over-quarter. to I effect driver tie our again, together, improve the of that rent same something the been. we we all go But as of, net we really always but be occur. has

Rich Hill

Got it.

construction like seen be, that's just just coming across and -- types. trend are be CapEx just the property that's clear, costs, and most so other it increases a we've of and sounds obviously labor And from to costs

So wanted that understood I that make I just to sure correctly?

Dave Jamieson

Yes.

Conor Flynn

Yes.

it. got You

Rich Hill

great. Okay,

question think my Thanks, one I guys. that's and -- my follow-up.

Operator

Evercore. The Samir next Please question ahead. comes Khanal from go with

Samir Khanal

guys. morning, Good

us but same-store, you midpoint what to deceleration the you sort suggesting think quarters, did you're coming Can we Thanks. over walk of in a basis to -- pluses the sort of which strong, you certainly the but You bit quarter guidance to the by for through, guess, next of the XX growth get kind kept few the and and about $XX of is up are went points, I trajectory need the back minuses million of quarters. guidance? of in

Glenn Cohen

still Sure. we we very we portfolio we range Samir, quarter actually we're in, the through year that on as things commencements through I look days tell a full do the of at you with and can on is are guidance. that timing tenants they an actually And to rent of on kind eye obviously where in tenant what year, assessment next that toward our have the comfortable stress we Again, comfortable the want early very impact with the rest the over the just XX NOI fall the mid the could through at look and guidance came keep first quarter our same-site unexpected of growth. as watch the upper have be and have current that would are list. and may as feel to end hi, Few pleased it's Glenn. we to tenants test go that of range. year, it results and take but really

produce well want numbers think take quarter-by-quarter will the street. it appreciated we by just and that So and slow, try be the we to

David Bujnicki

one have we coming; more want Dave Bujnicki. I a we're X.X%. mind do I to in next just is also a Samir, comp this tough keep quarter have follow-up, on

Samir Khanal

before seeing a Okay. a guess in a of re-acceleration the sense as point, along as you much And second see the how can I could to in second-half? we follow-up quarter us dip give Dave, kind your

Glenn Cohen

closely. it's We're Glenn. it Again, watching

could… know you You

Samir Khanal

Okay.

Glenn Cohen

be -- X% somewhere range… in that

Samir Khanal

Yes.

Glenn Cohen

the in -- quarter. second

Samir Khanal

Thanks, Okay, great. guys.

Operator

The ahead. comes BMO Please Jeremy question with from next Capital. Metz go

Jeremy Metz

good morning. Hey,

wondering your on and your to the is it little on started that about that's closings. store year? of what kind store the continues, the for for more a to so that the going I expectations how you Conor, impact optimization outlook expectations continuing the with Just where that portfolio and compares assume sticking for detail talked we

Conor Flynn

Yes.

strong so So us have, integrate stores that in mean far to far, they're with performing get have reinvesting portfolio, early look when our good. the we're obviously we in e-commerce. sense but transformed those at stores retailers year the I we a so you and that

towards So of the and can future the retailers. how going we really previous to like years and we've to the look look those portfolio best we haven't what seen the backfill continue retailers that we seen and fallout with in is

look that at in very late XXXX had leased look aggressive absorption and continue for So a all the have trying we've reposition of our to these R world we you retail. recapturing. been that demand continue for we portfolio XXXX of when And are out real that Toys Us of the we strong for see themselves board where there, boxes the to you well-located retail it new monitor But across some when the boxes wave will we to quarter-by-quarter, we'll anticipate luckily, have that's the right retailers estate.

Jeremy Metz

me, those same-store you I your done vacancy some initial going one box that Palm back And outlook therefore Beach, right. included the you and and were dispositions, All the at just all? the on, selling in second and from your did think the repositioning Toys Toys, help pool in vacant going that to did mentioned of

Conor Flynn

we have anticipation of Yes. I We've And redevelopment Beach the for were was to assets certain impact site. have for it it was site years. an in been same impact on within definitely that That keeping for site. site that's our on wouldn't tenants mean essentially the the several the Gardens held there an certain a really the specific dispositions NOI -- zero same budgeted so redevelopment. as in Palm was do expectation, all that

the on rate this have Gardens Beach either quarter. or didn't range impact Palm for real any So same cap site

Jeremy Metz

guys. Thanks,

Operator

from go McElroy comes ahead. Citi. Please question next with The Christy

Christy McElroy

morning. guys. Good Hey,

well. not uncertain, why which Just about, is conservatism change made that there should guess there, that thinking the to are but talked -- FFO your any same-store, of about? of level you the regard FFO other in change second-half sort somewhat as offsets in the range the be we with you I in still small

Glenn Cohen

don't in had probably Not I won't in mean guidance did my have repeat remarks. And LPAs recapture more that as of We first first the don't to quarter. rents in the and I the did we have the them outsized We further of those were in a things quarter in prepared a that LPA year. any couple really, Christy. we an the market than normal. few that leases below it balance had expect again the mentioned

as we're the guidance lower now, going pump is site guidance. same end again did leave our right for the So to we of and

Conor Flynn

Christy, front-end more the the beginning are the dispositions, to loaded Also of year.

So that into it. factors

Christy McElroy

following Got Glenn, color then to about, you Okay. or online? incremental is of provide NOI the from that annual million can remind can you been a timing you've it. NOI impact? the coming update is an maybe just million or the And on up just that $XX little And those bit more on talking $XX sort that from redevelopment the of of projects XXXX us that

Glenn Cohen

The XXXX $XX the million incremental impact. is to $XX million

Christy McElroy

Okay.

Glenn Cohen

incremental I first And again, the was as about for mentioned, $X.X quarter million. amount the

to we're that to achieve $XX million $XX track million So range. on

Christy McElroy

got Okay, it.

Glenn Cohen

the in expected somewhere is And those $XX the to the range. be total, for $XX just year for the total properties million million to

Christy McElroy

Thank Okay. you.

Operator

from comes question ahead. go Next Please Scotiabank. McGinniss with Greg

Greg McGinniss

for And morning, has less debt with list, that on XXXX-XXXX in some to Hi. then watch timeframe. Kimco watch on at them it's peers results exposure uncollectible call revenue I'm robust it's year, my guidance. let's your maturities internal expectation and far guys. the this operating bankruptcies Good -- tenants so have list, if clear initial since evolved looking the curious or based

retailers to handling still well. those some address, as you're time I'm but there's how curious So

Conor Flynn

good a it's Yes, question.

do of of we we less has than look year, has the at we guidance again with some there so this have. or think strength far and our the that I when closures locations that anticipated, to bankruptcies less been

up Sears and portfolio leases below the For vacancy the our locations we forward as we the example, they going occupancy historical or shows that quality versus switch, obviously in market are QX normal at with rates. to portfolio, slowing saw when the spectrum continue continue look our to are these rejecting that you with which churn tick that a in see we our rate have, leases, very you monitor quality only is Kmart that high of two as

the continue management and on we'll look we then that our So our mark-to-market understanding tenants we're risk to focused tools, monitor at when portfolio, in risk the at of leases really closely. those And leases to on reposition real time can may years to our how see we scores work you and really really ahead fruition continue of estate. come improve. And those credit that I when think

only peer the our investment highest XX. that think tenants I the top has in we're grade

We to that market set at improve retailers leases horizon, that. doing below value. no a to a development of who with we and which and these with lot really are in And think see their legacy the that really going successfully A locations to little these into of of we path continue locations. the look are think great very unlock When new in retailers, right thing physical salivating that good who's we are actually the good is brick opportunities capture forward, position these we're we us. for mortar are you to the on for types on the retailers retailers implementing e-commerce

Greg McGinniss

investment next Series but there's year years? future how pipeline multi-family are as and here, And then fall the to development Great. the and about over a Signature potential expected of development the recognize still next deliver beyond, going of you few left to a is investment lot I just and thinking follow-up

Conor Flynn

not fund over Where mentioned shareholders what the mixed to value of drives a X,XXX used we're good for to our look which retail developers it ground through that continued titles apartment allows long a mean, ways I it. lease to apartment of remarks component is to to the requirements but us path sales we've to drives on lion's today capital have value question. right doing It's the taken path the where share our we term. traffic, unlock have units necessarily prepared gain our of the have that really I and capital about in create cost sits we and my to entitlement

around do as to the to a nice comes to and forward towards portfolio. look going want when assets see our opportunity we Signature add where forward. continue Series we entitlement We unlock see pipeline opportunity we the continue very will of and our off what future our you'll cost going what's best value? see be next way to capital in of our continue work selective that finish terms that and the of is to So the So but in

Greg McGinniss

Thanks for color. the

Operator

The Goldfarb. next question go from ahead. Alexander comes with Alexander Goldfarb Please

Alexander Goldfarb

Hey, good out morning, morning good there.

first questions, your two someday, capital just plans, at given to Albertsons -- on that happen. on and we where be sort Just will the the of are that maybe in cycle seems the of monetization something maybe

guys You really a obviously run have had good XX%. up year-to-date

one as You're maybe but not far. you're not include to then on and don't de-lever. two part about way could the equity you side. guys it equation preferreds solves leverage you so which reduce the dividend guys well high starts And at know question you are the that just but What guys preferreds to of if quite consensus I with issuing at least you give to and grow the hopefully thoughts? continue

Conor Flynn

Sure, Alex. look have When thanks Yes. issue no our equity current we to at plan capital need our you levels. at

see our developments capital where we proceeds strategy plan to lays be We dispositions the continue our and finish Series to Signature match out NAV a off from significant funds discount and to redevelopments. really our can our

remember have already of completed the funding for is of these lion the You to share projects. most

because to I dividend of our forward. actually a be of FFO, capital and this allocator going end the get to with to have one be will year good XXXX. towards patient coverage reduce our continue NOI are and what's it incremental look EBITDA And help so -- that to at going into that's the we the we

between now also have maturing XXXX. We debt really no and

levers you the when you look preferreds. the we at have, clearly so And mentioned

have of Now callable options. that They're we on that's preferreds. the but callable at are some do option, our our beauty

forward feel sheet liquidity that So positioned we're well we're is a improve think we NOI are the and our balance near-term and of to we and company. but the good the We these of and lack very, when going position are forward. Signature see today where at of we and look we see We we'll maturities the so our Series and we long-term, in future because at going do want what all the with in appropriate comfortable position. because the of look where of metrics confident feel trajectory very

Alexander Goldfarb

analysts far you've Okay. if the as I dispositions, or, but really you, earnings. still goes, you guidance -- to before, as you And guidance then sorry even impact front-end impact even several if mean responded weight doesn't your know

your list So just of is guys something you the because giving experienced what that maybe changing or just retail of it, are in is will increased some that years be past you overly store cautious or in few being in there sort? watch that's you closings trepidation something

Glenn Cohen

with on optimistic and and I how watching about are watch still by see are the just would quarter in first quarter headed. Glenn, the we're of mean thing it I go. happy things our take the budget we it's it's We're closely year, Alex, say know, same and out again was. based things results guidance with what tenants list the we'll our you quarter cautiously really on things where in we put dealing very

Alexander Goldfarb

Thank you.

Glenn Cohen

Thanks.

Operator

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

Craig Schmidt

you the focusing Thank aim on transactions. ultimate guess that three what do is you. I sale I'm want of and here? leaseback Is the something more then to

Glenn Cohen

very type look struck But that was going and estate. within $XXX particularly we banners creation, cap to continue for that substantial sort the to on prepared the think going you sell there internal to for rate be we mentioned average Signature to as focus square as on We very tenant Series. grocer of strategic Yes, it's three an Xs of the both We'll for in confident when to on other for a assets. assets, any feel that at the the attractive the was own main sales. the ensure in evaluate mind. selective. value well exploring at concentration be particular comps the we Albertson's It's opportunities those year some be growth as XX foot West And Coast clearly keep in the deal I some similar again real a in where want opportunities, assets are doing their is West retailers to those remarks, Coast spend mean going we that of I the of on this also us

the going will but itself, to opportunity pursue limited. it's presents So, be transact, where and certainly we pretty

Conor Flynn

own store. we Craig, shops mind, grocery in Keep small that shadow-anchored by were the the

NAV when when grocery because really like with together we combine significant for then today, rates that and you the we put the that so, out the look And cap store at grocery you back there we that anchor combine create paid feel you improvements, and see small a we site significant the comps value. are the shops,

Craig Schmidt

be would a in process? mainly right assuming I you will supermarket And this focused that be in

Conor Flynn

we're market opportunistic are of markets. looking today, some at the you centers And aggressively And when in within out look today. think at our what's most key acquisitions there grocery I the shopping assets the a then prize we when look competencies NAV. you're those focus make are discount at to on core work And that very re-development it's tough to opportunities, trading numbers I we today. at two think the key anchor

Craig Schmidt

you. Thank Okay.

Operator

ahead. go from Wes next Capital. Golladay Please with comes The question RBC

Wes Golladay

where we guys. year. last Good to want go Hey. back the morning, did I [indiscernible] late to

call construction the projects that lease of This six projects, highlighted one start in any you lease, may years. you the start or them had year to commencement next next three will over mentioned could so? You but or ground

Conor Flynn

go secured make in entitlements point through of the ground to ready do we a of that into opportunities a asset. projects. we joint and cost a see we'll lease self-develop, number an do And capital always do or get we do talked our decision tree option, to we set venture, sell the is have we're where those we is. our once the Again, our where about We've contribute we say land decision,

of And capital no will cost of a have opportunity every the the work. and shareholders. we be right like lot put to two for again, alike value entitlements sizes want we're and so each then opportunity because of within create the And to we've portfolio secured, we that feel already a the on and really our immense path our and weight to really our to decision, are capital where we because unique

the really on it will sites. so, And individual depend

Wes Golladay

you or trends the And looking tenants? are top credit the the of outside other tenant then Okay. disclosed How XX so. the you're for

Conor Flynn

the -- do going that take on for the is what improve saw opportunity they will they Obviously be public, to retail do trends to credit. proceeds clear evolved their filed mean it what the our PetSmart depend we are and where we of to with all some it's they parent. tenant debt really other you there now look improve. credit Chewy that the for best-in-class that. want to of years. advantage shopper the But with to that expand of have the pay of to use really I potentially convenience. some Credit provide look we you us. working to that excited continue down It's to you about to how their service at And base, and It's the when at how We think today today. what's is take to some improved have, quality that resellers when we credit think and has amazing retailers continue of over

Wes Golladay

lot, Okay. guys. Thanks a

Operator

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

Derek Johnston

Hi, guys. recent your especially with change management quarters, Albertsons, you up thinking It can on there? comes their any every with just updates few share

Ray Edwards

Hi. Good here. It's Ray morning. Edwards

Albertsons plus think sure They billion goals, a not they year, on had company $X.XX to I'm with was of have the was the their -- they last track major with appointment the for had couple the year-end reported their in the to met. is they the sure step. of equity the leaseback by it - of have it the year and the think earnings where that are program The value announced to financials call got best time goals part the hurt the right done at for was past $X.X the EBITDA, at sheet direction, One last listen, over few money markets years, be achieve on company, is the especially can't really the when there, Hey right can all I to sale last the the taken the with other best at doing would firms was company reduced look I and you that of think things. over and you to leaseback made equity company. what next private right And this bringing balance the through debt focused CEO going of way sale billion. new we've and distribution lot take it they billion. a on everyone. also $X we're are about equity improving we And shape I program the company

Derek Johnston

can for of to in entitlement seeing a larger or for amounts any talk up process you opportunities? there and little about that of just you approvals might the even bit, or come process, then changes time be have developments get And terms the backfill Thanks.

Ross Cooper

dealing entitlements I always that to municipality unique think the you're with. the are

forge for holders Kimco then these I Most day. to it going think these the secure about entitlements that that are here at knowing with part the is partnerships we flip the long-term developers and municipalities next we're and we be nice long-term.

it's focus of first already in really portfolio surface. to are knowing think And so seen to scratching the process future. the approach. just with entitlement take a We're going units. we've comfortable very that number long-haul different time, a for of we're apartment we'll period that partnerships that projects that feel short sure the over a and amazing the our with we the feel on making inning and secured we our with of have recently in success always we and municipalities approach we and here to forge And And they our these be continue X,XXX of

Derek Johnston

Ross. it, That's Thanks.

Operator

Michael next JPMorgan. comes from question Mueller Please ahead. The with go

Michael Mueller

think projects how little do move I bit occupancy our at can recent about Hi. the that a you then sharp questions to leasing resi with talk out? over the are, you trends XX.X%, Yes. room more it's much have I XX%, and one two guess

Conor Flynn

Yes.

with Lincoln side residential the on center So, sitting. Square project our that's and

see it quarter, was went sub-XX% down As sub-XX%. could it you from substantially, sub in to our this

end now, just into to expecting the XXX new summer also for so We and quarter season last jobs side. as city, people the that the moving and into moving as new are we're and leased have of see we're the units spring this high of University looking trend accelerate the through

balance side, what we it small acceleration year seasonal as So the was shop we'll sorry, to saw relates this to turnover. through of see our expect an -- typical

from here number prior quarter. turnover of into We January. rolled there was season the Now, had extended, XX points had tenants we over who a about that out and down basis through holiday the

than be the So Wellness very, shops we and expect Health obviously through food actually and very outside I'd that strong the and beverage continues balance popular, we originally QX very assumed as the is had better a of had slightly a year. to strong. see small result what is we and say of to

Michael Mueller

consider terms you be Okay. in Is there? occupancy? of shop would in XX%, What full it somewhere small to

Conor Flynn

hitting and we've our last that Previous over by all-time year. was XX% eclipsed high XX%

So here. those territory We think obviously, we new trending we're into push numbers. of can northwards

and So space. tuned in the push anchor have we'll how stay space, Obviously, building the boxes it. small a to see hard we but the remaining can on shop momentum have of lot upside see the portfolio the in also we in we

portfolio we have the to see to a really trend in really right dominant that that's So nice it's direction. starting

Michael Mueller

Okay, great. Thanks.

Operator

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

Linda Tsai

and market below Yes, above market in What revenues? drove sorry, and higher - below market hi. above the spike

Glenn Cohen

Glenn. It's Sure.

and was JCPenney. was leases So one that recaptured. tenant grocery One we a we had two a

leases when the One the below of market. XXX we done below rent analysis box the income. you leased boxes from when come the Both the significantly into recapture market acquire again that's assets. they is And were already take you of these

two So million. was the those for around $X total

Linda Tsai

that expect the kind of would the the you upcoming quarters of in remainder to year? normalize for So

Glenn Cohen

$X Correct. a When below there's rent total we million, those basis two million a line on look our straight a -- and $X like quarter. categories at around our together rents that are above market in normalized total and of about

Linda Tsai

do in the cap composition a a board selling in or the then terms disposition the improving of And the that's rates rates more you for selling in? assets function you're you're decline Thanks. cap think of the function across lower of of markets

Glenn Cohen

we've a few when disposition other I things and of program both had far. that and I it's look thus Yes, evaluating factors our combination at that the those think of success a there're

past. clearly we're X I improved the to think when even of you that selling portfolio. Tier is quality first they're and improved assets And look much the at foremost compared years

subset the that selling. much we're So asset the doing in more allows to The asset is of better. which the assets optimistic with volume -- limited us be we're the pool that

this advantage prepared struck and an offer necessarily in we that but that took Palm gave Beach where that year, an Gardens remarks example was So opportunity and was an the one QX one. that I for of wasn't with expected

It's offered a along course adjusted create is was of site Arboretum was that market. the decided in could the The Austin the what a at risk felt it of best a good was return lease other that one terms action. for redevelopment that but included asset a price was of we came vision selling beyond the had ultimately it where that that that which a mentioned transaction well a they in we asset in that one solid buyer a was and

you interest check. think that helped dispositions, XXXX look limited And where in of that our be offers bigger and volumes I and that, stronger finally keep had had supply so our much amount and of in the helped say you when compared remaining in peers also our would continues more low think our we've pricing clearly you I to favor supply that at and know XXXX limited capital readily formations for know of retail, in ourselves have market buyers to I available buyers. has rates make the

So have dispo execution have strong I think to the on to push and program. all contributed our really ability those factors pricing

Linda Tsai

that Thanks for color.

Glenn Cohen

it. Got

Operator

question St. Haendel next The Instructions] from comes [Operator

with Please ahead. Juste Mizuho. go

Haendel St. Juste

out Hey, good morning there.

Conor Flynn

Good morning.

Haendel St. Juste

play aggressive us. how this the curious more likely that the you, bit on the Understanding Linda's in not pricing on demand side obviously, year of that follow-up a the for and question. environment role curious the I question, but given year, stronger rates demand and be last dispositions? outlined heavy wanted it just thinking your into how Kimco disposition assets last on level pricing I'm perhaps to is see behind you could is a lifting selling to just lower improved the but we may close

Glenn Cohen

we're but the million to the million and very on we've with certainly We're staying focused execution, demand outlined. $XXX $XXX the within pleased that

to applications in position development and the of Series better fund years course So year, we place market for we're change may the on us that with where the track over over a going balance continue really of to on the to Signature we've plan few next to the capital be sheet, the we while the have on of all dispositions the and outlined. on to focus want our what so in puts stay

Conor Flynn

Yes.

is, if Conor X.X% portfolio look that made know also we're other is think I about same-site really has really how shine, year, produce. things year, last it's strong you NOI to at how starting point to this the to at the really would thing start add growth I'd you it the the the we expect portfolio transformed, producing

is markets where go - think were wanted those was we've downside disposition producing at very to and will where and saw those really looking assets. that's we that strong move levels. in long-term we when we consistent The a into So out we risk portfolio growth are of risk really the and it's what today we levels analysis, and very,

Haendel St. Juste

maybe wanted ask fees to I you. lease clarify, accounting Kimco wanted clarify versus the specifically treats I to Appreciate I for question maybe the Glenn an have while to when leaves. termination that. that rent And you, tenant lost

a in pay rent, and the the fourth fees through would back? leaves of termination fees, quarter to not continue keep rent counted they year, tenant that there was non-cash scheduled in Firm. the year, book If fourth the is add NOI, tenant pay lease the of the you the end the expire same-store quarter for fee the was quarter as you first instance to their but in until booking termination if still that the but So termination lease, that Mattress the

Glenn Cohen

situation NOI termination terminations dollar a the but you bankruptcy total no, numbers. for our never had and where settlement a lease Mattress the quite in thus with the $XXX,XXX, same-site in and year, not basis a have small it's candidly never number, at fees up unique number lease points it have Now been $X are NOI. same-site The Firm in was the makes on relatively was XX under been

Conor Flynn

falls NOI Okay. tenant the out. out, have don't same, say, We number… When them continuing are they in a

Glenn Cohen

Right.

Haendel St. Juste

Thank me. from it That's you.

Operator

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

Vince Tibone

morning. good Hey,

to you your Kmart locations be what Just to two And you leases one open? anticipated remain quick to after of will from Kmart the been expect have me, to remaining rejections? Do your only be, mentioned question exposure all rejected. exposure

Dave Jamieson

Yes. This is Dave.

But perform. leases So, that of pay and and and have continue and are ones and paying, being continue assumed right the we to beyond they actually are are operating two dark now, all those. market below they on rent to the significantly open that, other

are as that's events we for it unfold prepared So, whatever where may said today, points. we -- basis but future is in XX the

Vince Tibone

it. Got

Okay.

to So, you, means that XX XX rejections. points fair? NOI roughly basis basis points Is of offline that came two the with

Dave Jamieson

full-year basis. That's on a

Conor Flynn

full-year a basis. Yes. On

Dave Jamieson

Correct.

Conor Flynn

right. That's

Vince Tibone

I have. you. Thank all Okay. That's

Operator

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

Chris Lucas

I understand everybody. sure to were just NOI morning, loss the there make so Correct? to you there's good they assumed no the want two Hey, said rejected on Hey, company. I leases,

Conor Flynn

Of back that We four us two. two There two two have the was leases were come currently process since and there in separated for rejected leases now assumed, had is paying. LOIs so that and No. have we into they in to that are those which are categories. dark

Chris Lucas

Okay.

stores the that So, on want with… sure let understand go the to this didn't year I -- time just, spend back but I me just started really me make of let you

Dave Jamieson

Chris, the were XX X rejected. on we assumed of closure that year which were to, from the yes, you of initial and list of paying. were to with dark those them went X started the help out,

Chris Lucas

Got it.

Dave Jamieson

it. is That

Chris Lucas

to on guess you, Thank NOI the Dave. my just question same-store Okay. really guidance. wanted I focus

bad of we eaten the factor is points sort disconnect the of reserve about XXX sort -- just fall in commencement of mind the revenue where same-store maybe guidance, the and I of range rather more I'm think probably where is back-end basis that was tenant to might related the and to this first outcome the might in much think you my more those points the for rent of from I how the to the initial your than and out? terms today for bigger of where rest provided on year in understand is performance guess, towards guidance? NOI basis just budget. be debt loss kind of curious the where quarter broadly was trying as be as between or had XXX the outcome

Conor Flynn

Right.

You're correct.

XX used first our for You're basis credit about in the basis points. our correct forecast points quarter. the loss XXX for that year is We

through It's cash it in combination helpful you credit year. because or loss. little a the rents of low-end side the our be whether high-end we're it's do will range a So we terms at The budget commencement go of start, That's basis. same the guidance we the things on when mentioned. as a NOI on is that ahead

So, basis between economic online. spread leased have that the In XXX we come XX% really It's the around those timing when occupancy. point our that and online of expect spread forecast, this we during year. come of would

an commencements -- important. loss not is tenant fall that's amount will fall But the are of out rent are there. of level drivers. large there out. impact still it. We in will again those that really on tenant credit The very have some So remain comfortable budget If a there,

Chris Lucas

great. you. Thank Okay,

Operator

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

Ki Bin Kim

all Thanks, morning good and there. out

you're relief number making versus that year? or the of Just couple how pre-emptive of past notable tenants bigger of some relief, you're to picture, type leases giving rent any trends much adjustments rent in tenants, the

Conor Flynn

driven dynamic really demand. change supply hasn't in there the No, all been by of discussion, a the it's

quality higher get centers. into retail pushing and market tenants our the demand into side wanting portfolio is for Our the to

this as seen opportunity. an we've So

rents think I in it's the the we're that reflected extended terms. achieving in

case. that's So always what by we've again, seeing case it's being

hasn't And so but material been any as change of you there terms comes, have that dialog. in it to that feel

Ki Bin Kim

with say that the asset you but case than and paying but [indiscernible] I'm are I exist, asset, to back tenants and I by center time especially know center relief if it's realize by retailer sticking same more [indiscernible] risk a getting good if the And we why theme, same and -- in paying and tenants, cases going not weaker center? more. much be be the -- other what's I'm couple of Okay. I case more at that much why guys to come some some What's the the XX% risk should rent the and

Conor Flynn

today our think luckily we And supply I sites. into at demand in really our and to with the our you is look have transform traffic where of portfolio, drivers the favor. sit

And want better retail, the quality we that locations. quality world traffic the so with to in our not involved with high to that tenants. are new legacy be more tenants credit And ones and of recapture the can't and there tenants better those driving reposition have wait are that

have a When and they acres goals these are high paying you shops at a at our relocation deal you our target there they're We better markets small opportunities within typically our you know today. mark-to-market get our both high look and occupancy. very what where look can economic versus opportunities

Ki Bin Kim

Okay. Thank you.

Operator

turn to This David back like concludes go our Bujnicki. the session. now over question-and-answer Please I would conference ahead. to

David Bujnicki

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

Operator

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

now may disconnect. You

Kimco Realty (KIM) 2 May 192019 Q1 Earnings call transcript