Kimco Realty (KIM) 5 Nov 202020 Q3 Earnings call transcript

Company Profile

Participants

David Bujnicki	Senior Vice President, Investor Relations and Strategy
Conor Flynn	Chief Executive Officer
Ross Cooper	President and Chief Investment Officer
Glenn Cohen	Chief Financial Officer
David Jamieson	Chief Operating Officer
Raymond Edwards	Executive Vice President, Retailer Services
Rich Hill	Morgan Stanley
Juan Sanabria	BMO Capital
Greg McGinniss	Scotiabank
Derek Johnston	Deutsche Bank
Alexander Goldfarb	Piper Sandler
Michael Bilerman	Citi
Craig Schmidt	Bank of America
Ki Bin Kim	Truist
Haendel St. Juste	Mizuho
Mike Mueller	JPMorgan
Caitlin Burrows	Goldman Sachs
Floris Van Dijkum	Compass Point
Chris Lucas	Capital One
Samir Khanal	Evercore
Vince Tibone	Green Street

Call transcript

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Operator

Good morning, and welcome to Kimco’s Third Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. David Bujnicki, Senior Vice President, Investor Relations and Strategy. Please go ahead.

David Bujnicki

you Kimco’s thank earnings quarter and call. morning for third joining XXXX Good team call our questions Investment on Flynn, Kimco as to Kimco’s participating The management answer as Officer, the that our David Ross well are President Chief available Operating Cohen, members Kimco’s Cooper, call. today team and during Glenn Chief of the Officer; other CFO; Jamieson, executive CEO; Conor include also

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

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

Conor Flynn

strategy centers to landscape. give to mixed-use shared and principles landscape, and growth thank manage and offset focus the our keeping of market Hello, two strategies are evolving will metrics. COVID-XX, Today, open discuss on objectives I we the of the retail value. shareholder and within our one how on grocery-anchored and sustainable performance how Ross portfolio for largest how, joining will overlapping short evolving longer-term successfully as air, see navigate creating shopping retail us. and will long-term we Glenn Both and transaction you of our our operators us for assets, America’s everyone, is our updates enabling owners and actively the impact cover

to and choice where, mixed-use by become well-located assets is First and and leasing of want earnings pipeline, physical product in data, pandemic, and consumers This are shortly, open the reality retailers their want more both conducive I shopping so highlighted foremost, respective and grocery-anchored the markets format as online calls. to We discuss our in retailers as traffic go. the on see delivery. even will our during where product type, to has centers pronounced air, it be Kimco’s open-air

that but less than supply consumer store continue last the mile no Second, hub acting important, for ever of is needs more fulfillment demands profitable the and as the evolve. critical distribution is a chain, retailer and to as to the

assist short-term of stay The have in is core is these on and simple, tenants, and strategy for before well block collect of strategy the our onset tenaciously top time, our lease, quite this focused principles the on that With our mind, costs. been some we and pandemic. tackle, news good

results it. our So reflect has executing and efforts. tireless been our team on efficient And in these ready,

portfolio detail, While Glenn resilient remained XX.X%. has at with during will more provide the currently pandemic, our occupancy

versus focus for seeing space in anchor leasing shops retailers anchor nonessential our are particular has anticipate strategy recovery We ones. level pickup we a been pre is faster on occupancy a code. grocery a starting leasing for as and to our We to pipeline for note, grocers small spot is build versus experienced Of demand on, demand, to surging. essential and

grocery-anchored Kimco’s the XX with to plan portfolio and to years, XX% X over strategic the past years, opportunities have reach grocery negotiation. in currently we X upgraded over have grocery-anchored the new Over XX% outlined from XX% next XX% to

expand like powerful and improve grocery margins created on is Dick’s and believe last e-commerce there and a to determines include online, In customers’ worth the how is store recognize the desire across don’t most need the and halo Rolodex and store This Target, Costco, base. addition omni-channel We have by Driven Home safe like a and for in sales quick products. expansion deliver to to cost their These Walmart, the Buy, consumer proven are retailer curbside tenants efficient shipping to in and consumers has growth programs access pickup. pick solution data customer each demand, Lowe’s, store continue in locations. Best our emphasizing. serve to we goods our up Tenants to transforming to operations satisfying challenge, one-size-fits-all exploded fulfillment. retailer existing best how buy while, Depot, programs demand, to to effect mile changing our plans need way many their others to analytics,

one well our positioned to the why our mile to pickup. tenants provide optimize shipping and to stores their that’s and our tenants priorities last portfolio them of and for by retain our helping highest Kimco, are shopping, is For team helping

team growth. old and help is tenants for experienced focused new opportunities dedicated location retailers for to find and data market These employ also networking mix profitability of school voids opportunities on and a potential. school research and certain Our new analytics identifying personnel redevelopment and

to is By and Our are not our hardest navigate listening see challenges, in to Unwilling resources step profitability them them the where be our on. their needs daily listen small to go, shop are simply help dialogue or are Kimco we Perhaps them partner to the hang concerns, space the we who with to can and and continues retailers situation. will partner their have the hit with overriding often stay see their to engaging to to tenants That’s their who philosophy to choice. up. of continues partners. do that maximize retailers to Kimco wait helping of how

outdoor want know that or tenants. curbside for welcome costs, information those are on pay and part they pickup fighting health to financial but fight can need success. program, we sight have tenants save of we can’t a provide together are every initiatives to We as letting legal we continue do national our vendors our tenants Tenant in website, to chance. locate we sure facilitate heaters for this tenant, tenant Whether acquisitions make Tap Our our Program help for these a expand our Assistance help we or been

customers As their with to environment. back want the we virus, crisis, times the to making world sure centers, feel which and tenants In shopping of how while to which working know in landlord picked welcome our our called team new up learns is safe make and tirelessly live a our call retailers them to them. landlord

help many our We unique improving puts in are capital our balance rent them team, confident our us and our position. looking rescue our position in this a their portfolio, balance disruption to for time are sector-leading At or to liquidity through liquidity sheet. a bolster carry collections, Kimco’s sheet, when

at currently security worth over a in differentiator clear future. is Our marketable ability as for $XXX continue sits how our as to the to monetize we million, and a optionality Kimco gives our COVID has Kimco investment rallied which with to focus navigate humbled on around and position how challenge tremendous the portion of to strategy the able and impressed our the also I be in long-term they team Albertsons, are a future. us

these long-term, units more X-year projects. provide add As future a believe goal can great to war entitlements XX,XXX unlock of continue often for apartment is as accommodate our We expedite governments to and of chest downturns are opportunity that believe entitlements these them opportunities local willing to our achievable the we and to certainly to embedded securing are often value.

continue clearly and between at transaction market, valuations now redevelopment X-year and and grocery witness is home in improvement for public low. the to the a Similarly, we wide development Our a disconnect well-located private which pipeline centers. centers of is rate cap shopping X% our open-air our continue valuation. located X%, range concentration well Open anchored trade to of with current to at air in areas at a odds

not but comfortable tenants, not make by of shopping does assets, also taking the center survive invest a cost we this and center with our our sense our advantage diverse of the While to spirit capital accessible only destination with economic consumers in during our we geographic services. year plan how current a and strategy tenant for of product the the sheet and experience. shopping accretively purchasing outlined the We the capital, have closing, In our core lending we the and easily we Ross? market. entrepreneurial to right thrive commercial strong make for lack safe know goods liquidity given mix, allocation a next pandemic. balance Together are

Ross Cooper

good you and morning. Thank

up the with in Angeles third in we to pricing aggressive at high-quality, the sub-X% albeit product, occurred see volume. a asset at throughout Conor’s Pennsylvania, grocery-anchored Following Florida, primarily Los trades trading at a continue on cap much quarter California cap sub for rates and high-quality in another Multiple commentary, X% country rate. lower transaction minus Northern

accretively. alluded a pricing, institutional for general concerns property to acquire traditional demand has With see For between is it a there and opportunity sponsorship, The the of centers from elevated tenancy, deal we substantial and clear the never pandemic, the capital market cash for the cap our and and traditional is the cost and With impediment that more continued from making in quality pullback important remaining an there as of Conor disconnect location right is liquidity. and rates to, have all-time sources. us still quality retail as tremendous and And volume lows, to been available. uncertainty and flow at public lending capital Kimco. biggest strong private strong it differentiator stemming abundance to difficult tenancy identify

to So will we for continue now, remain disciplined.

capital we locations will to dislocation spread a prime where our be expect in to at cost, getting it of downside quality do can eventually pricing match and opportunistic while when the our that we on we door invest the However, foot view And protection. does, our change.

either funded additional lenders on CMBS. the assistance. can or owners environment, strong Historically, signed mezzanine this gap we existing near-term refinancing we or acquisition sponsorship. asset redevelop provide as bridge infill great traditional and remains value-add not is traditional have debt asset to are capital need easy, an few a locations have opportunities evaluating the stalled, we In a MSA maturity. has been financing assets equity market These provide finding easily financing preferred with that tenancy this by leases either quickly place and replacement seeing sourced While to on and where that the in and with core would or

we looks a and our in short underwritten If relatively the as approach As right investment occurs, operating in the hold a than of seek If and asset property. collect that we’re the part current first loan-to-value. conservatively the we the performs owner comfortable paid area, offer very confident scenario owning refusal the less a properties or downside right period. get this so sell to that we asset we in a first return double-digit the at of expected, in ensure event of off of have basis or XX% stepping

expectation will of anticipate this key we the XXXX, way and conditions structure our it market current component next that investment deal strategy into a remain this Given year. will become

deals here are into these of existing still infrequent instances and as set substantially sit will While expectation opportunity is their sheets. as impairments our assess to that their to year, lenders the start the prepare take on we necessary today, increase collateral realistically balance next

As yields can unlock will pass for it. program selective we it desirable always, we our with along to I With capital judicious and will the be potentially future do That Kimco how said, Glenn the that, we this financial deploy believe summary. properties with attractive and add portfolio. to

Glenn Cohen

good and morning. Ross, Thanks,

Our third with results have and to quarter, as quarter collections the rent loss. compared higher operating lower second credit improved

and also the markets debt are further We maturity have profile. in our extended capital opportunistic

$X.XX the XXXX, loss $XXX.X change abatements of or quarter for XXXX first per call to second was a as compared mainly or $X.XX quarter year. XXXX third in the compared For share, increased meeting $XXX.X and $XX.X recognized of per from XXXX. was diluted The million significant loss was due share last $XX.X quarter to third the third diluted third the consensus, improvement the million FFO million credit loss million. quarter quarter credit as to Credit NAREIT

$X.X quarter Our our from a share, and and million severance includes onetime merging FFO per $X.XX the also related program early voluntary a organizational mid-Atlantic efficiencies southern retirement to of offered charge third or regions.

XXXX. in from million per $XXX scheduled a We the A X.X% million early redemption year had in redemption XXXX, to also of quarter unsecured $X.X preferred of incurred bonds, of we of charge $X.XX was earlier, million share. share the or per or which charge $X.XX a third stock mature $XX.X

a in the driven Although Albertson loss $XX.X our we not on primarily change included unrealized did the mark-to-market securities, was record in NAREIT marketable million stock. our by which of FFO,

million, which equity XXXX We proceeds quarter September. over to Collections quarter and gains not operating. operating have remain also preferred of are With included collections, regard second the We base levels. $XX our rents investments, quarter, from of centers and of sold including improve collected net open which portfolio, to significant $X.X also which the of the continued XX% month the a all FFO. open over This NAREIT compares our million our generated to and for of for collected shopping tenants second portion XX% were XX%. to of XX% third in improved

collected XX% far. XX% from Furloughs during down we X%, addition, second for In so quarter. were granted the October from quarter third the

average the collected that repayment term approximately be fourth we quarter far, in deferrals XX% will of were billed begin Thus meaningfully during the repaid months, weighted Our have and is deferrals X for to October. XXXX.

$X cash receivables. Now million let quarter against rent accounting. quarter, during detail of provide related a of million some basis was million credit There which regarding XXXX. reserve me included for $XX.X loss $XX.X loss accrued also third We straight-line non-cash credit to additional recorded the the additional on against revenues the tenants an third

at XXXX, outstanding As Total accounts basis. XX, million the tenants. tenants cash $XX.X of of XX% annual rata X.X% of total of to quarter were $XX.X stood share cash on basis of September uncollectible our of receivable. a base from or third million XXXX, is reserves rents At attributable our pro uncollectible total reserve our end

quarter, third due from tenants cash XX% basis the During collected. was rent of

rent also a reserve receivables. straight-line against $XX.X we XX% addition, of have million or In the

Turning to the balance sheet.

revolving Our and cash with is in a very $X of which $XXX XXXX. on over credit billion liquidity our available position million facility, final has strong, maturity

of Subsequent improvement million represents credit turn price $X attributable end, basis, end a and share, X.Xx. of to full level during $X.XX outstanding, look-through and X.Xx and shares $XXX per which XX.X the September. we Albertsons X.Xx value We dividend market X.Xx. stock common last at of improvement quarter, million own $XX.XX quarter Albertsons, quarter. finished receive a also debt-to-EBITDA reported We the on rata And to declared third This pro of a the of on the share lower JV has the the fourth expect of share a the to based closing quarter per including of net with preferred over consolidated levels essentially debt from is with loss. million

We XXXX, expect fund X.X% a bonds of $XXX tighten in term repayment the our is points of the issued million than as early bond redemption during quarter and XX-year were the obtained quarter as with on ‘XX credit spreads improvement mortgages totaling XX-year tighter. year due consolidated were green the capital X.X million and We bonds, in next the $XXX May we of over X.X% unsecured markets the $XXX the well. to a continued XX fund X.X% million. more the remaining loan $XXX active used unsecured X in bond. issuance further of million $XX trading It Proceeds million repay these bond to since that worth basis have the April noting

As for $XXX we and of of maturing maturing XXXX, September in no only XXXX. consolidated the year XX, had million debt consolidated mortgage debt the of balance

XXXX. of mature Our November until next unsecured not does bond

average one the consolidated year, profile maturity Our of the in REIT longest XX.X industry. weighted stood at

so remains during paid quarter far, common reinstated share XXXX. common common least a our equal XXXX our pay we per the at share, $X.XX cash common during have dividend to dividends $X.XX per of REIT third expectation income. including taxable XXXX, dividend Regarding to It

we that, Directors And the additional As such, Board declaring during and to take fourth quarter. of will happy dividend would with we our an questions. consider common your most paying expect likely be

Operator

from go Morgan Stanley. first The comes with question [Operator Instructions] Rich ahead. Please Hill

Rich Hill

Hey, good guys. morning

market do because I for on cash focus I I peers maybe it up maybe cash there it wish and that which important there collection of real about in just And the thing like bad focusing flow even want flow like do Is the should cash looked of cash or we as and this. all but provides that’s in flow of transparency debt? Can ramp? ramp a that you and it think back of the really understand on your providing as one specifically First it’s much is statement, was all, tremendous ramp amount modeling? in us, nice it flow kudos statement, flow collections? to the pretty well. think best-in-class a I a a would we really captured to it FFO rent less above it numbers, what’s deferrals? think looked driving line, Is Is us impressive. cash Is be help the isn’t looked

Glenn Cohen

I also, you are play second when bonds collections that. the The it’s they some lower Glenn. quarter a and reserve the less. mean, are of like also number. you’re you timing Rich, timing reserve were clearly, where quarter, third during into There $XX come much some higher number is much and rent things there the have than is that things during – have paying over that

So increase. the driven bulk of you the and have by payables, little around a But the increase bit. is move really really that collection rent

Conor Flynn

there QX. in Yes, wasn’t much deferral collection

ramping that see will We QX. in

Rich Hill

Got it. October deferrals deferral you question been And final the and XX% already one then hear say I have in I more Did that have question. Did collected? granted just of right? one on

Glenn Cohen

what October, of we the XX% those of billed, been billed XX% deferrals that in Yes. deferrals paid. we have so

Rich Hill

Do feel you sort recovery Got than normal maybe – through whatever stand think back you, better call walk but end of XQ question the it sentiment where ‘XX, in then, feel you like where us the normal? that this to stood it. How is let’s to you’re cadence you of is, as where XQ but can you. today do you your and track? previously? Thank of of on you And recovery versus XQ you you a did as ‘XX, just about Conor, on for

Conor Flynn

to. happy Rich, Yes,

collections our and B that to out, are the of at years retention of And and trending the the C, collections a on the versus QX and a the rate trending between look we I in a you on the a look trajectory A, choice, metrics. starting We’ve deferrals, you how things the scenario over A, and what volume past to gave back done at Board, landlord different look I it’s we look about you towards and at play think that collection to them, we feel think shine multiple through where we’re if scenario to on high-quality continue the work the our leasing when with position lot think ourselves to could portfolio. I portfolio the owner B, to D at be a and you of put few in be scenario. in we talked

And so still there’s in come. feel scenario we like between that is right a lot to obviously, B unknowns, that of about A, before. the I mentioned But trajectory

Glenn Cohen

if We at And the was about again, if Obviously, Yes. $X.XX. a really hit. the the out right? severance $X.XX. if if debt, we And FFO be it’s and where charges what second seen, think take early you third hardest would was relatively the have about quarter. of – repayment first $X.XX think Glenn in had you That we normal of you quarter, were. quarter quarter the the you at were onetime you the the of We

you and are seeing with to fact the that are And reserves improving ramp. decreasing. So collections rent it do really has are that

from expect continues to quarter, into So the the if we trend there. further see fourth improvement

Rich Hill

I really cash Again, guys. you, transparency flow. the appreciate Thank on

Operator

Thank ahead. Sanabria next with BMO question Capital. go you. from The Please comes Juan

Juan Sanabria

maybe just kind I help improved, spend receivable expect amount are key Street of days, hoping particular, Thanks of was going think in the just been little buckets bad into sense And decreasing? debt, time. the insights in have us collections the with a give and think, morning. what would past how a you different variable due, that’s the interested but about shaping XX, the for be days, in trending. I of good on kind how time Obviously, XX XX us accounts Hi, quarter. to out fourth just expectations could some the forward? of What’s the the for to

Glenn Cohen

in it address try answer it So comments. little prepared let my and me tried bit. I a to

If are, certainly you think collections where have we about improved.

far. what look If reserved – you we’ve where so at

they of would be reserves that continue if Again, – improve, XXs collections somewhere the number we if about has reserved third then we fourth to we it’s reserved. in range, quarter. quarter outstanding when in expect than total less in would think be been were our receivables, what the So going this XX% to low

are we So fact rent improvement. the seeing saying premised round as don’t shutdowns. on and But is again, we it that again, collections were earlier, continue that of have we another

deferrals was have In addition, mentioned, collection, started we deferral we the as billed to and for of in build some XX% October. I what the

it trend going rent continues collections. if to depend another again, think So, positive that’s we is on but the that

Juan Sanabria

you groceries Thank dedicate exposure walls about, of that’s on of what’s sure mentioned to the or track grocers And pickups. seeing able know Great. you I whole but versus going e-commerce you omni-channel trying that making omni-channel get the Conor, and space to a and on side more you. going ramp been up then guys been on online that, discussed just via you’re the in what’s think just the trying to it’s monitor business how for and four e-commerce there, the share? to fair the something your while, are

through exposure over to Just thinking grocers see to are try time? you increase trying as to your as – particularly the that you how guys

Conor Flynn

sure. Yes,

our share to you rents. have thing think are one remember of is lion’s the rents I fixed

percentage really mall the of So of landlords type accustomed have clauses more some rent we the would be to. don’t that

more love are they’re are four-wall out to to in necessarily them just the X many starting with though we’d that gives wouldn’t helping profitable tenants they for cases, to even have even that participate to profits, box. It able upside. on us they that within of focused So count walls, do lease which our more value of we part in because sales the the as though the sales we be omni-channel maximize their

need optimized we know their to optimized very space distribution bit why we’re able and that have be by the store. lagging focused are focused analyze share spaces make are distribute already that reset done blueprint sure anchor there, they our stores. pickup, from store point. sure pickup on that, out it behind. which very their of with lion’s with co-invest optimize a is talking go on being nice so few done which optimize fulfillment sure dialogue that that already And we see stores, what program making their and ones and landlord, curbside more stores a to portfolio becomes that and walls. through we to aggressive In our our And want fulfill they But curbside on them, proactive we what that’s as is are a our retailers and the part a There them the within little that is space the will a have and those to we’ve to making they them inside four to do that of

Juan Sanabria

Thank you.

Operator

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

Greg McGinniss

rent based if David, wanted on more, For I leasing footprint seeing a geography? productivity the insight really give differences appreciated? dig insights or in Northeast material Hey, that in example, portfolio, of into south good to you the are other morning. bit you into be leasing any given spreads would large the versus the some

David Bujnicki

problem. No sure. question. Yes, Appreciate the

went So, see and we a volume the the activity. into and through to improvement pipeline in starting deal QX, healthy looking new of as we QX are ahead

their will a that be well opportunity, to Conor this Great the prepared As remarks, they’ve as closer front-runners their and mentioned the capitalized being realizing locations them. anchor expand production value that double great utilizing upgrade expansion. his anticipate Recession, the really that well They’re seen down tenants to And the share, to quality similar the in of in we in portfolio. to customer market where is

that of that with opportunity we fitness seen evenly distress it’s as taken to to opportunities pretty a this sector cost well On discount, actually, grocery. And so expand lower the off-price, that have basis, we have Ironically, spread. seen at with geographic despite look well. has

the flow looking South the some tenants and side West the accelerate corporate the are deal really the on well-capitalized the that both shop of to small Coast to start expand. seen even with Northeast, have We the tenants, franchisees their and

well So it’s pretty balanced.

comp As it related qualify quarter-by-quarter relates to which it’s always spreads, for to a deals item spreads.

to going to number So or see by deals, driven you’re always or X either related be And down. up spread could individual that. a movement X some

opportunity – of very where quarter a look renewals So levels the retailer renewals can these historic but speaking, line the retailers. portfolio Again, past quality say as the a options, clearly this benefit well is our to we really much is option that is out or confident our with spreads when historic well. as choice. sort between elsewhere. retention in rates, of has digits, stay. our generally to trends that saw renew, look high you exercise and they which this They watermark we when of or the And single they’re related fortunately, and and the felt which we our chosen at look either to they’ve And a options, in of high high are

optimistic activity, to to stay focused expansion be we encouraged their the and but in front with plans. that out extremely by ensure we’re part retailers cautiously and of we’re So have these

Greg McGinniss

bit, on just your deferral And expectations tracks then maybe October, been in payback collection what’s you, deferral David. how against and reserved the against the little Thank Glenn, a shifting XX% curious that gears on side? with

Conor Flynn

third there’s a So quarter, total XX%. during deferrals reserve our of the

In again, as We we XX%. we’ve right around terms probably line. of And I collection, It’s just sit pretty thought the we XX% today, maybe we far. it’s what much around be, that’s thought so not we’re it would collected where here think done. it’s – in

large the most most further. part, tenants for high tenants. we’ve a those we little provided of deferrals from improve tenants collect that we or should But it again, So quality thought would to were bit the be to able

here. coming So through to that seems be

Greg McGinniss

Okay, you. thank

Operator

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

Derek Johnston

morning. me. excuse you, Thank Hi, everybody. Good

worst regarding You the into guys we appear environment, being persisting and private you shift in be frozen markets the flexibility. from, offense? And XXXX. this somewhat for do and as you to opening in an thank are to of on hopefully, when likely And liquidity still enviable the pandemic, emerging position color

Conor loans for mentioned, potentially are comes it priorities to redevelopment, when So you ramping de-leveraging Kim, continued how mezzanine the buybacks? or capital favoring

Conor Flynn

divide and that We Sure. question. can conquer

I was in there. think lot a there

markets on we of elevated and – get product of is cost look, to XX extremely we off come traditional table doesn’t capital outlined capital our many So grocery-anchored requirements. allocation center capital, this our earlier of our just ways shopping our daily our close because in cost for meeting obviously, strategy, in cost as top it our even the And makes type, mega buying our almost time. it capital in

are opportunities in what high-quality found to estate to a financing, have the the or refinancing the to and a the refinance. rescue don’t for of redevelopment coming full out capital is cover there So cost where able is we midst be it’s vote that provide permanent real a they of transformational in of construction midst or capital

that’s our our in so with capital exceed that we opportunities cost can to set trade. and to some we the get asset were unique capital if And ever of the foot our strategic where investment near-term. come see That’s where in door in of

prioritize We continue leasing. to

are but is number amount we We number two want going be that, a go. for to and one, of dry We continue have us as powder, think where number going three make capital is sure tremendous we that careful. to to to our do

pandemic. We’re the still not through

we today, hit I XXX,XXX just cases. over think

of we give just profile, to pushed forward our So out elevated ourselves the mentioned. of Glenn balance going continue cushion. We we’re maturity going amount that have to plenty as an recognize debt clearly on cash sheet to

opportunities. for landscape the survey to continue We

a with to that lot deep-pocketed partner investors of have us. We want

think hatches, to that And recognize but to to then batten so cash back lease monitor continue and the have like to be we for opportunities. the situation, fact our continue it flow get crazy, should we mine where down the we

the tide goes lot can the past, music. kicking there’s been out, of to the people by done start we’re lenders, we opportunistic. patient And As in when been of the have a see we’ve to and when face being

Glenn Cohen

and program Yes. I quoted, to Kimco this is of it most envision still this still historically. type the our the we elevated there’s albeit program given to and the different for lot Conor financing a assets. thing operators that covered it. Kimco position, on the product I of for fact challenging. few high-quality that that this program it program done really than mentioned, there the mentioned, of makes liquidity institutional fact there’s that quality very that is for a mezzanine would believe for liquidity as abundance that equity extremely that capital enviable space. just play given the cost But that that, And offense, have at in playing that differentiator an I add like is the that think preferred program, The like – still and capital, grocery-anchored And of as with about we’ve you Kimco the the, are mezzanine we do differentiator we program way nice way I demand

funds, that on few on hedge ourselves competition, potential it’s find opportunistic more debt it’s up examples these against platforms. we when So we’re working going

welcome So when participation. Kimco’s Kimco event ability steps track into our scenario lender, in, play the with they the record our that comes and operate much the for very senior to downside in

a elevated very yield be to our So hurdles. we nice it hitting fit, while found also

nice capital we a ‘XX. to accretive in for balance a us think be it’s could great So put very place out that

Derek Johnston

then color. leasing, Great great. leasing, yes. Thanks. And Okay,

it’s a bright So been real spot.

So that. just I not with for just have will reported. even that Kim, And other peers but continue for

near and seems encouraging that recession kind it’s our that obviously outside here any pre-COVID and they normal what have ahead understands levels? believe be to since were plans popped to positive or of play back, there So thoughts really understand. secular Are pushing internal of everybody at may trends pipeline impacts cyclical of close leasing

Glenn Cohen

retailers, I trends, as emerge that look of are the their the extremely does new They what about the continue lead a will opportunities how innovative. the at footprint see of To Obviously, what sort us that they’re to store retailers format of omni-channel are into how does customer today changing, talked us, how future and of changing. now. is of years terms needs lead we’ve doing credit what In for sort and result. their and

itself but the actually of distribution so are what out, they for retailers, out continuing multiple now or footprint. the appreciate footprint, expand penetrate areas, maybe our use some trying then others and that’s So in the starting distribution appreciating a locations, creating evolution play they’re this just need as in more of grocery see our say, dialogues also we’re size or with store, stores off-price to or micro store urban their formats of, of that online result to that that fulfillment the to to shrinking the

optimizing the So smaller well and dialogue to larger balanced address for between efficiency is or in it pretty to expansion fundamental this need.

that, And so trends they’ve out. again, playing all are themselves been these

itself process. has COVID just think I in was what already accelerated

example, at deployed a and it support years. about that years. was we centers pulled for it that talked we’ve a by for XXX few over forward Overnight, effort. necessity, Curbside, And it to so

just that of expand we’ll been and think emergence the a trends the to see of of grow. in continue lot its I to infancy, So continue have sort

them, that that’s the For we work which them, because be create innovate is for to them. exciting process. so shopper, and now really and and do the with that encouraging, servicing to the we’re retail and experience retailers is How change? retailers the us best of us, ever, between customer, then all And important same to than continue part and to that’s partnership more to end how

Conor Flynn

is thing only is our the second a are pretty would the shift ring, out like are which first that we metros demographic that and major assets of where But add watching and located. population I to significant

portfolio from migration. that of but to in our that our and also short-term, very ring, to space, retailer expansion shopping potential for only So the stand not of cognizant bodes centers it term. be where weighing is we their lot clearly well, the demand are population fact I When which plans the be are a retailers, first they think may talk that but positioned. we long-term, of I redevelopment our long benefit is increase think for the and to second we some where for our And might it

So are long-term. I positioned the well and short-term think the we both for

Derek Johnston

stuff. Thanks. Good

Operator

next Michael Bilerman Please Thank ahead. comes go Citi. question you. with from The

Michael Bilerman

Conor here Yes, for I Ross. with me as well. one question and thanks. had for on one [indiscernible]

excess talked talked lease XXs to sort to high to that leased having of you the with grocers about closing maybe that penetration to it today. XX% going I grocery this I think level to level. to start XX% you it And Conor, XX the starting about to you’ve Just of in about is because of those selling much you’re that do of those? have or assume from don’t built know how are way sort either into that terms grocers, new adding land of of from then have is and your we out? can Just you would new enter leases the want type to those is it are boxes, or leasing, world how of see it sort they the doing And different I past? I grocer are How them as this of versus potential? much XX to want high XXs, you of lifting XX that curbside? to relative you past how similar as know, assets grocers, maybe like don’t add how if What XX how you dig grocery new And terms is attaching it to being for the

Conor Flynn

Michael. question, good a It’s Yes.

we in years, XX% side. don’t chime a well and next in on a have XX% – leasing over the But actually disposition is as target so can that. number X-plus it portfolio, the fixed Dave the So to on

which Dave on on give and path And today Dave And to portfolio themselves to was grocery pipeline, have in asset it that on get Obviously, just But then outlined assets even grocery the the bit dispositions our grocery in of So to to a it’s time a XX% may currently the on wanted doesn’t an we little have boost his more anchored further. just take stores leasing more to bit and XX%. repositionings. know a can of deals anchor. that existing non-grocery X literally up do the at that I team looking that. if assets, lend color

David Bujnicki

Yes.

of of the the by conversion in and So varies case boxes, case are. it what terms the needs

the of to category. of mid-XX they’re are had and in from the at footprint. distant the Aldis that the Lidls within looking foot down targeting too But very a example, XX Sprouts, path, anything footprint aggressive in being For that world smaller modified still square not sort range. their

what into adapt you XX,XXX brand. doing, grab needs of can very share formats, range, go still market world, you and the XX,XXX the be to they then when and of distribution really dependent So foot fulfillment and And larger they’re store. larger-sized the the And of the in on accelerating talk Albertsons the format, customer. the use square of the to flexible they’re they’re Krogers, that and the about much out the

we we’re curbside not accommodate there’s or to contraction footprint having may There be of able needs, as terms those center accommodate to in the in the on the change were because a modify dialogue transformation massive to or themselves. the modifications yesterday. So depending to expansion today grocery some of shopping

scenario, their benefit, grocery necessity In obviously wouldn’t of the intensive. anything deal lower ground terms aside and capital different they’ve materially home what But think as vary received at cost of result structure, something when of economics that’s I a demand. the the sense. it COVID there’s been grocers, just the look lower growing stay and of to that And to the of that’s they’ve say a the been had determine trend. you most can from this cash at makes just rent, between And lease we more to surplus

pull to the they’re planning and the that were fortunately, make position now use that able the and do service already offering and so or surplus And to really targeting cash to continue in they they’re either just their and forward can the strengthen to to customer. investments market now

Michael Bilerman

much of that said return that’s the where high default at returns quite and for how it from wanted good, but about. understand a be assets it sort able to borrower mark relative probably that. of the Thanks sort that, on to cap flow of to cash fees sort want a program of Ross, just an is seems talking amortization you – come And upfront, How pay much this be double-digit you’d type may that for how cash are quoted, you Kimco. then, LTV Because of press that return of performing in And about. it’s double-digit XX% I to to structuring? much mezz leave return an talking or perspective seems I been you’re that structure. picked, you’ve those And back generate quite the how to be to double-digit better

Ross Cooper

short-term. all be capital these the And a mentioned expressing with remainder are that working return bit site willingness is interest that them stack few purpose. those versus cash I that outright look willing piece we’re need no pay seen a double-digit and rate not that are or specific pick. challenging a of because When these buyer be certainly in that there’s to that will pay position really why there sell at Yes. many currently or see various a today. of unique within on The paid the assets negotiate the No, to is that currently These plenty capitulation return acquisition have more with they’re current. borrowers accrue deals are we’ve to flow and somewhat a as absolutely. of they the partners elevated in is the and very an between small deals to where that that seen they we acquire do on support thus to is And cases, a paid really price what seller the view we’ve the of majority to far, a dynamics to much one-size-fits-all. want occurring. to asset for It and it’s And deals

is working that redevelop where the TJ we’re property with So and to right Burlington $XX former leases one Max million Sears Box, executed there’s that of capital transactions of on a Below. the needed of with now X part

rate. would at borrower inexpensive Today, by find to challenging much the a that. funded been relatively a Now historically, construction that it’s have for more loan

completed short-term So double-digit because the will pay the us. redevelopment of to they is once they’re pay creation have value payment far that that’s that rate high excess to occur that interest interest a for to rate in willing

are we it. So just of seeing example that’s one where

asset a than LTV much recently more very New it what And just put believes was loan high-quality today. was lender Another it place on that a there at is in is the urban a comfortable is location, once York was metro. construction constructed, example that

a in them that out as where to loan. the coming financing between million can in $XX where construction $XX of take is coming So and we rest bridge that with the maturing, gap to new we’re debt construction help the permanent piece is million

it’s we understand that But environment part will of in is quality, asset that the be today. gap to high just additional that know we tenancy any not in perform with pandemic. mid-pandemic, bridge the So there to again, or cycle a capital post extremely the

Michael Bilerman

expect $XXX What should of expect in like, And should we this? terms I we deployment don’t know, for $XXX million, million?

Conor Flynn

early to too tell of really it’s we’re Michael, because sure set. not the the size opportunity

number come our And aligned would case we’re what we’re of with and done being of these thought actually because with a to and scenario. waiting underwriting in. sooner, We is opportunities. drift ourselves for to we’ve themselves patient property partners it we’re we’ve worst but like in a the so that manage capabilities Kimco the to align would see But starting

looking now, sort case-by-case it’s we’re at what like. for where So this of being look anyway, in could disciplined a scenario

yet. sure not We’re

Glenn Cohen

think Yes, the come discipline. said just does mind, word and I is to really Conor it, that

dozens. passed working on two We’re on now. right of We’ve deals these

that that going we of are to estate, underlying that to very the it Kimco and and a comfortable scenario. door own in estate acquisition at So to own a be end become a to on out. step and to that come very portfolio. played we our And on but on real the in the chase get in yield, having operator in very focused program core It’s that doesn’t attractive differ be It’s from focused would comfortable real if downside yield. strategy happy our get very have scenario high-quality not foot very we this, if a an the sense we’re day, the program the part as of the

Michael Bilerman

Okay, thanks.

Operator

Please Sandler. from The Goldfarb go you. comes Alexander Thank question next with Piper ahead.

Alexander Goldfarb

Hey, good morning. morning, our there. Good

you spent up to on sort with center to straight all of of the pure-play and lot and guys following Conor, company sort that – Just of a stuff the direct went up time all Kimco, back cycle. have AUM of simplify the prior time lot get preceding hours, mental a it the shopping line that a to questioning, of ownership, unwinding

a of business a a you simple guys whether preferred, think model? It in this to back pure that that you JV of do make the would that some add done bringing know efforts make seem more don’t time doing like play? which mezz the you how directly, spent consider or would it’s acquisitions As all capital, versus complexity as to have would about I Kimco – and guys view you guys if lot you

Conor Flynn

great a question, It’s Alex.

forward, assets lion’s at flow is. continue look and transformed how really simplified is, look that you you when think the strategy portfolio you current And portfolio how of of the to cash the strategy going will the of share at Kimco’s be recognize I where an growth time of Kimco we’ve take circumstances execution investors been we Ross always mentioning opportunity in of advantage disruption. where unique the for disruption. set and And tried to to see a in the has is opportunistic focused. midst be pretty the

for differentiation competency. core in underwriting key between past the – so the the is And us estate, our we’re real and the that’s

grocery Tier entry in X real would a barrier long to estate feel anchored term. high We’re the Kimco asset markets underwriting for for that be we

owning differentiator strategy are X And creating we’ve for going I invest These disruption, time gives think, redeveloping of that our of but strategy for key it foot investment create forward. us short-term of coupons the to a our value we to a the think, real for core not crazy a in for continue take accretively. this the our it’s are operating, on on set but advantage It’s a of it’s nice we lack is, value, the But think to with for because on a which niche know long-term Tier and So us. door. portfolio we of a liquidity. to And us way I long-term. like leasing product, and value, focus period found us opportunities unique way to situation, these us, of circumstances get

Alexander Goldfarb

done, yet mean, doesn’t incredibly really the have SL been if mean, Look, and they’ve I you I guys at retail I’d like market credit. I what them successful, give front. successful out, agree. But look been with the point Green has you

small anything size. is it like second seems of that’s this good would like but question pushes is targeted, the So for maybe a the becomes market like tenants. on it sort something when A just business just seem of back

of rent lot made with You guys a improvements collections. have

you that next, national who mom of and it or the sort guys a side rent pop, seems the you handle up have a of would be have issues? sort like it, basically, collections, you going remaining from shakeout good look mom-and-pops, is to as and don’t a a call that and just the XX% make mom not. have going that to good on from it of on who’s And – But national going guys you ultimate what and is almost sense guessing I’m a that pop. pretty national both handle to feel the months, your I like theaters. you So over means fitness side, end a or credit on being X from know, if on do the

just could you maybe that. So on comment

Ross Cooper

Yes.

capacity facility our base be So outdoor had in in, some other help happens obviously, we Northeast, have Alex, winter challenges, We’ve tenants the been encouraged obviously, and sort sets of the the have restaurant you’re obviously, monitor. been we’ll utilize very to But into Heading service-based observing creates that of right, terms to with limited there. by months, offset the indoors. proactive to we’ve on in what winter as unique closely collections, some that. especially that

base their a and now. on portfolio obviously good records that’s situations. tenant in have keep talk to daily We the of basis on our very We individual pulse a detailed them very

were tenant bankruptcies seen of that credit a in category, at pulled, those a forward. trend into occur. as some from that what were It filed. So COVID were of They that we’ve standpoint, anticipated disruption fall standpoint, distress, continued lot pulled to a just were result to happened a the again, already point that

enables from I about seen and lion’s with balance a They’ve share right? I – survive stronger reorganization plan the been come actually reemerging are to lot Ray encouraging done sheet, with But we’ve think, that, bankruptcy can and future. have a detail out think swaps it. So what’s little actually of seen is the debt-to-equity into a speak, of a that these and companies more them we’ve

result as That’s speaking, of next fallout. As typically dip we typical. occupancy January, the months, when into think X about go another seen you a That’s post-holiday QX, normal. in happened in historically we’ve which

think get our to see So occur. with, new ‘XX, I and through growth plateauing we we’d that emerge continued pipeline. effect of coupled then opportunity to QX QX And start deal obviously, and anticipate as growth sort we in into the there, the the

‘XX So emerge. that’s right, see think I we to start

Alexander Goldfarb

you. Thank

Operator

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

Craig Schmidt

the Yes. Thank small XQ in occupancy wondering if represent you. think shops might occupancy Hi, in I’m a in trough that dip shop do or the small the could lower? go you

Ross Cooper

start I and just dip a in what into our Hey, in through there. in see from you reduction Craig, I importantly, historic the answer then question. blend hangover you’ll the question offset. of demand see as out again, probably to end as of QX at QX the usually another a And norms, the it QX space We on that increase recovery holiday tried and the portfolio. previous bit a but vacates, the move occur, great of post of to and result then an ‘XX, both you’ll to that based more happens little mechanism into balance in anticipate, think

context, put in just and it to So – too.

majority on were a So result – the that pre-COVID of vacancy seen been edge majority bankruptcies has of vast we’ve these of the the – lot a already. that

it just further. the again tipped much scales So that

a make little bit sure to decline expect support out here the and grinding the tenants other it tools further reach we’re of have to side. it a that’s the small that them fortunately, so every of out again. they so – out But shop we to to are of portfolio, the starts come actively we probably ramp And them, these all to necessary And balance day. before

Craig Schmidt

zoning? change at for mile, are on require I’m of last tenants working better fulfillment in efforts then And any these Great. do your and a distribution that being wondering,

Ross Cooper

It the that. on to question. is depends Great really someone which achieve trying scale in

a but this matter footage So just you a space. reallocating you’re if not. square box, and prior retail of nature predominantly your walls, your likely functioning still of you’re just most were enhancement to within in reallocation some It’s as your of of X

you’re very, and there fulfillment or strategy. use, have as accepted variance require means different that some an a two If the town micro to which stories the to to very feet, center, doing XX,XXX use other city in square go and may full XX,XXX you’d that a have to

So but repurposing are retailers I’d the right total of demand, more to a this talking meet we’re say not now, reinvention about former, it’s space. some where square just their of footage

Conor Flynn

I just a it’s their through it’s not lot capital-intensive the a for to Craig, distribute. retailers think rezoning stores of repurpose less as process portions go and easier to to well. lot fulfill and And

experiencing. that see the we that what being are lion’s So share of we

Craig Schmidt

hearing latter? to what supposedly we’re was Meaning that would Amazon And might area? that that pursuing, that be they have the changes get zoning for

Ross Cooper

markets, trial best. to and what in know stuff bunch sticks whole do, what as is well bunch you mean, continue of and whole a the see to as they’ll run a trying and of works I Amazon error I

they’re So that it now know just all point on any different mean doing they’re brick-and-mortar multiple time. exploring. right I in have that depends really verticals we what they at given

municipality So more if case that’s in really terms zoning distribution, by and on that’s it’s for existing center. traditional grocery But use, expansive that’s then it’s maybe. of already place more the the sort the case, the in it’s independent grocery use, something a of if the then

Craig Schmidt

the for Thanks Great. detail.

Operator

Kim comes ahead. Thank next question with Truist. Bin from you. Ki go The Please

Ki Bin Kim

Thanks and good morning.

a improvements lot see including collections. to of portfolio, good was it in So your

guideposts things kind more looking start can at? any the are are policy, that you of dividend And about that think you sustainable a As provide? you what to

Glenn Cohen

and look, Sure. the the dividend $X.XX reinstated at we it Ki set level. Bin,

focus level. no are managed making we just set income want to have it’s the less sustainable foremost, little XX% our a going that requirements look attain And for dividend we our and and for cash on sure want at is then set we flows a we to up level a retaxable really First budgets and XXXX. roll be establish XXXX, as to But with AFFO, target, be of is. growable. what of to that. it’s in than AFFO going But – retaxable XX% And than greater also somewhere probably in to to with around that, XX% terms income really we

Conor Flynn

I of and we Bin, cash very Board Ki as Yes. seen in AFFO the want have involved and our to Glenn flow position be a forward. think where want of the a strength, analysis in said, to have retain. and dialogue of cash the our We reinvest do you lot can going free after flow, where on be, what we dividend, we

flow that covering grow taxable where that make and cash free the we’ll significantly And monitor we a income are them. then so where position see the you’re sure is dividend REIT in to starting from And pretty we are.

Ki Bin Kim

something to seasonal that is Got guys it. normal. you’ll vacancy the quarter, in And the going earlier quite which experience about said first back you

account reserves first During COVID would in might of your for this say reserves. you that kind fallout something the also of X% credit reserved that rent, environment, have into you Or had is you’ve you to With any on? happen potential at possibly your about that later quarter? take in that revisit to a chance

Glenn Cohen

reserves along come you mean, as I deal they I would have quarter-by-quarter. to say no. with

can’t think and in the ahead out reserves happen put up that really things future. you go for You general

point. built So no, we reserves at this I XXXX have don’t that would for say

Conor Flynn

so reserving add we’re not tenants season. the and post-holiday that thing struggling if not not that, would today to holiday to performing going it the are you’re and I probably But you’re only through it season, the and against comment you’re make make is clearly, performing to

So that’s something I would add that. to

Ki Bin Kim

you. thank Okay,

Operator

Thank you. next Haendel St. The from comes question

with Mizuho. go Juste Please ahead.

Haendel St. Juste

morning. good Hey

a to analyst mentioned found have And to question a weeks one earlier. I same-store out interesting Board back as guess survey Kimco AFFO; be of price most coverage; you how price to rank I dividend And I community. think is, the key we to the of us a the few to FFO; Conor, how price priority was So NAV; sent and six debt questions asking them should NOI; financial metrics them: by we or the perceive EBITDA.

it run So how beyond. the how board the and about you and are am the I curious and metrics prioritization of XXXX business perhaps informs Thanks into thinking these guess how you I

Conor Flynn

Yes. It’s question. a great

huge that’s fundamental think post-COVID. a retail. sure And is the not today to credit And strategy BBB+ between us EBITDA, that to you’ve is and us. a a maintain been balance well that which pre-COVID gives in our that net never differentiator the sheet, I’m unsecured believe debt we difference ability aware so secured to I today. lower for pretty wider been rating, has borrowing sure is make big differentiator we have consistent our BaaX only rock-solid and a

us focus have, that. you sheet momentum midst important those critical for there. leasing that sure on the only for us look going to is to two the grows strength to the you combination going improve cash in growth FFO strong of BBB+ in the in FFO is with an but a the growing, when flow XXXX. a about doubt forward is putting see we XXXX. no position maintaining There at the for pandemic, it path When really upgrade of ability obviously, at is of look what us So in will and the our collections, the making be us that significantly hopefully a Baa X, to be potentially not balance

out that remember, to plan debt don’t pay have some to really So other lot a due we delever. than coming really did got whole You of off maturities, push lot we we mortgages to a right?

So our all is growth profile leasing. about

our starting have grow Dania that it projects growth us, which tied help about We is from the a leasing all cash as flow Boliver couple our the in will momentum. of FFO but and online from to come is well for ‘XX, to

Haendel St. Juste

you XXs net – leverage of even it to Thank of lack in for sizing? in of how Historically, And fund like the think thinking about guess the second down the pro guess somewhere dividend. you’re on how said the dividend liquidity million looks question does you you stock, a still the pay dividend probably next assets year. forma That’s I role great. high is sold your is And that. mid sizing Albertsons you and $XXX have debt. redevelopment, market to I transaction the in the have guys play I

of with So of thoughts capital. And us you maybe on some on Thanks. help remind you liquidate realization then Albertsons the could timing perhaps much How of year? the can also the that. that next

Conor Flynn

the dividend Glenn long-term of approach, into we coverage and the And pay see portfolio. and income starting end did with to growth dividend and redeploy to period, but ‘XX on the think taxable of Sure. over manage to but from the a Albertsons be combine will sure to mention side ample and will opportunities. side, million grow that into which us we it only that future in us is the lockout accretively cash that path ability But have generate think glide I allows monitor grow the way you along our capital making AFFO right start the start to it’s continue the and at to the a I really is which of for ‘XX, to that both the a think $XXX the then free monitoring on it. the dividend pipeline go and the to the that’s to and dividend. the Albertsons We going piece take have the not redevelopment put some that’s and able into significant of pretty flow, on It we are approach. through to security. We over marketable the pandemic, it, right we

that long term. that’s think to both us a short-term continue we wonderful investment for So and

Glenn Cohen

proceeds. think gives now lots is but how those Again, it to is the to us gives again, to it And again, reduce debt, asset, when best we us want and of it Albertsons try a earning lot a it of optionality use which lot of – investment about would us about gives we helpful, primarily although optionality. and it an monetize

Ross Cooper

the think done of really in them. shelter the Haendel. about a as piece, of in not did we that were really we And dividend. This major dispositions last the one Just income with many taxable lot of that how the past, to player to exchanges cases kind went are XXXX dispositions a

we about So how into about dividend. flow that really does much think generating lot and we as cash the as can. really It is free a play whole not flow cash

Haendel St. Juste

you was your and the curious year. a potential in the the I that. then role just about appreciate perhaps view uses I market No, maybe, to And coming there’s can you you how could liquidity sell sources Sure. into overall just proportion you sourcing over how play less are mechanism much, of sell Thank able the you. a How year? timing clarify could capital – perhaps I tied know certain Albertsons how next to time. much stock theoretically? into What

Raymond Edwards

thereafter, end the the be transaction X would at XX% XX% the released And This lockup. The of and every January. more investment six-month Ray. a that from for with December, first there of then the is is to was Albertsons, months lockout early lockout end available,

of So I the of be half guess, decision said, be management the it But between Glenn monetize for when out that to Board. ‘XX, will and available would as us, decide a us lockup. we to

Haendel St. Juste

you. Thank it, it. got Got

Operator

go next Goldman me. with Mike as question do have Sachs. Pardon questioner. go Thank you. from ahead. ahead. Please Caitlin next Mueller Burrows comes The Please JPMorgan We the with

Mike Mueller

into preferred Hi, the Is go to mezz be vehicle sheet? contemplating that going that spring? I in investments. that to for candidate you back guess on you balance a the up would investment that are and Or something set

Ross Cooper

on doing are it we sheet. balance Currently, Yes.

as small size opportunity of the in on we we there’s nature. set relatively alternative into corner mentioned, a only deals round I As of the could couple the Depending ‘XX, consider structures.

that to We had investors alongside dialogue ongoing potential the us. have would love with several invest

have do not We made that. any to commitments

much to on So And sources. outside it we right how depending capital basis. always of we then are activity one-off internal a now, on sort doing see, we look can

Mike Mueller

spring? And on vehicle an is for it. update there the investment that Got

Ross Cooper

take I plus to update lots We’ve is with of conversations business, of applicable there. of capital the mezzanine that the current want essentially and mean plus financing for equity sort that our the program that providers had being business. advantage preferred

sidelines we sources, in ready sort bring are commitment have them but made capital to any plenty outside waiting any or on haven’t we again, that of the if to we’re not. So formal see to

Mike Mueller

you. it thank Got was it that okay

Operator

with The from Caitlin Burrows question Goldman comes Please next go Sachs. ahead.

Caitlin Burrows

an you of question in be back had the to of it Could to use just terms you the would you given you would you Albertsons. do sell And the said thoughts be morning a guess I sooner good development? for to about if the kind and that shares optionality latest only talk like So as the sold expect XXXX? holder sell something expansionary down use, in think debt Hi, such could? Just acquisitions a your long-term be proceeds for do holding? what could you extent to or pay you Or

Conor Flynn

lot of it. Yes. Again, Caitlin, we optionality have a with

unlocked this mentioned, really until become Ray year. first the As doesn’t XX% of end the

will accretive, So anything we rest if expect of don’t do for go source to something then good XXXX. evaluate there’s do that, a year. to Again, for that the capital including to this we as us And we it do would we through paydown. debt use

Caitlin Burrows

the rents under it’s in and October X% of just kind portion decided seems the negotiations, bucket X% the and the back of to collection of each then to rents. – the rent The of be And Okay. roughly to XQ, like like portion of XQ topic. collected

the what tenants getting And I wondering sorts of this category? outlook these are included So what’s in for was resolved?

Conor Flynn

Yes.

the go go – of Dave. ahead. No, ahead, terms in So

David Bujnicki

Alright.

So yes.

the you some fitness, could accounts, etcetera. that restaurants, In is the it within terms expect: open of theater, entertainment, categories probably

have outstanding structure estate real billings, them and related lease well. continue us individuals them for we And also a that works amount a a those and program taxes. So program your XX to of good is majority on in do questions, to which period And to sizable or days and there a it’s modification as that national typically for ask reconciled tenants up to and helping through is that’s could paid. time so work But review, works lag of larger tied and then average. a that they eventually, that

category. items So that you would see fall open are that that would some account of there – those into account

Caitlin Burrows

away quick collection I have lag guess sort we that about not suggest Could normal but XXXX, as of rent feel a that XXX% and some rent that I that right before then, does to follow-up quite talked normal? say collection is that. you normal ever isn’t just it – like

David Bujnicki

it. question. asked Yes, Great you yes. Glad actually

actually really So our historic It’s average is XX%. on around collections XXX%. never

to XX% collected not range, XX% ceiling. are and we historically you what really as when where use in we far when think that what off today, about anticipate are So your collecting, have that we XX% you we from

that’s component outstanding, in not be a there’s as or collected that’s result. dispute a may So of always there

you a into to get put you started context, when that back So sense.

fairly We close. are getting

norms were. We – are our where to not historic

Caitlin Burrows

Okay, thank you.

Operator

ahead. Dijkum Point. next comes Please The question from Floris go with Van Compass

Floris Van Dijkum

your first two figure guys first third billable Number the to I rents your in relative morning guess. your revenue good in the quarter? and – to in is And one relative recurring your was so I what quarter Thanks is to the quarter revenue what is quick recurring out trying third what what is, questions, quarter? is your recurring

David Bujnicki

the based the Bujnicki. rent The amounts then It’s may tenants, them, changed where at take part to Floris. increased billable from as as a rent it David now. tenant show of denominated it hasn’t be have If and piece, try if get But quarter. not us we all, our because you is really the fallout we because Yes, to change, outside anything, the have from bankruptcies. it of have and much some changed cash that accrue That that still reserve. we during even billable not first that, to quarter back dramatically of it

Glenn Cohen

Right.

of embedded tenants cash in So the to million specifically basis basis million the Dave’s cash $XX.X point, during the that reserve there’s reserve, quarter, to third that $XX relates tenants.

changed fallout that we would denominator would tenant bankruptcies. it you low if the fit million $X right? is And Again, gross you all if are hasn’t didn’t that from that of showing accrual, have about that, that the your denominator think $X.X really reserve, So tenants so up just you million, have you much. the the that have

Floris Van Dijkum

Okay.

giving rate development. thanks Let you cap other views Ross, your me obviously, one And ask for on question.

views point, we a get discount. your was to be to obviously, in you what think they maybe, about think as would do do I trigger buying curious will the it? do when at appear think this to stocks, you your looking on big some I When trading What – stock? are at on, that was views for – the sector. can at start give the to back also, that? M&A you persist, Glenn, if be if trigger discount you And

Ross Cooper

Yes. always a I as M&A, to think relates I mean it’s bit tricky. it

We different in have in times done it the past company’s the five history.

Kimco We for continue to location, – quality, stay very on purposes geographic etcetera. focused

So discipline remain will the there.

landscape, in in the challenging very of will We the continue landscape when Particularly any makes for it the to it’s monitor that. well. at, of but financing, challenging environment sort as for look a privatization terms mentioned, market you very I it as

still the play becomes the ‘XX with the be into how like looks it opportunity endeavor while NAV, of will that challenging discount right companies to very out upon based see So there. could as it out a just we round some things we

Glenn Cohen

buyback, on are As far we liquidity. very, the very focused as again,

levels cases mean, on down you this us I environment. of debt-to-EBITDA alone, out this Again, virus. a We’re are yet our today fully bringing had woods new we is reported. else, one and everyone the still with XXX,XXX – very – net focused no in new and

knows to at it’s just be of I happen. point. what’s So no very to full prudent one this cautious going the impact think And

crucial. very again, So And to just important I are real liquidity liquidity. we have the clarity direction, in to having on hold right we that moving your back is it’s until full think

Floris Van Dijkum

Thanks guys.

Operator

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

Chris Lucas

Hey good morning guys.

I come two But in call on Sorry to the quarters, the just last had on the just of the in how your you going. does Dave, to of keep to of space match quick sort ones. inventory that of back where sort couple the demand that’s up market? is

David Bujnicki

question. Good

to the we’re including on In the in out of line a lot shop X,XXX the that Alta and market. you’re Stein of off-price that the XX,XXX that see Marts going others see to the the this in well stores. that the Below, five and filed, likes Dollar seeing are activity very size, range, the space That’s mid actively starting expanding, grocer So with anchor side, and had to quarter. fall we’re

bright So encouraging. and that spot is a

some little health when service-oriented recovery medical, restaurant they’re seeing opportunities will that’s small as bit growing a again, small more be but start tenants, see on as the expand shops, well mean, in the category a the to service I well. that of you shop we food On fits fast – very footprint. will care, the their slower, well capitalized shops as opportunities well here see small side, the to quick prolonged,

now, fairly well. seeing is – that to seen that’s So are we but in quality, we out just shorter see the a And it works it’s I’d alignment see, we into that we’re – have absorption of we’ll I the ‘XX. as say to what consistent and inventory historically. where start the right seeing we accelerate It’s higher fortunately, period of quickly move obviously think more because and ‘XX though, will pretty

Chris Lucas

So meaningful about CENA on will be some like when up feel you’re order that boxes – X think and you basis? to feel get be in need those that do do up you models, single-tenant your Pier there’s split components, a Or leased back, you back some component to going to... can you you getting like

David Bujnicki

So we it’s other. assessment make It to there way best. bit of in is take tenants an encouraging. split good which stretch orientation or the sizes, box, whole or to suggest unit-by-unit Does the varies those a retailer store always have are what have favorable more that But much are a we for where one opportunity do case there box, case, box can that how as depth put into smaller to shop of credit high-quality by of to that mentioned make to hard earlier, the well? a the the work sense tenants It’s and is. frontage economics it and interest I works the little

Chris Lucas

how Glenn, they much in contribute then, quick on did bankrupt a the just one of me, reported for And quarter? for third revenue tenants, to terms results

Glenn Cohen

So the...

Dave Bujnicki

the approximately Bank X.X% of third for quarter. quarter tenants third account for our the for ABR of

Glenn Cohen

of about was XX% from tenants. those collected And that

Chris Lucas

you. Okay great. Thank

Operator

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

Samir Khanal

morning. Good

on a I about? the there streamlining here, region? me businesses of should parts run for the modeling in different from moving you a one what’s standpoint couple with a be had Just know thinking G&A, of we rate the

Glenn Cohen

Yes.

in plus related a we million the merging to impact G&A. So I the quarter probably an about retirement going regions. It million, as the of offered, $X charge voluntary have program reduction $X forward we Samir, a about mentioned, will of during took, year the an that X $X.X million

it the second You’ll middle start year it and completed. gets seeing of next winds down everything towards the as quarter

Conor Flynn

Samir, real you keep two as other in mind. there’s modeling things,

other and interest of relates real projects a little that. off as them kind our on scaled the and from our burn can investments. redevelopment and color estate maybe income One cap have of down, you to give Glenn, equity other development is

Glenn Cohen

Sure.

on been of our years. redevelopment development is pipeline points, those So in X both about lowest and it’s probably the

So the have you cap burn-off this interest. of

be what we about half interest year, probably expect would next will So it cap of was.

next less hold. pretty that’s as around portion equity year. of probably number large that So still then we million a a preferred we the $X And investments mentioned, I sold

if $X about year. XX% million you million be the less balance probably look so you’ll about would to And sheet, at we the of income on $X those those. that recurring And next see sold

about probably X going forward. so items for or those $XX FFO of less account million So

Samir Khanal

it That’s guys. Thanks for me.

Operator

next Our from will question come ahead. Please of Street. Vince Tibone Green go

Vince Tibone

morning. I commentary back come to on the Hi, you good cap rates. like to provided would

changed where are Just cap certainly have but versus were since much rates in today NOI lower may expectations January. not they COVID,

today wanted compared underwriting typically some I to much all-in buyers hear So how asset NOI values view this have on a color And do XXXX have to how levels. you are fallen year?

Glenn Cohen

specific No. Yes. organization undertaking that It’s a definitely takes. very each

you in want that you’re and certainly, environment, robust We downside. have make group. risk your extremely And underwriting this an sure protecting to

common is conservative. being very that fairly evaluating it’s think this anybody and environment in buyers that’s flow I cash So

doubt properties, are you’re it underwriting that today perform at the tendency would is that a financing, they understanding provide. have what It certain And terms that is by an space is to difficult skin bid-ask and pre a seeing the in is Looking type in to NOI whether of to what essential services what post the lack would specify and in actual significantly holdbacks. space spread addition around are I to NOI of challenge and appropriate big for no comfortable. that of or variety in you’re structuring And And determination today. when a you’re pre-pandemic cat a levels. analysis, of clearly based the between that and is the bid-ask that, to is X there’s home the say outside that narrow being grocery, capping be more much gap biggest that still lots place, widen in buyers of buyers looking is the the retail. sellers, also, a value what or to out get determine credit, ways at But that pretty escrows be pandemic. of And ensure retail protected. for of decrease improvement the getting categories pretty there’s the essential transacting frankly, close pegging that you based very seeing you coming we’re

from The or of really think – the today. today that’s percentage in is retail previously biggest it So I coming analysis versus core it’s differentiating underwriting nonessential. factor that And where was essential grocery versus income the based non-core. power versus

Vince Tibone

helpful centers the any color. you come it. touched kind debt for is of essential there and today? That’s mix to just available Got back on? Is Or stuff the power some it of

Glenn Cohen

grocery-anchored did is. center, of was but property. interest X% component of one a debt very a the upon interest-only grocer that tenancy We rates. power It see buyer LTV with the from power understanding, dependent transaction It’s and was closed low my at relatively There center. the And the the small occur location XX% week. last

tenancy, been it’s it past. have right you that, today is when the can challenging but more the find in you than So

Vince Tibone

more quick me. one super it. Got One for

year-over-year Just OpEx like X% peers mid looks up were the – your single-digit in range. most expenses in quarter, of operating it whereas the cut

at peers? increase internal to may of some that is there does So their else attributable be the something Kimco than all or restructurings doing differently

Glenn Cohen

really anything we the had with the to pandemic, part No, bunch of than projects off. It else. a Vince. of early are more timing especially deferred a issue cap do this year, in holding also We

So a recovery through. this lot Yes well. coming during saw you quarter, is more that as on this of the – meaning where

Conor Flynn

you it’s months nine mean look I basically for the year, Yes. flat. if the for

Vince Tibone

was it’s related Yes. No, but to a the see it issue sounds it – onetime charges just mean, of a I to. some more, wanted if or I anyway around like catch-up

Conor Flynn

related did do also to some needed as well. is that around expenses things we to we COVID There

that’s So But we Glenn factoring as mentioned, consistent with where all in. last year. the for year-to-date, were we’re

Vince Tibone

thank Okay the you great, for time.

Operator

we I’d and Dave our conclude conference Ladies this turn to time, time, at Bujnicki the this session. over back any remarks. will to gentlemen, question-and-answer for closing At like

David Bujnicki

everybody Great. We that just to thank our want on today. participated call

Thank our very and is enjoy the reminder, you to website. investor rest and much, the presentation a day. supplemental of IR your As our posted

Operator

attending the concluded. now Ladies today’s thank presentation. for has you conference We and gentlemen,

may disconnect. You now

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