KIM - Earnings call 3 2023 | Kimco Realty Corporation

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Operator

Good day, and welcome to the Kimco Realty Third Quarter 2023 Earnings Conference Call. [Operator Instructions] please note this event is being recorded. I would now like to turn the conference over to David Bujnicki, Senior Vice President, Investor Relations and Strategy. Please go ahead.

David Bujnicki

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

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

the SEC to refer address Please company's such factors. that filings

measures During that be quarterly our financial may we make Kimco's found management information this investors supplemental Kimco Investor on help to financial better understand presentation, of certain Relations can measures believe Reconciliations website. operating in non-GAAP financial results. the reference non-GAAP these

the Also, information to with try quickly turn over resolve Conor. as event was difficulties, arises, the that, technical post call and need we'll in website. to call And to our the IR we'll possible, our as I'll incur if to additional

Conor Flynn

close an will times. macro with Dave, summarize for through thanks, on provide Thanks, us lead our Ross updated update and the metrics off market, our economic Glenn operating for some financial navigating these this will our transaction uncertain color strategy today and with joining the for of overview quarter, going and cover I'm performance an morning. everyone, and to guidance. environment, the and

again sector robust. an recession, some Despite again, markets bankruptcies, the shaky of the tenant debt impending high-profile off equity rates, center and fundamentals headwinds shopping high and on underlying remain interest of predictions

produce able to we and strong overcome produce consumer, recurring, results year as to an relative in an perspective, and from headwinds to environment of the we nontraditional operating along with resilient noncash portfolio strong supply, continues virtually traditional no FFO strong last to tenants, by new, have More $X.XX continue marked importantly, shop over anchor nearly new our accounting-related demand from results. operating been small

results quarter more while us third quarter. the few our our X.X million third guidance year. the signed enabling XXX A quarter our stronger We NOI of of bottom highlights. same-site FFO outlook feet remainder end third were for anticipated raising square than during the leases raise Indeed, totaling to for the

Our small continues. demand for all-time as of occupancy shop reached an our XX.X% portfolio high

XX.X% in strong portfolio. our reflects positive options is of Our X for spreads power the our for new leasing Of and renewal high-quality leases years. highest XX.X% is pricing the spread of note, X.X% combined and

our boxes. points of due As re-leased dipped occupancy at basis a Bath anticipated, anchor XX quarter-over-quarter We & Bed recapture remaining of boxes Bath Beyond this quarter Bed XX.X% to positive spread X to XX%. the the

to demand are XX the and benefit supply for continue negotiations Bed favorable remaining well-located Bath and dynamic in Our retail. all boxes from

Our points headwinds notwithstanding XX.X%, overall is occupancy off the to described. only XX basis

actually widened We evidenced push is tenants pending the is basis to open signed spread, continue This own by out rent XXX are our with to portfolio the in dynamics not enthusiasm of build estate quarter about team's demand points this encouraged our operating but our that secure which by continued strong continued right flowing. million $XX.X for these cash is transaction. that It representing the yet RPT real landlord. perhaps by to right not best the

remain earlier cannot we our ignored. I headwinds portfolio, noted the about be While excited

for in the maintain we we provide proactively Glenn not near-term more on to a we our inflation, due control, we higher to derisking forces the and result do dramatic exposure sheet rise longer uncertainty will remain how will in environment persistent details XX-year flexibility. debt mitigate plan of for and the maintain As balance rate future. a interest our all a stance address foreseeable of likelihood, treasury market maturities. optionality To in to

continue We free prioritize to flow. cash generating also

dates, openings to growth laser-focused ahead. be internal as help rent produce are growth flow self-funding store and and expenses us Free not expediting on strong commencement reducing while that are organic allow producing. will we NOI We income move cash

summary, In of growth as take shareholder execute build we team challenging to well additional that inevitably work and arise that believe to the value. to optimize continue We times. Ross? we able is and positioned to a to resilient portfolio are drive company, will opportunities and in continue we advantage

Ross Cooper

Conor, the all business, backdrop that scale morning the and operators, volatile, Kimco macro them. to to with all. times, quarter and clearly on good continues those of dislocation It challenging for and not the to only weather was be begun a benefits emerge but liquidity well-capitalized while take transaction including you, of the Thank fronts, side busy the advantage has owners

August, acquire creativity With rates Potomic to advantages financing that in for our with with property, top Washington, difficult unique and foot sales. at with best-in-class the utilizing case, and in continuing more we starting all X in asset Metro, in an Stonebridge to to on of the markets. in To exceptional attributes trophy this Center grocery-anchored a the grocer lifestyle square capitalized XXX,XXX to rise center is win opportunity a Wegmans D.C. Town point, in obtain, this environment. how dominant is we look

incomes and over our The trade radius property and also X-mile additional excellent a in demographics and rental has people from create allow stretches tenancy both will regional pulls layer miles and due the to also cash levels specific that us over time. growth, XX over flow to area value of platform annual to locations. upgrading tenants that upwards in from XXX,XXX market household The XXX,XXX with a

use every with the acres chasing attached densify includes attributes. asset an have the all in premium to land cap would over asset rate due the providing optionality to to Additionally, mixed with and is positive of institutional us be Historically, would future. this XX owner a it likely the that

Kimco million price, the allowed which out size, large negotiate for to rate X% for However, us with of Signature Series north deal asset. its a newest all on close a to stood with purchase financing $XXX.X cap our ability tight cash and

another the Weingarten our platform announced of and Realty. to which the RPT take clear a with This favorable centers. utilizing is During we advantage. transaction, unique highly cap the primarily merger portfolio on timing well-regarded we view of the limited the grocery-anchored also during a window to negotiate as Similar example we can for rate quarter, is competition this another

potential has the investments, As it been in uptick discussions opportunities there XX relates in to past and XX to days. noticeable a structured

taking ramp facing looking debt well that to significant Conversations one-off recaps. more looking as to opportunities for expected we transact with maturities, to seems up Admittedly, on earlier redemptions are happening conversations pace place at capital operators the institutional groups investors be facing a of but late. at are it these year as in unique as

are very All where we in we in remain as sector-leading being are utilize all, activity grow quarter move position but others active about We're to during participate, we we when our on expect selective to ability to the and liquidity forward. business the part this our excited and of our sidelines.

to capital off And We be now judicious opportunistically. highlights for be the to financial Glenn ready move quarter. but continue will to with for the our extremely

Glenn Cohen

good morning. and Ross, Thanks,

and our results third leasing growth. demonstrate high-quality by positive quarter the same-site highlighted of Our spreads operating strength NOI continue to robust portfolio

strong rate the stubborn environment. higher macroeconomic leverage to resulting liquidity inflation from position interest and our metrics us position effectively Importantly, and headwinds handle the

Now results. as $XXX.X quarter diluted year's $XXX.X per or diluted for compared on $X.XX per million last third was results quarter to our million some third $X.XX details of . or share share.

million The by key offset $X.X LTA million. quarter increase income pro rata in of results components million. minimum produced an increase of the NOI third and Our of consolidated rent were $X.X $XX.X straight-line higher rent of lower

period normalized level compared benefited In credit was reserves. from to addition, bad by loss of of due $X.X had more a last to higher year, loss debt as $XXX,XXX the credit expense reversals income million current which

the bonds ventures. in as points last Overall, pension assumption. and debt floating at third million This X at basis credit expense to for incurred interest our of early the merger of point quarter guidance year market was million $XX our portfolio announced net benefit Pro connection costs the favorable of with higher basis with of a by amortization the fair loss and XXX revenues rates the XXXX, the repayment was point due million the resulting also $X.X Weingarten of the months, Also final $X rate loss lower associated are credit plan. and million, included RPT higher XX rata of in $X.X joint $X comprised a FFO from was ventures. the percent XX joint our in of the interest liquidation from end million third in from value quarter to basis on consolidated of for Wangard

if as it have Same-site quarter, of the growth higher by brisk the rental operating Leasing we more a growth impact NOI revenues basis for level same-site Conor remained quarter. XXX credit adding XX points drivers and prior loss third of points. basis would contributing impacting to points. the portfolio. offset other the X.X% minimum by NOI increases XX same-site was rents primary normalized excluded to collections, period These throughout were activity basis And The the X.X%. NOI are of Moving positive growth increased mentioned.

brings the X%. Overall, and NOI our strength growth same-site these continued of year-to-date to demonstrated portfolio results well-located our

debt a as net debt including -- preferred and same look-through and the with perpetual EBITDA X.Xx. stock the net better than year We JV consolidated sheet. to quarter of a Turning outstanding, ended balance debt last third the rata X.Xx, quarter On was EBITDA to X.Xx basis, ago. preferred pro to

comprised than our $XXX revolving over remains credit was cash position billion strong $X.X availability end. quarter liquidity at full more very facility. million of $X billion Our This in at of and

quarter our fixed a million. which of is million end, mature to long issued value unsecured bond which have coupon remaining X.X%. shares, Subsequent in to a a XXXX of at XX-year over we addition, have $XXX scheduled $XXX we Albertson new In

are rates have year and table. further are dramatically risen As aware, the past increases rate off we the over not all interest

due we such, large the it high-quality first instruments which the our next in of XXXX have portion As the Pending upcoming was maturities, bond year. to mitigate come of in a we proceeds invested the quarter felt address to unsecured dilution. maturity, prudent

Now outlook remainder XXXX. for the of our for

amortization the normalization noted earlier, to XXXX, totaling Conor stemming compared of the As lower value Weingarten the the bond share $XX loss. fair market early $X.XX facing headwind year repayment we of a million the and per of credit noncash anticipated from from began

reduced termination by in diluted $X.XX addition, $XX our million lease share quarter. XXXX first income assumption per or we the In

the result a from performance portfolio, back. the of most we As have clawed strong operating this of

and ability overcome to of operating strength the stability our these speaks Our to portfolio. headwinds

year a again loss credit XXXX $X.XX X%. to $X.XX full $X.XX. X.XX% of FFO $X.XX from previous Based our the the to are to points and tightening level on range from our fourth range of XX to our previous X% per of expectations for to includes the quarter, previous guidance NOI year-to-date of results to our same-site the basis improving we from This share basis points XXX assumption points X.XX% range increasing range to assumption XX basis XXX to and to our

elected on has common share, fourth increase to In Board year full an X.X%. to our our increase representing addition, the per based expectations, $X.XX quarter of dividend

year, a for million a As we special income included tax $XXX ordinary has which but in from reminder, FFO. dividend this received not purposes Albertsons considered earlier

to requirements. dividend needed continue our special evaluate the REIT We to of amount satisfy distribution

to we pay year-end. November, the in and by declare special amount The expected Board it dividend of to expect is

of XXXX it early Looking our we your our ready provide ahead, the report that, And RPT will outlook merger questions. the we anticipate We being quarter completed year. in we with are fourth take when to to inclusive results. be plan

David Bujnicki

conditions, approval and additional stand-alone company. as Before Today's today's we Q&A, on contain of outlook will Kimco's of shareholders. forward-looking focused RPT be begin about merger RPT, item quarter note, the third which customary the subject closing to discussion pending company's a also with may results remains earnings call X statements including

can our such, the can transaction Relations in website. are limited, Investor we With . including responses the this available, merger As which found now our already transaction all information announcement, the of that, section around pending Q&A. be begin the agreement, that's the publicly the and S-X

Operator

[Operator Instructions]

UBS. first Michael comes The Goldsmith question with today from

Michael Goldsmith

you the the asset have market changed in company, assets when You an of you the assets things XX-year in quarter, the how increased. update in some a emphasis kind with acquired particular purchased the the market provide quarter, on you since on for an the you're transaction rate sold can selling presumably of RPT

Ross Cooper

happy Sure, address that. to

few in the think And and side I of that on think, active now a which the showcases transaction, on quarter our very The center this acquisition of core of We're quarter, strength the the land market you're yes, grocery-anchored significant to significant to and dispositions Xs, acquisition couple had X being at that fairly shopping year-end. ventures, venture joint of the in a would pipeline is rate So right. the centers. in on nothing out they be assets Center. There limited. . That joint value. the capital, mentioned. grocery We very about the Kimco we California for low Southern were side exploring. we're X smaller parcels cap There's there I essentially long-term going where in in still sold can I Stonebridge I being, the which It's to as of hold note some is a terms very create between dispositions, very expectations. market fourth of that excited cautious particularly a limited and and we a low continue be said, our a we're select

I would is tell transaction still capital year-to-date. volumes that There the is work. down market you that is put minus although to active, or plus still So XX% are being

Just has I grocery-anchored Xs is that the mentioned trading centers recently, in a as Chicago we that last so, as that financing well cases, sold higher is Midwest Xs, sub-X Southern of rates seen in the parts cap environment transactions where some We've the rate albeit months are aggressive power we've there in the than well Miami. California from the what in as very other the still XX seen in gone. and Xs aside given and rates in centers X as the which and or obvious available, at low were

But range. investors LTVs be XX% obtained or can owners from still to private the in XX%

time. that We're we've still by at business, fundamentals we encouraged believe about activity execute selectively the the we and as there. we -- talked can So see appropriate of there's what out in the

Operator

comes . The Sanabria with Juan from next BML. question

Juan Sanabria

with presumably Just hoping to to growth be regards RPT the back on the up targeted pick on dispositions, Michael's would lower of markets. focused question Midwest that

to more the differences of rustbelt-type Just are of gateway secondary, at part think typical portfolio, that you about how should spreads rates markets committed cap prune or how . maybe or markets. And between versus primary if trying we kind to all? Midwest

Ross Cooper

Sure.

there I still We are I save in tell transactions mentioned, as going well we the the you of as would in for and close of out seen we've to the being activity RPT once specifics Sunbelt strategy as the the That that Midwest other said, merger. is parts there, country. the

still all country formats are parts investors retail. looking all at the of and So of

that amount amount a a market for of it's of pretty sidelined been currently frankly, supply appropriate more and that's opportunities the hit static that There's and been for as the significant capital is introduced. is to supply leading stable

selective. very So we'll be

premerger going integration We're the process, through the process now. integration right

we'll and . So specific what there by the portfolio about the formulating get beyond the strategy of we're we're we strategy, -- and it, as encouraged and to and our merger plan the much be RPT very we're but the direction more seeing

Operator

America. comes question of next Jeff with Spector . from The Bank

Jeffrey Spector

I just opportunities appreciating that performance, little on a given push risks these over or too concerned And the market clearly the stock sounds is guess market year-to-date just to the not the is on the opportunities. it exciting. bit,

Kimco that can seeing maybe come. alleviate to is more some of right strategy share these there opportunistic. the opportunities is I anything you be else today concerns to to You're guess executing

Conor Flynn

take happy to I'm Jeff, that one.

themselves. our the raised same-site having results, all-time you for in very high on we guidance, and dividend, we FFO. So on raised we our I reflected focused there strong spreads. numbers X-year see small that are result operating shops occupancy think speak strong our NOI executing raised is guidance, high and results our We leasing when strategy the our for Clearly,

think we're Kimco So showcasing time we're and and financing in we numbers the I an believe it We dislocation speak the that's for. executing Clearly, and letting And we're opportunistic. themselves. what opportune try known market. with for be is the in

a as last executed believe we our past, so know we we've good only and And in and the obviously, it's as deal. story, we're show-me

amongst to that look sector, shopping the of & with we've at open-air the track of over the CBRE, up they've look since the our very continue commercial tracking. for vacancy I the levels sure we're you existing which the center you health supply themselves. when Cushman But and industry. for when ever we side stock lowest demand lowest and that put the new numbers been of speak is it's store new look entire X,XXX been going estate the this store what and know we about Wakefield sector, for of whole at openings you supply categories. of so -- to And of And demand, year, X.X% real depending the all if the construction, make or vocal the the openings

So years lowest vacancy ever experienced. country the is between XX at years XX rate at Cushman, has the CBRE, this

It's so quickly. And synergies that so crystallize We a all wind that portfolio We transaction think the is gets see the can Kimco most good we level RPT quickly the what a we build. the showcase in its platform obviously, and can to very can high-quality exactly we're that. spot. we opportunity. what bring OpEx that it with execute And block believe us G&A margin excited, back, at a and tackle the and on and up is

Operator

Mailman The next Citi. question with comes . from Craig

Craig Mailman

from RPT another Just maybe on here. things coming angle at

at debt that has to you new just moved deal you $XXX higher the kind about Just to given versus the guys guys are, . where of Could how where years did the look debt the costs? financing call up, the the bps given mix million. XX take they rates announced X.X, talk have the deal just refinance announced just since And transaction, it, you maybe the optimal what since XX math was out? could could of accretion cash go, like you

Glenn Cohen

little it's and a we of full optionality. Again, we miss, Glenn. bit, have have a do moved Yes, rates but fair amount obviously a

We obviously, sheet. is our have cash, that on balance

We to of beginning part we to be the Albertsons also the expect our would investment able that in monetize have year.

So with where capital, feel prices comfortable close we our between at pretty targeted. that, to relatively debt access revolver of to refinancing we the

expect are I from but Rates accretive be FFO still standpoint, in year. think bit, we up little first the full a the transaction to a

with cash seeing of the available. We again, amount Alberto. the significant have revolver and balance -- We're fully was a sheet on

I take flexibility those to down give the think . us

Operator

from question comes Handel St. next The

Juste with Mizuho.. .

Haendel St. Juste

will the ask than many the leasing were expected. ask us of not to leasing Bed The you spreads. stronger, think, I I RPT. I on is question on spread, wanted particular, question about which My in spreads. for Bath

you maybe how TIs? cutting spreads remaining can on conversations And Are perhaps So maybe to boxes? and more more the . bit for a here? shed color up some color offering those Are some backfill are you on the going expectations boxes you

David Jamieson

I Yes. appreciate Yes, the question.

think Conor the part in existing I of right the our favor what very that really mentioned now supply new inventory. of it demand with much dovetails supply development sort about and factors no demand are

message And have to similar over are what lot a for growth previously. we've communicated to to store years. their so They count. several And opportunities of the hit next looking these their projections grow retailers

clear inventory the And Bath is so they've always X of opportunities. seen Bed those

cost rents actually which the commitments multiple look line. been looking of the drive helps at terms pretty have the spread, much similar in you the helps side, costs for when space players that made, northward, push the at they've So you the in have table you

we that we have the All the still boxes most splitting, been look couple you backfills, very likely boxes. single When going setting single-tenant to remaining handful of yet. at to tenant occupied those from as see in be was a XX, are of balance by margins for these T here healthy of and be the users. expected have very a be that anticipate that spread beginning, still we there we well but may aren't those

favorable So again, now. looks right

Operator

with Evercore . from ISI. question next The comes Khanal Samir

Samir Khanal

figure Bed a kind will think new the out for mean earlier. trying we growth how Bath of downtime with how boxes? to back to take comment with much to year. the the online how should we sort as I'm those of next follow-up downtime get the it I and Maybe tenants long about -- think guess rent I about

you from a as how I'm sort on rates, much headwinds . X But rents higher from a year. the pickup expense. have of side, just the of interest So next side, understand get on trying of the tailwind you'll other a to interest for sort

David Jamieson

sure. Yes, Absolutely.

boxes So we are which a on have currently boxes for total. were million which spend pipeline, XXX XX that executed, X were basis in of our $XX snow points, XX assigned. Those accounted

have that boxes do on For first flow X quarter. backfilled actually some our Bed were perspective we starting timing, to Bath this

Obviously, our was that XX% that of timing anticipate to snow baked through so of about what on XX% box-to-box needs flow pipeline, 'XX. XX-month done. under of The window. to And the will seeing a vary that . be course which we into balance of is

Conor Flynn

part, boxes, date. The been about boxes compresses whole commencement the rent taking the too, nice they've re-leasing tenants build-out Bed of is, time the Bath and the the which individual again, usually

So to that's year. already this flow . see what we're some starting

Operator

The next Fargo. Wells question Dori from with Kesten comes

Dori Kesten

With . be you near to annual would term? for escalators there's push finding expect able respect for continue higher the your pushback? upward incremental to to push any to Or you are

Glenn Cohen

a conversation Sunbelt is have on the with a market markets everything where say the increases, retailers. really Obviously, all can Yes, Obviously, we opportunity been but further negotiation. of push the areas it's driven. we'd north it's probably case-by-case

been confident there's our abilities in But a on felt table. So lot have to we holding north to well. were seems pretty now. we of It discussion it right be push the

demand high. With XX.X%, supply matching our is that Again, in small our all-time . shop very still working the at occupancy much favor. obviously

Operator

Sandler. . Piper The Mitchell next from comes Connor question with

Connor Mitchell

the your demand. anchor and guess with thinking guys tenant you conversations having and tenants. So with about lack I are supply how strong sticking of discussions

leverage tenant tenants . in discussions but maybe dwindling, that the deals is leasing to some the to regain terms anchor traditionally, availability curtail drive on friendly are those So able how and is terms? now able Kimco

Conor Flynn

provisions, at which . I core can of that to principle outside impact, tendencies you the a more have economics, also grow flexibility where our a we to you loosen change. mean so. of see continue and been think has of up, I data-driven centers market ours, better redeveloping us, into provisions, create sense flexibility do exclusive of Yes. rebalance, start so looking or to repositioning the co-tenants for a understandings obviously, all and having you're Sure. you

Former principles to fitness of was about then dispelled the long impact the elsewhere by and that ago gym go of they shop go afterwards. reality people actually the sort and

And have come so retailers to appreciate that.

So I for think are today, and the that for shopper work very more they're than the new to both and a to retailer strong, build ever, sides. partnership it's customer very . explore looking our much very, opportunities best community the partnerships willing and

Glenn Cohen

thing opens only I more which and in flexible to up past. of sort again is seeing with prototype It you're footprint, the add a days I be of become retailers the more having think their And store lot it. would opportunities that's seemed

that be term be specific optionality but And it what tweener creates so more might with opportunities. for is an Bed spaces not that lease seeing you're some that's a more item, the of demand may Bath that and size,

Operator

question Compass Gerbrand comes . next Dijkum Floris from The with Point. Van

Floris Gerbrand van Dijkum

highlight I'm are ever the reaction increasing scale your but maybe from context some already, can at occupancy the a your levels time are is that what probably maybe when on fundamentals shop there the center some of we've talk into the particular, historical also best and if record shopping of the you little industry surprised put maybe in a you And big your markets on leverage if about regional seen. ways can occupancy differences? But ratios. in at bit the

I upside occupancy? pipeline ratios. already, upside snow that how terms But the highlight are versus Maybe shop And also, is here. obviously, do what Lyon the bit example, little to that that? much or of national. online, New comparing, your comes potential on Obviously, differences believe, record there your can as And would York more . occupancy potential leverage you a for to what -- low market additional in market here push your

Conor Flynn

that Floris, there's lot start, analytics using to We're We're we and we're positioned virtually our But build, happy . And in of the but quarter, data the can which for the feel you're pass demand portfolio. facing. supply new further trying Sure, by to that horizon we're that grow regardless signed we and spot as around. no future understand a you our obviously mic saw, like dynamic expand not experiencing that that NOI the encouraged to us supply the is on portfolio open as portfolio the strategy indicates and well continues growth allows maintain pipeline to to environment we're on. this of growth.

for And leverage keeping levels us all-time lows is at so important.

be sort proactive maturities You saw really recent us out and push bond of any near-term offering. our with

push a We just small think the us we've shop for occupancy to be highs, that is continue to spot going and reached more to there. all-time to as bright we're continuing think there's that

as earlier, think to from see -- there's and are value convenience. all there's you and demand because everything drivers can evolve multiple, mentioned of benefits and convenience. And cases for use shopping are almost traditional the it's they I nontraditional and As more and continue about value the centers you

evolve be, choice to whether businesses. for start medical the want a I of the service continues to you a a whether use, And shopping it's it's evolve place people spot think, pure retail it use, use, the to where as so that's it's continues center why to name whether it,

in gives us upside this long encouragement think lot we I think fact as it that the has of all as future we term. that parking that's underutilized a have the And of why well

we long think want the in XXX always this entitled units to alone portfolio. we quarter So over term,

a multifamily retail. to us, we been we've roller for for We position that continue uses, think portfolio to but on the multiple shopping include evolve center the long-term growth, coaster will of primarily

a deals. As in things be been And and think, to the have pandemic. COVID estate bright the we've been going good commercial that's if know, There's to we we're spot we are people right do you should terms be the future. and there's Kimco when feel apocalypse. now faced intending be into you execute that real the in showcase really we make been hopefully what of to challenges, I when and generational positioned, forward of spot There's capability able retail times at all Kimco well because opportunistic nervous, like we're feel to is

Operator

The next question comes from Scotiabank. Greg McGinniss with .

Greg McGinniss

curious this spending opportunity? redevelopment you see do point? size Just portfolio, the about Where given thinking acquisitions of the growing versus And on how you're bigger size whether of the and at some squeeze. just are see it to expect cost the be, accretion yields you not . in not due the to whether or opportunities worth whatever redevelopment or the there increase might

Ross Cooper

at and capital deals cost that. something To as paramount acquisitions Sure, and to amount we for in this have moved. point, and that is are challenging interest in not rates acquisitions capital collective at of least happy have to of address moved will that basis. committee a on the very accretive that environment, doing third-party the of evaluate cap discuss speed rates same near your be nearly us that daily term of is as our a one-off Cost sort capital cost

within double The very high of is bread-and-butter redevelopments, at average. digits clips, retail redevelopments the on continue portfolio bright particularly spot that sort our

it. continues So your will And portfolio. as and that continue to pursue an point, is opportunities we investment the to to portfolio that our grow grow, alongside those opportunity activate across

returns and every process also opportunistic have prioritize then where redevelopment and we believe to us structured we requirements we'll proceed, each retail and our double-digit And in exceed So of significant with the redevelopment flow. opportunity be will available to cost continue thought mind. be do a that investment and of program, our capital we'll that for cash put with leasing amount which

Operator

question with next Anthony . comes from The Barclays. Powell

Anthony Powell

matrix? in that fit how I on about into does -- . compare other $XXX How investments have? authorization. do do capital I allocation, you to had share structural Question you opportunities where left the and guess, million your repurchases think

Ross Cooper

I think a conversation. it's similar

that investment and is opportunity capital I every at based our think upon we that. cost look to is judged of accretive what

which think I optionality talked being ever that's levels our leverage the anything bit been, than table. that the consider to a us lowest we about little gives at lot more a on it's historically

look through whatever and every buybacks, stock leasing, lens. case and redevelopment, it we'll based upon be investment, acquisition, at So opportunity that the investment structure prioritize may single

we it. how consider that's where that's So sit we and

Operator

with next Caitlin question from . comes The Goldman Sachs. Burrows

Caitlin Burrows

types takes Could shop Conor, time industry? versus you're that like sign bright And lengthening you uncertainty timing, what local types. property from we other it of to national, hear talk I a leases about talked also that about macro occupancy you the is interest seeing what and spot. like tenants feel the as small

if you're all in I'm So wondering your seeing type. that at . property

Conor Flynn

quarter. a Sure. spot. dominate And to From the percentages definitely users we specialty of When past new types it's those the then health of evolve. uses foods, the look sort like when of perspective, signed at still that you sort really I category, it's bright restaurants, wellness a think small that, and this go leases that of shop continues you beauty and

sort be dominated to by of the bus world. of old used You the

hair have centers Now we're to of growth continue at number and evolve category, services center out to I all We shopping component as the seeing the and come had others continue the salons of uses well. Sephora of always to in that component evolve and the medical key key open as sector. hospital, think to you nail have to want and look air be a their a shopping to to strategies. continues a add But evolve. that When the to evolve closer that when consumer as you continues

they're that's with think proven credit that actually again, at on I there, improve it. the guarantee franchises and deals of retailer And even you ago. can then X today these the the seeing with, business. driver. doing being And different starting was on franchises lot the it what's years And corporate than concepts to profile is growth how very the when a you're a what's these franchise-driven business going we're The that of buying look -- they're sort continue you be mom-and-pop model,

and And obviously, we growth all we're of that our on we about leasing these so strategy, an enhanced the talked evolve are growth portfolio, as adding to small the increases shops, continuing things the improve to profile. up, getting

Operator

comes The Feygin with from next question . Alec Baird.

Alec Feygin

the I investment into to dig kind of wanted structured conversation.

those been around up conversations us the the to that criteria we those Can . you details more have have can guys book expect grow return some lately. and provide guys picking that You on to? what mentioned about

Ross Cooper

there's with XXXX, of that continuing theme we Yes, more are to and up as conversations with program going we Sure. cost optionality enter the the capital. anticipate of be do picking

providing that to capital As we're our our the well. potential rates of quotes increase, increased hurdle as borrowers have

back-end now to potentially as participation is digit X% with . starting previously some X% double was a what point. So

right So double structure going will the we rates anything in But digits. will that obtaining we're we ramp the And start our are the that position certainly now average expect forward of in think of in the terms high blended in up. the current mid- that to Xs.

under just the program. now the $XXX within outstanding million book on have right We

be So there. run we'll to but of there's think room to that, continue that we mindful

Operator

The Tsai with Jefferies. Linda next question from comes

Linda Yu Tsai

You at you're outlook reduced as end. trending low your credit loss the

portfolio do it's low think terms Given environment your a step operating premature lower tenants, loss and years? function you're in . of the say the record be better improved to you credit quality in will supply in coming credit

Conor Flynn

that happy we're with seen. we've Again, the improvement

to back level we I credit for back to point what on basis little I pretty saw the you're guidance to a But next run to similar seen put think a as prepandemic. coming normalized XX-XXX range, normalized you've if early It's rate, that loss think we're year. levels. it in into

Operator

next comes Mueller Mike The with JPMorgan. question from

Michael Mueller

the opportunities, well? opportunities real to some investment you evaluating they as are operator Or estate? are back to structured . tied all Going

Ross Cooper

component mean that we're Yes. estate in having looking core I refusal right program that first about right past, real first the the with of a program. that of critical strong our sponsors, talked markets operating high-quality of is tenancy a we've as the and for, in is demographics, offer, at core looking

that of there active not being estate X that has call. that rich historically. are said, we're And as if phone capital believe our first are retailers their that their, needs, typically we that business Now real we have have Plus been do

conversations with we'll those look retailers always can those owned So helpful opportunistic well. and we estate, and continue as be of a opportunities at will where amount significant have real that

Operator

Street. from next Rojas Green comes The question . Paulina with

Paulina Rojas Schmidt

and look balance and our interest how sheet of Good will been retail rates, maturity. of facing the that unprecedented morning. question introduced of course, has Price after a starts company

above So when about feel it's everything with Do given failure interest think that or do you is perhaps think potential that will rates? it fallout? happening average about you about the -- to be tenant reasonable think how you future, tenant

Conor Flynn

question, good a Paulina. It's

just or spaces we're retailers term think very impacts when would it expense Obviously, going is to today, you maturities that think right quarter vacancies. may we the . And we're and comfortable even industry. I industries, you may interest at available with be dynamics higher not about say or year X available continue environment long other never earlier, that that not look tenants. the that our be and I what near have rate the facing feel like and We're showcasing about demand have this to doing credit how in line available the loss years' to Kimco the in are or the time. now smaller And really be the current on showcasing near-term we reserve the debt what that's showcasing but best-in-class up perspective. we we all talked today. refinancing, has X be in look a at the I improved proactive that are a and that retailers term from for when track that to you supply when continue credit been just

knowing going fill promised of Because the their that supply, openings engaged store it's are current in in pipelines be net of to that the new lack of hard retailers to environment.

they that to they with try and and can where align build to to have like Kimco fix to fill they folks So their add wanted see where needs.

Operator

from Truist. question next with comes Kim Ki Bin The

Ki Bin Kim

To on last that follow up question.

cost the given on do for your developments, the yields expansion you your tenants, plans? rise capital question, mixed-use of went active weighing pretty up in their second And see Just that the eventually noticeably.

that. drove what curious Just .

David Jamieson

for Yes. Kevin, great questions.

big a limited. think, appreciate inventory available that looking grab as continuing to we they're has and likely don't get capital . That impacts if term first inventory tomorrow. they not the try I well. one, and that is to retail very in partners, through, evolves might evolves short probably share that, there as a today, maintain our And and retailer with ours strategy, the different where new So most it close market can said, dialogue with they be every

right say question. the But the So majority we doesn't I them. seem stay can retailers. that the as pipeline, mixed-use to the relates it as I something very it of yes, be appreciate slowing close now, very, And of pace growth to to those

equity what X That the which being are X structure. see we're that X ground you of the X we preferred its as first see Colter was which leases kind is that is So doing. identified projects, and you there of fourth the our

to accretive returns felt returns we a projects. preferred if Obviously, those related or invested the show it the all growth higher quarter, appropriate to capital than this profile what related the are So was capital the Kimco yields to you're just actually invest real yourself. that to and

that's the what that's So reflecting, it's change.

Conor Flynn

looking and development thing the side. the would do are on sell to these costs rate of for and in, the of I ground-up only as lot tenants add because development ground-up we're those leasebacks retailer the The sale now is a of demand used that assets then seeing side, because second what environment space construction versus generation

versus availability. development financing at do inventory lack new of of existing net absorb And because how looking so they're they that

as more And that dried spaces demand really so up first-generation drive development ground to as that has should well the up. existing

Operator

Sanabria from BMO. The question with Juan comes next .

Juan Sanabria

shot Thanks for the second here.

a just back questions. the couple to where on One, -- of we merger Just going RPT started.

guys in of be that refinanced. you the needs debt So terms to what are assuming

So Rite on get that that's they're just you form or back part update if X two, or give they've and deemed that going there us part one. And then for seeing in expecting to another. could an exposure what the you're Aid the space

Conor Flynn

sitting notes. balance placement loan be debt for million with $XXX revolver the debt $XXX at refinanced million debt X/XX, and private if sheet about of have about term and RPT, both at of bank of then they're to the you terms debt, look they in So

there'll then obviously, into magnitude plus the that be that's looking and we're merger So at go of what that.

cash So have our as we markets about balance I options obviously, mentioned, Albertsons the . of fund how it's and around million to total. from the on capital access other aligned, things. to sheet, that And a in investment, variety $XXX

David Jamieson

been have our relates leases right about know it day rejected that points Aid right of occupancy X X we of X. in Yes. Rite now. now, as basis the And That's exposure, to

expect close So are another we minimis this to quarter. X impact, de a there that

activity X retailer the So total appropriate operators larger users, points small lot right in And shop terms about that's mid-box now, of a our the and is of the of have list basis on in well. hitting we of impact. so sort total, good occupancy for and as

we're encouraged by the So very activity.

We have drive-through-locations. has that X

confident So can attributes, those good we . good backfill there's again, here quickly. that we pretty feel components

Operator

The next . Burrows with Sachs. Goldman Caitlin question comes from

Caitlin Burrows

in just a didn't to had one, get we sneak second it. originally tied I to but then

to question. office And a a the uncertainty hear just macro follow-up sense that? wondering your if of And urgency this that how they maybe avoided the and changed? on it you Bin's am. in Ki it's guys are of we so little of all, over Or have . like have leases have lengthening the takes I'm leases year? is course seeing tenant like industrial, at signing you, guess, time I sign so bit here But to So evolved I like

David Jamieson

course changed. of tied their may that are anything, time, it that's business. but some portfolio. It signed that people they Yes. to related deal add -- for points growth sooner macro can looking leases get really If so and they open quickly Not the anything start hasn't environment. can within we're certain get negotiating to normal booking

material change execution. of time real no been there's terms . in So of

Operator

question America. Libby Bakken from Bank of comes with Next

Unknown Analyst

Join. Lily just Yes, is This follow-up. a

just from it clarify you a do or you $X.XX think to walk guide, quarter. down the the on bridge $X.XX like FFO fourth XQ it XQ the -- So implies to like based could into the looks step

So that. driving just curious . what's on

David Jamieson

a couple have in quarter. things third that the Yes. we onetime Again, are of

liquidated comfortable some and things. coming a the very that this that a headwind of lot pension upper range And the feel made onetime for few today. we set range mentioned, into the year. other from As back, of there's Again, we year, up end range had the of going that towards end we're during there's we high with we that we the was plan driving the But of the out quarter. Wingard the guidance again, impact at

really . that's driver So the

Conor Flynn

about recognized we that onetime There pension line. I, income income what's was big mentioned, as the in a other $X.X was Glenn million. That's

back out, back more normalized level. You that to . you're a

Operator

Powell Anthony from comes with Barclays. question next The

Anthony Powell

the to square wanted landlord and that summary in foot related forward? up confirm going the to I Beyond I'm the saw . and maybe first assuming to that that's talk work I quarter. landing went close but to $X TIs trends worked about lease, lease Bed-Bath

David Jamieson

sure. Yes,

So there's of a couple components.

leases Let's start with the first new side. and

is slightly So higher, driven deals. by lease new X side, primarily the

which total were on left is If landlord in go would you those rate. TI XX The lower excess from XX-plus of deals XX work the and at a out, the deals down work more returns to for end the of normalized percent.

and the So on XXX%. is and XX% between accretive those very mark-to-market

So very, get range. But $XX very you down accretive deals. those back out, to again, the

of of also deals new and this terms XX -- that the In number weight include of is elevated overall, quarter it where you quarter. of anchor the the last executed renewals because did we'd new leases leases, and options,

those First, bit lighter. the and you renewals little a number options, are if see of

the when bit. together, up obviously, component deals little new the a it you weighted number of grow blend that So

much are and But line cost from standpoint, well. the pretty options a see, can as renewals as you in

that's difference this quarter So prior between nuance quarters. the just and

Operator

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

Craig Schmidt

everybody Thank on rest of appreciate the just the We much. that your . day. participated you call. so Enjoy

Operator

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

You may now disconnect.

Kimco Realty (KIM) 26 Oct 232023 Q3 Earnings call transcript