KIM - Earnings call 4 2023 | Kimco Realty Corporation

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Operator

Good morning, and welcome to Kimco Realty's Fourth 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 F. Bujnicki, Senior Vice President, Investor Relations and Strategy. Please go ahead.

David Bujnicki

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

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

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

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

And the over with call that, to I'll Conor. turn

Conor Flynn

acquisition. our recent today transaction joining will financial will I the for Glenn RPT guidance. thanks plans QX and morning, follow cover Good summary on will with lead with and provide update market, of results then Ross metrics us. on XXXX for provide completed updates then our off and a an leasing steller our activity XXXX. and some strategic

first tenant portfolio. momentum closing day provide built off of on deeper, year. and will additional with note grocery-anchored on this the perspective of and on the by shortly. business broader mixed-use We record-setting We've a high RPT our concluded and XXXX acquisition on resilient more for activity RPT I a base our kicking positive leasing XXXX

our accomplishments. Let's start leasing with

XX.X% to sequential rata basis up on points basis. on quarter, basis the XX overall occupancy finished a For a pro

XX XX basis gain our point highest more in is than quarter-over-quarter years. the uptick back Importantly, occupancy going

overall basis occupancy Our increased points. year-over-year XX

a occupancy high XX% We points up was quarter, record to quarterly XX.X% square sequentially surpassing previous points XXX feet GLA record up and new million finished lease grew year-over-year. points shop basis fourth Anchor ended signed highest over flat XX occupancy XX our basis of to in level in the Small basis XX.X%, years. the over and X of XX year-over-year.

leasing XX%, strong pricing on our We the power spreads. was leases ninth new our also of quarter maintained marking spread double-digit as consecutive

we options historical were retention square signed as and strong X-year million XXX totaling our Our renewals levels quarter equally X.X surpassing feet, average. fourth

with renewal of feet X.X%, team fourth accomplishment. quarter and combined combined square at at deals with X.X% Overall, for fourth effort XXX a XX.X%, renewals X.X and option million quarter spread phenomenal a leasing was options totaled volume The ending spread and X%. a tremendous

remiss that at what exceeded leasing be Bed Beyond our absorbed mention the we've majority XXXX & spreads Bath of to more efforts initial our impressive I'd that in spaces far is that vast makes expectations. our

of with basis ABR XXXX started Beyond Bed XX Bath we recap, XX to & pro representing Just points approximately locations, exposure. rata

for fourth the During strong those spread Of the were that XX these XX%. leases, year, XX combined with locations. combined rata in signed XX%, demonstrating spread pro resolved high-quality of we a leases the X at of demand quarter remains a

into will as which the remaining success strong will our we're move confident XXXX. resolve that we XXXX and year continue our overall includes in boxes, X that This leasing through believe

platform. value to the the Looking engaged to ahead, are we RPT Kimco fully closed, with who seeking add excited about our new deal are members team further and

to throughout the benefit well positive from of overall take we Integration best-in-class expect impact on our it leases of portfolio mark-to-market in using strategic Over new is constrained and the and have supply to upside a advantage as underway, environment the our the the plan RPT levels. portfolio time, occupancy platform expect raise we we year. to

the financing additional transaction how and sheet. provide on balance of impacted it will our Glenn positively has color the

and also [indiscernible] in opportunities RPT growth. We Miami. complement contribute long-term existing will One example located that one-of-a-kind created our and our mixed-use a mixed-use be through see to that in value incremental particular redevelopment of redevelopment the pipeline property further portfolio is can Village,

a there's and to unlock to to upside look use we opportunity our Signature asset long-term this, such Series we future portfolio. meaningful value the on as As lot expand an Kimco's believe platform of and

want and in more transaction already loads strategy Ross improvements with did is plan, anticipated our announced our especially high third those our by will transaction which and model since into further in plans been incorporated the lower These both and transaction XXXX. growth we financing I RPT returns. of in the highlight detail. lower-than-acceptable strategic the supported centers, markets quarter first But discuss dispositions to XXXX recycle have to CapEx

are for for we with significant both well believe organic positioned opportunities growth. external targeted We and XXXX

of flow in Our quality shows yet our not growth. pipeline the leases of but portfolio have signed open and strength been that visible cash

our has take ideally suited to that history growth. generate platform advantage dislocations and is Additionally, of shown market

That steady potential operators return. to the is Inflation, emphasis beyond, on all are growth. temperamental. why total course of macroeconomic have and portfolio the overall end, sector that driving pride and year the a despite an the is strategy building both the credit reliable and to the being over ourselves shareholder that is our and and our election card conditions, able underlying one efficient employment, generate Ross? impact laser-focused In we rates, as said, cycle of delinquencies improved remains the and interest environment most on resilient

Ross Cooper

and on all. I'd XXXX like quickly before on some the Conor, reflect morning, sharing perspective good you, to Thank ahead. year

environment significantly in the positive very transaction markets noted, Conor capital XXXX, but in As activity. volatility our was leasing class the asset muted for

successfully to portfolio of acquisition liquidity new and said, the environment joint first interests, the Using Potomac advantageous That and a RPT several was and balance difficult and into of Realty. quarters sluggish at partnership Kimco venture Through able turned X series inconsistent the sheet, acquire was position were opportunity. financing in best. via asset underwriting 'XX, lender signature an Stonebridge Town Center we exciting our

our a were deals In In more sentiment in that fourth and current points start the would XX-year basis to at quarter, the hovering aggressively XXXX. flow timely year-end activity market. X% optimism, further with in of renewed deal in dropping This improve than and began view, the currently price the range. the created market, XXX these before treasury vibrant increase more additional financing a more

venture our portfolio to advantage in in positive able more were challenged environment, December. the take of We joint selling X sites

financing year-end before investments anticipate now pursuing provided mezzanine for a group. We with potentially same partner new also the and structured additional

Turning to XXXX.

coupled with more are that that healthy will success. favorable we in open-air fundamentals We and present backdrop the leverage to can performance a opportunities retail, macroeconomic enhance confident our

that and primarily shopping We on available. centers become sourcing off-market focus core grocery-anchored to will continue

On and investment stabilizing the deals new expect more loans. and interest we lead improvements structured in for the maturing investment opportunities rates should of paydowns opportunity side, real markets equity estate. capital preferred for acquisition The from additional debt financing and financing on of high-quality mezzanine stemming to

to with We expect as investments be these we and unique continue disciplined attributes. maintain to bespoke them approach investments with a such,

and/or a there long-term group as growth previously of do RPT align with that assets select targets. not are indicated, the dispositions, geographic On Kimco's

from successfully are that of have process the the trimming our will properties in we initiated predominantly this of on portfolio, and we confident first the these We execute half year. strategic plan,

blended to bit low million RPT of cap mid-X% a the rate centers extremely properties blended that It's belief successful aim be provide $XXX the in former To RPT million is acquired more context, acquisition at sell worth timeframe. rate which company, a that to the between for will the RPT we to continue noting $XXX and cap cementing for our Kimco. an entire sold cap of we matches being to further that rate

disposition our in have rate already this Indiana, XXXX, Carmel, cap on In range. closed within we RPT first

of on disposition transaction yield structure, an in capital ensure successful also a focusing only the helps structure stack the passive of the and markets. part efforts our Kimco our core to a mezzanine at This a in we for to but team's basis retained of attractive properties earn opportunity an As while not safe financing. form presents a piece

transactions morning. to clear, that XXXX is us a be provided this factored the see likely additional guidance And in this will You similar we've manner. into structure

We progress. prospects our apprised about for the to keeping excited XXXX of are you and look forward

Glenn to for and the off financial full Now year outlook. results

Glenn Cohen

and Ross, occupancy morning. good with highlighted fourth positive activity, leasing quarter results, Thanks, We solid strong finished by growth. same-site and improved XXXX increased very

liquidity ahead maturities our XXXX closing our of position of we addition, transaction. RPT upcoming bolstered the and In the

last year's share. $X.XX million was share. fourth on XXXX financing quarter Now our or of $XXX.X diluted FFO results, for our transaction per quarter for or RPT diluted favorably FFO of and This compares to the some $X.XX per outlook. fourth quarter the the million $XXX.X fourth details

The a high-quality rata of by higher was NOI operating $XX the generated portfolio. primary driver increase pro million of

rata interest pro a our expense Our in which resulting We money short-term market-type million of to from 'XX million, the up the earning income, interest dilution. prefund funds million $X a upcoming invested large $XXX proceeds bond unsecured issuance the maturities. $X was of portion mitigated of

RPT million In expenses fourth for we of incurred addition, merger-related transaction. $X quarter, the during the

was been Our operating redevelopment Same-site portfolio we X.X%. positive continues positive exclude deliver And X.X%. NOI growth have sites, to results. would if our

primary the top of same-site NOI minimum X.XX%. X.X%, our year For was exceeding the growth. same-site Higher range driver of the full the rent XXXX, was positive end NOI of

As basis production, of grew and and leasing future $XX increase strong XXX a the base points rent. spread XX in economic sequentially leased points, occupancy occupancy an annual to million our basis result between of represents

commence of to XX% We during $XX approximately $XX this anticipate million. XXXX approximately to rent providing million

debt debt-to-EBITDA pro Turning with Xx, basis, our sheet. range for the maintaining preferred X.Xx. favorable end quarter of rata net look-through a this fourth stock And metric. We the ended to of balance on the of target JV including consolidated outstanding and

bond interest XXXX. an which of the issued at million XXXX, March we unsecured $XXX quarter, beginning addressed issuance new maturities in This rate fourth X.X%, X, XX, As matures XXXX. of X.X% mentioned million at XXXX repaid with was bond, of $XXX previously, due $XXX million the at our which effective on and X.X% X.XX% comprised a January

position year-end we the year-end, revolving proceeds. very Subsequent monetized strong, million million facility. comprised Our of to liquidity our nearly cash of XX.X and $XXX over remained shares credit $XXX million availability receiving remaining $X in Albertsons, our of of billion full

first reduction. tax to on million $XX in for provision future us will investments a and record retain $XXX the the which million will gain quarter, We enable debt

of last for credit a Kimco our be shareholders tax eligible pro year, to Similar rata the federal income will pay. will

for details transaction. billion. $X.X billion units to issued $X.X the of the common for RPT XXX,XXX the additional value shareholders and RPT shares XX of We OP some an financing aggregate for Now million an

X.XX% Kimco share each shares of depositary stock. preferred RPT's X.XX% class converted representing convertible issued convertible preferred also and X/X,XXXth newly We of a of into shares share

The Kimco is and of class convertible is has XX.X and million X.XX% the traded preference depositary liquidation preferred New and shares. currently publicly into Exchange. share X.XXXX York stock Stock a class convertible on Each

On off private on and amended the debt side, term we accrued assumed including $XXX $XXX.X million RPT RPT's revolver, million and outstanding repaid placement of $XXX of notes, RPT's loans. interest, outstanding paid million

a has and with repayment assumed and million loan in tranches average with X a and and the maturing placement funded X.XX%. XXXX. a revolver million in of $XXX been $XXX was swapped sheet of rate We cash tranches million $XXX swapped $XXX rate of in comprised The million of private X.XX%. blended XXXX, of XXXX a million final fixed amended from maturity Each $XXX on in rate The to balance loans with term the a the new weighted XXXX. term the of are fixed loan term to notes $XX million

$XXX to is Overall, us our year-end added million balance the cash to sheet total using million, hand. debt of $XXX related on RPT with

our outlook. Now growth to we Conor newly unlocking RPT the the XXXX enthusiastic potential portfolio remain earlier, the about assets. of factors of and confident macro are added the operating Notwithstanding our mentioned of about that some prospects

share. Our initial will million RPT the $X.XX share be FFO or expect to costs $XX XXXX per merger-related any in per which $X.XX we $X.XX range before guidance is diluted range

basis NOI credit on assets. in RPT XXX based level of X.X% experience points to in growth range inclusive points. a to is assumptions: a XXXX. range the assumption loss the to X.X%, credit is following basis guidance same-property NOI Our of loss XX same-site positive This similar of guidance our the is Included

$X million This termination $X in income $X to higher Lease million. million as $XX we XXXX. $X is and between between compared cash had $X and compared significantly income balances XXXX, in Interest during to million 'XX. million as million

million of million, including half ranging Acquisitions, select from year, second RPT million structured to the Dispositions toward first of half assets. $XXX primarily of the ranging $XXX comprised to $XXX the million investments the toward from $XXX year. weighted weighted

financing $XXX expense comprised preferred expense to of $XXX million ranging stock Annual million, from Corporate interest million. from $XXX consolidated million $XXX to G&A and ranging costs dividends.

range expected to from G&A RPT from The $XX cost is the transaction million. inclusive synergies ranging savings $XX the of million

GAAP debt. guidance below value Our also RPT-related from impact comprised and straight-line market fair rent accounting range amortization, and assumes income adjustments to noncash of no market above rents material

range stock repayment callable associated of preferred equity. guidance no prepayment of or planned issuance charges with the assumes common Lastly, and early charges redemption debt outstanding obligations no additional or

brought the together. I to our drove year. look We successful the all want effort our thank RPT a transaction end whose closing a to forward to XXXX successful and results associates tireless strong to

now that, we take to are with your And questions. ready

Operator

with Goldsmith [Operator first Instructions] The Michael comes from question UBS.

Michael Goldsmith

your the entirety RPT? And you're the see the that is market cap you One, dispositions. then are that of and rates noncore guidance, in two, the indicative acquisitions from the of does properties expected have dispositions that that the the you where represent of selling On acquisitions, do today?

Unknown Executive

where to have first the vast Happy the half continue prune to we we the always we see there's majority Kimco any And that Like that. as of that monitor planned. assets to look say, additional we've the future in how represent, where with would in do, of The asset. risk. see there's year I the Sure. the we'll assets, perform, outlined take they dispositions dispositions would we may growth,

like needs complete that bulk of taken front. we've we on care the immediate feel But the once of these, we'll really

As to between our as sort I as core say blend the is rates, cap program. relates that cap a acquisitions of rates would on it acquisition true really grocery well structured

X together, to as grow very we'll put accretion So any and dilution enhance continue turns and of that forward. really be we're able that FFO when we those sort confident our you go to minimize achieve

Operator

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

Jeffrey Spector

my don't some of you would know building X.X% outlook? a if if to I first can there's to question same-store NOI questions, provide the that, X.X% limit but down know don't can be, of I break the please? you blocks

Unknown Executive

And well. there increases is like amount pretty Again, mentioned, should into portion similar, good primary that's a small really for XXXX. of anything as driven credit Sure. have for else, driver. And then that's in minimum the built loss. that's is in rents, it as I it be lease-up to again, the you'll Credit by loss there part a most then some

are really those the primary So drivers.

Operator

next Instructions] Wells comes Dori [Operator The from question with Kesten Fargo.

Dori Kesten

detailed the appreciate We guidance.

guide Excluding merger either expectations company costs, remind around just Can RPT? the for it your looks long-term for with what like or the growth midpoint of X% are us your now NOI implies FFO you growth. FFO

Conor Flynn

us the of question. this growth X% strength of Yes, that the to the of and components below impacting is items platform portfolio, for few growth year happy the look FFO anticipating strength a headwind That the do we're I But take that appreciate the at longer-term FFO year. X%. Clearly, the the continues And the the to one, rate that's between this of the you for shine. ahead. targeted have company when year, onetime for we growth overall, to

think this dealing continue year I momentum expense, Obviously, mean, obviously, growth should believe and growth all continue maturities that last with headwinds in for continues, we've environment. we rate increased this for out but from that, to everyone's and prefunded should to rate the above the year taken if year, and this accelerate accelerate. the interest is that

Unknown Executive

amortization Conor $X the still those million with That's difference just bit headwinds was related market I the value about Weingarten a little dealing fair year. mentioning. this bonds. just to bit of of can another a for terms some We're in add that little

little that's over $X.XX. a So

look that's that's what's the mentioned, again, last Again, X we of million So I income, us. thing $X if impacting modest it's as pretty the certainly you at built terms versus the had guidance termination lease that year. into in

interest pretty And come income, amount again, significant from were a also of going to benefiting that's we off.

put grow But to of able again, portfolio somewhere have expect shape, around you you we is be here. $X.XX and together, if or in So $X.XX headwind. to all great the

Operator

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

Floris Gerbrand van Dijkum

So obviously, incredibly leasing you demand retailer here. robust --

XX something about or the like best environment You talk in years that.

significant You've It's, of got that S&O in $XX million. neighborhood. call very it, pipeline, this NOI X%

that What 'XX implies income timing? us to that And Your when for going X% through and if or only Maybe is you forward? growth. guidance going impact to the going walk come year online? is that can going back is be this is to weighted

Unknown Executive

great Yes, we Thanks. that on all obviously this the mentioned, than million, it's ABR. $XX Floris. that It's year. representing about of to as anticipate Yes, less total about million Glenn question, $XX $XX commencing million XX% pipeline,

back performance, get going. and those job meaning as the And get team, did flow is the exceeding stores quickly those possible the push envelope and an targets, we'll as weighted. year's it last to half based So open on and continue cash incredible

you And as So benefit the back see will will in then as it come you you alluded that see well. half. 'XX to, towards

Operator

from comes The Piper Sandler. with Goldfarb next Alexander question

Alexander Goldfarb

In guidance, rates So a the acquisitions cap sort the question Xs, the on dispo mid in mid Xs. in have rates. cap of you

One the quite peers of selling been in your has selling, in active has mid-Xs. been

the cap should the we about? we rates talking how So that hear different different REITs interpret

fairly cap specific. centers some shopping rate should what And there's sort debt something the rates is to although similar, understand the presumably, But asset where trading the cap or quality different maybe we're we are how "real" of all seeing today? interpret

Unknown Executive

take to that. sure. Yes, Happy

CapEx higher as this are in growth, very of the when geographically it at in Midwest. you cap year portfolio lower the More the rate, future. our think assets about, boxy, in guidance potentially primarily a look disposition select for talked I we've on is

board. at type, format whether cap rates trading are geography, or necessarily clearly selective it's indicative a to the where there's look think specifics, component. when don't I not product for a grocery across of It's So you the

for the underwriting that and all the from perspective, into unique the And So it sort is this plan one-off a with transaction. of was us. year baked frankly, RPT

on is this and much So expectation target for very us.

Operator

McGinniss The comes next from question with Scotiabank. Greg

Greg McGinniss

up? some in that are not demand I'm in could level pretty sequential XXXX wider terms of some at occupancy just continues maybe into and tick or of us lease as details substantial that expect you continue that the whether the if provide result that improvement, looking space, taking spreads will to you to of types lease tenants

Unknown Executive

see grocery signed quarter. Thanks Yes. to We mainstream lease start are other Grocers We've Those grocers of the first. Natural active side. broad a at this with the continued for categories, question. on set really across grocers activity specialty Several a last are as well. pushing extremely

Formats, vary.

starting to to see to supply-constrained lot penetrate square operate are in willing market. with size expand retailers which a the of contract they of and their flexibility You footage the

when so let's record look at forward-looking supply with And supply-demand you forecasts, continues imbalance. start That the development. at low

nothing online. have you'll So new coming

the improvements And backfill. You'll Conor that retailer seeing on basically to well by comments, service some their you XX space Bath have to last the utilizing customer to last have they're side. and side efficiencies, as as being was robust demand quite the form the earlier XX gains mile Then absorption as brick-and-mortar occupied. mentioned his the distribution. appreciating second-generation on our this in with margin of both Bed and year the

brick-and-mortar great as demand So through. obviously you utility you have that to the well. then consumer push side that format the sees side a have in And continuing

continuing all see mix to those the you work you in forecast, 'XX that look when demand when our that So favor. factors you're together, at

we we can through been coming hard move and encouraged push to pipeline this continue year. we've have, the that we'll as as as So we by currently

Operator

Mailman comes from with next question Citi. The Craig

Craig Mailman

for the I so Is that the timing in at $X.XX the the you hit from to there? to on as happening at But potential open we what the looking for just on to of recycling Do that top get Just can number? time appreciate $X.XX calling the kind just of onetimers. it range, you have out early end and gets you leasing capital the look it Glenn, guidance, year not maybe in actually dispos? upside

some I know macro get Just of year uncertainty there. in sense it's a the to out -- early and trying there's

where just numbers So would some see just there trying conservatism the timing in is of? care to potential [indiscernible] that take kind or of

Glenn Cohen

get things basis again, of Sure, range, points. that would Craig. I a the range, can loss that XX upper the have XXX to you we to credit say, end

that, $XX credit point is definitely basis that's in to if million. XXX million a XX So loss That and help. between comes better $XX range than

acquisitions So as Clearly, into again, opportunity improved credit the plays loss an well. to help get is and the there. dispositions of timing this

capital to As of we back-end are more front where towards that mentioned, the the upper loaded end further the improve [Audio of loaded more is the Gap] dispositions redeployment guidance.

Unknown Executive

in flowing we leases other year also that getting $XX as is this execution high anticipate. achieve The aspect, range. that see the that Craig, those rents But to will start to end will Jamieson that we there's start said, if $XX Dave better about some timing be of sooner, cash us could and the guidance million million of coming could also we have help of the

Operator

question next Haendel St. from comes The

Juste with Mizuho.

Haendel St. Juste

lease rents were were ask a while steady couple to past a question on new the on rents and down new wanted here. lease years, last trajectory lease of up. upward versus spread quarter, this spreads has quarter TIs new prior but the certainly been Leasing I

out do or be or read a peaking over you broader can here be anything near if lease curious think spreads if So could where and unique worth at that the there's I'm new maybe calling close that's there's to rents perhaps term?

Unknown Executive

that from just mentioned, given spreads I it trajectory the of what a are mean you the year-over-year. qualifies of so where population times. can quarter-over-quarter, overall quarter-over-quarter see look I volatile at But Yes. spreads, at be and really comp when ABR indicative us we was moving upwards as quarter it to continue growth, in as that

TIs categories deal of look encouraged, dependent TI so the that we're $XX.XX direction, in cut. and at is we of the obviously, allocation, all-in at terms I those the type And X point. between structure we're you at think landlord by on So this The collectively. cost, distribution

were look right as-is you we're tenants. And those at more the quarter deals of that there and were trailing in TI those to couple a structure, line higher combine were X, this allowances so there. you given when So

posted. If you $XX versus strip that we those out, that you're around $XX

you're pretty do we the I foot options. line, rent in better at And past. forward last square in the as above per with of much than have So we've no anchor that XX They are look into seen we 'XX, what think, boxes, slightly in naked We've adjustment double-digit still a have rents high we highest X quarter, $XX. were executed do that. those as-is on the and those that, had and mark-to-market

So opportunity you're to in the seeing grow for as room well. coming year

Operator

next Samir Evercore. comes from Khanal with The question

Samir Khanal

I clearly, in as strong operationally. pickup continues guess what's guess, had on 'XX? Conor, move upside anchor side. space the think the XQ to RPT you occupancy I shop a maybe or shop potential very And both occupancy about and we even the from up,

Conor Flynn

to happy Yes, Thanks, Samir. that. take

we're So should real the upside look portfolio. And up points we're we small Weingarten that to momentum the ground the momentum portfolio. we that They're today. next the the that very at the we and Kimco the you years. We've the with that the X to X experience shop the on portfolio small feel Kimco in have side, below continuing is the relatively we're over shop, about team portfolio, there I the RPT bring very to and on experiencing confident the think, same when leasing in basis done quickly the confident XX

in spread market leasing call. on getting and that significant mark-to-market some as RPT has a Village mentioned future one redevelopment in plays. excited upside well as earlier is there I The that is upside We're very some deals potential number now roll of the right to digging density and opportunities. obviously

But it's not just that site.

we have areas in grocery be trade And take as we and Kimco of RPT the we're great -- dispositions Kimco's think portfolio, with We we Boston showcase and the you out those time, percentage increases have to the combined increases. the once well execute number both percentage on. can tape of across a able the Florida mixed-use as going if dispositions that leasing significant come momentum other that assets that at to the

So hopefully, this X strategic accomplishments very on, year. early

we're about that So excited, opportunity. obviously,

Unknown Executive

base spread basis million I'd points to annualized is also of XXX their is economic just that which add portfolio, lease their relative about $XX currently rent.

So square online store some that the year our have coming as is a to then foot per bit lower. this And we'll complement what pipeline. we of little relative of in the get to currently ours ABR benefit well

based room to So their encouraged to and by their of they the there QX run posted had. on there's the I think in filings, real spreads And that benefits be we're the estate. direction

Operator

The with question James. from comes next Raymond Milligan R.J.

R.J. Milligan

Two-part and I'll try on question here it all get in. CapEx, and

the I'm what than anyone for did foot much Bath Spreads that resolved think, out to expected, I you expectations? First, & Beyond average shake XX spaces, and leases. better, how but curious Bed package the TI was per relative

much that an of second XXXX is RPT? & And increase Bed And part, Beyond? spend broadly, more Is you're think just expecting how in then I that that? CapEx in and I'm curious Bath driving what's

Unknown Executive

sure. Yes,

Bath, been look could be of different consistent. foot of slightly it dependent but boxes do the backfills a you or $XX, future these but have or pretty been at around higher, slip Bed on fairly the a the if operator, we've On Most been $XX single-tenant it's on consistent type some the lower in backfills, structure.

we the Yes, on one for the largest have 'XX, our largest load sector we've CapEx of the pipelines had. obviously, that and of in one

terms driven make. cost It's there. deal capital our any in highest of return and investment So primarily can we it's on execution by really

economic, there points great basis be of lease there be in mentioned, So use contribution we as it's funds. And well. I their [indiscernible] obviously, see XXX RPT will a as pipeline, just at a will

Operator

Burrows The question Caitlin from next with comes Goldman Sachs.

Caitlin Burrows

with of credit Maybe top XX Kimco, kind each of the on the a rating and watchlist AMC range. tenants CCC are in side,

through go wondering kind to quality Or your companies? factored don't want performing could names, broadly, credit your loss in and just into how was how tenants, that they're the if you guidance? X I for about expectation you if lower credit So outlook the specific talk of in portfolio the

Unknown Executive

Sure. Yes. We can start with Rite Aid.

and year, this coming XX that on LOIs the do we're leasing We another and with we very encouraging At we double have XX. had of mark-to-markets activity the the year, last back quarter. anticipate end locations So seeing currently in those X locations. we digits. are ended The

inventory rents Second-generation what again, So see retailers is to opportunity push the it. really today, is and that's where

that's of comments, into earlier try themselves -- you're to see to on And so format their these my to retailers starting some to work boxes. flex

to another As topic has of that the it Jo-Ann's, day. been relates

We a trying obviously revenues I looking a they're were Top seeing run. just a currently, have business to bit operating reset at there. They XX their stabilize significantly, growing their of rightsizing line COVID back fairly they're locations. business. and and great pre-COVID think And to had

watching. something So well. again, operators with rollover that close stay as we we're Limited those it's But 'XX. closely when in

relates to it that it hasn't the broader much. all expanded pipeline, As really

think the has retailers health general of I fairly significant. been

in of active are recapture equation in out to space. side to front any opportunities get the We of pre-leasing the

in looking Because some on really to high-quality the it quality grab the the do tenancy. other side the to pushing of cases, investment-grade spectrum, are we're of tenants upgrade And you that have space.

So more becoming they're regard. also aggressive that in

good. So right feel we now, pretty

Operator

The Wes Baird. next comes with from Golladay question

Wesley Golladay

those I you starting plans? about RPT big plans I there. a there, do to Village. any changing lot already work Brickell of Mary know just maybe some talk want Are has to they're of

Unknown Executive

month focus there's question. a a Brickell. on great Appreciate the We're been of Mary first of part Yes, I ownership. over year it. lot just in know the of

the range. we've rents upside potential and the deep And we're XXs. you're in upgrading rents getting XXs the a short-term is tenancy. prior XXX in investigation the got existing real of high close, of focus the of tremendous both So the right and or now, long-term there is of And some There to the planning. XXX-plus quality into the and

just adjustment you're So seeing huge the alone. mark-to-market on retail side a

of down the the it's realize forward-looking early been investigation in do. we're we past donut, that the $XX As the in still [indiscernible] basis. with longer-term stages we to the of there, an But you've hole if you look of want right plans, on million what at annualized Brickell site at walking heart

long term there about tremendous at we're very it. So site, excited is that and opportunity

Operator

comes question Paulina from Street. Rojas next The with Green

Paulina Rojas Schmidt

to start this I of have be to is supply is I'm continues supply rents development much you? it but background demand if key risk new of up driver My from interesting this rise. lack the new to you the sure go for looked the rent frame positive pencil for to if think a an And have at strong, question way coming. in On perspective, should would to the would continue how sector. of not

Unknown Executive

to happy Yes, take I'm that.

you develop I square and that at costs We significant. think we've and you're challenges what why land fundamentals the based foot. business are it $XXX new development bullish, a estimate, north today, values, the we're well because when seen center our of so look in a upon of new shopping of penciling to is on

cases, $XXX In foot. to many $XXX square

replacement development. require, you when new really yields foot we developer cases, the your a $XX So and today. think average about to we $XX the shopping rents we that about you on have, cost be own where be that that any the reasonably in When cost ABRs of half a of the pencil many centers could to think would need is to replacement

be today to opportunity to envision in hard continue you place to near that and new any meaningful we in with push rents comfortable makes the that it's from and that. our going to term, that it very the there's have So perspective, development

Operator

comes The next with Mike Mueller question from JPMorgan.

Michael Mueller

are and activating close And overall to in you accelerate cause that What are number spend redevelopment could XXXX? any to materially in that for expecting 'XX? projects major you 'XX

Unknown Executive

We for great now. return -- because digits and in It's to where years, of look it's place the we $XXX between sometimes really million redevelopments. million. range pretty high that's the we any can up continue But and few that's right been those redevelopment double low Michael, area similar digits, an running last wind to for the it's somewhere $XXX on single for really spend is us.

Conor Flynn

returns add retail Michael, redevelopments where that that's the because we've and prioritizing are much stronger, we there clearly, upside the been returns portfolio. in I significant the will see and

if upside. going is forward, projects mine going and the activate portfolio for still continue So priority us for new to we're to a that

Operator

The with next question comes Gorman from BTIG. Michael

Michael Gorman

wanted of Just impact when we think X.X% the to the does you're as portfolio break about having out between to wanted we think of potential circle clarify, RPT I that's growth is XXXX? what just that? legacy RPT, within to and kind And of that about Kimco the the RPT And inclusive X.X% on to back the how portfolio.

Unknown Executive

is minor impact. portfolio the assets. has Remember, portfolio, XX% all the it mean the I of Yes. of overall part Kimco a the

is from bulk have doesn't Kimco [indiscernible] it really pipeline impact. So to legacy growth today. Again, a basis major about mentioned, Really, Dave some have coming the the it's of it. million. assets the It points, the impact as does is XXX $XX

So come that million during online as expecting there to $XX that is the of some well. we're year

Operator

Tsai Linda Jefferies. from comes with question next The

Linda Yu Tsai

and leased to in-line? Beyond remaining on Bed Bath year-end boxes occupancy then? between up would expect thoughts & ends And by up the where anchor X you be Any

Unknown Executive

the obviously X Yes. that want the to now, go-forward XX. result note a activity 'XX boxes to goal there. encouraged I a Bath we're boxes so have RPT, we're we is that the feel in resolve based again, encouraged I inheriting on additional by on by we're mean of also that. demand seeing, we'll that's our Bed And

I'm I great side challenged always XX.X to and another Kimco. And As small year. do and put the in exceeding it want push midst all merging relates mean, this to XX.X like push shop at a envelope higher on was into the higher. company I milestone the to the into the to of was just the occupancy, context, mark end of getting

broader X leasing. our that on I So thank of over team enough they've in square done the million execution can't executing feet

on to continue XX%. as we'll So side. we hard We're as push at can the anchor

Our all-time high XX.X%. was

bringing on RPT, there, too, our in to have there encouraging. relative occupancy additional And is so upside from where room mentioned, then is on we a And which Conor run is. theirs as to basis

we So for we'll feel in encouraged. have 'XX, work our but us cut out

Conor Flynn

of tenants QX holiday after holidays. obviously typically from remember, the hangover some that the has if the Linda, you close

impact and the QX. that able year year typically should demand, grow we occupancy holiday year confident So momentum obviously, the the be resetting And the the occupancy then through with with of to throughout growing the how RPT commences. the after the the occupancy diversity is and we're experiencing, we're

Unknown Executive

note retention now, it's the now first but new right preserving also XX% And the getting lease side, not tracking It's And and year, of you around of the look right terms resolved. we're occupancy. important your growing then the Yes. our at only in when of half X just that. just rollover on last side, which so is

feel we by encouraged pretty the momentum So well. as

Operator

comes The [Operator Anthony next from Instructions] Powell question Barclays. with

Anthony Powell

rent the quarter. the to rent rent in in Just this bumps contractual a future? effort think in And bump you to growth for fourth have Where start you your the do question on were your -- you signed they? higher where on results increase think will leases minimum and do when

Unknown Executive

Yes.

to the obviously shop side. small in push on anchor Our -- continue we bumps the

other be I of think push areas, some X% you're in bit seeing, annualized seeing little market. parts as or a different we're the opportunities can at In in north the the different we're supply-demand different. to bidders range X% much markets might the of of you good an the response now basis. imbalance can grow multiple And But a because we as challenged on in and table. again, right

Conor Flynn

say I just improve continues side the would to small shop quarter-over-quarter.

say, but again, we to that and as there's significant hard. side. that if I still improve there's think is side as still, not would shop small friction The But we've been some some I trying tracking can. diligently that improvement aware there, anchor we're the and modest pushing

Operator

Morgan question Stanley. next comes with Kamdem Ronald from The

Ronald Kamdem

me. Just X ones quick for

one? more that be get sort is we -- number expect through as on The And the guidance, number RPT, be of is that first is -- expecting everything we wanted you dispositions you two, this first is sell? batch? just that to should should all that Or

Unknown Executive

majority some The have it's meaningful and in the parcels items, way primarily cleanup dispositions. smaller vast RPT is Yes. always land of RPT. a but guidance We

we half asset As believe successfully reaches life I at in do dispositions the once look Kimco cycle. then complete mentioned of we on go-forward first the any before, plan. that its we've end year, just And the a we'll basis, that we these executed the of on pruning as

Operator

We Van Floris from have follow-up Dijkum with Compass Point. a

Floris Gerbrand van Dijkum

in Just opportunities Conor, also presents stand-alone follow-up opportunity talked biggest in Maybe on RPT assets? of you shop flavor your give if you've there's in the occupancy, quick this, and you a your about upside one clearly, assets this talked question. could And portfolio, particular. of why is Shop retail higher your here. about mixed-use shop. for bit And your versus is an your occupancy a your little mixed-use

Conor Flynn

Sure. Foris. Happy to,

I well like small full, of shop significant in think it's that's upside side. I of we're see the demand now look when like, you if essence, diversity that's where lot of in right sort because small a you upside, we on the at occupancy the shop shops. as reaching the occupancy where anchor look at really that relatively experiencing small

are are service restaurants small entertainment about up If the shops, you seeing really think percentages industry sizable. about XX%. still of They're back. X/X. Personal pretty come about services to care and our We're

Other picked X%. well services close at has outside really of to up personal And then care, that's XX%. as another medical

and you space. to platform, the growth high-quality can our numbers look ability of categories So able shop to of when because pretty retail the they're give potential to I that because components diverse in names right get hundreds it's the the really find small their you come what's those on doing at retailers like number think And each with driving side, it Kimco actually challenged of out hit stores. have occupancy a now, of are and we're to

have share these platform get where openings. the that's small a more so new growth I And to on real we think opportunity with shop market

and a the grocery-anchor higher portfolio the than the there the portfolio, spread to that not sizable there's between X spread significantly one say the On really other. between mixed-use is

clearly, and that the significant apartment we're now, but getting are are of most higher, those it high-growth of mixed Right or areas, demand. the on retail the rents markets base portfolio use with mixed-use have high-dense towers

we Hopefully, helps. been significantly portfolio. rents And those and that grocery-anchored are higher push have rents than the so able to

Operator

from comes Tayo Deutsche question Bank. Okusanya Next with

Unknown Analyst

Mary on for Brickell. Thanks comments your earlier

portfolio, guys about kind of And of just up general around of how redevelopment. lot kind capital. are you're your your use in business. you seem be thinking kind of I'm that How that curious about within peers ramping as thinking potential a of Just curious to A

Unknown Executive

Yes.

As right the retail more on is we now which redevelopment side mentioned driven. focus and earlier, is big leasing our

high-quality You're trap build reposition and mouse better of with looking tenants to center. the a to work parts

those. with have we'll we those broadly to and of fairly the at More the about as all and our yields So look returns are accretive. the lower-yielding that multifamily opportunities pursue that and very continue speaking, investments are strategic you when strategy the we're entitlements, selective activating on

we're coming side. be is that the of lot a as to demand on our supply watching there constantly capital In case, the multifamily markets, will the known new supply be

So and of that. best There's opportunities we're what with assessing always well. want at investment looking capital Ross we cautious and now to is. very But he's great our the as use be strategic right about what

utilize most how we So make any really we driving to returns. sure plan accretive the and our holistic at given capital look we're the year in

Operator

The next question comes with from Feldman Wells Jamie Fargo.

Unknown Analyst

structured some I acquisition finance color and or -- more the get structured guidance. was hoping on investments investment to

you're you a what's Or in Just the market anything what maybe see that the given of of seeing banks? now, is couple loosening you up didn't on ago, about today? more talk going with some can months

gives Maybe you've gives And could of the more $XXX You that confidence do half, confidence bag just your to numbers? million, on? higher first color kind it think on and year-end? even lower -- what in or around is then on you're $XXX something what by be working got have kind million And of those you you numbers? that's you

Unknown Executive

Sure. Yes.

speaking come the the anecdotally, introduced volatility seeing have There have has a assets with been activity. uptick more to each of that marketplace an as As bit. little rate the definitely down more there's mentioned, it And been I brokers, We're market. in they're optimism day. seeing

opinions value. a of broker lot doing more They're ELVs,

are it's are are There tend that perspective, the the out have groups already. that interesting. that all-cash a indicative So to viable there what are market contemplating, buyers. our larger fewer haven't assets lot several seen assets market bringing that that they of there to we've that's are if on From

about on looking lot is bidding we're And at a is strategic there investments, is time or any we centers. where advantage. to grocery-anchored that think try of neighborhood our acquisitions So shopping capital making

that buyers are for is that but fewer more asset it's the all-cash capable summer a Stonebridge taking last that excited long-term larger it bought about buyer. a makes team redevelopment opportunity, that an difficult we down are extremely larger like deal size There of the as

years. we're of similar that we've looking what couple of to in a on So playbook last that's It's a taken do. lot the

to investments, relates it conversations. in structured we the As have an increase seen

more behind that that We have are hopefully, currently couple of in are the deals a it. a pipeline, few

guidance that to out, it's confident job very that. we our now we're on execute So the put and in

Operator

a Goldfarb from have Sandler. Alexander from Piper follow-up We

Alexander Goldfarb

are Just to clearly trying call the on lot Conor, the guidance and understand big around questions picture, a of growth.

think getting those where you for relative too which trying so to for is don't year the we year, on company about As growth, this I'm 'XX function leverage is of more company as re-leasing of growth? worry But going? certainly guys we who think slower just guidance, bullish year sort impacted asking not more the this to I'm optimistic and about to a that are Or a balance subpar sort don't I earnings bit it this lot RPT et this is the really and And cetera. of, rates, will spreads interest takes with to lower the a in take in and want puts fact, us of in that, the your by? the of manifest benefits are a are is of therefore, call potential year that is retail about growth last one-timers, and lot them but longer year, being

Conor Flynn

Sure.

year. We forward back-half forward. this that's going not going a the specifically, some facing the to headwinds do not of items outline repeat ABR we repeat So year that's sign about online if of did the you think not year, Glenn we're and but weighted. this just outlined Weingarten coming bond, that will that onetime pipeline, after have initial open. will snow try the of lot or amortization this

the 'XX there. There's the be tenants unlocked. that platform going I has growth forward a of portfolio in embedded So the from the of, getting open And operating think, the that significant fuel growth forward. benefit will and lot for those again, yet and sort is to of obviously, going

sector. estate significant interest everyone have been headwinds Obviously, in real any expense for commercial

different a nice in they're long-term to forward? will lot business match that, when debt to know do might look I maturities people cut, of running the change business with out. think the start but pushing on that. long-term trying a we're running we've the What and that of terms and not to opinions banking have we're on going done Fed a I like going on fund job when

we're think growth of and I year is see well to we an growth should blocks forward. if this we continue of forward. to to see from acceleration execute, Obviously, So improve the continue year, that going positioned last we an acceleration believe going building

Operator

Tsai follow-up Linda We have a Jefferies. with from

Linda Yu Tsai

dividend? XQ? for that shares taxes special rationale post last bit And behind What than a rather also was Albertson then in a provision the selling rationale the of

Unknown Executive

our it's better monetize can and of overall those our of I feel been part is. Sure. current capital Albertsons. It's our dividend plan, we capital what always proceeds obviously strategy we to than that and part redeploy plan mean

capital. We of So part of can for million, towards think a combination And good again that's reduction. rather us, we of use additional make investment additional it. really, the investment and retain $XXX and we'd debt

Operator

follow-up Caitlin Goldman a from have we And Sachs. from Burrows

Caitlin Burrows

but other Again, I feel way like occupancy has been asked about number a of to times, X just ask.

you guys question, show bringing when an occupancy this earlier economic could your and post-holiday that in XX.X%. you about talking then for year, pointed RPT there were at portfolio in be out fallout was there's also the You trend for portfolio. year-end And occupancy

if Kimco, been that showed you So have that if that just would what knew I makes the you that had wondering included, that properties been was sense? XX.X RPT

Unknown Executive

points. RPT include about RPT, have occupancy you you overall been by RPT. When negative XX points of on when the starting year lower the XX basis total, would it Yes, in impact include the basis is

Conor Flynn

know, back occupancy some Caitlin, then to you QX you get when start is typically throughout build back holiday the the you get and spaces as hangover, you year.

can the good continuing continue. record expectations anticipate because momentum that to why that, year. we're of build like the So Clearly, quarter obviously, for for we'll hopefully us. about the if And ahead, the exceed we're and cautiously that's stack quarter a off we're seasonality we and meet to quarter year to optimistic QX start to was be shape in top on we from good here a on very

Operator

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

David Bujnicki

today. call that to We much. the of hope on enjoy the rest your you like Thanks participated day. everybody just thank so We'd

Operator

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

disconnect. now may You

Kimco Realty (KIM) 8 Feb 242023 Q4 Earnings call transcript