KIMCOS 2020 VISION INVESTOR Presentation First Quarter 2017 SAFE - - PowerPoint PPT Presentation

INVESTOR Presentation First Quarter 2017

KIMCO’S 2020 VISION

The statements in this presentation, including targets and assumptions, state the Company’s and management’s hopes, intentions, beliefs, expectations or projections of the future and are forward-looking statements. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from current expectations include the key assumptions contained within this presentation, general economic conditions, local real estate conditions, increases in interest rates, foreign currency exchange rates, increases in operating costs and real estate taxes. Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the Company’s SEC filings, including but not limited to the Company’s Annual Report on Form 10-K. Copies of each filing may be obtained from http://investors.kimcorealty.com/ or the SEC.

SAFE HARBOR

Suburban Square, Philadelphia, PA Cover: Corsica Square, Miami, FL

3

KIMCO’S 2020 VISION

High-quality assets, tightly clustered in major metro markets that provide multiple growth levers Increase net asset value (NAV) through redevelopment, select ground-up development and active investment management Maintain a strong balance sheet and financial flexibility, on a path to A-/ A3 credit rating

PORTFOLIO QUALITY NAV CREATION FINANCIAL STRENGTH

3

10.7% 9.7% $0.64 $0.72 $0.76 $0.84 $0.90 $0.96 $1.02

1958 – Founded by Milton Cooper & Marty Kimmel 1991 – IPO that launched the “Modern REIT Era” 2006 – Named to the S&P 500 Index

• 517 U.S. properties totaling 84M square feet in 34 states

and Puerto Rico

• Total Enterprise Value – $15.5 billion

KIMCO’S HISTORY

TSR Since IPO* Dividend Growth

KIM DJIA S&P 500

12.0% 11/29/91 – 3/31/17

2010 2011 2012 2013 2014 2015 2016

Information as of 3/31/2017

4

2017

$1.08*

$1.08**

Westlake Shopping Center, Daly City, CA

PERCEPTION VS. REALITY: CASE FOR KIMCO

PERCEPTION VS. REALITY: CASE FOR KIMCO

6

Mall Closures Ripple Through Small Town America

“ ”

Retail Store Closings on Track to Beat Out Recession Levels

“ ”

As Sears falters, shadow darkens

• ver American malls”

“

Is American Retail

• n a Historic

Tipping Point?

“ ”

Perception

The Limited to Close All 250 Stores

In letter to employees, CFO Larry Fultz cites heavy debt load and tough retail environment

A giant wave of store closures is wreaking havoc on shopping malls Apparel Retailer Wet Seal to Close All Stores

Teen retailer unable to find fresh capital or a buyer

The retail Apocalypse has officially descended

• n America

American retail as we know it is dying a slow and painful death

“ ”

Reality: The Limited Impact of 2017 Store Closures on Kimco

7

”

1,699

Limited Impact

• n KIMCO:

20

0.9% Of GLA 0.4% Of ABR*

68 138 77 3 8 6 175 220 389

PERCEPTION VS. REALITY: CASE FOR KIMCO

Total Store Closures Limited Impact on KIMCO:

*ABR is defined as Annual Base Rent **Stage Stores has closed a deal to buy approximately 50 Gordmans leases

1 2 126 400 106**

And more…

Reality: Many Retailers are Growing Their Store Count

8

PERCEPTION VS. REALITY: CASE FOR KIMCO

Source: CoStar, Cushman & Wakefield and Peer Reporting

Fitness Traffic-Drivers Grocers Restaurants Off-Price

Reality: Geographically Diverse and Highly Concentrated in Major Metro Markets

9

* Rankings for Kimco’s top 22 major metropolitan markets by percentage of ABR as

• f 3/31/2017 are denoted on map.

Seattle Portland San Francisco Sacramento San Jose Los Angeles Orange County San Diego Phoenix Denver Minneapolis/St. Paul

• St. Louis

Chicago Dallas Austin Pittsburgh Houston Tampa Atlanta Miami Fort Lauderdale West Palm Beach Orlando Charlotte Boston New York Philadelphia Baltimore Washington D.C. Raleigh-Durham 1 3 5 13 15 20 2 4 11 12 22 14 16 17 19 21 6 8 7 10 9

80% of Annual Base Rent comes from our Core Markets*

PERCEPTION VS. REALITY: CASE FOR KIMCO

18 Major Markets 11-22 17% 63% Major Markets 1-10

ABR Contribution

3.5% 2.5% 2.1% 2.0% 1.8% 1.7% 1.6% 1.4% 1.3% 1.2% 1.1%

As of 3/31/2017

Reality: Tenant Diversity Only 15 tenants with an ABR exposure greater than 1.0%

10

PERCEPTION VS. REALITY: CASE FOR KIMCO

As of 3/31/2017 *excluding options

Reality: Tenant Diversity

11

PERCEPTION VS. REALITY: CASE FOR KIMCO

8,700 4,000

leases tenants SCALE Average lease term*:

10 yrs

anchors

5 yrs

small shop

• f ABR from

the is attributed to tenants with investment grade credit ratings QUALITY

top 50 tenants

~55%

R

STABILITY Fixed, contractual rents with bumps SECURITY

Reality: Necessity Based Goods and Services

12

14% Grocery/ Warehouse Clubs 13% Restaurants 9% Service 9% Off-Price 5% Other (i.e. wireless, dollar store) 3% Health Clubs/ Fitness 2% Medical

Internet Resistant 55%

% of ABR

Omni-Channel Players 40%

Internet Vulnerable 5%

9% Home Improvement/ Home Goods 6% Sporting Goods/ Hobbies 6% Other (i.e. pet, party, accesories) 5% Pharmacy/ Personal Care 5% Apparel 3% Banking/ Finance 3% Mass Merchandiser 2% Off-Price Dept. Store 1% Department Stores 2% Electronics 2% Office Supply Stores 1% Books

% of ABR % of ABR

72% of ABR

from Grocery Anchored Centers

As of 3/31/2017

PERCEPTION VS. REALITY: CASE FOR KIMCO

~60% of

non-anchor ABR from Service based tenants

Reality: Omni-channel Movement

13

“Click-and-Collect” – Omni-channel at its finest From E-Commerce to Omnichannel

“Over 40 percent of all of our online orders leverage our physical stores.” - Kevin Hofmann, president of online at Home Depot* Kohl’s CEO Kevin Mansell said that more than 20% of the time, it’s "buy online, pick up in store" shoppers make additional purchases.* “As Walmart pushes its e-commerce initiatives it will face steep increases in shipping costs, and eliminating last-mile expenses is one way to create considerable savings” ** “DSW reports that 15-20% of customers picking up an online order in-store end up buying an additional item.”**

*Source: CNBC “Like it or not, 'click and collect' is here to stay” Jan 13, 2016 **Source: Business Insider “Walmart discounts click-and-collect: Aprill 13, 2017

PERCEPTION VS. REALITY: CASE FOR KIMCO

Reality: Today’s Market

Demand for Retail Space Outweighs Supply Low Supply is Driving Kimco ABR

14 Kimco Pro-rata ABR/SF 10 year CAGR is over 4%

4Q06 4Q07 4Q08 4Q09 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 1Q17 $9.94 $10.97 $11.29 $11.52 $11.66 $11.91 $12.58 $12.99 $13.74 $14.46 $15.08 $15.23

National Fundamentals Outlook*

U.S. retail market occupancy increased with net absorption totaling 13.7M sf during 1Q17**

PERCEPTION VS. REALITY: CASE FOR KIMCO

PORTFOLIO QUALITY

Riverplace, Jacksonville, FL

1.1% 2.5% 3.8% 3.3% 3.1% 3.6% 27.8% 15.6% 19.5% 25.0%

Multi-Year Highs and Continued Growth in Operating Metrics

PORTFOLIO QUALITY

16

Annual New Leasing Spreads

2016 2015 2014 2013 2012 2011 2016 2015 2014 2013 2012 2011

29.3%

Annual Same Property NOI Growth

2.8%

All figures are at Kimco’s share

$14.46 $13.74 $12.99 $12.58 $11.91

$11.96 $12.66 $13.18 $14.00 $14.67

Rent Per Square Foot

$15.23

1Q17 1Q16 1Q15 1Q14 1Q13 1Q12

92.8% 93.7% 94.7% 95.7% 95.8%

1Q17 1Q16 1Q15 1Q14 1Q13 1Q12

95.3%

Occupancy

PORTFOLIO QUALITY

Quality Leads to Multiple Growth Levers NOI Growth Walk Through 2020

85 -110 bps 100 -150 bps 110 -160 bps 140 -165 bps

435 -585 bps

Ground-Up Development

Targeted Annual Growth Rate

Redevelopment Leasing & Value Creation Organic Growth (Rent Bumps)

17

PORTFOLIO QUALITY

Building Blocks of NOI Growth

18

*2015 is based on U.S. portfolio at 12/31/15 **Acquisition NOI in excess of dispositions

U.S. Portfolio 2020E 2015 BASE*

Rent Spreads/ Lease-up/ Value Creation Redevelopment Pipeline Net Acquisitions**

$935M

$1.2B $10M $50M

Ground-Up Development

$55M $70M

Organic Growth

$65M

PORTFOLIO QUALITY

19

Growth through Leasing & Value Creation

Progress to Date

• Improved small shop ABR = $26.42 psf
• Small shop spreads for last four quarters
• New Leases = +8.0%
• Renewals & Options = +7.6%
• Driving force behind occupancy:
• Restaurants
• Personal-care services
• Medical uses

82.3% 84.0% 85.6% 88.2% 88.6% 89.6%

77.0% 79.0% 81.0% 83.0% 85.0% 87.0% 89.0% 91.0% 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17

Small Shop Occupancy

PORTFOLIO QUALITY

Unmatched Mark to Market Opportunities Top 10 Core Markets 23

sites Anchor Mark to Market

14

sites

52

sites

+37% +28% +57% 13

sites

+45% 65

sites

+60% 10

sites

+31% 11

sites

+46% 71

sites

8

sites

+18% 29

sites

+77%

Chicago San Francisco, Sacramento, San Jose

20

Los Angeles, Orange County, San Diego Phoenix Dallas Houston New York

Philadelphia, Baltimore, Washington D.C.

Raleigh-Durham Miami, Ft. Lauderdale, West Palm Beach Anchor Mark to Market

+106%

$14.12 $15.41 $15.74 $10.14 $10.70 $12.00

$9 $11 $13 $15 $17 2013-2015A 2016A 2016-2020E

PORTFOLIO QUALITY

Growth through Leasing & Value Creation

21

Anchor Lease Spreads/Mark To Market

• Mark to Market Spread on Anchor Leases: +62%
• 118 Naked Leases* expiring through 2020 totaling 2.1M sf
• 3 Kmart Leases expiring through 2020: 316% market upside
• Total Average RPSF up 33% since 2010

New Rent Expiring Rent Projected Rent

$ABR/SF

+31.1% +44.0% +39.3%

Strongest Leasing Volume in the Past 10 Years; 497 leases signed in 1Q17

NAV CREATION

Crossroads Plaza, Raleigh, NC

NAV CREATION: REDEVELOPMENT

Highest and Best Use

23

Total Pipeline

Future: ~$2.0B+ Current*: ~$800M+

• Mixed-use densification options:

–

Partner with best in class developer

–

Ground Lease

–

Sell

• Redevelopment projects involve changing the footprint of the

shopping center or changing the total center GLA

$370M

Value Creation

$50M**

Projected NOI

All figures are at Kimco’s share *Current pipeline includes current projects as well as those in the design and entitlement phase **Includes $20 million of completed redevelopment projects

$- $50 $100 $150 $200 $250 2013A 2014A 2015A 2016A 2017E 2018E 2019E 2020E

$27 $72 $102 $80 $250 $200 $175 $175

NAV CREATION: REDEVELOPMENT

Growth through Redevelopment

24

All figures are at Kimco’s share

Capex Spending ($M)

Incremental Return: 8%-13%

NAV CREATION

Growth through Selective Ground-up Development

25

Pipeline

$674M

Current

Dania Pointe, Dania Beach, FL

Development Approach

• Retailer demand-driven
• Building additional concentration
• Build to own

Risk Management

• ~75% Pre-leased to build
• Phased construction
• Experienced team

Projected ROIC

7%-9%

FINANCIAL STRENGTH

Davidson Commons, Charlotte, NC

2020 VISION – BALANCE SHEET STRENGTH

Lower Net Debt/Recurring EBITDA leverage levels Sustain Fixed Charge Coverage of 3.0x+

27

Maintain a strong liquidity position Increase unencumbered asset pool Extend WAVG debt maturity profile Commit to strong investment grade ratings

*Black print represents 2020 Goals; all other data is Kimco positioning as of 3/31/2017

$2.25B unsecured line of credit*

71% of our properties*

Consolidated 6.0x Pro-rata (including preferreds) 7.3x*

3.4x*

S&P: BBB+ Moody’s: Baa1 Fitch: BBB+*

8.9yrs*

61% 26% 7% 5% 1%

STRONG CAPITAL STRUCTURE

Unsecured Debt Preferred Stock Non-controlling Interest Common Equity

Today Capital Activity Highlights

Mortgage Debt

As of 3/31/2017

Total Enterprise Value:

$15.5B

28

• Feb. 1, 2017: Secured new $2.25B

unsecured revolving credit facility, borrowings accrue at LIBOR plus 87.5 basis points, final maturity 2022

• Mar. 30, 2017: Completed offering of

$400M note at 3.8% due 2027

300 600 900 1,200

Debt in Millions

13%

300 600 900 1,200

Debt in Millions

29

Percentages are annual maturities of total debt stack *Weighted average

WELL-STAGGERED DEBT MATURITIES

Consolidated Debt Joint Venture Debt

Fixed Rate 4.03%* Floating Rate 2.36%* WAVG Term 8.9 Yrs Fixed Rate 5.03%* Floating Rate 2.74%* WAVG Term 4.0 Yrs

12% 11% 8% 11% 23% 13% 13% 0% 3% 6%

Secured Unsecured Line of Credit Kimco’s Share Partner’s Share

8% 8% 8% 2% 13% 7% 8% 0% 34%

A LOOK BACK

30

2010 2011 2012 2013 2014 2015 2016 $1.14 $1.20 $1.26 $1.33 $1.40 $1.46 $1.50

Headline FFO

Multiple Years of Growth

2010 2011 2012 2013 2014 2015 2016 2017 $0.64 $0.72 $0.76 $0.84 $0.90 $0.96 $1.02 $1.08*

Consistently Raised Dividend Commensurate With Recurring FFO/ Share Growth Maintained a ~5% Recurring FFO CAGR Through Our Transformation

*Quarterly dividend annualized

Funds From Operations Dividends

Conservative FFO Payout Ratio

31

2017 GUIDANCE

All figures are at Kimco’s share *Excludes transactional income/(expense), net

2017 Guidance (per diluted share) 2017 Operational Assumptions EPS FFO FFO as Adjusted* $0.64 - $0.67 $1.50 - $1.54 $1.50 - $1.54 Transactional Income/ (Expense), net U.S. Portfolio Occupancy U.S. Same Site NOI Growth Operating Property Acquisitions Operating Property Dispositions $0 95.8% - 96.2% +2.0% - +3.0% $300 million - $400 million $250 million - $350 million

APPENDIX

The Marketplace at Factoria, Bellevue, WA

33

RECONCILIATION OF FFO TO NET INCOME

2016A 2017E 2016A 2017E

FFO $556 $638 - $655 $1.32 $1.50 - $1.54 Depreciation and amortization (347) (352) - (366) (0.83) (0.83) - (0.86) Depreciation and amortization real estate JVs** (45) (35) - (42) (0.11) (0.08) - (0.10) Gain on disposition of operating properties 93 12 – 22 0.22 0.03 - 0.05 Gain on disposition of JV operating properties, and change in control of interests 218 12 – 22 0.52 0.03 - 0.05 Impairments of operating properties (102) (3) – (3) (0.24) (0.01) – (0.01) Benefit/(Provision) for income taxes*** (40) 0 – 0 (0.09) 0 – 0 Noncontrolling interests*** 0 – 0 0 – 0 Net income available to common shareholders $333 $272 - $288 $0.79 $0.64 - $0.67

FFO ($M) FFO/Share *

* Reflects diluted per share basis and the operational impact if certain units were converted to common stock at the beginning of the period ** Net of non-controlling interests *** Related to gains, impairments and depreciation on operating properties, where applicable

SIGNATURE SERIES

The Boulevard, Staten Island, NY

GRAND PARKWAY MARKETPLACE

Phase I

Project Summary Timing & Economics

• Phase I: 488K sf open-air center anchored by Target (open)
• Phase II: 255K sf open-air center
• Location:

─ Houston-The Woodlands-Sugar Land MSA ─ Near Exxon Corporate Campus (>10k employees) ─ 168k people (5 mile radius) ─

• Avg. household income >$100k (5 mile radius)
• Phase I is 79% pre-leased
• Phase I:

Estimated costs = $87.0M Estimated completion = 2017

• Phase II:

Estimated costs = $52.0M Estimated completion = 2018

Phase II 35

Ground-up Development

36

DANIA POINTE

Project Summary Timing & Economics

• Phase I: 320K sf modern open air retail
• Phase II: 490K sf fast fashion lifestyle center anchored by H&M,

restaurants, and entertainment in a “Main Street” setting with two hotel towers, residential, and office space

• Location:
• 108 acres on I-95 in Dania Beach, FL (5 miles south of Fort

Lauderdale)

• Project adjacent to Kimco’s 900K sf Oakwood Plaza S.C.
• Phase I:

Estimated costs = $109.0M Estimated completion = 2018

Ground-up Development

Phase II Phase I

Project Summary Timing & Economics

PROMENADE AT CHRISTIANA

• Develop 435k sf open-air center
• Location:

─ New Castle County, Delaware ─ Fronting one half mile of I-95 ─ 1/2 mile from GGP’s Christiana Mall which produces sales of $1,200 psf ─ Destination shopping market due to no sales tax

• Estimated costs = $64.0M
• Estimated completion = 2018

37

Ground-up Development

38

OWINGS MILLS

Project Summary Timing & Economics

• Develop 615K sf open-air center (de-malling)
• Location:

─ Baltimore-Columbia-Towson MSA ─ Direct access ramp to 795 which connects Carrol County with Baltimore County ─ Mass transit access within walking distance of the property

• Estimated Costs = $108.0M
• Estimated Completion = 2019

Ground-up Development

39

LINCOLN SQUARE

Project Summary Timing & Economics

• Develop open-air center with 100K sf of retail and 322

residential units

• Location:

─ Philadelphia, PA ─ Walking distance to the heart of Center City with convenient subway and bus access ─ Over 111k people (1 mile radius) ─

• Avg. household income ~$90k (1 mile radius)

─ The retail is 83% pre-leased

• Estimated Costs = $160.0M
• Estimated Completion = 2019

Ground-up Development

WILDE LAKE – COLUMBIA, MD

• Original Village Center – located ½ mile from “Downtown”
• Strategically located market with minimal class A residential
• Specialty grocer located at project
• Favorable entitlement process implemented, easing future

entitlements in same markets

• Redeveloped existing retail and newly constructed:
• 32,000 sf retail
• 15,000 sf office
• 230 residential units
• Ground leased residential structure

Completed Mixed Use Redevelopment

40

The Project

• Total Project Costs*: $18.9M
• Completed*: 2016
• Value Creation*: $14.1M
• Incremental ROI*: 8%

Future Projects

• 4 additional Columbia village centers for redevelopment
• Total Project Costs: $300M-320M
• Value Creation: $150M-200M

*Includes Starbucks

41

PENTAGON CENTRE – PENTAGON CITY, VA

• Gross Costs (Phase I): $164.5M
• Incremental NOI: $10.1M
• Incremental ROI: 6%-7%
• Incremental Value Creation: $66.9M
• Multi-phase project with first phase expected to be

completed in 2019

• Above grade retail parking structure (426 spaces)
• Develop two residential towers: 440 units (Tower I)

250 units (Tower II), and modernize existing retail

• Located in Washington D.C. MSA, #7 in U.S.
• Site sits above Pentagon City Metro

A B C D

In Progress Redevelopment

Before After

Future Redevelopment

After

42

THE BOULEVARD – STATEN ISLAND, NY

• Trophy NY metro asset
• Leasing overflow to other cluster assets
• Transformative, innovative site plan design
• Maximize density
• Improve parking efficiency
• Enhance visibility & signage
• Accommodate anchor prototypes

Before

• Gross Costs: $173.5M
• Incremental NOI: $11.0M
• Incremental ROI: 6%-7%
• Incremental Value Creation: $71.1M

CORPORATE SUSTAINABILITY

Established Priorities Tangible Results Transparency & Leadership

• #1 Retail Owner, 2016 Newsweek Top

Green Companies in the U.S.

• Sole Retail Owner, 2016 Dow Jones

Sustainability North America Index

• 2014 - 2016 GRESB Green Star
• 2014 CDP Climate Disclosure Leadership

Common Area Energy Consumption 15%

2011 2012 2013 2014 2015 MWH consumed

129,826 131,946 120,099 113,108 110,330

Community Quality Team Tenant Partnerships Operational Leadership

Stakeholder Engagement

43

KIMCO NOTES