KIMCOS 2020 VISION INVESTOR Presentation Third Quarter 2016 SAFE - - PowerPoint PPT Presentation

INVESTOR Presentation Third Quarter 2016

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 the Company or the SEC.

SAFE HARBOR

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

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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

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10.3% 9.5% $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

• 534 U.S. properties totaling 86M square feet in 35 states

and Puerto Rico

• Total Enterprise Value – $18.2 billion

KIMCO’S HISTORY

TSR Since IPO1 Dividend Growth

KIM DJIA S&P 500

13.4% 11/29/91 – 9/30/16

2010 2011 2012 2013 2014 2015 2016

Information as of 9/30/2016

1 Source: Bloomberg 2 Quarterly dividend annualized

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2017

$1.08* $1.082

CASE FOR OPEN-AIR REAL ESTATE

Today’s Market

1 Green Street Advisors January 2016 2 CoStar Group, “The CoStar Retail Report: National Retail Market” Third Quarter 2016 3 RBC Capital Markets, “Retail REITs: July 2016 National Retailer Demand Monthly (NRDM)” July 2016

Shopping Center Supply Growth (GLA)1

New Supply Near 38-Year Low

Planned Retailer Store Openings3

(in thousands)

High Demand

70 80 90 60 50 40

• More than 79,272 store openings scheduled over the next

two years(3)

• Pure-play online retail opening physical stores
• Discounters and off-price concepts are increasing store count

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Next 24 months Next 12 months 0% 2% 4% 6% 8% 10% 12%

U.S. retail market occupancy increased with net absorption totaling 43.1M sf during 3Q162

Ross Stores $5 TJX $13 Sears $27 JC Penney $19 Nordstrom $15 Macy's $21 Ross Stores $26 TJX $49 Sears $1 Nordstrom $9 Macy’s $11

Source: Bloomberg

SWEET SPOT OF RETAILING

Market Cap ($B): Off-Price Retailers vs. Department Stores

Off-Price Total:

$18B

Department Stores Total:

$85B

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2007 3Q, 2016

Off-Price Total:

$75B

Department Stores Total:

$26B

PORTFOLIO QUALITY

Riverplace, Jacksonville, FL

PORTFOLIO QUALITY

Highly Concentrated in Major Metropolitan Markets

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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

3.4% 2.4% 2.2% 2.0% 1.9% 1.7% 1.6% 1.4% 1.3% 1.2% 1.1%

As of 9/30/2016

SCALE: Approximately 8,900 leases with 4,100 tenants STABILITY: Well staggered lease maturity; averages ~8% of GLA each year for next 10 years QUALITY: ~55% of ABR from the top 50 tenants is attributed to tenants with investment grade credit ratings SECURITY: Single tenant exposure no more than 3.4% of total ABR; low ABR with strong mark to market upside

Tenant Diversity

Top Tenants % of ABR – Only 15 tenants with an ABR exposure greater than 1.0%

PORTFOLIO QUALITY

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Necessity Based Goods and Services

PORTFOLIO QUALITY

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15% Grocery/ Warehouse Clubs 12% Restaurants 9% Service 8% Off-Price 5% Other – Internet Resistant 3% Health Clubs/ Fitness 2% Medical

Internet Resistant 54%

% of ABR

Omni-Channel Players 41%

Internet Vulnerable 5%

10% Home Improvement/ Home Goods 7% Apparel/ Accessories 6% Sporting Goods/ Hobbies 5% Department Stores 5% Pharmacy/ Personal Care 5% Other – Omni Channel 3% Banking/ Finance 2% Electronics 2% Office Supply Stores 1% Books

% of ABR % of ABR

72% of ABR

from Grocery Anchored Centers

1.1% 2.5% 3.8% 3.3% 3.1% 93.1% 93.9% 94.9% 95.7% 95.8%

3Q16 4Q15 4Q14 4Q13 4Q12 4Q11

3.6% 27.8% 15.6% 19.5% 25.0%

Multi-Year Highs and Continued Growth in Operating Metrics

PORTFOLIO QUALITY

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Annual New Leasing Spreads

3Q16 2015 2014 2013 2012 2011 3Q16 4Q15 4Q14 4Q13 4Q12 4Q11 3Q16 2015 2014 2013 2012 $14.46 $13.74 $12.99 $12.58 $11.91

95.1%

2011

Occupancy

$11.91 $12.58 $12.99 $13.74 $14.46

Rent Per Square Foot

26.6% $14.94

Annual Same Property NOI Growth

3Q16 4Q15 4Q14 4Q13 4Q12 4Q11

3.3%

Note: All figures are at Kimco’s share

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)

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PORTFOLIO QUALITY

Building Blocks of NOI Growth

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1 2015 is based on U.S. portfolio at 12/31/15 2 Assumes proceeds from sales used to pay down debt 3 Acquisition NOI in excess of dispositions

U.S. Portfolio 2020E 2015 BASE 1

Rent Spreads/ Lease-up/ Value Creation Redevelopment Pipeline Net Acquisitions3

$935M

$1.2B $10M $50M

Ground-Up Development

$55M $80M

Organic Growth

$65M

PORTFOLIO QUALITY

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Growth through Leasing & Value Creation

Progress to Date The Path to 90% occupancy

• Improved small shop ABR = $26.02 psf
• Small shop spreads for last four quarters
• New Leases = +11%
• Renewals & Options = +8%
• Deal and occupancy bounties
• Operator portfolio reviews
• Targeting of service-oriented tenants

81.8% 83.9% 84.7% 87.0% 88.0% 89.2% 90.0%

76 78 80 82 84 86 88 90 92 3Q11 3Q12 3Q13 3Q14 3Q15 3Q16 Goal

Small Shop Occupancy

PORTFOLIO QUALITY

Unmatched Mark to Market Opportunities Top 10 Core Markets 24

sites 5% ABR

170K

Population

Anchor Mark

to Market

14

sites 2% ABR

119K

Population

54

sites 10% ABR

161K

Population

+27% +30% +58% 13

sites 4% ABR

135K

Population

+48% 65

sites 12% ABR

189K

Population

+64% 10

sites 2% ABR

87K

Population

+30% 12

sites 4% ABR

94K

Population

+40% 72

sites 16% ABR

102K

Population

+89% 9

sites 2% ABR

66K

Population

+14% 29

sites 5% ABR

148K

Population

+84%

Chicago San Francisco, Sacramento, San Jose

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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

*ABR is defined as Annual Base Rent

$12.53 $15.50 $14.42 $15.56 $18.51 $9.28 $11.27 $10.05 $10.51 $11.65 $8 $10 $12 $14 $16 $18 $20

2013 Actual 2014 Actual 2015 Actual 2016-18E 2019E & After

PORTFOLIO QUALITY

Growth through Leasing & Value Creation

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Anchor Lease Spreads/Mark To Market

• Mark to Market Spread on Anchor Leases: +59%
• 82 Naked Leases1 expiring through 2018 totaling 1.5M sf
• 5 Kmart Leases expiring through 2018: 362% market upside
• Actual anchor spreads for 1H16 were +46%
• Total Average RPSF up 30% since 2010

New Rent Expiring Rent Projected Rent

$ABR/SF

+35% +38% +44% +48% +60%

1 Naked Leases are defined as leases with no remaining options

NAV CREATION

Crossroads Plaza, Raleigh, NC

NAV CREATION: REDEVELOPMENT

Highest and Best Use

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Total Pipeline | $3.0B+

(beyond 2020)

Shadow: ~$2.0B+

(through 2020)

Current: ~$1.0B+

Incremental Return: 8%-13%

• Mixed-use densification options:

–

Partner with best in class developer

–

Ground Lease

–

Sell

$550M

Value Creation

$80M

Projected NOI

$XXX M

NAV CREATION: REDEVELOPMENT

Growth through Redevelopment

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Note: Numbers are represented in gross terms.

$42 $47 $118 $135 $190 $225 $225 $225

2013 2014 2015 2016E 2017E 2018E 2019E 2020E

$250 $200 $150 $100 $50 $0

Spending ($M)

NAV CREATION

Growth through Selective Ground-up Development

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Pipeline

$740M

2015-2020

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%

NAV CREATION

Redevelopment Site Development Site

NOI metrics are pro-rata

1Before planned acquisitions

Evolution of Top 10 Kimco Assets Through NOI Growth

21 1 Westlake S.C. (San Francisco) 2 Oakwood Plaza (Ft. Lauderdale) 3 The District @ Tustin Legacy (Orange County) 4 Mesa Riverview (Phoenix) 5 Suburban Square (Philadelphia) 6 Towson Place (Baltimore) 7 The Marketplace at Factoria (Seattle) 8 Crossroads Plaza (Raleigh-Durham) 9 Dulles Town Crossing (Washington D.C.) 10 Christown Spectrum (Phoenix)

2016 20201 $99M NOI (11% of Total)

1 Dania Pointe (Ft. Lauderdale) 2 Westlake S.C. (San Francisco) 3 The Boulevard (Staten Island) 4 Suburban Square (Philadelphia) 5 The District @ Tustin Legacy (Orange County) 6 Oakwood Plaza (Florida) 7 Mesa Riverview (Phoenix) 8 Pentagon Centre (Washington D.C.) 9 Grand Parkway (Houston) 10 Crossroads Plaza (Raleigh-Durham)

$152M NOI (15% of Total)

Growth through Active Asset Management

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Plaza Paseo, Albuquerque, NM

Maintain Conservative Capital Structure

• Assets with above average risk
• Assets with limited growth potential
• Secondary markets
• Core markets where Kimco has scale/ density
• Asset/ tenant quality
• NAV impact
• NOI growth potential
• Redevelopment and value creation potential

Acquisition Criteria Disposition Criteria

Airport Plaza, Farmingdale, NY

NAV CREATION

• Improved Occupancy

Reflects transactions since Investor Day 2010 through 6/30/2016. Note: Demographics are weighted by pro-rata ABR within a 3-mile radius

ACQUIRED 202 DISPOSED OF 349

Assets that reflect our 2020 Vision Non-Strategic Assets

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NAV CREATION

Growth through Active Asset Management

• Stronger Strategic Markets
• Improved Demographics

+540bps Pro-rata Occupancy +58% Pro-rata ABR/sq. ft. +28% Average Household Income +20% Population

551 412 191 142 60.8% 67.5% 80.5% 84.7% 24

NAV CREATION

Growth through Simplification JV Site Count

Reduced by 74%

Consolidated NOI %

Increased by 39%

2010 2013 2015 3Q16 2010 2013 2015 3Q16

FINANCIAL STRENGTH

Davidson Commons, Charlotte, NC

2020 VISION – BALANCE SHEET STRENGTH

Strong liquidity position; $1.75B available from unsecured line of credit Increase unencumbered asset pool; 362 assets as of 3Q16 Lower Net Debt/Recurring EBITDA leverage levels

• Consolidated 5.0x – 5.5x
• Pro rata (including preferreds) 6.4x – 6.9x

Fixed Charge Coverage 3.0x+ Committed to strong investment grade ratings S&P: BBB+ | Moody’s: Baa1 | Fitch: BBB+

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Extended WAVG debt maturity profile (3Q2015 - 4.3yrs; 3Q2016 - 8.9yrs) 26

52% 28% 12% 6% 2% 67% 21% 7% 4% 1%

STRONG CAPITAL STRUCTURE

Since Investor Day 2013, refinanced $3.2B of maturing debt at significantly lower rates & extended average debt maturity using a 30-year bond ATM program – Issued 9.8M shares; generated net proceeds

• f $285.1M

Unsecured Debt Preferred Stock Non-controlling Interest Common Equity

Today

Total Enterprise Value:

$10.6B

Investor Day 2010

Mortgage Debt

As of 9/30/2016

Total Enterprise Value:

$18.2B

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300 600 900 1,200

Debt in Millions 300 600 900 1,200

Debt in Millions

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1Proforma includes the subsequent issuance of 7-year $400M 2.7% and 30-year $350M 4.125% Notes and the

payoff of $400M of the term loan, $225M of line of credit and $55M of mortgage debt maturing in Q1, 2017 *Weighted average Note: Percentages are annual maturities of total debt stack

WELL-STAGGERED DEBT MATURITIES1

Consolidated Debt

9% 1% 8% 8% 7% 8% 7% 13%

Joint Venture Debt

Fixed Rate 4.10%* Floating Rate 1.69%* Maturity 8.9 Yrs* Fixed Rate 5.14%* Floating Rate 2.40%* Maturity 3.9 Yrs*

26% 13% 12% 14% 9% 5% 10% 20% 12% 11% 0% 7%

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

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6.0x 5.8x 5.6x 5.4x 5.3x 5.2x 3.0x 3.2x 3.4x 3.5x 3.6x 3.6x 2015 2016 2017 2018 2019 2020

2020 VISION – LEVERAGE VIEW

• Grow Recurring EBITDA & Funds

Available for Distribution (after common dividends)

• Exit Canada
• Monetize Albertsons investment
• Opportunistic use of ATM program
• Development/Redevelopment

spending $250M - $400M per year

• Modest net acquirer

Net Debt/ Recurring EBITDA Fixed Charge Coverage

A LOOK BACK

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2010 2011 2012 2013 2014 2015 2016 $1.14 $1.20 $1.26 $1.33 $1.40 $1.46 $1.49 - $1.51

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

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2016 GUIDANCE

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

2016 Guidance (per diluted share) 2016 Operational Assumptions EPS FFO FFO as Adjusted* $0.76 - $0.79 $1.30 - $1.32 $1.49 - $1.51 Transactional Income/ (Expense), net U.S. Portfolio Occupancy U.S. Same Site NOI Operating Property Acquisitions Operating Property Dispositions $(79) million - $(78) million 95.2% - 95.7% +2.70% - +3.30% $450 million - $500 million $1.1 billion - $1.2 billion

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2016 FFO GUIDANCE

FFO ($M) FFO/Share(2)

2015A 2016F 2015A 2016F RECURRING: U.S. Retail Portfolio $964 $965 - $979 $2.33 $2.29 - $2.33 International & Other 64 15 – 16 0.16 0.04 – 0.04 Corporate Financing (275) (233) - (236) (0.66) (0.55) - (0.56) G&A (121) (116) - (118) (0.29) (0.28) - (0.28) Income Taxes & Other (28) (6) - (9) (0.08) (0.01) - (0.02) RECURRING FFO $604 $625 - $632 $1.46 $1.49 - $1.51 Transactional Income, Net (1) 40 (79) – (78) 0.10 (0.19) – (0.19) HEADLINE FFO $644 $546 - $554 $1.56 $1.30 - $1.32

(1) Net of non-controlling interests. 2016 ranges include bond/ mortgage prepayment charges and charge for merger of TRS (2) Reflects diluted per share basis and the potential impact if certain units were converted to common stock at the beginning of the period

APPENDIX

The Marketplace at Factoria, Bellevue, WA

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RECONCILIATION OF FFO TO NET INCOME

2015A 2016F 2015A 2016F

FFO $644 $546 - $554 $1.56 $1.30 - $1.32 Depreciation and amortization (334) (346) - (358) (0.81) (0.82) - (0.85) Depreciation and amortization real estate JV’s(1) (67) (45) - (49) (0.17) (0.11) - (0.12) Gain on disposition of operating properties 132 84 – 96 0.32 0.20 - 0.23 Gain on disposition of JV operating properties, and change in control of interests 558 202 – 210 1.35 0.48 - 0.50 Impairments of operating properties (52) (78) - (78) (0.13) (0.19) - (0.19) Benefit/(Provision) for income taxes(3) (54) (41) - (41) (0.13) (0.10) - (0.10) Noncontrolling interests(3) 4 0 - 0 0.01 0 - 0 Net income available to common shareholders $831 $322 - $334 $2.00 $0.76 - $0.79

FFO ($M) FFO/Share (2)

(1) Net of non-controlling interests (2) Reflects diluted per share basis and the operational impact if certain units were converted to common stock at the beginning of the period (3) Related to gains, impairments and depreciation on operating properties, where applicable

SIGNATURE SERIES

The Boulevard, Staten Island, NY

36

SHOPPES AT WYNNEWOOD

Completed Ground-up Development

• Phase I: 45K sf Whole Foods
• Phase II: 10K sf small shops
• Location:

─ “Main Line” area in the Philadelphia-Camden-Wilmington MSA ─ Located 1 mile from Kimco’s Suburban Square – flagship property (~$900 sales psf)

• Average Household Income over $105K

Project Summary Timing & Economics

• Phase I:

Total costs = $27.5M Date completed = 3Q 2016

• Phase II:

Total costs = $10.9M Date Completed = 1Q 2016

GRAND PARKWAY MARKETPLACE

Phase I

Project Summary Timing & Economics

• Phase I: 488K sf open-air center anchored by Target
• 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 70% pre-leased
• Phase I:

Estimated costs = $87.0M Estimated completion = 2017

• Phase II:

Estimated costs = $52.0M Estimated completion = 2018

Phase II 37

Ground-up Development

38

DANIA POINTE

Project Summary Timing & Economics

• Phase I: Traditional open-air center with 320K sf of retail anchored

by Costco

• Phase II: 490K sf of full price and fast fashion retail 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

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Ground-up Development

40

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

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

• Redevelop existing retail and newly construct:
• 32,000 sf retail
• 15,000 sf office
• 230 residential units
• Ground lease residential structure

Mixed Use Redevelopment

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The Project

• Total Project Costs: $18.9M
• Anticipated Stabilization: 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

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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

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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

44

KIMCO NOTES

KIMCO NOTES

KIMCO NOTES