KIMCO'S 2020 VISION INVESTOR PRESENTATION FOURTH QUARTER 2015 - Westlake Shopping Center, Daly City, CA
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KIMCO’S
2020 VISION
INVESTOR PRESENTATION
FOURTH QUARTER 2015
Westlake Shopping Center, Daly City, CA
SAFE
HARBOR
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.
The District at Tustin Legacy, Tustin, CA
COMPANY SNAPSHOT
LARGEST PUBLICLY TRADED OWNER & OPERATOR OF PREMIER OPEN-
AIR SHOPPING CENTERS IN THE UNITED STATES
History Founded in 1958 – IPO that initiated Modern REIT Era
NYSE listed (1991) – S&P 500 Index (2006)
Dividend $1.02/share annually, 3.9% yield at 12/31/15
Retail Portfolio 564 U.S. properties totaling 90M sf
Footprint 38 States and Puerto Rico
Occupancy(1) 12/31/15: 95.8% – All-time high: 96.2% (12/31/07)
Credit Rating Investment Grade: BBB+ Baal BBB+
S&P Moody’s Fitch
Information as of 12/31/2015
(1) Pro rata
3
HISTORY OF SOLID PERFORMANCE
TOTAL SHAREHOLDER RETURN & DIVIDEND GROWTH
Since IPO(1) Dividend Growth
11/29/91 – 12/31/15
13.3% $1.02*
$0.96
10.3%
9.5% $0.90
$0.84
$0.76
$0.72
$0.64
S&P 500 DJIA KIM 2010 2011 2012 2013 2014 2015 2016
*Current quarterly dividend annualized
(1) Source: Bloomberg
4
CASE FOR OPEN-AIR REAL ESTATE:
TODAY’S MARKET
Low Supply High Demand
Retail supply remains historically low More than 79,000 store openings scheduled
Consumer confidence trending higher over the next two years(3)
U.S. retail market occupancy increased with Pure-play online retail opening physical stores
net absorption totaling 31.8M sf during Discounters and off-price concepts are
4Q15(2) increasing their footprint in both square
footage and store count
Shopping Center Supply Growth (GLA)(1) Retail Sales Growth(4)
12%
1,200
10%
1,100
8% 1,000
In Billions
6% 900
4% 800
2% 700
0% 600
'15E
'17E
'81
'83
'85
'87
'89
'91
'93
'95
'97
'99
'01
'03
'05
'07
'09
'11
'13
(1) Green Street Advisors
(2) CoStar Group, “The CoStar Retail Report: National Retail Market” Fourth Quarter 2015
(3) RBC Capital Markets, “Retail REITs: December 2015 National Retailer Demand Monthly (NRDM)” Dec. 2015
(4) Retail Indicators Branch, U.S. Census Bureau
5SWEET SPOT OF RETAILING
Market Cap ($B): Off-Price Retailers vs. Department Stores
Sears
$27.3
Ross Stores
$21.4
JC Penney
$18.9
Dillard's $2.8
Nordstrom Sears $2.0
$14.6 JC Penney $2.4
TJX Companies
Dillard's $2.8
$46.8
Nordstrom
Ross Stores $4.5 $10.5
Macy's
TJX Companies $20.8
Macy's
$13.4 $12.3
2007 2015 2007 2015
Off-Price Retailers Department Stores
Source: Bloomberg
6WHY KIMCO?
Talented,
Experienced
Management Strong
Corporate Team Balance
Governance Sheet
Sell Multiple
Discipline Growth
Focus Levers
7U.S.
SHOPPING
CENTER
PORTFOLIO
Suburban Square, Ardmore, PATOP 30 MARKET SUMMARY: UNMATCHED DIVERSITY
Source: Green Street Advisors
9OPERATING PORTFOLIO
A HIGH-QUALITY BASE
The Market The Real Estate
Top U.S. markets Major metros
Strong demographics Above national average
Grocery-anchored >70% ABR
Anchor tenants ~60% ABR
Investment grade of top 50 tenants >50% ABR
Fee owned ground leases ~11% ABR
10KIMCO IS QUALITY
PORTFOLIO PROFILE
TOP100 TOP 300
SITES SITES
2015 Share of Portfolio NOI 49% 85%
Additional properties within 10 miles +169 +142
Combined share of portfolio NOI* 69% 92%
2020E Share of Portfolio NOI* 75% 97%
Dominant properties concentrated in major metropolitan markets
*Projection for largest properties plus properties within a 10-mile radius
11TOP10 KIMCO ASSETS
2015 20201
1 Westlake S.C. (San Francisco) 1 Dania Pointe (Ft. Lauderdale)
2 The District @ Tustin Legacy (Orange County) 2 Westlake S.C. (San Francisco)
3 Mesa Riverview (Phoenix) 3 The District @ Tustin Legacy (Orange County)
4 Suburban Square (Philadelphia) 4 The Boulevard (Staten Island)
5 The Marketplace at Factoria (Seattle) 5 Pentagon Centre (Washington D.C.)
6 Towson Place (Baltimore) 6 Mesa Riverview (Phoenix)
7 Crossroads Plaza (Raleigh-Durham) 7 Suburban Square (Philadelphia)
8 Dulles Town Crossing (Washington D.C.) 8 Grand Parkway (Houston)
9 Christown Spectrum (Phoenix) 9 Crossroads Plaza (Raleigh-Durham)
10 280 Metro Center (San Francisco) 10 The Marketplace at Factoria (Seattle)
$94M NOI (10% of Total) $145M NOI (14% of Total)
*NOI metrics are pro-rata as of Investor Day 12/10/2015
Redevelopment Site Development Site
(1) Before planned acquisitions
12BUILDING BLOCKS OF GROWTH
THE ROADMAP TO MULTIPLE GROWTH LEVERS
NOI Growth Walk Through 2020
Organic Growth: 140-165 bps
Leasing & Value Creation: 110-160 bps
Redevelopment: 100-150 bps
Ground-Up Development: 85-110 bps
Targeted Annual Growth Rate: 435-585 bps
13U.S. SHOPPING CENTER PROFILE:
By GLA By Annual Base Rent
Local Small Shops(< 5K sq. ft.) | 7% of GLA
• Small Shops provide:
13% ─ Higher rent PSF
─ Shorter term which
keeps pace with
National Small Shops (< 5K sq. ft.) | 8% of GLA current market
15%
• Anchors provide:
12% ─ Solid credit quality
Mid Tier Stores (5K – 10K sq. ft.) | 8% of GLA ─ Stability
─ Mark to market
opportunities
60%
Anchors (> 10K sq. ft.) | 77% of GLA
Stable Base with Significant Growth Potential
14BUILDING BLOCKS OF GROWTH
ORGANIC GROWTH
Top Ten Tenants*
Tenant % of ABR % of GLA
3.2% 4.0% 10,000 leases with 4,800 tenants
2.4% 3.5% Well staggered lease maturity with
2.1% 2.3%
limited rollover in any given year;
averages ~8% of GLA over next 10
1.9% 1.9% years
1.9% 2.3% 7 of the top 10 tenants are Moody’s
1.8% 4.0% investment grade
1.6% 3.1% Tenant diversity; exposure to any one
1.5% 1.4% tenant less than 3.3% of total ABR
1.5% 2.0%
1.2% 1.2%
*As of 1/31/2016
15BUILDING BLOCKS OF GROWTH
LEASING - SMALL SHOPS
Small Shop Occupancy Progress to Date
92% Improved small shop ABR= $25.09 psf
90%
90.0% New leases last four quarters +11%
88.7%
88.0% Spreads on renewals & options
88%
Last four quarters + 7%
86% 85.2%
84.2% The Path to 90% Occupancy
84%
82.5% Deal and occupancy bounties
82% 81.2% Operator portfolio reviews
80% Targeting of service-oriented tenants
4Q'10 4Q'11 4Q'12 4Q'13 4Q'14 4Q'15 4Q'16E
16BUILDING BLOCKS OF GROWTH
VALUE CREATION FROM ANCHOR EXPIRATIONS
$20
Anchor Lease Spreads/Mark To Market
$18.51
$18
$15.50 $15.56
$16 60%
$ABR/SF
New Rent
$14.42
$14 48% Expiring Rent
$12.53 44% - - - Projected Rent
38%
$12
35% $11.65
$11.27
$10
$10.51
$10.05
$9.28
$8
2013 Actual 2014 Actual 2015 Actual 2016-18E 2019E & After
17BUILDING BLOCKS OF GROWTH
REDEVELOPMENT
Results Since 2013* ($M) Spending ($M)
Budgeted Actual Variance $250 $225 $225 $225
NOI $31 $33 +6% $200 $190
Costs $274 $269 (2%) $150 $135
$118
Value $214 $249 $34 $100 $77
Creation $42
$50
Incremental 11% 12% 1% $0
ROI 2013 2014 2015 2016E 2017E 2018E 2019E 2020E
Note: Numbers are represented in gross terms.
*Through 12/31/2015
18REDEVELOPMENT
& DEVELOPMENT
The Boulevard, Staten Island, NYREDEVELOPMENT / VALUE CREATION
Increasing Portfolio Value Tri-Cities – Mt. Dora, FL
BEFORE
Aggressive pursuit of redevelopment
opportunities within portfolio
$1.0B redevelopment pipeline to generate
incremental NOI of $80M; adding $550M in value
creation
Focus remains on Major Metro Markets and
highly productive centers
AFTER
Acquiring parcels adjacent to existing properties
to unlock new redevelopment opportunities
Revitalize centers to improve stability of
recurring NOI, compress cap rates and increase
NAV
Current Return on Investment:
Total Redevelopment yield range: 8% - 13%
Retail Redevelopment Yield: 9%
Mixed-Use/ Residential Yield: 6%
20BUILDING BLOCKS OF GROWTH
REDEVELOPMENT PIPELINE
Total Pipeline | $3.0B+
Current | ~$1.0B Shadow | $2.0B+
Gross Costs $1.0B Major shopping center redevelopments
Projected NOI $80M Anchor tenant redevelopment
Value Creation $550M Pads & outparcels
Additional phases on prior redevelopments
Mixed-use
Incremental Return 8%-13%
21CURRENT REDEVELOPMENT PIPELINE
Gross Costs by Project Type ($MM) Gross Costs by Stage ($MM)
$60 Pads/Outlots
$405 Active
$80 Value Creation Design/Entitlements
(Anchor Repositioning) $466
Redevelopments
Evaluation
$860 (Change in GLA) $129
Costs by Estimated Year of Completion ($MM) $835
$689
$181 $129 $165 $137
$19 $16 $68 $49
2013 2014 2015 2016 2017 & Beyond
Gross Costs Pro Rata Costs
22COMPLETED: CASTOR PLACE – PHILADELPHIA, PA
Gross Costs: $16.2M Convert four-story former JC Penney department
store into a multi-tenant retail building
Incremental NOI: $1.5M Added new vertical entrance, parking, new
common area for 2nd and 3rd floor tenants and
renovation of existing in-line tenants
Incremental ROI: 9%
Burlington Coat Factory occupies 1st and lower
level; TJ Maxx and Bob’s Furniture occupy 2nd and
Incremental Value Creation: $5.2M 3rd levels
BEFORE AFTER
23IN PROGRESS: TRI-CITY PLAZA – LARGO, FL
Gross Costs: $28.8M Redeveloping 90% of shopping center to improve
traffic and pedestrian circulation
Incremental NOI: $2.8M Adding seven junior anchor and anchor tenants, as
well as 38K sf of small shop space
Incremental ROI: 9%-10% Executed leases with LA Fitness, Ross Dress for
Less and Petco
Incremental Value Creation: $12.7M
BEFORE AFTER
24FUTURE: HICKORY RIDGE – COLUMBIA, MD
Gross Costs: $80.0M Reconfiguring existing retail for better parking field
for the Giant Foods
Incremental NOI: $5.7M Adding approximately 250 market rate multi-family
units
Incremental ROI: 7% Creating a new public green space for the
community’s activities with the new retail facing
onto the square
Incremental Value Creation: $37M
BEFORE AFTER
25REDEVELOPMENT: MIXED USE OPPORTUNITIES
Reasons Why?
Unlock the highest and best use for EXISTING Real Estate, benefits the surrounding
community and makes the RETAIL more valuable
Kimco mitigating risk by either ground leasing the mixed use component or partnering with
best in class consultants
Unlocks the most value for our shareholders while retaining the ownership of the fee position
Active Projects
Wilde Lake (Apartments being constructed under a ground lease which is a portion of the site
to “best in class” apartment developer) Initial first residential move ins late 2016
Pentagon (Increasing NAV by developing two apartment towers, garage, retail; and exterior/
interior upgrades)
Design & Entitlements
Cupertino (Future opportunity for hotel or office on a ground lease)
26MIXED USE: WILDE LAKE – COLUMBIA, MD
The Project Shadow Pipeline
Total Project Costs: $18.9M 4 additional Columbia village centers for
redevelopment
Anticipated Stabilization: 4Q 2016
Total Project Costs: $300M-320M
Value Creation: $14M
Value Creation: $150M-200M
Incremental ROI: 8%
Original Village Center – located ½ mile from “Downtown”
Strategically located market with minimal class A residential
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
27BUILDING BLOCKS OF GROWTH
SELECTIVE GROUND-UP DEVELOPMENT
Pipeline
2015-2020 $740M
Projected ROIC 7% - 9%
Dania Pointe, Dania Beach, FL
Development Approach Risk Management
Retailer demand-driven 75% Pre-leased to build
Building concentration Phased construction
Build to own Experienced team
28
28DEVELOPMENT ACTIVITY:
Grand Parkway Marketplace, Spring, TX Promenade at Christiana, Delaware
Acquired 74 acres of land for $24.9M to develop 400k sf Acquired 45.6 acres of land fronting a half mile of I-95
power center; Subsequently sold 9 acres of land to Target for in New Castle County, Delaware for a gross price of
construction of new anchor store at center $13.4M
Located on the Grand Parkway toll road near the new Exxon Future development of a 435k sf power center
Corporate Campus (>10k employees)
Estimated project costs of $63.7M with an estimated
Strong demographics – 168k people & avg. household income completion date of 2Q 2018
>$100k (5-mile radius)
No retail sales tax creates destination shopping
Estimated project costs of $86.2M and completion of 3Q 2017 environment
Acquired 35 acres for $13.2M directly across from Grand
In close proximity to GGP’s Christiana Mall which
Parkway for Phase II
produces sales of $990 psf
29DEVELOPMENT ACTIVITY:
Dania Beach, FL Wynnewood, PA
Acquired 108 acres of land for a gross price of $65.5M Acquired 4.9 acres of land for a gross price of $13.7M
with one quarter mile of frontage along I-95 in Dania that is being developed with a 40k sf Whole Foods
Beach, FL (5 miles south of Ft. Lauderdale) grocery store &10k sf fully leased small shop space
Project adjacent to Kimco’s Oakwood Plaza S.C.- a 900k Estimated project costs of $27.5M for Whole Foods and
sq ft retail center that is 100% occupied. Combined with $11.5M for in-line retail and pad
Dania project will control two miles along I-95 Estimated opening of Whole Foods 3Q 2016 with in-line
Proposed mixed-use project with over a million square retail opening in 1Q and 2Q of 2016
feet of retail stores and restaurants, luxury apartments, Project is in a core market with high barriers to entry;
cafes, and more one mile from Kimco’s Suburban Square – one of our
Estimated project costs of $263M flagship properties ($900 sales psf)
30INVESTMENT
STRATEGY
Crossroads Plaza, Cary, NC2020 VISION – INVESTMENT STRATEGY
Grow through simple & disciplined acquisition approach
Selectively invest in properties offering redevelopment & value
creation opportunities
Maintain conservative capital structure
Divest low growth & high risk assets
322020 VISION - INVESTMENT STRATEGY
SIMPLE, DISCIPLINED & SELECTIVE
Acquisition Criteria Disposition Criteria
Target markets where Kimco has scale/ density Assets with above average risk
Asset/ tenant quality Assets with limited growth potential
NAV impact Secondary markets
NOI growth potential
Redevelopment potential
Airport Plaza, Farmingdale, NY Plaza Paseo, Albuquerque, NM
33INVESTMENT STRATEGY AT WORK
QUALITY TRANSFORMATION
Since 2010* Disposed Acquired
Number of U.S. Properties 329 201
Gross GLA 31M 26M
Gross Price ($B) $2.9 $5.4 +86%
Pro-rata Occupancy % 90.6% 95.8% +520 bps
Pro-rata ABR/sq. ft. $9.03 $14.63 +62%
Average Household Income $68,621 $89,399 +30%
Population 78,692 89,870 +14%
Improved Occupancy ● Stronger Strategic Markets ● Improved Demographics
*Reflects transactions since Investor Day 2010 through 12/31/2015.
Note: Demographics are weighted by pro-rata ABR within a 3-mile radius
34SIMPLIFIED OWNERSHIP STRUCTURE
SIGNIFICANT REDUCTION IN JOINT VENTURES SINCE 2010
JV Site Count JV Investment ($B)
Reduced by 73% Reduced by >56%
551
$12.3
$10.5
412
$6.3
191 $5.4
147
$4.0 $3.8 $2.2 $1.7
2010 2013 2015 2Q16E 2010 2013 2015 2Q16E
Kimco’s Investment
35HIGH-QUALITY ACQUISITIONS
BUY WHAT YOU KNOW
Joint Venture Acquisitions Adjacent Parcel/Neighboring Property
Purchases
Since 2010 acquired: Since 2013 acquired:
101 Properties - $3.4B 36 Parcels - $197.2M
In-depth property knowledge Greater control
Negotiated transactions Improves cap rate on overall property
No broker fees Easier to execute redevelopment
No transfer taxes Highest and Best use optionality
36QUALITY ADJACENT PROPERTY ACQUISITIONS
CROSSROADS PLAZA, CARY, NC (RALEIGH-DURHAM)
37QUALITY ADJACENT PROPERTY ACQUISITIONS
JERICHO COMMONS, JERICHO, NY (NEW YORK)
38MAJOR METRO EXPANSION
HOUSTON PORTFOLIO CASE STUDY
Acquired joint venture interests in The Centre at Copperfield &
Copperwood Village – February, 2015
Acquired grocery anchored Copperfield Village – February, 2015
Own three corners of high-traffic intersection
The Centre at Copperfield - Copperwood Village - Copperfield Village
39“PLUS”
BUSINESS
Long Gate S.C., Ellicott City, MDTHE “PLUS”
A DIFFERENTIATOR: Unlocking Value of Real Estate Rich Retailers
Opportunistic investments with retailer controlled real estate has led to a
long history of value creation: >25 years and >50 investments
2020 Vision anticipates significant monetization of Albertson’s investment
Continued sourcing through retailer and private equity relationships
Selective investment supported by underlying real estate value
Modest Investment, high return (Jan: Albertsons Consortium
acquires Safeway)
(Real Estate Financing)
(Bond Purchase)
(Designation (Designation
(Acquire/Release (Real Estate Financing)
(Acquire/Release to tenants) Rights) Rights) (Privatization) (July: Albertsons files for IPO)
to tenants) (Real Estate Financing/ (Real Estate Financing) (Real Estate Financing)
Designation Rights)
(Acquire/Release to tenants)
(Consortium acquires
(Acquire 60 leases) (Acquire/Reposition) (Real Estate Financing) five grocery banners)
(Acquire/Sale Leasebacks) (Acquire/Real Estate Financing)
Pre -1991 1995 1997 1998 2001 2002 2003 2005 2006 2007 2008 2013 2015
41KIMCO’S ALBERTSONS INVESTMENT HISTORY
Purchases 877 stores including
Cerberus Consortium Divests 49 stores in Albertsons remaining Albertsons ,
buys 661 Albertsons Florida to Publix Jewel-Osco Acme, Jewel-Osco, Shaw’s, &
ACME Shaw’s Star Market banners from
Albertsons Star Market SuperValu
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
SAFEWAY
Divests 132 stores in Sale/Lease-back of 33 Safeway privatization,
NorCal and Nevada to properties 1,100 stores added to
SaveMart portfolio
2006: Albertsons Privatization
Invested $50M = 15% interest
2015: Safeway
Received $245M
Invested $85M
2013: Albertsons/SuperValu Reduced interest in overall
Two step transaction: Albertsons investment to 9.8%
Invested $37M for grocer banners Albertsons 2016: S-1 remains on file and up to
Ownership Stake: 13.6% date as the company continues to evaluate
market conditions
Acquired 8.2M SVU common shares for $33.2M ($4.11 sh)
Sold shares in 2015: $40M gain
42FINANCIAL
OVERVIEW
Conroe Marketplace, Conroe, TX2020 VISION - BALANCE SHEET STRENGTH
Well positioned to access capital
Strong liquidity position; $1.75B available from unsecured line of credit
Repay >$1.2B of consolidated mortgage debt through 2020
Increase unencumbered asset pool
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+
44STRONG CAPITAL STRUCTURE
Since Investor Day 2013, refinanced ~$2B of maturing debt at significantly
lower rates & extended average debt maturity using a 30-year bond
Redeemed 6.9% preferred stock & implemented ATM program
Total Market Cap: $10.6B Total Market Cap: $17.3B*
Investor Day 2010 Today
1%
2% 5%
6%
9%
12%
52% 22%
63%
28%
Common Equity Unsecured Debt Mortgage Debt Preferred Stock Non-controlling Interest
* As of 12/31/2015
45WELL-STAGGERED DEBT MATURITIES
Consolidated Debt Fixed Rate 4.82%*
1,200
Floating Rate 1.43%*
16% 17%
900
14%
Maturity 5.3 Yrs*
Debt in Millions
12%
10% 11%
600
7% 7%
6%
300
0%
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 Thereafter
Secured Unsecured Term Loan
1,500 Joint Venture Debt
Fixed Rate 5.33%*
1,200 39%
Floating Rate 2.33%*
Debt in Millions
900 Maturity 3.1 Yrs*
600
15%
12% 11%
300 5% 8%
3% 4% 3%
1%
0
2016 2017 2018 2019 2020 2021 2022 2023 2024 Thereafter
*Weighted average Kimco's Share Partner's Share
Note: Percentages are annual maturities of total debt stack
462020 VISION – LEVERAGE VIEW
3.5x 3.5x
6.0x 3.4x
5.7x
Fixed Charge Coverage
5.8x
3.0x 3.0x 5.6x
Net Debt/ Recurring EBITDA
3.2x
5.4x
5.3x
2015 2016 2017 2018 2019 2020
Grow Recurring EBITDA & Funds Available for Distribution (after common dividends)
Exit Canada
Monetize Albertsons investment
Opportunistic use of ATM program
Development/Redevelopment spending $225M - $325M per year
Modest net acquirer
47A LOOK BACK
SUCCESSFUL 5 YEARS OF GROWTH
Funds From Operations Dividends
$1.02*
$1.56
$0.96
$1.46
$1.45
$1.40
$0.90
$1.35
$1.33 $0.84
$1.27
$1.25
$1.26
$0.76
$1.21
$1.20
$1.14
$0.72
$0.64
2010 2011 2012 2013 2014 2015
2010 2011 2012 2013 2014 2015 2016
Recurring FFO Headline FFO
Maintained a ~5% Recurring & Headline FFO Consistently Raised Dividend Commensurate
CAGR Through Our Transformation With Recurring FFO/ Share Growth
*Current quarterly dividend annualized Conservative FFO Payout Ratio
482020 VISION: U.S. NOI GROWTH
Net
Acquisitions(3)
Ground-Up
Development $10M
Redevelopment
Pipeline $55M
Rent Spreads/
Lease-up/ $70M
Value Creation
Organic
$50M
Growth
$1.2B
$65M
U.S.
Portfolio
$935M
Debt
Reduction
Canada $40M ($40M)(2)
2015 2020E
BASE (1)
(1)2015 is based on population at 12/31/15
(2)Assumes proceeds from sales used to pay down debt.
(3)Acquisition NOI in excess of dispositions
492016 GUIDANCE
Assumptions Dilution Impact
U.S. Acquisitions: $450M to $550M 2015/ 2016 U.S./ Canada Dispositions
– Blended cap rate: ~5.00 - 6.00% – $2.2B: ~6.75% blended cap
U.S./ Canada Dispositions: $825M to 2015/ 2016 U.S. Acquisitions
$975M – $1.8B: ~5.00 - 6.00% blended cap rate
– Blended cap rate: ~6.75%
Generate Net Disposition Proceeds
Full Year U.S. Same-Site NOI: – Used to reduce debt
– Growth of 2.50% to 3.50%
Year End U.S. Occupancy:
Transformation Impact on 2016:
– 95.7% to 96.2% – FFO impact of ($0.06) per share on
Albertsons Monetization: growth
– 5% to 10% of investment
2016 Final year of dilution from portfolio transformation
Note: All figures are at Kimco’s share
502016 FFO GUIDANCE
FFO ($M) FFO/Share(2)
2015A 2016F 2015A 2016F
RECURRING:
U.S. Retail Portfolio $964 $980 - $1,005 $2.33 $2.35 - $2.41
International & Other 64 9 – 13 0.16 0.02 – 0.03
Corporate Financing (275) (238) - (243) (0.66) (0.57) - (0.58)
G&A (121) (118) - (121) (0.29) (0.28) - (0.29)
Income Taxes & Other (28) (16) - (20) (0.08) (0.04) - (0.05)
RECURRING FFO $604 $617 - $634 $1.46 $1.48 - $1.52
Transactional Income, Net (1) 40 25 – 42 0.10 0.06 - 0.10
HEADLINE FFO $644 $642 - $676 $1.56 $1.54 - $1.62
(1) Net of non-controlling interests
(2) Reflects diluted per share basis and the potential impact if certain units were converted to common stock at the beginning of the period
51APPENDIX The Marketplace at Factoria, Bellevue, WA
RECONCILIATION OF FFO TO NET INCOME
FFO ($M) FFO/Share (2)
2015A 2016F 2015A 2016F
FFO $644 $642 - $676 $1.56 $1.54 - $1.62
Depreciation and amortization (334) (334) - (346) (0.81) (0.80) - (0.83)
Depreciation and amortization real estate JV’s(1) (67) (46) - (54) (0.17) (0.11) - (0.13)
Gain on disposition of operating properties, net of tax(1) 124 10 – 15 0.30 0.02 - 0.04
Gain on disposition of JV operating properties, and
504 20 – 35 1.22 0.05 - 0.08
change in control of interests
Impairments of operating properties, net of tax(1) (40) _-_ (0.10) _-_
Net income available to common shareholders $831 $292 - $326 $2.00 $0.70 - $.078
(1) Net of non-controlling interests
(2) Reflects diluted per share basis and the potential impact if certain units were converted to common stock at the beginning of the period
53RETAILER BASE: MINIMAL EXPOSURE TO E-COMMERCE
Portfolio Composition by ABR: Trends
Clicks to Brick
— Online retailers are opening physical stores to
93% increase brand recognition
Internet 7% Omni-Channel Retailing
Compatible/
Internet
Resistant
Vulnerable — Align different channels to provide seamless
Necessity Based,
(poor Omni-channel shopping experience
platform)
Discount Goods
& Services
— Retailer Insights:
Books & Video,
Office Supplies — Macy’s: Store closings decrease online sales in the
Electronics
market
— Dick’s:
New market store opening = 50% increase in
ecommerce in that market
Every $1 spent online = $5 spent in stores
Multichannel shopper spends 3x more than
E-commerce accounted for only 7.2% of total single channel shopper
retail sales in 4Q15(1) Target: Online purchases generate 2x trips to store
Diversified Portfolio: Strong Retailers with a Developed Omni-Channel Presence
(1) Retail Indicators Branch, U.S. Census Bureau
54CORPORATE RESPONSIBILITY PROGRAM
Objective:
Improve Kimco’s economic, social & environmental performance
through a series of initiatives that enhance tenant satisfaction,
reduce operating expenses, mitigate business risks, and generate
new sources of income.
Recognition:
2015 Member of Dow Jones Sustainability
North America Index
Key Initiatives:
2014 DOE LEEP Campaign – Largest Absolute
Number of Parking Facility Upgrades
Tenant Energy Services
2014 PR News CSR Award – Best Blog
Utility Management
Illumi-Nation Lighting Improvements 2014 Green Lease Leader
Property Gateway 2014 CDP Climate Disclosure Leader
Waste Management & Recycling 2014 Green Star designation from GRESB
KEYS (Kimco Entrepreneurs Year Start)
Additional Information:
Redevelopment
Community Connections CR Web Portal: www.kimcocr.com
EV Charge Stations GRI Report: www.kimcorealty.com/CRReport
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