Investor Presentation. Timonium Square Timonium, MD

Transcription

1 Investor Presentation Timonium Square Timonium, MD

2 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 with 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 report on Form 10-K. Copies of each filing may be obtained from the Company or the SEC. Mesa Riverview Mesa, AZ

3 North America s Largest Owner & Operator of Neighborhood & Community Shopping Centers. Redhawk Towne Center Temecula, CA

4 History Started in 1958 IPO that initiated modern REIT era; NYSE-listed for ~20 years S&P 500 Index (2006) Dividend $0.76 annually, ~3.9% yield (03/31/12) Shopping Center Properties Geographic Footprint 930 properties; 136.2M / 88.6M sq. ft. (gross/pro-rata) 44 states, Puerto Rico, Canada, Mexico and South America Occupancy (pro-rata) 5-year average: 93.7% High: 96.3% (12/31/07) / Low: 92.3% (6/30/09) Enterprise Value $13.2B (03/31/12) Credit Rating Investment Grade BBB+ BBB+ Baa1 (S&P Fitch Moody s) 4

5 Vision: The Premier Owner and Operator of Shopping Centers Continue to strengthen balance sheet Active Asset Recycling Program Sell non-retail assets Opportunistic Retail Investments Lease-up of Latin America portfolio Value creation through redevelopment Capitalize on 50 Year History, Size/Scale and Strength of Retailer Relationships 5

6 The Case for Retail Real Estate: Today s Market Healthier Retailers Strong balance sheets Right-sizing of store size & relocating low-performing stores 71,539 store openings scheduled over the next two years 2 Supply Growth by Center Type 3 Retail Real Estate Virtually no ground up development supply being absorbed Return of growth-focus poised to increase store count in power centers vs. regional malls in Decrease in Retail Development 3 1 ISI Group, Real Estate Research: More Confident in Power Center Demand Following ICR XChange 2012 January RBC Capital Markets, Retail REITs: May National Retailer Demand Monthly (NRDM) May CoStar Group. The State of Commercial Real Estate Industry: Year-End 2011 Retail Review & Outlook

7 The Case for Retail Real Estate: Historical Perspective Kimco U.S. Historical Occupancy 98.0% 96.0% 94.0% Highest Occupancy 96.2% Lowest Occupancy 91.8% Average Occupancy 93.5% 92.0% 90.0% 88.0% 86.0% 84.0% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Industry Benchmark Occupancy 98.0% 96.0% 94.0% 92.0% Highest Occupancy 94.0% Lowest Occupancy 89.8% Average Occupancy 91.5% 90.0% 88.0% 86.0% 84.0% 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Source: NCREIF Neighborhood shopping centers occupancy rate was at five year low in 1Q11 at 89.8% and a high in 1Q07 at 94.0% 7

8 Geographic Footprint of Quality Assets Faubourg Boisbriand Boisbriand, Quebec, Canada Long Gate S.C. Ellicott City, MD Magnocentro 26 Huixquilucan, EM Canada United States Mexico 65 centers 12.2M / 6.7M sq. ft. (gross / pro-rata) $15.58 per sq. ft. 96.4% occupancy Top tenants: TJ Maxx Canadian Tire Target 795 centers 111.4M / 73.0M sq. ft. (gross / pro-rata) $11.96 per sq. ft. 92.8% occupancy Top tenants: Home Depot TJ Maxx Wal-Mart 55 centers 11.8M / 8.2M sq. ft. (gross / pro-rata) $10.44 per sq. ft. 89.8% occupancy Top tenants: Wal-Mart Cinepolis HEB Note: USD$ per sq. ft. and occupancy as of 03/31/12 are shown at pro-rata interest. Centers and square footage include properties not in occupancy. 8

9 Why Kimco? Resilient Portfolio Geographically diversified Redevelopment program Asset recycling Solid Tenant Mix Credit quality Low single tenant exposure More than 15,000 leases with 8,500 tenants Necessity vs. Specialty Well-balanced between grocery vs. big box Stability Growth 9

10 Portfolio has Remained Resilient Over the Great Recession Same-Property NOI Occupancy 5.0% 98.0% 4.0% 3.0% 2.0% 1.0% 0.0% 3.0% 2.7% 1.2% 1.1% 1.5% 0.7% 1.1% 0.4% 96.0% 94.0% 92.0% 90.0% 96.0% 95.2% 95.2% 94.3% 92.4% 92.7% 92.1% 92.0% 92.2% 92.3% -1.0% 88.0% -2.0% 86.0% -3.0% -4.0% -2.7% -3.2% 84.0% 82.0% -5.0% Kimco Realty U.S. Strip Center REIT Average 80.0% Kimco Realty U.S. Strip Center REIT Average Source: GreenStreet Advisors Report 10

11 Stability Driven by Diversified Tenant Exposure Across Many Regions Metropolitan Statistical Area (MSA) Exposure by Annualized Base Rent (ABR) Top 30 MSAs & Puerto Rico account for more than 70% of U.S. ABR. Latin America 6.5% Top 5 MSAs include: NY-Northern NJ-Long Island L.A.-Long Beach-Santa Ana Chicago-Joilet-Naperville All Other 24.4% Dallas-Fort Worth-Arlington Houston-Sugar Land- Baytown International portfolio accounts for approx. 17% of ABR. Canada 10.3% MSA % MSA & Puerto Rico 26.8% MSA % Top Tenant Overview by Annualized Base Rent 3.1% 3.0% 2.5% 2.1% 1.6%* 1.5% Only 14 tenants with exposure > 1.0% 1.3%* 1.2%* 1.1% * Each 11

12 U.S. Shopping Center Portfolio Westlake Shopping Center 12 Daly City, CA

13 U.S. Shopping Center Portfolio Profile by ABR 62% of ABR Generated from Major and Junior Anchors High Quality, Good Credit Tenants Major Anchor 20% (Over 60K sq. ft.) 42% Junior Anchor (10K 60K sq. ft.) Mid Tier Stores 11% (5K 10K sq. ft.) Local Small Shops 14% (<5K sq. ft.) Tenant Type % by Leased GLA Major Anchor 34% Junior Anchor 45% Mid Shops 8% National Small Shops 7% Local Small Shops 7% 13% National Small Shops (< 5K sq. ft.) 13

14 Small Shop Space Lease-Up Initiatives Fast Track Franchise Program Franchisors pre-approve Kimco locations Kimco then markets to prospective franchisees Utilize website ( signage, blog posting, & franchise industry events as marketing tools 21 chains are currently signed up KEYS Program Business incubator program for qualified startup entrepreneurs initiated in April 2012 in California Participant benefits: One year of free rent, Affordable property charges (NNN) to minimize initial overhead, Access to personal Kimco retail business counselors A flexible four-year lease option after the first year Access to shop space in established retail centers Prospecting candidates through colleges, Small Business Administration (SBA) programs, and local chambers of commerce 300 units less than 2,500 square-feet are available Since first quarter of 2011, small shop occupancy has increased by 120 basis points 14

15 U.S. Shopping Center Categorization By ABR Power Center 5.4% Other 5.4% Grocery Anchored: 40% Centers with food component: 17% Total: 57% Power Center (with food component) 12.5% Neighborhood & Community Center 33.4% Neighborhood & Community Center (grocery anchored) 39.1% Food Component Includes: Neighborhood & Community Center (with food component) 4.2% 15

16 U.S. Strategic Assets Demographic & Financial Profile Strategic Assets account for 92% of Annual Base Rent (ABR) Demographic Profile Within a 3-Mile Radius Number of Sites Occupancy ABR PSF Total Population Median House Hold Income (MHHI) Market Data at MSA Level MHHI KIM Above MSA MHHI Strategic % $ ,053 $69,466 $60, % Non-Strategic % $ ,835 $57,542 $57, % Total Assets % $ ,205 $68,502 $60, % Mesa Riverview Mesa, AZ Timonium Square Timonium, MD Note: Demographics do not include Puerto Rico sites. 16

17 U.S. Growth Profile: Quality Over Quantity Active Asset Recycling Program Disposition of Non Strategic Assets Located in secondary/tertiary markets Limited growth potential Stubborn Vacancy Sold 53 shopping centers for approx. $290M since Sept Kimco Investor Day Invest $$$$ Acquisition Focus Targets Grocery or national big box anchored centers Emphasis on strong tenancy and rollover Largest MSAs: Higher CAGR, Barriers-to-entry, Value creation through redevelopment, strong demographics & growth estimates Acquired 37 shopping centers for approx. $768M since Sept Kimco Investor Day Garden State Pavilions, NJ Acquired in June 2011 Disposed Sites Acquired Sites Number of properties GLA (000 s) 3,499 3,942 Occupancy % 82.3% 94.3% ABR per square foot $9.14 $12.44 Estimated Population 77,313 82,296 Household Density 1,066 1,125 Median Household Income 55,143 66,992 Average Household Income 66,475 81,214 17

18 Improving Tenant Profile Through Active Recycling Top Ten Tenants Acquisitions (Sept Current) Top Ten Tenants Dispositions (Sept Current) Tenant Name # Occupied GLA (000 s) ABR (000 s) Credit Ratings (S&P/Moody s) Publix Supermarkets $1,287 NR Michaels ,267 B / B2 Ross Stores ,146 BBB+ / NR Shoprite ,143 NR Academy Sports ,093 NR Royal Ahold ,081 BBB / Baa3 Kohl s BBB+ / Baa1 Kroger Company BBB / Baa2 TJX Companies A / A3 Wal-Mart AA / Aa2 Top Ten Tenants 31 1,178 $10,404 Tenant Name # Occupied GLA (000 s) ABR (000 s) Credit Ratings (S&P/Moody s) Jo-Ann Stores 2 89 $779 B / B2 Hannaford Bros NR Hobby Lobby NR General Motors BB+ / Ba1 Global Fitness NR TJX Companies A / A3 Super United Furn NR Sears Holdings CCC+ / B3 Raley s NR Lamb s Thriftway NR Top Ten Tenants $5,537 * Occupied GLA & ABR are shown at pro-rata interest. 18

19 U.S. Recent Acquisition Profile Garden State Pavilions in Cherry Hill, New Jersey GLA: 257, 378 square feet Metropolitan Statistical Area (MSA): Philadelphia-Camden-Wilmington Anchor Tenants: Petco, Ross Dress for Less, ShopRite, Staples Demographics: Total Population 145,993 Avg. HH Income $79,016 Med. HH Income $66,576 GLA: 105,530 square feet Metropolitan Statistical Area (MSA): Baltimore- Towson Anchor Tenant: Giant Food Demographics: Total Population 106,065 Avg. HH Income $82,359 Med. HH Income $64,820 Centre Court in Pikesville, Maryland 19

20 U.S. Recent Acquisition Profile College Park in Tempe, Arizona GLA: 62,285 square feet Metropolitan Statistical Area (MSA): Phoenix-Mesa-Scottsdale Anchor Tenant: Whole Foods Market Demographics: Total Population 135,858 Avg. HH Income $68,887 Med. HH Income $56,545 GLA: 245,457 square feet Metropolitan Statistical Area (MSA): New York-Northern New Jersey- Long Island Anchor Tenant: Home Depot, King Kullen Demographics: Total Population 101,807 Avg. HH Income $102,469 Med. HH Income $88,295 Independence Plaza in Selden, New York 20

21 Increasing Portfolio Value Through Redevelopment Property Name City State Opportunity Projects estimated completion in 2012 Springfield S.C. Springfield PA Demolished Value City & built new Giant Food; in process of adding outparcel Investment Incremental ($M) NOI ($M) $12.4 $1.3 Metro Crossing Council Bluffs IA Construction of TJX & Ulta; Multi-tenant building w/ Panera Bread West Farm S.C Farmington CT Redevelopment of vacant Linens box for Nordstrom Rack Oakwood Plaza North Hollywood FL Demolish Barnes & Noble and replace with Sports Authority; Expand BJ s Wholesale Center at Baybrook Webster TX Ground up Buybuy Baby project Wexford Plaza Pittsburgh PA Convert six small shop spaces into Whole Foods Cypress Towne Center Houston TX Proposed anchor project and small shop space Mesa Riverview Mesa AZ Redevelopment / rebranding of existing movie theater district Projects estimated completion in 2013 and thereafter Elsmere Square Elsmere DE Demolish existing Value City and build new BJs Wholesale & Fuel Island Subtotal for 2012 $52.0 $ Richmond S.C. Staten Island NY Redevelop existing Kmart for new Target Forest Avenue S.C. Staten Island NY Demolish former National Wholesale Liquidators & construct a new Stop & Shop Miller Road Miami FL Demolish & rebuild of existing Publix & in-line Walgreens Pompano Beach Pompano Beach FL Demolish anchor space to build new specialty grocer & national sporting goods retailer Wilde Lake Columbia MD Residential & retail redevelopment including vacant anchor Subtotal for 2013 & thereafter $46.9 $6.7 Grand Total $98.9 $

22 Increasing Portfolio Value Through Redevelopment Future Redevelopment Projects Center Name City State Owings Mills Mall Camden Square Promenade at Christiana Tri-City Plaza Palm Beach Gardens Renaissance Centre North Brunswick Plaza Airport Plaza Manhasset Center Owings Mill Dover New Castle Largo West Palm Beach Orlando North Brunswick Farmingdale Manhasset MD DE DE FL FL FL NJ NY NY Westlake S.C. Daly City, CA Additional outlot opportunities: $11.2M investment resulting in $4.2M incremental NOI Estimated spending of approximately $200M 22

23 U.S. Category Exposure % Category Exposure by Gross ABR % & Gross GLA % Approximately 92% of portfolio with limited Internet exposure ABR GLA Hardlines Service Related Supermarkets 6.2 QSR & Casual Dining Major Discounters Offprice/ Dollar Stores 5.9 Apparel & Footwear 3.9 Financial Services Pharmacies & Drug Stores 0.5 Telecom % Hardline Subcategories Exposure by Gross ABR % & Gross GLA % 8.0 ABR 7.0 GLA Limited internet exposure Home Furnishings Home Improvement Sporting Goods Stores Pet & Pet Supply Stores Computers & Electronic Appliances Office Supplies Hobby, Toys & Game Stores Books & Video Stores Cosmetics/ Fragrances Gift/Novelty/ Souvenir Stores Auto/Auto Parts Sewing/ Needlework/ Piece Goods Optical Goods Stores Flower/ Cards Jewelry Stores Other 23 23

24 Steps to Address Internet Exposure Own Quality Real Estate: continue to build portfolio that includes centers that have sustainable retail use or has potential to be reconstituted into more valuable uses. Dispose marginal assets Quality includes A properties in A markets, and B+/B markets that maintain competitive advantages in local trade area Acquire centers with no at-risk retailers or concepts Quality Retailers: focus on properties with tenants best suited to withstand or benefit from e-commerce impact Bias for dominant players who will be the winners in capitalizing on omni-channel strategies Essential use, food, personal service, unique/boutique tenancies Use Social Media: deliver tools and technology to benefit tenants Use facebook, twitter, and other media tools to enhance shopping experience Align programs with national retailers Support small tenants Kimco social media sites: blog.kimcorealty.com

25 Corporate RESPONSIBILITY Initiative Focused on Reducing Our Environmental Footprint Program Objectives Enhance Kimco s environmental & economic performance by: Reducing operating expenses Proactively addressing regulatory & other risks Improving tenant satisfaction & loyalty Developing additional sources of income & enhancing the value of our portfolio Enhancing our reputation as an industry leader in sustainability Westlake Shopping Center Daly City, CA North Brunswick Plaza North Brunswick, NJ Key Initiatives Utility Management Building Controls (EMS) Lighting Efficiency Smart Irrigation Integrated Waste Management Solar Energy Production RETHINK RENEW RESTORE 25 25

26 International Portfolio Overview Faubourg Boisbriand Boisbriand, Quebec, Canada

27 Key Differentiator: International Exposure First Mover Status Has Positioned Kimco as a Strong International Player 135 shopping centers totaling 24.8M /15.5M sq. ft. (gross/pro-rata) Canada, Mexico, Chile, Brazil and Peru High quality portfolio of assets resulting in solid tenant line-up, good mix Canada remains key element of international portfolio Mexico and Latin America Long-term investment opportunity U.S.-based retailers, such as Wal-Mart and Home Depot, extending their reach Leveraging established local relationships to add value 27

28 Canada Market Overview 2012 Economic Outlook GDP Projected growth of 2.0% in 2012 Inflation Forecast inflation rate of 2.2% Interest Rates Bank of Canada overnight lending rate forecast to remain at 1.0% Unemployment Forecast average unemployment rate of 7.2% Exchange Rate Forecast to range between $0.99 CAD/USD and $0.98 CAD/USD for 2012 Retailer Trends New entrants continuing to explore Canada strategy include: Target has acquired 220 Zeller leases. 83 Target stores are confirmed to open in March/early April 2013, additional stores will be announced in next several months. Wal-Mart will take 39 of the additional locations. *Kimco has 15 Zellers with 9 being converted to Target and one Super Wal-Mart 28

29 Canada Portfolio Overview Canada Remains Key Element of International Portfolio Portfolio Snapshot Entered Canadian market via JV partnership with RioCan in 2001 Stable portfolio of 65 shopping centers 12.2M / 6.7M sq. ft. (gross/pro-rata) ABR per sq. ft. of $15.58 (pro-rata) Other portfolio metrics 96.4% Occupancy (pro-rata) 4.6% SS NOI for 1Q12 Total leasing spread trailing 12 months 22.0%; new leases 10.9% and renewals/ options 24.1% Tenant Exposure 5.0% 4.9% 4.4% 4.0% 3.0% 2.0% 3.1% 2.7% 2.6% 2.6% 2.4% 2.4% 2.3% 2.1% 1.0% 0.0% Approximately 30% of Canadian Annual Base Rent is Diversified Across Top 10 Tenants High Quality Domestic and International Retailer Relationships 29

30 Mexico Market Overview 2012 Economic Outlook GDP Forecast to grow at 3.4% in 2012; moderate growth but exceeding other advanced economies Inflation Forecast to be 4.0% in 2012; continues to be one of the most stable rates in Latin America Interest Rates Benchmark lending rate forecast to remain at 4.5% Unemployment Forecast to average 5% in 2012; 600K new jobs predicted Exchange Rate Forecast to average $13.00 for 2012 Retailer Trends Existing retailers look to strengthen their position: Retailers actively expanding around the country: Looking to become an active brand in Mexico: 30

31 Mexico Investment Drivers Favorable Demographics Strong Demand Limited Supply Growing Consumption Opportunistic Returns 12 th largest global economy; projected to be 5 th largest by M people expected to grow 1.2% annually; median age of 26 Expanding middle class Rapidly growing consumer market driven by demographics, stable economy, access to consumer credit Major retailers continue aggressive expansion plans Wal-Mart: 300 units in 2011 Mexico under retailed ~3.9 sq. ft. per capita vs. U.S sq. ft. ~800 shopping centers; heavily concentrated in large urban areas (vs. 110k in U.S.) Consumer credit, healthy banking sector will continue to grow purchasing power Consumer spending per capita expected to increase by 48% by th largest American Express user in the world Attractive returns compared to U.S; Targeting 12 14% stabilized NOI yield on cost in Mexico All leases include annual cost of living adjustments Percentage rent clauses in many leases provide additional upside Tijuana Monterrey Guadalajara Cancun Kimco Shopping Centers Mexico City 31

32 Mexico Portfolio Overview Portfolio Snapshot 55 Shopping Centers Totaling 11.8M sq. ft. Portfolio Occupancy: 85.0% (pro-rata) Operating & Stabilized: 89.8% (pro-rata) Pending Stabilization: 74.0% (pro-rata) Completed Pending Lease-Up: 77.0% (pro-rata) $780M invested to date $680M 55 shopping centers $ 12M Mexico Land Fund $ 88M American Industries All leases have cost of living increases Percentage rent clauses in many leases provide additional upside Solid partnerships with 6 leading local developers Over 96% of retail GLA is located in centers with grocery anchor Tenant Exposure 21 leases; 2.3M sq. ft. (7.8% ABR) 14 leases; 0.7M sq. ft. (4.6%) 8 leases; 0.7M sq. ft. (4.3%) 12 leases; 0.5M sq. ft. (2.6%) 6 leases; 0.6M sq. ft. (1.6%) 4 leases; 0.4M sq. ft. (1.3%) 3 leases; 0.3M sq. ft. (1.0%) 32

33 Mexico Growth Profile Centro Sur Guadalajara, JA Stabilized Yield (2014) 11% - 12% 33

34 Investment Management Platform Sunset Valley Marketfair Austin, TX

35 Strategy and Overview Investment Management Business Leverages Core Competencies to Create Long-Term Shareholder Value Expertise Creativity Strong Relationships Building on 50 years retail real estate experience, formed Investment Management business in properties totaling 43.0M sq. ft. $10.4B in assets under management Kimco ranked #19 among largest real estate investment managers* Provides access to a low cost of capital Allows us to remain competitive in acquiring high-quality retail properties Enhances ROE through long-term, recurring asset and property management fees Leveraging experience to build and expand upon mutually advantageous relationships with large, sophisticated & high-quality domestic & foreign partners 14 different co-investment programs 24 institutional partners Favorable Trends Emerging Institutional investors confidence in all investment classes has improved on a global basis According to recent a survey of foreign institutional investors, the U.S. real estate market offers a stronger investment opportunity for investors money then it has in the last 10 years (Source: AFIRE; Jan 2011) Improved investor confidence amid improved results has led to investors seeking partnership with Kimco * Source: Pensions & Investments,

36 Sources of Capital Pros Cons Common Equity Flexible source of capital Expensive to raise Debt (Bonds & Mortgages) Cheap source of capital Limited practical use priority in capital structure and bondholder protections Equity From Limited Partners Attractive source of capital Willingness on behalf of investors to pay for management expertise Less expensive than common equity but results in shared ownership 36

37 Income Fee Structures Recurring Non-Recurring Competitive Advantage: In-house Operating Platform Asset ( bps) Property Mgmt. 4% 5% Lease Commission Var. ~ $3/sq. ft. Acquisition bps Disposition bps Construction Mgmt. 2.5% 5.0% Finance Sourcing (25 50 bps) KIM s ROIC * Hurdles 9% - 20% Potential Upside* 15% - 25% Management fee income of $35M in 2011 is expected to increase by approximately 30% in next three years *ROIC Return on Invested Capital * Varies based on Promoted IRR 37

38 Governance Structure Partnership Structure Partners share in major decisions Buying, selling and financing Approving annual business plans/deviations and major leases Capital calls are funded by partners on a pro rata basis Exit Mechanisms Buy / sell provision allows either partner to initiate an offer Mutual agreement to sell Some fund vehicles may have stated life third party or negotiated sale at end of life Risk Management No puts to Kimco No Kimco guarantees of debt for joint ventures No preferred returns to partners Non-recourse, non-cross collateralized property-specific debt Debt service coverage of 1.5x or better 38

39 Direct to Retail Investment Opportunities Alamosa Plaza Las Vegas, NV

40 Key Differentiator: Strong Retailer Relationships Ability to Act Opportunistically with Retailer-Controlled Real Estate Remain focused on working directly with retailers on: Sale leasebacks Bankruptcy transactions Property dispositions Current economic environment coupled with strong retail relationships should continue to yield profitable investment opportunities Decades of retail property experience and financial acumen resulting in solid track record of unlocking value Has Led to Long History of Value Creation 40

41 Financial Highlights & Strategy Hamden Mart Hamden, CT

42 EBITDA Composition Retail Shopping Center Flows Grow from 83% in 2008 to a Projected 99% in 2014 Where We Were 2008 Where We Are 2012 Where We Are Going 2014 Non-retail Inv. 17% Non-retail Inv. 3% Non-retail Inv. 1% Mgmt. Fee Income 5% Mgmt. Fee Income 4% Canada 6% Canada 7% 83% 97% 99% Latin America 4% Latin America 7% Mgmt. Fee Income 4% Canada 7% Latin America 9% U.S. Centers 68% U.S. Centers 79% U.S. Centers 79% 42

43 Recurring Retail Earnings Growth Consistently growing recurring retail earnings 2011 grew by 6.9% Over 95% of recurring earnings contribution in 2012 will be from retail Recurring retail earnings have a CAGR of over 8% from 2005 to 2011 * Forecasted 43

44 Non-Retail Assets Non-retail Plan Monetize ~$485M of remaining assets by the following: As of 03/31/12 Book Value of Non-retail Assets Monetized over $500M since 2008 Urban portfolio assets being marketed for sale $194M 1.20 New York, Philadelphia & Chicago Working on sale of InTown Suites $89M Second round of bidding Three qualified bidders Sale anticipated by end of 2012 Continued sales of non-retail preferred equities Evaluating positions in marketable securities for disposal $74M $35M $ Billions (% of gross assets) * Anticipating repayment of Mortgage Financing Receivables $57M 0.20 Repayment expected on healthcare facility in E *As of 03/31/12 44

45 Improving Balance Sheet Strength Solid Improvement since /31/08 12/31/11 03/31/12 Gross Assets $10.6B $11.3B $11.5B Unencumbered Assets (416 properties*) $8.7B $9.2B $9.6B Debt / Gross Assets 43.2% 36.4% 33.9% Consolidated Market Cap: $13.2B* 9% Mortgage Debt 7% Preferred Stock 2% Non-controlling Ownership Interests Debt/ Total Market Cap (Book) 0.53 : : :1 Debt / Equity (Book) 1.12 : : :1 Net Debt /EBITDA, as adjusted 8.3x 6.2x 5.4x Debt Service Coverage 3.1x 3.4x 3.3x Fixed Charge Coverage 2.6x 2.7x 2.6x FFO Payout Ratio 77.7% 56.7% 61.3% Investment Grade Ratings: S&P: BBB+ Moody s: Baa1 Fitch: BBB+ 25% Unsecured Debt 57% Market Equity Shares Strong balance sheet ensures ready access to capital markets *As of 03/31/12 45

46 Well Staggered Debt Maturity Profile Consolidated Debt Debt in Millions % 17.1% 13.0% 11.7% 15.1% 12.0% 12.1% 8.3% Weighted Avg. Fixed Rate: 5.80% Weighted Avg. Floating Rate: 3.53% % 0.6% 0.0% Thereafter Secured Unsecured Kimco Share Joint Venture Debt 700 Weighted Avg. Fixed Rate: 5.71% Debt in Millions % 10.1% 8.1% 13.8% 17.9% 20.1% Weighted Avg. Floating Rate: 2.97% 6.3% 5.1% % 1.9% 1.4% Thereafter Secured Unsecured Note: Percentages represent what is maturing as a % of the total debt stack 46

47 Capital and Balance Sheet Strategy Timonium Square Timonium, MD Growing free cash flow (after common dividends) for investment and debt reduction Continue to improve balance sheet metrics Net Debt/Recurring EBITDA targeted at 6.0x by 2012 Stable fixed charge coverage Maintain a strong liquidity position $1.75B available of unsecured line of credit Large unencumbered asset pool Repay existing secured debt of $525M through 2015 Maintain investment grade ratings Monetize Non-retail and Non-strategic Assets 47

48 2012 Guidance FFO ($ in millions) FFO $/ Diluted Share F F Recurring: Retail $ 860 $ 900 $ 925 $ 2.10 $ 2.19 $ 2.25 Non-Retail Financing Costs (285) (300) (306) (0.69) (0.73) ( 0.75) G&A (119) (120) (124) (0.29) (0.29) ( 0.30) Other (7) (9) (13) (0.02) (0.02) ( 0.03) Total FFO, as Adjusted $ 490 $ 498 $ 517 $ 1.20 $ 1.22 $ 1.26 Transactional Income, Net * $ 523 $ 498 $ 517 $ 1.28 $ 1.22 $ 1.26 Debt Extinguishment FFO Before Impairments $ 523 $ 498 $ 517 $ 1.28 $ 1.22 $ 1.26 Impairments (5) - - (0.01) - - FFO (1) $ 518 $ 498 $ 517 $ 1.27 $ 1.22 $ 1.26 (1) Reflects the potential impact if certain units were converted to common stock at the beginning of the period * Includes normal course of business events such as outparcel sales, acquisition fees and other transactional events Reconciliation of FFO to Net Income Available to Common Shareholders: ($ in millions, except per share data) F 2011** 2012F** FFO $ 518 $ 498 $ 517 $ 1.27 $ 1.22 $ 1.26 Depreciation & amortization (247) (246) (254) (0.61) (0.60) (0.62) Depreciation & amortization real estate joint ventures (2) (139) (136) (144) (0.34) (0.33) (0.35) Gain on disposition of operating properties Gain on disposition of joint venture operating properties (2) Remeasurement of derivative instrument (4) - - (0.01) - - Impairments of operating properties, net of tax (2) (41) (10) (10) (0.10) (0.03) (0.03) Net income available to common shareholders $ 110 $ 134 $ 149 $ 0.27 $ 0.33 $ 0.36 (2) Net of noncontrolling interests ** Reflects diluted per share basis Certain reclassifications of prior year amounts have been made to conform with the current year presentation 48

49 The Kimco Difference Largest owner/operator/investment manager of U.S. shopping centers with 50 years of history, retailer relationships, leasing expertise and redevelopment experience U.S. shopping center portfolio growth from occupancy increases, recapture/re-tenanting of below market leases, and redevelopment programs Strong balance sheet and related credit ratings with excellent liquidity, access to capital and banking relationships International platform with incremental earnings from strong Canadian market and lease-up of Mexico development portfolio Retail operating partner of choice for large, blue chip domestic and international pension funds and insurance companies Proven opportunistic investor in retail real estate owned by U.S. retailers through structured sales leaseback and purchase transactions 49