KIMCO S 2020 VISION JEFFERIES 2016 CONSUMER CONFERENCE 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
3 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, 3.5% yield at 3/31/16 Retail Portfolio Footprint 550 U.S. properties totaling 88M sf 36 States and Puerto Rico Occupancy (1) 3/31/16: 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 3/31/2016 (1) Pro rata
HISTORY OF SOLID PERFORMANCE TOTAL SHAREHOLDER RETURN & DIVIDEND GROWTH Since IPO (1) 11/29/91 3/31/16 13.6% Dividend Growth $1.02* 9.4% 10.3% $0.84 $0.90 $0.96 $0.72 $0.76 $0.64 S&P 500 DJIA KIM 2010 2011 2012 2013 2014 2015 2016 *Current quarterly dividend annualized (1) Source: Bloomberg 4
TOP 30 MARKET SUMMARY: UNMATCHED DIVERSITY Highest Concentration by ABR Source: Green Street Advisors 5
TENANT PROFILE: UNMATCHED DIVERSITY Top Five Tenants Tenant % of ABR % of GLA 3.3% 4.1% 2.5% 3.6% 9,500 leases with 4,600 tenants Well staggered lease maturity with limited rollover in any given year; averages ~8% of GLA over next 10 years 2.0% 2.0% 1.9% 2.3% 2.0% 2.4% 4 of the top 5 and 7 of the top 10 tenants are Moody s investment grade Tenant diversity; exposure to any one tenant no more than 3.3% of total ABR As of 3/31/2016 6
7 CASE FOR OPEN-AIR REAL ESTATE: TODAY S MARKET High Demand Low Supply 12% Shopping Center Supply Growth (GLA) (1) Planned Retailer Store Openings (2) 10% 8% 6% 4% 2% 0% (1) Green Street Advisors January 2016 (2) RBC Capital Markets, Retail REITs: March 2016 National Retailer Demand Monthly (NRDM) March 2016
$1.20 $1.27 $1.26 $1.25 $1.33 $1.35 $1.40 $1.45 $1.46 $1.56 8 CASE FOR OPEN-AIR REAL ESTATE: MULTI-YEAR HIGHS AND CONTINUED GROWTH IN OPERATING METRICS Occupancy Annual New Leasing Spreads 93.1% 93.9% 94.9% 95.7% 95.8% 95.8% 27.8% 15.6% 19.5% 25.0% 19.1% 3.6% 4Q11 4Q12 4Q13 4Q14 4Q15 1Q16 2011 2012 2013 2014 2015 1Q16 Funds From Operations Rent Per Square Foot $13.74 $14.46 $14.67 $12.58 $12.99 $11.91 2011 2012 2013 2014 2015 Recurring FFO Headline FFO 4Q11 4Q12 4Q13 4Q14 4Q15 1Q16
SWEET SPOT OF RETAILING Market Cap ($B): Off-Price Retailers vs. Department Stores Ross Stores $23.8 Sears $27.3 JC Penney $18.9 Dillard's $2.8 Since 2007, off-price retailers like TJ Maxx and Ross Stores have more than doubled their market cap and today, exceed the total market cap of the major department store names. TJX Companies $51.6 Nordstrom $14.6 Sears $1.7 JC Penney $3.0 Dillard's $2.5 Ross Stores $4.5 TJX Companies $13.4 Macy's $20.8 Nordstrom $8.9 Macy's $12.4 Source: Bloomberg 2007 Q1 2016 2007 Q1 2016 Off-Price Retailers Department Stores 9
10 U.S. SHOPPING CENTER PROFILE: By GLA By Annual Base Rent Local Small Shops(< 5K sq. ft.) 7% of GLA National Small Shops (< 5K sq. ft.) 8% of GLA Mid Tier Stores (5K 10K sq. ft.) 9% of GLA Anchors (> 10K sq. ft.) 76% of GLA 13% 16% 12% 59% Small Shops provide: Higher rent PSF Shorter term which keeps pace with current market Avg. RPSF = $25.49 Anchors provide: Solid credit quality Stability Mark to market opportunities Avg. RPSF = $11.32 Over 70% of ABR Comes from Grocery Anchored Shopping Centers
BUILDING BLOCKS OF GROWTH THE ROADMAP TO MULTIPLE GROWTH LEVERS NOI Growth Walk Through 2020 Organic Growth: Leasing & Value Creation: Redevelopment: Ground-Up Development: Targeted Annual Growth Rate: 140-165 bps 110-160 bps 100-150 bps 85-110 bps 435-585 bps 11
$ABR/SF 12 BUILDING BLOCKS OF GROWTH VALUE CREATION FROM ANCHOR EXPIRATIONS $20 Anchor Lease Spreads/Mark To Market $18.51 $18 $16 $14 $12 $12.53 $15.50 +38% $14.42 +44% $15.56 +48% +60% Mark to Market Spread on Anchor Leases: +58% 105 Naked Leases expiring through 2018 totaling 1.7M sf 4 Kmart Leases expiring through 2018: 650% below market $10 $8 +35% $11.27 $10.05 $9.28 $11.65 $10.51 2013 Actual 2014 Actual 2015 Actual 2016-18E 2019E & After Total Average RPSF up 29% since 2010 New Rent Expiring Rent - - - Projected Rent
BUILDING BLOCKS OF GROWTH REDEVELOPMENT PIPELINE Total Pipeline $3.0B+ Current ~$1.0B Gross Costs $1.0B Projected NOI $80M Value Creation $550M Shadow $2.0B+ Major shopping center redevelopments Anchor tenant redevelopment Pads & outparcels Additional phases on prior redevelopments Mixed-use Incremental Return 8%-13% Retail Redevelopment: 9% Mixed-Use/ Residential: 6% 13
BUILDING BLOCKS OF GROWTH SELECTIVE GROUND-UP DEVELOPMENT Pipeline 2015-2020 $740M Projected ROIC 7% - 9% Dania Pointe, Dania Beach, FL Development Projects Grand Parkway Marketplace; Houston, TX Promenade at Christiana; New Castle, DE Dania Pointe, Dania Beach, FL Owings Mills, Owings Mills, MD Risk Management 75% Pre-leased to build Phased construction Experienced team 14 14
INVESTMENT STRATEGY AT WORK QUALITY TRANSFORMATION Since 2010* Disposed Acquired Number of U.S. Properties 340 201 Gross GLA 33M 27M Gross Price ($B) $3.1 $5.4 +78% Pro-rata Occupancy % 90.6% 95.8% +520 bps Pro-rata ABR/sq. ft. $9.11 $14.63 +61% Average Household Income $68,800 $89,400 +30% Population 77,485 89,842 +16% Improved Occupancy Stronger Strategic Markets Improved Demographics *Reflects transactions since Investor Day 2010 through 3/31/2016. Note: Demographics are weighted by pro-rata ABR within a 3-mile radius 15
16 SIGNIFICANT IMPROVEMENT IN CREDIT METRICS 90% 80% 70% 60% 50% Consolidated NOI % 85.3% 85.9% 87.6% 80.5% 72.7% 60.8% $1,000 $800 $600 $400 Unencumbered Consolidated NOI 89.1% 90.1% 82.4% 80.4% 76.2% 76.9% $200 2010 2014 2015 2016 2017 2018 2010 2014 2015 2016 2017 2018 % of Consolidated NOI Unencumbered Encumbered % Unencumbered Net Debt/ Recurring EBITDA Debt Coverage Metrics 8.5x 5.0x 7.5x 4.0x 6.5x 5.5x 4.5x 6.3x 6.0x 5.8x 5.5x 5.6x 5.4x 2010 2014 2015 2016 2017 2018 3.0x 2.0x 1.0x 3.5x 3.2x 3.3x 3.3x 3.0x 2.8x 2010 2014 2015 2016 2017 2018 Consolidated Pro-Rata W/ Preferreds Fixed Charge Debt Service
17 SUMMARY: WHY KIMCO High-quality assets in major metro markets Solid demographics and operational metrics Unmatched diversity in geography and tenant base Growth embedded in portfolio through leasing and redevelopment/ value creation Strong balance sheet and related credit ratings with excellent liquidity 50+ years in retail real estate with deep retailer relationships