Kimco Realty (KIM) BofA Securities 2025 Global Real Estate Conference summary

Opening remarks and business overview

• Largest owner/operator of open-air grocery-anchored shopping centers, focused on high-barrier, first-ring suburban markets in the Sun Belt and Coastal States.

• 86% of annual base rent (ABR) comes from grocery-anchored centers; 91% of portfolio in strong demographic corridors.

• Strategy centers on necessity-based retail, disciplined balance sheet, national scale, and creative capital allocation.

• No slowdown in leasing velocity; retailers accelerating deals to secure space in high-performing centers.

• Record high small shop occupancy at 92.2%, with further upside expected due to broad-based tenant demand.

Leasing, occupancy, and tenant demand

• Recent deals include a five-store Sprouts package executed in under a month and multi-site TJ Maxx deals in 10 days.

• Over 90% of vacated boxes from bankrupt tenants backfilled at large double-digit rent spreads.

• $66 million sign-but-not-open pipeline, with 88% commencing by end of next year, supporting future cash flow growth.

• Anchor occupancy is 150 basis points below historic high, offering quick recapture potential.

• Small shop occupancy at all-time high, with significant upside as anchor vacancies are filled.

Technology and operational efficiency

• Technology investment, including Salesforce and generative AI, enhances leasing, marketing, and operational efficiency.

• AI used for lead generation, marketing, legal document review, and deal execution, compressing deal timelines.

• G&A expenses have remained flat despite acquisitions and growth, reflecting operational efficiency.

• No incremental cost for AI initiatives currently, but spending expected to rise next year.

• Early AI impact seen in marketing and leasing; further synergies anticipated across departments.