Kimco Realty (KIM) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Opening remarks and strategic focus

• Largest open-air grocery-anchored shopping center operator in the U.S., focused on first-ring suburbs and maximizing asset value through entitlements and platform enhancements.

• Sector benefits from historically low new supply, with only 0.3% of existing stock under construction, driving strong demand and multiple bids for available spaces.

• Emphasis on everyday essentials and convenience, with a merchandising mix that includes grocery and off-price 'treasure hunt' anchors to drive cross-shopping and traffic.

• Small shop space is shifting toward services and medical uses, increasing tenant stickiness and capital investment.

• Data analytics show that combining grocery and off-price anchors significantly boosts traffic and asset vibrancy.

Financial performance and portfolio management

• Achieved 5% FFO growth last year, one of only two REITs in the sector to do so, leveraging scale and operational efficiency.

• Upgraded portfolio through repositioning, focusing on top 20 metro markets and completing a major disposition program.

• 10% of annual base rent comes from flat ground leases with major credit tenants, providing a stable capital pool for redeployment.

• Entitlement program has activated 3,000 apartments and secured rights for 12,000 units, with options to sell, ground lease, or joint venture these entitlements.

• Apartments built on shopping center land command premium rents due to superior amenity offerings.

Market dynamics and supply outlook

• Retail sector faces virtually no new supply, with more demolitions than new construction; new development requires rents to rise over 60% to justify costs.

• New retail projects are rare and often require community subsidies; shadow supply from bankrupt tenants is closely managed.

• Bankruptcy auctions are highly competitive, with retailers willing to pay premiums for existing leases due to lack of quality retail space.

• Watchlist tenants are mostly repeat bankruptcy filers, and the sector is at all-time low vacancies, making backfilling easier.

• Aggressive demand from expanding retailers, especially specialty grocers and off-price concepts, for spaces vacated by bankrupt tenants.