Kimco Realty (KIM) Nareit REIT Week: 2024 Investor Conference summary

Leasing and tenant demand

• Retail leasing demand remains robust, with retailers eager to secure space amid historic low vacancy rates and limited new supply.

• Pricing power is evident in new leasing and renewal rates, with anchor spaces over 98% occupied and small shop occupancy above 91%.

• Small shop categories are expanding, especially in services, health, and beauty, driving future growth with a record-high signed-but-not-open pipeline.

• Bankruptcy-driven lease recapture is now an opportunity, as below-market leases are quickly acquired by new or expanding retailers.

• The retail environment is described as healthy, with a "quiet revival" not yet fully reflected in public markets.

Operational efficiency and growth pipeline

• Efforts to expedite tenant openings have compressed the signed-but-not-open pipeline, accelerating cash flow.

• The pipeline stands at $63 million, with $25–$30 million expected to convert to cash flow in the year, supporting future same-store NOI growth.

• Scale advantages allow for faster permitting, construction, and procurement, helping to beat internal projections.

• Watchlist tenants have decreased, with most risk concentrated in legacy Retail 1.0 tenants; best-in-class retailers are now omni-channel focused.

• Recapturing underperforming space is managed through negotiations and leveraging a waitlist of interested tenants.

Portfolio integration and strategic acquisitions

• Recent RPT acquisition integration is ahead of schedule, with synergy guidance raised and cost savings realized faster than expected.

• Focus is on raising occupancy and unlocking redevelopment potential, especially in high-growth markets like Miami.

• Non-core, low-growth assets were sold to concentrate on higher-growth opportunities.

• Mixed-use redevelopment, including multifamily densification, is a long-term value driver, with nearly 10,000 apartment units entitled.

• Integration playbook emphasizes people and systems, with rapid onboarding and full operational integration.