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Investor Presentation
Timonium Square Timonium, MD
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.
Safe Harbor
Mesa Riverview Mesa, AZ
North America’s Largest Owner & Operator of
Neighborhood & Community Shopping Centers.
Redhawk Towne Center Temecula, CA
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 930 properties; 136.2M / 88.6M sq. ft. (gross/pro-rata)
Geographic Footprint 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
Capitalize on 50 Year History, Size/Scale and Strength of Retailer Relationships
5
Continue to strengthen balance sheet
Lease-up of Latin America portfolio
Sell non-retail assets
Value creation through redevelopment
Opportunistic Retail Investments
Active Asset Recycling Program
Vision: The Premier Owner and Operator of Shopping Centers
• Virtually no ground up development supply being absorbed
• Return of growth-focus poised to increase store count in power centers vs. regional malls in 20121
6
1 ISI Group, “Real Estate Research: More Confident in Power Center Demand Following ICR XChange 2012” January 2012. 2 RBC Capital Markets, “Retail REITs: May National Retailer Demand Monthly (NRDM)” May 2012.
3CoStar Group. “The State of Commercial Real Estate Industry: Year-End 2011 Retail Review & Outlook” 2012.
• Strong balance sheets
• Right-sizing of store size & relocating low-performing stores
• 71,539 store openings scheduled over the next two years2
Retail Real Estate
Decrease in Retail Development3 Supply Growth by Center Type3
The Case for Retail Real Estate: Today’s Market
Healthier Retailers
The Case for Retail Real Estate: Historical Perspective
7
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%
Kimco U.S. Historical Occupancy
Industry Benchmark Occupancy
84.0%
86.0%
88.0%
90.0%
92.0%
94.0%
96.0%
98.0%
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
Lowest Occupancy
91.8%
Highest Occupancy
96.2% Average
Occupancy 93.5%
84.0%
86.0%
88.0%
90.0%
92.0%
94.0%
96.0%
98.0%
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12
Lowest Occupancy
89.8%
Highest Occupancy
94.0% Average
Occupancy 91.5%
8
• 65 centers • 12.2M / 6.7M sq. ft.
(gross / pro-rata) • $15.58 per sq. ft. • 96.4% occupancy • Top tenants:
TJ Maxx Canadian Tire Target
Note: USD$ 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.
• 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
Geographic Footprint of Quality Assets
Canada United States Mexico
• 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
Faubourg Boisbriand Boisbriand, Quebec, Canada
Long Gate S.C. Ellicott City, MD
Magnocentro 26 Huixquilucan, EM
9
Why Kimco?
• Geographically diversified • Redevelopment program • Asset recycling
Resilient Portfolio
Solid Tenant Mix
• Credit quality • Low single tenant exposure
Necessity vs. Specialty
• Well-balanced between grocery vs. big box
Stability Growth
More than 15,000 leases with 8,500 tenants
10
Portfolio has Remained Resilient Over the Great Recession
Same-Property NOI
3.0%
1.2%
-2.7%
1.5% 1.1%
2.7%
1.1%
-3.2%
0.7% 0.4%
-5.0%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
2007 2008 2009 2010 2011
Kimco Realty U.S. Strip Center REIT Average
Occupancy
96.0% 95.2%
92.0% 92.4% 92.7%
95.2% 94.3%
92.1% 92.2% 92.3%
80.0%
82.0%
84.0%
86.0%
88.0%
90.0%
92.0%
94.0%
96.0%
98.0%
2007 2008 2009 2010 2011
Kimco Realty U.S. Strip Center REIT Average
Source: GreenStreet Advisors Report
* Each
Top Tenant Overview by Annualized Base Rent
11
• Top 30 MSAs & Puerto Rico account for more than 70% of
U.S. ABR.
• Top 5 MSAs include:
NY-Northern NJ-Long Island
L.A.-Long Beach-Santa Ana
Chicago-Joilet-Naperville
Dallas-Fort Worth-Arlington
Houston-Sugar Land- Baytown
• International portfolio accounts for approx. 17% of ABR.
Stability Driven by Diversified Tenant Exposure Across Many Regions
Metropolitan Statistical Area (MSA) Exposure by Annualized Base Rent (ABR)
Only 14 tenants with exposure > 1.0%
MSA 1-5 19.5%
MSA 6-10 12.5%
MSA 11-30 & Puerto Rico 26.8%
All Other 24.4%
Latin America 6.5% Canada 10.3%
3.1% 3.0% 2.5%
2.1% 1.6%* 1.5% 1.3%* 1.2%* 1.1%
12
U.S. Shopping Center Portfolio
Westlake Shopping Center Daly City, CA
13
U.S. Shopping Center Portfolio Profile by ABR
42% Junior Anchor (10K – 60K sq. ft.)
13% National Small Shops (< 5K sq. ft.)
Major Anchor 20% (Over 60K sq. ft.)
Local Small Shops 14% (<5K sq. ft.)
62% of ABR Generated from Major and Junior Anchors – High Quality, Good Credit Tenants
Tenant Type % by Leased GLA Major Anchor 34%
Junior Anchor 45%
Mid Shops 8%
National Small Shops 7%
Local Small Shops 7%
Mid Tier Stores 11% (5K – 10K sq. ft.)
• Franchisors pre-approve Kimco locations • Kimco then markets to prospective franchisees • Utilize website (www.fasttrackfranchise.com), signage,
blog posting, & franchise industry events as marketing tools
• 21 chains are currently signed up
14
Small Shop Space Lease-Up Initiatives
• 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
Fast Track Franchise Program KEYS Program
Since first quarter of 2011, small shop occupancy has increased by 120 basis points
U.S. Shopping Center Categorization By ABR
Other 5.4%
Neighborhood & Community Center
(with food component) 4.2%
Neighborhood & Community Center (grocery anchored)
39.1%
Power Center (with food component)
12.5%
Power Center 5.4%
Grocery Anchored: 40% Centers with food component: 17%
Total: 57%
15
Neighborhood & Community Center
33.4%
Food Component Includes:
U.S. Strategic Assets – Demographic & Financial Profile
Demographic Profile Within a 3-Mile Radius
Note: Demographics do not include Puerto Rico sites.
Timonium Square Timonium, MD
16
Mesa Riverview Mesa, AZ
Number of Sites Occupancy
ABR PSF
Total Population
Median House Hold Income
(MHHI)
Market Data at MSA Level
MHHI
KIM Above MSA
MHHI Strategic 673 93.9% $12.24 110,053 $69,466 $60,700 14.4% Non-Strategic 120 83.8% $9.43 74,835 $57,542 $57,340 0.4% Total Assets 793 92.8% $11.96 107,205 $68,502 $60,428 13.4%
Strategic Assets account for 92% of Annual Base Rent (ABR)
U.S. Growth Profile: Quality Over Quantity
Invest $$$$
• Located in secondary/tertiary markets • Limited growth potential • Stubborn Vacancy • Sold 53 shopping centers for approx. $290M
since Sept. 2010 Kimco Investor Day
Disposition of Non Strategic Assets
17
Active Asset Recycling Program
• 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. 2010 Kimco Investor Day
Acquisition Focus Targets
Garden State Pavilions, NJ Acquired in June 2011
Disposed Sites
Acquired Sites
Number of properties 53 37 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
Improving Tenant Profile Through Active Recycling
18
Top Ten Tenants Acquisitions
(Sept. 2010- Current)
Tenant Name
# Occupied
GLA (000’s) ABR
(000’s) Credit Ratings (S&P/Moody’s)
Publix Supermarkets 2 116 $1,287 NR
Michaels 6 112 1,267 B / B2
Ross Stores 5 125 1,146 BBB+ / NR
Shoprite 3 84 1,143 NR
Academy Sports 2 133 1,093 NR
Royal Ahold 2 73 1,081 BBB / Baa3
Kohl’s 3 201 945 BBB+ / Baa1
Kroger Company 3 131 880 BBB / Baa2
TJX Companies 4 92 812 A / A3
Wal-Mart 1 111 750 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. 1 39 658 NR
Hobby Lobby 2 88 597 NR
General Motors 2 31 594 BB+ / Ba1
Global Fitness 2 43 554 NR
TJX Companies 2 64 507 A / A3
Super United Furn. 1 100 494 NR
Sears Holdings 1 80 459 CCC+ / B3
Raley’s 1 60 458 NR
Lamb’s Thriftway 1 38 437 NR
Top Ten Tenants 15 632 $5,537
Top Ten Tenants Dispositions
(Sept. 2010 – Current)
* Occupied GLA & ABR are shown at pro-rata interest.
U.S. Recent Acquisition Profile
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
Garden State Pavilions in Cherry Hill, New Jersey
19
Centre Court in Pikesville, Maryland
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
U.S. Recent Acquisition Profile
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
College Park in Tempe, Arizona
20
Independence Plaza in Selden, New York
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 $88,295
Increasing Portfolio Value Through Redevelopment
21
Property Name City State Opportunity Investment Incremental
($M) NOI ($M) Projects estimated completion in 2012
Springfield S.C. Springfield PA Demolished Value City & built new Giant Food; in process of adding outparcel $12.4 $1.3
Metro Crossing Council Bluffs IA Construction of TJX & Ulta; Multi-tenant building w/ Panera Bread 10.5 1.1
West Farm S.C Farmington CT Redevelopment of vacant Linens box for Nordstrom Rack 4.2 0.4
Oakwood Plaza North Hollywood FL Demolish Barnes & Noble and replace with Sports Authority; Expand BJ’s Wholesale 5.8 0.6
Center at Baybrook Webster TX Ground up Buybuy Baby project 4.2 0.3
Wexford Plaza Pittsburgh PA Convert six small shop spaces into Whole Foods 6.6 0.8
Cypress Towne Center Houston TX Proposed anchor project and small shop space 3.5 0.5
Mesa Riverview Mesa AZ Redevelopment / rebranding of existing movie theater district 4.8 0.8
Subtotal for 2012 $52.0 $5.8
Projects estimated completion in 2013 and thereafter
Elsmere Square Elsmere DE Demolish existing Value City and build new BJs Wholesale & Fuel Island 4.2 0.6
Richmond S.C. Staten Island NY Redevelop existing Kmart for new Target 3.9 2.5
Forest Avenue S.C. Staten Island NY Demolish former National Wholesale Liquidators & construct a new Stop & Shop. 7.6 0.8
Miller Road Miami FL Demolish & rebuild of existing Publix & in-line Walgreens 2.6 0.3
Pompano Beach Pompano Beach FL Demolish anchor space to build new specialty grocer & national sporting goods retailer 11.7 1.1
Wilde Lake Columbia MD Residential & retail redevelopment including vacant anchor 16.9 1.4
Subtotal for 2013 & thereafter $46.9 $6.7
Grand Total $98.9 $12.5
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
22
Increasing Portfolio Value Through Redevelopment
Future Redevelopment Projects
Center Name City State
Estimated spending of approximately $200M
Additional outlot opportunities: $11.2M investment resulting in $4.2M incremental NOI
Westlake S.C. Daly City, CA
23
31.7
14.5 11.4 11.1
8.5 8.1 7.4 3.9 2.2 1.1
32.6
10.7 13.3
6.2
16.2
10.8
5.9 1.7 2.0 0.5
0
5
10
15
20
25
30
35
40
45ABR
GLAApproximately 92% of portfolio with limited
Internet exposure
Category Exposure by Gross ABR % & Gross GLA % %
Hardlines Service Related
Supermarkets QSR & Casual Dining
Major Discounters
Offprice/ Dollar Stores
Apparel & Footwear
Financial Services
Pharmacies & Drug Stores
Telecom
Hardline Subcategories Exposure by Gross ABR % & Gross GLA % %
U.S. Category Exposure
23
Hobby, Toys
& Game Stores
2.7 2.6
1.8 1.3
2.4 2.8 2.4
1.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0 ABR
GLA
Home Furnishings
Home Improvement
Office Supplies
Computers & Electronic Appliances
Books & Video Stores
Sporting Goods Stores
Pet & Pet Supply
Stores
Auto/Auto Parts
Gift/Novelty/ Souvenir Stores
Cosmetics/ Fragrances
Sewing/ Needlework/ Piece Goods
Optical Goods Stores
Flower/ Cards
Jewelry Stores
Other
Limited internet exposure
24
• 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 www.facebook.com/KimcoRealty www.twitter.com/kimcorealty
Steps to Address Internet Exposure
25 25
Corporate RESPONSIBILITY Initiative
Focused on Reducing Our Environmental Footprint
R E T H I N K • R E N E W • R E S T O R E
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
• Utility Management • Building Controls (EMS) • Lighting Efficiency • Smart Irrigation • Integrated Waste Management • Solar Energy Production
Program Objectives
Key Initiatives
Westlake Shopping Center Daly City, CA
North Brunswick Plaza North Brunswick, NJ
Faubourg Boisbriand Boisbriand, Quebec, Canada
International Portfolio Overview
• 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
…First Mover Status Has Positioned Kimco as a Strong International Player
Key Differentiator: International Exposure
27
28
Canada Market Overview
New entrants continuing to explore Canada strategy include:
Retailer Trends
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
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
4.9% 4.4%
3.1% 2.7% 2.6% 2.6% 2.4% 2.4% 2.3% 2.1%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
Canada Portfolio Overview
Canada Remains Key Element of International Portfolio
Portfolio Snapshot
Approximately 30% of Canadian Annual Base Rent is Diversified Across Top 10 Tenants High Quality Domestic and International Retailer Relationships
Tenant Exposure
29
• 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%
Retailer Trends
2012 Economic Outlook
• Looking to become an active brand in Mexico:
Mexico Market Overview
• Existing retailers look to strengthen their position:
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
• Retailers actively expanding around the country:
30
Mexico Investment Drivers
31
Favorable Demographics • 12th largest global economy; projected to be 5th largest by 2050 • 106M people expected to grow 1.2% annually; median age of 26 • Expanding middle class
Strong Demand • 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
Limited Supply • Mexico under retailed ~3.9 sq. ft. per capita vs. U.S. 23.0 sq. ft. • ~800 shopping centers; heavily concentrated in large urban areas (vs. 110k in U.S.)
Growing Consumption • Consumer credit, healthy banking sector will continue to grow purchasing power • Consumer spending per capita expected to increase by 48% by 2014 • 7th largest American Express user in the world
Opportunistic Returns • 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
Mexico City
Cancun
Kimco Shopping Centers
• 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
Portfolio Snapshot
• 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
Mexico Portfolio Overview
32
Tenant Exposure
21 leases; 2.3M sq. ft. (7.8% ABR)
14 leases; 0.7M sq. ft.
(4.6%) 12 leases; 0.5M sq. ft.
(2.6%)
8 leases; 0.7M sq. ft.
(4.3%) 6 leases;
0.6M sq. ft. (1.6%)
4 leases; 0.4M sq. ft.
(1.3%)
3 leases; 0.3M sq. ft.
(1.0%)
33
Mexico Growth Profile
Stabilized Yield (2014) 11% - 12%
Centro Sur Guadalajara, JA
Sunset Valley Marketfair Austin, TX
Investment Management Platform
35
Strategy and Overview
• Building on 50 years retail real estate
experience, formed Investment Management business in 1999
• 281 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
Investment Management Business Leverages Core Competencies to Create Long-Term Shareholder Value
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
Expertise Creativity Strong Relationships
* Source: Pensions & Investments, 2011
36
Sources of Capital
Cons
• Expensive to raise
• Limited practical use priority in capital structure and bondholder protections
• “Less expensive” than common equity but results in shared ownership
Pros
• Flexible source of capital
• Cheap source of capital
• Attractive source of capital Willingness on behalf of investors to pay for management expertise
Common Equity
Debt (Bonds & Mortgages)
Equity From Limited Partners
Income Fee Structures
*ROIC – Return on Invested Capital * Varies based on Promoted IRR
Acquisition 50 – 100 bps
Disposition 25 – 50 bps
Construction Mgmt. 2.5% – 5.0%
Non-Recurring Recurring
Asset (50 – 100 bps)
Finance Sourcing (25 – 50 bps)
Property Mgmt. 4% – 5%
Lease Commission Var. ~ $3/sq. ft.
Competitive Advantage:
In-house
Operating Platform
Potential Upside* 15% - 25%
KIM’s ROIC * Hurdles 9% - 20%
37
Management fee income of $35M in 2011 is expected to increase by approximately 30% in next three years
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
Alamosa Plaza Las Vegas, NV
Direct to Retail Investment Opportunities
• 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
40
…Has Led to Long History of Value Creation
Key Differentiator: Strong Retailer Relationships
Ability to Act Opportunistically with Retailer-Controlled Real Estate…
Hamden Mart Hamden, CT
Financial Highlights & Strategy
Mgmt. Fee Income 4%
Where We Were 2008 Where We Are 2012
Retail Shopping Center Flows Grow from 83% in 2008 to a Projected 99% in 2014
42
EBITDA Composition
Latin America 4%
Canada 6%
U.S. Centers 68%
Mgmt. Fee Income 5% Non-retail Inv. 17%
Canada 7%
U.S. Centers 79%
Non-retail Inv. 3% Non-retail Inv. 1%
Latin America 9%
Canada 7%
U.S. Centers 79%
Mgmt. Fee Income 4%
83% 97% 99% Latin America 7%
Where We Are Going 2014
43
• 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
Recurring Retail Earnings Growth
* Forecasted
Monetize ~$485M of remaining assets by the following:
• Urban portfolio assets being marketed for sale
New York, Philadelphia & Chicago
• Working on sale of InTown Suites
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
• Anticipating repayment of Mortgage Financing Receivables
Repayment expected on healthcare facility in 2012
Non-retail Plan
44
Non-Retail Assets
Book Value of Non-retail Assets
As of 03/31/12
$194M
$89M
$74M
$35M
$57M
Monetized over $500M since 2008
*As of 03/31/12
1.05
0.88
0.80
0.51
0.07
0.00
0.20
0.40
0.60
0.80
1.00
1.20
2008 2009 2010 2011 2014E$
Billi
ons
(% o
f gro
ss a
sset
s)
0.49*
Improving Balance Sheet Strength
45
Investment Grade Ratings: • S&P: BBB+ • Moody’s: Baa1 • Fitch: BBB+
Solid Improvement since 2008
57% Market Equity Shares 25% Unsecured Debt
9% Mortgage Debt
7% Preferred Stock
2% Non-controlling Ownership Interests
12/31/08 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%
Debt/ Total Market Cap (Book) 0.53 : 1 0.46 : 1 0.43:1
Debt / Equity (Book) 1.12 : 1 0.84 : 1 0.74:1
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%
Consolidated Market Cap: $13.2B*
Strong balance sheet ensures ready access to capital markets
*As of 03/31/12
46
Kimco Share Joint Venture Debt
Note: Percentages represent what is maturing as a % of the total debt stack
Well Staggered Debt Maturity Profile
Consolidated Debt
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Thereafter
Deb
t in
Mill
ions
Secured Unsecured
Weighted Avg. Fixed Rate: 5.80%
Weighted Avg. Floating Rate: 3.53%
8.0%
13.0%
17.1%
11.7%
15.1%
12.0%
8.3%
12.1%
0.6% 2.2%
0
100
200
300
400
500
600
700
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Thereafter
Deb
t in
Mill
ions
Secured Unsecured
Weighted Avg. Fixed Rate: 5.71%
Weighted Avg. Floating Rate: 2.97%
13.2%
10.1% 8.1%
17.9%
13.8%
20.1%
2.2% 1.9% 1.4%
5.1% 6.3%
0.0%
47
• 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 $525M through 2015
• Maintain investment grade ratings • Monetize Non-retail and Non-strategic Assets
Capital and Balance Sheet Strategy
Timonium Square Timonium, MD
2012 Guidance
48
FFO ($ in millions)
FFO $/ Diluted Share
2011 2012F 2011 2012F Recurring:
Retail $ 860 $ 900 — $ 925 $ 2.10 $ 2.19 — $ 2.25 Non-Retail 41 27 — 35 0.10 0.07 — 0.09 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 * 33 - — - 0.08 - — - $ 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
($ in millions, except per share data) 2011 2012F 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 19 12 — 20 0.05 0.03 — 0.05
Gain on disposition of joint venture operating properties (2) 4 16 — 20 0.01 0.04 — 0.05
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
(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
(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
Reconciliation of FFO to Net Income Available to Common Shareholders:
Retail operating partner of choice for
large, blue chip domestic and
international pension funds and
insurance companies
The Kimco Difference
Proven opportunistic investor in
retail real estate owned by U.S.
retailers through structured sales
leaseback and purchase transactions
International platform with
incremental earnings from strong
Canadian market and lease-up of
Mexico development portfolio
49
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