KIMCO REALTY CORP Q4 FY2024 earnings call

Board Changes - Milton retired as Executive Chairman, with Richard Saulsman becoming Chairman. Ross Cooper and Nancy Lechine joined the board. ### Portfolio Performance - Strong leasing momentum due to low new supply and near-record low vacancy. Repositioning portfolio into first-ring suburbs. RPT acquisition integration successful with same-site NOI growth of 6.2%. Waterford Lakes Town Center acquisition started to benefit. Structured investment program converted first investment to equity ownership. ### Financial Results - Q4 FFO up, NOI growth driven by RPT acquisition, higher minimum rents, and lower credit loss.

In the fourth quarter of 2024, FFO was $286.9 million or $0.42 per diluted share, compared to $239.4 million or $0.39 per diluted share in the prior year's fourth quarter, a per-share increase of 7.7%. Total pro-rata NOI increased 17.8% to $403.4 million. Year-end portfolio occupancy stood at 96.3%, with same-site NOI growth of 4.5% for the fourth quarter and 3.5% for the full year 2024. Credit loss for the fourth quarter and full year 2024 was 82 basis points and 75 basis points respectively, meeting the low end of the 2024 outlook assumption.

2025 Outlook - FFO per share outlook range $1.70 to $1.72 (3% to 4.2% per-share growth). Same-property NOI growth 2% plus, with credit loss assumed at 75 to 100 basis points. Acquisitions (including structured investments) net of dispositions expected to be $100 million to $125 million. G&A expense projected to be $131 million to $137 million. Interest income expected to range between $6 million and $9 million. Lease termination income expected to be $6 million to $9 million.

Risks - Potential impacts from bankruptcies of tenants like Big Lots, Party City, Joanne's which could affect credit loss and rent recapture. Market uncertainties and economic/political factors could impact financial results.

Q: You mentioned the credit loss reserve of 75 to 100 basis points. Can you talk about what you have visibility to start the year where your watch list is?

A: Glenn Cohen discussed the watch list including Big Lots, Party City, Joanne's, and how demand for backfilling these spaces is robust with retailers looking to grow market share.

Q: You guys have been a little bit more acquisitive. Could you talk a little bit about what the opportunity set looks like today?

A: Ross Cooper talked about sources of funds including ground leases, entitlements, and structured investments, and the strategy to recycle capital into new opportunities.

Q: Back to the same store NOI, any chance we could sort of quantify what that hit was to 2025?

A: Glenn Cohen and David Jamieson discussed that the vacancies are baked into the same-store NOI guidance and that backfilling will contribute to future growth.