The paragraph outlines the opening of Kimco Realty's First Quarter 2025 Earnings Conference Call. The operator introduces the call, noting it is in listen-only mode and will include a Q&A session. David Bujnicki, Senior Vice President of Investor Relations and Strategy, welcomes participants and introduces key members of the Kimco management team, including CEO Conor Flynn. He also issues a disclaimer about forward-looking statements and non-GAAP financial measures and notes the possibility of technical difficulties, with resolutions being posted on their Investor Relations website. Conor Flynn then takes over the call.

The paragraph outlines Kimco's strong performance in Q1 2025, emphasizing their focus on high-quality, grocery-anchored shopping centers. They signed 583 leases for 4.4 million square feet, achieving impressive cash rent spreads, with new lease spreads reaching a seven-year high. Occupancy rates are healthy, and the demand for their centers is evident through new grocery leases. Significant deals have been made with major retailers, underscoring their strategic market position. Same property NOI increased by 3.9%, boosted by leasing activity, rent growth, and cost management. Despite some tenant bankruptcies, tenant credit loss was minimal, and demand for space remains robust. For example, they've efficiently managed their leases with Party City.

The paragraph highlights Kimco's successful leasing and acquisition strategies, emphasizing its ability to quickly fill and upgrade spaces in grocery-anchored shopping centers, bolstered by strong consumer behavior despite economic fluctuations. The company completed a strategic acquisition in Jacksonville and continues to benefit from its structured investment program, maintaining a robust pipeline for growth. Kimco's strong financial position, supported by $2 billion in liquidity and the repayment of $550 million of debt, enhances its flexibility. Additionally, Moody's affirmed its Baa1 rating with a positive outlook, underscoring effective balance sheet management.

The paragraph highlights the company's recent financial activities and strategic priorities. It mentions a repurchase of 3 million shares in April due to market dislocation, leading to increased full-year guidance for net income and FFO. The company plans to focus on strong leasing, backfilling spaces, upgrading tenancy, and prudent capital allocation. In the first quarter, the company completed $100 million in net acquisitions, including The Markets at Town Center in Jacksonville and two Las Vegas grocery-anchored centers. In the second quarter, they funded a $35 million senior loan on a South Florida grocery-anchored center with an 8% coupon, retaining a right of first offer if the borrower decides to sell.

The paragraph discusses the company's plans to fund a $24 million senior loan on a high-quality asset in New York, with expectations of low repayments in 2025 due to interest rate hikes and market volatility. The company aims to maintain a net neutral position by redeploying any repayments. It has identified lower growth assets for sale, expecting to sell $100 million to $150 million worth in 2025, and plans to reinvest in higher growth opportunities. The market outlook remains cautious due to tariffs and trade dynamics, with competitive pricing for high-quality centers. Despite challenges, the company is well-positioned to capitalize on acquisition and investment opportunities.

The paragraph highlights a strong start for 2025, reflecting positive financial results and strategic positioning. The company reports significant improvements in leasing spreads, same-site NOI growth, and demand for vacant spaces from Party City and Big Lots. First-quarter FFO reached $301.9 million or $0.44 per share, representing a 12.8% increase from the prior year, mainly driven by NOI growth and increased lease termination income. Other financial movements included improved credit loss, increased financing income, and higher interest expenses. Operationally, the occupancy spread improved, and a total of $30 million in rent is expected to commence in 2025. The company maintains a strong balance sheet with a net debt to EBITDA ratio of 5.3x, aligning with its best financial metrics.

The company has a modest debt maturity of $240.5 million due in June 2025, with no other maturities until July 2026. They utilized their strong financial position to buy back 3 million common shares at a discounted price. Based on strong first quarter results, secure long-term leases, and expected cash flow growth, they raised their 2025 full-year FFO guidance to a range of $1.71 to $1.74 per diluted share, indicating 3.6% to 5.5% growth over 2024. This updated outlook includes increased same-site NOI growth and accounts for lease vacating impacts. Temporary occupancy dips are expected in the second quarter, but growth is anticipated thereafter. Credit loss assumptions remain at 75-100 basis points, with no changes to other 2025 outlook assumptions. The company credits its associates for their solid results.

The paragraph discusses a financial analyst’s question about credit loss dynamics in the first quarter compared to the company's annual reserve expectations. An unidentified representative explains that bankruptcy assumptions for companies like Party City, Big Lots, and Joann's are included in their guidance, particularly impacting the minimum rent line. Party City's longer-than-expected stay provided a benefit, whereas an earlier exit by Joann's would affect credit loss assumptions. The company's credit loss estimate comprises several factors to account for these variables.

The paragraph discusses the company's approach to managing credit loss and potential risks related to uncollectible receivables and unbudgeted tenant vacancies, mentioning current and historical basis points as performance indicators. It highlights two tenants, At Home and Rite Aid, as examples of potential risks. Despite market uncertainties, the company remains confident in its credit loss assumptions of 75-100 basis points. Additionally, the paragraph addresses a question about share repurchase activities, noting that the company hasn't repurchased shares since around 2018. Glenn Cohen explains that the company, recognizing a significant drop in share price and available cash flow post-Liberation Day, acted swiftly to manage capital by utilizing free cash flow and proceeds from property dispositions planned for the year.

The paragraph discusses a recent financial strategy involving Kimco, where the company seized a timely market opportunity, bolstered by favorable financial metrics such as FFO yield and NAV discount. The speaker emphasizes the importance of using market volatility to their advantage and highlights their previous equity issuance success. In a subsequent Q&A, Glenn Cohen explains the strong tenant reimbursements for the quarter, attributing it to factors like fixed CAM arrangements, effective collections, and lower-than-expected insurance costs. Conor Flynn notes the benefits of scale, crediting the diverse portfolio and effective loss prevention as reasons for reduced insurance expenses.

In response to Alexander Goldfarb's query about maintaining a positive outlook amid uncertain economic conditions, Glenn Cohen explains that despite soft market data and bankruptcy concerns, their strong first-quarter performance and continued strong consumer traffic provide confidence. Cohen highlights solid leasing demand and a robust pipeline of future cash flows as key drivers of their optimism, assuring that these factors will support significant earnings growth even if there's an economic downturn.

The paragraph discusses Kimco's positive performance and strategic positioning in the current market environment. Conor Flynn notes that they are performing slightly ahead of their budget projections, thanks to factors like Party City staying longer than expected, lower insurance costs, and careful spending. Additionally, Kimco is optimistic due to a favorable snow pipeline and stock buybacks, leading to raised guidance. The paragraph ends with a question from an analyst about tenant conversations and leasing pace following the tariffs, to which Ross Cooper responds by highlighting a strong performance in April, achieving 46% of total deal execution compared to the previous year.

The paragraph highlights the company's success in maintaining a healthy growth pace, particularly outperforming its plan on the non-anchored side by 65% compared to the previous year. It emphasizes the focus on long-term strategic planning despite short-term market volatility, highlighting the resilience of retailers in continuing growth initiatives. The paragraph also discusses successful package deals, such as five quickly executed deals with Sprouts within 21 days in Q1, demonstrating a strong commitment from both the company and retailers to expedite processes and focus on opening and operating new stores efficiently.

The paragraph discusses a company's retail pipeline and retention status. They have $16 million in the pipeline expected to be realized by 2025, with $9 million anticipated in Q2. By April, half of that $9 million is committed. Retention levels are strong, over 90% year-to-date, improving by 5% from last year. Of the 25 critical anchor leases with no options left, 99% have been resolved, indicating retailers' commitment to physical stores. The company aims to maintain close relationships with retailers amid market volatility. Following this, analyst Haendel St. Juste asks about capital needs for reoccupying spaces vacated by Big Lots, Party City, and Joann's, and whether any spaces will be subdivided, with Ross Cooper noting progress with Party City spaces.

The paragraph discusses the rapid execution or assignment of over half of certain deals within 90 days, with around 90% being resolved in some form, similar to past cases like Bed Bath & Beyond. New deals for companies like Joann's and Party City are fetching $40-$50 per foot in rent. The focus is on single tenant units, although slip box opportunities are also considered. Some spaces have been converted to grocery stores, contributing to a successful execution rate exceeding 85%. Cash flow from these deals is expected to begin at the end of 2025 and be fully realized in 2026. The momentum is attributed to a lack of new supply in the commercial real estate sector, creating opportunities for high-quality tenants to expand their market presence.

The paragraph discusses the growing demand for retail spaces, emphasizing the importance of selecting reliable landlords who can navigate challenging times. It highlights Kimco's proactive approach to portfolio management and packaging deals, which has drawn interest from retailers. The text also includes a Q&A segment where Juan Sanabria from BMO Capital Markets queries about changes in the same-store pool count and its impact on occupancy metrics. A company representative and David Bujnicki respond, explaining their methodology for tracking same-property NOI and noting that they disclose data with and without redevelopment impacts for clarity.

In the paragraph, Conor Flynn discusses the decision-making process for assigning or leasing properties. The primary considerations include whether the assignees complement the existing retail center and if recapturing the space could enhance tenancy and increase rent. The company also evaluates if combining spaces could attract grocery stores, which are a priority. The ultimate decision hinges on the financial benefits and long-term value for the site. Additionally, Greg McGinniss from Scotiabank inquires about the transaction market, questioning if there's been any decline in prices that might spur more activity or if sellers are holding back.

The paragraph discusses the company's approach to capital investment amid a mix of ongoing and paused deals due to recent tariff announcements. Despite the market uncertainty, their strategy focuses on investing accretively, evaluating opportunities like stock buybacks and asset acquisitions. Over the last six months, they've acquired several assets and completed a $60 million stock buyback. Their plan for 2025 is not dependent on external growth targets, allowing for flexibility in capital use, with internal opportunities like redevelopment and leasing providing additional pathways for growth.

In the paragraph, Wesley Golladay inquires about the sale of apartment land, and Conor Flynn responds by highlighting plans to sell $100 million to $150 million of ground lease opportunities and some non-income producing assets. Most of the sales will come from ground leases, which are larger in size due to rents and cap rates. Though they plan to sell some entitlements, it's expected to be a small percentage of the total land value. The focus is on strategic redevelopment opportunities, and they aim to monetize certain assets while emphasizing the long-term potential of their land. Ross Cooper adds that this is an ongoing program with consistently growing opportunities, allowing for continuous asset sales and redevelopment partnerships with major retailers.

In the discussion, the company is focused on reinvesting and managing its portfolio strategically to achieve low cap rates in the market and capitalize on entitled units. Floris van Dijkum inquires about the company's strategy for asset recycling opportunities, particularly regarding stock repurchases at favorable FFO yields. Glenn Cohen responds by emphasizing the company's preference for maintaining control over decision-making regarding share repurchases, allowing them to act quickly in response to market conditions and opportunities. This flexibility is highlighted as a beneficial aspect of their approach, enabling them to decide when to repurchase shares based on market dynamics and available funds from asset dispositions.

The paragraph discusses the company's strategy regarding capital investment, highlighting that stock buybacks are just one of several tools available, such as acquisitions and redevelopment. Conor Flynn emphasizes the importance of maintaining a strong balance sheet while making capital investments. Michael Mueller from JPMorgan inquires about the company's outlook on physical occupancy rates, which currently stand at 92.9%, noting a potential dip due to tenants like Joann's vacating. Glenn Cohen explains that while there might be a temporary decrease in occupancy, the target is to sustain and grow it through increased leasing activity, driven by strong demand. Conor Flynn adds that although no specific occupancy guidance is provided, the company's goal is to maximize leasing efforts to reach near all-time highs seen previously.

The paragraph discusses two ground-up development projects, Northtown Plaza and Gordon Plaza, both costing around $15 million. Northtown Plaza involves developing vacant parcels on legacy land acquired from Weingarten, with plans to bring Sprouts to the center to enhance leasing opportunities. The existing site already has infrastructure and partially occupied small shop buildings. Gordon Plaza is an existing shopping center that became obsolete due to vacancy, and the focus is on revitalizing the site. The speaker indicates there might be future opportunities for similar projects.

The paragraph discusses the company's strategy of demolishing a center to make deals with Home Depot, ALDI, and Chase Bank. Their role involves infrastructure work, such as clearing the site and setting up essential infrastructure, with the adjacent tenants handling construction. This aligns with their strategy of maximizing land use and ensuring a suitable return on investment. The discussion shifts to questions from financial analysts about occupancy dips and expectations for improvement, as well as performance comparisons between their portfolios. The company acknowledges the impact of a pipeline from a previous transaction and highlights their team's achievements in the current year.

The paragraph discusses the recent successes and future opportunities for Kimco, particularly highlighting the 9.9% increase in same-site NOI (Net Operating Income) due to effective execution on both anchors and smaller shops. They emphasize the transformation of sites into grocery-anchored assets and mention Mary Brickell Village as a particularly valuable asset with ongoing opportunities for lease value increases and density development. Glenn Cohen adds that small shops have seen significant growth in performance. During a Q&A session, Michael Gorman asks about changes in retailer demand or requests related to CapEx spending due to supply chain or inventory issues. Conor Flynn indicates that there hasn't been a significant shift recently, despite headlines about inventory levels being front-loaded.

The paragraph discusses the efforts of retailers to diversify their supply chains following tariffs introduced in 2017 and 2018. This preparation has minimized any material cost impact despite ongoing disruptions. During a conference call, Conor Flynn reports a 6% year-over-year increase in traffic at shopping centers, with the south and Pacific Southwest regions performing slightly better. The paragraph concludes with David Bujnicki inviting participants to the upcoming NAREIT Conference in June.

This summary was generated with AI and may contain some inaccuracies.