Kimco Realty : Announces First Quarter 2017 Operating Results

Kimco Realty Announces First Quarter 2017 Operating Results

Company Posts Strongest Leasing Volume in the Past Ten Years; Reaffirms 2017 Outlook

NEW HYDE PARK, New York, April 26, 2017 - Kimco Realty Corp. (NYSE: KIM) today reported results for the first quarter ended March 31, 2017.

First Quarter Highlights

• Net income available to the company's common shareholders of $65.2 million, or $0.15 per diluted share;

• Signed 497 new leases, renewals and options, totaling 4.3 million square feet, representing the highest leasing volume of any quarter in the last ten years;

• Generated 10.9% growth in pro-rata rental-rate leasing spreads with new leases increasing 17.9% and renewals/options up 10.1%;

• Grew same-property net operating income (NOI) 2.2% over the same period in 2016;

• Acquired two operating properties for $43.1 million and a 90% ownership interest in a new mixed- use development project for $10.0 million, while disposing of eight shopping centers representing 948,000 square feet and one land parcel for a total of $113.2 million;

• Issued $400 million in new, unsecured notes due 2027 at a coupon of 3.80%; and

• Closed a new five-year $2.25 billion unsecured revolving credit facility with borrowings priced at LIBOR plus 87.5 basis points.

  Financial Results

  Net income available to the company's common shareholders (Net Income) for the first quarter of 2017 was $65.2 million, or $0.15 per diluted share, compared to $129.2 million, or $0.31 per diluted share, for the first quarter of 2016. The decrease was primarily due to $68.9 million* of lower gains on the sales of operating properties, net of impairments, attributable to the sale or pending disposition of operating properties. Both gains on sales and operating property impairments are excluded from the calculation of Funds From Operations available to the company's common shareholders (NAREIT FFO).

  NAREIT FFO was $155.1 million, or $0.37 per diluted share, for the first quarter of 2017 compared to $158.2 million, or $0.38 per diluted share, for the first quarter of 2016. NAREIT FFO for the first quarter of 2017 included $0.6 million of transactional charges (net of transactional income). This compares to $5.4 million of transactional income (net of transactional charges) in the first quarter of 2016.

  * Amounts shown before any impact from taxes and non-controlling interests

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  FFO available to the company's common shareholders as adjusted (FFO as adjusted), which excludes the effects of non-operating impairments as well as transactional income and charges, was $155.8 million, or $0.37 per diluted share, for the first quarter of 2017 compared to $152.9 million, or $0.37 per diluted share during the same period in 2016.

  A reconciliation of net income to NAREIT FFO, FFO as adjusted and same-property NOI is provided in the tables accompanying this press release.

  Operating Results

• Reported pro-rata portfolio occupancy of 95.3% at the end of the first quarter;

• Signed 497 leases totaling 4.3 million square feet during the quarter including 347 renewals and options for 3.5 million square feet;

• Increased pro-rata leasing spreads by 10.9%, with rental rates for new leases up 17.9% and renewals/options growing 10.1%; and

• Improved same-property NOI 2.2%, which included a 10-basis-point benefit from redevelopment activity, compared to the same period in 2016.

  Investment Activity

  Acquisitions:

• Plaza Del Prado, a 142,000-square-foot, grocery-anchored shopping center located on the North Shore of Chicago's affluent suburb of Glenview, Illinois, for $38.0 million. Situated on 14 acres, Plaza Del Prado is supported by a population of approximately 83,000 with an average household income of $126,000 within a three-mile radius. At the time of acquisition, the shopping center was 87.6% occupied, offering near-term lease up opportunities as well as future value creation potential from the development of an outparcel.

• An vacant 25,000-square-foot, in-line space at the company's Columbia Crossing shopping center, located in Columbia, Maryland, for $5.1 million. This acquisition offers an attractive lease- up opportunity and increases the amount of square footage owned by Kimco to approximately 198,000 square feet.

• A 90% ownership interest in Lincoln Square, a fully entitled, mixed-use development project in the highly sought-after Center City district of Philadelphia for $10.0 million. The project, which recently commenced construction, will feature 322 residential units and 100,000 square feet of retail space (approximately 80% pre-leased) anchored by a 36,000-square-foot small-format Target, a 32,000-square-foot specialty grocer and a 16,000-square-foot PetSmart.

  Lincoln Square will be an approximately $160-million live, work, play urban, transit-oriented development located at Broad Street and Washington Avenue. The project, which is within walking distance to the heart of Center City and offers convenient subway and bus access, boasts excellent demographics, with a population of 111,500 and an average household income of approximately $90,000 within a one-mile radius.

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  Dispositions: Sales for the first quarter totaled $113.2 million, including the disposition of eight shopping centers, totaling 948,000 square feet, and one land parcel. Kimco's share of the sales price was $65.8 million.

  Capital Activities

  During the first quarter of 2017, the company:

• Issued $400 million of new, unsecured notes due 2027 at a coupon of 3.80% and repaid $250 million outstanding on an unsecured term loan that matured in January 2017, extending the company's weighted average debt maturity profile to 8.9 years as of March 31, 2017; and

• Closed on a new $2.25 billion unsecured revolving credit facility with an initial maturity of March 17, 2021 and two additional six-month extension options. The new credit facility replaced the company's previous $1.75 billion unsecured credit facility. Borrowings under the new facility are priced at LIBOR plus 87.5 basis points.

2017 Guidance

Kimco reaffirms its full year 2017 financial and operational outlook:

**Excludes transactional income/(charges), net

2017 Operational Assumptions:

A reconciliation of these forward-looking non-GAAP metrics (NAREIT FFO and FFO as adjusted) are provided in the tables accompanying this press release.

Dividend Declarations

Kimco's board of directors declared a quarterly cash dividend of $0.27 per common share, payable on July 17, 2017, to shareholders of record on July 6, 2017 representing an ex-dividend date of July 3, 2017.

The board of directors also declared quarterly dividends with respect to the company's various series of cumulative redeemable preferred shares (Class I, Class J and Class K). All dividends on the preferred shares will be paid on July 17, 2017, to shareholders of record on July 5, 2017, with an ex- dividend date of June 30, 2017.

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Conference Call and Supplemental Materials

Kimco will hold its quarterly conference call on Thursday, April 27, 2017, at 10:00 a.m. EDT. The call will include a review of the company's first quarter 2017 results as well as a discussion of the company's strategy and expectations for the future. To participate, dial 1-888-317-6003 (Passcode: 1279218).

A replay will be available through July 27, 2017, by dialing 1-877-344-7529 (Passcode: 10101788). Access to the live call and replay will be available through the company's website at investors.kimcorealty.com.

About Kimco

Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America's largest publicly traded owners and operators of open- air shopping centers. As of March 31, 2017, the company owned interests in 517 U.S. shopping centers comprising 84 million square feet of leasable space across 34 states and Puerto Rico. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 50 years. For further information, please visit www.kimcorealty.com, the company's blog at blog.kimcorealty.com, or follow Kimco on Twitter at www.twitter.com/kimcorealty.

Safe Harbor Statement

The statements in this news release state the company's and management's 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 which may cause actual results to differ materially from current expectations include, but are not limited to, (i) general adverse economic and local real estate conditions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the company, (iv) the company's ability to raise capital by selling its assets, (v) changes in governmental laws and regulations, (vi) the level and volatility of interest rates and foreign currency exchange rates and management's ability to estimate the impact thereof, (vii) risks related to the company's international operations, (viii) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and risks related to acquisitions not performing in accordance with our expectations, (ix) valuation and risks related to the company's joint venture and preferred equity investments, (x) valuation of marketable securities and other investments, (xi) increases in operating costs, (xii) changes in the dividend policy for the company's common stock, (xiii) the reduction in the company's income in the event of multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center, (xiv) impairment charges and (xv) unanticipated changes in the company's intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity. 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. Copies of each filing may be obtained from the company or the SEC.

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