Kimco Realty Announces Third Quarter 2021 Results

Kimco Realty Corp. (NYSE: KIM), North America's largest publicly traded owner and operator of open-air, grocery-anchored shopping centers and mixed-use assets, today reported results for the third quarter ended September 30, 2021. For the three months ended September 30, 2021 and 2020, Kimco's net income/(loss) available to the company's common shareholders was $0.91 per diluted share and ($0.10) per diluted share, respectively.

Third Quarter Highlights:

• Completed the strategic merger with Weingarten Realty Investors on August 3, 2021.
• Produced FFO of $0.32 per diluted share, which includes merger-related costs of $47.0 million, or $0.08 per diluted share.
• Grew pro-rata portfolio occupancy 20 basis points sequentially to 94.1%.
• Increased pro-rata small shop occupancy 180 basis points sequentially to 87.3%.
• Signed 411 leases totaling 2.1 million square feet of gross leasable area (GLA).
• Same property Net Operating Income (NOI), which excludes the impact of the Weingarten Realty portfolio, grew 12.1% over the prior year.
• Ended the quarter with Kimco's investment in Albertsons Companies Inc. (NYSE: ACI) common stock valued at over $1.2 billion.
• Achieved an "A" rating from the Global Real Estate Sustainability Benchmark (GRESB) for both Public Disclosure and Real Estate Performance Assessment placing Kimco as the top company in its respective US Retail peer group. Additionally, Kimco was again named as a constituent of the FTSE4Good Index Series and was certified as a Great Place to Work® company for the 4th consecutive year.

Kimco CEO Conor Flynn commented, "We are extremely proud to have completed another quarter where leasing volume exceeded two million square feet, bringing year-to-date leasing to 6.7 million square feet. We remain committed to ?leasing, leasing and leasing,' and our success continues to validate the importance and value of the real estate we own. With the strategic addition of the Weingarten portfolio and our highly desirable open-air, last-mile grocery-anchored centers in growing markets, we are excited to again raise our outlook for 2021 as we embrace the opportunity to create additional value for shareholders."

Financial Results:

Net income/(loss) available to the company's common shareholders for the third quarter of 2021 was $501.4 million, or $0.91 per diluted share, compared to ($44.7) million, or ($0.10) per diluted share, for the third quarter of 2020. The year-over-year change includes:

• $534.1 million increase in gain on marketable securities, primarily as a result of the mark-to-market fluctuations on 39.8 million shares of common stock of Albertsons Companies, Inc. (NYSE: ACI) held by the company which was valued at over $1.2B at the end of the third quarter of 2021.
• $26.6 million improvement in consolidated credit loss on potentially uncollectible accounts receivable.
• $7.5 million less in charges related to early extinguishment of debt.
• $47.0 million in charges during the third quarter of 2021 related to the merger with Weingarten Realty.

NAREIT Funds From Operations (FFO) was $173.7 million, or $0.32 per diluted share, for the third quarter of 2021 and includes merger charges with Weingarten Realty of $47.0 million, or $0.08 per diluted share. NAREIT FFO was $106.7 million, or $0.25 per diluted share, for the third quarter 2020. A reconciliation of net income available to the company's common shareholders to NAREIT FFO is provided in the tables accompanying this press release.

Operating Results:

• Pro-rata portfolio occupancy ended the quarter at 94.1%, an increase of 20 basis points sequentially, with the spread between leased (reported) occupancy vs. economic occupancy 300 basis points.
• Pro-rata anchor occupancy ended the quarter at 96.9%, flat on a sequential basis.
• Pro-rata small shop occupancy ended the quarter at 87.3%, an increase of 180 basis points sequentially from the second quarter of 2021.
• Pro-rata rental-rate spreads on comparable spaces during the third quarter of 2021 increased 4.9%, with rental rates for new leases up 5.0% and renewals/options up 4.9%.
• During the third quarter, the company signed 411 leases totaling 2.1 million square feet of GLA benefitting from the Weingarten merger. This was bolstered by 141 new leases for 605,000 square feet.
• Same-property NOI, including redevelopments, increased 12.1% for the third quarter of 2021 over the comparable period in 2020. The company excluded Weingarten Realty from the calculation of same-property NOI since it was not owned for the full period. Kimco expects to include the Weingarten portfolio in its Same-property NOI beginning in the fourth quarter of 2021. A reconciliation of net income available to the company's common shareholders to Same-property NOI is provided in the tables accompanying this press release.

Weingarten Merger:

• In August, completed the strategic merger with Weingarten Realty Investors further expanding Kimco's grocery-anchored portfolio and its presence in fast growing Sun-belt markets with the addition of 149 properties totaling 23.5 million square feet of GLA.
• In connection with the merger, Kimco previously disclosed annualized cost synergy ranges of $35 million to $38 million on a GAAP basis and $31 million to $34 million on a cash basis. At the end of the third quarter, the company had achieved synergies at the upper end of both ranges. The company anticipates achieving the full benefit of these synergies by the end of 2022.

Transaction Activities:

• Provided $21.5 million of third-party mezzanine funding towards the acquisition of Alamo Ranch, a 465,000 square foot retail center located in San Antonio, Texas.
• Sold two single-tenant centers located in Massachusetts and one land parcel in San Antonio for a total of $23.5 million.
• Subsequent to quarter end, acquired the remaining 70 percent interest in a portfolio of six Publix-anchored, Sunbelt shopping centers from Kimco's existing joint venture partner, Jamestown, for a gross purchase price of $425.8 million. The company then entered into a joint venture partnership with Blackstone Real Estate Income Trust, Inc. ("BREIT") in which both Kimco and BREIT will own 50 percent of the portfolio, with Kimco continuing to manage the properties on behalf of the joint venture.

Capital Markets:

• Established a new continuous "At The Market" (ATM) equity offering program through which the company may offer and sell shares of its common stock, par value $0.01 per share, with an aggregate gross sales price of up to $500 million.
• Generated net proceeds of $76.9 million through the issuance of approximately 3.5 million shares of common stock through the company's ATM program at a weighted average price of $22.08 per share.
• Issued $500 million of 2.250% notes maturing December 2031, which represents the lowest coupon for ten-year, unsecured notes issued by the company in its history.
• Ended the third quarter with over $2.4 billion of immediate liquidity, including full availability under the company's $2.0 billion unsecured revolving credit facility, and $483 million of cash and cash equivalents. In addition, Kimco maintains over $1.2 billion of ACI common stock, subject to certain lock-up provisions.

Dividend Declarations:

As previously announced:

• Kimco's board of directors declared a quarterly cash dividend of $0.17 per common share, payable on December 23, 2021, to shareholders of record on December 9, 2021.
• The board of directors also declared quarterly dividends with respect to each of the company's Class L and Class M series of cumulative redeemable preferred shares. These dividends on the preferred shares will be paid on January 17, 2022, to shareholders of record on January 3, 2022.

2021 Full Year Outlook:

Kimco's 2021 guidance has been updated to include the impact for the completed merger with Weingarten and includes merger-related cost totaling $50.2 million, or $0.10 per diluted share. As a result, the company has raised its 2021 guidance ranges as follows:

Conference Call and Supplemental Materials

Kimco will hold its quarterly conference call on Friday, November 5, 2021, at 8:30 a.m. Eastern Time (ET). The call will include a review of the company's third quarter results as well as a discussion of the company's strategy and expectations for the future. To participate, dial 1-888-317-6003 or 1-412-317-6061 for international calls, (Passcode: 7894589).

Audio replay from the conference call will be available on Kimco Realty's website at investors.kimcorealty.com through Saturday, February 5, 2022.

About Kimco

Kimco Realty Corp. (NYSE:KIM) is a real estate investment trust (REIT) headquartered in Jericho, N.Y. that is North America's largest publicly traded owner and operator of open-air, grocery-anchored shopping centers and mixed-use assets. The company's portfolio is primarily concentrated in the first-ring suburbs of the top major metropolitan markets, including those in high-barrier-to-entry coastal markets and rapidly expanding Sun Belt cities, with a tenant mix focused on essential, necessity-based goods and services that drive multiple shopping trips per week. Kimco is also committed to leadership in environmental, social and governance (ESG) issues and is a recognized industry leader in these areas. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center ownership, management, acquisitions, and value enhancing redevelopment activities for more than 60 years. As of September 30, 2021, the company owned interests in 545 U.S. shopping centers and mixed-use assets comprising 94 million square feet of gross leasable space. For further information, please visit www.kimcorealty.com

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Safe Harbor Statement

This communication contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, are generally identifiable by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," "will," "target," "forecast" or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which, in some cases, are beyond the Company's control and could materially affect actual results, performances or achievements. 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 and management's ability to estimate the impact of such changes, (vi) the level and volatility of interest rates and management's ability to estimate the impact thereof, (vii) pandemics or other health crises, such as coronavirus disease 2019 ("COVID-19"), (viii) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and risks related to acquisitions not performing in accordance with our expectations, (ix) the Company's failure to realize the expected benefits of the merger with Weingarten Realty Investors (the "Merger"), (x) significant transaction costs and/or unknown or inestimable liabilities related to the Merger, (xi) the risk of shareholder litigation in connection with the Merger, including any resulting expense, (xii) risks related to future opportunities and plans for the combined company, including the uncertainty of expected future financial performance and results of the combined company following the Merger, (xiii) the possibility that, if the Company does not achieve the perceived benefits of the Merger as rapidly or to the extent anticipated by financial analysts or investors, the market price of the Company's common stock could decline, (xiv) valuation and risks related to the Company's joint venture and preferred equity investments, (xv) valuation of marketable securities and other investments, including the shares of Albertsons Companies, Inc. common stock held by the Company, (xvi) increases in operating costs, (xvii) changes in the dividend policy for the Company's common and preferred stock and the Company's ability to pay dividends at current levels, (xviii) the reduction in the Company's income in the event of multiple lease terminations by tenants or a failure of multiple tenants to occupy their premises in a shopping center, (xix) impairment charges, (xx) unanticipated changes in the Company's intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity and (xxi) the other risks and uncertainties identified under Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year-ended December 31, 2020, as supplemented by the risks and uncertainties identified under Item 1A, "Risk Factors" in this Quarterly Report on Form 10-Q. Accordingly, there is no assurance that the Company's expectations will be realized. The Company disclaims any intention or obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to refer to any further disclosures the Company makes in the Company's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that the Company files with the Securities and Exchange Commission ("SEC").