KIM - Kimco Realty Corporation (KIM) Q4 2023 Earnings Call Transcript

2024-02-08 13:52:02 ET

Kimco Realty Corporation (KIM)

Q4 2023 Earnings Conference Call

February 8, 2024 08:30 ET

Company Participants

David Bujnicki - Senior Vice President of Investor Relations & Strategy

Conor Flynn - Chief Executive Officer

Ross Cooper - President & Chief Investment Officer

Glenn Cohen - Chief Financial Officer

Dave Jamieson - Chief Operating Officer

Conference Call Participants

Michael Goldsmith - UBS

Jeff Spector - Bank of America

Dori Kesten - Wells Fargo

Floris van Dijkum - Compass Point

Alexander Goldfarb - Piper Sandler

Greg McGinniss - Scotiabank

Craig Mailman - Citi

Haendel St. Juste - Mizuho

Samir Khanal - Evercore ISI

R.J. Milligan - Raymond James

Caitlin Burrows - Goldman Sachs

Wes Golladay - Baird

Paulina Rojas - Green Street

Mike Mueller - JPMorgan

Michael Gorman - BTIG

Linda Tsai - Jefferies

Anthony Powell - Barclays

Ronald Kamdem - Morgan Stanley

Floris Van Dijkum - Compass Point

Tayo Okusanya - Deutsche Bank

Jamie Feldman - Wells Fargo

Presentation

Operator

Good morning and welcome to Kimco Realty's Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to David F. Bujnicki, Senior Vice President, Investor Relations and Strategy. Please go ahead.

David Bujnicki

Good morning and thank you for joining Kimco's quarterly earnings call. The Kimco management team participating on the call today include Conor Flynn, Kimco's CEO; Ross Cooper, President and Chief Investment Officer; Glenn Cohen, our CFO; and Dave Jamieson, Kimco's Chief Operating Officer; as well as other members of our executive team that are also available to answer questions during the call.

As a reminder, statements made during the course of this call may be deemed forward-looking and it is important to note that the company's actual results could differ materially from those projected in such forward-looking statements due to a variety of risks, uncertainties and other factors. Please refer to the company's SEC filings that address such factors. During this presentation, management may make reference to certain non-GAAP financial measures that we believe help investors better understand Kimco's operating results. Reconciliations of these non-GAAP financial measures can be found in our quarterly supplemental financial information on the Kimco Investor Relations website. Also, in the event our call was to incur technical difficulties, we'll try to resolve as quickly as possible and if the need arises, we'll post additional information to our IR website.

And with that, I'll turn the call over to Conor.

Conor Flynn

Good morning and thanks for joining us. I will lead off today with a summary of our stellar Q4 leasing results and then provide some strategic updates on our completed RPT acquisition. Ross will follow with an update on the transaction market, recent activity and plans for 2024. Glenn will then cover our financial metrics and provide 2024 guidance. We concluded 2023 on a high note with record-setting leasing activity and a deeper, broader and more resilient tenant base for our grocery-anchored and mixed-use portfolio. We've built on this positive momentum kicking off 2024 by closing our acquisition of RPT on the first business day of the year. I will provide additional perspective on RPT shortly.

Let's start with our leasing accomplishments. For the quarter, overall occupancy finished up 70 basis points on a sequential basis to 96.2% on a pro rata basis. Importantly, the 70 basis point gain is our highest quarter-over-quarter uptick in occupancy going back more than 15 years. Our year-over-year overall occupancy increased 50 basis points. Anchor occupancy grew a record 80 basis points sequentially to 98% and finished flat year-over-year. Smaller shop occupancy was up 60 basis points to 91.7%, surpassing our previous record high of 91.1% and ended up 170 basis points year-over-year. We signed over 1 million square feet of new lease GLA in the fourth quarter, the highest quarterly level in over 10 years....

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