Kimco Realty Corporation (NYSE:KIM) Q1 2016 Earnings Conference Call - Final Transcript

Apr 28, 2016 • 10:00 am ET


Kimco Realty Corporation (NYSE:KIM) Q1 2016 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Kimco's First Quarter 2016 Earnings Conference Call. All parties will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded.

I now would like to turn the conference over to Mr. David Bujnicki. Mr. Bujnicki, please go ahead.

David Bujnicki

Good morning and thank you all for joining Kimco's first quarter 2016 earnings call. With me on the call this morning is Conor Flynn, President and Chief Executive Officer; and Glenn Cohen, CFO. In addition, other members of our executive team are also available to address questions at the conclusion of our prepared remarks; including Milton Cooper, our Executive Chairman; Dave Jamieson, Executive Vice President of Asset Management and Operations; Ross Cooper, Executive Vice President and Chief Investment Officer; and Ray Edwards, Vice President who oversees our Retailer Services Business.

As a reminder, statements made during the course of this call may be deemed forward-looking. 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 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 understand Kimco's operating results. Examples include, but are not limited to, funds from operations and net operating income. Reconciliations of these non-GAAP financial measures are available on our website.

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

Conor Flynn

Thanks, Dave and good morning, everyone. Today we plan to keep our prepared remarks short and sweet. We are firing on all cylinders as we drive towards achieving our 2020 vision and focus on long-term shareholder value. The first quarter highlights the execution of all aspects of our strategy as we focus less on short-term earnings and more on creating long-term net asset value. Our disposition and acquisition activity continues to produce a higher quality portfolio because higher quality is reflected in our leasing production as we continue to attract premier tenants at higher ends.

Our redevelopment and development activity continues to create value and opportunity unlocking the highest and best use of the real estate, and we do all these with a cautious and watchful eye on our balance sheet at our cost of capital. Now for some details; in the first quarter we continue to execute on our disposition strategy by closing on $323 million of dispositions in Canada and $114 million of dispositions in the US. The blended average cap rate was 6.9% in the first quarter and quality buyers ranging from public reads, private reads, local public real estate groups, high network individuals, international buyers and trade buyers all continue to call through our disposition portfolio.

We are in the ninth inning of our transformation, and with the majority of our Canadian portfolio under contract and the progress to date on our US dispositions, we are