Kimco Realty Corporation (NYSE:KIM) Q2 2016 Earnings Conference Call - Final Transcript

Jul 28, 2016 • 10:00 am ET


Kimco Realty Corporation (NYSE:KIM) Q2 2016 Earnings Conference Call - Final Transcript


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

I would now like to turn the conference over to David Bujnicki. Please go ahead.

David Bujnicki

Thanks, and good morning and thank you for joining Kimco's second quarter earnings call. With me on the call this morning is Conor Flynn, the President and CEO; Ross Cooper, our CIO; and Glenn Cohen, our CFO.

In addition, other members of our executive team are also available to address questions at the conclusion of our prepared remarks, including Milton, our Executive Chairman; Dave Jamieson, our EVP of Asset Management Operations; and Ray Edwards, our EVP of Retailer Services.

(Forward-Looking Cautionary Statements)

During this presentation, Management may make reference to certain non-GAAP financial measures that we believe help investors better understand Kimco's operating results. Examples include, but are not limited to, funds from operations and net operating income. A reconciliation of these non-GAAP financial measures are available on our website.

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

Conor Flynn

Thanks, Dave, and good morning, everyone. Today we will report on major milestones that encompass our 2020 vision. I will give a quick update on the execution of our strategic goals, quarterly metrics and development and redevelopment pipelines before turning it over to Ross to cover acquisitions and dispositions, followed by Glenn to discuss our financial results.

We are making great strides of creating long-term shareholder value as we continue to simplify and strengthen our business. With our recent Canadian dispositions, our strategic exit from Canada is over 90% complete and we have further reduced our joint venture investment. More specifically, the number of properties in our JV portfolio now stands at 152. That's compared to 551 sites in 2010, a decrease of 72%.

And the overall value of the joint venture portfolio is currently $5.4 billion gross, as compared to $12.3 billion gross in 2010, a decrease of 56%. We are further simplifying our capital structure by redeeming our Canadian bonds to coincide with our exit of Canada. We will also prepay an unsecured bond and a portion of our US mortgages that come due in 2017 to take full advantage of the all-time low rate environment and further extend our maturity profile.

We continue to monitor and evaluate opportunities in the capital markets, including the use of our ATM to improve the balance sheet as we strive to achieve our publicly stated goal of achieving an A-minus A3 credit rating. All of these efforts will put Kimco in a position of strength for the next cycle and move us closer to our 2020 vision.

Internally, we will be merging our primary taxable REIT subsidiary into the parent company, thus transferring long-term hold assets into the REIT structure, to simplify and make our holdings more efficient. Overall, the strong fundamentals of high quality