Kimco Realty Corporation (NYSE:KIM.PRK) Q4 2016 Earnings Conference Call - Preliminary Transcript

Feb 03, 2017 • 10:00 am ET

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Kimco Realty Corporation (NYSE:KIM.PRK) Q4 2016 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good day and welcome to Kimco's Fourth Quarter 2016 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note that this event is being recorded.

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

Executive
David Bujnicki

Thanks, Steven. Good morning and thank you for joining Kimco's fourth quarter 2016 earnings call. With me on the call this morning is Conor Flynn, our President and Chief Executive Officer; Ross Cooper, the Chief Investment Officer; and Glenn Cohen, the CFO.

In addition, there are other members of our executive team that are also available to address you during the conclusion of our prepared remarks, including Milton, Dave Jamieson and Ray Edwards.

As a reminder, statements made during the course of this call maybe 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 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. Examples include, but are not limited to funds from operations and net operating income. Reconciliations of these non-GAAP financial measures are also available on our Website.

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

Executive
Conor Flynn

Good morning and thank you for joining us. Today I will provide a progress update on our 2020 vision, as well as our view of the current retail environment. We will also provide an update on our portfolio activities, and Glenn will cover our fourth quarter and full-year results, as well as provide color on our 2017 guidance and outlook.

2016 was a very productive year for Kimco and the team has been executing on our four key strategic goals, which are to, one, significantly improve the quality of the portfolio. Two, unlock the embedded growth. Three, strengthen the balance sheet, and four develop and motivate employees to further strengthen our team. In line with our 2020 vision to create a high-quality major metro focus portfolio that is US centric, we undertook and completed a large disposition program during the year. We were able to divest assets at an opportune time when rates were hovering near all-time lows and demand for open-air centers was at an all-time high. At our December 2015 Investor Day, we outlined a five year strategy, recognizing that our path to achieve our 2020 goals may not be linear.

As you saw in our press release, the sale of our lowest quality in international properties will have a short-term impact on our FFO in 2017. Glenn will cover this shortly. Our portfolio of high-quality shopping centers is now tightly concentrated in the best markets in the US. And our signature series of redevelopment and development projects are progressing. Regarding redevelopments, we completed $160 million in projects during 2016, including our fixed -- our first mixed-use property,