Kimco Realty Corporation (NYSE:KIM) Q3 2023 Earnings Call Transcript

Conor Flynn: There was a big one-time item as Glenn mentioned, the pension income we recognized was about $8.7 million. That’s what’s in that other income line. You back that out, you’re back to a more normalized level.

Libby Bakken: Got it. Thanks.

Operator: The next question comes from Anthony Powell with Barclays. Please go ahead.

Anthony Powell: Hi, thanks for the follow-up. I saw the lease summary that landlord worked first square foot went up to close to $8 in the quarter. I’m assuming that’s related to the Bed-Bath Beyond lease, but I wanted to confirm that and maybe talk about TIs and landing work trends going forward?

Dave Jamieson: Yes, sure. So there’s a couple of components. Let’s start with the first and new leases side. So the new lease side, is slightly higher, driven by primarily three deals. If you left those deals out, the total work for TI and landlord work would go from 51 down to 40 which is at the lower end of a more normalized rate. The returns on the deals were in excess of 20-plus percent. So very accretive and the mark-to-market on those is between 80% and 116%. So very, very accretive deals. But again, back those out, you get down to the $40 range. In terms of the overall, where you include new leases, renewals and options, it is elevated because of the weight of the number of new leases executed and we’d also did ‘24 anchor deals that quarter — this last quarter.

First, the number of renewals and options, if you see those are a little bit lighter. So obviously, when you blend it together, the weighted component of the new deals grow that number up a little bit. But from a cost standpoint, as you can see, the renewals and options are pretty much in line as well. So that’s just the nuance difference between this quarter and prior quarters.

Operator: This concludes our question-and-answer session. I’d like to turn the conference back over to David Bujnicki for any closing remarks.

David Bujnicki: We just appreciate everybody that participated on the call. Enjoy the rest of your day. Thank you so much.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.