Kimco Realty Corporation (NYSE:KIM) Q4 2022 Earnings Call Transcript

Now certain sellers are, in many cases, are still looking for pricing from 12 months ago in the low 5s, and that’s where you’re seeing a lot of the deals going out. But to the extent that we can obtain assets that are 100 basis points higher than where they were a year ago with very strong fundamentals that really haven’t changed based upon all the comments that you heard from Dave and the team here and we feel really good about putting to work in that in that range. And then when you factor in or layer in our structured investment program, which has a higher yield currently in the high-single-digits or low-double-digits, that sort of blends together to get us above our hurdle rate and make our acquisition pipeline and our program accretive from an overall standpoint.

So we’ll continue to look to put money to work if we find those Otherwise, we’ll continue to stay patient as the year progresses.

Operator: Our next question comes from Craig Schmidt from Bank of America. Please go ahead.

Craig Schmidt: Thank you. What is your expected expectation on consumer sales and/or traffic at your properties in ’23 versus ’22?

Conor Flynn: Hey Craig, great question. So we’re off to a good start in 2023. The traffic that we’ve experienced thus far has been above 2022 levels. I think the consumer continues to gravitate towards the shopping center towards the grocery anchors that we have, towards the off-price users that are getting great value and convenience. So that continues to show well. The future is still a little unclear. That’s why I think from a guidance standpoint and from what we’re talking about, we’re not necessarily sure what the second half of the year looks like. And so as we’ve all been talking about so far, so good, the retailer demand is robust. The consumer continues to gravitate towards our product, and we see virtually no new supply on the horizon.

So as we continue to monitor the situation, we feel like the business is on very strong footing allows us to really see into the consumer and their habits. And so far, it looks like we’re really delivering on what the consumer is looking for.

Operator: Our next question comes from Ki Bin Kim from Truist. Please go ahead.

Ki Bin Kim: Thanks. Good morning. So you guys have done a great job increasing your entitlements across all of your different sites. Can you just provide a kind of high-level path for the next couple of years of how you are thinking about monetizing it? And second, when I look at your supplemental on the development section for some of these ground leases, multi-family ground leases. Can you just help me understand that a little better because if I look at the value that is contributing at and the yield is €“ it doesn’t seem to make sense because the land contribution value should be much higher even after taking account for the higher yield. So just if you can help me understand that a little better.