Glenn Cohen: Yes. I mean it has a minor impact. Remember, the overall part of the portfolio, 92% of the portfolio is all the Kimco assets. So it doesn’t have a major impact to it. Really, the bulk of the growth is really coming from the legacy Kimco assets today. It does have some impact. Again, as Dave mentioned, their SNO pipeline is 570 basis points, it’s about $12 million. So there is some of that $12 million that we’re expecting to come online during the year as well.
Operator: The next question comes from Linda Tsai with Jefferies.
Linda Tsai: Any thoughts on where occupancy ends up year-end between anchor and in-line? And would you expect the remaining 8 Bed Bath & Beyond boxes to be leased up by then?
David Jamieson: Yes. I mean that’s our goal is obviously to resolve the Bed Bath boxes in ’24 based on the demand that we’re seeing, we feel encouraged by that. I also want to note that we’re inheriting 3 additional boxes a result of RPT, so on a go-forward now, we’ll have 11. And again, we’re encouraged by the activity there. As it relates to occupancy, I’m always challenged to push the envelope higher and push the mark higher. I mean, exceeding 91.1 and getting to 91.7 on the small shop side was a great milestone at the end of the year. And I do just want to like put into context, this was all in the midst of merging another company into Kimco. So I can’t thank our broader team enough on the execution that they’ve done in executing over 1 million square feet of leasing.
So we’ll continue to push as hard as we can on the anchor side. We’re at 98%. Our all-time high was 98.9%. And so we have room to run there, too which is encouraging. And then bringing on RPT, as Conor mentioned, there is additional upside to on a relative basis from where our occupancy in theirs is. So we’ll have our work cut out for us in ’24 but we feel encouraged.
Conor Flynn: Linda, if you remember, Q1 typically obviously has the holiday hangover from some of the tenants that close after the holidays. So resetting the occupancy with RPT and the holiday impact and then growing the occupancy through the year is typically how the year commences. And obviously, with the momentum we’re experiencing, the diversity of demand, we’re confident that we should be able to grow the occupancy throughout the year after Q1.
David Jamieson: Yes. And just one last note on that. It’s not only just the new lease side but it’s also the retention side which is so important in terms of preserving and then growing your occupancy. And right now, when you look at the first half of the year, we’re tracking around 70% of our rollover right now getting resolved. So we feel pretty encouraged by the momentum as well.
Operator: [Operator Instructions] The next question comes from Anthony Powell with Barclays.
Anthony Powell: Just a question on the rent bumps signed on your leases in the fourth quarter. Where were they? And where do you think — and when do you think this effort to increase your contractual rent bumps will start to have results in higher minimum rent growth for you in the future?
David Jamieson: Yes. Our — we continue to push bumps obviously on the anchor in the small shop side. I think you’re seeing different opportunities in different parts of the market. In some areas, you can push north of 3% or in the 4% range in other markets might be a little bit different. But we’re challenged to grow as much as we can on an annualized basis. And we’re seeing, again, a good response because of the supply-demand imbalance right now and the multiple bidders at the table.
Conor Flynn: I would say just the small shop side continues to improve quarter-over-quarter. I think we’ve been tracking that diligently and pushing that hard. The anchor side is still aware there’s some friction and we’re trying to improve that if we can. But again, there’s still, I would say, some modest improvement there but not as significant as the small shop side.
Operator: The next question comes from Ronald Kamdem with Morgan Stanley.
Ronald Kamdem: Just two quick ones for me. The first is just on the dispositions guidance, is that all RPT, number one? And number two, is that — should we be expect — is that everything that you wanted to sell? Or should we be expecting sort of more as you get through this first batch?
Ross Cooper: Yes, the guidance is the vast majority of RPT dispositions. We always have some smaller land parcels and clean-up items but it’s primarily in a meaningful way RPT. As I mentioned before, once we complete these dispositions in the first half of the year, we believe that we’ve successfully executed on the plan. And then on a go-forward basis, we’ll just look at pruning as we do any Kimco asset that reaches the end of its life cycle.
Operator: We have a follow-up from Floris Van Dijkum with Compass Point.
Floris Van Dijkum: Just a quick follow-up question. Shop occupancy, Conor, you’ve talked about this and this is one of your biggest opportunities here. And clearly, there’s upside you talked about in the RPT portfolio, in particular. Maybe if you could also give a little bit of flavor on why your mixed-use presents an opportunity for your shop. And is your shop occupancy higher in your mixed-use assets versus your stand-alone retail assets?
Conor Flynn: Sure. Happy to, Floris. I think when you look at the small shop occupancy upside, it’s significant because that’s really where if you look at sort of the anchor occupancy reaching like, in essence, relatively full, that’s where we see a lot of upside on the small shop side. I like the diversity of demand that we’re experiencing as well right now in small shops. If you think about our percentages of small shops, restaurants and entertainment are still pretty sizable. They’re about 1/3. Personal care services are up to about 15%. We’re seeing the service industry really come back. Other services outside of personal care, that’s another 12%. And then medical has really picked up as well at close to 6%. So when you look at like the components of really what’s driving the occupancy on the small shop side, it’s pretty diverse because each of those categories have a number of names that are out doing hundreds of stores.
And I think with our platform, we’re able to actually give retailers the ability to hit their growth potential numbers because right now, they’re challenged to find high-quality retail and you can come to Kimco and get it in space. And so that’s where I think we have a real opportunity with the platform to get more market share on these new growth small shop openings. On the spread between the grocery-anchor portfolio and the mixed-use portfolio, there’s really not a sizable spread there between the 2 to say that one is significantly higher than the other. Right now, clearly, the rents we’re getting on the mixed-use portfolio are higher but most of those mixed use or apartment towers that have retail and the base of it are high-dense areas, high-growth markets with significant demand.
And so we have been able to push rents and those rents are significantly higher than the grocery-anchored portfolio. Hopefully, that helps.
Operator: Next question comes from Tayo Okusanya with Deutsche Bank.
Tayo Okusanya: Thanks for your earlier comments on Mary Brickell. Just curious in general around redevelopment. How you guys are kind of thinking about that as a potential use of capital. A lot of your peers seem to be ramping up that business. And I’m just kind of curious within your portfolio, how you’re kind of thinking about redev.
David Jamieson: Yes. As we mentioned earlier, our big focus right now is more on the retail redevelopment side and which is leasing driven. You’re looking to build a better mouse trap and work with high-quality tenants to reposition parts of the center. So we’ll continue to pursue that strategy as the yields and the returns on the are fairly accretive. More broadly speaking, when you look at the multifamily opportunities that we have with all of our entitlements, those are lower-yielding investments and we’re very selective and strategic about activating those. In our case, we’re constantly watching the capital markets, the supply demand as there is known to be a lot of new supply that will be coming on the multifamily side.
So we want to be very strategic and cautious about that. But we’re always assessing what the best use of our capital is. There’s great investment opportunities with Ross and what he’s looking at right now as well. So we really look at the holistic plan and how we utilize our capital in any given year to make sure we’re driving the most accretive returns.
Operator: The next question comes from Jamie Feldman with Wells Fargo.
Jamie Feldman: I was hoping to get some more color on the acquisition and structured finance investment — or structured investments guidance. Just can you talk more about what you’re seeing in the market today? Or is anything loosening up now, maybe that you didn’t see a couple of months ago, given what’s going on with some of the banks? And then, kind of what gives you confidence on your numbers? You have — first half, you’ve got $100 million to $150 million, is that something that’s kind of in the bag and you’re working on? Maybe just more color around what gives you confidence on those numbers? And do you think it could be higher or even lower by year-end?
Glenn Cohen: Sure. Yes. As I mentioned, there’s definitely more optimism in the marketplace as the rate volatility has come down a little bit. There have been an uptick of assets that have been introduced to the market. We’re seeing it each day. And anecdotally, speaking with brokers, they’re seeing more activity. They’re doing a lot more ELVs, broker opinions of value. So it’s indicative that there are a lot of groups that are out there that are contemplating, bringing assets to the market if they haven’t already. From our perspective, what we’ve seen that’s interesting. There are several larger assets that are on the market that tend to have fewer viable all-cash buyers. So any time we’re looking at making acquisitions or investments, we try to think about where is our strategic advantage.
And there is a lot of capital that is bidding on grocery-anchored neighborhood shopping centers. There are fewer buyers that are capable of taking down a larger asset like the Stonebridge deal that we bought last summer that the team is extremely excited about as long-term redevelopment opportunity but it’s a larger size that makes it more difficult for an all-cash buyer. So that’s a lot of what we’re looking to do. It’s a similar playbook that we’ve taken on in the last couple of years. As it relates to the structured investments, we have seen an increase in conversations. We have a couple of deals that are currently in the pipeline, hopefully, a few more that are behind it. So we’re very confident in the guidance that we put out and now it’s our job to execute on that.
Operator: We have a follow-up from Alexander Goldfarb from Piper Sandler.
Alexander Goldfarb: Just Conor, big picture, a lot of the questions on the call are clearly around guidance and trying to understand growth. As we think about this year and I’m not asking for ’25 guidance, so don’t worry. But as we think about the company this year is the sort of slower growth, is that more a function of a lot of the puts and takes with RPT and a lot of, I don’t want to call them one-timers but benefits last year, lower interest rates, et cetera. And therefore, this year is really subpar relative to where the company is going? Or are those of us who are sort of bullish on retail a bit too optimistic about the growth potential and that, in fact, it will take longer for the leverage that you guys are getting certainly in your re-leasing spreads to manifest in earnings growth? I’m just trying to balance which this year is being more impacted by?
Conor Flynn: Sure. So if you think about this year, specifically, we did try to outline some of the onetime items or the initial headwinds that we’re facing that will not repeat going forward. Glenn outlined the amortization of the Weingarten bond, that’s just this year and will not repeat going forward after this year. We do have a lot of SNO pipeline, signed but not opened. ABR coming online that’s back-half weighted. So again, obviously, that will benefit the ’25 and going forward from there. There’s a lot of, I think, embedded growth in the portfolio that has yet to be unlocked. And getting those tenants open and operating is sort of the significant fuel for the growth of the platform going forward. Obviously, interest expense headwinds have been significant for everyone in any commercial real estate sector.
