Kimco Realty Corporation (HC)

keypad. If you change your mind, please press star followed by two on your telephone keypad. I will now hand over to the Kimco Realty team to begin. Please go ahead.

Good morning and thank you for joining Kimco's quarterly earnings call. The Kimco management team participating on the call today include Connor Flynn, Kimco CEO, Ross Cooper, President and Chief Investment Officer, Glenn Cohen, our CFO, Dave Jameson, Kimco's Chief Operating Officer, as well as other members of our executive team that are also available to answer questions during the call. As a reminder, statements made during the course of this call may be deemed forward-looking, and 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. Reconciliations of these non-GAAP financial measures can be found in our quarterly supplemental financial information on the Kimco Investor Relations website. Also, in the event our call was to incur technical difficulties, we'll try to resolve as quickly as possible, and if the need arises, we'll post additional information to our IR website. With that, I'll turn the call over to Connor.

Good morning, everyone, and thank you for joining us today. I'm pleased to report another quarter of consistent, high-quality execution, one that reflects the strength of our portfolio, the durability of our strategy, and the exceptional efforts of the Kimco team. For the third quarter, we delivered funds from operations of 44 cents per diluted share, reflecting another quarter of performance ahead of expectations. Based on our strong year-to-date results, and continued visibility into rent commencements, we are raising our full-year FFO outlook, underscoring our focus on delivering top quartile earnings growth within the sector. This outperformance was driven by continued strength across our grocery-anchored portfolio, healthy leasing spreads, and disciplined execution across every region. Our results demonstrate the resilience of the open-air model and the sustained demand we're seeing from retailers across all categories, which I'll further elaborate on shortly. In terms of our same-site NOI, it increased 1.9% for the quarter and 3% year-to-date, which is aligned with our expectations, given we had anticipated an impact from the early recapture of several large anchor boxes, as well as those spaces related to Party City, Joann's, and Rite Aid. Notwithstanding, our base rent growth and recoveries remained healthy, and when the related lost rents are isolated, it amounted to about 130 basis points of drag in the quarter. The good news is that the team has moved quickly to re-tenant all those spaces, often at meaningfully higher rents with stronger operators. The re-leasing of those spaces has been a meaningful contributor to the expansion of our pipeline of leases signed but not yet opened, of 360 basis points, totaling $71 million of future incremental rent growth. Both of these amounts are all-time high records for Kimco. Notably, credit loss did not materially affect our same-site NOI growth. In fact, credit loss overall has been better than expected, and we do not anticipate any near-term disruptions that would alter this. Importantly, leasing momentum accelerated across anchors and small shops alike, resulting in increased occupancy, making the second quarter the occupancy trough for the year, a clear inflection point driven by steady demand and disciplined execution. Specifically, pro-rata occupancy increased 30 basis points sequentially to 95.7%, anchor occupancy rose to 97%, and small shop occupancy reached a new all-time high of 92.5%, up 70 basis points year over year. It's worth noting that the small shop occupancy from the former RPT's portfolio saw a 90 basis point sequential increase and an overall 280 basis point increase since we acquired the portfolio in January of just last year. And we still see plenty of room for further growth of our small shop occupancy. I want to spend a few moments further highlighting the most critical part of our business, Leasing. Leasing activity this quarter was exceptionally strong, underscoring the depth and the quality of retailer demand across our portfolio. During the quarter, we completed 427 leases, totaling 2.3 million square feet, including 144 new deals for 822,000 square feet at a 21% spread and 283 renewals and options at an 8% spread for a blended leasing spread of 11%. Year to date, Lease GLA is up 8% over the same period in 2024. This leasing momentum remains robust given the limited available supply and is translating directly into future growth. This is the proven Kimco model in action, turning dislocation into opportunity, enhancing the quality of our income stream, and converting leasing strength into sustained earnings growth. In short, the leasing success we're achieving today is already building tomorrow's FFO growth. Redevelopment also continues to be a key pillar of long-term value creation strategy and one we intend to increasingly capitalize on moving forward. During the quarter, we elevated approximately $250 million of projects to active or near-term status, bringing our total development, redevelopment, and mixed-use pipeline to roughly $600 million. With our value creation pipeline, we currently have 25 grocery anchor projects, reflecting our focus on categories with proven traffic and rent durability. The pipeline is generating 10% to 12% unlevered returns, reinforcing the attractive risk-adjusted yields we can achieve by reinvesting in our own centers. Year-to-date, we've completed redevelopment projects with a blended yield of 13.7%. We also activated our next mixed-use project, the Chester, located in the fast-growing Daly City, California market in partnership with Bizzuto. This project is another example of how we aim to continue unlocking the value embedded in our entitlement program. To this point, we now have about $260 million of gross costs for multifamily projects under construction, including the 130-unit Coulter Avenue project at Suburban Square that will be completed early next year. Moving ahead, we expect to activate additional multifamily opportunities in our core markets over the next 12 to 24 months. With respect to our capital allocation priorities, they remain unchanged. Focused on further portfolio lease-up and expanding the number of high-return redevelopment projects continue recycling capital accretively from lower-growth ground leases into higher-yielding acquisitions and structured investments, maintain a strong and flexible balance sheet, and allocate capital towards initiatives that drive sustainable cash flow growth and long-term net asset value creation. Finally, as we look ahead, innovation continues to be a defining aspect of our culture and strategy. We formalized that commitment through the creation of the Office of Innovation and Transformation, led by Will Teichman as Chief Innovation and Transformation Officer. This new enterprise function unites our operational improvement, digital transformation, data, and AI efforts under one leader, allowing Kinco to align and better coordinate resources and investments to accelerate innovation. The overall focus of our Office of Innovation and Technology will be to drive strategic enterprise initiatives geared towards building new capabilities. harnessing the power of emerging technologies, including artificial intelligence, unlocking operational synergies, and driving new avenues for growth. Will has a proven track record leading our successful M&A integrations, partnering with information technology to develop and deploy digital leasing tools and developing key functions such as ancillary income, leasing operations, marketing and corporate responsibility, positioning him well to lead our new Office of Innovation and Transformation. To sum up, this was a solid quarter of progress that underscores the strength of our operating platform and the advantages of our grocery anchored strategy, while building a pipeline of high return projects that will support growth for years to come. At Kimco, we are capitalizing on strong retailer demand and translating leasing success into sustained earnings growth. With limited new supply, record small shop occupancy, and a disciplined redevelopment engine, we're well positioned to continue delivering at the top of the sector. Thank you to our entire team for their continued execution and to our shareholders for their support. With that, I'll turn the call over to Ross for an update on the transaction market, followed by Glenn to take you through the financial results and updated outlook. Thank you, Connor.