Stock Report | October 06, 2018 | NYSE Symbol: KIM | KIM is in the S&P 500

Kimco Realty Corporation

Recommendation Price 12-Mo. Target Price Report Currency Investment Style
BUY
$15.88 (as of Oct 05, 2018 4:00 PM ET) $20.00 USD Mid-Cap Value
Equity Analyst Chris Kuiper, CFA

GICS Sector Real Estate Summary This real estate investment trust (REIT) is one of the largest U.S. owners and operators of
Sub-Industry Retail REITs neighborhood and community shopping centers.
Key Stock Statistics (Source: CFRA, S&P Global Market Intelligence (SPGMI), Company Reports)

52-Wk Range $19.79 - 13.16 Oper. FFO/Sh.2018E 1.44 Market Capitalization(B) $6.633 Beta 0.36
Trailing 12-Month FFO/Share 1.55 Oper. FFO/Sh.2019E 1.50 Yield (%) 7.05 3-Yr FFO/Sh. Proj. CAGR(%) 5
Trailing 12-Month P/FFO 10.17 P/FFO on FFO/Sh.2018E 10.93 Dividend Rate/Share $1.12 SPGMI's Quality Ranking B+
$10K Invested 5 Yrs Ago $10,269 Common Shares Outstg.(M) 421.38 Institutional Ownership (%) 88
Price Performance Analyst's Risk Assessment

30-Week Mov. Avg. 10-Week Mov. Avg. GAAP Earnings vs. Previous Year Volume Above Avg. STARS LOW MEDIUM HIGH
12-Mo. Target Price Up Down No Change Below Avg.
Our risk assessment reflects KIM's strong fundamentals,
healthy credit quality and diversified customer base. This
is partly offset by a shift in retailer demand amid a more
difficult retail environment.
Revenue/Earnings Data

Revenue (Million $)
1Q 2Q 3Q 4Q Year
2018 304 293 -- -- --
2017 294 297 295 315 1,201
2016 297 291 285 297 1,171
2015 285 295 289 301 1,167
2014 230 246 256 265 997
2013 223 214 222 206 866

FFO Per Share ($)

1Q 2Q 3Q 4Q Year
Source: CFRA, S&P Global Market Intelligence 2019 E 0.36 E 0.37 E 0.38 E 0.38 E 1.50
Past performance is not an indication of future performance and should not be relied upon as such. 2018 0.39 0.39 E 0.36 E 0.37 E 1.44
Analysis prepared by Equity Analyst Chris Kuiper on Aug 30, 2018 08:47 AM, when the stock traded at $17.27. 2017 0.37 0.41 0.39 0.38 1.55
2016 0.38 0.38 0.18 0.38 1.32
Highlights Investment Rationale/Risk
2015 0.37 0.44 0.40 0.35
Following revenue growth of 2.6% in 2017, we KIM's properties are located in growing 2014 0.34 0.34 0.39 0.38
see flat to slightly declining revenue growth in metropolitan markets where we see healthy Fiscal year ended Dec 31. Next earnings report expected: Late
2018 before rebounding to 1%-3% growth in demand and relatively stable retail supply, Oct. FFO Estimates based on CFRA's Funds From Operations Est..
2019. We expect revenue to be driven by stable despite the negative overhang of retailer news
Dividend Data
occupancy levels and higher rents, offset by and bankruptcies. KIM is one of the largest
dispositions (KIM has now sold 21 non-core or owners and operators of neighborhood
lower-performing shopping centers). open-air retailers with a diverse mix of tenants Amount ($) Date Ex-Div. Stk. of Payment
Occupancy in Q2 2018 increased to 96.0% from including discount retailers, grocery stores and Decl. Date Record Date
95.5% in the prior year. service providers. KIM has aggressively 0.28 Jul 26 Oct 01 Oct 02 Oct 15 '18
We see KIM continuing to benefit from disposed of low-performing properties, over 0.28 Apr 26 Jul 02 Jul 03 Jul 16 '18
relatively strong demand and pricing leverage the past several years, improving the 0.28 Jan 31 Apr 02 Apr 03 Apr 16 '18
due to its properties located in growth markets productivity of its portfolio and shifting the 0.28 Oct 25 Dec 29 Jan 02 Jan 16 '18
with higher barriers-to-entry. Total leasing concentration of assets to coastal markets and 0.11 Spl. Jul 26 Oct 03 Oct 04 Oct 16 '17
spreads increased 9.2% in Q2 2018 as new away from the Midwest. 0.153 Jul 26 Oct 03 Oct 04 Oct 16 '17
leases were 11.5% higher and renewal lease Risks to our recommendation and target price Dividends have been paid since 1992. Source: Company reports.
rates were up 8.5% compared to the expiring include continued retail disruption, retail Past performance is not an indication of future performance
lease rates. Same property net operating bankruptcies and store closures exceeding new and should not be relied upon as such.
income was 3.8% higher year-over-year driven store openings, excess retail real estate supply Forecasts are not reliable indicator of future performance.
by the higher occupancy and leasing spreads, and/or a sharp rise in interest rates.
an acceleration from the 2.6% growth last Our 12-month target price of $20 is equal to
quarter. 13.3X our 2019 FFO per share estimate, which
We estimate 2018 FFO per share of $1.44, is near the shopping center peer average of
expanding to $1.50 in 2019. We see net 13.6X. We see KIMâs improved portfolio of
operating income increasing 1.5% to 2.0% in properties located in higher growth markets
2018, which includes some uncertainty around outpacing peers, with growth driven by diverse
potential "Toys R Us" closures. After years of no retail clients with long-term leases. We also
share buybacks, KIM authorized a $300 million think KIM has a better balance sheet compared
share buyback program in February 2018 to peers.
expiring February 2020.

Redistribution or reproduction is prohibited without written permission. Copyright © 2018 CFRA. This document is not intended to provide personal investment advice and it does not take into account the specific investment
objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek independent financial advice regarding the suitability and/or appropriateness of making an
investment or implementing the investment strategies discussed in this document and should understand that statements regarding future prospects may not be realized. Investors should note that income from such
investments, if any, may fluctuate and that the value of such investments may rise or fall. Accordingly, investors may receive back less than they originally invested. Investors should seek advice concerning any impact this
investment may have on their personal tax position from their own tax advisor. Please note the publication date of this document. It may contain specific information that is no longer current and should not be used to make an
investment decision. Unless otherwise indicated, there is no intention to update this document.
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Stock Report | October 06, 2018 | NYSE Symbol: KIM | KIM is in the S&P 500
Kimco Realty Corporation
Business Summary August 30, 2018 Corporate Information

CORPORATE OVERVIEW. Kimco Realty specializes in the acquisition, development and management of Investor Contact
open air shopping centers. The Company began operations through its predecessor, The Kimco G. G. Cohen (516-869-9000)
Corporation, which was organized in 1966. KIM completed its initial public offering in 1991 and became a
Office
REIT in 1992.
3333 New Hyde Park Road, Suite 100, New Hyde Park,
REAL ESTATE PORTFOLIO. KIM has ownership interest in 493 shopping center properties, aggregating 83.2 New York 11042
million square feet of gross leasable area (GLA) located in 29 states, Puerto Rico and Canada. In addition,
KIM has interest 372 other properties through its preferred equity investments, totaling 5.8 million square Telephone
feet of GLA. KIM's properties are geographically diversified with the largest concentrations in New 516-869-9000
York-New Jersey (13% of rents), Baltimore (6%), Washington D.C. Metro (6%), Philadelphia (5%), Los
Angeles (5%) and Miami (5%). KIM's portfolio is largely coastal with the exception of stores in Chicago, Fax
Denver and parts of the Southwest. 516-869-9001
MARKET PROFILE. KIM's portfolio is located in relatively affluent and growing metropolitan markets; Website
approximately 80% of rents comes from properties in major metropolitan markets. The Company has www.kimcorealty.com
focused its portfolio tenant mix on "everyday living" rather than specialty stores or luxury items, which we
think will make KIM more resilient in a downturn as well as against the rise of e-commerce. Approximately Officers
75% of annual base rent (ABR) is derived from shopping centers with grocery anchors. We prefer grocery
Executive VP, CFO & CEO & Director
anchors over other types as we see them as insulated from online shopping as well as providing daily
traffic that will shop at other stores in the shopping center. Other internet resistant tenants include Treasurer C. C. Flynn
restaurants, services and entertainment. G. G. Cohen President & Chief
FINANCIAL TRENDS. KIM's revenue has dramatically slowed over the past couple of years due to Executive Chairman Investment Officer
dispositions of lower performing properties, which we think is the right choice to improve portfolio M. Cooper R. Cooper
profitability. Net operating income and occupancy also suffered during the recent retail environment VP & Chief Accounting Executive VP & COO
turmoil. However, as retailers have stabilized so has KIM's portfolio with occupancy improving from less Officer D. Jamieson
than 94% in 2013 to 96% by Q2 2018 and leasing spreads now reaching into the low teens.
P. Westbrook
KIM's balance sheet is also relatively stronger compared to peers, with a net debt-to-adjusted EBITDA ratio Executive VP, General
of 5.7X on a consolidated basis and a fixed charge coverage ratio of 3.3X as of Q2 2018. Credit rating Counsel & Secretary
agencies Fitch and Moody's rate KIM a BBB+ and Moody's Baa1. We also like that KIM has taken advantage
B. M. Rubenstein
of the favorable corporate debt market to extend its weighted average maturity to 10.5 years, well above
the typical peer length of 6-7 years, with an average interest rate of 3.8%. Board Members
C. C. Flynn M. H. Preusse
C. M. Nicholas P. E. Coviello
F. Lourenso R. B. Saltzman
J. Grills R. G. Dooley
M. Cooper V. Richardson

Domicile Auditor
Maryland PricewaterhouseCoopers
LLP
Founded
1966
Employees
546
Stockholders
2,162

Redistribution or reproduction is prohibited without prior written permission. Copyright © 2018 CFRA. 2
Stock Report | October 06, 2018 | NYSE Symbol: KIM | KIM is in the S&P 500
Kimco Realty Corporation
Quantitative Evaluations Expanded Ratio Analysis

Fair Value Rank 4 1 2 3 4 5 2017 2016 2015 2014

LOWEST HIGHEST Price/FFO 11.74 19.00 NA NA
Based on CFRA's proprietary quantitative model, FFO/Revenue(%) 54.59 47.46 NA NA
stocks are ranked from most overvalued (1) to most Interest Coverage Ratio 2.22 2.06 1.80 1.76
undervalued (5). % LT Debt to Capitalization 49.73 47.99 50.51 47.93
Avg. Diluted Shares Outsg.(M) 424 420 413 411
Fair Value $16.75 Analysis of the stock's current worth, based on
Calculation CFRA's proprietary quantitative model suggests that Figures based on fiscal year-end price
KIM is slightly undervalued by $0.87 or 5.5%.

Volatility LOW AVERAGE HIGH

Key Growth Rates and Averages
Technical NA
Evaluation Past Growth Rate (%) 1 Year 3 Years 5 Years
Revenue 2.57 6.40 8.44
Insider Activity UNFAVORABLE NEUTRAL FAVORABLE Net Income 12.47 0.16 9.87

Ratio Analysis (Annual Avg.)

% LT Debt to Capitalization 49.73 NA NA
FFO Payout Ratio (%) NM NM NM
Interest Coverage Ratio NM NA NA

Company Financials Fiscal year ending Dec. 31

Per Share Data ($) 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Tangible Book Value 12.02 11.67 11.38 10.93 10.82 11.26 11.13 11.75 11.96 14.69
Earnings 0.87 0.79 2.00 0.76 0.55 0.18 0.17 0.12 -0.14 0.68
Earnings (Normalized) 0.51 0.65 1.09 0.49 0.48 0.26 0.23 0.20 0.19 0.74
FFO 1.55 1.32 NA NA NA NA NA NA NA NA
Dividends 1.09 1.03 0.97 0.92 0.85 0.78 0.73 0.66 0.72 1.68
Payout Ratio (%) 119 125 51 101 169 144 209 215 NM 167
Prices: High 26.16 32.24 28.54 26.04 25.09 21.16 20.31 18.41 20.90 47.80
Prices: Low 17.02 24.35 22.07 19.61 19.22 16.21 13.55 12.40 6.33 9.56
P/FFO Ratio: High 16.9 24.3 NA NA NA NA NA NA NA NA
P/FFO Ratio: Low 11.0 18.4 NA NA NA NA NA NA NA NA

Income Statement Analysis (Million $)

FFO 656 556 NA NA NA NA NA NA NA NA
Rental Income 1,184 1,152 1,144 959 825 756 779 787 755 751
Mortgage Income NA NA NA 3.13 4.30 7.50 7.27 9.40 14.96 18.33
Total Revenue 1,201 1,171 1,167 997 866 801 822 836 813 817
Selling General & Admin. Exp. 113 116 118 116 123 118 117 109 110 115
Interest Expenses 192 193 219 204 212 224 222 223 208 212
Provision for Losses NA NA NA NA NA NA NA NA NA NA
Depreciation + Amortization 345 355 345 258 225 215 218 217 222 205
Net Income 426 379 894 424 236 266 169 143 -4 250
Net Income (Normalized) 214 274 451 202 198 106 93 82 65 191

Balance Sheet and Other Financial Data (Million $)

Cash 239 142 190 187 149 142 113 125 122 136
Short Term Debt NA NA NA NA NA NA NA NA NA NA
Capitalization: Debt 5,479 5,066 5,376 4,596 4,221 4,195 4,114 4,059 4,434 4,557
Capitalization: Equity 5,538 5,490 5,269 4,993 4,856 5,014 4,975 5,256 5,218 4,321
Capitalization: Total 11,764 11,231 11,344 10,261 9,664 9,751 9,629 9,834 10,183 9,397
Earnings from Cont. Ops 440 386 900 385 290 182 142 122 8 250
Total Assets 11,764 11,231 11,344 10,261 9,664 9,751 9,629 9,834 10,183 9,397

Source: S&P Global Market Intelligence. Data may be preliminary or restated; before results of discontinued operations/special items. Per share data adjusted for stock dividends; EPS diluted.
E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked. UR-Under Review.

Redistribution or reproduction is prohibited without prior written permission. Copyright © 2018 CFRA. 3
Stock Report | October 06, 2018 | NYSE Symbol: KIM | KIM is in the S&P 500
Kimco Realty Corporation
Sub-Industry Outlook Industry Performance

We have a neutral fundamental outlook on the S&P Within the broader retail property space there GICS Sector: Real Estate
Retail REITs sub-industry, which was down 3. are a handful of different store/center Based on S&P 1500 Indexes
0% year-to-date through September 28, compared configurations and types. We think enclosed Five-Year market price performance through Oct 06, 2018
to the S&P Real Estate Sector down 0.7% and shopping malls will continue to face
the S&P 1500 index up 8.9%. We think challenges as most of their tenants are
headline-grabbing retailer bankruptcies, such apparel retailers grappling with the rise of
as Toys 'R Us, continue to weigh on the sector online shopping and changing consumer
and sentiment, but believe there will be fewer tastes. However, within this space we see
store closures in 2018 compared to 2017. As malls with valuable “Class A” properties in
of the end of August, there have been nearly prime locations as faring better due to
4,500 announced retail store closures, which continued demand and pricing leverage. We
is tracking slightly behind 2017's total store also see an opportunity for higher class
closure count of nearly 7,100. Nevertheless, shopping malls to recapture poorly performing
we remain neutral as we observe how retailers anchor stores, sub-divide them and re-lease
and the retail REITs adopt to new consumer to higher paying and more diverse tenants.
tastes and shopping habits.
We expect grocery-anchored shopping centers
The Retail REITs in the SNL Financial and single-tenant REITs to perform better due
universe traded at an average discount of 8.8% to Internet-resistant businesses that sell daily
to net-asset-value (NAV) as of September 28, essentials. Most single-tenant REITs have a
2018, versus a 4.4% discount for the broader triple net lease structure where the tenants
SNL U.S. REIT index. CFRA thinks pay rent and the majority of operating
price-to-NAV is a key valuation metric for expenses for the property including taxes,
REITs; NAV is calculated as the net "market utilities and maintenance. We see REITs with
value" of a REIT's assets after subtracting all value-oriented tenants, such as off-price and
liabilities and obligations. The SNL Retail discount retailers, as faring better due to the
REITs index is valued at a price-to-FFO tenants' ability to more effectively compete on
multiple of 15.5X, a discount compared to U. price against online retailers.
S. equity REITs trading at 18.1X as of
We also expect retail REITs with properties
September 28, 2018. Although Retail REITs
located in dense urban areas to perform
have historically traded in line with the total
relatively better due to constraints in supply as
U.S. REIT index, the current discount may be
well as a relatively more affluent customer NOTE: A sector chart appears when the sub-industry does
warranted due to ongoing retailer challenges.
base. However, even with superior real estate not have sufficient historical index data.
Retail REITs showed a 1.5% year-over-year locations, these REITs will need to increase All Sector & Sub-Industry information is based on the
decline in FFO in the second quarter of 2018, capital expenditures to redevelop and Global Industry Classification Standard (GICS).
compared to 7.6% growth for the broad SNL U. reposition properties to adapt to the shifting Past performance is not an indication of future performance
S. REIT index. This compares to 0.2% growth retailer trends. We expect to see more smaller and should not be relied upon as such.
for Retail REITS and in the second quarter of store formats and a move to mixed use Source: S&P Global Market Intelligence
2017. FFO (funds from operations) is the most properties that could include hotels,
commonly reported measure of REIT operating residential units or offices.
performance and is equal to a REIT’s
/Chris Kuiper, CFA
net income, excluding gains or losses from sales
of property, plus real estate depreciation.

Sub-Industry: Retail REITs Peer Group*: Retail REITs

Recent 30-Day 1-Year Fair Return
Stock Stock Stk. Mkt. Price Price P/E Value Yield on Equity LTD to
Peer Group Symbol Exchange Currency Price ($) Cap. (M $) Chg. (%) Chg. (%) Ratio Calc. ($) (%) (%) Cap (%)

Kimco Realty Corporation KIM NYSE USD 15.88 6,633 -7.8 -17.7 15 16.75 7.1 8.0 49.7
British Land Company Plc BRLA.F OTCPK USD 7.650 7,470 -5.4 -4.0 12 NA Nil 5.3 25.2
Brixmor Property Group Inc. BRX NYSE USD 15.96 4,857 -12.2 -14.9 16 15.20 6.9 10.3 66.1
Federal Realty Investment Trust FRT NYSE USD 122.72 9,021 -5.7 -2.7 32 103.11 3.3 12.5 55.2
Japan Retail Fund Investment Corporation JNRF.Y OTCPK USD 17.72 4,642 -2.5 -2.4 22 NA Nil 5.6 41.0
Macerich Company MAC NYSE USD 51.80 7,315 -9.6 -9.3 NM 39.25 5.7 3.9 56.6
National Retail Properties, Inc. NNN NYSE USD 43.93 6,875 -4.4 4.1 25 42.52 4.6 6.8 40.2
RioCan Real Estate Investment Trust RIOC.F OTCPK USD 18.56 5,895 -2.6 -6.0 12 18.76 6.0 8.8 40.5
Spirit Realty Capital, Inc. SRC NYSE USD 7.740 3,317 -8.1 -9.2 43 6.340 6.5 2.2 52.3
Taubman Centers, Inc. TCO NYSE USD 55.39 3,379 -13.1 7.8 58 48.39 4.7 NM 104.2
Weingarten Realty Investors WRI NYSE USD 28.38 3,632 -7.6 -11.4 8 33.60 5.6 19.9 52.9

*For Peer Groups with more than 10 companies or stocks, selection of issues is based on market capitalization.
NA-Not Available NM-Not Meaningful.
Note: Peers are selected based on Global Industry Classification Standards and market capitalization. The peer group list includes companies with similar characteristics, but may not include all the companies within the same
industry and/or that engage in the same line of business.

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Stock Report | October 06, 2018 | NYSE Symbol: KIM | KIM is in the S&P 500
Kimco Realty Corporation
Analyst Research Notes and other Company News

July 27, 2018 May 03, 2017

08:05 am ET... CFRA MAINTAINS BUY OPINION ON SHARES OF KIMCO REALTY 03:32 pm ET... CFRA KEEPS BUY OPINION ON SHARES OF KIMCO REALTY
CORPORATION (KIM 16.67****): We raise our 12-month target price by $3 to CORPORATION (KIM 20.1****): We trim our 12 month target by $4 to $23, or 14.9X
$20, equal to 13.3X our 2019 FFO per share estimate and near the peer average our '17 FFO per share estimate of $1.54, 13.7X our '18 FFO per share estimate of
of 13.6X. We maintain our FFO per share estimates of $1.44 and $1.50 for 2018 $1.68, versus peers' 14.1X and 13.5X average forward multiples (that includes
and 2019, respectively. KIM posts Q2 adjusted FFO per share of $0.37 vs. $0. several distressed firms), respectively. Q1 FFO of $0.38, vs. $0.37, matched our
38, $0.01 above consensus. Occupancy increased to 96.0% from 95.5% in the prior estimate. Though turmoil in the retail industry has pressured the shares, we view
year while new and renewing lease rates were up 9.2% This drove same-property KIM, with 96% portfolio occupancy rates, 10.9% higher Q1 releasing spreads, and a
net operating income (NOI) up a strong 3.8%. KIM increased guidance for NOI below-peer debt/capital ratio of 48%, as undervalued. The shares' 5.4% current
growth to 2.25%, up from 1.75% at the midpoint, although FFO guidance was yield also adds to total return potential. /C. Seifert
virtually unchanged. We think the Q2 quarter demonstrated solid execution as
KIM is on track to meet its goal of $700-$900 million in dispositions, selling
17 shopping centers in Q2. While the portfolio transformation and retailer
bankruptcies, such as the remaining Toys R Us stores, will take time, we note
investors get paid an attractive 6.7% dividend while they wait. /Chris Kuiper,
CFA

April 26, 2018

04:06 pm ET... CFRA REITERATES BUY OPINION ON SHARES OF KIMCO REALTY
CORPORATION (KIM 13.24****): We trim our 12-month target price by $1 to $17,
equal to 12X our 2018 FFO per share estimate and equal to retail REIT peers.
We maintain our FFO per share estimate of $1.44 for 2018 and trim 2019's by
$0.04 to $1.50. KIM posts Q1 adjusted FFO per share of $0.37 vs. $0.37, $0.
01 above consensus. Same-store net operating income (NOI) grew 2.6%
year-over-year in Q1, driven by occupancy increasing to 96.1% (up 10 basis
points year-over-year and 80 basis points sequentially) as well as new and
renewing rents up 8.1%. We are positive on KIM's continued progression of
selling lower quality assets, mainly in the Midwest, and focusing on improving
leasing volume and redevelopment. The retail environment for shopping centers
may be stabilizing, given vacancies were less than anticipated, prompting KIM
to revise its same-store NOI guidance higher. While KIM will still face
challenges related to its 22 Toys 'R Us stores, we think shares are trading
at attractive levels with an 8.4% dividend yield. /Chris Kuiper, CFA

February 20, 2018

12:47 pm ET... CFRA MAINTAINS BUY OPINION ON SHARES OF KIMCO REALTY
CORPORATION (KIM 15.2****): We lower our 12-month target price by $3 to
$18, equal to 12.5X our 2018 FFO estimate and near the peer average. We lower
our 2018 FFO per share estimate by $0.16 to $1.44 and add 2019's at $1.54.
KIM posts Q4 adjusted FFO per share of $0.39 vs. $0.38, $0.01 above consensus.
Occupancy increased to 96.0% from 95.4% last year and same property NOI was
up 1.2%, which includes a 1.2% reduction due to Hurricane Maria. We like KIM's
aggressive disposition program to shift the portfolio to coastal markets and
grocery anchored shopping centers as well as a $300 million buyback program.
/Chris Kuiper, CFA

October 26, 2017

09:12 am ET... CFRA MAINTAINS BUY OPINION ON SHARES OF KIMCO REALTY
CORPORATION (KIM 18.07****): We trim our 12-month target price by $1 to
$21, applying a peer average 13.2X forward price-to-FFO to our ‘18
estimate. We lower our FFO estimates by $0.05 to $1.52 for 2017 and by $0.08
to $1.60 for 2018. KIM posts Q3 FFO of $0.38, vs. $0.38, in-line with
consensus. Negative retail news continues to weigh on shares but we see KIM
continuing to navigate the environment well with occupancy increasing to 95.8%
in Q3, up from 95.1% last year. Same property net operating income grew 3.1%
year-over-year for 3Q, driven by the higher occupancy and total leasing spread
up 16.0%. /Chris Kuiper, CFA

August 04, 2017

02:45 pm ET... CFRA KEEPS BUY OPINION ON SHARES OF KIMCO REALTY (KIM 20.
36****): We trim our 12-month target by $1 to $22, or 14X our '17 FFO per
share estimate of $1.57 (raised by $0.03), 13.1X our '18 FFO per share
estimate of $1.68, versus peers' 13.1X and 12X average forward multiples (that
include several distressed firms), respectively. Q2 FFO of $0.41 vs. $0.38
topped our $0.38 estimate. Though turmoil in the retail industry has pressured
the shares, we view KIM, with 96% portfolio occupancy rates, 10.5% higher Q2
releasing spreads, and a below-peer debt/capital ratio of 48%, as undervalued.
The shares' 5.3% current yield also adds to total return. /C. Seifert

Note: Research notes reflect CFRA's published opinions and analysis on the stock at the time the note was published. The note reflects the views of the equity analyst as of the date and time
indicated in the note, and may not reflect CFRA's current view on the company.
Redistribution or reproduction is prohibited without prior written permission. Copyright © 2018 CFRA. 5
Stock Report | October 06, 2018 | NYSE Symbol: KIM | KIM is in the S&P 500
Kimco Realty Corporation
Analysts' Recommendations Wall Street Consensus Opinion

Monthly Average Trend Buy Buy/Hold Hold Weak Hold Sell KIM Ticker HOLD
B BH H WH S

Wall Street Consensus vs. Performance

For fiscal year 2018, analysts estimate that KIM will earn
USD $0.64. For the 2nd quarter of fiscal year 2018, KIM
announced earnings per share of USD $0.36, representing
56.3% of the total revenue estimate. For fiscal year 2019,
analysts estimate that KIM's earnings per share will
decline by 12% to USD $0.56.

No. of % of Total 1 Mo.Prior 3 Mos.Prior

Recommendations
Buy 2 10 2 2
Buy/Hold 4 19 4 4
Hold 13 62 13 12
Weak Hold 0 0 0 1
Sell 2 10 2 2
No Opinion 0 0 0 0
Total 21 100 21 21
Wall Street Consensus Estimates

Estimates 2017 2018 2019 2017 Actual (Normalized Diluted) $0.51

Fiscal Years Avg Est. High Est Low Est. # of Est. Est. P/E
2019 0.56 0.60 0.52 2 28.4
2018 0.64 0.64 0.64 1 24.8
2019 vs. 2018 -12% -6% -19% 100% 15%

Q3'19 0.15 0.15 0.15 1 NM

Q3'18 0.12 0.14 0.09 2 NM
Q3'19 vs. Q3'18 25% 7% 67% -50% NA

Forecasts are not reliable indicator of future performance.

Note: A company's earnings outlook plays a major part in any investment decision. S&P Global Market Intelligence organizes the earnings estimates of over 2,300 Wall Street analysts, and
provides their consensus of earnings over the next two years, as well as how those earnings estimates have changed over time. Note that the information provided in relation to consensus
estimates is not intended to predict actual results and should not be taken as a reliable indicator of future performance.
Note: For all tables, graphs and charts in this report that do not cite any reference or source, the source is S&P Global Market Intelligence.

Redistribution or reproduction is prohibited without prior written permission. Copyright © 2018 CFRA. 6
Stock Report | October 06, 2018 | NYSE Symbol: KIM | KIM is in the S&P 500
Kimco Realty Corporation
Glossary FY - Fiscal Year
P/E - Price/Earnings
STARS P/NAV - Price to Net Asset Value PEG Ratio - P/E-to-Growth Ratio PV - Present
Since January 1, 1987, CFRA Equity and Fund Research Services, and its Value
predecessor S&P Capital IQ Equity Research has ranked a universe of U.S. R&D - Research & Development ROCE - Return on Capital Employed ROE -
common stocks, ADRs (American Depositary Receipts), and ADSs (American Return on Equity
Depositary Shares) based on a given equity's potential for future performance. ROI - Return on Investment
Similarly, we have ranked Asian and European equities since June 30, 2002. ROIC - Return on Invested Capital
Under proprietary STARS (Stock Appreciation Ranking System), equity analysts ROA - Return on Assets
rank equities according to their individual forecast of an equity's future total SG&A - Selling, General & Administrative Expenses
return potential versus the expected total return of a relevant benchmark (e.g., a SOTP - Sum-of-The-Parts
regional index (S&P Asia 50 Index, S&P Europe 350® Index or S&P 500® Index)), WACC - Weighted Average Cost of Capital
based on a 12-month time horizon. STARS was designed to meet the needs of
Dividends on American Depository Receipts (ADRs) and American Depository
investors looking to put their investment decisions in perspective. Data used to
Shares (ADSs) are net of taxes (paid in the country of origin).
assist in determining the STARS ranking may be the result of the analyst's own
models as well as internal proprietary models resulting from dynamic data Qualitative Risk Assessment
inputs. Reflects an equity analyst's view of a given company's operational risk, or the
risk of a firm's ability to continue as an ongoing concern. The Qualitative Risk
S&P Global Market Intelligence's Quality Ranking
Assessment is a relative ranking to the U.S. STARS universe, and should be
(also known as S&P Capital IQ Earnings & Dividend Rankings) - Growth and
reflective of risk factors related to a company's operations, as opposed to risk
stability of earnings and dividends are deemed key elements in establishing S&P
and volatility measures associated with share prices. For an ETF this reflects on
Global Market Intelligence's earnings and dividend rankings for common stocks,
a capitalization-weighted basis, the average qualitative risk assessment
which are designed to capsulize the nature of this record in a single symbol. It
assigned to holdings of the fund.
should be noted, however, that the process also takes into consideration certain
adjustments and modifications deemed desirable in establishing such rankings. STARS Ranking system and definition:
The final score for each stock is measured against a scoring matrix determined 5-STARS (Strong Buy):
by analysis of the scores of a large and representative sample of stocks. The Total return is expected to outperform the total return of a relevant benchmark,
range of scores in the array of this sample has been aligned with the following by a notable margin over the coming 12 months, with shares rising in price on an
ladder of rankings: absolute basis.
A+ Highest B Below Average 4-STARS (Buy):
A High B- Lower Total return is expected to outperform the total return of a relevant benchmark
A- Above Average C Lowest over the coming 12 months, with shares rising in price on an absolute basis.
B+ Average D In Reorganization 3-STARS (Hold):
NR Not Ranked Total return is expected to closely approximate the total return of a relevant
EPS Estimates benchmark over the coming 12 months, with shares generally rising in price on
CFRA's earnings per share (EPS) estimates reflect analyst projections of future an absolute basis.
EPS from continuing operations, and generally exclude various items that are 2-STARS (Sell):
viewed as special, non-recurring, or extraordinary. Also, EPS estimates reflect Total return is expected to underperform the total return of a relevant
either forecasts of equity analysts; or, the consensus (average) EPS estimate, benchmark over the coming 12 months, and the share price is not anticipated to
which are independently compiled by S&P Global Market Intelligence, a data show a gain.
provider to CFRA. Among the items typically excluded from EPS estimates are 1-STAR (Strong Sell):
asset sale gains; impairment, restructuring or merger-related charges; legal and Total return is expected to underperform the total return of a relevant
insurance settlements; in process research and development expenses; gains or benchmark by a notable margin over the coming 12 months, with shares falling
losses on the extinguishment of debt; the cumulative effect of accounting in price on an absolute basis.
changes; and earnings related to operations that have been classified by the Relevant benchmarks:
company as discontinued. The inclusion of some items, such as stock option In North America, the relevant benchmark is the S&P 500 Index, in Europe and in
expense and recurring types of other charges, may vary, and depend on such Asia, the relevant benchmarks are the S&P Europe 350 Index and the S&P Asia
factors as industry practice, analyst judgment, and the extent to which some 50 Index, respectively.
types of data is disclosed by companies.
12-Month Target Price
The equity analyst's projection of the market price a given security will command
12 months hence, based on a combination of intrinsic, relative, and private
market valuation metrics, including Fair Value.
CFRA Equity Research
CFRA Equity Research is produced and distributed by Accounting Research &
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Abbreviations Used in Equity Research Reports
CAGR - Compound Annual Growth Rate
CAPEX - Capital Expenditures
CY - Calendar Year
DCF - Discounted Cash Flow
DDM - Dividend Discount Model
EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation & Amortization
EPS - Earnings Per Share
EV - Enterprise Value
FCF - Free Cash Flow
FFO - Funds From Operations
Redistribution or reproduction is prohibited without prior written permission. Copyright © 2018 CFRA. 7
Stock Report | October 06, 2018 | NYSE Symbol: KIM | KIM is in the S&P 500
Kimco Realty Corporation
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Ranking North America Europe Asia Global
Other Disclaimers and Notices
Buy 39.1% 31.9% 37.3% 36.1% Certain information in this report is provided by S&P Global, Inc. and/or its affiliates and
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Stock Report | October 06, 2018 | NYSE Symbol: KIM | KIM is in the S&P 500
Kimco Realty Corporation
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