Kimco Realty Advances Sustainable Growth With $493.7 Million Green Bond Funds

NEW YORK, August 14, 2024 — Kimco Realty® (NYSE: KIM), a real estate investment trust (REIT) that operates high-quality, open-air, grocery-anchored shopping centers and mixed-use assets in the U.S., today announced the full allocation of $493.7 million in net proceeds from its inaugural green bond issuance in July 2020. This green bond was Kimco's first foray into sustainable finance and purposefully deployed to support a wide array of environmentally focused projects. Such initiatives help further fortify Kimco's commitment to reducing its carbon footprint while enhancing the long-term resiliency and value of its assets for both the communities it serves and its investors. "We are very pleased to have attained full allocation of our inaugural green bond – an accomplishment which evidences our commitment toward sustainable growth and agile financial management," said Glenn G. Cohen, executive vice president and chief financial officer at Kimco Realty Corporation. "By investing in a mix of diversified green projects—from certified green buildings and renewable energy to water and energy projects—we ensure enhanced value of our assets with long-term advantage creation for both investors and the community," said Glenn Cohen, EVP and CFO at Kimco. Key Investments and Environmental Achievements Renewable Energy Initiatives: Of the many important green bond allocation highlights of Kimco, the most memorable would have to be its investment in the 988.8 kW solar energy project at Carmans Plaza in Massapequa, NY. The renewable energy this is expected to produce annually is 1.2 GWh—sufficient to power more than 100 homes yearly. This one initiative is likely to save close to 678 metric tonnes of CO2 emissions annually and go a long way in cutting the company's overall carbon footprint. Green Building Certifications: Kimco utilized the proceeds from the Green Bonds in the development and certification of several high-performance buildings. Among them are The Milton and The Witmer towers at Pentagon Centre in Arlington, VA, and the West Alex mixed-use building in Alexandria, VA—all attaining LEED Silver certification. These buildings are designed to attain tight standards in energy efficiency, water conservation, and indoor environmental quality. Furthermore, the creation of 19 ENERGY STAR Certified tenant spaces made additional contributions to energy use reduction across Kimco's portfolio. Energy Efficiency Upgrades: Kimco has completed energy efficiency upgrades at 129 properties, which are estimated to reduce GHG emissions by approximately 7,500 MTCO2e. These projects included the installation of energy-efficient lighting, HVAC systems, and building management systems—all aimed at reducing energy use and operating costs while increasing tenant comfort. Sustainable Water Management: Another major focus in the sustainability strategy adopted by Kimco has been water conservation. It financed water efficiency projects at 46 properties, including the flagship Dania Pointe in Dania Beach, FL. These projects delivered an average improvement in water efficiency of over 35%, helping significantly reduce water consumption and related operational costs in the years to come. In addition, next-generation stormwater management systems installed at the properties offer enhanced resilience in the face of severe weather events—of particular concern in an era of rising climate volatility. Broader Impact and Future Outlook The successful placement of the green bond by Kimco Realty is just a single pulse in a much greater wave that the real estate market has taken toward sustainable finance and responsible investing. Kimco should benefit from the growing trend of environmental, social, and governance factors in the decision-making of investors, which this lead establishes. The commitment to sustainability does not act in isolation from Kimco's green bond initiatives. The company has integrated ESG considerations into its overall business strategy, realizing that sustainable practices are key to long-term value creation. This comprehensive approach is targeted at lessening the negative impact of operations on the environment, improving community engagement, and increasing diversity and inclusion within its workforce and tenant base. Looking ahead, Kimco Realty will maintain its lead in sustainability. The group plans to tap more green financing opportunities for funding further investments in renewable energy and other areas related to energy efficiency and sustainability initiatives. Having done so, Kimco takes a step towards enhancing its environmental performance by delivering long-term value to investors and communities.