KIM Kimco Realty Corporation

– Achieved Highest Year-over-Year Occupancy Rate Increase in the Past Fifteen Years – – Leased 2.5 Million Square Feet in the Fourth Quarter and 11.6 Million Square Feet in 2022 – – Board Declares Quarterly Dividend – – Company Provides Initial 2023 Outlook –

Kimco Realty® (NYSE: KIM), North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers, and a growing portfolio of mixed-use assets, today reported results for the fourth quarter and full year ended December 31, 2022. Kimco's Net (loss) available to the company's common shareholders for the fourth quarter of 2022 was ($56.1) million, or ($0.09) per diluted share, compared to Net income available to the company's common shareholders of $75.3 million, or $0.13 per diluted share, for the fourth quarter of 2021.

Fourth Quarter Highlights:

• Produced Funds From Operations* (FFO) of $0.38 per diluted share.
• Grew pro-rata portfolio occupancy 130 basis points to 95.7%, representing one of the largest year-over-year occupancy gains in company history.
• Sequentially increased pro-rata anchor occupancy 20 basis points to 98.0% and small shop occupancy 80 basis points to 90.0%.
• Generated pro-rata cash rent spreads of 30.4% for new leases on comparable spaces.
• Produced 1.9% growth in Same-Property Net Operating Income* (NOI) over the same period a year ago.
• Realized net proceeds of approximately $301.1 million from the sale of 11.5 million shares of Albertsons Companies, Inc. (NYSE: ACI).
• Subsequent to quarter end, received $194.1 million as a special dividend payment from ACI related to the remaining 28.3 million ACI shares owned.

“We ended 2022 with strong occupancy gains driven by our team’s outstanding leasing execution, with over 2.5 million square feet leased in the quarter and 11.6 million square feet for the year, making it one of our best years on record,” commented Kimco CEO Conor Flynn. “Furthermore, our ability to opportunistically unlock value is showcased by the recent partial monetization of our investment in Albertsons, with proceeds of over $300 million that will support future growth. With our significant liquidity and flexibility, we are confident that our high-quality, grocery-anchored, last-mile-focused portfolio positions Kimco to continue its solid performance in the coming year and beyond as we seek to build long-term shareholder value.”

Financial Results:

Net (loss) available to the company’s common shareholders for the fourth quarter of 2022 was ($56.1) million, or ($0.09) per diluted share, compared to Net income available to the company’s common shareholders of $75.3 million, or $0.13 per diluted share, for the fourth quarter of 2021. The year-over-year change is primarily attributable to a $63.0 million mark-to-market reduction on marketable securities primarily stemming from a change in the value of ACI common stock held by the company, as well as a $57.3 million increase in provision for income taxes, net, primarily related to capital gains from the monetization of 11.5 million shares of ACI during the fourth quarter of 2022.

FFO was $234.9 million, or $0.38 per diluted share, for the fourth quarter of 2022 compared to $240.1 million, or $0.39 per diluted share, for the fourth quarter 2021. The company excludes from FFO all gains and losses, whether realized or unrealized, related to its investment in ACI, as well as gains and losses from the sale of operating properties, real estate-related depreciation, and profit participations from other investments.

*Reconciliations of non-GAAP measures to the most directly comparable GAAP measure are provided in the tables accompanying this press release.

Full Year 2022

Net income available to the company’s common shareholders was $100.8 million, or $0.16 per diluted share, for the full year 2022 compared to $818.6 million, or $1.60 per diluted share, for the full year 2021. The year-over-year decrease was primarily attributable to a change in the value of ACI common stock held by the company as well as an increase in provision for income taxes, net, primarily related to capital gains from the monetization of 11.5 million shares of ACI during the fourth quarter of 2022.

FFO was $976.4 million, or $1.58 per diluted share, for the full year 2022 compared to $706.8 million, or $1.38 per diluted share, for the full year 2021. The year-over-year increase in FFO was primarily attributable to having a full year contribution from the acquisition of Weingarten Realty Investors (Weingarten) that closed in August of 2021. FFO for 2021 also included approximately $0.09 per diluted share of net merger-related costs and pension valuation adjustments associated with the acquisition of Weingarten.

Operating Results:

• Pro-rata portfolio occupancy ended the quarter at 95.7%, with anchor and small shop occupancy at 98.0% and 90.0%, respectively.
• Signed 492 leases totaling 2.5 million square feet, generating blended pro-rata rent spreads on comparable spaces of 8.7%, with rental rates for new leases up 30.4% and renewals and options growing 4.6%.
• Reported a 260-basis-point spread between leased (reported) occupancy versus economic occupancy at the end of the fourth quarter, representing approximately $43 million in annual base rent.
• Produced 1.9% growth in Same-Property NOI over the same period a year ago, driven by a 3.9% increase in minimum rent. For the full year, Same-Property NOI was up 4.4%.

Fourth Quarter 2022 Transaction Activities:

• As previously communicated, acquired a grocery-anchored portfolio of eight Long Island, New York shopping centers in infill, high barrier to entry markets totaling 540,000 square feet for $375.8 million. In addition, the company acquired three land interests for a purchase price of $12.5 million. Subsequent to quarter end, Kimco acquired the remaining 85% interest in two California centers for $85.9 million.
• Sold two shopping centers and four land parcels totaling 439,000 square feet for $41.9 million during the fourth quarter. The company’s pro-rata share of the sales price was $27.9 million. Subsequent to quarter end, the company sold an additional two shopping centers totaling 384,000 square feet for $63.0 million.
• Received $26.0 million, including $4.0 million of profit participation, from the repayment of a participating loan on a three-property Pennsylvania grocery portfolio.

Fourth Quarter 2022 Capital Market Activities:

• Ended the fourth quarter with over $2.1 billion of immediate liquidity, including full availability of the company’s $2.0 billion unsecured revolving credit facility and $150 million of cash and cash equivalents on the balance sheet.
• Generated proceeds of $301.1 million from the sale of 11.5 million shares of ACI common stock. The company has elected to retain these proceeds for general corporate purposes and pay $57.2 million in state and federal corporate income tax on the long-term capital gains from this sale. As a result of the payment of capital gains tax by the company, each shareholder is entitled to a federal tax credit for its share of this tax paid by the Company. A set of FAQs is available on the company’s website at investors.kimcorealty.com/2022_Undistributed_Cap_Gain_FAQ.
• At the end of fourth quarter of 2022, Kimco held 28.3 million shares of ACI common stock valued at approximately $588 million, of which 28.0 million shares are subject to a lockup until May 16, 2023.
• Subsequent to quarter end, Kimco received a $194.1 million special dividend payment from ACI. As a result, the company, which excludes this one-time benefit from its calculation of FFO, anticipates it may need to make a special dividend payment to maintain its compliance with REIT distribution requirements. The payment of this special dividend will be determined and announced by year end and may be in the form of cash, common stock or some combination thereof.

Conversion to "UPREIT" Partnership:

Effective January 2023, Kimco Realty completed a holding company reorganization (the “Reorganization”), which restructured the company as an Umbrella Partnership Real Estate Investment Trust, or UPREIT. As part of the Reorganization, a new holding company (“New Kimco”) became the publicly traded parent company by way of an intercompany merger, assuming the existing name of “Kimco Realty Corporation,” while the current corporation (“Old Kimco”) converted to a limited liability company called “Kimco Realty OP LLC” (“Kimco OP”) controlled by the publicly traded parent company. Detailed information on the Reorganization can be found in the Form 8-K that was filed by the company with the Securities and Exchange Commission on December 15, 2022.

Dividend Declarations:

• Kimco’s board of directors declared a cash dividend of $0.23 per common share, representing a 21% increase over the quarterly dividend in the corresponding period of the prior year. The quarterly cash dividend on common shares is payable on March 23, 2023 to shareholders of record on March 9, 2023.
• The board of directors also declared quarterly dividends with respect to each of the company’s Class L and Class M series of cumulative redeemable preferred shares. These dividends on the preferred shares will be paid on April 17, 2023 to shareholders of record on April 3, 2023.

2023 Full Year Outlook:

Net income available to the Company’s common shareholders (per diluted share):

$0.93 to $0.97

FFO (per diluted share):

$1.53 to $1.57

*The tables accompanying this press release provide a reconciliation for this forward-looking non-GAAP measure.

The company’s full year outlook is based on the following assumptions:

• Same Property NOI growth: 1.0% to 2.0%
• Credit loss, which is included in Same Property NOI growth: (0.75%) to (1.25%) of total pro-rata rental revenues
• No income attributable to collection of prior period accounts receivables from cash basis tenants
• Lease termination income: $14 million to $16 million
• Total property acquisitions (including structured investments), net of dispositions: $100 million
• Monetization of approximately $300 million of ACI shares

Conference Call Information:

When:

8:30 AM ET, February 9, 2023

Live Webcast:

4Q22 Kimco Realty Earnings Conference Call or on Kimco Realty’s website investors.kimcorealty.com (replay available through May 9, 2023)

Dial #:

1-888-317-6003 (International: 1-412-317-6061). Passcode: 4658922

About Kimco Realty®

Kimco Realty® (NYSE:KIM) is a real estate investment trust (REIT) headquartered in Jericho, N.Y. that is North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers, and a growing portfolio of mixed-use assets. The company’s portfolio is primarily concentrated in the first-ring suburbs of the top major metropolitan markets, including those in high-barrier-to-entry coastal markets and rapidly expanding Sun Belt cities, with a tenant mix focused on essential, necessity-based goods and services that drive multiple shopping trips per week. Kimco Realty is also committed to leadership in environmental, social and governance (ESG) issues and is a recognized industry leader in these areas. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center ownership, management, acquisitions, and value enhancing redevelopment activities for more than 60 years. As of December 31, 2022, the company owned interests in 532 U.S. shopping centers and mixed-use assets comprising 91 million square feet of gross leasable space. For further information, please visit www.kimcorealty.com.

The company announces material information to its investors using the company’s investor relations website (investors.kimcorealty.com), SEC filings, press releases, public conference calls, and webcasts. The company also uses social media to communicate with its investors and the public, and the information the company posts on social media may be deemed material information. Therefore, the company encourages investors, the media, and others interested in the company to review the information that it posts on the social media channels, including Facebook (www.facebook.com/kimcorealty), Twitter (www.twitter.com/kimcorealty) and LinkedIn (www.linkedin.com/company/kimco-realty-corporation). The list of social media channels that the company uses may be updated on its investor relations website from time to time.

Safe Harbor Statement

This communication contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, are generally identifiable by use of the words “believe,” “expect,” “intend,” “commit,” “anticipate,” “estimate,” “project,” “will,” “target,” “forecast” or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which, in some cases, are beyond the Company’s control and could materially affect actual results, performances or achievements. Factors which may cause actual results to differ materially from current expectations include, but are not limited to, (i) general adverse economic and local real estate conditions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iii) the reduction in the Company’s income in the event of multiple lease terminations by tenants or a failure of multiple tenants to occupy their premises in a shopping center, (iv) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and risks related to acquisitions not performing in accordance with our expectations, (v) the Company’s ability to raise capital by selling its assets, (vi) increases in operating costs due to inflation and supply chain issues, (vii) risks related to future opportunities and plans for the combined company, (viii) changes in governmental laws and regulations, including, but not limited, to changes in data privacy, environmental (including climate change), safety and health laws, and management’s ability to estimate the impact of such changes, (ix) valuation and risks related to the Company’s joint venture and preferred equity investments and other investments, (x) valuation of marketable securities and other investments, including the shares of Albertsons Companies, Inc. common stock held by the Company, (xi) impairment charges, (xii) pandemics or other health crises, such as coronavirus disease 2019 (“COVID-19”), (xiii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (xiv) the level and volatility of interest rates and management’s ability to estimate the impact thereof, (xv) changes in the dividend policy for the Company’s common and preferred stock and the Company’s ability to pay dividends at current levels, (xvi) unanticipated changes in the Company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity, and (xvii) the other risks and uncertainties identified under Item 1A, “Risk Factors” and elsewhere in this Form 10-K and in the Company’s other filings with the Securities and Exchange Commission (“SEC”). Accordingly, there is no assurance that the Company’s expectations will be realized. The Company disclaims any intention or obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to refer to any further disclosures the Company makes or related subjects in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K that the Company files with the SEC.

Condensed Consolidated Balance Sheets (in thousands, except share data) (unaudited)   December 31, 2022 December 31, 2021 Assets: Real estate, net of accumulated depreciation and amortization of $3,417,414 and $3,010,699 respectively

$

15,039,828

 

$

15,041,572

Investments in and advances to real estate joint ventures

 

1,091,551

 

 

1,006,899

Other investments

 

107,581

 

 

122,015

Cash and cash equivalents

 

149,829

 

 

334,663

Marketable securities

 

597,732

 

 

1,211,739

Accounts and notes receivable, net

 

304,226

 

 

254,677

Operating lease right-of-use assets, net

 

133,733

 

 

147,458

Other assets

 

401,642

 

 

340,176

Total assets

$

17,826,122

 

$

18,459,199

  Liabilities: Notes payable, net

$

6,780,969

 

$

7,027,050

Mortgages payable, net

 

376,917

 

 

448,652

Dividends payable

 

5,326

 

 

5,366

Operating lease liabilities

 

113,679

 

 

123,779

Other liabilities

 

809,389

 

 

730,690

Total liabilities

 

8,086,280

 

 

8,335,537

Redeemable noncontrolling interests

 

92,933

 

 

13,480

  Stockholders' Equity: Preferred stock, $1.00 par value, authorized 7,054,000 shares; Issued and outstanding (in series) 19,435 and 19,580 shares, respectively; Aggregate liquidation preference $485,868 and $489,500, respectively

 

19

 

 

20

Common stock, $.01 par value, authorized 750,000,000 shares; issued and outstanding 618,483,565 and 616,658,593 shares, respectively

 

6,185

 

 

6,167

Paid-in capital

 

9,618,271

 

 

9,591,871

(Cumulative distributions in excess of net income)/retained earnings

 

(119,548

)

 

299,115

Accumulated other comprehensive income

 

10,581

 

 

2,216

Total stockholders' equity

 

9,515,508

 

 

9,899,389

Noncontrolling interests

 

131,401

 

 

210,793

Total equity

 

9,646,909

 

 

10,110,182

Total liabilities and equity

$

17,826,122

 

$

18,459,199

Condensed Consolidated Statements of Operations (in thousands, except share data) (unaudited)  

Three Months Ended December 31,

 

Year Ended December 31,

2022

 

2021

 

2022

 

2021

Revenues Revenues from rental properties, net

$

435,879

 

$

420,405

 

$

1,710,848

 

$

1,349,702

 

Management and other fee income

 

3,955

 

 

4,249

 

 

16,836

 

 

14,883

 

Total revenues

 

439,834

 

 

424,654

 

 

1,727,684

 

 

1,364,585

 

Operating expenses Rent

 

(3,957

)

 

(4,067

)

 

(15,811

)

 

(13,773

)

Real estate taxes

 

(58,762

)

 

(52,132

)

 

(224,729

)

 

(181,256

)

Operating and maintenance

 

(79,901

)

 

(77,402

)

 

(290,367

)

 

(222,882

)

General and administrative

 

(31,928

)

 

(28,985

)

 

(119,534

)

 

(104,121

)

Impairment charges

 

(200

)

 

(2,643

)

 

(21,958

)

 

(3,597

)

Merger charges

 

-

 

 

-

 

 

-

 

 

(50,191

)

Depreciation and amortization

 

(124,676

)

 

(133,633

)

 

(505,000

)

 

(395,320

)

Total operating expenses

 

(299,424

)

 

(298,862

)

 

(1,177,399

)

 

(971,140

)

  Gain on sale of properties

 

4,221

 

 

-

 

 

15,179

 

 

30,841

 

Operating income

 

144,631

 

 

125,792

 

 

565,464

 

 

424,286

 

  Other income/(expense) Other income, net

 

9,978

 

 

7,976

 

 

28,829

 

 

19,810

 

(Loss)/gain on marketable securities, net

 

(100,314

)

 

(37,347

)

 

(315,508

)

 

505,163

 

Interest expense

 

(60,947

)

 

(57,479

)

 

(226,823

)

 

(204,133

)

Early extinguishment of debt charges

 

-

 

 

-

 

 

(7,658

)

 

-

 

(Loss)/income before income taxes, net, equity in income of joint ventures, net, and equity in income from other investments, net

 

(6,652

)

 

38,942

 

 

44,304

 

 

745,126

 

  Provision for income taxes, net

 

(57,750

)

 

(483

)

 

(56,654

)

 

(3,380

)

Equity in income of joint ventures, net

 

15,421

 

 

30,683

 

 

109,481

 

 

84,778

 

Equity in income of other investments, net

 

1,912

 

 

12,807

 

 

17,403

 

 

23,172

 

  Net (loss)/income

 

(47,069

)

 

81,949

 

 

114,534

 

 

849,696

 

Net (income)/loss attributable to noncontrolling interests

 

(2,710

)

 

(268

)

 

11,442

 

 

(5,637

)

Net (loss)/income attributable to the company

 

(49,779

)

 

81,681

 

 

125,976

 

 

844,059

 

Preferred dividends, net

 

(6,307

)

 

(6,354

)

 

(25,218

)

 

(25,416

)

Net (loss)/income available to the company's common shareholders

$

(56,086

)

$

75,327

 

$

100,758

 

$

818,643

 

  Per common share: Net (loss)/income available to the company's common shareholders: (1) Basic

$

(0.09

)

$

0.13

 

$

0.16

 

$

1.61

 

Diluted (2)

$

(0.09

)

$

0.13

 

$

0.16

 

$

1.60

 

Weighted average shares: Basic

 

615,856

 

 

614,150

 

 

615,528

 

 

506,248

 

Diluted

 

615,856

 

 

616,612

 

 

617,858

 

 

511,385

 

(1)

Adjusted for earnings attributable from participating securities of ($602) and ($400) for the three months ended December 31, 2022 and 2021, respectively. Adjusted for earnings attributable from participating securities of ($2,182) and ($5,346) for the year ended December 31, 2022 and 2021, respectively. Adjusted for the change in carrying amount of redeemable noncontrolling interest of $2,304 for the three months and year ended December 31, 2021.

(2)

Reflects the potential impact if certain units were converted to common stock at the beginning of the period. The impact of the conversion would have had an antidilutive effect on net income and therefore has not been included. Adjusted for distributions on convertible units of $3,087 for the year ended December 31, 2021. Reconciliation of Net (Loss)/Income Available to the Company's Common Shareholders to FFO Available to the Company's Common Shareholders (1) (in thousands, except share data) (unaudited)  

Three Months Ended December 31,

 

Year Ended December 31,

2022

2021

 

2022

 

2021

Net (loss)/income available to the company's common shareholders

$

(56,086

)

$

75,327

 

$

100,758

 

$

818,643

 

Gain on sale of properties

 

(4,221

)

 

-

 

 

(15,179

)

 

(30,841

)

Gain on sale of joint venture properties

 

(643

)

 

(11,596

)

 

(38,825

)

 

(16,879

)

Depreciation and amortization - real estate related

 

123,663

 

 

132,797

 

 

501,274

 

 

392,095

 

Depreciation and amortization - real estate joint ventures

 

16,158

 

 

15,949

 

 

66,326

 

 

51,555

 

Impairment charges (including real estate joint ventures)

 

1,585

 

 

3,932

 

 

27,254

 

 

7,145

 

Profit participation from other investments, net

 

(4,584

)

 

(9,824

)

 

(15,593

)

 

(8,595

)

Loss/(gain) on marketable securities, net

 

100,314

 

 

37,347

 

 

315,508

 

 

(505,163

)

Provision/(benefit) for income taxes, net (2)

 

58,608

 

 

(25

)

 

58,373

 

 

2,152

 

Noncontrolling interests (2)

 

63

 

 

(3,835

)

 

(23,540

)

 

(3,285

)

FFO available to the company's common shareholders

$

234,857

 

$

240,072

 

(5)

$

976,356

 

(4)

$

706,827

 

(5)

  Weighted average shares outstanding for FFO calculations: Basic

 

615,856

 

 

614,150

 

 

615,528

 

 

506,248

 

Units

 

2,559

 

 

3,878

 

 

2,492

 

 

2,627

 

Dilutive effect of equity awards

 

2,114

 

 

2,410

 

 

2,283

 

 

2,422

 

Diluted

 

620,529

 

 

620,438

 

 

620,303

 

 

511,297

 

  FFO per common share - basic

$

0.38

 

$

0.39

 

$

1.59

 

$

1.40

 

FFO per common share - diluted (3)

$

0.38

 

$

0.39

 

$

1.58

 

$

1.38

 

(1)

The company considers FFO to be an important supplemental measure of its operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting results. Comparison of the company's presentation of FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by such REITs.

(2)

Related to gains, impairments and depreciation on properties, and gains/(losses) on sales of marketable securities, where applicable.

(3)

Reflects the potential impact if certain units were converted to common stock at the beginning of the period. FFO available to the company’s common shareholders would be increased by $584 and $856 for the three months ended December 31, 2022 and 2021, respectively. FFO available to the company’s common shareholders would be increased by $2,041 and $1,053 for the years ended December 31, 2022 and 2021, respectively. The effect of other certain convertible units would have an anti-dilutive effect upon the calculation of FFO available to the company’s common shareholders per share. Accordingly, the impact of such conversion has not been included in the determination of diluted earnings per share calculations.

(4)

Includes Early extinguishment of debt charges of $7.7 million recognized during the year ended December 31, 2022.

(5)

Includes $47.2 million, or $0.09 per diluted share, of net merger-related charges and pension valuation adjustments associated with WRI for the year ended December 31, 2021. In addition the three months ended December 31, 2021, includes WRI pension valuation adjustments of $3.0 million of income included in Other income, net. Reconciliation of Net (Loss)/Income Available to the Company's Common Shareholders to Same Property NOI (1)(2) (in thousands) (unaudited)  

Three Months Ended December 31,

 

Year Ended December 31,

2022

 

2021

 

2022

 

2021

Net (loss)/income available to the Company's common shareholders

$

(56,086

)

$

75,327

 

$

100,758

 

$

818,643

 

Adjustments: Management and other fee income

 

(3,955

)

 

(4,249

)

 

(16,836

)

 

(14,883

)

General and administrative

 

31,928

 

 

28,985

 

 

119,534

 

 

104,121

 

Impairment charges

 

200

 

 

2,643

 

 

21,958

 

 

3,597

 

Merger charges

 

-

 

 

-

 

 

-

 

 

50,191

 

Depreciation and amortization

 

124,676

 

 

133,633

 

 

505,000

 

 

395,320

 

Gain on sale of properties

 

(4,221

)

 

-

 

 

(15,179

)

 

(30,841

)

Interest and other expense, net

 

50,969

 

 

49,503

 

 

205,652

 

 

184,323

 

Loss/(gain) on marketable securities, net

 

100,314

 

 

37,347

 

 

315,508

 

 

(505,163

)

Provision for income taxes, net

 

57,750

 

 

483

 

 

56,654

 

 

3,380

 

Equity in income of other investments, net

 

(1,912

)

 

(12,807

)

 

(17,403

)

 

(23,172

)

Net income/(loss) attributable to noncontrolling interests

 

2,710

 

 

268

 

 

(11,442

)

 

5,637

 

Preferred dividends, net

 

6,307

 

 

6,354

 

 

25,218

 

 

25,416

 

WRI Same Property NOI (3)

 

-

 

 

-

 

 

-

 

 

252,651

 

Non same property net operating income

 

(14,942

)

 

(15,661

)

 

(80,504

)

 

(113,794

)

Non-operational expense from joint ventures, net

 

23,934

 

 

9,987

 

 

55,514

 

 

55,213

 

Same Property NOI

$

317,672

 

$

311,813

 

$

1,264,432

 

$

1,210,639

 

(1)

The company considers same property NOI as an important operating performance measure because it is frequently used by securities analysts and investors to measure only the net operating income of properties that have been owned by the company for the entire current and prior year reporting periods. It excludes properties under redevelopment, development and pending stabilization; properties are deemed stabilized at the earlier of (i) reaching 90% leased or (ii) one year following a project’s inclusion in operating real estate. Same property NOI assists in eliminating disparities in net income due to the development, acquisition or disposition of properties during the particular period presented, and thus provides a more consistent performance measure for the comparison of the company's properties. The company’s method of calculating Same property NOI may differ from methods used by other REITs and, accordingly, may not be comparable to such other REITs.

(2)

Amounts represent Kimco's pro-rata share.

(3)

Amount for the year ended December 31, 2021, represents the Same Property NOI from WRI properties, not included in the company's net income available to the company's common shareholders pre-merger. Reconciliation of the Projected Range of Net Income Available to the Company's Common Shareholders to Funds From Operations Available to the Company's Common Shareholders (unaudited, all amounts shown are per diluted share)   Projected Range Full Year 2023 Low High Net income available to the company's common shareholders

$

0.93

 

$

0.97

 

  Gain on sale of properties

 

(0.01

)

 

(0.04

)

  Gain on sale of joint venture properties

 

-

 

 

(0.01

)

  Depreciation & amortization - real estate related

 

0.82

 

 

0.85

 

  Depreciation & amortization - real estate joint ventures

 

0.10

 

 

0.11

 

  Special dividends from marketable securities (1)

 

(0.31

)

 

(0.31

)

  FFO available to the company's common shareholders

$

1.53

 

$

1.57

 

(1)

Related to the special cash dividend from Albertons as part of the consideration for the announced merger agreement with Kroger.

 

Projections involve numerous assumptions such as rental income (including assumptions on percentage rent), interest rates, tenant defaults, occupancy rates, selling prices of properties held for disposition, expenses (including salaries and employee costs), insurance costs and numerous other factors. Not all of these factors are determinable at this time and actual results may vary from the projected results, and may be above or below the range indicated. The above range represents management’s estimate of results based upon these assumptions as of the date of this press release.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230209005128/en/

David F. Bujnicki Senior Vice President, Investor Relations and Strategy Kimco Realty Corporation 1-866-831-4297 dbujnicki@kimcorealty.com