– Leased 2.1 Million Square Feet with
Double-Digit Leasing Spreads – – Board Raises Quarterly Cash
Dividend on Common Shares by 4.3% – – Raises 2023 Guidance Range
–
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 third quarter ended September 30, 2023. For the
three months ended September 30, 2023 and 2022, Kimco Realty’s net
income available to the company’s common shareholders per diluted
share was $0.18 and $0.08, respectively.
Third Quarter Highlights
- Produced Funds From Operations* (FFO) of $0.40 per diluted
share.
- Achieved pro-rata portfolio occupancy of 95.5%, which included
an impact of 37 basis points due to vacating the last remaining
leases with Bed Bath & Beyond.
- Pro-rata small shop occupancy expanded 10 basis points
sequentially and 190 basis points year-over-year to 91.1%, matching
the company’s all-time high.
- Leased 2.1 million square feet generating blended pro-rata rent
spreads on comparable spaces, including renewals and options, of
13.4%, the highest level of combined leasing spreads in six
years.
- Generated pro-rata cash rent spreads of 34.9% for new leases on
comparable spaces, including seven former Bed Bath & Beyond
leases with a blended, pro-rata rent increase of 54%.
- Produced 2.6% growth in Same-Property Net Operating Income*
(NOI) over the same period a year ago.
- Agreed to the all-stock acquisition of RPT Realty (RPT), which
is expected to be accretive to FFO, leverage neutral and to
increase Kimco’s size and scale in target markets and provide
embedded growth opportunities.
- Acquired Stonebridge at Potomac Town Center, a 96%-occupied,
504,000-square-foot, grocery-anchored lifestyle center in
Woodbridge, Virginia, for $172.5 million.
- Subsequent to quarter end, issued $500 million of senior
unsecured notes with a 6.400% coupon that mature in 2034.
*Reconciliations of non-GAAP measures to
the most directly comparable GAAP measure are provided in the
tables accompanying this press release.
“With virtually no new supply and strong demand from a multitude
of tenants, buoyed by a resilient consumer, we continue to produce
strong operating results capped off by the 2.1 million square feet
leased during the quarter with positive double-digit leasing
spreads highlighting our portfolio’s pricing power,” stated Kimco
CEO, Conor Flynn. “We also continue to prioritize the de-risking of
our balance sheet by partially prefunding our upcoming 2024 debt
maturities with the issuance of $500 million of senior unsecured
notes due in 2034. Our significant $2.4 billion liquidity position,
including over $400 million of cash on the balance sheet, as well
as shares of Albertsons valued at over $300 million at quarter end,
we expect will enable us to effectively navigate the macroeconomic
headwinds and further reinforces our position as the country’s
premier owner and operator of open-air, grocery-anchored shopping
centers and mixed-use assets.”
Financial Results
Net income available to the company’s common shareholders for
the third quarter of 2023 was $112.0 million, or $0.18 per diluted
share, compared to $51.6 million, or $0.08 per diluted share, for
the third quarter of 2022. Included in the year-over-year change
was an $88.7 million benefit from mark-to-market gains on
marketable securities, primarily stemming from a change in the
value of Albertsons Companies, Inc. (NYSE: ACI) common stock held
by the company. Partially offsetting this benefit was an $8.0
million increase in interest expense, primarily due to a reduction
of the fair market value amortization of Weingarten Realty
Investors (WRI) bonds compared to the third quarter of 2022. Other
notable factors impacting the year-over-year change were $10.1
million lower Equity in income of joint ventures, net, and $4.6
million less Equity in income of other investments, net, which was
primarily due to lower gains on sales and profit participations,
respectively. Net income available to the company’s common
shareholders for the third quarter of 2023 also included $3.8
million of charges related to the pending merger with RPT, and $4.8
million of income, net, related to the liquidation of the former
WRI pension plan.
FFO was $248.6 million, or $0.40 per diluted share, for the
third quarter of 2023, compared to $254.5 million, or $0.41 per
diluted share, for the third quarter 2022. The company excludes
from FFO all realized or unrealized marketable securities gains and
losses, including those related to its investment in ACI. Also
excluded from FFO are gains and losses from the sale of operating
properties, real estate-related depreciation, profit participations
from other investments, and other items considered incidental to
the company’s business.
Operating Results
- Executed 457 leases totaling 2.1 million square feet,
generating blended pro-rata rent spreads on comparable spaces of
13.4%, with pro-rata cash rent spreads for new leases up 34.9% and
renewals and options growing 8.8%.
- Pro-rata portfolio occupancy ended the quarter at 95.5%, an
increase of 20 basis points year-over-year and down 30 basis points
sequentially. During the third quarter, portfolio occupancy was
impacted approximately 45 basis points from vacating the last
remaining leases with Bed Bath & Beyond (16 leases), Tuesday
Morning and Christmas Tree Shops (one lease each).
- Pro-rata anchor and small shop occupancy ended the quarter at
97.2% and 91.1%, respectively.
- Reported a 320-basis-point spread between leased (reported)
occupancy versus economic occupancy at the end of the third
quarter, representing approximately $52 million in anticipated
future annual base rent.
- Produced 2.6% growth in Same-Property NOI over the same period
a year ago, driven by a 2.9% increase in minimum rent.
Investment & Disposition
Activities
- As previously announced, acquired Stonebridge at Potomac Town
Center for $172.5 million. This dominant grocery-anchored asset in
the Washington D.C. suburbs of Virginia, totals 504,000 square feet
and is anchored by a Wegmans grocer.
- Sold one shopping center and two wholly owned parcels during
the third quarter totaling 143,000 square feet for $40.1 million.
The company’s pro-rata share of the aggregate sales price was $15.6
million.
- As previously announced, agreed to acquire RPT Realty in an
all-stock transaction valued at approximately $2 billion. The
transaction, which is expected to be leverage neutral and accretive
to FFO, is anticipated to close in the beginning of 2024, subject
to RPT shareholder approval and other customary closing
conditions.
Capital Market
Activities
- Ended the third quarter with over $2.4 billion of immediate
liquidity, including full availability of the company’s $2.0
billion unsecured revolving credit facility and $424.3 million of
cash and cash equivalents on the balance sheet. In addition, the
company held 14.2 million shares of ACI common stock valued at
$323.3 million as of September 30, 2023.
Dividend Declarations
- Kimco’s board of directors declared a quarterly cash dividend
on common shares of $0.24 per share, representing an increase of
4.3% over the prior common dividend of $0.23 per share, payable on
December 21, 2023, to shareholders of record on December 7,
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 January 16, 2024, to shareholders
of record on January 2, 2024.
2023 Full Year Outlook
Kimco’s 2023 guidance is presented on a stand-alone basis and
does not incorporate any additional impact from its pending merger
with RPT other than the $(3.8) million, or $(0.01) per diluted
share, of merger-related charges incurred during the third quarter
of 2023. The company has updated its 2023 guidance ranges as well
as certain operational assumptions as follows:
Current*
Previous
Net income available to the company’s
common shareholders (per diluted share):
$0.96 to $0.98**
$0.92 to $0.95
FFO (per diluted share):
$1.56 to $1.57**
$1.55 to $1.57
*The tables accompanying this press release provide a
reconciliation for the Current forward-looking non-GAAP measure.
**Includes $(0.01) per diluted share of merger-related charges
incurred during the third quarter of 2023.
Operational Assumptions (Kimco’s pro-rata
share)
Current
Previous
Same-property NOI growth:
1.75% to 2.25%
1.00% to 2.00%
Credit loss (as a % of total pro-rata
rental revenues) included in Same Property NOI growth:
(0.75%) to (1.00%)
(0.75%) to (1.25%)
Total property acquisitions (including
structured investments), net of dispositions:
$175 million
$100 million
Conference Call Information
When:
8:30 AM ET, October 26, 2023
Live Webcast:
3Q23 Kimco Realty Earnings Conference Call
or on Kimco Realty’s website investors.kimcorealty.com (replay
available through January 26, 2024)
Dial #:
1-888-317-6003 (International:
1-412-317-6061). Passcode: 9938295
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 September 30, 2023, the company owned
interests in 527 U.S. shopping centers and mixed-use assets
comprising 90 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 (the “Securities Act”), and Section 21E of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”). Kimco Realty
Corporation (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,” “plan”,
“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 impact of competition,
including the availability of acquisition or development
opportunities and the costs associated with purchasing and
maintaining assets; (iii) the inability of major tenants to
continue paying their rent obligations due to bankruptcy,
insolvency or a general downturn in their business, (iv) 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, (v) the potential impact of
e-commerce and other changes in consumer buying practices, and
changing trends in the retail industry and perceptions by retailers
or shoppers, including safety and convenience, (vi) the
availability of suitable acquisition, disposition, development and
redevelopment opportunities, and the costs associated with
purchasing and maintaining assets and risks related to acquisitions
not performing in accordance with our expectations, (vii) the
Company’s ability to raise capital by selling its assets, (viii)
disruptions and increases in operating costs due to inflation and
supply chain issues, (ix) risks associated with the development of
mixed-use commercial properties, including risks associated with
the development, and ownership of non-retail real estate, (x)
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, (xi) risks and
uncertainties associated with the Company’s and RPT Realty’s
(“RPT”) ability to complete the proposed merger transaction (the
“proposed transaction”) on the proposed terms or on the anticipated
timeline, or at all, including risks and uncertainties related to
securing the necessary RPT shareholder approval and satisfaction of
other closing conditions to consummate the proposed transaction,
(xii) the occurrence of any event, change or other circumstance
that could give rise to the termination of the merger agreement,
(xiii) risks related to diverting the attention of management from
ongoing business operations, (xiv) the Company’s failure to realize
the expected benefits of the proposed transaction, (xv) significant
transaction costs and/or unknown or inestimable liabilities related
to the proposed transaction, (xvi) the risk of litigation,
including shareholder litigation, in connection with the proposed
transaction, including any resulting expense or delay, (xvii) the
ability to successfully integrate the operations of the Company and
RPT following the closing of the proposed transaction and the risk
that such integration may be more difficult, time-consuming or
costly than expected, (xviii) risks related to future opportunities
and plans for the combined company, including the uncertainty of
expected future financial performance and results of the combined
company following completion of the proposed transaction, (xix)
effects relating to the announcement of the proposed transaction or
any further announcements or the consummation of the proposed
transaction on the market price of the Company’s common stock or
RPT’s common shares or on each company’s respective relationships
with tenants, employees, joint venture partners and third parties,
(xx) the possibility that, if the Company does not achieve the
perceived benefits of the proposed transaction as rapidly or to the
extent anticipated by financial analysts or investors, the market
price of the Company’s common stock could decline, (xxi) valuation
and risks related to the Company’s joint venture and preferred
equity investments and other investments, (xxii) valuation of
marketable securities and other investments, including the shares
of Albertsons Companies, Inc. common stock held by the Company,
(xxiii) impairment charges, (xxiv) criminal cybersecurity attacks
disruption, data loss or other security incidents and breaches,
(xxv) impact of natural disasters and weather and climate-related
events, (xxvi) pandemics or other health crises, such as
coronavirus disease 2019 (“COVID-19”), (xxvii) our ability to
attract, retain and motivate key personnel, (xxviii) financing
risks, such as the inability to obtain equity, debt or other
sources of financing or refinancing on favorable terms to the
Company, (xxix) the level and volatility of interest rates and
management’s ability to estimate the impact thereof, (xxx) changes
in the dividend policy for the Company’s common and preferred stock
and the Company’s ability to pay dividends at current levels,
(xxxi) unanticipated changes in the Company’s intention or ability
to prepay certain debt prior to maturity and/or hold certain
securities until maturity, (xxxii) the Company’s ability to
continue to maintain its status as a REIT for U.S. federal income
tax purposes and potential risks and uncertainties in connection
with its UPREIT structure, and (xxxiii) other risks and
uncertainties identified under Item 1A, “Risk Factors” in our
Annual Report on Form 10-K for the year ended December 31, 2022 as
supplemented by the risks and uncertainties identified under Item
1A, “Risk Factors” in our Quarterly Report on Form 10-Q.
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 in other filings
with the Securities and Exchange Commission (“SEC”).
Important Additional Information and
Where to Find It
In connection with the proposed transaction, the Company has
filed with the SEC a registration statement on Form S-4 to register
the shares of the Company’s common stock, the Company’s preferred
stock and depositary shares in respect thereof to be issued in
connection with the proposed transaction. The registration
statement has not yet been declared effective. The registration
statement includes a proxy statement/prospectus which will be sent
to the shareholders of RPT seeking their approval of certain
transaction-related proposals after the registration statement has
been declared effective. INVESTORS AND SECURITY HOLDERS ARE URGED
TO READ THE REGISTRATION STATEMENT ON FORM S-4 AND THE RELATED
PROXY STATEMENT/PROSPECTUS, AS WELL AS ANY AMENDMENTS OR
SUPPLEMENTS TO THOSE DOCUMENTS AND ANY OTHER RELEVANT DOCUMENTS
FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED
TRANSACTION, AS AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY
CONTAIN AND WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY,
RPT AND THE PROPOSED TRANSACTION.
Investors and security holders may obtain copies of these
documents free of charge through the website maintained by the SEC
at www.sec.gov or from the Company at its website,
www.kimcorealty.com or from RPT at its website, www.rptrealty.com.
Documents filed with the SEC by the Company will be available free
of charge by accessing the Company’s website at kimcorealty.com
under the heading Investors or, alternatively, by directing a
request to the Company at ir@kimcorealty.com or 500 North Broadway,
Suite 201, Jericho, NY 11753, telephone: (516) 869-9000, and
documents filed with the SEC by RPT will be available free of
charge by accessing RPT’s website at www.rptrealty.com under the
heading Investors or, alternatively, by directing a request to RPT
at invest@rptrealty.com or 19 West 44th Street, Suite 1002, New
York, NY 10036, telephone: (212) 221-7139.
Participants in the
Solicitation
The Company and RPT and certain of their respective directors,
trustees and executive officers and other members of management and
employees may be deemed to be participants in the solicitation of
proxies from the shareholders of RPT in respect of the proposed
transaction under the rules of the SEC. Information about the
Company’s directors and executive officers is available in the
Company’s proxy statement dated March 15, 2023 for its 2023 Annual
Meeting of Stockholders. Information about RPT’s trustees and
executive officers is available in RPT’s proxy statement dated
March 16, 2023 for its 2023 Annual Meeting of Shareholders. Other
information regarding the participants in the proxy solicitation
and a description of their direct and indirect interests, by
security holdings or otherwise, is and will be contained in the
proxy statement/prospectus and other relevant materials filed and
to be filed with the SEC regarding the proposed transaction as and
when they become available. Investors should read the proxy
statement/prospectus carefully before making any voting or
investment decisions. You may obtain free copies of these documents
from the Company or RPT using the sources indicated above.
No Offer or Solicitation
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act.
Condensed Consolidated Balance Sheets (in thousands, except
share data) (unaudited) September 30, 2023 December 31, 2022
Assets: Real estate, net of accumulated depreciation and
amortization of $3,735,535 and $3,417,414, respectively
$
15,127,673
$
15,039,828
Investments in and advances to real estate joint ventures
1,098,822
1,091,551
Other investments
139,362
107,581
Cash and cash equivalents
424,262
149,829
Marketable securities
327,135
597,732
Accounts and notes receivable, net
288,499
304,226
Operating lease right-of-use assets, net
128,534
133,733
Other assets
417,074
401,642
Total assets
$
17,951,361
$
17,826,122
Liabilities: Notes payable, net
$
6,772,111
$
6,780,969
Mortgages payable, net
356,899
376,917
Accounts payable and accrued expenses
261,693
207,815
Dividends payable
5,308
5,326
Operating lease liabilities
109,824
113,679
Other liabilities
630,245
601,574
Total liabilities
8,136,080
8,086,280
Redeemable noncontrolling interests
92,933
92,933
Stockholders' Equity: Preferred stock, $1.00 par
value, authorized 7,054,000 shares; Issued and outstanding (in
series) 19,367 and 19,435 shares, respectively; Aggregate
liquidation preference $484,179 and $485,868, respectively
19
19
Common stock, $.01 par value, authorized 750,000,000 shares; issued
and outstanding 619,874,590 and 618,483,565 shares, respectively
6,199
6,185
Paid-in capital
9,628,660
9,618,271
Cumulative distributions in excess of net income
(51,377
)
(119,548
)
Accumulated other comprehensive income
6,616
10,581
Total stockholders' equity
9,590,117
9,515,508
Noncontrolling interests
132,231
131,401
Total equity
9,722,348
9,646,909
Total liabilities and equity
$
17,951,361
$
17,826,122
Condensed Consolidated Statements of Income (in thousands,
except per share data) (unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Revenues Revenues from rental properties, net
$
441,816
$
429,042
$
1,319,162
$
1,274,969
Management and other fee income
4,249
4,361
12,635
12,881
Total revenues
446,065
433,403
1,331,797
1,287,850
Operating expenses Rent
(3,939
)
(3,703
)
(12,097
)
(11,854
)
Real estate taxes
(57,875
)
(55,578
)
(173,002
)
(165,967
)
Operating and maintenance
(76,604
)
(71,457
)
(226,919
)
(210,466
)
General and administrative
(33,697
)
(29,677
)
(101,180
)
(87,606
)
Impairment charges
(2,237
)
(7,067
)
(14,043
)
(21,758
)
Merger charges
(3,750
)
-
(3,750
)
-
Depreciation and amortization
(127,437
)
(125,419
)
(382,983
)
(380,324
)
Total operating expenses
(305,539
)
(292,901
)
(913,974
)
(877,975
)
Gain on sale of properties
-
3,821
52,376
10,958
Operating income
140,526
144,323
470,199
420,833
Other income/(expense) Special dividend income
-
-
194,116
-
Other income, net
8,377
6,226
19,080
18,851
Gain/(loss) on marketable securities, net
13,225
(75,491
)
17,642
(215,194
)
Interest expense
(60,424
)
(52,391
)
(182,404
)
(165,876
)
Early extinguishment of debt charges
-
(428
)
-
(7,658
)
Income before income taxes, net, equity in income of joint
ventures, net, and equity in income from other investments, net
101,704
22,239
518,633
50,956
Benefit/(provision) for income taxes, net
729
1,039
(61,127
)
1,096
Equity in income of joint ventures, net
16,257
26,360
57,589
94,060
Equity in income of other investments, net
2,100
6,733
8,741
15,491
Net income
120,790
56,371
523,836
161,603
Net (income)/loss attributable to noncontrolling interests
(2,551
)
1,583
(9,208
)
14,152
Net income attributable to the company
118,239
57,954
514,628
175,755
Preferred dividends, net
(6,285
)
(6,307
)
(18,736
)
(18,911
)
Net income available to the company's common shareholders
$
111,954
$
51,647
$
495,892
$
156,844
Per common share: Net income available to the company's
common shareholders: (1) Basic
$
0.18
$
0.08
$
0.80
$
0.25
Diluted (2)
$
0.18
$
0.08
$
0.80
$
0.25
Weighted average shares: Basic
617,090
615,832
616,888
615,417
Diluted
617,271
618,018
619,495
617,856
(1)
Adjusted for earnings attributable from participating securities of
($641) and ($582) for the three months ended September 30, 2023 and
2022, respectively. Adjusted for earnings attributable from
participating securities of ($2,460) and ($1,581) for the nine
months ended September 30, 2023 and 2022, respectively.
(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 an antidilutive effect on net income and
therefore have not been included. Distributions on convertible
units did not have a dilutive impact for the three months ended
September 30, 2023 and 2022, respectively. Adjusted for
distributions on convertible units of $1,919 and $0 for the nine
months ended September 30, 2023 and 2022, respectively.
Reconciliation of Net Income Available to the Company's
Common Shareholders to FFO Available to the Company's Common
Shareholders (1) (in thousands, except per share data)
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Net income available to the company's common shareholders
$
111,954
$
51,647
$
495,892
$
156,844
Gain on sale of properties
-
(3,821
)
(52,376
)
(10,958
)
Gain on sale of joint venture properties
(1,130
)
(7,998
)
(9,020
)
(38,182
)
Depreciation and amortization - real estate related
126,291
124,478
379,294
377,611
Depreciation and amortization - real estate joint ventures
16,244
16,667
48,390
50,168
Impairment charges (including real estate joint ventures)
2,237
7,735
14,040
25,668
Profit participation/(loss) from other investments, net
479
(5,358
)
(2,282
)
(11,009
)
Special dividend income
-
-
(194,116
)
-
(Gain)/loss on marketable securities/derivative, net
(6,225
)
75,491
(10,642
)
215,194
(Benefit)/provision for income taxes, net (2)
(669
)
(227
)
61,463
(235
)
Noncontrolling interests (2)
(575
)
(4,144
)
(68
)
(23,603
)
FFO available to the company's common shareholders (4) (5)
$
248,606
$
254,470
$
730,575
$
741,498
Weighted average shares outstanding for FFO calculations:
Basic
617,090
615,832
616,888
615,417
Units
2,562
2,558
2,555
2,498
Dilutive effect of equity awards
124
2,133
129
2,392
Diluted
619,776
620,523
619,572
620,307
FFO per common share - basic
$
0.40
$
0.41
$
1.18
$
1.20
FFO per common share - diluted (3)
$
0.40
$
0.41
$
1.18
$
1.20
(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, 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 $560
for the three months ended September 30, 2023 and 2022,
respectively. FFO available to the company's common shareholders
would be increased by $1,752 and $1,486 for the nine months ended
September 30, 2023 and 2022, respectively.
(4)
Includes Early extinguishment of debt charges of $0.4 million and
$7.7 million recognized during the three and nine months ended
September 30, 2022, respectively.
(5)
Includes merger-related charges of $3.8 million for both the three
and nine months ended September 30, 2023. In addition, includes
income related to the liquidation of the pension plan of $4.8
million, net and $5.0 million, net for the three and nine months
ended September 30, 2023, respectively.
Reconciliation of Net income Available to the Company's Common
Shareholders to Same Property NOI (1)(2) (in thousands)
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Net income available to the company's common shareholders
$
111,954
$
51,647
$
495,892
$
156,844
Adjustments: Management and other fee income
(4,249
)
(4,361
)
(12,635
)
(12,881
)
General and administrative
33,697
29,677
101,180
87,606
Impairment charges
2,237
7,067
14,043
21,758
Merger charges
3,750
-
3,750
-
Depreciation and amortization
127,437
125,419
382,983
380,324
Gain on sale of properties
-
(3,821
)
(52,376
)
(10,958
)
Special dividend income
-
-
(194,116
)
-
Interest expense and other income, net
52,047
46,593
163,324
154,683
(Gain)/loss on marketable securities, net
(13,225
)
75,491
(17,642
)
215,194
(Benefit)/provision for income taxes, net
(729
)
(1,039
)
61,127
(1,096
)
Equity in income of other investments, net
(2,100
)
(6,733
)
(8,741
)
(15,491
)
Net income/(loss) attributable to noncontrolling interests
2,551
(1,583
)
9,208
(14,152
)
Preferred dividends, net
6,285
6,307
18,736
18,911
Non same property net operating income
(10,324
)
(15,313
)
(45,949
)
(50,994
)
Non-operational expense from joint ventures, net
23,107
14,754
61,911
31,580
Same Property NOI
$
332,438
$
324,105
$
980,695
$
961,328
(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 Realty's pro-rata share.
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
$
0.96
$
0.98
Gain on sale of properties
(0.09
)
(0.12
)
Gain on sale of joint venture properties
(0.01
)
(0.02
)
Depreciation & amortization - real estate related
0.81
0.83
Depreciation & amortization - real estate joint ventures
0.10
0.11
Impairment charges (including real estate joint ventures)
0.02
0.02
Special dividend income (1)
(0.31
)
(0.31
)
Gain on marketable securities, net
(0.02
)
(0.02
)
Provision for income taxes (2)
0.10
0.10
FFO available to the company's common shareholders
$
1.56
$
1.57
(1)
Related to the special cash
dividend from ACI
(2)
Related to gains, impairments,
depreciation on properties and gains/(losses) on sales of
marketable securities, where applicable.
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/20231026310940/en/
David F. Bujnicki Senior Vice President, Investor Relations and
Strategy Kimco Realty Corporation (833) 800-4343
dbujnicki@kimcorealty.com
Kimco Realty (NYSE:KIM)
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