Kimco Realty Announces First Quarter 2021 Results

Rhea-AI Summary

Kimco Realty Corp. (NYSE: KIM) reported a strong first quarter for 2021, with net income rising to $131.6 million ($0.30 per diluted share), compared to $83.7 million ($0.19 per diluted share) in Q1 2020. Highlights included executing 358 leases totaling 2.8 million square feet, a 93.5% occupancy rate, and collecting 94% of base rents. The company ended the quarter with $2.3 billion in liquidity, including $254 million in cash. A strategic merger with Weingarten Realty Investors was also announced, expected to enhance portfolio strength and growth opportunities.

Positive

• Net income increased to $131.6 million, up from $83.7 million year-over-year.
• Executed 358 leases totaling 2.8 million square feet, the highest since Q1 2019.
• Achieved new cash pro-rata leasing spreads of 8.2% on comparable spaces.
• Portfolio occupancy stood at 93.5%.
• Collected 94% of total pro-rata base rents billed during the quarter.
• Ended with $2.3 billion in liquidity, including $254 million in cash.
• Merger with Weingarten Realty Investors expected to enhance growth opportunities.

Negative

• NAREIT Funds From Operations (FFO) declined to $144.3 million from $160.5 million year-over-year.
• Total revenue decreased by $7.4 million due to increased rent abatements.

Kimco Realty Corp. (NYSE: KIM), one of North America’s largest publicly traded owners and operators of open-air, grocery-anchored shopping centers and mixed-use assets, today reported results for the first quarter ended March 31, 2021. For the three months ended March 31, 2021 and 2020, Kimco’s net income available to the company’s common shareholders was $0.30 per diluted share and $0.19 per diluted share, respectively.

First Quarter Highlights:

• Executed 358 leases totaling 2.8 million square feet, the highest combined lease count and gross leasable area since the first quarter of 2019.
• Generated new cash pro-rata leasing spreads of 8.2% on comparable spaces.
• Reported pro-rata portfolio occupancy of 93.5%.
• Collected 94% of total pro-rata base rents billed during the first quarter.
• Ended the quarter with $2.3 billion of immediate liquidity including $254 million in cash.
• Subsequent to quarter end, announced the entry into a strategic merger agreement with Weingarten Realty Investors (NYSE: WRI), creating the nation’s preeminent open-air, grocery-anchored shopping center and mixed-use real estate platform.

“Our well-positioned, predominately grocery-anchored portfolio that focuses on essential goods and services, enabled us to drive over 2.8 million square feet of leasing in the first quarter, again reaching pre-pandemic levels,” said Conor Flynn, Kimco’s Chief Executive Officer. “The operating environment remains very favorable, evidenced by our strong leasing levels, positive spreads on new leases and solid rent collections, reflecting increasing tenant health. The success of our ongoing efforts supports raising our outlook for 2021. Looking further ahead, future opportunities for Kimco are strengthened considerably with the pending merger with Weingarten. This highly strategic combination will result in a stronger and more diversified portfolio, with significant embedded growth opportunities in high-growth Sun Belt markets. Upon closing, we will be well positioned to build additional value for all of our stakeholders.”

Financial Results

Net income available to the company’s common shareholders for the first quarter of 2021 was $131.6 million, or $0.30 per diluted share, compared to $83.7 million, or $0.19 per diluted share, for the first quarter of 2020. The year-over-year change includes:

• $65.8 million increase in gain on marketable securities, net, primarily as a result of the mark-to-market adjustment on 39.8 million shares of common stock of Albertsons Companies, Inc. (NYSE: ACI) held by the company.
• $6.2 million increase from gains on sales of properties.
• ($7.2) million decrease in equity in income of other real estate investments, net due to gains on sales of net leased assets sold during 2020.
• ($7.4) million decrease in total revenue resulting from $3.8 million of higher rent abatements, partially offset by a change in reserves over the same period in the prior year, as well as $4.2 million in lower income recognized from above and below market rents.

NAREIT Funds From Operations (FFO) was $144.3 million, or $0.33 per diluted share, compared to $160.5 million, or $0.37 per diluted share, for the first quarter 2020. A reconciliation of net income available to the company’s common shareholders to NAREIT FFO is provided in the tables accompanying this press release.

Operating Results

• Executed 358 leases totaling 2.8 million square feet, representing the highest quarterly level of square footage leased since the first quarter of 2019.
• The 121 new leases signed during the quarter for 586,000 square feet represented an increase in gross leasable area of 44% over the fourth quarter of 2020 and 71% f

FAQ

What were Kimco Realty's Q1 2021 earnings per share?

Kimco Realty reported earnings of $0.30 per diluted share for Q1 2021.

How many leases did Kimco Realty execute in Q1 2021?

Kimco executed 358 leases totaling 2.8 million square feet in Q1 2021.

What is Kimco Realty's current liquidity status?

Kimco ended Q1 2021 with $2.3 billion in liquidity, including $254 million in cash.

What is the significance of the merger with Weingarten Realty Investors for Kimco?

The merger is expected to create a stronger, more diversified portfolio and enhance growth opportunities.

What was the occupancy rate reported by Kimco Realty for Q1 2021?

Kimco reported a portfolio occupancy rate of 93.5% for Q1 2021.