Kimco Realty® Announces Third Quarter 2024 Results
Kimco Realty reported strong Q3 2024 results with net income of $0.19 per diluted share, up from $0.18 in Q3 2023. The company achieved record-high portfolio occupancy of 96.4% and small shop occupancy of 91.8%. FFO grew 7.5% to $0.43 per diluted share, while Same Property NOI increased 3.3%. The board increased the quarterly dividend by 4.2% to $0.25 per share. Notable achievements include generating 41.9% cash rent spreads on new leases and acquiring Waterford Lakes Town Center in Orlando for $322 million. The company raised its 2024 FFO guidance to $1.64-$1.65 per share.
Kimco Realty ha riportato risultati solidi per il terzo trimestre del 2024 con un utile netto di $0.19 per azione diluita, in aumento rispetto a $0.18 nel terzo trimestre del 2023. L'azienda ha raggiunto un tasso di occupazione del portafoglio record del 96.4% e un'occupazione dei negozi di piccole dimensioni del 91.8%. L'FFO è cresciuto del 7.5% a $0.43 per azione diluita, mentre il NOI dello stesso immobile è aumentato del 3.3%. Il consiglio ha aumentato il dividendo trimestrale del 4.2% a $0.25 per azione. Tra i risultati notevoli ci sono la generazione di spread di affitto in contante del 41.9% sui nuovi contratti di locazione e l'acquisizione di Waterford Lakes Town Center a Orlando per $322 milioni. L'azienda ha alzato la sua previsione FFO per il 2024 a $1.64-$1.65 per azione.
Kimco Realty reportó resultados sólidos para el tercer trimestre de 2024 con un ingreso neto de $0.19 por acción diluida, en comparación con $0.18 en el tercer trimestre de 2023. La empresa alcanzó un coeficiente de ocupación del portafolio récord del 96.4% y una ocupación de tiendas pequeñas del 91.8%. El FFO creció un 7.5% a $0.43 por acción diluida, mientras que el NOI de propiedades iguales aumentó un 3.3%. La junta aumentó el dividendo trimestral en un 4.2% a $0.25 por acción. Logros notables incluyen generar spreads de renta en efectivo del 41.9% en nuevos contratos de arrendamiento y adquirir Waterford Lakes Town Center en Orlando por $322 millones. La empresa elevó su guía de FFO para 2024 a $1.64-$1.65 por acción.
김코 리얼티는 2024년 3분기 강력한 실적을 보고했으며, 희석 주당 순이익이 $0.19로 2023년 3분기의 $0.18에서 증가했습니다. 회사는 96.4%의 기록적인 포트폴리오 점유율과 91.8%의 소형 상점 점유율을 달성했습니다. FFO는 7.5% 증가하여 희석 주당 $0.43에 달했고, 동일 자산 NOI는 3.3% 증가했습니다. 이사회는 분기 배당금을 4.2% 인상하여 주당 $0.25로 발표했습니다. 주목할 만한 성과에는 새로운 임대 계약에서 41.9%의 현금 렌트 스프레드를 생성하고, 올랜도의 Waterford Lakes Town Center를 $3억 2200만에 인수한 것이 포함됩니다. 회사는 2024년 FFO 안내치를 주당 $1.64~$1.65로 상향 조정했습니다.
Kimco Realty a annoncé de solides résultats pour le troisième trimestre 2024 avec un bénéfice net de $0.19 par action diluée, en hausse par rapport à $0.18 au troisième trimestre 2023. L'entreprise a atteint un taux d'occupation record de 96.4% pour son portefeuille et un taux d'occupation des petites boutiques de 91.8%. Le FFO a augmenté de 7.5% pour atteindre $0.43 par action diluée, tandis que le NOI des propriétés identiques a crû de 3.3%. Le conseil d'administration a décidé d’augmenter le dividende trimestriel de 4.2%, le portant à $0.25 par action. Parmi les réalisations notables, on peut citer la génération de spreads de loyer en espèces de 41.9% sur de nouveaux baux et l'acquisition du Waterford Lakes Town Center à Orlando pour $322 millions. L'entreprise a relevé ses prévisions de FFO pour 2024 à $1.64-$1.65 par action.
Kimco Realty meldete starke Ergebnisse für das dritte Quartal 2024 mit einem Nettoergebnis von $0,19 pro verwässerter Aktie, im Vergleich zu $0,18 im dritten Quartal 2023. Das Unternehmen erzielte eine Rekord-Portfoliobelegungsquote von 96,4% und eine Belegungsrate für kleine Geschäfte von 91,8%. FFO wuchs um 7,5% auf $0,43 pro verwässerter Aktie, während das NOI der gleichen Immobilie um 3,3% anstieg. Der Vorstand erhöhte die vierteljährliche Dividende um 4,2% auf $0,25 pro Aktie. Zu den bemerkenswerten Erfolgen gehören die Generierung von 41,9% Cash-Rent-Spreads bei neuen Mietverträgen und der Erwerb des Waterford Lakes Town Centers in Orlando für $322 Millionen. Das Unternehmen hat seine FFO-Prognose für 2024 auf $1,64-$1,65 pro Aktie angehoben.
- FFO growth of 7.5% to $0.43 per diluted share
- Same Property NOI growth of 3.3%
- Record portfolio occupancy at 96.4%
- 41.9% cash rent spreads on new leases
- Dividend increase of 4.2%
- Upgraded credit rating to 'A-' from Fitch
- Raised 2024 FFO guidance to $1.64-$1.65 per share
- Increased consolidated interest expense by $15.8 million due to higher debt levels
- $13.1 million lower gains on marketable securities
Insights
The Q3 2024 results showcase strong operational performance with several key achievements. FFO growth of
The acquisition of Waterford Lakes Town Center for
The exceptional
The strategic acquisition in Orlando expands presence in high-growth Sun Belt markets, while maintaining a conservative balance sheet with
– Portfolio Occupancy Matches All-Time High –
– Board Increases Quarterly Cash Dividend on Common Shares by
– Raises 2024 Outlook –
JERICHO, N.Y., Oct. 31, 2024 (GLOBE NEWSWIRE) -- Kimco Realty® (NYSE: KIM), a real estate investment trust (REIT) and leading owner and operator of high-quality, open-air, grocery-anchored shopping centers and mixed-use properties in the United States, today reported results for the third quarter ended September 30, 2024. For the three months ended September 30, 2024 and 2023, Kimco Realty’s net income available to the company’s common shareholders per diluted share was
Third Quarter Highlights
- Grew Funds From Operations* (“FFO”)
7.5% over the same period in 2023 to$0.43 per diluted share. - Produced
3.3% growth in Same Property Net Operating Income* (“NOI”) over the same period a year ago. - Increased pro-rata portfolio occupancy to
96.4% , matching the company’s all-time high. - Reached a new all-time high for pro-rata small shop occupancy at
91.8% . - Generated pro-rata cash rent spreads of
41.9% on 119 comparable new leases. - Achieved an “A-” credit rating from Fitch Ratings and a “Positive” outlook from S&P Global Ratings.
- Issued
$500 million of4.850% senior unsecured notes maturing March 2035. - Subsequent to quarter end, acquired Waterford Lakes Town Center, a 976,000-square-foot signature asset spanning 79 acres in Orlando, Florida, for
$322 million as previously reported.
“The ongoing positive supply and demand fundamentals in both the open-air sector and Kimco's portfolio continue to be a cause for optimism and confidence,” stated Conor Flynn, CEO of Kimco. “Our high-quality, grocery-anchored properties continue to deliver outsized growth, record occupancy and advantageous pricing power. Moreover, our recent acquisition of the Waterford Lakes Town Center in Orlando positions us to be a net acquirer in 2024. With a favorable environment, best in class platform and a rock-solid balance sheet, we are again raising our financial outlook for the year.”
*Reconciliations of non-GAAP measures to the most directly comparable GAAP measure are provided in the tables accompanying this press release.
Financial Results
Net income available to the company’s common shareholders (“Net income”) for the third quarter of 2024 was
- The acquisition of RPT Realty (“RPT”), which was the primary driver of the growth in consolidated revenues from rental properties, net, of
$61.1 million , partially offset by higher real estate taxes of$7.1 million and higher operating and maintenance expenses of$12.1 million , as well as increased depreciation and amortization expense of$17.3 million . $13.8 million higher other income, primarily due to an increase in mortgage and other financing income, related to Kimco’s Structured Investment Program and an increase due to mark-to-market fluctuations of embedded derivative liability.
Other notable items impacting the year-over-year change include:
$13.1 million lower gains on marketable securities in 2024 due to the sale of Albertsons Companies Inc. common stock during the first quarter of 2024.$15.8 million in increased consolidated interest expense due to higher levels of outstanding debt compared to the third quarter of 2023 driven by the debt associated with the acquisition of RPT which closed in the first quarter of 2024 and the issuance of$500 million senior unsecured notes priced at6.400% due 2034 in the third quarter of 2023.
FFO was
Operating Results
- Signed 451 leases totaling 2.4 million square feet, generating blended pro-rata cash rent spreads on comparable spaces of
12.3% , with new leases up41.9% and renewals and options growing6.8% . - Increased pro-rata portfolio occupancy to
96.4% , matching an all-time high and representing a sequential increase of 20 basis points and a year-over-year rise of 90 basis points. - Reached an all-time high for pro-rata small shop occupancy at
91.8% , reflecting a sequential increase of 10 basis points and year-over-year growth of 70 basis points. - Pro-rata anchor occupancy ended the quarter at
98.2% , an increase of 10 basis points sequentially and 100 basis points year-over-year. - Produced a 310-basis-point spread between leased (reported) occupancy and economic occupancy at the end of the third quarter, representing approximately
$61.2 million in anticipated future annual base rent. - Generated
3.3% growth in Same Property NOI over the same period a year ago, primarily driven by3.9% growth from minimum rent.
Investment & Disposition Activities
- Acquired the remaining ownership interest in a grocery-anchored shopping center in West Palm Beach, Florida for
$3.3 million . - Provided an additional
$2.6 million of mezzanine financing on a grocery-anchored shopping center from the company’s Structured Investment Program. - As previously announced in October of 2024, the company acquired Waterford Lakes Town Center, a 976,000-square-foot grocery-anchored, lifestyle center in the Orlando market, for
$322 million , including the assumption of a$164.6 million mortgage at a fixed rate of4.86% .
Capital Market Activities
- Kimco amended and upsized its unsecured term loan to
$550 million from$200 million and included five additional banks. The company entered into interest rate swap agreements, fixing the rate on the incremental term loans to a blended rate of4.664% . The terms, applicable spread, maturity date and credit covenants are unchanged from the January 2, 2024 term loan agreement. - Issued
$500 million of4.850% senior unsecured notes maturing March 2035. - Reached full allocation on the company’s
$500 million 2.700% Green Bond that was issued in July of 2020. - Ended the third quarter with
$2.8 billion of immediate liquidity, including full availability on the$2.0 billion unsecured revolving credit facility and$790 million of cash and cash equivalents on the balance sheet.
Dividend Declarations
- Kimco’s board of directors declared a cash dividend of
$0.25 per common share, representing a4.2% increase over the quarterly dividend in the corresponding period of the prior year. The quarterly cash dividend on common shares will be payable on December 19, 2024, to shareholders of record on December 5, 2024. - The board of directors also declared quarterly dividends with respect to each of the company’s Class L, Class M, and Class N series of preferred shares. These dividends on the preferred shares will be paid on January 15, 2025, to shareholders of record on January 2, 2025.
2024 Full Year Outlook
The company has raised its 2024 outlook for Net income and FFO per diluted share as follows:
| Current | Previous | |
| Net income: | ||
| FFO: |
The company has also updated the assumptions that support its full year outlook for Net income and FFO in the following table (Pro-rata share; dollars in millions):
| 2024 Guidance Assumptions | YTD @ 09.30.24 | Current | Previous | ||
Total acquisitions & structured investments combined:
|
|
|
| ||
Dispositions:
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|
| ||
| Same Property NOI growth (inclusive of RPT) | |||||
| Credit loss as a % of total pro-rata rental revenues | ( | ( | ( | ||
| RPT-related non-cash GAAP income (above & below market rents and straight-line rents) | |||||
| RPT-related cost saving synergies included in G&A | Only showing full year impact | ||||
| Lease termination income | |||||
| Interest income – Other income (attributable to cash on balance sheet) | |||||
| Capital expenditures (tenant improvements, landlord work and leasing commissions) | |||||
**Includes the purchase of Waterford Lakes Town Center which occurred on October 1, 2024.
Conference Call Information
| When: | 8:30 AM ET, October 31, 2024 |
| Live Webcast: | 3Q24 Kimco Realty Earnings Conference Call or on Kimco Realty’s website investors.kimcorealty.com (replay available until January 31, 2025) |
| Dial #: | 1-888-317-6003 (International: 1-412-317-6061). Passcode: 1893940 |
About Kimco Realty®
Kimco Realty® (NYSE: KIM) is a real estate investment trust (REIT) and leading owner and operator of high-quality, open-air, grocery-anchored shopping centers and mixed-use properties in the United States. The company’s portfolio is strategically concentrated in the first-ring suburbs of the top major metropolitan markets, including high-barrier-to-entry coastal markets and rapidly expanding Sun Belt cities. Its tenant mix is focused on essential, necessity-based goods and services that drive multiple shopping trips per week. 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. With a proven commitment to corporate responsibility, Kimco Realty is a recognized industry leader in this area. As of September 30, 2024, the company owned interests in 567 U.S. shopping centers and mixed-use assets comprising 101 million square feet of gross leasable space.
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”). 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 disruptions, (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) the Company’s failure to realize the expected benefits of the merger with RPT Realty (the “RPT Merger”), (xii) the risk of litigation, including shareholder litigation, in connection with the RPT Merger, including any resulting expense, (xiii) 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, (xiv) the possibility that, if the Company does not achieve the perceived benefits of the RPT Merger as rapidly or to the extent anticipated by financial analysts or investors, the market price of the Company’s common stock could decline, (xv) valuation and risks related to the Company’s joint venture and preferred equity investments and other investments, (xvi) collectability of mortgage and other financing receivables, (xvii) impairment charges, (xviii) criminal cybersecurity attacks, disruption, data loss or other security incidents and breaches, (xix) risks related to artificial intelligence, (xx) impact of natural disasters and weather and climate-related events, (xxi) pandemics or other health crises, (xxii) our ability to attract, retain and motivate key personnel, (xxiii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (xxiv) the level and volatility of interest rates and management’s ability to estimate the impact thereof, (xxv) changes in the dividend policy for the Company’s common and preferred stock and the Company’s ability to pay dividends at current levels, (xxvi) unanticipated changes in the Company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity, (xxvii) 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 (xxviii) other risks and uncertainties identified under Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023. 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”).
CONTACT:
David F. Bujnicki
Senior Vice President, Investor Relations and Strategy
Kimco Realty Corporation
(833) 800-4343
dbujnicki@kimcorealty.com
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands, except share data) | ||||||||
| (unaudited) | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| Assets: | ||||||||
| Real estate, net of accumulated depreciation and amortization | ||||||||
| of | $ | 16,515,749 | $ | 15,094,925 | ||||
| Investments in and advances to real estate joint ventures | 1,492,211 | 1,087,804 | ||||||
| Other investments | 106,513 | 144,089 | ||||||
| Cash, cash equivalents and restricted cash | 790,044 | 783,757 | ||||||
| Marketable securities | 2,355 | 330,057 | ||||||
| Accounts and notes receivable, net | 320,361 | 307,617 | ||||||
| Operating lease right-of-use assets, net | 130,914 | 128,258 | ||||||
| Other assets | 770,849 | 397,515 | ||||||
| Total assets | $ | 20,128,996 | $ | 18,274,022 | ||||
| Liabilities: | ||||||||
| Notes payable, net | $ | 7,966,940 | $ | 7,262,851 | ||||
| Mortgages payable, net | 335,275 | 353,945 | ||||||
| Accounts payable and accrued expenses | 309,272 | 216,237 | ||||||
| Dividends payable | 6,722 | 5,308 | ||||||
| Operating lease liabilities | 121,417 | 109,985 | ||||||
| Other liabilities | 646,619 | 599,961 | ||||||
| Total liabilities | 9,386,245 | 8,548,287 | ||||||
| Redeemable noncontrolling interests | 73,688 | 72,277 | ||||||
| Stockholders' Equity: | ||||||||
| Preferred stock, | ||||||||
| Issued and outstanding (in series) 21,216 and 19,367 shares, respectively; | ||||||||
| Aggregate liquidation preference | 21 | 19 | ||||||
| Common stock, $.01 par value, authorized 1,500,000,000 and 750,000,000 shares, | ||||||||
| respectively; issued and outstanding 674,082,065 and 619,871,237 shares, respectively | 6,741 | 6,199 | ||||||
| Paid-in capital | 10,917,003 | 9,638,494 | ||||||
| Cumulative distributions in excess of net income | (387,067 | ) | (122,576 | ) | ||||
| Accumulated other comprehensive (loss)/income | (13,485 | ) | 3,329 | |||||
| Total stockholders' equity | 10,523,213 | 9,525,465 | ||||||
| Noncontrolling interests | 145,850 | 127,993 | ||||||
| Total equity | 10,669,063 | 9,653,458 | ||||||
| Total liabilities and equity | $ | 20,128,996 | $ | 18,274,022 | ||||
| Condensed Consolidated Statements of Income | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues | |||||||||||||||
| Revenues from rental properties, net | $ | 502,875 | $ | 441,816 | $ | 1,498,001 | $ | 1,319,162 | |||||||
| Management and other fee income | 4,757 | 4,249 | 13,616 | 12,635 | |||||||||||
| Total revenues | 507,632 | 446,065 | 1,511,617 | 1,331,797 | |||||||||||
| Operating expenses | |||||||||||||||
| Rent | (4,239 | ) | (3,939 | ) | (12,744 | ) | (12,097 | ) | |||||||
| Real estate taxes | (64,996 | ) | (57,875 | ) | (194,538 | ) | (173,002 | ) | |||||||
| Operating and maintenance | (88,744 | ) | (76,604 | ) | (262,267 | ) | (226,919 | ) | |||||||
| General and administrative | (33,850 | ) | (33,697 | ) | (103,238 | ) | (101,180 | ) | |||||||
| Impairment charges | (375 | ) | (2,237 | ) | (4,277 | ) | (14,043 | ) | |||||||
| Merger charges | - | (3,750 | ) | (25,246 | ) | (3,750 | ) | ||||||||
| Depreciation and amortization | (144,688 | ) | (127,437 | ) | (447,555 | ) | (382,983 | ) | |||||||
| Total operating expenses | (336,892 | ) | (305,539 | ) | (1,049,865 | ) | (913,974 | ) | |||||||
| Gain on sale of properties | 551 | - | 944 | 52,376 | |||||||||||
| Operating income | 171,291 | 140,526 | 462,696 | 470,199 | |||||||||||
| Other income/(expense) | |||||||||||||||
| Special dividend income | - | - | - | 194,116 | |||||||||||
| Other income, net | 22,203 | 8,377 | 39,953 | 19,080 | |||||||||||
| Gain/(loss) on marketable securities, net | 79 | 13,225 | (27,613 | ) | 17,642 | ||||||||||
| Interest expense | (76,216 | ) | (60,424 | ) | (224,122 | ) | (182,404 | ) | |||||||
| Income before income taxes, net, equity in income of joint ventures, net, | |||||||||||||||
| and equity in income from other investments, net | 117,357 | 101,704 | 250,914 | 518,633 | |||||||||||
| (Provision)/benefit for income taxes, net | (128 | ) | 729 | (72,355 | ) | (61,127 | ) | ||||||||
| Equity in income of joint ventures, net | 20,981 | 16,257 | 63,413 | 57,589 | |||||||||||
| Equity in income of other investments, net | 216 | 2,100 | 9,468 | 8,741 | |||||||||||
| Net income | 138,426 | 120,790 | 251,440 | 523,836 | |||||||||||
| Net income attributable to noncontrolling interests | (2,443 | ) | (2,551 | ) | (6,693 | ) | (9,208 | ) | |||||||
| Net income attributable to the company | 135,983 | 118,239 | 244,747 | 514,628 | |||||||||||
| Preferred dividends, net | (7,961 | ) | (6,285 | ) | (23,864 | ) | (18,736 | ) | |||||||
| Net income available to the company's common shareholders | $ | 128,022 | $ | 111,954 | $ | 220,883 | $ | 495,892 | |||||||
| Per common share: | |||||||||||||||
| Net income available to the company's common shareholders: (1) | |||||||||||||||
| Basic | $ | 0.19 | $ | 0.18 | $ | 0.32 | $ | 0.80 | |||||||
| Diluted (2) | $ | 0.19 | $ | 0.18 | $ | 0.32 | $ | 0.80 | |||||||
| Weighted average shares: | |||||||||||||||
| Basic | 671,231 | 617,090 | 670,851 | 616,888 | |||||||||||
| Diluted | 671,577 | 617,271 | 671,096 | 619,495 | |||||||||||
| (1) Adjusted for earnings attributable to participating securities of ( | |||||||||||||||
| (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. Adjusted for distributions on convertible units of | |||||||||||||||
| 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, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Net income available to the company's common shareholders | $ | 128,022 | $ | 111,954 | $ | 220,883 | $ | 495,892 | |||||||||
| Gain on sale of properties | (551 | ) | - | (944 | ) | (52,376 | ) | ||||||||||
| Gain on sale of joint venture properties | (7 | ) | (1,130 | ) | (1,501 | ) | (9,020 | ) | |||||||||
| Depreciation and amortization - real estate related | 143,482 | 126,291 | 443,836 | 379,294 | |||||||||||||
| Depreciation and amortization - real estate joint ventures | 21,218 | 16,244 | 64,161 | 48,390 | |||||||||||||
| Impairment charges (including real estate joint ventures) | 375 | 2,237 | 8,778 | 14,040 | |||||||||||||
| Profit participation from other investments, net | 377 | 479 | (5,299 | ) | (2,282 | ) | |||||||||||
| Special dividend income | - | - | - | (194,116 | ) | ||||||||||||
| (Gain)/loss on marketable securities/derivative, net | (4,849 | ) | (6,225 | ) | 25,922 | (10,642 | ) | ||||||||||
| Provision/(benefit) for income taxes, net (2) | 59 | (669 | ) | 71,706 | 61,463 | ||||||||||||
| Noncontrolling interests (2) | (738 | ) | (575 | ) | (2,367 | ) | (68 | ) | |||||||||
| FFO available to the company's common shareholders (4) | $ | 287,388 | $ | 248,606 | $ | 825,175 | $ | 730,575 | |||||||||
| Weighted average shares outstanding for FFO calculations: | |||||||||||||||||
| Basic | 671,231 | 617,090 | 670,851 | 616,888 | |||||||||||||
| Units | 3,293 | 2,562 | 3,245 | 2,555 | |||||||||||||
| Convertible preferred shares | 4,265 | - | 4,265 | - | |||||||||||||
| Dilutive effect of equity awards | 289 | 124 | 193 | 129 | |||||||||||||
| Diluted | 679,078 | 619,776 | 678,554 | 619,572 | |||||||||||||
| FFO per common share - basic | $ | 0.43 | $ | 0.40 | $ | 1.23 | $ | 1.18 | |||||||||
| FFO per common share - diluted (3) | $ | 0.43 | $ | 0.40 | $ | 1.23 | $ | 1.18 | |||||||||
| (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, gains/(losses) on sales of marketable securities and derivatives, where applicable. | |||||||||||||||||
| (3) Reflects the potential impact of convertible preferred shares and certain units if converted to common stock at the beginning of the period. FFO available to the company’s common shareholders would be increased by | |||||||||||||||||
| (4) Includes merger-related charges of | |||||||||||||||||
| 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, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Net income available to the company's common shareholders | $ | 128,022 | $ | 111,954 | $ | 220,883 | $ | 495,892 | |||||||||
| Adjustments: | |||||||||||||||||
| Management and other fee income | (4,757 | ) | (4,249 | ) | (13,616 | ) | (12,635 | ) | |||||||||
| General and administrative | 33,850 | 33,697 | 103,238 | 101,180 | |||||||||||||
| Impairment charges | 375 | 2,237 | 4,277 | 14,043 | |||||||||||||
| Merger charges | - | 3,750 | 25,246 | 3,750 | |||||||||||||
| Depreciation and amortization | 144,688 | 127,437 | 447,555 | 382,983 | |||||||||||||
| Gain on sale of properties | (551 | ) | - | (944 | ) | (52,376 | ) | ||||||||||
| Special dividend income | - | - | - | (194,116 | ) | ||||||||||||
| Interest expense and other income, net | 54,013 | 52,047 | 184,169 | 163,324 | |||||||||||||
| (Gain)/loss on marketable securities, net | (79 | ) | (13,225 | ) | 27,613 | (17,642 | ) | ||||||||||
| Provision/(benefit) for income taxes, net | 128 | (729 | ) | 72,355 | 61,127 | ||||||||||||
| Equity in income of other investments, net | (216 | ) | (2,100 | ) | (9,468 | ) | (8,741 | ) | |||||||||
| Net income attributable to noncontrolling interests | 2,443 | 2,551 | 6,693 | 9,208 | |||||||||||||
| Preferred dividends, net | 7,961 | 6,285 | 23,864 | 18,736 | |||||||||||||
| RPT same property NOI (3) | - | 42,893 | 610 | 121,761 | |||||||||||||
| Non same property net operating income | (10,664 | ) | (14,368 | ) | (36,620 | ) | (43,209 | ) | |||||||||
| Non-operational expense from joint ventures, net | 28,231 | 23,106 | 85,629 | 61,911 | |||||||||||||
| Same Property NOI | $ | 383,444 | $ | 371,286 | $ | 1,141,484 | $ | 1,105,196 | |||||||||
| (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 | |||||||||||||||||
| (2) Amounts represent Kimco Realty's pro-rata share. | |||||||||||||||||
| (3) Amounts for the respective periods, represent the Same property NOI from RPT properties, not included in the Company's Net income available to the Company's common shareholders. | |||||||||||||||||
| 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 2024 | ||||||||
| Low | High | |||||||
| Net income available to the company's common shareholders | $ | 0.50 | $ | 0.51 | ||||
| Gain on sale of properties | - | (0.01 | ) | |||||
| Gain on sale of joint venture properties | - | (0.01 | ) | |||||
| Depreciation & amortization - real estate related | 0.87 | 0.88 | ||||||
| Depreciation & amortization - real estate joint ventures | 0.12 | 0.13 | ||||||
| Impairment charges (including real estate joint ventures) | 0.01 | 0.01 | ||||||
| Profit participation from other investments, net | (0.01 | ) | (0.01 | ) | ||||
| Loss on marketable securities, net | 0.04 | 0.04 | ||||||
| Provision for income taxes | 0.11 | 0.11 | ||||||
| FFO available to the company's common shareholders | $ | 1.64 | $ | 1.65 | ||||
| Merger Cost Adjustment | 0.04 | 0.04 | ||||||
| FFO Excluding Merger Costs | $ | 1.68 | $ | 1.69 | ||||
| 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. | ||||||||
FAQ
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