Kimco Realty® Announces Fourth Quarter and Full Year 2023 Results
- Kimco Realty reported strong financial results for the fourth quarter and full year, with a significant increase in net income available to common shareholders per diluted share.
- The company achieved a record high in small shop occupancy and signed 1.0 million square feet of new leases, the highest level in over 10 years.
- Kimco Realty's pro-rata portfolio occupancy increased to 96.2%, representing a 70-basis-point sequential increase, the largest in over 15 years.
- The company reported a 3.2% growth in Same-Property Net Operating Income (NOI) over the same period a year ago.
- The acquisition of RPT Realty in January 2024 is expected to unlock additional growth and long-term value for shareholders.
- The decrease in net income available to common shareholders per diluted share from the previous year is a negative aspect of the report.
- The company's full year outlook for 2024 reflects anticipated acquisition costs for RPT, which may impact future financial performance.
Insights
The reported financial results from Kimco Realty highlight a significant upturn in leasing demand, with a record high in small shop occupancy and the largest sequential quarterly occupancy gain in over 15 years. This is indicative of a robust commercial real estate market, particularly in the open-air, grocery-anchored shopping center segment. The net income jump from $0.16 to $1.02 per diluted share year-over-year is a substantial increase, reflecting strong operational performance and strategic asset management, including the monetization of Albertsons Companies, Inc. shares.
From a financial perspective, the increase in Funds From Operations (FFO) to $0.39 per diluted share for Q4 and $1.57 for the full year, although slightly down from the previous year's full FFO, is still a positive indicator of Kimco's ability to generate cash flow from its operations. The FFO is a critical measure for real estate investment trusts (REITs) as it provides a clearer picture of operating performance by excluding gains and losses from property sales and depreciation. The provided initial 2024 outlook suggests a cautious but positive projection, with an expected net income and FFO per diluted share in the range of $0.47-$0.51 and $1.54-$1.58, respectively. These figures are slightly below the actual 2023 results, which could be due to anticipated merger-related expenses and a lower expected contribution from ACI share monetization.
The strategic acquisition of RPT Realty adds 56 open-air shopping centers to Kimco's portfolio, which is expected to enhance their market presence and offer potential for future growth. The growth in Same-Property Net Operating Income (NOI) by 3.2% for the quarter and 2.4% for the full year is a strong indicator of underlying asset performance and effective property management. It is also worth noting the 350-basis-point spread between leased and economic occupancy, suggesting a substantial upside potential of approximately $57 million in future annual base rent as those spaces transition to generating income.
Kimco's capital market activities, such as the issuance of $500 million of 6.400% unsecured notes and the sale of ACI shares, demonstrate proactive financial management. However, the effective interest rate of 1.10% on the repaid notes, including FMV amortization, is notably lower than the new issuance rate, which may impact interest expenses going forward. The extension of the stock repurchase program and new dividend declarations provide insights into management's confidence in the company's financial health and commitment to delivering shareholder value.
Kimco's performance, particularly in the context of a challenging retail environment with e-commerce pressures, reflects the resilience and appeal of grocery-anchored shopping centers. Their focus on open-air, mixed-use properties is aligned with current consumer preferences for convenience and experience-driven shopping. The company's proactive portfolio management, as evidenced by their strategic dispositions and structured investments, positions them well to capitalize on market dynamics and tenant demand.
Looking ahead, the merger-related expenses and the projected reduction in ACI dividend income could impact short-term financial performance, but these are likely balanced by the long-term strategic benefits of the RPT acquisition and cost-saving synergies. Investors should monitor the execution of Kimco's strategic initiatives, including the integration of the RPT portfolio and the realization of anticipated synergies, which could further solidify its position in the market and influence long-term performance.
– Leasing Demand Accelerates; Largest Sequential Quarterly Occupancy Gain in Over 15 Years –
– Small Shop Occupancy Reaches Record High –
– Company Provides Initial 2024 Outlook –
Fourth Quarter Highlights
-
Reported Funds From Operations* (FFO) of
$0.39 -
Achieved pro-rata portfolio occupancy of
96.2% , representing a 70-basis-point sequential increase, the largest in over 15 years. -
Increased pro-rata occupancy for anchors to
98.0% and small shop to an all-time company record of91.7% . - Signed 1.0 million square feet of new leases, which is the highest quarterly level in over 10 years.
-
Generated pro-rata cash rent spreads for new leases of
24.0% on comparable spaces, including four former Bed Bath & Beyond spaces with a blended, pro-rata rent increase of57% . -
Produced
3.2% growth in Same-Property Net Operating Income* (NOI) over the same period a year ago. - Subsequent to quarter end, completed the acquisition of RPT Realty (”RPT”) in January 2024.
“We ended the year with strong results, including leasing an impressive 2.7 million square feet, and achieving positive net absorption and double-digit leasing spreads for the quarter,” said Kimco CEO Conor Flynn. “The lack of new supply and continued strong demand for our high-quality, grocery-anchored, and mixed-use portfolio bodes well for 2024. And with the completion of the RPT acquisition, our best-in-class team is already working to unlock additional growth and long-term value for our shareholders.”
*Reconciliations of non-GAAP measures to the most directly comparable GAAP measure are provided in the tables accompanying this press release. |
Financial Results
Fourth Quarter 2023
Net income available to the company’s common shareholders was
FFO was
Full Year 2023
Net income available to the company’s common shareholders was
FFO was
Fourth Quarter Operating Results
-
Executed 480 leases totaling 2.7 million square feet, generating blended pro-rata cash rent spreads on comparable spaces of
11.2% , with spreads for new leases up24.0% and renewals and options growing7.8% . -
Pro-rata portfolio occupancy ended the quarter at
96.2% , an increase of 50 basis points year-over-year and up 70 basis points sequentially. -
Pro-rata anchor occupancy ended the quarter at
98.0% , flat year-over-year and up 80 basis points sequentially. The sequential increase represents the largest quarterly gain in over a decade. -
Pro-rata small shop occupancy reached
91.7% , up 170 basis points year-over-year and an increase of 60 basis points sequentially. -
Reported a 350-basis-point spread between leased (reported) occupancy versus economic occupancy at the end of the fourth quarter, representing approximately
$57 million -
Grew Same-Property NOI
3.2% over the same period a year ago, driven by a3.1% increase in minimum rent. For the full year, Same-Property NOI was up2.4% .
Fourth Quarter Transactional Activities
-
Acquired an improved parcel at an existing shopping center for
$7.8 million -
Provided
$12.8 million -
Sold five shopping centers and one land parcel, in separate transactions, totaling approximately 846,000 square feet for
$141.7 million $54.3 million
Capital Market Activities
-
Issued
$500 million 6.400% unsecured notes maturing March 2034, as previously announced, during the fourth quarter. -
Ended the fourth quarter with
$2.8 billion $2.0 billion $783.8 million -
At the end of year, held 14.2 million shares of ACI common stock. Subsequently, Kimco sold all 14.2 million shares at a net price of
$21.05 $299.1 million $75 million -
Subsequent to year end, repaid
$246.9 million 4.45% notes due January 2024. The effective interest rate of the notes was1.10% , which included the impact of the fair market value (FMV) amortization which reduced interest expense. -
In January 2024, Kimco’s board of directors approved the extension of the company’s common stock share repurchase program for up to
$300 million $224.9 million 5.125% Class L Cumulative Redeemable Preferred Stock, par value$1.00 5.250% Class M Cumulative Redeemable Preferred Stock, par value$1.00 7.250% Class N Cumulative Convertible Perpetual Preferred Stock, par value$1.00
RPT Acquisition
On January 2, 2024, completed the acquisition of RPT in an all-stock transaction, adding 56 open-air shopping centers, 43 of which are wholly owned, comprising 13.3 million square feet of gross leasable area. Upon closing and pursuant to the terms of the Merger Agreement, Kimco:
- Issued 53.0 million shares of Kimco common stock to RPT shareholders based on the 0.6049 exchange ratio as well as the issuance of approximately 953,400 OP Units.
-
Converted each share of RPT
7.25% Series D Cumulative Convertible Perpetual Preferred Shares into a depositary share representing one-thousandth of a share of the new Kimco Class N Preferred Stock, which includes similar terms and conditions. Total liquidation preference for the Class N Preferred is$92.5 million -
Paid off
$130.0 million -
Paid off
$514.4 million $200.0 million 4.57% . -
Assumed and amended
$310.0 million 4.77% .
Dividend Declarations
-
Kimco’s board of directors declared a quarterly cash dividend on common shares of
$0.24 - 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 cumulative redeemable preferred shares. These dividends on the preferred shares will be paid on April 15, 2024, to shareholders of record on April 1, 2024.
2024 Full Year Outlook
2024 Outlook1 |
|
2023 Actual1 |
||||||||||
Net Income |
|
FFO |
|
|
|
|
||||||
Low |
|
High |
|
Low |
|
High |
|
Net Income |
|
FFO |
||
Baseline |
|
|
|
|
|
|
|
|
|
|
|
|
Merger-Related expenses, net2 |
( |
|
( |
|
( |
|
( |
|
$ - |
|
$ - |
|
2024 Outlook/2023 Actual |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The company’s full year outlook is based on the following assumptions (dollars in millions):
Dispositions (pro-rata): |
|
• Cap rate (blended) |
• |
• Portion to occur in first half of 2024 |
• |
Total acquisitions & structured investments (pro-rata): |
|
• Cap rate (blended) |
• |
• Portion to occur in first half of 2024 |
• |
Same-Property NOI growth (inclusive of RPT) |
|
• Credit loss as a % of total pro-rata rental revenues (included in Same-Property NOI) |
• ( |
ACI share monetization (net of tax): Completed first quarter 2024 |
|
• ACI dividend income |
• |
RPT-related non-cash GAAP accounting income (above & below market rents, straight-line rents and FMV of debt) |
No material impact |
RPT-related cost saving synergies included in G&A |
|
Lease termination income |
|
Interest income – Other Income (attributable to cash on balance sheet) |
|
Capital expenditures (tenant improvements, landlord work and leasing commissions) |
|
Conference Call Information
When: 8:30 AM ET, February 8, 2024
Live Webcast: 4Q23 Kimco Realty Earnings Conference Call or on Kimco Realty’s website investors.kimcorealty.com (replay available through May 8, 2024)
Dial #: 1-888-317-6003 (International: 1-412-317-6061). Passcode: 7499858
About Kimco Realty®
Kimco Realty® (NYSE:KIM) is a real estate investment trust (REIT) headquartered in
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,” “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, including the Company's ability to achieve, goals, targets and commitments set forth in this communication. 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 transaction (the “transaction”) with RPT, (xii) significant transaction costs and/or unknown or inestimable liabilities related to the transaction, (xiii) the risk of litigation, including shareholder litigation, in connection with the transaction, including any resulting expense, (xiv) the ability to successfully integrate the operations of the Company and RPT and the risk that such integration may be more difficult, time-consuming or costly than expected, (xv) 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, (xvi) effects relating to the transaction on relationships with tenants, employees, joint venture partners and third parties, (xvii) the possibility that, if the Company does not achieve the perceived benefits of the transaction as rapidly or to the extent anticipated by financial analysts or investors, the market price of the Company’s common stock could decline, (xviii) valuation and risks related to the Company’s joint venture and preferred equity investments and other investments, (xix) valuation of marketable securities, (xx) impairment charges, (xxi) criminal cybersecurity attacks disruption, data loss or other security incidents and breaches, (xxii) impact of natural disasters and weather and climate-related events, (xxiii) pandemics or other health crises, such as coronavirus disease 2019 (“COVID-19”), (xxiv) our ability to attract, retain and motivate key personnel, (xxv) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (xxvi) the level and volatility of interest rates and management’s ability to estimate the impact thereof, (xxvii) changes in the dividend policy for the Company’s common and preferred stock and the Company’s ability to pay dividends at current levels, (xxviii) unanticipated changes in the Company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity, (xxix) the Company’s ability to continue to maintain its status as a REIT for
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands, except share data) | ||||||||
| (unaudited) | ||||||||
| December 31, 2023 | December 31, 2022 | |||||||
| Assets: | ||||||||
| Real estate, net of accumulated depreciation and amortization of |
$ |
15,094,925 |
|
|
$ |
15,039,828 |
|
|
| Investments in and advances to real estate joint ventures |
|
1,087,804 |
|
|
1,091,551 |
|
||
| Other investments |
|
144,089 |
|
|
107,581 |
|
||
| Cash and cash equivalents |
|
783,757 |
|
|
149,829 |
|
||
| Marketable securities |
|
330,057 |
|
|
597,732 |
|
||
| Accounts and notes receivable, net |
|
307,617 |
|
|
304,226 |
|
||
| Operating lease right-of-use assets, net |
|
128,258 |
|
|
133,733 |
|
||
| Other assets |
|
397,515 |
|
|
401,642 |
|
||
| Total assets | $ |
18,274,022 |
|
$ |
17,826,122 |
|
||
| Liabilities: | ||||||||
| Notes payable, net | $ |
7,262,851 |
|
$ |
6,780,969 |
|
||
| Mortgages payable, net |
|
353,945 |
|
|
376,917 |
|
||
| Accounts payable and accrued expenses |
|
216,237 |
|
|
207,815 |
|
||
| Dividends payable |
|
5,308 |
|
|
5,326 |
|
||
| Operating lease liabilities |
|
109,985 |
|
|
113,679 |
|
||
| Other liabilities |
|
599,961 |
|
|
601,574 |
|
||
| Total liabilities |
|
8,548,287 |
|
|
8,086,280 |
|
||
| Redeemable noncontrolling interests |
|
72,277 |
|
|
92,933 |
|
||
| Stockholders' Equity: | ||||||||
| Preferred stock, |
|
19 |
|
|
|
19 |
|
|
| Common stock, |
|
6,199 |
|
|
|
6,185 |
|
|
| Paid-in capital |
|
9,638,494 |
|
|
9,618,271 |
|
||
| Cumulative distributions in excess of net income |
|
(122,576 |
) |
|
(119,548 |
) |
||
| Accumulated other comprehensive income |
|
3,329 |
|
|
10,581 |
|
||
| Total stockholders' equity |
|
9,525,465 |
|
|
9,515,508 |
|
||
| Noncontrolling interests |
|
127,993 |
|
|
131,401 |
|
||
| Total equity |
|
9,653,458 |
|
|
9,646,909 |
|
||
| Total liabilities and equity | $ |
18,274,022 |
|
$ |
17,826,122 |
|
||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
| Revenues | ||||||||||||||||
| Revenues from rental properties, net | $ |
447,895 |
|
$ |
435,879 |
|
$ |
1,767,057 |
|
$ |
1,710,848 |
|
||||
| Management and other fee income |
|
3,708 |
|
|
3,955 |
|
|
16,343 |
|
|
16,836 |
|
||||
| Total revenues |
|
451,603 |
|
|
439,834 |
|
|
1,783,400 |
|
|
1,727,684 |
|
||||
| Operating expenses | ||||||||||||||||
| Rent |
|
(3,900 |
) |
|
(3,957 |
) |
|
(15,997 |
) |
|
(15,811 |
) |
||||
| Real estate taxes |
|
(58,576 |
) |
|
(58,762 |
) |
|
(231,578 |
) |
|
(224,729 |
) |
||||
| Operating and maintenance |
|
(82,224 |
) |
|
(79,901 |
) |
|
(309,143 |
) |
|
(290,367 |
) |
||||
| General and administrative |
|
(35,627 |
) |
|
(31,928 |
) |
|
(136,807 |
) |
|
(119,534 |
) |
||||
| Impairment charges |
|
- |
|
|
(200 |
) |
|
(14,043 |
) |
|
(21,958 |
) |
||||
| Merger charges |
|
(1,016 |
) |
|
- |
|
|
(4,766 |
) |
|
- |
|
||||
| Depreciation and amortization |
|
(124,282 |
) |
|
(124,676 |
) |
|
(507,265 |
) |
|
(505,000 |
) |
||||
| Total operating expenses |
|
(305,625 |
) |
|
(299,424 |
) |
|
(1,219,599 |
) |
|
(1,177,399 |
) |
||||
| Gain on sale of properties |
|
22,600 |
|
|
4,221 |
|
|
74,976 |
|
|
15,179 |
|
||||
| Operating income |
|
168,578 |
|
|
144,631 |
|
|
638,777 |
|
|
565,464 |
|
||||
| Other income/(expense) | ||||||||||||||||
| Special dividend income |
|
- |
|
|
- |
|
|
194,116 |
|
|
- |
|
||||
| Other income, net |
|
20,880 |
|
|
9,978 |
|
|
39,960 |
|
|
28,829 |
|
||||
| Gain/(loss) on marketable securities, net |
|
3,620 |
|
|
(100,314 |
) |
|
21,262 |
|
|
(315,508 |
) |
||||
| Interest expense |
|
(67,797 |
) |
|
(60,947 |
) |
|
(250,201 |
) |
|
(226,823 |
) |
||||
| Early extinguishment of debt charges |
|
- |
|
|
- |
|
|
- |
|
|
(7,658 |
) |
||||
| Income/(loss) before income taxes, net, equity in income of joint ventures, net, | ||||||||||||||||
| and equity in income from other investments, net |
|
125,281 |
|
|
(6,652 |
) |
|
643,914 |
|
|
44,304 |
|
||||
| Benefit/(provision) for income taxes, net |
|
175 |
|
|
(57,750 |
) |
|
(60,952 |
) |
|
(56,654 |
) |
||||
| Equity in income of joint ventures, net |
|
14,689 |
|
|
15,421 |
|
|
72,278 |
|
|
109,481 |
|
||||
| Equity in income of other investments, net |
|
1,968 |
|
|
1,912 |
|
|
10,709 |
|
|
17,403 |
|
||||
| Net income/(loss) |
|
142,113 |
|
|
(47,069 |
) |
|
665,949 |
|
|
114,534 |
|
||||
| Net (income)/loss attributable to noncontrolling interests |
|
(2,468 |
) |
|
(2,710 |
) |
|
(11,676 |
) |
|
11,442 |
|
||||
| Net income/(loss) attributable to the company |
|
139,645 |
|
|
(49,779 |
) |
|
654,273 |
|
|
125,976 |
|
||||
| Preferred dividends, net |
|
(6,285 |
) |
|
(6,307 |
) |
|
(25,021 |
) |
|
(25,218 |
) |
||||
| Net income/(loss) available to the company's common shareholders | $ |
133,360 |
|
$ |
(56,086 |
) |
$ |
629,252 |
|
$ |
100,758 |
|
||||
| Per common share: | ||||||||||||||||
| Net income/(loss) available to the company's common shareholders: (1) | ||||||||||||||||
| Basic | $ |
0.22 |
|
$ |
(0.09 |
) |
$ |
1.02 |
|
$ |
0.16 |
|
||||
| Diluted (2) | $ |
0.22 |
|
$ |
(0.09 |
) |
$ |
1.02 |
|
$ |
0.16 |
|
||||
| Weighted average shares: | ||||||||||||||||
| Basic |
|
617,122 |
|
|
615,856 |
|
|
616,947 |
|
|
615,528 |
|
||||
| Diluted |
|
618,092 |
|
|
615,856 |
|
|
618,199 |
|
|
617,858 |
|
||||
(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. Distributions on convertible units did not have a dilutive impact for the three months and year ended 2022. Adjusted for distributions on convertible units of |
|||||||||||||||
| Reconciliation of Net Income/(Loss) 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 December 31, |
|
Year Ended December 31, |
|||||||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||||
| Net income/(loss) available to the company's common shareholders | $ |
133,360 |
|
$ |
(56,086 |
) |
$ |
629,252 |
|
$ |
100,758 |
|
|||||
| Gain on sale of properties |
|
(22,600 |
) |
|
(4,221 |
) |
|
(74,976 |
) |
|
(15,179 |
) |
|||||
| Gain on sale of joint venture properties |
|
- |
|
|
(643 |
) |
|
(9,020 |
) |
|
(38,825 |
) |
|||||
| Depreciation and amortization - real estate related |
|
123,053 |
|
|
123,663 |
|
|
502,347 |
|
|
501,274 |
|
|||||
| Depreciation and amortization - real estate joint ventures |
|
16,082 |
|
|
16,158 |
|
|
64,472 |
|
|
66,326 |
|
|||||
| Impairment charges (including real estate joint ventures) |
|
1,020 |
|
|
1,585 |
|
|
15,060 |
|
|
27,254 |
|
|||||
| Profit participation from other investments, net |
|
366 |
|
|
(4,584 |
) |
|
(1,916 |
) |
|
(15,593 |
) |
|||||
| Special dividend income |
|
- |
|
|
- |
|
|
(194,116 |
) |
|
- |
|
|||||
| (Gain)/loss on marketable securities/derivative, net |
|
(11,354 |
) |
|
100,314 |
|
|
(21,996 |
) |
|
315,508 |
|
|||||
| (Benefit)/provision for income taxes, net (2) |
|
(112 |
) |
|
58,608 |
|
|
61,351 |
|
|
58,373 |
|
|||||
| Noncontrolling interests (2) |
|
(372 |
) |
|
63 |
|
|
(440 |
) |
|
(23,540 |
) |
|||||
| FFO available to the company's common shareholders (4) (5) | $ |
239,443 |
|
$ |
234,857 |
|
$ |
970,018 |
|
$ |
976,356 |
|
|||||
| Weighted average shares outstanding for FFO calculations: | |||||||||||||||||
| Basic |
|
617,122 |
|
|
615,856 |
|
|
616,947 |
|
|
615,528 |
|
|||||
| Units |
|
2,389 |
|
|
2,559 |
|
|
2,380 |
|
|
2,492 |
|
|||||
| Dilutive effect of equity awards |
|
845 |
|
|
2,114 |
|
|
1,132 |
|
|
2,283 |
|
|||||
| Diluted |
|
620,356 |
|
|
620,529 |
|
|
620,459 |
|
|
620,303 |
|
|||||
| FFO per common share - basic | $ |
0.39 |
|
$ |
0.38 |
|
$ |
1.57 |
|
$ |
1.59 |
|
|||||
| FFO per common share - diluted (3) | $ |
0.39 |
|
$ |
0.38 |
|
$ |
1.57 |
|
$ |
1.58 |
|
|||||
(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 |
||||||||||||||||
(4) |
Includes Early extinguishment of debt charges of |
||||||||||||||||
(5) |
Includes merger-related charges of |
||||||||||||||||
| Reconciliation of Net Income/(Loss) 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, |
||||||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
| Net income/(loss) available to the company's common shareholders | $ |
133,360 |
|
$ |
(56,086 |
) |
$ |
629,252 |
|
$ |
100,758 |
|
||||
| Adjustments: | ||||||||||||||||
| Management and other fee income |
|
(3,708 |
) |
|
(3,955 |
) |
|
(16,343 |
) |
|
(16,836 |
) |
||||
| General and administrative |
|
35,627 |
|
|
31,928 |
|
|
136,807 |
|
|
119,534 |
|
||||
| Impairment charges |
|
- |
|
|
200 |
|
|
14,043 |
|
|
21,958 |
|
||||
| Merger charges |
|
1,016 |
|
|
- |
|
|
4,766 |
|
|
- |
|
||||
| Depreciation and amortization |
|
124,282 |
|
|
124,676 |
|
|
507,265 |
|
|
505,000 |
|
||||
| Gain on sale of properties |
|
(22,600 |
) |
|
(4,221 |
) |
|
(74,976 |
) |
|
(15,179 |
) |
||||
| Special dividend income |
|
- |
|
|
- |
|
|
(194,116 |
) |
|
- |
|
||||
| Interest expense and other income, net |
|
46,917 |
|
|
50,969 |
|
|
210,241 |
|
|
205,652 |
|
||||
| (Gain)/loss on marketable securities, net |
|
(3,620 |
) |
|
100,314 |
|
|
(21,262 |
) |
|
315,508 |
|
||||
| (Benefit)/provision for income taxes, net |
|
(175 |
) |
|
57,750 |
|
|
60,952 |
|
|
56,654 |
|
||||
| Equity in income of other investments, net |
|
(1,968 |
) |
|
(1,912 |
) |
|
(10,709 |
) |
|
(17,403 |
) |
||||
| Net income/(loss) attributable to noncontrolling interests |
|
2,468 |
|
|
2,710 |
|
|
11,676 |
|
|
(11,442 |
) |
||||
| Preferred dividends, net |
|
6,285 |
|
|
6,307 |
|
|
25,021 |
|
|
25,218 |
|
||||
| Non same property net operating income |
|
(12,967 |
) |
|
(13,293 |
) |
|
(62,357 |
) |
|
(68,548 |
) |
||||
| Non-operational expense from joint ventures, net |
|
24,713 |
|
|
23,934 |
|
|
86,625 |
|
|
55,514 |
|
||||
| Same Property NOI | $ |
329,630 |
|
$ |
319,321 |
|
$ |
1,306,885 |
|
$ |
1,276,388 |
|
||||
(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. |
|||||||||||||||
| 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 | $ |
0.47 |
$ |
0.51 |
|
|
| Gain on sale of properties |
|
- |
|
(0.03 |
) |
|
| 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 |
|
|
| 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 | $ |
1.54 |
$ |
1.58 |
|
|
| Merger Cost Adjustment |
|
0.04 |
|
0.04 |
|
|
| FFO Excluding Merger Costs | $ |
1.58 |
$ |
1.62 |
|
|
| 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/20240208647057/en/
David F. Bujnicki
Senior Vice President, Investor Relations and Strategy
Kimco Realty Corporation
(833) 800-4343
dbujnicki@kimcorealty.com
Source: Kimco Realty Corporation
FAQ
What is the ticker symbol for Kimco Realty?
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