Kimco Realty® Announces Second Quarter 2024 Results
Kimco Realty (NYSE: KIM), a leading REIT, announced its Q2 2024 results, showcasing robust growth in net income and FFO. Net income per diluted share rose to $0.17, a 6.3% YoY increase. FFO grew 5.1% to $0.41 per diluted share. Key metrics include a 3.0% rise in Same Property NOI and a record high of 91.7% in small shop occupancy. The company signed 482 leases totaling 2.3 million sq ft, with a 26.3% increase in new lease cash rent spreads. Kimco invested $168 million in structured investment programs and raised its 2024 outlook for net income and FFO per diluted share. The REIT ended the quarter with $1.8 billion available on its unsecured revolving credit facility and over $125 million in cash.
Kimco Realty (NYSE: KIM), un leader nel settore dei REIT, ha annunciato i risultati del secondo trimestre del 2024, evidenziando una solida crescita del reddito netto e del FFO. Il reddito netto per azione diluita è aumentato a $0.17, con un incremento del 6.3% rispetto all'anno precedente. Il FFO è cresciuto del 5.1% raggiungendo $0.41 per azione diluita. Le metriche chiave includono un aumento del 3.0% nel NOI delle stesse proprietà e un record del 91.7% nell'occupazione dei negozi piccoli. L'azienda ha firmato 482 contratti di locazione per un totale di 2.3 milioni di piedi quadrati, con un incremento del 26.3% nei canoni di affitto delle nuove locazioni. Kimco ha investito $168 milioni in programmi di investimento strutturati e ha alzato le sue previsioni per il 2024 riguardo al reddito netto e al FFO per azione diluita. Il REIT ha concluso il trimestre con $1.8 miliardi disponibili nel suo credito rotativo non garantito e oltre $125 milioni in contanti.
Kimco Realty (NYSE: KIM), un líder en REIT, anunció sus resultados del segundo trimestre de 2024, mostrando un sólido crecimiento en ingreso neto y FFO. El ingreso neto por acción diluida aumentó a $0.17, un incremento del 6.3% interanual. El FFO creció un 5.1% hasta alcanzar los $0.41 por acción diluida. Las métricas clave incluyen un aumento del 3.0% en el NOI de la misma propiedad y un récord del 91.7% en la ocupación de pequeñas tiendas. La compañía firmó 482 contratos de arrendamiento que totalizan 2.3 millones de pies cuadrados, con un aumento del 26.3% en las rentas en efectivo de nuevos contratos. Kimco invirtió $168 millones en programas de inversión estructurada y elevó sus perspectivas para 2024 en cuanto a ingresos netos y FFO por acción diluida. El REIT terminó el trimestre con $1.8 mil millones disponibles en su línea de crédito rotativa no garantizada y más de $125 millones en efectivo.
김코 리얼티 (NYSE: KIM), 선도적인 REIT,은 2024년 2분기 실적을 발표하며 순이익과 FFO의 강력한 성장을 보여주었습니다. 희석주당 순이익은 $0.17로, 전년 대비 6.3% 증가했습니다. FFO는 5.1% 증가하여 희석주당 $0.41에 도달했습니다. 주요 지표로는 동일 자산 NOI가 3.0% 증가했으며, 소형 상점의 점유율은 91.7%로 사상 최고치를 기록했습니다. 회사는 총 2.3백만 평방피트의 임대 계약 482건을 체결했으며, 신규 임대 현금 렌트 스프레드는 26.3% 증가했습니다. 김코는 구조화된 투자 프로그램에 $168백만을 투자했으며, 2024년 순이익과 희석주당 FFO 전망을 상향 조정했습니다. REIT는 분기를 마감하며 보증되지 않은 회전 신용 시설에서 $1.8백억 달러를 사용할 수 있으며, $125백만 이상의 현금을 보유하고 있습니다.
Kimco Realty (NYSE: KIM), un leader des REIT, a annoncé ses résultats du deuxième trimestre 2024, mettant en évidence une croissance robuste du revenu net et du FFO. Le revenu net par action diluée a augmenté à 0,17 $, soit une hausse de 6,3 % par rapport à l'année précédente. Le FFO a augmenté de 5,1 % pour atteindre 0,41 $ par action diluée. Les indicateurs clés incluent une hausse de 3,0 % du NOI des mêmes propriétés et un taux d'occupation record de 91,7 % pour les petits magasins. L'entreprise a signé 482 baux totalisant 2,3 millions de pieds carrés, avec une augmentation de 26,3 % des loyers en espèces des nouveaux baux. Kimco a investi 168 millions de dollars dans des programmes d'investissement structurés et a relevé ses prévisions pour 2024 en matière de revenu net et de FFO par action diluée. Le REIT a terminé le trimestre avec 1,8 milliard de dollars disponibles sur sa ligne de crédit renouvelable non garantie et plus de 125 millions de dollars en liquidités.
Kimco Realty (NYSE: KIM), ein führender REIT, hat seine Ergebnisse für das zweite Quartal 2024 bekannt gegeben und ein robustes Wachstum bei Nettoeinkommen und FFO aufgezeigt. Das Nettoeinkommen pro verwässerter Aktie stieg auf $0,17, was einem Anstieg von 6,3 % im Vergleich zum Vorjahr entspricht. Der FFO wuchs um 5,1 % auf $0,41 pro verwässerter Aktie. Zu den wichtigsten Kennzahlen gehören ein Anstieg von 3,0 % beim NOI der gleichen Immobilie und eine Rekordhöhe von 91,7 % bei der Belegung von kleinen Geschäften. Das Unternehmen unterzeichnete 482 Mietverträge mit einer Gesamtfläche von 2,3 Millionen Quadratfuß, mit einem Anstieg von 26,3 % der neuen Mietpreise. Kimco investierte 168 Millionen Dollar in strukturierte Investitionsprogramme und hob die Prognose für 2024 hinsichtlich des Nettoeinkommens und des FFO pro verwässerter Aktie an. Der REIT schloss das Quartal mit 1,8 Milliarden Dollar an verfügbaren Mitteln in seiner unbesicherten revolvierenden Kreditlinie und über 125 Millionen Dollar in Barbeständen ab.
- Net income per diluted share increased by 6.3% YoY to $0.17.
- FFO per diluted share rose by 5.1% YoY to $0.41.
- Same Property NOI grew by 3.0%.
- Small shop occupancy reached a record-high 91.7%.
- Pro-rata portfolio occupancy increased to 96.2%.
- Signed 482 leases, generating a 26.3% increase in new lease cash rent spreads.
- Invested $168 million under the Structured Investment Program.
- Raised 2024 outlook for net income and FFO per diluted share.
- Higher real estate taxes of $8.6 million.
- Increased operating and maintenance expenses by $12.7 million.
- Increased depreciation and amortization expense by $18.9 million.
- Lower gains on marketable securities by $14.6 million.
- Lower gains on sales of properties by $13.3 million.
- Increased interest expense by $12.7 million.
Insights
Kimco Realty's Q2 2024 results demonstrate strong operational performance and financial growth, signaling positive momentum for the company. Key highlights include:
- FFO growth of
5.1% year-over-year to$0.41 per diluted share - Same Property NOI growth of
3.0% - Portfolio occupancy expansion to
96.2% , with small shop occupancy matching a record high of91.7% - Impressive leasing activity with
11.7% blended pro-rata cash rent spreads
The company's acquisition of RPT Realty is proving accretive, contributing to revenue growth and validating their investment strategy. With
The balance sheet remains solid with
Kimco's focus on high-quality, grocery-anchored shopping centers in prime locations continues to pay off, as evidenced by the strong occupancy rates and leasing spreads. The
Investors should note the raised guidance for both Net income and FFO, reflecting management's optimism about the company's trajectory. The updated Same Property NOI growth projection of
Overall, Kimco's Q2 results and improved outlook paint a positive picture for the company's near-term prospects in the retail REIT sector.
Kimco's Q2 2024 results offer valuable insights into the current state of the retail real estate market:
- The strong occupancy rates, particularly the
91.7% small shop occupancy, indicate a healthy demand for retail space in well-located, grocery-anchored centers. - The
11.7% blended pro-rata cash rent spreads, especially the26.3% on new leases, suggest that retailers are willing to pay premium rents for quality locations. - The
3.0% Same Property NOI growth demonstrates the resilience of Kimco's portfolio and the broader retail real estate sector.
The success of Kimco's Structured Investment Program, including the
The
Kimco's strategic focus on first-ring suburbs of major metropolitan markets, including high-barrier-to-entry coastal markets and expanding Sun Belt cities, aligns well with current demographic and migration trends. This positioning should continue to attract both national and local tenants seeking prime locations.
The raised guidance and positive leasing momentum suggest that concerns about e-commerce impacts on physical retail may be overblown, at least for well-located, grocery-anchored centers. Kimco's performance indicates that the right mix of necessity-based goods and services can drive consistent foot traffic and retailer demand.
Overall, Kimco's results paint a picture of a resilient and even thriving retail real estate market, particularly for high-quality assets in strategic locations.
– Strong Operating Performance Drives Growth in Net Income and FFO –
– Small Shop Occupancy Matches Record High –
– Raises 2024 Outlook –
JERICHO, N.Y., Aug. 01, 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 second quarter ended June 30, 2024. For the three months ended June 30, 2024 and 2023, Kimco Realty’s net income available to the company’s common shareholders per diluted share was
Second Quarter Highlights
- Grew Funds From Operations* (FFO)
5.1% over the same period in 2023 to$0.41 per diluted share. - Generated
3.0% growth in Same Property Net Operating Income* (NOI) over the same period a year ago. - Expanded pro-rata portfolio occupancy to
96.2% , up 20 basis points sequentially and 40 basis points year-over-year. - Increased pro-rata small shop occupancy to
91.7% , up 20 basis points sequentially and matching the all-time company record. - Leased 2.3 million square feet, generating blended pro-rata cash rent spreads on comparable spaces, including renewals and options, of
11.7% . - Generated pro-rata cash rent spreads of
26.3% on 144 comparable new leases. - Invested
$168.0 million under the company’s Structured Investment Program. - Published 11th annual Corporate Responsibility Report, demonstrating ongoing commitment to stakeholders through both actions and results.
“Our ability to report strong growth reflects the quality of our open air, grocery-anchored portfolio and further validates our investment thesis for the RPT acquisition,” said Conor Flynn, CEO of Kimco. “We see these positive trends continuing, and with
*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 second 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
$57.2 million , partially offset by higher real estate taxes of$8.6 million and operating and maintenance expenses of$12.7 million , as well as increased depreciation and amortization expense of$18.9 million . - A
$30.8 million reduction in provision for income taxes, primarily due to tax gains associated with the sale of Albertsons Companies Inc. (“ACI”) common stock during 2023.
Other notable items impacting the year-over-year change:
$14.6 million lower gains on marketable securities in 2024 due to the sale of ACI common stock during 2023.$13.3 million lower gains on sales of properties, net of impairments in 2024.$12.7 million in increased interest expense, mainly due to higher outstanding debt associated with the acquisition of RPT and the issuance of$500 million of senior unsecured notes with a6.400% coupon in the fourth quarter of 2023, partially offset by the repayment of unsecured notes that matured in 2024.
FFO was
Operating Results
- Signed 482 leases totaling 2.3 million square feet, generating blended pro-rata cash rent spreads on comparable spaces of
11.7% , with new leases up26.3% and renewals and options growing9.0% . - Grew pro-rata portfolio occupancy to
96.2% , representing an increase of 20 basis points sequentially and 40 basis points year-over-year. - Elevated pro-rata anchor occupancy to
98.1% , an increase of 30 basis points sequentially and 40 basis points year-over-year. - Expanded pro-rata small shop occupancy to match the all-time high of
91.7% , an increase of 20 basis points sequentially and 70 basis points year over year. - Reported a 320-basis-point spread between leased (reported) occupancy and economic occupancy at the end of the second quarter, representing approximately
$63 million in anticipated future annual base rent. - Generated
3.0% growth in Same Property NOI over the same period a year ago, primarily driven by3.4% growth from minimum rent.
Investment & Disposition Activities
- Invested
$168.0 million under Kimco’s Structured Investment Program, including an additional$146.2 million investment in The Rim, a 1.2 million square foot, mixed-use lifestyle center located in San Antonio, which is one of the top-visited shopping centers in Texas. - Sold two properties and one land parcel for
$49.2 million . The company’s pro-rata share of the sales was$7.9 million .
Capital Market Activities
- The company ended the quarter with approximately
$1.8 billion available on its$2.0 billion unsecured revolving credit facility and over$125 million of cash and cash equivalents. - Subsequent to quarter end, Kimco amended and upsized its unsecured term loan to
$500 million from$200 million , and included four additional banks. The terms, applicable spread, maturity date and credit covenants are unchanged from the January 2, 2024 term loan agreement. The company entered into interest rate swap agreements, fixing the rate on the incremental term loan to a blended rate of4.78% .
Dividend Declarations
- Kimco Realty’s board of directors declared a quarterly cash dividend on common shares of
$0.24 per share, payable on September 19, 2024, to shareholders of record on September 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 October 15, 2024, to shareholders of record on October 1, 2024.
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: |
*Includes (
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 | Q2 YTD | Current | Previous |
Total acquisitions & structured investments combined:
|
|
|
|
Dispositions:
|
|
|
|
| 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) |
Conference Call Information
When: 8:30 AM ET, August 1, 2024
Live Webcast: 2Q24 Kimco Realty Earnings Conference Call or on Kimco Realty’s website investors.kimcorealty.com (replay available until November 1, 2024)
Dial #: 1-888-317-6003 (International: 1-412-317-6061). Passcode: 1566978
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 June 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) significant transaction costs and/or unknown or inestimable liabilities related to the RPT Merger, (xiii) the risk of litigation, including shareholder litigation, in connection with the RPT Merger, 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 RPT Merger 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 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, (xviii) valuation and risks related to the Company’s joint venture and preferred equity investments and other investments, (xix) collectability of mortgage and other financing receivables, (xx) impairment charges, (xxi) criminal cybersecurity attacks, disruption, data loss or other security incidents and breaches, (xxii) risks related to artificial intelligence, (xxiii) impact of natural disasters and weather and climate-related events, (xxiv) pandemics or other health crises, such as the coronavirus disease 2019 (“COVID-19”), (xxv) our ability to attract, retain and motivate key personnel, (xxvi) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (xxvii) the level and volatility of interest rates and management’s ability to estimate the impact thereof, (xxviii) changes in the dividend policy for the Company’s common and preferred stock and the Company’s ability to pay dividends at current levels, (xxix) unanticipated changes in the Company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity, (xxx) 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 (xxxi) 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
| Condensed Consolidated Balance Sheets | |||||||||
| (in thousands, except share data) | |||||||||
| (unaudited) | |||||||||
| June 30, 2024 | December 31, 2023 | ||||||||
| Assets: | |||||||||
| Real estate, net of accumulated depreciation and amortization | |||||||||
| of | $ | 16,565,463 | $ | 15,094,925 | |||||
| Investments in and advances to real estate joint ventures | 1,501,267 | 1,087,804 | |||||||
| Other investments | 105,456 | 144,089 | |||||||
| Cash and cash equivalents | 127,555 | 783,757 | |||||||
| Marketable securities | 1,612 | 330,057 | |||||||
| Accounts and notes receivable, net | 306,790 | 307,617 | |||||||
| Operating lease right-of-use assets, net | 131,083 | 128,258 | |||||||
| Other assets | 764,951 | 397,515 | |||||||
| Total assets | $ | 19,504,177 | $ | 18,274,022 | |||||
| Liabilities: | |||||||||
| Notes payable, net | $ | 7,337,253 | $ | 7,262,851 | |||||
| Mortgages payable, net | 337,456 | 353,945 | |||||||
| Accounts payable and accrued expenses | 251,737 | 216,237 | |||||||
| Dividends payable | 6,722 | 5,308 | |||||||
| Operating lease liabilities | 121,156 | 109,985 | |||||||
| Other liabilities | 653,236 | 599,961 | |||||||
| Total liabilities | 8,707,560 | 8,548,287 | |||||||
| Redeemable noncontrolling interests | 70,010 | 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 674,112,166 and 619,871,237 shares, respectively | 6,741 | 6,199 | |||||||
| Paid-in capital | 10,914,084 | 9,638,494 | |||||||
| Cumulative distributions in excess of net income | (353,310 | ) | (122,576 | ) | |||||
| Accumulated other comprehensive income | 11,236 | 3,329 | |||||||
| Total stockholders' equity | 10,578,772 | 9,525,465 | |||||||
| Noncontrolling interests | 147,835 | 127,993 | |||||||
| Total equity | 10,726,607 | 9,653,458 | |||||||
| Total liabilities and equity | $ | 19,504,177 | $ | 18,274,022 | |||||
| Condensed Consolidated Statements of Income | ||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Revenues | ||||||||||||||||||
| Revenues from rental properties, net | $ | 496,221 | $ | 439,008 | $ | 995,126 | $ | 877,346 | ||||||||||
| Management and other fee income | 4,010 | 3,832 | 8,859 | 8,386 | ||||||||||||||
| Total revenues | 500,231 | 442,840 | 1,003,985 | 885,732 | ||||||||||||||
| Operating expenses | ||||||||||||||||||
| Rent | (4,226 | ) | (4,145 | ) | (8,505 | ) | (8,158 | ) | ||||||||||
| Real estate taxes | (66,182 | ) | (57,621 | ) | (129,542 | ) | (115,127 | ) | ||||||||||
| Operating and maintenance | (87,749 | ) | (75,073 | ) | (173,523 | ) | (150,315 | ) | ||||||||||
| General and administrative | (33,090 | ) | (32,734 | ) | (69,388 | ) | (67,483 | ) | ||||||||||
| Impairment charges | (201 | ) | - | (3,902 | ) | (11,806 | ) | |||||||||||
| Merger charges | - | - | (25,246 | ) | - | |||||||||||||
| Depreciation and amortization | (148,148 | ) | (129,245 | ) | (302,867 | ) | (255,546 | ) | ||||||||||
| Total operating expenses | (339,596 | ) | (298,818 | ) | (712,973 | ) | (608,435 | ) | ||||||||||
| Gain on sale of properties | 75 | 13,170 | 393 | 52,376 | ||||||||||||||
| Operating income | 160,710 | 157,192 | 291,405 | 329,673 | ||||||||||||||
| Other income/(expense) | ||||||||||||||||||
| Special dividend income | - | - | - | 194,116 | ||||||||||||||
| Other income, net | 5,661 | 7,571 | 17,750 | 10,703 | ||||||||||||||
| (Loss)/gain on marketable securities, net | (6 | ) | 14,561 | (27,692 | ) | 4,417 | ||||||||||||
| Interest expense | (73,341 | ) | (60,674 | ) | (147,906 | ) | (121,980 | ) | ||||||||||
| Income before income taxes, net, equity in income of joint ventures, net, | ||||||||||||||||||
| and equity in income from other investments, net | 93,024 | 118,650 | 133,557 | 416,929 | ||||||||||||||
| Provision for income taxes, net | (217 | ) | (31,027 | ) | (72,227 | ) | (61,856 | ) | ||||||||||
| Equity in income of joint ventures, net | 21,527 | 17,128 | 42,432 | 41,332 | ||||||||||||||
| Equity in income of other investments, net | 7,718 | 4,519 | 9,252 | 6,641 | ||||||||||||||
| Net income | 122,052 | 109,270 | 113,014 | 403,046 | ||||||||||||||
| Net income attributable to noncontrolling interests | (2,314 | ) | (2,644 | ) | (4,250 | ) | (6,657 | ) | ||||||||||
| Net income attributable to the company | 119,738 | 106,626 | 108,764 | 396,389 | ||||||||||||||
| Preferred dividends, net | (7,961 | ) | (6,200 | ) | (15,903 | ) | (12,451 | ) | ||||||||||
| Net income available to the company's common shareholders | $ | 111,777 | $ | 100,426 | $ | 92,861 | $ | 383,938 | ||||||||||
| Per common share: | ||||||||||||||||||
| Net income available to the company's common shareholders: (1) | ||||||||||||||||||
| Basic | $ | 0.17 | $ | 0.16 | $ | 0.14 | $ | 0.62 | ||||||||||
| Diluted (2) | $ | 0.17 | $ | 0.16 | $ | 0.14 | $ | 0.62 | ||||||||||
| Weighted average shares: | ||||||||||||||||||
| Basic | 671,198 | 617,077 | 670,658 | 616,785 | ||||||||||||||
| Diluted | 671,384 | 617,257 | 670,839 | 619,749 | ||||||||||||||
| (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 June 30, | Six Months Ended June 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Net income available to the company's common shareholders | $ | 111,777 | $ | 100,426 | $ | 92,861 | $ | 383,938 | |||||||||
| Gain on sale of properties | (75 | ) | (13,170 | ) | (393 | ) | (52,376 | ) | |||||||||
| Gain on sale of joint venture properties | (1,441 | ) | (180 | ) | (1,494 | ) | (7,890 | ) | |||||||||
| Depreciation and amortization - real estate related | 146,892 | 127,725 | 300,354 | 253,003 | |||||||||||||
| Depreciation and amortization - real estate joint ventures | 21,345 | 15,599 | 42,943 | 32,146 | |||||||||||||
| Impairment charges (including real estate joint ventures) | 2,701 | - | 8,403 | 11,803 | |||||||||||||
| Profit participation from other investments, net | (5,647 | ) | (2,792 | ) | (5,676 | ) | (2,761 | ) | |||||||||
| Special dividend income | - | - | - | (194,116 | ) | ||||||||||||
| Loss/(gain) on marketable securities/derivative, net | 1,243 | (14,561 | ) | 30,771 | (4,417 | ) | |||||||||||
| (Benefit)/provision for income taxes, net (2) | (94 | ) | 31,259 | 71,647 | 62,132 | ||||||||||||
| Noncontrolling interests (2) | (743 | ) | (424 | ) | (1,629 | ) | 507 | ||||||||||
| FFO available to the company's common shareholders (4) | $ | 275,958 | $ | 243,882 | $ | 537,787 | $ | 481,969 | |||||||||
| Weighted average shares outstanding for FFO calculations: | |||||||||||||||||
| Basic | 671,198 | 617,077 | 670,658 | 616,785 | |||||||||||||
| Units | 3,290 | 2,563 | 3,264 | 2,551 | |||||||||||||
| Convertible preferred shares | 4,265 | - | 4,265 | - | |||||||||||||
| Dilutive effect of equity awards | 129 | 122 | 129 | 490 | |||||||||||||
| Diluted | 678,882 | 619,762 | 678,316 | 619,826 | |||||||||||||
| FFO per common share - basic | $ | 0.41 | $ | 0.40 | $ | 0.80 | $ | 0.78 | |||||||||
| FFO per common share - diluted (3) | $ | 0.41 | $ | 0.39 | $ | 0.80 | $ | 0.78 | |||||||||
| (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 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 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 June 30, | Six Months Ended June 30, | |||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Net income available to the company's common shareholders | $ | 111,777 | $ | 100,426 | $ | 92,861 | $ | 383,938 | ||||||||||
| Adjustments: | ||||||||||||||||||
| Management and other fee income | (4,010 | ) | (3,832 | ) | (8,859 | ) | (8,386 | ) | ||||||||||
| General and administrative | 33,090 | 32,734 | 69,388 | 67,483 | ||||||||||||||
| Impairment charges | 201 | - | 3,902 | 11,806 | ||||||||||||||
| Merger charges | - | - | 25,246 | - | ||||||||||||||
| Depreciation and amortization | 148,148 | 129,245 | 302,867 | 255,546 | ||||||||||||||
| Gain on sale of properties | (75 | ) | (13,170 | ) | (393 | ) | (52,376 | ) | ||||||||||
| Special dividend income | - | - | - | (194,116 | ) | |||||||||||||
| Interest expense and other income, net | 67,680 | 53,103 | 130,156 | 111,277 | ||||||||||||||
| Loss/(gain) on marketable securities, net | 6 | (14,561 | ) | 27,692 | (4,417 | ) | ||||||||||||
| Provision for income taxes, net | 217 | 31,027 | 72,227 | 61,856 | ||||||||||||||
| Equity in income of other investments, net | (7,718 | ) | (4,519 | ) | (9,252 | ) | (6,641 | ) | ||||||||||
| Net income attributable to noncontrolling interests | 2,314 | 2,644 | 4,250 | 6,657 | ||||||||||||||
| Preferred dividends, net | 7,961 | 6,200 | 15,903 | 12,451 | ||||||||||||||
| RPT same property NOI (3) | - | 38,358 | 610 | 78,597 | ||||||||||||||
| Non same property net operating income | (10,192 | ) | (13,843 | ) | (25,213 | ) | (28,815 | ) | ||||||||||
| Non-operational expense from joint ventures, net | 28,278 | 22,766 | 57,400 | 38,805 | ||||||||||||||
| Same Property NOI | $ | 377,677 | $ | 366,578 | $ | 758,785 | $ | 733,665 | ||||||||||
| (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 | $ | 0.44 | $ | 0.46 | ||||
| Gain on sale of properties | - | (0.03 | ) | |||||
| Gain on sale of joint venture properties | - | (0.01 | ) | |||||
| Depreciation & amortization - real estate related | 0.88 | 0.91 | ||||||
| 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 | 0.05 | 0.05 | ||||||
| Provision for income taxes | 0.11 | 0.11 | ||||||
| FFO available to the company's common shareholders | $ | 1.60 | $ | 1.62 | ||||
| Merger Cost Adjustment | 0.04 | 0.04 | ||||||
| FFO Excluding Merger Costs | $ | 1.64 | $ | 1.66 | ||||
| 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
What were Kimco Realty's Q2 2024 net income results?
What is the FFO per diluted share for Kimco Realty in Q2 2024?
How much did Kimco Realty's Same Property NOI grow in Q2 2024?
What is the small shop occupancy rate for Kimco Realty in Q2 2024?
How many leases did Kimco Realty sign in Q2 2024 and what was the rent spread?
How much did Kimco Realty invest in its Structured Investment Program in Q2 2024?
What is Kimco Realty's 2024 outlook for net income and FFO per diluted share?
