StockSelector.com
  Research, Select, & Monitor Sunday, November 19, 2017 5:23:29 AM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Kimco Realty Corporation$19.35$.05.26%

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Kimco Realty Announces Fourth Quarter and Full Year 2014 Operating Results; Reports Strong Increases in Operating Fundamentals - Company’s Occupancy Rate at Highest Level Since 2008
   Thursday, February 05, 2015 4:01:34 PM ET

Kimco Realty Corp. (KIM ) today reported results for the fourth quarter and year ended December 31, 2014.

Highlights - Fourth Quarter and Full Year 2014

-- FFO increased 15.2% for the fourth quarter and 7.4% for the full year 2014 over the comparable 2013 periods; FFO as adjusted increased 6.1% and 5.3%, respectively, during these same periods;

-- U.S. same-property net operating income (NOI) increased 4.3% for the fourth quarter compared to the same period in 2013 representing the nineteenth consecutive positive quarterly increase;

-- U.S. and combined portfolio occupancy increased to 95.7% and 95.8%, respectively, representing the highest levels since the first quarter of 2008;

-- U.S. transaction volume (pro-rata) surpassed $1.8 billion in 2014; acquired interests in 60 properties totaling $1.1 billion and sold 91 properties for $717.1 million;

-- Strategic exit from Latin America substantially complete with the sale of 25 properties, totaling $205.2 million, during the fourth quarter;

-- Subsequently closed on a new $650 million unsecured term loan; and

-- On February 2, 2015, purchased the remaining 66.7% interest in the 39-property Kimstone portfolio for $925 million.

Financial Results

Net income available to common shareholders for the fourth quarter of 2014 was $38.2 million, or $0.09 per diluted share, compared to $47.0 million, or $0.11 per diluted share, for the fourth quarter of 2013. Net income available to common shareholders during the fourth quarter of 2014 included $127.4 million of gains on sales of operating properties and $153.9 million of impairments, which were primarily attributable to a $134.3 million loss on foreign currency translation related to the company’s strategic exit from Mexico. This compares to $22.0 million of gains on the sales of operating properties and $20.7 million of impairments during the fourth quarter of 2013. Both operating property impairments and gains on sales are excluded from the calculation of funds from operations (FFO).

For the full year 2014, net income available to common shareholders was $365.7 million, or $0.89 per diluted share, compared to $178.0 million, or $0.43 per diluted share, for the full year 2013. Net income available to common shareholders for the full year 2014 included $383.4 million of gains on sales of operating properties and $257.7 million of impairments. The impairments recognized were attributable to the sale or pending disposition of operating properties, including a $134.3 million loss on foreign currency related to the company’s strategic exit from Mexico. This compares to $159.3 million of gains on the sales of operating properties and $165.8 million of impairments for the full year of 2013.

FFO, a widely accepted supplemental measure of REIT performance, was $156.7 million, or $0.38 per diluted share, for the fourth quarter of 2014 compared to $134.7 million, or $0.33 per diluted share, for the fourth quarter of 2013.

For the full year 2014, FFO was $596.2 million, or $1.45 per diluted share, compared to $552.5 million, or $1.35 per diluted share, for the full year 2013.

FFO as adjusted, which excludes the effects of non-operating impairments as well as transactional income and expenses, was $144.6 million, or $0.35 per diluted share, for the fourth quarter of 2014 compared to $134.8 million, or $0.33 per diluted share, for the fourth quarter of 2013.

For the full year 2014, FFO as adjusted was $576.9 million, or $1.40 per diluted share, compared to $543.7 million, or $1.33 per diluted share, for the same period in 2013.

A reconciliation of net income to FFO and FFO as adjusted is provided in the tables accompanying this press release.

Operating Results

Details on fourth quarter 2014 shopping center portfolio operating results and related metrics:

-- Pro-rata occupancy in the U.S. and combined portfolios (including Canada and Latin America) ended the quarter at 95.7% and 95.8%, respectively. This represents increases of 80 basis points and 130 basis points, respectively, over the fourth quarter of 2013.

-- U.S. shopping center portfolio pro-rata occupancy for anchor space (10,000 square feet and greater) was 98.3%, a 40 basis-point increase from the fourth quarter of 2013. The pro-rata occupancy for small shop space increased 280 basis points to 88% during this same period.

-- U.S. portfolio pro-rata rental-rate leasing spreads increased 9.4% with rental rates for new leases up 11.9% and renewals/options increasing 8.6%.

-- U.S. same-property net operating income (NOI) increased 4.3% compared to the fourth quarter of 2013, including a 1.4% increase from the inclusion of redevelopments. For the full year 2014, U.S. same-property NOI increased 3.3%, including a 90 basis-point increase from the inclusion of redevelopments.

-- Combined same-property NOI, excluding the impact of foreign currency, increased 4.0% over the fourth quarter of 2013 and 3.3% for the full year of 2014. Combined same-property NOI, including the impact of foreign currency, increased 3.1% and 2.5%, respectively, for the fourth quarter and full year of 2014 compared to the same periods in 2013.

Investment Activity

United States

-- As previously announced, the company purchased the interest in nine shopping centers during the fourth quarter for its wholly owned portfolio, totaling more than 1.4 million square feet, for a gross purchase price of $245.0 million. Kimco’s share of the purchase price was $158.8 million. In addition, the company acquired several land parcels totaling $114.2 million as part of four future ground-up development projects.

-- For the full year 2014, Kimco acquired interests in 60 retail properties, including 33 acquired from existing joint venture partners, totaling 6.7 million square feet. The aggregate purchase price for these acquisitions was $1.4 billion. Kimco’s share of the purchase price was $1.1 billion.

-- During the fourth quarter, Kimco sold ownership interests in 41 properties (30 wholly owned and 11 joint ventures) in the U.S., totaling 4.5 million square feet, for a gross sales price of $492.3 million. The company’s pro-rata share from these sales was $332.2 million.

-- For the full year 2014, the company sold 91 U.S. shopping centers (62 wholly owned properties and 29 unconsolidated properties), totaling 9.6 million square feet, for a gross sales price of $1.0 billion. Kimco’s pro-rata share from these sales was $717.1 million.

Kimco initiated its portfolio transformation strategy in September 2010 to acquire high-quality properties with value creation opportunities in strong demographic trade areas in core markets, while disposing of assets in tertiary locations with low growth profiles. During this time, the company has successfully acquired interests in 142 shopping centers while disposing of 234 properties, leading to a 340 basis-point increase in pro-rata occupancy and an 18.2% growth in the average base rent per square foot for the portfolio.

-- Subsequent to the year end, Kimco completed the acquisition for the remaining 66.7% interest in the 39-property Kimstone portfolio from its joint venture partner, a subsidiary of Blackstone Real Estate Partners VII (BREP), for $925 million, which includes the assumption of $426.7 million in mortgage debt.

-- In January 2015, the company invested $85.3 million of new equity in the consortium that owns AB Acquisition LLC (Albertsons) to facilitate Albertsons’ recent acquisition of Safeway Inc. Kimco holds a 9.94% ownership interest in the combined company which operates 2,230 stores across 34 states and the District of Columbia operating under Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Albertsons, ACME, Jewel-Osco, Lucky, Shaw’s, Star Market, Super Saver, United Supermarkets, Market Street and Amigos.

Mexico and South America (Latin America)

-- In the fourth quarter of 2014, Kimco sold a total of 25 properties in Latin America totaling $205.2 million with the company’s pro-rata share from these sales totaling approximately $171.9 million.

-- For the full year 2014, Kimco completed the sale of 41 properties in Latin America, totaling approximately 7.5 million square feet, for a gross sales price of $622.3 million. The company’s pro-rata share from these sales was $475.4 million.

These sales reflect Kimco’s strategy to simplify its operations by exiting Latin America. With the consummation of these sales, the company has substantially liquidated its portfolio in Mexico, marking the significant completion of Kimco’s goal to exit Latin America.

2015 Guidance

Kimco provides full year 2015 guidance for FFO, as well as FFO as adjusted and operational estimates for occupancy, same-property NOI, acquisitions, dispositions and transactional income, net.

Kimco’s initial full year 2015 financial and operational guidance:

                       
------------------------------------ -------------------- -------------------- ---------------------------
FFO (per diluted share)                  $1.45 - $1.53
------------------------------------ -------------------- -------------------- ---------------------------
FFO as adjusted (per diluted share)*     $1.40 - $1.44
------------------------------------ -------------------- -------------------- ---------------------------
U.S. Portfolio Occupancy                 +25 to +50 basis points
------------------------------------ -------------------- -------------------- ---------------------------
U.S. Same-property NOI                   +3.00% to +3.50%
------------------------------------ -------------------- -------------------- ---------------------------
Acquisitions (Kimco share)               $1.1 billion - $1.3 billion
------------------------------------ -------------------- -------------------- ---------------------------
Dispositions (Kimco share)               $550 million - $750 million
------------------------------------ -------------------- -------------------- ---------------------------
Transactional Income, net                $20 million - $38 million
------------------------------------ -------------------- -------------------- ---------------------------
*Excludes Transactional Income, net
 

Dividend Declarations

Kimco’s board of directors declared a quarterly cash dividend of $0.24 per common share, payable on April 15, 2015, to shareholders of record on April 6, 2015, representing an ex-dividend date of April 1, 2015.

The board of directors also declared quarterly dividends with respect to the company’s various series of cumulative redeemable preferred shares (Class H, Class I, Class J and Class K). All dividends on the preferred shares will be paid on April 15, 2015, to shareholders of record on April 2, 2015, with an ex-dividend date of March 31, 2015.

Conference Call and Supplemental Materials

Kimco will hold its quarterly conference call on Friday, February 6, 2015, at 10:00 a.m. Eastern Standard Time (EST). The call will include a review of the company’s fourth quarter and full year 2014 results as well as a discussion of the company’s strategy and expectations for the future. To participate, dial 1-888-317-6003 (Passcode: 2464033).

A replay will be available through March 2, 2015, by dialing 1-877-344-7529 (Passcode: 10056722). Access to the live call and replay will be available through the company’s website at investors.kimcorealty.com.

About Kimco

Kimco Realty Corp. (KIM ) is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that owns and operates North America’s largest publicly traded portfolio of neighborhood and community shopping centers. As of December 31, 2014, the company owned interests in 754 shopping centers comprising 110 million square feet of leasable space across 39 states, Puerto Rico, Canada, Mexico and Chile. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 50 years. For further information, please visit www.kimcorealty.com, the company’s blog at blog.kimcorealty.com, or follow Kimco on Twitter at www.twitter.com/kimcorealty.

Safe Harbor Statement

The statements in this news release state the company’s and management’s intentions, beliefs, expectations or projections of the future and are forward-looking statements. It is important to note that the company’s actual results could differ materially from those projected in such forward-looking statements. 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 inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the company, (iv) the company’s ability to raise capital by selling its assets, (v) changes in governmental laws and regulations, (vi) the level and volatility of interest rates and foreign currency exchange rates and management’s ability to estimate the impact thereof, (vii) risks related to the company’s international operations, (viii) the availability of suitable acquisition and disposition opportunities, and risks related to acquisitions not performing in accordance with our expectations, (ix) valuation and risks related to the company’s joint venture and preferred equity investments, (x) valuation of marketable securities and other investments, (xi) increases in operating costs, (xii) changes in the dividend policy for the company’s common stock, (xiii) the reduction in the company’s income in the event of multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center, (xiv) impairment charges and (xv) unanticipated changes in the company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity. Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the company’s SEC filings. Copies of each filing may be obtained from the company or the SEC.

The company refers you to the documents filed by the company from time to time with the SEC, specifically the section titled "Risk Factors" in the company’s Annual Report on Form 10-K for the year ended December 31, 2013, as may be updated or supplemented in the company’s Quarterly Reports on Form 10-Q and the company’s other filings with the SEC, which discuss these and other factors that could adversely affect the company’s results.

 
                                                                                                                                                                  Condensed Consolidated Statements of Income
                                                                                                                                                                   (in thousands, except share information)
                                                                                                                                                                                  (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                         Three Months Ended                                                                                                                                        Year Ended
                                                                                                                            December 31,                                                                                                                                          December 31,
                                                                        2014                                 2013                                2014                                 2013    
                                                                    -------------------- -------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
Revenues
    Revenues from rental properties                                                    $  255,748                                                                 $ 217,362                                                                 $  958,888                                                                 $  825,210
    Management and other fee income                                      8,764                               9,565                               35,009                               36,317  
                                                                    -------------------- -------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
        Total revenues                                                 264,512                             226,927                              993,897                              861,527  
                                                                    -------------------- -------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                        
Operating expenses
    Rent                                                                                    3,888                                                                     3,335                                                                     14,250                                                                     13,347
    Real estate taxes                                                                      33,129                                                                    28,522                                                                    124,670                                                                    108,746
    Operating and maintenance                                                              34,078                                                                    30,142                                                                    119,697                                                                     99,405
    General and administrative expenses                                                    27,675                                                                    31,543                                                                    122,201                                                                    127,470
    Provision for doubtful accounts                                                           788                                                                       721                                                                      4,882                                                                      6,133
    Impairment charges                                                                     11,420                                                                       609                                                                     39,808                                                                     32,247
    Depreciation and amortization                                       72,767                              59,571                              258,074                              224,713  
                                                                    -------------------- -------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
        Total operating expenses                                       183,745                             154,443                              683,582                              612,061  
                                                                    -------------------- -------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
Operating income                                                                           80,767                                                                    72,484                                                                    310,315                                                                    249,466
                                                                                                                                                                                                                                                                                                                                                        
Other income/(expense)
    Mortgage financing income                                                                 585                                                                       963                                                                      3,129                                                                      4,304
    Interest, dividends and other investment income                                           323                                                                     7,384                                                                        966                                                                     16,847
    Other (expense)/income, net                                                            (4,238 )                                                                   3,004                                                                     (8,544 )                                                                    1,195
    Interest expense                                                                      (49,823 )                                                                 (50,920 )                                                                 (203,759 )                                                                 (212,240 )
Income from continuing operations before income taxes,                                                                                                                                                                                      
                                                                    ---------------------------------------------------                        --------------------------------------------------                        ---------------------------------------------------                        ---------------------------------------------------
 equity in income of joint ventures, gain on change in control
 of interests and equity in income from other real estate                                  27,614                                                                    32,915                                                                    102,107                                                                     59,572
 investments
                                                                                                                                                                                                                                                                                                                                                        
    Provision for income taxes, net                                                        (7,727 )                                                                  (6,333 )                                                                  (22,438 )                                                                  (32,654 )
    Equity in income of joint ventures, net                                                 9,487                                                                    28,898                                                                    159,560                                                                    208,689
    Gain on change in control of interests, net                                            23,462                                                                         -                                                                    107,235                                                                     21,711
    Equity in income of other real estate investments, net              21,638                               1,225                               38,042                               31,136  
                                                                    -------------------- -------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
        Income from continuing operations                               74,474                              56,705                              384,506                              288,454  
                                                                    -------------------- -------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
                                                                                                                                                                                                                                                                                                                                                        
Discontinued operations
    Income from discontinued operating properties, net of tax                               5,610                                                                     9,853                                                                     36,780                                                                     50,610
    Impairment/loss on operating properties, net of tax                                  (101,040 )                                                                 (22,677 )                                                                 (176,315 )                                                                 (143,057 )
    Gain on disposition of operating properties, net of tax             71,716                              16,151                              190,520                               43,914  
                                                                    -------------------- -------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
    (Loss)/income from discontinued operations                         (23,714 )                                                3,327                               50,985                              (48,533 )
                                                                    -------------------- -------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
Gain on sale of operating properties, net of tax (1)                         -                                 352                                  389                                1,432  
                                                                    -------------------- -------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
      Net income                                                                           50,760                                                                    60,384                                                                    435,880                                                                    241,353
    Net loss/(income) attributable to noncontrolling interests (3)       2,020                               1,224                              (11,879 )                                                (5,072 )
                                                                    -------------------- -------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
      Net income attributable to the Company                                               52,780                                                                    61,608                                                                    424,001                                                                    236,281
    Preferred stock dividends                                          (14,573 )                                              (14,573 )                                               (58,294 )                                               (58,294 )
                                                                    -------------------- -------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
      Net income available to the Company’s common shareholders                        $   38,207                                              $  47,035                                              $  365,707                                              $  177,987  
                                                                    ==================== ======== ====================                         ==================== ======= ====================                         ==================== ======== ====================                         ==================== ======== ====================
Per common share:
    Income from continuing operations: (3)
      Basic                                                                            $     0.14                                              $    0.09                                              $     0.77                                              $     0.53  
                                                                    ==================== ======== ====================                         ==================== ======= ====================                         ==================== ======== ====================                         ==================== ======== ====================
      Diluted                                                                          $     0.14   (2)                     $    0.09   (2)                     $     0.77   (2)                     $     0.53   (2) 
                                                                    ==================== ======== ====================                         ==================== ======= ====================                         ==================== ======== ====================                         ==================== ======== ====================
    Net income: (4)
      Basic                                                                            $     0.09                                              $    0.11                                              $     0.89                                              $     0.43  
                                                                    ==================== ======== ====================                         ==================== ======= ====================                         ==================== ======== ====================                         ==================== ======== ====================
      Diluted                                                                          $     0.09   (2)                                        $    0.11   (2)                                        $     0.89   (2)                                        $     0.43   (2)
                                                                    ==================== ======== ====================                         ==================== ======= ====================                         ==================== ======== ====================                         ==================== ======== ====================
Weighted average shares:
     Basic                                                             409,740                             408,139                              409,088                              407,631  
                                                                    ==================== ======== ====================                         ==================== ======= ====================                         ==================== ======== ====================                         ==================== ======== ====================
     Diluted                                                           411,000                             408,995                              411,038                              408,614  
                                                                    ==================== ======== ====================                         ==================== ======= ====================                         ==================== ======== ====================                         ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                        
(1)   Included in the calculation of income from continuing operations per
                         common share in accordance with SEC guidelines.
(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 anti-dilutive effect on net income and
                         therefore have not been included.
(3)                      Includes the net income attributable to noncontrolling interests
                         related to continued operations of ($3,290) and ($4,920) for the
                         quarters ended December 31, 2014 and 2013, and ($9,762) and
                         ($13,002) for the year ended December 31, 2014 and 2013,
                         respectively.
(4)                      Includes earnings attributable to unvested restricted shares of $459
                         and $358 for the quarters ended December 31, 2014 and 2013 and
                         $1,749 and $1,360 for the year ended December 30, 2014 and 2013,
                         respectively.
                          
 
                                                                             Condensed Consolidated Balance Sheets
                                                                           (in thousands, except share information)
                                                                                          (unaudited)
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                       
                                                                                     December 31,                                                              December 31,
                                                                      2014                                2013    
                                                                 -------------------- ---------- --------------------                      -------------------- --------- --------------------
Assets:
   Operating real estate, net of accumulated depreciation
    of $1,955,406 and $1,878,681, respectively                                      $  7,930,489                                                              $ 7,146,845
   Investments and advances in real estate joint ventures                              1,037,218                                                                1,257,010
   Real estate under development                                                         132,331                                                                   97,818
   Other real estate investments                                                         266,157                                                                  274,641
   Mortgages and other financing receivables                                              74,013                                                                   30,243
   Cash and cash equivalents                                                             187,322                                                                  148,768
   Marketable securities                                                                  90,235                                                                   62,766
   Accounts and notes receivable                                                         172,386                                                                  164,326
   Other assets                                                       395,577                            481,213  
                                                                 -------------------- ---------- --------------------                      -------------------- --------- --------------------
Total assets                                                                        $ 10,285,728                                           $ 9,663,630  
                                                                 ==================== ========== ====================                      ==================== ========= ====================
                                                                                                                                            
Liabilities:
   Notes payable                                                                    $  3,192,167                                                              $ 3,186,047
   Mortgages payable                                                                   1,428,131                                                                1,035,354
   Dividends payable                                                                     111,143                                                                  104,496
   Other liabilities                                                  561,042                            482,054  
                                                                 -------------------- ---------- --------------------                      -------------------- --------- --------------------
Total liabilities                                                   5,292,483                          4,807,951  
                                                                 -------------------- ---------- --------------------                      -------------------- --------- --------------------
Redeemable noncontrolling interests                                    91,480                             86,153  
                                                                 -------------------- ---------- --------------------                      -------------------- --------- --------------------
                                                                                                                                            
Stockholders’ equity:
   Preferred stock, $1.00 par value, authorized 5,961,200 shares
    102,000 shares issued and outstanding (in series)
    Aggregate liquidation preference $975,000                                                102                                                                      102
   Common stock, $.01 par value, authorized 750,000,000 shares
    issued and outstanding 411,819,818 and 409,731,058 shares,                             4,118                                                                    4,097
    respectively
   Paid-in capital                                                                     5,732,021                                                                5,689,258
   Cumulative distributions in excess of net income                                   (1,006,578 )                                                               (996,058 )
   Accumulated other comprehensive income                              45,122                            (64,982 )
                                                                 -------------------- ---------- --------------------                      -------------------- --------- --------------------
Total stockholders’ equity                                                             4,774,785                                                                4,632,417
   Noncontrolling interests                                           126,980                            137,109  
                                                                 -------------------- ---------- --------------------                      -------------------- --------- --------------------
Total equity                                                        4,901,765                          4,769,526  
                                                                 -------------------- ---------- --------------------                      -------------------- --------- --------------------
Total liabilities and equity                                                        $ 10,285,728                                           $ 9,663,630  
                                                                 ==================== ========== ====================                      ==================== ========= ====================
                                                                                                                                                                           
 
                                                                                                                                                                    Reconciliation of Net Income Available to Common Shareholders
                                                                                                                                                                                  to Funds From Operations - "FFO"
                                                                                                                                                                                (in thousands, except per share data)
                                                                                                                                                                                             (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      
                                                                                                                                               Three Months Ended                                                                                                                                       Year Ended
                                                                                                                                                  December 31,                                                                                                                                         December 31,
                                                                                              2014                                2013                                2014                                 2013    
                                                                                          -------------------- ------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
Net income available to common shareholders                                                                  $  38,207                                                                 $  47,035                                                                 $  365,707                                                                 $  177,987
Gain on disposition of operating property, net of tax and                                                      (71,152 )                                                                 (16,503 )                                                                 (189,572 )                                                                  (45,330 )
noncontrolling interests
Gain on disposition of joint venture operating properties and change                                           (56,262 )                                                                  (5,530 )                                                                 (193,791 )                                                                 (113,937 )
in control of interests
Depreciation and amortization - real estate related                                                             70,878                                                                    64,511                                                                    263,885                                                                    250,253
Depr. and amort. - real estate jv’s, net of noncontrolling interests                                            21,113                                                                    24,448                                                                     92,343                                                                    117,743
Impairments of operating properties, net of tax and noncontrolling                          153,937   (2)     20,707                              257,660                              165,825  
interests
                                                                                          -------------------- ------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
Funds from operations                                                                                          156,721                                                                   134,668                                                                    596,232                                                                    552,541
Transactional charges / (income), net                                                       (12,079 )                                                  132                              (19,341 )                                                (8,831 )
                                                                                          -------------------- ------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
Funds from operations as adjusted                                                                            $ 144,642                                              $ 134,800                                              $  576,891                                              $  543,710  
                                                                                          ==================== ======= ====================                         ==================== ======= ====================                         ==================== ======== ====================                         ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                             
Weighted average shares outstanding for FFO calculations:
Basic                                                                                       409,740                             408,139                              409,088                              407,631  
                                                                                          -------------------- ------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
   Units                                                                                                         1,531                                                                     1,522                                                                      1,536                                                                      1,523
   Dilutive effect of equity awards                                                           3,171                               2,414                                3,139                                2,541  
                                                                                          -------------------- ------- --------------------                         -------------------- ------- --------------------                         -------------------- -------- --------------------                         -------------------- -------- --------------------
Diluted                                                                                     414,442   (1)    412,075   (1)     413,763   (1)     411,695   (1) 
                                                                                          ==================== ======= ====================                         ==================== ======= ====================                         ==================== ======== ====================                         ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                             
FFO per common share - basic                                                                                 $    0.38                                              $    0.33                                              $     1.46                                              $     1.36  
                                                                                          ==================== ======= ====================                         ==================== ======= ====================                         ==================== ======== ====================                         ==================== ======== ====================
FFO per common share - diluted                                                                               $    0.38   (1)                                        $    0.33   (1)                                        $     1.45   (1)                                        $     1.35   (1)
                                                                                          ==================== ======= ====================                         ==================== ======= ====================                         ==================== ======== ====================                         ==================== ======== ====================
FFO as adjusted per common share - diluted                                                                   $    0.35   (1)                                        $    0.33   (1)                                        $     1.40   (1)                                        $     1.33   (1)
                                                                                          ==================== ======= ====================                         ==================== ======= ====================                         ==================== ======== ====================                         ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                                             
(1) Reflects the potential impact if certain units were converted to
common stock at the beginning of the period. Funds from operations
would be increased by $795 and $641 for the three months ended
December 31, 2014 and 2013, and 3,033 and $2,516 for the years ended
December 30, 2014 and 2013, respectively.
 
(2) Includes cumulative translation adjustment of currency of
$134.3 million due to the substantial liquidation of the Company’s
Mexican Portfolio.
                                                 
FFO is a widely accepted supplemental measure of REIT performance
with the standards established by the National Association of Real
Estate Investment Trusts (NAREIT). Given the company’s business as a
real estate owner and operator, Kimco believes that FFO and FFO as
adjusted is helpful to investors as a measure of its operating
performance. NAREIT defines FFO as net income/(loss) attributable to
common shareholders computed in accordance with generally accepted
accounting principles, excluding (i) gains or losses from sales of
operating real estate assets and (ii) extraordinary items, plus
(iii) depreciation and amortization of operating properties and (iv)
impairment of depreciable real estate and in substance real estate
equity investments. Included in these items are also the company’s
share of unconsolidated real estate joint ventures and partnerships.
FFO as adjusted excludes the effects of non-operating impairments,
transactional income and expenses.
 
 
                                                                                                                                                   Reconciliation of Income From Continuing Operations to
                                                                                                                                                 Combined Same Property Net Operating Income "Combined Same
                                                                                                                                                                      Property NOI" and
                                                                                                                                              U.S. Same Property Net Operating Income "U.S. Same Property NOI"
                                                                                                                                                                       (in thousands)
                                                                                                                                                                         (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                             
                                                                                                                                       Three Months Ended                                                                                                                                 Year Ended
                                                                                                                                          December 31,                                                                                                                                   December 31,
                                                                                        2014                             2013                             2014                              2013   
                                                                                    -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- ------- --------------------
Income from continuing operations                                                                      $  74,474                                                              $  56,705                                                              $  384,506                                                              $ 288,454
Adjustments:
    Management and other fee income                                                                       (8,764 )                                                               (9,565 )                                                               (35,009 )                                                              (36,317 )
    General and administrative expenses                                                                   27,675                                                                 31,543                                                                 122,201                                                                127,470
    Impairment of property carrying values                                                                11,420                                                                    609                                                                  39,808                                                                 32,247
    Depreciation and amortization                                                                         72,767                                                                 59,571                                                                 258,074                                                                224,713
    Other expense, net                                                                                    53,153                                                                 39,569                                                                 208,208                                                                189,894
    Provision for income taxes, net                                                                        7,727                                                                  6,333                                                                  22,438                                                                 32,654
    Gain on change in control of interests                                                               (23,462 )                                                                    -                                                                (107,235 )                                                              (21,711 )
    Equity in income of other real estate investments, net                                               (21,638 )                                                               (1,225 )                                                               (38,042 )                                                              (31,136 )
    Non same property net operating income                                                               (22,557 )                                                              (12,021 )                                                               (83,755 )                                                              (80,373 )
    Non-operational expense from joint ventures, net                                   61,988                           54,227                           148,918                          171,503  
                                                                                    -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- ------- --------------------
Combined Same Property NOI                                                                             $ 232,783                                                              $ 225,746                                                              $  920,112                                                              $ 897,398
    Impact from foreign currency                                                            -                           (1,907 )                                                  -                           (6,672 )
                                                                                    -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- ------- --------------------
Combined Same Property NOI, before foreign currency impact                                             $ 232,783                                                              $ 223,839                                                              $  920,112                                                              $ 890,726
    Canadian Same Property NOI, before foreign currency impact                        (23,316 )                                           (23,060 )                                            (94,940 )                                           (92,286 )
                                                                                    -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- -------- --------------------                      -------------------- ------- --------------------
U.S. Same Property NOI                                                                                 $ 209,467                                           $ 200,779                                           $  825,172                                           $ 798,440  
                                                                                    ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======== ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                        
Same Property Net Operating Income ("Same Property NOI") is a
supplemental non-GAAP financial measure of real estate companies’
operating performance. Same Property NOI is considered by management
to be an important performance measure of Kimco’s operations and
management believes that it is helpful to investors as a measure of
Kimco’s operating performance because it includes only the net
operating income of properties that have been owned for the entire
current and prior year reporting periods and excludes properties
under development and pending stabilization. As such, Same Property
NOI assists in eliminating disparities in net income due to the
development, acquisition or disposition of properties during the
particular period presented, and thus provides a more consistent
performance measure for the comparison of Kimco’s properties.
 
Same Property NOI is calculated using revenues from rental
properties (excluding straight-line rents, lease termination fees
and above/below market rents) less operating and maintenance
expense, real estate taxes and rent expense, plus Kimco’s
proportionate share of Same Property NOI from unconsolidated real
estate joint ventures, calculated on the same basis. Same Property
NOI includes all properties that are owned for the entire current
and prior year reporting periods and excludes properties under
development and properties pending stabilization. Properties are
deemed stabilized at the earlier of (i) reaching 90% leased or (ii)
one year following a projects inclusion in operating real estate.
 
 
                                                                                                                  Reconciliation of Projected Diluted Net Income Per Common Share
                                                                                                                    to Projected Diluted Funds From Operations Per Common Share
                                                                                                                                            (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                    
                                                                                                     Actual                                                                                                                    Projected Range
                                                                                   2014                                                                                                  Full Year 2015
                                                                                -------------------- ------ --------------------                                           -----------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                  Low                                                                  High
                                                                                                                                                                           ----------------------------------------------                        ----------------------------------------------
Projected diluted net income available to common
 shareholder per share                                                                             $   0.89                                                                                   $   0.90                                                              $   1.09
                                                                                                                                                                                                                                                  
Projected depreciation & amortization                                                                  0.64                                                                                       0.70                                                                  0.72
                                                                                                                                                                                                                                                  
Projected depreciation & amortization real estate
 joint ventures, net of noncontrolling interests                                                       0.22                                                                                       0.15                                                                  0.17
                                                                                                                                                                                                                                                  
Gain on disposition of operating properties,
 net of tax and noncontrolling interests                                                              (0.46 )                                                                                    (0.05 )                                                               (0.15 )
                                                                                                                                                                                                                                                  
Gain on disposition of joint venture operating properties,
 and change in control of interests                                                                   (0.47 )                                                                                    (0.25 )                                                               (0.30 )
                                                                                                                                                                                                                                                  
Impairments of operating properties, net of tax
 and noncontrolling interests                                                       0.63                                                    -                               -  
                                                                                -------------------- ------ --------------------                                           -------------------- ------ --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                  
Projected FFO per diluted common share                                                             $   1.45                                                                                   $   1.45                                                              $   1.53
                                                                                                                                                                                                                                                  
Transactional income, net                                                                             (0.05 )                                                                                    (0.05 )                                                               (0.09 )
                                                                                                                                                                                                            
                                                                                -------------------------------------------------                                          -------------------------------------------------                     -------------------------------------------------
Projected FFO, as adjusted per diluted common share                                                $   1.40                                                                $   1.40                                           $   1.44  
                                                                                ==================== ====== ====================                                           ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                              
Projections involve numerous assumptions such as rental income
(including assumptions on percentage rent), interest rates, tenant
defaults, occupancy rates, foreign currency exchange rates (such as
the US-Canadian rate), 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.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20150205006371r1&sid=cmtx6&distro=nx&lang=en

SOURCE: Kimco Realty Corporation

Kimco Realty Corporation 
David F. Bujnicki, 1-866-831-4297 
Vice President, Investor Relations and Corporate Communications


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2017 StockSelector.com. All rights reserved.