Thursday, Kimco Realty Corp. (KIM,KIM-PG), a real estate investment trust, reported a swing to loss in the second quarter, hurt by non-cash impairment charges. Excluding charges, net income for the quarter plunged from last year. Funds from operations also declined sharply from the previous year.
The New Hyde Park, New York-based company posted a net loss available common shareholders of $146.5 million or $0.40 per share, compared to net income available to common shareholders of $82.5 million or $0.32 per share a year ago.
Before non-cash impairment charges, net income available to common shareholders was $30.0 million or $0.08 per share, compared to $83.1 million or $0.32 per share last year.
Funds from operations, or FFO, before impairment charges was $113.8 million or $0.31 per share, compared to $171.6 million or $0.66 per share in the prior year.
On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.32 per share for the quarter. Analysts' estimates typically exclude special items.
During the quarter, the company recognized non-cash impairment charges totaling $176.5 million or $0.48 per share. Of this, about $126 million or $0.34 per share was related to non-core investment portfolio and its preferred equity investments, $42 million or $0.11 per share to assets and joint venture with the Prudential Real Estate Investors sponsored funds and $8.5 million or $0.03 per share to one consolidated property and two unconsolidated joint venture development projects.
Net income before impairment charges in the quarter was impacted by a reduction of about $40 million in transaction-based income, $12 million in recurring income from non-core investments and an increase in depreciation of about $5 million, partially offset by an increase in net operating income of $1.5 million and an aggregate reduction in interest expense and non-controlling interests of about $6 million.
Revenues from rental properties grew to $189.3 million from $183.0 million in the corresponding period a year ago.
Occupancy in Kimco's total shopping center portfolio was 92.1% at the end of the second quarter, a 350 basis point decline from the second quarter of previous fiscal. During the quarter, the company executed a total of 490 leases totaling 1.7 million square feet.
The company realized fee income of $10.3 million from its investment management business and an aggregate of $6.5 million of recurring income from its preferred equity investments in the second quarter. In addition, the company recognized about $15.9 million from investments in its non-core portfolio.
For the first six months of the year, the company posted a net loss available common shareholders of $119.9 million or $0.37 per share, compared to net income available to common shareholders of $169.2 million or $0.66 per share in the prior year.
For the first half, net income available to common shareholders before non-cash impairments was $0.18 per share compared to $0.67 per share in the comparable period a year earlier.
FFO for the six-month period, excluding non-cash impairments, was $0.72 per share, compared to $1.31 per share in the previous year.
Revenues from rental properties for the six months were $383.2 million, compared to $371.8 million a year before.
The company currently estimates 2009 FFO before non-cash impairments of $1.33 - $1.38 per share. Previously, the company expected FFO for fiscal 2009 to range from $1.33 to $1.45 per share, foreseeing year-end occupancy of about 90%.
Analysts currently expect the company to report earnings of $1.36 per share for the full year.
The company also declared a regular quarterly cash dividend of $0.06 per common share, payable on October 15, 2009 to shareholders of record on October 5, 2009.
Among others in the industry, Simon Property Group Inc. (SPG) is slated to report its second quarter results on August 4. Analysts currently expect the company to report earnings of $1.37 per share on revenues of $878.59 million.
Another peer, Weingarten Realty Investors (WRI) is scheduled to report its second quarter results today after market close. Analysts expect the company to report earnings of $0.50 per share on revenues of $143.78 million.
KIM is currently trading at $9.62, up $0.43 or 4.68% and KIM-PG at $21.87, up $0.67 3.16, on the NYSE. In the past 52-week period, KIM has trended in the range of $6.33 - $47.80, with an average 3-month volume of 9.5 million shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.