Real estate investment trust Kimco Realty Corp. (KIM) reported Wednesday that funds from operations, for the fourth quarter soared from last year, reflecting significantly lower impairment charges as well as revenue growth, and topped analysts' expectations. Excluding charges, FFO per share for the quarter dropped 33%. The company also provided FFO forecast for the full-year 2010, in line with consensus estimate.
Fourth Quarter Results
The New Hyde Park, New York-based company posted funds from operations or FFO, of $119.46 million or $0.31 per share, sharply higher than $10.51 million or $0.04 per share in the prior-year quarter. On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.29 per share. Analysts' estimates typically exclude special items.
The results for the latest quarter include recognized non-cash impairment charges, net of related tax benefits, of $0.7 million, inclusive of a $33.5 million tax benefit, while the year-ago quarter included $111.8 million of non-cash impairment charges.
Excluding non-cash impairments, FFO for the quarter dropped to $120.19 million or $0.31 per share from $122.34 million or $0.46 per share in the year-ago quarter.
Net income for the quarter totaled $40.36 million or $0.11 per share, compared to a net loss of $63.35 million or $0.24 per share in the comparable quarter a year ago. Income from continuing operations were $50.91 million or $0.11 per share, compared to a net loss of $63.27 million or $0.28 per share in the comparable quarter a year ago.
Revenues from rental properties for the quarter increased to $211.82 million from $196.99 million in the same quarter last year, and topped Wall Street analysts' consensus estimate of $198.94 million.
Peer Performance
Among Kimco's peers, Indianapolis, Indiana-based Simon Property Group, Inc. (SPG) is scheduled to report financial results for the fourth quarter on Friday, February 5. Analysts expect the company to report earnings of $1.52 per share for the fourth quarter, on revenues of $963.17 million.
Another peer, Houston, Texas-based Weingarten Realty Investors (WRI) is slated to announce its fourth-quarter results on February 24. Wall Street analysts are of the view that the company will report earnings of $0.41 per share for the quarter, with revenue estimates of $139.15 million.
Other Metrics
Net operating income or NOI, for the fourth quarter grew to $147.23 million from $139.12 million in the prior-year quarter, and total rental property expenses were $64.60 million, up from $57.87 million in the year-ago quarter. Same-property NOI on an aggregate basis declined 1.1% from a year ago.
Kimco's shopping center portfolio of 940 operating properties, includes 827 assets in the U.S. and Puerto Rico, 51 in Canada, 43 in Mexico and nine in South America. It has another 11 development properties, including two assets in the U.S., seven in Mexico and two in South America. The company posted quarter end occupancy of 92.8% for the entire shopping center portfolio, with 92.4% occupancy in the U.S. portfolio.
At the end of the fourth quarter, the company owned interests in 1,478 retail properties comprising 152 million square feet of leasable space across 45 U.S. states, Puerto Rico, Canada, Mexico and South America.
The company's board of directors also declared a regular quarterly cash dividend of $0.16 per common share, payable on April 15, to shareholders of record on April 5, 2010.
In November, the company announced the appointment of President and Chief Investment Officer David Henry as chief executive officer of the company, effective December 31, 2009, succeeding Milton Cooper, who will continue to serve as executive chairman. Henry joined Kimco in 2001 as vice chairman and chief investment officer after 23 years with GE Real Estate. In November 2008, he was named president of Kimco. Henry currently also serves on the board of directors of Health Care Properties, Inc. (HCP).
Full-Year Highlights
For fiscal 2009, the company posted FFO of $287.09 million or $0.82 per share, sharply lower than $522.87 million or $2.02 per share in the prior year. Analysts expected the company to report earnings of $0.81 per share for fiscal 2009.
Excluding non-cash impairments, FFO for the full year dropped to $466.33 million or $1.33 per share from $644.34 million or $2.49 per share in the a year ago.
Net loss for the year totaled $51.23 million or $0.15 per share, compared to net income of $202.61 million or $0.78 per share in the previous year. Income from continuing operations were $2.09 million, sharply lower than $248.63 million last year, while on a per share basis, the company reported a loss of $0.15, compared to income of $0.69 per share a year ago.
Revenues from rental properties for the year grew to $786.89 million from $758.70 million reported for the full year 2008. The Street was looking for full-year revenues of $774.97 million.
Outlook
Looking ahead to fiscal 2010, the company expects funds from operations in a range of $1.07 to $1.15 per share. The Street is currently looking for full-year 2010 FFO of $1.15 per share.
The forecast is based on occupancy for the U.S. shopping center portfolio being about flat to up 50 basis points, and same-property NOI for U.S. shopping center portfolio of between minus 2% and flat.
Stock Quote
KIM closed Wednesday's regular trading session at $12.79, down $0.14 or 1.08% on a volume of 0.25 million shares, sharply lower than the three-month average volume of 7.56 million shares. In the past 52-week period, the stock has been trading in a range of $6.33 to $15.87.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.