EX-99 3 a4338885_ex99.txt KIMCO REALTY 8-K Kimco Realty Reports Record Operating Results for 2002 NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--Feb. 13, 2003-- Achieves Full Year FFO Per Diluted Common Share of $3.03; Fourth Quarter FFO Per Diluted Common Share Increases to $0.78 Kimco Realty Corporation (NYSE: KIM), the nation's largest owner and operator of neighborhood and community shopping centers, today announced that fourth quarter net income for the period ended December 31, 2002, increased 1.7 percent to $63.0 million from $61.9 million for the same period last year. Fourth quarter net income per diluted common share (EPS) was $0.56, unchanged from a year ago. Funds from operations (FFO), a widely accepted supplemental measure of REIT performance, rose 4.2 percent to $82.7 million, from $79.4 million for the same period last year. On a diluted per common share basis, FFO increased 1.3 percent to $0.78 from $0.77 for the same period last year. FFO for the fourth quarter excludes gains on dispositions of operating properties, gains on early extinguishment of debt and adjustments to property carrying values, which total a net amount of approximately $0.5 million, or less than $0.01 per diluted common share. For the twelve months ended December 31, 2002, net income increased 3.9 percent to $245.7 million from $236.5 million for the same period last year. Net income per diluted common share remained unchanged at $2.16 from the same period in the previous year. Funds from operations rose 8.0 percent to $319.7 million for the twelve-month period from $295.9 million in the year earlier period. On a diluted per common share basis, FFO increased 1.3 percent to $3.03 from $2.99 reported a year ago. FFO for the year excludes gains on dispositions of operating properties, gains on early extinguishment of debt and adjustments to property carrying values, which total a net amount of approximately $2.0 million, or $0.02 per diluted common share. FFO for 2001 excludes gains on dispositions of operating properties of $3.0 million, or $0.03 per diluted common share. A complete reconciliation containing adjustments from GAAP net income to FFO is included in this release. During the quarter, Kimco increased the occupancy of its parent shopping center portfolio to 87.8 percent from 86.0 percent at September 30, 2002 and from a low of 85.3 percent at June 30, 2002. The increase in occupancy was the result of new leasing, property acquisitions and property sales. For the quarter, Kimco signed 118 new leases totaling 1.4 million square feet bringing the full year total leases signed in the parent portfolio to 380 or 3.9 million square feet. Average base rent on these new leases is approximately $7.18 per square foot. In addition to the leases signed during the year in the Company's parent portfolio, 59 leases were signed totaling 461,000 square feet in the Kimco Income REIT (KIR) and 184 leases totaling 1.5 million square feet in the Company's merchant building business, Kimco Developers, Inc. (KDI). For the Company's entire property portfolio, which is comprised of interests in approximately 90 million square feet, the Company signed 623 new leases totaling 5.9 million square feet. Kimco continues to have success leasing and disposing of vacancies that resulted from the Kmart bankruptcy. During the fourth quarter, the Company executed eight leases and sold seven former Kmart sites. During the year, the Company made significant progress repositioning 29 of the 31 leases rejected by Kmart. As previously announced, management does not anticipate the recent store closing announcement by Kmart will have a material impact on the Company's expected 2003 operating results. Investment Activities During the year ended 2002, Kimco acquired interests in 107 shopping centers with an aggregate cost of approximately $1.4 billion. Highlights of the Company's 2002 investment activities is as follows: -- Kimco's parent portfolio acquired interests in 50 shopping centers valued at approximately $726.3 million. This portfolio includes the Company's international investment activity, which consisted of acquiring 24 shopping centers and four development projects in its Canadian joint venture with RioCan REIT, and acquiring two grocery-anchored shopping centers located in Mexico. The total property value of the international investments acquired is approximately $471.5 million. When completed, the developments will add an additional $78 million in value to the portfolio. -- Kimco, together with Prometheus Southeast Retail Trust, completed the merger and privatization of Konover Property Trust, which has been renamed Kimsouth Realty, Inc. Kimsouth consisted of 36 shopping centers valued at approximately $280.9 million at closing. -- Sixteen properties valued at approximately $187.7 million were acquired in the Company's Kimco Retail Opportunity Portfolio (KROP). -- During 2002, KIR acquired five shopping centers for an aggregate purchase price of approximately $213.5 million and on February 4, 2003 acquired a shopping center in Seattle, Washington for approximately $88.4 million. -- KDI invested approximately $148.6 million in existing development projects and new development properties acquired. KDI had property sales aggregating approximately $128 million and generating net pre-tax gains for Kimco of approximately $15.9 million for the year. In addition to shopping center acquisitions, during 2002 Kimco continued to invest in the Company's complementary business lines as follows: -- Kimco originated approximately $141 million in financing receivables secured by retail real estate. The Company provides capital to retailers where the underwritten value of the real estate is significantly greater than principal amount of the loan. Commitments were made to retailers including Ames, Frank's Nursery, Gottschalks and Shopko. -- A Kimco-led venture has sold or reached agreements on 49 of the 54 Kmart sites for which it acquired the asset designation rights to in June 2002. The venture's initial investment was approximately $43 million. -- Kimco provided preferred equity capital of approximately $25 million in nine real estate investments, including five grocery anchored centers. This program provides capital to real estate owners and developers. Kimco, a publicly-traded real estate investment trust, has specialized in shopping center acquisitions, development and management for over 35 years. Kimco owns and operates the nation's largest portfolio of neighborhood and community shopping centers with interests in 606 properties comprising approximately 90.0 million square feet of leasable space located throughout 41 states, Canada and Mexico. For further information refer to the Company's web site at www.kimcorealty.com. Safe Harbor Statement: The statements in this release state the Company's and management's hopes, 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 that could cause actual results to differ materially from current expectations include general economic conditions, local real estate conditions, increases in interest rates, increases in operating costs and real estate taxes. 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, including but not limited to the Company's report on Form 10-K for the year ended December 31, 2001. Copies of each filing may be obtained from the Company or the SEC.
Kimco Realty Corporation Consolidated Statements of Income (In thousands, except per share data) Three Months Ended Year Ended December 31, December 31, 2002 2001 2002 2001 -------- -------- -------- -------- Real Estate Operations: ---------------------- Revenues from rental property $115,891 $110,270 $450,829 $450,408 -------- -------- -------- -------- Rental property expenses: Rent 3,104 3,258 12,392 12,649 Real estate taxes 16,151 14,391 62,991 55,717 Operating and maintenance 12,857 10,273 47,214 45,759 -------- -------- -------- -------- 32,112 27,922 122,597 114,125 -------- -------- -------- -------- 83,779 82,348 328,232 336,283 Equity in income of real estate joint ventures, net 12,623 6,866 35,569 20,217 Minority interests in income of partnerships, net (1,691) (193) (2,430) (1,682) Income from other real estate investments 2,348 13,194 16,038 38,113 Mortgage financing income 6,674 1,011 19,424 2,318 Gain on sale of development properties 6,705 6,611 15,879 13,418 Management and other fee income 3,668 1,953 14,193 7,797 Depreciation and amortization (19,138) (18,030) (74,223) (71,717) -------- -------- -------- -------- Income from real estate operations 94,968 93,760 352,682 344,747 -------- -------- -------- -------- Other Investments: ----------------- Interest, dividends and other investment income 3,080 3,018 18,557 17,286 Other income / (loss), net (3,725) (2,310) 2,532 (2,184) -------- -------- -------- -------- (645) 708 21,089 15,102 -------- -------- -------- -------- Interest expense (21,211) (21,639) (86,896) (88,592) General and administrative expenses (8,792) (7,205) (31,904) (28,680) Gain on early extinguishment of debt 19,033 -- 19,033 -- Adjustment of property carrying values (12,530) -- (12,530) -- Gain on disposition of operating properties -- -- -- 3,040 -------- -------- -------- -------- Income from continuing operations before income taxes 70,823 65,624 261,474 245,617 Provision for income taxes (2,812) (6,238) (12,904) (19,376) -------- -------- -------- -------- Income from continuing operations 68,011 59,386 248,570 226,241 Discontinued Operations: ----------------------- Income/(loss) from discontinued operating properties (including adjustment of property carrying values of ($20,500) in 2002 and gain on early extinguishment of debt of $3,222 in 2002) (16,315) 2,496 (15,680) 10,297 Gain on disposition of operating properties, net 11,266 -- 12,778 -- -------- -------- -------- -------- Income/(loss) from discontinued operations (5,049) 2,496 (2,902) 10,297 -------- -------- -------- -------- Net income 62,962 61,882 245,668 236,538 Preferred dividends (4,609) (4,871) (18,437) (24,553) -------- -------- -------- -------- Net income available to common shareholders $ 58,353 $ 57,011 $227,231 $211,985 ======== ======== ======== ======== Per common share: Income from continuing operations: - Basic $ 0.61 $ 0.55 $ 2.20 $ 2.09 ======== ======== ======== ======== - Diluted $ 0.60(1) $ 0.53(2) $ 2.19(1) $ 2.05(2) ======== ======== ======== ======== Net income: - Basic $ 0.56 $ 0.58 $ 2.18 $ 2.20 ======== ======== ======== ======== - Diluted $ 0.56(1) $ 0.56(2) $ 2.16(1) $ 2.16(2) ======== ======== ======== ======== Weighted average shares outstanding: - Basic 104,578 98,399 104,458 96,317 ======== ======== ======== ======== - Diluted 107,463(1)102,831(2)105,969(1)101,163(2) ======== ======== ======== ======== Income subject to income taxes $ 8,108 $ 15,829 $ 36,477 $ 48,439
Note: Reclassifications: Certain amounts in the prior period have been reclassified in order to conform with the current period's presentation.
Kimco Realty Corporation Funds From Operations (In thousands, except per share data) Three Months Ended Year Ended December 31, December 31, 2002 2001 2002 2001 -------- -------- -------- -------- Funds From Operations Net income $ 62,962 $ 61,882 $245,668 $236,538 Gain on disposition of operating properties (11,266) -- (12,778) (3,040) Depreciation and amortization 19,492 18,579 76,674 74,209 Depreciation and amortization - real estate joint ventures 5,329 3,768 17,779 12,718 Gain on early extinguishment of debt (22,255) -- (22,255) -- Adjustment of property carrying values 33,030 -- 33,030 -- Preferred stock dividends (4,609) (4,871) (18,437) (24,553) -------- -------- -------- -------- Funds from operations $ 82,683 $ 79,358 $319,681 $295,872 ======== ======== ======== ======== Per common share: - Basic $ 0.79 $ 0.81 $ 3.06 $ 3.07 ======== ======== ======== ======== - Diluted $ 0.78(1) $ 0.77(2)$ 3.03(1) $ 2.99(2) ======== ======== ======== ======== Weighted Average Share Three Months Ended Year Ended Information December 31, December 31, 2002 2001 2002 2001 -------- -------- -------- -------- Weighted average shares - - Basic 104,578 98,399 104,458 96,317 ======== ======== ======== ======== - Diluted 107,463(1)102,831(2)105,969(1)101,163(2) ======== ======== ======== ======== (1) Reflects the potential impact if certain units were converted to common stock at the beginning of the period. Net income available to common shareholders and FFO would be increased by $1,423 for the three months and year ended December 31, 2002 reflecting the distributions associated with the units. (2) Reflects the potential impact if the Class D Preferred Stock was converted to common stock at the beginning of the period. Net income available to common shareholders and FFO would be increased by $261 and $6,115 for the three months and year ended December 31, 2001, respectively, which represent the dividends paid on the Class D Convertible Preferred Stock for the applicable periods.
Kimco Realty Corporation Consolidated Balance Sheets (In thousands, except per share data) December 31, December 31, 2002 2001 ----------- ----------- Assets: Operating real estate, net of accumulated depreciation of $516,558 and $452,878, respectively $ 2,669,648 $ 2,543,956 Investments and advances in real estate joint ventures 412,672 272,920 Real estate under development 212,765 204,530 Other real estate investments 99,542 7,613 Mortgages and other financing receivables 94,024 53,611 Cash and cash equivalents 35,962 93,847 Marketable securities 66,992 82,997 Accounts and notes receivable 55,012 48,074 Deferred charges and prepaid expenses 50,149 38,031 Other assets 60,112 39,200 ----------- ----------- $ 3,756,878 $ 3,384,779 =========== =========== Liabilities: Notes payable $ 1,302,250 $ 1,035,250 Mortgages payable 230,760 286,929 Construction loans payable 43,972 5,900 Accounts payable and accrued expenses 94,784 68,323 Dividends payable 59,646 57,345 Other liabilities 24,198 32,573 ----------- ----------- 1,755,610 1,486,320 ----------- ----------- Minority interests in partnerships 93,940 8,375 ----------- ----------- Stockholders' Equity: Preferred stock, $1.00 par value, authorized 5,000,000 shares Class A Preferred Stock, $1.00 par value, authorized 345,000 shares issued and outstanding 300,000 shares 300 300 Aggregate liquidation preference $75,000 Class B Preferred Stock, $1.00 par value, authorized 230,000 shares issued and outstanding 200,000 shares 200 200 Aggregate liquidation preference $50,000 Class C Preferred Stock, $1.00 par value, authorized 460,000 shares issued and outstanding 400,000 shares 400 400 Aggregate liquidation preference $100,000 Class D Convertible Preferred Stock, $1.00 par value, authorized 700,000 shares issued and outstanding 0 and 92,390 shares, respectively - 92 Aggregate liquidation preference $0 and $23,098, respectively Common Stock, $.01 par value, authorized 200,000,000 shares issued and outstanding 104,601,828 and 103,352,570 shares, respectively 1,046 1,034 Paid-in capital 1,984,820 1,976,442 Cumulative distributions in excess of net income (85,367) (93,131) ----------- ----------- 1,901,399 1,885,337 Accumulated other comprehensive income 7,401 7,310 Notes receivable from officer stockholders (1,472) (2,563) ----------- ----------- 1,907,328 1,890,084 ----------- ----------- $ 3,756,878 $ 3,384,779 =========== ===========
Reclassifications: Certain amounts in the prior period have been reclassified in order to conform with the current period's presentation. CONTACT: Kimco Realty Corporation Scott Onufrey, 516/869-7190 sonufrey@kimcorealty.com