UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported)
July
31, 2012
Kimco
Realty Corporation
(Exact
Name of Registrant as Specified in its Charter)
Maryland |
1-10899 |
13-2744380 |
(State or Other Jurisdiction Of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
3333 New Hyde Park Road Suite 100 New Hyde Park, NY |
11042 |
|
(Address of Principal Executive Offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (516) 869-9000
No
Change
(Former
Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. | Results of Operations and Financial Condition |
The information contained in this Item 2.02 of the Current Report on Form 8-K of Kimco Realty Corporation (the “Company”) is being furnished pursuant to “Item 2.02 – Results of Operations and Financial Condition” and “Item 7.01 – Regulation FD Disclosure” of Form 8-K.
On July 31, 2012, Kimco Realty Corporation issued a press release announcing its financial results for the quarter ended
June 30, 2012. A copy of the press release is furnished as Exhibit 99.1 to this report.
A copy of the Company’s press release is an exhibit to this Current Report on Form 8-K and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. The information in this Current Report on Form 8-K, including the exhibit, shall not be deemed to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KIMCO REALTY CORPORATION |
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|
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|
|
By: |
/s/ Glenn G. Cohen |
||
Name: |
Glenn G. Cohen |
||||
Title: |
Executive Vice President, |
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Chief Financial Officer and |
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Treasurer |
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Dated: |
July 31, 2012 |
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EXHIBIT INDEX
Exhibit No. |
Description |
99.1 |
Press Release, dated July 31, 2012 issued by Kimco Realty Corporation
|
Exhibit 99.1
Kimco
Realty Corp. announces second quarter 2012 results;
Gross
combined portfolio occupancy increases to 93.5 percent. Company delivers
ninth
consecutive
quarter of positive same-property net operating income growth.
NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--July 31, 2012--Kimco Realty Corp. (NYSE: KIM) today reported results for the quarter ended June 30, 2012.
Highlights for the Second Quarter and Subsequent Activity
Financial Results
Net income available to common shareholders for the second quarter of 2012 was $48.3 million, or $0.12 per diluted share, compared to $23.9 million, or $0.06 per diluted share, for the second quarter of 2011. Year to date, net income available to common shareholders was $86.3 million, or $0.21 per diluted share, compared to $38.0 million, or $0.09 per diluted share, through June 30, 2011.
FFO, a widely accepted supplemental measure of REIT performance, was $138.0 million, or $0.34 per diluted share, for the second quarter of 2012 compared to $126.0 million, or $0.31 per diluted share, for the second quarter of 2011. For the six months ended June 30, 2012, FFO was $264.2 million, or $0.65 per diluted share, compared to $248.0 million, or $0.61 per diluted share, for the same period last year.
FFO as adjusted, which excludes the effects of non-operating impairments and transactional income and expenses, was $126.2 million, or $0.31 per diluted share, for the second quarter of 2012 compared to $121.4 million, or $0.30 per diluted share, for the second quarter of 2011. FFO as adjusted, for the six months ended June 30, 2012 was $252.1 million, or $0.62 per diluted share, compared to $242.6 million, or $0.59 per diluted share, for the same period in 2011.
The company calculates FFO for all periods presented in accordance with the NAREIT definition. A reconciliation of net income to FFO and FFO as adjusted are provided in the tables accompanying this press release.
Shopping Center Operating Results
Second quarter 2012 shopping center portfolio operating results:
Combined Shopping Center Portfolio (includes U.S., Canada and Latin America)
In the combined shopping center portfolio, same-property NOI for the second quarter of 2012 including the impact of foreign currency was 1.7 percent compared to the same period in 2011. For the six months ended June 30, 2012, combined same-property NOI including the impact of foreign currency was 2.1 percent.
Second quarter leasing activity for the combined shopping center portfolio, on a pro-rata basis, included 161 same-space new leases totaling 373,000 square feet, and 315 lease renewals/options for 1.3 million square feet representing increases in GLA of 51 percent and 39 percent, respectively, from the second quarter of 2011. Additionally, the company signed 173 new leases totaling 301,000 square feet for spaces vacant for more than one year.
U.S. Shopping Center Portfolio
In the U.S. shopping center portfolio, the second quarter pro-rata occupancy increased from the first quarter of 2012 approximately 20 basis points due to positive net absorption and 30 basis points from the net effect of acquisition and disposition activity. In addition, the pro-rata occupancy for small shop space, defined as space less than 10,000 square feet, increased 100 basis points sequentially and 170 basis points from the second quarter 2011 to 83.3 percent.
Kimco’s combined shopping center portfolio includes 922 operating properties comprising 788 assets in the United States and Puerto Rico, 66 in Canada, 54 in Mexico and 14 in South America. The operating portfolio includes seven former development properties in Latin America that are, on a gross basis, approximately 74 percent leased and are not currently included in the company’s occupancy. These properties will be included in occupancy the earlier of (i) reaching 90 percent leased or (ii) two years following the project’s inclusion in operating real estate. Additionally, the company has three development properties and one completed project pending stabilization.
Investment Activity
Acquisitions
During the second quarter of 2012, the company acquired five high-quality wholly owned unencumbered shopping centers in core markets, comprising 435,000 square feet, and two outparcels, for a total purchase price of approximately $97.3 million. These properties have an average pro-rata occupancy of 94.8 percent and an annual base rent of $16.97 per square foot.
In addition, Kimco acquired the remaining 70-percent interest in a 680,000 square foot grocery-anchored power center located in Towson, Md., from an existing institutional joint venture for a gross price of $127 million, including $57.6 million of mortgage debt which was subsequently paid off. This fully occupied property is anchored by Wal-Mart, Target, Bed Bath & Beyond, TJ Maxx, Marshalls, PetSmart, Babies R Us/Toys R Us, Sports Authority, DSW Shoe Warehouse, Michaels and Weis Markets.
In Canada, the company purchased a 90-percent interest in a grocery-anchored shopping center, comprising 140,000 square feet, in Edmonton, Alberta, for a gross purchase price of US$42.4 million, including US$26.4 million of mortgage debt. This property is anchored by Sobey’s, one of Canada’s leading grocers, and is located within a three-mile radius of approximately 121,000 people.
Transfers:
The company transferred a wholly owned former development property, comprising 291,000 square feet, into a new joint venture with RioCan for a gross sales price of $55.7 million. Kimco holds a 20-percent interest in this joint venture, in addition to serving as the operating partner.
Dispositions:
Kimco sold 10 consolidated non-strategic properties, totaling nearly 887,000 square feet, and one outparcel, for approximately $77.6 million. As of June 30, 2012, the company has 12 non-strategic properties in contract negotiations for approximately $120 million.
Since the company initiated its U.S. shopping center recycling program in September 2010 to improve the overall quality of the portfolio, Kimco has selectively acquired in its core markets 42 properties, comprising 5.4 million square feet, for a gross purchase price of $860.6 million. These properties have, on a pro-rata basis, an average occupancy of 93.8 percent and an annual base rent of $13.60 per square foot. During this same period, the company sold 63 non-strategic shopping centers, comprising 5.3 million square feet, for a gross amount of $364.9 million. These properties had a pro-rata average occupancy of 80.9 percent and an annual base rent of $9.35 per square foot.
Non-Retail Investments
During the second quarter, Kimco recognized FFO of $15.3 million from its non-retail investments, including $5.3 million of transactional income. The recurring non-retail income of $10.0 million was primarily attributable to $5.9 million from joint ventures, including InTown Suites and $2.0 million from non-retail preferred equity investments.
The company’s non-retail investment portfolio book value was $459 million and 3.9 percent of gross assets at June 30, 2012 compared to $612 million, or 5.4 percent of gross assets at June 30, 2011.
Capital Structure
In April, Kimco closed on a new $400 million unsecured term loan that matures on April 17, 2014, with three additional one-year options to extend the maturity until April 17, 2017, at the company’s discretion. Interest on this term loan accrues at an annualized rate of LIBOR plus 105 basis points. Proceeds from this loan are for general corporate purposes including the repayment of upcoming debt maturities.
At June 30, 2012, Kimco’s consolidated net debt to EBITDA as adjusted was 5.6x compared to 6.0x from the prior year. In addition, the company maintains access to approximately $2 billion of immediate liquidity.
As previously announced in July 2012, Kimco issued $225 million of 5.50 percent Class J Cumulative Redeemable Preferred Stock. Proceeds from this offering will be used to fund the redemption of the company’s $175 million 6.65 percent Class F Cumulative Redeemable Preferred Stock as well as for general corporate purposes, including the potential redemption at the company’s option of additional classes of the company’s preferred stock when they become redeemable. In connection with this redemption, the company expects to incur a transaction charge to FFO of approximately $0.02 per diluted share during the quarter ending September 30, 2012.
The Company is considering the redemption of its 7.75% Class G Cumulative Redeemable Preferred Stock (and the related depositary shares) when permitted under the terms of the Class G Preferred Stock and expects, on or about August 15, 2012, to declare dividends on its common and each class of preferred stock after determining whether to redeem the Class G Preferred Stock.
2012 Guidance
The company has revised its 2012 full-year guidance range for FFO as adjusted, which does not include any estimate for transactional activities or non-operating impairments, as follows:
Revised Guidance |
Previous Guidance |
|||
FFO as adjusted per diluted share: | $ 1.24 - $1.26 | $ 1.22 - $1.26 |
Estimated shopping center portfolio metrics remain as follows:
Conference Call and Supplemental Materials
Kimco will hold its quarterly conference call on Wednesday, August 1, 2012 at 9:00 a.m. EDT. The call will include a review of the company’s second quarter performance as well as a discussion of the company’s strategy and expectations for the future. To participate, dial 1-877-883-0383 (Passcode: 1101936).
A replay will be available through 9:00 a.m. EDT September 28, 2012 by dialing 1-877-344-7529 (Passcode: 10014958). Access to the live call and replay will be available through the company's website at investors.kimcorealty.com.
About Kimco
Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that owns and operates North America’s largest portfolio of neighborhood and community shopping centers. As of June 30, 2012, the company owned interests in 926 shopping centers comprising 136 million square feet of leasable space across 44 states, Puerto Rico, Canada, Mexico and South America. 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, (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, (vii) risks related to our international operations, (viii) the availability of suitable acquisition and disposition opportunities, (ix) valuation and risks related to our 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, (xv) unanticipated changes in the Company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity and (xvi) the board of directors' consideration of all facts and circumstances relating to any possible redemption of shares or declaration of dividends and the board's ultimate determination regarding any redemption or dividends. 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 Securities and Exchange Commission filings, including but not limited to the company's Annual Report on Form 10-K for the year ended December 31, 2011. Copies of each filing may be obtained from the company or the Securities and Exchange Commission.
The company refers you to the documents filed by the company from time to time with the Securities and Exchange Commission, specifically the section titled "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2011, as may be updated or supplemented in the company’s Form 10-Q filings, which discuss these and other factors that could adversely affect the company's results.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||
(in thousands, except share information) | |||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Revenues from rental properties | $ | 226,709 | $ | 211,637 | $ | 447,054 | $ | 425,607 | |||||||||||||||||
Management and other fee income | 8,710 | 8,437 | 18,135 | 18,100 | |||||||||||||||||||||
Total revenues | 235,419 | 220,074 | 465,189 | 443,707 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||
Rent | 2,932 | 3,807 | 6,201 | 7,101 | |||||||||||||||||||||
Real estate taxes | 29,632 | 28,141 | 59,175 | 57,562 | |||||||||||||||||||||
Operating and maintenance | 28,980 | 26,868 | 56,938 | 59,432 | |||||||||||||||||||||
General and administrative expenses | 30,973 | 29,612 | 65,404 | 59,358 | |||||||||||||||||||||
Impairment charges | 24,495 | 3,721 | 25,948 | 3,721 | |||||||||||||||||||||
Depreciation and amortization | 63,124 | 59,131 | 124,917 | 121,963 | |||||||||||||||||||||
Total operating expenses | 180,136 | 151,280 | 338,583 | 309,137 | |||||||||||||||||||||
Operating income | 55,283 | 68,794 | 126,606 | 134,570 | |||||||||||||||||||||
Other income/(expense) | |||||||||||||||||||||||||
Mortgage financing income | 1,985 | 1,940 | 3,992 | 3,769 | |||||||||||||||||||||
Interest, dividends and other investment income | 349 | 8,932 | 510 | 13,797 | |||||||||||||||||||||
Other income/(expense), net | 511 | 772 | (3,077 | ) | 479 | ||||||||||||||||||||
Interest expense | (57,387 | ) | (55,601 | ) | (114,881 | ) | (110,941 | ) | |||||||||||||||||
Income from other real estate investments | 416 | 447 | 1,143 | 612 | |||||||||||||||||||||
Income from continuing operations before income taxes, equity
in income |
|||||||||||||||||||||||||
1,157 | 25,284 | 14,293 | 42,286 | ||||||||||||||||||||||
Benfit/(provision) for income taxes, net | 4,656 | (5,640 | ) | 616 | (9,893 | ) | |||||||||||||||||||
Equity in income of joint ventures, net | 42,500 | 17,824 | 79,246 | 30,169 | |||||||||||||||||||||
Equity in income of other real estate investments, net | 14,074 | 4,831 | 25,103 | 10,335 | |||||||||||||||||||||
|
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Income from continuing operations | 62,387 | 42,299 | 119,258 | 72,897 | |||||||||||||||||||||
Discontinued operations | |||||||||||||||||||||||||
(Loss)/income from discontinued operating properties, net of tax | (4,285 | ) | 487 | (6,283 | ) | 4,940 | |||||||||||||||||||
Impairment/loss on operating properties sold, net of tax | (1,037 | ) | (5,496 | ) | (8,741 | ) | (8,689 | ) | |||||||||||||||||
Gain on disposition of operating properties | 11,263 | 4,025 | 23,242 | 4,188 | |||||||||||||||||||||
Income/(loss) from discontinued operations | 5,941 | (984 | ) | 8,218 | 439 | ||||||||||||||||||||
Gain on sale of operating properties, net of tax (1) | 4,059 | - | 4,059 | - | |||||||||||||||||||||
Net income | 72,387 | 41,315 | 131,535 | 73,336 | |||||||||||||||||||||
Net income attributable to noncontrolling interests (3) | (3,275 | ) | (2,606 | ) | (8,785 | ) | (5,665 | ) | |||||||||||||||||
Net income attributable to the Company | 69,112 | 38,709 | 122,750 | 67,671 | |||||||||||||||||||||
Preferred stock dividends | (20,841 | ) | (14,841 | ) | (36,415 | ) | (29,681 | ) | |||||||||||||||||
Net income available to the Company's common shareholders | $ | 48,271 | $ | 23,868 | $ | 86,335 | $ | 37,990 | |||||||||||||||||
Per common share: | |||||||||||||||||||||||||
Income from continuing operations: (3) | |||||||||||||||||||||||||
Basic | $ | 0.10 | $ | 0.06 | $ | 0.20 | $ | 0.09 | |||||||||||||||||
Diluted | $ | 0.10 | (2 | ) | $ | 0.06 | (2 | ) | $ | 0.20 | (2 | ) | $ | 0.09 | (2 | ) | |||||||||
Net income: (4) | |||||||||||||||||||||||||
Basic | $ | 0.12 | $ | 0.06 | $ | 0.21 | $ | 0.09 | |||||||||||||||||
Diluted | $ | 0.12 | (2 | ) | $ | 0.06 | (2 | ) | $ | 0.21 | (2 | ) | $ | 0.09 | (2 | ) | |||||||||
Weighted average shares: | |||||||||||||||||||||||||
Basic | 405,560 | 406,559 | 405,916 | 406,500 | |||||||||||||||||||||
Diluted | 406,476 | 407,562 | 406,827 | 407,472 |
(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 ($3,224) and ($2,488) for the quarters ended June 30, 2012 and 2011 and ($6,503) and ($5,438) for the six months ended June 30, 2012 and 2011, respectively. | |
(4) | Includes earnings attributable to unvested restricted shares of $313 and $166 for the quarters ended June 30, 2012 and 2011 and $627 and $331 for the six months ended June 30, 2012 and 2011, respectively. |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(unaudited) | ||||||||
(in thousands, except share information) | ||||||||
June 30, | December 31, | |||||||
2012 | 2011 | |||||||
Assets: | ||||||||
Operating real estate, net of accumulated depreciation | ||||||||
of $1,743,276 and $1,693,090, respectively | $ | 7,087,796 | $ | 6,898,445 | ||||
Investments and advances in real estate joint ventures | 1,436,038 | 1,404,214 | ||||||
Real estate under development | 129,877 | 179,722 | ||||||
Other real estate investments | 340,325 | 344,131 | ||||||
Mortgages and other financing receivables | 96,150 | 102,972 | ||||||
Cash and cash equivalents | 383,729 | 112,882 | ||||||
Marketable securities | 34,439 | 33,540 | ||||||
Accounts and notes receivable | 131,487 | 149,807 | ||||||
Other assets | 390,230 | 388,803 | ||||||
Total assets | $ | 10,030,071 | $ | 9,614,516 | ||||
Liabilities: | ||||||||
Notes payable | $ | 3,161,028 | $ | 2,983,886 | ||||
Mortgages payable | 990,586 | 1,085,371 | ||||||
Construction loans payable | 40,002 | 45,128 | ||||||
Dividends payable | 98,883 | 92,159 | ||||||
Other liabilities | 439,424 | 432,755 | ||||||
Total liabilities | 4,729,923 | 4,639,299 | ||||||
Redeemable noncontrolling interests | 95,059 | 95,074 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, $1.00 par value, authorized 5,109,200 and 5,146,000 | ||||||||
shares, respectively | ||||||||
Class F preferred stock, $1.00 par value, authorized 700,000 shares | ||||||||
issued and outstanding 700,000 shares | ||||||||
Aggregate liquidation preference $175,000 | 700 | 700 | ||||||
Class G preferred stock, $1.00 par value, authorized 184,000 shares | ||||||||
issued and outstanding 184,000 shares | ||||||||
Aggregate liquidation preference $460,000 | 184 | 184 | ||||||
Class H preferred stock, $1.00 par value, authorized 70,000 shares | ||||||||
issued and outstanding 70,000 shares |
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Aggregate liquidation preference $175,000 | 70 | 70 | ||||||
Class I preferred stock, $1.00 par value, authorized 18,400 | ||||||||
and zero shares, respectively | ||||||||
issued and outstanding 16,000 and zero shares, respectively |
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Aggregate liquidation preference $400,000 |
16 | - | ||||||
Common stock, $.01 par value, authorized 750,000,000 shares | ||||||||
issued and outstanding 406,891,427 and 406,937,830 shares, | ||||||||
respectively | 4,069 | 4,069 | ||||||
Paid-in capital | 5,880,740 | 5,492,022 | ||||||
Cumulative distributions in excess of net income | (771,282 | ) | (702,999 | ) | ||||
5,114,497 | 4,794,046 | |||||||
Accumulated other comprehensive income | (99,889 | ) | (107,660 | ) | ||||
Total stockholders' equity | 5,014,608 | 4,686,386 | ||||||
Noncontrolling interests | 190,481 | 193,757 | ||||||
Total equity | 5,205,089 | 4,880,143 | ||||||
Total liabilities and equity | $ | 10,030,071 | $ | 9,614,516 |
RECONCILIATION OF NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | |||||||||||||||||||||||
TO FUNDS FROM OPERATIONS - "FFO" | |||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
Net income available to common shareholders | $ | 48,271 | $ | 23,868 | $ | 86,335 | $ | 37,990 | |||||||||||||||
Gain on disposition of operating property, net of noncontrolling interests | (15,332 | ) | (4,025 | ) | (24,722 | ) | (4,188 | ) | |||||||||||||||
Gain on disposition of joint venture operating properties | (11,948 | ) | (680 | ) | (22,372 | ) | (680 | ) | |||||||||||||||
Depreciation and amortization - real estate related | 64,873 | 61,173 | 128,537 | 126,777 | |||||||||||||||||||
Depr. and amort. - real estate jv's, net of noncontrolling interests | 33,643 | 34,203 | 67,685 | 68,857 | |||||||||||||||||||
Remeasurement of derivative instrument | - | 3,414 | - | 4,287 | |||||||||||||||||||
Impairments of operating properties, net of tax and noncontrolling interests | 18,482 | 8,060 | 28,775 | 14,999 | |||||||||||||||||||
Funds from operations | 137,989 | 126,013 | 264,238 | 248,042 | |||||||||||||||||||
Transactional income, net | (11,746 | ) | (4,596 | ) | (12,107 | ) | (5,448 | ) | |||||||||||||||
Funds from operations as adjusted | $ | 126,243 | $ | 121,417 | $ | 252,131 | $ | 242,594 | |||||||||||||||
Weighted average shares outstanding for FFO calculations: | |||||||||||||||||||||||
Basic | 405,560 | 406,559 | 405,916 | 406,500 | |||||||||||||||||||
Units | 1,524 | 1,609 | 1,532 | 2,127 | |||||||||||||||||||
Dilutive effect of equity awards | 2,260 | 921 | 2,255 | 374 | |||||||||||||||||||
Diluted | 409,344 | (1 | ) | 409,089 | (1 | ) | 409,703 | (1 | ) | 409,001 | (1 | ) | |||||||||||
FFO per common share - basic | $ | 0.34 | $ | 0.31 | $ | 0.65 | $ | 0.61 | |||||||||||||||
FFO per common share - diluted | $ | 0.34 | (1 | ) | $ | 0.31 | (1 | ) | $ | 0.65 | $ | 0.61 | |||||||||||
FFO as adjusted per common share - diluted | $ | 0.31 | (1 | ) | $ | 0.30 | (1 | ) | $ | 0.62 | (1 | ) | $ | 0.59 | (1 | ) |
(1) 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 funds from operations and therefore have not been included. Funds from operations would be increased by $520 and $251 for the three months ended June 30, 2012 and 2011, respectively and $1,039 and $502 for the six months ended June 30, 2012 and 2011, respectively. | |
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 Projected Diluted Net Income Per Common Share | ||||||||
to Projected Diluted Funds From Operations Per Common Share | ||||||||
(unaudited) | ||||||||
Projected Range | ||||||||
Full Year 2012 | ||||||||
Low | High | |||||||
Projected diluted net income available to common | ||||||||
shareholder per share | $ | 0.35 | $ | 0.37 | ||||
Projected depreciation & amortization | 0.61 | 0.63 | ||||||
Projected depreciation & amortization real estate | ||||||||
joint ventures, net of noncontrolling interests | 0.33 | 0.35 | ||||||
Gain on disposition of operating properties | (0.06 | ) | (0.08 | ) | ||||
Gain on disposition of joint venture operating properties, | ||||||||
net of noncontrolling interests | (0.05 | ) | (0.07 | ) | ||||
impairments of operating properties, net of tax | ||||||||
and noncontrolling interests | 0.07 | 0.07 | ||||||
Projected FFO per diluted common share | $ | 1.25 | $ | 1.27 | ||||
Transactional income, net | (0.03 | ) | (0.03 | ) | ||||
Preferred stock redemption charge | 0.02 | 0.02 | ||||||
Non-operating impairments recognized, net of tax | - | - | ||||||
Projected FFO, as adjusted per diluted common share | $ | 1.24 | $ | 1.26 |
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. |
CONTACT:
Kimco Realty Corporation
David F. Bujnicki
Vice
President, Investor Relations and Corporate Communications
1-866-831-4297