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
30, 2013
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 30, 2013, Kimco Realty Corporation issued a press release announcing its financial results for the quarter ended June 30, 2013. 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 |
|||||
|
|||||
|
|
By: |
/s/ Glenn G. Cohen |
||
Name: |
Glenn G. Cohen |
||||
Title: |
Chief Financial Officer |
||||
|
|||||
Dated: |
July 30, 2013 |
|
EXHIBIT INDEX
Exhibit No. |
Description |
99.1 |
Press Release, dated July 30, 2013 issued by Kimco Realty Corporation |
Exhibit 99.1
Kimco Realty Reports a 12.9 Percent Increase in FFO As Adjusted Per Diluted Share for the Second Quarter of 2013; Portfolio Operating Metrics Strong
NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--July 30, 2013--Kimco Realty Corp. (NYSE: KIM) today reported results for the second quarter ended June 30, 2013.
Highlights for the Second Quarter 2013 and Subsequent Activity
Financial Results
Net income available to common shareholders for the second quarter of 2013 was $36.6 million, or $0.09 per diluted share, compared to $48.3 million, or $0.12 per diluted share, for the second quarter of 2012. The decrease in net income available to common shareholders during the second quarter of 2013 was primarily due to a $31.3 million increase in impairments that were partially offset by a $12.0 million increase in gains on sales of operating properties; Both operating property impairments and gains on sales are excluded from the calculation of FFO.
Year to date, net income available to common shareholders was $89.8 million, or $0.22 per diluted share, compared to $86.3 million, or $0.21 per diluted share, through June 30, 2012. The increase in net income available to common shareholders for the six months ended June 30, 2013 has been impacted by a $25.3 million increase in impairments, which were partially offset by an $8.6 million increase in gains on sales of operating properties.
FFO, a widely accepted supplemental measure of REIT performance, was $141.6 million, or $0.35 per diluted share, for the second quarter of 2013, compared to $138.0 million, or $0.34 per diluted share, for the second quarter of 2012. For the six months ended June 30, 2013, FFO was $276.5 million, or $0.68 per diluted share, compared to $264.2 million, or $0.65 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 $142.1 million, or $0.35 per diluted share, for the second quarter of 2013, compared to $126.2 million, or $0.31 per diluted share, for the second quarter of 2012. FFO as adjusted for the six months ended June 30, 2013, was $274.3 million, or $0.67 per diluted share, compared to $252.1 million, or $0.62 per diluted share, for the same period in 2012.
A reconciliation of net income to FFO and FFO as adjusted is provided in the tables accompanying this press release.
Shopping Center Operating Results
Second quarter 2013 shopping center portfolio operating results:
Combined Shopping Center Portfolio (includes U.S., Canada and Latin America)
For the six months ended June 30, 2013, combined same-property NOI was 4.0 percent. Kimco reports same-property NOI on a cash-basis, excluding lease termination fees, and including charges for bad debts.
U.S. Shopping Center Portfolio
In addition, the U.S. shopping center portfolio’s pro-rata occupancy for small shop space (defined as space of less than 10,000 square feet) was 84.3 percent, an increase of 100 basis points from the second quarter of 2012.
Investment Activity
Acquisitions:
As previously announced, Kimco acquired from existing joint venture partners, two retail properties totaling 607,000 square feet for a gross purchase price of approximately $146.6 million.
Also in the second quarter of 2013, the company increased its ownership interest in the Kimco-UBS joint venture from 18 percent to 33 percent. Simultaneously, affiliates of Blackstone Real Estate Partners VII acquired the remaining 67 percent ownership interest from affiliates of UBS Wealth Management North American Property Fund. Both of these transactions were based on a gross purchase price of $1.1 billion, including $631 million of debt.
Year to date, Kimco has acquired the full or majority interest in seven U.S. shopping centers and two parcels totaling 1.5 million square feet for $367.5 million. These properties had a gross occupancy of approximately 95.1 percent and were supported by an average household income of $105,000 within a three-mile radius.
Additionally during the quarter, Kimco increased its ownership interest in the Kimco Income REIT (KIR) joint venture from 45.0 percent to 48.6 percent as well as the Kimco Income Fund (KIF) joint venture from 29.8 percent to 39.5 percent through the acquisition of an institutional partner’s interest for $48.4 million and $18.4 million, respectively.
Dispositions:
As previously announced, Kimco sold 11 U.S. shopping centers, totaling 735,000 square feet, for a gross sales price of $71.6 million during the second quarter. Currently, the company has 16 U.S. retail properties in contract negotiations for approximately $128.5 million. Year to date, Kimco has disposed of 13 U.S. properties, comprising 1.0 million square feet, for $82.0 million. The properties sold had a combined gross occupancy of 84.6 percent with an average household income of $80,000 within a three-mile radius. The company’s share of the proceeds from these sales was $47.2 million.
Since the start of the company’s U.S. asset recycling program in September 2010, Kimco has disposed of 121 properties, comprising 11.9 million square feet, for $907.2 million, including $220.3 million of mortgage debt. The company’s share of the proceeds from these sales was $551.3 million.
Also during the second quarter, the company:
Capital Structure
In May, the company issued $350 million of 10-year senior unsecured notes due in 2023 at a coupon of 3.125 percent per annum. The net proceeds were used to (i) partially reduce borrowings under Kimco’s revolving credit facility maturing in October 2015, (ii) replace $100 million of 6.125 percent senior unsecured notes that were repaid in January 2013, (iii) pay off $75 million of 4.70 percent senior notes that matured in June 2013, and (iv) pre-fund $100 million of 5.19 percent senior unsecured notes due in October 2013 and $67 million of mortgage debt maturing during 2013 at a weighted average interest rate of 5.93 percent.
Subsequent to the end of the second quarter of 2013, a wholly-owned entity of Kimco issued $200 million of 7-year unsecured Canadian-denominated notes that are due in 2020 with a coupon of 3.855 percent. The net proceeds will be used to repay a $200 million 5.180 percent Canadian-denominated unsecured note that matures in August 2013.
At June 30, 2013, Kimco’s consolidated net debt to EBITDA as adjusted was 5.8x. In addition, the company maintains access to approximately $1.6 billion of immediate liquidity under the company’s $1.75 billion unsecured revolving credit facility.
Dividend Declarations
Kimco’s board of directors declared a cash dividend of $0.21 per common share for the fourth quarter of 2013, which represents a 10.5 percent increase from the quarterly cash dividend in the fourth quarter of 2012. The dividend on common shares is payable on October 15, 2013, to shareholders of record on October 3, 2013, representing an ex-dividend date of October 1, 2013.
The board of directors also declared quarterly dividends for the company’s preferred shares as follows:
2013 Revised Guidance
The company’s 2013 full-year guidance range for FFO as adjusted, which does not include any estimate for transactional activities or non-operating impairments, has been increased. In addition, Kimco has increased its 2013 guidance range for combined same-property NOI. Kimco’s 2013 revised guidance is as follows:
Revised Guidance |
Previous Guidance |
|||||||
FFO as adjusted per diluted share: | $1.31 - $1.33 | $1.29 - $1.33 | ||||||
Combined portfolio occupancy: | +50 to +75 basis points | +50 to +75 basis points | ||||||
Combined same-property NOI: | +3.00 to +4.00 percent | +2.75 to +3.75 percent | ||||||
Conference Call and Supplemental Materials
Kimco will hold its quarterly conference call on Wednesday, July 31, 2013, at 10:00 a.m. EDT. The call will include a review of the company’s second quarter 2013 results as well as a discussion of the company’s strategy and expectations for the future. To participate, dial 1-888-317-6003 (Passcode: 5894250).
A replay will be available through 9:00 a.m. EDT on September 3, 2013 by dialing 1-877-344-7529 (Passcode: 10029767). Access to the live call and replay will be available on 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, 2013, the company owned interests in 874 shopping centers comprising 128 million square feet of leasable space across 43 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 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, (vii) risks related to our 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 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 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 Securities and Exchange Commission (SEC) filings, including but not limited to the company's Annual Report on Form 10-K for the year ended December 31, 2012. 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, 2012, 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 | Six Months Ended | ||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Revenues from rental properties | $ | 237,079 | $ | 217,809 | $ | 467,371 | $ | 429,892 | |||||||||||||||||||||
Management and other fee income | 9,049 | 8,710 | 17,442 | 18,136 | |||||||||||||||||||||||||
Total revenues | 246,128 | 226,519 | 484,813 | 448,028 | |||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Rent | 3,380 | 2,924 | 6,705 | 6,187 | |||||||||||||||||||||||||
Real estate taxes | 28,858 | 27,985 | 58,306 | 55,592 | |||||||||||||||||||||||||
Operating and maintenance | 31,445 | 26,756 | 59,567 | 52,413 | |||||||||||||||||||||||||
General and administrative expenses | 31,420 | 30,908 | 65,535 | 65,314 | |||||||||||||||||||||||||
Provision for doubtful accounts | 3,266 | 2,551 | 5,199 | 5,624 | |||||||||||||||||||||||||
Impairment charges | 35,366 | 92 | 35,764 | 325 | |||||||||||||||||||||||||
Depreciation and amortization | 63,409 | 59,731 | 125,136 | 118,299 | |||||||||||||||||||||||||
Total operating expenses | 197,144 | 150,947 | 356,212 | 303,754 | |||||||||||||||||||||||||
Operating income | 48,984 | 75,572 | 128,601 | 144,274 | |||||||||||||||||||||||||
Other income/(expense) | |||||||||||||||||||||||||||||
Mortgage financing income | 1,430 | 1,985 | 2,416 | 3,991 | |||||||||||||||||||||||||
Interest, dividends and other investment income | 6,500 | 350 | 9,163 | 512 | |||||||||||||||||||||||||
Other (expense)/income, net | (2,526 | ) | 538 | (6,002 | ) | (3,058 | ) | ||||||||||||||||||||||
Interest expense | (55,423 | ) | (56,776 | ) | (108,970 | ) | (113,757 | ) | |||||||||||||||||||||
Income from other real estate investments | 555 | 416 | 958 | 1,143 | |||||||||||||||||||||||||
Income/(loss) from continuing operations before income taxes, equity in | |||||||||||||||||||||||||||||
income of joint ventures, gain/(loss) on change in control of interests | |||||||||||||||||||||||||||||
and equity in income from other real estate investments | (480 | ) | 22,085 | 26,166 | 33,105 | ||||||||||||||||||||||||
Benefit/(provision) for income taxes, net | 11,830 | (3,302 | ) | (3,937 | ) | (8,089 | ) | ||||||||||||||||||||||
Equity in income of joint ventures, net | 59,504 | 30,352 | 83,616 | 65,090 | |||||||||||||||||||||||||
Gain/(loss) on change in control of interests, net | (1,459 | ) | 12,147 | 21,711 | 14,156 | ||||||||||||||||||||||||
Equity in income of other real estate investments, net | 8,200 | 14,074 | 19,363 | 25,101 | |||||||||||||||||||||||||
Income from continuing operations | 77,595 | 75,356 | 146,919 | 129,363 | |||||||||||||||||||||||||
Discontinued operations | |||||||||||||||||||||||||||||
Income/(loss) from discontinued operating properties, net of tax | 1,652 | (180 | ) | 2,631 | 1,906 | ||||||||||||||||||||||||
Impairment/loss on operating properties sold, net of tax | (27,844 | ) | (18,111 | ) | (30,675 | ) | (27,035 | ) | |||||||||||||||||||||
Gain on disposition of operating properties | 1,869 | 11,263 | 4,365 | 23,242 | |||||||||||||||||||||||||
Loss from discontinued operations | (24,323 | ) | (7,028 | ) | (23,679 | ) | (1,887 | ) | |||||||||||||||||||||
Gain on sale of operating properties, net of tax (1) | - | 4,059 | 540 | 4,059 | |||||||||||||||||||||||||
Net income | 53,272 | 72,387 | 123,780 | 131,535 | |||||||||||||||||||||||||
Net income attributable to noncontrolling interests (3) | (2,133 | ) | (3,275 | ) | (4,871 | ) | (8,785 | ) | |||||||||||||||||||||
Net income attributable to the Company | 51,139 | 69,112 | 118,909 | 122,750 | |||||||||||||||||||||||||
Preferred stock dividends | (14,573 | ) | (20,841 | ) | (29,147 | ) | (36,415 | ) | |||||||||||||||||||||
Net income available to the Company's common shareholders | $ | 36,566 | $ | 48,271 | $ | 89,762 | $ | 86,335 | |||||||||||||||||||||
Per common share: | |||||||||||||||||||||||||||||
Income from continuing operations: (3) | |||||||||||||||||||||||||||||
Basic | $ | 0.15 | $ | 0.14 | $ | 0.28 | $ | 0.22 | |||||||||||||||||||||
Diluted | $ | 0.15 | (2 | ) | $ | 0.14 | (2 | ) | $ | 0.28 | (2 | ) | $ | 0.22 | (2 | ) | |||||||||||||
Net income: (4) | |||||||||||||||||||||||||||||
Basic | $ | 0.09 | $ | 0.12 | $ | 0.22 | $ | 0.21 | |||||||||||||||||||||
Diluted | $ | 0.09 | (2 | ) | $ | 0.12 | (2 | ) | $ | 0.22 | (2 | ) | $ | 0.21 | (2 | ) | |||||||||||||
Weighted average shares: | |||||||||||||||||||||||||||||
Basic | 407,640 | 405,560 | 407,154 | 405,916 | |||||||||||||||||||||||||
Diluted | 408,831 | 406,476 | 408,163 | 406,827 |
(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 ($2,133) and ($3,180) for the quarters ended June 30, 2013 and 2012, and ($4,854) and ($6,392) for the six months ended June 30, 2013 and 2012, respectively. | |
(4) | Includes earnings attributable to unvested restricted shares of $352 and $313 for the quarters ended June 30, 2013 and 2012, and $705 and $627 for the six months ended June 30, 2013 and 2012, respectively. | |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(in thousands, except share information) | |||||||||
(unaudited) | |||||||||
June 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Assets: | |||||||||
Operating real estate, net of accumulated depreciation | |||||||||
of $1,835,280 and $1,745,462, respectively | $ | 7,284,151 | $ | 7,104,562 | |||||
Investments and advances in real estate joint ventures | 1,392,418 | 1,428,155 | |||||||
Real estate under development | 96,950 | 97,263 | |||||||
Other real estate investments | 316,043 | 317,557 | |||||||
Mortgages and other financing receivables | 74,088 | 70,704 | |||||||
Cash and cash equivalents | 156,450 | 141,875 | |||||||
Marketable securities | 71,009 | 36,541 | |||||||
Accounts and notes receivable | 160,398 | 171,540 | |||||||
Other assets | 436,964 | 383,037 | |||||||
Total assets | $ | 9,988,471 | $ | 9,751,234 | |||||
Liabilities: | |||||||||
Notes payable | $ | 3,284,014 | $ | 3,192,127 | |||||
Mortgages payable | 1,180,760 | 1,003,190 | |||||||
Dividends payable | 98,326 | 96,518 | |||||||
Other liabilities | 473,604 | 445,843 | |||||||
Total liabilities | 5,036,704 | 4,737,678 | |||||||
Redeemable noncontrolling interests | 85,486 | 81,076 | |||||||
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 409,616,877 and 407,782,102 shares, respectively | 4,096 | 4,078 | |||||||
Paid-in capital | 5,685,943 | 5,651,170 | |||||||
Cumulative distributions in excess of net income | (906,070 | ) | (824,008 | ) | |||||
Accumulated other comprehensive income | (61,798 | ) | (66,182 | ) | |||||
Total stockholders' equity | 4,722,273 | 4,765,160 | |||||||
Noncontrolling interests | 144,008 | 167,320 | |||||||
Total equity | 4,866,281 | 4,932,480 | |||||||
Total liabilities and equity | $ | 9,988,471 | $ | 9,751,234 | |||||
RECONCILIATION OF NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | ||||||||||||||||||||||||||||
TO FUNDS FROM OPERATIONS - "FFO" | ||||||||||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Net income available to common shareholders | $ | 36,566 | $ | 48,271 | $ | 89,762 | $ | 86,335 | ||||||||||||||||||||
Gain on disposition of operating property, net of noncontrolling interests | (1,869 | ) | (15,332 | ) | (4,904 | ) | (24,722 | ) | ||||||||||||||||||||
Gain on disposition of joint venture operating properties | (37,454 | ) | (11,948 | ) | (50,756 | ) | (22,372 | ) | ||||||||||||||||||||
Depreciation and amortization - real estate related | 62,514 | 64,873 | 123,297 | 128,537 | ||||||||||||||||||||||||
Depr. and amort. - real estate jv's, net of noncontrolling interests | 32,089 | 33,643 | 65,050 | 67,685 | ||||||||||||||||||||||||
Impairments of operating properties, net of tax and noncontrolling interests | 49,796 | 18,482 | 54,073 | 28,775 | ||||||||||||||||||||||||
Funds from operations | 141,642 | 137,989 | 276,522 | 264,238 | ||||||||||||||||||||||||
Transactional charges / (income), net | 480 | (11,746 | ) | (2,219 | ) | (12,107 | ) | |||||||||||||||||||||
Funds from operations as adjusted | $ | 142,122 | $ | 126,243 | $ | 274,303 | $ | 252,131 | ||||||||||||||||||||
Weighted average shares outstanding for FFO calculations: | ||||||||||||||||||||||||||||
Basic | 407,640 | 405,560 | 407,154 | 405,916 | ||||||||||||||||||||||||
Units | 1,519 | 1,524 | 1,524 | 1,532 | ||||||||||||||||||||||||
Dilutive effect of equity awards | 2,780 | 2,260 | 2,598 | 2,255 | ||||||||||||||||||||||||
Diluted | 411,939 | (1 | ) | 409,344 | (1 | ) | 411,276 | (1 | ) | 409,703 | (1 | ) | ||||||||||||||||
FFO per common share - basic | $ | 0.35 | $ | 0.34 | $ | 0.68 | $ | 0.65 | ||||||||||||||||||||
FFO per common share - diluted | $ | 0.35 | (1 | ) | $ | 0.34 | (1 | ) | $ | 0.68 | $ | 0.65 | ||||||||||||||||
FFO as adjusted per common share - diluted | $ | 0.35 | (1 | ) | $ | 0.31 | (1 | ) | $ | 0.67 | (1 | ) | $ | 0.62 | (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 $625 and $520 for the three months ended June 30, 2013 and 2012, and $1,249 and $1,039 for the six months ended June 30, 2013 and 2012, 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 ("FFO") per Common Share | ||||||||
(unaudited) | ||||||||
Projected Range | ||||||||
Full Year 2013 | ||||||||
Low | High | |||||||
Projected diluted net income available to common | ||||||||
shareholder per share | $ | 0.40 | $ | 0.42 | ||||
Projected depreciation & amortization | 0.61 | 0.63 | ||||||
Projected depreciation & amortization real estate | ||||||||
joint ventures, net of noncontrolling interests | 0.30 | 0.32 | ||||||
Gain on disposition of operating properties | (0.01 | ) | (0.03 | ) | ||||
Gain on disposition of joint venture operating properties, | ||||||||
net of noncontrolling interests | (0.12 | ) | (0.14 | ) | ||||
Impairments of operating properties, net of tax | ||||||||
and noncontrolling interests | 0.13 | 0.13 | ||||||
Projected FFO per diluted common share | $ | 1.31 | $ | 1.33 | ||||
Transactional income, net | - | - | ||||||
Projected FFO, as adjusted per diluted common share | $ | 1.31 | $ | 1.33 |
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, 1-866-831-4297
Vice
President, Investor Relations and Corporate Communications