- 10-Year Record High Leasing Volume Drives
Strong Operating Results -
- Occupancy Nearing All-Time High -
- Board Authorizes $300 Million Share
Repurchase Program -
Kimco Realty Corp. (NYSE:KIM) today reported results for the
fourth quarter and year ended December 31, 2017.
Highlights - Fourth Quarter and Full
Year 2017:
- A 10.1% increase in net income
available to the company’s common shareholders during the fourth
quarter of 2017 to $73.5 million, compared to $66.7 million during
the same period in 2016.
- Improved pro-rata occupancy to 96.0%,
compared to the company’s historic record 96.2%, representing an
increase of 20 basis points sequentially and 60 basis points from
the fourth quarter 2016.
- Generated new leasing spreads of 13.2%
in the fourth quarter with overall rent spreads expanding 9.2%
during the same period.
- Leased over 10.0 million square feet in
2017 representing the highest leasing volume in the past 10
years.
- Issued $230 million of 5.25% Class M
cumulative redeemable preferred stock during the fourth quarter
with an additional $34.5 million subsequently issued after the
underwriters exercised their 30-day over-allotment option in
January of 2018.
- In February 2018, the company’s board
approved a $300 million share repurchase program.
“We are pleased with the solid leasing spreads and positive
operating results our team achieved in 2017. The strongest leasing
activity in ten years raised our year-end occupancy to just shy of
our all-time high, positioning us for continued success in 2018,”
stated Conor Flynn, Chief Executive Officer of Kimco. “As we move
forward, we will continue to build on these results while also
taking steps to strengthen our portfolio in the rapidly changing
retail environment.” Mr. Flynn continued, “Accelerating the
divestiture of assets outside our core markets will allow us to
concentrate our presence in target coastal markets, complete
development projects underway and continue to invest in
redevelopment, ultimately producing a stronger portfolio primed for
sustained long-term growth.”
Financial Results
Net income available to common shareholders for the fourth
quarter of 2017 was $73.5 million, or $0.17 per diluted share,
compared to $66.7 million, or $0.16 per diluted share, for the
fourth quarter 2016.
For the full year 2017, net income available to common
shareholders was $372.5 million, or $0.87 per diluted share,
compared to $332.6 million, or $0.79 per diluted share, for the
full year 2016. The increase was due to:
- $43.9 million of lower charges
associated with the early extinguishment of debt.
- $23.7 million cash distribution in 2017
from the company’s investment in Albertsons LLC.
- $63.5 million charge in 2016 for the
merger of the company’s taxable REIT subsidiary (TRS).
- $10.0 million net gain on foreign
currency translation in 2017 related to the company’s strategic
exit from Canada.
Offset by:
- $102.0 million of lower gains on sales
of operating properties, net of impairments in 2017.
- $7.0 million charge related to the
partial preferred stock redemption in 2017.
NAREIT FFO was $160.1 million, or $0.38 per diluted share, for
the fourth quarter 2017 compared to $163.0 million, or $0.38 per
diluted share, for the fourth quarter 2016. NAREIT FFO for the
fourth quarter of 2017 included $6.3 million of transactional
charges (net of transactional income). This compares to $2.6
million of transactional income (net of transactional charges) in
the fourth quarter of 2016.
For the full year 2017, NAREIT FFO was $655.6 million, or $1.55
per diluted share, compared to $555.7 million, or $1.32 per diluted
share, for the full year 2016. NAREIT FFO for 2017 included $11.3
million of transactional income (net of transactional charges).
This compares to $73.7 million of transactional charges (net of
transactional income) recognized in 2016 NAREIT FFO.
FFO as adjusted available to common shareholders, which excludes
the effects of non-operating impairments as well as transactional
income and charges, was $166.4 million, or $0.39 per diluted share,
for the fourth quarter 2017 compared to $160.4 million, or $0.38
per diluted share, for the fourth quarter 2016. For the full year
2017, FFO as adjusted was $644.2 million, or $1.52 per diluted
share, compared to $629.4 million, or $1.50 per diluted share, for
the full year 2016.
A reconciliation of net income to NAREIT FFO, FFO as adjusted
and same-property NOI is provided in the tables accompanying this
press release.
Operating Results
- Pro-rata occupancy ended the quarter at
96.0%, representing an increase of 20 basis points sequentially and
60 basis points from the fourth quarter 2016.
- Anchor and small shop pro-rata
occupancy improved sequentially to 98.1% (+20 basis points) and
89.6% (+10 basis points), respectively.
- Pro-rata rental-rate leasing spreads
increased 9.2% during the fourth quarter 2017, with rental rates
for new leases up 13.2% and renewals/options increasing 7.9%. For
the full year 2017, pro-rata rental-rate leasing spreads increased
11.5% with rental rates for new leases up 22.9% and
renewals/options increasing 8.9%.
- Signed 1,597 leases totaling 10.0
million square feet during 2017, representing the highest amount of
square footage leased in the past 10 years on what is an overall
smaller portfolio.
- Same-property NOI increased by
1.2% in the fourth quarter of 2017 compared to the same period
in 2016, and included a 120-basis-point reduction in same-property
NOI from Puerto Rico due to the impact of Hurricane Maria in
September of 2017 and a 40-basis-point reduction from
redevelopments.
- Same-property NOI increased 1.7% for
the full year 2017 compared to the same period in 2016 despite the
negative impact of 30 basis points from Puerto Rico.
Investment Activity
Dispositions:
During the fourth quarter, the company sold 16 shopping centers
for a gross sales price of $234.2 million. Kimco’s share of the
sales price was $174.0 million.
For the full year 2017, the company’s dispositions included 38
shopping centers and 3 land parcels, totaling 4.4 million square
feet, for a gross sales price of $565.7 million. Kimco’s share of
the sales price was $430.4 million.
In January of 2018, Kimco completed the sales of three shopping
centers totaling over $30 million. Currently, the company has
approximately $300 million of properties under contract or with an
accepted offer, and over $475 million of properties being
marketed.
Acquisitions:
During the fourth quarter, Kimco acquired one shopping center
and two adjacent parcels totaling 845,000 square feet for $140.6
million, including $43.0 million of mortgage debt.
As previously announced during the fourth quarter, Kimco added
Whittwood Town Center, a 783,000-square-foot,
grocery-anchored open-air shopping center on a 54-acre infill site
in the densely populated Los Angeles suburb of Whittier,
California, to its Signature Series portfolio. The center features
Target, Vons, PetSmart, Cost Plus and 24 Hour Fitness, in addition
to Kohl’s, Sears and J.C. Penney, which pay substantially
below-market rents, with an aggregate mark-to-market opportunity of
560%. The $123 million purchase price was funded with 1031 Exchange
proceeds along with the assumption of $43 million in mortgage debt,
which was completed in the fourth quarter despite the offer having
been accepted in April 2017.
In 2017, Kimco acquired three shopping centers and ten land
parcels for $382.1 million of which $377.4 million represents the
company’s pro-rata share.
Capital Activity
- Kimco repaid the remaining $89.0
million outstanding of its 4.30% Series E Medium-Term Notes due
2018 on November 1, 2017.
- Issued $230.0 million of 5.25% Class M
cumulative redeemable preferred stock comprised of 9,200,000 Class
M depositary shares ($25 par) callable in December 2022.
Subsequently, the company issued an additional $34.5 million of
5.25% Class M cumulative redeemable preferred stock after the
underwriters exercised their 30-day over-allotment option in
January of 2018.
- In February 2018, Kimco’s board of
directors authorized a share repurchase program for up to
$300.0 million of the company’s common stock through February
28, 2020. Repurchases may be made at management’s discretion
from time to time in the open market and, depending on market
conditions and other factors, the program may be commenced or
suspended without prior notice.
2018 Full Year
Guidance
Net Income attributable to common
shareholders (per diluted share): $0.66 to $0.74
NAREIT FFO and FFO as adjusted (per diluted share):
$1.42 to $1.46
Reconciliations are provided for these forward-looking non-GAAP
metrics (NAREIT FFO and FFO as adjusted) in the tables accompanying
this press release.
Operating Assumptions:
Same-property NOI (excluding
redevelopments): 1.25% to 2.00% Net dispositions
(7.50% to 8.00% blended cap rate): $700 million to
$900 million Total redevelopment & development investment:
$425 million to $525 million
The following table outlines the key factors impacting 2018 FFO
and FFO as adjusted guidance ranges, and accounts for the
difference from the company’s 2017 reported FFO and FFO as
adjusted:
Low
High 2017 NAREIT FFO (per diluted share)
$1.55 $1.55 Transactional
activity $(0.03) $(0.03)
2017 FFO as
adjusted (per diluted share) $1.52
$1.52
2017 activity
impacting 2018:
- 5.25% Class M cumulative redeemable preferred stock
issuance
$(0.03) $(0.03)
- Fourth Quarter 2017 Net disposition activity
$(0.02) $(0.02)
- U.S. GAAP* & lease termination income
$(0.03) $(0.03)
Initial 2018
base:
$1.44 $1.44
- 2018 Net disposition activity**
$(0.06) $(0.04)
- NOI Growth (including development)
+$0.04 +$0.06
2018 NAREIT FFO & FFO as
adjusted (per diluted share) $1.42
$1.46 * U.S. GAAP relates to lower straight-line rent
adjustments and the amortization of above and below market rent as
well as reduced mark-to-market debt adjustments. **2018 Net
disposition activity assumes sales proceeds will fund 2018
redevelopment and development capital investment requirements.
Additional sales proceeds may be used toward the reduction of debt,
which would result in lower financing costs with the incremental
savings reflected in the range presented for the 2018 Net
disposition activity, or repurchasing the company’s common stock.
Conference Call and Supplemental
Materials
Kimco will hold its quarterly conference call on Thursday,
February 15, 2018, at 10:00 a.m. Eastern Standard Time (EST). The
call will include a review of the company’s fourth quarter and full
year 2017 results as well as a discussion of the company’s strategy
and expectations for the future. To participate, dial
1-888-317-6003 (Passcode: 8360092).
A replay will be available through May 15, 2018, by dialing
1-877-344-7529 (Passcode: 10114786). 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 is one of North
America’s largest publicly traded owners and operators of open-air
shopping centers. As of December 31, 2017, the company owned
interests in 492 U.S. shopping centers comprising 83 million square
feet of leasable space primarily concentrated in the top major
metropolitan markets. 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 60
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 and management’s ability to estimate the impact
thereof, (vii) the availability of suitable acquisition,
disposition, development and redevelopment opportunities, and risks
related to acquisitions not performing in accordance with our
expectations, (viii) valuation and risks related to the company’s
joint venture and preferred equity investments, (ix) valuation of
marketable securities and other investments, (x) increases in
operating costs, (xi) changes in the dividend policy for the
company’s common stock, (xii) 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,
(xiii) impairment charges and (xiv) 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 SEC filings. 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, 2016, 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. The company
disclaims any intention or obligation to update the forward-looking
statements, whether as a result of new information, future events
or otherwise.
Non-GAAP Financial
Measures
NAREIT FFO: A supplemental non-GAAP measure utilized to
evaluate the operating performance of real estate companies. The
National Association of Real Estate Investment Trusts (“NAREIT”)
defines funds from operations (“NAREIT FFO”) as net income/(loss)
attributable to common shareholders computed in accordance with
generally accepted accounting principles in the United States
(“GAAP”), excluding (i) gains or losses from sales of operating
real estate assets and change in control of interests, plus (ii)
depreciation and amortization of operating properties and (iii)
impairment of depreciable real estate and in substance real estate
equity investments and (iv) after adjustments for unconsolidated
partnerships and joint ventures calculated to reflect NAREIT FFO on
the same basis.
The company considers NAREIT FFO an important supplemental
measure of our operating performance and believes it is frequently
used by securities analysts, investors and other interested parties
in the evaluation of REITs, many of which present NAREIT FFO when
reporting results. Comparison of our presentation of NAREIT FFO to
similarly titled measures for other REITs may not necessarily be
meaningful due to possible differences in the application of the
NAREIT definition used by such REITs.
FFO as Adjusted: A supplemental non-GAAP measure that the
company believes is more reflective of its core operating
performance and provides investors and analysts an additional
measure to compare the company’s performance across reporting
periods on a consistent basis by excluding items that we do not
believe are indicative of our core operating performance. FFO as
adjusted is generally calculated by the Company as NAREIT FFO
excluding certain transactional income and expenses and
non-operating impairments which management believes are not
reflective of the results within the company’s operating real
estate portfolio.
Same-Property NOI: A supplemental non-GAAP measure of
real estate companies’ operating performance and should not be
considered an alternative to net income in accordance with GAAP or
as a measure of liquidity. The company considers same-property NOI
as an important operating performance measure because it is
frequently used by securities analysts and investors to measure
only the net operating income of properties that have been owned by
the company for the entire current and prior year reporting
periods. It excludes properties under development and pending
stabilization; properties are deemed stabilized at the earlier of
(i) reaching 90% leased or (ii) one year following a projects
inclusion in operating real estate. Same-property NOI assists in
eliminating disparities in net income due to the development,
acquisition or disposition of properties during the particular
period presented, and thus provides a more consistent performance
measure for the comparison of the Company's properties.
Same-property NOI is calculated using revenues from rental
properties (excluding straight-line rent adjustments, lease
termination fees, amortization of above/below market rents and
includes charges for bad debt) less operating and maintenance
expense, real estate taxes and rent expense plus the company’s
proportionate share of same-property NOI from unconsolidated real
estate joint ventures, calculated on the same basis. The company’s
method of calculating same-property NOI may differ from methods
used by other REITs and, accordingly, may not be comparable to such
other REITs.
Condensed Consolidated Balance Sheets (in thousands,
except share information) (unaudited) December
31, December 31, 2017 2016
Assets: Operating real
estate, net of accumulated depreciation of $2,433,053 and
$2,278,292, respectively $ 9,817,875 $ 9,394,755 Investments in and
advances to real estate joint ventures 483,861 504,209 Real estate
under development 402,518 335,028 Other real estate investments
217,584 209,146 Mortgages and other financing receivables 21,838
23,197 Cash and cash equivalents 238,513 142,486 Marketable
securities 13,265 8,101 Accounts and notes receivable, net 189,757
181,823 Other assets 378,515 431,855
Total assets $ 11,763,726 $ 11,230,600
Liabilities: Notes payable, net $ 4,596,140 $
3,927,251 Mortgages payable, net 882,787 1,139,117 Dividends
payable 128,892 124,517 Other liabilities 617,617
549,888 Total liabilities 6,225,436
5,740,773 Redeemable noncontrolling
interests 16,143 86,953
Stockholders' equity: Preferred stock, $1.00 par value,
authorized 5,996,240 and 6,029,100 shares, respectively 41,200 and
32,000 shares issued and outstanding (in series), respectively
Aggregate liquidation preference $1,030,000 and $800,000,
respectively 41 32 Common stock, $.01 par value, authorized
750,000,000 shares issued and outstanding 425,646,380 and
425,034,113 shares, respectively 4,256 4,250 Paid-in capital
6,152,764 5,922,958 Cumulative distributions in excess of net
income (761,337 ) (676,867 ) Accumulated other comprehensive income
(1,480 ) 5,766 Total stockholders'
equity 5,394,244 5,256,139 Noncontrolling interests 127,903
146,735 Total equity 5,522,147
5,402,874
Total liabilities and equity
$ 11,763,726 $ 11,230,600
Condensed Consolidated Statements of Income (in thousands,
except per share data) (unaudited)
Three Months EndedDecember 31,
Year Ended December 31, 2017 2016 2017 2016 Revenues Revenues from
rental properties $ 310,632 $ 292,909 $ 1,183,785 $ 1,152,401
Management and other fee income 4,593 4,117
17,049 18,391 Total revenues
315,225 297,026 1,200,834
1,170,792 Operating expenses Rent 2,833 2,719 11,145
10,993 Real estate taxes 41,817 38,649 157,196 146,615 Operating
and maintenance 39,925 40,544 142,787 140,910 General and
administrative 32,060 27,462 118,455 117,302 Provision for doubtful
accounts 1,429 (189 ) 5,630 5,563 Impairment charges 33,051 25,140
67,331 93,266 Depreciation and amortization 85,024
90,884 360,811 355,320
Total operating expenses 236,139 225,209
863,355 869,969 Operating
income 79,086 71,817 337,479 300,823 Other (expense)/income
Other (expense)/income, net (1,254 ) 2,249 2,559 5,425 Interest
expense (52,126 ) (43,067 ) (191,956 ) (192,549 ) Early
extinguishment of debt charges - - (1,753 ) (45,674 ) Income from
continuing operations before income taxes, net, equity in income of
joint ventures, net, gain on change in control of interests and
equity in income from other real estate
investments, net 25,706 30,999 146,329 68,025
(Provision)/benefit for income taxes, net (1,344 ) 747 880 (72,545
) Equity in income of joint ventures, net 23,719 28,559 60,763
218,714 Gain on change in control of interests - 4,290 71,160
57,386 Equity in income of other real estate investments, net 5,049
5,241 67,001 27,773 Income from
continuing operations 53,130 69,836 346,133 299,353 Gain on
sale of operating properties, net of tax 31,436 10,850 93,538
86,785 Net income 84,566 80,686 439,671
386,138 Net loss/(income) attributable to noncontrolling interests
330 (2,413 ) (13,596 ) (7,288 )
Net income attributable to the Company 84,896 78,273 426,075
378,850 Preferred stock redemption charge - - (7,014 ) - Preferred
dividends (11,431 ) (11,555 ) (46,600 )
(46,220 ) Net income available to the Company's common shareholders
$ 73,465 $ 66,718 $ 372,461 $ 332,630
Per common share: Net income available to the Company: (2)
Basic $ 0.17 $ 0.16 $ 0.87 $ 0.79
Diluted $ 0.17 (1) $ 0.16 (1) $ 0.87 (1) $
0.79 (1) Weighted average shares: Basic 423,734
423,087 423,614 418,402
Diluted 424,088 424,249
424,019 419,709 (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 net income and therefore have not
been included. (2) Adjusted for earnings attributable from
participating securities of ($536) and ($524) for the three months
ended December 31, 2017 and 2016, and ($2,132) and ($2,018) for the
year ended December 31, 2017 and 2016, respectively.
Reconciliation of Net Income Available to the Company's Common
Shareholders to FFO and FFO as Adjusted Available to the
Company's Common Shareholders (in thousands, except per share
data) (unaudited) Three Months
Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Net
income available to the Company's common shareholders $ 73,465 $
66,718 $ 372,461 $ 332,630 Gain on disposition of operating
properties (31,436 ) (10,950 ) (92,830 ) (92,824 ) Gain on
disposition of joint venture operating properties and change in
control of interests (6,849 ) (14,880 ) (79,034 ) (217,819 )
Depreciation and amortization - real estate related 83,959 89,476
356,191 347,315 Depreciation and amortization - real estate jv's
9,835 9,477 39,248 45,098 Impairments of operating properties
32,854 24,125 65,148 101,928 (Benefit)/provision for income taxes
(2) - (1,227 ) (39 ) 39,570 Noncontrolling interests (2)
(1,688 ) 245 (5,583 ) (182 ) Funds from
operations available to the Company's common shareholders 160,140
162,984 655,562 555,716 Transactional expense/(income), net
6,251 (2,565 ) (11,327 ) 73,689
Funds from operations available to the Company's common
shareholders as adjusted $ 166,391 $ 160,419 $
644,235 $ 629,405 Weighted average shares
outstanding for FFO calculations: Basic 423,734
423,087 423,614 418,402
Units 961 841 852 853 Dilutive effect of equity awards 354
1,162 405 1,307
Diluted 425,049 (1) 425,090 (1)
424,871 (1) 420,562 (1) FFO per common
share - basic $ 0.38 $ 0.39 $ 1.55 $ 1.33
FFO per common share - diluted $ 0.38 (1) $ 0.38
(1) $ 1.55 (1) $ 1.32 (1) FFO as adjusted per
common share - diluted $ 0.39 (1) $ 0.38 (1) $ 1.52
(1) $ 1.50 (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 $274 and $229 for the three months ended December 31, 2017 and
2016, and $923 and $881 for the year ended December 31, 2017 and
2016, respectively. (2) Related to gains, impairments and
depreciation on operating properties, where applicable. 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 change in control of
interests 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 Net Income Available to the Company's Common Shareholders
to Same Property NOI (in thousands) (unaudited)
Three Months Ended December 31, Year
Ended December 31, 2017 2016 2017 2016 Net income available to the
Company's common shareholders $ 73,465 $ 66,718 $ 372,461 $ 332,630
Adjustments: Management and other fee income (4,593 ) (4,117 )
(17,049 ) (18,391 ) General and administrative 32,060 27,462
118,455 117,302 Impairment charges 33,051 25,140 67,331 93,266
Depreciation and amortization 85,024 90,884 360,811 355,320
Interest and other expense, net 53,380 40,818 191,150 232,798
Provision/(benefit) for income taxes, net 1,344 (747 ) (880 )
72,545 Gain on change in control of interests - (4,290 ) (71,160 )
(57,386 ) Equity in income of other real estate investments, net
(5,049 ) (5,241 ) (67,001 ) (27,773 ) Gain on sale of operating
properties, net of tax (31,436 ) (10,850 ) (93,538 ) (86,785 ) Net
(loss)/income attributable to noncontrolling interests (330 ) 2,413
13,596 7,288 Preferred stock redemption charge - - 7,014 -
Preferred stock dividends 11,431 11,555 46,600 46,220 Non same
property net operating income (27,390 ) (20,555 ) (85,681 )
(108,248 ) Non-operational expense/(income) from joint ventures,
net 9,360 8,474 72,970
(58,563 ) Same Property NOI $ 230,317 $ 227,664
$ 915,079 $ 900,223 Same Property NOI
is a supplemental non-GAAP financial measure of real estate
companies’ operating performance and should not be considered an
alternative to net income in accordance with GAAP or as a measure
of liquidity. Same Property NOI is considered by management to be
important performance measure of Kimco's operations, and management
believes that this measure is frequently used by securities
analysts and investors as a measure of Kimco's operating
performance as this measure includes only the net operating income
of properties that have been owned for the entire current and prior
year reporting periods including those properties under
redevelopment and exclude properties under development and pending
stabilization. As such, Same Property NOI assists in eliminating
disparities in net income due to the development, acquisition or
disposition of properties during the particular periods presented,
and thus provides a more consistent performance measure for the
comparison of the operating performance of Kimco's properties.
Same Property NOI is calculated using revenues from rental
properties (excluding straight-line rent adjustments, lease
termination fees and above/below market rents) less charges for bad
debt, less operating and maintenance expense, real estate taxes and
rent expense, plus Kimco's proportionate share of Same Property NOI
from unconsolidated real estate joint ventures, calculated on the
same basis. Same Property NOI includes all properties that are
owned for the entire current and prior year reporting periods and
excludes properties under development and properties pending
stabilization. Properties are deemed stabilized at the earlier of
(i) reaching 90% leased or (ii) one year following their inclusion
in operating real estate. Kimco’s method of calculating Same
Property NOI may differ from methods used by other REITs and,
accordingly, may not be comparable to such other REITs.
Reconciliation of Diluted Net Income Available to Common
Shareholders Per Common Share to Diluted Funds From
Operations Available to Common Shareholders Per Common Share
(unaudited) Actual Projected
Range 2017 Full Year 2018
Low
High
Projected diluted net income available to common shareholder
$ 0.87 $ 0.66 $ 0.74 per common share Projected depreciation
& amortization 0.84 0.77 0.80 Projected depreciation
& amortization real estate joint ventures, net of
noncontrolling interests 0.09 0.08 0.10 Gain on disposition
of operating properties (0.22 ) (0.08 ) (0.16 ) Gain on
disposition of joint venture operating properties, net of
noncontrolling interests, and change in control of interests (0.18
) (0.01 ) (0.02 ) Impairments of operating properties 0.16 -
- Provision/(benefit) for income taxes - - -
Noncontrolling interests (0.01 ) - - Projected
FFO per diluted common share $ 1.55 $ 1.42 $ 1.46
Transactional charges, net (0.03 ) - -
Projected FFO, as adjusted per diluted common share $ 1.52 $
1.42 $ 1.46 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180215005187/en/
Kimco Realty Corp.David F. Bujnicki, 1-866-831-4297Senior Vice
President, Investor Relations and
Strategydbujnicki@kimcorealty.com
Kimco Realty (NYSE:KIM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Kimco Realty (NYSE:KIM)
Historical Stock Chart
From Apr 2023 to Apr 2024