DOW JONES NEWSWIRES
Kimco Realty Corp.'s (KIM) swung to a fourth-quarter net loss on
$113.1 million of investment write-downs as the shopping center
operator's results topped analysts' expectations.
But the real-estate investment trust projected 2009 FFO below
estimates, anticipating $1.70 to $1.90 a share. Analysts surveyed
by Thomson Reuters projected $2.22 for FFO, a key measure of
profitability for REITs.
The industry has been struggling recently as the housing and
commercial real-estate markets continue to slump amid the global
recession and credit crunch. Retail-sales declines, which have
occurred as consumers curb discretionary spending, translates into
weaker retailers, more vacancies and increased difficulties for
landlords, some carrying heavy debt loads.
Kimco reported a fourth-quarter net loss of $51.5 million, or 24
cents a share, compared with year-earlier net income of $83
million, or 28 cents a share. Funds from operations plunged to 4
cents from 53 cents. Both the bottom line and FFO were hurt by the
44 cents in write-downs.
Revenue increased 11% to $197 million.
Analysts polled by Thomson Reuters forecast earnings of 7 cents
a share, funds from operations of 24 cents a share and revenue of
$190 million.
Kimco signed 500 new leases totaling 1.3 million square feet in
its shopping-center holdings. In its U.S. portfolio, the company
signed 153 new leases and 250 renewals.
Shares of Kimco closed at $13.45 Wednesday and didn't trade
premarket. The company's stock has lost two-thirds of its value
since September and is down 26% this year alone.
-By John Kell and Tess Stynes, Dow Jones Newswires;
201-938-5285; john.kell@dowjones.com