Kimco Realty Corp.'s (KIM) swung to a fourth-quarter net loss on $113.1 million of investment write-downs as the real-estate investment trust's results topped analysts' expectations.

But amid a challenging environment for the retail real estate sector, Kimco projected 2009 funds from operations, a key measure of REIT profitability, below Wall Street targets, at between $1.70 to $1.90 a share. Analysts surveyed by Thomson Reuters projected $2.22 for FFO.

Despite the weak report, RBC Capital Markets Analyst Rich Moore says Kimco is holding up relatively well under recessionary pressures. "What matters is that the internal operations were very strong even in this environment," Moore said. He added that while no company has been immune to the economic downturn, Kimco stands to benefit from having relatively strong retailers who pose low vacancy risk as its top 15 tenants.

In the wake of Kimco's earnings, the company's stock price dropped 4.31% to $12.85 in recent trading.

The company attributed its impairment charges mainly to write-downs of securities investments last quarter and its equity investment in unconsolidated joint ventures with Prudential Real Estate Investors.

Kimco also declared its regular quarterly cash dividend of $0.44 per common share just as a growing number of REITs are opting to offer dividends comprised partly of company stock to preserve cash, including Simon Property Group, Inc. (SPG) and Vornado Realty Trust (VNO). However, the company said it will continue to evaluate its dividend policy on a quarterly basis as they monitor sources of capital.

Retail real estate 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, translate 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.

The company's stock has lost two-thirds of its value since September and is down 29% in 2009.

-By A.D. Pruitt, Dow Jones Newswires, 201-938-2269, angela.pruitt@dowjones.com

(John Kell and Tess Stynes contributed to this report.)