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Kimco Realty Corp. Reports Operating Results (10-Q)

November 08, 2010 | About:
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10qk

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Kimco Realty Corp. (KIM) filed Quarterly Report for the period ended 2010-09-30.

Kimco Realty Corp. has a market cap of $7.34 billion; its shares were traded at around $18.08 with a P/E ratio of 15.32 and P/S ratio of 9.32. The dividend yield of Kimco Realty Corp. stocks is 3.54%. Kimco Realty Corp. had an annual average earning growth of 0.4% over the past 10 years.KIM is in the portfolios of Jim Simons of Renaissance Technologies LLC, Stanley Druckenmiller of Duquesne Capital Management, LLC, Bruce Kovner of Caxton Associates, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors, Pioneer Investments, First Pacific Advisors of First Pacific Advisors, LLC, Jeremy Grantham of GMO LLC.
This is the annual revenues and earnings per share of KIM over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of KIM.


Highlight of Business Operations:

(1) Revenues from rental property increased primarily from the combined effect of (i) the acquisition of operating properties during 2010 and 2009, providing incremental revenues for the three and nine months ended September 30, 2010 of $20.4 million and $60.6 million, respectively, as compared to the corresponding periods in 2009 and (ii) an overall increase in the consolidated shopping center portfolio occupancy to 91.7% at September 30, 2010, as compared to 91.3% at September 30, 2009 and the completion of certain development and redevelopment projects and tenant buyouts providing incremental revenues of approximately $0.5 million and $7.0 million for the three and nine months ended September 30, 2010, respectively, as compared to the corresponding periods in 2009, which was partially offset by (iii) a decrease in revenues of approximately $0.5 million and $2.9 million for the three and nine months ended September 30, 2010, respectively, as compared to the corresponding periods in 2009, primarily resulting from the partial sale of certain properties during 2010 and 2009.

Interest, dividends and other investment income decreased approximately $4.6 million to $4.6 million for the three months ended September 30, 2010, as compared to $9.2 million for the corresponding period in 2009. This decrease is primarily due to (i) a decrease in realized gains of approximately $1.7 million resulting from the sale of certain marketable securities during the three months ended September 30, 2009 as compared to the corresponding period in 2010, (ii) a reduction in interest income of approximately $0.5 million due to repayments of notes in 2010 and 2009 and (iii) a decrease in other investments and dividend income of approximately $2.5 million during the three months ended September 30, 2010 as compared to the corresponding period in 2009. Interest, dividends and other investment income decreased approximately $6.6 million to $15.8 million for the nine months ended September 30, 2010, as compared to $22.5 million for the corresponding period in 2009. This decrease is primarily due to (i) a reduction in interest income of approximately $3.8 million due to the disposition of notes in 2009 and (ii) a decrease in dividend income of approximately $1.8 million primarily resulting from the sale of certain marketable securities during 2010 and 2009.

Other (expense)/income, net changed approximately $8.3 million to $3.9 million of expense for the three months ended September 30, 2010, as compared to $4.4 million of income for the three months ended September 30, 2009. This change is primarily due to (i) a decrease in the fair value of an embedded derivative instrument of approximately $1.2 million relating to the convertible option of the Valad notes (ii) decreased gains from land sales of approximately $4.0 million and (iii) an increase in foreign withholding tax of approximately $1.7 million. Other (expense)/income, net changed approximately $12.8 million to $12.3 million of expense for the nine months ended September 30, 2010, as compared to $0.5 million of income for the nine months ended September 30, 2009. This change is primarily due to (i) a decrease in the fair value of an embedded derivative instrument of approximately $2.5 million relating to the convertible option of the Valad notes (ii) decreased gains from land sales of approximately $1.5 million, (iii) an increase in acquisition costs of approximately $0.4 million, (iv) a decrease in foreign currency conversion adjustments of approximately $1.1 million relating to a foreign investment which has a US dollar functional currency and (v) an increase in foreign withholding tax of approximately $6.4 million.

Equity in income of real estate joint ventures, net increased approximately $5.1 million to approximately $14.1 million for the three months ended September 30, 2010, as compared to approximately $9.0 million for the corresponding period in 2009. This increase is primarily the result of a (i) decrease in impairment charges of approximately $1.3 million resulting from fewer impairment charges recognized against certain joint venture properties during 2010, as compared to the corresponding period in 2009 (ii) an increase in gains on sales of approximately $1.9 million for the three months ended September 30, 2010, as compared to the corresponding period in 2009 and (iii) an increase in equity in income of approximately $2.0 million from the Company’s joint venture investments in Canada primarily resulting from the amendment and restructuring of two retail property preferred equity investments into two pari passu joint venture investments during the three months ended September 30, 2010. Equity in income of real estate joint ventures, net increased $31.4 million to approximately $34.7 million for the nine months ended September 30, 2010, as compared to approximately $3.3 million for the corresponding period in 2009. This increase is primarily the result of a (i) decrease in impairment charges of approximately $10.6 million resulting from fewer impairment charges recognized against certain joint venture properties during 2010 as compared to the corresponding period in 2009, (ii) an increase in income related to the recognition of approximately $8.0 million in income resulting from cash distributions received in excess of the Company’s carrying value of its investment in an unconsolidated limited liability partnership for the nine months ended September 30, 2010, (iii) an increase in equity in income of approximately $4.6 million from the Company’s joint venture investments in Canada partially resulting from the amendment and restructuring of two retail property preferred equity investments into two pari passu joint venture investments during the nine months ended September 30, 2010, (iv) an increase in equity in income of approximately $1.1 million from the Company’s joint venture investments in Mexico primarily resulting from lease-up activities at properties that were placed into service and (v) the recognition of approximately $7.0 million of equity in income from the Albertson’s joint venture during the nine months ended September 30, 2010, as compared to $3.1 million of equity in income recognized during the nine months ended September 30, 2009, primarily resulting from the sale of a distribution center in the joint venture.

Net income attributable to the Company for the three months ended September 30, 2010, was approximately $30.3 million as compared to $40.1 million for the three months ended September 30, 2009. On a diluted per share basis, net income attributable to the Company was $0.04 for the three month period ended September 30, 2010, as compared to $0.07 for the three month period ended September 30, 2009. These changes were primarily attributable to (i) the recognition of approximately $10.8 million in early extinguishment of debt charges, (ii) a decrease in other income, primarily due to decreased gains from land sales of approximately $4.1 million, partially offset by (iii) additional incremental earnings due to the acquisitions of operating properties during 2010 and 2009 and (iv) an increase in Income from other real estate investments of approximately $6.0 million for the three month period ended September 30, 2010 as compared to the corresponding period in 2009. Conversely, net income attributable to the Company for the nine months ended September 30, 2010 was $105.8 million as compared to a net loss attributable to the Company of $(56.1) million for the nine months ended September 30, 2009. On a diluted per share basis, net income attributable to the Company was $0.17 for the nine month period ended September 30, 2010, as compared to net loss attributable to the Company of $(0.27) for the nine month period ended September 30, 2009. These changes are primarily attributable to (i) a decrease in impairment charges of approximately $136.3 million during the nine months ended September 30, 2010 as compared to the corresponding period in 2009, (ii) an overall net increase in Equity in income of joint ventures primarily due to a decrease in impairment charges of $10.6 million during the nine months ended September 30, 2010, as compared to the corresponding period in 2009, (iii) an increase in Income from other real estate investments primarily due to an increase of approximately $6.1 million from the Company’s Preferred Equity program, (iv) additional incremental earnings due to the acquisitions of operating properties during 2010 and 2009, partially offset by (v) the recognition of approximately $10.8 million in early extinguishment of debt charges.

Cash flows used for financing activities for the nine months ended September 30, 2010, were approximately $396.2 million, as compared to approximately $262.4 million for the comparable period in 2009. This change of approximately $133.8 million resulted primarily from (i) a decrease in proceeds from the issuance of stock of approximately $547.4 million, (ii) a decrease in proceeds from mortgage/construction loan financing of approximately $389.9 million, (iii) an increase in the repayment of unsecured term loan/notes of approximately $43.0 million, (iv) decreases in proceeds from issuance of unsecured term loans/notes of approximately $70.3 million and (v) an increase in the redemption of noncontrolling interests of approximately $56.5 million, partially offset by (vi) a decrease of approximately $725.2 million in net borrowings/repayments under the Company’s unsecured revolving credit facilities, (vii) an overall decrease in aggregate principal payments of approximately $173.7 million and (viii) a decrease in dividends paid of approximately $66.4 million.

Read the The complete Report

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