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

August 03, 2012 | About:
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10qk

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Kimco Realty Corp. (KIM) filed Quarterly Report for the period ended 2012-06-30.

Kimco Realty Corp has a market cap of $7.85 billion; its shares were traded at around $19.95 with a P/E ratio of 15.9 and P/S ratio of 9. The dividend yield of Kimco Realty Corp stocks is 3.9%.

Highlight of Business Operations:

Revenues from rental property increased primarily from the combined effect of (i) the acquisition of operating properties during 2012 and 2011, providing incremental revenues for the three and six months ended June 30, 2012 of $7.2 million and $16.0 million, respectively as compared to the corresponding periods in 2011, (ii) an overall increase in the consolidated shopping center portfolio occupancy to 92.8% at June 30, 2012, as compared to 92.0% at June 30, 2011, (iii) the completion of certain development and redevelopment projects and tenant buyouts providing incremental revenues for the three and six months ended June 30, 2012 of $1.0 million and $1.6 million, respectively, as compared to the corresponding periods in 2011, and (iv) an increase in revenues relating to the Company s Latin America portfolio of $7.3 million and $4.4 million, for the three and six months ended June 30, 2012, respectively, partially offset by (v) a decrease in revenues of $0.4 million and $0.5 million, for the three and six months ended June 30, 2012, respectively, primarily resulting from the sale of certain properties during 2012 and 2011.

Benefit/(provision) for income taxes, net changed $10.3 million to a benefit of $4.7 million for the three months ended June 30, 2012, as compared to a provision of $5.6 million for the corresponding period in 2011. Additionally, Benefit/(provision) for income taxes, net changed $10.5 million to a benefit of $0.6 million for the six months ended June 30, 2012, as compared to a provision of $9.9 million for the corresponding period in 2011. These changes are primarily due to (i) a decrease in foreign taxes for the three and six months ended June 30, 2012, of $4.4 million and $5.7 million, respectively, as compared to the corresponding periods in 2011 primarily relating to changes in foreign currency exchange rates and (ii) an increase in income tax benefit of $7.1 million related to impairments taken during the three and six months ended June 30, 2012, as compared to the corresponding periods in 2011, partially offset by, (iii) an increase in tax provision for the three and six months ended June 30, 2012, of $1.0 million and $2.0 million, respectively, as compared to the corresponding periods in 2011, resulting from incremental earnings due to increased profitability from properties within the Company s taxable REIT subsidiaries and (iv) a decrease in tax benefit of $0.5 million and $1.0 million for the three and six months ended June 30, 2012, respectively, as compared to the corresponding periods in 2011, as a result of reduced interest expense for the Company s taxable REIT subsidiaries.

Equity in income of real estate joint ventures, net increased $49.1 million for the six months ended June 30, 2012, as compared to the corresponding period in 2011. This increase is primarily the result of (i) an increase in gains on sale and promote income recognized of $25.6 million, (ii) the recognition of $7.5 million in income on the sale of certain air rights at a property within one of the Company s joint venture investments in Canada, (iii) an increase in equity in income of $3.0 million from the Company s InTown Suites investment primarily resulting from increased operating profitability, (iv) the recognition of $2.1 million in income resulting from cash distributions received in excess of the Company s carrying value of its investment in an unconsolidated joint venture during 2012, (v) a decrease in equity loss of $3.2 million from the sale of a property during 2011, (vi) an increase in equity in income of $1.8 million from the Company s joint venture investments in Canada and (vii) incremental earnings due to increased profitability from properties within the Company s joint venture program.

Net income attributable to the Company for the three and six months ended June 30, 2012 was $69.1 million and $122.8 million, respectively. Net income attributable to the Company for the three and six months ended June 30, 2011 was $38.7 million and $67.7 million, respectively. On a diluted per share basis, net income attributable to the Company was $0.12 and $0.21 for the three and six month periods ended June 30, 2012, respectively, as compared to $0.06 and $0.09 for the three and six month period ended June 30, 2011, respectively. This increase is primarily attributable to (i) incremental earnings due to increased profitability from the Company s operating properties and the acquisition of operating properties during 2012 and 2011, (ii) an increase in equity in income of joint ventures, net primarily due to gains on sales of operating properties sold within various joint venture portfolios during 2012, (iii) an increase in equity in income of other real estate investments, net due to the increase in profit participation from the Company s Preferred Equity Program, partially offset by (iv) a decrease in interest, dividends and other investment income resulting primarily from the sale of certain marketable securities during 2011 and (v) an increase in impairment charges recognized during the three and six months ended June 30, 2012, as compared to the corresponding periods in 2011.

The Company seeks to reduce its operating and leasing risks through diversification achieved by the geographic distribution of its properties, avoiding dependence on any single property, and a large tenant base. At June 30, 2012, the Company s five largest tenants were The Home Depot, TJX Companies, Wal-Mart, Sears Holdings and Kohl s, which represented 3.0%, 3.0%, 2.5%, 2.1% and 1.6%, respectively, of the Company s annualized base rental revenues including the proportionate share of base rental revenues from properties in which the Company has less than a 100% economic interest.

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