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

November 06, 2012 | About:
10qk

10qk

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Kimco Realty Corp. (KIM) filed Quarterly Report for the period ended 2012-09-30.

Kimco Realty Corp has a market cap of $7.99 billion; its shares were traded at around $19.46 with a P/E ratio of 16.1 and P/S ratio of 9.1. 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 nine months ended September 30, 2012 of $16.0 million and $40.6 million, respectively as compared to the corresponding periods in 2011, (ii) an overall increase in the consolidated shopping center portfolio occupancy to 92.7% at September 30, 2012, as compared to 92.2% at September 30, 2011, (iii) the completion of certain development and redevelopment projects, tenant buyouts and net growth in the current portfolio, providing incremental revenues for the three and nine months ended September 30, 2012 of $4.2 million and $0.4 million, respectively, as compared to the corresponding periods in 2011, and (iv) an increase in revenues relating to the Company s Latin American portfolio of $1.4 million and $5.4 million, for the three and nine months ended September 30, 2012, respectively, partially offset by (v) a decrease in revenues of $2.9 million and $6.3 million, for the three and nine months ended September 30, 2012, respectively, primarily resulting from the sale of certain properties during 2012 and 2011.

Equity in income of joint ventures, net increased $53.9 million for the nine months ended September 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 $23.7 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 $4.1 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, (v) a decrease in equity in loss of $3.7 million resulting from the disposition of a portfolio of properties during 2011, (vi) an increase in equity in income of $3.4 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 nine months ended September 30, 2012 was $54.9 million and $177.7 million, respectively. Net income attributable to the Company for the three and nine months ended September 30, 2011 was $55.0 million and $122.7 million, respectively. On a diluted per share basis, net income was $0.07 and $0.28 for the three and nine month periods ended September 30, 2012, respectively, as compared to $0.10 and $0.19 for the three and nine month period ended September 30, 2011, respectively. These changes are primarily attributable to (i) a decrease in interest, dividends and other investment income resulting primarily from the sale of certain marketable securities during 2011, (ii) a decrease in equity in income resulting from the Albertson s joint venture and (iii) an increase in impairment charges recognized during the three and nine months ended September 30, 2012, as compared to the corresponding periods in 2011, partially offset by (iv) incremental earnings due to increased profitability from the Company s operating properties and the acquisition of operating properties during 2012 and 2011 and (v) 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. The 2012 diluted per share results were decreased by a reduction in net income available to common shareholders of $6.2 million resulting from the deduction of original issuance costs associated with the redemption of the Company s 6.65% Class F Cumulative Redeemable Preferred Stock.

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 September 30, 2012, the Company s five largest tenants were TJX Companies, The Home Depot, Wal-Mart, Sears Holdings and Kohl s, which represented 3.0%, 3.0%, 2.5%, 2.0% 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.

On August 15, 2012, the Company redeemed of all of its outstanding 7,000,000 depositary shares of the Company s 6.65% Class F Cumulative Redeemable Preferred Stock, $1.00 par value per share (the “Class F Preferred Stock”) for $175.0 million, before payment of accrued and unpaid dividends of $1.0 million. In connection with this redemption the Company recorded a charge of $6.2 million resulting from the difference between the redemption amount and the carrying amount of the Class F Preferred Stock on the Company s Condensed Consolidated Balance Sheets in accordance with the FASB s guidance on Distinguishing Liabilities from Equity. The $6.2 million was subtracted from net income to arrive at net income available to common shareholders and is used in the calculation of earnings per share for the three and nine months ended September 30, 2012.

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