Kimco Realty Corp. (KIM, Financial) filed Quarterly Report for the period ended 2009-06-30.
Kimco Realty Corp. together with its subsidiaries is a self-administered real estate investment trust and is one of the nation\'s largest owners and operators of neighborhood and community shopping centers. The company\'s portfolio of property interests includes neighborhood and community shopping center properties regional malls retail store leases parcels of undeveloped land and projects under development. Kimco Realty Corp. has a market cap of $4.26 billion; its shares were traded at around $11.33 with a P/E ratio of 7.7 and P/S ratio of 5.7. The dividend yield of Kimco Realty Corp. stocks is 2.1%. Kimco Realty Corp. had an annual average earning growth of 1.6% over the past 10 years.
Other income/(expense), net changed approximately $4.4 million to $0.3 million of income for the three months ended June 30, 2009, as compared to $4.1 million of expense for the three months ended June 30, 2008. This change is primarily due to an increase in the fair value of an embedded derivative instrument of approximately $7.7 million relating to the convertible option of the Valad notes, partially offset by a decrease of approximately $3.2 million relating to income from other investments recognized in 2008. Conversely, Other income/(expense), net changed approximately $3.7 million to $3.9 million of expense for the six months ended June 30, 2009, as compared to $0.2 million of expense for the six months ended June 30, 2008. This change is primarily due to (i) increased foreign conversion adjustments of approximately $5.4 million relating to various foreign investments which have US dollar functional currency and (ii) a decrease of approximately $3.2 million relating to income from other investments recognized in 2008, partially offset by (iii) an increase in the fair value of an embedded derivative instrument of approximately $5.5 million relating to the convertible option of the Valad notes.
Benefit/(provision) for income taxes changed approximately $10.6 million to a benefit of $2.3 million for the six months ended June 30, 2009, as compared to a provision of $8.3 million for the corresponding period in 2008. This change is primarily due to (i) a decrease in the tax provision of approximately $4.7 million resulting from equity income recognized in connection with the Albertsons investment during the six months ended June 30, 2008 as compared to the six months ended June 30, 2009, (ii) an income tax provision of approximately $3.1 million related to equity in income of real estate joint ventures during the six months ended June 30, 2008 and (iii) an income tax provision of approximately $2.0 million related to gains on sale of operating properties during the six months ended June 30, 2008.
Income from other real estate investments decreased $23.0 million and $35.7 million for the three and six months ended June 30, 2009, respectively, as compared to the corresponding periods in 2008. These decreases are primarily due to (i) a decrease from the Companys Preferred Equity Program of approximately $16.6 million and $27.7 million in contributed income for the three and six months ended June 30, 2009, respectively, including a decrease of approximately $10.7 million and $19.0 million in profit participation earned from capital transactions for the three and six months ended June 30, 2009, respectively, as compared to the corresponding periods in 2008 and (ii) a gain of approximately $7.2 million from the sale of the Companys interest in a real estate company located in Mexico during the three months ended June 30, 2008.
Equity in (loss)/income of real estate joint ventures, net decreased $35.8 million and $65.2 million for the three and six months ended June 30, 2009, respectively, as compared to the corresponding periods in 2008. These decreases are primarily the result of (i) the recognition of non-cash impairment charges of approximately $27.3 million recorded during the three and six months ended June 30, 2009, against the carrying value of the Companys investment in two unconsolidated joint ventures, (ii) the recognition of approximately $15.0 million during the six months ended June 30, 2008 from the Albertsons joint venture resulting from excess cash distributions, (iii) the recognition of approximately $7.5 million in income resulting from cash distributions received in excess of the Companys carrying value of its investment in an unconsolidated limited liability partnership during the corresponding six month period in 2008, (iv) lower gains on sales of joint venture investments of approximately $0.2 million and $2.1 million for the three and six months ended June 30, 2009, respectively, as compared to the corresponding periods in 2008 and (v) a decrease in occupancy levels within certain real estate joint venture investments.
Net loss attributable to the Company for the three and six months ended June 30, 2009 was $(134.7) million and $(96.2) million, respectively. Net income attributable to the Company for the three and six months ended June 30, 2008 was $94.4 million and $192.8 million, respectively. On a diluted per share basis, net (loss)/income attributable to the Company was $(0.40) and $(0.37) for the three and six month period ended June 30, 2009, respectively, as compared to $0.32 and $0.66 for the three and six month period ended June 30, 2008, respectively. These changes are primarily attributable to (i) the recognition of non-cash impairment charges aggregating approximately $176.5 million, resulting from continuing declines in the real estate markets and equity securities, (ii) a reduction in Income from other real estate investments, primarily due to a decrease in profit participation from the Companys Preferred Equity program, (iii) a decrease in interest, dividends and other investment income, primarily due to a decrease in realized gains from the sale of certain marketable securities during 2008, and (iv) lower gains on sales of development properties, partially offset by (v) an increase in revenues from rental properties primarily due to acquisitions of operating properties during 2008.
Read the The complete ReportKIM is in the portfolios of Third Avenue Management, Chris Davis of Davis Selected Advisers.
Kimco Realty Corp. together with its subsidiaries is a self-administered real estate investment trust and is one of the nation\'s largest owners and operators of neighborhood and community shopping centers. The company\'s portfolio of property interests includes neighborhood and community shopping center properties regional malls retail store leases parcels of undeveloped land and projects under development. Kimco Realty Corp. has a market cap of $4.26 billion; its shares were traded at around $11.33 with a P/E ratio of 7.7 and P/S ratio of 5.7. The dividend yield of Kimco Realty Corp. stocks is 2.1%. Kimco Realty Corp. had an annual average earning growth of 1.6% over the past 10 years.
Highlight of Business Operations:
Interest, dividends and other investment income decreased approximately $11.1 million and $28.4 million for the three and six months ended June 30, 2009, respectively, as compared to the corresponding periods in 2008. These decreases are primarily due to (i) a decrease in realized gains of approximately $1.5 for the three months ended June 30, 2009 and approximately $12.8 for the six months ended June 30, 2009 resulting from the sale of certain marketable securities during the corresponding period in 2008 as compared to 2009 and (ii) a decrease in interest and dividend income of approximately $9.0 million and $11.8 million for the three and six months ended June 30, 2009, respectively, primarily resulting from the sale of investments in marketable securities and reductions in dividends declared from certain marketable securities during 2009 and 2008.Other income/(expense), net changed approximately $4.4 million to $0.3 million of income for the three months ended June 30, 2009, as compared to $4.1 million of expense for the three months ended June 30, 2008. This change is primarily due to an increase in the fair value of an embedded derivative instrument of approximately $7.7 million relating to the convertible option of the Valad notes, partially offset by a decrease of approximately $3.2 million relating to income from other investments recognized in 2008. Conversely, Other income/(expense), net changed approximately $3.7 million to $3.9 million of expense for the six months ended June 30, 2009, as compared to $0.2 million of expense for the six months ended June 30, 2008. This change is primarily due to (i) increased foreign conversion adjustments of approximately $5.4 million relating to various foreign investments which have US dollar functional currency and (ii) a decrease of approximately $3.2 million relating to income from other investments recognized in 2008, partially offset by (iii) an increase in the fair value of an embedded derivative instrument of approximately $5.5 million relating to the convertible option of the Valad notes.
Benefit/(provision) for income taxes changed approximately $10.6 million to a benefit of $2.3 million for the six months ended June 30, 2009, as compared to a provision of $8.3 million for the corresponding period in 2008. This change is primarily due to (i) a decrease in the tax provision of approximately $4.7 million resulting from equity income recognized in connection with the Albertsons investment during the six months ended June 30, 2008 as compared to the six months ended June 30, 2009, (ii) an income tax provision of approximately $3.1 million related to equity in income of real estate joint ventures during the six months ended June 30, 2008 and (iii) an income tax provision of approximately $2.0 million related to gains on sale of operating properties during the six months ended June 30, 2008.
Income from other real estate investments decreased $23.0 million and $35.7 million for the three and six months ended June 30, 2009, respectively, as compared to the corresponding periods in 2008. These decreases are primarily due to (i) a decrease from the Companys Preferred Equity Program of approximately $16.6 million and $27.7 million in contributed income for the three and six months ended June 30, 2009, respectively, including a decrease of approximately $10.7 million and $19.0 million in profit participation earned from capital transactions for the three and six months ended June 30, 2009, respectively, as compared to the corresponding periods in 2008 and (ii) a gain of approximately $7.2 million from the sale of the Companys interest in a real estate company located in Mexico during the three months ended June 30, 2008.
Equity in (loss)/income of real estate joint ventures, net decreased $35.8 million and $65.2 million for the three and six months ended June 30, 2009, respectively, as compared to the corresponding periods in 2008. These decreases are primarily the result of (i) the recognition of non-cash impairment charges of approximately $27.3 million recorded during the three and six months ended June 30, 2009, against the carrying value of the Companys investment in two unconsolidated joint ventures, (ii) the recognition of approximately $15.0 million during the six months ended June 30, 2008 from the Albertsons joint venture resulting from excess cash distributions, (iii) the recognition of approximately $7.5 million in income resulting from cash distributions received in excess of the Companys carrying value of its investment in an unconsolidated limited liability partnership during the corresponding six month period in 2008, (iv) lower gains on sales of joint venture investments of approximately $0.2 million and $2.1 million for the three and six months ended June 30, 2009, respectively, as compared to the corresponding periods in 2008 and (v) a decrease in occupancy levels within certain real estate joint venture investments.
Net loss attributable to the Company for the three and six months ended June 30, 2009 was $(134.7) million and $(96.2) million, respectively. Net income attributable to the Company for the three and six months ended June 30, 2008 was $94.4 million and $192.8 million, respectively. On a diluted per share basis, net (loss)/income attributable to the Company was $(0.40) and $(0.37) for the three and six month period ended June 30, 2009, respectively, as compared to $0.32 and $0.66 for the three and six month period ended June 30, 2008, respectively. These changes are primarily attributable to (i) the recognition of non-cash impairment charges aggregating approximately $176.5 million, resulting from continuing declines in the real estate markets and equity securities, (ii) a reduction in Income from other real estate investments, primarily due to a decrease in profit participation from the Companys Preferred Equity program, (iii) a decrease in interest, dividends and other investment income, primarily due to a decrease in realized gains from the sale of certain marketable securities during 2008, and (iv) lower gains on sales of development properties, partially offset by (v) an increase in revenues from rental properties primarily due to acquisitions of operating properties during 2008.
Read the The complete ReportKIM is in the portfolios of Third Avenue Management, Chris Davis of Davis Selected Advisers.
