Kimco Realty Corp. (KIM, Financial) filed Amended Quarterly Report for the period ended 2009-09-30.
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 $4.7 billion; its shares were traded at around $12.48 with a P/E ratio of 8.6 and P/S ratio of 6.2. The dividend yield of Kimco Realty Corp. stocks is 2%. Kimco Realty Corp. had an annual average earning growth of 1.6% over the past 10 years.
Other income/(expense), net changed by approximately $6.0 million to $4.4 million of income for the three months ended September 30, 2009, as compared to the corresponding period in 2008. This change is primarily due to (i) increased gains from land sales of approximately $4.4 million, (ii) an increase in the fair value of an embedded derivative instrument relating to the convertible option of the Valad notes of approximately $6.3 million and (iii) an increase in foreign conversion adjustments of approximately $4.0 million relating to various foreign investments which have US dollar functional currency, partially offset by (iv) a decrease in income due to the receipt of $6.3 million in shares of Sears Holding Corp. common stock received as partial settlement of Kmart pre-petition claims during 2008 and (v) an increase in foreign withholding taxes. Other income/(expense), net changed by approximately $2.3 million to $0.5 million of income for the nine months ended September 30, 2009 as compared to the corresponding period in 2008. This change is primarily due to (i) increased gains from land sales of approximately $3.4 million and (ii) an increase in the fair value of an embedded derivative instrument relating to the convertible option of the Valad notes of approximately $12.7 million, partially offset by (iii) a decrease in foreign conversion adjustments of approximately $2.3 million relating to various foreign investments which have US dollar functional currency, (iv) the receipt of $6.3 million in shares of Sears Holding Corp. common stock received as partial settlement of Kmart pre-petition claims during 2008 and (v) an increase in foreign withholding taxes.
provision of $20.6 million for the corresponding period in 2008. These changes are primarily due to (i) a decrease in the tax provision of approximately $15.1 million and $19.8 million resulting from equity income recognized in connection with the Albertsons investment during the three and nine months ended September 30, 2009, respectively, as compared to the corresponding periods in 2008, (ii) an income tax provision of approximately $3.1 million related to equity in income of real estate joint ventures during the nine months ended September 30, 2008 and (iii) an income tax provision of approximately $2.0 million related to gains on sale of operating properties during the nine months ended September 30, 2008, partially offset by an increase in the tax provision of approximately $1.5 million and $2.0 million related to the income of a consolidated joint venture during the three and nine months ended September 30, 2009, respectively, as compared to the corresponding periods in 2008.
Income from other real estate investments decreased $14.8 million and $50.5 million for the three and nine months ended September 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 $9.0 million and $36.7 million in contributed income for the three and nine months ended September 30, 2009, respectively, including a decrease of approximately $4.7 million and $23.7 million in profit participation earned from capital transactions for the three and nine months ended September 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 September 30, 2008.
Equity in income of real estate joint ventures, net decreased $69.5 million and $134.7 million for the three and nine months ended September 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 $2.0 million and $29.3 million recorded during the three and nine months ended September 30, 2009, respectively, against the carrying value of the Companys investment in three unconsolidated joint ventures, (ii) the recognition of approximately $1.1 million and $3.1 million of equity in income from the Albertsons joint venture during the three and nine months ended September 30, 2009, respectively, as compared to $46.8 million and $61.8 million of equity in income recognized during the three and nine months ended September 30, 2008 from the Albertsons joint venture resulting from the sale of 121 properties in the joint venture, (iii) a decrease in income related to the recognition of approximately $8.5 million and $19.6 million in income resulting from cash distributions received in excess of the Companys carrying value of its investment in various unconsolidated limited liability partnerships during the corresponding three and nine month periods, respectively, in 2008, (iv) a decrease in income of $4.6 million and $10.5 million during the three and nine months ended September 30, 2009, respectively, from a joint venture which holds interests in extended stay residential properties primarily due to overall decreases in occupancy, (v) a decrease in profit participation of approximately $3.6 million and $8.3 million for the three and nine months ended September 30, 2009, respectively, as compared to the corresponding periods in 2009, resulting from the sale/transfer of operating properties from two joint venture investments, (vi) lower gains on sales of approximately $2.3 million for the nine months ended September 30, 2009, resulting from the sale of operating properties during the corresponding period in 2008 and (vii) a decrease in occupancy levels within certain real estate joint venture investments.
Net income/(loss) attributable to the Company for the three and nine months ended September 30, 2009 was $40.1 million and $(56.1) million, respectively. Net income attributable to the Company for the three and nine months ended September 30, 2008 was $108.6 million and $301.4 million, respectively. On a diluted per share basis, net income/(loss) attributable to the Company was $0.07 and $(0.27) for the three and nine month period ended September 30, 2009, respectively, as compared to $0.37 and $1.03 for the three and nine month period ended September 30, 2008, respectively. These changes are primarily attributable to (i) the recognition of non-cash impairment charges aggregating approximately $178.5 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 equity in income of joint ventures, primarily due to a decrease in income from the Albertsons investment, 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 2009 and 2008.
Read the The complete ReportKIM is in the portfolios of Third Avenue Management, Chris Davis of Davis Selected Advisers, John Paulson of Paulson & Co..
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 $4.7 billion; its shares were traded at around $12.48 with a P/E ratio of 8.6 and P/S ratio of 6.2. The dividend yield of Kimco Realty Corp. stocks is 2%. 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 increased approximately $2.1 million to $9.2 million for the three months ended September 30, 2009, respectively, as compared to $7.1 million for the corresponding period in 2008. This increase is primarily due to (i) an increase in realized gains of approximately $3.2 million resulting from the sale of certain marketable securities, partially offset by (ii) a decrease in interest and dividend income of approximately $1.1 million primarily resulting from the sale of investments in marketable securities and reductions in dividends declared from certain marketable securities during 2009 and 2008. Conversely, interest, dividends and other investment income decreased approximately $26.2 million to $22.4 million for the nine months ended September 30, 2009, as compared to $48.6 million for the corresponding period in 2008. This decrease is primarily due to (i) a decrease in realized gains of approximately $13.5 million for the nine months ended September 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 $12.8 million for the nine months ended September 30, 2009, as compared to the corresponding period in 2008, 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 by approximately $6.0 million to $4.4 million of income for the three months ended September 30, 2009, as compared to the corresponding period in 2008. This change is primarily due to (i) increased gains from land sales of approximately $4.4 million, (ii) an increase in the fair value of an embedded derivative instrument relating to the convertible option of the Valad notes of approximately $6.3 million and (iii) an increase in foreign conversion adjustments of approximately $4.0 million relating to various foreign investments which have US dollar functional currency, partially offset by (iv) a decrease in income due to the receipt of $6.3 million in shares of Sears Holding Corp. common stock received as partial settlement of Kmart pre-petition claims during 2008 and (v) an increase in foreign withholding taxes. Other income/(expense), net changed by approximately $2.3 million to $0.5 million of income for the nine months ended September 30, 2009 as compared to the corresponding period in 2008. This change is primarily due to (i) increased gains from land sales of approximately $3.4 million and (ii) an increase in the fair value of an embedded derivative instrument relating to the convertible option of the Valad notes of approximately $12.7 million, partially offset by (iii) a decrease in foreign conversion adjustments of approximately $2.3 million relating to various foreign investments which have US dollar functional currency, (iv) the receipt of $6.3 million in shares of Sears Holding Corp. common stock received as partial settlement of Kmart pre-petition claims during 2008 and (v) an increase in foreign withholding taxes.
provision of $20.6 million for the corresponding period in 2008. These changes are primarily due to (i) a decrease in the tax provision of approximately $15.1 million and $19.8 million resulting from equity income recognized in connection with the Albertsons investment during the three and nine months ended September 30, 2009, respectively, as compared to the corresponding periods in 2008, (ii) an income tax provision of approximately $3.1 million related to equity in income of real estate joint ventures during the nine months ended September 30, 2008 and (iii) an income tax provision of approximately $2.0 million related to gains on sale of operating properties during the nine months ended September 30, 2008, partially offset by an increase in the tax provision of approximately $1.5 million and $2.0 million related to the income of a consolidated joint venture during the three and nine months ended September 30, 2009, respectively, as compared to the corresponding periods in 2008.
Income from other real estate investments decreased $14.8 million and $50.5 million for the three and nine months ended September 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 $9.0 million and $36.7 million in contributed income for the three and nine months ended September 30, 2009, respectively, including a decrease of approximately $4.7 million and $23.7 million in profit participation earned from capital transactions for the three and nine months ended September 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 September 30, 2008.
Equity in income of real estate joint ventures, net decreased $69.5 million and $134.7 million for the three and nine months ended September 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 $2.0 million and $29.3 million recorded during the three and nine months ended September 30, 2009, respectively, against the carrying value of the Companys investment in three unconsolidated joint ventures, (ii) the recognition of approximately $1.1 million and $3.1 million of equity in income from the Albertsons joint venture during the three and nine months ended September 30, 2009, respectively, as compared to $46.8 million and $61.8 million of equity in income recognized during the three and nine months ended September 30, 2008 from the Albertsons joint venture resulting from the sale of 121 properties in the joint venture, (iii) a decrease in income related to the recognition of approximately $8.5 million and $19.6 million in income resulting from cash distributions received in excess of the Companys carrying value of its investment in various unconsolidated limited liability partnerships during the corresponding three and nine month periods, respectively, in 2008, (iv) a decrease in income of $4.6 million and $10.5 million during the three and nine months ended September 30, 2009, respectively, from a joint venture which holds interests in extended stay residential properties primarily due to overall decreases in occupancy, (v) a decrease in profit participation of approximately $3.6 million and $8.3 million for the three and nine months ended September 30, 2009, respectively, as compared to the corresponding periods in 2009, resulting from the sale/transfer of operating properties from two joint venture investments, (vi) lower gains on sales of approximately $2.3 million for the nine months ended September 30, 2009, resulting from the sale of operating properties during the corresponding period in 2008 and (vii) a decrease in occupancy levels within certain real estate joint venture investments.
Net income/(loss) attributable to the Company for the three and nine months ended September 30, 2009 was $40.1 million and $(56.1) million, respectively. Net income attributable to the Company for the three and nine months ended September 30, 2008 was $108.6 million and $301.4 million, respectively. On a diluted per share basis, net income/(loss) attributable to the Company was $0.07 and $(0.27) for the three and nine month period ended September 30, 2009, respectively, as compared to $0.37 and $1.03 for the three and nine month period ended September 30, 2008, respectively. These changes are primarily attributable to (i) the recognition of non-cash impairment charges aggregating approximately $178.5 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 equity in income of joint ventures, primarily due to a decrease in income from the Albertsons investment, 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 2009 and 2008.
Read the The complete ReportKIM is in the portfolios of Third Avenue Management, Chris Davis of Davis Selected Advisers, John Paulson of Paulson & Co..
