We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Kimco Realty Corporation | NYSE:KIM | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.14 | 0.74% | 19.10 | 19.395 | 18.91 | 19.05 | 6,729,038 | 21:00:05 |
- 10-Year Record High Leasing Volume Drives Strong Operating Results -
- Occupancy Nearing All-Time High -
- Board Authorizes $300 Million Share Repurchase Program -
Kimco Realty Corp. (NYSE:KIM) today reported results for the fourth quarter and year ended December 31, 2017.
Highlights - Fourth Quarter and Full Year 2017:
“We are pleased with the solid leasing spreads and positive operating results our team achieved in 2017. The strongest leasing activity in ten years raised our year-end occupancy to just shy of our all-time high, positioning us for continued success in 2018,” stated Conor Flynn, Chief Executive Officer of Kimco. “As we move forward, we will continue to build on these results while also taking steps to strengthen our portfolio in the rapidly changing retail environment.” Mr. Flynn continued, “Accelerating the divestiture of assets outside our core markets will allow us to concentrate our presence in target coastal markets, complete development projects underway and continue to invest in redevelopment, ultimately producing a stronger portfolio primed for sustained long-term growth.”
Financial Results
Net income available to common shareholders for the fourth quarter of 2017 was $73.5 million, or $0.17 per diluted share, compared to $66.7 million, or $0.16 per diluted share, for the fourth quarter 2016.
For the full year 2017, net income available to common shareholders was $372.5 million, or $0.87 per diluted share, compared to $332.6 million, or $0.79 per diluted share, for the full year 2016. The increase was due to:
Offset by:
NAREIT FFO was $160.1 million, or $0.38 per diluted share, for the fourth quarter 2017 compared to $163.0 million, or $0.38 per diluted share, for the fourth quarter 2016. NAREIT FFO for the fourth quarter of 2017 included $6.3 million of transactional charges (net of transactional income). This compares to $2.6 million of transactional income (net of transactional charges) in the fourth quarter of 2016.
For the full year 2017, NAREIT FFO was $655.6 million, or $1.55 per diluted share, compared to $555.7 million, or $1.32 per diluted share, for the full year 2016. NAREIT FFO for 2017 included $11.3 million of transactional income (net of transactional charges). This compares to $73.7 million of transactional charges (net of transactional income) recognized in 2016 NAREIT FFO.
FFO as adjusted available to common shareholders, which excludes the effects of non-operating impairments as well as transactional income and charges, was $166.4 million, or $0.39 per diluted share, for the fourth quarter 2017 compared to $160.4 million, or $0.38 per diluted share, for the fourth quarter 2016. For the full year 2017, FFO as adjusted was $644.2 million, or $1.52 per diluted share, compared to $629.4 million, or $1.50 per diluted share, for the full year 2016.
A reconciliation of net income to NAREIT FFO, FFO as adjusted and same-property NOI is provided in the tables accompanying this press release.
Operating Results
Investment Activity
Dispositions:
During the fourth quarter, the company sold 16 shopping centers for a gross sales price of $234.2 million. Kimco’s share of the sales price was $174.0 million.
For the full year 2017, the company’s dispositions included 38 shopping centers and 3 land parcels, totaling 4.4 million square feet, for a gross sales price of $565.7 million. Kimco’s share of the sales price was $430.4 million.
In January of 2018, Kimco completed the sales of three shopping centers totaling over $30 million. Currently, the company has approximately $300 million of properties under contract or with an accepted offer, and over $475 million of properties being marketed.
Acquisitions:
During the fourth quarter, Kimco acquired one shopping center and two adjacent parcels totaling 845,000 square feet for $140.6 million, including $43.0 million of mortgage debt.
As previously announced during the fourth quarter, Kimco added Whittwood Town Center, a 783,000-square-foot, grocery-anchored open-air shopping center on a 54-acre infill site in the densely populated Los Angeles suburb of Whittier, California, to its Signature Series portfolio. The center features Target, Vons, PetSmart, Cost Plus and 24 Hour Fitness, in addition to Kohl’s, Sears and J.C. Penney, which pay substantially below-market rents, with an aggregate mark-to-market opportunity of 560%. The $123 million purchase price was funded with 1031 Exchange proceeds along with the assumption of $43 million in mortgage debt, which was completed in the fourth quarter despite the offer having been accepted in April 2017.
In 2017, Kimco acquired three shopping centers and ten land parcels for $382.1 million of which $377.4 million represents the company’s pro-rata share.
Capital Activity
2018 Full Year Guidance
Net Income attributable to common shareholders (per diluted share): $0.66 to $0.74 NAREIT FFO and FFO as adjusted (per diluted share): $1.42 to $1.46Reconciliations are provided for these forward-looking non-GAAP metrics (NAREIT FFO and FFO as adjusted) in the tables accompanying this press release.
Operating Assumptions:
Same-property NOI (excluding redevelopments): 1.25% to 2.00% Net dispositions (7.50% to 8.00% blended cap rate): $700 million to $900 million Total redevelopment & development investment: $425 million to $525 millionThe following table outlines the key factors impacting 2018 FFO and FFO as adjusted guidance ranges, and accounts for the difference from the company’s 2017 reported FFO and FFO as adjusted:
Low High 2017 NAREIT FFO (per diluted share) $1.55 $1.55 Transactional activity $(0.03) $(0.03) 2017 FFO as adjusted (per diluted share) $1.52 $1.522017 activity impacting 2018:
Initial 2018 base:
$1.44 $1.44
Conference Call and Supplemental Materials
Kimco will hold its quarterly conference call on Thursday, February 15, 2018, at 10:00 a.m. Eastern Standard Time (EST). The call will include a review of the company’s fourth quarter and full year 2017 results as well as a discussion of the company’s strategy and expectations for the future. To participate, dial 1-888-317-6003 (Passcode: 8360092).
A replay will be available through May 15, 2018, by dialing 1-877-344-7529 (Passcode: 10114786). Access to the live call and replay will be available through the company's website at investors.kimcorealty.com.
About Kimco
Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is one of North America’s largest publicly traded owners and operators of open-air shopping centers. As of December 31, 2017, the company owned interests in 492 U.S. shopping centers comprising 83 million square feet of leasable space primarily concentrated in the top major metropolitan markets. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for 60 years. For further information, please visit www.kimcorealty.com, the company’s blog at blog.kimcorealty.com, or follow Kimco on Twitter at www.twitter.com/kimcorealty.
Safe Harbor Statement
The statements in this news release state the company’s and management’s intentions, beliefs, expectations or projections of the future and are forward-looking statements. It is important to note that the company’s actual results could differ materially from those projected in such forward-looking statements. Factors which may cause actual results to differ materially from current expectations include, but are not limited to, (i) general adverse economic and local real estate conditions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the company, (iv) the company’s ability to raise capital by selling its assets, (v) changes in governmental laws and regulations, (vi) the level and volatility of interest rates and foreign currency exchange rates and management’s ability to estimate the impact thereof, (vii) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and risks related to acquisitions not performing in accordance with our expectations, (viii) valuation and risks related to the company’s joint venture and preferred equity investments, (ix) valuation of marketable securities and other investments, (x) increases in operating costs, (xi) changes in the dividend policy for the company’s common stock, (xii) the reduction in the company’s income in the event of multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center, (xiii) impairment charges and (xiv) unanticipated changes in the company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity. Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the company’s SEC filings. Copies of each filing may be obtained from the company or the SEC.
The company refers you to the documents filed by the company from time to time with the SEC, specifically the section titled “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended December 31, 2016, as may be updated or supplemented in the company’s Quarterly Reports on Form 10-Q and the company’s other filings with the SEC, which discuss these and other factors that could adversely affect the company’s results. The company disclaims any intention or obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
NAREIT FFO: A supplemental non-GAAP measure utilized to evaluate the operating performance of real estate companies. The National Association of Real Estate Investment Trusts (“NAREIT”) defines funds from operations (“NAREIT FFO”) as net income/(loss) attributable to common shareholders computed in accordance with generally accepted accounting principles in the United States (“GAAP”), excluding (i) gains or losses from sales of operating real estate assets and change in control of interests, plus (ii) depreciation and amortization of operating properties and (iii) impairment of depreciable real estate and in substance real estate equity investments and (iv) after adjustments for unconsolidated partnerships and joint ventures calculated to reflect NAREIT FFO on the same basis.
The company considers NAREIT FFO an important supplemental measure of our operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present NAREIT FFO when reporting results. Comparison of our presentation of NAREIT FFO to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by such REITs.
FFO as Adjusted: A supplemental non-GAAP measure that the company believes is more reflective of its core operating performance and provides investors and analysts an additional measure to compare the company’s performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. FFO as adjusted is generally calculated by the Company as NAREIT FFO excluding certain transactional income and expenses and non-operating impairments which management believes are not reflective of the results within the company’s operating real estate portfolio.
Same-Property NOI: A supplemental non-GAAP measure of real estate companies’ operating performance and should not be considered an alternative to net income in accordance with GAAP or as a measure of liquidity. The company considers same-property NOI as an important operating performance measure because it is frequently used by securities analysts and investors to measure only the net operating income of properties that have been owned by the company for the entire current and prior year reporting periods. It excludes properties under development and pending stabilization; properties are deemed stabilized at the earlier of (i) reaching 90% leased or (ii) one year following a projects inclusion in operating real estate. Same-property NOI assists in eliminating disparities in net income due to the development, acquisition or disposition of properties during the particular period presented, and thus provides a more consistent performance measure for the comparison of the Company's properties.
Same-property NOI is calculated using revenues from rental properties (excluding straight-line rent adjustments, lease termination fees, amortization of above/below market rents and includes charges for bad debt) less operating and maintenance expense, real estate taxes and rent expense plus the company’s proportionate share of same-property NOI from unconsolidated real estate joint ventures, calculated on the same basis. The company’s method of calculating same-property NOI may differ from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
Condensed Consolidated Balance Sheets (in thousands, except share information) (unaudited) December 31, December 31, 2017 2016 Assets: Operating real estate, net of accumulated depreciation of $2,433,053 and $2,278,292, respectively $ 9,817,875 $ 9,394,755 Investments in and advances to real estate joint ventures 483,861 504,209 Real estate under development 402,518 335,028 Other real estate investments 217,584 209,146 Mortgages and other financing receivables 21,838 23,197 Cash and cash equivalents 238,513 142,486 Marketable securities 13,265 8,101 Accounts and notes receivable, net 189,757 181,823 Other assets 378,515 431,855 Total assets $ 11,763,726 $ 11,230,600 Liabilities: Notes payable, net $ 4,596,140 $ 3,927,251 Mortgages payable, net 882,787 1,139,117 Dividends payable 128,892 124,517 Other liabilities 617,617 549,888 Total liabilities 6,225,436 5,740,773 Redeemable noncontrolling interests 16,143 86,953 Stockholders' equity: Preferred stock, $1.00 par value, authorized 5,996,240 and 6,029,100 shares, respectively 41,200 and 32,000 shares issued and outstanding (in series), respectively Aggregate liquidation preference $1,030,000 and $800,000, respectively 41 32 Common stock, $.01 par value, authorized 750,000,000 shares issued and outstanding 425,646,380 and 425,034,113 shares, respectively 4,256 4,250 Paid-in capital 6,152,764 5,922,958 Cumulative distributions in excess of net income (761,337 ) (676,867 ) Accumulated other comprehensive income (1,480 ) 5,766 Total stockholders' equity 5,394,244 5,256,139 Noncontrolling interests 127,903 146,735 Total equity 5,522,147 5,402,874Total liabilities and equity
$ 11,763,726 $ 11,230,600Condensed Consolidated Statements of Income (in thousands, except per share data) (unaudited)
Three Months EndedDecember 31,
Year Ended December 31, 2017 2016 2017 2016 Revenues Revenues from rental properties $ 310,632 $ 292,909 $ 1,183,785 $ 1,152,401 Management and other fee income 4,593 4,117 17,049 18,391 Total revenues 315,225 297,026 1,200,834 1,170,792 Operating expenses Rent 2,833 2,719 11,145 10,993 Real estate taxes 41,817 38,649 157,196 146,615 Operating and maintenance 39,925 40,544 142,787 140,910 General and administrative 32,060 27,462 118,455 117,302 Provision for doubtful accounts 1,429 (189 ) 5,630 5,563 Impairment charges 33,051 25,140 67,331 93,266 Depreciation and amortization 85,024 90,884 360,811 355,320 Total operating expenses 236,139 225,209 863,355 869,969 Operating income 79,086 71,817 337,479 300,823 Other (expense)/income Other (expense)/income, net (1,254 ) 2,249 2,559 5,425 Interest expense (52,126 ) (43,067 ) (191,956 ) (192,549 ) Early extinguishment of debt charges - - (1,753 ) (45,674 ) Income from continuing operations before income taxes, net, equity in income of joint ventures, net, gain on change in control of interests and equity in income from other real estate investments, net 25,706 30,999 146,329 68,025 (Provision)/benefit for income taxes, net (1,344 ) 747 880 (72,545 ) Equity in income of joint ventures, net 23,719 28,559 60,763 218,714 Gain on change in control of interests - 4,290 71,160 57,386 Equity in income of other real estate investments, net 5,049 5,241 67,001 27,773 Income from continuing operations 53,130 69,836 346,133 299,353 Gain on sale of operating properties, net of tax 31,436 10,850 93,538 86,785 Net income 84,566 80,686 439,671 386,138 Net loss/(income) attributable to noncontrolling interests 330 (2,413 ) (13,596 ) (7,288 ) Net income attributable to the Company 84,896 78,273 426,075 378,850 Preferred stock redemption charge - - (7,014 ) - Preferred dividends (11,431 ) (11,555 ) (46,600 ) (46,220 ) Net income available to the Company's common shareholders $ 73,465 $ 66,718 $ 372,461 $ 332,630 Per common share: Net income available to the Company: (2) Basic $ 0.17 $ 0.16 $ 0.87 $ 0.79 Diluted $ 0.17 (1) $ 0.16 (1) $ 0.87 (1) $ 0.79 (1) Weighted average shares: Basic 423,734 423,087 423,614 418,402 Diluted 424,088 424,249 424,019 419,709 (1) Reflects the potential impact if certain units were converted to common stock at the beginning of the period. The impact of the conversion would have an anti-dilutive effect on net income and therefore have not been included. (2) Adjusted for earnings attributable from participating securities of ($536) and ($524) for the three months ended December 31, 2017 and 2016, and ($2,132) and ($2,018) for the year ended December 31, 2017 and 2016, respectively.Reconciliation of Net Income Available to the Company's Common Shareholders to FFO and FFO as Adjusted Available to the Company's Common Shareholders (in thousands, except per share data) (unaudited) Three Months Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Net income available to the Company's common shareholders $ 73,465 $ 66,718 $ 372,461 $ 332,630 Gain on disposition of operating properties (31,436 ) (10,950 ) (92,830 ) (92,824 ) Gain on disposition of joint venture operating properties and change in control of interests (6,849 ) (14,880 ) (79,034 ) (217,819 ) Depreciation and amortization - real estate related 83,959 89,476 356,191 347,315 Depreciation and amortization - real estate jv's 9,835 9,477 39,248 45,098 Impairments of operating properties 32,854 24,125 65,148 101,928 (Benefit)/provision for income taxes (2) - (1,227 ) (39 ) 39,570 Noncontrolling interests (2) (1,688 ) 245 (5,583 ) (182 ) Funds from operations available to the Company's common shareholders 160,140 162,984 655,562 555,716 Transactional expense/(income), net 6,251 (2,565 ) (11,327 ) 73,689 Funds from operations available to the Company's common shareholders as adjusted $ 166,391 $ 160,419 $ 644,235 $ 629,405 Weighted average shares outstanding for FFO calculations: Basic 423,734 423,087 423,614 418,402 Units 961 841 852 853 Dilutive effect of equity awards 354 1,162 405 1,307 Diluted 425,049 (1) 425,090 (1) 424,871 (1) 420,562 (1) FFO per common share - basic $ 0.38 $ 0.39 $ 1.55 $ 1.33 FFO per common share - diluted $ 0.38 (1) $ 0.38 (1) $ 1.55 (1) $ 1.32 (1) FFO as adjusted per common share - diluted $ 0.39 (1) $ 0.38 (1) $ 1.52 (1) $ 1.50 (1) (1) Reflects the potential impact if certain units were converted to common stock at the beginning of the period. Funds from operations would be increased by $274 and $229 for the three months ended December 31, 2017 and 2016, and $923 and $881 for the year ended December 31, 2017 and 2016, respectively. (2) Related to gains, impairments and depreciation on operating properties, where applicable. FFO is a widely accepted supplemental measure of REIT performance with the standards established by the National Association of Real Estate Investment Trusts (NAREIT). Given the company’s business as a real estate owner and operator, Kimco believes that FFO and FFO as adjusted is helpful to investors as a measure of its operating performance. NAREIT defines FFO as net income/(loss) attributable to common shareholders computed in accordance with generally accepted accounting principles, excluding (i) gains or losses from sales of operating real estate assets and change in control of interests and (ii) extraordinary items, plus (iii) depreciation and amortization of operating properties and (iv) impairment of depreciable real estate and in substance real estate equity investments. Included in these items are also the company’s share of unconsolidated real estate joint ventures and partnerships. FFO as adjusted excludes the effects of non-operating impairments, transactional income and expenses.
Reconciliation of Net Income Available to the Company's Common Shareholders to Same Property NOI (in thousands) (unaudited) Three Months Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Net income available to the Company's common shareholders $ 73,465 $ 66,718 $ 372,461 $ 332,630 Adjustments: Management and other fee income (4,593 ) (4,117 ) (17,049 ) (18,391 ) General and administrative 32,060 27,462 118,455 117,302 Impairment charges 33,051 25,140 67,331 93,266 Depreciation and amortization 85,024 90,884 360,811 355,320 Interest and other expense, net 53,380 40,818 191,150 232,798 Provision/(benefit) for income taxes, net 1,344 (747 ) (880 ) 72,545 Gain on change in control of interests - (4,290 ) (71,160 ) (57,386 ) Equity in income of other real estate investments, net (5,049 ) (5,241 ) (67,001 ) (27,773 ) Gain on sale of operating properties, net of tax (31,436 ) (10,850 ) (93,538 ) (86,785 ) Net (loss)/income attributable to noncontrolling interests (330 ) 2,413 13,596 7,288 Preferred stock redemption charge - - 7,014 - Preferred stock dividends 11,431 11,555 46,600 46,220 Non same property net operating income (27,390 ) (20,555 ) (85,681 ) (108,248 ) Non-operational expense/(income) from joint ventures, net 9,360 8,474 72,970 (58,563 ) Same Property NOI $ 230,317 $ 227,664 $ 915,079 $ 900,223 Same Property NOI is a supplemental non-GAAP financial measure of real estate companies’ operating performance and should not be considered an alternative to net income in accordance with GAAP or as a measure of liquidity. Same Property NOI is considered by management to be important performance measure of Kimco's operations, and management believes that this measure is frequently used by securities analysts and investors as a measure of Kimco's operating performance as this measure includes only the net operating income of properties that have been owned for the entire current and prior year reporting periods including those properties under redevelopment and exclude properties under development and pending stabilization. As such, Same Property NOI assists in eliminating disparities in net income due to the development, acquisition or disposition of properties during the particular periods presented, and thus provides a more consistent performance measure for the comparison of the operating performance of Kimco's properties. Same Property NOI is calculated using revenues from rental properties (excluding straight-line rent adjustments, lease termination fees and above/below market rents) less charges for bad debt, less operating and maintenance expense, real estate taxes and rent expense, plus Kimco's proportionate share of Same Property NOI from unconsolidated real estate joint ventures, calculated on the same basis. Same Property NOI includes all properties that are owned for the entire current and prior year reporting periods and excludes properties under development and properties pending stabilization. Properties are deemed stabilized at the earlier of (i) reaching 90% leased or (ii) one year following their inclusion in operating real estate. Kimco’s method of calculating Same Property NOI may differ from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
Reconciliation of Diluted Net Income Available to Common Shareholders Per Common Share to Diluted Funds From Operations Available to Common Shareholders Per Common Share (unaudited) Actual Projected Range 2017 Full Year 2018
Low
High
Projected diluted net income available to common shareholder $ 0.87 $ 0.66 $ 0.74 per common share Projected depreciation & amortization 0.84 0.77 0.80 Projected depreciation & amortization real estate joint ventures, net of noncontrolling interests 0.09 0.08 0.10 Gain on disposition of operating properties (0.22 ) (0.08 ) (0.16 ) Gain on disposition of joint venture operating properties, net of noncontrolling interests, and change in control of interests (0.18 ) (0.01 ) (0.02 ) Impairments of operating properties 0.16 - - Provision/(benefit) for income taxes - - - Noncontrolling interests (0.01 ) - - Projected FFO per diluted common share $ 1.55 $ 1.42 $ 1.46 Transactional charges, net (0.03 ) - - Projected FFO, as adjusted per diluted common share $ 1.52 $ 1.42 $ 1.46 Projections involve numerous assumptions such as rental income (including assumptions on percentage rent), interest rates, tenant defaults, occupancy rates, foreign currency exchange rates (such as the US-Canadian rate), selling prices of properties held for disposition, expenses (including salaries and employee costs), insurance costs and numerous other factors. Not all of these factors are determinable at this time and actual results may vary from the projected results, and may be above or below the range indicated. The above range represents management’s estimate of results based upon these assumptions as of the date of this press release.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180215005187/en/
Kimco Realty Corp.David F. Bujnicki, 1-866-831-4297Senior Vice President, Investor Relations and Strategydbujnicki@kimcorealty.com
1 Year Kimco Realty Chart |
1 Month Kimco Realty Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions