Kimco Swings To 4Q Loss On Write-Downs, Gives Weak View

   DOW JONES NEWSWIRES 
 

Kimco Realty Corp.'s (KIM) swung to a fourth-quarter net loss on $113.1 million of investment write-downs as the shopping center operator's results topped analysts' expectations.

But the real-estate investment trust projected 2009 FFO below estimates, anticipating $1.70 to $1.90 a share. Analysts surveyed by Thomson Reuters projected $2.22 for FFO, a key measure of profitability for REITs.

The industry has been struggling recently as the housing and commercial real-estate markets continue to slump amid the global recession and credit crunch. Retail-sales declines, which have occurred as consumers curb discretionary spending, translates into weaker retailers, more vacancies and increased difficulties for landlords, some carrying heavy debt loads.

Kimco reported a fourth-quarter net loss of $51.5 million, or 24 cents a share, compared with year-earlier net income of $83 million, or 28 cents a share. Funds from operations plunged to 4 cents from 53 cents. Both the bottom line and FFO were hurt by the 44 cents in write-downs.

Revenue increased 11% to $197 million.

Analysts polled by Thomson Reuters forecast earnings of 7 cents a share, funds from operations of 24 cents a share and revenue of $190 million.

Kimco signed 500 new leases totaling 1.3 million square feet in its shopping-center holdings. In its U.S. portfolio, the company signed 153 new leases and 250 renewals.

Shares of Kimco closed at $13.45 Wednesday and didn't trade premarket. The company's stock has lost two-thirds of its value since September and is down 26% this year alone.

-By John Kell and Tess Stynes, Dow Jones Newswires; 201-938-5285; [e-mail]