Kimco Realty Announces First Quarter 2013 Results - FFO Increases 6.5 Percent Per Share; Strong Same-Property NOI Growth of 4.0

  Kimco Realty Announces First Quarter 2013 Results - FFO Increases 6.5
  Percent Per Share; Strong Same-Property NOI Growth of 4.0 Percent - Highest
  Quarterly Increase Since 2007

Business Wire

NEW HYDE PARK, N.Y. -- May 01, 2013

Kimco Realty Corp. (NYSE: KIM) today reported results for the first quarter
ended March 31, 2013.

Highlights for the First Quarter 2013 and Subsequent Activity

  *Reported funds from operations (“FFO”) of $0.33 per diluted share for the
    first quarter 2013, representing an increase of 6.5 percent over the same
    period in 2012;
  *FFO as adjusted was $0.32 per diluted share for the first quarter 2013,
    compared to $0.31 per diluted share for the same period in 2012;
  *Combined same-property net operating income (“NOI”) increased 4.0 percent
    from the first quarter 2012, representing the twelfth consecutive quarter
    with a positive increase;
  *Recognized 13.5 percent positive spread on new U.S. leases signed during
    the quarter;
  *Signed 693 new leases, renewals and options during the quarter totaling
    3.7 million square feet;
  *Completed the funding of Kimco’s 15 percent interest in the consortium
    that acquired five grocery banners from SUPERVALU Inc. (NYSE: SVU), as
    well as a minority interest in the outstanding common shares of SVU; and
  *Executed a purchase and sales agreement for the sale of a nine-property
    Mexican shopping center portfolio for a gross sales price of approximately
    US$271 million.

Financial Results

Net income available to common shareholders for the first quarter of 2013 was
$53.2 million, or $0.13 per diluted share, compared to $38.1 million, or $0.09
per diluted share, for the first quarter of 2012.

FFO, a widely accepted supplemental measure of REIT performance, was $134.9
million, or $0.33 per diluted share, for the first quarter of 2013, compared
to $126.2 million, or $0.31 per diluted share, for the first quarter of 2012.

FFO as adjusted, which excludes the effects of non-operating impairments and
transactional income and expenses, was $132.2 million, or $0.32 per diluted
share, for the first quarter of 2013, compared to $125.9 million, or $0.31 per
diluted share, for the first quarter of 2012.

A reconciliation of net income to FFO and FFO as adjusted is provided in the
tables accompanying this press release.

Shopping Center Operating Results

First quarter 2013 shopping center portfolio operating results:

Combined Shopping Center Portfolio (includes U.S., Canada and Latin America)

  *Pro-rata occupancy was 93.6 percent, an increase of 70 basis points over
    the first quarter of 2012;
  *Combined same-property NOI increased 4.0 percent over the first quarter of
    2012; and
  *Total leases executed in the combined portfolio: 693 new leases, renewals
    and options totaling 3.7 million square feet.

The combined same-property NOI increase of 4.0 percent represents twelve
consecutive quarters of positive same-property NOI, and the highest quarterly
increase since the fourth quarter of 2007. Kimco reports same-property NOI on
a cash-basis, excluding lease termination fees, and including charges for bad
debts.

U.S. Shopping Center Portfolio

  *Pro-rata occupancy was 93.7 percent, an increase of 90 basis points over
    the first quarter of 2012;
  *U.S. same-property NOI increased 3.7 percent during the first quarter of
    2013, compared to the same period in 2012; and
  *Pro-rata U.S. cash-basis leasing spreads increased 3.8 percent; new leases
    increased 13.5 percent, and renewals/options increased 2.7 percent.

In addition, the U.S. shopping center portfolio’s pro-rata occupancy for small
shop space (defined as space of less than 10,000 square feet) was 84.0
percent, an increase of 170 basis points from the first quarter of 2012.

Investment Activity

Acquisitions:

As previously announced, during the first quarter of 2013, Kimco acquired or
increased its equity interests in eight retail properties totaling 1.5 million
square feet for approximately $221 million. First quarter acquisition activity
includes:

  *Purchased four properties that were either adjacent or in close proximity
    to an existing Kimco shopping center and are supported by an average
    household income of $121,000 within a three-mile radius, for a total
    purchase price of $76.0 million.
  *Acquired from existing joint venture partners the remaining interest in
    three shopping centers that are 97.5 percent occupied for a gross purchase
    price of $144.9 million.
  *Converted a Canadian retail preferred equity investment into a pari passu
    joint venture. Kimco holds a 55.5 percent interest in this 429,000 square
    foot shopping center.

Also in the first quarter of 2013, Kimco increased its ownership interest in
the Kimco Income Fund (KIF) joint venture portfolio from 15.2 percent to 29.8
percent through the acquisition of a minority partner’s interest for $19.9
million.

Dispositions:

As previously announced, Kimco sold two shopping centers, totaling 292,000
square feet, for a gross sales price of $10.3 million during the first
quarter. Currently, the company has 14 U.S. retail properties in contract
negotiations for approximately $111 million. Since Kimco’s Investor Day in
September 2010, the company has disposed of 110 properties, comprising 11.1
million square feet, for $835.6 million, including $194.1 million of mortgage
debt. The company’s share of the proceeds from these sales was $514.5 million.

Also during the first quarter, the company sold a non-retail urban property
located in Bronx, N.Y., for $3.6 million. In addition, Kimco anticipates
completing the sale of the InTown Suites extended-stay portfolio and two New
York City non-retail urban properties that are under contract during the
second quarter of 2013. These transactions are expected to generate proceeds
to the company of approximately $137 million.

Subsequent to the end of the first quarter of 2013, a purchase and sales
agreement was executed for the sale of a portfolio of nine Mexican shopping
centers to a local real estate operator for a gross sales price of 3.35
billion Mexican pesos (US$271 million), including mortgage debt of 574 million
Mexican pesos (US$46 million). Kimco holds a 47.6 percent interest in this
portfolio, which totals 2.6 million square feet and is approximately 91
percent occupied.

SUPERVALU:

As previously announced, Kimco, through wholly owned subsidiaries, invested a
total of approximately $71 million for its 15 percent interest in a consortium
that is participating in two previously announced transactions with SUPERVALU
Inc. The company invested $37 million toward the acquisition of the
Albertsons, Shaw’s, Jewel-Osco, Acme and Star Market banners from SUPERVALU
Inc., comprising 877 grocery locations for $3.3 billion. In addition, as part
of a tender offer, Kimco funded approximately $34 million for 8.2 million
common shares of SUPERVALU Inc. (NYSE: SVU), priced at $4 per share which
compares favorably to the current market price.

Dividend Declarations

Kimco’s board of directors declared a quarterly cash dividend of $0.21 per
common share, payable on July 15, 2013, to shareholders of record on July 3,
2013, representing an ex-dividend date of July 1, 2013.

The board of directors also declared quarterly dividends for the company’s
preferred shares as follows:

  *For the Class H depositary shares, each representing 1/100 of a share of
    6.90 percent Class H cumulative redeemable preferred shares, a quarterly
    dividend of $0.43125 per preferred depositary share will be paid on July
    15, 2013, to shareholders of record on July 2, 2013, representing an
    ex-dividend date of June 28, 2013;
  *For the Class I depositary shares, each representing 1/1000 of a share of
    6.00 percent Class I cumulative redeemable preferred shares, a quarterly
    dividend of $0.37500 per preferred depositary share will be paid on July
    15, 2013, to shareholders of record on July 2, 2013, representing an
    ex-dividend date of June 28, 2013.
  *For the Class J depositary shares, each representing 1/1000 of a share of
    5.50 percent Class J cumulative redeemable preferred shares, a quarterly
    dividend of $0.34375 per preferred depositary share will be paid on July
    15, 2013, to shareholders of record on July 2, 2013, representing an
    ex-dividend date of June 28, 2013.
  *For the Class K depositary shares, each representing 1/1000 of a share of
    5.625 percent Class K cumulative redeemable preferred shares, a quarterly
    dividend of $0.35156 per preferred depositary share will be paid on July
    15, 2013, to shareholders of record on July 2, 2013, representing an
    ex-dividend date of June 28, 2013.

2013 Revised Guidance

The company’s 2013 full-year guidance range for FFO as adjusted, which does
not include any estimate for transactional activities or non-operating
impairments, has been increased by raising the low end of the guidance range.
In addition, Kimco has increased its 2013 guidance range for the combined
same-property NOI. Kimco’s 2013 revised guidance is as follows:

                                Revised Guidance     Previous Guidance
FFO as adjusted per diluted         $1.29 - $1.33            $1.28 - $1.33
share:
Combined portfolio                  +50 to +75 basis         +50 to +75 basis
occupancy:                          points                   points
Combined same-property NOI:         +2.75 to +3.75           +2.5 to +3.5
                                    percent                  percent
                                                             

Conference Call and Supplemental Materials

Kimco will hold its quarterly conference call on Thursday, May 2, 2013, at
10:00 a.m. EDT. The call will include a review of the company’s first quarter
2013 results, as well as a discussion of the company’s strategy and
expectations for the future. To participate, dial 1-888-317-6003 (Passcode:
2655185).

A replay will be available through 9:00 a.m. EDT on June 3, 2013, by dialing
1-877-344-7529 (Passcode: 10026626). 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 owns and operates North America’s
largest portfolio of neighborhood and community shopping centers. As of March
31, 2013, the company owned interests in 895 shopping centers comprising 131
million square feet of leasable space across 44 states, Puerto Rico, Canada,
Mexico and South America. 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 more than 50 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, (vii) risks related to our international operations, (viii) the
availability of suitable acquisition and disposition opportunities, and risks
related to acquisitions not performing in accordance with our expectations,
(ix) valuation and risks related to our joint venture and preferred equity
investments, (x) valuation of marketable securities and other investments,
(xi) increases in operating costs, (xii) changes in the dividend policy for
the company’s common stock, (xiii) 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, (xiv) impairment
charges and (xv) 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 Securities and Exchange
Commission (SEC) filings, including but not limited to the company's Annual
Report on Form 10-K for the year ended December 31, 2012. 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, 2012, 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.

Condensed Consolidated Statements of Income
(in thousands, except share information)
(unaudited)

                                            Three Months Ended
                                             March 31,
                                             2013             2012
Revenues
Revenues from rental properties              $ 232,785         $ 214,564
Management and other fee income               8,393           9,425   
Total revenues                                 241,178           223,989
                                                                           
Operating expenses
Rent                                           3,325             3,263
Real estate taxes                              29,855            28,152
Operating and maintenance                      28,849            26,415
General and administrative expenses            34,119            34,414
Provision for doubtful accounts                1,960             3,097
Impairment charges                             3,198             233
Depreciation and amortization                 62,738          59,556  
Total operating expenses                      164,044         155,130 
                                                                           
Operating income                               77,134            68,859
                                                                           
Other income/(expense)
Mortgage financing income                      986               2,007
Interest, dividends and other investment       2,663             164
income
Other expense, net                             (3,485  )         (3,597  )
Interest expense                               (53,624 )         (57,283 )
Income from other real estate investments      403               727
                                                              
Income from continuing operations before
income taxes, equity in income of joint
ventures, gains on change in control of        24,077            10,877
interests and equity in income from other
real estate investments
                                                                           
Provision for income taxes, net                (15,133 )         (4,054  )
Equity in income of joint ventures, net        24,111            34,738
Gains on change in control of interests        23,170            2,008
Equity in income of other real estate          11,163            11,027
investments, net
                                                              
Income from continuing operations             67,388          54,596  
                                                                           
Discontinued operations
Income from discontinued operating             115               1,497
properties, net of tax
Impairment/loss on operating properties        (31     )         (8,924  )
sold, net of tax
Gain on disposition of operating              2,496           11,979  
properties
Income from discontinued operations           2,580           4,552   
                                                                           
Gain on sale of operating properties, net     540             -       
of tax (1)
                                                                           
Net income                                     70,508            59,148
                                                                           
Net income attributable to noncontrolling      (2,738  )         (5,510  )
interests (3)
                                                              
Net income attributable to the Company         67,770            53,638
                                                                           
Preferred stock dividends                     (14,573 )        (15,574 )
                                                                           
Net income available to the Company's        $ 53,197         $ 38,064  
common shareholders
                                                                           
Per common share:
Income from continuing operations: (3)
Basic                                        $ 0.12           $ 0.09    
Diluted                                      $ 0.12     (2)   $ 0.09     (2)
Net income: (4)
Basic                                        $ 0.13           $ 0.09    
Diluted                                      $ 0.13     (2)   $ 0.09     (2)
                                                              
Weighted average shares:
Basic                                         406,662         406,272 
Diluted                                       407,666         407,279 

(1)  Included in the calculation of income from continuing operations per
      common share in accordance with SEC guidelines.
      Reflects the potential impact if certain units were converted to common
(2)   stock at the beginning of the period. The impact of the conversion would
      have an anti-dilutive effect on net income and therefore has not been
      included.
      Includes the net income attributable to noncontrolling interests related
(3)   to continued operations of ($2,750) and ($3,269) for the quarters ended
      March 31, 2013 and 2012, respectively.
(4)   Includes earnings attributable to unvested restricted shares of $390 and
      $338 for the quarters ended March 31, 2013 and 2012, respectively.


Condensed Consolidated Balance Sheets
(in thousands, except share information)
(unaudited)

                                               March 31,       December 31,
                                                2013             2012
Assets:
Operating real estate, net of accumulated
depreciation of $1,801,679 and $1,745,462,      $ 7,307,210      $ 7,104,562
respectively
Investments and advances in real estate joint     1,442,240        1,428,155
ventures
Real estate under development                     97,260           97,263
Other real estate investments                     334,082          317,557
Mortgages and other financing receivables         72,361           70,704
Cash and cash equivalents                         166,894          141,875
Marketable securities                             76,786           36,541
Accounts and notes receivable                     164,510          171,540
Other assets                                     400,492        383,037   
Total assets                                    $ 10,061,835    $ 9,751,234 
                                                                 
Liabilities:
Notes payable                                   $ 3,337,420      $ 3,192,127
Mortgages payable                                 1,113,653        1,003,190
Dividends payable                                 99,156           96,518
Other liabilities                                469,494        445,843   
Total liabilities                                5,019,723      4,737,678 
Redeemable noncontrolling interests              86,324         81,076    
                                                                 
Stockholders' equity:
Preferred stock, $1.00 par value, authorized
5,961,200 shares
102,000 shares issued and outstanding (in
series)
Aggregate liquidation preference $975,000         102              102
Common stock, $.01 par value, authorized
750,000,000 shares
issued and outstanding 408,622,972 and            4,086            4,078
407,782,102 shares, respectively
Paid-in capital                                   5,667,845        5,651,170
Cumulative distributions in excess of net         (856,620   )     (824,008  )
income
Accumulated other comprehensive income           (27,678    )    (66,182   )
Total stockholders' equity                        4,787,735        4,765,160
Noncontrolling interests                         168,053        167,320   
Total equity                                     4,955,788      4,932,480 
Total liabilities and equity                    $ 10,061,835    $ 9,751,234 


Reconciliation of Net Income Available to Common Shareholders
to Funds From Operations ("FFO")
(in thousands, except per share data)
(unaudited)

                                            Three Months Ended
                                             March 31,
                                             2013             2012
Net income available to common               $ 53,197          $ 38,064
shareholders
Gain on disposition of operating property,     (3,036  )         (9,390  )
net of tax and noncontrolling interests
Gain on disposition of joint venture           (13,303 )         (10,424 )
operating properties, net of tax
Depreciation and amortization - real           60,784            63,664
estate related
Depr. and amort. - real estate joint           32,961            34,042
ventures, net of noncontrolling interests
Impairments of operating properties, net      4,276           10,293  
of tax and noncontrolling interests
Funds from operations                          134,879           126,249
Transactional income, net                     (2,699  )        (361    )
Funds from operations as adjusted            $ 132,180        $ 125,888 
                                                                           
Weighted average shares outstanding for
FFO calculations:
Basic                                         406,662         406,272 
Units                                          1,524             1,531
Dilutive effect of equity awards              2,668           2,378   
Diluted                                       410,854  (1)    410,181  (1)
                                                                           
FFO per common share - basic                 $ 0.33           $ 0.31    
FFO per common share - diluted               $ 0.33     (1)   $ 0.31     (1)
FFO as adjusted per common share - diluted   $ 0.32     (1)   $ 0.31     (1)

(1) Reflects the potential impact if certain units were converted to common
stock at the beginning of the period, which would have a dilutive effect on
FFO. FFO would be increased by $640 and $525 for the three months ended March
31, 2013 and 2012, respectively. The impact of the conversion of other units
would have an anti-dilutive effect on FFO and therefore has not been included.

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 (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 Projected Diluted Net Income per Common Share
to Projected Diluted Funds From Operations ("FFO") per Common Share
(unaudited)

                                                        Projected Range
                                                         Full Year 2013
                                                         Low        High
Projected diluted net income available to common         $ 0.42      $ 0.46
shareholder per share
                                                                     
Projected depreciation & amortization                      0.61        0.63
                                                                     
Projected depreciation & amortization real estate          0.30        0.32
joint ventures, net of noncontrolling interests
                                                                     
Gain on disposition of operating properties                (0.01 )     (0.03 )
                                                                     
Gain on disposition of joint venture operating             (0.03 )     (0.05 )
properties, net of noncontrolling interests
                                                                     
Impairments of operating properties, net of tax and        0.01        0.01
noncontrolling interests
                                                                    
Projected FFO per diluted common share                   $ 1.30      $ 1.34
                                                                     
Transactional income, net                                  (0.01 )     (0.01 )
                                                                    
Projected FFO, as adjusted per diluted common share      $ 1.29     $ 1.33  

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.

Contact:

Kimco Realty Corporation
David F. Bujnicki, 1-866-831-4297
Vice President, Investor Relations and Corporate Communications
 
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