Exhibit 99.4 KIMCO REALTY CORPORATION AND SUBSIDIARIES PRO FORMA COMBINED FUNDS FROM OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1996 AND THE NINE MONTHS ENDED SEPTEMBER 30, 1997 ------------------------------------ The following unaudited Pro Forma Combined Funds from Operations for the year ended December 31, 1996 and the nine months ended September 30, 1997 give effect to the proposed Merger as if the Merger had occurred January 1, 1996. In addition, the Kimco Pro Forma columns for the year ended December 31, 1996 and the nine months ended September 30, 1997 assumes the completion, as of January 1, 1996, of the acquisition of 14 shopping center properties as previously reported in the Current Report on Form 8-K dated January 15, 1997, incorporated by reference herein. The Price REIT Pro Forma columns for the year ended December 31, 1996 and the nine months ended September 30,1997 assume the completion, as of January 1, 1996, of the acquisition of 12 shopping center properties as previously reported in the Current Report on Form 8-K/A dated November 13, 1997, incorporated by reference herein. Most industry analysts and equity real estate investment trusts ("REIT"), including the Company, generally consider Funds from Operations to be an appropriate supplemental measure of the performance of an equity REIT. Funds from Operations is defined as net income applicable to common shares before depreciation and amortization, extraordinary items, gains or losses on sales of real estate, plus Funds from Operations of unconsolidated joint ventures determined on a consistent basis. Funds from Operations does not represent cash generated from operating activities in accordance with generally accepted accounting principles and, therefore, should not be considered an alternative to net income as a measure of results of operations, or for cash flows from operations calculated in accordance with generally accepted accounting principles as a measure of liquidity. KIMCO REALTY CORPORATION AND SUBSIDIARIES PRO FORMA COMBINED FUNDS FROM OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1996 --------------- (Unaudited) (000's except per share data) Price Reit 1997 Property Acquisition Kimco Price Reit Pro Forma Price Reit Pro Forma Pro Forma Funds from Operations Pro Forma Historical Adjustments Pro Forma Adjustments Results ----------- ----------- ----------- ----------- ----------- ----------- Net Income $ 79,589 $ 16,919 $ 4,521 $ 21,440 $ 2,969 $ 103,998 Depreciation & amortization 29,985 11,876 5,536 17,412 (1,769) 45,628 Gain on Sale of Shopping Center Property (802) -- -- -- -- (802) Funds from Joint Venture Operations 1,146 661 -- 661 -- 1,807 Preferred Stock Dividends (16,136) -- -- -- (8,915) (25,051) ----------- ----------- ----------- ----------- ----------- ----------- Funds from Operations $ 93,782 $ 29,456 $ 10,057 $ 39,513 ($ 7,715) $ 125,580 =========== =========== =========== =========== =========== =========== Per Common Share $2.61 $3.44 $4.62 $2.63 ===== ===== ===== ===== Historical weighted average number of shares outstanding 35,906 8,560 8,560 ====== ===== ===== Pro forma weighted number of shares outstanding 47,792 ====== KIMCO REALTY CORPORATION AND SUBSIDIARIES PRO FORMA COMBINED FUNDS FROM OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 --------------------- (Unaudited) (000's, except per share data) Price Reit 1997 Property Acquisition Merger Combined Kimco Price Reit Pro Forma Price Reit Pro Forma Pro Forma Funds from Operations Pro Forma Historical Adjustments Pro Forma Adjustments Results ----------- ----------- ----------- ----------- ----------- ----------- Net Income $ 66,723 $ 19,899 $ 664 $ 20,563 $ 3,228 $ 90,514 Depreciation & amortization 23,522 11,201 2,992 14,193 (2,328) 35,387 Gain on Sale of Shopping Center Property (244) (2,787) -- (2,787) -- (3,031) Funds from Joint Venture Operations 850 537 -- 537 -- 1,387 Preferred Stock Dividends (13,827) -- -- -- (6,686) (20,513) ----------- ----------- ----------- ----------- ----------- ----------- Funds from Operations $ 77,024 $ 28,850 $ 3,656 $ 32,506 $ (5,786) $ 103,744 =========== =========== =========== =========== =========== =========== Per Common Share $2.12 $2.69 $3.03 $2.15 ===== ===== ===== ===== Historical weighted average number of shares outstanding 36,375 10,742 10,742 ====== ====== ====== Pro forma weighted number of shares outstanding 48,261 ======