UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the quarterly period ended March 31, 2002

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the transition period from to
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Commission file number 1-10899
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Kimco Realty Corporation
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(Exact name of registrant as specified in its charter)

Maryland 13-2744380
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)

3333 New Hyde Park Road, New Hyde Park, NY 11042
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(Address of principal executive offices - zip code)

(516) 869-9000
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(Registrant's telephone number, including area code)

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(Former name, former address and former fiscal year, if changed since
last report)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes X No
----- ------

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of the latest practicable date.

104,404,725 shares outstanding as of April 30, 2002.

1 of 24

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Financial Statements -
Condensed Consolidated Balance Sheets as of March 31, 2002 and December
31, 2001.

Condensed Consolidated Statements of Income for the Three Months Ended
March 31, 2002 and 2001.

Condensed Consolidated Statements of Comprehensive Income for the Three
Months Ended March 31, 2002 and 2001.

Condensed Consolidated Statements of Cash Flows for the Three Months Ended
March 31, 2002 and 2001.

Notes to Condensed Consolidated Financial Statements.

Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations

The following discussion should be read in conjunction with the
accompanying Condensed Consolidated Financial Statements and Notes thereto.
These unaudited financial statements include all adjustments which are, in the
opinion of management, necessary to reflect a fair statement of the results for
the interim periods presented, and all such adjustments are of a normal
recurring nature.

Results of Operations

Revenues from rental property decreased $5.6 million or 4.6% to $116.0
million for the three months ended March 31, 2002, as compared with $121.6
million for the corresponding quarter ended March 31, 2001. This net decrease
resulted primarily from the combined effect of (i) an overall decrease in
shopping center portfolio occupancy to 86.6% at March 31, 2002 as compared to
92.5% at March 31, 2001 due primarily to the bankruptcy filing of Kmart
Corporation ("Kmart") and Ames Department Stores, Inc. ("Ames") and subsequent
rejection of leases resulting in a decrease of revenues of approximately $5.6
million as compared to the quarter ended March 31, 2001 and (ii) sales of
certain shopping center properties throughout 2001 and the three months ended
March 31, 2002, resulting in a decrease of revenues of approximately $3.2
million for the three months ended March 31, 2002 as compared to the
corresponding three month period in 2001, offset by (iii) acquisitions
throughout calendar year 2001 (three operating properties) providing incremental
revenues of $0.8 million and (iv) the completion of certain development and
redevelopment projects, tenant buyouts and new leasing within the portfolio
providing incremental revenues of approximately $2.4 million as compared to the
corresponding quarter ended March 31, 2001.

Rental property expenses, including depreciation and amortization,
decreased $1.6 million or 2.1% to $72.6 million for the three months ended March
31, 2002, as compared to $74.2 million for the corresponding quarter ended March
31, 2001. The rental property expense component of real estate taxes increased
approximately $1.7 million for the three months ended March 31, 2002, as
compared with the corresponding three month period in the preceding year. This
increase relates primarily to the payment of real estate taxes by the Company on
certain Kmart anchored locations where Kmart previously paid the real estate
taxes directly to the taxing authorities. The rental property expense component
of operating and maintenance decreased approximately $3.0 million for the three
months ended March 31, 2002, as compared with the corresponding three month
period in the preceding year primarily due to decreased snow removal costs.
Interest expense decreased $0.9 million for the quarter ended March 31, 2002, as
compared with the corresponding quarter in the preceding year. This decrease is
primarily due to reduced interest costs on the Company's floating-rate revolving
credit facility and remarketed reset notes during the quarter ended March 31,
2002, as compared to the corresponding quarter in the preceding year.

The Company has a non-controlling limited partnership interest in Kimco
Income REIT ("KIR"), a limited partnership established to invest in high quality
retail properties financed primarily through the use of individual non-recourse
mortgages. Equity in income of KIR increased $0.7 million to $3.6 million for
the three months ended March 31, 2002, as compared with $2.9 million for the
corresponding period in 2001. This increase is primarily due to the Company's
increased capital investment in KIR. The additional capital investments received
by KIR from the Company and its other institutional partners were used to
purchase additional shopping center properties throughout calendar year 2001 and
during the three months ended March 31, 2002.

Equity in income of other real estate joint ventures, net increased
$5.5 million to $7.0 million for the quarter ended March 31, 2002, as compared
to $1.5 million for the quarter ended March 31, 2001. This increase is primarily
attributable to the Montgomery Ward asset designation rights transaction and the
RioCan joint venture described below.

During March 2001, the Company, through a taxable REIT subsidiary,
formed a real estate joint venture (the "Ward Venture") in which the Company has
a 50% interest, for purposes of acquiring asset designation rights for
substantially all of the real estate property interests of the bankrupt estate
of Montgomery Ward LLC and its affiliates. These asset designation rights have
provided the Ward Venture the ability to direct the ultimate disposition of the
315 fee and leasehold interests held by the bankrupt estate, of which 283
transactions have been completed to date. During the three months ended March
31, 2002, the Ward Venture completed transactions on 12 properties, and the
Company has recognized net profits of approximately $2.5 million after provision
for income taxes. The pre-tax profits from the Ward Venture of approximately
$4.2 million are included in the Condensed Consolidated Statement of Income in
the caption Equity in income of other real estate joint ventures, net.

During October 2001, the Company formed a joint venture (the "RioCan
Venture") with RioCan Real Estate Investment Trust ("RioCan", Canada's largest
publicly traded REIT measured by gross leasable area ("GLA")), in which the
Company has a 50% interest, to acquire retail properties and development
projects in Canada. The acquisitions and development projects are sourced and
managed by RioCan and are subject to review and approval by a joint oversight
committee consisting of RioCan management and the Company's management
personnel. As of March 31, 2002, the RioCan Venture consists of nine shopping
center properties with GLA of approximately 2.0 million. For the quarter ended
March 31, 2002, the Company recognized income of approximately $0.9 million
which is included in the Condensed Consolidated Statement of Income in the
caption Equity in income of other real estate joint ventures, net.

Interest, dividends and other investment income increased approximately
$3.1 million during the quarter ended March 31, 2002, as compared to the same
period in 2001. This increase is primarily due to higher realized gains on the
sale of certain marketable equity and debt securities and increased interest
income related to certain real estate lending activities during the quarter
ended March 31, 2002.

Other income, net increased $3.1 million for the three months ended
March 31, 2002, as compared to the same period in 2001. This increase is
primarily due to pre-tax profits recognized by the Company in connection with
the Company's participation in a joint venture established for the purpose of
providing inventory liquidation services to a regional retailer in bankruptcy.

Effective January 1, 2001, the Company elected taxable REIT subsidiary
status for its wholly-owned development subsidiary ("KDI"). KDI is primarily
engaged in the ground-up development of neighborhood and community shopping
centers and the subsequent sale thereof upon completion. During the three months
ended March 31, 2002, KDI sold its recently completed project in Miamisburg, OH
and three out-parcels, in separate transactions, for approximately $13.1
million, which resulted in net gains of approximately $2.6 million after
provision for income taxes of approximately $1.7 million.

During the three months ended March 31, 2001, KDI sold its project in
Chandler, AZ for approximately $32.5 million, which resulted in a net gain of
approximately $3.5 million after provision for income taxes of approximately
$1.9 million.

Net income for the three months ended March 31, 2002 was $60.9 million
as compared to $56.1 million for the three months ended March 31, 2001,
representing an increase of $4.8 million. On a diluted per share basis, net
income improved $0.02 for the three month period ended March 31, 2002 as
compared to the corresponding quarter in the previous year. This improved
performance reflects the combined effect of profits from the Ward Venture and
increased contributions from the investments in KIR, the RioCan Venture and
other financing investments offset by the impact of tenant bankruptcies and
subsequent rejection of leases.

Tenant Concentration

The Company seeks to reduce its operating and leasing risks through
diversification achieved by the geographic distribution of its properties,
avoiding dependence on any single property, and a large tenant base. At March
31, 2002, the Company's five largest tenants include Kmart Corporation, Kohl's,
The Home Depot, TJX Companies and Wal-Mart, which represented approximately
8.8%, 3.2%, 2.6%, 2.0% and 1.7%, respectively, of the Company's annualized base
rental revenues.

On January 22, 2002, Kmart Corporation ("Kmart") filed for protection
under Chapter 11 of the U.S. Bankruptcy Code. As of the filing date, Kmart
occupied 69 locations (excluding the KIR portfolio which includes six Kmart
locations), representing 12.6% of the Company's annualized base rental revenues
and 13.3% of the Company's total shopping center GLA. On February 1, 2002, Kmart
rejected its leases at 15 locations. These 15 locations represent approximately
$16.3 million of annualized base rental revenues comprising approximately 1.6
million square feet of GLA. The average rent per square foot for these locations
was approximately $10.43. As of March 31, 2002, Kmart represented 8.8% of
annualized base rents and 11.2% of leased GLA. The Company is actively marketing
these locations to prospective tenants, however, no assurances can be provided
that these locations will be leased in the near term or at comparable rents
previously paid by Kmart. The Company generally will have the right to file
claims in connection with these rejected leases for lost rent equal to three
years of rental obligations as well as other amounts related to obligations
under the leases. Actual amounts to be received in satisfaction of these claims
will be subject to Kmart's final plan of reorganization and the availability of
funds to pay creditors such as the Company.

On March 8, 2002, Kmart announced it would be closing an additional 284
locations of which 17 of these locations are leased from the Company. The
Company had previously encumbered seven of these properties with individual
non-recourse mortgage loans. The annualized base rental revenues from these 17
locations is approximately $15.1 million. The annualized interest expense for
the seven encumbered properties is approximately $5.6 million. As of March 31,
2002, the Company has not been notified directly by Kmart as to the timing of
these store closings or whether the leases will be assigned or rejected. Until
such time as the leases are rejected in accordance with the bankruptcy
proceedings, Kmart remains obligated for payments of rent and operating expenses
at these locations and all other remaining locations.

Liquidity and Capital Resources

It is management's intention that the Company continually have access
to the capital resources necessary to expand and develop its business. As such,
the Company intends to operate with and maintain a conservative capital
structure with a level of debt to total market capitalization of 50% or less. As
of March 31, 2002, the Company's level of debt to total market capitalization
was 27%. In addition, the Company intends to maintain strong debt service
coverage and fixed charge coverage ratios as part of its commitment to
maintaining its investment-grade debt ratings. As of March 31, 2002, the Company
had a debt service coverage ratio of 4.0 times and a fixed charge coverage ratio
of 3.4 times. The Company may, from time to time, seek to obtain funds through
additional equity offerings, unsecured debt financings and/or mortgage
financings and other debt and equity alternatives in a manner consistent with
its intention to operate with a conservative debt structure.

Since the completion of the Company's IPO in 1991, the Company has
utilized the public debt and equity markets as its principal source of capital
for its expansion needs. Since the IPO, the Company has completed additional
offerings of its public unsecured debt and equity, raising in the aggregate over
$2.3 billion for the purposes of, among other things, repaying indebtedness,
acquiring interests in neighborhood and community shopping centers, funding
ground-up development projects, expanding and improving properties in the
portfolio and other investments.

The Company has a $250.0 million unsecured revolving credit facility,
which is scheduled to expire in August 2003. This credit facility has made
available funds to both finance the purchase of properties and meet any
short-term working capital requirements. As of March 31, 2002, there were no
borrowings outstanding under this credit facility.

The Company also has a $200.0 million medium-term notes ("MTN") program
pursuant to which it may, from time to time, offer for sale its senior unsecured
debt for any general corporate purposes, including (i) funding specific
liquidity requirements in its business, including property acquisitions,
development and redevelopment costs and (ii) managing the Company's debt
maturities.

In addition to the public equity and debt markets as capital sources,
the Company may, from time to time, obtain mortgage financing on selected
properties. As of March 31, 2002, the Company had over 380 unencumbered property
interests in its portfolio.

During May 2001, the company filed a shelf registration statement on
Form S-3 for up to $750.0 million of debt securities, preferred stock,
depositary shares, common stock and common stock warrants. As of March 31, 2002,
the Company had $625.7 million available for issuance under this shelf
registration statement.

In connection with its intention to continue to qualify as a REIT for
federal income tax purposes, the Company expects to continue paying regular
dividends to its stockholders. These dividends will be paid from operating cash
flows which are expected to increase due to increased investment in properties
and other real estate related opportunities, growth in operating income from the
existing portfolio and from other sources. Since cash used to pay dividends
reduces amounts available for capital investment, the Company generally intends
to maintain a conservative dividend payout ratio, reserving such amounts as it
considers necessary for the expansion and renovation of shopping centers in its
portfolio, debt reduction, the acquisition of interests in new properties and
other investments as suitable opportunities arise, and such other factors as the
Board of Directors considers appropriate.

The Company anticipates that cash flows from operations will continue
to provide adequate capital to fund its operating and administrative expenses,
regular debt service obligations and all dividend payments in accordance with
REIT requirements in both the short-term and long-term. In addition, the Company
anticipates that cash on hand, availability under its revolving credit facility,
issuance of equity and public debt, as well as other debt and equity
alternatives, will provide the necessary capital required by the Company. Cash
flows from operations increased to $78.0 million for the quarter ended March 31,
2002, as compared to $73.2 million for the corresponding period ended March 31,
2001.

Effects of Inflation

Many of the Company's leases contain provisions designed to mitigate
the adverse impact of inflation. Such provisions include clauses enabling the
Company to receive payment of additional rent calculated as a percentage of
tenants' gross sales above pre-determined thresholds, which generally increase
as prices rise, and/or escalation clauses, which generally increase rental rates
during the terms of the leases. Such escalation clauses often include increases
based upon changes in the consumer price index or similar inflation indices. In
addition, many of the Company's leases are for terms of less than 10 years,
which permits the Company to seek to increase rents to market rates upon
renewal. Most of the Company's leases require the tenant to pay an allocable
share of operating expenses, including common area maintenance costs, real
estate taxes and insurance, thereby reducing the Company's exposure to increases
in costs and operating expenses resulting from inflation. The Company
periodically evaluates its exposure to short-term interest rates and will, from
time to time, enter into interest rate protection agreements which mitigate, but
do not eliminate, the effect of changes in interest rates on its floating-rate
debt.

New Accounting Pronouncements

In July 2001, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standard ("SFAS") No. 142, Goodwill and Other
Intangible Assets ("FASB No. 142"). This statement addresses financial
accounting and reporting for intangible assets acquired, goodwill and other
intangible assets after their acquisition. This statement requires that goodwill
and intangible assets that have indefinite useful lives will not be amortized
but rather will be tested at least annually for impairment. In addition, FASB
No. 142 requires disclosures about the carrying amount of and changes in
goodwill from period to period. Goodwill and intangible assets acquired after
June 30, 2001 will be subject immediately to the provisions of this statement.
The provisions are effective for fiscal years beginning after December 15, 2001.
The impact of adopting this statement did not have a material impact on the
Company's financial position or results of operations.

In August 2001, the FASB issued SFAS No. 144, Accounting for the
Impairment or Disposal of Long-Lived Assets ("FASB No. 144"), which supercedes
SFAS No. 121. FASB No. 144 requires that long-lived assets that are to be
disposed of by sale be measured at the lower of book value or fair value less
cost to sell. FASB No. 144 retains the requirements of SFAS No. 121 regarding
impairment loss recognition and measurement. In addition, it requires that one
accounting model be used for long-lived assets to be disposed of by sale and
broadens the presentation of discontinued operations to include more disposal
transactions. FASB No. 144 is effective for fiscal years beginning after
December 15, 2001. The impact of adopting this statement did not have a material
impact on the Company's financial position or results of operations.

Forward-looking Statements

This quarterly report on Form 10-Q, together with other statements and
information publicly disseminated by the Company contains certain
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. The Company intends such forward-looking statements to be covered by
the safe harbor provisions for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995 and include this statement for
purposes of complying with these safe harbor provisions. Forward-looking
statements, which are based on certain assumptions and describe the Company's
future plans, strategies and expectations, are generally identifiable by use of
the words "believe," "expect," "intend," "anticipate," "estimate," "project" or
similar expressions. You should not rely on forward-looking statements since
they involve known and unknown risks, uncertainties and other factors which are,
in some cases, beyond the Company's control and which could materially affect
actual results, performances or achievements. Factors which may cause actual
results to differ materially from current expectations include, but are not
limited to, (i) general economic and local real estate conditions, (ii) the
inability of major tenants to continue paying their rent obligations due to
bankruptcy, insolvency or general downturn in their business, (iii) financing
risks, such as the inability to obtain equity or debt financing on favorable
terms, (iv) changes in governmental laws and regulations, (v) the level and
volatility of interest rates, (vi) the availability of suitable acquisition
opportunities and (vii) increases in operating costs. Accordingly, there is no
assurance that the Company's expectations will be realized.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

As of March 31, 2002, the Company had approximately $227.3 million of
floating-rate debt outstanding. The interest rate risk on $210.0 million of such
debt has been mitigated through the use of interest rate swap agreements (the
"Swaps") with major financial institutions. The Company is exposed to credit
risk in the event of non-performance by the counter-party to the Swaps. The
Company believes it mitigates its credit risk by entering into these Swaps with
major financial institutions. The Company believes the interest rate risk
represented by the remaining $17.3 million of floating-rate debt is not material
to the Company or its overall capitalization.

As of March 31, 2002, the Company had Canadian investments in
marketable securities in the amount of CAD $26.3 million (approximately USD
$16.9 million) and in real estate in the amount of CAD $53.3 million
(approximately USD $33.2 million). The foreign currency exchange risk has been
mitigated through the use of foreign currency forward contracts in the amount of
CAD $79.6 million (the "Forward Contracts") with major financial institutions.
The Company is exposed to credit risk in the event of non-performance by the
counter-party to the Forward Contracts. The Company believes it mitigates its
credit risk by entering into the Forward Contracts with major financial
institutions.

The Company has not, and does not plan to, enter into any derivative
financial instruments for trading or speculative purposes. As of March 31, 2002,
the Company had no other material exposure to market risk.

KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share information)

March 31, December 31,
2002 2001
----------- ------------

Assets:
Operating real estate, net of accumulated depreciation
of $470,684 and $452,878, respectively .............................................. $ 2,540,932 $ 2,543,956
Real estate under development ......................................................... 214,887 204,530
Investment and advances in KIR ........................................................ 169,469 170,641
Investments and advances in other real estate joint ventures .......................... 122,111 98,527
Mortgages and other financing receivables ............................................. 112,151 53,611
Investments in retail store leases .................................................... 9,519 9,885
Cash and cash equivalents ............................................................. 26,466 93,847
Marketable securities ................................................................. 86,382 82,997
Accounts and notes receivable ......................................................... 52,102 48,074
Other assets .......................................................................... 78,924 78,711
----------- -----------
$ 3,412,943 $ 3,384,779
=========== ===========

Liabilities:
Notes payable ......................................................................... $ 1,035,250 $ 1,035,250
Mortgages payable ..................................................................... 302,330 292,829
Other liabilities, including minority interests in partnerships ....................... 180,042 166,616

----------- -----------
1,517,622 1,494,695
----------- -----------

Stockholders' Equity:
Preferred stock, $1.00 par value, authorized 5,000,000 shares
Class A Preferred Stock, $1.00 par value, authorized 345,000 shares
Issued and outstanding 300,000 shares ............................................. 300 300
Aggregate liquidation preference $75,000
Class B Preferred Stock, $1.00 par value, authorized 230,000 shares
Issued and outstanding 200,000 shares ............................................. 200 200
Aggregate liquidation preference $50,000
Class C Preferred Stock, $1.00 par value, authorized 460,000 shares
Issued and outstanding 400,000 shares ............................................. 400 400
Aggregate liquidation preference $100,000
Class D Convertible Preferred Stock, $1.00 par value, authorized 700,000 shares
Issued and outstanding 0 and 92,390 shares, respectively .......................... - 92
Aggregate liquidation preference $0 and $23,098, respectively
Common stock, $.01 par value, authorized 200,000,000 shares
Issued and outstanding 104,361,920 and 103,352,570 shares, respectively ........... 1,044 1,034
Paid-in capital ....................................................................... 1,980,043 1,976,442
Cumulative distributions in excess of net income ...................................... (91,115) (93,131)

----------- -----------
1,890,872 1,885,337
Accumulated other comprehensive income .................................................. 7,045 7,310
Notes receivable from officer stockholders .............................................. (2,596) (2,563)
----------- -----------
1,895,321 1,890,084
----------- -----------
$ 3,412,943 $ 3,384,779
=========== ===========

The accompanying notes are an integral part of these condensed consolidated
financial statements.

KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three Months ended March 31, 2002 and 2001
(in thousands, except per share data)

2002 2001
--------- ---------

Revenues from rental property ........................................... $ 115,991 $ 121,601
--------- ---------
Rental property expenses:
Rent .................................................................. 3,505 3,456
Real estate taxes ..................................................... 16,101 14,375
Interest .............................................................. 21,845 22,775
Operating and maintenance ............................................. 12,332 15,376
Depreciation and amortization ......................................... 18,846 18,210
--------- ---------
72,629 74,192
--------- ---------
Income from rental property ...................................... 43,362 47,409
Income from investment in retail store leases ........................... 309 972
--------- ---------
43,671 48,381

Equity in income of KIR ................................................. 3,598 2,913
Equity in income of other real estate joint ventures, net ............... 7,025 1,457
Minority interests in income of partnerships, net ....................... (208) (441)
Management and other fee income ......................................... 3,346 2,165
Interest, dividends and other investment income ......................... 8,193 5,125
Other Income, net ....................................................... 3,871 789
General and administrative expenses ..................................... (7,532) (7,791)
--------- ---------
Income before gain on sale of development
properties and income taxes .................................... 61,964 52,598

Gain on sale of development properties .................................. 4,280 5,392
--------- ---------

Income before income taxes ....................................... 66,244 57,990

Provision for income taxes .............................................. (5,350) (1,937)
--------- ---------

Net income ...................................................... 60,894 56,053

Preferred stock dividends ............................................... (4,609) (6,569)
--------- ---------

Net income applicable to common shares .......................... $ 56,285 $ 49,484
========= =========

Net income per common share:
Basic ............................................................. $ 0.54 $ 0.52
========= =========
Diluted ........................................................... $ 0.53 $ 0.51
========= =========

The accompanying notes are an integral part of these condensed consolidated
financial statements.

KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months ended March 31, 2002 and 2001
(in thousands)

2002 2001
-------- --------

Net Income ......................................................... $ 60,894 $ 56,053
-------- --------

Other comprehensive income:
Unrealized gain (loss) on marketable securities ............... (1,744) 2,054
Unrealized gain (loss) on interest rate swaps ................. 1,248 (3,176)
Unrealized loss on foreign currency forward contracts ......... (58) -
Unrealized gain on warrants ................................... 289 -

-------- --------
Other comprehensive income ............................... (265) (1,122)
-------- --------

Comprehensive income ............................................... $ 60,629 $ 54,931
======== ========

The accompanying notes are an integral part of these condensed consolidated
financial statements.

KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months ended March 31, 2002 and 2001
(in thousands)

2002 2001
-------- --------

Cash flow provided by operations ............................................. $ 77,953 $ 73,182
-------- --------

Cash flow from investing activities:
Acquisition of and improvements to operating real estate ................ (14,783) (9,674)
Acquisition of and improvements to real estate under development ........ (18,124) (34,257)
Investment in marketable securities ..................................... (23,494) (4,250)
Proceeds from sale of marketable securities ............................. 22,963 9,761
Reimbursement of advances to joint ventures ............................. 1,382 -
Investments and advances to real estate joint ventures .................. (21,804) (29,459)
Redemption of minority interests in real estate partnerships ............ - (1,600)
Investments and advances to affiliated companies ........................ - (100)
Investment in mortgage loans receivable ................................. (65,313) -
Collection of mortgage loans receivable ................................. 6,473 -
Proceeds from sale of operating properties .............................. - 2,910
Proceeds from sale of development properties ............................ 13,138 35,300

-------- --------

Net cash flow used for investing activities ....................... (99,562) (31,369)

-------- --------
Cash flow from financing activities:
Principal payments on debt, excluding normal
amortization of rental property debt .................................. - (4,587)
Principal payments on rental property debt ............................... (1,699) (1,401)
Proceeds from mortgage financing ......................................... 11,200 -
Borrowings under revolving credit facility ............................... - 10,000
Dividends paid ........................................................... (58,798) (52,023)
Proceeds from issuance of stock .......................................... 3,525 12,464

-------- --------

Net cash flow used for financing activities ...................... (45,772) (35,547)

-------- --------

Change in cash and cash equivalents .............................. (67,381) 6,266
Cash and cash equivalents, beginning of period ............................... 93,847 19,097
-------- --------
Cash and cash equivalents, end of period ..................................... 26,466 25,363
======== ========

Interest paid during the period .............................................. $ 11,906 $ 13,009
======== ========

Supplemental schedule of noncash investing/financing activity:
Investment in real estate joint venture by issuance of stock ............. $ - $ 820
======== ========

Notes received upon exercise of stock options ............................ $ 528 $ -
======== ========

Declaration of dividends paid in succeeding period ....................... $ 57,425 $ 50,856
======== ========

The accompanying notes are an integral part of these condensed consolidated
financial statements.

KIMCO REALTY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS

------------

1. Interim Financial Statements

Principles of Consolidation -

The accompanying Condensed Consolidated Financial Statements include
the accounts of Kimco Realty Corporation (the "Company"), its subsidiaries, all
of which are wholly owned, and all partnerships in which the Company has a
controlling interest. The information furnished is unaudited and reflects all
adjustments which are, in the opinion of management, necessary to reflect a fair
statement of the results for the interim periods presented, and all such
adjustments are of a normal recurring nature. These Condensed Consolidated
Financial Statements should be read in conjunction with the financial statements
included in the Company's Annual Report on Form 10-K.

Certain 2001 amounts have been reclassified to conform to the 2002
financial statement presentation.

Income Taxes -

The Company and its qualified REIT subsidiaries file a consolidated
federal income tax return. The Company has made an election to qualify, and
believes it is operating so as to qualify, as a Real Estate Investment Trust (a
"REIT") for federal income tax purposes. Accordingly, the Company generally will
not be subject to federal income tax, provided that distributions to its
stockholders equal at least the amount of its REIT taxable income as defined
under the Code. However, in connection with the Tax Relief Extension Act of
1999, which became effective January 1, 2001, the Company is now permitted to
participate in certain activities which it was previously precluded from in
order to maintain its qualification as a REIT, so long as these activities are
conducted in entities which elect to be treated as taxable REIT subsidiaries
under the Code. As such, the Company will be subject to federal and state income
taxes on the income from these activities. During the three months ended March
31, 2002, the Company's provision for federal and state income taxes was
approximately $5.4 million relating to activities conducted in its taxable REIT
subsidiaries.

Earnings Per Share -

On October 24, 2001, the Company's Board of Directors declared a
three-for-two split (the "Stock Split") of the Company's common stock which was
effected in the form of a stock dividend paid on December 21, 2001 to
stockholders of record on December 10, 2001. All share and per share data
included in the accompanying Condensed Consolidated Financial Statements and
Notes thereto have been adjusted to reflect this Stock Split.

The following table sets forth the reconciliation of earnings and the
weighted average number of shares used in the calculation of basic and diluted
earnings per share (amounts presented in thousands except per share data):

Three Months Ended
March 31, 2002 March 31, 2001
-------------- --------------

Computation of Basic Earnings Per Share:

Net income applicable to common shares .................. $ 56,285 $ 49,484

Weighted average common shares outstanding .............. 104,299 94,959

Basic Earnings Per Share ................................ $ 0.54 $ 0.52
======== ========

Computation of Diluted Earnings Per Share:

Net income applicable to common shares .................. $ 56,285 $ 49,484
Dividends on Class D Convertible Preferred
Stock ................................................ - 1,960
-------- --------
Net income for diluted earnings per share ............... $ 56,285 $ 51,444
-------- --------

Weighted average common shares outstanding
- - Basic.................................................. 104,299 94,959

Effect of dilutive securities:
Stock options ...................................... 1,071 1,038
Assumed conversion of Class D Preferred
Stock to common stock ........................... 16 3,897
-------- --------
Shares for diluted earnings per share ................... 105,386 99,894
-------- --------

Diluted Earnings Per Share .............................. $ 0.53 $ 0.51
======== ========

New Accounting Pronouncements -

In July 2001, the Financial Accounting Standard Board ("FASB") issued
Statement of Financial Accounting Standard ("SFAS") No. 142, Goodwill and Other
Intangible Assets ("FASB No. 142"). This statement addresses financial
accounting and reporting for intangible assets acquired, goodwill and other
intangible assets after their acquisition. This statement requires that goodwill
and intangible assets that have indefinite useful lives will not be amortized
but rather will be tested at least annually for impairment. In addition, FASB
No. 142 requires disclosures about the carrying amount of and changes in
goodwill from period to period. Goodwill and intangible assets acquired after
June 30, 2001 will be subject immediately to the provisions of this statement.
The provisions are effective for fiscal years beginning after December 15, 2001.
The adoption of FASB No. 142 did not have a material impact on the Company's
financial position or results of operations.

In August 2001, the FASB issued SFAS No. 144, Accounting for the
Impairment or Disposal of Long-Lived Assets ("FASB No. 144"), which supercedes
SFAS No. 121. FASB No. 144 requires that long-lived assets that are to be
disposed of by sale be measured at the lower of book value or fair value less
cost to sell. FASB No. 144 retains the requirements of SFAS No. 121 regarding
impairment loss recognition and measurement. In addition, it requires that one
accounting model be used for long-lived assets to be disposed of by sale and
broadens the presentation of discontinued operations to include more disposal
transactions. FASB No. 144 is effective for fiscal years beginning after
December 15, 2001. The adoption of FASB No. 144 did not have a material impact
on the Company's financial position or results of operations.

2. Property Acquisitions / Other Investments

Property Acquisitions -

Effective January 1, 2001, the Company elected taxable REIT subsidiary
status for its wholly-owned development subsidiary ("KDI"). During the three
months ended March 31, 2002, KDI acquired two land parcels, in separate
transactions, for the ground-up development of shopping centers and subsequent
sale thereof upon completion for an aggregate purchase price of approximately
$6.3 million.

Other Investments -

During March 2001, the Company, through a taxable REIT subsidiary,
formed a joint venture (the "Ward Venture") in which the Company has a 50%
interest, for purposes of acquiring asset designation rights for substantially
all of the real estate property interests of the bankrupt estate of Montgomery
Ward LLC and its affiliates. These asset designation rights have provided the
Ward Venture the ability to direct the ultimate disposition of the 315 fee and
leasehold interests held by the bankrupt estate, of which 283 transactions have
been completed to date. The asset designation rights expire in June 2002 for the
leasehold positions and December 2004 for the fee owned locations. During the
marketing period, the Ward Venture will be responsible for all carrying costs
associated with the properties until the site is designated to a user.

During the three months ended March 31, 2002, the Ward Venture
completed transactions on 12 properties, and the Company has recognized net
profits of approximately $2.5 million after provision for income taxes. The
pre-tax profits from the Ward Venture of approximately $4.2 million are included
in the Condensed Consolidated Statement of Income in the caption Equity in
income of other real estate joint ventures, net.

During October 2001, the Company formed a joint venture (the "RioCan
Venture") with RioCan Real Estate Investment Trust ("RioCan", Canada's largest
publicly traded REIT measured by gross leasable area ("GLA")), in which the
Company has a 50% interest, to acquire retail properties and development
projects in Canada. The acquisitions and development projects are to be sourced
and managed by RioCan and are subject to review and approval by a joint
oversight committee consisting of RioCan management and the Company's management
personnel. During the three months ended March 31, 2002, the RioCan Venture
acquired five shopping center properties, in separate transactions, for an
aggregate purchase price of approximately $138.6 million Canadian dollars
("CAD") (approximately USD $86.6 million) including the assumption of
approximately CAD $91.9 million (approximately USD $57.6 million) in mortgage
debt encumbering four of the properties.

During March 2002, the Company provided an aggregate $65.0 million in
mortgage financings, in separate transactions, to two regional retailers. These
loans are collateralized with first mortgage liens on real estate owned by the
retailers.

3. Property Dispositions

During the three months ended March 31, 2002, KDI sold its recently
completed project in Miamisburg, OH and three out-parcels, in separate
transactions, for approximately $13.1 million, which resulted in net gains of
approximately $2.6 million after provision for income taxes of approximately
$1.7 million.

4. Investment and Advances in KIR

During 1998, the Company formed Kimco Income REIT ("KIR"), a limited
partnership established to invest in high quality retail properties financed
primarily through the use of individual non-recourse mortgages. The Company
holds a non-controlling limited partnership interest in KIR and accounts for its
investment in KIR under the equity method of accounting. The Company's equity in
income of KIR for the three months ended March 31, 2002 and 2001, was
approximately $3.6 million and $2.9 million, respectively.

In addition, KIR entered into a master management agreement with the
Company, whereby, the Company will perform services for fees relating to the
management, operation, supervision and maintenance of the joint venture
properties. For the three months ended March 31, 2002 and 2001, the Company
earned management fees of approximately $1.0 million and $0.8 million,
respectively.

5. Investment in Retail Store Leases

Income from the investment in retail store leases for the three months
ended March 31, 2002 and 2001 represents sublease revenues of approximately $3.7
million and $4.5 million, respectively, less related expenses of $3.0 million
and $3.1 million, respectively, and amounts, which in management's estimation,
reasonably provide for the recovery of the investment over a period representing
the expected remaining term of the retail store leases.

6. Financial Instruments - Derivatives and Hedging

The Company is exposed to the effect of changes in interest rates,
foreign currency exchange rate fluctuations and market value fluctuations of
equity securities. The Company limits these risks by following established risk
management policies and procedures including the use of derivatives.

The principal financial instruments currently used by the Company are
interest rate swaps, foreign currency exchange forward contracts and warrant
contracts. The Company, from time to time, hedges the future cash flows of its
floating-rate debt instruments to reduce exposure to interest rate risk
principally through interest rate swaps with major financial institutions. The
Company has interest-rate swap agreements on its $110.0 million floating-rate
medium-term note and on its $100.0 million floating-rate remarketed reset notes,
which have been designated and qualified as cash flow hedges. The Company has
determined that these swap agreements are highly effective in offsetting future
variable interest cash flows related to the Company's debt portfolio. For the
three months ended March 31, 2002, the change in the fair value of the interest
rate swaps was a gain of approximately $1.2 million which was recorded in Other
Comprehensive Income ("OCI"), a component of stockholders' equity, with a
corresponding liability reduction for the same amount.

During 2001, the Company entered into a foreign currency forward
contract on its Canadian investment in marketable securities in the amount of
approximately CAD $26.3 million (approximately USD $16.9 million). The Company
has designated this foreign currency forward contract as a fair value hedge. The
Company expects this forward contract to be highly effective in limiting its
exposure to the variability in the fair value of its Canadian investment as it
relates to changes in the exchange rate. The gain or loss on this forward
contract will be recognized currently in earnings and the gain or loss on the
Canadian investment attributable to changes in the exchange rate will be
recognized currently in earnings and shall adjust the carrying amount of the
hedged investment.

During 2001, the Company acquired warrants to purchase the common stock
of a Canadian REIT. The Company has designated the warrants as a cash flow hedge
of the variability in expected future cash outflows upon purchasing the common
stock. The Company has determined the hedged cash outflow is probable and
expected to occur prior to the expiration date of the warrants. The Company has
determined that the warrants are fully effective. For the three months ended
March 31, 2002, the change in fair value of the warrants was a gain of
approximately $0.3 million which was recorded in OCI with a corresponding asset
for the same amount.

As of March 31, 2002, the Company had foreign currency forward
contracts on its Canadian investments in real estate for an aggregate amount of
approximately CAD $53.3 million (approximately USD $33.2 million). The Company
has designated these foreign currency forward contracts as hedges of the foreign
currency exposure of its net investment in Canadian real estate operations. The
Company believes that these forward contracts are highly effective in reducing
the exposure to fluctuations in the exchange rate. The gains and losses on these
net investment hedges are recorded in OCI with a corresponding asset or
liability for the same amount. Similarly, the foreign currency translation gains
and losses on these Canadian investments attributable to changes in the exchange
rate will also be recorded in OCI.

The following table summarized the notional values and fair values of
the Company's derivative financial instruments as of March 31, 2002:

Fair Value
Hedge Type Notional Value Rate Maturity (in millions)
---------- -------------- ---- -------- -------------

Interest rate swaps - $210.0 million 2.35%- 8/02 ($2.6)
cash flow 6.615%

Foreign currency CAD $26.3 million 1.561 9/02 $0.4
forward - fair value

Warrants - cash flow 2,500,000 shares of CAD 9/06 $2.7
common stock $11.02

Foreign currency CAD $53.3 million 1.6020- 1/05- ($0.1)
forwards - net 1.6090 2/05
investment

As of March 31, 2002, these derivative instruments were reported at
their fair value as other liabilities of $2.7 million and other assets of $3.1
million. During the next 12 months, the Company expects to reclassify to
earnings as expense approximately $2.2 million of the current balance in
accumulated OCI primarily related to the fair value of the interest rate swaps.

7. Tenant Concentration

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

The Company is not presently involved in any litigation, nor to its
knowledge is any litigation threatened against the Company or its subsidiaries,
that in management's opinion, would result in any material adverse effect on the
Company's ownership, management or operation of its properties, or which is not
covered by the Company's liability insurance.

Item 2. Changes in Securities

None.

Item 3. Defaults upon Senior Securities

None.

Item 4. Submission of Matters to a Vote of Security Holders.

None.

Item 5. Other Information

Not Applicable

Item 6. Exhibits and Reports on Form 8-K

Exhibits -

4.1 Agreement to File Instruments

Kimco Realty Corporation (the "Registrant") hereby agrees to file with
the Securities and Exchange Commission, upon request of the Commission, all
instruments defining the rights of holders of long-term debt of the Registrant
and its consolidated subsidiaries, and for any of its unconsolidated
subsidiaries for which financial statements are required to be filed, and for
which the total amount of securities authorized thereunder does not exceed 10
percent of the total assets of the Registrant and its subsidiaries on a
consolidated basis.

Form 8-K -
None.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

KIMCO REALTY CORPORATION

May 10, 2002 /s/ Milton Cooper
- ------------------------ -----------------------------------------
(Date) Milton Cooper
Chairman of the Board

May 10, 2002 /s/ Michael V. Pappagallo
- ------------------------ ------------------------------------------
(Date) Michael V. Pappagallo
Chief Financial Officer