Exhibit 99.1
Kimco Updates Financial Results Reflecting
FASB's Subsequent Deferral of Certain Provisions of SFAS No. 150
NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--Nov. 10, 2003--Kimco Realty
Corporation (NYSE: KIM), the nation's largest owner and operator of
neighborhood and community shopping centers, today announced that it
has updated its net income for the three and nine months ended
September 30, 2003, previously reported on October 23, 2003. The
Company's previously released operating results reflected a reduction
of approximately $2.0 million for the cumulative effect of adopting
SFAS No. 150 "Accounting for Certain Financial Instruments with
Characteristics of both Liabilities and Equity." This release updates
those operating results to reflect the November 7, 2003 release of
FASB Staff Position (FSP) FAS 150-3 that defers certain provisions of
SFAS No. 150 as they apply to mandatorily redeemable non-controlling
interests.
Reflecting the revised accounting treatment, third quarter net
income per diluted common share increased 50.9 percent to $0.80 from
$0.53 for the comparable period in 2002. For the nine months, net
income per diluted common share increased 18.8 percent to $1.90 from
$1.60 a year earlier. Kimco's previously announced funds from
operations (FFO), a widely accepted measure of REIT performance, is
not affected by this update.
In addition, management has provided a reconciliation from net
income of its previously issued guidance for FFO per share in the
fourth quarter of 2003 of $0.84 and for FFO per share in 2004 of
between $3.39 and $3.45 per share.
Kimco, a publicly-traded real estate investment trust, has
specialized in shopping center acquisitions, development and
management for over 35 years. Kimco owns and operates the nation's
largest portfolio of neighborhood and community shopping centers with
interests in 698 properties comprising approximately 100 million
square feet of leasable space located throughout 40 states, Canada and
Mexico. For further information refer to the Company's web site at
www.kimcorealty.com.
Safe Harbor Statement: The statements in this release, including
but not limited to the earning guidance provided, state the Company's
and management's hopes, 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 that could cause actual results to differ materially from
current expectations include general economic conditions, local real
estate conditions, increases in interest rates, increases in operating
costs and real estate taxes. 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, including but not limited to the Company's
report on Form 10-K for the year ended December 31, 2002. Copies of
each filing may be obtained from the Company or the SEC.
Kimco Realty Corporation
Condensed Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
------------ ----------- ------------ ----------
Real Estate Operations:
- -----------------------
Revenues from rental
property $ 120,259 $ 107,290 $ 357,634 $ 326,354
------------ ----------- ------------ ----------
Rental property
expenses:
Rent 2,787 2,633 8,358 8,469
Real estate taxes 16,452 15,437 46,751 45,905
Operating and
maintenance 11,874 10,516 40,666 32,668
------------ ----------- ------------ ----------
31,113 28,586 95,775 87,042
------------ ----------- ------------ ----------
Net operating income 89,146 78,704 261,859 239,312
Equity in income of
real estate joint
ventures, net 11,167 9,101 30,459 24,411
Minority interests in
income of
partnerships, net (2,347) (262) (5,743) (738)
Income from other real
estate investments 5,998 5,578 15,807 13,690
Mortgage financing
income 3,645 4,467 15,773 12,754
Management and other
fee income 4,259 2,521 10,822 9,060
Depreciation and
amortization (21,593) (17,931) (61,081) (53,260)
------------ ----------- ------------ ----------
Income from real
estate operations 90,275 82,178 267,896 245,229
------------ ----------- ------------ ----------
Other Investments:
- ------------------
Interest, dividends
and other investment
income 5,701 2,380 13,394 15,472
Other income / (loss),
net 273 2,372 (828) 6,257
------------ ----------- ------------ ----------
5,974 4,752 12,566 21,729
------------ ----------- ------------ ----------
Interest expense (26,419) (22,048) (74,020) (65,580)
General and
administrative
expenses (11,234) (7,918) (28,726) (23,067)
Gain on early
extinguishment of
debt -- -- 6,262 --
------------ ----------- ------------ ----------
Income from
continuing operations
before income taxes 58,596 56,964 183,978 178,311
Provision for income
taxes (1,171) (634) (3,686) (6,422)
------------ ----------- ------------ ----------
Income from continuing
operations 57,425 56,330 180,292 171,889
Discontinued
Operations:
- ------------
Income from
discontinued
operating properties 1,027 523 3,851 3,800
Gain on disposition of
operating properties,
net 28,053 966 30,465 1,512
------------ ----------- ------------ ----------
Income / (loss) from
discontinued
operations 29,080 1,489 34,316 5,312
------------ ----------- ------------ ----------
Gain on sale of
development
properties, net of
tax of $3,333,
$1,957, $6,134 and
$3,669,
respectively(1) 4,999 2,937 9,202 5,505
------------ ----------- ------------ ----------
Net income 91,504 60,756 223,810 182,706
Original issuance
costs associated
with the redemption
of preferred stock(1) -- -- (7,788) --
Preferred stock
dividends (2,909) (4,609) (11,759) (13,828)
------------ ----------- ------------ ----------
Net income available
to common
shareholders $ 88,595 $ 56,147 $ 204,263 $ 168,878
============ =========== ============ ==========
Per common share:
Income from continuing
operations:
- Basic $ 0.55 $ 0.52 $ 1.60 $ 1.57
============ =========== ============ ==========
- Diluted $ 0.54(2) $ 0.52 $ 1.59(2) $ 1.55
============ =========== ============ ==========
Net income:
- Basic $ 0.82 $ 0.54 $ 1.93 $ 1.62
============ =========== ============ ==========
- Diluted $ 0.80(2) $ 0.53 $ 1.90(2) $ 1.60
============ =========== ============ ==========
Income subject to
income taxes $ 11,167 $ 8,988 $ 25,315 $ 28,369
Note: Reclassifications: Certain amounts in the prior period have been
reclassified in order to conform with the current period's
presentation.
(1) Included in the calculation of income from continuing operations
per share.
(2) Reflects the potential impact if certain units were converted to
common stock at the beginning of the period. Income from
continuing operations and net income available to common
shareholders would be increased by $1,423 and $4,269 for the three
and nine months ended September 30, 2003, respectively, reflecting
the distributions associated with these units.
Kimco Realty Corporation
Funds From Operations
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
------------ ----------- ------------ ----------
Funds From Operations(1)
Net income $ 91,504 $ 60,756 $ 223,810 $ 182,706
Depreciation and
amortization 21,912 19,198 62,492 57,181
Depreciation and
amortization - real
estate joint
ventures 8,111 4,500 20,511 12,450
Gains on disposition
of operating
properties, net (28,053) (966) (30,465) (1,512)
Original issuance costs
associated with the
redemption of
preferred stock -- -- (7,788) --
Preferred stock
dividends (2,909) (4,609) (11,759) (13,828)
------------ ----------- ------------ ----------
Funds from
operations(1) $ 90,565 $ 78,879 $ 256,801 $ 236,997
============ =========== ============ ==========
Per common share:
- Basic $ 0.84 $ 0.75 $ 2.42 $ 2.27
============ =========== ============ ==========
- Diluted $ 0.82(2) $ 0.75 $ 2.38(2) $ 2.25
============ =========== ============ ==========
Weighted Average Share
Information Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
------------ ----------- ------------ ----------
Weighted average
shares -
- Basic 107,909 104,539 105,945 104,418
- Diluted 112,236(2) 105,491 109,888(2) 105,464
(1) Most industry analysts and equity REITs, including the Company,
generally consider funds from operations ("FFO") to be an
appropriate supplemental measure of the performance of an equity
REIT. FFO is defined as net income applicable to common shares
before depreciation and amortization, extraordinary items,
cumulative effect of accounting changes, gains or losses on sales
of operating real estate, plus the pro-rata amount of depreciation
and amortization of unconsolidated joint ventures determined on a
consistent basis. Given the nature of the Company's business as a
real estate owner and operator, the Company believes that FFO is
helpful to investors as a measure of its operational performance.
FFO does not represent cash generated from operating activities in
accordance with generally accepted accounting principles and
therefore should not be considered an alternative for net income
as a measure of liquidity. In addition, the comparability of the
Company's FFO with the FFO reported by other REITs may be affected
by the differences that exist regarding certain accounting
policies relating to expenditures for repairs and other recurring
items.
(2) Reflects the potential impact if certain units were converted to
common stock at the beginning of the period. Net income would be
increased by $1,423 and $4,269 for the three and nine months ended
September 30, 2003, respectively, reflecting the distributions
associated with these units.
Kimco Realty Corporation
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
September 30, December 31,
2003 2002
------------ ------------
Assets:
Operating real estate, net of accumulated
depreciation of $551,525 and $516,558,
respectively $ 2,746,726 $ 2,669,648
Investments and advances in real estate
joint ventures 447,412 390,484
Real estate under development 262,575 234,953
Other real estate investments 109,308 99,542
Mortgages and other financing receivables 79,161 94,024
Cash and cash equivalents 106,960 35,962
Marketable securities 43,876 66,992
Accounts and notes receivable 61,163 55,012
Other assets 126,480 110,261
------------ ------------
$ 3,983,661 $ 3,756,878
============ ============
Liabilities:
Notes payable $ 1,312,250 $ 1,302,250
Mortgages payable 205,954 230,760
Construction loans payable 62,420 43,972
Other liabilities, including minority
interests in partnerships 300,137 272,568
------------ ------------
1,880,761 1,849,550
------------ ------------
Stockholders' Equity:
Preferred stock, $1.00 par value, authorized
3,600,000 shares
Class A Preferred Stock, $1.00 par value,
authorized 345,000 shares issued and
outstanding 0 and 300,000 shares,
respectively -- 300
Aggregate liquidation preference $0 and
$75,000, respectively
Class B Preferred Stock, $1.00 par value,
authorized 230,000 shares issued and
outstanding 0 and 200,000 shares,
respectively -- 200
Aggregate liquidation preference $0 and
$50,000, respectively
Class C Preferred Stock, $1.00 par value,
authorized 460,000 shares issued and
outstanding 0 and 400,000 shares,
respectively -- 400
Aggregate liquidation preference $0 and
$100,000, respectively
Class F Preferred Stock, $1.00 par value,
authorized 700,000 shares issued and
outstanding 700,000 and 0 shares,
respectively 700 --
Aggregate liquidation preference $175,000
and $0, respectively
Common Stock, $.01 par value, authorized
200,000,000 shares issued and outstanding
110,331,759, and 104,601,828 shares,
respectively 1,103 1,046
Paid-in capital 2,139,319 1,984,820
Cumulative distributions in excess of net
income (48,213) (85,367)
------------ ------------
2,092,909 1,901,399
Accumulated other comprehensive income 11,085 7,401
Notes receivable from officer stockholders (1,094) (1,472)
------------ ------------
2,102,900 1,907,328
------------ ------------
$ 3,983,661 $ 3,756,878
============ ============
Reclassifications:
Certain amounts in the prior period have been reclassified in order to
conform with the current period's presentation.
Kimco Realty Corporation
Reconciliation of Projected Diluted Net Income Per Common Share to
Projected Funds From Operations Per Common Share
Projected Projected Range
Q4 2003 Full Year 2004
Low High
-------- -------
Projected diluted earnings per common share $0.59 $2.39 $2.45
Projected depreciation and amortization 0.20 0.78 0.78
Projected depreciation and amortization real
estate joint ventures 0.08 0.32 0.32
Projected preferred stock dividends (0.03) (0.10) (0.10)
--------- -------- -------
Projected FFO per diluted common share $0.84 $3.39 $3.45
========= ======== =======
CONTACT: Kimco Realty Corporation
Scott Onufrey, 516-869-7190
sonufrey@kimcorealty.com