Exhibit 99.1
KIMCO REALTY REPORTS RECORD FOURTH QUARTER AND FULL YEAR OPERATING RESULTS
Highlights:
- Funds From Operations Per Share Increased 22.2% to $0.55 for the Quarter
and Increased 13.0% to $2.00 for the Year
- Net Income Per Share Increased 40.6% to $0.45 for the Quarter and
Increased 20.6% to $1.52 for the Year
- Portfolio Occupancy Increased 40 Basis Points During the Quarter to
94.6%
NEW HYDE PARK, N.Y., Feb. 13 /PRNewswire-FirstCall/ -- Kimco Realty
Corporation (NYSE: KIM) today announced that net income for the quarter ended
December 31, 2005 increased 42.0 percent to $107.7 million compared to $75.8
million a year earlier. On a per share basis, net income increased 40.6 percent
to $0.45 from $0.32 reported for the fourth quarter last year. Funds from
operations ("FFO"), a widely accepted supplemental measure of REIT performance,
rose 23.0 percent to $127.5 million during the quarter from $103.6 million for
the same period last year. On a per share basis, fourth quarter FFO increased
22.2 percent to $0.55 from $0.45 a year ago. Funds from operations excludes
gains on dispositions of operating properties net of minority interests and
joint venture properties of approximately $19.0 million, or $0.08 per diluted
common share in 2005 and $4.5 million, or approximately $0.02 per share in 2004.
For the year ended December 31, 2005, net income was $363.6 million or $1.52
per share compared to $297.1 million, or $1.26 per share a year earlier. Funds
from operations rose 14.6 percent to $464.7 million from $405.3 million in the
year earlier period. On a diluted per common share basis, FFO increased 13.0
percent to $2.00 from $1.77 a year ago. Funds from operations for the current
year excludes gains on dispositions of operating properties net of minority
interests and joint venture properties of $45.4 million or approximately $0.19
per diluted common share and $19.4 million or approximately $0.08 per diluted
common share for the same period last year.
These operating results are consistent with the Company's objective of
generating a high level of income and FFO growth over time. Kimco's compound
annual growth rate in FFO per share is 10.7 percent in the 14 year period since
its initial public offering in 1991.
Funds from operations (FFO) is a supplemental non-GAAP financial measure
used as a standard in the real estate industry to measure and compare the
operating performance of real estate companies. A complete reconciliation
containing adjustments from GAAP net income to FFO is included in this release.
During the quarter, Kimco's parent portfolio occupancy increased to 94.6
percent from 94.2 percent at September 30, 2005 and 93.6 percent a year earlier.
Kimco's occupancy is the highest level in Company history. For the quarter,
Kimco signed 139 new leases in the portfolio totaling 936,000 square feet and 85
lease renewals totaling 462,000 square feet. Year to date the Company has signed
474 new leases in this portfolio totaling approximately 2.8 million square feet
and 339 lease renewals totaling 2.2 million square feet. The average increase in
base rent for new leases signed for same space leases was 18.7 percent and 12.2
percent for the quarter and twelve months ended December 31, 2005, respectively.
Occupancy in the Company's combined operating portfolio encompassing
approximately 109.5 million square feet of gross leasable area was 95.1 percent,
40 basis points higher than a year ago.
Acquisition Activity
As previously announced, Kimco completed more than $1.4 billion of property
acquisitions for the year and acquired equity interests in 138 properties
totaling $736.7 million for the fourth quarter. A summary of the transactions in
the fourth quarter is as follows:
- Kimco acquired interests in 23 U.S. retail properties totaling 1.6 million
square feet of gross leasable area. The properties are primarily located
in the densely populated, high growth Western, Mid- Atlantic and Northeast
regions.
- In Mexico, the Company commenced five new retail development projects and
acquired an interest in 57 net leased industrial properties by forming a
joint venture with American Industries.
- In Canada, the Company funded a preferred equity interest in a portfolio
of 29 properties.
- In the U.S., Kimco's preferred equity program funded six new investments
comprised of 19 properties.
- Kimco's merchant building subsidiary, Kimco Developers, Inc. (KDI),
acquired interests in five new development projects.
Kimco has acquired interests in 47 additional properties since the beginning
of the current year totaling approximately $316 million in the U.S., Canada and
Mexico as follows:
- Kimco acquired a portfolio of 19 shopping centers located in California,
Nevada and Hawaii for approximately $134 million. In aggregate the
properties total 1.7 million square feet of gross leasable area.
- Copperwood Village, a 350,000 square foot shopping center located in
Houston, Texas, was acquired for approximately $73.9 million. Anchor
tenants at the property include Michael's, Officemax, Marshall's and Bed
Bath & Beyond. This property was acquired for the Company's co- investment
program with UBS Wealth Management.
- An institutional partner's 80 percent equity interests in three properties
located in Columbia, Maryland, were acquired to be transferred to the
Company's co-investment program with UBS Wealth Management. The
properties, which total approximately 250,000 square feet, were acquired
for an aggregate purchase price of approximately $62.2 million.
- The Company entered into two sale leaseback transactions for approximately
$9.6 million.
- One net leased property was acquired in Mexico in the Company's joint
venture with American Industries for approximately $2.6 million. The
property is located in Saltillo and consists of 63,000 square feet of
gross leasable area.
- In Canada, Kimco funded two preferred equity investments totaling $23.1
million. One property is located in Toronto and 15 properties are located
in the Montreal metro area.
- In the U.S., Kimco funded five new preferred equity transactions for
shopping centers located in Texas totaling approximately $11.0 million.
Disposition Activity
As previously announced, the Company sold 11 properties during the quarter
including six from the Company's core portfolio, two from the Company's
co-investment programs and three properties from FNC Realty, the former Frank's
Nursery & Crafts stores. Also during the quarter, KDI sold one completed project
and portions of 11 additional developments. Subsequent to quarter end, Kimco
sold five properties for a total of approximately $13.7 million. The sales
included the disposition of three FNC locations, one property from the Kimsouth
portfolio and one property from the Company's core portfolio.
Earnings Guidance
As a result of the Company's strong operating results and continued success
finding attractive investments, management raised its range of FFO guidance to
$2.12 - $2.16 per share for the year ending December 31, 2006. This is an
increase in the low-end of the range of $0.03 per share as compared to the prior
guidance provided by management last quarter. A reconciliation of management's
projections from earnings per diluted common share to FFO per diluted common
share is included in this release.
Kimco Realty Corporation is a publicly traded real estate investment trust
that has specialized in shopping center acquisitions, development and management
for more than 45 years. The Company owns and operates the nation's largest
portfolio of neighborhood and community shopping centers with interests in 1,046
properties comprising approximately 132.0 million square feet of leasable space
located throughout 44 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 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, but are not limited to, (i)
general economic conditions, (ii) the inability of major tenants to continue
paying their rent obligations due to bankruptcy, insolvency or general downturn
in their business, (iii) local real estate conditions, (iv) increases in
interest rates, (v) 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, 2004. Copies of each filing
may be obtained from the Company or the SEC.
Contact:
Kimco Realty Corporation
Scott Onufrey
(516) 869-7190
sonufrey@kimcorealty.com
Kimco Realty Corporation
Consolidated Statements of Income
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
------------------------------ ------------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
Revenues from rental property $ 136,988 $ 122,263 $ 522,545 $ 507,641
------------ ------------ ------------ ------------
Rental property expenses:
Rent 2,596 2,533 10,267 10,794
Real estate taxes 18,006 17,193 67,022 65,530
Operating and maintenance 15,871 12,782 60,686 53,940
------------ ------------ ------------ ------------
36,473 32,508 137,975 130,264
------------ ------------ ------------ ------------
Net operating income 100,515 89,755 384,570 377,377
Income from other real estate
investments 15,982 9,712 57,943 30,127
Mortgage financing income 17,712 5,395 27,586 15,032
Management and other fee income 8,398 6,608 30,474 25,445
Depreciation and amortization (27,239) (24,512) (105,942) (99,616)
------------ ------------ ------------ ------------
115,368 86,958 394,631 348,365
Interest, dividends and other
investment income 10,743 5,573 28,350 18,702
Other income / (expense), net (3,954) (871) 5,393 10,124
Interest expense (35,228) (26,118) (127,711) (107,177)
General and administrative
expenses (17,967) (12,585) (56,803) (44,235)
Adjustment of property carrying
values -- (2,965) -- (2,965)
------------ ------------ ------------ ------------
68,962 49,992 243,860 222,814
Benefit (provision) for income
taxes 3,643 1,476 (430) (3,919)
Equity in income of real estate
joint ventures, net 20,313 16,593 77,454 56,385
Minority interests in income of
partnerships, net (1,735) (2,601) (12,446) (9,660)
Gain on sale of development
properties, net of tax of
$1,249, ($535), $10,824, and
$4,401, respectively 3,976 5,030 22,812 12,434
------------ ------------ ------------ ------------
Income from continuing
operations 95,159 70,490 331,250 278,054
------------ ------------ ------------ ------------
Discontinued Operations:
Income from discontinued
operating properties 497 1,992 5,725 8,324
Loss on operating properties
held for sale/sold (2,483) -- (5,098) (5,064)
Gain on disposition of operating
properties 14,494 3,325 28,918 15,823
------------ ------------ ------------ ------------
Income from discontinued
operations 12,508 5,317 29,545 19,083
------------ ------------ ------------ ------------
Gain on transfer of operating
properties(1) -- -- 2,301 --
Loss on transfer of operating
properties(1) -- -- (150) --
Gain on sale of operating
properties(1) -- -- 682 --
------------ ------------ ------------ ------------
-- -- 2,833 --
------------ ------------ ------------ ------------
Net income 107,667 75,807 363,628 297,137
Preferred stock dividends (2,909) (2,909) (11,638) (11,638)
------------ ------------ ------------ ------------
Net income available to common
shareholders $ 104,758 $ 72,898 $ 351,990 $ 285,499
============ ============ ============ ============
Per common share:
Income from continuing
operations:
- Basic $ 0.41 $ 0.30 $ 1.42 $ 1.20
============ ============ ============ ============
- Diluted (2) $ 0.40(2) $ 0.29(3) $ 1.40(3) $ 1.17(3)
============ ============ ============ ============
Net income:
- Basic $ 0.46 $ 0.32 $ 1.55 $ 1.28
============ ============ ============ ============
- Diluted (2) $ 0.45(2) $ 0.32(3) $ 1.52(3) $ 1.26(3)
============ ============ ============ ============
Income (loss) subject to
income taxes $ (2,633) $ 1,400 $ 32,920 $ 27,713
Three Months Ended Year Ended
December 31, December 31,
Weighted Average Share ------------------------------ ------------------------------
Information 2005 2004 2005 2004
- ----------------------------------- ------------ ------------ ------------ ------------
For earnings per share
calculations:
Weighted average shares -
- Basic 227,625 224,518 226,641 222,859
============ ============ ============ ============
- Diluted(2) 236,464(2) 229,255(3) 230,868(3) 227,143(3)
============ ============ ============ ============
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 in accordance with SEC guidelines.
(2) The potential impact if certain units were converted to common stock at
the beginning of the period. Net income would be increased by $1,739 for
the three months ended December 31, 2005.
(3) Reflects the potential impact if certain units were converted to common
stock at the beginning of the period. The impact of the conversion would
have an anti-dilutive effect on net income and therefore have not been
included.
Kimco Realty Corporation
Funds From Operations
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
------------------------------ ------------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
Funds From Operations(1)
Net income $ 107,667 $ 75,807 $ 363,628 $ 297,137
Gain on disposition of
operating properties,
net of minority interests (14,203) (3,325) (31,611) (15,390)
Gain on disposition of joint
venture operating properties (4,846) (1,186) (13,776) (4,045)
Depreciation and amortization 27,470 25,264 108,032 102,872
Depreciation and amortization -
real estate joint ventures 14,272 9,957 50,059 36,400
Preferred stock dividends (2,909) (2,909) (11,637) (11,638)
------------ ------------ ------------ ------------
Funds from operations(1) $ 127,451 $ 103,608 $ 464,695 $ 405,336
============ ============ ============ ============
Per common share:
- Basic $ 0.56 $ 0.46 $ 2.05 $ 1.82
============ ============ ============ ============
- Diluted (2) $ 0.55 $ 0.45 $ 2.00 $ 1.77
============ ============ ============ ============
Three Months Ended Year Ended
December 31, December 31,
Weighted Average Share ------------------------------ ------------------------------
Information 2005 2004 2005 2004
- ----------------------------------- ------------ ------------ ------------ ------------
Weighted average shares -
- Basic 227,625 224,518 226,641 222,859
============ ============ ============ ============
- Diluted (2) 236,464 234,022 235,634 231,909
============ ============ ============ ============
(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 on sales of operating real estate, plus the pro-rata
amount of depreciation and amortization of unconsolidated joint
ventures, net of minority interests, 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. Funds from operations would be
increased by $1,739 and $1,607 for the three months ended December 31,
2005 and 2004, respectively, and $6,693 and $6,113 for the year ended
December 31, 2005 and 2004, respectively, reflecting the distributions
associated with these units.
Kimco Realty Corporation
Consolidated Balance Sheets
(In thousands, except per share data)
December 31, December 31,
2005 2004
------------ ------------
Assets:
Operating real estate, net of accumulated
depreciation of $740,127 and 634,642,
respectively $ 3,209,158 $ 3,059,526
Investments and advances in real estate joint
ventures 735,648 595,175
Real estate under development 611,121 398,054
Other real estate investments 283,035 188,536
Mortgages and other financing receivables 132,675 140,717
Cash and cash equivalents 76,273 38,220
Marketable securities 206,452 123,771
Accounts and notes receivable 64,329 52,182
Other assets 215,945 153,416
------------ ------------
$ 5,534,636 $ 4,749,597
============ ============
Liabilities:
Notes payable $ 2,147,405 $ 1,608,925
Mortgages payable 315,336 353,071
Construction loans payable 228,455 156,626
Dividends payable 78,169 71,489
Other liabilities 255,213 216,195
------------ ------------
3,024,578 2,406,306
------------ ------------
Minority interests in partnerships 122,844 106,891
------------ ------------
Stockholders' Equity:
Preferred stock, $1.00 par value, authorized
3,600,000 shares Class F Preferred Stock,
$1.00 par value, authorized 700,000 shares
Issued and outstanding 700,000 shares 700 700
Aggregate liquidation preference $175,000
Common Stock, $.01 par value, authorized
300,000,000 shares
Issued and outstanding 228,059,056 and
224,852,812 shares, respectively 2,281 2,249
Paid-in capital 2,255,332 2,199,419
Retained earnings/(cumulative distributions
in excess of net income) 59,855 (3,749)
------------ ------------
Cumulative distributions in excess of net
income 2,318,168 2,198,619
Accumulated other comprehensive income 69,046 37,781
------------ ------------
2,387,214 2,236,400
------------ ------------
$ 5,534,636 $ 4,749,597
============ ============
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 Range
Full Year 2006
--------------------------
Low High
------------ ------------
Projected diluted earnings per common share $ 1.43 $ 1.53
Projected depreciation and amortization 0.50 0.50
Projected depreciation and amortization real
estate joint ventures, net of minority interests 0.25 0.25
Gain on disposition of operating properties (0.05) (0.10)
Gain on disposition of joint venture operating
properties, net of minority interests (0.01) (0.02)
------------ ------------
Projected FFO per diluted common share $ 2.12 $ 2.16
============ ============
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.
SOURCE Kimco Realty Corporation
-0- 02/13/2006
/CONTACT: Scott Onufrey, Kimco Realty Corporation, +1-516-869-7190,
sonufrey@kimcorealty.com /
/Web site: http://www.kimcorealty.com /
(KIM)