Exhibit 99.1
KIMCO REALTY REPORTS FIRST QUARTER OPERATING RESULTS
Highlights:
- Funds From Operations Increased 14.8% to $124.6 Million
- Funds From Operations Per Share Increased 12.8% to $0.53
- Net Income Increased 10.8% to $96.2 million
- Net Income Per Share Increased 11.1% to $0.40
- Active Development Projects Exceed $1.5 Billion
- Strong Investment Activity in Canada with Seven Transactions Closed
Comprising 30 Properties
- Kimco Added to the S&P 500 Index on March 31, 2006
NEW HYDE PARK, N.Y., April 25 /PRNewswire-FirstCall/ -- Kimco Realty
Corporation (NYSE: KIM) today announced net income for the first quarter ended
March 31, 2006 increased 10.8 percent to $96.2 million from $86.8 million a
year ago. On a diluted per common share basis, net income increased 11.1
percent to $0.40 from $0.36 in the first quarter of 2005. Kimco's first
quarter funds from operations ("FFO"), a widely accepted supplemental measure
of REIT performance, rose 14.8 percent to $124.6 million from $108.5 million
for the same period last year. On a diluted per common share basis, first
quarter FFO increased 12.8 percent to $0.53 from $0.47 a year ago.
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.
Kimco's parent portfolio occupancy remained high at 94.6 percent,
consistent with the prior quarter's level and 1.2 percent higher than a year
ago. For the quarter, Kimco signed 110 new leases in this portfolio totaling
434,000 square feet. Forty-eight of these new leases were for spaces where
the company replaced a prior tenant from a year ago. The average increase in
contractual base rent on these same space leases was approximately 16.2
percent on a cash basis. The Company also signed 108 tenant lease renewals,
and option exercises totaling 556,000 square feet resulting in average cash
rent increases of 10.5 percent. Over the past four quarters, Kimco has signed
184 same space new leases totaling 872,000 square feet at an average cash
increase of approximately 14.1 percent and 342 lease renewals and options
totaling 1.8 million square feet at an average cash increase of approximately
9.5 percent. As a result of these strong leasing results and the Company's
ongoing redevelopment program, Kimco's same store growth in net operating
income was 5.5 percent, on a cash basis and excluding lease termination fees.
Investment Activity
During the first quarter Kimco acquired interests in 110 properties valued
at approximately $1.1 billion and aggregating 7.9 million square feet. From
year-end through the date of this release, Kimco has acquired interests in 120
properties valued at $1.3 billion and aggregating approximately 9.2 million
square feet. Many of the properties acquired represent co-investments with
institutional partners. The Company continues to aggressively grow its assets
under management and corresponding management fee revenue. A summary of the
recent major transactions is as follows:
U.S. Acquisitions
-- The Company 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, including anchor owned space of approximately 885,000
square feet.
-- The Company acquired Copperwood Village, a 350,000 square foot shopping
center located in Houston, Texas, 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.
-- The Company acquired Cupertino Village, a 115,000 square foot
neighborhood and community shopping center located in a densely
populated submarket of the San Francisco Bay Area. The property has
excellent demographics, with 220,000 people located within a three mile
radius and average household incomes of $115,000. Kimco acquired this
property at a cost of approximately $65.4 million.
-- As previously announced, the Company acquired interests in two shopping
centers located in Puerto Rico; Plaza Central in Caguas and Los Colobos
in Carolina. In aggregate, these two property interests were purchased
for approximately $186 million. Kimco is under contract to acquire
interests in five additional shopping centers in Puerto Rico later this
year.
-- In a transaction consistent with Kimco's strategy of acquiring high
quality properties for its co-investment programs, the Company acquired
a minority interest in a portfolio of six shopping centers with a total
value of $385.6 million. The 1.8 million square foot portfolio
consists of properties located in Edgewater, New Jersey; Ellicott City,
Maryland; Austin, Texas; Clackamas, Oregon; West Lake Hills, Texas; and
Palm Aire, Florida. These properties are well positioned in dense,
in-fill markets with high barriers to new competition. Kimco is
acquiring its interest from Crow Holdings Fund III, a prominent
institutional real estate investment fund that will remain the majority
investor in these properties. Kimco will provide property management
services for the portfolio.
-- The Company acquired Hylan Plaza shopping center located in Staten
Island, New York, as a result of its recently completed acquisition of
Atlantic Realty Trust. Hylan Plaza, which was valued at approximately
$82 million, is a 358,155 square foot shopping center anchored by
Kmart, Pathmark and Toys R' Us. Most of the tenants at this shopping
center have leases with below market rent and short remaining lease
terms, which will allow Kimco to grow rental income from the property
substantially.
-- The Company acquired two shopping centers on Long Island in Centereach
and Bay Shore, New York. The properties, which total 279,000 square
feet were acquired in separate transactions for a total of $61.6
million.
-- The Company acquired Tyler Street Plaza, an 86,108 square foot shopping
center, located in Riverside, California, for approximately $10.1
million. This property will be transferred later this year to one of
Kimco's co-investment programs.
-- In addition, the Company acquired interests in seven other retail
locations and increased its ownership interests in two properties
already in the Company's portfolio. In aggregate, these transactions
totaled $21.6 million.
Mexico Investments
In Mexico, during the quarter Kimco acquired a 13 acre site in Monterrey,
Mexico, for development of a 312,000 square foot HEB anchored shopping center.
The Company's initial investment to acquire the land was approximately $12.8
million and the total project cost is expected to be approximately $35.6
million. Also during the quarter, Kimco's venture with American Industries
acquired interests in two additional net leased properties for an aggregate
gross cost of $4.7 million. In addition, the venture expanded three buildings
for existing tenants for a gross investment of $12.2 million. The venture
currently owns 59 net leased properties totaling 6.0 million square feet that
are 97.2 percent occupied.
Subsequent to quarter end, Kimco acquired a 20 acre site in Guadalajara,
Mexico for the ground up development of a 767,400 square foot shopping center.
The property is located in a highly sought after in-fill location in Mexico's
second largest city where there is strong demand from anchor tenants. Kimco
has initially invested $31.6 million and the total project cost is expected to
be approximately $83 million upon completion.
Canadian Investments
The Company had a very strong quarter expanding its investments in Canada.
Kimco recently completed seven transactions, investing approximately $71
million and acquiring interests in 30 properties. A summary of the
transactions is as follows:
-- Kimco invested $24.0 million in a joint venture for an eight property
portfolio in Canada located in Montreal; Ottawa (2); Toronto;
Windsor (3) and Winnipeg.
-- Kimco invested $20.8 million in a preferred equity transaction to
acquire a portfolio of 15 properties in Montreal, Quebec. In
aggregate, the properties total 848,000 square feet of gross leasable
area.
-- Kimco invested $9.7 million in the Centre Village Mall, a 368,418
square foot grocery anchored shopping center located in Lethbridge,
Alberta.
-- Kimco invested $16.3 million in six additional Canadian properties in
separate transactions as follows:
* A $7.2 million investment in The Village, a 474,644 shopping center
in St. John's, Newfoundland.
* A $3.9 million investment in a ground up development project for Real
Canadian Superstore, a division of Loblaws, the dominant grocer in
Canada.
* A $3.0 million investment in a portfolio of three grocery anchored
neighborhood shopping centers located in La Malbai,
St-Augustin-de-Desmaures and Laurier Station, Quebec.
* A $2.2 million investment in an 86,000 square foot building located
in Toronto.
U.S. Preferred Equity Investments
Kimco continues to grow its preferred equity program in the U.S. Since
year end, the Company has made the following investments:
-- Kimco acquired a preferred equity interest in two buildings located in
Manhattan at 625 Broadway and 387 Bleecker Street. In aggregate, these
properties were valued at $40.3 million.
-- The Company invested $17.8 million in a portfolio of 28 neighborhood
retail properties. The properties are located across 11 states and
total 684,860 square feet.
-- In Florida, the Company acquired preferred equity interests in a
portfolio of three shopping centers for an aggregate investment of
$12.6 million.
-- Kimco also funded approximately $13.6 million of preferred equity in
seven additional properties in the U.S.
During the quarter, three preferred equity investments were redeemed for
proceeds in the amount of $14.1 million, resulting in profit participation of
$4.3 million. Since the inception of Kimco's preferred equity program,
approximately $55 million has been redeemed resulting in profit participation
of approximately $22.5 million.
In aggregate, Kimco's preferred equity portfolio has grown to a total of
195 properties totaling 14.1 million square feet of gross leasable area.
Kimco currently has preferred equity investments throughout the U.S. and
Canada of approximately $310 million.
Development Activities
Kimco Developers Inc. (KDI), the Company's taxable merchant building
subsidiary, sold properties totaling $16.6 million during the quarter. Kimco
also invested $39.6 million to acquire interests in four new development
projects located in Dallas, Texas; Nashville, Tennessee; Phoenix, Arizona; and
Chambersburg, Pennsylvania.
With the addition of these new projects, Kimco currently has 41 active
development projects in the U.S., Canada and Mexico, with a total estimated
project cost of approximately $1.5 billion. When completed, the developments
will encompass more than 15.1 million square feet of leasable area. Kimco
also owns 250 acres of land, primarily in Arizona, that is being held for
future development.
In addition, Kimco is currently evaluating 16 additional developments in
the U.S. totaling approximately $1.0 billion and ten potential developments in
Mexico totaling $250 million and one large project in Canada totaling C$216
million.
Dispositions Activity
During the quarter Kimco sold interests in 12 retail properties for a
total of $77.2 million. Three properties were sold from the Company's parent
portfolio, two properties from the Kimco Income REIT, two from Kimco's co-
investment program with GE Real Estate, four from FNC Realty (formerly Frank's
Nursery) and one from Kimsouth.
Earnings Guidance
Management maintained its range of FFO guidance of $2.12 - $2.16 per share
for the year ending December 31, 2006. A reconciliation of management's
projections from earnings per diluted common share to FFO per diluted common
share is included in this release.
Kimco was added to the Standard & Poor's Index on March 31, 2006, a
benchmark used by over 97 percent of U.S. money managers. The Company has
specialized in shopping center acquisitions, development and management for
over 45 years. Kimco owns and operates the nation's largest portfolio of
neighborhood and community shopping centers with interests in 1,116 properties
comprising approximately 142.3 million square feet of leasable space located
throughout 45 states, Canada, Mexico and Puerto Rico. For further information
refer to the Company's web site at http://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,
2005. 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
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
---------------------------
2006 2005
---------- ----------
Revenues from rental property $ 142,705 $ 129,314
---------- ----------
Rental property expenses:
Rent 2,913 2,509
Real estate taxes 17,664 16,050
Operating and maintenance 17,734 17,434
---------- ----------
38,311 35,993
---------- ----------
104,394 93,321
Income from other real estate investments 18,633 16,608
Mortgage financing income 4,194 3,105
Management and other fee income 7,395 7,653
Depreciation and amortization (29,683) (25,369)
---------- ----------
104,933 95,318
Interest, dividends and other investment income 12,290 4,061
Other income/(expense), net 12,032 (936)
Interest expense (40,020) (28,470)
General and administrative expenses (16,733) (12,004)
---------- ----------
72,502 57,969
Provision for income taxes (1,653) (2,637)
Equity in income of real estate joint
ventures, net 16,751 24,381
Minority interests in income, net (5,814) (3,136)
Gain on sale of development properties,
net of tax of $1,209 and $3,479,
respectively 1,812 5,219
---------- ----------
Income from continuing operations 83,598 81,796
---------- ----------
Discontinued Operations:
Income from discontinued operating properties 971 993
Gain on disposition of operating properties 11,626 2,396
---------- ----------
Income from discontinued operations 12,597 3,389
---------- ----------
Gain on transfer of operating properties(1) -- 1,595
---------- ----------
-- 1,595
---------- ----------
Net income 96,195 86,780
Preferred stock dividends (2,909) (2,909)
---------- ----------
Net income available to common shareholders $ 93,286 $ 83,871
========== ==========
Per common share:
Income from continuing operations:
-- Basic $ 0.35 $ 0.36
========== ==========
-- Diluted $ 0.35(2) $ 0.35(2)
Net income: ========== =========
-- Basic $ 0.41 $ 0.37
========== ==========
-- Diluted $ 0.40(2) $ 0.36(2)
========== ==========
Weighted average shares outstanding:
-- Basic 228,674 225,461
========== ==========
-- Diluted 233,620(2) 234,311(2)
========== ==========
Income subject to income taxes $ 7,844 $ 15,308
(1) Included in the calculation of Income from continuing operations per common
share in accordance with SEC guidelines.
(2) Reflects the potential impact if certain units were converted to common
stock at the beginning of the period. Net income available to common
shareholders would be increased by $1,607 for the three months ended March
31, 2005 reflecting the distribution associated with the units. For the
period ended March 31, 2006, the impact of the conversion would have an
anti-dilutive effect on net income and therefore has not been included.
Certain amounts in the prior period have been reclassified in order to
conform with the current period's presentation.
Kimco Realty Corporation
Funds From Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
---------------------------
2006 2005
---------- ----------
Funds From Operations
Net income $ 96,195 $ 86,780
Gain on disposition of operating
properties, net of minority interests (11,626) (3,991)
Gain on disposition of joint venture
operating properties (1,732) (8,288)
Depreciation and amortization 29,677 26,183
Depreciation and amortization -- real estate
joint ventures, net of minority interests 15,009 10,760
Preferred stock dividends (2,909) (2,909)
---------- ----------
Funds from operations $ 124,614 $ 108,535
========== ==========
Per common share:
-- Basic $ 0.54 $ 0.48
========== ==========
-- Diluted(3) $ 0.53(3) $ 0.47(3)
========== ==========
Weighted Average Share Information for FFO Calculations
Weighted average shares:
-- Basic 228,674 225,461
========== ==========
-- Diluted(3) 238,386(3) 234,311(3)
========== ==========
(3) 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 March 31, 2006
and 2005, respectively.
NOTE: 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 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.
Kimco Realty Corporation
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(unaudited)
March 31, December 31,
2006 2005
------------ ------------
Assets:
Operating real estate, net of
accumulated depreciation of $742,403 and
$740,127, respectively $ 3,679,305 $ 3,209,158
Investments and advances in real estate
joint ventures 782,866 735,648
Real estate under development 718,641 611,121
Other real estate investments 361,996 283,035
Mortgages and other financing receivables 156,288 132,675
Cash and cash equivalents 158,878 76,273
Marketable securities 206,577 206,452
Accounts and notes receivable 63,111 64,329
Other assets 248,146 215,945
------------ ------------
$ 6,375,808 $ 5,534,636
============ ============
Liabilities:
Notes payable $ 2,212,474 $ 2,147,405
Mortgages payable 400,577 315,336
Construction loans payable 261,943 228,455
Dividends payable 82,258 78,169
Other liabilities 315,392 255,213
------------ ------------
3,272,644 3,024,578
------------ ------------
Minority interests 240,887 122,844
------------ ------------
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 240,995,194, outstanding 240,448,614
and issued and outstanding 228,059,056 shares,
respectively 2,404 2,281
Paid-in capital 2,735,693 2,255,332
Retained earnings 73,792 59,855
------------ ------------
2,812,589 2,318,168
Accumulated other comprehensive income 49,688 69,046
------------ ------------
2,862,277 2,387,214
------------ ------------
$ 6,375,808 $ 5,534,636
============ ============
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
(Unaudited)
Projected Range
Full Year 2006
------------------------
Low High
---------- ----------
Projected diluted net income per common share $ 1.46 $ 1.56
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 (0.07) (0.12)
Gain on disposition of joint venture
operating properties, net of minority interests (0.02) (0.03)
---------- ----------
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- 04/25/2006
/CONTACT: Scott Onufrey of Kimco Realty Corporation, +1-516-869-7190, or
sonufrey@kimcorealty.com/
/Web site: http://www.kimcorealty.com /