Exhibit 99.1
KIMCO REALTY REPORTS a 12.5 PERCENT INCREASE IN FFO PER SHARE;
ANNOUNCES a 9.1 PERCENT DIVIDEND INCREASE
Highlights:
- Net Income Per Share Increased 22.9 Percent to $0.43
- FFO Per Share Increased 12.5 Percent to $0.54
- Company Increases 2006 FFO Guidance
- Portfolio Occupancy Increases to a Record High Level of 94.8 Percent
- Board of Directors Increases Quarterly Dividend to $0.36 Per Share, an
Increase of 9.1 Percent
NEW HYDE PARK, N.Y., July 25 /PRNewswire-FirstCall/ -- Kimco Realty
Corporation (NYSE: KIM) today announced that net income for the second quarter
ended June 30, 2006 was $108.7 million compared to $83.8 million a year earlier,
an increase of 29.7 percent. On a per share basis, net income increased 22.9
percent to $0.43 from $0.35 reported in the second quarter of 2005. All prior
period per share amounts contained herein have been adjusted for the Company's
2:1 stock split that was effective August 23, 2005.
Kimco's second quarter funds from operations ("FFO"), a widely accepted
supplemental measure of REIT performance, rose 18.6 percent to $133.3 million
from $112.4 million for the same period last year. On a per share basis, second
quarter FFO increased 12.5 percent to $0.54 from $0.48 a year ago. Quarterly FFO
excludes gains on dispositions and transfers of operating properties net of
minority interests and gains on dispositions of joint venture properties,
totaling approximately $24.8 million, or $0.10 per share, in 2006 and
approximately $8.4 million, or $0.04 per share, in 2005.
For the six months ended June 30, 2006, net income increased 20.1 percent to
$204.9 million from $170.6 million for the same period last year. Net income per
share increased 15.3 percent to $0.83 from $0.72 a year ago. Funds from
operations rose 16.7 percent to $257.9 million for the six-month period ended
June 30, 2006 from $221.0 million in the year earlier period. On a per share
basis, FFO increased 12.6 percent to $1.07 from $0.95 reported a year ago. Funds
from operations for the six months ended June 30, 2006 excludes gains on
dispositions and transfers of operating properties net of minority interests and
gains on dispositions of joint venture properties, totaling approximately $38.1
million or $0.16 per share and approximately $20.7 million or $0.09 per share
for the same period last year.
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 94.8
percent from 94.6 percent at March 31, 2006 and 94.1 percent a year earlier. The
increase in occupancy, a historic high for Kimco as a public company, was the
result of new leasing, acquisition activity and property sales. For the quarter,
Kimco signed 120 new leases in the portfolio totaling 354,000 square feet and
104 renewals totaling 433,000 square feet. Over the past 12 months the Company
has signed 497 new leases in this portfolio totaling approximately 2.4 million
square feet and 362 renewals totaling 1.9 million square feet. The average
increase in base rent for new leases signed for same space leases was 22.9
percent and 14.4 percent for the quarter and trailing twelve months ended June
30, 2006, respectively. Occupancy in the Company's combined operating portfolio
encompassing approximately 116.5 million square feet of gross leasable area
increased to 95.1 percent from 94.9 percent in the prior quarter.
Dividend Increase
Consistent with the Company's continued strong operating results and
positive outlook, Kimco's Board of Directors has increased the quarterly
dividend 9.1 percent to $0.36 per share from $0.33 per share. This dividend
increase represents the 15th consecutive annual increase in Kimco's dividend,
which has grown at a compound annual rate of 9.3 percent since the Company's
initial public offering in 1991. In addition, the Board declared the fourth
quarter common stock dividend at the increased rate of $0.36 per share payable
on October 16, 2006 to shareholders of record on October 4, 2006.
Investment Activity
In addition to the Company's recently announced merger agreement with Pan
Pacific Retail Properties, Inc. (NYSE: PNP), the Company recently acquired
interests in 33 properties with a gross value of $537.0 million. Significant
recent transactions included the following:
U.S. Acquisitions
* The Company, in its co-investment program with UBS Wealth Management,
acquired two new shopping center investments, Airport Plaza, located in
Farmingdale, New York, and The Center at Hobbs Brook, located in
Sturbridge, Massachusetts. Airport Plaza, which was acquired for
approximately $95.1 million, is well positioned in a prime retail
corridor on Long Island and consists of 447,600 square feet of gross
leaseable area that is currently 97.9 percent leased. Anchor tenants
include Home Depot, Borders Books, Bed Bath & Beyond and Staples. The
231,000 square foot Center at Hobbs Brook is 95.7 percent leased to
tenants that include Marshall's, Stop & Shop, Old Navy and Staples. This
shopping center was acquired for $53.1 million.
* Kimco acquired a 50 percent interest in Great Northeast Plaza located in
Philadelphia, Pennsylvania. The property, anchored by Sears, is adjacent
to an existing Kimco center and the acquisition will facilitate the
redevelopment of the combined properties. The site was acquired for
approximately $36.5 million.
* Kimco acquired Mallside Plaza in Portland, Maine, for $23.1 million. The
91,000 square foot shopping center is 92.1 percent occupied and anchored
by Office Max and Dollar Tree.
* Kimco purchased a substantial portion of its partners' interest in the
remaining four properties in the Kimsouth venture for $22.7 million,
continuing the liquidation process of the former Konover Properties
Trust REIT. Kimco anticipates completing the liquidation and
transferring three of these properties to one of its co-investment
partners during the third quarter.
* Kimco completed the previously announced acquisition of Western Plaza
located in Mayaguez, Puerto Rico, for $34.9 million. Sam's Club anchors
the 226,000 square foot shopping center.
* Also as previously announced, Kimco completed the acquisition of six
properties, including two on Long Island, two in Texas, one in
Riverside, California and one in Palm Aire, Florida. The properties
were acquired in separate transactions during April totaling
approximately $185.0 million.
U.S. Preferred Equity Investments
During the quarter, Kimco invested approximately $35.4 million in preferred
equity transactions that consisted of 13 properties. The significant
transactions are as follows:
* The Company invested $14.7 million in a preferred equity position in the
Foothills Mall with Feldman Mall Properties. Foothills Mall is a 501,000
square foot discount and entertainment complex anchored by Barnes &
Noble, Linen's N Things, Ross Stores and Nike Factory Outlet.
* Kimco invested $8.4 million in a portfolio of three buildings comprising
a total of 387,885 square feet located in suburban Boston,
Massachusetts. The properties were recently acquired by Everest
Partners, which owns and operates more than 3.2 million square feet in
the New England market.
* In a separate transaction with Everest Partners, Kimco invested $5.3
million in Porter Square, a 56,625 square foot property anchored by Pier
One located in a supply constrained market in Cambridge, Massachusetts.
* Kimco made a $3.9 million preferred equity investment in a development
project located adjacent to Republic Airport on Long Island.
* Kimco made a $2.5 million preferred equity investment in five retail
centers comprising 252,800 square feet located in Northern New
Hampshire. Three of the shopping centers are anchored by Shaw's grocery
stores, one is anchored by Rite Aid and one by Staples.
Mexico Investments
* Kimco commenced a $5.7 million ground up development project in Puerto
Vallarta. The 83,000 square foot development is expected to be completed
in the first quarter of 2007 and will be anchored by an 72,000 square
foot Soriana grocery store. Soriana, with 202 stores throughout Mexico,
is one of the country's largest grocery store chains.
* As previously announced, 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.
* The Company funded a $1.8 million expansion of a building net leased to
Werner Co. in its joint venture with American Industries and, as
previously announced, acquired a building net leased to Cessna for
approximately $2.1 million.
* Kimco recently completed a $5.2 million development project, Plaza Magno
Deco, a 39,000 square foot shopping center located in Mexico City,
Mexico.
Canadian Investments
* Kimco funded a $45.1 million preferred equity interest in the $183
million Faubourg Boisbriand Retail Development, a new development
project that will consist of 1.2 million square feet. In partnership
with Sterling Centrecorp and Cherokee Canada, Kimco is redeveloping the
former General Motors plant located in Montreal, Quebec. Anchor tenants
will include Sobey's, Zellers and Home Outfitters. In addition, the
project is shadow anchored by Costco.
* As previously announced, Kimco made 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.
In addition, Kimco participated with an investment group to complete the
purchase of certain businesses of Albertson's, Inc. The group has acquired 661
operating stores that operate under the Albertson's and Super Saver banners and
also include the combo-store pharmacies under the Osco and Sav-on banners.
Subsequently, the group acquired the fee simple interest in 50 properties which
included leases to Albertson's, Inc. and Supervalu from Newkirk Realty Trust,
Inc.
Development Activities
During the quarter, Kimco's merchant building business, Kimco Developers
Inc. (KDI), commenced a ground up development in Anchorage, Alaska. Kimco's
initial investment to acquire the land at Glenn Square shopping center was $3.3
million. The project is a 256,000 square foot shopping center to be anchored by
Petco, Michaels, Bed Bath & Beyond and several other national retailers. Total
project costs are expected to be approximately $31.1 million and tenants will
begin opening in 2007.
In addition, KDI completed the sale of two shopping centers and sold
portions of eight additional projects generating proceeds of $65.2 million.
These property sales resulted in gains on sales of approximately $6.6 million,
net of tax.
Kimco's current pipeline of development projects in the U.S., Canada and
Mexico consists of 48 shopping centers totaling $1.6 billion of investment and
approximately 15.4 million square feet of gross leasable area.
Earnings Guidance
As a result of the Company's continued strong operating results, Kimco's
management increased its range of guidance for full year 2006 FFO per share to
$2.16 - $2.18 from the prior guidance range of $2.12 - $2.16.
Kimco Realty Corporation was added to the Standard & Poor's 500 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 1,118
properties comprising approximately 143.6 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 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)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- ---------------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
Revenues from rental
property $ 151,502 $ 125,824 $ 293,314 $ 254,274
----------- ----------- ----------- -----------
Rental property expenses:
Rent 2,944 2,603 5,857 5,113
Real estate taxes 19,904 16,209 37,455 32,151
Operating and maintenance 17,820 13,513 35,427 30,810
----------- ----------- ----------- -----------
40,668 32,325 78,739 68,074
----------- ----------- ----------- -----------
Net operating income 110,834 93,499 214,575 186,200
Income from other real
estate investments 15,430 11,684 33,747 28,013
Mortgage financing income 8,716 3,465 12,910 6,570
Management and other fee
income 12,340 7,477 19,735 15,130
Depreciation and
amortization (35,673) (26,714) (65,121) (51,854)
----------- ----------- ----------- -----------
111,647 89,411 215,846 184,059
Interest, dividends
and other investment
income 12,054 4,410 24,344 8,472
Other (expense)/income, net (3,134) 12,093 8,898 11,156
Interest expense (42,010) (30,239) (81,912) (58,635)
General and administrative
expenses (16,567) (12,747) (33,300) (24,750)
----------- ----------- ----------- -----------
61,990 62,928 133,876 120,302
Benefit/(Provision) for
income taxes 3,257 (2,252) 1,680 (4,827)
Equity in income of real
estate joint ventures, net 26,761 14,707 43,512 39,088
Minority interests in
income, net (8,053) (3,881) (13,816) (6,970)
Gain on sale of development
properties, net of tax of
$4,423, $3,664, $5,632
and $7,143, respectively 6,635 5,495 8,447 10,714
----------- ----------- ----------- -----------
Income from continuing
operations 90,590 76,997 173,699 158,307
----------- ----------- ----------- -----------
Discontinued Operations:
Income from discontinued
operating properties 614 1,865 2,125 3,391
Minority interest in income
from discontinued
operating properties (1,470) (31) (1,521) (78)
Loss on operating
properties held for
sale/sold (813) (2,615) (813) (2,615)
Gain on disposition of
operating properties,
net of tax 18,429 7,065 30,055 9,461
----------- ----------- ----------- -----------
Income from discontinued
operations 16,760 6,284 29,846 10,159
----------- ----------- ----------- -----------
Gain on transfer of
operating properties(1) 1,394 706 1,394 2,301
Loss on transfer of
operating properties(1) -- (150) -- (150)
----------- ----------- ----------- -----------
1,394 556 1,394 2,151
----------- ----------- ----------- -----------
Net income 108,744 83,837 204,939 170,617
Preferred dividends (2,909) (2,909) (5,819) (5,819)
----------- ----------- ----------- -----------
Net income available to
common shareholders $ 105,835 $ 80,928 $ 199,120 $ 164,798
=========== =========== =========== ===========
Per common share:
Income from continuing
operations:
- Basic $ 0.37 $ 0.33 $ 0.72 $ 0.68
=========== =========== =========== ===========
- Diluted(2) $ 0.36(2) $ 0.32(3) $ 0.71(2) $ 0.67(3)
=========== =========== =========== ===========
Net income:
- Basic $ 0.44 $ 0.36 $ 0.85 $ 0.73
=========== =========== =========== ===========
- Diluted (2) $ 0.43(2) $ 0.35(3) $ 0.83(2) $ 0.72(3)
=========== =========== =========== ===========
Weighted Average Share Three Months Ended Six Months Ended
Information June 30, June 30,
For earnings per share --------------------------- ---------------------------
calculations: 2006 2005 2006 2005
- ------------------------------------------ ----------- ----------- ----------- -----------
Weighted average shares -
- Basic 240,554 226,435 234,647 225,951
=========== =========== =========== ===========
- Diluted(2) 246,048(2) 230,545(3) 240,065(2) 230,042(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) Reflects the potential impact if certain units were converted to common
stock at the beginning of the period. Net income would be increased by
$209 for the three months ended June 30, 2006 and $363 for the six
months ended June 30, 2006.
(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 has not been
included.
Kimco Realty Corporation
Funds From Operations
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
Funds From Operations(1)
Net income $ 108,744 $ 83,837 $ 204,939 $ 170,617
Gain on disposition of
operating properties,
net of minority
interests (18,163) (7,771) (29,789) (11,762)
Gain on disposition of
joint venture operating
properties (6,589) (642) (8,321) (8,930)
Depreciation and
amortization 35,617 27,709 65,294 53,892
Depreciation and
amortization
- real estate JV's,
net of minority
interests 16,610 12,219 31,619 22,979
Preferred stock dividends (2,909) (2,909) (5,819) (5,819)
----------- ----------- ----------- -----------
Funds from
operations(1) $ 133,310 $ 112,443 $ 257,923 $ 220,977
=========== =========== =========== ===========
Per common share:
- Basic $ 0.55 $ 0.50 $ 1.10 $ 0.98
=========== =========== =========== ===========
- Diluted(2) $ 0.54(2) $ 0.48(2) $ 1.07(2) $ 0.95(2)
=========== =========== =========== ===========
Three Months Ended Six Months Ended
June 30, June 30,
Weighted Average Share -------------------------- --------------------------
Information 2006 2005 2006 2005
- ------------------------------------------ ----------- ----------- ----------- -----------
For funds from operations calculations:
Weighted average shares-
- Basic 240,554 226,435 234,647 225,951
=========== =========== =========== ===========
- Diluted(2) 251,217(2) 235,312(2) 244,832(2) 234,808(2)
=========== =========== =========== ===========
(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, gains on sales of operating real
estate, plus the pro-rata amount of depreciation and amortization and
gains on sales 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 $2,103 and $1,607 for the three months ended June 30, 2006
and 2005, respectively, and $3,842 and $3,215 for the six months ended
June 30, 2006 and 2005, respectively.
Kimco Realty Corporation
Condensed Consolidated Balance Sheets
(In thousands, except share data)
June 30, December 31,
2006 2005
------------ ------------
Assets:
Operating real estate, net of accumulated
depreciation of $768,973, and $740,127,
respectively $ 3,856,241 $ 3,209,158
Investments and advances in real estate
joint ventures 817,953 735,648
Real estate under development 809,024 611,121
Other real estate investments 388,466 283,035
Mortgages and other financing receivables 142,017 132,675
Cash and cash equivalents 122,346 76,273
Marketable securities 203,479 206,452
Accounts and notes receivable 65,548 64,329
Other assets 356,776 215,945
------------ ------------
$ 6,761,850 $ 5,534,636
============ ============
Liabilities:
Notes payable $ 2,389,037 $ 2,147,405
Mortgages payable 488,111 315,336
Construction loans payable 261,706 228,455
Dividends payable 82,323 78,169
Other liabilities 338,594 255,213
------------ ------------
3,559,771 3,024,578
------------ ------------
Minority interests in partnerships 308,799 122,844
------------ ------------
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 700 700
Issued and outstanding 700,000 shares
Aggregate liquidation preference $175,000
Common Stock, $.01 par value, authorized
300,000,000 shares
Issued 241,192,479, outstanding 240,645,899
in 2006; 2,406 2,281
Issued and outstanding 228,059,056 in 2005
Paid-in capital 2,740,934 2,255,332
Retained earnings 100,213 59,855
------------ ------------
2,844,253 2,318,168
Accumulated other comprehensive income 49,027 69,046
------------ ------------
2,893,280 2,387,214
------------ ------------
$ 6,761,850 $ 5,534,636
============ ============
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 $ 1.51 $ 1.58
common share
Projected depreciation and 0.54 0.54
amortization
Projected depreciation and 0.27 0.27
amortization from real estate joint
ventures, net of minority interests
Gain on disposition/transfer of (0.13) (0.16)
operating properties
Gain on disposition of joint venture
operating properties, net of minority
interests (0.03) (0.05)
============ ============
Projected FFO per diluted common
share $ 2.16 $ 2.18
============ ============
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- 07/25/2006
/CONTACT: Scott Onufrey of Kimco Realty Corporation, +1-516-869-7190,
sonufrey@kimcorealty.com /
/Web site: http://www.kimcorealty.com /