Kimco Quarterly Revenue Soars – Analyst Blog

Kimco Realty Corp (KIM), a leading real estate investment trust (REIT), reported a 17.3% increase in first quarter 2010 rental revenues compared to the year-earlier quarter. Revenues for the reported quarter increased to $227.0 million from $193.6 million in the year-ago quarter.

 

The company reported first quarter 2010 FFO (fund from operations) of $126.0 million or 31 cents per share compared to $117.8 million or 43 cents in the year-ago period. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

 

The quarterly FFO figures included certain non-recurring items, excluding which FFO for the first quarter of 2010 were $115.6 million or 28 cents per share compared to $112.7 million or 41 cents per share in the year-earlier quarter.

 

Overall occupancy in Kimco’s combined shopping center portfolio was 92.8 % at the end of the quarter. In the U.S. portfolio, occupancy was 92.4% as on March 31, 2010. Overall same-store net operating income (NOI) decreased 20 bps during the quarter year-over-year.

 

During the quarter, Kimco executed a total of 754 leases spanning 2.9 million square feet out of which 373 were new leases (733,000 square feet) and 381 were lease renewals (2.1 million square feet). In the U.S. portfolio, Kimco executed 503 leases spanning 2.6 million square feet.

 

The first quarter of 2010 saw the company recognizing $9.8 million of fee income related to its investment management business. Kimco had 284 properties in investment management funds with 15 institutional partners at quarter end. During the quarter, the company generated $22 million of income from its structured investments and other non-retail assets, out of which $16 million was recurring in nature and $6 million was transactional.

 

During the quarter, Kimco repaid a mortgage loan totaling $12 million, along with two construction loans totaling approximately $30 million. At quarter end, the company had $137.4 million of cash and cash equivalents. In addition, Kimco had $1.6 billion available under its revolving credit facilities to drive future growth.

 

Kimco updated its earlier FFO guidance from $1.07 – $1.15 per share for fiscal 2010 to $1.10 – $1.15. The guidance excludes any estimate for impairments.