As the owner and operator of North America’s largest portfolio of neighborhood and community shopping centers, Kimco Realty docks its successful expansion pattern on strategic acquisition, development, and management.
Kimco is a New Hyde Park, NY-based real estate investment trust (REIT) that began trading in the public market in 1991. With more than 50 years in the commercial real estate market, Kimco has established interests in 946 shopping centers scattered across 44 states, Puerto Rico, Canada, Mexico and South America, amassing 138 million square feet of leasable space.
In 2011, Kimco acquired 21 shopping centers (17 wholly owned and four joint ventures) for $494 million.
The company also dabbles in solar energy with a portfolio of six solar-powered shopping centers in the state of New Jersey, generating energy production capacity the equivalent of powering 300 households.
As a cash buyer with the ability to assume existing debt, Kimco affords the luxury of seeking out prospective acquisitions that meet select criteria:
• Markets where Kimco has a strong presence, focusing on top 20 metro statistical areas (MSAs), including Puerto Rico, which generates more than 60 percent annual base rate (ABR)
• Anchored by dominant grocer in the established market (approximately 55 percent of Kimco properties contain a grocery/food component)
• Institutional grade assets with long-term leases to market leaders
• Minimum of 75,000 square feet – no maximum size requirement
• Opportunistic properties with re-development and re-tenanting potential
Following this criteria, Kimco attracts tenants with the allure of high-trafficked shopping centers nestled among desirable demographics. Top tenants in regards to ABR and MSA include recognizable brands: Home Depot, TJX Companies, Kmart/Sears Holdings, Kohl’s, Wal-Mart, Bed Bath & Beyond, Costco, and Best Buy.
In 2011, Kimco executed 2,474 leases, including 487 same-space new leases and 1,169 lease renewals and options; and signed more than 800 new leases. Kimco ended the fourth quarter of 2011 with gross occupancy in the combined and U.S. shopping center portfolios at 93.3 percent and 93.2 percent, respectively.
For investors, Kimco’s acquisition strategy and subsequent financial performance translates into a publicly traded entity well-positioned for the long haul.
In the fourth quarter of 2011, Kimco reported funds from operations (FFO) of $135.4 million, or $0.33 per diluted share, compared to $125.3 million, or $0.31 per diluted share, reported in the fourth quarter of 2010; full-year 2011 FFO was reported at $517.2 million, or $1.27 per diluted share, compared to $493.2 million, or $1.21 per diluted share, reported for 2010.
Net income for the fourth quarter of 2011 was $31.6 million, or $0.08 per diluted share, compared to $22.2 million, or $0.05 per diluted share, for the comparable quarter of 2010. Full-year 2011 net income also increased at $109.7 million, or $0.27 per diluted share, compared to 2010 full-year net income of $91.5 million, or $0.22 per diluted share.
The company declared a quarterly cash dividend of $0.19 per common share, payable April 16, 2012, to shareholders on record at April 4, 2012, with an ex-dividend date of April 2, 2012.
Kimco capitalizes on its retailer relationships with established brands, a strong portfolio, and its 50-year history. Since its initial public offering nearly 20 years ago, Kimco has generated total annualized return for shareholders of more than 13 percent.
Plowing forward through 2012, Kimco expects to increase shareholder value by continuing to implement its current business and acquisition strategy. Though it will maintain its primary focus in the North American commercial real estate market, it also plans to expand its Latin America acquisition portfolio, which currently contributes 5.2 percent annual rental revenue.
About MissionIR
MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html
