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Kimco income jumps after sale of Canadian interests

Kimco, which reported sharply higher net income for

Kimco, which reported sharply higher net income for the quarter ended Dec. 31, owns Airport Plaza shopping center in Farmingdale. Credit: Kimco

Kimco Realty Corp., a New Hyde Park-based real estate investment trust, reported sharply higher net income for the quarter ended Dec. 31 due primarily to gains on the sale of its interests in Canadian properties.

Net income attributable to the company jumped to $379.2 million for the fourth quarter, up from $52.8 million during the year earlier period. The dramatic increase included $282 million in gains made on the sale of its interests in joint ventures, primarily in Canada.

The company began its planned move out of Canada during the quarter, selling its interest in 23 shopping centers there, said David Bujnicki, vice president of investor relations and corporate communications for Kimco.

“All of the shopping centers we have in Canada are owned in different joint ventures where somebody else is the operating partner,” Bujnicki said. “We think we do a good job creating value as operators, so we like to be the manager.”

Kimco, the largest owner of suburban shopping centers in North America, said revenue for the quarter rose to $300.9 million from $264.5 million during the same period last year. For the year, the company reported $1.2 billion in revenue, up from $993.9 million in 2014.

Net income for the year rose to $894.1 million, up from $424 million the previous year.

The company’s funds from operations, an industry measure for evaluating real estate trust earnings that excludes gains on property sales, fell to $143.2 million, or 35 cents per share, from $156.7 million, or 38 cents a share, in the year-earlier period. The decrease was due to a nearly $10 million transaction charge on the company’s redemption of preferred stock.

Real estate investment trusts, or REITs, must return a majority of profits to investors. REITs like Kimco are publicly traded. The company reported earnings after the market closed Tuesday.

Kimco owns the Airport Plaza shopping center in Farmingdale, where Long Island’s first Stew Leonard’s is located.

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