Kimco Realty Corp., a New Hyde Park-based real estate investment trust, reported a rise in revenue but a drop in net income for the quarter ended June 30 due to lower gains made on the sale of properties.
Funds from operations, a performance measure of real estate investment trust earnings that excludes results from the sale of properties, rose.
Kimco, one of the largest publicly traded owners and operators of shopping centers in the United States, said net income attributable to the company was $143.4 million for the second quarter, down from $203.4 million in the same quarter last year. The drop was primarily due to “lower gains on sales” from the disposition of operating properties, according to a company release.
The company sold its interest in nine shopping centers this quarter for a total of $152.2 million. Those sales marked the company’s exit from Maine and Louisiana. During the same quarter last year, Kimco sold its interest in 34 shopping centers for $695 million.
Funds from operations rose to $175 million, or 41 cents per share, from $158.1 million, or 38 cents per share, during the year earlier period.
Revenue for the quarter rose to $297.2 million from $291.5 million during the same period last year.
Real estate investment trusts, or REITs, must return a majority of their profits to investors. Some REITs, like Kimco, are publicly traded. The company reported earnings after the market closed Wednesday. Company shares were up 26 cents at $19.74 in after-hours trading.
Kimco owns more than 500 shopping centers in the U.S., with 30 of those — including Airport Plaza in East Farmingdale — on Long Island.