Overcast 36° Good Morning
Overcast 36° Good Morning

Kimco Realty net falls on prior-year gains

Real estate investment trust Kimco Realty Corp. is

Real estate investment trust Kimco Realty Corp. is based in this New Hyde Park building, as seen on Jan. 6, 2011. Photo Credit: Newsday / J. Conrad Williams Jr.

Kimco Realty Corp., a New Hyde Park-based real estate investment trust, reported higher total revenue but lower net income for the quarter ended Sept. 30.

A closely watched measure of income that excludes gains from sales of properties, which were extensive in the year-earlier period, edged higher.

Kimco, the largest owner of suburban shopping centers in North America, said revenue for the third quarter rose to $288.4 million from $255.2 million during the same period last year.

Net income attributable to the company was $77.6 million, down from $194.7 million during the year earlier period. The decrease was due primarily to higher gains made on the sale of properties during the third quarter last year.

The company's funds from operations, an industry yardstick for evaluating real estate trust earnings that doesn't include property sale gains, rose to $163.9 million, or 40 cents per share, up from $159.9 million -- 39 cents a share -- from the year-earlier period.

"The differential on our net income from a year-over-year basis really was driven by a lot more gains on sales that we had in the prior year," said David Bujnicki, vice president of investor relations and corporate communications for Kimco. "However, our funds from operations improved by about $4 million."

Real estate investment trusts, or REITs, must return most of their profit to investors. Some, like Kimco, are publicly traded. The company reported earnings after the market closed Wednesday.

On Long Island, Kimco owns the Airport Plaza shopping center in Farmingdale, and the Jericho Commons shopping center in Jericho.

More news