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Kimco Realty swings to loss on one-time charges

An exterior view of Kimco Realty Corp., a

An exterior view of Kimco Realty Corp., a New Hyde Park-based real estate investment trust. It is the largest publicly traded owner and operator of shopping centers in North America. Credit: Newsday / J. Conrad Williams Jr.

Kimco Realty Corp., a New Hyde Park-based real estate investment trust, reported a net loss for the quarter ended Sept. 30 due to prepayments of debt and costs associated with a merger.

Kimco, the largest publicly traded owner of open-air shopping centers in the United States, swung to a net loss attributable to the company of $43.5 million, compared with net income of $77.6 million during the same quarter last year.

The company attributed the third quarter loss largely to one-time items, including the early repayment of higher rate Canadian bonds and U.S. debt at a cost of $45.7 million, and a $63.5 million non-cash charge associated with its merger with a subsidiary.

The early repayment of the debt is part of the company’s strategy to “further reduce leverage,” Conor Flynn, president and chief executive of Kimco said in a statement. Kimco is also focusing on shopping centers in the United States.

The company also sold fewer properties in the quarter, resulting in a $19 million decrease in gains on sales from the year-earlier period, said David F. Bujnicki, senior vice president of investor relations and strategy.

The company said total revenues for the quarter dipped slightly to $285.1 million from $288.4 million during the year earlier period.

Funds from operations a common measure of REIT earnings that excludes results from the sale of properties, fell to $76.4 million from $163.9 million. Adjusted for one-time items, funds from operations were $160.6 million.

Kimco raised its quarterly dividend by 5.9 percent to 27 cents per share.

Real estate investment trusts, or REITs, are required to return at least 90 percent of their profits to investors. Some REITs, like Kimco, are publicly traded. The company reported earnings after the market closed Thursday. Its shares were unchanged at $27.89 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.


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