67° Good Morning
67° Good Morning
ClassifiedsReal Estate

Kimco sees drop in funds from operations

Among the holdings of Kimco, a real estate

Among the holdings of Kimco, a real estate investment trust, is Airport Plaza in Farmingdale. Credit: Handout

Kimco Realty Corp. reported lower quarterly results Tuesday due to a transaction involving its own preferred shares. But the real estate investment trust said operating income from its shopping centers improved.

The New Hyde Park-based company's funds from operations, a measure commonly used as a substitute for earnings per share for REITs, fell by 6 percent to 31 cents per share in the fourth quarter of 2012 compared to the same period a year earlier, meeting Wall Street analysts' expectations.

For the full year, the company's funds from operations were $510.4 million, compared to $517.8 million in 2011. The company attributed the decrease to the accounting impact from a redemption of its preferred shares.

Alexander Goldfarb, an analyst at Sandler O'Neill & Partners LP who follows Kimco, said the improved performance from its shopping centers was in part due to a rebound in rents collected from mom-and-pop tenants.

"Property cash flows are improving, and .?.?. the small shop space, meaning the mom-and-pop-type space of the shopping center, continues to improve," Goldfarb said.

During the fourth quarter, it acquired interests in 27 properties for $653.6 million while selling 68 shopping centers for $631.8 million. New leases increased by 25 percent, and renewals and options increased by 6 percent in the final quarter of 2012.

Last month, Kimco announced it invested $76.5 million as part of a consortium buying five grocery chains from SuperValu Inc.

Kimco owns interests in 896 shopping centers with 131 million square feet of leasable space in North and South America.

Latest Long Island News