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Kimco Funds From Operations Fall 28 Percent In 1Q

The Associated Press

NEW HYDE PARK, N.Y. (AP) — Strip mall operator Kimco Realty Corp. said Thursday its funds from operations fell 28 percent as retailer bankruptcies led to a drop in occupancy rates.

During the quarter, funds from operations were $117.8 million, or 43 cents per share, compared with $164.4 million, or 64 cents per share a year earlier.

On average, analysts polled by Thomson Reuters expected quarterly funds from operations of 44 cents per share.

Funds from operations, which add depreciation and amortization into earnings, are a key measure of a real estate investment trust's performance.

Shopping mall owners have been suffering as consumers pull back spending amid the downturn and climbing unemployment rates. For the three months ending March 31, Kimco said it had an occupancy of 92.6 percent, a decrease of 0.5 percentage points from last year.

For the full year, the company said it expects funds from operations of $1.33 to $1.45 per share. The guidance doesn't include any estimates for impairments. Analysts expect FFO $1.45 per share for 2009.

For the first quarter, net income was $26.6 million, or 10 cents per share, down 69 percent from $86.6 million, or 34 cents per share, a year earlier.

Analysts expected earnings of 14 cents per share.

The company noted that it repaid $130 million of its medium-term notes. Since the start of the year, it also obtained approximately $212 million in secured debt commitments. That helped send shares up 87 cents, or 8 percent, to $12.20 in midday trading.