Kimco Lowers Earnings Estimates For 2009

NEW HYDE PARK, N.Y. (AP) — Strip mall operator Kimco Realty Corp. on Thursday lowered its earnings forecast for 2009 and said it expects to slash its dividend in the second half of the year.

The company estimates that its funds from operations — the key measurement of performance for real estate investment trusts — will be between $1.70 and $1.85 per share for the year.

Kimco had already issued an adjusted FFO guidance in February of of $1.70 to $1.90 per share for 2009.

To maintain financial flexibility, Kimco said it also expects to slash its dividend in the third and fourth quarters.

A 44 cent-per-share dividend was paid in the first quarter; the same amount was declared for the second quarter. However, Kimco said it would likely not be able to maintain that price, given its issuance of 70 million shares of common stock Thursday. The money raised from the stock offering will be used to pay off debt.

The recession has already slammed Kimco's performance this year. In February, the company reported a 92 percent plunge in fourth-quarter funds from operations.

The broader shopping mall industry is suffering as job losses and the recession cause a sharp pullback in consumer spending. Analysts expect vacancies at retailers are likely to soar to levels last seen in the early 1990s.