(EDITOR’S NOTE: Anaheim Shopping Center is located at N. Euclid Street & Santa Ana Freeway in Anaheim. Brookvale Shopping Center is located at 35720 Fremont Boulevard in Fremont.)
JERICHO, New York, February 10, 2022 – Kimco Realty® (NYSE: KIM), North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers and mixed-use assets, today reported results for the fourth quarter and full year ended December 31, 2021. For the three months ended December 31, 2021 and 2020, Kimco Realty’s net income available to the company’s common shareholders was $0.13 per diluted share and $0.45 per diluted share, respectively.
“We are extremely proud to have completed another quarter with leasing volume exceeding two million square feet, bringing leasing for the year to 8.7 million square feet,” stated Kimco Realty CEO Conor Flynn. “Our ongoing commitment to leasing our open-air, last-mile, grocery-anchored centers and mixed-use assets in growing markets is resulting in solid occupancy gains and growth in FFO. The ongoing challenges of COVID notwithstanding, the successful merger with WRI combined with unprecedented levels of tenant demand driven by the critical importance of bricks and mortar shopping for profitable last-mile fulfillment and distribution should help drive continued strong results in 2022 and beyond, and further enhance shareholder value.”
Fourth Quarter 2021 Net income available to the company’s common shareholders for the fourth quarter of 2021 was $75.3 million, or $0.13 per diluted share, compared to $194.9 million, or $0.45 per diluted share, for the fourth quarter of 2020. The II year-over-year change is primarily attributable to a $187.5 million reduction in the gain on marketable securities, primarily as a result of the mark-to-market fluctuations on 39.8 million shares of common stock of Albertsons Companies, Inc. (NYSE: ACI) held by the company. This was partially offset by the positive impact associated with the integration of WRI for a full quarter since the successful merger completion in August of 2021.
Nareit FFO was $240.1 million, or $0.39 per diluted share, for the fourth quarter of 2021 compared to $133.0million, or $0.31 per diluted share, for the fourth quarter 2020. Full Year 2021 Net income available to the company’s common shareholders was $818.6 million, or $1.60 per diluted share, for the full year 2021 compared to $975.4 million, or $2.25 per diluted share, for the full year 2020. Nareit FFO was $706.8 million, or $1.38 per diluted share, for the full year 2021 and includes $47.2 million, or $0.09 per diluted share, of net merger-related charges and pension valuation adjustments associated with WRI. For the full year 2020, Nareit FFO was $503.7 million, or $1.17 per diluted share.
Fourth Quarter 2021 Operating Results:
• Pro-rata portfolio occupancy ended the quarter at 94.4%, representing an increase of 50 basis points year-overyear and 30 basis points sequentially. The spread between Kimco Realty’s leased (reported) occupancy vs. economic occupancy was 270 basis points at the end of the period, compressing 30 basis points sequentially.
• Ended the quarter with pro-rata anchor occupancy at 97.1%, up 40 basis points year-over-year and 20 basis points sequentially, and small shop occupancy at 87.7%, an increase of 160 basis points year-over-year and 40 basis points sequentially.
• Signed 438 leases totaling 2.1 million square feet with blended pro-rata rental-rate spreads on comparable spaces increasing 8.1%, and with rental rates for new leases up 14.1% and renewals and options growing 7.0%.
• Same-property NOI, including redevelopments, increased 12.9% for the fourth quarter of 2021 over the comparable period in 2020.
Fourth Quarter 2021 Transaction Activities:
• As previously announced, Kimco Realty acquired the remaining 70% interest in a portfolio of six Publix anchored, Sunbelt shopping centers from the company’s existing joint venture partner, Jamestown, for a gross purchase price of $425.8 million. The company subsequently entered into a joint venture partnership with Blackstone Real Estate Income Trust, Inc. (“BREIT”) under which Kimco Realty and BREIT each will own 50% of the portfolio, with the company continuing to manage the properties on behalf of the joint venture.
• Acquired the remaining 85% interest in Anaheim Plaza and Brookvale Shopping Center, two grocery-anchored shopping centers located in California from an existing joint venture partner for a gross purchase price of $134.0 million. Kimco Realty’s pro-rata share of the sales price was $113.9 million.
• Purchased the remaining 10% interest in Centro Arlington, a 366-unit multi-family, mixed-use property that is anchored by a Harris Teeter grocer in Arlington, Virginia from the existing joint venture partner for a pro-rata price of $26.0 million.
• Provided $15.0 million of mezzanine funding towards the acquisition of The Markets at Town Center, a 254,000- square-foot grocery-anchored center located in Jacksonville, Florida. iii • Separately sold two land parcels and four shopping centers, totaling 380,000 square-feet, for a total of $65.8 million. Kimco Realty’s share of the sales price was $14.7 million.
• Acquired two adjacent parcels at existing centers for a gross purchase price of $20.3 million. Kimco Realty’s share of the purchase price was $13.8 million.
Fourth Quarter 2021 Capital Market Activities:
• Lowered Net Debt to EBITDA on a consolidated and look-through basis (which includes outstanding preferred stock and the company’s pro-rata share of joint venture debt) to 6.1x and 6.6x, respectively. A reconciliation of Net Income to EBITDA is provided in the tables accompanying this press release.
• Ended the fourth quarter with over $2.3 billion of immediate liquidity, including full availability under the company’s $2.0 billion unsecured revolving credit facility, and $334.7 million of cash and cash equivalents. In addition, Kimco Realty’s investment in ACI, which is subject to certain lock-up provisions, was valued at over $1.2 billion at year-end.
• Subsequently, the company’s board of directors approved an extension of Kimco Realty’s existing stock repurchase program for up to $300.0 million of shares of the company’s common stock of which $224.9 million remains available. The repurchase program is now scheduled to expire on February 29, 2024, unless further extended or cancelled by the company’s board of directors. Under the repurchase program, repurchases can be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with the rules of the Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. The repurchase program does not obligate the company to acquire any particular amount of common stock, and the repurchase program may be suspended or discontinued at any time at the company’s discretion.
Senior Leadership Appointments:
The company has elevated several members of its senior leadership team in recognition of their distinguished service, successful oversight of key strategic initiatives and commitment to maintaining Kimco Realty’s standing as a best-in-class organization. These appointments also highlight the depth and breadth of the company’s strong management team:
• Leah Landro – Executive Vice President and Chief Human Resources Officer
• Tom Taddeo – Executive Vice President and Chief Information Officer
• Kathleen Thayer – Senior Vice President, Corporate Accounting and Assistant Treasurer
• Will Teichman – Senior Vice President, Strategic Operations
All appointments are effective immediately.
As previously announced:
• Kimco Realty’s board of directors raised the quarterly cash dividend on common shares 11.8% by declaring a dividend of $0.19 per common share, payable on March 24, 2022, to shareholders of record on March 10, 2022. iv
• The board of directors also declared quarterly dividends with respect to each of the company’s Class L and Class M series of cumulative redeemable preferred shares. These dividends on the preferred shares will be paid on April 15, 2022 to shareholders of record on April 1, 2022.