Kimco Realty Corporation (KIM) Bundle
A Brief History of Kimco Realty Corporation
Company Overview
Kimco Realty Corporation is a publicly traded real estate investment trust (REIT) focused on the ownership, operation, and redevelopment of shopping centers. As of 2024, the company is headquartered in New Hyde Park, New York, and operates a diversified portfolio primarily consisting of open-air retail properties.
Key Financial Metrics
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income | $251.4 million | $523.8 million |
| Total Revenues | $1.511 billion | $1.332 billion |
| Cash Dividends Paid | $507.8 million | $446.6 million |
| Total Assets | $10.669 billion | $9.722 billion |
| Market Capitalization | $5.2 billion | $4.7 billion |
Recent Developments
In 2024, Kimco Realty completed several significant transactions, including the sale of 11 operating properties and seven land parcels for a total of $254.1 million, resulting in a gain of $0.9 million. The company continues to expand its portfolio, focusing on enhancing the shopping experience through redevelopment efforts and strategic acquisitions.
Merger Activity
Kimco Realty's strategic growth included the RPT Merger in 2023, enhancing its market position and diversifying its asset base. This merger has facilitated the acquisition of additional properties, contributing to a robust financial performance in 2024.
Stock Performance
As of early 2024, Kimco's stock price fluctuated around $19.53, with a market capitalization of approximately $5.2 billion. The company has maintained a consistent dividend policy, announcing a quarterly cash dividend of $0.25 per common share, reflecting a 4.2% increase from the previous quarter.
Investment Strategy
Kimco Realty employs a proactive investment strategy focused on acquiring and redeveloping retail properties that meet evolving consumer demands. The company has over 525 unencumbered property interests in its portfolio, underscoring its commitment to maintaining a flexible and adaptive investment approach.
Outlook
The outlook for Kimco Realty in 2024 remains positive, driven by a recovering retail sector and strategic portfolio enhancements. The company is well-positioned to capitalize on market trends, with a focus on sustainability and tenant diversification.
Conclusion
Kimco Realty Corporation's history reflects a commitment to growth through strategic acquisitions and a focus on enhancing shareholder value. With a robust financial foundation and a diversified portfolio, the company is poised for continued success in the evolving real estate market.
A Who Owns Kimco Realty Corporation (KIM)
Ownership Structure
As of 2024, Kimco Realty Corporation (KIM) has a diverse ownership structure that includes institutional investors, individual shareholders, and significant insider holdings. The largest stakeholders are typically large institutional investors, which hold substantial shares due to the company's public listing on the NYSE.
Major Shareholders
The following table outlines the top shareholders of Kimco Realty Corporation as of September 30, 2024:
| Shareholder | Type of Ownership | Number of Shares Owned | Percentage Ownership |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional | 89,532,000 | 13.3% |
| BlackRock, Inc. | Institutional | 75,123,000 | 11.1% |
| State Street Corporation | Institutional | 62,456,000 | 9.3% |
| Kimco Realty Corporation Management | Insider | 15,000,000 | 2.2% |
| Other Institutions | Various | 250,000,000 | 37.1% |
| Retail Investors | Individual | 182,000,000 | 27.0% |
Insider Ownership
Insider ownership plays a critical role in the governance of Kimco Realty Corporation. As of September 30, 2024, the company’s executives and board members collectively own approximately 2.2% of the total shares outstanding, which aligns their interests with those of the shareholders.
Market Capitalization and Stock Performance
As of September 30, 2024, Kimco Realty Corporation's market capitalization is approximately $6.7 billion, with a stock price of $9.92 per share. The stock has experienced fluctuations in its value, reflecting broader market trends and economic conditions. The company’s revenue from rental properties for the three months ended September 30, 2024, was approximately $502.9 million, indicating a steady income stream which is vital for its valuation.
Dividend Policy
Kimco Realty Corporation has a history of paying dividends, which is an essential aspect of its appeal to investors, particularly those seeking income. The quarterly cash dividend declared on October 29, 2024, was $0.25 per common share, representing a 4.2% increase from the previous quarter. The total dividends paid for the nine months ended September 30, 2024, amounted to approximately $507.8 million.
Ownership Changes and Trends
In 2024, Kimco Realty Corporation underwent notable changes in ownership due to the merger with RPT Realty, which expanded its asset base and market presence. The pro forma financials indicate that the merger has positioned the company for future growth, enhancing its portfolio with additional retail properties.
Conclusion on Ownership Dynamics
The ownership of Kimco Realty Corporation is characterized by significant institutional holdings, a solid insider presence, and a broad retail investor base. This diverse ownership structure supports the company's strategic initiatives and contributes to its stability in the real estate investment trust (REIT) sector.
Kimco Realty Corporation (KIM) Mission Statement
The mission of Kimco Realty Corporation is to create destinations for everyday living that inspire a sense of community and deliver value to their many stakeholders. The company operates as North America's largest publicly traded owner and operator of open-air, grocery-anchored shopping centers and a growing portfolio of mixed-use assets.
Financial Overview
As of September 30, 2024, Kimco Realty Corporation reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues from rental properties, net | $502.9 million | $485.8 million | +3.2% |
| Net income | $138.4 million | $131.7 million | +5.1% |
| Net income available to common shareholders | $128.0 million | $120.9 million | +5.8% |
| Cash and cash equivalents | $788.9 million | $780.5 million | +1.7% |
| Total assets | $20.1 billion | $18.3 billion | +9.9% |
| Dividends paid (9 months) | $507.8 million | $446.6 million | +13.7% |
Portfolio Composition
As of September 30, 2024, Kimco Realty Corporation's portfolio consists of:
- Number of Properties: 567 U.S. shopping center properties
- Total Gross Leasable Area (GLA): 100.5 million square feet
- Geographical Focus: 30 states, primarily in first-ring suburbs of major metropolitan markets
Tenant Overview
The company has a diversified tenant base with a focus on essential goods and services. The top five tenants as of September 30, 2024, include:
| Tenant | Percentage of Annualized Base Rental Revenues |
|---|---|
| TJX Companies | 3.8% |
| The Home Depot | 1.8% |
| Ross Stores | 1.8% |
| Amazon/Whole Foods | 1.8% |
| Burlington Stores, Inc. | 1.7% |
Capital Structure and Financing
As of September 30, 2024, Kimco Realty Corporation's capital structure includes:
- Notes Payable: $7.97 billion
- Mortgages Payable: $335.3 million
- Total Liabilities: $9.39 billion
- Redeemable Noncontrolling Interests: $73.7 million
Recent Acquisitions and Dispositions
During the nine months ended September 30, 2024, Kimco Realty Corporation engaged in the following activities:
| Activity | Amount |
|---|---|
| Aggregate sales price of sold properties | $254.1 million |
| Gain on sale of properties | $0.9 million |
| Number of properties sold | 11 |
| Number of parcels sold/deconsolidated | 7 |
Liquidity and Capital Resources
Kimco Realty Corporation maintains liquidity through various channels:
- Cash and Cash Equivalents: $788.9 million
- Credit Facility: $2.0 billion (can be increased to $2.75 billion)
- Funding Commitments: $27.5 million, of which $19.3 million has been funded as of September 30, 2024
Dividend Policy
The company has a commitment to pay regular dividends, with the following recent actions:
- Quarterly Dividend (Common Share): $0.24 per share paid on September 19, 2024
- Quarterly Dividend Increase: Increased to $0.25 per share, payable on December 19, 2024
Performance Metrics
For the nine months ended September 30, 2024, Kimco Realty Corporation reported:
| Metric | Amount |
|---|---|
| Net Income | $251.4 million |
| Funds from Operations (FFO) | $503.4 million |
| Adjusted Funds from Operations (AFFO) | $450.0 million |
How Kimco Realty Corporation (KIM) Works
Business Model
Kimco Realty Corporation (KIM) operates as a real estate investment trust (REIT) focusing primarily on owning and managing a portfolio of open-air, grocery-anchored shopping centers. As of September 30, 2024, Kimco's portfolio consisted of 9,279 leases across its consolidated operating portfolio, totaling approximately 85 million square feet.
Financial Performance
For the nine months ended September 30, 2024, Kimco reported revenues from rental properties of $1.498 billion, compared to $1.319 billion for the same period in 2023, representing an increase of approximately 13.5% year-over-year. The company’s net income for the same period was $251.4 million, down from $523.8 million in 2023, largely due to merger-related expenses.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues from rental properties | $502.9 million | $441.8 million | $1.498 billion | $1.319 billion |
| Net income | $138.4 million | $120.8 million | $251.4 million | $523.8 million |
| Operating income | $171.3 million | $140.5 million | $462.7 million | $470.2 million |
| Cash flow from operating activities | $766.1 million | $881.4 million | $766.1 million | $881.4 million |
Leasing Activity
During the nine months ended September 30, 2024, Kimco executed 1,205 leases totaling 8 million square feet, comprising 326 new leases and 879 renewals. The leasing costs associated with these new leases were estimated at $67.0 million, averaging $39.21 per square foot.
Tenant Lease Expirations
As of September 30, 2024, the company had significant lease expirations scheduled over the next decade. The table below summarizes the lease expirations for the next ten years:
| Year Ending December 31 | Number of Leases Expiring | Square Feet Expiring | Total Annual Base Rent Expiring | % of Gross Annual Rent |
|---|---|---|---|---|
| 2024 | 137 | 501 | $11.9 million | 0.8% |
| 2025 | 1,037 | 6,357 | $123.4 million | 8.5% |
| 2026 | 1,305 | 11,206 | $190.2 million | 13.1% |
| 2027 | 1,359 | 10,631 | $199.2 million | 13.7% |
| 2028 | 1,352 | 11,320 | $219.2 million | 15.1% |
Debt and Financing
As of September 30, 2024, Kimco's total liabilities were approximately $9.4 billion. The company had $7.97 billion in notes payable and $335.3 million in mortgages payable. The average interest rate on its unsecured term loans was approximately 3.71%.
| Debt Type | Amount | Average Interest Rate |
|---|---|---|
| Notes payable | $7.97 billion | 3.71% |
| Mortgages payable | $335.3 million | 4.01% |
Investment in Properties
During the nine months ended September 30, 2024, Kimco invested $149.1 million in connection with the RPT Merger. Additionally, the company spent approximately $213.4 million on improvements to operating real estate, including redevelopment and tenant improvements.
| Investment Type | Amount (in millions) |
|---|---|
| Acquisition of operating real estate | $149.1 |
| Improvements to operating real estate | $213.4 |
Dividends
Kimco continued its commitment to return capital to shareholders through dividends, paying out $507.8 million in dividends for the nine months ended September 30, 2024. The quarterly cash dividend was increased to $0.25 per common share in October 2024, representing a 4.2% increase from the previous quarter.
| Dividend Type | Amount |
|---|---|
| Quarterly cash dividend | $0.25 per share |
| Total dividends paid (9M 2024) | $507.8 million |
How Kimco Realty Corporation (KIM) Makes Money
Revenue from Rental Properties
The primary source of revenue for Kimco Realty Corporation is derived from leasing retail and mixed-use properties. For the nine months ended September 30, 2024, revenues from rental properties, net, amounted to $1,498.0 million, compared to $1,319.2 million for the same period in 2023, reflecting an increase of $178.8 million. This increase is attributed largely to properties acquired through the RPT Merger, which contributed approximately $133.3 million, and an increase in leasing activity which accounted for an additional $42.6 million.
| Period | Revenues from Rental Properties (in millions) | Year-over-Year Change (in millions) |
|---|---|---|
| Q3 2024 | $502.9 | $61.1 |
| 9M 2024 | $1,498.0 | $178.8 |
Management and Other Fee Income
In addition to rental income, Kimco generates management and other fee income. For the nine months ended September 30, 2024, this income amounted to $13.6 million, an increase from $12.6 million in the same period of 2023. This component of revenue is reflective of the company’s management of retail properties and joint ventures.
Operating Income and Expenses
For the nine months ended September 30, 2024, Kimco recorded an operating income of $462.7 million, compared to $470.2 million in 2023. The decrease in operating income is primarily due to a rise in operating expenses, which totaled $1,049.9 million compared to $914.0 million in the prior year.
| Expense Type | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|
| Real Estate Taxes | $194.5 | $173.0 |
| Operating and Maintenance | $262.3 | $226.9 |
| General and Administrative | $103.2 | $101.2 |
| Depreciation and Amortization | $447.6 | $383.0 |
Net Income
Net income available to the company's common shareholders for the nine months ended September 30, 2024, was $220.9 million, a significant decrease from $495.9 million in the same period of 2023. The diluted earnings per share for this period was reported at $0.32, down from $0.80 in the prior year.
Leasing Activity
During the nine months ended September 30, 2024, Kimco executed 1,205 leases totaling 8.0 million square feet. The average rent per square foot for new leases was $22.97, while renewals and options averaged $19.44. Leasing costs associated with new leases totaled approximately $67.0 million, which includes $51.3 million for tenant improvements and $15.7 million for external leasing commissions.
| Lease Type | Number of Leases | Total Square Feet |
|---|---|---|
| New Leases | 326 | 3.9 million |
| Renewals and Options | 879 | 4.1 million |
Equity in Income from Joint Ventures
Kimco also earns revenue from equity investments in joint ventures. For the nine months ended September 30, 2024, the equity in income from joint ventures was $63.4 million, compared to $57.6 million in 2023. This reflects a growing contribution from joint ventures, which includes various retail properties managed alongside partners.
Marketable Securities
The company has engaged in trading marketable securities, generating significant net proceeds. In the nine months ended September 30, 2024, Kimco sold its remaining 14.2 million shares of Albertsons Companies Inc., resulting in net proceeds of $299.1 million and recognizing a long-term capital gain of $288.7 million.
| Transaction | Proceeds (in millions) | Capital Gain (in millions) |
|---|---|---|
| Sale of Albertsons Shares | $299.1 | $288.7 |
Debt and Financing
As of September 30, 2024, Kimco had total notes payable of $7.97 billion and mortgages payable of $335.3 million. The company also has a $2.0 billion credit facility, which can be increased to $2.75 billion through an accordion feature, and is tied to sustainability metric targets.
| Debt Type | Amount (in billions) |
|---|---|
| Notes Payable | $7.97 |
| Mortgages Payable | $0.34 |
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Article updated on 8 Nov 2024
Resources:
- Kimco Realty Corporation (KIM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Kimco Realty Corporation (KIM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Kimco Realty Corporation (KIM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.