Kimco Realty Announces Fourth Quarter and Full Year 2012 Operating Results; Reports a 10 Percent Increase in FFO as Adjusted of $0.33 per Diluted Share for the Fourth Quarter 2012

Tue Feb 5, 2013 4:01pm EST

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NEW HYDE PARK, N.Y.--(Business Wire)--
Kimco Realty Corp. (NYSE: KIM) today reported results for the fourth quarter and
year ended December 31, 2012. 

Highlights for the Fourth Quarter and Full Year 2012 and Subsequent Activity:

* Reported funds from operations as adjusted of $0.33 per diluted share for the
fourth quarter and $1.26 for the full year 2012, representing increases of ten
percent and five percent, respectively, over the same periods in the prior year;

* Pro-rata occupancy increased to 93.8 percent and 93.9 percent in the combined
and U.S. shopping center portfolios, respectively, and represents the highest
occupancy levels since the third quarter of 2008; 
* Recognized positive U.S. cash-basis leasing spreads of 11.8 percent; new
leases increased 25.5 percent and renewals/options increased 6.1 percent during
the fourth quarter; 
* Combined same-property net operating income (NOI) increased 3.4 percent from
the fourth quarter 2011, representing the eleventh consecutive quarter with a
positive increase; 
* U.S. transaction volume exceeded $1.2 billion in 2012 as the company acquired
interests in 27 properties for a gross price of $653.6 million while disposing
of 68 shopping centers for a gross amount of $631.8 million; 
* Issued $800 million of preferred stock in 2012 to replace $635 million of
existing preferred stock and $198.9 million in senior unsecured notes providing
the company with an annual cost savings of approximately $13 million, or $0.03
per diluted share annually, offsetting one-time non-cash redemption charges of
$21.7 million, or $0.05 per diluted share; and 
* Subsequently in January 2013, the company announced its participation in the
consortium to acquire five grocery banners totaling 877 locations from SUPERVALU
INC. (NYSE: SVU) as well as the tender offer for up to 30 percent of the
outstanding SUPERVALU shares;

Financial Results

Net income available to common shareholders for the fourth quarter of 2012 was
$59.2 million, or $0.14 per diluted share, compared to $31.6 million, or $0.08
per diluted share, for the fourth quarter of 2011. For the full year 2012, net
income available to common shareholders was $172.7 million, or $0.42 per diluted
share, compared to $109.7 million, or $0.27 per diluted share, for the full year
2011. 

Funds from operations (FFO), a widely accepted supplemental measure of REIT
performance, was $127.2 million, or $0.31 per diluted share, for the fourth
quarter of 2012 compared to $135.4 million, or $0.33 per diluted share, for the
fourth quarter of 2011. The decrease in FFO in the fourth quarter of 2012 was
due to a $19.5 million reduction in transaction income as a result of a $15.5
million non-cash charge in connection with the redemption of the company`s Class
G $460 million 7.75 percent cumulative redeemable preferred shares in October
2012. The decrease in transaction income was partially offset by a $10.4 million
increase in net operating income for the fourth quarter of 2012 compared to the
same period in 2011. 

For the full year 2012, FFO was $510.4 million, or $1.25 per diluted share,
compared to $517.8 million, or $1.27 per diluted share, for the same period last
year. The decrease in FFO for the full year 2012 was attributable to non-cash
redemption charges of $21.7 million, or $0.05 per diluted share in connection
with the redemption of two existing classes of preferred stock during 2012. 

FFO as adjusted, which excludes the effects of non-operating impairments and
transactional income and expenses, was $134.8 million, or $0.33 per diluted
share, for the fourth quarter of 2012 compared to $123.5 million, or $0.30 per
diluted share, for the fourth quarter of 2011. 

For the full year 2012, FFO as adjusted was $514.2 million, or $1.26 per diluted
share, compared to $489.8 million, or $1.20 per diluted share, for the same
period in 2011. 

A reconciliation of net income to FFO and FFO as adjusted is provided in the
tables accompanying this press release. 

Shopping Center Operating Results

Fourth quarter 2012 shopping center portfolio operating results: 

Combined Shopping Center Portfolio (includes U.S., Canada and Latin America)

* Pro-rata occupancy was 93.8 percent, an increase of 40 basis points
sequentially and 70 basis points over the fourth quarter of 2011; 
* Combined same-property NOI increased 3.4 percent over the fourth quarter of
2011; and 
* Total leases executed in the combined portfolio: 605 new leases, renewals and
options totaling 1.9 million square feet.

The combined same-property NOI for the fourth quarter of 2012 represents the
highest quarterly increase in same-property NOI since the fourth quarter of
2007. For the full year 2012, the combined same-property NOI increased 2.3
percent which was negatively impacted by 60 basis points due to foreign currency
changes. Excluding the effects of foreign currency, the combined same-property
NOI increased 2.9 percent for the full year 2012. Kimco reports same-property
NOI on a cash-basis, excluding lease termination fees and including charges for
bad debts. For the full year 2012, the company signed 2,678 new leases, renewals
and options totaling 10.0 million square feet representing approximately a 25
percent increase in pro-rata square footage over the same period in 2011. 

U.S. Shopping Center Portfolio

* Pro-rata occupancy was 93.9 percent, an increase of 50 basis points
sequentially and 80 basis points over the fourth quarter of 2011; 
* U.S. same-property NOI increased 3.1 percent during the fourth quarter of 2012
compared to the same period in 2011; and 
* Pro-rata U.S. cash-basis leasing spreads increased 11.8 percent; new leases
increased 25.5 percent, and renewals/options increased 6.1 percent.

In addition, the U.S. shopping center portfolio`s pro-rata occupancy for small
shop space (defined as space of less than 10,000 square feet) was 84.2 percent,
an increase of 30 basis points sequentially and 170 basis points from the fourth
quarter of 2011. 

Shopping Center Investment Activity

Acquisitions:

As previously announced, during the fourth quarter, Kimco acquired seven
properties in core markets for its consolidated portfolio, comprising 329,000
square feet, for a total price of $96.2 million, including $20 million of
mortgage debt. In addition, the company purchased the remaining ownership
interest in two unencumbered shopping centers from its joint venture partners,
comprising 189,000 square feet, for a gross price of $29.6 million. 

During 2012, the company acquired for its U.S. portfolio, the full interest in
24 shopping centers, comprising 2.7 million square feet, for a gross price of
$540 million, including $179.2 million of mortgage debt. These properties have
an average pro-rata occupancy of 97.2 percent and are supported by excellent
demographics, including an average population and household income of 102,000
and $100,000, respectively, within a three-mile radius. 

Also during 2012, the company, as part of separate joint ventures, acquired
interests in three Canadian shopping centers, comprising 377,000 square feet for
a gross price of USD $113.6 million, including $47.9 million of mortgage debt. 

SUPERVALU:

As previously announced, the company will participate in the consortium to
acquire five grocery banners totaling 877 locations from SUPERVALU INC. (SVU)
that includes Albertsons, Shaw`s, Jewel-Osco, Acme and Star Market chains. In
addition, this investment group has initiated a tender offer for up to 30
percent of the outstanding shares of SVU. Kimco will contribute up to $76.5
million as its investment and hold approximately a 15 percent interest in the
consortium. 

Dispositions:

As previously announced in the fourth quarter of 2012, Kimco sold 34 retail
properties, totaling 3.9 million square feet with an average pro-rata occupancy
of 90.4 percent, for approximately $246.1 million, including $35.4 million of
mortgage debt. Kimco`s share of the proceeds from these sales was $180.2
million. Key dispositions included the sales of two shopping center portfolios
located primarily in Ohio and Indiana totaling 22 properties for $131.1 million.


For the full year 2012, Kimco sold 68 shopping center properties in the U.S.,
comprising nearly 7.7 million square feet, for $631.8 million, including $153.8
million of mortgage debt. The company`s share of proceeds from these sales was
$385.8 million. These properties had an average pro-rata occupancy of 87.8
percent with an average population and household income of 76,000 and $63,000,
respectively, within a three-mile radius. 

Capital Structure

Kimco`s board of directors declared a quarterly cash dividend of $0.21 per
common share, payable on April 15, 2013 to shareholders of record on April 3,
2013, representing an ex-dividend date of April 1, 2013. 

The board of directors also declared quarterly dividends for the company`s
preferred shares as follows:

* For the Class H depositary shares, each representing 1/100 of a share of 6.90
percent Class H cumulative redeemable preferred shares, a quarterly dividend of
$0.43125 per preferred depositary share will be paid on April 15, 2013 to
shareholders of record on April 2, 2013, representing an ex-dividend date of
March 28, 2013; 
* For the Class I depositary shares, each representing 1/1000 of a share of 6.00
percent Class I cumulative redeemable preferred shares, a quarterly dividend of
$0.37500 per preferred depositary share will be paid on April 15, 2013 to
shareholders of record on April 2, 2013, representing an ex-dividend date of
March 28, 2013. 
* For the Class J depositary shares, each representing 1/1000 of a share of 5.50
percent Class J cumulative redeemable preferred shares, a quarterly dividend of
$0.34375 per preferred depositary share will be paid on April 15, 2013 to
shareholders of record on April 2, 2013, representing an ex-dividend date of
March 28, 2013.

In addition, the board of directors has declared the initial dividend for the
company`s Class K depositary shares, each representing 1/1000 of a share of
5.625 percent Class K cumulative redeemable preferred shares. This dividend of
$0.50000 per preferred depositary share will be paid on April 15, 2013 to
shareholders of record on April 2, 2013, representing an ex-dividend date of
March 28, 2013 and represents the period from December 7, 2012 through and
including April 14, 2013. 

During 2012, Kimco issued three new classes of cumulative redeemable preferred
stock totaling $800 million with a blended rate of 5.78 percent. The proceeds of
these transactions were used for general corporate purposes, including the
redemption of two existing classes of preferred stock, totaling $635 million
with a blended rate of 7.45 percent, and the repayment of a $198.9 million 6.0
percent senior unsecured notes that matured in November 2012. These capital
market activities will result in an annual cost savings of approximately $13
million, or $0.03 per diluted share. In connection with the redemption of the
two existing classes of preferred stock during 2012, Kimco incurred non-cash
redemption charges of $21.7 million, or $0.05 per diluted share. 

At December 31, 2012, Kimco`s consolidated net debt to EBITDA as adjusted was
5.7x compared to 6.2x from the prior year. In addition, the company maintains
access to approximately $1.7 billion of immediate liquidity. 

2013 Guidance

The company`s 2013 full-year guidance range for FFO as adjusted, which does not
include any estimate for transactional activities or non-operating impairments,
remains $1.28 - $1.33 per diluted share. 

Estimated 2013 shopping center portfolio metrics are as follows:

* Combined portfolio occupancy: +50 to +75 basis points 
* Combined same-property NOI: +2.5 to +3.5 percent

Conference Call and Supplemental Materials

Kimco will hold its quarterly conference call on Wednesday, February 6, 2013 at
10:00 a.m. Eastern Standard Time (EST). The call will include a review of the
company`s fourth quarter and full year 2012 results as well as a discussion of
the company`s strategy and expectations for the future. To participate, dial
1-877-883-0383 (Passcode: 3311960). 

A replay will be available through 9:00 a.m. EST on March 7, 2013 by dialing
1-877-344-7529 (Passcode: 10021794). Access to the live call and replay will be
available through the company's website at investors.kimcorealty.com. 

About Kimco

Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT)
headquartered in New Hyde Park, N.Y., that owns and operates North America`s
largest portfolio of neighborhood and community shopping centers. As of December
31, 2012, the company owned interests in 896 shopping centers comprising 131
million square feet of leasable space across 44 states, Puerto Rico, Canada,
Mexico and South America. Publicly traded on the NYSE since 1991, and included
in the S&P 500 Index, the company has specialized in shopping center
acquisitions, development and management for more than 50 years. For further
information, please visit www.kimcorealty.com, the company`s blog at
blog.kimcorealty.com, or follow Kimco on Twitter at www.twitter.com/kimcorealty.


Safe Harbor Statement

The statements in this news release state the company's and management's
intentions, beliefs, expectations or projections of the future and are
forward-looking statements. It is important to note that the company's actual
results could differ materially from those projected in such forward-looking
statements. Factors which may cause actual results to differ materially from
current expectations include, but are not limited to (i) general adverse
economic and local real estate conditions, (ii) the inability of major tenants
to continue paying their rent obligations due to bankruptcy, insolvency or a
general downturn in their business, (iii) financing risks, such as the inability
to obtain equity, debt or other sources of financing or refinancing on favorable
terms, (iv) the company`s ability to raise capital by selling its assets, (v)
changes in governmental laws and regulations, (vi) the level and volatility of
interest rates and foreign currency exchange rates, (vii) risks related to our
international operations, (viii) the availability of suitable acquisition and
disposition opportunities, (ix) valuation and risks related to our joint venture
and preferred equity investments, (x) valuation of marketable securities and
other investments, (xi) increases in operating costs, (xii) changes in the
dividend policy for the company`s common stock, (xiii) the reduction in the
company`s income in the event of multiple lease terminations by tenants or a
failure by multiple tenants to occupy their premises in a shopping center, (xiv)
impairment charges and (xv) unanticipated changes in the company`s intention or
ability to prepay certain debt prior to maturity and/or hold certain securities
until maturity. Additional information concerning factors that could cause
actual results to differ materially from those forward-looking statements is
contained from time to time in the company's Securities and Exchange Commission
filings, including but not limited to the company's Annual Report on Form 10-K
for the year ended December 31, 2011. Copies of each filing may be obtained from
the company or the Securities and Exchange Commission. 

The company refers you to the documents filed by the company from time to time
with the Securities and Exchange Commission, specifically the section titled
"Risk Factors" in the company's Annual Report on Form 10-K for the year ended
December 31, 2011, as may be updated or supplemented in the company`s Form 10-Q
filings, which discuss these and other factors that could adversely affect the
company's results.

                                                                                                                                                                                  
 Condensed Consolidated Statements of Income                                                                                                                                      
 (unaudited)                                                                                                                                                                      
 (in thousands, except share information)                                                                                                                                         
                                                                                                                                                                                  
                                                                                   Three Months Ended                               Year Ended                                    
                                                                                   December 31,                                     December 31,                                  
                                                                                        2012                     2011                   2012                   2011               
 Revenues                                                                                                                                                                         
 Revenues from rental properties                                                   $    229,073            $     212,463            $   884,782            $   825,737            
 Management and other fee income                                                        10,469                   8,494                  37,522                 35,320             
                                                                                                                                                                                  
 Total revenues                                                                         239,542                  220,957                922,304                861,057            
                                                                                                                                                                                  
 Operating expenses                                                                                                                                                               
 Rent                                                                                   3,304                    3,318                  12,761                 13,863             
 Real estate taxes                                                                      29,594                   26,695                 115,282                108,782            
 Operating and maintenance                                                              37,943                   31,499                 118,787                114,101            
 General and administrative expenses                                                    29,166                   28,689                 124,480                118,873            
 Provision for doubtful accounts                                                        80                       3,234                  6,880                  7,723              
 Impairment charges                                                                     18,463                   5,320                  37,111                 13,077             
 Depreciation and amortization                                                          64,070                   58,307                 249,493                231,712            
 Total operating expenses                                                               182,620                  157,062                664,794                608,131            
                                                                                                                                                                                  
 Operating income                                                                       56,922                   63,895                 257,510                252,926            
                                                                                                                                                                                  
 Other income/(expense)                                                                                                                                                           
 Mortgage financing income                                                              1,421                    1,546                  7,504                  7,273              
 Interest, dividends and other investment income                                        1,060                    2,394                  2,170                  16,567             
 Other expense, net                                                                     (1,802   )               (2,583   )             (7,971    )            (4,680    )        
 Interest expense                                                                       (56,043  )               (57,076  )             (227,595  )            (223,526  )        
 Income from other real estate investments                                              763                      762                    2,451                  3,824              
 Gain on sale of development properties                                                 -                        12,074                 -                      12,074             
                                                                                                                                                                                  
 Income from continuing operations before income taxes, equity in income of                                                                                                       
 joint ventures, gains on change in control of interests, and equity in income                                                                                                    
 from other real estate investments                                                     2,321                    21,012                 34,069                 64,458             
                                                                                                                                                                                  
 Benefit/(provision) for income taxes, net                                              802                      (6,968   )             (3,939    )            (21,330   )        
 Equity in income of joint ventures, net                                                23,308                   14,227                 112,896                63,467             
 Gains on change in control of interests                                                1,399                    -                      15,555                 569                
 Equity in income of other real estate investments, net                                 18,057                   16,690                 53,397                 51,813             
                                                                                                                                                                                  
 Income from continuing operations                                                      45,887             44,961                       211,978                158,977            
                                                                                                                                                                                  
 Discontinued operations                                                                                                                                                          
 Income from discontinued operating properties, net of tax                              112                      4,909                  3,084                  23,021             
 Impairment/loss on operating properties sold, net of tax                               (3,366   )               (8,424   )             (22,339   )            (17,343   )        
 Gain on disposition of operating properties                                            48,783                   8,605                  83,253                 17,327             
 Income from discontinued operations                                                    45,529                   5,090                  63,998                 23,005             
 Gain on sale of operating properties, net of tax (1)                                   239                      108                    4,299                  108                
 Net income                                                                             91,655                   50,159                 280,275                182,090            
                                                                                                                                                                                  
 Net income attributable to noncontrolling interests (3)                                (3,274   )               (3,762   )             (14,202   )            (13,039   )        
                                                                                                                                                                                  
 Net income attributable to the Company                                                 88,381                   46,397                 266,073                169,051            
                                                                                                                                                                                  
 Preferred stock redemption costs                                                       (15,490  )               -                      (21,703   )            -                  
 Preferred stock dividends                                                              (13,660  )               (14,841  )             (71,697   )            (59,363   )        
                                                                                                                                                                                  
 Net income available to the Company's common shareholders                         $    59,231             $     31,556             $   172,673            $   109,688            
 Per common share:                                                                                                                                                                
 Income from continuing operations: (3)                                                                                                                                           
 Basic                                                                             $    0.03               $     0.07               $   0.27               $   0.22               
 Diluted                                                                           $    0.03          (2)  $     0.07          (2)  $   0.27          (2)  $   0.21          (2)  
 Net income: (4)                                                                                                                                                                  
 Basic                                                                             $    0.14               $     0.08               $   0.42               $   0.27               
 Diluted                                                                           $    0.14          (2)  $     0.08          (2)  $   0.42          (2)  $   0.27          (2)  
                                                                                                                                                                                  
 Weighted average shares:                                                                                                                                                         
 Basic                                                                                  406,345                  406,554                405,997                406,530            
 Diluted                                                                                406,837                  407,341                406,689                407,669            
                                                                                                                                                                                  


 (1)    Included in the calculation of income from continuing operations per common share in accordance with SEC guidelines.                                                                                                                                                                                                                                                                       
 (2)    Reflects the potential impact if certain units were converted to common stock at the beginning of the period. The impact of the conversion would have an anti-dilutive effect on net income and therefore have not been included.                                                                                                                                                          
 (3)    Includes the net income attributable to noncontrolling interests related to continued operations of ($2,961) and ($2,568) for the quarters ended December 31, 2012 and 2011, respectively. Additionally, the net income attributable to noncontrolling interests related to continued operations of ($12,470) and ($11,661) for the years ended December 31, 2012 and 2011, respectively.  
 (4)    Includes earnings attributable to unvested restricted shares of $329 and $158 for the quarters ended December 31, 2012 and 2011, respectively. Additionally the earnings attributable to unvested restricted shares of $1,221 and $608 for the year ended December 31, 2012 and 2011, respectively.                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                   


                                                                                                                                                                                             
 Condensed Consolidated Balance Sheets                                                                                                                                                       
 (unaudited)                                                                                                                                                                                 
 (in thousands, except share information)                                                                                                                                                    
                                                                                                                                                                                             
                                                                                                                                        December 31,                December 31,             
                                                                                                                                        2012                        2011                     
 Assets:                                                                                                                                                                                     
 Operating real estate, net of accumulated depreciation of $1,745,462 and $1,693,090, respectively                                      $      7,104,562            $      6,898,445         
 Investments and advances in real estate joint ventures                                                                                        1,428,155                   1,404,214         
 Real estate under development                                                                                                                 97,263                      179,722           
 Other real estate investments                                                                                                                 317,557                     344,131           
 Mortgages and other financing receivables                                                                                                     70,704                      102,972           
 Cash and cash equivalents                                                                                                                     141,875                     112,882           
 Marketable securities                                                                                                                         36,541                      33,540            
 Accounts and notes receivable                                                                                                                 161,113                     164,053           
 Other assets                                                                                                                                  383,037                     388,803           
 Total assets                                                                                                                           $      9,740,807            $      9,628,762         
                                                                                                                                                                                             
 Liabilities:                                                                                                                                                                                
 Notes payable                                                                                                                          $      3,192,127            $      2,983,886         
 Mortgages payable                                                                                                                             1,003,190                   1,085,371         
 Construction loans payable                                                                                                                    -                           45,128            
 Dividends payable                                                                                                                             96,518                      92,159            
 Other liabilities                                                                                                                             435,416                     447,001           
 Total liabilities                                                                                                                             4,727,251                   4,653,545         
 Redeemable noncontrolling interests                                                                                                           81,076                      95,074            
                                                                                                                                                                                             
 Stockholders' equity:                                                                                                                                                                       
 Preferred stock, $1.00 par value, authorized 5,961,200 and 5,146,000 shares, respectively                                                                                                   
 102,000 and 984,000 shares issued (in series), respectively,                                                                                                                                
 104,400 and 954,000 shares outstanding (in series), respectively                                                                                                                            
 Aggregate liquidation preference $975,000 and $810,000, respectively                                                                          102                         954               
 Common stock, $.01 par value, authorized 750,000,000 shares issued and outstanding 407,782,102 and 406,937,830 shares, respectively           4,078                       4,069             
 Paid-in capital                                                                                                                               5,651,170                   5,492,022         
 Cumulative distributions in excess of net income                                                                                              (824,008   )                (702,999   )      
                                                                                                                                               4,831,342                   4,794,046         
 Accumulated other comprehensive income                                                                                                        (66,182    )                (107,660   )      
 Total stockholders' equity                                                                                                                    4,765,160                   4,686,386         
 Noncontrolling interests                                                                                                                      167,320                     193,757           
 Total equity                                                                                                                                  4,932,480                   4,880,143         
 Total liabilities and equity                                                                                                           $      9,740,807            $      9,628,762         
                                                                                                                                                                                             


                                                                                                                                                                             
 Reconciliation of Net Income Available to Common Shareholders                                                                                                               
 To Funds From Operations - "FFO"                                                                                                                                            
 (unaudited)                                                                                                                                                                 
 (in thousands, except per share data)                                                                                                                                       
                                                                                                                                                                             
                                                                                 Three Months Ended                              Year Ended                                  
                                                                                 December 31,                                    December 31,                                
                                                                                      2012                    2011                   2012                  2011              
 Net income available to common shareholders                                     $    59,231             $    31,556             $   172,673           $   109,688           
 Gain on disposition of operating property, net of noncontrolling interests           (49,023  )              (11,398  )             (84,828  )            (19,444  )        
 Gain on disposition of joint venture operating properties                            (4,914   )              (819     )             (27,927  )            (4,050   )        
 Depreciation and amortization - real estate related                                  63,246                  60,561                 257,278               246,746           
 Depr. and amort. - real estate jv's, net of noncontrolling interests                 32,228                  34,529                 133,734               138,482           
 Remeasurement of derivative instrument                                               -                       -                      -                     4,287             
 Impairments of operating properties, net of tax and noncontrolling interests         26,440                  21,014                 59,510                42,043            
 Funds from operations                                                                127,208                 135,443                510,440               517,752           
 Transactional charges / (income), net                                                7,560                   (11,932  )             3,761                 (27,972  )        
 Funds from operations as adjusted                                               $    134,768            $    123,511            $   514,201           $   489,780           
                                                                                                                                                                             
 Weighted average shares outstanding for FFO calculations:                                                                                                                   
 Basic                                                                                406,345                 406,554                405,997               406,530           
 Units                                                                                1,522                   1,532                  1,455                 1,528             
 Dilutive effect of equity awards                                                     1,829                   787                    2,106                 1,140             
 Diluted                                                                              409,696       (1)       408,873       (1)      409,558      (1)      409,198      (1)  
                                                                                                                                                                             
 FFO per common share - basic                                                    $    0.31               $    0.33               $   1.26              $   1.27              
 FFO per common share - diluted                                                  $    0.31          (1)  $    0.33          (1)  $   1.25         (1)  $   1.27         (1)  
 FFO as adjusted per common share - diluted                                      $    0.33          (1)  $    0.30          (1)  $   1.26         (1)  $   1.20         (1)  
                                                                                                                                                                             


 (1) Reflects the potential impact if certain units were converted to common stock at the beginning of the period. The impact of the conversion would have an anti-dilutive effect on funds from operations and therefore have not been included. Funds from operations would be increased by $572 and $264 for the three months ended December 31, 2012 and 2011, respectively and $2,127 and $1,017 for the year ended December 31, 2012 and 2011, respectively.                                                               
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 FFO is a widely accepted supplemental measure of REIT performance with the standards established by the National Association of Real Estate Investment Trusts (NAREIT). Given the company`s business as a real estate owner and operator, Kimco believes that FFO and FFO as adjusted is helpful to investors as a measure of its operating performance. NAREIT defines FFO as net income/(loss) attributable to common shareholders computed in accordance with generally accepted accounting principles, excluding (i) gains  
 or losses from sales of operating real estate assets and (ii) extraordinary items, plus (iii) depreciation and amortization of operating properties and (iv) impairment of depreciable real estate and in substance real estate equity investments. Included in these items are also the company`s share of unconsolidated real estate joint ventures and partnerships. FFO as adjusted excludes the effects of non-operating impairments, transactional income and expenses.                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 


                                                                                                                                                                  
 Reconciliation of Projected Diluted Net Income Per Common Share                                                                                                  
 to Projected Diluted Funds From Operations Per Common Share                                                                                                      
 (unaudited)                                                                                                                                                      
                                                                                                                                                                  
                                                                                                      Actual               Projected Range                        
                                                                                                      2012                 Full Year 2013                         
                                                                                                                           Low                   High             
 Projected diluted net income available to common shareholder per share                               $    0.42            $    0.37             $    0.41        
                                                                                                                                                                  
 Projected depreciation & amortization                                                                     0.63                 0.62                  0.64        
                                                                                                                                                                  
 Projected depreciation & amortization real estate joint ventures, net of noncontrolling interests         0.33                 0.31                  0.33        
                                                                                                                                                                  
 Gain on disposition of operating properties                                                               (0.21  )             (0.01  )              (0.03  )    
                                                                                                                                                                  
 Gain on disposition of joint venture operating properties, net of noncontrolling interests                (0.07  )             (0.01  )              (0.02  )    
                                                                                                                                                                  
 Impairments of operating properties, net of tax and noncontrolling interests                              0.15                 -                     -           
                                                                                                                                                                  
 Projected FFO per diluted common share                                                               $    1.25            $    1.28             $    1.33        
                                                                                                                                                                  
 Transactional income, net                                                                                 (0.04  )             -                     -           
                                                                                                                                                                  
 Preferred stock redemption charge                                                                         0.05                 -                     -           
                                                                                                                                                                  
 Non-operating impairments recognized, net of tax                                                          -                                                      
                                                                                                                                                                  
 Projected FFO, as adjusted per diluted common share                                                  $    1.26            $    1.28             $    1.33        
                                                                                                                                                                  


 Projections involve numerous assumptions such as rental income (including assumptions on percentage rent), interest rates, tenant defaults, occupancy rates, foreign currency exchange rates (such as the US-Canadian rate), selling prices of properties held for disposition, expenses (including salaries and employee costs), insurance costs and numerous other factors. Not all of these factors are determinable at this time and actual results may vary from the projected results, and may be above or below the range 
 indicated. The above range represents management`s estimate of results based upon these assumptions as of the date of this press release.                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 


Kimco Realty Corporation
David F. Bujnicki, 1-866-831-4297
Vice President, Investor Relations and Corporate Communications 



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