Kimco Reports First Quarter 2001 Operating Results Per-Share FFO Increases 11.2% to $1.09

Apr 26, 2001, 01:00 ET from Kimco Realty Corporation

    NEW HYDE PARK, N.Y., April 26 /PRNewswire/ -- Kimco Realty Corporation
 (NYSE:   KIM) today announced that first quarter funds from operations ("FFO"),
 a widely accepted measure of REIT performance, rose 16.6 percent to
 $70.5 million, from $60.5 million for the same period last year.  On a diluted
 per common share basis, first quarter FFO increased 11.2 percent to $1.09 from
 $0.98 a year ago.
     Net income for the first quarter ended March 31, 2001, rose 15.1 percent
 to $56.1 million, or $0.77 per diluted common share, from $48.7 million, or
 $0.69 per diluted common share, a year earlier.  The 2000 net income figure
 includes a gain on the sale of an operating property of $0.3 million.  This
 gain on sale has not been included in reported FFO for the period.  Revenues
 from rental property in the quarter were $121.6 million as compared to
 $112.4 million for the same quarter last year, an increase of 8.2%.
     Kimco's strong operating results were attributable to continued growth in
 operating income from its core shopping center portfolio despite the weakening
 retail environment, and from the Kimco Income REIT ("KIR") and Kimco
 Developers Inc. ("KDI"), two of the Company's more recent initiatives.  KIR
 contributed $5.2 million in FFO in the quarter, a 42.9 percent increase from
 the $3.6 million contribution a year earlier.  KIR is a joint venture
 investment vehicle established to invest in high quality properties financed
 primarily through the use of individual non-recourse mortgages.  KDI, Kimco's
 merchant building subsidiary, generated net profits after income taxes of
 $3.5 million during the quarter resulting from the sale of its completed
 project in Chandler, Arizona.  Kimco established KDI in January of this year
 to operate as a taxable subsidiary pursuant to the rules and regulations of
 the REIT Modernization Act.
     Commenting on the Company's first quarter operating results, Kimco's
 Chairman and CEO, Milton Cooper, said, "It is gratifying to see growth from
 several parts of our business; our core portfolio remains solid, KIR continued
 to grow and KDI is now contributing.  We will continue to focus on keeping our
 balance sheet strong and be ready to capitalize on opportunities."
 
     Kimco Income REIT
     During the quarter KIR continued to expand, acquiring an additional
 shopping center in Champaign, Illinois comprised of 112,000 square feet of
 gross leasable area for $11.3 million.  This shopping center, anchored by Best
 Buy, is 100% leased.  Most recently, KIR acquired a 529,000 square foot
 shopping center in Augusta, Georgia, which is 99.1% leased, for $61.4 million.
 Including the Augusta shopping center acquisition, KIR has grown to a total of
 55 shopping centers totaling more than 9.8 million square feet of gross
 leasable area located in 19 states.
 
     Kimco Developers, Inc.
     KDI, which substantially pre-leases its projects and builds to sell,
 acquired three additional land parcels for development located in: Raleigh,
 North Carolina, Columbus, Ohio and Tampa, Florida.  KDI currently has 11
 projects, in various stages of development, with potential gross leasable area
 in excess of 4.0 million square feet.  Kimco's net investment in KDI's
 development projects is approximately $132.5 million.  As previously
 announced, the Company sold its recently completed shopping center in
 Chandler, Arizona for $32.5 million.
 
     Montgomery Ward
     During the quarter Kimco announced that it is leading a joint venture that
 has been awarded asset designation rights for all of the real estate property
 interests of the bankrupt estate of Montgomery Ward LLC and its affiliates.
 These property interests include all 250 former Montgomery Ward retail
 locations and other operating real estate assets; in total, the designation
 rights include 315 separate fee simple and leasehold property interests.
 Designations for 74 former Ward properties have been announced and the Company
 is working closely with users for a substantial number of the remaining sites.
 Retailers that have announced they will be taking stores include Target,
 Sears, May and Dillard's.  Due to the nature of the agreement, the timing and
 extent of the impact that this transaction will have on funds from operations
 has not been determined.
 
     Management Appointments
     On March 28th Kimco announced the appointment of David B. Henry as its
 Chief Investment Officer and his nomination for election as Vice Chairman of
 the Board of Directors.  It is anticipated that Mr. Henry will become Kimco's
 Chief Executive Officer in one year and Milton Cooper will remain active with
 the Company as Chairman of the Board.  In connection with Mr. Henry's
 appointment he was awarded 25,000 shares of Kimco Common Stock valued at
 $1.1 million.  This charge is included in the March 31, 2001 quarterly
 operating results.
     In addition, Kimco recently appointed Mitchell Margolis as Vice President
 and Chief Information Officer.  Mr. Margolis joined Kimco after spending
 15 years at Tishman-Speyer where he was Senior Director of Technology.  He is
 responsible for continuing the development of a cost effective, high
 performance technology infrastructure for the Company.
     Kimco, a publicly-traded real estate investment trust, has specialized in
 shopping center acquisitions, development and management for 35 years.  Kimco
 owns and operates the nation's largest portfolio of neighborhood and community
 shopping centers with interests in 500 properties comprising approximately
 67.0 million square feet of leasable space located throughout 41 states.  For
 further information refer to the Company's web site at
 http://www.kimcorealty.com.
 
     Safe Harbor Statement:  The statements in this release state the Company's
 and management's hopes, 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 that could cause actual results to
 differ materially from current expectations include general economic
 conditions, local real estate conditions, increases in interest rates,
 increases in operating costs and real estate taxes.  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 SEC filings, including but not limited to the Company's report on
 Form 10-K for the year ended December 31, 2000.  Copies of each filing may be
 obtained from the Company or the SEC.
 
                            Kimco Realty Corporation
                  Condensed Consolidated Statements of Income
                     (In thousands, except per share data)
 
 
                                                   Three Months Ended
                                                         March 31,
                                                    2001           2000
     Operating Results
     Revenues from rental property             $ 121,601       $112,356
     Rental property expenses:
      Rent                                         3,456          3,415
      Real estate taxes                           14,375         13,027
      Interest                                    22,775         22,284
      Operating and maintenance                   15,376         11,801
      Depreciation and amortization               18,210         17,074
                                                  74,192         67,601
 
     Income from rental property                  47,409         44,755
     Income from investment in
      retail stores leases                           972          1,013
                                                  48,381         45,768
 
     Equity in income of KIR                       2,913          2,348
     Management fee income                         2,165          1,520
     Operating and administrative expenses        (7,791)        (6,221)
     Other income, net                             6,930          4,991
     Income before gain on sale
     of shopping center properties
      and income taxes                            52,598         48,406
 
     Gain on sale of development property          5,392             --
     Gain on sale of operating property               --            303
 
     Income before income taxes                   57,990         48,709
 
     Provision for income taxes                   (1,937)            --
 
     Net income                                  $56,053        $48,709
     Net income applicable
      to common shares                           $49,484        $42,091
 
     Per common share:
     Net income
      Basic                                        $0.78          $0.69
      Diluted                                      $0.77(2)       $0.69(1)
 
                            Kimco Realty Corporation
                             Funds from Operations
                     (In thousands, except per share data)
 
                                                    Three Months Ended
                                                          March 31,
                                                    2001           2000
     Net income                                  $56,053        $48,709
     Depreciation and amortization                18,210         17,074
     Depreciation and amortization -
     KIR                                           2,300          1,300
     Depreciation and amortization -
     other real estate joint ventures                500            300
     Gain on sale of operating property               --           (303)
     Preferred stock dividends                    (6,569)        (6,618)
 
     Funds from operations                       $70,494        $60,462
     Per common share:
     Basic                                         $1.11          $0.99
     Diluted                                       $1.09(2)       $0.98(2)
 
     Weighted Average Share Information
 
                                                    Three Months Ended
                                                          March 31,
                                                    2001           2000
     Weighted average shares -
     Net income calculation
     Basic                                        63,306         60,796
     Diluted                                      66,596(2)      61,251(1)
 
     Weighted average shares -
     FFO calculation
     Basic                                        63,306         60,796
     Diluted                                      66,596(2)      63,912(2)
 
      (1) The conversion of the Company's Class D preferred stock would have an
          anti-dilutive effect on the calculation of net income per share for
          the respective period.  Accordingly, the impact of such conversion
          has not been included in the determination of diluted net income per
          common share.
 
      (2) Reflects the potential impact on the calculation of net income and
          FFO per share if the Company's Class D preferred stock was converted
          at the beginning of the period.  Net income and FFO would be
          increased by $1,960 for the three months ended March 31, 2001.  FFO
          would be increased by $2,009 for the three months ended March 31,
          2000.  Amounts represent the dividends paid on the Class D preferred
          stock.
 
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SOURCE Kimco Realty Corporation
    NEW HYDE PARK, N.Y., April 26 /PRNewswire/ -- Kimco Realty Corporation
 (NYSE:   KIM) today announced that first quarter funds from operations ("FFO"),
 a widely accepted measure of REIT performance, rose 16.6 percent to
 $70.5 million, from $60.5 million for the same period last year.  On a diluted
 per common share basis, first quarter FFO increased 11.2 percent to $1.09 from
 $0.98 a year ago.
     Net income for the first quarter ended March 31, 2001, rose 15.1 percent
 to $56.1 million, or $0.77 per diluted common share, from $48.7 million, or
 $0.69 per diluted common share, a year earlier.  The 2000 net income figure
 includes a gain on the sale of an operating property of $0.3 million.  This
 gain on sale has not been included in reported FFO for the period.  Revenues
 from rental property in the quarter were $121.6 million as compared to
 $112.4 million for the same quarter last year, an increase of 8.2%.
     Kimco's strong operating results were attributable to continued growth in
 operating income from its core shopping center portfolio despite the weakening
 retail environment, and from the Kimco Income REIT ("KIR") and Kimco
 Developers Inc. ("KDI"), two of the Company's more recent initiatives.  KIR
 contributed $5.2 million in FFO in the quarter, a 42.9 percent increase from
 the $3.6 million contribution a year earlier.  KIR is a joint venture
 investment vehicle established to invest in high quality properties financed
 primarily through the use of individual non-recourse mortgages.  KDI, Kimco's
 merchant building subsidiary, generated net profits after income taxes of
 $3.5 million during the quarter resulting from the sale of its completed
 project in Chandler, Arizona.  Kimco established KDI in January of this year
 to operate as a taxable subsidiary pursuant to the rules and regulations of
 the REIT Modernization Act.
     Commenting on the Company's first quarter operating results, Kimco's
 Chairman and CEO, Milton Cooper, said, "It is gratifying to see growth from
 several parts of our business; our core portfolio remains solid, KIR continued
 to grow and KDI is now contributing.  We will continue to focus on keeping our
 balance sheet strong and be ready to capitalize on opportunities."
 
     Kimco Income REIT
     During the quarter KIR continued to expand, acquiring an additional
 shopping center in Champaign, Illinois comprised of 112,000 square feet of
 gross leasable area for $11.3 million.  This shopping center, anchored by Best
 Buy, is 100% leased.  Most recently, KIR acquired a 529,000 square foot
 shopping center in Augusta, Georgia, which is 99.1% leased, for $61.4 million.
 Including the Augusta shopping center acquisition, KIR has grown to a total of
 55 shopping centers totaling more than 9.8 million square feet of gross
 leasable area located in 19 states.
 
     Kimco Developers, Inc.
     KDI, which substantially pre-leases its projects and builds to sell,
 acquired three additional land parcels for development located in: Raleigh,
 North Carolina, Columbus, Ohio and Tampa, Florida.  KDI currently has 11
 projects, in various stages of development, with potential gross leasable area
 in excess of 4.0 million square feet.  Kimco's net investment in KDI's
 development projects is approximately $132.5 million.  As previously
 announced, the Company sold its recently completed shopping center in
 Chandler, Arizona for $32.5 million.
 
     Montgomery Ward
     During the quarter Kimco announced that it is leading a joint venture that
 has been awarded asset designation rights for all of the real estate property
 interests of the bankrupt estate of Montgomery Ward LLC and its affiliates.
 These property interests include all 250 former Montgomery Ward retail
 locations and other operating real estate assets; in total, the designation
 rights include 315 separate fee simple and leasehold property interests.
 Designations for 74 former Ward properties have been announced and the Company
 is working closely with users for a substantial number of the remaining sites.
 Retailers that have announced they will be taking stores include Target,
 Sears, May and Dillard's.  Due to the nature of the agreement, the timing and
 extent of the impact that this transaction will have on funds from operations
 has not been determined.
 
     Management Appointments
     On March 28th Kimco announced the appointment of David B. Henry as its
 Chief Investment Officer and his nomination for election as Vice Chairman of
 the Board of Directors.  It is anticipated that Mr. Henry will become Kimco's
 Chief Executive Officer in one year and Milton Cooper will remain active with
 the Company as Chairman of the Board.  In connection with Mr. Henry's
 appointment he was awarded 25,000 shares of Kimco Common Stock valued at
 $1.1 million.  This charge is included in the March 31, 2001 quarterly
 operating results.
     In addition, Kimco recently appointed Mitchell Margolis as Vice President
 and Chief Information Officer.  Mr. Margolis joined Kimco after spending
 15 years at Tishman-Speyer where he was Senior Director of Technology.  He is
 responsible for continuing the development of a cost effective, high
 performance technology infrastructure for the Company.
     Kimco, a publicly-traded real estate investment trust, has specialized in
 shopping center acquisitions, development and management for 35 years.  Kimco
 owns and operates the nation's largest portfolio of neighborhood and community
 shopping centers with interests in 500 properties comprising approximately
 67.0 million square feet of leasable space located throughout 41 states.  For
 further information refer to the Company's web site at
 http://www.kimcorealty.com.
 
     Safe Harbor Statement:  The statements in this release state the Company's
 and management's hopes, 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 that could cause actual results to
 differ materially from current expectations include general economic
 conditions, local real estate conditions, increases in interest rates,
 increases in operating costs and real estate taxes.  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 SEC filings, including but not limited to the Company's report on
 Form 10-K for the year ended December 31, 2000.  Copies of each filing may be
 obtained from the Company or the SEC.
 
                            Kimco Realty Corporation
                  Condensed Consolidated Statements of Income
                     (In thousands, except per share data)
 
 
                                                   Three Months Ended
                                                         March 31,
                                                    2001           2000
     Operating Results
     Revenues from rental property             $ 121,601       $112,356
     Rental property expenses:
      Rent                                         3,456          3,415
      Real estate taxes                           14,375         13,027
      Interest                                    22,775         22,284
      Operating and maintenance                   15,376         11,801
      Depreciation and amortization               18,210         17,074
                                                  74,192         67,601
 
     Income from rental property                  47,409         44,755
     Income from investment in
      retail stores leases                           972          1,013
                                                  48,381         45,768
 
     Equity in income of KIR                       2,913          2,348
     Management fee income                         2,165          1,520
     Operating and administrative expenses        (7,791)        (6,221)
     Other income, net                             6,930          4,991
     Income before gain on sale
     of shopping center properties
      and income taxes                            52,598         48,406
 
     Gain on sale of development property          5,392             --
     Gain on sale of operating property               --            303
 
     Income before income taxes                   57,990         48,709
 
     Provision for income taxes                   (1,937)            --
 
     Net income                                  $56,053        $48,709
     Net income applicable
      to common shares                           $49,484        $42,091
 
     Per common share:
     Net income
      Basic                                        $0.78          $0.69
      Diluted                                      $0.77(2)       $0.69(1)
 
                            Kimco Realty Corporation
                             Funds from Operations
                     (In thousands, except per share data)
 
                                                    Three Months Ended
                                                          March 31,
                                                    2001           2000
     Net income                                  $56,053        $48,709
     Depreciation and amortization                18,210         17,074
     Depreciation and amortization -
     KIR                                           2,300          1,300
     Depreciation and amortization -
     other real estate joint ventures                500            300
     Gain on sale of operating property               --           (303)
     Preferred stock dividends                    (6,569)        (6,618)
 
     Funds from operations                       $70,494        $60,462
     Per common share:
     Basic                                         $1.11          $0.99
     Diluted                                       $1.09(2)       $0.98(2)
 
     Weighted Average Share Information
 
                                                    Three Months Ended
                                                          March 31,
                                                    2001           2000
     Weighted average shares -
     Net income calculation
     Basic                                        63,306         60,796
     Diluted                                      66,596(2)      61,251(1)
 
     Weighted average shares -
     FFO calculation
     Basic                                        63,306         60,796
     Diluted                                      66,596(2)      63,912(2)
 
      (1) The conversion of the Company's Class D preferred stock would have an
          anti-dilutive effect on the calculation of net income per share for
          the respective period.  Accordingly, the impact of such conversion
          has not been included in the determination of diluted net income per
          common share.
 
      (2) Reflects the potential impact on the calculation of net income and
          FFO per share if the Company's Class D preferred stock was converted
          at the beginning of the period.  Net income and FFO would be
          increased by $1,960 for the three months ended March 31, 2001.  FFO
          would be increased by $2,009 for the three months ended March 31,
          2000.  Amounts represent the dividends paid on the Class D preferred
          stock.
 
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                http://tbutton.prnewswire.com/prn/11690X67231134
 
 SOURCE  Kimco Realty Corporation