Kimco Realty (KIM) Q2 2021 earnings summary

Executive summary

• Leasing momentum lifted pro-rata portfolio occupancy to 93.9% and same-property NOI, including redevelopments, 16.7% YoY; 2021 outlook was raised.

• NAREIT FFO was $0.34 per diluted share, including $0.01 per share of pending-merger charges; net income per diluted share was $0.25.

Financial highlights

• Q2 revenue was $289.0M vs. $238.9M YoY; operating income was $117.8M vs. $64.1M.

• Net income available to common shareholders was $110.3M, or $0.25 per diluted share, vs. $741.5M, or $1.71, in Q2 2020.

• Q2 2020 included a one-time $524.7M mark-to-market adjustment on Albertsons stock and $190.8M in gains from partial monetization; Q2 2021 marketable-securities gain was $24.3M.

• FFO was $148.8M, or $0.34 per diluted share, vs. $103.5M, or $0.24, YoY; Q2 2021 includes $3.2M of merger charges.

Outlook and guidance

• Raised stand-alone FY 2021 diluted EPS guidance to $0.83–$0.87 from $0.66–$0.70, and FFO guidance to $1.29–$1.33 from $1.22–$1.26.

• Guidance includes $0.01 per diluted share of merger charges incurred in Q2; it excludes other impacts from the pending Weingarten transaction.