Kimco Realty (KIM) Q4 2022 earnings summary

Executive summary

• Leased 2.5M sq. ft. in Q4 and 11.6M sq. ft. in 2022; portfolio occupancy rose 130 bps YoY to 95.7%, the highest annual increase in 15 years.

• Q4 FFO was $0.38 per diluted share; full-year FFO was $1.58 per diluted share, up from $1.38 in 2021.

Financial highlights

• Q4 net loss available to common shareholders was $56.1M, or $0.09 per diluted share, vs. net income of $75.3M, or $0.13, in Q4 2021; change reflected ACI mark-to-market losses and higher income taxes.

• FY net income available to common shareholders was $100.8M, or $0.16 per diluted share, vs. $818.6M, or $1.60, in 2021; ACI valuation changes and taxes on share monetization drove the decline.

• Q4 revenue was $439.8M vs. $424.7M YoY; operating income was $144.6M vs. $125.8M. FY revenue was $1.73B vs. $1.36B; operating income was $565.5M vs. $424.3M.

• FY FFO increased to $976.4M from $706.8M, primarily reflecting a full-year contribution from the 2021 Weingarten acquisition; 2021 included $0.09 per diluted share of merger costs and pension valuation adjustments.

Outlook and guidance

• FY 2023 diluted EPS outlook: $0.93–$0.97; diluted FFO outlook: $1.53–$1.57.

• Assumptions: Same Property NOI growth of 1.0%–2.0%; credit loss of 0.75%–1.25% of pro-rata rental revenue; lease termination income of $14M–$16M.

• Outlook assumes $100M of net property acquisitions, including structured investments, and monetization of ~ $300M of ACI shares; no income from prior-period cash-basis tenant receivables is assumed.