Kimco Realty(US:KIM)2025-05-02 15:08Financial Performance - Revenues from rental properties increased by $32.4 million to $531.3 million for the three months ended March 31, 2025, compared to $498.9 million in 2024, driven by increased leasing activity and properties acquired [170][175]. - Net income available to the Company's common shareholders was $125.1 million for the three months ended March 31, 2025, compared to a net loss of $18.9 million in the same period in 2024 [173]. - The diluted net income per common share was $0.18 for Q1 2025, compared to a loss of $0.03 in Q1 2024 [173]. - Funds from Operations (FFO) available to common shareholders increased to $301.9 million in Q1 2025, compared to $261.8 million in Q1 2024, representing a 15.3% increase [234]. - Same Property Net Operating Income (NOI) rose by $14.9 million, or 3.9%, for Q1 2025 compared to Q1 2024, driven by a $12.8 million increase in minimum rent [240]. Acquisitions and Mergers - The Company completed the RPT Merger on January 2, 2024, acquiring 56 open-air shopping centers with a total of 13.3 million square feet of gross leasable area [166]. - The Company spent $106.2 million on the acquisition of operating real estate during the three months ended March 31, 2025, and anticipates spending an additional $50.0 million to $150.0 million for acquisitions in 2025 [194]. Operating Expenses - Operating expenses increased, with real estate taxes rising by $6.6 million to $69.9 million, primarily due to increased assessed values [177]. - The increase in operating and maintenance expenses was $3.8 million, attributed to higher repairs and maintenance costs [178]. - The Company recognized impairment charges of $0.5 million in Q1 2025, down from $3.7 million in Q1 2024, reflecting adjustments to property carrying values [179]. Debt and Financing - The Company maintained strong debt metrics with A-/BBB+/Baa1 unsecured debt ratings [169]. - The Company has $2.0 billion in bank commitments under its Credit Facility, which can be increased to $2.75 billion [189]. - The Company has a $2.0 billion Credit Facility, with an outstanding balance of $120.0 million as of March 31, 2025, and an interest rate of 5.12% [211]. - The Company has $310.0 million of unsecured term loans scheduled to expire between November 2026 and February 2028, with interest rates ranging from 4.5793% to 4.7801% [213]. - Interest expense rose by $5.8 million, mainly due to the issuance of unsecured notes and mortgage loans [185]. - If short-term interest rates were 1.0% higher, interest expense would have increased by $0.3 million for Q1 2025 [247]. Cash Flow and Dividends - Net cash flow provided by operating activities was $223.8 million, an increase of $47.7 million compared to $176.1 million in 2024 [192]. - Cash dividends paid for common and preferred stock for the three months ended March 31, 2025, were $177.5 million, compared to $168.3 million for the same period in 2024 [223]. - Net cash flow used for financing activities was $650.5 million, a decrease from $1.0 billion in the comparable period in 2024 [196]. Leasing Activity - The company executed 451 leases totaling 3.9 million square feet in Q1 2025, with average rent per square foot for new leases at $23.93 and renewals at $18.95 [241]. - As of March 31, 2025, the company had 9,372 leases in its consolidated operating portfolio, with significant lease expirations scheduled in the coming years [242]. Risk Management - The company has 26 interest rate swaps with notional amounts totaling $860 million to mitigate interest rate risk on floating-rate debt [245]. - The total fixed-rate debt outstanding as of March 31, 2025, was $7.5 billion, with an average interest rate of 3.90% [247]. - Variable-rate debt was $115.7 million, with an average interest rate of 5.12% [247]. Compliance and Guarantees - The Company is in compliance with all covenants related to its senior notes, Credit Facility, and term loans as of March 31, 2025 [208][212]. - The Company provides a guaranty for the payment of any debt service shortfalls on the Sheridan Redevelopment Agency issued Series A bonds, with a balance of $36.2 million outstanding [222].