Kimco Realty® Announces Fourth Quarter and Full Year 2023 Results

Core Insights - Kimco Realty reported strong financial results for Q4 and full year 2023, with net income available to common shareholders of $133.4 million or $0.22 per diluted share for Q4, compared to a net loss of $56.1 million or ($0.09) per diluted share in Q4 2022 [1][4][29] - For the full year 2023, net income available to common shareholders was $629.3 million or $1.02 per diluted share, significantly up from $100.8 million or $0.16 per diluted share in 2022 [6][29] - The company achieved a record pro-rata portfolio occupancy of 96.2% in Q4 2023, marking a 70-basis-point increase sequentially, the largest in over 15 years [2][7] Financial Performance - Funds From Operations (FFO) for Q4 2023 was $239.4 million or $0.39 per diluted share, slightly up from $234.9 million or $0.38 per diluted share in Q4 2022 [5][29] - Full year FFO was $970.0 million or $1.57 per diluted share, compared to $976.4 million or $1.58 per diluted share in 2022 [6][29] - Same-Property Net Operating Income (NOI) grew by 3.2% year-over-year in Q4 2023, driven by a 3.1% increase in minimum rent [2][7] Leasing and Occupancy - The company signed 1.0 million square feet of new leases in Q4 2023, the highest quarterly level in over 10 years [2][3] - Pro-rata occupancy for anchor tenants reached 98.0%, while small shop occupancy hit an all-time record of 91.7% [2][7] - The company reported a 350-basis-point spread between leased and economic occupancy, representing approximately $57 million in anticipated future annual base rent [7] Acquisition and Growth Strategy - Kimco completed the acquisition of RPT Realty in January 2024, adding 56 open-air shopping centers with a total of 13.3 million square feet of gross leasable area [10] - The acquisition is expected to unlock additional growth and long-term value for shareholders [3][10] Capital Market Activities - The company issued $500 million of unsecured notes during Q4 2023 and ended the quarter with $2.8 billion of immediate liquidity [9] - Kimco sold all 14.2 million shares of Albertsons Companies, resulting in $299.1 million of proceeds [9] Dividend Declarations - The board declared a quarterly cash dividend of $0.24 per share, payable on March 21, 2024 [11] 2024 Outlook - The company projects net income per diluted share for 2024 to be between $0.47 and $0.55, and FFO per diluted share to be between $1.54 and $1.58 [12][13]