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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2004

     OR

[    ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________________________ to __________________________________


Commission file number 1-10899                                                                                          

  Kimco Realty Corporation  
 (Exact name of registrant as specified in its charter)
     
Maryland   13-2744380

(State or other jurisdiction of
incorporation or organization)

   (I.R.S. Employer Identification No.)
     
3333 New Hyde Park Road, New Hyde Park, NY 11042
 (Address of principal executive offices – zip code)
     
  (516) 869-9000  
(Registrant’s telephone number, including area code)
     
(Former name, former address and former fiscal year, if changed since last report)
     

     Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes           No

     Indicate by check mark whether the registrant is an accelerated filer (as defined in rule 12-b of the Act).

Yes           No

APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.

112,042,471 shares outstanding as of September 30, 2004.

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     PART I

FINANCIAL INFORMATION

Item 1.     Financial Statements

Condensed Consolidated Financial Statements -
  Condensed Consolidated Balance Sheets as of September 30, 2004 and December 31, 2003.
   
   Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2004 and 2003.
   
  Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2004 and 2003.
   
  Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2004 and 2003.
   
Notes to Condensed Consolidated Financial Statements.
   
   

 

     

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share information)

    SEPTEMBER 30,   DECEMBER 31,  
    2004   2003  
Assets:  
 
 
Operating real estate, net of accumulated depreciation
            
of $615,380 and $568,015, respectively
   $ 2,910,689   $ 3,264,223  
Investments and advances in real estate joint ventures
     498,764     487,394
Real estate under development
     294,980     304,286  
Other real estate investments
     150,239     113,085  
Mortgages and other financing receivables
     128,953     101,691  
Cash and cash equivalents
     134,031     48,288  
Marketable securities
     64,455     45,677  
Accounts and notes receivable
     51,503     50,408  
Other assets
     143,504     188,872  
     
   
 
    $ 4,377,118   $ 4,603,924  
   
 
 
Liabilities:              
Notes payable
   $ 1,377,250   $ 1,686,250  
Mortgages payable
     316,935     375,914  
Construction loans payable
     125,052     92,784  
Other liabilities
     244,039     213,213  
     
   
 
      2,063,276     2,368,161  
     
   
 
Minority interests in partnerships
     102,587     99,917  
     
   
 
               
               
Stockholders’ equity:              
Preferred stock, $1.00 par value, authorized 3,600,000 shares
              
Class F Preferred Stock, $1.00 par value, authorized 700,000 shares
              
Issued and outstanding 700,000 shares
     700     700  
Aggregate liquidation preference $175,000
              
Common stock, $.01 par value, authorized 200,000,000 shares
              
Issued and outstanding 112,042,471 and 110,623,967 shares, respectively
     1,120     1,106  
Paid-in capital
     2,188,533     2,147,286  
Cumulative distributions in excess of net income
     (8,068)     (30,112)  
     
   
 
      2,182,285     2,118,980  
Accumulated other comprehensive income
     28,970     16,866  
     
   
 
      2,211,255     2,135,846  
     
   
 
    $ 4,377,118   $ 4,603,924  
   
 
 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three and Nine Months Ended September 30, 2004 and 2003
(in thousands, except per share data)

      Three Months Ended September 30,   Nine Months Ended September 30,  
    2004   2003   2004   2003  
   
 
 
 
 
                     
   Revenues from rental property   $ 123,274   $ 117,409   $ 392,219   $ 350,038  
   
 
 
 
 
                           
   Rental property expenses:                          
         Rent     2,667     2,688     8,446     8,060  
         Real estate taxes     16,266     15,533     49,660     44,396  
         Operating and maintenance     12,461     11,590     42,637     39,549  
     
   
   
   
 
      31,394     29,811     100,743     92,005  
     
   
   
   
 
                           
      91,880     87,598     291,476     258,033  
                           
   Income from other real estate investments     5,119     5,998     20,414     15,807  
   Mortgage and other financing income     3,179     3,713     9,637     15,963  
   Management and other fee income     6,008     4,259     18,836     10,822  
   Depreciation and amortization     (24,304 )    (20,960 )   (76,961 )   (59,519 ) 
     
   
   
   
 
      81,882     80,608     263,402     241,106  
                           
Interest, dividends and other investment income     8,595     5,633     13,170     13,204  
Other income/(expense), net     4,974     263     13,216     (837 ) 
                           
Interest expense     (25,845 )   (26,094 )    (81,447 )    (73,865 ) 
General and administrative expenses     (11,034 )    (11,232 )    (31,660 )    (28,720 ) 
Gain on early extinguishment of debt     —     —     —     2,921  
     
   
   
   
 
                           
      58,572     49,178     176,681     153,809  
                           
Benefit / (provision) for income taxes     24     (1,171 )    (5,395 )    (3,686 ) 
                           
Equity in income of real estate joint ventures, net     13,864     11,167     39,792     30,459  
Minority interests in income of partnerships, net     (2,312 )   (2,323 )    (7,059 )    (5,662 ) 
     
   
   
   
 
                           
         Income from continuing operations     70,148     56,851     204,019     174,920  
     
   
   
   
 
                           
Discontinued operations:                          
      Income from discontinued operating properties     1,319     1,601     2,473     5,882  
      Gain on early extinguishment of debt     —     —     —     3,341  
      Loss on operating properties held for sale/sold     (913 )    —     (5,064 )    —  
      Gain on disposition of operating properties     6,386     28,053     12,498     30,465  
     
   
   
   
 
         Income from discontinued operations     6,792     29,654     9,907     39,688  
     
   
   
   
 
                           
Gain on sale of development properties,                          
   net of tax of $1,047, $3,333, $4,935 and $6,134,
   respectively		     1,571     4,999     7,404     9,202  
     
   
   
   
 
                           
                           
         Net Income     78,511     91,504     221,330     223,810  
                           
   Original issuance costs associated with the redemption                          
      of preferred stock     —     —     —     (7,788 ) 
   Preferred stock dividends     (2,909 )    (2,909 )    (8,728 )    (11,759 ) 
     
   
   
   
 
                           
      Net income available to common shareholders   $ 75,602   $ 88,595   $ 212,602   $ 204,263  
   
 
 
 
 
                           
                           
Per common share:                          
   Income from continuing operations:                          
               –Basic   $ 0.62   $ 0.55   $ 1.82   $ 1.55  
   
 
 
 
 
               –Diluted   $ 0.61   $ 0.54   $ 1.79   $ 1.53  
   
 
 
 
 
   Net income :                          
               –Basic   $ 0.68   $ 0.82   $ 1.91   $ 1.93  
   
 
 
 
 
               –Diluted   $ 0.67   $ 0.81   $ 1.88   $ 1.90  
   
 
 
 
 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three and Nine Months Ended September 30, 2004 and 2003
(in thousands)

 

      Three Months Ended September 30,   Nine Months Ended September 30,  
      2004   2003   2004   2003  
   
 
 
 
 
Net income   $ 78,511   $ 91,504   $ 221,330   $ 223,810  
   
 
 
 
 
Other comprehensive income:                          
   Unrealized gain on marketable securities     2,799     658     9,056     3,414  
   Unrealized gain on interest rate swaps     —     365     —     562  
   Unrealized gain on warrants     1,296     373     2,547     3,846  
   Unrealized gain/(loss) on foreign currency hedge agreements     (8,125 )    1,074     (5,275 )   (10,421 )
   Foreign currency translation adjustment     9,399     (5,863 )    5,776     6,283  
     
   
   
   
 
      Other comprehensive income     5,369     (3,393 )    12,104     3,684  
     
   
   
   
 
                           
                           
Comprehensive income   $ 83,880   $ 88,111   $ 233,434   $ 227,494  
   
 
 
 
 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 

    Nine Months Ended September 30,  
      2004     2003  
   
 
 
Cash flow from operating activities:              
   Net income   $ 221,330   $ 223,810  
   Adjustments to reconcile net income to net cash provided              
                  by operating activities:              
      Depreciation and amortization     77,608     62,492  
      Loss on operating properties held for sale/sold     5,064     —  
      Gain on sale of development properties     (12,339 )    (15,336 ) 
      Gain on sale of operating properties     (12,498 )    (30,465 ) 
      Gain on early extinguishment of debt     —     (6,262 ) 
      Minority interests in income of partnerships, net     7,059     5,662  
      Equity in income of real estate joint ventures, net     (39,792 )    (30,459 ) 
      Income from other real estate investments     (15,293 )    (13,401 ) 
      Distributions of unconsolidated investments     64,384     47,170  
      Change in accounts and notes receivable     (796 )    (6,151 ) 
      Change in accounts payable and accrued expenses     20,638     8,055  
      Change in other operating assets and liabilities     (21,292 )    (7,576 ) 
     
   
 
               Net cash flow provided by operating activities     294,073     237,539  
     
   
 
               
Cash flow from investing activities:              
      Acquisition of and improvements to operating real estate     (202,347 )    (304,107 ) 
      Acquisition of and improvements to real estate under development     (107,469 )    (133,785 )