Kimco Realty Reports Significant Financial Growth, Completes Merger with RPT Realty

Kimco Realty Corporation, a leading Real Estate Investment Trust (REIT) focused on open-air, grocery-anchored shopping centers, reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company completed a merger with RPT Realty on January 2, 2024, acquiring 56 shopping centers totaling 13.3 million square feet of gross leasable area, which contributed to a notable increase in total assets and revenues.

As of September 30, 2024, total assets reached $20.1 billion, up from $18.3 billion at the end of 2023. This growth was driven by an increase in real estate holdings, which rose to $16.5 billion from $15.1 billion, and investments in joint ventures, which increased to $1.5 billion from $1.1 billion. Total liabilities also rose to $9.4 billion from $8.5 billion, primarily due to increased notes payable, which reached $8.0 billion compared to $7.3 billion.

In terms of revenue, Kimco reported net rental property revenues of $502.9 million for Q3 2024, a substantial increase from $441.8 million in Q3 2023. For the nine months ending September 30, 2024, net rental revenues totaled $1.5 billion, compared to $1.3 billion in the same period last year. Total revenues for Q3 2024 were $507.6 million, up from $446.1 million in Q3 2023, while total revenues for the nine months increased to $1.5 billion from $1.3 billion.

Despite the revenue growth, net income available to common shareholders for the nine months ended September 30, 2024, was $220.9 million, a significant decline from $495.9 million in the same period of 2023. This decrease was attributed to higher merger-related expenses of $25.2 million, increased interest expenses, and lower gains from property sales. Net income for Q3 2024 was $138.4 million, compared to $120.8 million in Q3 2023.

The company’s operational expenses also increased, with total operating expenses for Q3 2024 amounting to $336.9 million, up from $305.5 million in Q3 2023. This rise was driven by higher costs associated with properties acquired through the merger and increased maintenance expenses.

Kimco's financial position remains robust, with a strong credit rating of A- for senior unsecured debt and BBB for preferred stock, as assigned by Fitch Ratings. The company has a $2.0 billion credit facility, which can be expanded to $2.75 billion, and as of September 30, 2024, it had no outstanding balance on this facility. The company continues to focus on enhancing its portfolio value and generating cash flow while navigating the challenges posed by the current economic environment.