JERICHO, N.Y.--(BUSINESS WIRE)--Kimco Realty Corp. (NYSE: KIM), one of North America’s largest publicly traded owners and operators of open-air, grocery-anchored shopping centers and mixed-use assets, today reported results for the fourth quarter and full year ended December 31, 2020.

Highlights:

• Collected 92% of total pro-rata base rents billed during the fourth quarter and subsequently collected 91% for the month of January.
• Reported pro-rata portfolio occupancy of 93.9%.
• Signed 92 new leases for 406,000 square feet during the fourth quarter which represents an 18% increase over the same period in 2019.
• Recognized a 6.0% increase in pro-rata rental-rate spreads on comparable spaces.
• Ended the quarter with $2.3 billion in immediate liquidity including $293 million in cash.
• Announced new resources to help small businesses access the latest round of PPP funding through Kimco’s Tenant Assistance Program (TAP).

“Thanks to Kimco’s dedicated associates and resilient portfolio, during the fourth quarter our rent collections remained strong, our leasing volume reached pre-pandemic levels and we continued our efforts to help tenants overcome the impact of COVID-19,” stated Conor Flynn, Kimco’s Chief Executive Officer. “With our predominately grocery-anchored portfolio focused on essential goods and services, we remain favorably positioned to outperform during the recovery and beyond. As we turn the corner towards relief and recovery in the months ahead, we also remember those we have lost and express our deep gratitude to the frontline workers still courageously doing their part to keep us safe.”

Financial Results

Fourth Quarter 2020

Net income available to the company’s common shareholders for the fourth quarter of 2020 was $194.9 million, or $0.45 per diluted share, compared to $92.8 million, or $0.22 per diluted share, for the fourth quarter of 2019. The year-over-year change was primarily due to:

• $148.5 million in the mark-to-market adjustment on 39.8 million common shares of Albertsons Companies, Inc. (NYSE: ACI) held by the company.
• ($21.2) million from potentially uncollectible receivables, including $9.7 million in abatements.
• ($24.5) million decrease in gains on the sales of properties, net of impairments, including those in joint ventures.
• $10.3 million associated with a $7.2 million charge for the redemption of preferred stock during the fourth quarter of 2019 resulting in $3.1 million less in preferred dividends paid during the fourth quarter of 2020.

NAREIT Funds From Operations (FFO)* was $133.0 million, or $0.31 per diluted share, compared to $151.9 million, or $0.36 per diluted share, for the fourth quarter 2019.

Full Year 2020

Net income available to the company’s common shareholders was $975.4 million, or $2.25 per diluted share, for the full year 2020 compared to $340.0 million, or $0.80 per diluted share, for the full year 2019.

NAREIT FFO was $503.7 million, or $1.17 per diluted share, for the full year 2020 compared to $608.4 million, or $1.44 per diluted share, for the full year 2019.

*A reconciliation of net income available to the company’s common shareholders to NAREIT FFO and same-property NOI is provided in the tables accompanying this press release.

Fourth Quarter 2020 Operating Results

• Pro-rata portfolio occupancy ended the quarter at 93.9% with anchor and small shop occupancy at 96.7% and 86.1%, respectively.
• The company executed a total of 247 leases totaling 1.1 million square feet. This includes 92 new leases for 406,000 square feet which represents a significant increase over the 295,000 square feet of new leases signed during the third quarter of 2020 and 344,000 square feet of new leases for the comparable period in 2019.
• Pro-rata rental-rate spreads on comparable spaces increased 6.0%, with rental rates for new leases up 6.8% and renewals/options growing by 5.6%.
• Same-property Net Operating Income (NOI)* decreased 10.5% from the fourth quarter of 2019 due primarily to a charge for potentially uncollectible accounts receivable. For the year ended December 31, 2020, same-property NOI decreased 8.0% compared to the prior year.

Capital Markets

• Ended the quarter with $2.3 billion of immediate liquidity, including full availability under the company’s $2.0 billion unsecured revolving credit facility, and $293 million in cash and cash equivalents. In addition, Kimco held over $700 million of Albertsons common stock at the end of the quarter, subject to certain lock-up provisions.
• Kimco’s consolidated weighted-average debt maturity profile of 10.9 years remains one of the longest in the REIT industry. The company’s upcoming debt maturities in 2021 total approximately 3% of total pro-rata debt, which is the lowest level over the next seven years. This includes only $204.2 million of total pro-rata mortgage debt coming due with no unsecured debt maturities in 2021. Kimco’s next unsecured bond does not mature until November of 2022.

COVID-19 Update

• At the end of January, all of Kimco’s shopping centers were open and operational with 97% of tenants open, based on annualized base rent (ABR), including those that are operating on a limited basis.
• Kimco has collected 92% of the total pro-rata base rents billed for the fourth quarter of 2020. Subsequently, collections for total pro-rata base rents billed in January were approximately 91%.
• The company granted rent deferrals totaling 1.9% of pro-rata minimum base rent for the fourth quarter of 2020. The company continues to negotiate the payment of rents not yet collected or deferred.

Dividends

During 2020, Kimco paid cash dividends totaling $0.82 per common share. Kimco’s Board of Directors will continue to assess the impact of COVID-19 on the company’s operations and expects to establish a more normalized and well-covered dividend level based on our projection of REIT taxable income and adjusted funds from operations for 2021.

2021 Full Year Outlook

About Kimco

Kimco Realty Corp. (NYSE:KIM) is a real estate investment trust (REIT) headquartered in Jericho, N.Y. that is one of North America’s largest publicly traded owners and operators of open-air, grocery-anchored shopping centers and mixed-use assets. As of December 31, 2020, the company owned interests in 400 U.S. shopping centers and mixed-use assets comprising 70 million square feet of gross leasable space primarily concentrated in the top major metropolitan markets. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 60 years. For further information, please visit www.kimcorealty.com or follow Kimco on Twitter at www.twitter.com/kimcorealty.