Form: 8-K

Current report

July 30, 2002

Documents

PRESS RELEASE

Published on July 30, 2002


[Letterhead of Kimco Realty Corporation]

[LOGO]
Kimco
Realty
Corporation
- -----------

FOR IMMEDIATE RELEASE
July 29, 2002


KIMCO REPORTS SECOND QUARTER OPERATING RESULTS

FFO Increases to $0.75 Per Diluted Common Share

NEW HYDE PARK, NY July 29, 2002-- Kimco Realty Corporation (NYSE: KIM), the
nation's largest owner and operator of neighborhood and community shopping
centers, today announced that second quarter net income increased 2.9 percent to
$61.1 million from $59.4 million for the same period last year. Second quarter
net income per diluted common share (EPS) was $0.54 versus $0.55 per diluted
common share a year ago. Funds from operations (FFO), a supplemental measure of
REIT performance, rose 10.5 percent to $79.2 million, from $71.7 million for the
same period last year. On a diluted per common share basis, FFO increased 2.7
percent to $0.75 from $0.73 a year ago. FFO excludes gains on sales of operating
properties of $0.5 million or less than $0.01 per diluted common share for the
second quarter 2002 and $3.0 million or $0.03 per diluted common share for the
second quarter 2001.

For the six months ended June 30, 2002, net income increased 5.7 percent to
$121.9 million from $115.4 million for the same period last year. Net income per
diluted common share was $1.07 versus $1.06 a year ago. Funds from operations
rose 11.2 percent to $158.1 million for the six-month period from $142.2 million
in the year earlier period. On a diluted per common share basis, funds from
operations increased 2.7 percent to $1.50 from $1.46 reported a year ago. FFO
for the six months ended June 30, 2002 excludes gains on sales of operating
properties of $0.5 million or less than $0.01 per diluted common share and $3.0
million or $0.03 per diluted common share for the same period last year.

During the quarter the Company signed 110 new leases at an average annual rent
of $10.81 per square foot. Kimco continues to have success marketing its former
Kmart store locations and currently has 10 sites leased or under agreement to
lease. In addition, the Company has received offers to purchase four sites and
has disposed of one ground leased location. In total, Kmart has rejected 27
leases, which had been anticipated in Kimco's previously issued earnings
guidance. The Company expects to resolve all of the rejected Kmart stores before
June 30, 2003.

Kimco has continued to expand its shopping center investment portfolio through
joint ventures and selectively in the parent REIT portfolio. Since March 31,
2002, the Company has acquired interests in 33 shopping centers for an aggregate
cost of approximately $385.4 million as follows:

- - Kimco increased its Canadian portfolio by acquiring interests in 9
properties totaling 2.2 million square feet of gross leasable area for an
aggregate cost of $195.1 million (C$304.8 million) through its joint
venture with RioCan REIT. Five shopping centers located in Ontario were
purchased for approximately $61.4 million (C$98.1 million), two shopping
centers in British Columbia were acquired for $69.8 million (C$108.1
million) and two shopping centers in Alberta were purchased for $63.9
million (C$98.6 million). Kimco's joint venture with RioCan has grown to 18
properties in four provinces totaling 4.3 million square feet of gross
leasable area. Kimco owns a 50% interest in the 98.4 percent leased
portfolio. Additionally, the venture has 17 projects totaling 4.5 million
square feet under contract to purchase totaling $280 million (C$400
million). Walmart is the largest tenant in these pending transactions.

- - Kimco Retail Opportunity Fund (KROP), a joint venture in which Kimco owns a
20 percent interest, completed its previously announced acquisition of
shopping centers from The Rouse Company. In July, KROP acquired an
additional shopping center property for this portfolio in Arlington, Texas
for $9.3 million.

- - The Company acquired seven former Service Merchandise locations in a joint
venture and has signed leases for the vacancies at six sites and leases for
the seventh are in negotiation. Kimco owns 42.5 percent of the properties,
which were acquired for an aggregate cost of $20.9 million. In addition,
the venture has two additional former Service Merchandise properties under
contract, which are expected to close during the third quarter.

- - In July, the Company acquired a shopping center targeted for Kimco Income
REIT (KIR), a joint venture with institutional investors in which Kimco
owns a 43.3 percent interest. The project, acquired for $26.5 million, is
located in New Jersey and is anchored by a Safeway, Target and T.J. Maxx.
As of June 30, 2002, KIR consisted of 66 shopping centers totaling 12.7
million square feet in 20 states. The portfolio is 96.9% leased.

- - In the parent REIT portfolio, Kimco acquired a vacant former Home Quarters
site for $4.3 million and has signed leases with Bed Bath & Beyond, Borders
Books and Marshalls for redevelopment of the shopping center. Kimco owns
100% of the investment.

- - In separate transactions, Kimco's preferred equity business acquired
interests in two shopping centers for an aggregate investment of $6.4
million.

Kimco's complimentary business lines also made substantial new investments and
commitments:

- - Kimco's Retail Property Solutions business continued to find opportunities
to provide capital to retailers secured by their leased and fee-owned real
estate. The Company is participating in a joint venture that acquired
designation rights to 54 former Kmart locations for approximately $43
million. In a separate joint venture, the Company agreed to purchase eight
properties from Ames Department Stores for approximately $59.0 million.
Seven of the sites are leased to Ames and one of the sites is subleased to
Wegmans.

- - Kimco Developers, Inc. (KDI), the Company's merchant building business,
acquired two projects for development during the quarter for an aggregate
cost of $4.1 million. KDI's development pipeline consists of 19 projects
with potential gross leasable area in excess of 5.5 million square feet.
The Company invested $39.1 million in these projects during the quarter.


Additionally, Kimco's pipeline for potential new investments remains robust. The
Company's joint venture proposal to acquire Konover Property Trust was accepted
by Konover's Board of Directors. Kimco's investment will be approximately $35
million and is subject to regulatory and shareholder approval. Konover Property
Trust owns and operates 36 shopping centers, most of them anchored by grocery
stores, throughout the U.S. Southeast.

Kimco, a publicly-traded real estate investment trust, has specialized in
shopping center acquisitions, development and management for over 35 years.
Kimco owns and operates the nation's largest portfolio of neighborhood and
community shopping centers with interests in 557 properties comprising
approximately 75.0 million square feet of leasable space located throughout 41
states and Canada. For further information refer to the Company's web site at
www.kimcorealty.com.

Safe Harbor Statement: The statements in this release state the Company's and
management's hopes, intentions, beliefs, expectations or projections of the
future and are forward-looking statements. It is important to note that the
Company's actual results could differ materially from those projected in such
forward-looking statements. Factors that could cause actual results to differ
materially from current expectations include general economic conditions, local
real estate conditions, increases in interest rates, increases in operating
costs and real estate taxes. Additional information concerning factors that
could cause actual results to differ materially from those forward-looking
statements is contained from time to time in the Company's SEC filings,
including but not limited to the Company's report on Form 10-K for the year
ended December 31, 2001. Copies of each filing may be obtained from the Company
or the SEC.

Contact:
Kimco Realty Corporation
Scott Onufrey
(516) 869-7190
sonufrey@kimcorealty.com


(continued next page)




Kimco Realty Corporation
Condensed Consolidated Statements of Income
(In thousands, except per share data)



Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
--------- --------- --------- ---------

Real Estate Operations:
Revenues from rental property $ 115,478 $ 117,735 $ 231,319 $ 239,205
--------- --------- --------- ---------

Rental property expenses:
Rent 3,545 3,518 7,051 6,973
Real estate taxes 16,844 14,040 32,890 28,376
Operating and maintenance 11,785 10,713 24,116 26,087
--------- --------- --------- ---------
32,174 28,271 64,057 61,436
--------- --------- --------- ---------
83,304 89,464 167,262 177,769
Income from investment in retail store leases 208 855 517 1,827
--------- --------- --------- ---------
Net operating income 83,512 90,319 167,779 179,596

Equity in income of KIR 4,211 3,010 7,808 5,923
Equity in income of other real estate JV's, net 7,107 1,766 14,133 3,223
Minority interests in income of partnerships, net (268) (696) (476) (1,138)
Gain on sale of development properties -- 824 4,280 6,216
Management and other fee income 4,156 2,072 7,502 4,236
Depreciation and amortization (19,138) (18,910) (37,965) (37,102)
--------- --------- --------- ---------
Income from real estate operations 79,580 78,385 163,061 160,954
--------- --------- --------- ---------

Other Investments:
Interest, dividends and other investment income 13,189 7,767 21,382 12,892
Other income, net 13 9 3,884 798
--------- --------- --------- ---------
13,202 7,776 25,266 13,690
--------- --------- --------- ---------

Interest (22,461) (22,551) (44,250) (45,269)
General and administrative (7,660) (6,636) (15,192) (14,427)
Gain on sale of operating properties -- 3,040 -- 3,040
--------- --------- --------- ---------
Income from continuing operations 62,661 60,014 128,885 117,988
before income taxes

Provision for income taxes (2,150) (680) (7,500) (2,617)
--------- --------- --------- ---------

Income from continuing operations 60,511 59,334 121,385 115,371


(continued next page)




Discontinued Operations:
Income/(Loss) from discontinued operations (2) 18 18 35
Gain on sale of operating property 546 -- 546 --
--------- --------- --------- ---------
Income from discontinued operations 544 18 564 35
--------- --------- --------- ---------

Net income 61,055 59,352 121,949 115,406

Preferred dividends (4,609) (6,570) (9,219) (13,140)
--------- --------- --------- ---------

Net income available to common $ 56,446 $ 52,782 $ 112,730 $ 102,266
shareholders ========= ========= ========= =========


Per common share:
Income from continuing operations:
- Basic $ 0.54 $ 0.55 $ 1.07 $ 1.07
========= ========= ========= =========
- Diluted $ 0.53 $ 0.55(1) $ 1.06 $ 1.06(1)
========= ========= ========= =========
Net income:
- Basic $ 0.54 $ 0.55 $ 1.08 $ 1.07
========= ========= ========= =========
- Diluted $ 0.54 $ 0.55(1) $ 1.07 $ 1.06(1)
========= ========= ========= =========


Note: Reclassifications: Certain amounts in the prior period have been
reclassified in order to conform with the current period's presentation.


Kimco Realty Corporation
Funds From Operations
(In thousands, except per share data)



Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
--------- --------- --------- ---------

Funds From Operations
Net income $ 61,055 $ 59,352 $ 121,949 $ 115,406
Depreciation and amortization 19,138 18,930 37,984 37,139
Depreciation and amortization - KIR 3,200 2,450 6,300 4,750
Depreciation and amortization -
other real estate joint ventures 950 550 1,650 1,050
Gain on sale of operating properties (546) (3,040) (546) (3,040)
Preferred stock dividends (4,609) (6,570) (9,219) (13,140)
--------- --------- --------- ---------

Funds from operations $ 79,188 $ 71,672 $ 158,118 $ 142,165
========= ========= ========= =========

Per common share:
- Basic $ 0.76 $ 0.75 $ 1.52 $ 1.49
========= ========= ========= =========
- Diluted $ 0.75 $ 0.73(1) $ 1.50 $ 1.46(1)
========= ========= ========= =========







Weighted Average Share Information Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
------- ------- ------- -------

Weighted average shares -
- Basic 104,413 95,687 104,356 95,325
- Diluted 105,506 100,494(1) 105,437 100,202(1)


(1) Reflects the potential impact if the Class D Preferred Stock was converted
to common stock at the beginning of the period. Net income available to
common shareholders and FFO would be increased by $1,960 and $3,921 for the
three and six months ended June 30, 2001, respectively, which represents
the dividends paid on the Class D Convertible Preferred Stock for that
period.

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