Kimco's Q1 Income Up 21.6%

"We have opened 2005 on solid footing," Michael V. Pappagallo, the firm's vice president and chief financial officer told investors in a conference call Monday announcing first quarter earnings.

The increase in first quarter net income translate into a 19.7% increase in per share income, which rose from 61 cents in 2004's first quarter, to 73 cents. The news sent the New Hyde Park, NY-based company's stock price up 30 cents to $53.95 by the end of the day.

The a publicly-traded real estate investment trust which specialized in shopping center acquisitions, also posted a gain in first quarter funds from operations, which rose 7.2% to $108.5 million from $101.3 million for the same period last year. On a diluted common share basis, first quarter FFO increased 5.6%, rising from 89 cents during the first quarter last year to 94 cents during the same period this year. Analysts expected the company to post an FFO of 93 cent per share on revenue of $136.7 million in the latest quarter.

The solid numbers were helped by a strong occupancy rate of 93.4%, which was aided by the signing of 102 new leases totaling 567,000 sf, and the acquisition of five properties in the United States and two in Mexico.

Kimco CEO Milton Cooper said the increase in occupancy marked a turnaround from three years ago when occupancy plummeted to 85.1 percent due to the closing of K-Mart stores.

"The clouds of the perfect storm caused by the Kmart bankruptcy are now lifting," Cooper told investors.

Cooper said the company will continue to dispose of properties that do not have adequate growth and embark on a substantial renovation program to improve others. The firm plans to renovate 45 properties this year at a cost of $275 million with an additional 75 properties slated for redevelopment in 2006.

Kimco acquired $49 million in centers during the quarter, including the 207,000-sf Curlew Crossing in Clearwater, FL, as well as the 122,000-sf Power City Centre, in Southern California.