UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 20222023
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:file number: 1-10899 (Kimco Realty Corporation)
Commission file number: 333-269102-01 (Kimco Realty OP, LLC)
KIMCO REALTY CORPORATION
KIMCO REALTY OP, LLC
(Exact name of registrant as specified in its charter)
Maryland (Kimco Realty Corporation) Delaware (Kimco Realty OP, LLC) |
| 13-2744380 92-1489725 |
(State or other jurisdiction of incorporation or organization) |
| (I.R.S. Employer Identification No.) |
500 North Broadway, Suite 201, Jericho, NY 11753
(Address of principal executive offices) (Zip Code)
(516) 869-9000
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Kimco Realty Corporation
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, par value $.01 per share. | KIM | New York Stock Exchange |
Depositary Shares, each representing one-thousandth of a share of 5.125% Class L Cumulative Redeemable, Preferred Stock, $1.00 par value per share. | KIMprL | New York Stock Exchange |
Depositary Shares, each representing one-thousandth of a share of 5.250% Class M Cumulative Redeemable, Preferred Stock, $1.00 par value per share. | KIMprM | New York Stock Exchange |
Kimco Realty OP, LLC
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |
None | N/A | N/A |
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.
Kimco Realty Corporation Yes ☒☑ No ☐ Kimco Realty OP, LLC Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Kimco Realty Corporation Yes ☒☑ No ☐ Kimco Realty OP, LLC Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12-b-212b-2 of the Exchange Act.
Kimco Realty Corporation:
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| Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ Kimco Realty OP, LLC: Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☑ Smaller reporting company ☐ Emerging growth company ☐ |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Kimco Realty Corporation ☐ Kimco Realty OP, LLC ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Kimco Realty Corporation Yes ☐ No ☒☑ Kimco Realty OP, LLC Yes ☐ No ☑
(APPLICABLE ONLY TO CORPORATE REGISTRANTS)
Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.
As of April 20, 2022, the registrant2023, Kimco Realty Corporation had 618,006,814619,891,809 shares of common stock outstanding.
EXPLANATORY NOTE
This report combines the quarterly reports on Form 10-Q for the quarterly period ended March 31, 2023, of Kimco Realty Corporation (the “Company”) and Kimco Realty OP, LLC (“Kimco OP”). Prior to January 1, 2023, the Company’s business was conducted through a predecessor entity also known as Kimco Realty Corporation (the “Predecessor”). On December 14, 2022, the Predecessor’s Board of Directors approved the entry into an Agreement and Plan of Merger (the “UPREIT Merger”) with the company formerly known as New KRC Corp., which was a Maryland corporation and wholly owned subsidiary of the Predecessor (the “Parent Company”), and KRC Merger Sub Corp., which was a Maryland corporation and wholly owned subsidiary of the Parent Company (“Merger Sub”), to effect the reorganization (the “Reorganization”) of the Predecessor’s business into an umbrella partnership real estate investment trust, or “UPREIT”.
On January 1, 2023, pursuant to the UPREIT Merger, Merger Sub merged with and into the Predecessor, with the Predecessor continuing as the surviving entity and a wholly-owned subsidiary of the Parent Company, and each outstanding share of capital stock of the Predecessor was converted into one equivalent share of capital stock of the Parent Company (each of which has continued to trade under their respective existing ticker symbol with the same rights, powers and limitations that existed immediately prior to the Reorganization).
In connection with the Reorganization, the Parent Company changed its name to Kimco Realty Corporation, and replaced the Predecessor as the New York Stock Exchange-listed public company. Effective as of January 3, 2023, the Predecessor converted into a limited liability company, organized in the State of Delaware, known as Kimco Realty OP, LLC, the entity we refer to herein as “Kimco OP”.
Following the Reorganization, substantially all of the Company’s assets are held by, and substantially all of the Company’s operations are conducted through, Kimco OP (either directly or through its subsidiaries), as the Company’s operating company, and the Company is the managing member of Kimco OP. The officers and directors of the Company are the same as the officers and directors of the Predecessor immediately prior to the Reorganization.
The Parent Company is a real estate investment trust ("REIT") and is the sole member and managing member of Kimco OP. As of March 31, 2023, the Parent Company owned 100% of the outstanding limited liability company interests (the "OP Units") in Kimco OP.
Stockholders' equity and members’ capital are the primary areas of difference between the unaudited Condensed Consolidated Financial Statements of the Parent Company and those of Kimco OP. Kimco OP’s capital currently includes OP Units owned solely by the Parent, and may in the future include non-controlling OP Units owned by third parties. OP Units owned by third parties, if any, will be accounted for within capital on Kimco OP’s financial statements and in non-controlling interests in the Parent Company’s financial statements.
The Parent Company consolidates Kimco OP for financial reporting purposes, and the Parent Company does not have significant assets other than its investment in Kimco OP. Therefore, while stockholders’ equity and members’ capital differ as discussed above, the assets and liabilities of the Parent Company and Kimco OP are the same on their respective financial statements.
The Company believes combining the quarterly reports on Form 10-Q of the Parent Company and Kimco OP into this single report provides the following benefits:
● | Enhances investors' understanding of the Parent Company and Kimco OP by enabling investors to view the businesses as a whole in the same manner as management views and operates the business; |
● | Eliminates duplicative disclosure and provides a more concise and readable presentation because a substantial portion of the disclosure applies to both the Parent Company and Kimco OP; and |
● | Creates time and cost efficiencies through the preparation of one combined report instead of two separate reports. |
In order to highlight the differences between the Parent Company and Kimco OP, there are sections in this Quarterly Report that separately discuss the Parent Company and Kimco OP, including separate financial statements (but combined footnotes), separate controls and procedures sections, and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure for the Parent Company and Kimco OP, unless context otherwise requires, this Quarterly Report refers to actions or holdings of Parent Company and/or Kimco OP as being the actions or holdings of the Company (either directly or through its subsidiaries, including Kimco OP).
Throughout this Quarterly Report, unless the context requires otherwise:
● | The “Company,” “we,” “our” or “us” refer to: |
o | for the period prior to January 1, 2023 (the period preceding the UPREIT Merger), the Predecessor and its business and operations conducted through its directly or indirectly owned subsidiaries; |
o | for the period on or after January 1, 2023, (the period from and following the UPREIT Merger), the Parent Company and its business and operations conducted through its directly or indirectly owned subsidiaries, including Kimco OP; and |
o | in statements regarding qualification as a real estate investment trust (“REIT”), such terms refer solely to the Predecessor or Parent Company, as applicable. |
● | “Kimco OP” refers to Kimco Realty OP, LLC, our operating company following the UPREIT Merger. |
● | References to “shares” and “shareholders” refer to the shares and shareholders of the Predecessor prior to January 1, 2023 and of the Parent Company on or after January 1, 2023, and not the limited liability company interests of Kimco OP. |
PART I - FINANCIAL INFORMATION
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Condensed Consolidated Balance Sheets as of March 31, | ||
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Condensed Consolidated Financial Statements of Kimco Realty OP, LLC and Subsidiaries (unaudited) | ||
Condensed Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022 | ||
Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2023 and 2022 | ||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMe for the Three Months Ended March 31, 2023 and 2022 | 10 | |
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022 | ||
Kimco Realty Corporation and Subsidiaries and Kimco Realty OP, LLC and Subsidiaries | ||
Notes to Condensed Consolidated Financial | 13 | |
KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)(unaudited)
(in thousands, except share information)
March 31, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | |||||||||||||
Assets: | ||||||||||||||||
Real estate, net of accumulated depreciation and amortization of $3,128,182 and $3,010,699, respectively | $ | 14,950,391 | $ | 15,035,900 | ||||||||||||
Real estate under development | 5,672 | 5,672 | ||||||||||||||
Real estate, net of accumulated depreciation and amortization of $3,523,503 and $3,417,414, respectively | $ | 15,108,018 | $ | 15,039,828 | ||||||||||||
Investments in and advances to real estate joint ventures | 1,013,940 | 1,006,899 | 1,092,477 | 1,091,551 | ||||||||||||
Other investments | 104,195 | 122,015 | 132,935 | 107,581 | ||||||||||||
Cash and cash equivalents | 370,318 | 334,663 | 329,177 | 149,829 | ||||||||||||
Marketable securities | 1,334,873 | 1,211,739 | 451,583 | 597,732 | ||||||||||||
Accounts and notes receivable, net | 253,687 | 254,677 | 303,063 | 304,226 | ||||||||||||
Operating lease right-of-use assets, net | 145,784 | 147,458 | 132,020 | 133,733 | ||||||||||||
Other assets | 364,721 | 340,176 | 411,956 | 401,642 | ||||||||||||
Total assets (1) | $ | 18,543,581 | $ | 18,459,199 | $ | 17,961,229 | $ | 17,826,122 | ||||||||
Liabilities: | ||||||||||||||||
Notes payable, net | $ | 7,110,804 | $ | 7,027,050 | $ | 6,778,050 | $ | 6,780,969 | ||||||||
Mortgages payable, net | 378,644 | 448,652 | 374,285 | 376,917 | ||||||||||||
Accounts payable and accrued expenses | 203,053 | 207,815 | ||||||||||||||
Dividends payable | 5,366 | 5,366 | 5,322 | 5,326 | ||||||||||||
Operating lease liabilities | 122,615 | 123,779 | 112,413 | 113,679 | ||||||||||||
Other liabilities | 697,510 | 730,690 | 609,266 | 601,574 | ||||||||||||
Total liabilities | 8,314,939 | 8,335,537 | 8,082,389 | 8,086,280 | ||||||||||||
Redeemable noncontrolling interests | 13,480 | 13,480 | 92,933 | 92,933 | ||||||||||||
Commitments and Contingencies | ||||||||||||||||
Commitments and Contingencies (Footnote 17) | ||||||||||||||||
Stockholders' equity: | ||||||||||||||||
Preferred stock, $1.00 par value, authorized 7,054,000 shares; Issued and outstanding (in series) 19,580 shares; Aggregate liquidation preference $489,500 | 20 | 20 | ||||||||||||||
Common stock, $.01 par value, authorized 750,000,000 shares; Issued and outstanding 618,002,532 and 616,658,593 shares, respectively | 6,180 | 6,167 | ||||||||||||||
Preferred stock, $1.00 par value, authorized 7,054,000 shares; Issued and outstanding (in series) 19,421 and 19,435 shares, respectively; Aggregate liquidation preference $485,536 and $489,868, respectively | 19 | 19 | ||||||||||||||
Common stock, $.01 par value, authorized 750,000,000 shares; Issued and outstanding 619,891,809 and 618,483,565 shares, respectively | 6,199 | 6,185 | ||||||||||||||
Paid-in capital | 9,589,955 | 9,591,871 | 9,614,913 | 9,618,271 | ||||||||||||
Retained earnings | 412,659 | 299,115 | ||||||||||||||
Retained earnings/(cumulative distributions in excess of net income) | 21,390 | (119,548 | ) | |||||||||||||
Accumulated other comprehensive income | 2,216 | 2,216 | 10,581 | 10,581 | ||||||||||||
Total stockholders' equity | 10,011,030 | 9,899,389 | 9,653,102 | 9,515,508 | ||||||||||||
Noncontrolling interests | 204,132 | 210,793 | 132,805 | 131,401 | ||||||||||||
Total equity | 10,215,162 | 10,110,182 | 9,785,907 | 9,646,909 | ||||||||||||
Total liabilities and equity | $ | 18,543,581 | $ | 18,459,199 | $ | 17,961,229 | $ | 17,826,122 |
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(1) Total assets include restricted assets of consolidated variable interest entities (“VIEs”) at March 31, 2023 and December 31, 2022 of $435,118 and $436,605, respectively. Total liabilities include non-recourse liabilities of consolidated VIEs at March 31, 2023 and December 31, 2022 of $198,959 and $199,132, respectively. See Footnote 12 of the Notes to Condensed Consolidated Financial Statements. |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)(unaudited)
(in thousands, except per share data)
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Revenues | ||||||||||||||||
Revenues from rental properties, net | $ | 422,654 | $ | 278,871 | $ | 438,338 | $ | 422,654 | ||||||||
Management and other fee income | 4,595 | 3,437 | 4,554 | 4,595 | ||||||||||||
Total revenues | 427,249 | 282,308 | 442,892 | 427,249 | ||||||||||||
Operating expenses | ||||||||||||||||
Rent | (4,081 | ) | (3,035 | ) | (4,013 | ) | (4,081 | ) | ||||||||
Real estate taxes | (54,314 | ) | (38,936 | ) | (57,506 | ) | (54,314 | ) | ||||||||
Operating and maintenance | (69,225 | ) | (46,520 | ) | (75,242 | ) | (69,225 | ) | ||||||||
General and administrative | (29,948 | ) | (24,478 | ) | (34,749 | ) | (29,948 | ) | ||||||||
Impairment charges | (272 | ) | 0 | (11,806 | ) | (272 | ) | |||||||||
Depreciation and amortization | (130,294 | ) | (74,876 | ) | (126,301 | ) | (130,294 | ) | ||||||||
Total operating expenses | (288,134 | ) | (187,845 | ) | (309,617 | ) | (288,134 | ) | ||||||||
Gain on sale of properties | 4,193 | 10,005 | 39,206 | 4,193 | ||||||||||||
Operating income | 143,308 | 104,468 | 172,481 | 143,308 | ||||||||||||
Other income/(expense) | ||||||||||||||||
Special dividend income | 194,116 | - | ||||||||||||||
Other income, net | 5,983 | 3,357 | 3,132 | 5,983 | ||||||||||||
Gain on marketable securities, net | 121,764 | 61,085 | ||||||||||||||
(Loss)/gain on marketable securities, net | (10,144 | ) | 121,764 | |||||||||||||
Interest expense | (57,019 | ) | (47,716 | ) | (61,306 | ) | (57,019 | ) | ||||||||
Early extinguishment of debt charges | (7,173 | ) | 0 | - | (7,173 | ) | ||||||||||
Income before income taxes, net, equity in income of joint ventures, net, and equity in income from other investments, net | 206,863 | 121,194 | 298,279 | 206,863 | ||||||||||||
Benefit/(provision) for income taxes, net | 153 | (1,308 | ) | |||||||||||||
(Provision)/benefit for income taxes, net | (30,829 | ) | 153 | |||||||||||||
Equity in income of joint ventures, net | 23,570 | 17,752 | 24,204 | 23,570 | ||||||||||||
Equity in income of other investments, net | 5,373 | 3,787 | 2,122 | 5,373 | ||||||||||||
Net income | 235,959 | 141,425 | 293,776 | 235,959 | ||||||||||||
Net loss/(income) attributable to noncontrolling interests | 1,343 | (3,483 | ) | |||||||||||||
Net (income)/loss attributable to noncontrolling interests | (4,013 | ) | 1,343 | |||||||||||||
Net income attributable to the Company | 237,302 | 137,942 | 289,763 | 237,302 | ||||||||||||
Preferred dividends | (6,354 | ) | (6,354 | ) | ||||||||||||
Preferred dividends, net | (6,251 | ) | (6,354 | ) | ||||||||||||
Net income available to the Company's common shareholders | $ | 230,948 | $ | 131,588 | $ | 283,512 | $ | 230,948 | ||||||||
Per common share: | ||||||||||||||||
Net income available to the Company's common shareholders: | ||||||||||||||||
-Basic | $ | 0.37 | $ | 0.30 | $ | 0.46 | $ | 0.37 | ||||||||
-Diluted | $ | 0.37 | $ | 0.30 | $ | 0.46 | $ | 0.37 | ||||||||
Weighted average shares: | ||||||||||||||||
-Basic | 614,767 | 430,524 | 616,489 | 614,767 | ||||||||||||
-Diluted | 616,758 | 432,264 | 619,628 | 616,758 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)(unaudited)
(in thousands)
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Net income | $ | 235,959 | $ | 141,425 | $ | 293,776 | $ | 235,959 | ||||||||
Other comprehensive income: | ||||||||||||||||
Change in unrealized gains related to defined benefit plan | 0 | 0 | - | - | ||||||||||||
Other comprehensive income | 0 | 0 | - | - | ||||||||||||
Comprehensive income | 235,959 | 141,425 | 293,776 | 235,959 | ||||||||||||
Comprehensive loss/(income) attributable to noncontrolling interests | 1,343 | (3,483 | ) | |||||||||||||
Comprehensive (income)/loss attributable to noncontrolling interests | (4,013 | ) | 1,343 | |||||||||||||
Comprehensive income attributable to the Company | $ | 237,302 | $ | 137,942 | $ | 289,763 | $ | 237,302 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Three Months Ended March 31, 20222023 and 20212022
(Unaudited)(unaudited)
(in thousands)
Retained Earnings/ (Cumulative Distributions in Excess | Accumulated Other Comprehensive | Preferred Stock | Common Stock | Paid-in | Total Stockholders' | Noncontrolling | Total | Preferred Stock | Common Stock | Paid-in | Retained Earnings/ (Cumulative Distributions in Excess | Accumulated Other Comprehensive | Total Stockholders' | Noncontrolling | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
of Net Income) | Income | Issued | Amount | Issued | Amount | Capital | Equity | Interests | Equity | Issued | Amount | Issued | Amount | Capital | of Net Income) | Income | Equity | Interests | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2021 | $ | (162,812 | ) | $ | 0 | 20 | $ | 20 | 432,519 | $ | 4,325 | $ | 5,766,511 | $ | 5,608,044 | $ | 62,210 | $ | 5,670,254 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 137,942 | 0 | - | 0 | - | 0 | 0 | 137,942 | 3,483 | 141,425 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests income | 0 | 0 | - | 0 | - | 0 | 0 | 0 | (169 | ) | (169 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to common and preferred shares | (80,039 | ) | 0 | - | 0 | - | 0 | 0 | (80,039 | ) | 0 | (80,039 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | 0 | 0 | - | 0 | - | 0 | 0 | 0 | (370 | ) | (370 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | 0 | 0 | 0 | 0 | 1,442 | 14 | (14 | ) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Surrender of common stock | 0 | 0 | 0 | 0 | (521 | ) | (5 | ) | (9,087 | ) | (9,092 | ) | 0 | (9,092 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of common stock options | 0 | 0 | 0 | 0 | 8 | 0 | 160 | 160 | 0 | 160 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of equity awards | 0 | 0 | - | 0 | - | 0 | 6,298 | 6,298 | 0 | 6,298 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | (104,909 | ) | $ | 0 | 20 | $ | 20 | 433,448 | $ | 4,334 | $ | 5,763,868 | $ | 5,663,313 | $ | 65,154 | $ | 5,728,467 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | 299,115 | $ | 2,216 | 20 | $ | 20 | 616,659 | $ | 6,167 | $ | 9,591,871 | $ | 9,899,389 | $ | 210,793 | $ | 10,110,182 | 20 | $ | 20 | 616,659 | $ | 6,167 | $ | 9,591,871 | $ | 299,115 | $ | 2,216 | $ | 9,899,389 | $ | 210,793 | $ | 10,110,182 | ||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests | 0 | 0 | - | 0 | - | 0 | 0 | 0 | 891 | 891 | - | - | - | - | - | - | - | - | 891 | 891 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income/(loss) | 237,302 | 0 | - | 0 | - | 0 | 0 | 237,302 | (1,343 | ) | 235,959 | - | - | - | - | - | 237,302 | - | 237,302 | (1,343 | ) | 235,959 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests income | 0 | 0 | - | 0 | - | 0 | 0 | 0 | (333 | ) | (333 | ) | - | - | - | - | - | - | - | - | (333 | ) | (333 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to common and preferred shares | (123,758 | ) | 0 | - | 0 | - | 0 | 0 | (123,758 | ) | 0 | (123,758 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to preferred shares | - | - | - | - | - | (6,354 | ) | - | (6,354 | ) | - | (6,354 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to common shares | - | - | - | - | - | (117,404 | ) | - | (117,404 | ) | - | (117,404 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | 0 | 0 | - | 0 | - | 0 | 0 | 0 | (4,340 | ) | (4,340 | ) | - | - | - | - | - | - | - | - | (4,340 | ) | (4,340 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | 0 | 0 | 0 | 0 | 1,712 | 17 | (17 | ) | 0 | 0 | 0 | - | - | 1,712 | 17 | (17 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Surrender of common stock | 0 | 0 | 0 | 0 | (570 | ) | (6 | ) | (13,438 | ) | (13,444 | ) | 0 | (13,444 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Surrender of restricted common stock | - | - | (570 | ) | (6 | ) | (13,438 | ) | - | - | (13,444 | ) | - | (13,444 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of common stock options | 0 | 0 | 0 | 0 | 128 | 1 | 2,567 | 2,568 | 0 | 2,568 | - | - | 128 | 1 | 2,567 | - | - | 2,568 | - | 2,568 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of equity awards | 0 | 0 | - | 0 | - | 0 | 7,437 | 7,437 | 0 | 7,437 | - | - | - | - | 7,437 | - | - | 7,437 | - | 7,437 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption/conversion of noncontrolling interests | 0 | 0 | 0 | 0 | 73 | 1 | 1,535 | 1,536 | (1,536 | ) | 0 | - | - | 73 | 1 | 1,535 | - | - | 1,536 | (1,536 | ) | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | 412,659 | $ | 2,216 | 20 | $ | 20 | 618,002 | $ | 6,180 | $ | 9,589,955 | $ | 10,011,030 | $ | 204,132 | $ | 10,215,162 | 20 | $ | 20 | 618,002 | $ | 6,180 | $ | 9,589,955 | $ | 412,659 | $ | 2,216 | $ | 10,011,030 | $ | 204,132 | $ | 10,215,162 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | 19 | $ | 19 | 618,484 | $ | 6,185 | $ | 9,618,271 | $ | (119,548 | ) | $ | 10,581 | $ | 9,515,508 | $ | 131,401 | $ | 9,646,909 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | - | - | - | - | - | 289,763 | - | 289,763 | 4,013 | 293,776 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable noncontrolling interests income | - | - | - | - | - | - | - | - | (1,546 | ) | (1,546 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to preferred shares | - | - | - | - | - | (6,251 | ) | - | (6,251 | ) | - | (6,251 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared to common shares | - | - | - | - | - | (142,574 | ) | - | (142,574 | ) | - | (142,574 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of preferred stock | - | - | - | - | (320 | ) | - | - | (320 | ) | - | (320 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | - | - | - | - | - | - | - | - | (1,063 | ) | (1,063 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | - | - | 1,988 | 20 | (20 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Surrender of restricted common stock | - | - | (753 | ) | (8 | ) | (16,089 | ) | - | - | (16,097 | ) | - | (16,097 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of common stock options | - | - | 173 | 2 | 3,725 | - | - | 3,727 | - | 3,727 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of equity awards | - | - | - | - | 9,346 | - | - | 9,346 | - | 9,346 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | 19 | $ | 19 | 619,892 | $ | 6,199 | $ | 9,614,913 | $ | 21,390 | $ | 10,581 | $ | 9,653,102 | $ | 132,805 | $ | 9,785,907 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)(unaudited)
(in thousands)
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Cash flow from operating activities: | ||||||||||||||||
Net income | $ | 235,959 | $ | 141,425 | $ | 293,776 | $ | 235,959 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 130,294 | 74,876 | 126,301 | 130,294 | ||||||||||||
Impairment charges | 272 | 0 | 11,806 | 272 | ||||||||||||
Straight-line rental income adjustments, net | (7,701 | ) | (7,935 | ) | ||||||||||||
Amortization of above-market and below-market leases, net | (2,989 | ) | (4,297 | ) | ||||||||||||
Amortization of deferred financing costs and fair value debt adjustments, net | (2,313 | ) | (7,021 | ) | ||||||||||||
Early extinguishment of debt charges | 7,173 | 0 | - | 7,173 | ||||||||||||
Equity award expense | 7,513 | 6,457 | 9,333 | 7,513 | ||||||||||||
Gain on sale of properties | (4,193 | ) | (10,005 | ) | (39,206 | ) | (4,193 | ) | ||||||||
Gain on marketable securities, net | (121,764 | ) | (61,085 | ) | ||||||||||||
Loss/(gain) on marketable securities, net | 10,144 | (121,764 | ) | |||||||||||||
Equity in income of joint ventures, net | (23,570 | ) | (17,752 | ) | (24,204 | ) | (23,570 | ) | ||||||||
Equity in income of other real estate investments, net | (5,373 | ) | (3,787 | ) | ||||||||||||
Equity in income of other investments, net | (2,122 | ) | (5,373 | ) | ||||||||||||
Distributions from joint ventures and other investments | 25,925 | 19,198 | 13,428 | 25,925 | ||||||||||||
Change in accounts and notes receivable, net | 990 | 18,593 | 8,887 | 8,925 | ||||||||||||
Change in accounts payable and accrued expenses | (14,897 | ) | 15,387 | (30,597 | ) | (14,897 | ) | |||||||||
Change in other operating assets and liabilities, net | (43,778 | ) | (34,936 | ) | (19,310 | ) | (32,460 | ) | ||||||||
Net cash flow provided by operating activities | 194,551 | 148,371 | 345,233 | 194,551 | ||||||||||||
Cash flow from investing activities: | ||||||||||||||||
Acquisition of operating real estate | (18,671 | ) | (84,312 | ) | ||||||||||||
Acquisition of operating real estate and other related net assets | (98,546 | ) | (18,671 | ) | ||||||||||||
Improvements to operating real estate | (29,435 | ) | (20,569 | ) | (40,202 | ) | (29,435 | ) | ||||||||
Investment in marketable securities | (1,469 | ) | 0 | (2,202 | ) | (1,469 | ) | |||||||||
Proceeds from sale of marketable securities | 100 | 50 | 138,207 | 100 | ||||||||||||
Investment in cost method investment | (3,000 | ) | 0 | - | (3,000 | ) | ||||||||||
Investments in and advances to real estate joint ventures | (13,116 | ) | (1,805 | ) | (12,848 | ) | (13,116 | ) | ||||||||
Reimbursements of investments in and advances to real estate joint ventures | 8,569 | 967 | 5,446 | 8,569 | ||||||||||||
Investments in and advances to other investments | (8,445 | ) | (419 | ) | (6,326 | ) | (8,445 | ) | ||||||||
Reimbursements of investments in and advances to other investments | 24,398 | 343 | 199 | 24,398 | ||||||||||||
Investment in other financing receivable | (3,000 | ) | (397 | ) | ||||||||||||
Collection of mortgage loans receivable | 43 | 37 | ||||||||||||||
Investment in mortgage and other financing receivables | (11,211 | ) | (3,000 | ) | ||||||||||||
Collection of mortgage and other financing receivables | 59 | 43 | ||||||||||||||
Proceeds from sale of properties | 8,410 | 22,181 | 70,983 | 8,410 | ||||||||||||
Net cash flow used for investing activities | (35,616 | ) | (83,924 | ) | ||||||||||||
Net cash flow provided by/(used for) investing activities | 43,559 | (35,616 | ) | |||||||||||||
Cash flow from financing activities: | ||||||||||||||||
Principal payments on debt, excluding normal amortization of rental property debt | (85,683 | ) | (12,272 | ) | (37,187 | ) | (85,683 | ) | ||||||||
Principal payments on rental property debt | (2,600 | ) | (2,661 | ) | (2,794 | ) | (2,600 | ) | ||||||||
Proceeds from mortgage loan financings | 19,000 | 0 | - | 19,000 | ||||||||||||
Proceeds from issuance of unsecured notes | 600,000 | 0 | - | 600,000 | ||||||||||||
Repayments of unsecured notes | (500,000 | ) | 0 | - | (500,000 | ) | ||||||||||
Financing origination costs | (10,165 | ) | 0 | (6,026 | ) | (10,165 | ) | |||||||||
Payment of early extinguishment of debt charges | (6,470 | ) | 0 | - | (6,470 | ) | ||||||||||
Contributions from noncontrolling interests | 891 | 0 | - | 891 | ||||||||||||
Redemption/distribution of noncontrolling interests | (4,673 | ) | (539 | ) | (2,609 | ) | (4,673 | ) | ||||||||
Dividends paid | (123,758 | ) | (80,039 | ) | (148,882 | ) | (123,758 | ) | ||||||||
Proceeds from issuance of stock, net | 2,568 | 160 | 3,727 | 2,568 | ||||||||||||
Repurchase of preferred stock | (268 | ) | - | |||||||||||||
Shares repurchased for employee tax withholding on equity awards | (13,428 | ) | (9,082 | ) | (16,085 | ) | (13,428 | ) | ||||||||
Change in tenants' security deposits | 1,038 | 650 | 680 | 1,038 | ||||||||||||
Net cash flow used for financing activities | (123,280 | ) | (103,783 | ) | (209,444 | ) | (123,280 | ) | ||||||||
Net change in cash, cash equivalents and restricted cash | 35,655 | (39,336 | ) | 179,348 | 35,655 | |||||||||||
Cash, cash equivalents and restricted cash, beginning of the period | 334,663 | 293,188 | 149,829 | 334,663 | ||||||||||||
Cash, cash equivalents and restricted cash, end of the period | $ | 370,318 | $ | 253,852 | $ | 329,177 | $ | 370,318 | ||||||||
Interest paid during the period including payment of early extinguishment of debt charges of $6,470 and $0, respectively (net of capitalized interest of $102 and $296, respectively) | $ | 60,213 | $ | 29,383 | ||||||||||||
Interest paid during the period, including payment of early extinguishment of debt charges of $0 and $6,470, respectively (net of capitalized interest of $198 and $102, respectively) | $ | 54,847 | $ | 60,213 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KIMCO REALTY OP, LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except unit information)
March 31, 2023 | December 31, 2022 | |||||||
Assets: | ||||||||
Real estate, net of accumulated depreciation and amortization of $3,523,503 and $3,417,414, respectively | $ | 15,108,018 | $ | 15,039,828 | ||||
Investments in and advances to real estate joint ventures | 1,092,477 | 1,091,551 | ||||||
Other investments | 132,935 | 107,581 | ||||||
Cash and cash equivalents | 329,177 | 149,829 | ||||||
Marketable securities | 451,583 | 597,732 | ||||||
Accounts and notes receivable, net | 303,063 | 304,226 | ||||||
Operating lease right-of-use assets, net | 132,020 | 133,733 | ||||||
Other assets | 411,956 | 401,642 | ||||||
Total assets (1) | $ | 17,961,229 | $ | 17,826,122 | ||||
Liabilities: | ||||||||
Notes payable, net | $ | 6,778,050 | $ | 6,780,969 | ||||
Mortgages payable, net | 374,285 | 376,917 | ||||||
Accounts payable and accrued expenses | 203,053 | 207,815 | ||||||
Dividends payable | 5,322 | 5,326 | ||||||
Operating lease liabilities | 112,413 | 113,679 | ||||||
Other liabilities | 609,266 | 601,574 | ||||||
Total liabilities (1) | 8,082,389 | 8,086,280 | ||||||
Redeemable noncontrolling interests | 92,933 | 92,933 | ||||||
Commitments and Contingencies (Footnote 17) | ||||||||
Members' capital: | ||||||||
Preferred units; Issued and outstanding 19,421 and 19,435 units, respectively | 468,707 | 469,027 | ||||||
Common units; Issued and outstanding 619,891,809 and 618,483,565 units, respectively | 9,173,814 | 9,035,900 | ||||||
Accumulated other comprehensive income | 10,581 | 10,581 | ||||||
Total members' capital | 9,653,102 | 9,515,508 | ||||||
Noncontrolling interests | 132,805 | 131,401 | ||||||
Total equity | 9,785,907 | 9,646,909 | ||||||
Total liabilities and equity | $ | 17,961,229 | $ | 17,826,122 |
(1) Total assets include restricted assets of consolidated variable interest entities (“VIEs”) at March 31, 2023 and December 31, 2022 of $435,118 and $436,605, respectively. Total liabilities include non-recourse liabilities of consolidated VIEs at March 31, 2023 and December 31, 2022 of $198,959 and $199,132, respectively. See Footnote 12 of the Notes to Condensed Consolidated Financial Statements.
The accompanying notes are an integral part of these condensed consolidated financial statements.
KIMCO REALTY OP, LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per unit data)
Three Months Ended March 31, | ||||||||
2023 | 2022 | |||||||
Revenues | ||||||||
Revenues from rental properties, net | $ | 438,338 | $ | 422,654 | ||||
Management and other fee income | 4,554 | 4,595 | ||||||
Total revenues | 442,892 | 427,249 | ||||||
Operating expenses | ||||||||
Rent | (4,013 | ) | (4,081 | ) | ||||
Real estate taxes | (57,506 | ) | (54,314 | ) | ||||
Operating and maintenance | (75,242 | ) | (69,225 | ) | ||||
General and administrative | (34,749 | ) | (29,948 | ) | ||||
Impairment charges | (11,806 | ) | (272 | ) | ||||
Depreciation and amortization | (126,301 | ) | (130,294 | ) | ||||
Total operating expenses | (309,617 | ) | (288,134 | ) | ||||
Gain on sale of properties | 39,206 | 4,193 | ||||||
Operating income | 174,481 | 143,308 | ||||||
Other income/(expense) | ||||||||
Special dividend income | 194,116 | - | ||||||
Other income, net | 3,132 | 5,983 | ||||||
(Loss)/gain on marketable securities, net | (10,144 | ) | 121,764 | |||||
Interest expense | (61,306 | ) | (57,019 | ) | ||||
Early extinguishment of debt charges | - | (7,173 | ) | |||||
Income before income taxes, net, equity in income of joint ventures, net, and equity in income from other investments, net | 298,279 | 206,863 | ||||||
(Provision)/benefit for income taxes, net | (30,829 | ) | 153 | |||||
Equity in income of joint ventures, net | 24,204 | 23,570 | ||||||
Equity in income of other investments, net | 2,122 | 5,373 | ||||||
Net income | 293,776 | 235,959 | ||||||
Net (income)/loss attributable to noncontrolling interests | (4,013 | ) | 1,343 | |||||
Net income attributable to the Company | 289,763 | 237,302 | ||||||
Preferred distributions, net | (6,251 | ) | (6,354 | ) | ||||
Net income available to the Company's common unitholders | $ | 283,512 | $ | 230,948 | ||||
Per common unit: | ||||||||
Net income available to the Company's common unitholders: | ||||||||
-Basic | $ | 0.46 | $ | 0.37 | ||||
-Diluted | $ | 0.46 | $ | 0.37 | ||||
Weighted average units: | ||||||||
-Basic | 616,489 | 614,767 | ||||||
-Diluted | 619,628 | 616,758 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KIMCO REALTY OP, LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
(in thousands)
Three Months Ended March 31, | ||||||||
2023 | 2022 | |||||||
Net income | $ | 293,776 | $ | 235,959 | ||||
Other comprehensive income: | ||||||||
Change in unrealized gains related to defined benefit plan | - | - | ||||||
Other comprehensive income | - | - | ||||||
Comprehensive income | 293,776 | 235,959 | ||||||
Comprehensive (income)/loss attributable to noncontrolling interests | (4,013 | ) | 1,343 | |||||
Comprehensive income attributable to the Company | $ | 289,763 | $ | 237,302 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KIMCO REALTY OP, LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL
For the Three Months Ended March 31, 2023 and 2022
(unaudited)
(in thousands)
Accumulated | ||||||||||||||||||||||||||||||
Other | Total | |||||||||||||||||||||||||||||
Preferred Units | Common Units | Comprehensive | Members' | Noncontrolling | Total | |||||||||||||||||||||||||
Issued | Amount | Issued |
| Amount | Income | Capital | Interests | Capital | ||||||||||||||||||||||
Balance at January 1, 2022 | 20 | $ | 472,533 | 616,659 | $ | 9,424,640 | $ | 2,216 | $ | 9,899,389 | $ | 210,793 | $ | 10,110,182 | ||||||||||||||||
Contributions from noncontrolling interests | - | - | - | - | - | - | 891 | 891 | ||||||||||||||||||||||
Net income/(loss) | - | 6,354 | - | 230,948 | - | 237,302 | (1,343 | ) | 235,959 | |||||||||||||||||||||
Redeemable noncontrolling interests income | - | - | - | - | - | - | (333 | ) | (333 | ) | ||||||||||||||||||||
Distributions declared to preferred unitholders | - | (6,354 | ) | - | - | - | (6,354 | ) | - | (6,354 | ) | |||||||||||||||||||
Distributions declared to common unitholders | - | - | - | (117,404 | ) | - | (117,404 | ) | - | (117,404 | ) | |||||||||||||||||||
Distributions to noncontrolling interests | - | - | - | - | - | - | (4,340 | ) | (4,340 | ) | ||||||||||||||||||||
Issuance of common units | - | - | 1,712 | - | - | - | - | - | ||||||||||||||||||||||
Surrender of restricted common units | - | - | (570) | (13,444 | ) | - | (13,444 | ) | - | (13,444 | ) | |||||||||||||||||||
Exercise of common stock options | - | - | 128 | 2,568 | - | 2,568 | - | 2,568 | ||||||||||||||||||||||
Amortization of equity awards | - | - | - | 7,437 | - | 7,437 | - | 7,437 | ||||||||||||||||||||||
Redemption/conversion of noncontrolling interests | - | - | 73 | 1,536 | - | 1,536 | (1,536 | ) | - | |||||||||||||||||||||
Balance at March 31, 2022 | 20 | $ | 472,533 | 618,002 | $ | 9,536,281 | $ | 2,216 | $ | 10,011,030 | $ | 204,132 | $ | 10,215,162 | ||||||||||||||||
Balance at January 1, 2023 | 19 | $ | 469,027 | 618,484 | $ | 9,035,900 | $ | 10,581 | $ | 9,515,508 | $ | 131,401 | $ | 9,646,909 | ||||||||||||||||
Net income | - | 6,251 | - | 283,512 | - | 289,763 | 4,013 | 293,776 | ||||||||||||||||||||||
Redeemable noncontrolling interests income | - | - | - | - | - | - | (1,546 | ) | (1,546 | ) | ||||||||||||||||||||
Distributions declared to preferred unitholders | - | (6,251 | ) | - | - | - | (6,251 | ) | - | (6,251 | ) | |||||||||||||||||||
Distributions declared to common unitholders | - | - | - | (142,574 | ) | - | (142,574 | ) | - | (142,574 | ) | |||||||||||||||||||
Repurchase of preferred units | - | (320 | ) | - | - | - | (320 | ) | - | (320 | ) | |||||||||||||||||||
Distributions to noncontrolling interests | - | - | - | - | - | - | (1,063 | ) | (1,063 | ) | ||||||||||||||||||||
Issuance of common units | - | - | 1,988 | - | - | - | - | - | ||||||||||||||||||||||
Surrender of restricted common units | - | - | (753) | (16,097 | ) | - | (16,097 | ) | - | (16,097 | ) | |||||||||||||||||||
Exercise of common stock options | - | - | 173 | 3,727 | - | 3,727 | - | 3,727 | ||||||||||||||||||||||
Amortization of equity awards | - | - | - | 9,346 | - | 9,346 | - | 9,346 | ||||||||||||||||||||||
Balance at March 31, 2023 | 19 | $ | 468,707 | 619,892 | $ | 9,173,814 | $ | 10,581 | $ | 9,653,102 | $ | 132,805 | $ | 9,785,907 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KIMCO REALTY OP, LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Three Months Ended March 31, | ||||||||
2023 | 2022 | |||||||
Cash flow from operating activities: | ||||||||
Net income | $ | 293,776 | $ | 235,959 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 126,301 | 130,294 | ||||||
Impairment charges | 11,806 | 272 | ||||||
Straight-line rental income adjustments, net | (7,701 | ) | (7,935 | ) | ||||
Amortization of above-market and below-market leases, net | (2,989 | ) | (4,297 | ) | ||||
Amortization of deferred financing costs and fair value debt adjustments, net | (2,313 | ) | (7,021 | ) | ||||
Early extinguishment of debt charges | - | 7,173 | ||||||
Equity award expense | 9,333 | 7,513 | ||||||
Gain on sale of properties | (39,206 | ) | (4,193 | ) | ||||
Loss/(gain) on marketable securities, net | 10,144 | (121,764 | ) | |||||
Equity in income of joint ventures, net | (24,204 | ) | (23,570 | ) | ||||
Equity in income of other investments, net | (2,122 | ) | (5,373 | ) | ||||
Distributions from joint ventures and other investments | 13,428 | 25,925 | ||||||
Change in accounts and notes receivable, net | 8,887 | 8,925 | ||||||
Change in accounts payable and accrued expenses | (30,597 | ) | (14,897 | ) | ||||
Change in other operating assets and liabilities, net | (19,310 | ) | (32,460 | ) | ||||
Net cash flow provided by operating activities | 345,233 | 194,551 | ||||||
Cash flow from investing activities: | ||||||||
Acquisition of operating real estate and other related assets | (98,546 | ) | (18,671 | ) | ||||
Improvements to operating real estate | (40,202 | ) | (29,435 | ) | ||||
Investment in marketable securities | (2,202 | ) | (1,469 | ) | ||||
Proceeds from sale of marketable securities | 138,207 | 100 | ||||||
Investment in cost method investment | - | (3,000 | ) | |||||
Investments in and advances to real estate joint ventures | (12,848 | ) | (13,116 | ) | ||||
Reimbursements of investments in and advances to real estate joint ventures | 5,446 | 8,569 | ||||||
Investments in and advances to other investments | (6,326 | ) | (8,445 | ) | ||||
Reimbursements of investments in and advances to other investments | 199 | 24,398 | ||||||
Investment in mortgage and other financing receivables | (11,211 | ) | (3,000 | ) | ||||
Collection of mortgage and other financing receivables | 59 | 43 | ||||||
Proceeds from sale of properties | 70,983 | 8,410 | ||||||
Net cash flow provided by/(used for) investing activities | 43,559 | (35,616 | ) | |||||
Cash flow from financing activities: | ||||||||
Principal payments on debt, excluding normal amortization of rental property debt | (37,187 | ) | (85,683 | ) | ||||
Principal payments on rental property debt | (2,794 | ) | (2,600 | ) | ||||
Proceeds from mortgage loan financings | - | 19,000 | ||||||
Proceeds from issuance of unsecured notes | - | 600,000 | ||||||
Repayments of unsecured notes | - | (500,000 | ) | |||||
Financing origination costs | (6,026 | ) | (10,165 | ) | ||||
Payment of early extinguishment of debt charges | - | (6,470 | ) | |||||
Contributions from noncontrolling interests | - | 891 | ||||||
Redemption/distribution of noncontrolling interests | (2,609 | ) | (4,673 | ) | ||||
Distributions to common and preferred unitholders | (148,882 | ) | (123,758 | ) | ||||
Proceeds from issuance of stock, net | 3,727 | 2,568 | ||||||
Repurchase of preferred units | (268 | ) | - | |||||
Shares repurchased for employee tax withholding on equity awards | (16,085 | ) | (13,428 | ) | ||||
Change in tenants' security deposits | 680 | 1,038 | ||||||
Net cash flow used for financing activities | (209,444 | ) | (123,280 | ) | ||||
Net change in cash, cash equivalents and restricted cash | 179,348 | 35,655 | ||||||
Cash, cash equivalents and restricted cash, beginning of the period | 149,829 | 334,663 | ||||||
Cash, cash equivalents and restricted cash, end of the period | $ | 329,177 | $ | 370,318 | ||||
Interest paid during the period, including payment of early extinguishment of debt charges of $0 and $6,470, respectively (net of capitalized interest of $198 and $102, respectively) | $ | 54,847 | $ | 60,213 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Business and Organization
Kimco Realty Corporation (the “Parent Company”) is a real estate investment trust ("REIT"), of which substantially all of the Parent Company’s assets are held by, and substantially all of the Parent Company’s operations are conducted through, Kimco Realty OP, LLC (“Kimco OP”), either directly or through its subsidiaries, as the Parent Company’s operating company. The Parent Company is the sole managing member and exercises exclusive control over Kimco OP. As of March 31, 2023, the Parent Company owned 100% of the outstanding limited liability company interests (the "OP Units") in Kimco OP. The term "the Company", means the Parent Company and Kimco OP, collectively.
The Company, a Maryland corporation, is North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers includingand a growing portfolio of mixed-use assets. The terms “Kimco,” the “Company,” “we,” “our” and “us” each refers to Kimco Realty Corporation and our subsidiaries, unless the context indicates otherwise. The Company, its affiliates and related real estate joint ventures are engaged principally in the ownership, management, development and operation of open-air shopping centers, including mixed-use assets which, are anchored generallyprimarily by grocery stores, off-price retailers, home improvement centers, discounters and/or service-oriented tenants. Additionally, the Company provides complementary services that capitalize on the Company’s established retail real estate expertise. The Company’s mission is to create destinations for everyday living that inspire a sense of community and deliver value to our many stakeholders.
The Company elected status as a Real Estate Investment Trust (a “REIT”)REIT for federal income tax purposes beginning in its taxable year ended December 31, 1991 and operates in a manner that enables the Company to maintain its status as a REIT. AsTo qualify as a REIT, with respect to each taxable year, the Company must meet several organizational and operational requirements, and is required to annually distribute at least 9090% percent of its net taxable income, (excludingdetermined without regard to the dividends paid deduction and excluding any net capital gain) and does not pay federal income taxes ongain. In addition, the amount distributed to its shareholders. The Company is not generallywill be subject to federal income taxes iftax at regular corporate rates to the extent that it distributes less than 100100% percent of its net taxable income. Most states where income, including any net capital gains. In January 2023, the Company holds investmentsconsummated the Reorganization into an UPREIT structure as described in real estate conformthe Explanatory Note at the beginning of this Quarterly Report on Form 10-Q. If, as the Company believes, it is organized and operates in such a manner so as to qualify and remain qualified as a REIT under the Code, the Company, generally will not be subject to U.S. federal rules recognizing REITs. Certainincome tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income, as defined in the Code. The Company maintains certain subsidiaries that have made a joint electionelections with the Company to be treated as taxable REIT subsidiaries (“TRSs”), whichthat permit the Company to engage through such TRSs in certain business activities whichthat the REIT may not conduct directly. A TRS is subject to federal and state income taxes on its income, and the Company includes, when applicable, a provision for taxes in its condensed consolidated financial statements. The Company is subject to and also includes in its tax provision non-U.S. income taxes on certain investments located in jurisdictions outside the U.S. These investments are held by the Company at the REIT level and not in the Company’s taxable REIT subsidiaries. Accordingly, the Company does not expect a U.S. income tax impact associated with the repatriation of undistributed earnings from the Company’s foreign subsidiaries.
Weingarten Merger
On August 3, 2021, Weingarten Realty Investors (“Weingarten”) merged with and into the Company, with the Company continuing as the surviving public company (the “Merger”), pursuant to the definitive merger agreement (the “Merger Agreement”) between the Company and Weingarten, entered into on April 15, 2021. Under the terms of the Merger Agreement, each Weingarten common share was entitled to 1.408 newly issued shares of the Company’s common stock plus $2.20 in cash, subject to certain adjustments specified in the Merger Agreement.
The following highlights the Company’s significant activity upon completion of the $4.1 billion strategic Merger with Weingarten on August 3, 2021:
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See the Company's audited Annual Report on Form 10-K for the year ended December 31, 2021 (the “10-K”) for further disclosure regarding the Merger transaction.
COVID-19 PandemicEconomic Conditions
The coronavirus disease 2019 (“COVID-19”) pandemiceconomy continues to face several issues including inflation risk, bank failures and liquidity constraints, lack of qualified employees, tenant bankruptcies and supply chain issues, which could impact the retail real estate industry for both landlordsCompany and its tenants. The extentIn response to which the COVID-19 pandemic impactsrising rate of inflation the Company’s financial condition, results of operationsFederal Reserve has steadily increased interest rates, and cash flows, in the near term, will may continue to depend on future developments, which are uncertain at this time. The Company’sincrease interest rates, until the rate of inflation begins to decrease. These increases in interest rates could adversely impact the business operations and financial results will dependof the Company and its tenants. In addition, slower economic growth and the potential for a recession could have an adverse effect on numerous evolving factors,the Company and its tenants. This could negatively affect the overall demand for retail space, including the duration and scope of the pandemic, governmental, business and individual actions that have been and continue to be takendemand for leasable space in response to the pandemic, the distribution and effectiveness of vaccines, impacts on economic activity from the pandemic and actions taken in response, the effects of the pandemic on the Company’s properties. As a result, the Company could feel pricing pressure on rents that it is able to charge to new or renewing tenants, such that future rents and their businesses and the ability of tenants to make their rental payments.rent spreads could be negatively impacted. Any of these events could materially adversely impact the Company’s business, financial condition, results of operations or stock price. The development and distribution of COVID-19 vaccines has assisted in allowing many restrictions to be lifted, providing a path to recovery. The overall economyCompany continues to recover but several issues including the lack of qualified employees, inflation risk, supply chain issues and new COVID-19 variants have impacted the pace of the recovery. The Company will continue to monitor the economic, financial, and social conditions resulting from the COVID-19 pandemic and will assess its asset portfolio for any impairment indicators. If the Company determines that any of its assets are impaired, the Company would be required to take impairment charges, and such amounts could be material.
2. Summary of Significant Accounting Policies
PrinciplesBasis of ConsolidationPresentation
This report combines the quarterly reports on Form 10-Q for the quarterly period ended March 31, 2023, of the Parent Company and Kimco OP into this single report. The accompanying Condensed Consolidated Financial Statements include the accounts of the Company.Parent Company and Kimco OP and their consolidated subsidiaries. The Reorganization resulted in a merger of entities under common control in accordance with accounting principles generally accepted in the United States ("GAAP"). Accordingly, the accompanying consolidated financial statements including the notes thereto, are presented as if the Reorganization had occurred at the earliest period presented. The Company’s subsidiaries include subsidiaries which are wholly owned or which the Company has a controlling interest, including where the Company has been determined to be a primary beneficiary of a variable interest entity (“VIE”) in accordance with the consolidation guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). All inter-company balances and transactions have been eliminated in consolidation. The information presented in the accompanying Condensed Consolidated Financial Statements is unaudited and reflects all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature.
These Condensed Consolidated Financial Statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2022, as certain disclosures in this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 that would duplicate those included in thesuch Annual Report on Form 10-K are not included in these Condensed Consolidated Financial Statements.
Subsequent Events
The Company has evaluated subsequent events and transactions for potential recognition or disclosure in its Condensed Consolidated Financial Statements.Statements (see Footnote 6 of the Notes to the Company’s Condensed Consolidated Financial Statements).
Reclassifications
Certain amounts in the prior period have been reclassified in order to conform to the current period’s presentation. For comparative purposes, for the three months ended March 31, 2022, the Company reclassified certain cash flows (used for)/provided by operating activities on the Company’s Condensed Consolidated Statements of Cash Flows as follows (in millions):
Three Months Ended March 31, 2022 | ||||
Operating activities: | ||||
Straight-line rental income adjustments, net | $ | (7.9 | ) | |
Amortization of above-market and below-market leases, net | $ | (4.3 | ) | |
Amortization of deferred financing costs and fair value debt adjustments, net | $ | (7.0 | ) | |
Change in accounts and notes receivable, net | $ | 7.9 | ||
Change in other operating assets and liabilities, net | $ | 11.3 |
New Accounting Pronouncements
The following table represents an Accounting Standards Update (“ASU”) to the FASB’s ASCs that, as of March 31, 2022,2023, areis not yet effective for the Company and for which the Company has not elected early adoption, where permitted:
ASU | Description | Effective Date | Effect on the financial statements or other significant matters |
ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions | This ASU clarifies the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and provides new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. | January 1, 2024; Early adoption permitted | The Company is assessing the impact this ASU will have on the Company’s financial position and/or results of operations. |
The following ASUs to the FASB’s ASCs have been adopted by the Company as of the date listed:
ASU | Description | Adoption Date | Effect on the financial statements or other significant matters |
ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers | The amendments in this update require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination rather than at fair value on the acquisition date required by Topic 805. | January 1,
| The adoption of this ASU |
The following ASU to the FASB’s ASC has been adopted by the Company as of the date listed:
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3. Real Estate
Acquisitions
During the three months ended March 31, 2023, the Company acquired the following operating properties, through direct asset purchases or consolidation due to change in control resulting from the purchase of additional interests in certain operating properties held in an unconsolidated joint venture (in thousands):
Purchase Price | ||||||||||||||||||||||
Property Name | Location | Month Acquired | Cash | Debt | Other | Total | GLA* | |||||||||||||||
Portfolio (2 properties) (1) | Various | Jan-23 | $ | 69,130 | $ | 19,637 | $ | 13,019 | $ | 101,786 | 342 | |||||||||||
Crossroads Plaza Parcel | Cary, NC | Jan-23 | 2,173 | - | - | 2,173 | 5 | |||||||||||||||
Northridge Shopping Center Parcel | Arvada, CO | Jan-23 | 728 | - | - | 728 | 57 | |||||||||||||||
Stafford Marketplace Parcel (2) | Stafford, VA | Feb-23 | - | - | 12,527 | 12,527 | 87 | |||||||||||||||
Tustin Heights (1) | Tustin, CA | Mar-23 | 26,501 | 17,550 | 4,910 | 48,961 | 137 | |||||||||||||||
$ | 98,532 | $ | 37,187 | $ | 30,456 | $ | 166,175 | 628 |
* Gross leasable area ("GLA")
(1) | Other includes the Company’s previously held equity investments in the Prudential Investment Program and net gains on change in control. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as a result, recognized gains on change in control of interest of $7.7 million, in aggregate, resulting from the fair value adjustments associated with the Company’s previously held equity interests, which are included in Equity in income of joint ventures, net on the Company’s Condensed Consolidated Statements of Income. The Company previously held an ownership interest of 15.0% in these property interests. See Footnote 4 of the Notes to the Company's Condensed Consolidated Financial Statements. |
(2) | During the three months ended March 31, 2023, the Company received a land parcel as consideration resulting from the exercise of a termination option of an operating lease. |
Included in the Company’s Condensed Consolidated Statements of Income is $2.9 million in total revenues from the date of acquisition through March 31, 2023, for operating properties acquired/consolidated during the three months ended March 31, 2023.
The purchase price for these acquisitions was allocated to real estate and related intangible assets and liabilities acquired, as applicable, in accordance with our accounting policies for asset acquisitions. The purchase price allocation for properties acquired/consolidated during the three months ended March 31, 2023, is as follows (in thousands):
Allocation as of March 31, 2023 | Weighted Average | |||||||
Land | $ | 51,116 | n/a | |||||
Building | 99,947 | 50.0 | ||||||
Building improvements | 10,125 | 45.0 | ||||||
Tenant improvements | 8,320 | 4.1 | ||||||
In-place leases | 11,080 | 4.1 | ||||||
Above-market leases | 1,329 | 5.7 | ||||||
Below-market leases | (16,551 | ) | 23.6 | |||||
Other assets | 1,777 | n/a | ||||||
Other liabilities | (968 | ) | n/a | |||||
Net assets acquired | $ | 166,175 |
During the three months ended March 31, 2022, the Company acquired 2 parcels for an aggregate purchase price of $18.6 million, in separate transactions, which are located in San Marcos, CA and Columbia, MD.the following operating properties, through direct asset purchases (in thousands):
Property Name | Location | Month Acquired | Purchase Price | GLA | ||||||
Rancho San Marcos Parcel | San Marcos, CA | Jan-22 | $ | 2,407 | 6 | |||||
Columbia Crossing Parcel | Columbia, MD | Feb-22 | 16,239 | 60 | ||||||
$ | 18,646 | 66 |
Dispositions
The table below summarizes the Company’s disposition activity relating to consolidated operating properties and parcels for the three months ended March 31, 2023 and 2022(dollars in millions):
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Aggregate sales price | $ | 8.7 | $ | 23.0 | ||||||||||||
Aggregate sales price/gross fair value (1) (2) | $ | 117.6 | $ | 8.7 | ||||||||||||
Gain on sale of properties | $ | 4.2 | $ | 10.0 | $ | 39.2 | $ | 4.2 | ||||||||
Number of properties sold | 0 | 1 | 3 | - | ||||||||||||
Number of parcels sold | 4 | 4 | ||||||||||||||
Number of parcels sold/(deconsolidated) (1) | 3 | 4 |
(1) | During 2023, the Company contributed a land parcel and related entitlements, located in Admore, PA, into a preferred equity investment with a gross value of $19.6 million. As a result, the Company no longer consolidates this land parcel and has a non-controlling interest in this investment. See Footnote 5 of the Notes to the Company's Condensed Consolidated Financial Statements for preferred equity investment disclosure. |
(2) | During 2023, the Company provided as a lender seller financing of $25.0 million related to the sale of an operating property located in Gresham, OR. See Footnote 9 of the Notes to the Company's Condensed Consolidated Financial Statements for mortgage receivable loan disclosure. |
(3) | Before noncontrolling interests of |
Assets Held-For-SaleImpairments
AtDuring the three months ended March 31, 2022,2023, the Company had arecognized aggregate impairment charges of $11.8 million related to adjustments to property carrying values for properties which the Company is marketing for sale as part of its select capital recycling program and land parcel classified as held-for-sale at a net carrying amountsuch, has adjusted the anticipated hold period for such properties. The Company’s estimated fair values of $13.7 million, which is included in Other assets onthese properties were primarily based upon estimated sales prices from signed contracts or letters of intent from third party offers. See Footnote 13 to the Notes to the Company’s Condensed Consolidated Balance Sheets.Financial Statements for fair value disclosure.
4. Investments in and Advances to Real Estate Joint Ventures
The Company has investments in and advances to various real estate joint ventures. These joint ventures are engaged primarily in the operation of shopping centers which are either owned or held under long-term operating leases. The Company and the joint venture partners have joint approval rights for major decisions, including those regarding property operations. As such, the Company holds noncontrolling interests in these joint ventures and accounts for them under the equity method of accounting. The Company manages certain of these joint venture investments and, where applicable, earns acquisition fees, leasing commissions, property management fees, asset management fees and construction management fees. The table below presents unconsolidated joint venture investments for which the Company held an ownership interest at March 31, 20222023 and December 31, 20212022 (dollars in millions):
Ownership | The Company’s Investment | Noncontrolling Ownership Interest | The Company’s Investment | ||||||||||||||||||||
Joint Venture | Interest | March 31, 2022 | December 31, 2021 | As of March 31, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||||
Prudential Investment Program | 15.0% | $ | 154.8 | $ | 163.0 | 15.0% | $ | 144.4 | $ | 153.6 | |||||||||||||
Kimco Income Opportunity Portfolio (“KIR”) | 48.6% | 192.3 | 186.0 | 52.1% | 283.3 | 281.5 | |||||||||||||||||
Canada Pension Plan Investment Board (“CPP”) | 55.0% | 175.1 | 165.1 | 55.0% | 196.7 | 190.8 | |||||||||||||||||
Other Institutional Joint Ventures | Various | 279.3 | 281.8 | Various | 253.5 | 256.8 | |||||||||||||||||
Other Joint Venture Programs | Various | 212.4 | 211.0 | Various | 214.6 | 208.9 | |||||||||||||||||
Total* | $ | 1,013.9 | $ | 1,006.9 | $ | 1,092.5 | $ | 1,091.6 |
* Representing 108 property interests and 21.9 million square feet of GLA, as of March 31, 2023, and 111 property interests and 22.4 million square feet of GLA, as of December 31, 2022. The table below presents the Company’s share of net income for the above investments, which is included in Equity in income of joint ventures, net on the Company’s Condensed Consolidated Statements of Income for the three months ended March 31, Three Months Ended March 31, Three Months Ended March 31, Joint Venture 2022 2021 2023 2022 Prudential Investment Program KIR CPP Other Institutional Joint Ventures Other Joint Venture Programs Total During the three months ended March 31, 2023, the Company acquired the remaining 85% interest in three operating properties from KimPru Portfolio, in separate transactions, with an aggregate gross fair value of $150.7 million. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as a result, recognized net gains on change in control of interests of $7.7 million, in aggregate, resulting from the fair value adjustments associated with the Company’s previously held equity interests. See Footnote 3 of the Notes to Condensed Consolidated Financial Statements for the operating properties acquired by the Company. During the three months ended March 31, 2022, certain of the Company’s real estate joint ventures disposed of The table below presents debt balances within the Company’s unconsolidated joint venture investments for which the Company held noncontrolling ownership interests at March 31, As of March 31, 2022 As of December 31, 2021 As of March 31, 2023 As of December 31, 2022 Joint Venture Mortgages and Notes Payable, Net Weighted Average Interest Rate Weighted Average Remaining Term (months)* Mortgages and Notes Payable, Net Weighted Average Interest Rate Weighted Average Remaining Term (months)* Mortgages and Notes Payable, Net Weighted Average Interest Rate Weighted Average Remaining Term (months)* Mortgages and Notes Payable, Net Weighted Average Interest Rate Weighted Average Remaining Term (months)* Prudential Investment Program KIR CPP Other Institutional Joint Ventures Other Joint Venture Programs Total * Includes extension options 5. Other Investments The Company has provided capital to owners and developers of real estate properties and loans through its Preferred Equity 6. Marketable Securities The amortized cost and unrealized gains, net of marketable securities as of March 31, As of March 31, 2022 As of December 31, 2021 As of March 31, 2023 As of December 31, 2022 Marketable securities: Amortized cost Unrealized gains, net Total fair value During the three months ended March 31, During the three months ended March 31, 2023, the Company received $194.1 million representing its share of the ACI special dividend payment and recognized this as Special dividend income on the Company’s Condensed Consolidated Statements of Income. As a result, the Company anticipates it may need to make a special dividend payment to maintain its compliance with REIT distribution requirements. The payment of this special dividend may be in the form of cash, common stock or some combination thereof. The Company’s determination regarding any such special dividend and the form thereof will be announced during the year ended December 31, 2023. Also during the three months ended March 31, 2023, the Company sold 7.1 million shares of Albertsons Companies Inc. (“ACI”) held by the Company, generating net proceeds of $137.4 million. For tax purposes, the Company recognized a long-term capital gain of $115.4 million. The Company anticipates retaining the proceeds from this stock sale for general corporate purposes and will pay federal and state taxes of $30.0 million on the taxable gain. As of March 31, 2023, the Company held 21.2 million shares of ACI, which had a value of $440.8 million. In April 2023, the Company sold an additional 7.0 million shares of ACI held by the Company, generating net proceeds of $144.9 million. For tax purposes, the Company will recognize a long-term capital gain of $125.9 million during the three months ended June 30, 2023. The Company anticipates retaining the proceeds from this stock sale for general corporate purposes and will pay estimated corporate taxes of $32.7 million on the taxable gain. 7. Accounts and Notes Receivable The components of accounts and notes receivable, net of potentially uncollectible amounts as of March 31, As of March 31, 2022 As of December 31, 2021 As of March 31, 2023 As of December 31, 2022 Billed tenant receivables Unbilled common area maintenance, insurance and tax reimbursements Deferred rent receivables Defined benefit plan receivable Other receivables Straight-line rent receivables Total accounts and notes receivable, net 8. Leases Lessor Leases The Company’s primary source of revenues is derived from lease agreements, which includes rental income and expense reimbursement. The Company’s lease income is comprised of minimum base rent, expense reimbursements, percentage rent, lease termination fee income, ancillary income, amortization of above-market and below-market rent adjustments and straight-line rent adjustments. The disaggregation of the Company’s lease income, which is included in Revenues from rental properties, net on the Company’s Condensed Consolidated Statements of Income, as either fixed or variable lease income based on the criteria specified in ASC 842, for the three months ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2022 2021 2023 2022 Lease income: Fixed lease income (1) Variable lease income (2) Above-market and below-market leases amortization, net Adjustments for potentially uncollectible revenues and disputed amounts (3) Total lease income (1) Includes minimum base rents, expense reimbursements, ancillary income and straight-line rent adjustments. (2) Includes minimum base rents, expense reimbursements, percentage rent, lease termination fee income and ancillary income. (3) The amounts represent adjustments associated with potentially uncollectible revenues and disputed Lessee Leases The Company currently leases real estate space under non-cancelable operating lease agreements for ground leases and administrative office leases. The Company’s operating leases have remaining lease terms ranging from less than one to The weighted-average remaining non-cancelable lease term and weighted-average discount rates for the Company’s operating and finance leases as of March 31, Operating Leases Finance Leases Operating Leases Finance Leases Weighted-average remaining lease term (in years) Weighted-average discount rate The components of the Company’s lease expense, which are included in interest expense, rent expense and general and administrative expense on the Company’s Condensed Consolidated Statements of Income for the three months ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2022 2021 2023 2022 Lease cost: Finance lease cost Operating lease cost Variable lease cost Total lease cost 9.Other Assets Assets Held-For-Sale At March 31, 2023, the Company had a land parcel classified as held-for-sale at a net carrying amount of $4.0 million. Mortgages and Other Financing Receivables During the three months ended March 31, 2023, the Company provided as a lender the following mortgage loans and other financing receivables (dollars in millions): Date Issued Face Amount Interest Rate Maturity Date Feb-23 Dec-24 Mar-23 Apr-24 10. Notes and Mortgages Payable Notes Payable Mortgages Payable During the three months ended March 31, Noncontrolling interests represent the portion of equity that the Company does not own in those entities it consolidates as a result of having a controlling interest or having determined that the Company was the primary beneficiary of a VIE in accordance with the provisions of the FASB’s Consolidation guidance. The Company accounts and reports for noncontrolling interests in accordance with the Consolidation guidance and the Distinguishing Liabilities from Equity guidance issued by the FASB. The Company identifies its noncontrolling interests separately within the equity section on the Company’s Condensed Consolidated Balance Sheets. The amounts of consolidated net income attributable to the Company and to the noncontrolling interests are presented separately on the Company’s Condensed Consolidated Statements of Income. Included within noncontrolling interests are units that were determined to be contingently redeemable that are classified as Redeemable noncontrolling interests and presented in the mezzanine section between Total liabilities and The following table presents the change in the redemption value of the Redeemable noncontrolling interests for the three months ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2022 2021 2023 2022 Balance at January 1, Fair value allocation to partnership interest Net income Distributions Balance at March 31, Consolidated Operating Properties Included within the Company’s The majority of the operations of these VIEs are funded with cash flows generated from the properties. The Company has not provided financial support to any of these VIEs that it was not previously contractually required to provide, which consists primarily of funding any capital expenditures, including tenant improvements, which are deemed necessary to continue to operate the entity and any operating cash shortfalls that the entity may experience. All liabilities of these consolidated VIEs are non-recourse to the Company (“VIE Liabilities”). The assets of the unencumbered VIEs are not restricted for use to settle only the obligations of these VIEs. The remaining VIE assets are encumbered by third-party non-recourse mortgage debt. The assets associated with these encumbered VIEs (“Restricted Assets”) are collateral under the respective mortgages and are therefore restricted and can only be used to settle the corresponding liabilities of the VIE. The table below summarizes the consolidated VIEs and the classification of the Restricted Assets and VIE Liabilities on the Company’s Condensed Consolidated Balance Sheets as follows (dollars in millions): As of March 31, 2022 As of December 31, 2021 As of March 31, 2023 As of December 31, 2022 Number of unencumbered VIEs Number of encumbered VIEs Total number of consolidated VIEs Restricted Assets: Real estate, net Cash and cash equivalents Accounts and notes receivable, net Other assets Total Restricted Assets VIE Liabilities: Mortgages payable, net Accounts payable and accrued expenses Operating lease liabilities Other liabilities Total VIE Liabilities Unconsolidated Redevelopment Investment Included in the Company’s preferred equity investments at March 31, 2023, is an unconsolidated development project which is a VIE for which the Company is not the primary beneficiary. This preferred equity investment was primarily established to develop real estate property for long-term investment and was deemed a VIE primarily based on the fact that the equity investment at risk was not sufficient to permit the entity to finance its activities without additional financial support. The initial equity contributed to this entity was not sufficient to fully finance the real estate construction as development costs are funded by the partners over the construction period. The Company determined that it was not the primary beneficiary of this VIE based on the fact that the Company has shared control of this entity along with the entity’s partners and therefore does not have a controlling financial interest. As of March 31, 2023, the Company’s investment in this VIE was $24.3 million, which is included in Other investments on the Company’s Condensed Consolidated Balance Sheets. The Company’s maximum exposure to loss as a result of its involvement with this VIE is estimated to be $34.3 million, which is the capital commitment obligation. The Company has not provided financial support to this VIE that it was not previously contractually required to provide. All future costs of development will be funded with capital contributions from the Company and the outside partner in accordance with their respective ownership percentages and construction loan financing. All financial instruments of the Company are reflected in the accompanying Condensed Consolidated Balance Sheets at amounts which, in management’s estimation, based upon an interpretation of available market information and valuation methodologies, reasonably approximate their fair values, except those listed below, for which fair values are disclosed. The valuation method used to estimate fair value for fixed-rate and variable-rate debt is based on discounted cash flow analyses, with assumptions that include credit spreads, market yield curves, trading activity, loan amounts and debt maturities. The fair values for marketable securities are based on published values, securities dealers’ estimated market values or comparable market sales. The fair value for embedded derivative liability is based on using the “with-and-without” method. Such fair value estimates are not necessarily indicative of the amounts that would be realized upon disposition. As a basis for considering market participant assumptions in fair value measurements, the FASB’s Fair Value Measurements and Disclosures guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The following are financial instruments for which the Company’s estimated fair value differs from the carrying value (in thousands): March 31, 2022 December 31, 2021 March 31, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Carrying Value Fair Value Notes payable, net (1) Mortgages payable, net (2) (1) The Company determined that the valuation of its senior unsecured notes were classified within Level 2 of the fair value (2) The Company determined that its valuation of its mortgages payable were classified within Level 3 of the fair value hierarchy. The Company has certain financial instruments that must be measured under the FASB’s Fair Value Measurements and Disclosures guidance, including available for sale In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level of the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The The tables below Balance at March 31, 2022 Level 1 Level 2 Level 3 Marketable equity securities Balance at March 31, 2023 Level 1 Level 2 Level 3 Assets: Marketable equity securities Liabilities: Embedded derivative liability Balance at December 31, 2021 Level 1 Level 2 Level 3 Marketable equity securities Balance at December 31, 2022 Level 1 Level 2 Level 3 Assets: Marketable equity securities Liabilities: Embedded derivative liability The Assets measured at fair value on a non-recurring basis at Balance at December 31, 2021 Level 1 Level 2 Level 3 Other investments Balance at March 31, 2023 Level 1 Level 2 Level 3 Real estate During the three months ended March 31, 2023, the Company recognized impairment charges related to adjustments to property carrying values of $11.8 million. The Company’s estimated fair values of these assets were primarily based upon estimated sales prices from In May 2020, the Company’s stockholders approved the 2020 Equity Participation Plan (the “2020 Plan”), which is a successor to the Restated Kimco Realty Corporation 2010 Equity Participation Plan (together with the 2020 Plan, the “Plans”) that expired in March 2020. The 2020 Plan provides for a maximum of 10,000,000 shares of the Company’s common stock to be reserved for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, stock payments and deferred stock awards. At March 31, The Company accounts for equity awards in accordance with FASB’s Compensation – Stock Compensation guidance, which requires that all share-based payments to employees, including grants of employee stock options, restricted stock and performance shares, be recognized in the Condensed Consolidated Statements of Income over the service period based on their fair values. Fair value of performance awards is determined using the Monte Carlo method which is intended to estimate the fair value of the awards at the grant date. Fair value of restricted shares is calculated based on the price on the date of grant. The Company recognized expenses associated with its equity awards of Preferred Stock The Company’s Board of Director’s authorized the repurchase of up to 894,000 depositary shares of Class L preferred stock and 1,048,000 depositary shares of Class M preferred stock, representing up to 1,942 shares of the Company’s preferred stock, par value $1.00 per share, through December 31, 2023. During the three months ended March 31, 2023, the Company repurchased the following preferred stock: Class of Preferred Stock Depositary Shares Repurchased Purchase Price (in thousands) Class L Class M The Company’s outstanding Preferred Stock is detailed As of March 31, 2022 and December 31, 2021 As of March 31, 2023 As of March 31, 2023 Class of Preferred Stock Shares Authorized Shares Issued and Outstanding Liquidation Preference (in thousands) Dividend Rate Annual Dividend per Depositary Share Par Value Optional Redemption Date Shares Authorized Shares Issued and Outstanding Liquidation Preference Dividend Rate Annual Dividend per Depositary Share Par Value Optional Redemption Date Class L 8/16/2022 8/16/2022 Class M 12/20/2022 12/20/2022 As of December 31, 2022 Class of Preferred Stock Shares Authorized Shares Issued and Outstanding Liquidation Preference Dividend Rate Annual Dividend per Depositary Share Par Value Optional Redemption Date Class L 8/16/2022 Class M 12/20/2022 Common Stock The Company has a share repurchase program, which is scheduled to expire February 29, 2024. Under this program, the Company may repurchase shares of its common stock, par value $0.01 per share, with an aggregate gross purchase price of up to $300.0 million. The Company did not repurchase any shares under the share repurchase program during the three months ended March 31, Dividends Declared The following table provides a summary of the dividends declared per share: Three Months Ended March 31, Three Months Ended March 31, 2022 2021 2023 2022 Common Shares Class L Depositary Shares Class M Depositary Shares The following schedule summarizes the non-cash investing and financing activities of the Company for the three months ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2022 2021 2023 2022 Acquisition of real estate interests from a lease modification Disposition of real estate interests through the issuance of mortgage receivables Deconsolidation of real estate interests through contribution to other investments Surrender of common stock Declaration of dividends paid in succeeding period Capital expenditures accrual Lease liabilities arising from obtaining operating right-of-use assets Allocation of fair value to noncontrolling interests Decrease in redeemable noncontrolling interests from redemption of units for common stock Purchase price fair value adjustment to prepaid rent Consolidation of Joint Ventures: Increase in real estate and other net assets Increase in mortgage payables The following table provides a reconciliation of cash, cash equivalents and restricted cash recorded on the Company’s Condensed Consolidated Balance Sheets to the Company’s Condensed Consolidated Statements of Cash Flows (in thousands): As of March 31, 2022 As of December 31, 2021 As of March 31, 2023 As of December 31, 2022 Cash and cash equivalents Restricted cash Total cash, cash equivalents and restricted cash Letters of Credit The Company has issued letters of credit in connection with the completion and repayment guarantees primarily on certain of the Company’s redevelopment projects and guaranty of payment related to the Company’s insurance program. At March 31, Funding Commitments The Company has Other The Parent Company guarantees the debt securities of Kimco OP. These guarantees by the Parent Company are full, irrevocable, unconditional and absolute joint and several guarantees to the holders of each series of such guaranteed debt securities. In connection with the construction of its development and redevelopment projects and related infrastructure, certain public agencies require posting of performance and surety bonds to guarantee that the Company’s obligations are satisfied. These bonds expire upon the completion of the improvements and infrastructure. As of March 31, The Company is subject to various other legal proceedings and claims that arise in the ordinary course of business. Management believes that the final outcome of such matters will not have a material adverse effect on the financial position, results of operations or liquidity of the Company taken as a whole as of March 31, The following table sets forth the reconciliation of earnings and the weighted-average number of shares used in the calculation of basic and diluted earnings per share (amounts presented in thousands except per share data): Three Months Ended March 31, 2022 2021 Computation of Basic and Diluted Earnings Per Share: Net income available to the Company's common shareholders Earnings attributable to participating securities Net income available to the Company’s common shareholders for basic earnings per share Distributions on convertible units Net income available to the Company’s common shareholders for diluted earnings per share Weighted average common shares outstanding – basic Effect of dilutive securities (1): Equity awards Assumed conversion of convertible units Weighted average common shares outstanding – diluted Net income available to the Company's common shareholders: Basic earnings per share Diluted earnings per share Three Months Ended March 31, 2023 2022 Computation of Basic and Diluted Earnings Per Share: Net income available to the Company’s common shareholders Earnings attributable to participating securities Net income available to the Company’s common shareholders for basic earnings per share Distributions on convertible units Net income available to the Company’s common shareholders for diluted earnings per share Weighted average common shares outstanding – basic Effect of dilutive securities (1): Equity awards Assumed conversion of convertible units Weighted average common shares outstanding – diluted Net income available to the Company's common shareholders: Basic earnings per share Diluted earnings per share (1) The effect of the assumed conversion of certain convertible units had an anti-dilutive effect upon the calculation of Net income available to the Company’s common shareholders per share. Accordingly, the impact of such conversions has not been included in the determination of diluted earnings per share calculations. The Item 2. Forward-Looking Statements This Quarterly Report on Form 10-Q, together with other statements and information publicly disseminated by The following discussion should be read in conjunction with the accompanying Condensed Consolidated Financial Statements and Notes thereto. These unaudited financial statements include all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature. Executive Overview Kimco Realty Corporation is a REIT, of which substantially all of the Company’s assets are held by, and substantially all of the Company’s operations are conducted through, Kimco OP, either directly or through its subsidiaries, as the Company’s operating company. The Company is the sole managing member and exercises exclusive control over Kimco OP. As of March 31, 2023, the Parent Company owned 100% of the outstanding limited liability company interests (the “OP Units”) in Kimco OP. The Company, a Maryland corporation, is North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers The Company is a self-administered real estate investment trust (“REIT”) and has owned and operated open-air shopping centers for over 60 years. The Company has not engaged, nor does it expect to retain, any REIT advisors in connection with the operation of its properties. As of March 31, The Company’s primary business objective is to be the premier owner and operator of open-air, grocery-anchored shopping centers, ● increasing the value of its existing portfolio of properties and generating higher levels of portfolio growth; ● increasing cash flows for reinvestment and/or for distribution to shareholders while maintaining conservative payout ratios; ● improving debt metrics and upgraded unsecured debt ratings ● continuing growth in desirable demographic areas with successful retailers, primarily focused on grocery anchors; and ● increasing the number of entitlements for residential use. The Any of these events could materially adversely impact the Company’s business, financial condition, results of operations or stock price. The Company continues to monitor Effects of Inflation Many of the Company’s long-term leases contain provisions designed to help mitigate the adverse impact of inflation. Such provisions include clauses enabling the Company Results of Operations Comparison of the three months ended March 31, The following table presents the comparative results from the Company’s Condensed Consolidated Statements of Income for the three months ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2022 2021 Change 2023 2022 Change Revenues Revenues from rental properties, net Management and other fee income Operating expenses Rent (1) Real estate taxes Operating and maintenance (2) General and administrative (3) Impairment charges Depreciation and amortization Gain on sale of properties Other income/(expense) Special dividend income Other income, net Gain on marketable securities, net (Loss)/gain on marketable securities, net Interest expense Early extinguishment of debt charges Benefit/(provision) for income taxes, net (Provision)/benefit for income taxes, net Equity in income of joint ventures, net Equity in income of other investments, net Net loss/(income) attributable to noncontrolling interests Preferred dividends Net (income)/loss attributable to noncontrolling interests Preferred dividends, net Net income available to the Company's common shareholders Net income available to the Company's common shareholders: Diluted per common share (1) Rent expense primarily relates to ground lease payments for which the Company is the lessee. (2) Operating and maintenance expense consists of property related costs including repairs and maintenance costs, roof repair, landscaping, parking lot repair, snow removal, utilities, property insurance costs, security and various other property related expenses. (3) General and administrative expense includes employee-related expenses (including salaries, bonuses, equity awards, benefits, severance costs and payroll taxes), professional fees, office rent, travel and entertainment costs and other company-specific expenses. Net income available to the Company’s common shareholders was The following describes the changes of certain line items included on the Company’s Condensed Consolidated Statements of Income that the Company believes changed significantly and affected Net income available to the Revenues from rental properties, net – The increase in Revenues from rental properties, net of Real estate taxes – The increase in Real estate taxes of Operating and maintenance – The increase in Operating and maintenance expense of General and administrative – The increase in General and administrative expense of Impairment charges – During the three months ended March 31, 2023 and 2022, the Company recognized impairment charges related to adjustments to property carrying values of $11.8 million and $0.3 million, respectively, for which the Company’s estimated fair values were primarily based upon signed contracts or letters of intent from third party offers. These adjustments to property carrying values were recognized in connection with the Depreciation and amortization – The Gain on sale of properties – During the three months ended March 31, 2023, the Company disposed of three operating properties and three land parcels, in separate transactions, for an aggregate sales price of $117.6 million, which resulted in aggregate gains of $39.2 million. During the three months ended March 31, 2022, the Company disposed of four land parcels, in separate transactions, for an aggregate sales price of $8.7 million, which resulted in aggregate gains of $4.2 million. Special dividend income – During the three months ended March 31, The Interest expense – The increase in Interest expense of Early extinguishment of debt charges – The Equity in income of The decrease in Equity in income of other investments, net of $3.3 million Net The change in Net Tenant Concentration The Company seeks to reduce its operating and leasing risks through diversification achieved by the geographic distribution of its properties and a large tenant base. As of March 31, Liquidity and Capital Resources The Company’s capital resources include accessing the public debt and equity capital markets, unsecured term loans, mortgages and construction loan financing, marketable securities (including 21.2 million shares of ACI common stock held by the Company, which had a value of $440.8 million at March 31, 2023) and immediate access to The Company anticipates that cash on hand, net cash flow provided by operating activities, borrowings under its Credit Facility and the issuance of equity, public debt, as well as other debt and equity alternatives, and the sale of marketable equity securities, will provide the necessary capital required by the Company. The Company will continue to evaluate its capital requirements for both its short-term and long-term liquidity needs, which could be affected by various risks and uncertainties, including, but not limited to, the effects of the The Company’s cash flow activities are summarized as follows (in thousands): Three Months Ended March 31, Three Months Ended March31, 2022 2021 2023 2022 Cash, cash equivalents and restricted cash, beginning of the period Net cash flow provided by operating activities Net cash flow used for investing activities Net cash flow provided by/(used for) investing activities Net cash flow used for financing activities Net change in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, end of the period Operating Activities Net cash flow provided by operating activities for the three months ended March 31, ● ● additional operating cash flow generated by operating properties acquired during ● new leasing, expansion and re-tenanting of core portfolio properties; ● changes in assets and liabilities due to timing of receipts and payments; ● a decrease in distributions from the Company’s joint ventures programs; and ● the disposition of operating properties in Investing Activities Net cash flow Investing activities during the three months ended March 31, 2023 primarily consisted of: Cash inflows: ● $138.3 million in proceeds from sale of marketable securities, primarily due to the sale of 7.1 million shares of ACI; ● $71.0 million in proceeds from the sale of three operating properties and three land parcels; and ● $5.6 million in reimbursements of investments in and advances to real estate joint ventures and other investments, primarily due to the sale of properties within these portfolios. Cash outflows: ● $98.5 million for the acquisition/consolidation of three operating properties and two parcels; ● $40.2 million for improvements to operating real estate primarily related to re-tenanting, tenant improvements and the Company’s active redevelopment pipeline; ● $19.2 million for investments in and advances to real estate joint ventures and investments in other investments, primarily related to redevelopment projects within these portfolios and a partial paydown of debt within one of the Company’s joint venture investments. ● $11.2 million for investment in other financing receivable related to one new mortgage receivable; and ● $2.2 million for investment in marketable securities. Investing activities during the three months ended March 31, 2022 primarily consisted of: Cash inflows: ● $33.0 million in reimbursements of investments in and advances to real estate joint ventures and other investments; and ● $8.4 million in proceeds from the sale of four land parcels. Cash outflows: ● $29.4 million for improvements to operating real estate primarily related to tenant improvements and the Company’s active redevelopment pipeline; ● $21.6 million for investments in and advances to real estate joint ventures, primarily related to a redevelopment project within the Company’s joint venture portfolio and partner buyouts, and investments in other investments, primarily related to funding commitments for certain investments; ● $18.7 million for the acquisition of two parcels; ● $3.0 million for investment in other financing receivable; and ● $3.0 million for investment in cost method investment. Acquisition of Operating Real Estate – During the three months ended March 31, Improvements to Operating Real Estate – During the three months ended March 31, Three Months Ended March 31, Three Months Ended March 31, 2022 2021 2023 2022 Redevelopment and renovations Tenant improvements and tenant allowances Total improvements The Company has an ongoing program to redevelop and re-tenant its properties to maintain or enhance its competitive position in the marketplace. The Company is actively pursuing redevelopment opportunities within its operating portfolio which it believes will increase the overall value by bringing in new tenants and improving the assets’ value. The Company anticipates its capital commitment toward these redevelopment projects and re-tenanting efforts for the remainder of Financing Activities Net cash flow used for financing activities was Financing activities during the three months ended March 31, 2023 primarily consisted of: Cash inflows: ● $3.7 million in proceeds from issuance of stock. Cash outflows: ● $148.9 million of dividends paid; ● $40.0 million in principal payment on debt, including normal amortization of rental property debt; ● $16.1 million in shares repurchased for employee tax withholding on equity awards; ● $6.0 million in financing origination costs, in connection with the Company’s Credit Facility; and ● $2.6 million in redemption/distribution of noncontrolling interests. Financing activities during the three months ended March 31, 2022 primarily consisted of: Cash inflows: ● $600.0 million in proceeds from issuance of 3.20% senior unsecured notes due in 2032; and ● $19.0 million in proceeds from mortgage loan financing. Cash outflows: ● $500.0 million for repayment of its 3.40% senior unsecured notes; ● $123.8 million of dividends paid; ● $88.3 million in principal payment on debt, including normal amortization of rental property debt; ● $13.4 million in shares repurchased for employee tax withholding on equity awards; ● $10.2 million in financing origination costs, in connection with the Company’s issuance of $600.0 million 3.20% senior unsecured notes; ● $6.5 million for payment of early extinguishment of debt charges; and ● $4.7 million in redemption/distribution of noncontrolling interests. The Company continually evaluates its debt maturities, and, based on management’s current assessment, believes it has viable financing and refinancing alternatives that will not materially adversely impact its expected financial results. As of March 31, 2023, the Company had consolidated floating rate debt totaling $18.2 million, excluding deferred financing costs of $0.1 million. The Company continues to pursue borrowing opportunities with large commercial U.S. and global banks, select life insurance companies and certain regional and local banks. Debt maturities for The Company intends to maintain strong debt service coverage and fixed charge coverage ratios as part of its commitment to maintain or improve its unsecured debt ratings. The Company may, from time to time, seek to obtain funds through additional common and preferred equity offerings, unsecured debt financings and/or mortgage/construction loan financings and other capital alternatives. Since the completion of the Company’s IPO in 1991, the Company has utilized the public debt and equity markets as its principal source of capital for its expansion needs. Since the IPO, the Company has completed additional offerings of its public unsecured debt and equity, raising in the aggregate over During During January 2023, the Company filed a registration statement on Form S-8 for its 2020 Equity Participation Plan (the “2020 Plan”), which was previously approved by the Company’s stockholders and is a successor to the Restated Kimco Realty Corporation 2010 Equity Participation Plan that expired in March 2020. The 2020 Plan provides for a maximum of 10,000,000 shares of the Company’s common stock to be reserved for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, stock payments and deferred stock awards. At March 31, 2023, the Company had 4.9 million shares of common stock available for issuance under the 2020 Plan Preferred Stock – The Company’s Board of Director’s authorized the repurchase of up to 894,000 depositary shares of Class L preferred stock and 1,048,000 depositary shares of Class M preferred stock representing up to 1,942 shares the Company’s preferred stock, par value $1.00 per share, through December 31, 2023. During the three months ended March 31, 2023, the Company repurchased the following preferred stock: Class of Preferred Stock Depositary Shares Repurchased Purchase Price (in thousands) Class L Class M Common Stock – The Company has a common share repurchase program, which is scheduled to expire on February 29, 2024. Under this program, the Company may repurchase shares of its common stock, par value $0.01 per share, with an aggregate gross purchase price of up to $300.0 million. The Company did not repurchase any shares under the common share repurchase program during the three months ended March 31, Senior Unsecured Notes – Covenant Must Be As of March 31, Consolidated Indebtedness to Total Assets <60% Consolidated Secured Indebtedness to Total Assets <40% Consolidated Income Available for Debt Service to Maximum Annual Service Charge >1.50x Unencumbered Total Asset Value to Consolidated Unsecured Indebtedness >1.50x For a full description of the various indenture covenants refer to the Indenture dated September 1, 1993; the First Supplemental Indenture dated August 4, 1994; the Second Supplemental Indenture dated April 7, 1995; the Third Supplemental Indenture dated June 2, 2006; the Fourth Supplemental Indenture dated April 26, 2007; the Fifth Supplemental Indenture dated as of September 24, 2009; the Sixth Supplemental Indenture dated as of May 23, 2013; Credit Facility – In February Pursuant to the terms of the Credit Facility, the Company, among other things, is subject to maintenance of various covenants. The Company is currently in compliance with these covenants. The financial covenants for the Credit Facility are as follows: Covenant Must Be As of March 31, Total Indebtedness to Gross Asset Value (“GAV”) <60% Total Priority Indebtedness to GAV <35% Unencumbered Asset Net Operating Income to Total Unsecured Interest Expense >1.75x Fixed Charge Total Adjusted EBITDA to Total Debt Service >1.50x Mortgages Payable – During the three months ended March 31, In addition to the public equity and debt markets as capital sources, the Company may, from time to time, obtain mortgage financing on selected properties to partially fund the capital needs of its real estate re-development and re-tenanting projects. As of March 31, Other – During the three months ended March 31, 2023, the Company received $194.1 million representing its share of the ACI special dividend payment and recognized this as Special dividend income on the Company’s Condensed Consolidated Statements of Income. As a result, the Company anticipates it may need to make a special dividend payment to maintain its compliance with REIT distribution requirements. The payment of this special dividend may be in the form of cash, common stock or some combination thereof. The Company’s determination regarding any such special dividend and the form thereof will be announced during the year end December 31, 2023. Also during the three months ended March 31, 2023, the Company sold 7.1 million shares of ACI held by the Company, generating net proceeds of $137.4 million. For tax purposes, the Company recognized a long-term capital gain of $115.4 million. The Company anticipates retaining the proceeds from this stock sale for general corporate purposes and will pay federal and state taxes of $30.0 million on the taxable gain. As of March 31, 2023, the Company holds 21.2 million shares of ACI, which had a value of $440.8 million. In addition, in April 2023, the Company sold 7.0 million shares of ACI held by the Company, generating net proceeds of $144.9 million. For tax purposes, the Company will recognize a long-term capital gain of $125.9 million during the three months ended June 30, 2023. The Company anticipates retaining the proceeds from this stock sale for general corporate purposes and will pay estimated corporate taxes of $32.7 million on the taxable gain. The Parent Company guarantees the debt securities of Kimco OP. These guarantees by the Parent Company are full, irrevocable, unconditional and absolute joint and several guarantees to the holders of each series of such guaranteed debt securities. The Company has issued letters of credit in connection with completion and repayment guarantees, primarily on certain of the Company’s redevelopment projects and guaranty of payment related to the Company’s insurance program. At March 31, 2023, these letters of credit aggregated $39.8 million. The Company has an investment with a funding commitment of $64.7 million, of which $41.7 million has been funded as of March 31, 2023. In connection with the construction of its development and redevelopment projects and related infrastructure, certain public agencies require posting of performance and surety bonds to guarantee that the Company’s obligations are satisfied. These bonds expire upon the completion of the improvements and infrastructure. As of March 31, The Company Dividends – In connection with its intention to continue to qualify as a REIT for U.S. federal income tax purposes, the Company expects to continue paying regular dividends to its stockholders. These dividends will be paid from operating cash flows. The Company’s Board of Directors will continue to evaluate the Company’s dividend policy on a quarterly basis as Although the Company receives substantially all of its rental payments on a monthly basis, it generally intends to continue paying dividends quarterly. Amounts accumulated in advance of each quarterly distribution will be invested by the Company in short-term money market or other suitable On April Funds From Operations Funds From Operations (“FFO”) is a supplemental non-GAAP financial measure utilized to evaluate the operating performance of real estate companies. NAREIT defines FFO as net income/(loss) available to the Company’s common shareholders computed in accordance with generally accepted accounting principles in the United States (“GAAP”), excluding (i) depreciation and amortization related to real estate, (ii) gains or losses from sales of certain real estate assets, (iii) gains and losses from change in control, (iv) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and (v) after adjustments for unconsolidated partnerships and joint ventures calculated to reflect FFO on the same basis. The Company also made an election, per the NAREIT Funds From Operations White Paper-2018 Restatement, to exclude from its calculation of FFO (i) gains and losses on the sale of assets and impairments of assets incidental to its main business and (ii) mark-to-market changes in the value of its equity securities. As such, the Company does not include gains/impairments on land parcels, mark-to-market gains/losses The Company presents FFO available to the Company’s common shareholders as it considers it an important supplemental measure of our operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO available to the Company’s common shareholders when reporting results. Comparison of our presentation of FFO available to the Company’s common shareholders to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by such REITs. FFO is a supplemental non-GAAP financial measure of real estate companies’ operating performances, which does not represent cash generated from operating activities in accordance with GAAP, and therefore, should not be considered an alternative for net income or cash flows from operations as a measure of liquidity. The Company’s reconciliation of Net income available to the Company’s common shareholders to FFO available to the Company’s common shareholders is reflected in the table below (in thousands, except per share data). Three Months Ended March 31, Three Months Ended March 31, 2022 2021 2023 2022 Net income available to the Company’s common shareholders Gain on sale of properties Gain on sale of joint venture properties Depreciation and amortization - real estate related Depreciation and amortization - real estate joint ventures Impairment charges Impairment charges (including real estate joint ventures) Profit participation from other investments, net Gain on marketable securities, net (Benefit)/provision for income taxes (1) Special dividend income Loss/(gain) on marketable securities, net Provision/(benefit) for income taxes, net (1) Noncontrolling interests (1) FFO available to the Company’s common shareholders (3) Weighted average shares outstanding for FFO calculations: Basic Units Dilutive effect of equity awards Diluted (2) FFO per common share – basic FFO per common share – diluted (2) (1) Related to gains, impairments, (2) Reflects the potential impact if certain units were converted to common stock at the beginning of the period, which would have a dilutive effect on FFO available to the Company’s common shareholders. FFO available to the Company’s common shareholders would be increased by (3) Includes Early extinguishment of debt charges of $7.2 million recognized during the three months ended March 31, 2022. Same Property Net Operating Income (“Same property NOI”) Same property NOI is a supplemental non-GAAP financial measure of real estate companies’ operating performance and should not be considered an alternative to net income in accordance with GAAP or cash flows from operations as a measure of liquidity. The Company considers Same property NOI as an important operating performance measure because it is frequently used by securities analysts and investors to measure only the net operating income of properties that have been owned by the Company for the entire current and prior year reporting periods. It excludes properties under redevelopment, development and pending stabilization; properties are deemed stabilized at the earlier of (i) reaching 90% leased or (ii) one year following a project’s inclusion in operating real estate. Same property NOI assists in eliminating disparities in net income due to the development, acquisition or disposition of properties during the particular period presented, and thus provides a more consistent performance measure for the comparison of the Company's properties. Same property NOI is calculated using revenues from rental properties (excluding straight-line rent adjustments, lease termination fees, TIFs and amortization of above/below market rents) less charges for The following is a reconciliation of Three Months Ended March 31, 2022 2021 Net income available to the Company’s common shareholders Adjustments: Management and other fee income General and administrative Impairment charges Depreciation and amortization Gain on sale of properties Interest and other expense, net Gain on marketable securities, net (Benefit)/provision for income taxes, net Equity in income of other investments, net Net (loss)/income attributable to noncontrolling interests Preferred dividends Weingarten same property NOI (1) Non same property net operating income Non-operational expense from joint ventures, net Same property NOI Three Months Ended March 31, 2023 2022 Net income available to the Company’s common shareholders Adjustments: Management and other fee income General and administrative Impairment charges Depreciation and amortization Gain on sale of properties Interest and other expense, net Loss/(gain) on marketable securities, net Provision/(benefit) for income taxes, net Equity in income of other investments, net Net income/(loss) attributable to noncontrolling interests Preferred dividends, net Non same property net operating income Non-operational expense from joint ventures, net Same property NOI Same property NOI increased by Leasing Activity During the three months ended March 31, Tenant Lease Expirations At March 31, Year Ending December 31, Number of Leases Expiring Square Feet Expiring Total Annual Base Rent Expiring % of Gross Annual Rent Number of Leases Expiring Square Feet Expiring Total Annual Base Rent Expiring % of Gross Annual Rent (1) % % 2022 % 2023 % % 2024 % % 2025 % % 2026 % % 2027 % % 2028 % % 2029 % % 2030 % % 2031 % % 2032 % % 2033 % (1) Leases currently under month-to-month lease or in process of renewal. Item 3. Quantitative and Qualitative Disclosures About Market Risk. The Company’s primary market risk exposure is interest rate risk. The Company periodically evaluates its exposure to short-term interest rates and will, from time-to-time, enter into interest rate protection agreements which mitigate, but do not eliminate, the effect of changes in interest rates on its floating-rate debt. The Company has not entered, and does not plan to enter, into any derivative financial instruments for trading or speculative purposes. The following table presents the Company’s aggregate fixed rate and variable rate debt obligations outstanding, including fair market value adjustments and unamortized deferred financing costs, as of March 31, 2022 2023 2024 2025 2026 Thereafter Total Fair Value 2023 2024 2025 2026 2027 Thereafter Total Fair Value Secured Debt Fixed Rate Average Interest Rate % % % % % % % % % % % % Variable Rate Average Interest Rate % % % % Unsecured Debt Fixed Rate Average Interest Rate % % % % % % % % % % % % Based on the Company’s variable-rate debt balances, interest expense would have increased by Item 4. Controls and Procedures. Controls and Procedures (Kimco Realty Corporation) The Parent Company’s management, with the participation of the Parent Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Parent Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the Parent Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Parent Company’s disclosure controls and procedures are effective. There have not been any changes in the Parent Company’s internal control over financial reporting during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. Controls and Procedures (Kimco Realty OP, LLC) Kimco OP’s management, with the participation of the Kimco OP’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of Kimco OP’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on such evaluation, Kimco OP’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, Kimco OP’s disclosure controls and procedures are effective. There have not been any changes in Kimco OP’s internal control over financial reporting during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, Kimco OP’s internal control over financial reporting. OTHER INFORMATION The Company is not presently involved in any litigation nor, to its knowledge, is any litigation threatened against the Company or its subsidiaries that, in management's opinion, would result in any material adverse effect on the Company's ownership, management or operation of its properties taken as a whole, or which is not covered by the Company's There are no material changes to our risk factors as previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. Issuer Purchases of Equity Securities The Company’s Board of Directors authorized the repurchase of up to 894,000 depositary shares of Class L preferred stock and 1,048,000 depositary shares of Class M preferred stock representing up to an aggregate of 1,942 shares of the Company’s preferred stock, par value $1.00 per share, through December 31, 2023. During the three months ended March 31, Period Total Number of Depositary Shares Purchased Average Price Paid per Depositary Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) January 1, 2023 – January 31, 2023 February 1, 2023 – February 28, 2023 March 1, 2023 – March 31, 2023 Total During the three months ended March 31, 2023, the Company Period Total Number of Depositary Shares Purchased Average Price Paid per Depositary Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) January 1, 2023 – January 31, 2023 February 1, 2023 – February 28, 2023 March 1, 2023 – March 31, 2023 Total The Company has a common share repurchase program, which is scheduled to expire on February 29, 2024. Under this program, the Company may repurchase shares of its common stock, par value $0.01 per share, with an aggregate gross purchase price of up to $300.0 million. The Company did not repurchase any shares under the common share repurchase program during the three months ended March 31, Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) January 1, 2022 – January 31, 2022 February 1, 2022 – February 28, 2022 March 1, 2022 – March 31, 2022 Total During the three months ended March 31, 2023, the Company repurchased 750,717 shares of the Company’s common stock for an aggregate purchase price of $16.1 million (weighted average price of $21.43 per share) in connection with common shares surrendered or deemed surrendered to the Company to satisfy statutory minimum tax withholding obligations in connection with equity-based compensation plans. Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) January 1, 2023 – January 31, 2023 February 1, 2023 – February 28, 2023 March 1, 2023 – March 31, 2023 Total Item 3. Defaults Upon Senior Securities. None. Item 4. Mine Safety Disclosures. Not applicable. None. Exhibits – 4.1 Agreement to File Instruments Kimco Realty Corporation (the “Registrant”) hereby agrees to file with the Securities and Exchange Commission, upon request of the Commission, all instruments defining the rights of holders of long-term debt of the Registrant and its consolidated subsidiaries, and for any of its unconsolidated subsidiaries for which financial statements are required to be filed, and for which the total amount of securities authorized thereunder does not exceed 10 percent of the total assets of the Registrant and its subsidiaries on a consolidated basis. * Furnished herewith. Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. KIMCO REALTY CORPORATION April /s/ Conor C. Flynn (Date) Conor C. Flynn Chief Executive Officer April /s/ Glenn G. Cohen (Date) Glenn G. Cohen Chief Financial Officer SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. KIMCO REALTY OP, LLC BY: KIMCO REALTY CORPORATION, managing member April 28, 2023 /s/ Conor C. Flynn (Date) Conor C. Flynn Chief Executive Officer April 28, 2023 /s/ Glenn G. Cohen (Date) Glenn G. Cohen Chief Financial Officer* Representing 117 property interests and 24.0 million square feet of GLA, as of March 31, 2022, and 120 property interests and 24.7 million square feet of GLA, as of December 31, 2021.20222023 and 20212022 (in millions): $ 2.4 $ 2.6 $ 9.8 $ 2.4 13.4 8.7 9.3 13.4 3.1 2.1 2.7 3.1 1.5 0 0.7 1.5 3.2 4.4 1.7 3.2 $ 23.6 $ 17.8 $ 24.2 $ 23.6 3three properties, in separate transactions, for an aggregate sales price of $81.5 million. These transactions resulted in an aggregate net gain to the Company of $2.6 million for the three months ended March 31, 2022.During the three months ended March 31, 2021, certain of the Company’s real estate joint ventures disposed of 2 properties, in separate transactions, for an aggregate sales price of $53.7 million. These transactions resulted in an aggregate net gain to the Company of $4.2 million for the three months ended March 31, 2021.1020222023 and December 31, 20212022 (dollars in millions): $ 416.0 2.30 % 43.0 $ 426.9 2.02 % 45.6 $ 342.3 5.61 % 30.6 $ 380.1 5.20 % 33.1 468.7 2.74 % 25.1 492.6 2.55 % 27.9 273.0 5.82 % 48.2 297.9 5.46 % 47.2 83.9 2.20 % 52.1 84.2 1.85 % 55.0 82.8 5.70 % 40.1 83.1 6.14 % 43.0 233.0 2.00 % 56.7 232.9 1.65 % 59.7 233.6 5.76 % 44.7 233.5 4.30 % 47.7 401.5 3.63 % 80.1 402.1 3.58 % 83.0 376.7 4.34 % 68.0 388.8 4.10 % 71.8 $ 1,603.1 $ 1,638.7 $ 1,308.4 $ 1,383.4 Program.program. The Company’s maximum exposure to losses associated with its preferred equity investments is primarily limited to its net investment. As of March 31, 2022,2023, the Company’s net investment under the Preferred Equity Programprogram was $74.2 million relating to 21 properties.$94.1 million. During the three months ended March 31, 20222023 and 2021,2022, the Company recognized net income of $5.9$2.4 million and $3.2$5.9 million from its preferred equity investments, respectively. These amounts are included in Equity in income of other investments, net on the Company’s Condensed Consolidated Statements of Income.TheDuring 2023, the Company has ancontributed a land parcel and related entitlements, located in Admore, PA, into a preferred equity investment with a funding commitmentgross value of $25.0 million, of which $9.4 million$19.6 million. As a result, the Company no longer consolidates this land parcel and has been funded asa non-controlling interest in this investment. As of March 31, 2022.2023, the Company’s investment was $24.3 million.20222023 and December 31, 2021,2022, are as follows (in thousands): $ 115,529 $ 114,159 $ 70,290 $ 87,411 1,219,344 1,097,580 381,293 510,321 $ 1,334,873 $ 1,211,739 $ 451,583 $ 597,732 20222023 and 2021,2022, the Company recognized net unrealized losses on marketable securities of $10.1 million and net unrealized gains on marketable securities of $121.8 million, and $61.1 million, respectively. These net unrealized gains and losses are included in Gain(Loss)/gain on marketable securities, net on the Company’s Condensed Consolidated Statements of Income.20222023 and December 31, 2021,2022, are as follows (in thousands): $ 34,393 $ 20,970 $ 39,736 $ 33,801 33,223 55,283 40,862 56,001 3,671 5,029 1,401 1,905 14,553 14,421 16,833 15,725 9,066 8,361 165,567 157,670 197,445 189,737 $ 253,687 $ 254,677 $ 303,063 $ 304,226 1120222023 and 2021,2022, is as follows (in thousands): $ 331,998 $ 213,005 $ 348,338 $ 331,998 83,447 60,312 90,071 83,447 4,297 5,702 2,989 4,297 2,912 (148 ) (3,060 ) 2,912 $ 422,654 $ 278,871 $ 438,338 $ 422,654 amounts primarily due to the COVID-19 pandemic.amounts.6462.8 years, some of which include options to extend the terms for up to an additional 75 years.20222023 were as follows: 25.6 1.8 24.6 0.8 6.62 % 4.44 % 6.62 % 4.44 % 20222023 and 2021,2022, were as follows (in thousands): $ 327 $ 0 $ 319 $ 327 2,983 2,830 3,701 2,983 1,407 683 561 1,407 $ 4,717 $ 3,513 $ 4,581 $ 4,717 $ 11.2 14.00 % $ 25.0 8.00 % TheIn February 2023, the Company hasobtained a new $2.0 billion unsecured revolving credit facility (the “Credit Facility”) with a group of banks, which replaced the Company’s existing $2.0 billion unsecured revolving credit facility which was scheduled to mature in March 2024. The Credit Facility is scheduled to expire in March 2024,2027 with two additional six-month options to extend the maturity date, at the Company’s discretion, to March 2025.2028. The Credit Facility is guaranteed by the Parent Company. The Credit Facility could be increased to $2.75 billion through an accordion feature. The Credit Facility is a green credit facility tied to sustainability metric targets, as described in the agreement. The Company achieved such targets, which effectively reduced the rate on the Credit Facility by one basis point. The Credit Facility, which accrues interest at a rate of LIBORAdjusted Term SOFR, as defined in the terms of the Credit Facility, plus 76.577.5 basis points (1.22%and fluctuates in accordance with the Company’s credit ratings. The interest rate can be further adjusted upward or downward by four basis points (as of March 31, 2023, a two-basis point reduction was achieved) based on the sustainability metric targets, as defined in the agreement (5.66% as of March 31, 2022),2023). can be increased to $2.75 billion through an accordion feature. Pursuant to the terms of the Credit Facility, the Company among other things, iscontinues to be subject to the same covenants requiringunder the maintenanceCompany's prior unsecured revolving credit facility. For a full description of (i) maximum indebtedness ratiosthe Credit Facility’s covenants refer to the Amended and (ii) minimum interest and fixed charge coverage ratios. Restated Credit Agreement dated as of February 23, 2023, filed as Exhibit 10.20 in our Annual Report on Form 10-K for the year ended December 31, 2022. As of March 31, 2022,2023, the Credit Facility had 0no outstanding balance, no appropriations for letters of credit of $1.9 million and the Company was in compliance with its covenants.1219In February 2022, the Company issued $600.0 million of senior unsecured notes, which are scheduled to mature in April 2032 and accrue interest at a rate of 3.20% per annum. Proceeds from this issuance were used for general corporate purposes, including the early redemption of the Company’s $500.0 million 3.40% senior unsecured notes, which were scheduled to mature in November 2022. As a result of this redemption, the Company incurred a prepayment charge of $6.5 million and $0.7 million in write-off of deferred financing costs during the three months ended March 31, 2022.2022,2023, the Company (i) obtained a $19.0 million mortgage relating to a consolidated joint venture operating property and (ii) repaid $85.9assumed $37.2 million of individual non-recourse mortgage debt (including fair market value adjustmentthrough the acquisition of $0.2 million) that encumbered 4two operating properties.properties, which it subsequently repaid in March 2023.10.11. Noncontrolling InterestsStockholdersStockholders’ equity on the Company’s Condensed Consolidated Balance Sheets.20222023 and 20212022 (in thousands): $ 13,480 $ 15,784 $ 92,933 $ 13,480 0 2,068 333 169 1,546 333 (333 ) (169 ) (1,546 ) (333 ) $ 13,480 $ 17,852 $ 92,933 $ 13,480 11.12. Variable Interest Entities (“VIE”)consolidated operating properties at March 31, 20222023 and December 31, 20212022 are 33 and 3432 consolidated entities, respectively, that are VIEs for which the Company is the primary beneficiary. These entities have been established to own and operate real estate property. The Company’s involvement with these entities is through its majority ownership and management of the properties. The entities were deemed VIEs primarily because the unrelated investors do not have substantive kick-out rights to remove the general or managing partner by a vote of a simple majority or less, and they do not have substantive participating rights. The Company determined that it was the primary beneficiary of these VIEs as a result of its controlling financial interest. At March 31, 2023, total assets of these VIEs were $1.8 billion and total liabilities were $199.0 million. At December 31, 2022, total assets of these VIEs were $1.6$1.8 billion and total liabilities were $152.0 million. At December 31, 2021, total assets of these VIEs were $1.6 billion and total liabilities were $153.9$199.1 million.1320 29 30 29 29 4 4 3 3 33 34 32 32 $ 220.7 $ 222.9 $ 421.2 $ 425.5 3.1 2.0 8.7 7.9 2.2 2.0 2.9 1.7 1.7 1.0 2.3 1.5 $ 227.7 $ 227.9 $ 435.1 $ 436.6 $ 79.7 $ 78.9 $ 109.7 $ 109.7 10.0 11.8 11.4 10.9 6.7 6.7 5.2 5.2 55.6 56.5 72.7 73.3 $ 152.0 $ 153.9 $ 199.0 $ 199.1 12.13. Fair Value Measurements $ 7,110,804 $ 6,875,691 $ 7,027,050 $ 7,330,723 $ 6,778,050 $ 5,870,915 $ 6,780,969 $ 5,837,401 $ 378,644 $ 361,700 $ 448,652 $ 449,758 $ 374,285 $ 316,139 $ 376,917 $ 311,659 hierarchy and its Credit Facility was classified within Level 3 of the fair value hierarchy. The estimated fair value amounts classified as Level 2 as of March 31, 20222023 and December 31, 2021,2022, were $6.9$5.9 billion and $7.3$5.8 billion, respectively. securities.securities and embedded derivative liabilities. The Company currently does not have non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis.tableCompany’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.presentspresent the Company’s financial assets and liabilities measured at fair value on a recurring basis at March 31, 20222023 and December 31, 2021,2022, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands): $ 1,334,873 $ 1,334,873 $ 0 $ 0 $ 451,583 $ 451,583 $ - $ - $ 56,000 $ - $ - $ 56,000 14 $ 1,211,739 $ 1,211,739 $ 0 $ 0 $ 597,732 $ 597,732 $ - $ - $ 56,000 $ - $ - $ 56,000 table below presentssignificant unobservable input (Level 3 inputs) used in measuring the Company’s assetsembedded derivative liability, which is categorized with Level 3 of the fair value hierarchy as of March 31, 2023, is the discount rate of 8.00%.DecemberMarch 31, 2021 (2023 inare as follows (in thousands): $ 9,834 $ 0 $ 0 $ 9,834 $ 15,479 $ - $ - $ 15,479 signed contracts or letters of intent from third-party offers, which were less than the carrying value of the assets. The Company does not have access to the unobservable inputs used to determine the estimated fair values of third-party offers. Based on these inputs, the Company determined that its valuation of these investments was classified within Level 3 of the fair value hierarchy.13.14. Incentive Plans2022,2023, the Company had 6.84.9 million shares of common stock available for issuance under the 2020 Plan.$7.5$9.3 million and $6.5$7.5 million for the three months ended March 31, 20222023 and 2021,2022, respectively. As of March 31, 2022,2023, the Company had $62.8$75.4 million of total unrecognized compensation cost related to unvested stock compensation granted under the Plans. That cost is expected to be recognized over a weighted-average period of approximately 3.2 years.14.15. Stockholders’ Equity 5,540 $ 111.0 7,741 $ 157.0 below:below (in thousands, except share data and par values): 10,350 9,000 $ 225,000 5.125 % $ 1.28125 $ 1.00 10,350 8,940 $ 223,499 5.125 % $ 1.28125 $ 1.00 10,580 10,580 264,500 5.250 % $ 1.31250 $ 1.00 10,580 10,481 262,037 5.250 % $ 1.31250 $ 1.00 19,580 $ 489,500 19,421 $ 485,536 10,350 8,946 $ 223,637 5.125 % $ 1.28125 $ 1.00 10,580 10,489 262,231 5.250 % $ 1.31250 $ 1.00 19,435 $ 485,868 2022.2023. As of March 31, 2022,2023, the Company had $224.9 million available under this common share repurchase program.During August 2021, the Company established an at-the-market continuous offering program (the “ATM program”) pursuant to which the Company may offer and sell from time-to-time shares of its common stock, par value $0.01 per share, with an aggregate gross sales price of up to $500.0 million through a consortium of banks acting as sales agents. Sales of the shares of common stock may be made, as needed, from time to time in “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, including by means of ordinary brokers’ transactions on the New York Stock Exchange or otherwise (i) at market prices prevailing at the time of sale, (ii) at prices related to prevailing market prices or (iii) as otherwise agreed to with the applicable sales agent. In addition, the Company may from time to time enter into separate forward sale agreements with one or more banks. The Company did not issue any shares under the ATM program during the three months ended March 31, 2022. As of March 31, 2022, the Company had $422.4 million available under this ATM program.1523 $ 0.19000 $ 0.17000 $ 0.23000 $ 0.19000 $ 0.32031 $ 0.32031 $ 0.32031 $ 0.32031 $ 0.32813 $ 0.32813 $ 0.32813 $ 0.32813 15.16. Supplemental Schedule of Non-Cash Investing / Financing Activities20222023 and 20212022 (in thousands): $ 12,527 $ - $ 25,000 $ - $ 19,618 $ - $ 13,444 $ 9,092 $ 16,085 $ 13,444 $ 5,366 $ 5,366 $ 5,322 $ 5,366 $ 33,885 $ 36,062 $ 35,819 $ 33,885 $ 0 $ 553 $ 0 $ 2,068 $ 1,536 $ 0 $ - $ 1,536 $ 0 $ 15,620 $ 54,345 $ - $ 37,187 $ - $ 367,331 $ 325,631 $ 326,210 $ 146,970 2,987 9,032 2,967 2,859 $ 370,318 $ 334,663 $ 329,177 $ 149,829 16.17. Commitments and Contingencies2022,2023, these letters of credit aggregated $42.6$39.8 million.an investmentinvestments with a funding commitmentcommitments of $25.0$64.7 million, of which $9.4$41.7 million has been funded as of March 31, 2022.Defined Benefit PlanThe Company’s noncontributory qualified cash balance retirement plan (the “Benefit Plan”) was terminated as of December 31, 2021. NaN contributions are anticipated to be made to the Benefit Plan during 2022.2023.2022,2023, there were $12.3$17.4 million in performance and surety bonds outstanding.In connection with the Merger, theThe Company now provides a guaranty for the payment of any debt service shortfalls on the Sheridan Redevelopment Agency issued Series A bonds which are tax increment revenue bonds issued in connection with a development project in Sheridan, Colorado. These tax increment revenue bonds have a balance of $49.7$45.5 million outstanding at March 31, 2022.2023. The bonds are to be repaid with incremental sales and property taxes and a public improvement fee ("PIF"(“PIF”) to be assessed on current and future retail sales and, to the extent necessary, any amounts we may have to provide under a guaranty. The revenue generated from incremental sales, property taxes and PIF have satisfied the debt service requirements to date. The incremental taxes and PIF are to remain intact until the earlier of the payment of the bond liability in full or 2040.2022.2023.1617.18. Earnings Per Share $ 230,948 $ 131,588 (1,360 ) (792 ) 229,588 130,796 11 9 $ 229,599 $ 130,805 614,767 430,524 1,874 1,606 117 134 616,758 432,264 $ 0.37 $ 0.30 $ 0.37 $ 0.30 $ 283,512 $ 230,948 (1,766 ) (1,360 ) 281,746 229,588 1,118 11 $ 281,864 $ 229,599 616,489 614,767 584 1,874 2,555 117 619,628 616,758 $ 0.46 $ 0.37 $ 0.46 $ 0.37 Additionally, there were 0.8 million stock options that were not dilutive as of March 31, 2021.Company'sCompany’s unvested restricted share awards contain non-forfeitable rights to distributions or distribution equivalents. The impact of the unvested restricted share awards on earnings per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted share awards based on dividends declared and the unvested restricted shares'shares’ participation rights in undistributed earnings.Management'sManagement’s Discussion and Analysis of Financial Condition and Results of OperationsKimco Realty Corporation (the “Company”)the Company contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended.amended (the “Exchange Act”). The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, are generally identifiable by use of the words “believe,” “expect,” “intend,” “commit,” “anticipate,” “estimate,” “project,” “will,” “target,” “plan”, “forecast” or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which, in some cases, are beyond the Company’s control and could materially affect actual results, performances or achievements. Factors which may cause actual results to differ materially from current expectations include, but are not limited to, (i) general adverse economic and local real estate conditions, (ii) the impact of competition, including the availability of acquisition or development opportunities and the costs associated with purchasing and maintaining assets; (iii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iii)(iv) the reduction in the Company’s income in the event of multiple lease terminations by tenants or a failure of multiple tenants to occupy their premises in a shopping center, (iv)(v) the potential impact of e-commerce and other changes in consumer buying practices, and changing trends in the retail industry and perceptions by retailers or shoppers, including safety and convenience, (vi) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and risks related to acquisitions not performing in accordance with our expectations, (v)(vii) the Company’s ability to raise capital by selling its assets, (vi)(viii) disruptions and increases in operating costs due to inflation and supply chain issues, (vii)(ix) risks related to future opportunitiesassociated with the development of mixed-use commercial properties, including risks associated with the development, and plans for the combined company, including the uncertaintyownership of expected future financial performance and results of the combined company following the merger between Kimco and Weingarten Realty Investors (the "Merger"), (viii) the possibility that, if the Company does not achieve the perceived benefits of the Merger as rapidly or to the extent anticipated by financial analysts or investors, the market price of the Company’s common stock could decline, (ix)non-retail real estate, (x) changes in governmental laws and regulations, including, but not limited to changes in data privacy, environmental (including climate change), safety and health laws, and management’s ability to estimate the impact of such changes, (x)(xi) valuation and risks related to the Company’s joint venture and preferred equity investments (xi)and other investments, (xii) valuation of marketable securities and other investments, including the shares of Albertsons Companies, Inc. common stock held by the Company, (xii)(xiii) impairment charges, (xiii)(xiv) criminal cybersecurity attacks disruption, data loss or other security incidents and breaches, (xv) impact of natural disasters and weather and climate-related events, (xvi) pandemics or other health crises, such as coronavirus disease 2019 (“COVID-19”), (xiv)(xvii) our ability to attract, retain and motivate key personnel, (xviii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (xv)(xix) the level and volatility of interest rates and management’s ability to estimate the impact thereof, (xvi)(xx) changes in the dividend policy for the Company’s common and preferred stock and the Company’s ability to pay dividends at current levels, (xvii)(xxi) unanticipated changes in the Company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity, and (xviii)(xxii) the Company’s ability to continue to maintain its status as a REIT for federal income tax purposes and potential risks and uncertainties in connection with its UPREIT structure, and (xxiii) the other risks and uncertainties identified under Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year-endedyear ended December 31, 2021.2022. Accordingly, there is no assurance that the Company’s expectations will be realized. The Company disclaims any intention or obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to refer to any further disclosures the Company makes in the Current Reports on Form 8-K that the Company filesother filings with the Securities and Exchange Commission (“SEC”).includingand a growing portfolio of mixed-use assets. The terms “Kimco,” the “Company,” “we,” “our” and “us” each refers to Kimco Realty Corporation and our subsidiaries, unless the context indicates otherwise. The Company’s mission is to create destinations for everyday living that inspire a sense of community and deliver value to our many stakeholders.2022,2023, the Company had interests in 537529 U.S. shopping center properties, aggregating 92.790.2 million square feet of gross leasable area (“GLA”), located in 2928 states. In addition, the Company had 3222 other property interests, primarily through the Company’s preferred equity investments and other investments, totaling 6.25.7 million square feet of GLA. The Company’s ownership interests in real estate consist of its consolidated portfolio and portfolios where the Company owns an economic interest, such as properties in the Company’s investment real estate management programs, where the Company partners with institutional investors and also retains management. includingand a growing portfolio of mixed-use assets, in the U.S. The Company believes it can achieve this objective by: Weingarten MergerOn August 3, 2021, Weingarten Realty Investors ("Weingarten") merged with and into the Company, with the Company continuing as the surviving public company, pursuant to the definitive merger agreement (the “Merger Agreement”) between the Company and Weingarten which was entered into on April 15, 2021. The Merger brought together two industry-leading retail real estate platforms with highly complementary portfolios and created the preeminent open-air shopping center and mixed-use real estate owner in the country. As a result of the Merger, the Company acquired 149 properties, including 30 held through joint venture programs. The increased scale in targeted growth markets, coupled with a broader pipeline of redevelopment opportunities, has positioned the combined company to create significant value for its shareholders.COVID-19 PandemicEconomic ConditionsCOVID-19 pandemic has resulted in a widespread health crisis that adversely affected businesses, economies and financial markets worldwide. The COVID-19 pandemic significantly impacted the retail sector in which the Company operates. The majority of the Company’s tenants and their operations have been, and may continue to be impacted. Through the duration of the pandemic, a substantial number of tenants had to temporarily or permanently close their business, shortened their operating hours or offer reduced services for some period of time. The development and distribution of COVID-19 vaccines has assisted in allowing many restrictions to be lifted, providing a path to recovery. The overall economy continues to recover butface several issues including inflation risk, bank failures and liquidity restraints, the lack of qualified employees, inflation risk,tenant bankruptcies and supply chain issues, which could impact the Company and new COVID-19 variants have impactedits tenants. In response to the pacerising rate of inflation the Federal Reserve has steadily increased interest rates, and may continue to increase interest rates, until the rate of inflation begins to decrease. These increases in interest rates could adversely impact the business and financial results of the recovery.Company and its tenants. In addition, slower economic growth and the potential for a recession could have an adverse effect on the Company and its tenants. This could negatively affect the overall demand for retail space, including the demand for leasable space in the Company’s properties. As a result, the Company could feel pricing pressure on rents that it is able to charge to new or renewing tenants, such that future rents and rent spreads could be negatively impacted.the impact of COVID-19 on the Company’s business, its tenants' industries and the general economic, financial, and social conditions. The magnitudeconditions and duration of the COVID-19 pandemic andwill assess its impact on the Company’s operations and liquidity remains uncertain as the pandemic continues to evolve globally and within the United States.asset portfolio for any impairment indicators. If the Company determines that any of its assets are impaired, as a result of the COVID-19 pandemic, the Company would be required to take impairment charges, and such amounts could be material. Thedid not incur any impairment chargesto receive payment of additional rent calculated as a percentage of tenants’ gross sales above pre-determined thresholds, which generally increase as prices rise, and/or as a result of escalation clauses, which generally increase rental rates during the three months ended March 31, 2022 relatingterms of the leases. Such escalation clauses often include increases based upon changes in the consumer price index or similar inflation indices. In addition, many of the Company’s leases are for terms of less than 10 years, which permits the Company to COVID-19.seek to increase rents to market rates upon renewal. To assist in partially mitigating the Company’s exposure to increases in costs and operating expenses, including common area maintenance costs, real estate taxes and insurance, resulting from inflation the Company’s leases include provisions that either (i) require the tenant to pay an allocable share of these operating expenses or (ii) contain fixed contractual amounts, which include escalation clauses, to reimburse these operating expenses.20222023 and 202120222022,2023, as compared to the corresponding period in 20212022 (in thousands, except per share data): $ 422,654 $ 278,871 $ 143,783 $ 438,338 $ 422,654 $ 27,084 4,595 3,437 1,158 4,554 4,595 (41 ) (4,081 ) (3,035 ) (1,046 ) (4,013 ) (4,081 ) 68 (54,314 ) (38,936 ) (15,378 ) (57,506 ) (54,314 ) (3,192 ) (69,225 ) (46,520 ) (22,705 ) (75,242 ) (69,225 ) (6,017 ) (29,948 ) (24,478 ) (5,470 ) (34,749 ) (29,948 ) (4,801 ) (272 ) - (272 ) (11,806 ) (272 ) (11,534 ) (130,294 ) (74,876 ) (55,418 ) (126,301 ) (130,294 ) 3,993 4,193 10,005 (5,812 ) 39,206 4,193 35,013 194,116 - 194,116 5,983 3,357 2,626 3,132 5,983 (2,851 ) 121,764 61,085 60,679 (10,144 ) 121,764 (131,908 ) (57,019 ) (47,716 ) (9,303 ) (61,306 ) (57,019 ) (4,287 ) (7,173 ) - (7,173 ) - (7,173 ) 7,173 153 (1,308 ) 1,461 (30,829 ) 153 (30,982 ) 23,570 17,752 5,818 24,204 23,570 634 5,373 3,787 1,586 2,122 5,373 (3,251 ) 1,343 (3,483 ) 4,826 (6,354 ) (6,354 ) - (4,013 ) 1,343 (5,356 ) (6,251 ) (6,354 ) 103 $ 230,948 $ 131,588 $ 99,360 $ 283,512 $ 230,948 $ 63,964 $ 0.37 $ 0.30 $ 0.07 $ 0.46 $ 0.37 $ 0.10 $230.9$283.5 million for the three months ended March 31, 2022,2023, as compared to $131.6$230.9 million for the comparable period in 2021.2022. On a diluted per common share basis, net income available to the Company’s common shareholders for the three months ended March 31, 20222023 was $0.37,$0.46 as compared to $0.30$0.37 for the comparable period in 2021.2022.Company'sCompany’s common shareholders during the three months ended March 31, 2022,2023, as compared to the corresponding period in 2021:2022.$143.8$15.7 million for the three months ended March 31, 2022,2023, as compared to the corresponding period in 2021,2022, is primarily from (i) an increase in revenues of $133.2 million due to properties acquired during 2022 and 2021, including the impact of the Merger, (ii) a net increase in revenues from tenants of $10.0$16.6 million primarily due to an increase in leasing activity and net growth in the current portfolio, (ii) an increase in revenues of $11.3 million due to properties acquired during 2023 and 2022 and (iii) an increase in lease termination fee income of $1.3 million, partially offset by (iv) a net decrease of $7.0 million due to changes in credit losses from tenants, (v) a decrease in revenues of $6.2 million due to dispositions during 2023 and 2022 and (vi) a decrease in net straight-line rental income of $5.2$0.3 million, primarily due to an increasechanges in leasing activity and a decrease in reserves and (iv) a net decrease in credit losses from tenants of $2.5 million primarily due to increased collections, partially offset by (v) a decrease in lease termination fee income of $5.1 million and (vi) a decrease in revenues of $2.0 million due to dispositions during 2022 and 2021.reserves.$15.4$3.2 million for the three months ended March 31, 2022,2023, as compared to the corresponding period in 2021,2022, is primarily due to properties acquired during 2023 and 2022, partially offset by dispositions during 2023 and 2021, including the impact of the Merger.2022.$22.7$6.0 million for the three months ended March 31, 2022,2023, as compared to the corresponding period in 20212022, is primarily due to (i) properties acquired during 2023 and 2022 and 2021, including(ii) increases in repairs and maintenance, utilities and other operating costs throughout the impact of the Merger.Company’s operating properties, partially offset by (iii) dispositions during 2023 and 2022.$5.5$4.8 million for the three months ended March 31, 2023, as compared to the corresponding period in 2022, is primarily due to (i) an increase in employee-related expenses of $2.8 million resulting from additional employees hired and (ii) an increase in professional fees and corporate expenses of $2.0 million, primarily related to the Reorganization.Merger.Company’s efforts to market certain properties and management’s assessment as to the likelihood and timing of such potential transactions. Certain of the calculations to determine fair values utilized unobservable inputs and, as such, were classified as Level 3 of the FASB’s fair value hierarchy.increasedecrease in Depreciation and amortization of $55.4$4.0 million for the three months ended March 31, 2022,2023, as compared to the corresponding period in 2021,2022, is primarily due to (i) a net decrease of $10.0 million, primarily from fully depreciated assets, write-offs due to tenant vacates and dispositions during 2023 and 2022, partially offset by (ii) an increase of $58.8$6.0 million resulting from properties acquired during 20222023 and 2021, including the impact of the Merger, partially offset by (ii) a decrease of $3.4 million due to write-offs of depreciable assets primarily due to tenant vacates and property dispositions.2022.2021,2023, the Company disposedreceived $194.1 million representing its share of an operating property and four land parcels, in separate transactions, for an aggregate sales price of $23.0 million, which resulted in aggregate gains of $10.0 million.the ACI special dividend payment.Gain(Loss)/gain on marketable securities, net –increasechange in Gain(Loss)/gain on marketable securities, net of $60.7$131.9 million for the three months ended March 31, 2022,2023, as compared to the corresponding period in 2021,2022, is primarily the result of mark-to-market fluctuations of the shares of Albertsons Companies, Inc. “ACI”ACI common stock held by the Company.Company and the sale of ACI shares during 2023.$9.3$4.3 million for the three months ended March 31, 2022,2023, as compared to the corresponding period in 2021,2022, is primarily due (i) increased levels of borrowings resulting from the assumptions of unsecured notes and mortgagesto a decrease in connection with the Merger and public debt offerings, partially offset by (ii)fair market value amortization due to the repayment of senior unsecured notes and mortgages during 2022 and 2021.in 2022.DuringEarly extinguishment of debt charges of $7.2 million during the three months ended March 31, 2022, is primarily due to the Company redeemedredeeming its $500.0 million 3.40% senior unsecured notes, which were scheduled to mature in November 2022. As a result, the Company incurred a prepayment charge of $6.5 million and $0.7 million in write-off of deferred financing costs during the three months ended March 31, 2022.costs.Equity in(Provision)/benefit for income of joint ventures,taxes, net –increasechange in Equity in(Provision)/benefit for income of joint ventures,taxes, net of $5.8$31.0 million for the three months ended March 31, 2022,2023, as compared to the corresponding period in 2021,2022, is primarily due to (i) an increase in equitythe sale of 7.1 million shares of ACI held by the Company, which generated a taxable long-term capital gain. The Company plans to elect to retain the proceeds from the sale and, as a result, incurred federal and state income taxes aggregating $30.0 million on such gain.$5.3other investments, net –within various joint venture investments during 2022,for the three months ended March 31, 2023, as compared to the corresponding period in 2021,2022, is primarily resulting from a decrease in credit losses due to collections from tenants, including straight-line rental income, (ii) an increase in equity in income of $2.3 million from ownership interests acquired in unconsolidated joint ventures in connection with the Merger and (iii) a decrease in impairment charges of $0.5 million recognized during 2022, as compared to the corresponding period in 2021, partially offset by (iv) a decrease in net gains of $2.3 million resulting from the sale of properties within various joint venture investmentsthe Company’s Preferred Equity Program during 2022, as compared to the corresponding period in 2021.2022.loss/(income)/loss attributable to noncontrolling interests –loss/(income)/loss attributable to noncontrolling interests of $4.8$5.4 million for the three months ended March 31, 2022,2023, as compared to the corresponding period in 2021,2022, is primarily due to (i) a decreasean increase in net gain on sale of properties within consolidated joint ventures during 2022,2023, as compared to the corresponding period in 2021, partially offset by (ii) an increase in net income attributable to noncontrolling interests recognized in connection with consolidated joint ventures acquired in the Merger.2022.2022,2023, the Company had interests in 537529 U.S. shopping center properties, aggregating 92.790.2 million square feet of gross leasable area (“GLA”), located in 2928 states. At March 31, 2022,2023, the Company’s five largest tenants were TJX Companies, The Home Depot, Albertsons, Ross Stores, Albertsons and Amazon/Whole Foods, which represented 3.7%, 2.2%2.1%, 1.9%, 1.9% and 1.9%, respectively, of the Company’s annualized base rental revenues, including the proportionate share of base rental revenues from properties in which the Company has less than a 100% economic interest.the Company’san unsecured revolving credit facility (the “Credit Facility”) with bank commitments of $2.0 billion, which can be increased to $2.75 billion through an accordion feature. In addition, the Company holds 39.8 million shares of ACI, which are subject to certain contractual lock-up provisions that are scheduled to expire on June 25, 2022.COVID-19 pandemiccurrent inflationary environment, rising interest rates, and other risks detailed in Part I, Item 1A. Risk Factors of our 10-K. $ 334,663 $ 293,188 $ 149,829 $ 334,663 194,551 148,371 345,233 194,551 (35,616 ) (83,924 ) 43,559 (35,616 ) (123,280 ) (103,783 ) (209,444 ) (123,280 ) 35,655 (39,336 ) 179,348 35,655 $ 370,318 $ 253,852 $ 329,177 $ 370,318 20222023 was $194.6$345.2 million, as compared to $148.4$194.6 million for the comparable period in 2021.2022. The increase of $46.2$150.6 million is primarily attributable to: the acquisitionspecial dividend payment from ACI of $194.1 million during 2023;20222023 and 2021, including those acquired from the Merger;2022; and and●an increase in distributions from the Company’s joint ventures programs, partially offset by 20222023 and 2021.2022.used forprovided by investing activities was $35.6$43.6 million for the three months ended March 31, 2022,2023, as compared to $83.9Net cash flow used for investing activities of $35.6 million for the comparable period in 2021.2022. Investing activities during the three months ended March 31, 2021 primarily consisted of:Cash inflows:●$22.2 million in proceeds from the sale of a consolidated operating property and four parcels.Cash outflows:●$84.3 million for the acquisition of two consolidated operating properties;●$20.6 million for improvements to operating real estate primarily related to the Company’s active redevelopment pipeline; and●$2.2 million for investments in and advances to real estate joint ventures, primarily related to a redevelopment project within the Company's joint venture portfolio, and investments in other real estate investments, primarily related to repayment of a mortgage within the Company's Preferred Equity Program.20222023 and 2021,2022, the Company expended $18.7$98.5 million and $84.3$18.7 million, respectively, towards the acquisitionacquisition/consolidation of operating real estate properties. The Company anticipates spending approximately $100.0$75.0 million to $200.0$125.0 million towards the acquisition of or the purchase of additional interests in operating properties for the remainder of 2022.2023. The Company intends to fund these acquisitions with cash on hand, net cash flow fromprovided by operating activities, proceeds from property dispositions, proceeds from the sale of marketable securities and/or availability under its Credit Facility.20222023 and 2021,2022, the Company expended $29.4$40.2 million and $20.6$29.4 million, respectively, towards improvements to operating real estate. These amounts consist of the following (in thousands): $ 12,274 $ 12,908 $ 22,056 $ 12,274 17,161 7,661 18,146 17,161 (1) $ 29,435 $ 20,569 $ 40,202 $ 29,435 (1)During the three months ended March 31, 2022 and 2021, the Company capitalized payroll of $0.4 million and $1.5 million, respectively, and capitalized interest of $0.1 million and $0.3 million, respectively, in connection with the Company’s improvements to operating real estate.20222023 will be approximately $125.0$180.0 million to $175.0$220.0 million. The funding of these capital requirements will be provided by cash on hand, proceeds from property dispositions, proceeds from net cash flow provided by operating activities, the sale of marketable securities, and/or availability under the Company’s Credit Facility.$123.3$209.4 million for the three months ended March 31, 2022,2023, as compared to $103.8$123.3 million for the comparable period in 2021.2022. Financing activities during the three months ended March 31, 2021 primarily consisted of:Cash outflows:●$80.0 million of dividends paid;●$14.9 million in principal payment on debt, including normal amortization of rental property debt; and●$9.1 million in shares repurchased for employee tax withholding on equity awards.the remainder of 20222023 consist of: $333.5$12.0 million of consolidated debt, and $101.2$13.0 million of unconsolidated joint venture debt and $32.2 million of debt included in the Company’s preferred equity program, assuming the utilization of extension options where available. The 20222023 consolidated debt maturities are anticipated to be repaid with operating cash flows, borrowings from the Credit Facility and public debt offerings, as deemed appropriate.flows. The 20222023 debt maturities on properties in the Company’s unconsolidated joint ventures are anticipated to be repaid through operating cash flows, debt refinancing, unsecured credit facilities, proceeds from sales ofwithin the respective entities, and partner capital contributions, as deemed appropriate.$16.8$17.4 billion. Proceeds from public capital market activities have been used for the purposes of, among other things, repaying indebtedness, acquiring interests in open-air, grocery anchored shopping centers and mixed-use assets, expanding and improving properties in the portfolio and other investments.August 2021,January 2023, the Company filed a shelf registration statement on Form S-3, which is effective for a term of three years, for the future unlimited offerings, from time to time, of debt securities, preferred stock, depositary shares, common stock and common stock warrants. The Company, pursuant to this shelf registration statement may, from time to time, offer for sale its senior unsecured debt securities for any general corporate purposes, including (i) funding specific liquidity requirements in its business, including property acquisitions, and development and redevelopment costs and (ii) managing the Company’s debt maturities. 5,540 $ 111.0 7,741 $ 157.0 During August 2021, the Company established an at-the-market continuous offering program (the “ATM program”) pursuant to which the Company may offer and sell from time-to-time shares of its common stock, par value $0.01 per share, with an aggregate gross sales price of up to $500.0 million through a consortium of banks acting as sales agents. Sales of the shares of common stock may be made, as needed, from time to time in “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, including by means of ordinary brokers’ transactions on the New York Stock Exchange or otherwise (i) at market prices prevailing at the time of sale, (ii) at prices related to prevailing market prices or (iii) as otherwise agreed to with the applicable sales agent. In addition, the Company may from time to time enter into separate forward sale agreements with one or more banks. The Company did not issue any shares under the ATM program during the three months ended March 31, 2022. As of March 31, 2022, the Company had $422.4 million available under this ATM program.2022.2023. As of March 31, 2022,2023, the Company had $224.9 million available under this common share repurchase program.In February 2022, the Company issued $600.0 million of senior unsecured notes, which are scheduled to mature in April 2032 and accrue interest at a rate of 3.20% per annum. Proceeds from this issuance were used for general corporate purposes, including the early redemption of the Company’s $500.0 million 3.40% senior unsecured notes outstanding, which were scheduled to mature in November 2022. As a result of this redemption, the Company incurred a prepayment charge of $6.5 million and $0.7 million in write-off of deferred financing costs during the three months ended March 31, 2022.The Company’sKimco OP’s indenture governing its senior unsecured notes contains the following covenants, all of which the CompanyKimco OP is compliant with: 20222023 38%37% 2% 4.4x4.2x 2.5x and the Seventh Supplemental Indenture dated as of April 24, 2014,2014; and the Eighth Supplemental Indenture dated as of January 3, 2023, each as filed with the SEC. In connection with the Merger,merger with Weingarten Realty Investors (“Weingarten”), the Company assumed senior unsecured notes which have covenants that are similar to the Company’sKimco OP’s existing debt covenants for its senior unsecured notes. Please refer to the form Indenture dated May 1, 1995 filed withincluded in Weingarten’s Registration Statement on Form S-3, to the Registration Statement,filed with the Securities and Exchange Commission on May 1,February 10, 1995, the First Supplemental Indenture, dated as of August 2, 2006 filed with Weingarten’s Current Report on Form 8-K dated August 2, 2006, and the Second Supplemental Indenture, dated as of October 9, 2012 filed with Weingarten’s Current Report on Form 8-K dated October 9, 2012. See the Exhibits Index to our Annual Report on Form 10-K for the year ended December 31, 20212022 for specific filing information.2020,2023, the Company obtained a new $2.0 billion Credit Facilityunsecured revolving credit facility (the “Credit Facility”) with a group of banks.banks, which replaced the Company’s existing $2.0 billion unsecured revolving credit facility which was scheduled to mature in March 2024. The Credit Facility is scheduled to expire in March 2024,2027 with two additional six-month options to extend the maturity date, at the Company’s discretion, to March 2025.2028. The Credit Facility is guaranteed by the Parent Company. The Credit Facility could be increased to $2.75 billion through an accordion feature. The Credit Facility is a green credit facility tied to sustainability metric targets, as described in the agreement. The Company achieved such targets, which effectively reduced the rate on the Credit Facility by one basis point. The Credit Facility, which accrues interest at a rate of LIBORAdjusted Term SOFR, as defined in the terms of the Credit Facility, plus 76.577.5 basis points (1.22%and fluctuates in accordance with the Company’s credit ratings. The interest rate can be further adjusted upward or downward by four basis points (as of March 31, 2023, a two-basis point reduction was achieved) based on the sustainability metric targets, as defined in the agreement (5.66% as of March 31, 2022), can be increased to $2.75 billion through an accordion feature.2023). Pursuant to the terms of the Credit Facility, the Company among other things, iscontinues to be subject to the same covenants requiringunder the maintenanceCompany’s prior unsecured revolving credit facility. For a full description of (i) maximum indebtedness ratiosthe Credit Facility’s covenants refer to the Amended and (ii) minimum interest and fixed charge coverage ratios.Restated Credit Agreement dated as of February 23, 2023, filed as Exhibit 10.20 in our Annual Report on Form 10-K for the year ended December 31, 2022. As of March 31, 2022,2023, the Credit Facility had no outstanding balance and no appropriations for letters of credit of $1.9 million.credit. 20222023 38%37% 1%2% 4.6x5.5x 4.1x4.7x For a full description of the Credit Facility’s covenants, refer to the Amended and Restated Credit Agreement dated as of February 27, 2020, filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K dated February 28, 2020.2022,2023, the Company (i) issued $19.0assumed $37.2 million inof individual non-recourse mortgage debt relating to a consolidated joint venturethrough the consolidation of two operating property and (ii)properties which the Company subsequently repaid $85.9 million of mortgage debt (including fair market value adjustment of $0.2 million) that encumbered four operating properties.in March 2023.2022,2023, the Company had over 480485 unencumbered property interests in its portfolio.2022,2023, there were $12.3$17.4 million in performance and surety bonds outstanding.In connection with the Merger, the now provides a guaranty for the payment of any debt service shortfalls on the Sheridan Redevelopment Agency issued Series A bonds which are tax increment revenue bonds issued in connection with a development project in Sheridan, Colorado. These tax increment revenue bonds have a balance of $49.7$45.5 million outstanding at March 31, 2022.2023. The bonds are to be repaid with incremental sales and property taxes and a public improvement fee ("PIF") to be assessed on current and future retail sales and, to the extent necessary, any amounts we may have to provide under a guaranty. The revenue generated from incremental sales, property taxes and PIF have satisfied the debt service requirements to date. The incremental taxes and PIF are to remain intact until the earlier of the payment of the bond liability in full or 2040.COVID-19 –As the COVID-19 pandemic continues to evolve, uncertainty remains regarding the long-term economic impact it will have. As a result, the Company has focused on creating a strong liquidity position, including, but not limited to, maintaining availability under its Credit Facility, cash and cash equivalents on hand and having access to unencumbered property interests.The Company continues to monitor the impact of COVID-19 on the Company’s business, tenants and industry as a whole. The magnitude and duration of the COVID-19 pandemic and its impact on the Company’s operations and liquidity remains uncertain as this pandemic continues to evolve globally and within the United States. However, if the COVID-19 pandemic continues, such impacts could grow, become material and materially disrupt the Company’s business operations and materially adversely affect the Company’s liquidity.they monitorit monitors sources of capital and evaluate the impact of the economy and capital markets availability on operating fundamentals. Since cash used to pay dividends reduces amounts available for capital investment, the Company generally intends to maintain a dividend payout ratio that reserves such amounts as it considers necessary for the expansion and renovation of shopping centers in its portfolio, debt reduction, the acquisition of interests in new properties and other investments as suitable opportunities arise and such other factors as the Board of Directors considers appropriate. Cash dividends paid for common and preferred issuances of stock for the three months ended March 31, 2023 and 2022 and 2021 were $123.8$148.9 million and $80.0$123.8 million, respectively.instruments.instruments with high credit rated institutions. The Company’s objective is to establish a dividend level that maintains compliance with the Company’s REIT taxable income distribution requirements. On February 1, 2022,8, 2023, the Company’s Board of Directors declared a quarterly dividend with respect to the Company’s classes of cumulative redeemable preferred shares (Classes L and M) which were paid on April 15, 202217, 2023 to shareholders of record on April 1, 2022.3, 2023. In addition, the Company’s Board of Directors declared a quarterly cash dividend of $0.19$0.23 per common share, payablewhich was paid on March 23, 2023 to shareholders of record on March 10, 2022, which was paid on March 24, 2022.9, 2023.26, 2022,25, 2023, the Company’s Board of Directors declared quarterly dividends with respect to the Company’s classes of cumulative redeemable preferred shares (Classes L and M), which are scheduled to be paid on July 15, 2022,17, 2023, to shareholders of record on July 1, 2022.3, 2023. Additionally, on April 26, 2022,25, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.20$0.23 per common share, representing a 5.3% increase from the prior quarterly dividend of $0.19, payable on June 23, 202222, 2023 to shareholders of record on June 9, 2022.8, 2023. (realized or unrealized) from marketable securities, allowance for credit losses on mortgage receivables or gains/impairments on preferred equity participationsother investments in NAREIT defined FFO. $ 230,948 $ 131,588 $ 283,512 $ 230,948 (4,193 ) (10,005 ) (39,206 ) (4,193 ) (2,986 ) (5,283 ) (7,710 ) (2,986 ) 129,461 74,113 125,278 129,461 16,885 10,007 16,547 16,885 700 1,068 11,803 700 (3,663 ) 195 31 (3,663 ) (121,764 ) (61,085 ) (11 ) 1,046 (194,116 ) - 10,144 (121,764 ) 30,873 (11 ) (4,730 ) 2,626 931 (4,730 ) $ 240,647 $ 144,270 $ 238,087 $ 240,647 614,767 430,524 616,489 614,767 2,546 654 2,555 2,546 1,874 1,606 584 1,874 619,187 432,784 619,628 619,187 $ 0.39 $ 0.34 $ 0.39 $ 0.39 $ 0.39 $ 0.33 $ 0.39 $ 0.39 and depreciation on properties and gains/(losses) on sales of marketable securities, where applicable.$473$584 and $97$473 for the three months ended March 31, 20222023 and 2021,2022, respectively. The effect of other certain convertible units would have an anti-dilutive effect upon the calculation of FFO available to the Company’s common shareholders per share. Accordingly, the impact of such conversion has not been included in the determination of diluted FFO per share calculations.For the three months ended March 31, 2022, and 2021, the Company included Same property NOI from the Weingarten properties acquired through the Merger, as the Company owned these properties for the full three months ended March 31, 2022. The amount of the adjustment relating to Weingarten Same property NOI for the three months ended March 31, 2021, included in the table below, represents the Same property NOI from Weingarten properties prior to the Merger, which is not included in the Company's Net income available to the Company’s common shareholders for the corresponding period.bad debt,credit losses, operating and maintenance expense, real estate taxes and rent expense plus the Company’s proportionate share of Same property NOI from unconsolidated real estate joint ventures, calculated on the same basis. The Company’s method of calculating Same property NOI available to the Company’s common shareholders may differ from methods used by other REITs and, accordingly, may not be comparable to such other REITs.netNet income available to the Company’s common shareholders to Same property NOI (in thousands): $ 230,948 $ 131,588 (4,595 ) (3,437 ) 29,948 24,478 272 - 130,294 74,876 (4,193 ) (10,005 ) 58,209 44,359 (121,764 ) (61,085 ) (153 ) 1,308 (5,373 ) (3,787 ) (1,343 ) 3,483 6,354 6,354 - 91,950 (17,419 ) (17,422 ) 19,684 11,963 $ 320,869 $ 294,623 (1)Amounts for the three months ended March 31, 2021, represent the Same property NOIs from Weingarten properties, not included in the Company's Net income available to the Company's common shareholders for the same period. $ 283,512 $ 230,948 (4,554 ) (4,595 ) 34,749 29,948 11,806 272 126,301 130,294 (39,206 ) (4,193 ) Special dividend income (194,116 ) - 58,174 58,209 10,144 (121,764 ) 30,829 (153 ) (2,122 ) (5,373 ) 4,013 (1,343 ) 6,251 6,354 (15,613 ) (16,535 ) 16,039 19,684 $ 326,207 $ 321,753 $26.2$4.5 million or 8.9%1.4% for the three months ended March 31, 2022,2023, as compared to the corresponding period in 2021.2022. This increase is primarily the result of (i) ana net increase in net operating income of $21.6$13.4 million primarily related to an increase in rental revenue driven by strong leasing activity, and a decrease in tenant rent abatements and vacancies as a result of the COVID-19 pandemic andpartially offset by (ii) a decreasechange in credit losses from tenants of $5.0 million due to increased collections, partially offset by (iii) an increase in non-recoverable operating expenses of $0.4$8.9 million.Effects of InflationMany of the Company's long-term leases contain provisions designed to mitigate the adverse impact of inflation. Such provisions include clauses enabling the Company to receive payment of additional rent calculated as a percentage of tenants' gross sales above pre-determined thresholds, which generally increase as prices rise, and/or as a result of escalation clauses, which generally increase rental rates during the terms of the leases. Such escalation clauses often include increases based upon changes in the consumer price index or similar inflation indices. In addition, many of the Company's leases are for terms of less than 10 years, which permits the Company to seek to increase rents to market rates upon renewal. To assist in mitigating the Company's exposure to increases in costs and operating expenses, including common area maintenance costs, real estate taxes and insurance, resulting from inflation the Company’s leases include provisions that either (i) require the tenant to pay an allocable share of these operating expenses or (ii) contain fixed contractual amounts, which include escalation clauses, to reimburse these operating expenses.2022,2023, the Company executed 532474 leases totaling over 4.34.1 million square feet in the Company’s consolidated operating portfolio comprised of 147119 new leases and 385355 renewals and options. The leasing costs associated with these new leases are estimated to aggregate $37.3$27.9 million, or $51.30$37.31 per square foot. These costs include $30.7$21.7 million of tenant improvements and $6.6$6.2 million of external leasing commissions. The average rent per square foot for (i) new leases was $22.62$21.41 and (ii) renewals and options was $15.92.$17.77.2022,2023, the Company has a total of 8,2268,315 leases in its consolidated operating portfolio. The following table sets forth the aggregate lease expirations for each of the next ten years, assuming no renewal options are exercised. For purposes of the table, the Total Annual Base Rent Expiring represents annualized rental revenue, excluding the impact of straight-line rent, for each lease that expires during the respective year. Amounts in thousands, except for number of leaseleases data: 205 492 $ 12,164 1.0 167 586 $ 13,068 1.0 632 2,617 $ 54,655 4.6 1,223 7,631 $ 140,582 11.7 544 2,490 $ 52,771 4.2 1,193 7,841 $ 148,481 12.4 1,168 7,415 $ 144,014 11.4 1,078 7,970 $ 145,940 12.2 1,172 8,211 $ 155,610 12.4 1,036 9,368 $ 153,071 12.7 1,105 9,535 $ 159,917 12.7 840 8,566 $ 141,375 11.8 1,155 9,756 $ 177,434 14.1 471 5,387 $ 95,382 7.9 940 9,281 $ 164,981 13.1 386 3,533 $ 64,759 5.4 464 4,201 $ 77,960 6.2 300 2,473 $ 54,829 4.6 326 2,620 $ 59,345 4.7 346 2,552 $ 55,965 4.7 342 2,364 $ 54,924 4.4 274 2,144 $ 40,630 3.4 384 2,783 $ 54,295 4.3 298 2,519 $ 45,286 3.6 2022,2023, with corresponding weighted-average interest rates sorted by maturity date. The table does not include extension options where available (amounts in millions). $ 29.5 $ 55.5 $ 5.5 $ 54.4 $ - $ 214.8 $ 359.7 $ 343.2 $ 12.0 $ 14.3 $ 52.6 $ - $ 34.1 $ 243.2 $ 356.2 $ 298.4 3.95 3.95 6.74 3.50 - 4.28 4.12 3.23 4.79 3.50 - 4.01 4.23 4.09 $ - $ - $ - $ 18.9 $ - $ - $ 18.9 $ 18.5 $ - $ - $ 18.1 $ - $ - $ - $ 18.1 $ 17.7 - - - 1.49 - - 1.49 - - 5.97 - - - 5.97 $ 304.0 $ 657.8 $ 660.0 $ 756.6 $ 787.9 $ 3,944.5 $ 7,110.8 $ 6,875.7 $ - $ 652.4 $ 751.7 $ 784.5 $ 436.6 $ 4,152.9 $ 6,778.1 $ 5,870.9 3.38 3.30 3.37 3.48 3.06 3.35 3.33 - 3.37 3.48 3.06 4.03 3.47 3.45 $0.1$0.05 million for the three months ended March 31, 20222023 if short-term interest rates were 1.0% higher.The following information supplements and amends our discussion set forth under Part I, Item 3 "Legal Proceedings" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.liability insurance.2021. 2022,2023, the Company repurchased 555,797 shares for an aggregate purchase price of $13.4 million (weighted average price of $24.16 per share) in connection with common shares surrendered or deemed surrendered tothe following Class L depositary shares: - $ - - $ n/a - - - $ n/a 5,540 20.02 - $ n/a 5,540 $ 20.02 - to satisfy statutory minimum tax withholding obligations in connection with equity-based compensation plans.repurchased the following Class M depositary shares: - $ - - $ n/a - - - $ n/a 7,741 20.26 - $ n/a 7,741 $ 20.26 - 2022.2023. As of March 31, 2022,2023, the Company had $224.9 million available under this common share repurchase program. 3,157 $ 24.68 - $ 224.9 552,640 24.16 - $ 224.9 - - - $ 224.9 555,797 $ 24.16 - - $ - - $ 224.9 750,717 21.43 - $ 224.9 - - - $ 224.9 750,717 $ 21.43 - 29, 202228, 202329, 202228, 20233241