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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
GAAP Net Income to Taxable Income Reconciliation

The following table reconciles GAAP net income to taxable income for the years ended December 31, 2024, 2023 and 2022 (in thousands):

 

 

2024 (Estimated)

 

 

2023 (Actual)

 

 

2022 (Actual)

 

GAAP net income attributable to the Company

 

$

410,785

 

 

$

654,273

 

 

$

125,976

 

GAAP net income attributable to TRSs

 

 

(1,084

)

 

 

(30

)

 

 

(5,042

)

GAAP net income from REIT operations (1)

 

 

409,701

 

 

 

654,243

 

 

 

120,934

 

Federal income taxes

 

 

21,626

 

 

 

50,686

 

 

 

47,328

 

Net book depreciation in excess of tax depreciation

 

 

142,326

 

 

 

111,124

 

 

 

120,446

 

Deferred/prepaid/above-market and below-market rents, net

 

 

(41,444

)

 

 

(30,740

)

 

 

(38,479

)

Fair market value debt amortization

 

 

(8,026

)

 

 

(21,053

)

 

 

(38,303

)

Book/tax differences from executive compensation

 

 

30,018

 

 

 

31,169

 

 

 

23,248

 

Book/tax differences from equity awards

 

 

(3,780

)

 

 

(7,157

)

 

 

(7,846

)

Book/tax differences from defined benefit plan

 

 

-

 

 

 

2,948

 

 

 

-

 

Book/tax differences from investments in and advances to real estate joint
   ventures

 

 

33,579

 

 

 

(20,271

)

 

 

11,736

 

Book/tax differences from sale of properties and marketable equity securities

 

 

332,100

 

 

 

190,048

 

 

 

217,797

 

Book/tax differences from accounts receivable

 

 

4,702

 

 

 

(3,596

)

 

 

(8,430

)

Book adjustment to property carrying values and marketable equity securities

 

 

(28

)

 

 

(24,206

)

 

 

335,199

 

Taxable currency exchange (loss)/gain, net

 

 

-

 

 

 

(2,585

)

 

 

198

 

Tangible property regulation deduction

 

 

(153,866

)

 

 

(55,551

)

 

 

(61,492

)

GAAP change in ownership of joint venture interests

 

 

-

 

 

 

-

 

 

 

45,767

 

Dividends from TRSs

 

 

6,489

 

 

 

13

 

 

 

243

 

Severance accrual

 

 

1,276

 

 

 

(724

)

 

 

(2,065

)

Other book/tax differences, net (2)

 

 

20,904

 

 

 

11,228

 

 

 

2,115

 

Adjusted REIT taxable income (3)

 

$

795,577

 

 

$

885,576

 

 

$

768,396

 

 

Certain amounts in the prior periods have been reclassified to conform to the current year presentation in the table above.

 

(1)
All adjustments to "GAAP net income from REIT operations" are net of amounts attributable to noncontrolling interests and TRSs.
(2)
Includes merger related book/tax differences of $22.4 million and $3.4 million for the years ended December 31, 2024 and 2023, respectively.
(3)
Includes designated long term capital gain of $104.5 million, $241.2 million and $251.5 million for the years ended December 31, 2024, 2023 and 2022, respectively, for which the Company elected to pay the associated corporate income taxes.
Taxable Characteristics of Distributions Paid

The following characterizes distributions paid for tax purposes for the years ended December 31, 2024, 2023 and 2022, (amounts in thousands):

 

 

2024

 

 

2023

 

 

2022

 

Preferred L Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary income

 

$

7,755

 

 

 

68

%

 

$

11,432

 

 

 

100

%

 

$

9,657

 

 

 

84

%

Capital gain

 

 

3,650

 

 

 

32

%

 

 

-

 

 

 

-

 

 

 

1,839

 

 

 

16

%

 

$

11,405

 

 

 

100

%

 

$

11,432

 

 

 

100

%

 

$

11,496

 

 

 

100

%

Preferred M Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary income

 

$

9,340

 

 

 

68

%

 

$

13,749

 

 

 

100

%

 

$

11,615

 

 

 

84

%

Capital gain

 

 

4,396

 

 

 

32

%

 

 

-

 

 

 

-

 

 

 

2,212

 

 

 

16

%

 

$

13,736

 

 

 

100

%

 

$

13,749

 

 

 

100

%

 

$

13,827

 

 

 

100

%

Preferred N Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary income

 

$

3,766

 

 

 

68

%

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Capital gain

 

 

1,772

 

 

 

32

%

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

$

5,538

 

 

 

100

%

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Common Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary income

 

$

443,473

 

 

 

68

%

 

$

622,885

 

 

 

99

%

 

$

418,725

 

 

 

81

%

Capital gain

 

 

208,693

 

 

 

32

%

 

 

-

 

 

 

-

 

 

 

82,711

 

 

 

16

%

Return of capital

 

 

-

 

 

 

-

 

 

 

6,292

 

 

 

1

%

 

 

15,508

 

 

 

3

%

 

$

652,166

 

 

 

100

%

 

$

629,177

 

 

 

100

%

 

$

516,944

 

 

 

100

%

Total dividends distributed for tax purposes

 

$

682,845

 

 

 

 

 

$

654,358

 

 

 

 

 

$

542,267

 

 

 

 
(Provision)/Benefit for Income Taxes The Company’s provision/(benefit) for income taxes relating to the Company for the years ended December 31, 2024, 2023 and 2022, are summarized as follows (in thousands):

 

 

2024

 

 

2023

 

 

2022

 

TRSs and taxable entities

 

$

97

 

 

$

83

 

 

$

(533

)

REIT (1)

 

 

25,320

 

 

 

60,869

 

 

 

57,187

 

Total tax provision

 

$

25,417

 

 

$

60,952

 

 

$

56,654

 

 

(1)
During 2024, 2023 and 2022, the Company sold shares of ACI common stock and recognized long-term capital gains for tax purposes of $288.7 million, $241.2 million and $251.5 million, respectively. During 2024, the Company elected to retain the proceeds from the stock sales for general corporate purposes and, after applying available deductions, also retained net long-term capital gains of $108.2 million and pay corporate income tax on the taxable gain, in the amount of $26.1 million for federal and state income tax purposes. In 2023 and 2022 the Company elected to retain the entire proceeds from these stock sales for general corporate purposes and pay corporate income tax on the related taxable gains. During 2023, the Company incurred federal taxes of $50.7 million and state and local taxes of $10.2 million. During 2022, the Company incurred federal taxes of $47.3 million and state and local taxes of $9.9 million. This undistributed long-term capital gain is allocated to, and reportable by, each shareholder, and each shareholder is also entitled to claim a federal income tax credit for its allocable share of the federal income tax paid by the Company. The allocable share of the long-term capital gain and the federal tax credit will be reported to direct holders of Kimco common stock, on Form 2439, and to others in year-end reporting documents issued by brokerage firms for the Company’s common stock held in a brokerage accounts.
Deferred Tax Assets and Liabilities The Company’s deferred tax assets and liabilities at December 31, 2024 and 2023, were as follows (in thousands):

 

 

2024

 

 

2023

 

Deferred tax assets:

 

 

 

 

 

 

Tax/GAAP basis differences

 

$

6,423

 

 

$

3,293

 

Net operating losses (1)

 

 

8,775

 

 

 

4,463

 

Valuation allowance

 

 

(10,327

)

 

 

(3,776

)

Total deferred tax assets

 

 

4,871

 

 

 

3,980

 

Deferred tax liabilities

 

 

(6,181

)

 

 

(5,843

)

Net deferred tax liabilities

 

$

(1,310

)

 

$

(1,863

)

 

(1)
Net operating losses do not expire.