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The amounts represent adjustments associated with potentially uncollectible revenues and disputed amounts primarily due to the COVID-19 pandemic.
Includes restricted assets of consolidated variable interest entities (“VIEs”) at September 30, 2022 and December 31, 2021 of $88,949 and $227,858, respectively. See Footnote 13 of the Notes to Condensed Consolidated Financial Statements.
Includes partial repayments during May and June 2022.
The Company determined that its valuation of its mortgages payable were classified within Level 3 of the fair value hierarchy.
Representing 112 property interests and 22.6 million square feet of GLA, as of September 30, 2022, and 120 property interests and 24.7 million square feet of GLA, as of December 31, 2021.
Includes minimum base rents, expense reimbursements, ancillary income and straight-line rent adjustments.
The pro forma earnings for the three and nine months ended September 30, 2021 were adjusted to exclude $47.0 million and $50.2 million of merger costs, respectively.
Includes $19.7 million of Internal Revenue Code 26 U.S.C. §1031 proceeds held in escrow through sale of real estate interests for the nine months ended September 30, 2022.
During the nine months ended September 30, 2022, the Prudential Investment Program recognized an impairment charge on a property of $15.1 million, of which the Company’s share was $2.3 million.
There was no prepayment charge associated with this early repayment.
Consists of the fair value of the assets acquired which exceeded the purchase price upon closing. The transaction was a sale-leaseback with the seller which resulted in the recognition of a prepayment of rent of $17.7 million in accordance with ASC 842, Leases at closing. The prepayment of rent will amortize over the initial term of the lease through Revenues from rental properties, net on the Company's Condensed Consolidated Statements of Operations. See Footnote 12 of the Company's Condensed Consolidated Financial Statements for additional discussion regarding fair value allocation of partnership interest for noncontrolling interests.
Includes extension options
During the nine months ended September 30, 2022, the Company purchased additional ownership interests for $55.1 million, including the General Partner's ownership interest from Milton Cooper, Executive Chairman of the Board of Directors of the Company, for $0.1 million. There was no change in control as a result of these transactions.
Includes minimum base rents, expense reimbursements, percentage rent, lease termination fee income and ancillary income.
Gross leasable area ("GLA")
The Company determined the estimated fair value of the Credit Facility and mortgages payable using a discounted cash flow model using a rate that reflects the average yield of similar market participants.
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. Additionally, there were 0.3 million and 0.5 million stock options that were not dilutive as of September 30, 2022 and 2021, respectively.
Relates to interest expense on finance lease liabilities, which were acquired in connection with the Merger.
The Company incurred a prepayment charge of $6.5 million and $0.7 million in write-off of deferred financing costs resulting from this early repayment, which are included in Early extinguishment of debt charges on the Company's Condensed Consolidated Statements of Income.
The Company determined that the valuation of its senior unsecured notes were classified within Level 2 of the fair value 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 September 30, 2022 and December 31, 2021, were $5.7 billion and $7.3 billion, respectively. The estimated fair value amounts classified as Level 3, as of September 30, 2022, was $126.7 million.
Includes non-recourse liabilities of consolidated VIEs at September 30, 2022 and December 31, 2021 of $100,291 and $153,924, respectively. See Footnote 13 of the Notes to Condensed Consolidated Financial Statements.
Before noncontrolling interests of $3.0 million and taxes of $2.2 million, after utilization of net operating loss carryforwards, for the nine months ended September 30, 2021.
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Table of Contents
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 September 30, 2022
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: 1-10899
KIMCO REALTY CORPORATION
(Exact name of registrant as specified in its charter)
| Maryland | | 13-2744380 |
| (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:
| 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 |
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. 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). 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-2 of the Exchange Act.
| Large accelerated filer | ☒ | Accelerated filer | ☐ | | Non-accelerated filer | ☐ |
| Smaller reporting company | ☐ | Emerging growth company | ☐ | | | |
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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of October 19, 2022, the registrant had 618,460,829 shares of common stock outstanding.
PART I - FINANCIAL INFORMATION
KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share information)
| | | September 30, 2022 | | | December 31, 2021 | |
| Assets: | | | | | | | | |
| Real estate, net of accumulated depreciation and amortization of $3,336,473 and $3,010,699, respectively | | $ | 14,748,910 | | | $ | 15,035,900 | |
| Real estate under development | | | 5,672 | | | | 5,672 | |
| Investments in and advances to real estate joint ventures | | | 1,092,351 | | | | 1,006,899 | |
| Other investments | | | 105,984 | | | | 122,015 | |
| Cash and cash equivalents | | | 123,531 | | | | 334,663 | |
| Marketable securities | | | 999,094 | | | | 1,211,739 | |
| Accounts and notes receivable, net | | | 269,887 | | | | 254,677 | |
| Operating lease right-of-use assets, net | | | 135,429 | | | | 147,458 | |
| Other assets | | | 434,711 | | | | 340,176 | |
| Total assets (1) | | $ | 17,915,569 | | | $ | 18,459,199 | |
| | | | | | | | | |
| Liabilities: | | | | | | | | |
| Notes payable, net | | $ | 6,909,382 | | | $ | 7,027,050 | |
| Mortgages payable, net | | | 300,739 | | | | 448,652 | |
| Dividends payable | | | 5,326 | | | | 5,366 | |
| Operating lease liabilities | | | 114,923 | | | | 123,779 | |
| Other liabilities | | | 732,081 | | | | 730,690 | |
| Total liabilities (2) | | | 8,062,451 | | | | 8,335,537 | |
| Redeemable noncontrolling interests | | | 13,270 | | | | 13,480 | |
| | | | | | | | | |
| Commitments and Contingencies (Footnote 18) | | | | | | | | |
| | | | | | | | | |
| Stockholders' equity: | | | | | | | | |
| Preferred stock, $1.00 par value, authorized 7,054,000 shares; Issued and outstanding (in series) 19,435 and 19,580 shares, respectively; Aggregate liquidation preference $485,868 and $489,500, respectively | | | 19 | | | | 20 | |
| Common stock, $.01 par value, authorized 750,000,000 shares; Issued and outstanding 618,462,620 and 616,658,593 shares, respectively | | | 6,185 | | | | 6,167 | |
| Paid-in capital | | | 9,611,382 | | | | 9,591,871 | |
| Retained earnings | | | 78,790 | | | | 299,115 | |
| Accumulated other comprehensive income | | | 6,688 | | | | 2,216 | |
| Total stockholders' equity | | | 9,703,064 | | | | 9,899,389 | |
| Noncontrolling interests | | | 136,784 | | | | 210,793 | |
| Total equity | | | 9,839,848 | | | | 10,110,182 | |
| Total liabilities and equity | | $ | 17,915,569 | | | $ | 18,459,199 | |
| (1) |
Includes restricted assets of consolidated variable interest entities (“VIEs”) at September 30, 2022 and December 31, 2021 of $88,949 and $227,858, respectively. See Footnote 13 of the Notes to Condensed Consolidated Financial Statements. |
| (2) |
Includes non-recourse liabilities of consolidated VIEs at September 30, 2022 and December 31, 2021 of $100,291 and $153,924, respectively. See Footnote 13 of the Notes to Condensed Consolidated Financial Statements. |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KIMCO REALTY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except per share data)
| |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues from rental properties, net |
|
$ |
429,042 |
|
|
$ |
364,694 |
|
|
$ |
1,274,969 |
|
|
$ |
929,297 |
|
| Management and other fee income |
|
|
4,361 |
|
|
|
3,913 |
|
|
|
12,881 |
|
|
|
10,634 |
|
| Total revenues |
|
|
433,403 |
|
|
|
368,607 |
|
|
|
1,287,850 |
|
|
|
939,931 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rent |
|
|
(3,703 |
) |
|
|
(3,678 |
) |
|
|
(11,854 |
) |
|
|
(9,706 |
) |
| Real estate taxes |
|
|
(55,578 |
) |
|
|
(50,594 |
) |
|
|
(165,967 |
) |
|
|
(129,124 |
) |
| Operating and maintenance |
|
|
(71,457 |
) |
|
|
(52,063 |
) |
|
|
(210,466 |
) |
|
|
(145,480 |
) |
| General and administrative |
|
|
(29,677 |
) |
|
|
(25,904 |
) |
|
|
(87,606 |
) |
|
|
(75,136 |
) |
| Impairment charges |
|
|
(7,067 |
) |
|
|
(850 |
) |
|
|
(21,758 |
) |
|
|
(954 |
) |
| Merger charges |
|
|
- |
|
|
|
(46,998 |
) |
|
|
- |
|
|
|
(50,191 |
) |
| Depreciation and amortization |
|
|
(125,419 |
) |
|
|
(114,238 |
) |
|
|
(380,324 |
) |
|
|
(261,687 |
) |
| Total operating expenses |
|
|
(292,901 |
) |
|
|
(294,325 |
) |
|
|
(877,975 |
) |
|
|
(672,278 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on sale of properties |
|
|
3,821 |
|
|
|
1,975 |
|
|
|
10,958 |
|
|
|
30,841 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income |
|
|
144,323 |
|
|
|
76,257 |
|
|
|
420,833 |
|
|
|
298,494 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income/(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income, net |
|
|
6,226 |
|
|
|
6,696 |
|
|
|
18,851 |
|
|
|
11,834 |
|
| (Loss)/gain on marketable securities, net |
|
|
(75,491 |
) |
|
|
457,127 |
|
|
|
(215,194 |
) |
|
|
542,510 |
|
| Interest expense |
|
|
(52,391 |
) |
|
|
(52,126 |
) |
|
|
(165,876 |
) |
|
|
(146,654 |
) |
| Early extinguishment of debt charges |
|
|
(428 |
) |
|
|
- |
|
|
|
(7,658 |
) |
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes, net, equity in income of joint ventures, net, and equity in income from other investments, net |
|
|
22,239 |
|
|
|
487,954 |
|
|
|
50,956 |
|
|
|
706,184 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefit/(provision) for income taxes, net |
|
|
1,039 |
|
|
|
(314 |
) |
|
|
1,096 |
|
|
|
(2,897 |
) |
| Equity in income of joint ventures, net |
|
|
26,360 |
|
|
|
20,025 |
|
|
|
94,060 |
|
|
|
54,095 |
|
| Equity in income of other investments, net |
|
|
6,733 |
|
|
|
1,539 |
|
|
|
15,491 |
|
|
|
10,365 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
56,371 |
|
|
|
509,204 |
|
|
|
161,603 |
|
|
|
767,747 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss/(income) attributable to noncontrolling interests |
|
|
1,583 |
|
|
|
(1,465 |
) |
|
|
14,152 |
|
|
|
(5,369 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to the Company |
|
|
57,954 |
|
|
|
507,739 |
|
|
|
175,755 |
|
|
|
762,378 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred dividends, net |
|
|
(6,307 |
) |
|
|
(6,354 |
) |
|
|
(18,911 |
) |
|
|
(19,062 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income available to the Company's common shareholders |
|
$ |
51,647 |
|
|
$ |
501,385 |
|
|
$ |
156,844 |
|
|
$ |
743,316 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income available to the Company's common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| -Basic |
|
$ |
0.08 |
|
|
$ |
0.91 |
|
|
$ |
0.25 |
|
|
$ |
1.57 |
|
| -Diluted |
|
$ |
0.08 |
|
|
$ |
0.91 |
|
|
$ |
0.25 |
|
|
$ |
1.56 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| -Basic |
|
|
615,832 |
|
|
|
546,842 |
|
|
|
615,417 |
|
|
|
469,885 |
|
| -Diluted |
|
|
618,018 |
|
|
|
548,766 |
|
|
|
617,856 |
|
|
|
474,452 |
|
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)
(in thousands)
| |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
| Net income |
|
$ |
56,371 |
|
|
$ |
509,204 |
|
|
$ |
161,603 |
|
|
$ |
767,747 |
|
| Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Change in unrealized gains related to defined benefit plan |
|
|
212 |
|
|
|
- |
|
|
|
4,472 |
|
|
|
- |
|
| Other comprehensive income |
|
|
212 |
|
|
|
- |
|
|
|
4,472 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive income |
|
|
56,583 |
|
|
|
509,204 |
|
|
|
166,075 |
|
|
|
767,747 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive loss/(income) attributable to noncontrolling interests |
|
|
1,583 |
|
|
|
(1,465 |
) |
|
|
14,152 |
|
|
|
(5,369 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive income attributable to the Company |
|
$ |
58,166 |
|
|
$ |
507,739 |
|
|
$ |
180,227 |
|
|
$ |
762,378 |
|
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 September 30, 2022 and 2021
(Unaudited)
(in thousands)
| |
|
Retained Earnings/ (Cumulative Distributions in Excess |
|
|
Accumulated Other Comprehensive |
|
|
Preferred Stock |
|
|
Common Stock |
|
|
Paid-in |
|
|
Total Stockholders' |
|
|
Noncontrolling |
|
|
Total |
|
| |
|
of Net Income) |
|
|
Income |
|
|
Issued |
|
|
Amount |
|
|
Issued |
|
|
Amount |
|
|
Capital |
|
|
Equity |
|
|
Interests |
|
|
Equity |
|
| Balance at July 1, 2021 |
|
$ |
(68,265 |
) |
|
$ |
- |
|
|
|
20 |
|
|
$ |
20 |
|
|
|
433,517 |
|
|
$ |
4,335 |
|
|
$ |
5,771,179 |
|
|
$ |
5,707,269 |
|
|
$ |
64,946 |
|
|
$ |
5,772,215 |
|
| Net income |
|
|
507,739 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
507,739 |
|
|
|
1,465 |
|
|
|
509,204 |
|
| Redeemable noncontrolling interests income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(353 |
) |
|
|
(353 |
) |
| Dividends declared to common and preferred shares |
|
|
(110,865 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(110,865 |
) |
|
|
- |
|
|
|
(110,865 |
) |
| Distributions to noncontrolling interests |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(887 |
) |
|
|
(887 |
) |
| Issuance of common stock, net of issue costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,516 |
|
|
|
35 |
|
|
|
76,893 |
|
|
|
76,928 |
|
|
|
- |
|
|
|
76,928 |
|
| Issuance of common stock for merger |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
179,920 |
|
|
|
1,799 |
|
|
|
3,736,936 |
|
|
|
3,738,735 |
|
|
|
- |
|
|
|
3,738,735 |
|
| Surrender of common stock for taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(567 |
) |
|
|
(5 |
) |
|
|
(11,575 |
) |
|
|
(11,580 |
) |
|
|
- |
|
|
|
(11,580 |
) |
| Exercise of common stock options |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
28 |
|
|
|
- |
|
|
|
534 |
|
|
|
534 |
|
|
|
- |
|
|
|
534 |
|
| Amortization of equity awards |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,550 |
|
|
|
5,550 |
|
|
|
- |
|
|
|
5,550 |
|
| Noncontrolling interests assumed from the merger |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
179,037 |
|
|
|
179,037 |
|
| Redemption/conversion of noncontrolling interests |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,094 |
) |
|
|
(3,094 |
) |
| Balance at September 30, 2021 |
|
$ |
328,609 |
|
|
$ |
- |
|
|
|
20 |
|
|
$ |
20 |
|
|
|
616,414 |
|
|
$ |
6,164 |
|
|
$ |
9,579,517 |
|
|
$ |
9,914,310 |
|
|
$ |
241,114 |
|
|
$ |
10,155,424 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at July 1, 2022 |
|
$ |
163,210 |
|
|
$ |
6,476 |
|
|
|
19 |
|
|
$ |
19 |
|
|
|
618,483 |
|
|
$ |
6,185 |
|
|
$ |
9,605,163 |
|
|
$ |
9,781,053 |
|
|
$ |
190,684 |
|
|
$ |
9,971,737 |
|
| Net income/(loss) |
|
|
57,954 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
57,954 |
|
|
|
(1,583 |
) |
|
|
56,371 |
|
| Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Change in unrealized gains related to defined
benefit plan |
|
|
- |
|
|
|
212 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
212 |
|
|
|
- |
|
|
|
212 |
|
| Redeemable noncontrolling interests income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(192 |
) |
|
|
(192 |
) |
| Dividends declared to common and preferred shares |
|
|
(142,374 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(142,374 |
) |
|
|
- |
|
|
|
(142,374 |
) |
| Distributions to noncontrolling interests |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(52,125 |
) |
|
|
(52,125 |
) |
| Surrender of common stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(24 |
) |
|
|
- |
|
|
|
(115 |
) |
|
|
(115 |
) |
|
|
- |
|
|
|
(115 |
) |
| Exercise of common stock options |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4 |
|
|
|
- |
|
|
|
88 |
|
|
|
88 |
|
|
|
- |
|
|
|
88 |
|
| Amortization of equity awards |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,261 |
|
|
|
6,261 |
|
|
|
- |
|
|
|
6,261 |
|
| Redemption/conversion of noncontrolling interests |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(15 |
) |
|
|
(15 |
) |
|
|
- |
|
|
|
(15 |
) |
| Balance at September 30, 2022 |
|
$ |
78,790 |
|
|
$ |
6,688 |
|
|
|
19 |
|
|
$ |
19 |
|
|
|
618,463 |
|
|
$ |
6,185 |
|
|
$ |
9,611,382 |
|
|
$ |
9,703,064 |
|
|
$ |
136,784 |
|
|
$ |
9,839,848 |
|
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 Nine Months Ended September 30, 2022 and 2021
(Unaudited)
(in thousands)
| |
|
Retained Earnings/ (Cumulative Distributions in Excess |
|
|
Accumulated Other Comprehensive |
|
|
Preferred Stock |
|
|
Common Stock |
|
|
Paid-in |
|
|
Total Stockholders' |
|
|
Noncontrolling |
|
|
Total |
|
| |
|
of Net Income) |
|
|
Income |
|
|
Issued |
|
|
Amount |
|
|
Issued |
|
|
Amount |
|
|
Capital |
|
|
Equity |
|
|
Interests |
|
|
Equity |
|
| Balance at January 1, 2021 |
|
$ |
(162,812 |
) |
|
$ |
- |
|
|
|
20 |
|
|
$ |
20 |
|
|
|
432,519 |
|
|
$ |
4,325 |
|
|
$ |
5,766,511 |
|
|
$ |
5,608,044 |
|
|
$ |
62,210 |
|
|
$ |
5,670,254 |
|
| Net income |
|
|
762,378 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
762,378 |
|
|
|
5,369 |
|
|
|
767,747 |
|
| Redeemable noncontrolling interests income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(529 |
) |
|
|
(529 |
) |
| Dividends declared to common and preferred shares |
|
|
(270,957 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(270,957 |
) |
|
|
- |
|
|
|
(270,957 |
) |
| Distributions to noncontrolling interests |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,879 |
) |
|
|
(1,879 |
) |
| Issuance of common stock, net of issuance costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,958 |
|
|
|
49 |
|
|
|
76,879 |
|
|
|
76,928 |
|
|
|
- |
|
|
|
76,928 |
|
| Issuance of common stock for merger |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
179,920 |
|
|
|
1,799 |
|
|
|
3,736,936 |
|
|
|
3,738,735 |
|
|
|
- |
|
|
|
3,738,735 |
|
| Surrender of common stock for taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,115 |
) |
|
|
(10 |
) |
|
|
(20,816 |
) |
|
|
(20,826 |
) |
|
|
- |
|
|
|
(20,826 |
) |
| Exercise of common stock options |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
132 |
|
|
|
1 |
|
|
|
2,503 |
|
|
|
2,504 |
|
|
|
- |
|
|
|
2,504 |
|
| Amortization of equity awards |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
17,504 |
|
|
|
17,504 |
|
|
|
- |
|
|
|
17,504 |
|
| Noncontrolling interests assumed from the merger |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
179,037 |
|
|
|
179,037 |
|
| Redemption/conversion of noncontrolling interests |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(3,094 |
) |
|
|
(3,094 |
) |
| Balance at September 30, 2021 |
|
$ |
328,609 |
|
|
$ |
- |
|
|
|
20 |
|
|
$ |
20 |
|
|
|
616,414 |
|
|
$ |
6,164 |
|
|
$ |
9,579,517 |
|
|
$ |
9,914,310 |
|
|
$ |
241,114 |
|
|
$ |
10,155,424 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
| Contributions from noncontrolling interests |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
891 |
|
|
|
891 |
|
| Net income/(loss) |
|
|
175,755 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
175,755 |
|
|
|
(14,152 |
) |
|
|
161,603 |
|
| Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Change in unrealized gains related to
defined benefit plan |
|
|
- |
|
|
|
4,472 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,472 |
|
|
|
- |
|
|
|
4,472 |
|
| Redeemable noncontrolling interests income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(726 |
) |
|
|
(726 |
) |
| Dividends declared to common and preferred shares |
|
|
(396,144 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(396,144 |
) |
|
|
- |
|
|
|
(396,144 |
) |
| Repurchase of preferred stock |
|
|
64 |
|
|
|
|
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
(3,505 |
) |
|
|
(3,442 |
) |
|
|
- |
|
|
|
(3,442 |
) |
| Distributions to noncontrolling interests |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(58,183 |
) |
|
|
(58,183 |
) |
| Issuance of common stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,162 |
|
|
|
22 |
|
|
|
11,259 |
|
|
|
11,281 |
|
|
|
- |
|
|
|
11,281 |
|
| Surrender of common stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(609 |
) |
|
|
(6 |
) |
|
|
(13,654 |
) |
|
|
(13,660 |
) |
|
|
- |
|
|
|
(13,660 |
) |
| Exercise of common stock options |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
178 |
|
|
|
1 |
|
|
|
3,644 |
|
|
|
3,645 |
|
|
|
- |
|
|
|
3,645 |
|
| Amortization of equity awards |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
20,170 |
|
|
|
20,170 |
|
|
|
- |
|
|
|
20,170 |
|
| Redemption/conversion of noncontrolling interests |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
73 |
|
|
|
1 |
|
|
|
1,597 |
|
|
|
1,598 |
|
|
|
(1,839 |
) |
|
|
(241 |
) |
| Balance at September 30, 2022 |
|
$ |
78,790 |
|
|
$ |
6,688 |
|
|
|
19 |
|
|
$ |
19 |
|
|
|
618,463 |
|
|
$ |
6,185 |
|
|
$ |
9,611,382 |
|
|
$ |
9,703,064 |
|
|
$ |
136,784 |
|
|
$ |
9,839,848 |
|
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)
(in thousands)
| | | Nine Months Endeds September 30, | |
| | | 2022 | | | 2021 | |
| | | | | | | | | |
| Cash flow from operating activities: | | | | | | | | |
| Net income | | $ | 161,603 | | | $ | 767,747 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 380,324 | | | | 261,687 | |
| Impairment charges | | | 21,758 | | | | 954 | |
| Early extinguishment of debt charges | | | 7,658 | | | | - | |
| Equity award expense | | | 20,185 | | | | 17,971 | |
| Gain on sale of properties | | | (10,958 | ) | | | (30,841 | ) |
| Loss/(gain) on marketable securities, net | | | 215,194 | | | | (542,510 | ) |
| Equity in income of joint ventures, net | | | (94,060 | ) | | | (54,095 | ) |
| Equity in income of other investments, net | | | (15,491 | ) | | | (10,365 | ) |
| Distributions from joint ventures and other investments | | | 66,875 | | | | 54,188 | |
| Change in accounts and notes receivable, net | | | (10,950 | ) | | | (3,644 | ) |
| Change in accounts payable and accrued expenses | | | 33,534 | | | | (55,569 | ) |
| Change in other operating assets and liabilities, net | | | (69,916 | ) | | | 11,747 | |
| Net cash flow provided by operating activities | | | 705,756 | | | | 417,270 | |
| | | | | | | | | |
| Cash flow from investing activities: | | | | | | | | |
| Acquisition of operating real estate | | | (161,171 | ) | | | (102,682 | ) |
| Improvements to operating real estate | | | (128,592 | ) | | | (112,792 | ) |
| Acquisition of Weingarten Realty Investors, net of cash acquired of $56,465 | | | - | | | | (263,973 | ) |
| Investment in marketable securities | | | (3,348 | ) | | | - | |
| Proceeds from sale of marketable securities | | | 800 | | | | 339 | |
| Investment in cost method investment | | | (4,497 | ) | | | - | |
| Investments in and advances to real estate joint ventures | | | (80,496 | ) | | | (7,546 | ) |
| Reimbursements of investments in and advances to real estate joint ventures | | | 31,540 | | | | 9,113 | |
| Investments in and advances to other investments | | | (12,669 | ) | | | (59,504 | ) |
| Reimbursements of investments in and advances to other investments | | | 29,444 | | | | 48,420 | |
| Investment in other financing receivable | | | (75,063 | ) | | | (26,897 | ) |
| Collection of mortgage loans receivable | | | 38,232 | | | | 3,742 | |
| Proceeds from sale of properties | | | 146,218 | | | | 154,017 | |
| Net cash flow used for investing activities | | | (219,602 | ) | | | (357,763 | ) |
| | | | | | | | | |
| Cash flow from financing activities: | | | | | | | | |
| Principal payments on debt, excluding normal amortization of rental property debt | | | (157,928 | ) | | | (136,222 | ) |
| Principal payments on rental property debt | | | (7,244 | ) | | | (7,481 | ) |
| Proceeds from mortgage loan financings | | | 19,000 | | | | - | |
| Proceeds from issuance of unsecured notes | | | 1,250,000 | | | | 500,000 | |
| Proceeds from unsecured revolving credit facility, net | | | 128,000 | | | | - | |
| Repayments of unsecured notes | | | (1,449,060 | ) | | | - | |
| Financing origination costs | | | (19,273 | ) | | | (7,017 | ) |
| Payment of early extinguishment of debt charges | | | (6,955 | ) | | | - | |
| Contributions from noncontrolling interests | | | 891 | | | | - | |
| Redemption/distribution of noncontrolling interests | | | (59,361 | ) | | | (7,558 | ) |
| Dividends paid | | | (396,182 | ) | | | (270,956 | ) |
| Proceeds from issuance of stock, net | | | 14,926 | | | | 79,433 | |
| Repurchase of preferred stock | | | (3,441 | ) | | | - | |
| Shares repurchased for employee tax withholding on equity awards | | | (13,549 | ) | | | (20,787 | ) |
| Change in tenants' security deposits | | | 2,890 | | | | 1,364 | |
| Net cash flow (used for)/provided by financing activities | | | (697,286 | ) | | | 130,776 | |
| | | | | | | | | |
| Net change in cash, cash equivalents and restricted cash | | | (211,132 | ) | | | 190,283 | |
| Cash, cash equivalents and restricted cash, beginning of the period | | | 334,663 | | | | 293,188 | |
| Cash, cash equivalents and restricted cash, end of the period | | $ | 123,531 | | | $ | 483,471 | |
| | | | | | | | | |
| Interest paid during the period, including payment of early extinguishment of debt charges of $6,955 and $0, respectively (net of capitalized interest of $445 and $482, respectively) | | $ | 186,193 | | | $ | 122,297 | |
The accompanying notes are an integral part of these condensed consolidated financial statements.
KIMCO REALTY CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Business and Organization
Kimco Realty Corporation, a Maryland corporation, is North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers, including 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 generally 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 elected status as a Real Estate Investment Trust (a “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. As a REIT, with respect to each taxable year, the Company must distribute at least 90 percent of its taxable income (excluding capital gain) and does not pay federal income taxes on the amount distributed to its shareholders. The Company is not generally subject to federal income taxes if it distributes 100 percent of its taxable income. Most states where the Company holds investments in real estate conform to the federal rules recognizing REITs. Certain subsidiaries have made a joint election with the Company to be treated as taxable REIT subsidiaries (“TRSs”), which permit the Company to engage in certain business activities which 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.
See Footnote 3 of the Company’s Condensed Consolidated Financial Statements for further disclosure regarding the Merger transaction.
Economic Conditions and the COVID-19 Pandemic
The economy continues to face several issues including the lack of qualified employees, inflation risk, supply chain issues and new coronavirus disease 2019 (“COVID-19”) variants, which could impact the Company and its tenants. In response to the rising 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 Company and its tenants. In addition to the rising rate of inflation, 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 Company continues to monitor economic, financial, and social conditions, including the effects of the COVID-19 pandemic, and will assess its asset portfolio for any impairment indicators.
2. Summary of Significant Accounting Policies
Principles of Consolidation
The accompanying Condensed Consolidated Financial Statements include the accounts of the Company. 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 10-K, as certain disclosures in this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022 that would duplicate those included in the 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 (see Footnote 22 of the Company’s Condensed Consolidated Financial Statements).
New Accounting Pronouncements
The following table represents an Accounting Standards Update (“ASU”) to the FASB’s ASCs that, as of September 30, 2022, are 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. |
| 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, 2023; Early adoption permitted | The adoption of this ASU is not expected to have a material impact on the Company’s financial position and/or results of operations. |
The following ASU to the FASB’s ASC has been adopted by the Company as of the date listed:
| ASU | Description | Adoption Date | Effect on the financial statements or other significant matters |
| ASU 2021-05, Lessors – Certain Leases with Variable Lease Payments (Topic 842) | This ASU amends the lessor lease classification in ASC 842 for leases that include variable lease payments that are not based on an index or rate. Under the amended guidance, lessors will classify a lease with variable payments that do not depend on an index or rate as an operating lease if the lease would have been classified as a sales-type lease or a direct financing lease under the previous ASU 842 classification criteria and sales-type or direct financing lease classification would result in a Day 1 loss. | January 1, 2022 | The adoption of this ASU did not impact the Company’s financial position and/or results of operations. |
3. Weingarten Merger
On August 3, 2021, Weingarten merged with and into the Company, with the Company continuing as the surviving public company. 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:
| | ● | Acquired 149 properties, including 30 held through joint venture programs. |
| | ● | Assumed senior unsecured notes of $1.5 billion (including $95.6 million in fair market value adjustments) and mortgage debt of $317.7 million (including $11.0 million in fair market value adjustments) encumbering 16 operating properties. |
| | ● | Issued 179.9 million shares of common stock valued at $3.8 billion and paid cash consideration of $0.3 billion. |
Revenues from rental properties, net and Net income available to the Company's common shareholders in the Company's Condensed Consolidated Statements of Income includes revenues of $73.5 million and net income of $9.9 million (excluding $50.2 million of merger related charges), respectively, resulting from the Merger during the nine months ended September 30, 2021.
Pro forma Information
The pro forma financial information set forth below is based upon the Company’s historical Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2021, adjusted to give effect as if the Merger occurred as of January 1, 2020. The pro forma financial information is presented for informational purposes only and may not be indicative of what actual results of income would have been, nor does it purport to represent the results of income for future periods. (Amounts presented in millions, except per share figures).
| | | Three Months Ended | | | Nine Months Ended | |
| | | September 30, 2021 | | | September 30, 2021 | |
| Revenues from rental properties, net | | $ | 401.4 | | | $ | 1,186.4 | |
| Net income (1) | | $ | 561.4 | | | $ | 854.3 | |
| Net income available to the Company’s common shareholders (1) | | $ | 553.4 | | | $ | 828.3 | |
| Net income available to the Company’s common shareholders per common share: | | | | | | | | |
| Basic (1) | | $ | 0.91 | | | $ | 1.35 | |
| Diluted (1) | | $ | 0.90 | | | $ | 1.34 | |
| | | | | | | | | |
| (1) | The pro forma earnings for the three and nine months ended September 30, 2021 were adjusted to exclude $47.0 million and $50.2 million of merger costs, respectively. |
4. Real Estate
Acquisitions
During the nine months ended September 30, 2022, the Company acquired the following operating properties, through direct asset purchases (in thousands):
| Property Name | Location | Month Acquired | | Purchase Price | | | GLA* | |
| Ranchos San Marcos Parcel | San Marcos, CA | Jan-22 | | $ | 2,407 | | | | 6 | |
| Columbia Crossing Parcel | Columbia, MD | Feb-22 | | | 16,239 | | | | 60 | |
| Oak Forest Parcel | Houston, TX | Jun-22 | | | 3,846 | | | | 4 | |
| Devon Village (1) | Devon, PA | Jun-22 | | | 733 | | | | - | |
| Fishtown Crossing | Philadelphia, PA | Jul-22 | | | 39,291 | | | | 133 | |
| Carman’s Plaza | Massapequa, NY | Jul-22 | | | 51,423 | | | | 195 | |
| Pike Center (1) | Rockville, MD | Jul-22 | | | 21,850 | | | | - | |
| | | | | $ | 135,789 | | | | 398 | |
* Gross leasable area ("GLA")
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 during the nine months ended September 30, 2022, is as follows (in thousands):
| | | Allocation as of September 30, 2022 | | | Weighted Average
Amortization Period (in Years) | |
| Land | | $ | 64,480 | | | | n/a | |
| Building | | | 58,800 | | | | 50.0 | |
| Building improvements | | | 4,480 | | | | 45.0 | |
| Tenant improvements | | | 4,963 | | | | 6.9 | |
| Solar panels | | | 2,308 | | | | 20.0 | |
| In-place leases | | | 7,249 | | | | 6.4 | |
| Above-market leases | | | 199 | | | | 3.8 | |
| Below-market leases | | | (6,690 | ) | | | 14.2 |