Kimco Realty 3Q Profit Falls 68%, Co. Cuts Year View

Real-estate investment trusts have been plagued with rising vacancies and difficulties refinancing debt. Kimco is moving to focus on its core operations, while reducing its businesses such as funds management, merchant building and joint ventures.

The company's earnings were $40.1 million, or 7 cents a share, down from $ 108.6 million, or 34 cents a share, a year earlier. Funds from operations, or FFO, a key measure of profitability for REITs, fell to 31 cents from 70 cents, excluding impairments and debt-repayment charges.

The latest quarter was hurt by a reduction of about $86 million in transaction-based income.

Revenue from rental properties rose 1% to $191.9 million.

Analysts surveyed by Thomson Reuters projected earnings of 9 cents, FFO of 31 cents and revenue of $188 million.

In the U.S., Kimco executed 426 leases totaling 1.7 million square feet, up 42% on a square-footage basis from a year earlier and 18% from the second quarter.

Kimco shares closed at $12.48 and were inactive after-hours. The stock is down 32% this year.

-By Jay Miller, Dow Jones Newswires; 212-416-2355; jay.miller@dowjones.com

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  11-04-091743ET
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