Kimco Realty® Announces Fourth Quarter and Full Year 2021 Results

JERICHO, N.Y.--(BUSINESS WIRE)--February 10, 2022--Kimco Realty® (NYSE: KIM), North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers and mixed-use assets, today reported results for the fourth quarter and full year ended December 31, 2021. For the three months ended December 31, 2021 and 2020, Kimco Realty's net income available to the company’s common shareholders was $0.13 per diluted share and $0.45 per diluted share, respectively.

Fourth Quarter Highlights:

• Produced Funds From Operations (FFO) of $0.39 per diluted share
• Grew pro-rata portfolio occupancy 30 basis points sequentially to 94.4%
• Sequentially grew pro-rata anchor occupancy 20 basis points to 97.1% and small shop occupancy 40 basis points to 87.7%
• Generated new cash pro-rata leasing spreads of 14.1% on comparable spaces
• Leased 2.1 million square feet during the quarter and over 8.7 million square feet during 2021
• Reported a 12.9% increase in Same-property Net Operating Income (NOI), including redevelopments and the former Weingarten Realty (WRI) portfolio, during the fourth quarter over the same period a year ago
• Lowered Net Debt to EBITDA on a look-through basis, which includes outstanding preferred stock and the company’s pro-rata share of joint venture debt, to 6.6x, representing the lowest reported level since the company began disclosing this metric
• Investment in Albertsons Companies Inc. (NYSE: ACI) common stock valued at over $1.2 billion at quarter end
• Subsequent to year end, the company announces new appointments to its senior leadership team.

“We are extremely proud to have completed another quarter with leasing volume exceeding two million square feet, bringing leasing for the year to 8.7 million square feet,” stated Kimco Realty CEO Conor Flynn. “Our ongoing commitment to leasing our open-air, last-mile, grocery-anchored centers and mixed-use assets in growing markets is resulting in solid occupancy gains and growth in FFO. The ongoing challenges of COVID notwithstanding, the successful merger with WRI combined with unprecedent levels of tenant demand driven by the critical importance of bricks and mortar shopping for profitable last-mile fulfillment and distribution should help drive continued strong results in 2022 and beyond, and further enhance shareholder value.

Financial Results:

Fourth Quarter 2021

Net income available to the company’s common shareholders for the fourth quarter of 2021 was $75.3 million, or $0.13 per diluted share, compared to $194.9 million, or $0.45 per diluted share, for the fourth quarter of 2020. The year-over-year change is primarily attributable to a $187.5 million reduction in the gain on marketable securities, primarily as a result of the mark-to-market fluctuations on 39.8 million shares of common stock of Albertsons Companies, Inc. (NYSE: ACI) held by the company. This was partially offset by the positive impact associated with the integration of WRI for a full quarter since the successful merger completion in August of 2021.

Nareit FFO was $240.1 million, or $0.39 per diluted share, for the fourth quarter of 2021 compared to $133.0 million, or $0.31 per diluted share, for the fourth quarter 2020.

Full Year 2021

Net income available to the company’s common shareholders was $818.6 million, or $1.60 per diluted share, for the full year 2021 compared to $975.4 million, or $2.25 per diluted share, for the full year 2020.

Nareit FFO was $706.8 million, or $1.38 per diluted share, for the full year 2021 and includes $47.2 million, or $0.09 per diluted share, of net merger-related charges and pension valuation adjustments associated with WRI. For the full year 2020, Nareit FFO was $503.7 million, or $1.17 per diluted share.

A reconciliation of net income available to the company’s common shareholders to Nareit FFO is provided in the tables accompanying this press release.

Fourth Quarter 2021 Operating Results:

• Pro-rata portfolio occupancy ended the quarter at 94.4%, representing an increase of 50 basis points year-over-year and 30 basis points sequentially. The spread between Kimco Realty’s leased (reported) occupancy vs. economic occupancy was 270 basis points at the end of the period, compressing 30 basis points sequentially.
• Ended the quarter with pro-rata anchor occupancy at 97.1%, up 40 basis points year-over-year and 20 basis points sequentially, and small shop occupancy at 87.7%, an increase of 160 basis points year-over-year and 40 basis points sequentially.
• Signed 438 leases totaling 2.1 million square feet with blended pro-rata rental-rate spreads on comparable spaces increasing 8.1%, and with rental rates for new leases up 14.1% and renewals and options growing 7.0%.
• Same-property NOI, including redevelopments, increased 12.9% for the fourth quarter of 2021 over the comparable period in 2020. A reconciliation of net income available to the company’s common shareholders to Same-property NOI is provided in the tables accompanying this press release.

Fourth Quarter 2021 Transaction Activities:

• As previously announced, Kimco Realty acquired the remaining 70% interest in a portfolio of six Publix-anchored, Sunbelt shopping centers from the company’s existing joint venture partner, Jamestown, for a gross purchase price of $425.8 million. The company subsequently entered into a joint venture partnership with Blackstone Real Estate Income Trust, Inc. (“BREIT”) under which Kimco Realty and BREIT each will own 50% of the portfolio, with the company continuing to manage the properties on behalf of the joint venture.
• Acquired the remaining 85% interest in Anaheim Plaza and Brookvale Shopping Center, two grocery-anchored shopping centers located in California from an existing joint venture partner for a gross purchase price of $134.0 million. Kimco Realty’s pro-rata share of the sales price was $113.9 million.
• Purchased the remaining 10% interest in Centro Arlington, a 366-unit multi-family, mixed-use property that is anchored by a Harris Teeter grocer in Arlington, Virginia from the existing joint venture partner for a pro-rata price of $26.0 million.
• Provided $15.0 million of mezzanine funding towards the acquisition of The Markets at Town Center, a 254,000-square-foot grocery-anchored center located in Jacksonville, Florida.
• Separately sold two land parcels and four shopping centers, totaling 380,000 square-feet, for a total of $65.8 million. Kimco Realty’s share of the sales price was $14.7 million.
• Acquired two adjacent parcels at existing centers for a gross purchase price of $20.3 million. Kimco Realty’s share of the purchase price was $13.8 million.

Fourth Quarter 2021 Capital Market Activities:

• Lowered Net Debt to EBITDA on a consolidated and look-through basis (which includes outstanding preferred stock and the company’s pro-rata share of joint venture debt) to 6.1x and 6.6x, respectively.
  
  A reconciliation of Net Income to EBITDA is provided in the tables accompanying this press release.
  
  
• Ended the fourth quarter with over $2.3 billion of immediate liquidity, including full availability under the company’s $2.0 billion unsecured revolving credit facility, and $334.7 million of cash and cash equivalents. In addition, Kimco Realty’s investment in ACI, which is subject to certain lock-up provisions, was valued at over $1.2 billion at year-end.
• Subsequently, the company’s board of directors approved an extension of Kimco Realty’s existing stock repurchase program for up to $300.0 million of shares of the company’s common stock of which $224.9 million remains available. The repurchase program is now scheduled to expire on February 29, 2024, unless further extended or cancelled by the company’s board of directors.

Under the repurchase program, repurchases can be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with the rules of the Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. The repurchase program does not obligate the company to acquire any particular amount of common stock, and the repurchase program may be suspended or discontinued at any time at the company’s discretion.

Senior Leadership Appointments:

The company has elevated several members of its senior leadership team in recognition of their distinguished service, successful oversight of key strategic initiatives and commitment to maintaining Kimco Realty’s standing as a best-in-class organization. These appointments also highlight the depth and breadth of the company’s strong management team:

• Leah Landro – Executive Vice President and Chief Human Resources Officer
• Tom Taddeo - Executive Vice President and Chief Information Officer
• Kathleen Thayer – Senior Vice President, Corporate Accounting and Assistant Treasurer
• Will Teichman – Senior Vice President, Strategic Operations

All appointments are effective immediately.

Dividend Declarations:

As previously announced:

• Kimco Realty’s board of directors raised the quarterly cash dividend on common shares 11.8% by declaring a dividend of $0.19 per common share, payable on March 24, 2022, to shareholders of record on March 10, 2022.
• The board of directors also declared quarterly dividends with respect to each of the company’s Class L and Class M series of cumulative redeemable preferred shares. These dividends on the preferred shares will be paid on April 15, 2022 to shareholders of record on April 1, 2022.

2022 Full Year Outlook:

Net Income available to common shareholders (per diluted share):	$0.51 to $0.55
Nareit FFO (per diluted share)*:	$1.46 to $1.50

*The tables accompanying this press release provide a reconciliation for this forward-looking non-GAAP measure.

The company’s full year outlook is based on the following assumptions:

• Same-property NOI growth will be positive
• Credit loss on rental revenue of 100 basis points at the midpoint
• No income attributable to cash basis tenants from collection of prior period accounts receivables or the reinstatement of straight-line rent receivables
• Total property acquisitions (including structured investments), net of dispositions, of $100 million
• No redemption of preferred stock outstanding that becomes callable or early prepayment charges of maturing debt
• No monetization of ACI shares. Kimco Realty anticipates it will monetize a portion of its ACI investment during 2022 but prefers not to make any assumption as to the timing or amount in order to maintain maximum optionality. The company will update its 2022 outlook as appropriate
• No issuance of common equity

Conference Call and Supplemental Materials

Kimco Realty will hold its quarterly conference call on Thursday, February 10, 2022, at 8:30 a.m. Eastern Time (ET). The call will include a review of the company’s fourth quarter and full year results as well as a discussion of the company’s strategy and expectations for the future. To participate, dial 1-888-317-6003 or 1-412-317-6061 for international calls, (Passcode: 9108870).

Audio replay from the conference call will be available on Kimco Realty’s website at investors.kimcorealty.com through Tuesday, May 10, 2022.

About Kimco Realty®

Kimco Realty® (NYSE:KIM) is a real estate investment trust (REIT) headquartered in Jericho, N.Y. that is North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers and mixed-use assets. The company’s portfolio is primarily concentrated in the first-ring suburbs of the top major metropolitan markets, including those in high-barrier-to-entry coastal markets and rapidly expanding Sun Belt cities, with a tenant mix focused on essential, necessity-based goods and services that drive multiple shopping trips per week. Kimco Realty is also committed to leadership in environmental, social and governance (ESG) issues and is a recognized industry leader in these areas. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center ownership, management, acquisitions, and value enhancing redevelopment activities for more than 60 years. As of December 31, 2021, the company owned interests in 541 U.S. shopping centers and mixed-use assets comprising 93 million square feet of gross leasable space. For further information, please visit www.kimcorealty.com

The company announces material information to its investors using the company’s investor relations website (investors.kimcorealty.com), SEC filings, press releases, public conference calls, and webcasts. The company also uses social media to communicate with its investors and the public, and the information the company posts on social media may be deemed material information. Therefore, the company encourages investors, the media, and others interested in the company to review the information that it posts on the social media channels, including Facebook (www.facebook.com/KimcoRealty), Twitter (www.twitter.com/kimcorealty), YouTube (www.youtube.com/kimcorealty) and LinkedIn (www.linkedin.com/company/kimco-realty-corporation). The list of social media channels that the company uses may be updated on its investor relations website from time to time.

Safe Harbor Statement

This communication contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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,” “anticipate,” “estimate,” “project,” “will,” “target,” “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 inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (iv) the Company’s ability to raise capital by selling its assets, (v) changes in governmental laws and regulations and management’s ability to estimate the impact of such changes, (vi) the level and volatility of interest rates and management’s ability to estimate the impact thereof, (vii) pandemics or other health crises, such as coronavirus disease 2019 (“COVID-19”), (viii) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and risks related to acquisitions not performing in accordance with our expectations, (ix) the Company’s failure to realize the expected benefits of the merger with Weingarten Realty Investors (the “Merger”), (x) significant transaction costs and/or unknown or inestimable liabilities related to the Merger, (xi) the risk of shareholder litigation in connection with the Merger, including any resulting expense, (xii) risks related to future opportunities and plans for the combined company, including the uncertainty of expected future financial performance and results of the combined company following the Merger, (xiii) 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, (xiv) valuation and risks related to the Company’s joint venture and preferred equity investments, (xv) valuation of marketable securities and other investments, including the shares of Albertsons Companies, Inc. common stock held by the Company, (xvi) increases in operating costs, (xvii) changes in the dividend policy for the Company’s common and preferred stock and the Company’s ability to pay dividends at current levels, (xviii) 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, (xix) impairment charges, (xx) unanticipated changes in the Company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity and (xxi) the other risks and uncertainties identified under Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year-ended December 31, 2020, as supplemented by the risks and uncertainties identified under Item 1A, “Risk Factors” in subsequently filed Annual Report and Quarterly Reports on Form 10-Q. 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 Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that the Company files with the Securities and Exchange Commission (“SEC”).

Condensed Consolidated Balance Sheets
(in thousands, except share information)
(unaudited)
			December 31, 2021			December 31, 2020
Assets:
	Real estate, net of accumulated depreciation and amortization
		of $3,010,699 and $2,717,114 respectively	$	15,035,900		$	9,346,041
	Real estate under development			5,672			5,672
	Investments in and advances to real estate joint ventures			1,006,899			590,694
	Other investments			122,015			117,140
	Cash and cash equivalents			334,663			293,188
	Marketable securities			1,211,739			706,954
	Accounts and notes receivable, net			254,677			219,248
	Operating lease right-of-use assets, net			147,458			102,369
	Other assets			340,176			233,192
Total assets			$	18,459,199		$	11,614,498
Liabilities:
	Notes payable, net		$	7,027,050		$	5,044,208
	Mortgages payable, net			448,652			311,272
	Dividends payable			5,366			5,366
	Operating lease liabilities			123,779			96,619
	Other liabilities			730,690			470,995
Total liabilities				8,335,537			5,928,460
Redeemable noncontrolling interests				13,480			15,784
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 616,658,593 and 432,518,743 shares, respectively		6,167			4,325
	Paid-in capital			9,591,871			5,766,511
	Retained earnings / (cumulative distributions in excess of net income)			299,115			(162,812	)
	Accumulated other comprehensive income			2,216			-
Total stockholders' equity				9,899,389			5,608,044
	Noncontrolling interests			210,793			62,210
Total equity				10,110,182			5,670,254
Total liabilities and equity			$	18,459,199		$	11,614,498

Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
		Three Months Ended December 31,								Year Ended December 31,
			2021				2020			2021 (3)					2020
Revenues
	Revenues from rental properties, net	$	420,405			$	266,316			$	1,349,702			$	1,044,888
	Management and other fee income		4,249				3,125				14,883				13,005
	Total revenues		424,654				269,441				1,364,585				1,057,893
Operating expenses
	Rent		(4,067	)			(2,841	)			(13,773	)			(11,270	)
	Real estate taxes		(52,132	)			(38,928	)			(181,256	)			(157,661	)
	Operating and maintenance		(77,402	)			(49,846	)			(222,882	)			(174,038	)
	General and administrative		(28,985	)			(20,901	)			(104,121	)			(93,217	)
	Impairment charges		(2,643	)			(3,115	)			(3,597	)			(6,624	)
	Merger charges		-				-				(50,191	)			-
	Depreciation and amortization		(133,633	)			(74,295	)			(395,320	)			(288,955	)
	Total operating expenses		(298,862	)			(189,926	)			(971,140	)			(731,765	)
Gain on sale of properties			-				787				30,841				6,484
Operating income			125,792				80,302				424,286				332,612
Other income/(expense)
	Other income, net		7,976				3,725				19,810				4,119
	(Loss)/gain on marketable securities, net		(37,347	)			150,108				505,163				594,753
	Gain on sale of cost method investment		-				-				-				190,832
	Interest expense		(57,479	)			(45,887	)			(204,133	)			(186,904	)
	Early extinguishment of debt charges		-				-				-				(7,538	)
Income before income taxes, net, equity in income of joint ventures, net,
	and equity in income from other investments, net		38,942				188,248				745,126				927,874
	Provision for income taxes, net		(483	)			(496	)			(3,380	)			(978	)
	Equity in income of joint ventures, net		30,683				12,314				84,778				47,353
	Equity in income of other investments, net		12,807				1,733				23,172				28,628
Net income			81,949				201,799				849,696				1,002,877
	Net income attributable to noncontrolling interests		(268	)			(565	)			(5,637	)			(2,044	)
Net income attributable to the company			81,681				201,234				844,059				1,000,833
	Preferred dividends		(6,354	)			(6,354	)			(25,416	)			(25,416	)
Net income available to the company's common shareholders		$	75,327			$	194,880			$	818,643			$	975,417
Per common share:
	Net income available to the company's common shareholders: (2)
	Basic	$	0.13			$	0.46			$	1.61			$	2.26
	Diluted (1)	$	0.13			$	0.45			$	1.60			$	2.25
Weighted average shares:
	Basic		614,150				430,103				506,248				429,950
	Diluted		616,612				431,708				511,385				431,633

(1)		Reflects the potential impact if certain units were converted to common stock at the beginning of the period. The impact of the conversion would have an antidilutive effect on net income and therefore have not been included. Adjusted for distributions on convertible units of $0 and $42 for the three months ended December 31, 2021 and 2020, respectively. Adjusted for distributions on convertible units of $3,087 and $161 for the year ended December 31, 2021 and 2020, respectively.
(2)		Adjusted for earnings attributable from participating securities of ($400) and ($1,244) for the three months ended December 31, 2021 and 2020, respectively. Adjusted for earnings attributed from participating securities of ($5,346) and ($6,347) for the year ended December 31, 2021 and 2020, respectively. Adjusted for the change in carrying amount of redeemable noncontrolling interest of $2,304 and $2,160 for the three months and year ended December 31, 2021 and 2020, respectively.
(3)		Includes the impact of the WRI merger from August 3, 2021.

Reconciliation of Net Income Available to the Company's Common Shareholders to
FFO Available to the Company's Common Shareholders (1)
(in thousands, except per share data)
(unaudited)
		Three Months Ended December 31,									Year Ended December 31,
			2021					2020			2021 (5)						2020
Net income available to the company's common shareholders		$	75,327				$	194,880			$	818,643				$	975,417
	Gain on sale of properties		-					(787	)			(30,841	)				(6,484	)
	Gain on sale of joint venture properties		(11,596	)				(30	)			(16,879	)				(48	)
	Depreciation and amortization - real estate related		132,797					73,578				392,095					285,596
	Depreciation and amortization - real estate joint ventures		15,949					9,658				51,555					40,331
	Impairment charges (including real estate joint ventures)		3,932					4,043				7,145					8,397
	Gain on sale of cost method investment		-					-				-					(190,832	)
	Profit participation from other investments, net		(9,824	)				2,210				(8,595	)				(13,665	)
	Loss/(gain) on marketable securities, net		37,347					(150,108	)			(505,163	)				(594,753	)
	(Benefit)/provision for income taxes (2)		(25	)				(74	)			2,152					1,426
	Noncontrolling interests (2)		(3,835	)				(337	)			(3,285	)				(1,710	)
FFO available to the company's common shareholders		$	240,072		(4	)	$	133,033			$	706,827		(4	)	$	503,675
Weighted average shares outstanding for FFO calculations:
Basic			614,150					430,103				506,248					429,950
	Units		3,878					666				2,627					639
	Dilutive effect of equity awards (3)		2,410					1,364				2,422					1,475
Diluted (3)			620,438					432,133				511,297					432,064
FFO per common share - basic		$	0.39				$	0.31			$	1.40				$	1.17
FFO per common share - diluted (3)		$	0.39				$	0.31			$	1.38				$	1.17

(1)		The company considers FFO to be an important supplemental measure of its 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 when reporting results. Comparison of the company's presentation of FFO 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.
(2)		Related to gains, impairments and depreciation on properties, where applicable.
(3)		Reflects the potential impact if certain units were converted to common stock at the beginning of the period. FFO available to the company’s common shareholders would be increased by $856 and $92 for the three months ended December 31, 2021 and 2020, respectively. FFO available to the company’s common shareholders would be increased by $1,053 and $309 for the year ended December 31, 2021 and 2020, respectively.
(4)		Includes $47.2 million, or $0.09 per diluted share, of net merger-related charges and pension valuation adjustments associated with WRI for the year ended December 31, 2021. In addition the three months ended December 31, 2021, includes WRI pension valuation adjustments of $3.0 million of income included in Other income, net.
(5)		Includes the impact of the WRI merger from August 3, 2021.

Reconciliation of Net Income Available to the Company's Common Shareholders
to Same Property NOI (1)(2)
(in thousands)
(unaudited)
			Three Months Ended December 31,								Year Ended December 31,
				2021				2020				2021				2020
Net income available to the Company's common shareholders			$	75,327			$	194,880			$	818,643			$	975,417
	Adjustments:
		Management and other fee income		(4,249	)			(3,125	)			(14,883	)			(13,005	)
		General and administrative		28,985				20,901				104,121				93,217
		Impairment charges		2,643				3,115				3,597				6,624
		Merger charges		-				-				50,191				-
		Depreciation and amortization		133,633				74,295				395,320				288,955
		Gain on sale of properties		-				(787	)			(30,841	)			(6,484	)
		Interest and other expense, net		49,503				42,162				184,323				190,323
		Loss/(gain) on marketable securities, net		37,347				(150,108	)			(505,163	)			(594,753	)
		Gain on sale of cost method investment		-				-				-				(190,832	)
		Provision for income taxes, net		483				496				3,380				978
		Equity in income of other investments, net		(12,807	)			(1,733	)			(23,172	)			(28,628	)
		Net income attributable to noncontrolling interests		268				565				5,637				2,044
		Preferred dividends		6,354				6,354				25,416				25,416
		WRI Same Property NOI (3)		-				80,288				-				-
		Non same property net operating income		(15,825	)			(7,623	)			(206,992	)			(22,605	)
		Non-operational expense from joint ventures, net		9,987				16,238				55,214				68,510
Same Property NOI			$	311,649			$	275,918			$	864,791			$	795,177

(1)		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. The company’s method of calculating Same Property NOI may differ from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
(2)		Amounts represent Kimco Realty's pro-rate share. Same Property NOI from properties acquired through the WRI merger are included in the quarter to date statistics but excluded from the year to date statistics.
(3)		Amounts for the three months ended December 31, 2020, represent the Same Property NOIs from WRI properties, not included in the Company's reported NOI.

Reconciliation of Diluted Net Income Available to Common Shareholders Per Common Share
to Diluted Funds From Operations Available to Common Shareholders Per Common Share
(unaudited)
		Actual					Projected Range
		2021 (4)					Full Year 2022
							Low			High
Diluted net income available to company's common shareholder
	per common share	$	1.60		(1	)	$	0.51		$	0.55
Gain on sale of properties			(0.06	)				-			(0.03	)
Gain on sale of joint venture properties			(0.03	)				-			(0.01	)
Depreciation & amortization - real estate related			0.77					0.85			0.89
Depreciation & amortization - real estate joint ventures			0.10					0.10			0.11
Impairment charges (including real estate joint ventures)			0.01					-			-
Profit participation from other investments, net			(0.02	)				-			(0.01	)
Gain on marketable securities, net			(0.98	)				-			-
Noncontrolling interests (2)			(0.01	)				-			-
FFO per diluted common share		$	1.38		(3	)	$	1.46		$	1.50

(1)		Reflects the potential impact if certain units were converted to common stock at the beginning of the period. The impact of the conversion would have an antidilutive effect on net income and therefore have not been included. Adjusted for distributions on convertible units of $3.087 million for the year ended December 31, 2021. Adjusted for earnings attributed from participating securities of ($5.346) million for the year ended December 31, 2021. Adjusted for the change in carrying amount of redeemable noncontrolling interest of $2.304 million for the year ended December 31, 2021.
(2)		Related to gains, impairments and depreciation on properties, where applicable.
(3)		Includes $47.2 million, or $0.09 per diluted share, of net merger-related charges and pension valuation adjustments associated with WRI for the year ended December 31, 2021. In addition the three months ended December 31, 2021, includes WRI pension valuation adjustments of $3.0 million of income included in Other income, net.
(4)		Includes the impact of the WRI merger from August 3, 2021.

Reconciliation of Net Income to EBITDA
(in thousands)
(unaudited)
		Three Months Ended December 31,
			2021				2020
Net income		$	81,949			$	201,799
Interest			57,479				45,887
Depreciation and amortization			133,633				74,295
Gain on sale of properties			-				(787	)
Gain on sale of joint venture properties			(11,596	)			(30	)
Impairment charges (including real estate joint ventures)			3,932				4,043
Profit participation from other investments, net			(9,824	)			2,210
Pension valuation adjustment			(2,948	)			-
Loss/(gain) on marketable securities, net			37,347				(150,108	)
Provision for income taxes			483				496
Consolidated EBITDA		$	290,455			$	177,805
Consolidated EBITDA		$	290,455			$	177,805
Pro-rata share of interest expense - real estate joint ventures			4,690				5,297
Pro-rata share of depreciation and amortization - real estate joint ventures			15,949				9,658
EBITDA including pro-rata share - joint ventures		$	311,094			$	192,760
Consolidated Debt		$	7,475,702			$	5,355,480
Consolidated Cash			334,663				293,188
Consolidated Net Debt		$	7,141,039			$	5,062,292
Consolidated Net Debt		$	7,141,039			$	5,062,292
Prorata Share of debt			680,052				606,144
Liquidation preference for preferreds			489,500				489,500
Pro-rata share of cash			(47,920	)			(40,198	)
Net Debt including pro-rata share - joint ventures		$	8,262,671			$	6,117,738
Annualized Consolidated EBITDA		$	1,161,824			$	711,220
Net Debt to Consolidated EBITDA		6.1x				7.1x
Annualized EBITDA including pro-rata share - joint ventures		$	1,244,376			$	771,040
Net Debt including pro-rata share - joint ventures to EBITDA including pro-rata share joint ventures		6.6x				7.9x