Kimco Cuts New US Developments

NEW HYDE PARK, NY-Kimco Realty Corp. is cutting back on its US developments this year and is steering away from mixed-use, due to uncertainty in the economy, executives said during their fourth-quarter earnings call. “It’s fair to say it is significantly slower than it was at this time last year,” said David Henry, Kimco’s chief investment officer. “We’re screening opportunities a little more selectively.”

The move comes after a quarter in which FFO was $136.2 million, down from $147.8 million during the same year-ago period. Net income dropped to $72.1 million, from last year’s $129 million.

However, the company posted an occupancy rate of 96.3% during the period, the highest in the company’s history. And Henry stressed that he is not overly concerned about the retail climate because the company’s portfolio is mainly made up of everyday service tenants that consumers frequent more as a necessity than a luxury.