Kimco Realty (KIM) will reinstate its quarterly dividend with a payment of $0.10 per share in the third quarter of 2020. Earlier this year the REIT suspended its quarterly dividend because of the COVID-19 pandemic. The shopping center REIT last raised its quarterly dividend by 3.7 percent to $0.28 per share in 2017.

The next dividend is payable on September 24, 2020 to shareholders of record on September 10, 2020. An annual dividend rate of 40 cents will yield 3.2% at a stock price of $12.51.

In the company's press release announcing this dividend Kimco notes that through the second quarter of 2020, Kimco had paid cash dividends totaling $0.56 per share on its common shares in 2020. The company subsequently suspended its dividend on common shares due to the economic uncertainties related to COVID-19, with the intention of reinstating it at some point during 2020 to maintain compliance with REIT taxable income distribution requirements.

“In light of the company’s financial performance, including the improving level of rent collections, excellent liquidity position and the recent affirmation of our investment grade credit rating, this dividend declaration reflects the Board’s confidence in the strength and quality of our portfolio and its ability to provide successful last mile fulfillment opportunities for our tenants and shoppers," stated Conor Flynn, Kimco's Chief Executive Officer in the company's press release dated September 1, 2020. “Declaring our dividend at this initial level accounts for the dividends already paid in 2020 and reflects continued focus on maintaining a strong balance sheet and financial flexibility. The Board will continue to monitor Kimco’s financial performance and intends to declare additional dividends on common shares in 2020, as needed, of at least the minimum amount required to maintain compliance with Kimco’s REIT taxable income distribution requirements. We expect to establish a more normalized and well-covered dividend level based on our adjusted funds from operations and REIT taxable income in 2021.”

Kimco will now pay an estimated annual dividend of $173 million to shareholders, down from $484 million based on the $0.28 per share quarterly dividend paid by the REIT last year before the dividend suspension and subsequent dividend cut.

Kimco Realty Corp. is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y. The company owns and operates open-air shopping centers in North America. Kimco has specialized in acquisitions, development and management of shopping centers primarily concentrated in the top major metropolitan markets. Kimco Realty Corp had been paying a quarterly dividend to shareholders every year since 1992 before the suspension in 2020. The quarterly dividend was reinstated by Kimco in September 2020.