Glenn G. Cohen
Executive Vice President & Chief Financial Officer at Kimco Realty
Thanks, Ross, and good morning.
2024 is off to a strong and active start. As Conor mentioned, our first quarter results are highlighted by solid leasing activity, double-digit leasing spreads and robust same-site NOI growth. These positive operating metrics drove our strong FFO per share growth, excluding merger costs. All our metrics are inclusive of the $2.3 billion RPT acquisition, which we completed on the first business day of 2024. While we are providing insight on the RPT contribution for the first quarter, we do not plan to continue breaking out that performance as operations are fully integrated.
Now, for some details on our first quarter results. FFO was $261.8 million or $0.39 per diluted share, which includes merger charges of $25.2 million or $0.04 per diluted share. Our strategic and timely acquisition of RPT resulted in several significant contributors to our improved performance, primarily our higher pro-rata NOI. Importantly, RPT is running ahead of all our underwriting expectations as Conor highlighted. Excluding the merger charges, FFO would have been $0.43 per diluted share for the first quarter as compared to $238.1 million or $0.39 per diluted share for the first quarter last year, representing a 10.3% per share increase. The primary driver of our improved performance was our higher pro-rata NOI of $53.7 million, of which $38 million was generated by the RPT sites. Pro-rata NOI also benefited from higher minimum rents coming from commencements from the signed, not occupied, pipeline and lower credit loss.
Credit loss for the first-quarter 2024 was 62 basis points as compared to 92 basis points for the first quarter last year. In addition, included in the NOI increase is GAAP income of $1.1 million from the RPT acquisition related to straight-line and above and below market rent amortization. FFO also benefited from higher interest income of $7.4 million attributable to the higher cash balances during the quarter. We view this as a non-recurring item and do not expect this to continue for the remainder of the year, as we have significantly utilized most of our cash in the first [Phonetic] quarter towards the closing of the RPT acquisition and debt reduction.
These increases were offset by greater pro-rata interest expense of $14.6 million, resulting from the higher interest rate on the $646 million of bonds that were recently refinanced, lower fair market value amortization related to the former Weingarten bonds and higher rates on the floating rate debt in our joint ventures. Our FFO for the first quarter also includes about $0.01 per share of other non-recurring income items, with a one-time benefit of $2.4 million in below market rents from two tenants that vacated early and $2.5 million of other income. It was a very active quarter from the balance sheet perspective, primarily resulting from the RPT acquisition, much of which was already addressed on our last earnings call.
Just to briefly summarize, we issued 53 million common shares and 953,000 OP units and replaced RPT's 7.25% convertible preferred stock with a liquidation value of $92.5 million, with a new Kimco convertible preferred issuance with similar terms. We also repaid RPT's $130 million revolving credit facility and their $514 million of private placement notes from cash on our balance sheet; amended and assumed $310 million of RPT term loans, which have staggered maturities from 2026 to 2028 at a blended weighted average rate of 4.77%; and issued a new $200 million term-loan with a final maturity in 2029 at a fixed-rate of 4.57%.
As previously mentioned, we monetized our remaining shares in Albertsons earlier in the quarter, receiving nearly $300 million in proceeds and recorded a $72 million tax provision on the gain. At the end of the first quarter, our liquidity position remains very strong, with over $2 billion of immediate availability and no remaining debt maturities for the balance of the year. Our balance sheet further strengthened, as the Company's leverage metrics improved once again. We ended the first quarter with a consolidated net debt-to-EBITDA ratio of 5.3 times and on a look through basis, including pro-rata share of joint venture debt and perpetual preferred stock outstanding, of 5.6 times. The look through metric of 5.6 times is the best level Kimco has ever achieved and an improvement from the 6.2 times reported a year ago.
Turning to our outlook. Based on our strong first quarter results, the successful integration of the RPT acquisition and our expectations for the balance of the year, we are raising our FFO per diluted share range from $1.54 to $1.58 to a new range of $1.56 to $1.60, inclusive of $0.04 per share for RPT merger costs. Excluding the merger costs, this represents a 3.2% annual FFO per share growth at the midpoint of the increased guidance range over last year's results.
Our increased FFO per share guidance range incorporates the following updates to our full-year assumptions. Higher same-site NOI growth of 2.25% to 3.00% from the previous level of 1.5% to 2.5% and is inclusive of the RPT assets and a credit loss assumption of 75 basis points to 100 basis points. Interest income of $10 million to $12 million based on the interest income earned during the first quarter and RPT-related non-cash GAAP accounting income comprised of straight-line rents and above and below fair market value rent amortization of $4 million to $5 million. Our other full-year FFO guidance assumptions remain intact, including our disposition range of $350 million to $450 million, inclusive of the $250 million completed during the first quarter and investment range of $300 million to $350 million, weighted toward the late second-half of the year.
I want to thank all our associates whose incredible effort efficiently completed the integration of the RPT transaction and contributed to our strong first quarter results.
And with that, we are ready to take your questions.