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Kimco (KIM) Competes with Online Purchases: Time to Sell?
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On Feb 28, we issued an updated research report on Kimco Realty Corporation (KIM - Free Report) . This New Hyde Park, NY-based retail real estate investment trust (REIT) is one of the major owners and operators of neighborhood and community shopping centers in the U.S.
Mall traffic continued to suffer amid shifting consumers’ shopping preferences and patterns toward online purchases. This made many retailers reconsider their footprint and eventually opt for store closures. Further, retailers, who are not being able to cope with competition, are filing bankruptcies. This has emerged as a pressing concern for retail REITs like Kimco, as the trend is curtailing demand for the retail real estate space considerably.
Further, retail REITs are striving hard to adapt to the newest technologies, in order to offer attractive services to the tenants and mall visitors. But, these REITs are incurring decent upfront costs to implement such measures. This is likely to limit any robust growth in profit margins going forward.
In early February, Kimco came out with fourth-quarter 2016 adjusted funds from operations (“FFO”) of 38 cents per share, in line with the Zacks Consensus Estimate, and up by a penny from the prior-year quarter.
Nevertheless, Kimco’s premium properties in high-growth areas, presence of well-capitalized retailers in its tenant roster, investments in high-quality neighborhood and community shopping centers, and shedding of non-core assets augur well.
Shares of Kimco underperformed the Zacks categorized REIT and Equity Trust - Retail industry, over the past three months. During the same time span, shares of the company lost 2.8%, whereas the industry gained 6.2%. Over the past 30 days, its first-quarter 2017 and full-year 2017 FFO estimates moved south.
Over the past 30 days, EPR Properties’ FFO per share estimates for fourth-quarter 2016 remained unchanged at $1.23.
Over the past 30 days, Retail Properties of America’s FFO per share estimates for first-quarter 2017 remained unchanged at 30 cents.
Urban Edge Properties’s first-quarter 2017 FFO per share estimates rose 3.1% to 33 cents, over the past 30 days.
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.
Everything You Need to Know About Snapchat BEFORE It Goes Public
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Kimco (KIM) Competes with Online Purchases: Time to Sell?
On Feb 28, we issued an updated research report on Kimco Realty Corporation (KIM - Free Report) . This New Hyde Park, NY-based retail real estate investment trust (REIT) is one of the major owners and operators of neighborhood and community shopping centers in the U.S.
Mall traffic continued to suffer amid shifting consumers’ shopping preferences and patterns toward online purchases. This made many retailers reconsider their footprint and eventually opt for store closures. Further, retailers, who are not being able to cope with competition, are filing bankruptcies. This has emerged as a pressing concern for retail REITs like Kimco, as the trend is curtailing demand for the retail real estate space considerably.
Further, retail REITs are striving hard to adapt to the newest technologies, in order to offer attractive services to the tenants and mall visitors. But, these REITs are incurring decent upfront costs to implement such measures. This is likely to limit any robust growth in profit margins going forward.
In early February, Kimco came out with fourth-quarter 2016 adjusted funds from operations (“FFO”) of 38 cents per share, in line with the Zacks Consensus Estimate, and up by a penny from the prior-year quarter.
Nevertheless, Kimco’s premium properties in high-growth areas, presence of well-capitalized retailers in its tenant roster, investments in high-quality neighborhood and community shopping centers, and shedding of non-core assets augur well.
Shares of Kimco underperformed the Zacks categorized REIT and Equity Trust - Retail industry, over the past three months. During the same time span, shares of the company lost 2.8%, whereas the industry gained 6.2%. Over the past 30 days, its first-quarter 2017 and full-year 2017 FFO estimates moved south.
Currently, Kimco carries a Zacks Rank #4 (Sell).
Investors interested in the REIT and Equity Trust – Retail industry may consider stocks like EPR Properties (EPR - Free Report) , Retail Properties of America, Inc. and Urban Edge Properties (UE - Free Report) . All these stocks carry a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past 30 days, EPR Properties’ FFO per share estimates for fourth-quarter 2016 remained unchanged at $1.23.
Over the past 30 days, Retail Properties of America’s FFO per share estimates for first-quarter 2017 remained unchanged at 30 cents.
Urban Edge Properties’s first-quarter 2017 FFO per share estimates rose 3.1% to 33 cents, over the past 30 days.
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.
Everything You Need to Know About Snapchat BEFORE It Goes Public
You may be curious about the buzz surrounding Snap Inc.'s IPO on March 2. With the company expected to be valued around $22 billion, it is expected to be the largest IPO since 2014. But should you snap up this tech stock on Day 1?
In the 2017 IPO Watch List, you'll get an inside look at Snap's exciting prospects and potential challenges. You'll also learn about 4 other exciting tech companies with jaw-dropping growth. Each could go public in the coming months.
Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the latest scoop. Download this IPO Watch List today for free>>