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Kimco Realty (KIM) Q1 FFO and Revenues Surpasses Estimates

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Have you been eager to see how Kimco Realty Corp. (KIM - Free Report) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this New Hyde Park, NY–based retail real estate investment trust’s (REIT) earnings release this morning:

A FFO Beat

Kimco came out with funds from operations (FFO) per share of 39 cents, surpassing the Zacks Consensus Estimate of 36 cents.

Results reflect decent growth in revenues and high occupancy level.

How Was the Earnings Surprise Trend?

Before posting in-line performance in Q1, the company delivered positive surprise in one quarter and met estimates in the other three occasions. Overall, the company surpassed the Zacks Consensus Estimate by an average of 0.68% in the trailing four quarters. The graph below depicts this surprise history:

Kimco Realty Corporation Price and EPS Surprise

Revenue Up Y/Y

The company posted revenues from rental properties of $230.4 million in the reported quarter, reflecting a year over year increase of 1.2%. Moreover, total revenues improved 3.6% to 304.1 million year over year.

Key Developments to Note:

During the quarter, Kimco’s pro-rata occupancy improved year over year by 80 basis points (bps) to 96.1%.

The company repurchased 1.6 million shares of common stock for $24.3 million under its $300 million share repurchase program in the first quarter.  

Kimco provided its FFO per share outlook for full-year 2018. The company projects FFO per share in the range of $1.42-$1.46, similar to its previous guidance. This is based on same-property NOI (excluding redevelopments) growth projections of 1.5-2.00%, net dispositions estimation of $700-$900 million and total redevelopment and development investment of $425-$525 million.

What Zacks Rank Says

Kimco currently has a Zacks Rank #4 (Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

Check back later for our full write up on this KIM earnings report!

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