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Kimco Realty (KIM) Beats Q1 FFO Estimates, Raises 2021 Outlook
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Kimco Realty Corp.’s (KIM - Free Report) first-quarter 2021 NAREIT funds from operations (FFO) came in at 33 cents per share, surpassing the Zacks Consensus Estimate of 30 cents. Results reflect better-than-anticipated revenue numbers. Moreover, the retail REIT has raised the outlook for 2021, and Kimco stock gained in premarket trading, reflecting positive market sentiments.
Remarkably, the retail REIT generated revenues of $282.3 million, exceeding the consensus mark of $263 million.
With a well-located and largely grocery-anchored portfolio that offers essential goods and services, the retail REIT witnessed decent leasing activity in the first quarter. Rent-collection figures were also healthy. The company collected 94% of total pro-rata base rents billed during the first quarter.
Nonetheless, the FFO per share comes in lower than the year-ago quarter’s 37 cents. Also, revenues declined 2.6% year on year. Results underline a fall in same-property net operating income (NOI).
Quarter in Detail
Pro-rata portfolio occupancy at the end of the first quarter was 93.5%, reflecting a contraction of 40 basis points (bps) sequentially and 250 bps year on year. Anchor- and small-shop occupancy came in at 96.2% and 85.8%, respectively.
The company executed 358 leases, aggregating 2.8 million square feet of space. This marks the highest quarterly level of square footage leased since first-quarter 2019.
Notably, the 121 new leases signed during first-quarter 2021 for 586,000 square feet highlighted an increase in gross leasable area of 44% over the prior quarter and 71% compared with the year-ago period.
Pro-rata rental-rate spreads on comparable spaces jumped 6.8%, with rental rates for new leases and renewals/options climbing 8.2% and 6.4%, respectively.
Same-property NOI declined 5.7%, year over year.
During the quarter, Kimco disposed off two shopping centers, aggregating 490,000 square feet, for $56 million, with the company’s pro-rata share of the sales price being $30.2 million.
Moreover, the retail REIT sold four land parcels for a total of $18.5 million, with Kimco’s pro-rata share of the sales price being $15 million.
Balance Sheet Position
Kimco exited first-quarter 2021 with cash and cash equivalents of $253.85 million, down from the $293.19 million recorded at the end of 2020.The retail REIT had $2.3 billion of immediate liquidity at the end of the first quarter. This included full availability under its $2-billion unsecured revolving credit facility, and around $254 million in cash and cash equivalents. In addition, at the end of the quarter, Kimco held $760 million of Albertson’s common stock, subject to certain lock-up provisions.
Notably, Kimco’s consolidated weighted-average debt maturity profile is 10.7 years. Its upcoming debt maturities in 2021 total around 3% of total pro-rata debt. This includes $150.2 million of total pro-rata mortgage debt coming due with no unsecured debt maturities in 2021.
Outlook
Kimco has raised the 2021 guidance ranges, projecting the NAREIT FFO per share at $1.22- $1.26 from the $1.18-$1.24 guided earlier. The Zacks Consensus Estimate for the same is currently pinned at $1.22.
Dividend Update
Kimco announced a quarterly cash dividend of 17 cents per share. The dividend will be paid out on Jun 23 to its shareholders of record on Jun 9, 2021.
We now look forward to the earnings releases of other retail REITs, including Realty Income Corporation (O - Free Report) , Federal Realty Investment Trust (FRT - Free Report) and Regency Centers Corporation (REG - Free Report) , which are slated to release results next week.
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.
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Kimco Realty (KIM) Beats Q1 FFO Estimates, Raises 2021 Outlook
Kimco Realty Corp.’s (KIM - Free Report) first-quarter 2021 NAREIT funds from operations (FFO) came in at 33 cents per share, surpassing the Zacks Consensus Estimate of 30 cents. Results reflect better-than-anticipated revenue numbers. Moreover, the retail REIT has raised the outlook for 2021, and Kimco stock gained in premarket trading, reflecting positive market sentiments.
Remarkably, the retail REIT generated revenues of $282.3 million, exceeding the consensus mark of $263 million.
With a well-located and largely grocery-anchored portfolio that offers essential goods and services, the retail REIT witnessed decent leasing activity in the first quarter. Rent-collection figures were also healthy. The company collected 94% of total pro-rata base rents billed during the first quarter.
Nonetheless, the FFO per share comes in lower than the year-ago quarter’s 37 cents. Also, revenues declined 2.6% year on year. Results underline a fall in same-property net operating income (NOI).
Quarter in Detail
Pro-rata portfolio occupancy at the end of the first quarter was 93.5%, reflecting a contraction of 40 basis points (bps) sequentially and 250 bps year on year. Anchor- and small-shop occupancy came in at 96.2% and 85.8%, respectively.
The company executed 358 leases, aggregating 2.8 million square feet of space. This marks the highest quarterly level of square footage leased since first-quarter 2019.
Notably, the 121 new leases signed during first-quarter 2021 for 586,000 square feet highlighted an increase in gross leasable area of 44% over the prior quarter and 71% compared with the year-ago period.
Pro-rata rental-rate spreads on comparable spaces jumped 6.8%, with rental rates for new leases and renewals/options climbing 8.2% and 6.4%, respectively.
Same-property NOI declined 5.7%, year over year.
During the quarter, Kimco disposed off two shopping centers, aggregating 490,000 square feet, for $56 million, with the company’s pro-rata share of the sales price being $30.2 million.
Moreover, the retail REIT sold four land parcels for a total of $18.5 million, with Kimco’s pro-rata share of the sales price being $15 million.
Balance Sheet Position
Kimco exited first-quarter 2021 with cash and cash equivalents of $253.85 million, down from the $293.19 million recorded at the end of 2020.The retail REIT had $2.3 billion of immediate liquidity at the end of the first quarter. This included full availability under its $2-billion unsecured revolving credit facility, and around $254 million in cash and cash equivalents. In addition, at the end of the quarter, Kimco held $760 million of Albertson’s common stock, subject to certain lock-up provisions.
Notably, Kimco’s consolidated weighted-average debt maturity profile is 10.7 years. Its upcoming debt maturities in 2021 total around 3% of total pro-rata debt. This includes $150.2 million of total pro-rata mortgage debt coming due with no unsecured debt maturities in 2021.
Outlook
Kimco has raised the 2021 guidance ranges, projecting the NAREIT FFO per share at $1.22- $1.26 from the $1.18-$1.24 guided earlier. The Zacks Consensus Estimate for the same is currently pinned at $1.22.
Dividend Update
Kimco announced a quarterly cash dividend of 17 cents per share. The dividend will be paid out on Jun 23 to its shareholders of record on Jun 9, 2021.
Kimco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kimco Realty Corporation Price, Consensus and EPS Surprise
Kimco Realty Corporation price-consensus-eps-surprise-chart | Kimco Realty Corporation Quote
We now look forward to the earnings releases of other retail REITs, including Realty Income Corporation (O - Free Report) , Federal Realty Investment Trust (FRT - Free Report) and Regency Centers Corporation (REG - Free Report) , which are slated to release results next week.
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.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>