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Kimco Realty Corp.’s (KIM - Free Report) third-quarter 2022 funds from operations (FFO) per share came in at 41 cents, surpassing the Zacks Consensus Estimate of 39 cents. The figure grew 28.1% from the year-ago quarter’s 32 cents.
Results reflect year-over-year growth in the top line. The rise in occupancy levels and rental rate growth aided Kimco’s performance. It raised the 2022 FFO outlook.
This retail REIT clocked in revenues of $433.4 million, beating the consensus mark of $423.5 million. Quarterly revenues jumped 17.6% year over year.
According to Conor Flynn, Kimco’s CEO, “We are encouraged by the ongoing strength of our business and the results that our team and our portfolio continue to produce. We believe our high-quality last mile locations, which are primarily grocery anchored, keep us well-positioned to outperform even during this period of macro-economic uncertainty.”
Quarter in Detail
Pro-rata portfolio occupancy at the end of the third quarter was 95.3%, reflecting an expansion of 120 basis points (bps) year over year and 20 bps sequentially. Pro-rata anchor occupancy was 97.8%, up 90 bps year over year and 20 bps from the previous quarter. Pro-rata small shop occupancy ended the quarter at 89.2%, representing an uptick of 190 bps from the prior-year quarter.
The company signed 461 leases, aggregating 2.1 million square feet in the quarter. Blended pro-rata rental-rate spreads on comparable spaces increased 7.5%, with rental rates for new leases growing 16.5% and renewals and options rising 6.2%.
Same-property net operating income (NOI) increased 3.1% year over year to $318.3 million, backed by a rise in minimum rent of 4.8%.
Portfolio Activity
In the reported quarter, Kimco acquired two grocery-anchored centers for $89 million in aggregate. The centers are located in the Fishtown neighborhood of Philadelphia and Massapequa, NY, and encompass 329,000 square feet.
The company also acquired the fee interest at Pike Center in Rockville, MD, for a purchase price of $21.2 million.
Kimco disposed of nine shopping centers and two land parcels covering 1.2 million square feet for $187.6 million. The company’s pro-rata share of the sales price was $64.0 million.
Balance Sheet Position
This retail REIT exited the third quarter of 2022 with nearly $2.0 billion of immediate liquidity. This included $1.9 billion of availability under its $2-billion unsecured revolving credit facility and cash and cash equivalents of $124 million.
At the end of the quarter, Kimco held 39.8 million shares of Albertsons Companies, Inc., valued at around $1.0 billion. In the subsequent quarter, after selling 11.5 million shares of ACI, which resulted in net proceeds of roughly $301.1 million, Kimco still retains 28.3 million shares of the company. Of this, 28 million shares are under a lockup period for up to seven months.
Its net-debt-to-EBITDA was 6.3X on a look-through basis at the end of the third quarter, down from 7.0X year over year. This also marked the lowest leverage level since the company began reporting this metric.
Dividend Update
Concurrent with the third-quarter earnings release, Kimco’s board of directors approved a quarterly cash dividend of 23 cents per share. This represents a 4.5% sequential rise from the prior dividend payment and a 35.3% increase year over year. This dividend will be paid out on Dec 23 to its shareholders on record as of Dec 9, 2022.
2022 Guidance Up
Kimco raised its outlook for 2022 outlook.
It projects FFO per share in the range of $1.57-$1.59, up from the prior outlook of $1.54-$1.57. The Zacks Consensus Estimate for the same is currently pegged at $1.56.
SITE Centers Corp. (SITC - Free Report) reported third-quarter 2022 operating FFO (OFFO) per share of 29 cents, beating the Zacks Consensus Estimate by a cent. The figure was in line with the prior-year quarter’s FFO per share.
SITC’s results reflect healthy leasing activity and a year-over-year improvement in annualized base rent.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported third-quarter 2022 adjusted FFO (AFFO) per share of $2.13, surpassing the Zacks Consensus Estimate by a cent. The reported figure also compared favorably with the year-ago quarter’s $1.95.
ARE’s results reflect decent leasing activity and rental rate growth during the quarter. Year-over-year improvement in the top line was noticeable.
Boston Properties Inc.’s (BXP - Free Report) third-quarter 2022 FFO per share of $1.91 outpaced the Zacks Consensus Estimate of $1.87. The figure increased 10.4% year over year.
BXP’s quarterly results reflect healthy leasing activity alongside year-over-year growth in the top line. It also carried out strategic acquisitions, redevelopments and dispositions during the quarter. The company revised its 2022 outlook for FFO.
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 (KIM) Q3 FFO & Revenues Beat Estimates, '22 View Up
Kimco Realty Corp.’s (KIM - Free Report) third-quarter 2022 funds from operations (FFO) per share came in at 41 cents, surpassing the Zacks Consensus Estimate of 39 cents. The figure grew 28.1% from the year-ago quarter’s 32 cents.
Results reflect year-over-year growth in the top line. The rise in occupancy levels and rental rate growth aided Kimco’s performance. It raised the 2022 FFO outlook.
This retail REIT clocked in revenues of $433.4 million, beating the consensus mark of $423.5 million. Quarterly revenues jumped 17.6% year over year.
According to Conor Flynn, Kimco’s CEO, “We are encouraged by the ongoing strength of our business and the results that our team and our portfolio continue to produce. We believe our high-quality last mile locations, which are primarily grocery anchored, keep us well-positioned to outperform even during this period of macro-economic uncertainty.”
Quarter in Detail
Pro-rata portfolio occupancy at the end of the third quarter was 95.3%, reflecting an expansion of 120 basis points (bps) year over year and 20 bps sequentially. Pro-rata anchor occupancy was 97.8%, up 90 bps year over year and 20 bps from the previous quarter. Pro-rata small shop occupancy ended the quarter at 89.2%, representing an uptick of 190 bps from the prior-year quarter.
The company signed 461 leases, aggregating 2.1 million square feet in the quarter. Blended pro-rata rental-rate spreads on comparable spaces increased 7.5%, with rental rates for new leases growing 16.5% and renewals and options rising 6.2%.
Same-property net operating income (NOI) increased 3.1% year over year to $318.3 million, backed by a rise in minimum rent of 4.8%.
Portfolio Activity
In the reported quarter, Kimco acquired two grocery-anchored centers for $89 million in aggregate. The centers are located in the Fishtown neighborhood of Philadelphia and Massapequa, NY, and encompass 329,000 square feet.
The company also acquired the fee interest at Pike Center in Rockville, MD, for a purchase price of $21.2 million.
Kimco disposed of nine shopping centers and two land parcels covering 1.2 million square feet for $187.6 million. The company’s pro-rata share of the sales price was $64.0 million.
Balance Sheet Position
This retail REIT exited the third quarter of 2022 with nearly $2.0 billion of immediate liquidity. This included $1.9 billion of availability under its $2-billion unsecured revolving credit facility and cash and cash equivalents of $124 million.
At the end of the quarter, Kimco held 39.8 million shares of Albertsons Companies, Inc., valued at around $1.0 billion. In the subsequent quarter, after selling 11.5 million shares of ACI, which resulted in net proceeds of roughly $301.1 million, Kimco still retains 28.3 million shares of the company. Of this, 28 million shares are under a lockup period for up to seven months.
Its net-debt-to-EBITDA was 6.3X on a look-through basis at the end of the third quarter, down from 7.0X year over year. This also marked the lowest leverage level since the company began reporting this metric.
Dividend Update
Concurrent with the third-quarter earnings release, Kimco’s board of directors approved a quarterly cash dividend of 23 cents per share. This represents a 4.5% sequential rise from the prior dividend payment and a 35.3% increase year over year. This dividend will be paid out on Dec 23 to its shareholders on record as of Dec 9, 2022.
2022 Guidance Up
Kimco raised its outlook for 2022 outlook.
It projects FFO per share in the range of $1.57-$1.59, up from the prior outlook of $1.54-$1.57. The Zacks Consensus Estimate for the same is currently pegged at $1.56.
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
Performance of Other REITs
SITE Centers Corp. (SITC - Free Report) reported third-quarter 2022 operating FFO (OFFO) per share of 29 cents, beating the Zacks Consensus Estimate by a cent. The figure was in line with the prior-year quarter’s FFO per share.
SITC’s results reflect healthy leasing activity and a year-over-year improvement in annualized base rent.
Alexandria Real Estate Equities, Inc. (ARE - Free Report) reported third-quarter 2022 adjusted FFO (AFFO) per share of $2.13, surpassing the Zacks Consensus Estimate by a cent. The reported figure also compared favorably with the year-ago quarter’s $1.95.
ARE’s results reflect decent leasing activity and rental rate growth during the quarter. Year-over-year improvement in the top line was noticeable.
Boston Properties Inc.’s (BXP - Free Report) third-quarter 2022 FFO per share of $1.91 outpaced the Zacks Consensus Estimate of $1.87. The figure increased 10.4% year over year.
BXP’s quarterly results reflect healthy leasing activity alongside year-over-year growth in the top line. It also carried out strategic acquisitions, redevelopments and dispositions during the quarter. The company revised its 2022 outlook for FFO.
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.