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Kimco Meets on Q4 FFO, Beats on Revenues, Sees Solid Leasing
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Kimco Realty Corp. (KIM - Free Report) has reported fourth-quarter 2024 funds from operations (FFO) per share of 42 cents, which met the Zacks Consensus Estimate. The metric grew 7.7% from the year-ago quarter. Results have reflected better-than-expected growth in revenues, though a rise in interest expenses acted as a dampener.
See the Zacks Earnings Calendar to stay ahead of market-making news.
This retail REIT clocked in revenues of $525.4 million, which topped the consensus mark of $513.1 million. The figure improved 16.3% year over year.
For 2024, the FFO per share came in at $1.65, rising 5.1% year over year from $1.57 and beating the Zacks Consensus Estimate of $1.64. Revenues increased 14.2% year over year to $2.04 billion.
According to Conor Flynn, CEO of Kimco, "Our fourth quarter and full-year results capped another remarkable year for Kimco, as we reached the high end of our 2024 outlook, driven by the successful integration of the RPT acquisition and strong leasing results that led to significant growth in net operating income and FFO."
Quarter in Detail
Pro-rata portfolio occupancy at the end of the fourth quarter was 96.3%, reflecting an uptick of 10 basis points (bps) year over year. Pro-rata anchor occupancy at the end of the quarter was 98.2%, reflecting an expansion of 20 bps year over year. Pro-rata small shop occupancy at the end of the quarter was 91.7%, flat year over year.
Kimco executed 429 leases, aggregating 2.4 million square feet in the quarter. Blended pro-rata cash rent spreads on comparable spaces were 11.4%, with new leases increasing 35.4% and renewals and options growing 6.6%.
Same-property net operating income (NOI) grew 4.5% year over year, backed by a rise in the minimum rent of 3.8%.
Interest expenses were up 23.4% year over year to $83.7 million in the reported quarter.
Portfolio Activity
During the fourth quarter, Kimco acquired Waterford Lakes Town Center, a 976,000-square-foot signature asset spanning 79 acres in Orlando, FL, for $322 million.
Subsequent to the quarter end, Kimco acquired Markets at Town Center, a 254,000-square-foot premier asset in Jacksonville, FL, for $108 million.
Balance Sheet Position
This retail REIT exited the fourth quarter of 2024 with $2.7 billion of immediate liquidity. This included full availability on its $2 billion unsecured revolving credit facility and $689.7 million of cash and cash equivalents. Its net-debt-to-EBITDA was 5.6x on a look-through basis as of Dec. 31, 2024, the same as in the prior-year quarter.
Kimco raised $136.3 million of net proceeds from the sale of 5.4 million shares of common stock through the at-the-market ("ATM") equity offering program at an average price of $25.07 per share.
Following the quarter’s end, Moody’s affirmed the company’s Baa1 senior unsecured debt rating and changed its outlook to positive.
Dividend Update
Concurrent with the fourth-quarter earnings release, Kimco’s board of directors has declared a quarterly cash dividend of 25 cents per share. This dividend will be paid out on March 21, 2025, to its shareholders of record as of March 7, 2025.
2025 Guidance
For 2025, Kimco expects its FFO per share of $1.70-$1.72. This is ahead of the Zacks Consensus Estimate of $1.69.
Kimco’s full-year outlook is based on the same property NOI growth of more than 2.0%. Total acquisitions (including structured investments), net of dispositions, are expected at $100 million to $125 million.
Simon Property Group, Inc.’s (SPG - Free Report) fourth-quarter 2024 funds from operations (FFO) per share of $3.68 surpassed the Zacks Consensus Estimate of $3.40. Results reflected an increase in revenues, backed by a rise in the base minimum rent per square foot and occupancy levels. SPG issued its guidance for 2025 FFO per share.
Upcoming Earnings Release
We now look forward to the earnings releases of another retail REIT — Federal Realty (FRT - Free Report) — which is slated to report on Feb. 13.
The Zacks Consensus Estimate for Federal Realty’s fourth-quarter 2024 FFO per share stands at $1.73, indicating a 5.5% increase year over year. FRT currently has a Zacks Rank #4 (Sell).
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Kimco Meets on Q4 FFO, Beats on Revenues, Sees Solid Leasing
Kimco Realty Corp. (KIM - Free Report) has reported fourth-quarter 2024 funds from operations (FFO) per share of 42 cents, which met the Zacks Consensus Estimate. The metric grew 7.7% from the year-ago quarter. Results have reflected better-than-expected growth in revenues, though a rise in interest expenses acted as a dampener.
See the Zacks Earnings Calendar to stay ahead of market-making news.
This retail REIT clocked in revenues of $525.4 million, which topped the consensus mark of $513.1 million. The figure improved 16.3% year over year.
For 2024, the FFO per share came in at $1.65, rising 5.1% year over year from $1.57 and beating the Zacks Consensus Estimate of $1.64. Revenues increased 14.2% year over year to $2.04 billion.
According to Conor Flynn, CEO of Kimco, "Our fourth quarter and full-year results capped another remarkable year for Kimco, as we reached the high end of our 2024 outlook, driven by the successful integration of the RPT acquisition and strong leasing results that led to significant growth in net operating income and FFO."
Quarter in Detail
Pro-rata portfolio occupancy at the end of the fourth quarter was 96.3%, reflecting an uptick of 10 basis points (bps) year over year. Pro-rata anchor occupancy at the end of the quarter was 98.2%, reflecting an expansion of 20 bps year over year. Pro-rata small shop occupancy at the end of the quarter was 91.7%, flat year over year.
Kimco executed 429 leases, aggregating 2.4 million square feet in the quarter. Blended pro-rata cash rent spreads on comparable spaces were 11.4%, with new leases increasing 35.4% and renewals and options growing 6.6%.
Same-property net operating income (NOI) grew 4.5% year over year, backed by a rise in the minimum rent of 3.8%.
Interest expenses were up 23.4% year over year to $83.7 million in the reported quarter.
Portfolio Activity
During the fourth quarter, Kimco acquired Waterford Lakes Town Center, a 976,000-square-foot signature asset spanning 79 acres in Orlando, FL, for $322 million.
Subsequent to the quarter end, Kimco acquired Markets at Town Center, a 254,000-square-foot premier asset in Jacksonville, FL, for $108 million.
Balance Sheet Position
This retail REIT exited the fourth quarter of 2024 with $2.7 billion of immediate liquidity. This included full availability on its $2 billion unsecured revolving credit facility and $689.7 million of cash and cash equivalents. Its net-debt-to-EBITDA was 5.6x on a look-through basis as of Dec. 31, 2024, the same as in the prior-year quarter.
Kimco raised $136.3 million of net proceeds from the sale of 5.4 million shares of common stock through the at-the-market ("ATM") equity offering program at an average price of $25.07 per share.
Following the quarter’s end, Moody’s affirmed the company’s Baa1 senior unsecured debt rating and changed its outlook to positive.
Dividend Update
Concurrent with the fourth-quarter earnings release, Kimco’s board of directors has declared a quarterly cash dividend of 25 cents per share. This dividend will be paid out on March 21, 2025, to its shareholders of record as of March 7, 2025.
2025 Guidance
For 2025, Kimco expects its FFO per share of $1.70-$1.72. This is ahead of the Zacks Consensus Estimate of $1.69.
Kimco’s full-year outlook is based on the same property NOI growth of more than 2.0%. Total acquisitions (including structured investments), net of dispositions, are expected at $100 million to $125 million.
The company 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 Another Retail REIT
Simon Property Group, Inc.’s (SPG - Free Report) fourth-quarter 2024 funds from operations (FFO) per share of $3.68 surpassed the Zacks Consensus Estimate of $3.40. Results reflected an increase in revenues, backed by a rise in the base minimum rent per square foot and occupancy levels. SPG issued its guidance for 2025 FFO per share.
Upcoming Earnings Release
We now look forward to the earnings releases of another retail REIT — Federal Realty (FRT - Free Report) — which is slated to report on Feb. 13.
The Zacks Consensus Estimate for Federal Realty’s fourth-quarter 2024 FFO per share stands at $1.73, indicating a 5.5% increase year over year. FRT currently has a Zacks Rank #4 (Sell).
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.