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Kimco Realty (KIM) Down 2.3% Since Earnings Report: Can It Continue?

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About a month has gone by since the last earnings report for Kimco Realty Corporation (KIM - Free Report) . Shares have lost about 2.3% in the past month.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakthrough? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Kimco Realty Meets FFO Estimates in Q2 Earnings

Kimco’s second-quarter 2017 adjusted FFO came in at $0.38 per share, in line with the Zacks Consensus Estimate. The company had reported adjusted FFO of $0.37 per share a year ago.

Total revenue for the quarter was $297 million, up 2% from the year-ago quarter. Adjusted revenues came in at $292.8 million, up 2% from the prior-year quarter.

At the end of the quarter, pro rata occupancy came in at 95.5%, reflecting a sequential increase of 20 basis points (bps).

Same-property net operating income (NOI) inched up 0.3% year over year. Pro rata rental-rate leasing spreads grew 10.5%, with rental rates for new leases and renewals/options, increasing 17% and 7.8%, respectively.

Balance-Sheet Position

Kimco exited second-quarter 2017 with cash and cash equivalents of around $143.1 million, up from $142.5 million at year-end 2016.

The company also received $23.7 million as cash distribution from its investment in Albertsons LLC.

Portfolio Activity

During the quarter, the company announced acquisitions of a parcel for $700,000. Kimco share of the purchase price was $340,000. The parcel located in Augusta, GA, is adjacent to the company’s Augusta Exchange shopping center.

On the other hand, its second-quarter sales aggregated $155.8 million, with Kimco’s share of sale price being $128.1 million. This involved the disposition of nine shopping centers, aggregating 892,000 square feet of space and two land parcels. With these disposals, the company wound up its business in the states of Maine and Louisiana.

Guidance

Kimco reaffirmed its FFO as adjusted per share outlook in the $1.50–$1.54 band.

Notably, the company estimates the U.S. portfolio occupancy to be in the range of 95.8–96.2%, same-property NOI to grow 2–3%, operating property acquisitions of $300–$400 million and dispositions of $300–$400 million.

Dividend Update

Kimco’s board of directors announced a quarterly cash dividend of $0.27 per share. The dividend will be paid on Oct 16 to shareholders of record as of Oct 4, 2017.

How Have Estimates Been Moving Since Then?

Following the release, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter.

VGM Scores

At this time, Kimco Realty's stock has a poor Growth Score of F, however its Momentum is doing a lot better with an C. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

The company's stock is suitable solely for momentum based on our styles scores.

Outlook

Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising.  Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.




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