Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$16.38Last close (Oct 25, 2023)
Post-Earnings Price$16.63Open (Oct 26, 2023)
Price Change
$0.25(+1.53%)
- Kimco Realty achieved record-high small shop occupancy of 91.1%, reflecting strong leasing demand and providing a foundation for future growth.
- The company raised its dividend, guidance, and same-site NOI outlook, demonstrating confidence in its financial performance and growth prospects.
- Kimco is capitalizing on market opportunities due to its strong liquidity and low leverage, allowing it to execute accretive deals like the acquisition of Stonebridge Center and expand its structured investments program with expected double-digit returns.
- Kimco's Funds From Operations (FFO) is expected to decrease in Q4 due to the absence of non-recurring items such as an $8.7 million pension income recognized in Q3, which inflated the FFO for that quarter.
- Transaction volumes are down approximately 70% year-to-date, and Kimco is being cautious with acquisitions, with essentially no acquisitions pipeline between now and year-end, potentially limiting growth opportunities.
- Rising cost of capital for tenants could eventually weigh on their expansion plans, which may impact Kimco's future leasing activity, as retailers' capital strategies may evolve in response to higher interest rates.
Research analysts covering KIMCO REALTY.