Jericho, New York-based Kimco Realty Corporation (KIM) is a real estate investment trust (REIT) and leading owner and operator of high-quality, open-air, grocery-anchored shopping centers and mixed-use properties. Valued at a market cap of $14.3 billion, the company's portfolio is strategically concentrated in the first-ring suburbs of the top major metropolitan markets, including high-barrier-to-entry coastal markets and rapidly expanding Sun Belt cities.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and KIM fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the REIT - retail industry. One of the company’s key strengths is its diverse and resilient tenant base, which includes grocery-anchored shopping centers, essential retailers, and service-oriented businesses. Additionally, Kimco’s proactive leasing strategy and strong relationships with national retailers enhance its occupancy rates and long-term growth prospects.
Despite its notable strength, this retail REIT has slipped 18.7% from its 52-week high of $25.83, reached on Nov. 29, 2024. Moreover, it has fallen 10.1% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) 9.7% loss over the same time frame.
Moreover, on a YTD basis, shares of KIM are down 10.3%, compared to NASX’s 7.8% decline. In the longer term, KIM has gained 8.5% over the past 52 weeks, marginally lagging behind NASX’s 8.6% gain over the same time frame.
To confirm its bearish trend, KIM has been trading below its 200-day moving average since mid-February, and has remained below its 50-day moving average since mid-December, 2024.
KIM released its Q4 results on Feb. 7. The company’s FFO of $0.42 per share improved 7.7% year-over-year and met Wall Street’s expectations. Meanwhile, robust growth in revenue from rental properties and higher management and other fee income led to a 16.3% increase in its total revenue, reaching $525.4 million. It exceeded the forecasted figure by 2.4%. The successful integration of the RPT acquisition and strong leasing performance further supported the company. Despite these positives, Kimco’s stock closed slightly lower on the day of the announcement.
KIM has underperformed its rival, Regency Centers Corporation’s (REG) 20.3% gain over the past 52 weeks and 2.1% decline on a YTD basis.
Despite KIM’s recent underperformance relative to the Nasdaq, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 22 analysts covering it, and the mean price target of $25.02 suggests a 19.1% premium to its current levels.
