Valued at a market cap of $13.7 billion, Kimco Realty Corporation (KIM) is a real estate investment trust (REIT) that owns and operates high-quality, open-air, grocery-anchored shopping centers and mixed-use properties. The Jericho, New York-based 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. It is expected to announce its fiscal Q1 earnings for 2025 before the market opens on Thursday, May 1.
Prior to this event, analysts project this retail REIT to report an FFO of $0.42 per share, up 7.7% from $0.39 per share in the year-ago quarter. The company has met or surpassed Wall Street's FFO estimates in each of the last four quarters. Its FFO of $0.42 per share in the previous quarter met the consensus estimates.
For the full year, analysts expect KIM to report FFO of $1.71, up 3.6% from $1.65 in fiscal 2024. Its FFO is expected to further grow 3.5% year over year to $1.77 in fiscal 2026.
KIM has outpaced the S&P 500 Index's ($SPX) 3.8% rise over the past 52 weeks, with its shares up 10.4% over the same time frame. Meanwhile, it has aligned with the Real Estate Select Sector SPDR Fund’s (XLRE) 10.4% gains over the same time period.
KIM reported its Q4 results on Feb. 7. The company’s revenue rose 16.3% year-over-year to $525.4 million and came in 2.4% above forecasts. Solid growth in revenue from rental properties and increased management and fee income contributed to the robust top-line rise. Meanwhile, it posted an FFO of $0.42 per share, which increased 7.7% from the same period last year and aligned with analyst expectations. Additionally, its same property net operating income saw a 4.5% increase, reaching $389.7 million. The successful integration of the RPT acquisition and strong leasing activity aided the company. However, the positive results failed to lift investor sentiments, and Kimco Realty’s shares finished the day with a marginal decline.
Looking ahead to fiscal 2025, the company expects FFO per share to be between $1.70 and $1.72, and anticipates net income per share in the range of $0.70 to $0.72.
Wall Street analysts are moderately optimistic about KIM’s stock, with a "Moderate Buy" rating overall. Among 22 analysts covering the stock, seven recommend "Strong Buy," and 15 suggest “Hold.” The mean price target for KIM is $24.77, which indicates a 23.3% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
