Kimco Stock Gains on Q1 FFO & Revenues Beat, Sees Solid Leasing

Shares of Kimco Realty Corp. KIM gained more than 5% so far in today’s trading session after it reported first-quarter 2025 funds from operations (FFO) per share of 44 cents, beating the Zacks Consensus Estimate of 42 cents. The metric grew 12.8% from the year-ago quarter.

Results have reflected better-than-expected growth in revenues, though a rise in interest expenses acted as a dampener.

This retail REIT clocked in revenues of $536.6 million, which topped the consensus mark of $525.1 million. The figure improved 6.5% year over year.

According to Conor Flynn, CEO of Kimco, "We are very encouraged by our strong start to 2025, driven by robust leasing demand, accelerated rent commencements, and better-than-expected tenant credit performance, all of which contributed meaningfully to the solid growth in our net operating income and FFO."

Quarter in Detail

Pro-rata leased occupancy at the end of the first quarter was 95.8%, reflecting a decline of 20 basis points (bps) year over year. Pro-rata anchor occupancy at the end of the quarter was 97.4%, reflecting a decline of 40 bps year over year. Pro-rata small shop occupancy at the end of the quarter was 91.7%, representing a 20 bps increase year over year.

Kimco executed 583 leases, aggregating 4.4 million square feet in the quarter. Blended pro-rata cash rent spreads on comparable spaces were 13.3%, with new leases increasing 48.7% and renewals and options growing 8.7%.

Same-property net operating income (NOI) grew 3.9% year over year, backed by a rise in the minimum rent of 3.4%.

Interest expenses were up 7.8% year over year to $80.4 million in the reported quarter.

Portfolio Activity

During the first quarter, Kimco acquired The Markets at Town Center, a 254,000-square-foot center in Jacksonville, FL, anchored by Sprouts Farmers Market for $108 million.

Purchased the fee interest at two shopping centers for $24.2 million.

Sold two land parcels and one shopping center for $41.3 million.

Balance Sheet Position

This retail REIT exited the first quarter of 2025 with $2 billion of immediate liquidity. This included $1.9 billion availability on its $2 billion unsecured revolving credit facility and $132.5 million of cash, cash equivalents and restricted cash.

Its net-debt-to-EBITDA was 5.6X on a look-through basis as of March 31, 2025, the same as in the prior-year quarter.

Following the quarter’s end, it repurchased 3 million common shares at an average price of $19.61 per share.

Dividend Update

Concurrent with the first-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 June 20, 2025, to its shareholders of record as of June 6, 2025.

2025 Guidance

For 2025, Kimco now expects its FFO per share range to be $1.71-$1.74, up from the prior guidance range of $1.70-$1.72. The Zacks Consensus Estimate of $1.71 lies within the range.

Kimco’s full-year outlook is based on the same property NOI growth of more than 2.5%, compared to previous guidance of more than 2%. Total acquisitions (including structured investments), net of dispositions, remain unchanged at $100 million to $125 million.

The company currently carries a Zacks Rank #3 (Hold).

Kimco Realty Corporation Price, Consensus and EPS Surprise

Kimco Realty Corporation price-consensus-eps-surprise-chart | Kimco Realty Corporation Quote

Upcoming Earnings Releases

We now look forward to the earnings releases of other retail REITs, such as Federal Realty Investment Trust FRT and Simon Property Group SPG, which are slated to report on May 8 and May 12, respectively. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The Zacks Consensus Estimate for Federal Realty Investment Trust’s first-quarter 2025 FFO per share is pegged at $1.69, implying a 3.1% year-over-year increase. FRT currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Simon’s first-quarter 2025 FFO per share stands at $2.91, indicating an 18.3% decrease year over year. SPG currently has a Zacks Rank #3.

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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This article originally published on Zacks Investment Research (zacks.com).

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