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Kimco Realty (KIM) Q4 FFO Meets Estimates, Revenues Beat


Have you been eager to see how Kimco Realty Corp. KIM performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this New Hyde Park, NY–based retail real estate investment trust’s (REIT) earnings release this morning:

In line FFO

Kimco came out with funds from operations (FFO) per share of 38 cents, in line with the Zacks Consensus Estimate.

Results reflect growth in revenues and high occupancy level.

How Was the Earnings Surprise Trend?

Before posting in-line performance in Q4, the company delivered positive surprise in one quarter and met estimates in the other three occasions. Overall, the company surpassed the Zacks Consensus Estimate by an average of 0.68% in the trailing four quarters. The graph below depicts this surprise history:

Revenue Came In Higher Than Expected

Kimco posted revenues from rental properties of $310.6 million, which surpassed the Zacks Consensus Estimate of $299.0 million. It compared favorably with the year-ago number of $292.9 million.

Key Developments to Note:

Kimco leased more than 10 million square feet in 2017. This denoted the highest leasing volume in the past 10 years.

Further, in February 2018, Kimco’s board authorized a $300 million share repurchase.

Kimco provided its FFO per share outlook for full-year 2018. The company projects FFO per share in the range of $1.42-$1.46. This is based on same-property NOI (excluding redevelopments) growth projections of 1.25-2.00%, net dispositions estimation of $700-$900 million and total redevelopment and development investment of $425-$525 million.

What Zacks Rank Says

Kimco currently has a Zacks Rank #4 (Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

Check back later for our full write up on this KIM earnings report!

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