Commercial REIT Kimco tops Q3 revenue estimates on strong leasing demand

Kimco Realty

26/10/2023 13:25

Oct 26 (Reuters) - Kimco Realty  KIM.N , a commercial
real estate investment trust, topped market expectations for
third-quarter revenue on Thursday, helped by higher rental rates
and steady demand at its grocery-anchored shopping centers.
    Kimco has benefited from the dwindling availability of
rental spaces, which has allowed landlords to bump up rental
rates.
    The company is also looking to consolidate its presence in
the Coastal and Sun Belt markets. It said in August it would
acquire peer RPT Realty  RPT.N , whose tenants include TJ Maxx
stores, Dollar Tree and Ross Stores.
    Kimco's net revenue from rental properties rose by 3% to
$441.8 million in the quarter, beating analysts' average
estimate of $436.3 million, according to LSEG data.
    While its funds from operations (FFO) dipped to 40 cents per
share, from 41 per share a year ago, it also beat estimates of
39 cents.
    "With virtually no new supply and strong demand from a
multitude of tenants, buoyed by a resilient consumer, we
continue to produce strong operating results," CEO Conor Flynn
said in a statement.
    Kimco's portfolio occupancy in the quarter was 95.5%, a 20
basis points increase year over year, but a 30 basis points drop
sequentially.
    Still, Kimco raised the lower end of its full-year FFO per
share forecast by 1 cent to a range of $1.56 to $1.57.

 (Reporting by Juveria Tabassum; Editing by Savio D'Souza)
 ((Juveria.Tabassum@thomsonreuters.com;))