Kimco Realty raises annual FFO forecast on strong leasing demand

Kimco Realty

31/10/2024 11:58

Oct 31 (Reuters) - Kimco Realty  KIM.N  raised its
forecast for annual funds from operations and beat Wall Street
estimates for third-quarter FFO on Thursday, helped by strong
leasing demand at the real estate investment trust's
grocery-anchored retail centers.
    
    WHY IT IS IMPORTANT
    A decline in new commercial space developments and fierce
competition among retailers have strengthened demand for rental
spaces, including strip mall centers, leading to a spike in
lease revenue.
    
    KEY QUOTE
    "Our high-quality, grocery-anchored properties continue to
deliver outsized growth, record occupancy and advantageous
pricing power," CEO Conor Flynn said in a statement.
    "Moreover, our recent acquisition of the Waterford Lakes
Town Center in Orlando positions us to be a net acquirer in
2024."
    
    BY THE NUMBERS
    The Jericho, New York-based firm now expects its full-year
FFO — a key REIT metric that defines cash flow from core
operations — to be between $1.64 and $1.65 per share, compared
with its previous range of $1.60 to $1.62 per share.
    Kimco's portfolio occupancy rate rose by 90 basis points
year-on-year to 96.4% in the quarter.
    Total quarterly revenue rose nearly 14% to $507.6 million,
versus estimates of a 12.63% rise to $497.6 million. Its net
revenue from rental properties also jumped 14%.
    Third-quarter FFO rose 7.5% to 43 cents per share. Analysts
had expected 41 cents.
    Kimco raised its total acquisitions forecast for the year to
between $565 million and $625 million, from its previous
projection of $300 million to $350 million.

 (Reporting by Neil J Kanatt in Bengaluru; Editing by Shilpi
Majumdar)
 ((Neil.JKanatt@thomsonreuters.com))