Kimco Realty posts quarterly FFO growth on persistent leasing demand

Simon Property

07/02/2025 13:10

Feb 7 (Reuters) - Kimco Realty  KIM.N  on Friday posted
a growth in fourth-quarter funds from operations (FFO) from last
year, helped by steady leasing demand for the company's
grocery-anchored shopping centers amid limited new supply of
such spaces.
    
    WHY IT'S IMPORTANT 
    Rising costs from inflation has led to a tight supply of new
retail spaces in the U.S. over the last few years. However,
strong consumer spending has fueled demand among retailers and
landlords helping Kimco, which owned over 523 shopping centers
in the country at end of 2023.
    
    CONTEXT
    The company operates shopping centers that provide customers
with essential goods and services and are primarily anchored by
a grocery store, home improvement center, off-price retailer,
and a discounter.  
    The real estate investment trust has benefited from a lack
of new supply for leasing spaces, with its results further
boosted by acquisition of peer RPT Realty last year in a $2
billion deal.
    Kimco competes with real estate companies such as Simon
Property  SPG.N  and Regency Centers  REG.O .
    Steady demand also helped rival Simon Property beat market
expectations for fourth-quarter FFO earlier this week.    
    
    BY THE NUMBERS
    The Jericho, New York-based firm posted a 7.7% rise in funds
from operations to 42 cents per share in the quarter ended
December 31, in line with analysts' expectations, according to
data compiled by LSEG.
    It expects FFO for full year 2025 in the range of $1.70 to
$1.72, the mid-point of which met analysts' estimates of $1.71.
    Annual net income is forecast between 70 cents and 72 cents
per share, compared with average estimates of 71 cents.
    
        MARKET REACTION 
  
        Shares of the company were up 2.4% in premarket trading.
  

 (Reporting by Aamir Sohail in Bengaluru; Editing by Tasim
Zahid)
 ((Aamir.Sohail@thomsonreuters.com;))