KIM - Kimco Realty Q1 revenue beats as leasing volume strengthens

2023-04-27 10:14:50 ET

Kimco Realty ( NYSE: KIM ) nudged up the lower end of its guidance range for full-year FFO per share while keeping the top end of the range unchanged, as strong leasing volume during the first quarter drove growth in occupancy and leasing spreads.

The retail REIT now sees 2023 FFO per share of $1.54-$1.57, vs. $1.57 consensus, compared with $1.53-$1.57 in the prior view.

"The combination of strong cash flow from our operating portfolio and the cash coming from the monetization of Albertsons has resulted in further reduction in leverage levels to support future growth opportunities," said CEO Conor Flynn.

Shares of the owner of open-air, grocery-anchored shopping centers edged up 0.8% in Thursday morning trading.

Q1 FFO of $0.39 per share, matching the average analyst estimate, rose slightly from $0.38 in the prior quarter and was unchanged from a year ago.

Total revenue of $442.9M, exceeding the $435.9M consensus, drove up from $439.8M in Q4 2022 and from $427.2M in the year-earlier quarter.

Total operating expenses were $309.6M, up from $299.4M in Q4 2022 and from $288.1M in Q1 2022.

During the quarter, the company signed 600 leases totaling 4.5M square feet, generating blended pro-rata rent spreads on comparable spaces of 10.3%, with pro-rata rental rates for new leases up 44.0% and renewals and options growing 7.7%. That compares with 492 leases (totaling 2.5M square feet) signed in the previous quarter.

Pro-rata portfolio occupancy advanced 10 basis points sequentially and 110 basis points Y/Y to 95.8%.

Same-property net operating income growth was 1.4% from a year ago, driven by a 4.3% increase in minimum rent, down from 1.9% growth Y/Y in Q4 2022.

Earlier, Kimco Realty FFO of $0.39 in-line, revenue of $442.89M beats by $7.04M .

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