KIM - Kimco Realty Q2 revenue tops consensus as expenses slip
2023-07-27 09:36:36 ET
Kimco Realty ( NYSE: KIM ) on Thursday posted revenue for Q2 that surpassed Wall Street expectations came in virtually unchanged from the prior quarter. Funds from operations, too, stalled Q/Q and matched the average analyst estimate.
Q2 FFO per share of $0.39, in line with consensus, stagnated from Q1 and edged down from $0.40 in the year-earlier period. Revenue of $442.8M, vs. $436.3M consensus, slipped from $442.9M in Q1 and rose from $427.2M in Q2 of last year.
“Our results demonstrate the strength of our operating platform with the strong execution on backfilling vacancies in an accretive manner at meaningful rental spreads that will drive cashflow," said CEO Conor Flynn.
And, "with over $500 million of cash on hand from the ongoing monetization of our Albertsons stock, we also have a unique advantage to quickly execute on external growth opportunities as well as further reduce leverage," he added.
Shares of the owner of open-air, grocery-anchored shopping centers drifted up 0.5% in Thursday morning trading.
Total operating expenses were $298.8M in Q2, down from $309.6M in Q1 and up from $296.9M a year before.
During the quarter, Kimco ( KIM ) executed 485 leases totaling 2.7 million square feet, generating blended pro-rata rent spreads on comparable spaces of 9.9%, with pro-rata rental rates for new leases up 25.3% and renewals and options growing 7.6%. That compares with 600 leases (totaling 4.5M square feet) signed in the prior quarter.
Pro-rata portfolio occupancy ended the quarter at 95.8%, which was flat Q/Q and up 70 basis points Y/Y. Pro-rata small shop occupancy expanded 30 basis points sequentially and 180 basis points Y/Y to 91.0%, which is 10 basis points below the company’s all-time high.
Earlier, Kimco Realty FFO of $0.39 in-line, revenue of $442.84M beats by $6.58M.
More on Kimco Realty:
- SA's Quant system rates KIM a Hold
- Kimco Realty: 6% Yielding Debt Is More Interesting Than 5.5% Yielding Preferred Equity
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Kimco Realty Q2 revenue tops consensus as expenses slip