KIM - Kimco Realty Q4 earnings largely in line with estimates but outlook disappoints

Kimco Realty ( NYSE: KIM ) on Thursday posted Q4 results that were largely in line with expectations , helped by strong occupancy gains, but issued disappointing 2023 guidance, with same property net operating income growth expected to slow.

Shares of Kimco ( KIM ) fell 3.5% to an over two-week low.

The REIT expects 2023 FFO per share of $1.53-$1.57, below $1.59 consensus. Same property NOI growth is projected to be 1%-2% vs. 4.4% growth in 2022.

Kimco ( KIM ) expects total property acquisitions (including structured investments) to reach $100M in 2023. It expects monetization of ~$300M of Albertsons ( ACI ) shares.

The REIT reported Q4 FFO per share of $0.38 vs. $0.39 in Q4 2021. Pro-rata portfolio occupancy grew 130 bps to 95.7% in Q4, which Kimco ( KIM ) said was one of its largest Y/Y occupancy gains ever. Same-property NOI grew 1.9%, driven by 3.9% increase in minimum rent.

Kimco ( KIM ) at Q4-end received a $194.1M special dividend payment from Albertsons ( ACI ). As a result, the company expects to make a special dividend payment, which will be announced by year-end.

Piper Sandler's Alexander Goldfarb said the guidance was light. "Estimating 2023 outlooks for shopping centers is more of a directional game versus pin-point, given the number of positive one-timers last year coupled with a return to a normalized level of bad debt following near zero in 2022."

Kimco ( KIM ) also declared $0.23 quarterly dividend, in line with previous .

For further details see: