Kimco Realty: Anticipating Strong Q3 Earnings Amid Positive Market Trends

Kimco Realty Corporation (KIM), a real estate investment trust (REIT) based in Jericho, New York, focuses on open-air, grocery-anchored shopping centers and mixed-use properties. With a market capitalization of $16.2 billion, the company has a portfolio primarily located in major U.S. metropolitan areas and growing Sun Belt cities. KIM is set to release its fiscal Q3 earnings results before the market opens on Thursday, Oct. 31.

Forecasting Earnings Growth

Analysts predict that for this quarter, Kimco will report a FFO of $0.41 per share, reflecting a 2.5% increase from $0.40 per share in the same quarter last year. The company has consistently met or exceeded Wall Street’s earnings expectations over the past four quarters, with an FFO of $0.41 in the last quarter, surpassing consensus estimates by 2.5%.

A Look Ahead at Future Earnings

For fiscal 2024, KIM is expected to achieve an FFO of $1.62 per share, a 3.2% rise from $1.57 per share in fiscal 2023. The forecasts continue into fiscal 2025, projecting a further growth of 4.3%, bringing the expected FFO to $1.69 per share.

Impressive 52-Week Performance

Over the past year, KIM has increased by 41.4%, outdoing both the S&P 500 Index, which gained 33.6%, and the Real Estate Select Sector SPDR Fund (XLRE), which rose by 28.9% during the same timeframe.

Positive Market Reactions

On August 1, Kimco Realty’s shares climbed over 1% after the company raised its full-year FFO forecast to between $1.60 and $1.62 per share. This was supported by strong leasing demand at its grocery-anchored centers. Q2 results revealed increased occupancy rates and revenue of $500.2 million, which bolstered investor confidence. Additionally, the announcement of $63 million in future cash flow from signed leases scheduled to commence also contributed to a favorable market reaction.

Analyst Ratings Trending Upwards

Currently, analysts maintain a cautiously optimistic view on Kimco Realty stock, giving it a “Moderate Buy” rating overall. Out of 23 analysts, there are 10 “Strong Buys” and 13 “Holds.” This is a slight improvement from three months prior, when only nine analysts indicated a “Strong Buy.” Presently, KIM is trading slightly above the average analyst price target of $24.20.

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On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any securities mentioned in this article. All information and data in this article is for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

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