Kimco Realty Faces Challenges Despite Strong Revenue Growth
Financial Performance Falls Short of Market Expectations
Jericho, New York-based Kimco Realty Corporation (KIM), a real estate investment trust (REIT), has a market cap of $15.1 billion and focuses on owning and operating open-air, grocery-anchored shopping centers across North America. Additionally, it is expanding its portfolio with mixed-use assets.
In the past year, Kimco Realty has significantly lagged behind the broader market. Over the last 52 weeks, KIM shares increased by only 10.1%, while the S&P 500 Index ($SPX) surged by 20.9%. Moreover, KIM is down 5.2% year-to-date, contrasting with the S&P’s 1.9% gain in 2025.
Looking at the industry, Kimco has performed better than the JPMorgan Realty Income ETF (JPRE), which reported an 8.7% return over the past year. However, Kimco has still underperformed compared to JPRE’s minimal decline of 8 basis points in 2025.
Despite reporting financial results that exceeded expectations, KIM shares fell by 1.3% following the release of its Q3 report on October 31. The company saw its total revenue rise 13.8% year-over-year to $507.6 million, outperforming analysts’ forecasts by 1.5%. Additionally, funds from operations (FFO) grew by 15.6% year-over-year to $287.4 million, with an FFO per share of $0.43, beating consensus estimates by 4.9%.
Still, Kimco has lowered its full-year property sale forecast by $50 million, indicating possible challenges in asset sales. Analysts are also predicting slower growth in FFO for 2025, which has raised concerns among investors.
Looking ahead, Kimco will reveal its fiscal 2024 earnings later this week. Analysts predict a 4.5% year-over-year increase in FFO per share to $1.64. The company has a solid track record of exceeding Wall Street’s bottom-line expectations, doing so for four consecutive quarters.
A total of 22 analysts tracking KIM stock have issued a consensus rating of “Moderate Buy,” including seven “Strong Buy” and fifteen “Hold” ratings.
However, this rating is slightly less promising compared to two months ago when nine analysts had rated it as “Strong Buy.” On January 29, Wells Fargo (WFC) analyst Dori Kesten maintained an “Equal-Weight” rating on KIM while lowering the price target to $24.
The average price target for KIM stands at $25.45, reflecting a 14.5% potential increase from current levels. The highest target of $30 suggests an impressive upside potential of 35%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please review the Barchart Disclosure Policy here.
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