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Shares of Kimco Realty Corp. KIM gained more than 5% so far in today’s trading session after it reported first-quarter 2025 funds from operations (FFO) per share of 44 cents, beating the Zacks Consensus Estimate of 42 cents. The metric grew 12.8% from the year-ago quarter.
Results have reflected better-than-expected growth in revenues, though a rise in interest expenses acted as a dampener.
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This retail REIT clocked in revenues of $536.6 million, which topped the consensus mark of $525.1 million. The figure improved 6.5% year over year.
According to Conor Flynn, CEO of Kimco, "We are very encouraged by our strong start to 2025, driven by robust leasing demand, accelerated rent commencements, and better-than-expected tenant credit performance, all of which contributed meaningfully to the solid growth in our net operating income and FFO."
Quarter in Detail
Pro-rata leased occupancy at the end of the first quarter was 95.8%, reflecting a decline of 20 basis points (bps) year over year. Pro-rata anchor occupancy at the end of the quarter was 97.4%, reflecting a decline of 40 bps year over year. Pro-rata small shop occupancy at the end of the quarter was 91.7%, representing a 20 bps increase year over year.
Kimco executed 583 leases, aggregating 4.4 million square feet in the quarter. Blended pro-rata cash rent spreads on comparable spaces were 13.3%, with new leases increasing 48.7% and renewals and options growing 8.7%.
Same-property net operating income (NOI) grew 3.9% year over year, backed by a rise in the minimum rent of 3.4%.
Interest expenses were up 7.8% year over year to $80.4 million in the reported quarter.
Portfolio Activity
During the first quarter, Kimco acquired The Markets at Town Center, a 254,000-square-foot center in Jacksonville, FL, anchored by Sprouts Farmers Market for $108 million.
Purchased the fee interest at two shopping centers for $24.2 million.
Sold two land parcels and one shopping center for $41.3 million.
Balance Sheet Position
This retail REIT exited the first quarter of 2025 with $2 billion of immediate liquidity. This included $1.9 billion availability on its $2 billion unsecured revolving credit facility and $132.5 million of cash, cash equivalents and restricted cash.
Its net-debt-to-EBITDA was 5.6X on a look-through basis as of March 31, 2025, the same as in the prior-year quarter.
Following the quarter’s end, it repurchased 3 million common shares at an average price of $19.61 per share.
Dividend Update
Concurrent with the first-quarter earnings release, Kimco’s board of directors has declared a quarterly cash dividend of 25 cents per share. This dividend will be paid out on June 20, 2025, to its shareholders of record as of June 6, 2025.