What's in the Cards for Kimco Realty Stock in Q4 Earnings?

Core Viewpoint - Kimco Realty Corporation is expected to report fourth-quarter and full-year 2024 results on February 7, with anticipated year-over-year growth in revenues and funds from operations (FFO) per share [1][11]. Company Performance - In the last reported quarter, Kimco outperformed the Zacks Consensus Estimate by 4.9% in FFO per share, with year-over-year revenue growth, although rising interest expenses negatively impacted performance [2][9]. - Over the past four quarters, Kimco's FFO per share exceeded the Zacks Consensus Estimate three times, with an average beat of 2.5% [3]. Industry Insights - The U.S. retail availability rate remained stable at 4.7%, despite store closures and a decrease in net absorption, indicating stability in retail market fundamentals [3]. - Net absorption in the fourth quarter declined by 14% sequentially to 5.7 million square feet, significantly below the 10-year quarterly average of 17 million square feet [4]. - New retail development was low, with construction completions down 52% from the prior quarter, attributed to rising construction costs, labor shortages, and tight lending conditions [5]. Rental Market Dynamics - Average asking rent increased by 0.4% quarter-over-quarter and 2.5% year-over-year to $23.80 per square foot, driven by strong competition for limited space and high demand for prime locations [6]. Growth Factors - Kimco's properties are located in economically strong metropolitan areas, which are expected to support demand and boost quarterly performance [7]. - The company benefits from a diverse tenant base, including essential and necessity-based retailers, aiding stable revenue generation [8]. - A solid balance sheet is likely to support growth, although high interest expenses may have affected performance [9]. Projections - The Zacks Consensus Estimate for Kimco's quarterly revenues is$516.7 million, reflecting a 14.4% year-over-year growth, with net revenues from rental properties expected to reach $505.5 million, a 12.9$1.64 and $1.65, supported by a same-property net operating income growth of over 3.25$565-$625 million [13].