Kimco Meets on Q4 FFO, Beats on Revenues, Sees Solid Leasing

Core Viewpoint - Kimco Realty Corp. reported strong fourth-quarter 2024 results, with funds from operations (FFO) per share meeting expectations and showing year-over-year growth, despite increased interest expenses [1][2][4]. Financial Performance - FFO per share for Q4 2024 was 42 cents, a 7.7% increase from the previous year [1] - Total revenues reached $525.4 million, exceeding the consensus estimate of $513.1 million, and reflecting a 16.3% year-over-year improvement [2] - For the full year 2024, FFO per share was $1.65, up 5.1% from $1.57, surpassing the Zacks Consensus Estimate of $1.64 [2] - Annual revenues increased 14.2% year over year to $2.04 billion [2] Operational Highlights - Pro-rata portfolio occupancy at the end of Q4 was 96.3%, up 10 basis points year over year [3] - Pro-rata anchor occupancy was 98.2%, reflecting a 20 basis point increase year over year [3] - Pro-rata small shop occupancy remained flat at 91.7% year over year [3] - Kimco executed 429 leases totaling 2.4 million square feet in the quarter, with blended pro-rata cash rent spreads on comparable spaces at 11.4% [4] Cost and Expenses - Interest expenses rose 23.4% year over year to $83.7 million [4] - Same-property net operating income (NOI) grew 4.5% year over year, supported by a 3.8% increase in minimum rent [4] Acquisition Activity - Kimco acquired Waterford Lakes Town Center for $322 million and Markets at Town Center for $108 million [5] Balance Sheet and Liquidity - The company ended Q4 2024 with $2.7 billion in immediate liquidity, including $689.7 million in cash [6] - Net-debt-to-EBITDA ratio was 5.6x, unchanged from the prior year [6] Equity Offering - Kimco raised $136.3 million from the sale of 5.4 million shares at an average price of $25.07 per share [7] Dividend Declaration - A quarterly cash dividend of 25 cents per share was declared, payable on March 21, 2025 [9] 2025 Guidance - For 2025, Kimco expects FFO per share in the range of $1.70 to $1.72, above the Zacks Consensus Estimate of $1.69 [10] - The outlook is based on same-property NOI growth of over 2.0% and total acquisitions expected between $100 million and $125 million [10]