Kimco Realty(US:KIM) Zacks Investment Researchยท2024-05-02 17:16Core Viewpoint - Kimco Realty Corp. reported strong first-quarter 2024 results, with funds from operations (FFO) per share of 39 cents, exceeding the Zacks Consensus Estimate of 38 cents and matching the previous year's figure. Revenue growth was notable, but increased interest expenses posed a challenge [1]. Financial Performance - Kimco's revenues reached $503.8 million, surpassing the consensus estimate of $468.8 million, reflecting a year-over-year increase of 13.7% [1]. - Same-property net operating income (NOI) grew by 3.9% year over year to $381.3 million, supported by a 2.8% rise in minimum rent [3]. - Interest expenses increased by 21.6% year over year to $74.6 million [3]. Portfolio Activity - The company completed a $2.3 billion acquisition of RPT Realty and disposed of 10 former RPT properties for a total of $248 million, achieving its 2024 disposition target [4]. - Pro-rata portfolio occupancy was 96%, up 20 basis points year over year but down 20 basis points sequentially [2]. Leasing and Rent Growth - Kimco executed 583 leases totaling 4.0 million square feet during the quarter, with blended pro-rata rent spreads on comparable spaces at 10.2% [2]. - Pro-rata cash rent spreads for new leases increased by 35.5%, while renewals and options rose by 7.8% [2]. Balance Sheet Position - At the end of the first quarter, Kimco had $2.0 billion in immediate liquidity, including $1.9 billion available on its unsecured revolving credit facility and over $135 million in cash [5]. - The net-debt-to-EBITDA ratio improved to 5.6X from 6.2X in the prior-year quarter [5]. Dividend and Guidance - The board declared a quarterly cash dividend of 24 cents per share, payable on June 20, 2024 [6]. - For 2024, Kimco revised its FFO per share guidance to a range of $1.56-$1.60, up from the previous range of $1.54-$1.58, with same-property NOI growth expected between 2.25-3% [7].