Kimco Realty Corp (KIM) Q3 2024 Earnings Call Highlights: Record Occupancy and Strong Financial ...

In This Article:

  • FFO (Funds From Operations): $287.4 million or $0.43 per diluted share, representing a 7.5% growth per share compared to last year's third quarter.

  • Total Pro Rata NOI: $394.1 million, an increase of $51.3 million or 15% over the same period in the prior year.

  • Same Site NOI Growth: Positive 3.3% for the third quarter.

  • Leased Occupancy: All-time high at 96.4%, up 20 basis points sequentially and 90 basis points year-over-year.

  • Anchor Occupancy: 98.2%, up 10 basis points sequentially and 100 basis points year-over-year.

  • Small Shop Occupancy: 91.8%, up 10 basis points sequentially and 70 basis points year-over-year.

  • New Lease Volume: 119 deals totaling 543,000 square feet with a rent spread of 41.9%.

  • Renewals and Options Volume: 332 deals totaling 1.9 million square feet with a spread of 6.8%.

  • Combined Lease Volume: 451 deals totaling 2.4 million square feet with a combined spread of 12.3%.

  • Net Debt to EBITDA: 5.3x consolidated; 5.6x including pro rata JV debt and perpetual preferred stock.

  • Term Loan Increase: From $200 million to $550 million with a blended all-in rate of 4.61%.

  • New Unsecured Bond: Issued with a maturity in 2035 at a coupon of 4.85%.

  • FFO Per Diluted Share Guidance: Raised to $1.64 to $1.65 from the previous range of $1.60 to $1.62.

  • Same Site NOI Growth Guidance: Updated to 3.25% plus from the previous range of 2.75% to 3.25%.

  • Investment Guidance: Increased to a range of $565 million to $625 million.

  • Disposition Outlook: Lowered by $50 million to $250 million to $300 million.

Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Kimco Realty Corp (NYSE:KIM) achieved a record high occupancy rate of 96.4%, matching its all-time high from Q4 2019.

  • The company successfully integrated the RPT acquisition, exceeding expectations in operational synergies and NOI projections.

  • Kimco Realty Corp (NYSE:KIM) secured 12,000 multifamily unit entitlements a year ahead of schedule, valued between $175 million to $325 million.

  • The company reported a strong rent spread for new leases at 41.9%, marking the 12th consecutive quarter of double-digit rent spreads.

  • Kimco Realty Corp (NYSE:KIM) raised its full-year FFO per diluted share guidance to $1.64 to $1.65, reflecting strong financial performance.

Negative Points

  • Higher debt levels led to an increase in pro rata interest expense by $16.3 million.

  • The company anticipates a decrease in interest income in 2025 due to maintaining approximately $100 million in cash.

  • Kimco Realty Corp (NYSE:KIM) lowered its disposition outlook by $50 million, indicating potential challenges in asset sales.

  • The company faces competition in the acquisition market, particularly for neighborhood grocery-anchored shopping centers.

  • Inflation remains a concern, with potential impacts on real estate pricing and rent growth.