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Kimco Realty Corporation KIM is slated to report first-quarter 2025 results on May 1, before the opening bell. The company’s quarterly results are likely to display year-over-year growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Jericho, NY-based retail real estate investment trust (REIT) met the Zacks Consensus Estimate for FFO of 42 cents per share. Results reflected better-than-expected growth in revenues, though a rise in interest expenses acted as a dampener.
Over the preceding four quarters, Kimco’s FFO per share surpassed the Zacks Consensus Estimate on three occasions and met in the remaining period, the average beat being 2.5%. This is depicted in the graph below:
Kimco Realty Corporation Price and EPS Surprise
Kimco Realty Corporation price-eps-surprise | Kimco Realty Corporation Quote
US Retail Real Estate Market in Q1 2025
Per a Cushman & Wakefield CWK report, there has been a pullback in net absorption for the U.S. shopping center market, resulting in a negative shift in the first quarter. Although the national vacancy rate increased 20 basis points (bps) to 5.5% year over year, it remains near a historical low, with minimal new construction and most tenants having already right-sized their real estate needs. Asking rents for the U.S. shopping center market grew from the year-ago quarter.
The first quarter witnessed negative net absorption in the U.S. shopping center market, totaling 5.9 million square feet (msf). This represents the largest single-quarter decline since the third quarter of 2020. The decrease was due to negative net absorption observed in all four regions of the country. Neighborhood centers accounted for 75% of the pullback in demand.
The lack of new construction is also contributing to the scarcity, as only 2.2 msf of new shopping center space was delivered from the beginning of the year through April 14, 2025. As of the first quarter of 2025, there are only 10.6 msf under construction, with an inventory of 4.32 billion square feet.
The reversal in net demand is easing pressure on asking rents. The asking rents for U.S. shopping centers increased 2.3% year over year to $24.76 per square foot in the first quarter.
Factors to Consider Ahead of KIM’s Upcoming Results
In the first quarter, Kimco seems to have gained from its portfolio of premium shopping centers, which are predominantly grocery-anchored and are in the drivable first-ring suburbs of its top major metropolitan Sunbelt and coastal markets.
Led by a healthy mix of essential, necessity-based tenants and omnichannel retailers, this retail REIT enjoys a diverse tenant base. This is likely to have aided stable revenue generation during the to-be-reported quarter, driving top-line growth. Moreover, Kimco’s focus on developing mixed-use assets clustered in strong economic metropolitan statistical areas is likely to have given it an edge by driving net asset value.