Kimco Q2 2024 Earnings Report
Key Takeaways
Kimco Realty reported strong second-quarter results, driven by the acquisition of RPT Realty and solid operating performance. Net income available to common shareholders increased to $0.17 per diluted share, and FFO grew by 5.1% to $0.41 per diluted share. The company raised its full-year outlook for net income and FFO per diluted share.
Funds From Operations (FFO) grew 5.1% year-over-year to $0.41 per diluted share.
Same Property Net Operating Income (NOI) increased by 3.0% compared to the same period last year.
Pro-rata portfolio occupancy expanded to 96.2%, up 40 basis points year-over-year.
Pro-rata small shop occupancy reached 91.7%, matching the company's all-time record.
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Kimco Revenue by Segment
Forward Guidance
Kimco raised its 2024 outlook for Net income and FFO per diluted share.
Positive Outlook
- Net income is projected to be $0.44 to $0.46 per diluted share.
- FFO is projected to be $1.60 to $1.62 per diluted share.
- Total acquisitions & structured investments combined are projected at $300 to $350 million.
- Same Property NOI growth (inclusive of RPT) is expected to be 2.75% to 3.25%.
- RPT-related cost saving synergies included in G&A are projected at $35 to $36 million.
Challenges Ahead
- Dispositions are projected at $300 to $350 million.
- Cap rate (blended) for dispositions is expected to be 8.25% to 8.50%.
- Credit loss as a % of total pro-rata rental revenues is projected at (0.75%) to (1.00%).
- RPT-related non-cash GAAP income (above & below market rents and straight-line rents) is projected at $4 to $5 million.
- Capital expenditures (tenant improvements, landlord work and leasing commissions) are projected at $225 to $275 million.