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Jun 30, 2024
Kimco Q2 2024 Earnings Report
Kimco's Q2 2024 performance was marked by strong operating results, driving growth in net income and FFO. Small shop occupancy matched a record high, and the 2024 outlook was raised.
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.
Kimco
Kimco
Kimco Revenue by Segment
Revenue by Segment
Rental Property Income Revenue
CapyFin.comManagement Fee Income Revenue
CapyFin.com 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.