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Kimco Realty has raised its full-year net income forecast after reporting second-quarter revenue and funds from operations (FFO) that exceeded market expectations. The real estate investment trust benefited from steady leasing demand across its grocery-anchored shopping centres, supported by limited retail space supply and consistent consumer demand for essential goods. The company also increased the lower end of its annual FFO guidance while maintaining the upper end. The results reflect continued strength in the open-air retail segment, where leasing activity and shopper footfall have remained stable despite broader market challenges.
Kimco Realty has increased its full-year net income forecast after reporting second-quarter financial results that came in ahead of Wall Street estimates. The company benefited from sustained leasing demand across its portfolio of grocery-anchored shopping centres, which continued to attract retailers looking for quality open-air retail spaces.
The real estate investment trust (REIT) said steady demand for open-air retail properties, combined with limited availability of rental space, continued to support its leasing performance during the quarter. The company stated that constrained new shopping centre supply, steady consumer demand for everyday essentials and strong shopper traffic across its open-air portfolio helped maintain healthy leasing activity.
During the second quarter, Kimco Realty reported funds from operations (FFO), a key performance measure for REITs, of USD 0.46 per share, up 4.5% from the corresponding period last year. The figure was slightly higher than analysts' estimate of USD 0.45 per share, according to LSEG data.
The company's total revenue for the quarter stood at USD 550.8 million, surpassing analysts' expectations of USD 541.7 million.
Following the stronger-than-expected performance, Kimco Realty revised its full-year net income guidance upward. The company now expects net income of between USD 1.00 and USD 1.03 per share, compared with its earlier forecast of between USD 0.83 and USD 0.87 per share.
Kimco Realty also increased the lower end of its full-year FFO guidance by USD 0.02 to USD 1.83 per share while keeping the upper end unchanged at USD 1.84 per share.
The company has continued to benefit from retailer preference for grocery-anchored shopping centres, which have generally remained more resilient than several other retail property formats due to regular customer visits for essential purchases. Limited new retail supply has also helped landlords maintain occupancy levels and support leasing momentum.
Source Reuters
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