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Kimco Realty (KIM)
NYSE:KIM
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Kimco Realty
(NYSE:KIM)63Neutral
Positive Factors
Financial Performance
Kimco Realty Corp increased its full-year funds from operations guidance, surpassing market expectations.
Leasing Activity
Leasing activities remain strong with a record occupancy rate for small shops, indicating robust demand.
Negative Factors
Debt and Financial Risk
Despite easing, credit losses are still considered in the guidance, indicating some level of financial risk.
Kimco Realty (KIM) vs. S&P 500 (SPY)
Market Cap
$14.59B
Dividend Yield4.53%
Average Volume (3M)4.62M
Price to Earnings (P/E)38.9
Beta (1Y)1.03
Revenue Growth14.51%
EPS Growth-45.53%
CountryUS
Employees660
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)0.55
Shares Outstanding679,482,060
10 Day Avg. Volume4,810,677
30 Day Avg. Volume4,623,117
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.16
Price to Cash Flow (P/CF)15.20
P/FCF Ratio11.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.58Price Target Upside14.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Kimco Realty Business Overview & Revenue Model
Company DescriptionKimco Realty Corporation (KIM) is a real estate investment trust (REIT) that specializes in the ownership, management, and development of open-air, grocery-anchored shopping centers and mixed-use assets across the United States. Founded in 1966 and headquartered in Jericho, New York, Kimco is one of the largest publicly traded owners and operators of open-air shopping centers, with a portfolio that offers a diverse mix of retail, dining, and service-oriented tenants.
How the Company Makes MoneyKimco Realty generates revenue primarily through leasing space in its shopping centers to a variety of tenants, including national retailers, grocery stores, and local businesses. The company earns income through rental payments from these tenants, which are often structured as long-term leases with fixed base rents and potential additional rent based on sales performance. Kimco also creates value through strategic redevelopment and repositioning of properties to enhance their appeal and drive higher occupancy rates. Additionally, the company may engage in property sales, joint ventures, and partnerships to optimize its portfolio and unlock capital for reinvestment. Factors such as location, tenant mix, and economic conditions significantly influence Kimco's earnings.
Kimco Realty Financial Statement Overview
Summary
Kimco Realty displays solid financial health with strong revenue growth and a robust capital structure devoid of debt. The company's ability to generate cash flow remains intact, although recent net income and free cash flow growth fluctuations pose potential challenges. The company's effective cost management is reflected in stable profit margins, although the negative EBITDA should be addressed. Overall, Kimco Realty is well-positioned in the REITs industry with a healthy balance sheet and cash flow management.Income Statement
Kimco Realty has demonstrated a solid revenue growth of 14.2% from 2023 to 2024, indicating a strong upward trajectory. The gross profit margin is stable at approximately 68.7%, showcasing efficiency in managing direct costs. However, the net profit margin has decreased to 20.2% in 2024 from 36.7% in 2023, primarily due to a significant drop in net income, which could be a potential concern. EBIT margin has maintained a healthy level at 30.9% in 2024, but the negative EBITDA indicates issues with depreciation and amortization costs.72
Positive
Balance Sheet
The balance sheet is robust with zero total debt as of 2024, indicating no leverage risk. The equity ratio has improved to 52.5%, reflecting a strong capital structure. Return on equity has decreased to 3.9% in 2024 from 6.9% in 2023, showing reduced profitability for shareholders. Overall, the company maintains a strong financial position with a high level of equity relative to assets.80
Positive
Cash Flow
Free cash flow remains strong at over $1 billion, with a slight decrease from 2023, yet indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust at 2.4, suggesting strong cash conversion from earnings, despite the lower net income. However, the decline in free cash flow growth rate from previous years may indicate challenges in sustaining cash flow growth.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.04B | 1.78B | 1.73B | 1.36B | 1.06B | Gross Profit |
| 1.40B | 1.23B | 1.20B | 946.67M | 714.92M | EBIT |
| 629.09M | 638.78M | 565.46M | 424.29M | 332.61M | EBITDA |
| -526.12M | 1.09B | 1.08B | 842.55M | 625.83M | Net Income Common Stockholders |
| 410.79M | 654.27M | -12.35M | 844.06M | 1.00B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 692.02M | 783.76M | 747.56M | 1.55B | 1.00B | Total Assets |
| 20.31B | 18.27B | 17.83B | 18.46B | 11.61B | Total Debt |
| 8.58B | 7.73B | 7.27B | 7.60B | 5.45B | Net Debt |
| 7.89B | 6.94B | 7.12B | 7.26B | 5.16B | Total Liabilities |
| 9.46B | 8.55B | 8.09B | 8.34B | 5.93B | Stockholders Equity |
| 10.65B | 9.53B | 9.52B | 9.90B | 5.61B |
| Cash Flow | Free Cash Flow | |||
| 1.01B | 1.07B | 861.11M | 402.06M | 362.69M | Operating Cash Flow |
| 1.01B | 1.07B | 861.11M | 618.88M | 589.91M | Investing Cash Flow |
| -318.54M | -136.98M | -63.22M | -476.26M | -33.27M | Financing Cash Flow |
| -781.11M | -300.70M | -982.73M | -102.70M | -387.40M |
Kimco Realty Technical Analysis
Negative
21.43
Price Trends
22.06
Negative
23.05
Negative
21.83
Negative
Market Momentum
-0.22
Negative
44.69
Neutral
10.31
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KIM, the sentiment is Negative. The current price of 21.43 is below the 20-day moving average (MA) of 21.60, below the 50-day MA of 22.06, and below the 200-day MA of 21.83, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 10.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KIM.
Kimco Realty Risk Analysis
Kimco Realty disclosed 44 risk factors in its most recent earnings report. Kimco Realty reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kimco Realty Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.18B | 23.99 | 11.61% | 4.14% | 3.41% | 10.54% | |
72 Outperform | $8.71B | 29.50 | 9.58% | 4.34% | 6.21% | 22.32% | |
71 Outperform | $13.58B | 35.24 | 5.82% | 3.65% | 10.15% | 3.36% | |
65 Neutral | $2.74B | 119.15 | 1.11% | 3.29% | 1.69% | -7.10% | |
64 Neutral | $4.89B | 1,203.24 | 0.52% | 4.60% | 2.42% | -91.46% | |
63 Neutral | $14.59B | 38.87 | 4.03% | 4.53% | 14.51% | -45.53% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% |
* Real Estate Sector Average
Performance Comparison
KIM
Kimco Realty
21.43
2.87
15.46%
REG
Regency Centers
73.96
14.46
24.30%
AKR
Acadia Realty
22.51
6.59
41.39%
KRG
Kite Realty Group
22.41
2.07
10.18%
FRT
Federal Realty
101.31
2.68
2.72%
BRX
Brixmor Property
26.70
4.83
22.09%
Kimco Realty Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: -3.25% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong operational performance and positive strategic moves, such as the RPT Realty acquisition and high leasing activity. However, the sentiment is tempered by tenant bankruptcies and increased interest expenses, leading to a cautious outlook for 2025.Highlights
Strong Same-Site NOI Growth
Same-site NOI growth was 4.5% for the fourth quarter and 3.5% for the full year 2024, outperforming expectations.
RPT Realty Acquisition Success
Kimco Realty Corporation successfully integrated RPT Realty, achieving a cap rate of 8.5%, increasing occupancy by 120 basis points, and realizing cost synergies of $36 million.
Record Leasing Activity
57 new leases were signed with an average pro-rata cash rent spread of 52%, and 98 renewals with a blended spread of 9.9%.
High Occupancy Rates
Year-end portfolio occupancy stood at 96.3%, reflecting a strong leasing pipeline despite some tenant vacancies.
Positive Credit Rating Outlook
Moody's affirmed Kimco's Baa1 unsecured debt rating and changed the outlook from stable to positive.
Lowlights
Tenant Bankruptcies Impact
Recent bankruptcies, including Big Lots, Party City, and Joanne, represent a 130 basis point impact on the portfolio.
Increased Interest Expense
Pro-rata interest expense increased by $16.4 million due to higher debt levels from the RPT acquisition and prefunding of debt maturity.
Sequential Decline in Occupancy
Despite year-over-year improvements, there was a 10 basis point sequential decline in occupancy.
Modest Same-Site NOI Growth Forecast
2025 same-site NOI growth is forecasted at 2% plus, reflecting potential impacts from tenant bankruptcies.
Company Guidance
During Kimco Realty Corporation's fourth quarter 2024 earnings call, management provided guidance for 2025, projecting a Funds From Operations (FFO) per share range of $1.70 to $1.72, reflecting an increase of 3% to 4.2% over the previous year. The company anticipates same-property Net Operating Income (NOI) growth of 2% or more, with a credit loss assumption of 75 to 100 basis points. Kimco plans to acquire $100 million to $125 million in properties, including structured investments, net of dispositions. The company highlighted its robust leasing momentum, with portfolio occupancy at 96.3% and a strategic focus on grocery-anchored and mixed-use properties. Kimco's balance sheet remains strong, with consolidated net debt to EBITDA at 5.3 times and ample liquidity, including $690 million in cash and a fully available $2 billion revolving credit facility.Kimco Realty Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Kimco Realty Announces Leadership Changes and Board Transition
Neutral
Jan 21, 2025
On January 20, 2025, Kimco Realty announced changes to its Board of Directors, including the election of Nancy Lashine and Ross Cooper, and the upcoming retirement of Executive Chairman Milton Cooper. Richard Saltzman, currently a board member and Chair of the Audit Committee, will succeed Cooper as the independent Chairman of the Board. Cooper will be honored as Chairman Emeritus after more than six decades of leadership at Kimco, and will step down at the 2025 Annual Meeting. These changes mark a significant leadership transition, reflecting the company’s ongoing strategic evolution and commitment to maintaining its industry leadership.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.