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Kimco Realty (KIM)
NYSE:KIM
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Kimco Realty
(NYSE:KIM)
Rating:78Outperform
Price Target:
$24.00
▲(14.34%Upside)
Positive Factors
Demand and Leasing
Strong leasing volume at 13.3% cash lease spreads indicates robust demand for Kimco's properties.
Earnings and Financial Performance
1Q25 NAREIT FFOps was $0.44 above the Street expectations.
Financial Strategy
A $59 million share repurchase signals confidence in the company's valuation and future prospects.
Negative Factors
Credit and Debt Issues
Credit loss increased to 86bps of revenues.
Occupancy and Bankruptcy Risks
A decrease in occupancy assumptions is driven by moveouts from bankruptcies.
Tenant Credit Concerns
The target price is lowered from $27 to $21 due to increased tenant credit concerns.
Kimco Realty (KIM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.08B
Dividend Yield4.71%
Average Volume (3M)4.43M
Price to Earnings (P/E)27.2
Beta (1Y)0.86
Revenue Growth12.55%
EPS Growth45.10%
CountryUS
Employees717
SectorReal Estate
Sector Strength66
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.18
Shares Outstanding676,496,300
10 Day Avg. Volume3,651,165
30 Day Avg. Volume4,427,658
Financial Highlights & Ratios
PEG Ratio0.67
Price to Book (P/B)1.39
Price to Sales (P/S)0.00
P/FCF Ratio13.37
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue1.82
Enterprise Value/Gross Profit10.23
Enterprise Value/Ebitda2.95
Forecast
1Y Price Target
$24.06Price Target Upside14.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Kimco Realty Business Overview & Revenue Model
Company DescriptionKimco Realty (KIM) is a publicly traded real estate investment trust (REIT) that specializes in the acquisition, development, and management of open-air, grocery-anchored shopping centers. Headquartered in Jericho, New York, the company primarily operates in the retail real estate sector, focusing on sites in major metropolitan markets across the United States. Kimco Realty's portfolio is characterized by its high-quality properties that cater to a broad range of retail tenants.
How the Company Makes MoneyKimco Realty generates revenue primarily through leasing space in its shopping centers to a diverse mix of national, regional, and local retail tenants. The company earns income through base rent, which is the primary component of its revenue stream, and additional charges such as common area maintenance fees, property taxes, and insurance costs, which are typically passed on to tenants. Kimco also benefits from growth opportunities through property redevelopment, expansion projects, and strategic acquisitions. The company's financial performance is supported by its focus on maintaining high occupancy rates and the strategic location of its properties in densely populated areas with strong consumer demand.
Kimco Realty Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 6.33%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong leasing performance, high occupancy rates, and strategic acquisitions, leading to raised full-year guidance. While there were challenges due to retailer bankruptcies and macroeconomic fluctuations, the company's strong financial position and successful backfilling of vacancies suggest resilience and growth potential.Q1-2025 Updates
Positive Updates
Strong Leasing Performance
Signed 583 leases totaling 4.4 million square feet with a blended pro-rata cash rent spread of 13.3% and new lease spreads of 48.7%, the highest in over seven years.
High Occupancy Rates
Occupancy remains healthy at 95.8% pro-rata with small shops climbing 20 basis points year-over-year to 91.7%.
Same Property NOI Growth
Same property NOI grew 3.9%, driven by healthy leasing activity, rent growth, and disciplined cost management.
Positive Tenant Credit Loss
Tenant credit loss remained favorable at just 56 basis points, reflecting portfolio diversity and stability.
Successful Backfilling of Vacancies
Resolved half of the Party City leases with a blended rent spread of approximately 35% and have LOIs for nearly all remaining spaces.
Acquisition of High-Quality Assets
Completed the strategic $108 million acquisition of The Markets at Town Center in Jacksonville.
Strong Financial Position
Rock solid balance sheet with $2 billion in liquidity and repaid approximately $550 million of debt during the quarter.
Raised Full-Year Guidance
Raised full-year guidance for both net income and FFO per diluted share, reflecting strong first quarter results and future cash flow visibility.
Negative Updates
Impact of Retailer Bankruptcies
Bankruptcies of Party City, Big Lots, and Joann's impacted the portfolio, though Kimco was able to quickly backfill spaces.
Temporary Dip in Occupancy
Expect a temporary dip in occupancy due to the vacating of all leases with Party City, Big Lots, and Joann's.
Macroeconomic Fluctuations
Monitoring macroeconomic fluctuations, including tariffs, employment trends, inflation, and interest rates.
Company Guidance
During Kimco Realty's first quarter 2025 earnings call, the company demonstrated strong performance metrics and updated its full-year guidance. The company signed 583 leases totaling 4.4 million square feet, achieving blended pro-rata cash rent spreads of 13.3%, with new lease spreads reaching 48.7%. Occupancy was healthy at 95.8% pro-rata, and small shops saw a year-over-year increase of 20 basis points to 91.7%. Same property NOI grew by 3.9%, driven by robust leasing activity, rent growth, and disciplined cost management. Kimco's tenant credit loss remained low at 56 basis points, despite some tenant bankruptcies. The company also announced the off-market acquisition of a premier grocery-anchored asset for $108 million and repurchased 3 million shares at an average price of $19.61, reflecting a 24% discount to consensus NAV. With a strong balance sheet and $2 billion in liquidity, Kimco raised its full-year guidance for net income and FFO per diluted share, indicating confidence in its long-term prospects.Kimco Realty Financial Statement Overview
Summary
Kimco Realty demonstrates strong financial health with robust revenue growth and efficient operations. The company maintains a healthy gross profit margin and improved net profit margins, reflecting operational efficiency and effective cost management. The balance sheet is stable with a moderate level of leverage, and cash flow generation is consistent, supporting growth initiatives.Income Statement
Kimco Realty has demonstrated strong revenue growth with a significant increase in total revenue from 2020 to TTM 2025. The gross profit margin has remained healthy, indicating effective cost management. However, net profit margin has been volatile, with a notable loss in 2022, though it improved significantly in subsequent periods. The EBIT and EBITDA margins are robust, reflecting operational efficiency.85
Very Positive
Balance Sheet
The balance sheet shows a stable equity ratio, suggesting a strong capital structure with adequate stockholders' equity relative to total assets. However, the debt-to-equity ratio indicates a moderate level of leverage. Return on equity has improved significantly after a low in 2022, driven by increased net income, enhancing shareholder value.78
Positive
Cash Flow
Cash flow analysis reveals consistent operating cash flow generation, with substantial free cash flow, signaling strong cash generation capabilities. Free cash flow has shown consistent growth, although the operating cash flow to net income ratio has fluctuated, reflecting variations in profitability and cash conversion efficiency.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.07B | 2.04B | 1.78B | 1.73B | 1.36B | 1.06B | Gross Profit |
| 1.42B | 1.40B | 1.23B | 1.20B | 946.67M | 714.92M | EBIT |
| 678.88M | 629.09M | 638.78M | 565.46M | 424.29M | 332.61M | EBITDA |
| 1.34B | 1.26B | 1.09B | 1.08B | 842.55M | 625.83M | Net Income Common Stockholders |
| 554.58M | 410.79M | 654.27M | -12.35M | 844.06M | 1.00B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 136.14M | 690.91M | 783.76M | 747.56M | 1.55B | 1.00B | Total Assets |
| 19.47B | 20.31B | 18.27B | 17.83B | 18.46B | 11.61B | Total Debt |
| 7.72B | 8.58B | 7.73B | 7.27B | 7.60B | 5.45B | Net Debt |
| 7.58B | 7.89B | 6.94B | 7.12B | 7.26B | 5.16B | Total Liabilities |
| 8.63B | 9.46B | 8.55B | 8.09B | 8.34B | 5.93B | Stockholders Equity |
| 10.62B | 10.65B | 9.53B | 9.52B | 9.90B | 5.61B |
| Cash Flow | Free Cash Flow | ||||
| 1.05B | 1.01B | 1.07B | 861.11M | 402.06M | 362.69M | Operating Cash Flow |
| 1.05B | 1.01B | 1.07B | 861.11M | 618.88M | 589.91M | Investing Cash Flow |
| -650.52M | -318.54M | -136.98M | -63.22M | -476.26M | -33.27M | Financing Cash Flow |
| -407.08M | -781.11M | -300.70M | -982.73M | -102.70M | -387.40M |
Kimco Realty Technical Analysis
Positive
20.99
Price Trends
20.43
Positive
20.90
Positive
21.98
Negative
Market Momentum
0.08
Positive
54.42
Neutral
33.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KIM, the sentiment is Positive. The current price of 20.99 is above the 20-day moving average (MA) of 20.87, above the 50-day MA of 20.43, and below the 200-day MA of 21.98, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 33.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KIM.
Kimco Realty Risk Analysis
Kimco Realty disclosed 41 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 3 New Risks
1.
We are subject to risks and costs arising from disclosures, commitments, evaluations and other items related to sustainability or corporate responsibility. Q4, 2024
2.
Hedging activity may expose us to risks, including the risks that a counterparty will not perform and that the hedge will not yield the economic benefits we anticipate, which may adversely affect us. Q4, 2024
3.
We have experienced cybersecurity attacks, and future attacks and incidents could materially impact our business, financial condition and results of operations. Q4, 2024
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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.78B | 19.21 | 9.35% | 5.62% | 5.40% | -1.33% | |
78 Outperform | $14.08B | 27.22 | 5.19% | 4.71% | 12.55% | 45.10% | |
74 Outperform | $7.66B | 23.90 | 10.99% | 4.47% | 4.58% | 12.65% | |
73 Outperform | $8.21B | 27.12 | 9.85% | 4.65% | 6.07% | 24.23% | |
69 Neutral | $4.81B | 355.52 | 0.81% | 4.79% | 4.37% | -75.82% | |
69 Neutral | $13.09B | 33.60 | 5.83% | 3.86% | 7.39% | 3.41% | |
61 Neutral | $2.82B | 10.88 | 0.42% | 8438.92% | 5.74% | -20.95% |
* Real Estate Sector Average
Performance Comparison
KIM
Kimco Realty
20.99
3.25
18.32%
NNN
National Retail Properties
41.69
2.16
5.46%
REG
Regency Centers
72.01
13.58
23.24%
KRG
Kite Realty Group
22.59
1.55
7.37%
FRT
Federal Realty
96.42
-0.04
-0.04%
BRX
Brixmor Property
25.59
4.29
20.14%
Kimco Realty Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Kimco Realty’s Annual Meeting Decisions Impact Governance
Neutral
Apr 30, 2025
On April 29, 2025, Kimco Realty held its Annual Meeting where several key proposals were voted on by shareholders. The meeting included the election of nine directors to the Board, approval of executive compensation, ratification of PricewaterhouseCoopers LLP as the independent accounting firm, and approval of a new plan. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.
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.