Kimco Realty (KIM) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Kimco's grocery-anchored premium properties in high-growth areas and a healthy balance sheet are strengths. Yet, high e-commerce adoption ails.
Expanding its position in the Jacksonville market, KIM acquires The Markets at Town Center for $108 million.
I am increasingly focusing on higher-yielding dividend stocks due to the need for income, especially for older and retired investors. With the market's high valuation, future returns will likely rely more on dividends, making high-yield stocks more attractive. Retail real estate stands out with low vacancy rates and favorable supply conditions, offering strong investment opportunities.
Kimco Realty is no longer a bargain; the current valuation doesn't offer good value, and rotation to other investments like FRT is recommended. Despite strong fundamentals, including high occupancy and rent growth, Kimco's AFFO growth rate of 1.5% per year is unimpressive. Kimco's focus on grocery-anchored centers and sunbelt markets is positive, but interest rate and macro risks make it less attractive now.
Connor Flynn, Kimco Realty CEO, joins CNBC's 'Power Lunch' to discuss outlooks on the consumer amidst the holiday shopping season.
KIM gains from its strategically located predominant grocery-anchored portfolio, diverse tenant base and strong balance sheet. High e-commerce adoption ails.
Kimco Realty Corporation has seen a 23% year-to-date total return, driven by a 4.2% dividend hike and record-high occupancy rates. Kimco's fiscal 2024 third quarter FFO increased by 7.5% year-over-year to $0.43 per share, with free cash flow covering dividends by 174%. KIM's debt maturity is well-laddered, with most debt due post-2030, and a strong balance sheet earning an “A-” investment-grade rating from Fitch.
KIM's focus on grocery-anchored centers, mixed-use assets and a solid balance sheet position is likely to bode well for long-term growth.
Kimco Realty's Q3 funds from operations beat expectations, reaching $0.43 per share, and I anticipate a $0.01 dividend hike next quarter, boosting yield to 4.1%. The trust's diversified portfolio, focused on grocery-anchored shopping centers in major metro markets, ensures steady foot traffic and rental income growth. With a portfolio occupancy of 96.4% and limited new supply in the market, KIM is well-positioned for continued rental income growth.
Does Kimco Realty (KIM) have what it takes to be a top stock pick for momentum investors? Let's find out.
KIM's Q3 results reflect better-than-anticipated revenues. However, a rise in interest expenses acts as a dampener.