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Kimco Realty (KIM) Down 6% Since Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Kimco Realty Corporation (KIM - Free Report) . Shares have lost nearly 6% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Kimco Realty Meets Q4 FFO Estimates, Revenues Down Y/Y
Kimco’s fourth-quarter 2016 FFO as adjusted came in at $0.38 per share, in line with the Zacks Consensus Estimate and up $0.01 from the prior-year quarter figure of $0.37.
Total revenue for the quarter was $297.0, ahead of the Zacks Consensus Estimate of $286.2 million. However, total revenue was down 1.3% from the year-ago quarter.
Further, the company remains on track with its strategic 2020 Vision, which envisages the ownership of premium assets in core markets in the U.S. as well as a reduction in the joint-venture portfolio. The company essentially accomplished its exit from Canada by selling 34 Canadian shopping centers for a gross price of $894.7 million during 2016.
For full-year 2016, Kimco reported FFO as adjusted per share of $1.50, up from $1.46 in the prior year. The company’s total revenue inched up 0.3% from a year ago to nearly $1.2 billion.
Quarter in Details
At quarter end, U.S. pro-rata occupancy came in at 95.4%, reflecting an expansion of 30 basis points (bps) sequentially, but a contraction of 40 bps year over year.
Further, pro-rata occupancy for small shop space (under 10,000 square feet) was 89.9%, up 70 bps sequentially and 120 bps from a year ago, while anchor occupancy was 97.3%, denoting a 30 bps rise sequentially, but a decline of 90 bps from the comparable prior-year period.
U.S. same-property net operating income (NOI) climbed 2.7% year over year. Notably, same-property NOI for fourth-quarter 2016 contracted 110 bps due to the bankruptcy of Sports Authority. Pro-rata rental-rate leasing spreads moved north 14.8%, with rental rates for new leases and renewals/options, jumping 36.5% and 7.1%, respectively.
Balance Sheet Position
Kimco exited fourth-quarter 2016 with cash and cash equivalents of around $142.5 million, down from $189.5 million at year-end 2015.
Notably, in Nov 2016, the company issued a new $400 million, seven-year unsecured bond with a coupon of 2.70% and a new $350 million, 30-year unsecured bond with a coupon of 4.125%. The company used the proceeds for general corporate needs.
Portfolio Activity
Kimco’s fourth-quarter acquisitions totaled 353,000 square feet of space, worth $88.7 million, of which the company’s share was $68.1 million. On the other hand, Kimco’s fourth-quarter sales aggregated $134.4 million and included 966,000 square feet for six U.S. shopping centers. The company’s share of the sales price was $63.7 million.
For full-year 2016, Kimco acquired stakes in 15 shopping centers, aggregating 2.4 million square feet. This included eight acquisitions from existing joint-venture partners. Total purchase price for these acquisitions was $625.3 million (including $210.2 million of debt) and Kimco’s share of the purchase price was $457.1 million. For 2016, Kimco’s share of shopping center dispositions aggregated $982.4 million from the sale of interests in 34 Canadian properties for $571.5 million as well as 31 U.S. properties for $410.9 million.
Guidance
Kimco provided its outlook for 2017. The company projects FFO per share in the $1.50–$1.54 band.
Notably, the company estimates the U.S. portfolio occupancy in the range of 95.8–96.2%, same-property NOI (including redevelopments) to grow 2.0–3.0%, operating property acquisitions of $300–$400 million and dispositions of $250–$350 million.
Dividend Update
Kimco’s board of directors announced a quarterly cash dividend of $0.27. The dividend will be paid on Apr 17, 2017, to shareholders of record as of Apr 5.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision higher for the current quarter compared to two lower.
At this time, Kimco Realty's stock has a poor Growth Score of 'F', however its Momentum is doing a bit better with a 'C'. Following the similar course, the stock was allocated also a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate the company's stock is suitable solely for momentum investors.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of these revisions has been net zero. Notably, the stock has Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Kimco Realty (KIM) Down 6% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Kimco Realty Corporation (KIM - Free Report) . Shares have lost nearly 6% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Kimco Realty Meets Q4 FFO Estimates, Revenues Down Y/Y
Kimco’s fourth-quarter 2016 FFO as adjusted came in at $0.38 per share, in line with the Zacks Consensus Estimate and up $0.01 from the prior-year quarter figure of $0.37.
Total revenue for the quarter was $297.0, ahead of the Zacks Consensus Estimate of $286.2 million. However, total revenue was down 1.3% from the year-ago quarter.
Further, the company remains on track with its strategic 2020 Vision, which envisages the ownership of premium assets in core markets in the U.S. as well as a reduction in the joint-venture portfolio. The company essentially accomplished its exit from Canada by selling 34 Canadian shopping centers for a gross price of $894.7 million during 2016.
For full-year 2016, Kimco reported FFO as adjusted per share of $1.50, up from $1.46 in the prior year. The company’s total revenue inched up 0.3% from a year ago to nearly $1.2 billion.
Quarter in Details
At quarter end, U.S. pro-rata occupancy came in at 95.4%, reflecting an expansion of 30 basis points (bps) sequentially, but a contraction of 40 bps year over year.
Further, pro-rata occupancy for small shop space (under 10,000 square feet) was 89.9%, up 70 bps sequentially and 120 bps from a year ago, while anchor occupancy was 97.3%, denoting a 30 bps rise sequentially, but a decline of 90 bps from the comparable prior-year period.
U.S. same-property net operating income (NOI) climbed 2.7% year over year. Notably, same-property NOI for fourth-quarter 2016 contracted 110 bps due to the bankruptcy of Sports Authority. Pro-rata rental-rate leasing spreads moved north 14.8%, with rental rates for new leases and renewals/options, jumping 36.5% and 7.1%, respectively.
Balance Sheet Position
Kimco exited fourth-quarter 2016 with cash and cash equivalents of around $142.5 million, down from $189.5 million at year-end 2015.
Notably, in Nov 2016, the company issued a new $400 million, seven-year unsecured bond with a coupon of 2.70% and a new $350 million, 30-year unsecured bond with a coupon of 4.125%. The company used the proceeds for general corporate needs.
Portfolio Activity
Kimco’s fourth-quarter acquisitions totaled 353,000 square feet of space, worth $88.7 million, of which the company’s share was $68.1 million. On the other hand, Kimco’s fourth-quarter sales aggregated $134.4 million and included 966,000 square feet for six U.S. shopping centers. The company’s share of the sales price was $63.7 million.
For full-year 2016, Kimco acquired stakes in 15 shopping centers, aggregating 2.4 million square feet. This included eight acquisitions from existing joint-venture partners. Total purchase price for these acquisitions was $625.3 million (including $210.2 million of debt) and Kimco’s share of the purchase price was $457.1 million. For 2016, Kimco’s share of shopping center dispositions aggregated $982.4 million from the sale of interests in 34 Canadian properties for $571.5 million as well as 31 U.S. properties for $410.9 million.
Guidance
Kimco provided its outlook for 2017. The company projects FFO per share in the $1.50–$1.54 band.
Notably, the company estimates the U.S. portfolio occupancy in the range of 95.8–96.2%, same-property NOI (including redevelopments) to grow 2.0–3.0%, operating property acquisitions of $300–$400 million and dispositions of $250–$350 million.
Dividend Update
Kimco’s board of directors announced a quarterly cash dividend of $0.27. The dividend will be paid on Apr 17, 2017, to shareholders of record as of Apr 5.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision higher for the current quarter compared to two lower.
Kimco Realty Corporation Price and Consensus
Kimco Realty Corporation Price and Consensus | Kimco Realty Corporation Quote
VGM Scores
At this time, Kimco Realty's stock has a poor Growth Score of 'F', however its Momentum is doing a bit better with a 'C'. Following the similar course, the stock was allocated also a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate the company's stock is suitable solely for momentum investors.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of these revisions has been net zero. Notably, the stock has Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.