Kimco Realty Corporation (KIM), headquartered in Jericho, New York, is a real estate investment trust (REIT), which is one of North America’s largest publicly traded owner and operator of high-quality, open-air, grocery-anchored shopping centers and mixed-use properties in the U.S. Valued at $12.81 billion by market cap, the company specializes in shopping center ownership, management, acquisitions, and value-enhancing redevelopment activities for more than 60 years.
Shares of this leading REIT have underperformed the broader market considerably over the past year. KIM has gained 1.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.6%. In 2024, KIM stock is down 10.8%, while the SPX is up 11.3% on a YTD basis.
Narrowing the focus, KIM’s underperformance looks less pronounced compared to the US REIT iShares Core ETF (USRT). The exchange-traded fund has gained about 6.2% over the past year. The ETF’s 3.2% loss on a YTD basis compare to the stock’s double-digit loss over the same time frame.
On May 2, KIM reported its Q1 results. The company’s revenue of $503.80 million was higher than analysts' expectations of $468.80 million, and its funds from operations stood at $261.80 million or $0.39, higher than Wall Street estimates of $0.38 per share. KIM has guided full-year funds from operations to come between $1.56 and $1.60 per share. The stock rose over 2% on the earnings release day.
For the current fiscal year, ending in December, analysts expect KIM’s FFO to grow 1.3% to $1.59 on a diluted basis. The company’s surprise history is impressive. It beat or matched the consensus FFO estimate in each of the last four quarters.
Among the 21 analysts covering KIM stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings and 12 “Holds.”
This configuration is slightly less bullish than three months ago, with 11 suggesting a “Strong Buy.”
Recently, Citigroup analyst Michael Bilerman downgraded KIM stock from “Buy” to “Neutral” and lowered the price target from $26 to $20, implying a potential upside of 5.3% from the current levels.
The mean price target of $22.16 represents a 16.6% premium to KIM’s current price levels. The Street-high price target of $26 suggests an ambitious upside potential of 36.8%.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
