Kimco Realty Corporation (KIM) is a leading real estate investment trust (REIT) specializing in high-quality, open-air grocery-anchored shopping centers and mixed-use properties across the United States. With a market cap of $15.9 billion, the company focuses on essential retail spaces in top metropolitan markets, emphasizing tenant diversity and corporate responsibility.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks and Kimco Realty fits this criterion perfectly. Kimco Realty stands out in the market for its strategic focus on essential retail spaces in high-barrier coastal and rapidly growing Sun Belt markets, coupled with its commitment to sustainability and community engagement.
However, the REIT has declined 3.7% from its 52-week high of $24.25. Shares of KIM are up 24.5% over the past three months, outperforming The Real Estate Select Sector SPDR Fund's (XLRE) 18.1% return in the same period.
In the longer term, over the past 52 weeks, Kimco Realty's shares have climbed 32.1%, outpacing XLRE’s return of 29.4%. However, shares of KIM have risen 9.6% on a YTD basis, lagging behind XLRE's 11.5% gain over the same time period.
Yet, KIM has been in a bullish trend, trading above its 200-day and 50-day moving averages since July.
Shares of Kimco Realty rose 1.3% on Aug. 1 due to the company's stronger-than-expected Q2 FFO of $0.41 per share and revenue of $500.2 million, driven by robust leasing demand at its grocery-anchored shopping centers. Additionally, Kimco raised its full-year funds from operations (FFO) forecast to between $1.60 per share and $1.62 per share, reflecting confidence in future cash flow, bolstered by $63 million in signed leases yet to commence.
In comparison, rival Federal Realty Investment Trust (FRT) has seen an 11.4% rise on a YTD basis, outperforming Kimco Realty, but FRT’s 24.3% gain over the past 52 weeks lags behind KIM's performance during the same period.
Despite KIM’s relative outperformance over the past year, analysts are cautiously optimistic about the stock's prospects. The stock has a consensus rating of “Moderate Buy” from the 23 analysts covering it, and it is currently trading below the mean price target of $24.20.
On the date of publication, Sohini Mondal 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.
