New York-based Kimco Realty Corporation (KIM) is a real estate investment trust (REIT). With a market cap of $14.7 billion, the company specializes in owning and operating open-air, grocery-anchored shopping centers across North America alongside a growing portfolio of mixed-use assets.
This leading REIT company has substantially underperformed the broader market over the past year. KIM is up 9.1% over the past 52 weeks lagging behind the S&P 500 Index’s ($SPX) 18.2% returns during the same time frame. In 2024, KIM has gained 2.3% compared to the SPX’s 11.5% gains on a YTD basis.
Zooming in further, KIM has also lagged behind the JPM Realty Income ETF’s (JPRE) 12.9% returns over the past 52 weeks and 6.1% gains on a YTD basis.
Despite underperforming the broader market over the past year, KIM has shown impressive resilience over the past three months, with its share prices surging by 15.2%. The company surpassed Wall Street’s funds from operations (FFO) estimates in the past two quarters, leading to a surge in price. Moreover, KIM rose 1.3% after its Q2 earnings release on Aug. 1, with revenues up by 13% annually and net income by 11.3%.
For the current fiscal year, ending in December, analysts expect Kimco Realty's FFO per share to grow 2.6% year over year to $1.61. The company has a history of exceeding or matching the consensus FFO per share estimates in each of the last four quarters.
Among the 21 analysts covering the KIM stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings and 12 “Holds.”
This configuration has been consistent over the past months.
On Aug. 2, Evercore ISI analyst Steve Sakwa maintained a “Hold” rating on Kimco Realty and set a price target of $21.
KIM’s mean price target of $22.45 represents a premium of just 3% from current price levels. The Street-high target of $29 indicates a potential upside of 33.1%.
On the date of publication, Aditya Sarawgi 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.
