On October 26, 2023, Kimco Realty Corp (KIM, Financial), North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers, announced its third-quarter results for the period ending September 30, 2023. The company reported a net income available to its common shareholders per diluted share of $0.18, a significant increase from $0.08 in the same period in 2022.
Financial Performance
The company's net income available to common shareholders for Q3 2023 was $112.0 million, or $0.18 per diluted share, compared to $51.6 million, or $0.08 per diluted share, for Q3 2022. The year-over-year change included an $88.7 million benefit from mark-to-market gains on marketable securities, primarily from a change in the value of Albertsons Companies, Inc. (NYSE: ACI) common stock held by the company.
Kimco's Funds From Operations (FFO) for Q3 2023 was $248.6 million, or $0.40 per diluted share, compared to $254.5 million, or $0.41 per diluted share, for Q3 2022.
Operational Highlights
Kimco leased 2.1 million square feet, generating blended pro-rata rent spreads on comparable spaces of 13.4%. The company's pro-rata portfolio occupancy ended the quarter at 95.5%, and pro-rata small shop occupancy expanded 10 basis points sequentially and 190 basis points year-over-year to 91.1%.
Investment and Disposition Activities
The company acquired Stonebridge at Potomac Town Center, a 96%-occupied, 504,000-square-foot, grocery-anchored lifestyle center in Woodbridge, Virginia, for $172.5 million. Kimco also agreed to acquire RPT Realty in an all-stock transaction valued at approximately $2 billion, expected to close in early 2024.
Capital Market Activities
Kimco ended Q3 2023 with over $2.4 billion of immediate liquidity, including full availability of the company’s $2.0 billion unsecured revolving credit facility and $424.3 million of cash and cash equivalents on the balance sheet.
Dividend Declarations
Kimco’s board of directors declared a quarterly cash dividend on common shares of $0.24 per share, representing an increase of 4.3% over the prior common dividend of $0.23 per share.
2023 Full Year Outlook
Kimco has updated its 2023 guidance ranges, with net income available to the company's common shareholders per diluted share expected to be between $0.96 and $0.98, and FFO per diluted share expected to be between $1.56 and $1.57.
Kimco Realty Corp (KIM, Financial) continues to demonstrate strong performance in its operations, with significant leasing activity and a robust financial position. The company's strategic acquisitions and increased dividend reflect its commitment to delivering value to its shareholders.
Explore the complete 8-K earnings release (here) from Kimco Realty Corp for further details.
