Kimco Realty beats quarterly estimates on steady demand for retail shops
Feb 8 (Reuters) - Kimco Realty topped Wall Street expectations for fourth-quarter revenue on Thursday, driven by sustained leasing demand and higher rentals of the properties let out in its grocery-anchored shopping centers.
Kimco, a commercial real estate investment trust (REIT), has its shopping centres concentrated in suburbs in major metropolitan cities.
The company reported quarterly funds from operations (FFO), a key performance measure for REITs, of 39 cents per share, in line with expectations, as landlords raised rentals of leased retail spaces taking advantage of fewer listings in the market.
Retailers and grocers have benefitted from higher prices as demand for essential goods remained steady despite a cost-of-living crisis.
Kimco posted a 2.7% rise in revenue to $451.60 million for the quarter ended Dec. 31, topping analysts' average estimate of $447.43 million, as per LSEG data.
The company forecast full-year 2024 FFO per share between $1.54 and $1.58, compared with analysts' estimates of $1.62 per share. (Reporting by Annett Mary Manoj in Bengaluru; Editing by Shweta Agarwal)
