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Kimco Realty (NYSE:KIM) stock drove up 4.7% in Thursday morning trading after the owner of open-air, grocery-anchored shopping centers raised its 2023 guidance for same-property net operating income growth, given strong leasing activity during the third quarter.
The company now expects full-year funds from operations per share of $1.56-$1.57, vs. $1.56 average analyst estimate, narrowing from the prior view of $1.55-$1.57.
Same-property NOI for 2023 is expected to rise 1.75%-2.25%, compared with 1.00%-2.00% in the previous guide. Net of dispositions, total property acquisitions (including structured investments) are projected to be $175M vs. $100M in the previous target.
Q3 FFO per share of $0.40, slightly exceeding the $0.39 consensus, edged up from $0.39 in Q2 and slipped from $0.41 a year ago.
Revenue of $446.1M, vs. $436.2M consensus, rose from $442.8M in Q2 and from $433.4M in the year-earlier period.
“With virtually no new supply and strong demand from a multitude of tenants, buoyed by a resilient consumer, we continue to produce strong operating results capped off by the 2.1 million square feet leased during the quarter with positive double-digit leasing spreads highlighting our portfolio’s pricing power,” said CEO Conor Flynn.
Total operating expenses were $305.5M, up from $298.8M in Q2 and from $292.9M in Q3 2022.
During the quarter, Kimco (KIM) executed 457 leases totaling 2.1M square feet, generating blended pro-rata rent spreads on comparable spaces of 13.4%, with pro-rata cash rent spreads for new leases up 34.9% and renewals and options growing 8.8%.
Pro-rata portfolio occupancy ended the quarter at 95.5%, up 20 basis points Y/Y and down 30 basis points sequentially.