Kimco Realty (KIM) Q2 2024 earnings summary

Executive summary

• Portfolio performance remains strong, with 96.2% occupancy, record small shop occupancy at 91.7%, and robust leasing activity, driven by grocery-anchored, necessity-based retail centers and the RPT Realty acquisition.

• FFO per diluted share grew 5.1% year-over-year to $0.41, with same-site NOI up 3.0% for Q2 and 3.4% for the first half of 2024.

• RPT Realty integration exceeded expectations, delivering $35–$36 million in cost synergies and accelerating revenue opportunities.

• Portfolio remains diversified, with 83% of ABR from grocery-anchored centers and no tenant representing more than 4% of ABR.

• Economic headwinds persist, but consumer resilience and a focus on value and staples have benefited the portfolio.

Financial highlights

• Q2 2024 FFO was $276 million ($0.41 per diluted share), up from $243.9 million ($0.40 per share) in Q2 2023; net income was $111.8 million ($0.17 per share).

• Total pro rata NOI was $387.9 million, up $45.8 million year-over-year; same-site NOI growth was 3.0% for Q2 and 3.4% for the first half.

• Revenues from rental properties rose to $500.2 million in Q2 2024.

• Pro-rata occupancy rose 20 bps sequentially to 96.2%; anchor occupancy reached 98.1%, up 40 bps year-over-year.

• Small shop occupancy hit 91.7%, matching all-time highs and up 70 bps year-over-year.

Outlook and guidance

• 2024 FFO per diluted share guidance raised to $1.60–$1.62; net income per diluted share guidance increased to $0.44–$0.46.

• Full-year same-site NOI growth guidance increased to 2.75%–3.25%.

• Disposition guidance reduced to $300 million–$350 million, net neutral with acquisition target.

• Full-year cost saving synergies from RPT acquisition expected at $35 million–$36 million.

• Capital expenditures for 2024 projected at $225–$275 million.