Kimco Realty Earnings: 2024 FFO Guidance Below 2023 Due to One-Time Charges and Disposition Timing

Kimco Realty reported fourth-quarter results that were relatively in line with our estimates, giving us confidence in our $25.50 fair value estimate for the no-moat company. Same-store occupancy improved 70 basis points sequentially to 96.2%, slightly better than our 96.0% estimate. Re-leasing spreads remain strong at 11.3%, which was better than our estimate of new rent terms being 8.8% higher than expiring rent. As a result, average base rent per square foot increased 3.4% year over year and same-store revenue increased 2.1%. Operating expenses fell 0.6% in the fourth quarter, leading to same-store net operating income growth of 3.2% that beat our 2.0% growth estimate. The company reported funds from operations, or FFO, of $0.39 per share for the fourth quarter, which was a penny below our $0.40 estimate for the quarter.