Analyst Note| Kevin Brown |
Despite continuing to feel the lingering effects of the pandemic, Kimco Realty produced better results in the first quarter than we had expected. Still, we don't see anything that would materially change our $18 per share fair value estimate for the no-moat company. Same-store occupancy fell 40 basis points sequentially to 93.5%, which was in line with our expectations. However, re-leasing spreads continue to hold up well despite many retailers struggling as Kimco was able to initiate new rent terms that were 7.1% higher than expiring rent, well above our estimate of a 1.9% spread.