Shares of Kimco Realty (NYSE: KIM) have soared 25.9% in the past three months compared with its industry's rally of 17.2%.
This Jericho, NY-based retail real estate investment trust (REIT) is well-poised to benefit from its portfolio of premium shopping centers, which are predominantly grocery-anchored, in the drivable first-ring suburbs within key major metropolitan Sunbelt and coastal markets. Its focus on developing mixed-use assets and a healthy balance sheet position bode well for long-term growth.
Analysts seem bullish on this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2024 FFO per share grew nearly 1% over the past month to $1.62.
Image Source: Zacks Investment Research
Let's find out the factors behind the surge in the stock price.
Kimco's properties are located in the drivable first-ring suburbs within key major metropolitan Sunbelt and coastal markets. Particularly, 82% of the annual base rent ("ABR") comes from its top major metro markets. Given the strategic location of its properties, it is likely to witness healthy demand in the near term, boosting leasing activity.
Kimco enjoys a diverse tenant base, led by a healthy mix of essential, necessity-based tenants and omni-channel retailers. National/regional tenants accounted for 81% of Kimco's pro rata ABR as of the end of the second quarter of 2024. Given the strength of its retailers with a developed omnichannel presence, the company is likely ...
