Oct 31 (Reuters) - Kimco Realty KIM.N raised its forecast for annual funds from operations and beat Wall Street estimates for third-quarter FFO on Thursday, helped by strong leasing demand at the real estate investment trust's grocery-anchored retail centers.
WHY IT IS IMPORTANT
A decline in new commercial space developments and fierce competition among retailers have strengthened demand for rental spaces, including strip mall centers, leading to a spike in lease revenue.
KEY QUOTE
"Our high-quality, grocery-anchored properties continue to deliver outsized growth, record occupancy and advantageous pricing power," CEO Conor Flynn said in a statement.
"Moreover, our recent acquisition of the Waterford Lakes Town Center in Orlando positions us to be a net acquirer in 2024."
BY THE NUMBERS
The Jericho, New York-based firm now expects its full-year FFO — a key REIT metric that defines cash flow from core operations — to be between $1.64 and $1.65 per share, compared with its previous range of $1.60 to $1.62 per share.
Kimco's portfolio occupancy rate rose by 90 basis points year-on-year to 96.4% in the quarter.
Total quarterly revenue rose nearly 14% to $507.6 million, versus estimates of a 12.63% rise to $497.6 million. Its net revenue from rental properties also jumped 14%.
Third-quarter FFO rose 7.5% to 43 cents per share. Analysts had expected 41 cents.
Kimco raised its total acquisitions forecast for the year to between $565 million and $625 million, from its previous projection of $300 million to $350 million.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Shilpi Majumdar)
((Neil.JKanatt@thomsonreuters.com))
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