Feb 7 (Reuters) - Kimco Realty KIM.N on Friday posted a growth in fourth-quarter funds from operations (FFO) from last year, helped by steady leasing demand for the company's grocery-anchored shopping centers amid limited new supply of such spaces.

WHY IT'S IMPORTANT

Rising costs from inflation has led to a tight supply of new retail spaces in the U.S. over the last few years. However, strong consumer spending has fueled demand among retailers and landlords helping Kimco, which owned over 523 shopping centers in the country at end of 2023.

CONTEXT

The company operates shopping centers that provide customers with essential goods and services and are primarily anchored by a grocery store, home improvement center, off-price retailer, and a discounter.

The real estate investment trust has benefited from a lack of new supply for leasing spaces, with its results further boosted by acquisition of peer RPT Realty last year in a $2 billion deal.

Kimco competes with real estate companies such as Simon Property SPG.N and Regency Centers REG.O.

Steady demand also helped rival Simon Property beat market expectations for fourth-quarter FFO earlier this week.

BY THE NUMBERS

The Jericho, New York-based firm posted a 7.7% rise in funds from operations to 42 cents per share in the quarter ended December 31, in line with analysts' expectations, according to data compiled by LSEG.

It expects FFO for full year 2025 in the range of $1.70 to $1.72, the mid-point of which met analysts' estimates of $1.71.

Annual net income is forecast between 70 cents and 72 cents per share, compared with average estimates of 71 cents.

MARKET REACTION

Shares of the company were up 2.4% in premarket trading.

(Reporting by Aamir Sohail in Bengaluru; Editing by Tasim Zahid)

((Aamir.Sohail@thomsonreuters.com;))