Kimco Realty Corp.
) touched a 52-week high of $22.55 on Tuesday, Apr 2, 2013, as it
gained momentum from better-than-expected fourth-quarter 2012
results. The closing price of this retail real estate investment
trust (REIT) on Apr 3, 2013 was $22.54, representing a solid
year-to-date return of 16.5%. The average trading volume over the
last 3 months was 2.45 million shares.
Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock
has plenty of upside left given its strong fundamentals and
strategic portfolio repositioning efforts.
Kimco reported improved fourth-quarter 2012 results with core
FFO, and revenues beating the Zacks Consensus Estimate. The
company has a premium portfolio of retail properties in
high-income, high-growth areas, and has achieved significant
diversification through geographic distribution of its properties
and a large tenant base. This diversification helps limit its
operating and leasing risks. It is currently focusing on its core
business activities to tide over the volatility in the market. In
addition, it has a strong balance sheet with easy access to
capital to allow continued growth.
Moreover, last month, the company closed the purchase of Wilton
River Park located in Conn.. The deal is a strategic fit and
brings on board well known national retailers such as
) and True Value Hardware, fashion boutiques Snappy Gator and
Chou Chou, and the 4-screen Bow Tie Cinemas.
On Feb 5, Kimco reported adjusted FFO (funds from operations) per
share of 33 cents, beating the Zacks Consensus Estimate by 2
cents and the year-ago quarter figure by 3 cents. The results
were aided by better-than expected growth in revenues. For full
year 2012, the company's adjusted FFO per share came in at $1.26,
a cent ahead of the Zacks Consensus Estimate of $1.25 and 6 cents
above the prior-year figure of $1.20 per share.
Notably, Kimco has now delivered positive earnings surprises in 2
quarters with an average beat of 4.89%.
Over the last 7 days, the Zacks Consensus Estimate for full-year
2013 and 2014 have remained unchanged at $1.32 and $1.37 per
On Apr 3, another REIT stock -
Liberty Property Trust
) - achieved its 52-week high.
Funds from operations, a widely accepted and reported measure
of REITs performance, are derived by adding depreciation,
amortization and other non-cash expenses to net income.
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