Kimco Realty Corporation
) touched a 52-week high of $23.55 towards the end of the trading
session on Thursday, Jun 5, 2014, as it gained momentum following
decent first-quarter 2014 results. The closing price of $23.54 of
this retail real estate investment trust (REIT) represented a
robust year-to-date return of 19.1%. The average trading volume for
the session was around 2.54 million shares.
Despite hitting its 52-week high, this Zacks Rank #3 (Hold)
stock has plenty of upside left, given the improving retail market
fundamentals and expected year-over-year funds from operations
(FFO) per share growth of 4.01% for 2014.
Continuing with its decent performance since the last couple of
quarters, Kimco met our expectations yet again in first-quarter
2014. Improving operating portfolio performance and Kimco's
successful efforts to improve its core portfolio through the
divestiture of non-strategic assets and acquisition of high-quality
properties in the U.S. were the positives. In addition, a
significant redevelopment pipeline in high-income, high-growth
areas is encouraging.
On May 7, 2014, Kimco reported first-quarter 2014 adjusted funds
from operations FFO per share of 34 cents, in line with the Zacks
Consensus Estimate and up 6.3% year over year. This was aided by
growth in net operating income, occupancy levels and significant
leasing activity. Also, total revenue increased 8.7% year over year
to $246.9 million and surpassed the Zacks Consensus Estimate of
Going forward, solid demand for the company's properties, its
portfolio transformation initiative, along with easy access to
capital, promises considerable upside potential. Over the last 7
days, the Zacks Consensus Estimate for 2014 and 2015 FFO per share
remained stable at $1.38 and $1.46, respectively.
Other Stocks to Consider
Apart from Kimco, other retail REITs that reached 52-week highs
on Jun 5 include
Simon Property Group Inc.
General Growth Properties, Inc
The Macerich Company
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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