Kimco Soars to a New 52-Week High - Analyst Blog

Shares of Kimco Realty Corporation ( KIM ) 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.

Growth Drivers

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 $235 million.

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. ( SPG ), General Growth Properties, Inc ( GGP ) and The Macerich Company ( MAC ).

Note: 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SIMON PROPERTY (SPG): Free Stock Analysis Report

KIMCO REALTY CO (KIM): Free Stock Analysis Report

MACERICH CO (MAC): Free Stock Analysis Report

GENL GRWTH PPTY (GGP): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More