According to the latest report from Kimco Realty Corp., leasing volume is the highest the company has seen in 10 years. According to Paul Morgan, analyst at Canaccord Genuity Inc., despite occupancy headwinds from recent retail bankruptcies, “Kimco’s core metrics remained solid.”
The Q1 numbers showed that KIM signed 497 new and renewal leases totaling 4.3 million square feet. “We believe that solid mark-to-markets at Sports Authority and hhgregg locations should offer ss-NOI growth upside to KIM in late 2017 and 1H18,” Morgan said.
Net income available to the company’s common shareholders for the first quarter of 2017 was $65.2 million, or $0.15 per diluted share, compared to $129.2 million, or $0.31 per diluted
share, for the first quarter of 2016. The decrease was primarily due to $68.9 million of lower gains on the sales of operating properties, net of impairments, attributable to the sale or pending disposition of operating properties.
Other key highlights from the REIT’s Q1 report include:
- Net income available to the company’s common shareholders of $65.2 million, or $0.15 per diluted share;
- Generated 10.9% growth in pro-rata rental-rate leasing spreads with new leases increasing 17.9%
and renewals/options up 10.1%;
- Grew same-property net operating income (NOI) 2.2% over the same period in 2016;
- Acquired two operating properties for $43.1 million and a 90% ownership interest in a new mixed-use development project for $10.0 million, while disposing of eight shopping centers representing 948,000 square feet and one land parcel for a total of $113.2 million;
- Issued $400 million in new, unsecured notes due 2027 at a coupon of 3.80%;
- and closed a new five-year $2.25 billion unsecured revolving credit facility with borrowings priced at LIBOR plus 87.5 basis points.