Kimco Realty (KIM) Q1 2021 earnings summary

Executive summary

• Q1 net income available to common shareholders rose to $131.6M, or $0.30 per diluted share, from $83.7M, or $0.19, in Q1 2020; marketable-security gains drove much of the increase.

• Leasing reached 2.8M sq. ft., the highest quarterly total since Q1 2019; rent collections and positive leasing spreads supported a raised 2021 outlook.

Financial highlights

• Revenue was $282.3M versus $289.7M YoY; operating income was $104.5M versus $115.3M.

• Net income included a $61.1M net gain on marketable securities, versus a $4.7M loss in Q1 2020; the YoY increase in securities gains was $65.8M, primarily from Albertsons shares.

• NAREIT FFO was $144.3M, or $0.33 per diluted share, versus $160.5M, or $0.37, in Q1 2020.

• Same-property NOI decreased 5.7% YoY; total pro-rata base rent collections were 94% for Q1.

Outlook and guidance

• Raised standalone FY 2021 diluted EPS guidance to $0.66–$0.70 from $0.46–$0.52; guidance excludes the pending Weingarten merger.

• Raised FY 2021 diluted FFO guidance to $1.22–$1.26 from $1.18–$1.24.

• The Weingarten merger was expected to close in H2 2021, subject to customary closing conditions and shareholder approvals; it was expected to be immediately accretive and improve leverage metrics.