Kimco Realty (KIM) Q2 2024 earnings summary

Executive summary

• FFO per diluted share grew 5.1% year-over-year to $0.41 in Q2 2024, with same-site NOI up 3.0% and portfolio occupancy at 96.2% as of June 30, 2024.

• Net income per diluted share rose to $0.17, and net income available to common shareholders was $111.8 million for Q2 2024.

• Completed RPT Realty acquisition, adding 56 properties and driving cost synergies of $35–$36 million, with integration outperforming expectations.

• Portfolio remains focused on grocery-anchored, open-air centers in top U.S. markets, with strong tenant diversification and high retention.

• Raised full-year 2024 outlook for net income and FFO per diluted share.

Financial highlights

• Q2 2024 FFO was $276 million ($0.41/share), up from $243.9 million ($0.39/share) in Q2 2023; six-month FFO was $537.8 million ($0.80/share).

• Net income for Q2 2024 was $111.8 million; revenues from rental properties rose to $500.2 million.

• Same-site NOI growth was 3.0% for Q2 and 3.4% for the first half of 2024.

• Pro-rata rent spread on new leases was 26.3%; 2.3 million sq. ft. leased in Q2.

• Operating expenses increased due to higher real estate taxes, maintenance, and depreciation from the RPT acquisition.

Outlook and guidance

• 2024 FFO per diluted share guidance raised to $1.60–$1.62; net income per diluted share guidance increased to $0.44–$0.46.

• Same-site NOI growth guidance increased to 2.75%–3.25% for 2024.

• Full-year cost saving synergies from RPT acquisition expected at $35–$36 million.

• Capital expenditures for 2024 projected at $225–$275 million; $100M–$125M for redevelopment.

• Quarterly dividend of $0.24 per share declared.