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KIM NYSE· Kimco Realty Corporation
Earnings report Q3 2023

KIMCO REALTY CORPORATION Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

KIMCO REALTY CORPORATION, a leading real estate investment trust (REIT), reported total revenues of $446.1 million for the three months ended September 30, 2023. The company's revenue primarily consists of two segments: revenues from rental properties, net and management and other fee income. Revenues from rental properties, net increased to $441.8 million, compared to $429.0 million in the same quarter last year. Management and other fee income remained relatively stable at $4.2 million.

Strengths

KIMCO REALTY CORPORATION demonstrated strong revenue growth in the latest quarter, with a 3% increase in revenues from rental properties, net. This growth can be attributed to several factors, including higher occupancy rates and increased rental rates across the company's portfolio. Management highlighted the successful execution of their leasing strategy, which resulted in improved rental income. Additionally, the company's diversified tenant base and focus on high-quality properties contributed to its revenue growth.

Challenges

Despite the overall positive performance, KIMCO REALTY CORPORATION faced certain challenges in the latest quarter. The company experienced higher operating expenses, including rent, real estate taxes, and operating and maintenance costs. These increased expenses impacted the company's profitability and resulted in a decrease in net income compared to the same quarter last year.

Noteworthy

It is worth noting that KIMCO REALTY CORPORATION reported a significant increase in net income for the three months ended September 30, 2023. Net income rose to $120.8 million, compared to $56.4 million in the same quarter last year. This substantial increase can be attributed to a one-time gain from the sale of certain properties during the quarter. However, it is important to consider that this gain is not reflective of the company's core operating performance.

Summary

KIMCO REALTY CORPORATION delivered a strong performance in the latest quarter, with robust revenue growth driven by increased rental income. The company's successful leasing strategy and focus on high-quality properties contributed to its revenue growth. However, higher operating expenses posed challenges to the company's profitability. It is important to note that the significant increase in net income was primarily due to a one-time gain from property sales. Overall, KIMCO REALTY CORPORATION's revenue performance reflects its ability to navigate the current real estate market and capitalize on growth opportunities.

Source documents

Form 10-Q  filed on Oct 27, 2023
86 pages scanned

Reference data

Company financials Q3 revenue 452M
Analyst estimates Q3 EPS beat by 13.53%
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