Curation Team
Commercial real estate investment trust Kimco Realty on Thursday raised its forecast for annual funds from operations, after beating first-quarter revenue estimates on steady demand at its grocery-anchored shopping centers.
The company expects its full-year funds from operations – a key REIT metric – to be between $1.71 and $1.74 per share, compared with a prior target of $1.70 to $1.72.
Demand for essentials such as groceries is likely to be steady even as President Donald Trump’s erratic trade policies dent consumer sentiment in the U.S.
A shrinking supply of retail spaces has also allowed commercial real estate firms such as Kimco to benefit from increased rental prices.
Kimco’s portfolio of suburban retail spaces includes tenants such as discount retailers TJX Companies and Ross Stores .
The company’s quarterly funds from operations came in at 44 cents, compared with 39 cents a year ago.
Analysts were expecting funds from operations of 42 cents, according to data compiled by LSEG.
Kimco’s first-quarter revenue from rental properties rose 6.5% to $531.3 million, beating estimates of $522.21 million.
