S&P Upgrades Kimco Realty® Rating Outlook to ‘Positive’
S&P Global Ratings has revised Kimco Realty's (NYSE: KIM) rating outlook to 'Positive' from 'Stable', while affirming its 'BBB+' Issuer Credit Rating. This upgrade reflects expectations of solid operating performance over the next two years, driven by favorable retail fundamentals, high leased occupancy, positive leasing spreads, and potential upside from recently acquired RPT properties.
Kimco Realty, a leading REIT specializing in open-air, grocery-anchored shopping centers, owns interests in 567 U.S. shopping centers and mixed-use assets, comprising 101 million square feet of gross leasable space. The company's portfolio is strategically concentrated in first-ring suburbs of major metropolitan markets, including high-barrier-to-entry coastal markets and expanding Sun Belt cities.
S&P Global Ratings ha rivisto l'outlook di rating di Kimco Realty (NYSE: KIM) da 'Stabile' a 'Positivo', confermando il suo 'BBB+' Issuer Credit Rating. Questo miglioramento riflette aspettative di solide performance operative nei prossimi due anni, sostenute da fondamentali favorevoli nel settore retail, alta occupazione locativa, spread di leasing positivi e potenziali vantaggi derivanti da proprietà RPT recentemente acquisite.
Kimco Realty, un leader nel settore REIT specializzato in centri commerciali all'aperto ancorati a supermercati, possiede partecipazioni in 567 centri commerciali negli Stati Uniti e attivi a uso misto, per un totale di 101 milioni di piedi quadrati di spazio locabile lordo. Il portafoglio dell'azienda è strategicamente concentrato nei sobborghi di primo anello dei principali mercati metropolitani, compresi i mercati costieri con elevate barriere all'ingresso e le città in espansione della Sun Belt.
S&P Global Ratings ha revisado la perspectiva de calificación de Kimco Realty (NYSE: KIM) de 'Estable' a 'Positiva', manteniendo su calificación de crédito del emisor 'BBB+'. Esta mejora refleja expectativas de un sólido rendimiento operativo en los próximos dos años, impulsado por fundamentos minoristas favorables, alta ocupación arrendada, márgenes de arrendamiento positivos y un potencial ascendente de las propiedades RPT adquiridas recientemente.
Kimco Realty, un líder en REIT especializado en centros comerciales al aire libre anclados en supermercados, posee intereses en 567 centros comerciales en EE. UU. y activos de uso mixto, que abarcan 101 millones de pies cuadrados de espacio arrendable bruto. El portafolio de la compañía está estratégicamente concentrado en los suburbios de primer anillo de los principales mercados metropolitanos, incluidos los mercados costeros con altas barreras de entrada y las ciudades en expansión del Sun Belt.
S&P Global Ratings는 Kimco Realty(NYSE: KIM)의 등급 전망을 '안정적'에서 '긍정적'으로 조정하면서 'BBB+' 발행자 신용 등급을 유지했습니다. 이 업그레이드는 향후 2년 동안의 안정적인 운영 성과에 대한 기대를 반영하며, 이는 유리한 소매 기초 요소, 높은 임대 점유율, 긍정적인 임대 차익 및 최근 인수한 RPT 자산의 잠재적인 상승 가능성에 의해 뒷받침됩니다.
Kimco Realty는 슈퍼마켓에 앵커가 된 개방형 쇼핑 센터를 전문으로 하는 주요 REIT로, 미국 내 567개의 쇼핑 센터와 혼합 용도의 자산에 대한 지분을 보유하고 있으며, 총 101백만 평방피트의 임대 가능 공간을 포함하고 있습니다. 이 회사의 포트폴리오는 주요 대도시 시장의 1차 링 교외지역에 전략적으로 집중되어 있으며, 높은 진입 장벽을 가진 해안 시장과 확장 중인 썬 벨트 도시를 포함합니다.
S&P Global Ratings a révisé la perspective de notation de Kimco Realty (NYSE: KIM) de 'Stable' à 'Positive', tout en confirmant sa note de crédit émetteur 'BBB+'. Cette amélioration reflète des attentes de performances opérationnelles solides au cours des deux prochaines années, soutenues par des fondamentaux favorables dans le secteur de la distribution, un taux d'occupation locative élevé, des spreads de location positifs et un potentiel de hausse provenant des propriétés RPT récemment acquises.
Kimco Realty, un leader REIT spécialisé dans les centres commerciaux en plein air ancrés par des supermarchés, possède des intérêts dans 567 centres commerciaux aux États-Unis et des actifs à usage mixte, représentant 101 millions de pieds carrés d'espace locatif brut. Le portefeuille de l'entreprise est stratégiquement concentré dans les banlieues de premier anneau des principaux marchés métropolitains, y compris des marchés côtiers avec de fortes barrières à l'entrée et des villes en expansion de la ceinture solaire.
S&P Global Ratings hat den Ausblick für die Bewertung von Kimco Realty (NYSE: KIM) von 'Stabil' auf 'Positiv' geändert und gleichzeitig das 'BBB+' Issuer Credit Rating bestätigt. Dieses Upgrade spiegelt Erwartungen an eine solide operative Leistung in den nächsten zwei Jahren wider, die auf günstigen Einzelhandelsgrundlagen, hoher vermieteter Auslastung, positiven Mietspreads und potenziellen Aufwärtstrends von kürzlich erworbenen RPT-Immobilien basieren.
Kimco Realty, ein führendes REIT, das sich auf Freiluft-, lebensmittelverankerte Einkaufszentren spezialisiert hat, hält Anteile an 567 Einkaufszentren in den USA sowie an gemischt genutzten Immobilien, die insgesamt 101 Millionen Quadratfuß an vermietbarem Raum umfassen. Das Portfolio des Unternehmens ist strategisch in den ersten Randbezirken wichtiger Metropolmärkte konzentriert, einschließlich hochschwelliger Küstenmärkte und wachsender Städte der Sun Belt.
- S&P Global Ratings revised Kimco Realty's outlook to 'Positive' from 'Stable'
- S&P affirmed Kimco's 'BBB+' Issuer Credit Rating
- Company expects solid operating performance over the next two years
- Historically high leased occupancy reported
- Positive leasing and releasing spreads
- Upside potential from recently acquired RPT properties
- Portfolio of 567 U.S. shopping centers and mixed-use assets
- 101 million square feet of gross leasable space
- None.
Insights
S&P's outlook upgrade for Kimco Realty to 'Positive' from 'Stable' is a significant vote of confidence in the company's financial health and future prospects. This change, coupled with the affirmation of the 'BBB+' Issuer Credit Rating, suggests that Kimco is on a solid financial footing.
The positive outlook is underpinned by expectations of strong operational performance over the next two years, driven by favorable retail fundamentals and high occupancy rates. This bodes well for Kimco's revenue stability and potential for growth. The mention of "upside potential" from recently acquired RPT properties indicates possible synergies and expansion opportunities.
For investors, this outlook upgrade could translate to lower borrowing costs for Kimco, potentially improving profitability. It may also attract more institutional investors, possibly leading to increased demand for the stock. However, it's important to monitor the broader economic conditions, particularly in the retail sector, as they could impact Kimco's performance despite this positive outlook.
Kimco Realty's portfolio strategy focusing on first-ring suburbs in major metropolitan areas, particularly in high-barrier-to-entry coastal markets and expanding Sun Belt cities, positions the company well in the current real estate landscape. This approach capitalizes on urbanization trends while potentially mitigating some risks associated with dense city centers.
The company's emphasis on necessity-based goods and services in its tenant mix is a prudent strategy, especially in uncertain economic times. This focus on essential retail can provide resilience against e-commerce disruption and economic downturns, as evidenced by the "historically high leased occupancy" mentioned in S&P's statement.
The positive leasing and releasing spreads indicate strong demand for Kimco's properties and potential for rental income growth. However, investors should keep an eye on broader retail trends and potential shifts in consumer behavior that could impact the long-term viability of physical retail spaces, even in well-positioned locations.
JERICHO, N.Y., Sept. 12, 2024 (GLOBE NEWSWIRE) -- Kimco Realty® (NYSE: KIM), a real estate investment trust (REIT) and leading owner and operator of high-quality, open-air, grocery-anchored shopping centers and mixed-used properties in the United States, today announced that S&P Global Ratings (“S&P”) revised its rating outlook for KIM to ‘Positive’ from ‘Stable’ and affirmed the Company’s ratings, including the ‘BBB+’ Issuer Credit Rating.
In its public announcement, S&P noted “The positive outlook reflects our expectation for Kimco to achieve solid operating performance over the next two years. This stems from favorable retail fundamentals, historically high leased occupancy, positive leasing and releasing spreads, and upside potential at recently acquired RPT properties.”
About Kimco Realty®
Kimco Realty® (NYSE: KIM) is a real estate investment trust (REIT) and leading owner and operator of high-quality, open-air, grocery-anchored shopping centers and mixed-use properties in the United States. The company’s portfolio is strategically concentrated in the first-ring suburbs of the top major metropolitan markets, including high-barrier-to-entry coastal markets and rapidly expanding Sun Belt cities. Its tenant mix is focused on essential, necessity-based goods and services that drive multiple shopping trips per week. Publicly traded on the NYSE since 1991 and included in the S&P 500 Index, the company has specialized in shopping center ownership, management, acquisitions, and value-enhancing redevelopment activities for more than 60 years. With a proven commitment to corporate responsibility, Kimco Realty is a recognized industry leader in this area. As of June 30, 2024, the company owned interests in 567 U.S. shopping centers and mixed-use assets comprising 101 million square feet of gross leasable space.
The company announces material information to its investors using the company’s investor relations website (investors.kimcorealty.com), SEC filings, press releases, public conference calls, and webcasts. The company also uses social media to communicate with its investors and the public, and the information the company posts on social media may be deemed material information. Therefore, the company encourages investors, the media, and others interested in the company to review the information that it posts on the social media channels, including Facebook (www.facebook.com/kimcorealty), Twitter (www.twitter.com/kimcorealty) and LinkedIn (www.linkedin.com/company/kimco-realty-corporation). The list of social media channels that the company uses may be updated on its investor relations website from time to time.
Safe Harbor Statement
This communication contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, are generally identifiable by use of the words “believe,” “expect,” “intend,” “commit,” “anticipate,” “estimate,” “project,” “will,” “target,” “plan,” “forecast” or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which, in some cases, are beyond the Company’s control and could materially affect actual results, performances or achievements. Factors which may cause actual results to differ materially from current expectations include, but are not limited to, (i) general adverse economic and local real estate conditions, (ii) the impact of competition, including the availability of acquisition or development opportunities and the costs associated with purchasing and maintaining assets; (iii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iv) the reduction in the Company’s income in the event of multiple lease terminations by tenants or a failure of multiple tenants to occupy their premises in a shopping center, (v) the potential impact of e-commerce and other changes in consumer buying practices, and changing trends in the retail industry and perceptions by retailers or shoppers, including safety and convenience, (vi) the availability of suitable acquisition, disposition, development and redevelopment opportunities, and the costs associated with purchasing and maintaining assets and risks related to acquisitions not performing in accordance with our expectations, (vii) the Company’s ability to raise capital by selling its assets, (viii) disruptions and increases in operating costs due to inflation and supply chain disruptions, (ix) risks associated with the development of mixed-use commercial properties, including risks associated with the development, and ownership of non-retail real estate, (x) changes in governmental laws and regulations, including, but not limited to, changes in data privacy, environmental (including climate change), safety and health laws, and management’s ability to estimate the impact of such changes, (xi) the Company’s failure to realize the expected benefits of the merger with RPT Realty (the “RPT Merger”), (xii) significant transaction costs and/or unknown or inestimable liabilities related to the RPT Merger, (xiii) the risk of litigation, including shareholder litigation, in connection with the RPT Merger, including any resulting expense, (xiv) the ability to successfully integrate the operations of the Company and RPT and the risk that such integration may be more difficult, time-consuming or costly than expected, (xv) risks related to future opportunities and plans for the combined company, including the uncertainty of expected future financial performance and results of the combined company, (xvi) effects relating to the RPT Merger on relationships with tenants, employees, joint venture partners and third parties, (xvii) the possibility that, if the Company does not achieve the perceived benefits of the RPT Merger as rapidly or to the extent anticipated by financial analysts or investors, the market price of the Company’s common stock could decline, (xviii) valuation and risks related to the Company’s joint venture and preferred equity investments and other investments, (xix) collectability of mortgage and other financing receivables, (xx) impairment charges, (xxi) criminal cybersecurity attacks, disruption, data loss or other security incidents and breaches, (xxii) risks related to artificial intelligence, (xxiii) impact of natural disasters and weather and climate-related events, (xxiv) pandemics or other health crises, such as the coronavirus disease 2019 (“COVID-19”), (xxv) our ability to attract, retain and motivate key personnel, (xxvi) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (xxvii) the level and volatility of interest rates and management’s ability to estimate the impact thereof, (xxviii) changes in the dividend policy for the Company’s common and preferred stock and the Company’s ability to pay dividends at current levels, (xxix) unanticipated changes in the Company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity, (xxx) the Company’s ability to continue to maintain its status as a REIT for U.S. federal income tax purposes and potential risks and uncertainties in connection with its UPREIT structure, and (xxxi) other risks and uncertainties identified under Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023. Accordingly, there is no assurance that the Company’s expectations will be realized. The Company disclaims any intention or obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to refer to any further disclosures the Company makes in other filings with the Securities and Exchange Commission (“SEC”).
CONTACT:
David F. Bujnicki
Senior Vice President, Investor Relations and Strategy
Kimco Realty Corporation
1-833-800-4343
dbujnicki@kimcorealty.com
FAQ
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