Please ensure Javascript is enabled for purposes of website accessibility

Kimco Realty Shoots 8.5% Higher on Q1 Beat, but Dividend Suspended

By Eric Volkman – May 8, 2020 at 7:14PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The retail REIT says it plans to reinstate its payout later this year.

Kimco Realty (KIM 1.79%) ended the week on a high note, with investors snapping up its shares following the release of Q1 of fiscal 2020 earnings on Friday.

The economic slowdown stemming from the SARS-CoV-2 coronavirus outbreak affected the results for the retail real estate investment trust (REIT) for the quarter. Its revenue slumped by almost 2% on a year-over-year basis to $289.7 million, while its net income fell by nearly 18% to $83.7 million ($0.19 per share).

On the other hand, funds from operations (FFO) -- considered to be the most relevant profitability metric for REITs -- inched up by 1% to $160.5 million ($0.37) for the period.

A Kimco shopping center.

Image source: Kimco Realty.

Those figures topped analyst estimates. On average, prognosticators following the stock were looking for $287.8 million on the top line, $0.18 in per-share net profit, and $0.36 per share for FFO.

Kimco, which pulled its full-year 2020 guidance recently, maintained that policy and provided no headline number forecasts for for the period.

It also announced in the earnings release that it's suspending its quarterly common stock dividend, adding that it "will continue to monitor the company's financial performance and economic outlook on a monthly basis and, at a later date, intends to reinstate the common dividend during 2020." Prior to the suspension, Kimco had handed out $0.28 per share, which at the current stock price would yield 10.3%.

Nevertheless, investors were clearly pleased with the company's performance. Kimco stock closed 8.5% higher on Friday, well outpacing the gains of the broader equities market.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Kimco Realty Corporation Stock Quote
Kimco Realty Corporation
$18.74 (1.79%) $0.33

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.