J.P. Morgan Reiterates Neutral Rating on Kimco Realty Following 2Q FFO Report

In a report published Wednesday, J.P. Morgan analyst Michael W. Mueller reiterated a Neutral rating and $24.00 price target on Kimco Realty KIM.

In the report, J.P. Morgan noted, “After Tuesday's close, KIM reported 2Q FFO that was $0.01 ahead of us and $0.02 ahead of the Street. KIM also revised guidance by boosting the bottom end of its guidance range by $0.02 at least in part due to stronger SS NOI expectations (up 25 bps at the midpoint). Core operating metrics were quite strong in the quarter with sequential occupancy gains and mid-teens leasing spreads. It was also a very good quarter for capital recycling. The previously disclosed InTown Suite sale for $735 million was a highlight of the quarter as its represented the sale of its largest remaining non-retail holding. Aside from this it was an active quarter in terms of disposing of non-core U.S. and Mexico holdings, and also bringing core JV assets on balance sheet and stepping up its stake in a few ventures. On Wednesday's call, we think this focal points of Q/A will be on the strong leasing spread trends and how the pace of capital recycling is expected to trend from here.”

Kimco Realty closed on Tuesday at $22.40.