Kimco (KIM) is a dividend paying stock that we have been following for some time. Like most other REITs exposed to the retail sector, Kimco’s stock performance in 2017 was poor, and the poor performance has continued in 2018. The stock was recently below $14, with a 52-week high of $25.15 and a high of $32.10 in 2016.
Even with a current dividend approaching 8% (for 2018, the company increased its yearly dividend by four cents, or approximately 4%, the company has ample coverage to grow its dividend even with modest FFO growth. Kimco has also just reported earnings, and in this column we take a dive into the numbers and investment activities. Ultimately, we believe that the dividend is further supported by improving occupancy:
Financial keys
FFO was $160.1 million, or $0.38 per diluted share, for the fourth quarter 2017 compared to $163.0 million, or $0.38 per diluted share, for the fourth quarter 2016. NAREIT FFO for the fourth quarter of 2017 included $6.3 million of transactional charges (net of transactional income). This compares to $2.6 million of transactional income (net of transactional charges) in the fourth quarter of 2016.
For the full year 2017, NAREIT FFO was $655.6 million, or $1.55 per diluted share, compared to $555.7 million, or $1.32 per diluted share, for the full year 2016. NAREIT FFO for 2017 included $11.3 million of transactional income (net of transactional charges). This compares to $73.7 million of transactional charges (net of transactional income) recognized in 2016 NAREIT FFO.
FFO as adjusted available to common shareholders, which excludes the effects of non-operating impairments as well as transactional income and charges, was $166.4 million, or $0.39 per diluted share, for the fourth quarter 2017 compared to $160.4 million, or $0.38 per diluted share, for the fourth quarter 2016. For the full year 2017, FFO as adjusted was $644.2 million, or $1.52 per diluted share, compared to $629.4 million, or $1.50 per diluted share, for the full year 2016.
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