Oct 30 (Reuters) - Kimco Realty KIM.N on Thursday raised its forecast for annual funds from operations, driven by resilient demand for its grocery-anchored shopping centers, supported by tenants catering to everyday essentials.
The company now expects its full-year FFO — a key real estate investment trust $(REIT)$ metric - between $1.75 and $1.76 per share, compared with a prior target of $1.73 and $1.75.
Real estate investment trusts, including Kimco Realty, have continued to benefit from steady leasing demand from necessity-based retailers, as inflation-wary consumers continue to prioritize spending on essentials like groceries.
A limited new supply of retail spaces have also allowed commercial real estate firms such as Kimco to gain from increased rental prices, without dampening demand.
Reflecting similar trends, peer Regency Centers REG.O on Tuesday raised its full-year FFO forecast, citing resilient tenant demand despite macroeconomic uncertainties.
Kimco forecast annual earnings per share in the range of 77 cents to 79 cents, up from its previous expectations of 74 cents to 76 cents.
The company posted funds from operations of 44 cents per share for the third quarter ended September 30, ahead of analysts' estimates of 43 cents per share.
It earned 19 cents per share in the reported quarter, topping expectations of 17 cents.
(Reporting by Sanskriti Shekhar in Bengaluru; Editing by Shailesh Kuber)
((Sanskriti.Shekhar@thomsonreuters.com))