Feb 7 (Reuters) - Kimco Realty ( KIM ) on Friday posted

a growth in fourth-quarter funds from operations (FFO) from last

year, helped by steady leasing demand for the company's

grocery-anchored shopping centers amid limited new supply of

such spaces.

WHY IT'S IMPORTANT

Rising costs from inflation has led to a tight supply of new

retail spaces in the U.S. over the last few years. However,

strong consumer spending has fueled demand among retailers and

landlords helping Kimco ( KIM ), which owned over 523 shopping centers

in the country at end of 2023.

CONTEXT

The company operates shopping centers that provide customers

with essential goods and services and are primarily anchored by

a grocery store, home improvement center, off-price retailer,

and a discounter.

The real estate investment trust has benefited from a lack

of new supply for leasing spaces, with its results further

boosted by acquisition of peer RPT Realty last year in a $2

billion deal.

Kimco ( KIM ) competes with real estate companies such as Simon

Property ( SPG ) and Regency Centers ( REG ).

Steady demand also helped rival Simon Property ( SPG ) beat market

expectations for fourth-quarter FFO earlier this week.

BY THE NUMBERS

The Jericho, New York-based firm posted a 7.7% rise in funds

from operations to 42 cents per share in the quarter ended

December 31, in line with analysts' expectations, according to

data compiled by LSEG.

It expects FFO for full year 2025 in the range of $1.70 to

$1.72, the mid-point of which met analysts' estimates of $1.71.

Annual net income is forecast between 70 cents and 72 cents

per share, compared with average estimates of 71 cents.

MARKET REACTION

Shares of the company were up 2.4% in premarket trading.