Kimco Realty

Methodology

This EPS-based method has fundamental limitations for Kimco Realty as a retail REIT, since depreciation distorts reported earnings despite properties potentially appreciating. The company's grocery-anchored shopping centers generate relatively stable cash flows from necessity-based retail. Investors should use FFO or AFFO-based models that better capture retail property cash generation.

Methodology

Traditional PEG analysis is problematic for Kimco given GAAP depreciation affecting EPS. If using PEG, substitute FFO or AFFO growth for EPS growth. Retail REITs face challenges from e-commerce but grocery-anchored centers show resilience—valuation depends more on occupancy trends, same-store rent growth, and redevelopment potential than earnings-based multiples.

Methodology

Kimco pays a meaningful dividend representing an important total return component for a retail REIT. The company balances current income with investments in mixed-use redevelopments and property improvements. PEGY provides context, though for retail REITs, tenant quality, occupancy rates, and rent growth prospects matter more than dividend-adjusted earnings metrics.