KIM

It has been about a month since the last earnings report for Kimco Realty (KIM). Shares have lost about 3.2% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Kimco Realty due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Kimco Realty Corporation before we dive into how investors and analysts have reacted as of late. Kimco reported second-quarter 2026 FFO of 46 cents per share, in line with the Zacks Consensus Estimate. The metric increased 4.5% from 44 cents in the year-ago quarter. Total revenues rose 4.9% year over year to $550.8 million and surpassed the consensus mark of $545 million by 1.06%. Results benefited from strong leasing activity and higher minimum rents. Pro-rata leased occupancy reached 96.4%, matching the company’s all-time high, while same-property net operating income (NOI) grew 3.5%. Net revenues from rental properties increased to $546.4 million from $520.9 million in the prior-year quarter. Operating and maintenance expenses increased to $95.1 million from $91.1 million, while real estate taxes rose to $71.2 million from $66.6 million. However, general and administrative expenses declined to $29.9 million from $32.4 million. Kimco executed 461 leases covering 2.5 million square feet during the second quarter. Blended pro-rata cash rent spreads on comparable spaces were 13.1%, comprising 40.4% on new leases, 6.1% on renewals and 8% on options. Small-shop occupancy increased 70 bps year over year and 40 bps sequentially to a record 92.9%. Pro-rata anchor occupancy improved 110 bps from the prior-year period to 97.8%. The pro-rata leased versus economic occupancy rates spread was 400 bps, representing $75 million in future rents from signed leases that have not yet commenced. During the second quarter, the company sold The Milton, a 253-unit multifamily building at Pentagon Centre, for $142.3 million. Kimco’s pro-rata share of the sales price was $78.2 million, and the transaction carried an approximately 4.9% capitalization rate. It also sold the 44,000-square-foot Shoppes at Bears Path for $7.8 million. After quarter-end, Kimco sold four Costco-anchored assets for aggregate proceeds of approximately $127 million. It acquired Pompano Marketplace, a Walmart-anchored center, for $53 million and Sunshine Plaza, a Publix-anchored property, for $56 million using 1031 exchange proceeds. Kimco ended the quarter with $2.7 billion of immediate liquidity. This included $700 million of cash, cash equivalents and restricted cash, along with full availability under its $2 billion unsecured revolving credit facility. The company issued $600 million of 3.50% exchangeable senior notes due 2031. In connection with the offering, it repurchased roughly 4.1 million common shares for $104.7 million at $25.38 per share. Kimco increased its 2026 FFO guidance to $1.83-$1.84 per share from $1.81-$1.84. The revised outlook assumes same-property NOI growth of 3-3.5% compared with the previous 2.8-3.5% range. Credit loss is projected at 55-75 bps of total pro-rata rental revenues, an improvement from the prior 65-90 bps forecast. It turns out, fresh estimates flatlined during the past month. At this time, Kimco Realty has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Kimco Realty has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kimco Realty Corporation (KIM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 8:30 a.m. ET Senior Vice President of Investor Relations and Strategy - David Bujnicki Chief Executive Officer - Conor Flynn President and Chief Investment Officer - Ross Cooper Executive Vice President and Chief Operating Officer - Dave Jamieson Executive Vice President and Chief Financial Officer - Glenn Cohen Operator: Hello, everyone. Thank you for joining us, and welcome to Kimco Realty's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to David Bujnicki, Senior Vice President of Investor Relations and Strategy. Please go ahead. David Bujnicki: Thank you all for joining Kimco's quarterly earnings conference call. With me today are Conor Flynn, CEO; Ross Cooper, President and Chief Investment Officer; Dave Jamieson, Executive Vice President and Chief Operating Officer; Glenn Cohen, Executive Vice President and CFO; as well as other members of the Kimco leadership team who are available for Q&A. Before we begin, some of our comments today may include forward-looking statements based on management's current beliefs and expectations. These are subject to risks and uncertainties described in our SEC filings, and actual results may differ materially. We assume no obligation to update any forward-looking statements. We will also reference non-GAAP financial measures. Reconciliations to GAAP are available in our earnings release and supplemental package, both posted to our IR website, along with an accompanying presentation. The same forward-looking caution applies to those materials. Following prepared remarks, we'll open the call to Q&A. [Operator Instructions]. And with that, I'll turn the call over to Conor. Conor Flynn: Good morning, and thanks for joining us. Today, I'll walk you through our solid second quarter results, which continue to validate our growth strategy and the strength of our portfolio, platform and operating model. Dave will cover our leasing accomplishments in detail. Ross will take you through our transaction activity, and Glenn will close with our financial results and updated outlook. We delivered another strong quarter with FFO per diluted share of $0.46, up 4.5% year-over-year and same-property NOI growth of 3.5%, driven by higher minimum rents and stronger net recoveries. Small shop occupancy reached a new record of 92.9%, while overall pro rata portfolio occupancy matched our all-time high at 96.4%, even after absorbing a 16 basis point impact from the Painted Tree bankruptcy lease rejections. These results reinforce the depth of demand across the portfolio with the growth potential stronger than the headline numbers suggest. Leasing remained one of the clearest indicators of demand for our portfolio. Across the quarter, we continue to see retailers compete for space in high-quality open-air grocery-anchored centers with demand outpacing available supply as new shopping center development remains limited across our markets. Dave will cover the detailed leasing metrics, but the broader takeaway is that our centers continue to attract growing retailers, drive strong rent growth and benefit from positive shopper traffic and healthy tenant sales. That trend remained evident during the quarter, with foot traffic across our centers increasing 3% year-over-year, including 3.2% growth in June, and spending across our tenant base also remains robust. With respect to our mixed-use portfolio, I want to share a meaningful proof point and what it means for future value creation. During the quarter, we completed the sale of the Milton, a 253-unit multifamily building at our Pentagon Centre mixed-use property in Pentagon City, Virginia. The sale of the Milton marks an important milestone for our mixed-use platform and our first full cycle monetization of a ground-up multifamily development within our value-add redevelopment program. The transaction provides a tangible proof point of the embedded value we can create by entitling, developing, stabilizing and then selectively monetizing mixed-use assets at the right time. Ross will provide more detail, but the broader message is clear. Our mixed-use platform is another meaningful source of long-term value creation. Our capital recycling program continues to be an integral and recurring part of our strategy. Recent asset sales and ground lease monetizations demonstrate our ability to harvest value from low-growth assets and redeploy capital into shopping center investments with stronger long-term growth prospects. This approach enhances the quality of the portfolio, supports future earnings growth and allows us to create value without depending solely on external capital. This strategy was further illustrated by the acquisition of 2 high-quality shopping centers in Florida, utilizing 1031 exchange proceeds. We purchased Pompano Marketplace, a Walmart-anchored center in Pompano Beach, Florida for $53 million, marking the third acquisition sourced through our structured investment program, a differentiated platform unique to Kimco. The other center was Sunshine Plaza, a Publix-anchored center in a first-ring suburb of Fort Lauderdale, Florida for $56 million. On the balance sheet, it remains a clear competitive advantage for Kimco. Glenn will provide more detail on our recent capital markets activity, including our inaugural $600 million exchangeable notes at an attractive 3.5% coupon. The key point is that our liquidity position, access to capital and investment-grade profile give us the financial flexibility to remain opportunistic and play offense while maintaining discipline in the current environment. Lastly, reflecting on our strong first half performance, improved visibility into the balance of the year and confidence in the underlying strength of the portfolio, we are raising the midpoint of our full year outlook. In addition, our Board has increased the quarterly common cash dividend by 12% over the prior year, supported by our strong operating performance, earnings growth and rising taxable income and confidence in the company's long-term growth outlook. Together, these actions underscore the durability of our cash flows and commitment to delivering long-term value for our shareholders. In conclusion, I want to thank our entire team. The second quarter only reinforced what we believed at the very start of the year. Kimco has the right platform, portfolio and balance sheet to drive sustainable earnings growth. Strong retailer demand, positive shopper traffic, visible cash flow growth from our sizable signed but not open pipeline, accretive capital recycling and disciplined balance sheet management, all position us to continue creating long-term value for shareholders. With that, I'll turn it over to Dave to cover leasing in more detail. David Jamieson: Thanks, Connor. I'll cover second quarter leasing results, occupancy trends, the SNO pipeline and the launch of our new operating model, all of which continue to support the growth trajectory we laid out last quarter. We signed 461 leases across 2.5 million square feet in the second quarter at a blended spread of 13.1%, bringing our total leased for the first half of the year to over 7 million square feet. New leasing activity remained a clear standout with 161 deals covering 685,000 pro rata square feet at a blended spread of 40.4%, marking our 19th consecutive quarter of double-digit new leasing spreads. This quarter included several notable lease transactions that highlight the strength of tenant demand and our ability to enhance the merchandising mix across the portfolio. On the anchor side, we replaced a former Rite Aid with Teso Life, a Japanese-inspired homewares retailer at Marketplace at Factoria and at our Woodlawn Center in Charlotte, North Carolina, we added Lowes Food, bringing a new grocery component to the site. Within our lifestyle portfolio, we signed our first ever Uniqlo lease, further validating the appeal of that segment of our business and a growing interest we're seeing from leading retailers. On the nonanchor side, leasing activity remained broad-based with particular strength seen in service-oriented tenants, including fitness, health and wellness, restaurants and professional services. This includes several solid core leases that not only complemented our lifestyle portfolio, but also were a nice addition to our core grocery community assets, which further demonstrates the leverage of our operating platform and our ability to cross-pollinate between the lifestyle and core assets. Our package leasing initiative also continued to gain momentum this quarter, signing 7 deals with 2 retailers that further enhance small shop occupancy. This disciplined approach is helping us accelerate deal velocity, capture efficiencies of scale and deepening relationships with growing retailers. Together, these deals reflect what we continue to see across the portfolio. Today's retailers are willing to pay premiums for our high-quality locations and are actively upgrading our merchandising mix in the process. Renewals and options totaled 300 deals across 1.9 million square feet at a blended spread of 7%, comprising 6.1% of renewals and 8% on options. This is another clear example of the health and stickiness of our portfolio with retention remaining at historically high levels as tenants continue to prioritize our open-air, grocery-anchored locations. Small shop occupancy hit a new record high of 92.9%, and we continue to see room for further occupancy gains as demand for smaller format space remains exceptionally strong. Anchor occupancy only dipped 10 basis points quarter-over-quarter to 97.8% despite a 23 basis point impact from Painted Tree but remains up 110 basis points year-over-year. Turning to our SNO pipeline, economic occupancy increased by 20 basis points to 92.4%. The pipeline now represents $95 million in annual base rent, of which $75 million is incremental and 48% of that is projected to commence by the end of the year. Importantly, this pipeline continues to track ahead of our original plan with construction and leasing tightly coordinated to keep converting signed leases into cash paying rent as quickly as possible. In terms of the actual cash flow from rent commencements, we're now projecting $33 million to be received in 2026, which is 16% higher than our initial estimate. The timing of the rent commencement includes $24 million from tenants that opened in the first half of the year with an additional $9 million projected for the back half of 2026. Effective July 1, we launched our new operating model, moving from a regional structure to a nationally aligned functional team organized around our assets. It sharpens accountability around the metrics that drive value, brings greater consistency across the portfolio and accelerates execution. This leverages the scale of our national platform without adding incremental cost. We expect the benefits to build over time through improved FFO growth, same-site performance, leasing productivity and margin expansion. That structural change is the most visible piece of a broader effort we call One Kimco. Alongside it, we're investing in the operating infrastructure behind it. First, a unified data platform that brings our portfolio, leasing and property data into one place. Second, AI tools that are helping automate routine workflows. And third, modern collaboration tools we're rolling out across the organization. Taken together, this is how we build durable operating leverage, converting the scale of our platform into speed and margin. To sum up, leasing demand remains healthy. Spreads continue to run solidly double digits, small shop occupancy reached a new all-time high, and our SNO pipeline continues to convert into cash flow growth. Combined with continued momentum in package leasing, growing retailer interest in our lifestyle portfolio and a more focused operating model, we believe the setup for the back half of the year remains strong. With that, I'll turn it over to Ross for an update on the transaction market. Ross Cooper: Thank you, Dave, and good morning, all. As anticipated, we had an active second quarter and follow that up with a busy July. Our transaction execution has been quite strong, and we expect it will continue through the rest of the year. While the market is as competitive as ever, we are utilizing preexisting relationships, contractual purchase rights in the forms of right of first offers and right of first refusals and JV relationships to find accretive opportunities for external growth. Simultaneously, we are benefiting from aggressive pricing as the market continues to place substantial value on highly stable, lower growth assets that do not fit our long-term growth objectives. Paired together, this capital recycling strategy we put in place is truly helping to enhance the growth trajectory of the portfolio looking forward. I want to add some additional color on a few of the sales Conor highlighted to showcase the benefits and rationale. The monetization of the multifamily building, the Milton is part of our Pentagon Centre mixed-use project that we developed in a partnership with CPPIB. It is a true reflection of the bottoms-up approach that we have taken with the multifamily densification program over the past decade. While the real estate was always exceptionally well located, we viewed the opportunity to create value through a different lens, beginning the formal process of entitling the project for mixed use and selectively and methodically activating 2 multifamily buildings over the past 10 years. This meaningfully enhanced the value for each component of the project, including the existing retail at this location. We felt this was a good time to crystallize that value and monetize our ownership in the asset. The first transaction was the Milton at a 4.9% cap rate emphasizing the tremendous demand and capital available for the best located real estate and the premium that is created with the synergies between well-executed residential and strong performing retail. We anticipate monetizing the remainder of Pentagon Centre in phases with the second residential tower, the Witmer, most likely next and the enclosed retail thereafter, but no formal time line has been determined. As it relates to the flat to low growth lease disposition initiative, the Costco transaction is a prime example of accretive capital recycling. While the face cap rate is important, the bigger benefit of the transaction is the future cash flow growth of the reinvestment. From an investment perspective, the long-term return profile of the Costco assets was materially below that of the properties we acquired. The Costco leases that were sold had a compound annual growth rate or CAGR of under 1%, translating to a sub 6% unlevered IRR based on a 10-year hold with tenant control on those leases for decades. We were able to take the proceeds from the sale and utilize a 1031 exchange to acquire 2 grocery-anchored centers in South Florida in a tax-efficient manner with a CAGR for the 2 assets more than 350 basis points higher than the Costco properties. As such, we turned a sub-6% unlevered IRR into north of a 9% unlevered IRR. Most importantly, these transactions demonstrate how capital recycling can create earnings growth without relying on external equity issuance while simultaneously improving the long-term growth profile of the portfolio. Additionally, the assets were acquired off market due to a long-standing relationship with the seller. One of the 2 properties, the Pompano Center, was a structured investment that was converted into equity ownership. This is the third acquisition from our structured investment program, all of which were grocery-anchored centers that we intend to hold long term. Further evidence of the program being both an accretive way to get yield and another important avenue for our acquisition pipeline. We expect the capital recycling from low cap rate multifamily and flat to low growth leases to continue with the proceeds reinvested into higher-growth assets that will further enhance our portfolio. I will now pass it to Glenn for the financial results of the quarter. Glenn Cohen: Thanks, Ross, and good morning. As the team has outlined, Kimco delivered another quarter of strong operational and financial performance, highlighted by 4.5% growth in FFO per share, continued improvement in credit trends and further strengthening of our balance sheet and liquidity position. These results reflect the quality of our portfolio, the resilience of our cash flows and the benefits of our disciplined capital allocation strategy. I'll focus on the key drivers behind the quarter, our capital markets activity, the balance sheet and our outlook. FFO for the second quarter was $309.2 million or $0.46 per diluted share compared to $297.6 million or $0.44 per diluted share in the second quarter of last year. Operationally, the portfolio continues to perform at a high level. Same-property NOI increased 3.5%, driven by the growth in minimum rents, stronger net recovery income and continued improvement in tenant credit performance. Credit loss came in at 57 basis points for the quarter compared to 89 basis points for the second quarter of 2025. Year-to-date, credit loss is just 54 basis points, reflecting the continued strength and resilience of our retailer base. These operating fundamentals translated into another quarter of FFO growth. Importantly, there were no material onetime adjustments or noncash items affecting comparability this quarter. Turning to the balance sheet. We ended the quarter with consolidated net debt to EBITDA of 5.2x or 5.5x on a look-through basis, including pro rata JV debt and preferred stock. We ended the quarter with $2.7 billion of total liquidity, including $700 million of cash on hand, much of which will be used to satisfy our upcoming 2026 debt maturities. A few additional details regarding our successful inaugural exchangeable note offering. On the strength of investor demand, we upsized and issued $600 million of 3.5% exchangeable senior notes due 2031. The notes carry an initial exchange price of approximately $32.36 per share, representing a 27.5% premium to our stock price at issuance and nearly 60% above our stock price at the beginning of the year. In connection with the offering, we repurchased approximately 4.1 million shares of common stock for $104.7 million at $25.38 per share. This structure was deliberately designed to mitigate the potential dilution from the offering while diversifying our capital sources, extending our maturity ladder and securing an attractive cost of capital. It was also compelling from a capital allocation perspective, given our dividend yield exceeded 4% at the time of the issuance compared to the 3.5% coupon on the notes. Subsequent to quarter end, we also repurchased 516,750 shares of our 7.25% Class N convertible preferred stock for $33.3 million, funded through the issuance of 549,250 common shares, which was sized to cover the holders related hedge positions and $19.6 million of cash. This transaction will result in a charge of approximately $3.8 million in the third quarter, reflected in both net income and FFO. As we look ahead to 2027, we remain exceptionally well positioned with substantial liquidity and a broad set of financing alternatives, including the unsecured bond market, term loans, commercial paper and the exchangeable note market. As always, we'll remain opportunistic with respect to timing and execution. Given our strong first half results, we are raising the lower end of our full year 2026 FFO outlook to $1.83 per diluted share from $1.81 previously, while maintaining the top end at $1.84. The revised outlook reflects strong first half operating performance, improving credit trends and greater visibility into the remainder of the year while still maintaining flexibility for the timing of transactional activity. We are also raising our same-property NOI growth assumption to a range of 3% to 3.5%, up from 2.8% to 3.5% previously and tightening our credit loss assumption to 55 to 75 basis points from the prior level of 65 to 90 basis points. We've also adjusted downward our assumption for interest expense and preferred equity dividends, reflecting the financing activity to date. As always, our outlook considers the timing of capital activity, including financing, acquisitions, dispositions and redevelopment spend, and all other assumptions remain substantially unchanged. I'd also note that the Board declared a quarterly cash dividend of $0.28 per common share or $1.12 on an annualized basis. The 12% increase over the dividend declared in the third quarter of the prior year reflects continued growth in operating cash flows, earnings and taxable income. We believe a growing dividend remains an important component of total shareholder return while maintaining the flexibility to invest in future growth opportunities. In closing, the quarter reflected continued operating momentum, disciplined capital allocation and further balance sheet strengthening. Combined with improving credit trends and significant liquidity, we believe Kimco remains well positioned for the second half of the year to further execute our growth strategy and create long-term value for shareholders. And with that, we are happy to take your questions. Operator: [Operator Instructions] Your first question comes from the line of Michael Goldsmith with UBS. Connor Mitchell: This is Connor here with Michael. Just wanted to touch upon the transaction activity and the capital recycling. Obviously, you guys made a lot of progress in the quarter with activity in ground leases, shopping centers, apartments and incorporating the SIP as well. So while you didn't change guidance on the acquisitions and transaction activity, we were just wondering if you'd be able to kind of share your thoughts and provide some color on what we should expect for either a similar level of activity in the back half of the year and maybe just like the mix of transactions that you currently have in the pipeline. Ross Cooper: Sure, Connor. Happy to answer that. So yes, I mean, we're really excited with the execution thus far as we've talked about at the beginning of the year. the accretive capital recycling is really critical in enhancing the growth profile of the portfolio. So selling some of those Costcos at super aggressive cap rates, recycling that into the grocery-anchored assets with a significantly higher growth profile was a great trade. Converting on the value creation of our first multifamily crystallization, I think, was an important step, and we do anticipate that we'll see more of that. As I mentioned, the Witmer is the next multifamily project that we would anticipate closing. While we haven't identified a definitive time frame, we do think that, that will happen this year as well. So with that, we feel really confident in some of the sources of future acquisitions that we've been working on. Obviously, the disposals have been front weighted in the first half of this year, but we do anticipate that the activity on the acquisition side will continue to grow here in the back half, and we have a couple of things that we're excited about that we're working through. So the structured investment program continues to be a source of opportunity. And not only are we excited about the yields that we've been able to achieve within that program, but do believe that the quality of the assets within that book have continued to improve. And with the third acquisition from that program taking place with one of those 2 grocery-anchored assets, we think that future acquisitions from that program will continue with quality that we're really excited about. And then, of course, we continue to have a pretty substantial amount of ground leases to dispose of at low cap rates and low growth profiles that we will continue to recycle. We can be pretty methodical with the timing on that. As we've talked about, tax efficiency and conversion into 1031 exchanges will continue to be an important part of that program. But we feel really good about the execution and think that we can continue to recycle out of the lower growth, lower cap rates and into some acquisitions that will have significantly enhanced growth profile. So that will continue through the back half of the year and then, of course, into '27 and beyond. Operator: Your next question comes from the line of Juan Sanabria with BMO Capital Markets. Juan Sanabria: I guess a question for Glenn. Could you just comment a little bit about the implied FFO in the second half? I think it's flat, but same-store NOI is set to accelerate. It sounds like you have more acquisition activity also expected as per Ross' last answer. And I know you called out like a $0.01 pref one-timer on the cost side, but just curious on how we should think about the earnings trajectory in the second half. Glenn Cohen: Sure. Again, we did raise the bottom end of the guidance, lifted it $0.02 from where it was, which gets you to at the bottom end, 4% growth. The upper end of $1.84 is 4.5% growth. So we're approaching where we've been talking about trying to keep up with that 5% growth level. So you're starting to get to those levels. As I did point out, we do have a charge in the third quarter that we're aware of. So that's about 2/3 of $0.01 that has an impact on it. And you also have, again, the timing of the transaction activity that Ross is talking about. So we have some of the dispose ahead of the acquisitions. The good news is the cash that we're holding on earns about 4%. So it's not 0 by any means. But again, the deployment of that capital and the timing of that kind of plays into the overall guidance activity that we have. So we feel really good about where we're headed. We're going to continue to do everything we can to meet what's there and hopefully try to exceed it. Operator: Your next question comes from the line of Mike Mueller with JPMorgan. Michael Mueller: I guess just going back to the dispositions and resi. Should we think of anything that you develop in terms of resi or mixed use as being a higher priority sale at some point down the road? Or are there some projects that you would hold on to? Ross Cooper: It's a good question. I think the beauty of the program and the way that we've structured is that we have optimal optionality. So when we develop these projects or we've structured them in a variety of different ways, you've seen us self-develop with a joint venture partner, contribute our land into a JV where our component is sort of structured as prep equity, where we're able to achieve a return during the development phase as well as longer-term ground leases as well as selling off the dirt in the form of the entitlement to predevelopment. So we look at each and every one of these projects through a very unique decision tree and make the determination as to how we activate it, what the exit strategy is, what the timing of that is. And we really do retain the right in each and every one of these instances to really control our exit, control our destiny. So when you're in a market like we're in today where we're able to sell the Milton at a 4.9% cap as well as some of our other multifamily that we know would price in this market at very aggressive cap rates, it's likely a portion of the market cycle where it makes sense for us to monetize and redeploy. But to the extent that we have opportunities with higher yields where we think it makes sense either in the medium or even long term to own it, we have the ability to do that at the appropriate time if our cost of capital allows for that. So we do view it as a form of currency that we can utilize and sort of pick and match when and if we look to monetize, but we're going to do that on a case-by-case basis. Conor Flynn: Michael, I think the key too is the enhancement of the retail. So when we look at creating a mixed-use environment, we're seeing the thesis play out where the retail is driving premiums on the apartments, but the apartments are also driving premiums on the retail. They're creating that campus environment that enhances each other. And so the components that we see for the future of Kimco is really unlocking that and enhancing the retail component. And then as Ross said, having total optionality on the apartment side. So we think that the program continues to bear fruit, 14,000 entitlements. We obviously have a laddered opportunity set that we continue to activate, and we continue to see that there's a lot of untapped potential within the portfolio, and we're excited about the future. Glenn Cohen: Yes. I would just add that the other thing to keep in mind about the program is we're doing it in a capital-light manner, which is really, really helpful. We're not taking a major drag on earnings to build these over a 2- to 3-year period. The preferred equity structure that we've created with the partners really has allowed us to build these without having a drag on earnings. Operator: Your next question comes from the line of Andrew Reale with Bank of America. Andrew Reale: Maybe just a follow-up on the recycling. These ground leases have basically near 0 CapEx, whereas the acquired shopping centers are going to have some leasing and TI requirements. So I guess on this 100 basis point spread you lay out, what does year 1 accretion actually look like on an AFFO basis? Ross Cooper: Yes, it's a good question, and that's why we also want to indicate what the IRR trajectory of these investments is because we look at it through a few different lenses. Clearly, year 1 from an AFFO standpoint is important, but that spread, while it's going to be anywhere from 50 to 100 basis points is just one factor. When we think about the CAGR, the trajectory and the IRR of a 10-year hold, that's where we're seeing selling of the ground leases, Costco is the example that we gave being sub-6% and we're cycling that, including and factoring in all costs associated with operating the multi-tenant shopping center where we're able to generate high 8s, low 9s for the recycling into the grocery-anchored shopping center. So you're seeing that 300 to 350 basis point spread on the IRR, inclusive of costs associated with the multi-tenant shopping center. So it's definitely a good trade for us from the growth trajectory, even factoring in the CapEx-light nature of the ground leases. Operator: Your next question comes from the line of Jamie Feldman with Wells Fargo. James Feldman: So traffic trends have been pretty solid. You highlighted 7 consecutive months of spending. Can you talk more about -- or spending improvement, can you talk more about the differences you're seeing in value-oriented versus higher-income consumers across the portfolio? Conor Flynn: Sure. I'm happy to start, and then Dave, you can add some color. When you look at the growth of the traffic, clearly, it's still being led by the high income, highest demographics piece of it, but it's still positive 2% on the lowest income demographic as well. So I think people are retrenching if you're in the lower demographic. But when you look at Kimco's portfolio, we sit in that first ring suburb of really the top major metropolitan areas. And so our consumer screens towards that middle to upper end on the income levels. And so we continue to look and see how our tenants are performing because obviously, traffic is a leading indicator, but we don't necessarily have the visibility inside the store. But when you look at the credit card spending, when you look at where our retailers are performing and how they're presenting their store operating plans and their new growth plans, it's very clear the store base is producing meaningful growth for them. And we continue to think that, that's going to showcase with our portfolio reviews, platform deals and the relationships we have across the retail spectrum. David Jamieson: Yes. Just to add a couple of data points, too. On the middle income side, we're seeing spending up about 5.5%. On the low income side, it's still about 3.5%. So you are seeing increases on the spend side. And complementing what Conor was saying, our shopping centers do cater to all needs on the income spectrum. And depending on where you are in terms of your discretionary income or the cycle of the market, our diversity of our tenant base helps service that. You're still going to the grocery store, you still need to eat. So it's just really dependent on what you buy within the store. It may vary month-to-month, year-over-year, depending on your situation. But that's our intention. Our intention is to always be there for you when it's needed. Glenn Cohen: I would just add, the consumer continues to be incredibly resilient, right? They've dealt with higher interest rate environment for the last few years. They've dealt with higher gas prices. They've dealt with higher egg prices throughout it. And I think the thing -- the saving grace of all that really has been if you look at where unemployment is, unemployment has remained incredibly low. Job turnovers remained incredibly low. And again, when you're sitting and are feeling comfortable that your paycheck is coming, people continue to spend. So we continue to watch that. We're looking for that crack in it, but so far, so good. Operator: Your next question comes from the line of Michael Griffin with Evercore ISI. Michael Griffin: On the leasing front, Dave, I'm curious, your SNO spread this quarter came in about 10 bps from last quarter at 400 basis points. Just given all of the operational initiatives that KIM has been undertaking, getting these tenants open quicker, commencing rents quicker. Does it feel like we've hit sort of that widest spread between leased and economic occupancy? And can you give us a sense of where you expect that to trend into the back half of the year and then as we kind of start to think about 2027? David Jamieson: Yes. No, I appreciate the question. So when you look at the SNO pipeline, obviously, it's the physical occupancy that as we continue to push leasing and we're able to continue growing physical occupancy. If your economic stays the same, that will widen the spread. But as we're opening tenants and getting them into the cash paying component and growing economic occupancy should compress. So I think you're having both initiatives run extremely strong right now. So you could see a fairly steady state through the back half of the year. And if our occupancy levels remain high and there's no bankruptcies or material issues in, say, '27, you could start to see that compression. But I think what's most important is the conversion to cash flow and the mark-to-market that we're seeing. So even on the widening of the spread that we've had elevated, when we -- when you look at the mark-to-market on the new leases, obviously, this quarter was a record quarter. When you look at the mark-to-market on the anchors in the 20%, 25% range historically that we're seeing, you're seeing the real cash flow growth come through. So it being elevated is actually -- it's a good thing because it's showing the future cash flow, but it's the conversion of the old to the new that matters most to us. So we're continuing to push on all fronts and just grow that cash flow. Conor Flynn: The only thing I'd add is I think we still have room to run on the occupancy side. When you look at our anchor occupancy, it's still below all-time high. So like the physical occupancy lift we still have to go is still there in the anchor component. And then obviously, small shops being at an all-time high, you would think we're sort of cresting that potential ceiling, but I don't think that's the case. I think we're continuing to see diversified demand come into small shops, as Dave outlined, from a number of different uses that continue to gravitate towards the convenience and the value proposition that our shopping centers offer, and you're seeing it with the consumer continuing to show up with our traffic counts. Operator: Your next call is from Greg McGinniss with Scotiabank. Greg McGinniss: I had a few follow-up questions on the new One Kimco operating model. Firstly, how does that impact conversations with retailers? And then what's the expected size of the investment on the tech side, the data, AI tools, collab tools? And then what's the expected long-term benefit to the margin? David Jamieson: Sure. I'll take the retail question, and I'll kick it over to Will on the other questions. As it relates to the retailer, the conversations have been extremely constructive. It's one unified message across the country. We have one accountable party. As part of the One Kimco launch, we also have a national account team that's been launched as well, focusing on those retailers that we have package deals working, obviously, large anchors and nationals that are actively growing. So we're able to sit with them and address multiple sites, multiple leases, multiple opportunities at once and then have one clear concise message back to them, and they're able to roll those leases up with one group managing the entire deal flow end-to-end. So you're seeing acceleration of the execution, which is huge on both sides. And then even on the back end of it, too, though, we're seeing with construction and development working directly with their heads of construction, which is you're seeing a pull forward on the SNO pipeline with a number of retailers opening sooner. And that's really important for them because their pressure to hit their open to buys and get their stores open as quickly as possible. So there's this real complementary relationship that we've been developing over an extended period of time and One Kimco sort of wraps it all together and is really putting our full resources to work. Conor Flynn: The only thing I'd add is the negotiating leverage that Kimco has today is very different from what it's been in the past. And having One Kimco having that negotiating leverage is very different from the regional structure we had before. And I think that's a meaningful change that you should see in the margin enhancement going forward. And then, Will, do you want to take the AI question? Will Teichman: Sure. With respect to digital transformation and just the broader move to our new operating model. Our Office of Innovation and Transformation is taking the lead in coordinating these efforts. And in the second quarter, we were proud to be a part of helping the company to transition through these changes, which impacted our people, processes as well as system investments that we had to make. We're very focused right now on consolidating a pipeline of digital transformation initiatives, and we've made some significant progress in the first half of this year, including establishing a new data platform, as Dave mentioned in his prepared remarks, as well as standing up key AI and agentic infrastructure. We're really pleased with the progress and from an upskilling perspective, are pleased to see now weekly AI utilization within our workforce above 80% among all of our associates. We have AI-powered workflows that are now in place across asset management, leasing, underwriting, legal and other key functions. And we really see this as the earliest -- or the early innings of a shift akin to the emergence of the Internet. As we think about what this will cost the business, our focus is on surfacing investments and incremental steps, which will pay back along the way. So I can't put a number to what we will invest over the next, say, decade around these transformation efforts. But what I can tell you is that year-to-date, we've yielded approximately 5x return on the amount of money that we've spent and invested in our AI initiatives. So 5x in terms of expense savings offsetting the expenses that we've invested into these efforts. Operator: Your next question comes from the line of Floris Van Dijkum with Ladenburg. Floris Gerbrand Van Dijkum: Nice progress on capital recycling. My question is a little bit of a different topic, which I don't know gets a lot of attention, but the ancillary revenue line, and maybe this is for Dave. I think ancillary revenues are about 1.8% of total revenues today. You talk about the potential growth in that. How should we measure success? Where do you think this can go? And how should investors look at this? Should this be as a percentage of revenues? Should it be as a percentage of per asset or per square foot? And what's the upside potential? Do you have a target 3 to 5 years hence in terms of what it could represent as a percentage of revenues? David Jamieson: Yes. It's a great question, Floris. So the way we're looking at it is obviously optimizing the value of each of our assets. I think it's a percent of revenues as we continue to grow it. We're focused a lot on building national programs as well that build a residual base into that revenue line that we can grow over time. And then on top of that, you have the specialty income side, which is really the backfilling of vacant space intermittently while you're looking at long-term replacements. Those are usually driven by, say, the Spirit Halloween deal. So as you're growing your occupancy and stabilizing your tenant base with that predictable residual cash flow with long-term leases, we're looking at an alternative of how do we build a sustained predictable cash flow within the ancillary income world. And so we look at each of our assets is how to optimize it either through advertising through energy utilization, obviously, EV charging, solar, et cetera. When we're looking at the specialty leasing side, how do you activate residual excess parking in common area space that's underutilized at the time. So it's a real forensic approach that is nuanced in nature, depending on the asset, but we have the team and the resources and really driving an enterprise initiative behind that. Glenn Cohen: I mean we've been really enhancing the solar program. We have a couple of larger projects on some of our properties that are in the process. So we're looking at every avenue that we have from solar, EV charging stations, just full use of the property anywhere we can to drive additional revenue. Operator: Your next question comes from the line of Rich Hightower with Barclays. Richard Hightower: I just wanted to ask about the convert issuance and how you think about sizing that program relative to the overall balance sheet. I guess, in the near term, obviously, it's a great low-cost source of capital. In the longer term, that market is a little more volatile than maybe traditional debt. You might be perceived to be sort of over-earning on the interest expense side of things for some period of time. So how do you think about balancing that relative to all the other sources of capital? Glenn Cohen: Yes. I mean look, it's a good question. We're always looking at the capital structure that we have. We don't rely on any one specific part. You have a whole lot of options available between term loans. We have a commercial paper program on the short end that we haven't really accessed yet that's fully available to us. Obviously, you have the traditional bond market in multiple tenors. And we've been a participant. We've issued paper that's been as short as 5 years. We have 4 issuances of 30-year paper. We have perpetual preferreds when it's been opportunistic to issue them. We have those outstanding as well. So I think the way we really look at it is it's just another tool and another opportunity for us, and it really gave us another opportunity to expand investors in our company, right? The exchangeable investor is very different than -- and in a lot of cases, very different than the traditional bond investor. So it's just another -- just another access to capital that we think as a large company that's an A-rated credit, it's a good thing to use today in balance like anything else. Conor Flynn: Yes. The only thing I'd add is the strategic goal of getting the A-/A3 rating opens up all of these opportunities that Glenn has been talking about. I think when you look at positioning ourselves for the long term, we really do believe that we've checked the box in terms of balance sheet improvement and taking it from obviously where we were to where we are today allows us, I think, complete optionality across the spectrum of financing that we can see and again, be opportunistic when those windows open. Operator: Your next question comes from the line of Caitlin Burrows with Goldman Sachs. Caitlin Burrows: Just on the Pompano Beach deal, could you remind us on the initial structured investment, maybe when that was and your take on why they initially decided to go with that structure followed by the sale now? And when you have a property like that going from a structured investment to a property acquisition, does that process end up being FFO dilutive? Ross Cooper: Yes, it's a good question. And actually, I think Pompano is a great example of our program and how we really look to sort of cater our capital to a solution for a borrower and something that's unique to Kimco in the way we structure our deals. The Pompano deal was done a few years ago where we actually came in as a senior lender at a slightly higher LTV than what a traditional lender would come in at. And while it's a really strong performing Walmart neighborhood grocery-anchored shopping center, there were a couple of moving pieces with that asset that we got very comfortable with and thought there was significant upside long term, where I think a traditional lender may have struggled with some of the initial pieces. And a few examples I can give you there, there was a former JOANN's box that was a bit uncertain. We had known through our tenant relationships and through dealing with the borrower there that Burlington was looking to take that JOANN's box. That hadn't been completed yet, but we had full faith in talking with the retailer that, that was going to come to fruition and ultimately did. In addition to that, there was a Stein Mart box that previously went through bankruptcy. There were leases that were being negotiated with Marshalls and Five Below to replace that Stein Mart. So again, we got very comfortable with the trajectory of where the cash flow and the tenancy of that asset was going, even though it may have been a little bit early in the transition of that asset. We came in as that senior lender at an 8% yield. But again, that yield for Kimco is flat as a fixed interest rate. And then we had the opportunity as the borrower was looking to sell the asset to utilize our right to step in and acquire that asset at a price that we're very comfortable and excited about. To your point, clearly, the going-in cap rate is going to be lower than the 8% yield that we were earning as a lender. But when you think about the growth trajectory of where that initial yield is going to go over time, we see 3.5% to 4% plus CAGR on that versus what was initially a flat income stream as a lender. So over time, we'll see the cash flow yield grow and catch up to that initial yield from the structured investment. But it is important to take a slightly separate perspective when we're thinking about what our structured investment program yields and what the purpose of that program is versus our long-term hold portfolio that we're looking to enhance the growth over time. And obviously, being able to utilize that acquisition of the 1031 exchange for the Costco sales that were done at a flat 5% cap was a really good trade for us. Glenn Cohen: I mean, simply put, you're being paid to ROFR. Conor Flynn: Yes. The other thing, Caitlin, to keep an eye on is obviously that 8% that got paid back, the new structured investment book that you've seen us deploy this year is averaging over 10%. So obviously, we're net positive in terms of the capital going out versus the capital we're getting back. And that's our goal for that program is obviously have a bit of a positive spread as well as have it be net positive. Operator: Your next question comes from the line of Craig Mailman with Citigroup. Craig Mailman: Conor, maybe I just want to go back to something you said in your prepared remarks that the growth potential here is higher than maybe the headline suggests and maybe dig into that a little bit. As Glenn was talking, clearly, you guys are targeting at 4.5% to 5%. You're doing a lot on the capital recycling side, kind of increasing the growth profile of the company overall. I guess when you kind of highlight something like that, what's the time frame that we should be thinking about to get kind of the kind of acceleration above maybe 5% given all that you're doing here? Is that even a possibility? And then just also as we think about -- you guys raised the dividend 12%. And I know we had talked about that dividend growth may exceed kind of earnings growth here. So just from a total return perspective also since this is real estate, just how do you think about that opportunity maybe versus peers? Conor Flynn: Yes, it's a good question, Craig. I think when you look back the last 2 years, we've produced FFO growth of 5% and then 6% plus. So we've clearly reset the trajectory of our earnings growth versus sort of prior cycles. And I think that continuation of that growth profile will obviously be contingent on where the consumer goes, where the retailer environment goes, where interest rate goes. But from a fundamental standpoint, if you think about the structure we have, the platform we have, the investments we're making, that's why we're super excited about the future of Kimco. We are investing in our people. We are investing in AI. We are investing in our platform at a point where we're coming at it from a position of strength. So we're reorganizing at all-time high occupancies to drive further occupancy growth. We're refinancing, obviously into a higher interest expense environment, but we have an A-/A3 credit rating. So the balance sheet is in the best shape it's ever been in. When you talk to our folks, when you tour our assets, the assets itself really are thriving because of the diversity of demand we're experiencing. And then when you look at the future opportunity set of our entitlement program, we've got 14,000 entitlements. We've just completed our first round trip of monetizing a multifamily project. You look at all of these levers we have for growth, and we got super excited about where we sit today, but also where we're going tomorrow. And I think that's why we're at a position of strength and look at the mark-to-market that we have across the entire portfolio, and you see that SNO pipeline coming online, the SNO pipeline is just base rent. It's not recoveries. And so that enhances it even further as our margin, I think, is really at a point where it's going to enhance from here. So you put all those ingredients together, and I think it's very compelling to think that Kimco is still trading at a discount, yet our growth is at the top of the charts in terms of our peer group and our balance sheet is at the top of the charts in terms of the entire REIT industry. And so you put those components together, and I think it's a very compelling time to invest in Kimco. Glenn Cohen: So let me just clarify a little bit on the dividend, too, which I think will help. As we mentioned, we're at -- payout today is 100% of our taxable income from the operations of the business. So if you think about percentage growth on FFO, our base of FFO from last year at $1.76. Every penny we grow is about 56 basis points, where $0.01 of growth on the dividend is 4%. So just you got to keep that in mind because as we're growing our funds available for distribution, every $7 million that we grow or $0.01 of FFO per share is requiring us to add to the dividend. So the percentages are -- they're dramatically different because you're using just a much different base number of the dividend versus FFO. Operator: Your next question comes from the line of Alexander Goldfarb with Piper Sandler. Alexander Goldfarb: Conor, you mentioned in the opening comments about revenue recognition, executing deals or doing things to get things that are open sooner and you said that you guys are ahead of schedule. From a material perspective, as you guys launch One Kimco, obviously, you're increasing leverage with the tenants to get them in sooner. Do you see this as a material impact to FFO growth, meaning as you go through and listen to your ops guys, your leasing team, everyone throughout the organization to get tenants to take space sooner, do you see this as a material element that can boost FFO? Or you would say, hey, this is just one of the spices in the spice cabinet that adds to that 5% plus? Conor Flynn: No, I do think it drives FFO growth further. I mean if you think about it, it's not only, Alex, from a new deal perspective, it also is on a renewal perspective. So we would typically do renewals on a one-off basis and try and get the best intel you can from your local leasing reps to sort of drive that renewal. When you have the strength of One Kimco behind the renewal process, in essence, at the time we are at today, we have more negotiating leverage than we've had in the past. And so we can take that pipeline of renewals of, say, 10 to 20 or even 30-plus renewals that are happening in a year and really strengthen that renewal rate to a point where it's a driving force of FFO. And as you know, renewals don't take any CapEx. And so that is really where I see a meaningful impact of the earnings growth, FFO trajectory going forward. Operator: Your next question comes from the line of Omotayo Okusanya with Deutsche Bank. Omotayo Okusanya: I just wondered if you could talk a little bit about the expectations for same-store NOI growth acceleration in the back half of '26. I think your full year guidance is 3% to 3.2% or so and you were 2.6% year-to-date. So just kind of walk us through the back half, the acceleration as expected on a year-over-year basis. Is it just easier comps? Or kind of what's kind of driving that? Glenn Cohen: Yes. Again, the first half of the year, if you look at where we were, we had to first deal with lapping the bankruptcy activity that happened last year with Party City's, JOANN's, Big Lots and others. So to your point, we are expecting continued acceleration of growth in the back half of the year that gets us into the revised guidance range that we put out at 3% to 3.5%. So that will imply mid-3s to a little over 4% third and fourth quarter as we go for the rest of the year. And again, if we're hitting those levels, we are going to get into the mid- to upper range of the revised guidance. Operator: Your next question comes from the line of Ronald Kamdem with Morgan Stanley. Ronald Kamdem: Just one on -- just on anchored centers. I know some of your peers have sort of been going in that direction. Just sort of curious your thoughts, how you guys think about that expanding the aperture? Is that something that's interesting? And if I could just ask a quick follow-up to the discussion on the in-line lease -- in-line occupancy at record levels. I'm just curious if you're willing to think about what it would take to get to maybe 94% or how you guys are thinking about that? Conor Flynn: Sure. On the first question, I think strategically, we see the small strip center as part of our ecosystem. When you look at every single shopping center we own, it's a component of it. And so obviously, underwriting those assets, they're smaller check sizes. But if they're good real estate with below-market leases with the ability to use our platform to show growth, I think we've always been looking for those types of centers. And if you look at across Long Island, where we sit today, a lot of our centers are similar to that size and scale with significant growth profile. So we continue to see that as part of our ecosystem that we'll continue to look to underwrite. As you know, there's been a lot of capital formed for that structure and that asset class. It's been very competitive, but we continue to mine for those opportunities and have them across our portfolio. David Jamieson: And then on the second question, obviously, supply is muted. The demand side is high. So that's working in our favor to help continue to push occupancy north. The focus on grocery conversion, so continuing to add grocery stores to our shopping centers, either through backfill opportunities or a redevelopment pipeline is creating a halo effect that helps us absorb the balance of the in-line space as well. That's also a contributor to pushing our occupancy northward and helping on the growth side as well. So continue to heads down focus blocking and tackling basic execution through the back half of the year. Operator: Your next question comes from the line of Paulina Rojas with Green Street. Paulina Rojas Schmidt: I think we haven't touched on cap rates. Has anything changed in terms of pricing recently? Or has it been mostly steady since last quarter? Ross Cooper: Yes. I mean I think cap rates continue to be very competitive. And what I would say that we've seen change a bit is that there seems to be more compression and a tightening between different formats. I think Conor just mentioned all the capital that's chasing the unanchored strip format. Obviously, grocery continues to be extremely competitive, but we're also seeing the lowest cap rates for more traditional power and lifestyle than we've seen in quite some time. So you're seeing a bit of a convergence of cap rates for all formats. And I would say that, that also holds true geographically, whereas several years ago, I think you saw a pretty significant premium or spread between some of the gateway sort of primary markets versus secondary and even tertiary, you're seeing that spread really narrowing and more aggressive cap rates in some of the secondary markets that historically may not have been chased by lots of institutions. So lots of capital chasing all formats, all geographies, and we'll continue to pick our spots and find the right opportunities for Kimco. Operator: We have reached the end of the Q&A session. I will now turn the call back to David Bujnicki for closing remarks. David Bujnicki: We just want to thank everybody that participated on the call. If you are looking for additional information, you can find in our financial supplement as well as our updated investor presentation on our website. Otherwise, have a wonderful week. Take care. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Kimco Realty, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kimco Realty wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Kimco (KIM) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. FFO per Diluted Share: $0.46 for Q2 2026, up 4.5% year over year. Total FFO: $309.2 million, compared to $297.6 million in Q2 2025. Same-Property NOI Growth: Increased 3.5%, driven by higher minimum rents and stronger net recoveries. Portfolio Occupancy: Overall pro-rata occupancy reached 96.4%, matching an all-time high; small-shop occupancy hit a record 92.9%. Leasing Activity: Signed 461 leases across 2.5 million square feet at a blended spread of 13.1%; new leases totaled 161 deals at a blended spread of 40.4%. Renewals and Options: 300 deals across 1.9 million square feet at a blended spread of 7% (6.1% on renewals, 8% on options). Credit Loss: 57 basis points for the quarter, down from 89 basis points in Q2 2025; year-to-date credit loss is 54 basis points. Net Debt-to-EBITDA: 5.2 times consolidated, or 5.5 times on a look-through basis. Liquidity: Ended the quarter with $2.7 billion in total liquidity, including $700 million in cash. Dividend: Quarterly cash dividend increased 12% to $0.28 per common share ($1.12 annualized). 2026 FFO Outlook: Raised lower end to $1.83 per diluted share, maintaining top end at $1.84. 2026 Same-Property NOI Outlook: Raised to 3% to 3.5% growth, up from 2.8% to 3.5%. Warning! GuruFocus has detected 9 Warning Signs with KIM. Is KIM fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kimco Realty Corp (NYSE:KIM) delivered strong second-quarter results with FFO per share of $0.46, up 4.5% year-over-year, and same-property NOI growth of 3.5%. Small-shop occupancy reached a record high of 92.9%, while overall portfolio occupancy matched its all-time high at 96.4%, despite a 16 basis point impact from the Painted Tree bankruptcy. Leasing momentum remained robust, with 461 leases signed at a blended spread of 13.1%, including a standout 40.4% spread on new leases, marking the 19th consecutive quarter of double-digit new-leasing spreads. The company successfully monetized its first ground-up multifamily development, The Milton at Pentagon Centre, at a 4.9% cap rate, demonstrating the value creation potential of its mixed-use platform. Capital recycling initiatives, including the sale of low-growth Costco leases and reinvestment into higher-growth grocery-anchored centers in Florida, are expected to enhance the portfolio's long-term growth profile. The balance sheet remains a competitive advantage, with $2.7 billion in liquidity and the successful issuance of $600 million in exchangeable notes at an attractive 3.5% coupon. Management raised the midpoint of its full-year 2026 FFO outlook and increased the quarterly dividend by 12%, reflecting confidence in continued earnings growth. The SNO pipeline represents $95 million in annual base rent, with $33 million expected to commence in 2026, 16% higher than initial estimates, supporting future cash flow growth. The launch of the 'One Kimco' operating model is expected to drive operational efficiencies and margin expansion, with AI initiatives already yielding a 5x return on investment. Credit loss improved to 57 basis points in the quarter, down from 89 basis points in the prior-year period, reflecting the resilience of the retailer base. The company absorbed a 16 basis point impact on occupancy from the Painted Tree bankruptcy lease rejections, highlighting ongoing tenant credit risks. Anchor occupancy dipped 10 basis points quarter-over-quarter to 97.8%, despite being up 110 basis points year-over-year, indicating some volatility in larger tenant spaces. The sale of The Milton at a 4.9% cap rate, while a positive proof point, may signal that the company is monetizing assets at relatively low yields, potentially limiting upside if held longer. The company faces a competitive acquisition market, with cap rates compressing across all formats and geographies, making it challenging to find accretive deals. The exchangeable notes offering included a share repurchase of $4.1 million shares at $25.38 per share, which could be seen as a defensive measure to mitigate dilution, potentially signaling concerns about stock price appreciation. The company expects a $3.8 million charge in the third quarter related to the preferred stock repurchase, which will impact both net income and FFO. Same-property NOI growth is expected to accelerate in the back half of the year, but the first half was impacted by lapping bankruptcy activity, indicating potential volatility in earnings. The company's dividend payout is at 100% of taxable income, which may limit flexibility for future dividend increases if earnings growth slows. The new operating model and AI investments, while promising, carry execution risks and may not deliver the expected margin improvements in the near term. The company's reliance on capital recycling and 1031 exchanges to drive growth could be impacted by changes in tax laws or market conditions, affecting the pace of portfolio enhancement. Q: Can you provide more color on the capital recycling strategy, specifically the mix of transactions expected in the back half of the year and the level of activity?A: Ross Cooper (President and CIO) stated that the company is excited about the execution so far, highlighting the sale of Costco assets at aggressive cap rates and the recycling of proceeds into higher-growth grocery-anchored assets. He confirmed that the monetization of The Milton is the first of several, with The Witmer, the second residential tower at Pentagon Centre, expected to close next, potentially this year. The company anticipates continued activity on the acquisition side, with a pipeline that includes opportunities from its Structured Investment Program and the disposal of ground leases at low cap rates, which will be recycled into assets with enhanced growth profiles. Q: Could you comment on the implied FFO for the second half of the year, given that same-store NOI is set to accelerate but FFO appears flat?A: Glenn Cohen (CFO) explained that the company raised the bottom end of its FFO guidance by $0.02, implying 4% growth at the low end and 4.5% at the high end. He noted a one-time charge of approximately $0.006 per share in Q3 related to the preferred stock repurchase. The timing of transaction activity, with dispositions ahead of acquisitions, also impacts the earnings trajectory, though cash held from sales earns about 4%. The company feels good about its position and aims to meet or exceed its guidance. Q: Should we think of any residential or mixed-use developments as higher-priority sales, or are there projects you would hold onto?A: Ross Cooper (President and CIO) explained that the company retains optimal optionality on each project, using various structures like joint ventures, preferred equity, ground leases, or outright sales. The decision to monetize depends on the market cycle and the company's cost of capital. Given the current aggressive cap rates for multifamily assets, it makes sense to sell and redeploy capital. Conor Flynn (CEO) added that the mixed-use strategy enhances the value of both the retail and residential components, and the company has 14,000 entitlements, representing a laddered opportunity set with untapped potential. Q: On the recycling of ground leases into shopping centers, what does year-one accretion look like on an AFFO basis, given the different CapEx requirements?A: Ross Cooper (President and CIO) acknowledged that while year-one AFFO is important, the company focuses on the long-term IRR. The sale of Costco ground leases, with a sub-6% unlevered IRR, and the reinvestment into grocery-anchored centers, with a high-8% to low-9% unlevered IRR, represents a 300-350 basis point spread, inclusive of the costs associated with operating multi-tenant shopping centers. This trade enhances the growth trajectory of the portfolio. Q: Can you discuss the differences in consumer spending trends between value-oriented and higher-income demographics across the portfolio?A: Conor Flynn (CEO) noted that traffic growth is led by higher-income demographics but remains positive at 2% for lower-income groups. Kimco's portfolio is concentrated in first-ring suburbs of major metros, skewing toward middle-to-upper income levels. David Jamieson (COO) added that middle-income spending is up 5.5% and low-income spending is up 3.5%, with the diverse tenant base catering to all income levels. Ross Cooper (President and CIO) highlighted the resilience of the consumer, supported by low unemployment, which continues to drive spending. Q: Given the operational initiatives to accelerate rent commencements, have we hit the widest spread between leased and economic occupancy, and where do you expect it to trend?A: David Jamieson (COO) explained that the spread could remain steady through the back half of the year as both physical and economic occupancy grow. He expects compression in 2027 if occupancy remains high and there are no major bankruptcies. The key focus is on converting the SNO pipeline to cash flow, with record mark-to-market spreads on new leases, particularly anchors at 20-25%, driving future cash-flow growth. Conor Flynn (CEO) added that anchor occupancy still has room to run below its all-time high, and small-shop demand remains strong despite record occupancy. Q: How does the new "One Kimco" operating model impact retailer conversations, and what is the expected investment and long-term benefit to margins?A: David Jamieson (COO) stated that the new model provides a unified message and a single accountable party for retailers, with a national-account team managing multiple sites and leases at once, accelerating execution and pulling forward the SNO pipeline. Conor Flynn (CEO) emphasized that the negotiating leverage is now significantly different, which should enhance margins. Will Teichman (Chief Innovation and Transformation Officer) noted that the company has established a new data platform and AI infrastructure, with weekly AI utilization above 80% among associates. Year-to-date, the company has yielded approximately 5x return on its AI investments in terms of expense savings. Q: How should investors measure success in the ancillary revenue line, and what is the upside potential?A: David Jamieson (COO) explained that the company is focused on optimizing each asset through national programs, advertising, energy utilization (EV charging, solar), and specialty leasing. The goal is to build a sustained, predictable cash flow stream. Glenn Cohen (CFO) added that the company is enhancing its solar program and exploring all avenues to drive additional revenue from its properties. Q: How do you think about sizing the exchangeable notes program relative to the overall balance sheet, and how do you balance it with other capital sources?A: Glenn Cohen (CFO) stated that the company does not rely on any single capital source, with options including term loans, commercial paper, traditional bonds, and perpetual preferred. The exchangeable notes provide access to a different investor base and are another tool for capital. Conor Flynn (CEO) added that achieving an A-/A3 credit rating has opened up these opportunities, giving the company complete optionality across the financing spectrum. Q: Can you provide details on the Pompano Beach deal, including the initial structured investment and the rationale for converting it to an acquisition?A: Ross Cooper (President and CIO) explained that Kimco initially came in as a senior lender at an 8% yield, providing a solution For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Kimco Realty Corporation? Here are five stocks we like better. Kimco reported solid second-quarter results: FFO rose 4.5% year over year to $0.46 per diluted share, same-property NOI increased 3.5%, and credit losses improved to 57 basis points. Leasing momentum remained strong: Portfolio occupancy matched a record 96.4%, small-shop occupancy reached 92.9%, and new leases achieved a 40.4% blended spread. The signed-but-not-open pipeline represented $95 million in annual base rent. Kimco raised its outlook and dividend: The company lifted the low end of its 2026 FFO forecast to $1.83 per share, increased its same-property NOI growth outlook, and raised the quarterly dividend 12% year over year to $0.28 per share. Bullish Technicals Say These 3 Large Caps are Buys Kimco Realty (NYSE:KIM) reported second-quarter funds from operations of $0.46 per diluted share, up 4.5% from a year earlier, as higher rents, improving credit trends and strong leasing activity supported results. The shopping center REIT also raised the lower end of its full-year FFO outlook and increased its quarterly common dividend by 12% from the prior-year period. CEO Conor Flynn said the company’s portfolio continued to benefit from retailer demand for open-air, grocery-anchored centers, while new shopping center development remains limited in its markets. Same-property net operating income rose 3.5% in the quarter, driven by higher minimum rents and stronger net recoveries. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “Kimco has the right platform, portfolio, and balance sheet to drive sustainable earnings growth,” Flynn said, citing retailer demand, shopper traffic, a signed-but-not-open leasing pipeline, capital recycling and balance-sheet management. Kimco’s pro-rata portfolio occupancy matched its all-time high of 96.4%, despite a 16-basis-point impact from lease rejections connected to the Painted Tree bankruptcy. Small-shop occupancy reached a record 92.9%, while anchor occupancy was 97.8%, down 10 basis points sequentially but up 110 basis points year over year. → 3 Drone Stocks That Should Soar After the Summer Slump David Jamieson, executive vice president and chief operating officer, said Kimco signed 461 leases covering 2.5 million square feet during the quarter at a blended lease spread of 13.1%. New leases accounted for 161 transactions and 685,000 pro-rata square feet, with a blended spread of 40.4%. The quarter marked Kimco’s 19th consecutive period of double-digit new-lease spreads, according to Jamieson. Renewal and option activity totaled 300 deals covering 1.9 million square feet, with a blended spread of 7%. Kimco replaced a former Rite Aid at Marketplace of Victoria with Japanese-inspired home goods retailer Teso Life. Woodlawn Marketplace in Charlotte, North Carolina, added Lowes Foods. The company signed its first Uniqlo lease within its lifestyle portfolio. Non-anchor leasing was broad-based, with strength in fitness, health and wellness, restaurants and professional services. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Kimco’s signed-not-open pipeline represented $95 million of annual base rent, including $75 million of incremental rent. The company expects 48% of the incremental pipeline to commence by year-end. Jamieson said Kimco now projects $33 million of rent commencements in 2026, 16% above its initial estimate, including $24 million from tenants that opened during the first half and $9 million expected in the second half. Foot traffic across the portfolio increased 3% year over year, including 3.2% growth in June, Flynn said. In response to an analyst question, management said spending growth was strongest among higher-income consumers, but remained positive among lower-income shoppers. Jamieson cited spending growth of about 5.5% among middle-income consumers and 3.5% among lower-income consumers. Kimco continued to recycle capital from lower-growth assets into grocery-anchored properties with higher expected growth. During the quarter, the company acquired Pompano Marketplace, a Walmart-anchored center in Pompano Beach, Florida, for $53 million, and Sunshine Plaza, a Publix-anchored center in a first-ring Fort Lauderdale suburb, for $56 million. Pompano Marketplace was the third acquisition sourced through Kimco’s structured investment program. President and Chief Investment Officer Ross Cooper said the property had initially been financed through the program, where Kimco served as senior lender at an 8% yield. Kimco later used contractual rights to acquire the property when its borrower sought to sell. Cooper said the acquired South Florida centers had compound annual growth rates more than 350 basis points above the Costco properties Kimco sold as part of its disposition initiative. The company said the Costco assets had annual growth below 1% and a sub-6% unlevered internal rate of return over a 10-year hold, compared with an expected unlevered IRR above 9% for the replacement properties. The company also completed the sale of The Milton, a 253-unit multifamily building at its Pentagon Centre mixed-use project in Pentagon City, Virginia. Cooper described the sale as Kimco’s first full-cycle monetization of a ground-up multifamily development within its value-add redevelopment program. The Milton sold at a 4.9% capitalization rate. Kimco expects to consider monetizing the second residential tower at Pentagon Centre, The Witmer, next, though Cooper said no formal timetable has been established. Management said it evaluates each mixed-use project individually and retains flexibility to hold, develop, sell or structure assets through joint ventures and preferred-equity arrangements. Executive Vice President and CFO Glenn Cohen said second-quarter FFO totaled $309.2 million, compared with $297.6 million a year earlier. Credit loss was 57 basis points in the quarter, down from 89 basis points in the comparable 2025 period. Year-to-date credit loss was 54 basis points. Kimco ended the quarter with consolidated net debt to EBITDA of 5.2 times, or 5.5 times including pro-rata joint venture debt and preferred stock. Total liquidity was $2.7 billion, including $700 million of cash, much of which Cohen said is expected to be used for 2026 debt maturities. During the quarter, Kimco issued $600 million of 3.5% exchangeable senior notes due 2031. The offering was upsized due to investor demand. The notes have an initial exchange price of approximately $32.36 per share, a 27.5% premium to Kimco’s stock price at issuance. In connection with the offering, the company repurchased approximately 4.1 million common shares for $104.7 million. Kimco raised the lower end of its 2026 FFO outlook to $1.83 per diluted share from $1.81, while maintaining the upper end at $1.84. It also increased its same-property NOI growth forecast to 3% to 3.5%, from a prior range of 2.8% to 3.5%, and tightened its credit-loss outlook to 55 to 75 basis points from 65 to 90 basis points. The board declared a quarterly common dividend of $0.28 per share, or $1.12 on an annualized basis. Cohen said the increase reflects growth in operating cash flows, earnings and taxable income. Founded in 1958 by Milton Cooper and headquartered in Jericho, New York, Kimco Realty Corporation (NYSE: KIM) is a leading publicly traded real estate investment trust (REIT) specializing in the ownership, operation and development of open-air shopping centers. The company's portfolio, concentrated on neighborhood and community centers anchored by grocery stores, encompasses approximately 400 properties across the United States, with selective holdings in Canada and Mexico. Kimco's core business activities include acquiring, repositioning and managing retail real estate assets that serve as daily-need destinations for consumers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Kimco Realty Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record small shop occupancy of 92.9% and matched all-time high portfolio occupancy of 96.4%, demonstrating robust demand despite absorbing Painted Tree bankruptcy impacts. Launched 'One Kimco' operating model, transitioning from a regional to a nationally aligned functional structure to enhance negotiating leverage and accelerate lease execution. Completed the first full-cycle monetization of a ground-up multifamily development at Pentagon Centre, validating the embedded value of the mixed-use densification program. Executed a capital recycling strategy focused on harvesting value from low-growth assets, such as Costco ground leases, to fund higher-growth grocery-anchored acquisitions. Reported 19 consecutive quarters of double-digit new leasing spreads, supported by limited new supply and retailers competing for high-quality open-air locations. Integrated AI and unified data platforms to automate workflows and build durable operating leverage, yielding an estimated 5x return on initial transformation investments. Maintained a strong investment-grade balance sheet (A-/A3) with $2.7 billion in liquidity, providing the flexibility to remain opportunistic in a competitive transaction market. Raised the midpoint of full-year FFO guidance and increased the common dividend by 12%, reflecting confidence in rising taxable income and durable cash flows. Projecting $33 million in cash rent from the SNO pipeline in 2026, a 16% increase over initial estimates due to accelerated construction and leasing coordination. Anticipates further monetization of mixed-use assets, with the Witmer residential tower likely the next candidate for crystallization to fund future growth. Guidance assumes continued improvement in credit trends, with the credit loss assumption tightened to 55-75 basis points for the remainder of the year. Expects the new operating model to drive margin expansion and improved same-site performance as benefits from national scale and functional alignment build over time. Issued $600 million in 3.5% exchangeable senior notes to diversify capital sources and satisfy upcoming 2026 debt maturities at an attractive coupon. Absorbed a 16 basis point impact on total occupancy from Painted Tree bankruptcy lease rejections during the second quarter. Utilized 1031 exchanges to acquire Pompano Marketplace and Sunshine Plaza in Florida, converting structured investments into long-term equity ownership. Recorded a $3.8 million charge expected in the third quarter related to the repurchase of Class N convertible preferred stock. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects the unified national structure to significantly increase negotiating leverage, particularly during the renewal process for large national accounts. The model allows for package deals across multiple sites, accelerating execution and pulling forward rent commencement dates in the SNO pipeline. Selling low-growth Costco ground leases at aggressive cap rates allows Kimco to trade sub-6% unlevered IRRs for north of 9% IRRs in grocery-anchored centers. The strategy prioritizes long-term CAGR and cash flow growth over immediate year-one AFFO accretion, though spreads remain positive at 50-100 basis points. Traffic remains positive across all demographics, with high-income segments leading and low-income segments showing resilience with 3.5% spending growth. Management noted that low unemployment and stable job turnover are currently offsetting headwinds from higher interest rates and inflation. Kimco views its 14,000 entitlements as a form of currency, with the flexibility to self-develop, partner, or monetize based on the cost of capital and market cycle. The company utilizes a capital-light preferred equity structure for developments to avoid earnings drag during the 2-3 year construction phase.

– Strong Leasing Gains Drove Occupancy to All-time Highs – – Increases Common Dividend 12% Year-over-Year – – Raises 2026 Outlook – JERICHO, N.Y., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Kimco Realty® (NYSE: KIM), a real estate investment trust (“REIT”) and leading owner and operator of high-quality, open-air, grocery-anchored shopping centers and mixed-use properties in the United States, today reported results for the second quarter ended June 30, 2026. For the three months ended June 30, 2026 and 2025, Net income available to the company’s common shareholders (“Net income”) per diluted share was $0.22 and $0.23, respectively. Second Quarter Highlights Delivered 4.5% growth in Funds From Operations* ("FFO") per diluted share to $0.46. Achieved pro-rata cash rent spreads of 40.4% on comparable new leases. Matched all-time high portfolio occupancy of 96.4% and achieved a record small-shop occupancy level of 92.9%. Grew same property net operating income* ("NOI") 3.5% year-over-year. Completed the sale of The Milton, a 253-unit multifamily building at Pentagon Centre, for $142.3 million. Issued $600.0 million 3.50% exchangeable senior notes due 2031. Raised the quarterly cash dividend on common shares by 12.0% to $0.28 per share. "Our operating and financial performance reflect the strength of our platform and the team's disciplined execution throughout the quarter," stated Kimco CEO Conor Flynn. "The combination of limited new shopping center supply, continued consumer demand for the everyday essentials, and strong shopper traffic across our open-air portfolio supported robust leasing activity. Together with our strategic capital allocation activities, we further enhanced our financial flexibility and strengthened our balance sheet. Given our strong cash flow growth this year from the strength of operations, we're raising our common cash dividend by 12%, a quarter ahead of our typical schedule, a reflection of both our higher operating income and confidence in Kimco's long-term outlook. We remain committed to executing our strategy and creating long-term value for our shareholders.” Financial Results Net income for the second quarter of 2026 was $145.8 million, or $0.22 per diluted share, compared to $155.4 million, or $0.23 per diluted share, for the second quarter of 2025. The year-over-year change reflects growth in consolidated revenues from rental properties, net, of $25.5 million and increased equity in income of joint ventures, net, of $8.5 million, offset by lower gains on sales of properties of $37.6 million. FFO was $309.2 million, or $0.46 per diluted share, for the second quarter of 2026, compared to $297.6 million, or $0.44 per diluted share, for the second quarter of 2025. Gains on sales of properties, net of impairments, is excluded from the company's calculation of FFO. Operating Results Executed 461 leases totaling 2.5 million square feet during the second quarter, generating blended pro-rata cash rent spreads of 13.1% on comparable spaces, including 40.4% on new leases, 6.1% on renewals and 8.0% on options. Pro-rata leased occupancy increased 10 basis points sequentially and 100 basis points year-over-year to 96.4%. Small shop occupancy increased 40 basis points sequentially and 70 basis points year-over-year to a record 92.9%. Maintained strong pro-rata anchor occupancy, which increased 110 basis points year-over-year to 97.8%. Generated 3.5% growth in same property NOI during the second quarter compared to the same period a year ago, driven by a 2.6% increase in minimum rents. Credit loss, as a percentage of total pro-rata rental revenues, was 57 basis points during the second quarter. The spread between the company's pro-rata leased versus economic occupancy rates was 400 basis points, a 10 basis point sequential compression, representing $75 million in future rents from signed leases that have not yet commenced. Transactional Activities Sold The Milton, a 253-unit multifamily building at the company's Pentagon Centre mixed-use property in Pentagon City, Virginia, for $142.3 million, marking Kimco's first multifamily asset disposition. The cap rate on this transaction was approximately 4.9%, and the company's pro-rata share of the sales price was $78.2 million. Sold Shoppes at Bears Path, a shopping center totaling 44,000 square feet in Tucson, Arizona, for $7.8 million. The proceeds are intended to be utilized in a future 1031 exchange. Subsequent to quarter end: Completed the sale of four Costco-anchored assets comprising two entire shopping center properties and two ground lease parcels, for aggregate proceeds of approximately $127 million. The sale reflects Kimco's continued focus on optimizing portfolio growth by recycling capital from assets with lower contractual rent growth into higher-yielding investments. Proceeds are intended to be used for future 1031 exchange investments. Acquired two centers utilizing 1031 exchange proceeds: Through Kimco’s Structured Investment Program, received repayments of $44 million, inclusive of the Pompano Marketplace repayment, partially offset by $19 million of new capital. The company continues to secure rights of first offer or refusal on the underlying shopping centers. Capital Market Activities Issued $600.0 million aggregate principal amount of 3.50% exchangeable senior notes due 2031. In connection with the offering, the company repurchased approximately 4.1 million shares of common stock totaling $104.7 million at a price of $25.38 per share. Ended the quarter with $2.7 billion of immediate liquidity, including $700 million of cash, cash equivalents and restricted cash, and full availability under the company's $2.0 billion unsecured revolving credit facility. Subsequent to quarter end, repurchased 516,750 shares of the company's 7.25% Class N Convertible Preferred Stock for $33.3 million at a price of $64.50 per share. The company incurred an approximately $3.8 million charge in conjunction with the repurchase that will be recognized in both Net income available to common stockholders and FFO during the third quarter of 2026. Dividend Declarations The board of directors declared a cash dividend of $0.28 per common share (equivalent to $1.12 per annum), representing a 12.0% increase over the quarterly dividend in the corresponding period of the prior year. The quarterly cash dividend on common shares will be payable on September 17, 2026, to shareholders of record on September 4, 2026. The board of directors also declared quarterly dividends with respect to each of the company’s Class L, Class M, and Class N series of preferred shares. These dividends on the preferred shares will be paid on October 15, 2026 to shareholders of record on October 1, 2026. 2026 Full Year Outlook The company has raised its 2026 outlook for Net income and FFO per diluted share as follows: The company’s full year outlook is based on the following assumptions (pro-rata share unless otherwise stated; dollars in millions): Includes deferred rents, above and below market rents, and straight-line reimbursement income, and excludes debt mark to market amortization. Includes costs associated with a mixed-use development project, The Chester at Westlake Shopping Center. Includes tenant improvements and allowances, capitalized external leasing commissions and capitalized building improvements. Year-to-date transactions updated to include material activity through July 31, 2026 would reflect approximately $109 million of acquisitions at a 5.7% weighted average cap rate; $261 million of dispositions at a 5.1% weighted average cap rate; and $8 million of structured investments, net of repayments, at a 9.6% weighted average yield. Conference Call Information When: 8:30 AM ET, August 4, 2026 Live Webcast: 2Q26 Kimco Realty Earnings Conference Call or on Kimco Realty’s website investors.kimcorealty.com Dial #: 1-833-461-5787 (International: +1 585-542-9983). Meeting ID: 110761621 Audio from the conference will be available on Kimco Realty’s investor relations website until November 4, 2026. About Kimco Realty® Kimco Realty® (NYSE: KIM) is a real estate investment trust (REIT) and leading owner and operator of high-quality, open-air, grocery-anchored shopping centers and mixed-use properties in the United States. The company’s portfolio is strategically concentrated in the first-ring suburbs of the top major metropolitan markets, including high-barrier-to-entry coastal markets and Sun Belt cities. Its tenant mix is focused on essential, necessity-based goods and services that drive multiple shopping trips per week. Publicly traded on the NYSE since 1991 and included in the S&P 500 Index, the company has specialized in shopping center ownership, management, acquisitions, and value-enhancing redevelopment activities for more than 65 years. With a proven commitment to corporate responsibility, Kimco Realty is a recognized industry leader in this area. As of June 30, 2026, the company owned interests in 564 U.S. shopping centers and mixed-use assets comprising 100 million square feet of gross leasable space. The company announces material information to its investors using the company’s investor relations website (investors.kimcorealty.com), SEC filings, press releases, public conference calls, and webcasts. The company also uses social media to communicate with its investors and the public, and the information the company posts on social media may be deemed material information. Therefore, the company encourages investors, the media, and others interested in the company to review the information that it posts on the social media channels, including Facebook (www.facebook.com/kimcorealty), and LinkedIn (www.linkedin.com/company/kimco-realty-corporation). The list of social media channels that the company uses may be updated on its investor relations website from time to time. Safe Harbor Statement This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, are generally identifiable by use of the words “believe,” “expect,” “intend,” “commit,” “anticipate,” “estimate,” “project,” “will,” “target,” “plan,” “forecast” or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which, in some cases, are beyond the Company’s control and could materially affect actual results, performance or achievements. Factors which may cause actual results to differ materially from current expectations include, but are not limited to, (i) financial disruption, changes in trade policies and tariffs, geopolitical challenges or economic downturn, including general adverse economic and local real estate conditions, (ii) the impact of competition, including the availability of acquisition or development opportunities and the costs associated with purchasing and maintaining assets, (iii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iv) the reduction in the Company’s income in the event of multiple lease terminations by tenants or a failure of multiple tenants to occupy their premises in a shopping center, (v) the potential impact of e-commerce and other changes in consumer buying practices, and changing trends in the retail industry and perceptions by retailers or shoppers, including safety and convenience, (vi) the availability of suitable acquisition, disposition, development, redevelopment and merger opportunities, and the costs associated with purchasing and maintaining assets and risks related to acquisitions not performing in accordance with our expectations, (vii) the Company’s ability to raise capital by selling its assets, (viii) disruptions and increases in operating costs due to inflation and supply chain disruptions, (ix) risks associated with the development of mixed-use commercial properties, including risks associated with the development, and ownership of non-retail real estate, (x) changes in governmental laws and regulations, including, but not limited to, changes in data privacy, environmental (including climate change), safety and health laws, and management’s ability to estimate the impact of such changes, (xi) valuation and risks related to the Company’s joint venture and preferred equity investments and other investments, (xii) collectability of mortgage and other financing receivables, (xiii) impairment charges, (xiv) criminal cybersecurity attack disruptions, data loss or other security incidents and breaches, (xv) risks related to artificial intelligence, (xvi) impact of natural disasters and weather and climate-related events, (xvii) pandemics or other health crises, (xviii) our ability to attract, retain and motivate key personnel, (xix) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (xx) the level and volatility of interest rates and management’s ability to estimate the impact thereof, (xxi) changes in the dividend policy for the Company’s common and preferred stock and the Company’s ability to pay dividends at current levels, (xxii) unanticipated changes in the Company’s intention or ability to prepay certain debt prior to maturity and/or maintain certain debt until maturity, (xxiii) the Company’s ability to continue to maintain its status as a REIT for U.S. federal income tax purposes and potential risks and uncertainties in connection with its UPREIT structure, and (xxiv) other risks and uncertainties identified under Item 1A, “Risk Factors” and elsewhere in our most recent Annual Report on Form 10-K and in the Company’s other filings with the Securities and Exchange Commission (“SEC”). Accordingly, there is no assurance that the Company’s expectations will be realized. The Company disclaims any intention or obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to refer to any further disclosures the Company makes or related subjects in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K that the Company files with the SEC. Certain forward-looking and other statements in this press release, or other locations, such as our corporate website, contain various corporate responsibility standards and frameworks (including standards for the measurement of underlying data) and the interests of various stakeholders. As such, such information may not be, and should not be interpreted as necessarily being, “material” under the federal securities laws for SEC reporting purposes, even if we use the word “material” or “materiality” in this document. Corporate Responsibility information is also often reliant on third-party information or methodologies that are subject to evolving expectations and best practices, and our approach to and discussion of these matters may continue to evolve as well. For example, our disclosures may change due to revisions in framework requirements, availability of information, changes in our business or applicable governmental policies, or other factors, some of which may be beyond our control. CONTACT:David F. BujnickiSenior Vice President, Investor Relations and StrategyKimco Realty Corporation(833) [email protected] *Reconciliations of non-GAAP measures to the most directly comparable GAAP measure are provided in the tables accompanying this press release.

Kimco Realty Corporation KIM is slated to report second-quarter 2026 results on Aug. 4, before the opening bell. The company’s quarterly results are likely to display year-over-year growth in revenues and funds from operations (FFO) per share. In the last reported quarter, this Jericho, NY-based retail real estate investment trust (REIT) reported FFO per share of 46 cents, which surpassed the Zacks Consensus Estimate by a cent. Results were supported by steady rent growth and continued demand for Kimco’s open-air, grocery-anchored centers. Over the preceding four quarters, Kimco’s FFO per share surpassed the Zacks Consensus Estimate on three occasions and met in the remaining period, the average beat being 1.72%. This is depicted in the graph below: Kimco Realty Corporation price-eps-surprise | Kimco Realty Corporation Quote In this article, we will dive deep into the U.S. retail real estate market environment and the company's fundamentals and analyze the factors that may have contributed to its second-quarter 2026 performance. The second-quarter 2026 U.S. retail market showed signs of stabilization, as shopping-center demand returned to positive territory and vacancy remained near historically low levels. Limited new construction continued to support rent growth, while resilient consumer spending favored grocery, discount and other value-oriented retailers. However, uneven regional trends and rising pressure on lower- and middle-income households kept the operating backdrop mixed. Per the Cushman & Wakefield report, net absorption reached 708,000 square feet, while national vacancy remained broadly stable at 6%, up only 3 basis points sequentially and still below the historical average of 7.4%. Limited construction continued to support market fundamentals, with just 2.3 million square feet delivered during the quarter and the development pipeline accounting for less than 0.3% of existing inventory. Asking rents increased 2.2% year over year to $25.65 per square foot, supported by tight availability and muted new supply. The West led demand growth with 1.3 million square feet of positive absorption and was the only region to record a decline in vacancy. In contrast, the South posted a slight rise in vacancy as earlier population growth encouraged new development, creating temporary lease-up pressure in markets such as Atlanta, Houston, Washington and Dallas-Fort Worth. Rents in the South advanced 3.3% year over year, the strongest growth among all regions. Consumer spending remained resilient despite higher energy costs. Retail sales rose 6.9% year over year, or 5.4%, excluding gasoline stations, while unemployment stayed low at 4.2%. However, inflation outpaced wage growth in April and May, increasing pressure on lower- and middle-income households. This widening spending divide is likely to favor grocery, discount, value and health-and-wellness retailers over discretionary categories. Kimco’s second-quarter performance is likely to have witnessed continued strength in its grocery-anchored, necessity-based portfolio, supported by limited new retail supply, high tenant retention and healthy leasing demand. Management entered the second quarter with a record $77 million signed-but-not-open pipeline and indicated that leasing activity remained on pace with the prior year. Rent commencements scheduled from the second quarter onward should begin lifting economic occupancy, minimum rents and same-property NOI, while positive mark-to-market spreads and strong small-shop demand may provide additional support. Management expects same-site NOI growth to accelerate sequentially after the first quarter’s 1.7% increase. However, second quarter comparisons may be affected by the absence of the first quarter’s roughly $7 million accelerated below-market rent benefit and seasonally higher percentage-rent income. Occupancy could also remain constrained by recent bankruptcies, tenant openings that have not yet commenced rent and redevelopment-related downtime. Higher refinancing costs remain a headwind, although Kimco’s strong liquidity and improved leverage should limit near-term pressure. The company’s top line is expected to have improved due to the above tailwinds. The Zacks Consensus Estimate for KIM’s quarterly revenues stands at $545 million, implying 3.8% growth from the prior-year reported number. Our estimate for net revenues from rental properties stands at $540 million, indicating a 3.6% increase year over year. However, we expect KIM’s leased occupancy to decrease 40 basis points sequentially to 95.9% in the to-be-reported quarter. We estimate a year-over-year increase of 3.4% in its second-quarter interest expenses. Before the second-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly FFO per share has remained unchanged at 46 cents for more than three months. It implies a rise of 4.6% year over year. Our proven model predicts a surprise in terms of FFO per share for Kimco this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here. Kimco currently has an Earnings ESP of +0.63% and a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are two other stocks from the retail REIT sector — Regency Centers REG and Simon Property Group SPG — that you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter. Regency Centers, slated to release quarterly numbers on July 29, has an Earnings ESP of +0.68% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Simon Property Group, scheduled to report quarterly numbers on Aug. 10, has an Earnings ESP of +1.21% and carries a Zacks Rank of 3 at present. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kimco Realty Corporation (KIM) : Free Stock Analysis Report Simon Property Group, Inc. (SPG) : Free Stock Analysis Report Regency Centers Corporation (REG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Federal Realty Investment Trust FRT, a leading real estate investment trust (REIT) focused on retail properties, is set to report its second-quarter 2026 results on July 31, before the market opens. In anticipation of the announcement, industry analysts and investors are eager to assess the company's performance and prospects in the current economic climate. In the last reported quarter, this retail REIT’s funds from operations (FFO) per share of $1.88 surpassed the Zacks Consensus Estimate of $1.82. Results were supported by strong leasing momentum and higher comparable POI. Over the last four quarters, Federal Realty beat estimates on three occasions and missed on the other, the average beat being 3.30%. The graph below depicts the surprise history of the company: Federal Realty Investment Trust price-eps-surprise | Federal Realty Investment Trust Quote In this article, we will dive deep into the U.S. retail real estate market environment and the company's fundamentals and analyze the factors that may have contributed to its second-quarter 2026 performance. The second-quarter 2026 U.S. retail market showed signs of stabilization, as shopping-center demand returned to positive territory and vacancy remained near historically low levels. Limited new construction continued to support rent growth, while resilient consumer spending favored grocery, discount and other value-oriented retailers. However, uneven regional trends and rising pressure on lower- and middle-income households kept the operating backdrop mixed. Per the Cushman & Wakefield report, net absorption reached 708,000 square feet, while national vacancy remained broadly stable at 6%, up only 3 basis points sequentially and still below the historical average of 7.4%. Limited construction continued to support market fundamentals, with just 2.3 million square feet delivered during the quarter and the development pipeline accounting for less than 0.3% of existing inventory. Asking rents increased 2.2% year over year to $25.65 per square foot, supported by tight availability and muted new supply. The West led demand growth with 1.3 million square feet of positive absorption and was the only region to record a decline in vacancy. In contrast, the South posted a slight rise in vacancy as earlier population growth encouraged new development, creating temporary lease-up pressure in markets such as Atlanta, Houston, Washington and Dallas-Fort Worth. Rents in the South advanced 3.3% year over year, the strongest growth among all regions. Consumer spending remained resilient despite higher energy costs. Retail sales rose 6.9% year over year, or 5.4%, excluding gasoline stations, while unemployment stayed low at 4.2%. However, inflation outpaced wage growth in April and May, increasing pressure on lower- and middle-income households. This widening spending divide is likely to favor grocery, discount, value and health-and-wellness retailers over discretionary categories. FRT is expected to deliver another resilient quarter, supported by strong leasing momentum, premium demographics and demand for its grocery-anchored and mixed-use assets. Management entered the second quarter with the portfolio 96.1% leased and 93.8% occupied, while executed-but-not-yet-open leases represented roughly $36 million of incremental rent through 2027. Record first-quarter leasing spreads, a 1.7 million-square-foot negotiation pipeline and continued strength among both value-oriented and aspirational retailers should help sustain rental growth. Near-term growth is nevertheless likely to moderate from the first-quarter. Management guided second-quarter FFO of $1.83-$1.86 per share and expects comparable property growth to ease toward roughly 2%, reflecting occupancy remaining in the mid-to-upper 93% range, an approximately $0.01 refinancing drag and initial losses from The Blayr residential lease-up. The Zacks Consensus Estimate for quarterly revenues is pegged at $333.5 million, which indicates a 7.1% increase from the year-ago period. The consensus mark for rental revenues stands at $320 million, which suggests a rise from the year-ago period’s $302.5 million. Rental income from minimum rents — commercial — is pegged at $221.7 million, up from $208.6 million in the year-ago period. Rental income from cost reimbursements is projected at $62.5 million, up from $59.3 million in the prior-year period. Our estimate places FRT's leased occupancy rate at 96.5%, up 40 basis points sequentially, while the rent per square foot is projected to grow 2.9% year over year. Interest expenses are anticipated to increase 14.9% year over year in the company's second-quarter 2026 earnings release. Federal Realty’s activities during the soon-to-be-reported quarter were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for second-quarter FFO per share has remained unchanged at $1.85 over the past two months. It also suggests a 3.1% decrease year over year. Our proven model does not conclusively predict a surprise in terms of FFO per share for Federal Realty this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here. Federal Realty has an Earnings ESP of -0.30% and currently carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Here are two stocks from the retail REIT sector — Kimco Realty KIM and Simon Property Group SPG — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter. Kimco Realty, slated to release quarterly numbers on Aug. 4, has an Earnings ESP of +0.63% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Simon Property Group, scheduled to report quarterly numbers on Aug. 10, has an Earnings ESP of +1.21% and carries a Zacks Rank of 3 at present. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Federal Realty Investment Trust (FRT) : Free Stock Analysis Report Simon Property Group, Inc. (SPG) : Free Stock Analysis Report Kimco Realty Corporation (KIM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research