Kimco Q2 FFO Meet Estimates as Leasing Gains Lift Occupancy

KIM's Rental Revenues Rise, Costs Remain Mixed

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.

KIM's Leasing Execution Drives Rent Spreads

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 basis points (bps) year over year and 40 bps sequentially to a record 92.9%. Pro-rata anchor occupancy improved 110 basis points from the prior-year period to 97.8%. The pro-rata leased versus economic occupancy rates spread was 400 basis points, representing $75 million in future rents from signed leases that have not yet commenced.

KIM Recycles Capital Through Asset Sales

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, KIM 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.

KIM Strengthens Liquidity and Raises Dividend

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.

The board also raised the quarterly common dividend 12% year over year to 28 cents per share. The dividend will be paid on Oct. 15, 2026, to shareholders of record on Oct, 1, 2026.

KIM Raises Its 2026 FFO Outlook

KIM increased its 2026 FFO guidance to $1.83-$1.84 per share from $1.81-$1.84. The Zacks Consensus Estimate of $1.83 lies within the guidance.

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.

KIM’s Zacks Rank

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Retail REITs

Federal Realty Investment Trust FRT reported second-quarter 2026 core FFO per share of $1.88, up 6.8% year over year and above the Zacks Consensus Estimate of $1.85.

Total revenues increased 7.8% year over year to $335.7 million and surpassed the consensus mark of $333.5 million by 0.66%. The company’s results reflected higher rental income, record comparable leasing volume and growth in adjusted comparable property operating income. FRT carries a Zacks Rank #3 (Hold).

Regency Centers Corporation REG reported second-quarter 2026 NAREIT FFO per share of $1.21, beating the Zacks Consensus Estimate of $1.20 by 0.8%. The metric increased 4.3% from the year-ago quarter.

Total revenues of $413.5 million rose 8.6% year over year and topped the consensus mark of $405 million by 2.1%. The company's results reflected solid leasing demand, with same-property NOI advancing 3.8%. REG carries a Zacks Rank #3.

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.

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