Core Viewpoint - Shopping center REITs are positioned to exploit a partial arbitrage opportunity between private and public real estate markets, which can enhance earnings and shareholder value [1][5]. Group 1: Arbitrage Mechanics - Arbitrage occurs when the same asset trades at different prices across markets, leading to profit opportunities [2]. - Current real estate markets exhibit a partial arbitrage, with private real estate values being 10%-40% higher than public market prices [3]. - The valuation gap between private and public markets has persisted for about two years, allowing REITs to capitalize on this discrepancy [5]. Group 2: REIT Strategies - REITs can buy back their stock and sell properties at higher private market prices, effectively closing the valuation gap [6][11]. - The implied cap rate of a REIT can be calculated by dividing its forward net operating income (NOI) by its enterprise value, which can then be compared to market cap rates for similar properties [7]. - For example, if a shopping center REIT has an implied cap rate of 8% while similar properties sell at 6%, the REIT can sell assets and use the proceeds to buy back stock, resulting in increased NOI per share [8][10]. Group 3: Case Studies - Kite Realty (KRG) plans to sell $500 million in assets to repurchase shares, highlighting the strategy of redeploying capital for shareholder value [11]. - Brixmor (BRX) is also considering buybacks as its share price remains below NAV, with a recent 7% increase in its annual dividend [23]. - CTO Realty Growth (CTO) has already begun executing buybacks, having repurchased $9.3 million in common stock in 3Q25 [24]. Group 4: Market Conditions - The shopping center sector is experiencing a significant disconnect between positive fundamentals and negative stock pricing, leading to mispricing opportunities [30][31]. - Many shopping center REITs are trading at implied cap rates of 7.5%-9%, while high-quality assets could be valued closer to 6% cap rates [32].

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Kimco Realty Corp. (NYSE:KIM) is a real estate investment trust that owns and operates grocery-anchored shopping centers and mixed-use properties in the U.S. The 52-week range of Kimco Realty stock price was $17.93 to $25.83. Kimco Realty's dividend yield is 5.03%. It paid $1.04 per share in dividends during the last 12 months. Don't Miss: The Latest On Kimco Realty The company on Oct. 30 announced its ...

Core Points - Kimco Realty Corp. has established an "at the market" continuous offering program to sell up to $750 million of its common stock through various sales agents [1] - The company has terminated its previous equity sales agreement to facilitate this new offering [1] - The proceeds from the offering and any forward sale agreements will be used for general corporate purposes, including acquisitions, development costs, and debt reduction [3] Offering Details - The continuous offering will allow sales of common stock through negotiated transactions and market offerings, including sales on the New York Stock Exchange [1] - The company may enter into forward sale agreements with multiple financial institutions to hedge these offerings [2] - The company does not expect to receive initial proceeds from shares sold under forward sale agreements until settlement occurs [2] Share Repurchase Program - The Board of Directors has approved a new share repurchase program for up to $750 million, replacing the previous program [6] - Repurchases can be made through various methods, including open market purchases and privately negotiated transactions [7] - The timing and amount of repurchases will depend on market conditions and other factors [7] Company Overview - Kimco Realty Corp. is a leading real estate investment trust (REIT) focused on grocery-anchored shopping centers and mixed-use properties in the U.S. [9] - As of September 30, 2025, the company owned interests in 564 shopping centers and mixed-use assets, totaling 100 million square feet of gross leasable space [9]

Core Viewpoint - Kimco Realty Corporation (KIM) is a leading grocery-anchored shopping center REIT with a market cap of $14 billion, focusing on high-quality properties in major metropolitan areas and rapidly growing Sun Belt cities [1]. Performance Summary - KIM shares have underperformed the broader market, declining 14% over the past year, while the S&P 500 Index increased by nearly 17.7% [2]. - In 2025, KIM's stock fell 11.8%, contrasting with the SPX's 16.3% rise year-to-date [2]. - Compared to the Real Estate Select Sector SPDR Fund (XLRE), which declined about 7% over the past year, KIM's performance remains notably weaker [3]. Financial Results - On October 30, KIM reported Q3 results, with FFO of $0.44 per share, exceeding analyst expectations of $0.43 per share [4]. - The company's revenue reached $535.9 million, surpassing Wall Street forecasts of $524.3 million [4]. - KIM anticipates full-year FFO in the range of $1.75 to $1.76 per share [4]. Analyst Expectations - For the current fiscal year ending in December, analysts project KIM's FFO per share to grow 6.7% to $1.76 on a diluted basis [5]. - KIM has consistently beaten or matched consensus estimates in the last four quarters [5]. - Among 25 analysts covering KIM, the consensus rating is a "Moderate Buy," with nine "Strong Buy" ratings and 16 "Holds" [5]. Price Targets - Scotiabank analyst Greg McGinniss maintained a "Hold" rating on KIM with a price target of $23, indicating a potential upside of 11.3% from current levels [6]. - The mean price target of $24.61 suggests a 19.1% premium to KIM's current price [6]. - The highest price target of $30 implies an ambitious upside potential of 45.2% [6].

Core Insights - Kimco Realty Corp. reported Q3 2025 FFO per share of 44 cents, exceeding the Zacks Consensus Estimate of 43 cents, reflecting a 2.3% year-over-year growth [1][8] - The company achieved revenues of $535.9 million, surpassing the consensus mark of $524.3 million, with a year-over-year increase of 5.6% [2][8] - Kimco raised its quarterly dividend by 4% and updated its 2025 FFO per share guidance to a range of $1.75-$1.76 [8][10] Financial Performance - Same-property net operating income (NOI) increased by 1.9% year-over-year, supported by a 2.1% rise in minimum rents [4] - Interest expenses rose by 10.6% year-over-year to $84.3 million [4] - Pro-rata leased occupancy at the end of Q3 was 95.7%, up 30 basis points sequentially [3] Portfolio Activity - Kimco executed 427 leases totaling 2.3 million square feet during the quarter [4] - The company acquired an 85% ownership interest in Tanasbourne Village for $65.9 million and sold two shopping centers for a total of $46.2 million [5] - The company also sold a 10-acre parcel of land for $5.3 million [5] Balance Sheet Position - Kimco exited Q3 2025 with over $2.1 billion in immediate liquidity, including full availability on a $2.0 billion unsecured revolving credit facility [6] - The net-debt-to-EBITDA ratio was 5.6X, consistent with the prior-year quarter [6] Dividend Update - The board declared a quarterly cash dividend of 26 cents per share, reflecting a 4% increase from the previous payout [9]

Revenue and Income - Revenues from rental properties, net increased by $28.2 million for the three months ended September 30, 2025, primarily due to a net increase in revenues from tenants of $14.4 million and properties acquired during 2025 and 2024 [206]. - Net income available to the Company's common shareholders was $130.2 million for the three months ended September 30, 2025, compared to $128.0 million for the same period in 2024, with diluted earnings per share remaining at $0.19 [203]. - For the nine months ended September 30, 2025, net income available to the Company's common shareholders was $410.8 million, up from $220.9 million in the same period in 2024, with diluted earnings per share increasing from $0.32 to $0.60 [204]. - Revenues from rental properties increased by $85.3 million for the nine months ended September 30, 2025, compared to the same period in 2024, driven by a net increase in tenant revenues of $46.3 million and revenues from acquired properties of $33.3 million [208]. - FFO available to the Company's common shareholders for the nine months ended September 30, 2025, was $899.8 million, an increase from $825.2 million in 2024 [279]. Property Acquisitions and Portfolio - The Company acquired 56 open-air shopping centers through the RPT Merger, adding 13.3 million square feet of gross leasable area to its portfolio [196]. - The Company had interests in 564 U.S. shopping center properties, totaling 100.4 million square feet of gross leasable area as of September 30, 2025 [194]. - The Company expended $144.4 million for the acquisition/consolidation of operating real estate properties during the nine months ended September 30, 2025 [237]. - The Company anticipates spending between $25.0 million to $75.0 million on potential acquisitions for the remainder of 2025 [237]. Operating Expenses and Financial Metrics - Operating expenses for the three months ended September 30, 2025, included real estate taxes of $67.4 million, an increase of $2.4 million compared to the same period in 2024 [200]. - Real estate taxes rose by $9.3 million for the nine months ended September 30, 2025, primarily due to an increase of $2.7 million from properties acquired during 2025 and 2024 [209]. - Operating and maintenance expenses increased by $10.8 million for the nine months ended September 30, 2025, mainly due to a $6.3 million rise in repairs and maintenance expenses [211]. - General and administrative expenses decreased by $6.8 million for the nine months ended September 30, 2025, primarily due to a $5.5 million reduction in employee-related benefit expenses [213]. - The Company maintained strong debt metrics with an A- rating for its senior unsecured debt and a BBB rating for its preferred stock [195]. Gains and Dispositions - The Company reported a gain on the sale of properties of $3.7 million for the three months ended September 30, 2025, compared to $551,000 in the same period in 2024 [200]. - The Company disposed of properties for an aggregate sales price of $71.6 million during the nine months ended September 30, 2025, resulting in gains of $43.5 million [219]. Cash Flow and Financing Activities - Net cash flow provided by operating activities was $861.6 million for the nine months ended September 30, 2025, an increase of $95.5 million from $766.1 million in 2024 [234]. - Net cash flow used for financing activities was $899.6 million for the nine months ended September 30, 2025, compared to $667.9 million in the same period in 2024, reflecting increased financing activity [240]. - The Company issued $500.0 million in senior unsecured notes in June 2025, maturing in February 2036, with an interest rate of 5.30% per annum [255]. - The Company has a $2.0 billion Credit Facility scheduled to expire in March 2027, which can be increased to $2.75 billion through an accordion feature [257]. Debt and Interest Rate Management - As of September 30, 2025, the Company had consolidated floating rate debt totaling $52.9 million and is actively pursuing borrowing opportunities with various financial institutions [241]. - The Company maintains a consolidated indebtedness to total assets ratio of 37% as of September 30, 2025, well below the covenant limit of 60% [252]. - The carrying value of the company's fixed-rate debt obligations as of September 30, 2025, totals $7,718.1 million, with an average interest rate of 3.99% [291]. - The company has 26 interest rate swaps with notional amounts aggregating to $860.0 million as of September 30, 2025, to mitigate interest rate risk on floating-rate debt [290]. - If short-term interest rates were 1.0% higher, interest expense would have increased by $0.4 million for the nine months ended September 30, 2025 [293]. Dividends and Share Repurchases - The Company had cash dividends paid for common and preferred stock of $531.1 million for the nine months ended September 30, 2025, compared to $507.8 million for the same period in 2024 [269]. - The Company declared a quarterly cash dividend of $0.26 per common share, representing a 4.0% increase from the previous dividend of $0.25 [272]. - The Company repurchased 3.0 million shares of common stock for an aggregate purchase price of $58.8 million during the nine months ended September 30, 2025, at a weighted average price of $19.61 per share [251]. Economic Conditions and Regulatory Impact - The Company continues to monitor economic conditions that could adversely impact its business, including elevated inflation and fluctuations in interest rates [197]. - The One Big Beautiful Bill Act enacted on July 4, 2025, included modifications to U.S. tax law affecting REITs, but did not materially impact the Company's financial position [198]. Performance Metrics - Same property NOI is a key performance measure, excluding properties under redevelopment, and assists in providing a consistent performance measure for comparison [281]. - Same property NOI increased by $7.4 million, or 1.9%, for the three months ended September 30, 2025, compared to the same period in 2024, driven by a $7.8 million increase in minimum rent [285]. - For the nine months ended September 30, 2025, same property NOI increased by $33.7 million, or 3.0%, primarily due to a $30.5 million increase in minimum rent [286]. - The company executed 1,203 leases totaling 8.4 million square feet during the nine months ended September 30, 2025, with leasing costs estimated at $107.5 million, or $44.33 per square foot [287]. - As of September 30, 2025, the company has 9,416 leases in its consolidated operating portfolio, with significant lease expirations expected in 2026 (1,078 leases, $140.8 million total annual base rent) and 2027 (1,381 leases, $197.3 million total annual base rent) [289].

Core Insights - Kimco Realty reported revenue of $535.86 million for the quarter ended September 2025, reflecting a year-over-year increase of 5.6% [1] - The earnings per share (EPS) for the quarter was $0.44, significantly higher than the $0.19 reported in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $524.26 million by 2.21%, while the EPS also surpassed the consensus estimate of $0.43 by 2.33% [1] Financial Performance Metrics - The pro-rata portfolio occupancy rate was reported at 95.7%, exceeding the three-analyst average estimate of 94.8% [4] - Management and other fee income was $4.75 million, matching the six-analyst average estimate, with a slight year-over-year decline of 0.2% [4] - Revenues from rental properties, net, amounted to $531.11 million, surpassing the average estimate of $516.05 million based on four analysts, marking a year-over-year increase of 5.6% [4] - The diluted net earnings per share was reported at $0.19, compared to the average estimate of $0.17 from four analysts [4] Stock Performance - Over the past month, shares of Kimco Realty have returned -0.6%, in contrast to the Zacks S&P 500 composite's increase of 3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported funds from operations (FFO) of $0.44 per diluted share, a 2.3% increase from the previous year, driven by a $21 million increase in pro rata net operating income (NOI) [6][21][23] - The company raised its full-year FFO guidance to a range of $1.75-$1.76 per diluted share, reflecting over 6% growth compared to 2024 [23] - Same-site NOI increased by 1.9% for the quarter and 3% year-to-date, aligning with expectations despite some impacts from early recaptures of large anchor spaces [7][23] Business Line Data and Key Metrics Changes - The company completed 427 leases totaling 2.3 million square feet, with a blended leasing spread of 11% year-to-date, indicating strong leasing momentum [9][10] - Pro rata occupancy increased by 30 basis points sequentially to 95.7%, with small shop occupancy reaching a record high of 92.5%, up 70 basis points year-over-year [8][9] Market Data and Key Metrics Changes - The company noted that credit loss did not materially affect same-site NOI growth, tracking at 75 basis points for Q3 [21][22] - The leasing activity was exceptionally strong, with a significant increase in demand across various retail categories, particularly grocery-anchored spaces [10][11] Company Strategy and Development Direction - The company is focusing on further portfolio lease-up and expanding high-return redevelopment projects, with a total development and redevelopment pipeline of approximately $600 million [10][11] - The creation of the Office of Innovation and Transformation aims to drive strategic initiatives and enhance operational efficiencies through technology and data [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the open-air model and sustained demand from retailers, indicating a positive outlook for future growth [6][14] - The company anticipates that the benefits from re-tenanting spaces recaptured earlier in the year will be realized over the next several quarters, contributing to sustained earnings growth [25] Other Important Information - The company has a strong liquidity position with over $2.1 billion available, including $160 million in cash [22] - The board approved a quarterly common stock cash dividend increase of 4% to $0.26 per share [23] Q&A Session Summary Question: What is the current transaction environment and cap rate trends? - Management noted that the transaction environment remains extremely competitive, with a healthy amount of deal flow across the country, but aggressive cap rates are being observed due to high competition [27][29] Question: Can you provide insights on the SNO pipeline and its impact on future growth? - Management indicated that approximately 60% of the current signed but not open (SNO) pipeline is expected to commence in 2026, contributing significantly to NOI growth [34][35] Question: What is the outlook for retailer investments and opportunities? - Management highlighted ongoing discussions with retailers, emphasizing a long-term growth strategy despite short-term market disruptions, with a focus on expanding market share [58][60] Question: How does the company plan to fund its redevelopment pipeline? - The company plans to utilize free cash flow and partner with external entities for funding, ensuring a capital-light approach to its multifamily projects [75][76] Question: What is the company's strategy regarding capital recycling? - Management confirmed a focus on recycling capital from low-growth assets into higher-yielding acquisitions, with a target of $100 million to $150 million in annual dispositions [50][52]

Financial Data and Key Metrics Changes - Funds from operations (FFO) for Q3 2025 reached $300.3 million or $0.44 per diluted share, a 2.3% increase compared to the previous year [29] - Same site net operating income (NOI) increased by 1.9% for the quarter and 3% year to date, aligning with expectations despite some impacts from early recaptures of large anchor spaces [16][31] - The company raised its full year FFO guidance range to $1.75 to $1.76 per diluted share, reflecting over 6% growth compared to 2024 [31] Business Line Data and Key Metrics Changes - Leasing activity was strong, with 427 leases completed totaling 2.3 million square feet, including 144 new deals at a 21% spread and 283 renewals at an 8% spread, resulting in a blended leasing spread of 11% year to date [18] - Pro rata occupancy increased by 30 basis points sequentially to 95.7%, with anchor occupancy at 97% and small shop occupancy reaching a record high of 92.5% [17] Market Data and Key Metrics Changes - The company noted a robust demand for retail space, particularly in grocery-anchored projects, with a total development, redevelopment, and mixed-use pipeline of approximately $600 million [20] - The competitive environment for quality open-air retail has strengthened, with significant capital chasing these assets, leading to aggressive cap rates [24][36] Company Strategy and Development Direction - The company is focused on further portfolio lease-up and expanding high-return redevelopment projects, while maintaining a strong balance sheet [21] - The establishment of the Office of Innovation and Transformation aims to drive strategic initiatives and harness emerging technologies, including AI, to enhance operational efficiency [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the grocery-anchored strategy and the ability to capitalize on strong retailer demand, translating leasing success into sustained earnings growth [22][23] - The company anticipates continued growth in the signed but not open (SNO) pipeline, with approximately 20% of these leases expected to commence in Q4 2025 [32] Other Important Information - The company has a strong liquidity position with over $2.1 billion available, including over $160 million in cash [30] - Credit loss remains low, tracking at 75 basis points for Q3, with a revised assumption range of 75 to 85 basis points for the remainder of the year [31] Q&A Session Summary Question: What is the current transaction environment and cap rate trends? - Management noted that the transaction environment remains extremely competitive, with a healthy amount of deal flow across the country, but aggressive cap rates due to substantial capital chasing these deals [36] Question: Can you elaborate on the signed but not open pipeline and its impact on future NOI growth? - Management indicated that about 60% of the current SNO pipeline is projected to commence in 2026, contributing significantly to future NOI growth [46] Question: What is the outlook for retailer investments and the overall retailer environment? - Management highlighted ongoing conversations with retailers, indicating confidence in growth strategies despite macroeconomic uncertainties, with a focus on expanding market share [95] Question: How does the company plan to fund its redevelopment pipeline? - The company plans to utilize free cash flow and partner with developers for multifamily projects, ensuring a capital-light approach while maintaining a focus on grocery-anchored developments [129] Question: What are the expectations for small shop leasing and potential upside? - Management noted that small shop leasing continues to see upward momentum, with significant demand and limited new supply, indicating potential for further occupancy growth [136]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if ad-blockers are enabled, indicating a need to disable them for proper access [1]