Shopping center REITs are well positioned to execute an arbitrage that swiftly increases earnings and value per share. There is a lot in that sentence so let’s unpack it. We shall begin with some background detail on the mechanics of arbitrage and how it relates to REITs in the present. We will then follow with examples of the REITs that are currently executing this arbitrage. Arbitrage mechanics An arbitrage, in the purest sense, is when the same asset is trading at different prices on different markets. M ...

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]

Jericho, New York-based Kimco Realty Corporation (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 U.S. Valued at $14 billion by market cap, 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 rapidly expanding Sun Belt cities. Shares of this leading grocery-anchored sh ...

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]

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