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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Core Insights - Kimco Realty (KIM) reported quarterly funds from operations (FFO) of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, and showing an increase from $0.43 per share a year ago, resulting in an FFO surprise of +2.33% [1] - The company achieved revenues of $535.86 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.21%, compared to $507.63 million in the same quarter last year [2] - Kimco Realty has outperformed consensus FFO estimates three times in the last four quarters, indicating a positive trend in financial performance [2] Financial Performance - The FFO for the recent quarter was $0.44 per share, which is an increase from the previous year's $0.43 per share [1] - Revenues for the quarter were $535.86 million, up from $507.63 million year-over-year [2] - The current consensus FFO estimate for the upcoming quarter is $0.43, with projected revenues of $535.07 million, and for the current fiscal year, the estimate is $1.74 on $2.12 billion in revenues [7] Market Position - Kimco Realty shares have underperformed the market, losing about 8.7% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The Zacks Industry Rank places the REIT and Equity Trust - Retail sector in the top 33% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6]

Company Overview - Kimco Realty has a total capitalization of $23.7 billion and owns 564 properties with 100 million square feet of Gross Leasable Area (GLA) [6] - The company's pro-rata occupancy is 95.7%, up 30 basis points Quarter-over-Quarter (QoQ) [12] - 86% of the company's Annual Base Rent (ABR) comes from grocery-anchored centers [12] Financial Performance and Growth - The company has $71 million in Signed Not Opened (SNO) pipeline [9, 12] - The company anticipates approximately $31 million cash flow impact from SNO in 2025 [9, 56] - Net Effective Rents increased by 9% Trailing Twelve Months (TTM) [9] - The company expects blended yield of 17% on redevelopments with $22 million gross costs and 11% on anchor space repositioning with $57 million gross costs in 2025 [9] - The company anticipates $100 million to $125 million in total net acquisitions in 2025 [9] Portfolio and Leasing - The company's pro-rata rent spread on comparable new leases is 21.1% [12] - Small shop occupancy reached a record high of 92.5% [12] - The company's blended pro-rata rent spread on comparable leases is 11.1% [12] - 47% of Kimco's ABR is derived from small shop tenants (<10K SF) [40]

Financial Performance - Net income for Q3 2025 was $130.2 million, or $0.19 per diluted share, unchanged from Q3 2024[4] - Funds From Operations (FFO) increased to $300.3 million, or $0.44 per diluted share, compared to $287.4 million, or $0.43 per diluted share in Q3 2024[7] - Total revenues for Q3 2025 reached $535.861 million, a 5.4% increase from $507.632 million in Q3 2024[27] - Net income attributable to the company for Q3 2025 was $137.775 million, compared to $135.983 million in Q3 2024, reflecting a 1.3% increase[27] - Revenues from rental properties, net, increased to $531.113 million in Q3 2025, up from $502.875 million in Q3 2024, marking a 5.6% growth[27] - Operating income for Q3 2025 was $187.229 million, an increase from $171.291 million in Q3 2024, representing a growth of 9.3%[27] - The company reported a basic net income per common share of $0.19 for both Q3 2025 and Q3 2024, indicating stability in earnings per share[27] - Net income available to the company's common shareholders for the three months ended September 30, 2025, was $130.239 million, compared to $128.022 million for the same period in 2024, reflecting a year-over-year increase of 1.7%[30] - Funds from operations (FFO) available to the company's common shareholders for the three months ended September 30, 2025, was $300.316 million, up from $287.388 million in the same period of 2024, representing a growth of 3.2%[30] - Same Property Net Operating Income (NOI) for the three months ended September 30, 2025, was $388.597 million, compared to $381.180 million for the same period in 2024, indicating an increase of 1.8%[35] Outlook and Projections - The company raised its 2025 outlook for net income to a range of $0.77 to $0.79 per diluted share, up from the previous range of $0.74 to $0.76[15] - The projected range for net income available to the company's common shareholders for the full year 2025 is between $0.77 and $0.79 per diluted share[37] - The projected FFO available to the company's common shareholders for the full year 2025 is estimated to be between $1.75 and $1.76 per diluted share[37] Occupancy and Leasing - Pro-rata portfolio occupancy grew to 95.7%, a sequential increase of 30 basis points, with small shop occupancy reaching an all-time high of 92.5%[5] - The leased-to-economic occupancy spread expanded to 360 basis points, equating to $71 million in future Annual Base Rent from signed leases[5] - The company signed 427 leases totaling 2.3 million square feet in Q3, with new leases up 21.1% and renewals growing 8.2%[10] Assets and Liabilities - Total assets decreased to $19.880 billion as of September 30, 2025, down from $20.310 billion at the end of 2024, a decline of 2.1%[25] - Total liabilities decreased to $9.195 billion as of September 30, 2025, compared to $9.464 billion at the end of 2024, a reduction of 2.8%[25] - The company’s total stockholders' equity decreased to $10.486 billion as of September 30, 2025, down from $10.653 billion at the end of 2024, a decline of 1.6%[25] Cash and Liquidity - As of September 30, 2025, Kimco had over $2.1 billion in immediate liquidity, including $2.0 billion available on its unsecured revolving credit facility[13] - Cash, cash equivalents, and restricted cash significantly decreased to $160.481 million as of September 30, 2025, from $689.731 million at the end of 2024, a decline of 76.7%[25] Impairment and Charges - The company incurred impairment charges of $440,000 in Q3 2025, compared to $375,000 in Q3 2024, reflecting a 17.3% increase in impairment[27] - Impairment charges for the three months ended September 30, 2025, were $2.340 million, compared to $0.375 million in the same period of 2024, showing a significant increase[30] - The company reported a loss on derivative/marketable securities of $0.646 million for the three months ended September 30, 2025, compared to a gain of $4.849 million in the same period of 2024[30] - The company incurred merger-related charges of $25.2 million for the nine months ended September 30, 2024[33] Development Projects - Kimco acquired the remaining 85% interest in Tanasbourne Village for a pro-rata purchase price of $65.9 million[5] - The company activated The Chester, a 214-unit multi-family project, with a gross cost of $153 million, expected to be completed in 2028[10] Depreciation and Amortization - Depreciation and amortization related to real estate for the three months ended September 30, 2025, was $157.152 million, compared to $143.482 million in the same period of 2024, marking an increase of 9.5%[30]

Core Insights - Kimco Realty reported a strong third quarter for 2025, achieving record occupancy levels and increasing its cash dividend by 4% [1][3][16] - The company raised its full-year outlook for both net income and funds from operations (FFO), reflecting confidence in its growth strategy [3][14] Financial Performance - Net income for Q3 2025 was $130.2 million, or $0.19 per diluted share, consistent with Q3 2024 [4][26] - FFO for Q3 2025 was $300.3 million, or $0.44 per diluted share, up from $287.4 million, or $0.43 per diluted share, in Q3 2024 [6][29] - Consolidated revenues from rental properties increased by $28.2 million, driven by higher minimum rent and other rental income [5] Operational Highlights - Pro-rata portfolio occupancy grew to 95.7%, with small shop occupancy reaching an all-time high of 92.5% [4][11] - The leased-to-economic occupancy spread expanded to 360 basis points, equating to $71 million in future annual base rent from signed leases [4][11] - The company signed 427 leases totaling 2.3 million square feet during Q3, with new leases up 21.1% and renewals growing 8.2% [11] Strategic Developments - Kimco acquired the remaining 85% interest in Tanasbourne Village for a pro-rata purchase price of $65.9 million [4][9] - The company activated a 214-unit multi-family project at Westlake Shopping Center, expected to be completed in 2028 [4][11] - Will Teichman was appointed as Executive Vice President and Chief Innovation and Transformation Officer to drive strategic initiatives [12] Dividend and Outlook - The board declared a cash dividend of $0.26 per common share, reflecting a 4% increase from the previous year [16] - The updated 2025 outlook for net income is projected between $0.77 and $0.79 per diluted share, and FFO is projected between $1.75 and $1.76 per diluted share [14][35]

Core Viewpoint - Kimco Realty Corporation is a prominent U.S. REIT with a market cap of $14.5 billion, focusing on high-quality, grocery-anchored shopping centers and mixed-use properties in major metropolitan and Sun Belt markets [1] Financial Performance - Kimco Realty is expected to report fiscal Q3 2025 FFO of $0.43 per share, consistent with the same quarter last year, and has met or exceeded Wall Street's earnings expectations for the past four quarters [2] - For fiscal 2025, analysts forecast an FFO of $1.74 per share, representing a 5.5% increase from $1.65 per share in fiscal 2024 [3] Stock Performance - KIM stock has decreased by 8.6% over the past 52 weeks, underperforming the S&P 500 Index, which increased by 13.4%, and the Real Estate Select Sector SPDR Fund, which decreased by 5.6% during the same period [4] - Despite reporting better-than-expected Q2 2025 FFO of $0.44 per share, shares fell by 3.1% due to revenue of $525.2 million missing market forecasts and concerns over a slight occupancy dip linked to bankruptcies of JOANN and Party City [5] Analyst Ratings - The consensus view on KIM stock is cautiously optimistic, with a "Moderate Buy" rating from analysts; among 25 analysts, nine suggest a "Strong Buy" and 16 recommend a "Hold" [6] - The average analyst price target for Kimco Realty is $24.60, indicating a potential upside of 15% from current levels [6]

Core Insights - Kimco Realty (NYSE: KIM) has returned to nearly the same valuation level as in August, despite some positive developments that could justify a higher valuation [1] Company Research - Kimco Realty's stock performance has remained stagnant, indicating potential market inefficiencies or investor sentiment that may not fully reflect the company's positive developments [1] Analyst Background - The analyst has over 10 years of experience researching a wide range of companies across various sectors, including commodities and technology, which enhances the depth of analysis provided [2]

Core Viewpoint - Kimco Realty Corporation is positioned as a strong investment opportunity within the shopping center REIT sector, benefiting from a favorable market environment characterized by high demand and limited supply, leading to improved leasing velocity and rental rates [1][29]. Group 1: Market Dynamics - Industrial leasing is experiencing a slowdown, with deal gestation periods extending, while retail leasing remains robust, with Kimco seeing no slowdown in tenant demand [2][3]. - The national vacancy rate for industrial properties is nearly 9%, contrasting with the high occupancy rates in shopping centers, particularly for high-quality spaces [3][4]. - The scarcity of high-quality retail real estate is advantageous for landlords, as there has been minimal new supply since 2010 due to high construction costs relative to rental rates [5][6]. Group 2: Financial Metrics - The average rent per square foot among retail REITs is $20.33, with a net operating income (NOI) margin of approximately 70%, translating to about $14 per foot in NOI [6]. - New leases are being signed at rates between $27 and $30 per foot, indicating a significant increase from existing rents [6][8]. - The anticipated market rent that would support new construction is estimated to be at least $35 per foot, suggesting a gradual upward trend in rental rates over time [8]. Group 3: Kimco's Performance - Kimco has successfully filled vacancies left by bankrupt tenants like Party City, JOANN, and Big Lots, achieving large double-digit rent spreads on re-leased spaces [15][16]. - The company has a signed but not open pipeline worth $66 million, with 88% expected to commence by the end of next year, contributing to future cash flow growth [15][17]. - Kimco's operational advantages, including proprietary leasing tools, have led to faster deal-making and reduced gestation periods, enhancing overall efficiency [19][20]. Group 4: Valuation and Growth Potential - Kimco's stock is currently trading at a 16.6% discount to net asset value (NAV), with the shopping center REIT sector broadly undervalued at 15.4X AFFO [22][25]. - The sector is expected to trade closer to 18X AFFO due to embedded rental rate growth, indicating potential for significant appreciation [27][28]. - The fundamental landscape for shopping centers has improved, with high tenant demand and limited new supply making recent bankruptcies accretive rather than dilutive [28][29].