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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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]