Kimco Realty(KIM) - 2025 Q2 - Quarterly Results

Kimco Realty Q2 2025 Earnings Release Financial & Operating Highlights Kimco Realty reported strong Q2 2025 results with FFO per share up 7.3%, record small shop occupancy, and robust rent spreads - CEO Conor Flynn highlighted the portfolio's strength and leasing team's effectiveness, noting less impact from JOANN and Party City bankruptcies due to strong tenant demand, positioning the company for FFO per share growth exceeding 5% for the second consecutive year[3] Q2 2025 Key Performance Indicators | Metric | Value | Note | | :--- | :--- | :--- | | FFO per Diluted Share Growth (YoY) | 7.3% | Reached $0.44 | | Same Property NOI Growth (YoY) | 3.1% | - | | Blended Pro-rata Cash Rent Spreads | 15.2% | Highest in over seven years | | Small Shop Occupancy | 92.2% | All-time company record | | Pipeline of Signed Leases (ABR) | $66 million | Future rent commencements | | Grocery-Anchored ABR Contribution | 86% | New record level | Financial Results Net income increased 35% to $155.4 million, and FFO grew 7.3% to $297.6 million, driven by revenue and property sales gains Q2 2025 vs. Q2 2024 Financial Comparison (in millions) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Income | $155.4 | $111.8 | +39.0% | | Net Income per Diluted Share | $0.23 | $0.17 | +35.3% | | FFO | $297.6 | $276.0 | +7.8% | | FFO per Diluted Share | $0.44 | $0.41 | +7.3% | - Key drivers for the increase in Net Income include $24.7 million growth in consolidated revenues from rental properties, $31.4 million higher gains on sales of properties, and a $7.3 million increase in mortgage and other financing income, partially offset by increased depreciation and interest expenses[6] Operating Performance Operating performance was robust with 506 new leases, 15.2% rent spreads, record small shop occupancy, and 3.1% Same Property NOI growth - Leasing Activity: Signed 506 leases for 2.7 million square feet - Rent Spreads: Achieved blended pro-rata cash rent spreads of 15.2%, with new leases at +33.8% and renewals/options at +9.6% - Occupancy: Pro-rata leased occupancy ended at 95.4%, a 40 bps sequential decline primarily due to tenant bankruptcies, while small shop occupancy hit a record 92.2% - Future Rent Pipeline: The spread between leased and economic occupancy increased to 310 basis points, representing $66 million in future Annual Base Rent (ABR)[11] - Same Property NOI increased by 3.1% year-over-year, primarily driven by a 2.7% increase in minimum rents[11] Capital & Transactional Activities Kimco executed strategic capital activities, including property sales, debt issuance, and share repurchases, maintaining over $2.2 billion liquidity - Dispositions: Sold a freestanding, Home Depot-anchored property in Santa Ana, CA for $49.5 million, generating a gain of $38.4 million - Investments: Invested $46.2 million in new capital through its Structured Investment Program - Debt Management: Issued $500.0 million of 5.30% senior unsecured notes due 2036 and repaid a $240.5 million note, with no consolidated debt maturing until July 2026 - Share Repurchases: Repurchased 3.0 million shares of common stock at an average price of $19.61 per share - Liquidity: Maintained over $2.2 billion of immediate liquidity[11] Dividend Declarations The Board declared a quarterly cash dividend of $0.25 per common share and dividends for preferred shares Q2 2025 Common Stock Dividend | Metric | Value | | :--- | :--- | | Dividend per Share | $0.25 | | Annualized Dividend | $1.00 | | Record Date | September 5, 2025 | | Payment Date | September 19, 2025 | - Quarterly dividends were also declared for Class L, Class M, and Class N series of preferred shares, payable on October 15, 2025[11] 2025 Full Year Outlook Kimco raised its full-year 2025 guidance for Net Income and FFO per diluted share, reflecting a strong 3.0% Same Property NOI outlook Updated 2025 Full Year Guidance (per diluted share) | Metric | Current Outlook | Previous Outlook | | :--- | :--- | :--- | | Net Income | $0.74 to $0.76 | $0.70 to $0.73 | | FFO | $1.73 to $1.75 | $1.71 to $1.74 | Key 2025 Outlook Assumptions | Assumption | Current Outlook | | :--- | :--- | | Same Property NOI growth | +3.0% or better | | Total acquisitions, net of dispositions | $100M to $125M (Unchanged) | | Redevelopment spending | $100M to $125M (Unchanged) | Consolidated Financial Statements Condensed Consolidated Balance Sheets Total assets decreased to $19.8 billion and liabilities to $9.1 billion as of June 30, 2025, with equity remaining stable Balance Sheet Summary (in billions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $19.80 | $20.31 | | Total Liabilities | $9.08 | $9.46 | | Total Equity | $10.67 | $10.80 | Condensed Consolidated Statements of Income Total revenues increased to $525.2 million, and net income grew to $155.4 million in Q2 2025, driven by revenues and property sales gains Q2 Income Statement Highlights (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $525,175 | $500,231 | | Operating Income | $205,812 | $160,710 | | Net Income Available to Common Shareholders | $155,430 | $111,777 | | Diluted EPS | $0.23 | $0.17 | Reconciliation of Net Income to FFO Net Income of $155.4 million was reconciled to FFO of $297.6 million for Q2 2025, adjusting for depreciation and property sale gains Q2 2025 FFO Reconciliation (in thousands) | Item | Amount | | :--- | :--- | | Net income available to common shareholders | $155,430 | | Add: Depreciation and amortization - real estate related | $155,145 | | Less: Gain on sale of properties | ($38,922) | | Other Adjustments | $25,902 | | FFO available to common shareholders | $297,555 | Reconciliation of Net Income to Same Property NOI Net Income was reconciled to Same Property NOI of $388.5 million for Q2 2025, representing a 3.1% increase year-over-year Q2 Same Property NOI Reconciliation (in thousands) | Period | Same Property NOI | | :--- | :--- | | Three Months Ended June 30, 2025 | $388,534 | | Three Months Ended June 30, 2024 | $376,794 | Reconciliation of Projected Net Income to FFO The company provides a reconciliation of its full-year 2025 projected Net Income per share to FFO per share guidance Projected Full Year 2025 Reconciliation (per diluted share) | Item | Low End | High End | | :--- | :--- | :--- | | Net income available to common shareholders | $0.74 | $0.76 | | Depreciation & amortization (real estate related) | $0.92 | $0.94 | | Depreciation & amortization (real estate JVs) | $0.12 | $0.13 | | Other Adjustments | ($0.05) | ($0.08) | | FFO available to common shareholders | $1.73 | $1.75 |