Kimco Realty(KIM) - 2025 Q4 - Annual Report

Green Financing and Sustainability - The Company issued $500.0 million in 2.70% notes due 2030 in its first green bond offering, with full allocation reached by June 30, 2024[68] - The Company's $2.0 billion Credit Facility includes rate adjustments tied to Scope 1 and 2 greenhouse gas emissions reductions, achieving maximum interest rate adjustment in 2025[68] - The Company has a credit agreement with $310.0 million in term loans that also have rate adjustments tied to GHG emissions[68] Employee Satisfaction and Work Environment - As of December 31, 2025, the Company employed 710 individuals, with an average tenure of 10.1 years[62] - The Company has been certified as a Great Place to Work for eight consecutive years, indicating strong employee satisfaction[57] - The Company operates under a hybrid work model, enhancing communication and collaboration among associates[58] - The Company has a robust benefits program, including a Safe Harbor 401(k) with fully vested matching contributions[56] Corporate Responsibility and Community Engagement - The Company is committed to corporate responsibility, aligning its programs with its core business strategy to deliver long-term stakeholder value[63] - The Company promotes community engagement by providing two volunteer days off per year and a matching program for charitable contributions[61] REIT Compliance and Tax Implications - To qualify as a REIT, the company must distribute at least 90% of its REIT taxable income annually, excluding net capital gains[141] - If the company loses its REIT status, it would face significant tax consequences, including being subject to regular U.S. federal corporate income tax[142] - The company may incur a 4% nondeductible excise tax if distributions are less than 100% of its REIT taxable income[145] - The company must ensure that its subsidiary REITs independently satisfy all REIT qualification requirements to maintain its own REIT status[141] - Tax liabilities from acquisitions could adversely impact the company's business and cash available for distributions[147] - The company may need to borrow funds during unfavorable market conditions to meet REIT distribution requirements[145] - Dividends paid by REITs do not qualify for reduced tax rates available for some dividends, making them less attractive to certain investors[150] - The company could face a 100% penalty tax on net income from prohibited transactions, limiting its ability to engage in certain sales[149] - If the company fails to qualify as a REIT, it would not be required to make distributions to stockholders[148] - The IRS may challenge the partnership status of Kimco OP, which could adversely affect the company's REIT qualification and stock value[146] Financial Risks - The Company is exposed to interest rate risk through its unsecured revolving credit facility, which may increase interest expenses if rates rise[72]