What's in the Cards for Kimco Realty Stock in Q2 Earnings?

Company Overview - Kimco Realty Corporation (KIM) is expected to report second-quarter 2025 results on July 31, with anticipated year-over-year growth in revenues and funds from operations (FFO) per share [1][11] - In the last reported quarter, Kimco's FFO per share was 44 cents, exceeding the Zacks Consensus Estimate of 42 cents, driven by better-than-expected revenue growth despite rising interest expenses [2][10] Industry Insights - The U.S. retail real estate market experienced a slight pullback in net absorption, with negative net absorption totaling 6.5 million square feet in Q2 2025, marking the first time negative absorption occurred for two consecutive quarters post-pandemic [4][5] - The national vacancy rate increased by 50 basis points year-over-year to 5.8%, although it remains lower than the 6.4% level from 2017-2019 [5] - Asking rents for U.S. shopping centers rose 2.3% year-over-year to $24.99 per square foot in Q2 2025, indicating easing pressure on rents despite the negative demand [6] Performance Projections - Kimco's Q2 FFO per share is projected to rise 2.4% year-over-year to 42 cents, supported by its portfolio of premium grocery-anchored shopping centers [9][13] - The Zacks Consensus Estimate for Kimco's quarterly revenues stands at $526.8 million, reflecting a 5.3% increase from the prior year [11] - Estimated net revenues from rental properties are projected at $519.4 million, suggesting a 4.7% year-over-year increase, with leased occupancy expected to rise to 96% [12] Market Position - Kimco benefits from a diverse tenant base, primarily consisting of essential and necessity-based retailers, which is likely to support stable revenue generation [8] - The company focuses on developing mixed-use assets in strong economic metropolitan areas, enhancing its net asset value [8]