Kimco Leverages Grocery Demand to Stay Ahead: Will It Drive Growth?

Core Insights - Kimco Realty's grocery-anchored portfolio provides stability and steady income, enabling the company to navigate uncertain economic conditions [1] - The company achieved 86% annualized base rent (ABR) from its grocery-anchored portfolio in Q2 2025, an increase from 78% in 2020, with major tenants including Kroger, Whole Foods, and Albertsons [2][8] - Kimco has experienced 58 consecutive quarters of positive leasing spreads, indicating strong pricing power across its portfolio [4][8] - The company received a credit rating upgrade to 'A-' with a Stable Outlook from S&P Global Ratings, supported by its resilient cash flows [5][8] Financial Performance - As of June 30, 2025, Kimco's signed not opened (SNO) pipeline represents $66 million of ABR, with an anticipated 41% commencement, translating to $30 million in rent for 2025 [4] - The presence of grocery stores in Kimco's retail centers leads to high foot traffic and reduced vacancy rates, contributing to stable cash flows [3] Industry Context - Other companies like Regency Centers and Realty Income also focus on grocery-anchored and necessity-based tenants, which helps them maintain stable foot traffic and recurring income [6][7]