Financial Data and Key Metrics Changes - Kimco Realty achieved NAREIT FFO per share growth of 6.7% in 2025, making it one of the few shopping center REITs to exceed 5% FFO growth in 2024 and 6% in 2025 [7] - For the fourth quarter, FFO was $294.3 million, or $0.44 per diluted share, representing a 4.8% increase compared to the prior year [27] - Full year FFO was approximately $1.2 billion or $1.76 per diluted share, reflecting a 6.7% per share increase compared to 2024 [27][28] Business Line Data and Key Metrics Changes - The overall portfolio occupancy reached 96.4%, matching an all-time high, with a new leasing volume of 1.2 million sq ft, the highest in over a decade [8] - Same-site NOI growth was 3% for the full year, supported by sustained demand for space and consistent rent growth [28] - The signed but not open pipeline reached a record 390 basis points, representing $73 million of future annual base rent, a 30% increase from the previous year [16] Market Data and Key Metrics Changes - The shopping center sector is experiencing limited new supply, which, combined with resilient consumer demand, is expected to push occupancy and same-site NOI higher [10] - Tenant credit profiles are reported to be stronger than in previous years, with a credit loss of 74 basis points for the full year [28][60] Company Strategy and Development Direction - Kimco's strategy for 2026 focuses on proactive capital recycling, selling lower growth assets at attractive private market cap rates, and reinvesting in higher return opportunities [12][25] - The company plans to modernize its operating platform to enhance efficiency and cash flow, targeting a reduction of $3 million in G&A expenses while investing in personnel and technology [13][71] - The company aims to close the valuation gap between its public market valuation and private market pricing, with a focus on disciplined execution and capital allocation [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of the shopping center sector, with expectations for healthy earnings progression in 2026 [31][35] - The company anticipates same-property NOI growth of 2.5%-3.5% for 2026, with the first quarter expected to be the lowest point due to prior year comparisons [31][32] - Management highlighted the importance of tenant retention, with 87% of expiring annual base rent already resolved for the first half of 2026 [19] Other Important Information - Kimco received a credit rating upgrade to A-minus from Moody's, reflecting its disciplined approach to the balance sheet [7] - The company plans to establish a commercial paper program to enhance its financing strategy [30] - A leadership transition is occurring with the retirement of the Chief Accounting Officer, ensuring continuity and expertise within the team [36] Q&A Session Summary Question: Discussion on potential special dividend and balancing earnings growth - Management indicated that a special dividend may be necessary if gains cannot be shielded through 1031 exchanges, but the focus remains on closing the valuation gap between public and private valuations [39][41] Question: Insights on capital allocation priorities - Management emphasized that leasing remains the top priority, followed by redevelopment opportunities and structured investments, with a focus on achieving double-digit returns [44][46] Question: Tenant health and performance trends - Management reported improved tenant credit quality, with notable retailers restructuring successfully and a strong demand for space within the portfolio [60][61] Question: Same-store NOI guidance components - Management acknowledged that the first quarter will be challenging due to prior year bankruptcies but remains confident in the overall guidance based on the signed not occupied pipeline [64][65] Question: Realignment to national leadership and operational efficiency - The restructuring aims to streamline operations and enhance efficiency, with a focus on leveraging technology and improving workflows [68][71]