Financial Data and Key Metrics Changes - Kimco Realty achieved NAREIT FFO per share growth of 6.7%, making it one of the few shopping center REITs to exceed 5% FFO growth in 2024 and 6% in 2025 [4] - For Q4 2025, funds from operations (FFO) were $294.3 million, or $0.44 per diluted share, representing a 4.8% increase compared to the prior year [25] - Full-year FFO was approximately $1.2 billion or $1.76 per diluted share, reflecting a 6.7% per share increase compared to 2024 [25][26] Business Line Data and Key Metrics Changes - 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 [5] - Small shop occupancy hit a record high of 92.7%, while same-site NOI growth was 3% for the full year [5][26] - The signed but not open (SNO) pipeline reached a record 390 basis points, representing $73 million of future annual base rent, a 30% increase from the previous year [5][13] Market Data and Key Metrics Changes - The shopping center sector remains fundamentally strong with limited new supply, which, combined with resilient consumer demand, supports confidence in pushing occupancy and same-site NOI higher [8][9] - The company noted that private market pricing remains constructive, creating opportunities despite uneven public REIT sentiment [9] Company Strategy and Development Direction - Kimco's strategy for 2026 focuses on proactive capital recycling to enhance long-term growth, including selling assets at attractive private market cap rates and reinvesting proceeds into higher return opportunities [10][19] - The company plans to modernize its operating platform to improve efficiency and cash flow, targeting a reduction of $3 million in G&A expenses while investing in personnel and technology [11][66] - A shift from a regional to a national leadership structure aims to streamline operations and enhance decision-making speed [66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, expecting continued demand and a strong tenant credit profile, with 87% of expiring annual base rent resolved or in negotiation for the first half of 2026 [16][29] - The company anticipates a clear and accelerating growth profile for 2026, with expectations for same-property NOI growth between 2.5% and 3.5% [28][29] Other Important Information - Kimco received a credit rating upgrade to A-minus from Moody's, reflecting a disciplined approach to its balance sheet [4] - The company has established a commercial paper program to enhance its financing strategy [27] - A leadership transition is underway with the retirement of the Chief Accounting Officer, ensuring continuity and expertise within the team [34] Q&A Session Summary Question: Discussion on potential special dividend and balancing earnings growth - Management clarified that while a special dividend may be necessary if gains cannot be shielded through exchanges, the focus remains on closing the valuation gap between public and private markets [36][38] Question: Insights on capital allocation priorities - Management emphasized leasing as the top priority, followed by redevelopment opportunities and structured investments, with a focus on achieving double-digit returns [41][44] Question: Trends in tenant health and performance - The tenant credit profile is reported to be strong, with notable improvements in previously struggling retailers, indicating a positive outlook for the sector [55][58] Question: Guidance on same-store NOI components - Management acknowledged that the first quarter may be challenging due to prior year comparisons but remains confident in the overall guidance based on the SNO pipeline [61] Question: Ground lease portfolio size and disposition plans - The ground lease segment constitutes about 9% of annual base rent, with plans to accelerate dispositions in 2026, driven by increased demand from private investors [80][82]