Kimco's Q4 FFO Meets Estimates, Revenues Beat, Occupancy Improves

Kimco Realty Corp. KIM reported fourth-quarter 2025 funds from operations (FFO) per share of 44 cents, meeting the Zacks Consensus Estimate. The metric grew 4.8% from the year-ago quarter.

Reflecting investors’ positive sentiments, KIM shares were trading 2.6% higher in today’s early trading session. Results reflect higher same-property net operating income (NOI), driven by improved occupancy and a rise in minimum rents.  This retail REIT issued its 2026 FFO per share guidance.

The company clocked in revenues of $542.5 million, which outpaced the consensus mark of $538.3 million. The figure improved 3.3% year over year.

For 2025, FFO per share came in at $1.76, in line with the consensus estimate, and rose 6.7% year over year. Revenues increased 5.1% year over year to $2.14 billion.

KIM’s Q4 in Detail

Pro-rata leased occupancy at the end of the fourth quarter was 96.4%, highlighting a rise of 70 basis points (bps) sequentially and 10 bps year over year. Our estimate for the same stood at 95.6%.

Pro-rata anchor occupancy at the end of the quarter was 97.9%, reflecting a record increase of 90 bps from the prior quarter.

Pro-rata small shop occupancy at the end of the quarter was 92.7%, representing a 20 bps increase sequentially and a 100 bps improvement year over year.

Kimco executed 435 leases, aggregating 2.7 million square feet in the quarter. Blended pro-rata cash rent spreads on comparable spaces were 13.8%, with new leases increasing 29%, and renewals and options growing 5.9% and 9.2%, respectively.

Same-property NOI jumped 3% year over year, backed by a 2.1% rise in the minimum rent.

KIM’s Portfolio Activity

During the fourth quarter, Kimco acquired common member interests in The Shoppers at 82^nd Street in Jackson Heights, NY. The company exercised its right of first offer under the structured investment agreement for a total pro-rata purchase price of $74 million. The center consists of 59,000 square feet of gross leasable area located in one of the most densely populated areas of Queens, NY.

During the fourth quarter, the company sold a ground-leased parcel anchored by a Lowe’s Home Improvement store located at Mill Station in Owings Mills, MD, for $18.5 million.

Kimco sold two shopping centers, Clive Plaza in Des Moines, IA, for $7.9 million and Holcomb Bridge in Roswell, GA, for $8 million. The company also disposed of land parcels aggregating $3.3 million.

Balance Sheet Position of KIM

This retail REIT exited the fourth quarter of 2025 with more than $2.2 billion of immediate liquidity. This included full availability on its $2.0 billion unsecured revolving credit facility and $212.8 million of cash, cash equivalents and restricted cash.

Its net-debt-to-EBITDA was 5.7X on a look-through basis as of Dec. 31, 2025, up from 5.6X in the prior quarter.

During the fourth quarter, the company repurchased 3.1 million shares of common stock at a weighted average price of $19.96 per share, net of fees and commissions.

KIM’s Dividend Update

Concurrent with the fourth-quarter earnings release, Kimco’s board of directors has declared a quarterly cash dividend of 26 cents per share. The dividend will be paid out on March 19 to its shareholders of record as of March 6, 2026.

2026 Guidance by KIM

For 2026, Kimco expects its FFO per share to be in the range of $1.80-$1.84. The Zacks Consensus Estimate of $1.80 lies at the lower end of the guidance.

Kimco’s full-year outlook is based on the same property NOI growth of 2.5%-3.5%. Property acquisitions, net of dispositions, are expected at $300 million to $500 million.

KIM’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kimco Realty Corporation Price, Consensus and EPS Surprise

Kimco Realty Corporation price-consensus-eps-surprise-chart | Kimco Realty Corporation Quote

Performance of Other Retail REITs

Regency Centers Corporation REG reported fourth-quarter 2025 NAREIT FFO per share of $1.17, in line with the Zacks Consensus Estimate. The figure increased 7.3% from the prior-year quarter.

Results reflected healthy leasing activity. It witnessed a year-over-year improvement in the same-property NOI and base rents during the quarter.

Simon Property Group, Inc.’s SPG fourth-quarter 2025 real estate FFO per share of $3.49 surpassed the Zacks Consensus Estimate of $3.47. This compared favorably with the real estate FFO of $3.35 in the prior-year period.

Results reflected an increase in revenues, backed by a rise in the base minimum rent per square foot. SPG issued its guidance for 2026 real estate FFO per share.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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