Kimco Realty Corporation

Second-quarter FFO was $309.2 million, or $0.46 per diluted share, versus $297.6 million, or $0.44 per diluted share, a year ago. Same-property NOI increased 3.5%, supported by higher minimum rents and stronger net recoveries, while credit loss improved to 57 basis points from 89 basis points in the prior-year quarter. Small shop occupancy reached 92.9% and overall pro rata portfolio occupancy was 96.4%; anchor occupancy was 97.8%. For 2026, Kimco raised full-year FFO guidance to $1.83-$1.84 per diluted share from $1.81-$1.84, increased same-property NOI growth guidance to 3% to 3.5% from 2.8% to 3.5%, and tightened credit loss guidance to 55 to 75 basis points from 65 to 90 basis points. The board also declared a quarterly dividend of $0.28 per share, or $1.12 annualized, up 12% from the prior year quarter.

Conor Flynn framed the quarter as evidence that Kimco's growth strategy and portfolio quality are working, pointing to strong retailer demand, positive shopper traffic, and the company’s ability to recycle capital into higher-growth assets. He emphasized the mixed-use platform as a source of long-term value creation, citing the Milton sale as a full-cycle monetization milestone, and said the new One Kimco operating model should sharpen execution and enhance margins over time. His tone was confident and constructive, with repeated references to operating momentum and a stronger setup for the back half of the year.

Glenn Cohen focused on the quarter’s operating strength and balance sheet flexibility. He highlighted FFO of $309.2 million, or $0.46 per share, same-property NOI growth of 3.5%, and credit loss of 57 basis points, then noted that net debt to EBITDA was 5.2x consolidated and 5.5x look-through, with $2.7 billion of total liquidity including $700 million of cash. He also discussed the $600 million of 3.5% exchangeable notes due 2031, the repurchase of about 4.1 million common shares for $104.7 million, and the post-quarter repurchase of 516,750 preferred shares for $33.3 million, saying the company remains well positioned to fund maturities and pursue financing opportunistically.

Analysts focused on the pace and mix of capital recycling, the trajectory of second-half FFO, the impact of One Kimco on leasing and margins, and how far occupancy and SNO conversion can still improve. Management said more disposition and acquisition activity is expected in the back half, including a likely sale of the Witmer later this year, and stressed that recycling lower-growth assets into grocery-anchored centers should improve long-term growth. On One Kimco, management said the new model improves retailer conversations, accelerates execution, and should support margin expansion and FFO growth, while AI and digital transformation efforts are already generating about a 5x return on spending year to date.