Kimco Realty Corporation

Kimco reported second-quarter FFO of $309.2 million, or $0.46 per diluted share, versus $297.6 million, or $0.44 per diluted share, in the prior-year quarter. Same-property NOI increased 3.5% year over year, driven by higher minimum rents and stronger net recoveries; credit loss was 57 basis points versus 89 basis points in the second quarter of 2025, and year-to-date credit loss was 54 basis points. Balance sheet metrics ended at 5.2x consolidated net debt to EBITDA, or 5.5x on a look-through basis, with $2.7 billion of total liquidity including $700 million of cash on hand. Full-year 2026 FFO outlook was raised to $1.83-$1.84 per diluted share from $1.81-$1.84, same-property NOI growth guidance was raised to 3.0%-3.5% from 2.8%-3.5%, and the credit loss assumption was tightened to 55-75 bps from 65-90 bps. The board also declared a quarterly common dividend of $0.28 per share, or $1.12 annualized, up 12% year over year.

Conor Flynn framed the quarter as proof that Kimco’s portfolio, platform and balance sheet are working together, emphasizing strong demand for open-air grocery-anchored centers, record traffic and steady rent growth. He highlighted the sale of the Milton as an important milestone for the mixed-use program and described capital recycling as a recurring way to harvest value from low-growth assets and redeploy into higher-growth opportunities. His tone was constructive and confident, repeatedly pointing to optionality, balance-sheet strength and what he called untapped growth potential in the portfolio.

Glenn Cohen focused on the durability of cash flows, improving credit trends and financing flexibility. He cited $309.2 million of FFO, $0.46 per share, 3.5% same-property NOI growth, 57 bps credit loss in the quarter, $2.7 billion of liquidity and $600 million of 3.5% exchangeable senior notes due 2031, plus the repurchase of about 4.1 million common shares for $104.7 million. He also noted the $0.28 quarterly dividend and said the lower end of 2026 FFO guidance was raised because of strong first-half results, better credit and visibility, while interest expense and preferred dividend assumptions were adjusted down. He described the capital structure as diversified and said the company remains well positioned for 2027 with multiple funding options.

Analysts focused on transaction activity, the timing and mix of capital recycling, and whether the One Kimco operating model can materially lift FFO. Management said the back half should still see active acquisition and disposition activity, including the likely monetization of the Witmer, while stressing that recycling from lower-growth assets into grocery-anchored centers should improve the growth profile. On One Kimco, management said the new national structure gives them more negotiating leverage with retailers, speeds leasing and rent commencements, and should support margin expansion and FFO growth; they also said AI and digital initiatives are already showing benefits, with year-to-date returns of about 5x on AI spending.