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Why Is Kimco Realty (KIM) Down 3.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for Kimco Realty (KIM - Free Report) . Shares have lost about 3.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Kimco Realty due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Kimco Realty Corporation before we dive into how investors and analysts have reacted as of late.
Kimco Q2 FFO Meet Estimates as Leasing Gains Lift Occupancy
Kimco reported second-quarter 2026 FFO of 46 cents per share, in line with the Zacks Consensus Estimate. The metric increased 4.5% from 44 cents in the year-ago quarter. Total revenues rose 4.9% year over year to $550.8 million and surpassed the consensus mark of $545 million by 1.06%.
Results benefited from strong leasing activity and higher minimum rents. Pro-rata leased occupancy reached 96.4%, matching the company’s all-time high, while same-property net operating income (NOI) grew 3.5%.
Rental Revenues Rise, Costs Remain Mixed
Net revenues from rental properties increased to $546.4 million from $520.9 million in the prior-year quarter.
Operating and maintenance expenses increased to $95.1 million from $91.1 million, while real estate taxes rose to $71.2 million from $66.6 million. However, general and administrative expenses declined to $29.9 million from $32.4 million.
Leasing Execution Drives Rent Spreads
Kimco executed 461 leases covering 2.5 million square feet during the second quarter. Blended pro-rata cash rent spreads on comparable spaces were 13.1%, comprising 40.4% on new leases, 6.1% on renewals and 8% on options.
Small-shop occupancy increased 70 bps year over year and 40 bps sequentially to a record 92.9%. Pro-rata anchor occupancy improved 110 bps from the prior-year period to 97.8%. The pro-rata leased versus economic occupancy rates spread was 400 bps, representing $75 million in future rents from signed leases that have not yet commenced.
Recycles Capital Through Asset Sales
During the second quarter, the company sold The Milton, a 253-unit multifamily building at Pentagon Centre, for $142.3 million. Kimco’s pro-rata share of the sales price was $78.2 million, and the transaction carried an approximately 4.9% capitalization rate. It also sold the 44,000-square-foot Shoppes at Bears Path for $7.8 million.
After quarter-end, Kimco sold four Costco-anchored assets for aggregate proceeds of approximately $127 million. It acquired Pompano Marketplace, a Walmart-anchored center, for $53 million and Sunshine Plaza, a Publix-anchored property, for $56 million using 1031 exchange proceeds.
Strengthens Liquidity
Kimco ended the quarter with $2.7 billion of immediate liquidity. This included $700 million of cash, cash equivalents and restricted cash, along with full availability under its $2 billion unsecured revolving credit facility.
The company issued $600 million of 3.50% exchangeable senior notes due 2031. In connection with the offering, it repurchased roughly 4.1 million common shares for $104.7 million at $25.38 per share.
Raises Its 2026 FFO Outlook
Kimco increased its 2026 FFO guidance to $1.83-$1.84 per share from $1.81-$1.84.
The revised outlook assumes same-property NOI growth of 3-3.5% compared with the previous 2.8-3.5% range. Credit loss is projected at 55-75 bps of total pro-rata rental revenues, an improvement from the prior 65-90 bps forecast.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
At this time, Kimco Realty has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Kimco Realty has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
View the Zacks #1 Rank List
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Why Is Kimco Realty (KIM) Down 3.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Kimco Realty (KIM - Free Report) . Shares have lost about 3.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Kimco Realty due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Kimco Realty Corporation before we dive into how investors and analysts have reacted as of late.
Kimco Q2 FFO Meet Estimates as Leasing Gains Lift Occupancy
Kimco reported second-quarter 2026 FFO of 46 cents per share, in line with the Zacks Consensus Estimate. The metric increased 4.5% from 44 cents in the year-ago quarter. Total revenues rose 4.9% year over year to $550.8 million and surpassed the consensus mark of $545 million by 1.06%.
Results benefited from strong leasing activity and higher minimum rents. Pro-rata leased occupancy reached 96.4%, matching the company’s all-time high, while same-property net operating income (NOI) grew 3.5%.
Rental Revenues Rise, Costs Remain Mixed
Net revenues from rental properties increased to $546.4 million from $520.9 million in the prior-year quarter.
Operating and maintenance expenses increased to $95.1 million from $91.1 million, while real estate taxes rose to $71.2 million from $66.6 million. However, general and administrative expenses declined to $29.9 million from $32.4 million.
Leasing Execution Drives Rent Spreads
Kimco executed 461 leases covering 2.5 million square feet during the second quarter. Blended pro-rata cash rent spreads on comparable spaces were 13.1%, comprising 40.4% on new leases, 6.1% on renewals and 8% on options.
Small-shop occupancy increased 70 bps year over year and 40 bps sequentially to a record 92.9%. Pro-rata anchor occupancy improved 110 bps from the prior-year period to 97.8%. The pro-rata leased versus economic occupancy rates spread was 400 bps, representing $75 million in future rents from signed leases that have not yet commenced.
Recycles Capital Through Asset Sales
During the second quarter, the company sold The Milton, a 253-unit multifamily building at Pentagon Centre, for $142.3 million. Kimco’s pro-rata share of the sales price was $78.2 million, and the transaction carried an approximately 4.9% capitalization rate. It also sold the 44,000-square-foot Shoppes at Bears Path for $7.8 million.
After quarter-end, Kimco sold four Costco-anchored assets for aggregate proceeds of approximately $127 million. It acquired Pompano Marketplace, a Walmart-anchored center, for $53 million and Sunshine Plaza, a Publix-anchored property, for $56 million using 1031 exchange proceeds.
Strengthens Liquidity
Kimco ended the quarter with $2.7 billion of immediate liquidity. This included $700 million of cash, cash equivalents and restricted cash, along with full availability under its $2 billion unsecured revolving credit facility.
The company issued $600 million of 3.50% exchangeable senior notes due 2031. In connection with the offering, it repurchased roughly 4.1 million common shares for $104.7 million at $25.38 per share.
Raises Its 2026 FFO Outlook
Kimco increased its 2026 FFO guidance to $1.83-$1.84 per share from $1.81-$1.84.
The revised outlook assumes same-property NOI growth of 3-3.5% compared with the previous 2.8-3.5% range. Credit loss is projected at 55-75 bps of total pro-rata rental revenues, an improvement from the prior 65-90 bps forecast.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
At this time, Kimco Realty has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Kimco Realty has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.