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Total revenues increased 1.9% year over year to $546.15 million, missing the consensus mark of $551.35 million. Strong leasing and higher minimum rents supported growth, while lower above- and below-market rent adjustments and other rental property income tempered gains.
KIM's Rental Revenues Grow as Costs Stay Mixed
Net revenues from rental properties increased to $539.73 million from $531.11 million in the prior-year quarter. Above- and below-market rent adjustments declined to $4.87 million from $9.66 million a year ago, while other rental property income fell to $11.06 million from $13.32 million.
Operating and maintenance expenses declined to $89.42 million from $92.43 million, while real estate taxes edged up to $68.02 million from $67.38 million. General and administrative expenses increased slightly to $29.96 million from $29.65 million.
Same-property NOI growth of 4.9% year over year was driven by a 3.2% increase in minimum rents, reflecting rent gains across comparable assets. We estimated the same-property NOI to grow 3.8% year over year.
Kimco's Leasing Gains Lift Occupancy
Kimco executed 444 leases covering 2.7 million square feet in the quarter. Blended pro-rata cash rent spreads on comparable spaces were 12%, including 31.5% on new leases, 7.3% on renewals and 7.7% on exercised options.
Small-shop occupancy matched its record of 92.9%, improving 40 basis points year over year. Anchor occupancy climbed 120 basis points to 98.2%, underscoring demand for larger retail spaces. Pro-rata annual base rent per square foot reached $21.59, up from $21.09 a year earlier.
KIM's Signed Leases Offer Future Rental Growth
The gap between leased and economic occupancy narrowed 10 basis points sequentially to 390 basis points. Signed leases that had not yet commenced represented $76 million in future annual base rent, providing a source of potential cash flow growth as tenants open.
Management expects 28% of that rent pipeline to commence in the fourth quarter of 2026, followed by 57% in 2027 and the remaining 15% in 2028. The backlog includes redevelopment contributions and backfilling of spaces previously occupied by retailers that have exited.
Kimco Recycles Capital Into Grocery-Anchored Centers
Kimco completed the sale of The Witmer, a 440-unit multifamily building in Virginia, for $211.5 million at an approximately 5.1% capitalization rate. Its pro-rata share of the sale price was $116.3 million. It completed the disposal of four Costco-anchored assets for approximately $127 million. KIM also disposed of three shopping centers and two land parcels for $51.8 million, the company’s pro-rata share at $15.1 million.
Using proceeds from tax-deferred exchanges, the company acquired Pompano Marketplace in Florida for $53 million and Sunshine Plaza for $56 million. Kimco also received $114.6 million in repayments from its Structured Investment Program, partly offset by $38.8 million in new investments during the quarter.
KIM Maintains Liquidity and Returns Capital
The REIT ended September with more than $2.5 billion of immediate liquidity, including approximately $545 million of cash, cash equivalents and restricted cash, and full access to its $2 billion unsecured revolving credit facility. Consolidated net debt to EBITDA improved to 5 times from 5.3 times a year earlier.
Kimco repurchased 6.3 million common shares for $150 million, along with approximately $74 million of preferred shares. It also repaid $266 million in unsecured notes during the quarter.
Kimco Raises Its Full-Year FFO Forecast
Kimco increased its 2026 FFO guidance to $1.84-$1.86 per share from $1.83-$1.84. The Zacks consensus estimate is pegged at the lower end of the range at $1.84.
The company now anticipates same-property NOI growth of 3.5%-3.8%, up from its previous outlook of 3%-3.5%. Credit losses are projected at 50-60 basis points of pro-rata rental revenues compared with the previous 55-75 basis-point range. The revised guidance reflects healthy leasing demand and improved tenant credit performance.
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2026 adjusted FFO per share of $1.24, up 10.7% year over year. The metric surpassed the Zacks Consensus Estimate of $1.20 by 3.3%. Results benefited from lower interest expenses.
Prologis (PLD - Free Report) reported third-quarter 2026 core FFO per share of $1.60, outpacing the Zacks Consensus Estimate of $1.58. Results benefited from higher rental revenues, steady leasing demand and improved occupancy levels.
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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KIM Q3 FFO Beats on Strong Leasing, Revenues Miss, 2026 Outlook Raised
Key Takeaways
Kimco Realty Corporation (KIM - Free Report) reported third-quarter 2026 funds from operations (FFO) of 47 cents per share, which rose 6.8% from a year earlier and outpaced the Zacks Consensus Estimate of 46 cents.
Total revenues increased 1.9% year over year to $546.15 million, missing the consensus mark of $551.35 million. Strong leasing and higher minimum rents supported growth, while lower above- and below-market rent adjustments and other rental property income tempered gains.
KIM's Rental Revenues Grow as Costs Stay Mixed
Net revenues from rental properties increased to $539.73 million from $531.11 million in the prior-year quarter. Above- and below-market rent adjustments declined to $4.87 million from $9.66 million a year ago, while other rental property income fell to $11.06 million from $13.32 million.
Operating and maintenance expenses declined to $89.42 million from $92.43 million, while real estate taxes edged up to $68.02 million from $67.38 million. General and administrative expenses increased slightly to $29.96 million from $29.65 million.
Same-property NOI growth of 4.9% year over year was driven by a 3.2% increase in minimum rents, reflecting rent gains across comparable assets. We estimated the same-property NOI to grow 3.8% year over year.
Kimco's Leasing Gains Lift Occupancy
Kimco executed 444 leases covering 2.7 million square feet in the quarter. Blended pro-rata cash rent spreads on comparable spaces were 12%, including 31.5% on new leases, 7.3% on renewals and 7.7% on exercised options.
Small-shop occupancy matched its record of 92.9%, improving 40 basis points year over year. Anchor occupancy climbed 120 basis points to 98.2%, underscoring demand for larger retail spaces. Pro-rata annual base rent per square foot reached $21.59, up from $21.09 a year earlier.
KIM's Signed Leases Offer Future Rental Growth
The gap between leased and economic occupancy narrowed 10 basis points sequentially to 390 basis points. Signed leases that had not yet commenced represented $76 million in future annual base rent, providing a source of potential cash flow growth as tenants open.
Management expects 28% of that rent pipeline to commence in the fourth quarter of 2026, followed by 57% in 2027 and the remaining 15% in 2028. The backlog includes redevelopment contributions and backfilling of spaces previously occupied by retailers that have exited.
Kimco Recycles Capital Into Grocery-Anchored Centers
Kimco completed the sale of The Witmer, a 440-unit multifamily building in Virginia, for $211.5 million at an approximately 5.1% capitalization rate. Its pro-rata share of the sale price was $116.3 million. It completed the disposal of four Costco-anchored assets for approximately $127 million. KIM also disposed of three shopping centers and two land parcels for $51.8 million, the company’s pro-rata share at $15.1 million.
Using proceeds from tax-deferred exchanges, the company acquired Pompano Marketplace in Florida for $53 million and Sunshine Plaza for $56 million. Kimco also received $114.6 million in repayments from its Structured Investment Program, partly offset by $38.8 million in new investments during the quarter.
KIM Maintains Liquidity and Returns Capital
The REIT ended September with more than $2.5 billion of immediate liquidity, including approximately $545 million of cash, cash equivalents and restricted cash, and full access to its $2 billion unsecured revolving credit facility. Consolidated net debt to EBITDA improved to 5 times from 5.3 times a year earlier.
Kimco repurchased 6.3 million common shares for $150 million, along with approximately $74 million of preferred shares. It also repaid $266 million in unsecured notes during the quarter.
Kimco Raises Its Full-Year FFO Forecast
Kimco increased its 2026 FFO guidance to $1.84-$1.86 per share from $1.83-$1.84. The Zacks consensus estimate is pegged at the lower end of the range at $1.84.
The company now anticipates same-property NOI growth of 3.5%-3.8%, up from its previous outlook of 3%-3.5%. Credit losses are projected at 50-60 basis points of pro-rata rental revenues compared with the previous 55-75 basis-point range. The revised guidance reflects healthy leasing demand and improved tenant credit performance.
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 REITs
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2026 adjusted FFO per share of $1.24, up 10.7% year over year. The metric surpassed the Zacks Consensus Estimate of $1.20 by 3.3%. Results benefited from lower interest expenses.
Prologis (PLD - Free Report) reported third-quarter 2026 core FFO per share of $1.60, outpacing the Zacks Consensus Estimate of $1.58. Results benefited from higher rental revenues, steady leasing demand and improved occupancy levels.
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.