Kimco Raises Outlook as FFO and Occupancy Climb
Same-property net operating income grew 3.5% as Kimco lifted its full-year outlook.
Kimco Realty Corp. (KIM), the shopping-center real estate investment trust, raised its 2026 guidance after second-quarter FFO increased 3.9% to $309.2 million and FFO per share rose to $0.46 from $0.44 a year earlier.
The quarter extended an improvement in property-level growth. The year-over-year increase in consolidated rental-property revenue accelerated to $25.5 million from $21.5 million in the first quarter and $17.0 million in the fourth quarter.
Net income fell 6.2% to $145.8 million, or $0.22 a diluted share, from $155.4 million, or $0.23 a share, a year earlier. Net income also declined from $157.4 million in the first quarter, while FFO per share held steady sequentially.
Same-property net operating income growth accelerated to 3.5% from 1.7% in the first quarter, while minimum-rent growth strengthened to 2.6% from 2.2%. Leasing activity slowed to 461 leases covering 2.5 million square feet from 576 leases covering 4.4 million square feet, though blended cash rent spreads widened to 13.1% as spreads on new leases reached 40.4%.
Portfolio occupancy rose 100 basis points from a year earlier and 10 basis points sequentially to 96.4%, matching Kimco's all-time high. Small-shop occupancy reached a record 92.9%, while anchor occupancy increased 110 basis points from a year earlier to 97.8%. Future rent from signed leases eased to $75 million from the first quarter's record $77 million.
Kimco now expects 2026 net income of $1.00 to $1.03 a share, up from its previous range of $0.83 to $0.87. The company narrowed its FFO forecast to $1.83 to $1.84 a share and raised the lower end of its same-property NOI growth outlook to 3.0%, leaving the upper end at 3.5%. It also improved its expected credit-loss range to 55 to 75 basis points from 65 to 90 basis points.
The company sold its first multifamily asset, the 253-unit Milton, for $142.3 million and shifted its transaction assumption to $133 million of net dispositions. Kimco also issued $600 million of exchangeable senior notes, repurchased about 4.1 million common shares for $104.7 million and raised its quarterly common dividend 12% to $0.28 a share.