Kimco Raises 2026 Outlook After NOI Growth Accelerates

The Tip Desk · October 30, 2026 · 4 min read

Same-property NOI rose 4.9% in the third quarter, and the REIT lifted full-year FFO guidance to $1.84–$1.86 a share.

Kimco Realty (KIM), a real estate investment trust that owns grocery-anchored shopping centers, reported same-property net operating income growth of 4.9% in the third quarter, faster than the 3.5% pace of the second quarter, and raised its 2026 outlook for net income and funds from operations.

The acceleration in same-property NOI followed a 3.2% increase in minimum rents, versus a 2.6% minimum-rent increase in the prior quarter. Credit loss as a percentage of total pro-rata rental revenues was 45 basis points.

Funds from operations were $316.2 million, or $0.47 a share, up 6.8% from $0.44 a share a year earlier. That year-over-year FFO growth rate was higher than the 4.5% increase to $0.46 a share recorded in both the first and second quarters. Gains on sales of properties, net of impairments, are excluded from FFO.

Net income available to common shareholders was $272.5 million, or $0.41 a share, compared with $130.2 million, or $0.19 a share, a year earlier. The company said the year-over-year increase was primarily driven by $122.4 million more of gains on sales of properties, net of impairments.

Pro-rata leased occupancy reached a record 96.6%, up 20 basis points from 96.4% at June 30 and 90 basis points from a year earlier. Small-shop occupancy held at an all-time high of 92.9%. Pro-rata anchor occupancy rose 40 basis points sequentially to 98.2%.

The company executed 444 leases totaling 2.7 million square feet. 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 options. The spread between pro-rata leased and economic occupancy was 390 basis points, representing $76 million of future rents from signed leases that had not yet commenced.

Chief Executive Conor Flynn said the quarter reflected record occupancy, pricing power on new leases and further acceleration in same-property NOI growth. He said the company sold a multifamily property at approximately a 5% cap rate and redeployed capital toward repurchasing $150 million of common stock at an implied cap rate in the mid-7% range, while recycling lower-growth ground leases into higher-growth grocery-anchored centers. He said the company still sees further opportunity, including $76 million of annual base rent from leases signed but yet to commence.

Kimco sold The Witmer, a 440-unit multifamily building at Pentagon Centre, for $211.5 million at an approximately 5.1% cap rate; its pro-rata share of the sales price was $116.3 million. It completed the sale of four Costco-anchored assets for an aggregate sales price of about $127 million. Proceeds from 1031 exchanges funded the acquisitions of Pompano Marketplace, a Walmart-anchored center, for $53 million, and Sunshine Plaza, a Publix-anchored center, for $56 million.

The company repurchased 6.3 million common shares for $150 million at a weighted average price of $23.81 a share, including fees and commissions, and repurchased about $74 million of preferred stock. It repaid two unsecured notes totaling $266.0 million at a blended coupon of 3.45%. Subsequent to quarter end, it repaid a $500 million unsecured note with a 2.80% coupon. Immediate liquidity was over $2.5 billion, including $545 million of cash, cash equivalents and restricted cash and full availability under a $2.0 billion revolving credit facility.

The board declared a cash dividend of $0.28 a common share, equivalent to $1.12 a year, a 7.7% increase over the quarterly dividend in the corresponding period of the prior year.

Kimco raised its 2026 outlook for net income to $1.07 to $1.09 a share from $1.00 to $1.03 and for FFO to $1.84 to $1.86 a share from $1.83 to $1.84. Flynn said the raise would mark a third consecutive year of FFO per share growth above 5%. Full-year same-property NOI growth is now expected at 3.5% to 3.8%, up from 3.0% to 3.5%; year-to-date through September 30, 2026, that growth was 3.3%.