Kimco Realty Corp
(STU:KIC)
€
21
(0%)
Market Cap: 14.24 Bil
Enterprise Value: 21.46 Bil
PE Ratio: 28.78
PB Ratio: 1.60
GF Score: 79/100 
Q2 2026 Kimco Realty Corp Earnings Call Transcript
Aug 04, 2026 / 12:30PM GMT
Release Date Price:
€21.6
(-1.82%)
Key Points
Positve
- Kimco Realty Corp (KIM) delivered strong second-quarter results with FFO per share of $0.46, up 4.5% year-over-year, and same-property NOI growth of 3.5%.
- Small-shop occupancy reached a record high of 92.9%, while overall portfolio occupancy matched its all-time high at 96.4%, despite a 16 basis point impact from the Painted Tree bankruptcy.
- Leasing momentum remained robust, with 461 leases signed at a blended spread of 13.1%, including a standout 40.4% spread on new leases, marking the 19th consecutive quarter of double-digit new-leasing spreads.
- The company successfully monetized its first ground-up multifamily development, The Milton at Pentagon Centre, at a 4.9% cap rate, demonstrating the value creation potential of its mixed-use platform.
- Capital recycling initiatives, including the sale of low-growth Costco leases and reinvestment into higher-growth grocery-anchored centers in Florida, are expected to enhance the portfolio's long-term growth profile.
- The balance sheet remains a competitive advantage, with $2.7 billion in liquidity and the successful issuance of $600 million in exchangeable notes at an attractive 3.5% coupon.
- Management raised the midpoint of its full-year 2026 FFO outlook and increased the quarterly dividend by 12%, reflecting confidence in continued earnings growth.
- The SNO pipeline represents $95 million in annual base rent, with $33 million expected to commence in 2026, 16% higher than initial estimates, supporting future cash flow growth.
- The launch of the 'One Kimco' operating model is expected to drive operational efficiencies and margin expansion, with AI initiatives already yielding a 5x return on investment.
- Credit loss improved to 57 basis points in the quarter, down from 89 basis points in the prior-year period, reflecting the resilience of the retailer base.
Negative
- The company absorbed a 16 basis point impact on occupancy from the Painted Tree bankruptcy lease rejections, highlighting ongoing tenant credit risks.
- Anchor occupancy dipped 10 basis points quarter-over-quarter to 97.8%, despite being up 110 basis points year-over-year, indicating some volatility in larger tenant spaces.
- The sale of The Milton at a 4.9% cap rate, while a positive proof point, may signal that the company is monetizing assets at relatively low yields, potentially limiting upside if held longer.
- The company faces a competitive acquisition market, with cap rates compressing across all formats and geographies, making it challenging to find accretive deals.
- The exchangeable notes offering included a share repurchase of $4.1 million shares at $25.38 per share, which could be seen as a defensive measure to mitigate dilution, potentially signaling concerns about stock price appreciation.
- The company expects a $3.8 million charge in the third quarter related to the preferred stock repurchase, which will impact both net income and FFO.
- Same-property NOI growth is expected to accelerate in the back half of the year, but the first half was impacted by lapping bankruptcy activity, indicating potential volatility in earnings.
- The company's dividend payout is at 100% of taxable income, which may limit flexibility for future dividend increases if earnings growth slows.
- The new operating model and AI investments, while promising, carry execution risks and may not deliver the expected margin improvements in the near term.
- The company's reliance on capital recycling and 1031 exchanges to drive growth could be impacted by changes in tax laws or market conditions, affecting the pace of portfolio enhancement.
Operator
Hello, everyone. Thank you for joining us. Welcome to Kimco Realty's second-quarter 2026 earnings conference call.
(Operator Instructions)
I will now hand the conference over to David Bujnicki, Senior Vice President of Investor Relations and Strategy. Please go ahead.
David Bujnicki
Kimco Realty Corp - Senior Vice President - Investor Relations & Strategy
Thank you, all, for joining Kimco's quarterly earnings conference call.
With me today are Conor Flynn, CEO; Ross Cooper, President and Chief Investment Officer; Dave Jamieson, Executive Vice President and Chief Operating Officer; Glenn Cohen, Executive Vice President and CFO; as well as other members of the Kimco leadership team, who are available for Q&A.
Before we begin, some of our comments today may include forward-looking statements, based on management's current beliefs and expectations. These are subject to risks and uncertainties described in our SEC filings.
Actual results may differ materially. We assume no obligation to update any forward
Already have an account? Log in
Get the full story
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
7-Day Free Trial · Cancel Anytime
Subscription fee may be tax deductible.
Excellent 
4.6 out of 5 
Trustpilot
Trustpilot
Survey
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
Follow Us
Disclaimers