KIM

Business Context and Reporting Period

Company: Kimco Realty Corporation (Kimco) and Kimco Realty OP, LLC (Kimco OP).
Reporting Period: Quarterly period ended June 30, 2026 (Q2 2026).
Business Overview: Kimco is a leading owner and operator of high-quality, open-air, grocery-anchored shopping centers and mixed-use properties in the United States. As of June 30, 2026, the Company had interests in 564 U.S. shopping center properties aggregating 99.5 million square feet of gross leasable area (GLA). The Company operates as a Real Estate Investment Trust (REIT).

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue Growth: Total revenues increased by $47.0 million (4.4%) for the six months ended June 30, 2026, compared to the same period in 2025. This was driven by a net increase in revenues from tenants ($35.4 million) and higher amortization of above/below-market leases ($7.5 million).
• Net Income: Net income available to common shareholders increased by $22.6 million (8.0%) year-over-year for the six-month period, primarily due to higher rental revenues and increased equity in income from joint ventures.
• Operating Expenses: Operating and maintenance expenses increased by $9.7 million, largely due to higher snow removal costs ($4.3 million) and utility expenses ($3.4 million). Real estate taxes increased by $7.6 million due to higher assessed values.
• Depreciation: Depreciation and amortization decreased by $9.3 million, primarily due to fully depreciated assets and write-offs from demolition and dispositions.
• Joint Venture Income: Equity in income of joint ventures increased by $10.6 million, driven by a $9.2 million gain on the sale of an operating property within a joint venture.
• Same Property NOI: Increased by 2.6% ($20.1 million) for the six months ended June 30, 2026, reflecting strong leasing activity and a decrease in credit losses.

Guidance, Outlook, and Management Commentary

• Dividend Increase: On July 28, 2026, the Board declared a quarterly cash dividend of $0.28 per common share, a 7.7% increase from the prior quarter's $0.26.
• Capital Allocation: The Company issued $600.0 million in exchangeable senior notes in June 2026. A portion of the proceeds ($104.7 million) was used to repurchase 4.1 million shares of common stock. The Company intends to use remaining proceeds for general corporate purposes, debt repayment, and acquisitions.
• Acquisition Outlook: Management anticipates spending approximately $300.0 million to $500.0 million on acquisitions for the remainder of 2026.
• Capital Expenditures: The Company anticipates capital commitments for redevelopment and re-tenanting of approximately $125.0 million to $175.0 million for the remainder of 2026.
• Liquidity: The Company maintains a $2.0 billion unsecured revolving credit facility (with an accordion feature up to $2.75 billion) and a $750.0 million commercial paper program. As of June 30, 2026, there were no outstanding balances on these facilities.
• Risks: Management highlights risks related to economic conditions, inflation, interest rates, tenant bankruptcies, and the impact of e-commerce on retail demand.

Investor Verification Checklist

• Debt Maturities: Verify the repayment plan for $773.4 million of consolidated debt maturing in 2026.
• Impairment Charges: Review the $5.6 million impairment charge related to a preferred stock investment following an investee's bankruptcy restructuring.
• Leasing Activity: Confirm the sustainability of the 3.5% increase in Same Property NOI driven by minimum rent increases and reduced credit losses.
• Share Repurchases: Monitor the remaining $688.1 million available under the common share repurchase program and the impact of the recent $104.7 million buyback.
• Joint Venture Gains: Assess the one-time nature of the $9.9 million gain on sale of a joint venture property included in equity income.