Kimco Realty Corporation KIM is slated to report second-quarter 2026 results on Aug. 4, before the opening bell. The company’s quarterly results are likely to display year-over-year growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this Jericho, NY-based retail real estate investment trust (REIT) reported FFO per share of 46 cents, which surpassed the Zacks Consensus Estimate by a cent. Results were supported by steady rent growth and continued demand for Kimco’s open-air, grocery-anchored centers.
Over the preceding four quarters, Kimco’s FFO per share surpassed the Zacks Consensus Estimate on three occasions and met in the remaining period, the average beat being 1.72%. This is depicted in the graph below:
Kimco Realty Corporation Price and EPS Surprise
Kimco Realty Corporation price-eps-surprise | Kimco Realty Corporation Quote
In this article, we will dive deep into the U.S. retail real estate market environment and the company's fundamentals and analyze the factors that may have contributed to its second-quarter 2026 performance.
US Retail Real Estate Market in Q2
The second-quarter 2026 U.S. retail market showed signs of stabilization, as shopping-center demand returned to positive territory and vacancy remained near historically low levels. Limited new construction continued to support rent growth, while resilient consumer spending favored grocery, discount and other value-oriented retailers. However, uneven regional trends and rising pressure on lower- and middle-income households kept the operating backdrop mixed.
Per the Cushman & Wakefield report, net absorption reached 708,000 square feet, while national vacancy remained broadly stable at 6%, up only 3 basis points sequentially and still below the historical average of 7.4%. Limited construction continued to support market fundamentals, with just 2.3 million square feet delivered during the quarter and the development pipeline accounting for less than 0.3% of existing inventory.
Asking rents increased 2.2% year over year to $25.65 per square foot, supported by tight availability and muted new supply. The West led demand growth with 1.3 million square feet of positive absorption and was the only region to record a decline in vacancy. In contrast, the South posted a slight rise in vacancy as earlier population growth encouraged new development, creating temporary lease-up pressure in markets such as Atlanta, Houston, Washington and Dallas-Fort Worth. Rents in the South advanced 3.3% year over year, the strongest growth among all regions.
Consumer spending remained resilient despite higher energy costs. Retail sales rose 6.9% year over year, or 5.4%, excluding gasoline stations, while unemployment stayed low at 4.2%. However, inflation outpaced wage growth in April and May, increasing pressure on lower- and middle-income households. This widening spending divide is likely to favor grocery, discount, value and health-and-wellness retailers over discretionary categories.
Factors to Consider Ahead of KIM’s Upcoming Results
Kimco’s second-quarter performance is likely to have witnessed continued strength in its grocery-anchored, necessity-based portfolio, supported by limited new retail supply, high tenant retention and healthy leasing demand. Management entered the second quarter with a record $77 million signed-but-not-open pipeline and indicated that leasing activity remained on pace with the prior year.
Rent commencements scheduled from the second quarter onward should begin lifting economic occupancy, minimum rents and same-property NOI, while positive mark-to-market spreads and strong small-shop demand may provide additional support. Management expects same-site NOI growth to accelerate sequentially after the first quarter’s 1.7% increase.
However, second quarter comparisons may be affected by the absence of the first quarter’s roughly $7 million accelerated below-market rent benefit and seasonally higher percentage-rent income.
Occupancy could also remain constrained by recent bankruptcies, tenant openings that have not yet commenced rent and redevelopment-related downtime. Higher refinancing costs remain a headwind, although Kimco’s strong liquidity and improved leverage should limit near-term pressure.
Q2 Projections for KIM
The company’s top line is expected to have improved due to the above tailwinds. The Zacks Consensus Estimate for KIM’s quarterly revenues stands at $545 million, implying 3.8% growth from the prior-year reported number.
Our estimate for net revenues from rental properties stands at $540 million, indicating a 3.6% increase year over year. However, we expect KIM’s leased occupancy to decrease 40 basis points sequentially to 95.9% in the to-be-reported quarter. We estimate a year-over-year increase of 3.4% in its second-quarter interest expenses.
Before the second-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly FFO per share has remained unchanged at 46 cents for more than three months. It implies a rise of 4.6% year over year.
What Our Quantitative Model Predicts for KIM
Our proven model predicts a surprise in terms of FFO per share for Kimco this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.
Kimco currently has an Earnings ESP of +0.63% and a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are two other stocks from the retail REIT sector — Regency Centers REG and Simon Property Group SPG — that you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter.
Regency Centers, slated to release quarterly numbers on July 29, has an Earnings ESP of +0.68% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Simon Property Group, scheduled to report quarterly numbers on Aug. 10, has an Earnings ESP of +1.21% and carries a Zacks Rank of 3 at present.
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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Kimco Realty Corporation (KIM): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).