Kimco Realty Corporation KIM reported first-quarter 2026 funds from operations (FFO) of 46 cents per share, topping the Zacks Consensus Estimate of 45 cents by 2.22%. The metric increased 4.5% from the year-ago quarter. Total consolidated revenues of $558 million rose 4% year over year and surpassed the consensus mark of $543.1 million by 2.75%.
Results were supported by steady rent growth and continued demand for Kimco’s open-air, grocery-anchored centers, with pro-rata leased occupancy ending the quarter at 96.3%, up 50 basis points year over year.
KIM’s Revenue Mix Shows Steady Momentum
Net revenues from rental properties increased to $552.8 million from $531.3 million in the year-ago quarter, reflecting improved property-level performance. Management attributed the year-over-year lift in consolidated revenues from rental properties to higher minimum rents and stronger reimbursement income.
Expense pressures were evident but manageable. Operating and maintenance costs rose to $95.2 million from $89.6 million, and real estate taxes increased to $72.8 million from $69.9 million. General and administrative expense also ticked up to $37.2 million from $34.4 million, reflecting higher costs relative to the prior-year period.
KIM's Leasing Gains Drive Rent Spreads
Kimco signed 4.4 million square feet during the quarter across 576 leases, reflecting broad-based tenant demand. On comparable spaces, blended pro-rata cash rent spreads were 11.3%, with new leases up 23.8% and renewals and options rising 12% and 7.9%, respectively.
The operating backdrop also remained constructive. Pro-rata anchor occupancy was 97.9% at quarter end, up 50 basis points year over year, while pro-rata small shop occupancy improved 80 basis points year over year to 92.5%. Kimco also posted a record leased-to-economic occupancy spread of 410 basis points, representing a $77 million increase in future annual base rent.
KIM’s Portfolio Activity
The company sold two ground-leased parcels, namely, Lowe's Home Improvement at Mission Bell Shopping Center in Tampa, FL, for $22.8 million and the Walmart and Sam's Club at Dulles Town Crossing in Sterling, VA, for $24.3 million. The proceeds were used in a reverse 1031 exchange to help fund the December 2025 acquisition of the common member interests in The Shoppes at 82nd Street.
Under Kimco’s Structured Investment Program, it invested $76.4 million in new capital, partially offset by $38.5 million in mezzanine loan repayments.
KIM Strengthens Liquidity With New Funding Tools
Kimco exited the quarter with approximately $2.2 billion of immediate liquidity, including full availability on its $2.0 billion unsecured revolving credit facility and roughly $170 million of cash, cash equivalents and restricted cash on the balance sheet. The company also maintained investment-grade credit ratings (A- at S&P and Fitch, A3 at Moody’s).
During the quarter, Kimco completed a recast of the $2 billion unsecured revolving credit facility, which carries an initial maturity of March 17, 2030, with expansion capacity up to $2.75 billion through an accordion feature. Management also launched a $750 million commercial paper program to add short-term financing flexibility, complementing the REIT’s broader funding toolkit.
KIM Raises 2026 FFO View
Kimco updated its 2026 outlook, raising the low end of expected FFO per share to a range of $1.81-$1.84 from the prior $1.80-$1.84. The Zacks Consensus Estimate of $1.82 lies within the guidance.
Kimco’s full-year outlook is based on the same property NOI growth of 2.8%-3.5%, from the previous 2.5%-3.5%. Property acquisitions, net of dispositions, guidance remains unchanged within $300 million to $500 million.
KIM’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
Kimco Realty Corporation Price, Consensus and EPS Surprise
Kimco Realty Corporation price-consensus-eps-surprise-chart | Kimco Realty Corporation Quote
Upcoming Earnings Releases
We now look forward to the earnings releases of other retail REITs, such as Federal Realty Investment Trust FRT and Simon Property Group SPG, which are slated to report on May 1 and 11, respectively.
The Zacks Consensus Estimate for Federal Realty Investment Trust’s first-quarter 2026 FFO per share is pegged at $1.82, implying a 7.06% year-over-year increase. FRT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Simon Property Group’s first-quarter 2026 FFO per share is pinned at $2.98, indicating a 1.02% rise year over year. SPG currently has a Zacks Rank #2.
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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This article originally published on Zacks Investment Research (zacks.com).