Summary of Kimco Realty Corporation Q4 2025 Earnings Call

1Key Financial Results and Metrics

Funds from Operations (FFO): Q4 FFO was $294.3 million ($0.44 per diluted share), a 4.8% increase year-over-year. Full-year FFO reached approximately $1.2 billion ($1.76 per diluted share), reflecting a 6.7% increase from 2024.

Same-Property NOI Growth: Achieved 3% growth for both Q4 and the full year.

Portfolio Occupancy: Overall occupancy reached 96.4%, matching an all-time high, with small shop occupancy at a record 92.7%.

Credit Rating: Upgraded to A- by Moody's, positioning Kimco among only 13 REITs with multiple A-level ratings.

Free Cash Flow: Generated over $165 million after dividends and leasing costs, enhancing self-funding capabilities.

2Strategic Updates and Business Highlights

Leasing Activity: Record new leasing volume of 1.2 million square feet in Q4, including 30 anchor leases, the highest in company history.

Capital Recycling Strategy: Plans to sell $300 million to $500 million in lower-growth assets, including ground leases, to reinvest in higher-growth opportunities.

Operational Efficiency: Transitioning to a national leadership structure to streamline operations and reduce G&A expenses by $3 million.

Digital Transformation: Initiatives underway to enhance operational efficiencies through automation and technology integration.

3Forward Guidance and Outlook

2026 FFO Guidance: Expected range of $1.80 to $1.84 per share, representing 2.3% to 4.5% growth over 2025.

Same-Property NOI Growth: Projected growth between 2.5% to 3.5%, with expectations for a strong second half of the year.

Acquisition and Disposition Activity: Anticipating net neutral activity with a focus on high-return opportunities, including structured investments.

4Bad News, Challenges, or Points of Concern

Market Competition: Increased competition for open-air retail assets may affect acquisition strategies and pricing.

Credit Loss Assumptions: Starting the year with a credit loss assumption of 75 to 100 basis points, reflecting potential risks in tenant health.

Economic Headwinds: Acknowledged potential impacts from macroeconomic disruptions and the need to manage low coupon maturities effectively.

5Notable Q&A Insights

Special Dividend Considerations: Management discussed the potential for a special dividend if capital gains from dispositions cannot be shielded through 1031 exchanges.

Tenant Health: The credit quality of tenants is reportedly strong, with notable improvements in previously troubled retailers.

Capital Allocation Strategy: Emphasis on prioritizing leasing and redevelopment opportunities, while being selective in acquisitions due to competitive pressures.

Ground Lease Portfolio: Management indicated a strong appetite for dispositions in this segment, which constitutes about 9% of annual base rent. Overall, Kimco Realty Corporation demonstrated solid financial performance in 2025, with a strong outlook for 2026 driven by operational momentum and strategic capital recycling initiatives, despite facing competitive pressures and potential economic headwinds.