Kimco reported a strong 2025 with record occupancy and FFO growth, and provided an optimistic 2026 outlook. Management highlighted a robust leasing environment, a record signed-not-opened pipeline, and plans for aggressive capital recycling to close the gap between public and private market valuations. 2025 FFO per share was $1.76, up 6.7% YoY, and Q4 FFO per share was $0.44.
Kimco reported a strong 2025 with record occupancy and FFO growth, and provided an optimistic 2026 outlook. Management highlighted a robust leasing environment, a record signed-not-opened pipeline, and plans for aggressive capital recycling to close the gap between public and private market valuations. 2025 FFO per share was $1.76, up 6.7% YoY, and Q4 FFO per share was $0.44.
Kimco reported a strong 2025 with record occupancy and FFO growth, and provided an optimistic 2026 outlook. Management highlighted a robust leasing environment, a record signed-not-opened pipeline, and plans for aggressive capital recycling to close the gap between public and…
2025 FFO per share was $1.76, up 6.7% YoY, and Q4 FFO per share was $0.44.
Portfolio occupancy reached an all-time high of 96.4%, with small shop occupancy at a record 92.7%.
Record quarterly leasing volume of 1.2M sq ft and a record 'snow' pipeline of 390 bps ($73M ABR).
Management is bullish, citing record occupancy, a strong leasing pipeline, limited new supply, and a plan to close the gap between public valuation and private market prices. Guidance calls for continued FFO growth and acceleration in same-property NOI through 2026.
Management guided 2026 development and redevelopment investment between $100 million to $150 million, with capitalized lease-related and maintenance spending of $275 million to $300 million. They are also investing in digital transformation and platform modernization to drive efficiency, though specific capex for these initiatives was not quantified.
Management emphasized record operational milestones, strong tenant demand, and a clear strategy to close the public-private valuation gap, reflecting optimism in their positioning and outlook.
“we believe we can sell assets across our portfolio at a blended cap rate in the 5% to 6% range, which compares favorably to our implied cap rate in the low to mid 7% range, representing a clear value creation opportunity.”
“The impressive deal volume has helped grow the snow pipeline to a record 390 basis points, representing $73 million of annual base rent. This is an increase of $17 million, or 30% higher than the prior year's level.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| Capex | FY2026 | $0.375B–$0.45B | $0.4125B | INITIATED |
| EPS | FY2026 | $1.80–$1.84 | $1.82 | INITIATED |
| Op margin | FY2026 | 2.5%–3.5% | 3% | INITIATED |
Lowe's is utilizing ground lease structures to optimize its real estate, indicating a strategic focus on capital allocation.
“we're actually still doing deals with Walmart, with Home Depot, with Lowe's, with Target across the portfolio in similar structures where we set it up as a long-term ground lease”
Hi, good morning. This is Ravi Vaidya on the line for Hyundai. I hope you guys are doing well. I wanted to ask about the ground lease portfolio. How large is this segment within the overall portfolio, and what is the appetite, cadence, and forecast for dispositions within this category going forward? Thank you.
I think the nice part about the program is that it's recurring and we're able to backfill that pipeline going forward. Because when you think about the 9% that Ross outlined, we're actually still doing deals with Walmart, with Home Depot, with Lowe's, with Target across the portfolio in similar structures where we set it up as a long-term ground lease and are separately parceling that off. So in essence, the shopping center, has many different components to it. Some are growthier pieces than others. And this is a component that we see in the market today as being one that's priced very aggressively, but doesn't really drive any enhancement to our same-site NOI. And if we recycle it correctly, we think it can enhance FFO as well as same-site NOI. So it's a nice recurring program. We've got our development team working on separately parceling all of them out. We have the whole pipeline of opportunities. And as I mentioned earlier, the cadence is really of when they're ripe for disposition, meaning like we have the right tenor in terms of length of lease term, as well as separately parceled so that it hits the sweet spot of where the investors are looking for that credit investment.
Target being a key tenant in this newly acquired asset highlights its stable presence in high-quality shopping centers, reinforcing its reliance on physical stores.
“Shops at 82nd is located in an exceptionally dense infill market and is a grocery anchored center with a strong tenant roster, including Target, Chick-fil-A, Chipotle, Starbucks, and Northwell Medical.”
Thank you, Dave. I'll begin with a brief recap of fourth quarter capital allocation, then turn to our 2026 expectations. The fourth quarter was active as we continued to execute on our strategy and capital plan. This was highlighted by the conversion of another structured investment with the acquisition of the common member's interest in shops at 82nd Street in Jackson Heights, Queens, New York. Shops at 82nd is located in an exceptionally dense infill market and is a grocery anchored center with a strong tenant roster, including Target, Chick-fil-A, Chipotle, Starbucks, and Northwell Medical. Having initially invested preferred equity in this asset in 2021, we exercised our right of first offer slash refusal, which culminated in buying our partner's interest and retaining the property in Kimco's long-term portfolio. We utilized this property to complete a 1031 exchange, deferring tax gains from the continued sale of long-term, flat ground leases from the portfolio. This dovetailed well with our capital recycling strategy that we laid out last year, selling lower growth assets at compelling private market cap rates and reinvesting into higher growth, better yielding investments. …
Kimco plans to aggressively sell assets (including ground leases) at cap rates of 5-6% and redeploy into higher-growth properties, explicitly closing the gap between its implied public cap rate (low-to-mid 7%) and the private market. — This signals potential large-scale capital recycling, which could accelerate tenant rotation and lead to significant new leases for expanding retailers.
“In one example, we're actually replacing one of the boxes with Sprout's.”
Hey, good morning, everyone. I just want to go back to the 47 anchors that have the large mark to market. Those are some nice spreads, but are you looking to replace any of those tenants, bring in a better tenant that drives more traffic, and do any of these unlock any redevelopments?
Yeah, that's a great question. So when I do say in terms of resolve, that is either continuing to renew the tenant in place or reposition the box itself for either redevelopment or a higher quality credit tenant. So in one example, we're actually replacing one of the boxes with Sprout's. In South Miami, a repositioning the entirety of the asset, so that is a redevelopment that's underway that's going to create significant upside for the remainder of the small shop activity and completely transform the site, which we're extremely excited about. And then in terms of a repositioning, we took what was a watch list tenant at natural exploration and backfilled that with total wine. which is another great example, which there's huge market-to-market opportunity there, and repositioning more complementary to what the remainder of that asset was really showcasing in terms of its direction. So we look at all of the available options and then make sure that we're making the best, obviously, economic deal, one, but two, choosing the best quality credit that will have the greatest impact long-term for the asset. In several of these cases, it's really transitioning, transforming the asset from what it was to what it could be going forward.
Kimco plans to aggressively sell assets (including ground leases) at cap rates of 5-6% and redeploy into higher-growth properties, explicitly closing the gap between its implied public cap rate (low-to-mid 7%) and the private market. — This signals potential large-scale capital recycling, which could accelerate tenant rotation and lead to significant new leases for expanding retailers.
“one of which is now off, is Michaels, where they've really been opportunistic in trying to restructure their capital stack. They had a... great year last year in terms of repositioning their value proposition”
Kimco plans to aggressively sell assets (including ground leases) at cap rates of 5-6% and redeploy into higher-growth properties, explicitly closing the gap between its implied public cap rate (low-to-mid 7%) and the private market. — This signals potential large-scale capital recycling, which could accelerate tenant rotation and lead to significant new leases for expanding retailers.
“The most recent example of this is in the fourth quarter package deal with Ross Dress for Less, in which we signed six leases that were completed within 30 days from approval to execution.”
… This effort enabled us to recognize $31 million in rent commencements during 2025, a figure that exceeded our initial budget by 15%. Our success in 2025 was also driven by new approaches to our targeted leasing strategy, which is best exemplified by the package deals. During the year, we completed 10 package deals totaling nearly 60 leases and representing over 20% of the total GLA for all new leases signed in 2025. The most recent example of this is in the fourth quarter package deal with Ross Dress for Less, in which we signed six leases that were completed within 30 days from approval to execution. Both sides, motivated by a shared goal to efficiently expand the partnership, worked collaboratively with residual benefit that would expedite the store opening strategy for Ross while allowing us to increase our economic occupancy over time. A key initiative in 2026 is to further expand these efforts and fully optimize our advantages of scale. This includes shifting away from the regional organizational framework to a functionally aligned operating model, enabling us to drive further operating efficiencies. Most importantly, this change will not result in any incremental costs …
Kimco's A3 rating from Moody's signals a strong balance sheet and lower credit risk, which is a positive but expected development for the rating agency's business.
… what we delivered in 2025 and how we're positioned to drive value in 2026. Dave Jamison will provide additional color on our leasing activity. We'll also then discuss the transaction market, and Glenn will wrap up with a review of our key financial metrics and guidance. 2025 was another banner year for Kimco. We delivered NAREIT FFO per share growth of 6.7%, making us one of the only shopping center REITs to achieve over 5% FFO growth in 2024 and over 6% in 2025. We also earned a credit rating upgrade to A- for Moody's during the fourth quarter. reflecting our disciplined approach to the balance sheet. Kimco is now one of only 13 REITs in the entire REIT industry, with multiple A minus A3 ratings from the three rating agencies, a notable milestone in our transformation into one of the lower levered REITs while still accelerating earnings growth. This is a rare accomplishment in the REIT world, and it speaks to the strength of our team, our portfolio, and our execution. Operationally, our performance was equally strong, achieving a number of record milestones, including overall portfolio occupancy of 96.4%, matching our all-time high, our highest quarterly new leasing volume in …