Earnings call transcript: Kimco Realty tops Q2 2026 estimates, lifts outlook

Oil prices turn lower as Bessent says U.S. may have Iran deal "today or tomorrow"

Kimco Realty reported second-quarter 2026 earnings that topped Wall Street expectations, helped by stronger leasing, record occupancy and improving credit trends. The shopping-center owner posted adjusted earnings of $0.22 a share on revenue of $550.8 million, compared with analysts’ estimates for $0.20 a share and $543.57 million in revenue. The stock fell 1.46% to $25.04 in premarket trading, after closing at $25.41, leaving it near the upper end of its 52-week range.

Key Takeaways

• Kimco beat estimates on both earnings and revenue in the second quarter.
• Same-property net operating income rose 3.5%, supported by higher minimum rents and stronger recovery income.
• Leasing remained strong, with new leases signed at a 40.4% blended spread.
• Occupancy reached record or near-record levels across the portfolio.
• Management raised full-year guidance for FFO, same-property NOI and credit performance.

Company Performance

Kimco said its business continued to benefit from strong demand for grocery-anchored shopping centers and a resilient consumer base. Funds from operations per diluted share rose to $0.46 from $0.44 a year earlier, while total FFO increased to $309.2 million from $297.6 million.

The company said portfolio occupancy held at 96.4% on a pro rata basis, matching an all-time high, even after absorbing the impact of bankruptcy-related lease rejections at Painted Tree. Small-shop occupancy reached a record 92.9%, and anchor occupancy stood at 97.8%.

Traffic across Kimco’s centers rose 3% from a year earlier, including 3.2% growth in June. Management said spending trends remained positive across income groups, with middle-income spending up 5.5% and low-income spending up 3.5%.

Financial Highlights

• Revenue: $550.8 million, up from the forecast of $543.57 million.
• EPS: $0.22, above the forecast of $0.20.
• FFO per diluted share: $0.46, up 4.5% from $0.44 a year earlier.
• Total FFO: $309.2 million, up from $297.6 million a year earlier.
• Same-property NOI: up 3.5% for the quarter.
• Credit loss performance: 57 basis points, down from 89 basis points a year earlier.
• Year-to-date credit losses: 54 basis points.
• Pro rata occupancy: 96.4%, at an all-time high.
• Small-shop occupancy: 92.9%, a new record.
• Anchor occupancy: 97.8%, up 110 basis points year over year.

Earnings vs. Forecast

Kimco’s adjusted EPS of $0.22 beat the consensus estimate by $0.02, or 10%. Revenue beat by $7.23 million, or 1.33%, versus expectations.

The earnings beat was modest in dollar terms, but it came with several signs of operational strength. Leasing spreads remained healthy, occupancy stayed near record levels and credit losses improved sharply from a year earlier. That combination suggests the quarter was not just a one-time beat, but part of a broader pattern of steady execution.

The result also fits Kimco’s recent trend of stable operating performance. The company has been benefiting from strong demand for open-air retail space, especially in affluent suburban markets. The latest quarter reinforced that trend.

Market Reaction

Kimco shares were down 1.46% at $25.04 in premarket trading, compared with a previous close of $25.41. The decline of about $0.37 came even after the company reported a beat on earnings and revenue.

The stock remains close to its 52-week high of $26.65 and well above its low of $19.76. That positioning suggests investors have already priced in much of the company’s recent progress. The small decline may reflect profit-taking, caution around real estate valuations or a wait-and-see approach after a strong run.

No unusual trading volume was provided, so it is not possible to determine whether the move was driven by heavy turnover.

Outlook & Guidance

Kimco raised its full-year 2026 outlook. The company now expects FFO per diluted share of $1.83 to $1.84, up from a prior low end of $1.81. It also lifted its same-property NOI growth outlook to 3.0% to 3.5%, from a previous range of 2.8% to 3.5%.

Management tightened its credit loss guidance to 55 to 75 basis points, from 65 to 90 basis points, reflecting stronger tenant credit performance. The company also said lower interest expense and preferred equity dividend assumptions were incorporated into the updated outlook. Kimco’s dividend yield stands at 4.09%, and the company has maintained dividend payments for 35 consecutive years—a track record that underscores its financial stability. InvestingPro assigns Kimco a "Good" financial health score of 2.91 out of 5, reflecting solid fundamentals across profitability and cash flow metrics. Investors seeking deeper analysis can access Kimco’s comprehensive Pro Research Report, one of 1,400+ available on InvestingPro, which transforms complex data into clear, actionable intelligence.

Executives pointed to several growth drivers for the rest of the year, including:

• continued conversion of the signed-but-not-open pipeline,
• further occupancy gains,
• mark-to-market rent growth,
• capital recycling into higher-growth assets,
• and future mixed-use monetization.

Executive Commentary

Chief Executive Conor Flynn said the company has “the right platform, portfolio, and balance sheet to drive sustainable earnings growth,” citing retailer demand, shopper traffic and visible cash flow growth.

He also said Kimco is “still trading at a discount” even though its growth is near the top of the peer group and its balance sheet is among the strongest in the REIT sector.

Chief Financial Officer Glenn Cohen highlighted the company’s financing flexibility, saying Kimco issued $600 million of exchangeable senior notes at a 3.5% coupon and that the move gives the company another tool to expand its investor base.

Operating chief David Jamieson said Kimco signed 461 leases across 2.5 million square feet in the quarter, including 161 new deals at a 40.4% blended spread, which marked the 19th straight quarter of double-digit new leasing spreads.

Risks and Challenges

• Interest-rate pressure: Higher rates can weigh on REIT valuations and financing costs.
• Valuation concerns: Trading at a P/E ratio of 29.36 and a PEG ratio of 2.09, Kimco appears on InvestingPro’s Most Overvalued list, suggesting limited upside from current levels despite strong operational performance.
• Retail bankruptcies: Past bankruptcies such as Party City, Joann and Big Lots still affect comparisons and occupancy trends.
• Cap rate compression: Aggressive pricing in the market may make acquisitions harder to underwrite.
• Consumer slowdown: Kimco’s results depend on resilient household spending, which could weaken if the economy slows.
• Execution risk: The company’s growth plan relies on capital recycling, mixed-use monetization and lease-up of signed-not-open space.

Q&A

Analysts focused on capital recycling, second-half FFO trends, mixed-use monetization and the impact of Kimco’s new operating model.

• how much transaction activity to expect in the back half of 2026,
• whether the second-half FFO profile would look flat despite stronger activity,
• how Kimco plans to monetize residential and mixed-use projects,
• and whether the new “One Kimco” structure will improve margins and execution.

Management said the company expects more acquisition activity later in the year, while also continuing to sell low-growth assets and ground leases. Executives said the new operating model should improve accountability and speed, and that AI investments are already producing expense savings.

Analysts also pressed on the signed-but-not-open pipeline, traffic trends by income group and the outlook for small-shop occupancy. Management said the pipeline remains ahead of plan and that consumer demand is still strong across income levels.

Full transcript - Kimco Realty Corp (KIM) Q2 2026:

Moderator: Thank you all for joining Kimco’s quarterly earnings conference call. With me today are Conor Flynn, CEO; Ross Cooper, President and Chief Investment Officer; David Jamieson, Executive Vice President and Chief Operating Officer; Glenn Cohen, Executive Vice President and CFO, as well as other members of the Kimco leadership team who are available for Q&A. Before we begin, some of our comments today may include forward-looking statements based on management’s current beliefs and expectations. These are subject to risks and uncertainties described in our SEC filings, and actual results may differ materially. We assume no obligation to update any forward-looking statements. We will also reference non-GAAP financial measures. Reconciliations to GAAP are available in our earnings release and supplemental package, both posted to our IR website along with an accompanying presentation. The same forward-looking caution applies to those materials. Following prepared remarks, we’ll open the call to Q&A.

To allow a smooth and efficient call, please limit yourself to one question and re-queue for follow-ups. With that, I’ll turn the call over to Conor.

Conor Flynn, Chief Executive Officer, Kimco Realty: Good morning, thanks for joining us. Today, I’ll walk you through our solid second quarter results, which continue to validate our growth strategy and the strength of our portfolio, platform, and operating model. Dave will cover our leasing accomplishments in detail. Ross will take you through our transaction activity, and Glenn will close with our financial results and updated outlook. We delivered another strong quarter with FFO per diluted share of $0.46, up 4.5% year-over-year, and same-property NOI growth of 3.5%, driven by higher minimum rents and stronger net recoveries. Small shop occupancy reached a new record of 92.9%, while overall pro-rata portfolio occupancy matched our all-time high at 96.4%, even after absorbing a 16 basis points impact from the Painted Tree bankruptcy lease rejections. These results reinforce the depth of demand across the portfolio, with the growth potential stronger than the headline numbers suggest.

Leasing remained one of the clearest indicators of demand for our portfolio. Across the quarter, we continue to see retailers compete for space in high-quality, open-air grocery anchored centers with demand outpacing available supply as new shopping center development remains limited across our markets. Dave will cover the detailed leasing metrics, but the broader takeaway is that our centers continue to attract growing retailers, drive strong rent growth, and benefit from positive shopper traffic and healthy tenant sales. That trend remained evident during the quarter, with foot traffic across our centers increasing 3% year-over-year, including 3.2% growth in June, and spending across our tenant base also remains robust. With respect to our mixed-use portfolio, I want to share a meaningful proof point and what it means for future value creation.

During the quarter, we completed the sale of The Milton, a 253-unit multi-family building at our Pentagon Centre mixed-use property in Pentagon City, Virginia. The sale of The Milton marks an important milestone for our mixed-use platform and our first full-cycle monetization of a ground-up multi-family development within our value-add redevelopment program. The transaction provides a tangible proof point of the embedded value we can create by entitling, developing, stabilizing, and then selectively monetizing mixed-use assets at the right time. Ross will provide more detail. The broader message is clear. Our mixed-use platform is another meaningful source of long-term value creation. Our capital recycling program continues to be an integral and recurring part of our strategy. Recent asset sales and ground lease monetizations demonstrate our ability to harvest value from low-growth assets and redeploy capital into shopping center investments with stronger long-term growth prospects.

This approach enhances the quality of the portfolio, supports future earnings growth, and allows us to create value without depending solely on external capital. This strategy was further illustrated by the acquisition of two high-quality shopping centers in Florida, utilizing 1031 exchange proceeds. We purchased Pompano Marketplace, a Walmart-anchored center in Pompano Beach, Florida, for $53 million, marking the third acquisition sourced through our structured investment program, a differentiated platform unique to Kimco. The other center was Sunshine Plaza, a Publix-anchored center in a first-ring suburb of Fort Lauderdale, Florida, for $56 million. On the balance sheet, it remains a clear competitive advantage for Kimco. Glenn will provide more detail on our recent capital markets activity, including our inaugural $600 million exchangeable notes at an attractive 3.5% coupon.

The key point is that our liquidity position, access to capital, and investment-grade profile give us the financial flexibility to remain opportunistic and play offense while maintaining discipline in the current environment. Lastly, reflecting on our strong first-half performance, improved visibility into the balance of the year, and confidence in the underlying strength of the portfolio, we are raising the midpoint of our full-year outlook. In addition, our board has increased the quarterly common cash dividend by 12% over the prior year, supported by our strong operating performance, earnings growth and rising taxable income, and confidence in the company’s long-term growth outlook. Together, these actions underscore the durability of our cash flows and commitment to delivering long-term value for our shareholders. In conclusion, I want to thank our entire team. The second quarter only reinforced what we believed at the very start of the year.

Kimco has the right platform, portfolio, and balance sheet to drive sustainable earnings growth. Strong retailer demand, positive shopper traffic, visible cash flow growth from our sizable signed but not open pipeline, accretive capital recycling, and disciplined balance sheet management all position us to continue creating long-term value for shareholders. With that, I’ll turn it over to Dave to cover leasing in more detail.

David Jamieson, Executive Vice President and Chief Operating Officer, Kimco Realty: Thanks, Conor. I’ll cover second quarter leasing results, occupancy trends, the SNO pipeline, and the launch of our new operating model, all of which continue to support the growth trajectory we laid out last quarter. We signed 461 leases across 2.5 million square feet in the second quarter at a blended spread of 13.1%, bringing our total leased for the first half of the year to over 7 million square feet. New leasing activity remained a clear standout, with 161 deals covering 685,000 pro rata square feet at a blended spread of 40.4%, marking our 19th consecutive quarter of double-digit new leasing spreads. This quarter included several notable lease transactions that highlight the strength of tenant demand and our ability to enhance the merchandising mix across the portfolio.

On the anchor side, we replaced a former Rite Aid with Teso Life, a Japanese-inspired home goods retailer at Marketplace of Victoria. At our Woodlawn Marketplace in Charlotte, North Carolina, we added Lowes Foods, bringing a new grocery component to the site. Within our lifestyle portfolio, we signed our first ever Uniqlo lease, further validating the appeal of that segment of our business and the growing interest we’re seeing from leading retailers. On the non-anchor side, leasing activity remained broad-based with particular strength seen in service-oriented tenants, including fitness, health and wellness, restaurants, and professional services. This includes several solid core leases that not only complemented our lifestyle portfolio, but also were a nice addition to our core grocery community assets, which further demonstrates the leverage of our operating platform and our ability to cross-pollinate between the lifestyle and core assets.

Our package leasing initiative also continued to gain momentum this quarter, signing 7 deals with 2 retailers that further enhanced small shop occupancy. This disciplined approach is helping us accelerate deal velocity, capture efficiencies of scale, and deepening relationships with growing retailers. Together, these deals reflect what we continue to see across the portfolio. Today’s retailers are willing to pay premiums for our high-quality locations, and they’re actively upgrading our merchandising mix in the process. Renewals and options totaled 300 deals across 1.9 million square feet at a blended spread of 7%, comprising 6.1% on renewals and 8% on options. This is another clear example of the health and stickiness of our portfolio, with retention remaining at historically high levels as tenants continue to prioritize our open air grocery anchored locations.

Small shop occupancy hit a new record high of 92.9%, and we continue to see room for further occupancy gains as demand for smaller format space remains exceptionally strong. Anchor occupancy only dipped 10 basis points quarter-over-quarter to 97.8%, despite a 23 basis point impact from Painted Tree, but remains up 110 basis points year-over-year. Turning to our SNO pipeline, economic occupancy increased by 20 basis points to 92.4%. The pipeline now represents $95 million in annual base rent, of which $75 million is incremental and 48% of that is projected to commence by the end of the year. Importantly, this pipeline continues to track ahead of our original plan, with construction and leasing tightly coordinated to keep converting signed leases into cash paying rent as quickly as possible.

In terms of the actual cash flow from rent commencements, we are now projecting $33 million to be received in 2026, which is 16% higher than our initial estimate. The timing of the rent commencement includes $24 million from tenants that opened in the first half of the year, with an additional $9 million projected for the back half of 2026. Effective July 1, we launched our new operating model, moving from a regional structure to a nationally aligned functional team organized around our assets. It sharpens accountability around the metrics that drive value, brings greater consistency across the portfolio, and accelerates execution. This leverages the scale of our national platform without adding incremental cost. We expect the benefits to build over time through improved FFO growth, same-property performance, leasing productivity, and margin expansion. That structural change is the most visible piece of a broader effort we call One Kimco.

Alongside it, we are investing in the operating infrastructure behind it. First, a unified data platform that brings our portfolio, leasing, and property data into one place. Second, AI tools that are helping automate routine workflows. Third, modern collaboration tools we are rolling out across the organization. Taken together, this is how we build durable operating leverage, converting the scale of our platform into speed and margin. To sum up, leasing demand remains healthy. Spreads continue to run solidly double digits. Small shop occupancy reached a new all-time high, and our SNO pipeline continues to convert into cash flow growth. Combined with continued momentum in package leasing, growing retailer interest in our lifestyle portfolio, and a more focused operating model, we believe the setup for the back half of the year remains strong. With that, I will turn it over to Ross for an update on the transaction market.

Ross Cooper, President and Chief Investment Officer, Kimco Realty: Thank you, Dave, and good morning all. As anticipated, we had an active second quarter and followed that up with a busy July. Our transaction execution has been quite strong and we expect it will continue through the rest of the year. While the market is as competitive as ever, we are utilizing preexisting relationships, contractual purchase rights in the forms of right of first offers and right of first refusals, and JV relationships to find accretive opportunities for external growth. Simultaneously, we are benefiting from aggressive pricing as the market continues to place substantial value on highly stable, lower growth assets that do not fit our long-term growth objectives. Paired together, this capital recycling strategy we put in place is truly helping to enhance the growth trajectory of the portfolio looking forward.

I want to add some additional color on a few of the sales Conor highlighted to showcase the benefits and rationale. The monetization of the multifamily building The Milton is part of our Pentagon Centre mixed-use project that we developed in a partnership with CPPIB. It is a true reflection of the bottoms-up approach that we have taken with the multifamily densification program over the past 10 years. While the real estate was always exceptionally well-located, we viewed the opportunity to create value through a different lens, beginning the formal process of entitling the project for mixed use and selectively and methodically activating two multifamily buildings over the past 10 years. This meaningfully enhanced the value for each component of the project, including the existing retail at this location. We felt this was a good time to crystallize that value and monetize our ownership in the asset.

The first transaction was The Milton at a 4.9% cap rate, emphasizing the tremendous demand in capital available for the best located real estate and the premium that is created with the synergies between well-executed residential and strong-performing retail. We anticipate monetizing the remainder of Pentagon Centre in phases with the second residential tower, The Witmer, most likely next, and the enclosed retail thereafter, but no formal timeline has been determined. As it relates to the flat to low growth lease disposition initiative, the Costco transaction is a prime example of accretive capital recycling. While the face cap rate is important, the bigger benefit of the transaction is the future cash flow growth of the reinvestment. From an investment perspective, the long-term return profile of the Costco assets was materially below that of the properties we acquired.

The Costco leases that were sold had a compound annual growth rate, or CAGR, of under 1%, translating to a sub 6% unlevered IRR based on a 10-year hold, with tenant control on those leases for decades. We were able to take the proceeds from the sale and utilize the 1031 exchange to acquire two grocery-anchored centers in South Florida in a tax-efficient manner with a CAGR for the two assets more than 350 basis points higher than the Costco properties. As such, we turned a sub 6% unlevered IRR into north of a 9% unlevered IRR. Most importantly, these transactions demonstrate how capital recycling can create earnings growth without relying on external equity issuance, while simultaneously improving the long-term growth profile of the portfolio. Additionally, the assets were acquired off-market due to a long-standing relationship with the seller.

One of the two properties, the Pompano Marketplace, was a structured investment that was converted into equity ownership. This is the third acquisition from our structured investment program, all of which were grocery-anchored centers that we intend to hold long term. Further evidence of the program being both an accretive way to get yield and another important avenue for our acquisition pipeline. We expect the capital recycling from low cap rate multifamily and flat to low growth leases to continue, with the proceeds reinvested into higher growth assets that will further enhance our portfolio. I will now pass it to Glenn for the financial results of the quarter.

Glenn Cohen, Executive Vice President and Chief Financial Officer, Kimco Realty: Thanks, Ross, and good morning. As the team has outlined, Kimco delivered another quarter of strong operational and financial performance, highlighted by 4.5% growth in FFO per share, continued improvement in credit trends, and further strengthening of our balance sheet and liquidity position. These results reflect the quality of our portfolio, the resilience of our cash flows, and the benefits of our disciplined capital allocation strategy. I’ll focus on the key drivers behind the quarter, our capital markets activity, the balance sheet, and our outlook. FFO for the second quarter was $309.2 million, or $0.46 per diluted share, compared to $297.6 million, or $0.44 per diluted share in the second quarter of last year. Operationally, the portfolio continues to perform at a high level. Same-property NOI increased 3.5%, driven by the growth in minimum rents, stronger net recovery income, and continued improvement in tenant credit performance.

Credit loss came in at 57 basis points for the quarter, compared to 89 basis points for the second quarter of 2025. Year to date, credit loss is just 54 basis points, reflecting the continued strength and resilience of our retailer base. These operating fundamentals translated into another quarter of FFO growth. Importantly, there were no material one-time adjustments or non-cash items affecting comparability this quarter. Turning to the balance sheet, we ended the quarter with consolidated net debt to EBITDA of 5.2 times or 5.5 times on a look-through basis, including pro-rata JV debt and preferred stock. We ended the quarter with $2.7 billion of total liquidity, including $700 million of cash on hand, much of which will be used to satisfy our upcoming 2026 debt maturities. A few additional details regarding our successful inaugural exchangeable note offering.

On the strength of investor demand, we upsized and issued $600 million of 3.5% exchangeable senior notes due 2031. The notes carry an initial exchange price of approximately $32.36 per share, representing a 27.5% premium to our stock price at issuance and nearly 60% above our stock price at the beginning of the year. In connection with the offering, we repurchased approximately $4.1 million shares of common stock for $104.7 million at $25.38 per share. This structure was deliberately designed to mitigate the potential dilution from the offering while diversifying our capital sources, extending our maturity ladder, and securing an attractive cost of capital. It was also compelling from a capital allocation perspective, given our dividend yield exceeded 4% at the time of the issuance compared to the 3.5% coupon on the notes.

Subsequent to quarter end, we also repurchased 516,750 shares of our 7.25% Class N Convertible Preferred Stock for $33.3 million, funded through the issuance of 549,250 common shares, which was sized to cover the holders’ related hedge positions and $19.6 million of cash. This transaction will result in a charge of approximately $3.8 million in the third quarter, reflected in both net income and FFO. As we look ahead to 2027, we remain exceptionally well-positioned with substantial liquidity and a broad set of financing alternatives, including the unsecured bond market, term loans, commercial paper, and the exchangeable note market. As always, we’ll remain opportunistic with respect to timing and execution. Given our strong first half results, we are raising the lower end of our full-year 2026 FFO outlook to $1.83 per diluted share from $1.81 previously, while maintaining the top end at $1.84.

The revised outlook reflects strong first half operating performance, improving credit trends, and greater visibility into the remainder of the year while still maintaining flexibility for the timing of transactional activity. We are also raising our same-property NOI growth assumption to a range of 3%-3.5%, up from 2.8%-3.5% previously, and tightening our credit loss assumption to 55-75 basis points from the prior level of 65-90 basis points. We’ve also adjusted downward our assumption for interest expense and preferred equity dividends reflecting the financing activity to date. As always, our outlook considers the timing of capital activity, including financing, acquisitions, dispositions, and redevelopment spend, and all other assumptions remain substantially unchanged. I’d also note that the board declared a quarterly cash dividend of $0.28 per common share, or $1.12 on an annualized basis.

The 12% increase over the dividend declared in the third quarter of the prior year reflects continued growth in operating cash flows, earnings, and taxable income. We believe a growing dividend remains an important component of total shareholder return while maintaining the flexibility to invest in future growth opportunities. In closing, the quarter reflected continued operating momentum, disciplined capital allocation, and further balance sheet strengthening. Combined with improving credit trends and significant liquidity, we believe Kimco remains well positioned for the second half of the year to further execute our growth strategy and create long-term value for shareholders. With that, we are happy to take your questions.

Q&A Moderator: We will now begin the question and answer session. Please limit yourself to one question. If you’d like to ask a follow-up question, please rejoin the queue. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Michael Goldsmith with UBS. Michael, your line is open. Please go ahead.

Michael Goldsmith, Analyst, UBS: Hey, good morning. This is Conor here with Michael. Just wanted to touch upon the transaction activity of the capital recycling. Obviously, you guys made a lot of progress in the quarter with activity at ground leases, shop executions apartments, and incorporating the SIP as well. While you didn’t change guidance on the acquisitions and transaction activity, we were just wondering if you’d be able to kind of share your thoughts and provide some color on what we should expect for either a similar level of activity in the back half of the year and maybe just like the mix of transactions that you currently have in the pipeline.

Ross Cooper, President and Chief Investment Officer, Kimco Realty: Sure, Conor. Happy to answer that. Yeah, we’re really excited with the execution thus far. As we’ve talked about at the beginning of the year, the accretive capital recycling is really critical in enhancing the growth profile of the portfolio. Selling some of those Costcos at super aggressive cap rates, recycling that into the grocery anchored assets with a significantly higher growth profile was a great trade

Converting on the value creation of our first multifamily crystallization, I think was an important step. We do anticipate that we’ll see more of that. As I mentioned, The Witmer is the next multifamily project that we would anticipate closing. While we haven’t identified a definitive timeframe, we do think that that will happen this year as well. With that, we feel really confident in some of the sources of future acquisitions that we’ve been working on. Obviously, the dispos have been front-weighted in the first half of this year, but we do anticipate that the activity on the acquisition side will continue to grow here in the back half, and we have a couple of things that we’re excited about that we’re working through. The Structured Investment Program continues to be a source of opportunity.

Not only are we excited about the yields that we’ve been able to achieve within that program, but do believe that the quality of the assets within that book have continued to improve. With the third acquisition from that program taking place with one of those two grocery anchored assets, we think that future acquisitions from that program will continue with quality that we’re really excited about. Then, of course, we continue to have a pretty substantial amount of ground leases to dispose of at low cap rates and low growth profiles that will continue to recycle. We can be pretty methodical with the timing on that. As we’ve talked about tax efficiency and conversion into 1031 exchanges will continue to be an important part of that program.

We feel really good about the execution and think that we can continue to recycle out of the lower growth, lower cap rates, and into some acquisitions that will have significantly enhanced growth profiles. That will continue to the back half of the year and then, of course, into 2027 and beyond.

Michael Goldsmith, Analyst, UBS: Thank you.

Q&A Moderator: Your next question comes from the line of Juan Sanabria with BMO Capital Markets. Juan, your line is open. Please go ahead.

Juan Sanabria, Analyst, BMO Capital Markets: Good morning. Thanks for the time. I guess a question for Glenn. Could you just comment a little bit about the implied FFO in the second half? I think it’s flat. Seems to ROI is set to accelerate. Sounds like you have more acquisition activity also expected, as per Ross’s last answer. I know you called out a $0.01 pref one-timer on the cost side, but just curious on how we should think about the earnings trajectory in the second half. Thank you.

Ross Cooper, President and Chief Investment Officer, Kimco Realty: Sure. Again, we did raise the bottom end of the guidance, lifted it $0.02 from where it was, which gets you to, at the bottom end, 4% growth. The upper end at $1.84 is 4.5% growth. We’re approaching where we’ve been talking about trying to keep up with that 5% growth level. You’re starting to get to those levels. As I did point out, we do have a charge in the third quarter that we’re aware of, that’s about two-thirds of a penny that has an impact on it. You also have, again, the timing of the transaction activity that Ross was talking about. You have some of the dispos ahead of the acquisitions. The good news is the cash that we’re holding on earns about 4%, it’s not zero by any means.

Again, the deployment of that capital and the timing of that kind of plays into the overall guidance activity that we have. We feel really good about where we’re headed, and we’re going to continue to do everything we can to meet what’s there and hopefully try to exceed it.

Q&A Moderator: Your next question comes from the line of Michael Mueller with JPMorgan. Mike, your line is open. Please go ahead.

Michael Mueller, Analyst, JPMorgan: Yeah. Hi. I guess, just going back to the dispositions and resi. Should we think of anything that you develop, in terms of resi or mixed use, as being a higher priority sale at some point down the road, or are there some projects that you would hold on to?

Ross Cooper, President and Chief Investment Officer, Kimco Realty: It’s a good question. I think that the beauty of the program and the way that we’ve structured it is that we have optimal optionality. When we’ve developed these projects, or we’ve structured them in a variety of different ways, you’ve seen us self-develop with a joint venture partner, contribute our land into a JV where our component is sort of structured as pref equity, where we’re able to achieve a return during the development phase, as well as longer term ground leases, as well as selling off the dirt in the form of the entitlements pre-development. We look at each and every one of these projects through a very unique decision tree and make the determination as to how we activate it, what the exit strategy is, what the timing of that is.

We really do retain the right in each and every one of these instances to really control our exit, control our destiny. When you’re in a market like we’re in today, where we’re able to sell The Milton at a 4.9 cap, as well as some of our other multifamily that we know would price in this market at very aggressive cap rates, it’s likely a portion of the market cycle where it makes sense for us to monetize and redeploy. To the extent that we have opportunities with higher yields where we think it makes sense, either in the medium or even long term to own it, we have the ability to do that at the appropriate time if our cost of capital allows for that.

We do view it as a form of currency that we can utilize and sort of pick and match when and if we look to monetize, but we’re going to do that on a case-by-case basis.

Conor Flynn, Chief Executive Officer, Kimco Realty: Michael, I think the key too is the enhancement of the retail. When we look at creating a mixed-use environment, we’re seeing the thesis play out where the retail is driving premiums on the apartments, but the apartments are also driving premiums on the retail. You’re creating that campus environment that enhances each other. The components that we see for the future of Kimco is really unlocking that and enhancing the retail component, and then, as Ross said, having total optionality on the apartment side. We think that the program continues to bear fruit, 14,000 entitlements. We obviously have a laddered opportunity set that we continue to activate, and we continue to see that there’s a lot of untapped potential within the portfolio, and we’re excited about the future.

Ross Cooper, President and Chief Investment Officer, Kimco Realty: Yeah, I would just add that the other thing to keep in mind about the program is we’re doing it in a capital-light manner, which is really, really helpful. We’re not taking major drag on earnings to build these over a two- to three-year period. The preferred equity structure that we’ve created with the partners really has allowed us to build these without having a drag on earnings.

Q&A Moderator: Your next question comes from the line of Andrew Reale with Bank of America. Andrew, your line is open. Please go ahead.

Andrew Reale, Analyst, Bank of America: Good morning. Thanks for taking my question. Maybe just a follow-up on the recycling. These ground leases have basically near zero CapEx, whereas the acquired shopping centers are going to have some leasing and TI requirements. I guess on this 100 basis point spread you lay out, what does year one accretion actually look like on an AFFO basis? Thanks.

Ross Cooper, President and Chief Investment Officer, Kimco Realty: Yeah. It’s a good question, that’s why we also wanted to indicate what the IRR trajectory of these investments is because we look at it through a few different lenses. Clearly, year one from an AFFO standpoint is important, that spread, while it’s going to be anywhere from 50 to 100 basis points, is just one factor. When we think about the CAGR, the trajectory, and the IRR of a 10-year hold, that’s where we’re seeing selling of the ground leases, Costco as the example that we gave being sub 6%, and recycling that, including and factoring in all costs associated with operating a multi-tenant shopping center, where we’re able to generate high eights, low nines for the recycling into the grocery anchor shopping center. You’re seeing that 300 to 350 basis point spread on the IRR inclusive of costs associated with the multi-tenant shopping center.

It’s definitely a good trade for us from the growth trajectory, even factoring in the CapEx-like nature of the ground leases.

Q&A Moderator: Your next question comes from the line of Jamie Feldman with Wells Fargo. Jamie, your line is open. Please go ahead.

Jamie Feldman, Analyst, Wells Fargo: Great. Thanks for taking my question. Traffic trends have been pretty solid. You highlighted 7 consecutive months of spending. Or spending improvement. Can you talk more about the differences you’re seeing in value-oriented versus higher income consumers across the portfolio?

Conor Flynn, Chief Executive Officer, Kimco Realty: Sure. I’m happy to start, and then Dave, you can add some color. When you look at the growth of the traffic, clearly it’s still being led by the high income, highest demographics piece of it, but it’s still positive 2% on the lowest income on demographic as well. I think people are retrenching if you’re in the lower demographic. When you look at Kimco’s portfolio, we sit in that first-ring suburb of really the top major metropolitan areas. Our consumer screens towards that middle to upper end on the income levels. We continue to look and see how our tenants are performing because obviously traffic’s a leading indicator, but we don’t necessarily have the visibility inside the store.

When you look at the credit card spending, when you look at where our retailers are performing and how they’re presenting their store operating plans and their new growth plans, it’s very clear the store base is producing meaningful growth for them. We continue to think that that’s going to showcase with our portfolio reviews, platform deals, and the relationships we have across the retail spectrum.

David Jamieson, Executive Vice President and Chief Operating Officer, Kimco Realty: Yeah. Just to add a couple data points too. On the middle income side, we’re seeing spending up about 5.5%. On the low income side, it’s still about 3.5%. You are seeing increases on the spend side. Complementing what Conor was saying, our shopping centers do cater to all needs on the income spectrum. Dependent on where you are in terms of your discretionary income or the cycle of the market, our diversity of our tenant base helps service that. You’re still going to the grocery store, you still need to eat, so it’s just really dependent on what you buy within the store. It may vary month-to-month, year-over-year, depending on your situation. That’s our intention. Our intention is to always be there for you when it’s needed.

Ross Cooper, President and Chief Investment Officer, Kimco Realty: Yeah, I would just add, the consumer continues to be incredibly resilient, right? They’ve dealt with higher interest rate environment for the last few years. They’ve dealt with higher gas prices. They’ve dealt with higher egg prices throughout it. I think the thing, the saving grace of all of that really has been if you look at where unemployment is. Unemployment has remained incredibly low. Job turnovers remained incredibly low. Again, when you’re sitting and are feeling comfortable that your paycheck’s coming, people continue to spend. We continue to watch that. We’re looking for that crack in it. So far so good.

Jamie Feldman, Analyst, Wells Fargo: Thank you.

Q&A Moderator: Your next question comes from the line of Michael Griffin with Evercore ISI. Michael, your line is open. Please go ahead.

Michael Griffin, Analyst, Evercore ISI: Great. Thanks. On the leasing front, Dave, I’m curious, your SNO spread this quarter came in about 10 basis points from last quarter at 400 basis points. Just given all of the operational initiatives that Kim has been undertaking, getting these tenants open quicker, commencing rents quicker, does it feel like we’ve hit sort of that widest spread between leased and economic occupancy? Can you give us a sense of where you expect that to trend into the back half of the year, and then as we kind of start to think about 2027? Thank you.

David Jamieson, Executive Vice President and Chief Operating Officer, Kimco Realty: I appreciate the question. When you look at the SNO pipeline, obviously it’s the physical occupancy that as we continue to push leasing and we’re able to continue growing physical occupancy, if your economic stays the same, that will widen the spread. As we’re opening tenants and getting them into the cash paying component and growing economic occupancy, it should compress. I think you’re having both initiatives run extremely strong right now. You could see a fairly steady state through the back half of the year, and if our occupancy levels remain high and there’s no bankruptcies or material issues in, say, 2027, you could start to see that compression. I think what’s most important is the conversion to cash flow and the mark-to-market that we’re seeing.

Even on the widening of the spread that we’ve had elevated, when you look at the mark-to-market on the new leases, obviously this quarter was a record quarter. When you look at the mark-to-markets on the anchors in the 20%-25% range historically that we’re seeing, you’re seeing the real cash flow growth come through. It being elevated is actually a good thing because it’s showing the future cash flow, it’s the conversion of the old to the new that matters most to us. We’re continuing to push on all fronts and just grow that cash flow.

Conor Flynn, Chief Executive Officer, Kimco Realty: The only thing I’d add is I think we still have room to run on the occupancy side. When you look at our anchor occupancy, it’s still below all-time high.

David Jamieson, Executive Vice President and Chief Operating Officer, Kimco Realty: Yeah.

Conor Flynn, Chief Executive Officer, Kimco Realty: The physical occupancy lift we still have to go is still there in the anchors component, obviously small shops being at an all-time high, you would think we’re sort of cresting that potential ceiling. I don’t think that’s the case. I think we’re continuing to see diversified demand come into small shops, as Dave outlined, from a number of different uses that continue to gravitate towards the convenience and the value proposition that our shopping centers offer, and you’re seeing it with the consumer continuing to show up with our traffic counts.

Michael Griffin, Analyst, Evercore ISI: Great. Thanks so much.

Q&A Moderator: Your next call is from Greg McGinniss with Scotiabank. Greg, your line is open. Please go ahead.

Greg McGinniss, Analyst, Scotiabank: Hey, good morning. I had a few follow-up questions on the new One Kimco operating model. Firstly, how does that impact conversations with retailers? What’s the expected size of the investment on the tech side, the data, AI tools, collab tools? What’s the expected long-term benefit to the margin? Thank you.

David Jamieson, Executive Vice President and Chief Operating Officer, Kimco Realty: Sure. I’ll take the retail question, and I’ll kick it over to Will on the other questions. As it relates to the retailer, the conversations have been extremely constructive. It’s one unified message across the country. We have one accountable party. As part of the One Kimco launch, we also have a national account team that’s been launched as well, focusing on those retailers that we have package deals working, obviously large anchors and nationals that are actively growing. We’re able to sit with them and address multiple sites, multiple leases, multiple opportunities at once, and then have one clear, concise message back to them, and they’re able to roll those leases up with one group managing the entire deal flow end to end. You’re seeing acceleration of the execution, which is huge on both sides.

We’re seeing with construction and development working directly with their heads of construction, which is you’re seeing a pull forward on the SNO pipeline with a number of retailers opening sooner. That’s really important for them because they’re pressured to hit their open to buys and get their stores open as quickly as possible. There’s this real complementary relationship that we’ve been developing over an extended period of time, and One Kimco sort of wraps it all together and is really putting our full resources to work.

Conor Flynn, Chief Executive Officer, Kimco Realty: The only thing I’d add is the negotiating leverage that Kimco has today is very different from what it’s been in the past. Having One Kimco having that negotiating leverage is very different from the regional structure we had before. I think that’s a meaningful change that you should see in the margin enhancement going forward. Will, do you want to take the AI question?

Will, Office of Innovation and Transformation Lead, Kimco Realty: Sure. Good morning. With respect to digital transformation and just the broader move to our new operating model, our Office of Innovation and Transformation is taking the lead in coordinating these efforts. In the second quarter, we were proud to be a part of helping the company to transition through these changes, which impacted our people, processes, as well as system investments that we had to make. We’re very focused right now on consolidating a pipeline of digital transformation initiatives, and we’ve made some significant progress in the first half of this year, including establishing a new data platform, as Dave mentioned in his prepared remarks, as well as standing up key AI and agentic infrastructure. We’re really pleased with the progress and from an upskilling perspective, are pleased to see now weekly AI utilization within our workforce above 80% among all of our associates.

David Jamieson, Executive Vice President and Chief Operating Officer, Kimco Realty: We have AI-powered workflows that are now in place across asset management, leasing, underwriting, legal, and other key functions. We really see this as the early innings of a shift akin to the emergence of the Internet. As we think about what this will cost the business, our focus is on surfacing investments and incremental steps which will pay back along the way. Yeah, I can’t put a number to what we will invest over the next, say, decade around these transformation efforts. But what I can tell you is that year to date, we’ve yielded approximately 5X return on the amount of money that we’ve spent and invested in our AI initiatives. 5X in terms of expense savings offsetting the expenses that we’ve invested into these efforts.

Greg McGinniss, Analyst, Scotiabank: Okay. Thank you.

Q&A Moderator: Your next question comes from the line of Floris van Dijkum with Ladenburg. Floris, your line is open. Go ahead.

Floris van Dijkum, Analyst, Ladenburg: Thanks. Nice progress on capital recycling. My question is a little bit of a different topic, which I don’t know gets a lot of attention. The ancillary revenue line, and maybe this is for Dave. I think ancillary revenues are around 1.8% of total revenues today. You talk about the potential growth in that. How should we measure success? Where do you think this can go, and how should investors look at this? Should this be as a % of revenues? Should it be as a % per asset or per square foot? What’s the upside potential? Do you have a target three to five years hence in terms of what it could represent as a % of revenues?

David Jamieson, Executive Vice President and Chief Operating Officer, Kimco Realty: Yeah, it’s a great question, Floris. The way we’re looking at it is obviously optimizing the value of each of our assets. I think it’s a % of revenues as we continue to grow it. We’re focused a lot on building national programs as well that build a residual base into that revenue line that we can grow over time. Then on top of that, you have the specialty income side, which is really the backfilling of a vacant space intermittently while you’re looking at long-term replacements. Those are usually driven by, say, the Spirit Halloween deals. As you’re growing your occupancy and stabilizing your tenant base with that predictable residual cash flow with long-term leases, we’re looking at alternatives of how do we build a sustained, predictable cash flow within the ancillary income world.

We look at each of our assets as how to optimize it, either through advertising, through energy utilization, obviously EV charging, solar, et cetera. When we’re looking at the specialty leasing side, how do you activate residual excess parking and common area space that’s underutilized at the time? It’s a real forensic approach that is nuanced in nature dependent on the asset. We have the team and the resources, and really driving an enterprise initiative behind that.

Glenn Cohen, Executive Vice President and Chief Financial Officer, Kimco Realty: I mean, we’ve been really enhancing the solar program. We have a couple of larger projects on some of our properties that are in the process. We’re looking at every avenue that we have, from solar, EV charging stations, just full use of the property anywhere we can to drive additional revenue.

Q&A Moderator: Your next question comes from the line of Rich Hightower with Barclays. Rich, your line is open. Please go ahead.

Rich Hightower, Analyst, Barclays: Yeah. Hey, good morning, guys. I just wanted to ask about the convert issuance and how you think about sizing that program relative to the overall balance sheet. I guess, in the near term, obviously, it’s a great low-cost source of capital. In the longer term, that market’s a little more volatile than maybe traditional debt. You might be perceived to be sort of overearning on the interest expense side of things for some period of time. How do you think about balancing that relative to all the other sources of capital?

Glenn Cohen, Executive Vice President and Chief Financial Officer, Kimco Realty: Yeah, I mean, look, it’s a good question. We’re always looking at the capital structure that we have. We don’t rely on any one specific part. You have a whole lot of options available between term loans. We have a commercial paper program on the short end that we haven’t really accessed yet, that’s fully available to us. You have the traditional bond market in multiple tenors, and we’ve been a participant. We’ve issued paper that’s been as short as five years. We have four issuances of 30-year paper. We have perpetual preferred when it’s been opportunistic to issue them. We have those outstanding as well. I think the way we really look at it is, it’s just another tool, and another opportunity for us, and it really gives us another opportunity to expand investors in our company, right?

The exchangeable investor is very different than, in a lot of cases, very different than the traditional bond investor. It’s just another access to capital that we think as a large company that’s an A-rated credit it’s a good thing to use today. In balance, like anything else.

Conor Flynn, Chief Executive Officer, Kimco Realty: Yeah. The only thing I’d add is the strategic goal of getting the A-minus/A3 rating opens up all of these opportunities that Glenn has been talking about. I think when you look at positioning ourselves for the long term, we really do believe that we’ve checked the box in terms of balance sheet improvement. Taking it from obviously where we were to where we are today allows us, I think, complete optionality across

The spectrum of financing that we can see, again, be opportunistic when those windows open.

Rich Hightower, Analyst, Barclays: Thanks.

Q&A Moderator: Your next question comes from the line of Caitlin Burrows with Goldman Sachs. Caitlin, your line is open. Please go ahead.

Caitlin Burrows, Analyst, Goldman Sachs: Hi. Good morning, everyone. Just on the Pompano Beach deal, could you remind us on the initial structured investment, maybe when that was, and your take on why they initially decided to go with that structure followed by the sale now? When you have a property like that going from a structured investment to a property acquisition, does that process end up being FFO dilutive?

Ross Cooper, President and Chief Investment Officer, Kimco Realty: Yeah. It’s a good question, and actually, I think Pompano is a great example of our program and how we really look to sort of cater our capital to a solution for a borrower and something that’s unique to Kimco in the way we structure our deals. The Pompano deal was done a few years ago, where we actually came in as the senior lender at a slightly higher LTV than what a traditional lender would come in at. While it’s a really strong performing Walmart neighborhood grocery anchored shopping center, there were a couple of moving pieces with that asset that we got very comfortable with and thought there was significant upside long term, where I think a traditional lender may have struggled with some of the initial pieces.

A few examples I can give you there was a former Joann’s box that was a bit uncertain. We had known through our tenant relationships and through dealing with the borrower there that Burlington was looking to take that Joann’s box that hadn’t been completed yet. We had full faith in talking with the retailer that that was going to come to fruition and ultimately did. In addition to that, there was a Stein Mart box that previously went through bankruptcy. There were leases that were being negotiated with Marshalls and Five Below to replace that Stein Mart. Again, we got very comfortable with the trajectory of where the cash flow and the tenancy of that asset was going, even though it may have been a little bit early in the transition of that asset.

We came in as that senior lender at an 8% yield, again, that yield for Kimco is flat as a fixed interest rate. Then we had the opportunity as the borrower was looking to sell the asset to utilize our right to step in and acquire that asset at a price that we’re very comfortable and excited about. To your point, clearly the going-in cap rate is going to be lower than the 8% yield that we were earning as a lender. When you think about the growth trajectory of where that initial yield is going to go over time, we see 3.5%-4%+ CAGR on that versus what was initially a flat income stream as a lender. Over time, we’ll see the cash flow yield grow and catch up to that initial yield from the structured investment.

It is important to take a slightly separate perspective when we’re thinking about what our structured investment program yields and what the purpose of that program is, versus our long-term hold portfolio that we’re looking to enhance the growth over time. Obviously, being able to utilize that acquisition as a 1031 exchange for the Costco sales that were done at a flat 5 cap was a really good trade for us.

Glenn Cohen, Executive Vice President and Chief Financial Officer, Kimco Realty: I mean, simply put it, you’re being paid to ROFR.

Ross Cooper, President and Chief Investment Officer, Kimco Realty: The other thing, Caitlin, to keep an eye on is obviously that 8% that got paid back. The new structure investment book that you’ve seen us deploy this year is averaging over 10%. Obviously we’re net positive in terms of the capital going out versus the capital we’re getting back, and that’s our goal for that program is obviously have a bit of a positive spread as well as have it be net positive.

Caitlin Burrows, Analyst, Goldman Sachs: Thank you.

Q&A Moderator: Your next question comes from the line of Craig Mailman with Citigroup. Craig, your line is open. Please go ahead.

Craig Mailman, Analyst, Citigroup: Good morning, everyone. Conor, maybe just want to go back to something you said in your prepared remarks, that the growth potential here is higher than maybe the headline suggests, and maybe dig into that a little bit. As Glenn was talking, clearly you guys are targeting that 4.5%-5%. You’re doing a lot on the capital recycling side, kind of increasing the growth profile of the company overall. I guess when you kind of highlight something like that, what’s the timeframe that we should be thinking about to get kind of the acceleration above maybe 5%, given all that you’re doing here? Is that even a possibility? Just also as we think about you guys raised the dividend 12%, and I know we had talked about that dividend growth may exceed kind of earnings growth here.

Just from a total return perspective also, since this is real estate, just how do you think about that opportunity maybe versus peers?

Ross Cooper, President and Chief Investment Officer, Kimco Realty: Yeah. It’s a good question, Craig. I think when you look back the last two years, we’ve produced FFO growth of 5% and then 6%+. We’ve clearly reset the trajectory of our earnings growth versus sort of prior cycles, and I think that continuation of that growth profile will obviously be contingent on where the consumer goes, where the retailer environment goes, where interest rate goes. But from a fundamental standpoint, if you think about the structure we have, the platform we have, the investments we’re making, that’s why we’re super excited about the future of Kimco. We are investing in our people, we are investing in AI, we are investing in our platform at a point where we’re coming at it from a position of strength. We’re reorganizing at all-time high occupancies to drive further occupancy growth.

We’re refinancing obviously into a higher interest expense environment, but we have an A-minus/A3 credit rating, so the balance sheet’s in the best shape it’s ever been in.

Conor Flynn, Chief Executive Officer, Kimco Realty: When you talk to our folks, when you tour our assets, the assets itself really are thriving because of the diversity of demand we’re experiencing. When you look at the future opportunity set of our entitlement program, we’ve got 14,000 entitlements. We’ve just completed our first round trip of monetizing a multi-family project. You look at all of these levers we have for growth, and we got super excited about where we sit today, but also where we’re going tomorrow. I think that’s why we’re at a position of strength. Look at the mark-to-market that we have across the entire portfolio, and you see that SNO pipeline coming online. The SNO pipeline is just base rent. It’s not recoveries. That enhances it even further as our margin, I think, is really at a point where it’s going to enhance from here.

You put all those ingredients together, and I think it’s very compelling to think that Kimco’s still trading at a discount, yet our growth is at the top of the charts in terms of our peer group, and our balance sheet’s at the top of the charts in terms of the entire REIT industry. You put those components together, and I think it’s a very compelling time to invest in Kimco.

Glenn Cohen, Executive Vice President and Chief Financial Officer, Kimco Realty: Let me just clarify a little bit on the dividend too, which I think will help. As we mentioned, where payout today is 100% of our taxable income from the operations of the business. If you think about percentage growth on FFO, our base of FFO from last year at $1.76, every penny we grow is about 56 basis points, where a penny of growth on the dividend is 4%. Just you got to keep that in mind, because as we’re growing our funds available for distribution, every $7 million that we grow, or a penny of FFO per share, is requiring us to add to the dividend. The percentages are dramatically different because you’re using just a much different base number of the dividend versus FFO.

Q&A Moderator: Your next question comes from the line of Alexander Goldfarb with Piper Sandler. Alexander, your line is open. Please go ahead.

Alexander Goldfarb, Analyst, Piper Sandler: Hey, morning out there. Conor, you mentioned in the opening comments about revenue recognition, executing deals, or doing things to get things that are open sooner, and you said that you guys are ahead of schedule. From a material perspective, as you guys launch One Kimco, obviously you’re increasing leverage with the tenants to get them in sooner. Do you see this as a material impact to FFO growth? Meaning as you go through and listen to your ops guys, your leasing team, everyone throughout the organization to get tenants to take space sooner, do you see this as a material element that can boost FFO? Or you would say, "Hey, this is just one of the spices in the spice cabinet that adds to that 5% plus.

Conor Flynn, Chief Executive Officer, Kimco Realty: I do think it drives FFO growth further. If you think about it’s not only, Alex, from a new deal perspective, it also is on a renewal perspective. We would typically do renewals on a one-off basis and try and get the best intel you can from your local leasing rep to sort of drive that renewal. When you have the strength of One Kimco behind the renewal process, in essence, at the time we are at today, we have more negotiating leverage than we’ve had in the past. We can take that pipeline of renewals of, say, 10 to 20 or even 30-plus renewals that are happening in a year and really strengthen that renewal rate to a point where it’s a driving force of FFO. As you know, renewals don’t take any CapEx.

That is really where I see a meaningful impact of the earnings growth FFO trajectory going forward.

Alexander Goldfarb, Analyst, Piper Sandler: Thank you.

Q&A Moderator: Your next question comes from the line of Omotayo Okusanya with Deutsche Bank. Omotayo, your line is open. Please go ahead.

Omotayo Okusanya, Analyst, Deutsche Bank: Hi, yes. Good morning, everyone. I just wondered if you could talk a little bit about the expectations for Same-property NOI growth acceleration in the back half of 2026. I think your full year guidance is 3%-3.2% or so, and you are 2.6% year-over-year to date. Just kind of walk us through the back half, the acceleration that is expected on a year-over-year basis. Is it just easier comms? What is kind of driving that?

Glenn Cohen, Executive Vice President and Chief Financial Officer, Kimco Realty: Yeah. The first half of the year, if you look at where we were, we had to first deal with lapping the bankruptcy activity that happened last year with Party City, Joann, Big Lots, and others. To your point, we are expecting continued acceleration of growth in the back half of the year that gets us into the revised guidance range that we put out at 3%-3.5%. That’ll imply mid threes to a little over 4% third and fourth quarter as we go through the rest of the year. Again, if we’re hitting those levels, we are going to get into the mid to upper range of the revised guidance.

Omotayo Okusanya, Analyst, Deutsche Bank: Thank you.

Q&A Moderator: Your next question comes from the line of Ronald Kamdem with Morgan Stanley. Ronald, your line is open. Please go ahead.

Ronald Kamdem, Analyst, Morgan Stanley: Hey, great. Just one on unanchored centers. I know some of your peers have sort of been going in that direction. Just curious your thoughts, how you guys think about that, expanding the apertures. Is that something that’s interesting? If I could just ask a quick follow-up to the discussion on the inline occupancy at record levels. I’m just curious if you’re willing to think about what it would take to get to maybe 94%, or how you guys are thinking about that. Thanks.

Conor Flynn, Chief Executive Officer, Kimco Realty: Sure. On the first question, I think strategically, we see the small strip center as part of our ecosystem. When you look at every single shopping center we own, it’s a component of it. Obviously underwriting those assets, they’re smaller check sizes, but if they’re in good real estate with below-market leases, with the ability to use our platform to show growth, I think we’ve always been looking for those types of centers. If you look at across Long Island, where we sit today, a lot of our centers are similar to that size and scale, with significant growth profiles. We continue to see that as part of our ecosystem that we’ll continue to look to underwrite. As you know, there’s been a lot of capital formed for that structure and that asset class. It’s been very competitive.

We continue to mine for those opportunities and have them across our portfolio.

David Jamieson, Executive Vice President and Chief Operating Officer, Kimco Realty: On the second question, obviously supply is muted. The demand side is high. That’s working in our favor to help continue to push occupancy north. The focus on grocery conversion, so continuing to add grocery stores to our shopping centers, either through backfill opportunities or our redevelopment pipeline, is creating a halo effect that helps us absorb the balance of the in-line space as well. That’s also a contributor to pushing our occupancy northward and helping on the growth side as well. Continue to heads down focus, blocking and tackling basic execution through the back half of the year.

Ronald Kamdem, Analyst, Morgan Stanley: Thank you.

Q&A Moderator: Your next question comes from the line of Paulina Rojas with Green Street. Paulina, your line is open. Please go ahead.

Paulina Rojas, Analyst, Green Street: Good morning. I think we haven’t touched on cap rates. Has anything shifted in terms of pricing recently, or has it been mostly steady since last quarter?

David Jamieson, Executive Vice President and Chief Operating Officer, Kimco Realty: Yeah, I think cap rates continue to be very competitive. What I would say that we’ve seen change a bit is that there seems to be more compression and a tightening between different formats. I think Conor just mentioned all the capital that’s chasing the unanchored strip format. Obviously, grocery continues to be extremely competitive. We’re also seeing the lowest cap rates for more traditional power and lifestyle than we’ve seen in quite some time. You’re seeing a bit of a convergence of cap rates for all formats, and I would say that that also holds true geographically. Whereas several years ago, I think you saw a pretty significant premium or spread between some of the gateway sort of primary markets versus secondary and even tertiary.

You’re seeing that spread really narrowing and more aggressive cap rates in some of the secondary markets that historically may not have been chased by lots of institutions. Lots of capital chasing all formats, all geographies, and we’ll continue to pick our spots and find the right opportunities for Kimco.

Paulina Rojas, Analyst, Green Street: Thank you.

Q&A Moderator: We have reached the end of the Q&A session. I will now turn the call back to David Bujnicki for closing remarks.

Moderator: We just want to thank everybody that participated on the call. If you are looking for additional information, you can find it in our financial supplement as well as our updated investor presentation on our website. Otherwise, have a wonderful week. Take care.

Q&A Moderator: This concludes today’s call. Thank you for attending. You may now disconnect.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Is your KIM trade worth the risk?

Before you click "buy," know exactly where to set your stop-loss. Our Vision AI literally "sees" your KIM chart and delivers a complete risk management plan—entry, stop-loss, and profit target—in under 60 seconds.
Protect your downside. Validate every trade. Invest smarter.