KIMCO RLTY CORP earnings calls

capital recycling and structured investments

Q (Michael Goldsmith · UBS): Analyst asked about visibility into acquisitions and structured investments in Q4 and timing risk given the macro backdrop.

A: Management said they have good insight into Q4. Two grocery-anchored assets are closing in the coming days and will bring them back to net neutrality for the year. They noted structured deals have recent activity, some could slip to Q1, and the program performs well in volatile times.

"We do have very good insight into the fourth quarter." — Ross Cooper (PRESIDENT)

competition for debt and preferred equity

Q (Alexander Goldfarb · Piper Sandler): Analyst asked if private platforms are competing more for debt and preferred equity, and whether institutional capital will compress yields on their debt/preferred program.

A: Management said there is competition but few real operators compete with their capital and that their presence in the capital stack helps borrowers secure senior financing. They highlighted ROFO and ROFR as differentiators and said asset quality in the program has improved, citing recent Trader Joe's and Whole Foods deals.

"The only other piece that I think differentiates our program is the ROFO and the ROFR that we get on every single investment." — Conor Flynn (CEO)

drivers of FFO and non-cash revenue

Q (Rich Hightower · Barclays): Analyst asked what core and non-core movements drove the FFO increase and the uptick in non-cash GAAP revenue.

A: Management said core gains came from faster rent commencements, improved credit loss, and cost discipline, plus lower interest after their convert. On non-cash GAAP revenue, they said it is driven by straight-line rent from leasing volume and lease bumps, and lower reserves from improved credit loss.

"From the core part, it's really coming from faster rent commencements that we have." — Glenn Cohen (CFO)

shop occupancy and pricing power

Q (Ronald Kamdem · Morgan Stanley): Analyst asked how much more upside there is in shop occupancy, and how pricing power is improving through lease terms like escalators and options.

A: Management said small shop occupancy is at a record and they see more upside driven by 28 grocery boxes under construction that create a halo effect. They said anchor occupancy is below its all-time high with another 70, 80 basis points to gain, and noted annual escalators are improving with over 30% of upper anchor new lease deals having escalators this quarter.

"Having over 28 grocery boxes under construction, redeveloping and repositioning those assets, building better mouse traps only drives value to the adjacent space" — Dave Jamieson (COO)

drivers and offsets for guidance bump

Q (Michael Griffin · Evercore): Analyst asked what offsets explain the 1.5 cent increase in guidance and whether share repurchases were in prior guidance or additive.

A: Management said repurchases were additive and made sense given the valuation and balance sheet capacity. They said the guidance increase reflects better same-site expectations, improved credit loss, faster lease-ups, and accretion from share repurchases, moving the range upward from the third quarter forecast.

"They were additive." — Glenn Cohen (CFO)

details on upcoming two acquisitions

Q (Ravi Vaidya · Mizuho (Haendel St. Juste)): Analyst asked when the process started for the two acquisitions closing soon, anticipated cap rates, and whether to pause acquisitions as cap rates may rise.

A: Management said they worked on the deals for several months and are confident in pricing and yields, expecting about 300 basis points of growth over what they sold to fund them. They will provide more detail after close but suggested yields align with guidance moving from 5.8 to a low six.

"We have been working on these deals for several months now, but we are very confident in the pricing that we are able to negotiate and the yields that we are going to achieve." — Ross Cooper (PRESIDENT)

credit loss guidance and tenant health

Q (Jamie Feldman · Wells Fargo): Analyst asked why they tightened credit loss guidance and whether management has concerns about the consumer or retailers over the next 12–18 months.

A: Management said consumer spending indicators look healthy into the holidays and store traffic is a leading indicator showing resilience. They pointed to below-60 basis points credit loss history, improved billing and collections from lease administration changes, and a small tenant watch list with limited bankruptcy activity, giving them confidence.

market rent trends and mark-to-market gains

Q (Juan Sanabria · BMO): Analyst asked how market rents are trending and whether they are accelerating or moderating given supply-demand and consumer strains.

A: Management said market rents are local and in their first-ring suburban major markets there's virtually no new supply, leading to accelerating market rent growth in some trade areas, including where their two acquisitions are. They said mark-to-market on new leases shows 20%–40% upside and they have 56 anchor boxes rolling with mark-to-market spreads upwards 40% on those resolved.

"When you look at our mark-to-market adjustments, like on the new lease, that's where you see the big upside, right?" — Dave Jamieson (COO)

disposition funding and buybacks vs acquisitions

Q (Greg McGinniss · Scotiabank): Analyst asked what disposition funding remains, how cap rates may move, and whether buybacks might be prioritized given Kimco's implied cap rate.

A: Management said capital recycling is multi-year and they can continue to recycle product; they remain over 8% of ABR in long-term ground leases and can monetize multifamily entitlements or projects if pricing is right. They noted a valuation gap that enabled $150 million of buybacks and that their strong balance sheet allows opportunistic buybacks when spreads are attractive.

"Our plan of capital recycling was not just a 2026 plan. It was a 2027 and beyond plan." — Ross Cooper (PRESIDENT)

fixed CAM and ancillary income

Q (Floris van Dijkum · Ladenburg Thalmann): Analyst asked what percent of rents have fixed CAM today, growth expectations, and color on ancillary income like billboards and temp tenancy.

A: Management said margins are exceeding 70% driven by better credit loss, occupancy, leasing, and cost containment. They said the whole portfolio is about 51% converted to fixed CAM, Kimco legacy is almost 70% converted, and new leases are over 90% fixed CAM, which helps margin and collections.

"Starting first with the entire portfolio, we're just over 50%, around 51%." — Dave Jamieson (COO)

tenant selectivity and leasing spreads

Q (Samir Khanal · BofA): Analyst asked if tenants are becoming more selective on economics given cost pressures, and what managers hear from retailers.

A: Management said store economics have improved as stores serve more functions beyond four-wall sales and retailers are reinvesting in store fleets. They see multiple tenants bidding on the same space, allowing Kimco to dictate terms and choose retailers that improve economics and future growth.

"You're seeing it continue to show up when the economics, as Dave talked about, we've been trying to push economics for a long time at Kimco." — Conor Flynn (CEO)

sources and uses of capital year-end

Q (Omotayo Okusanya · Deutsche Bank): Analyst asked for specifics on sources and uses of capital as year-end approaches, given cash, debt paydown, and upcoming acquisitions.

A: Management said they ended the quarter with $545 million of cash and used cash to pay a $500 million bond, leaving one small $7 million MTN. Capital is focused on two sizable imminent acquisitions and potential structured investments. They noted no outstanding on the line of credit and significant balance sheet capacity with net debt to EBITDA around 5x.

"We did have $545 million of cash to end the quarter. We did have a $500 million bond that we just paid off" — Glenn Cohen (CFO)

lease termination fees and SNO pipeline execution

Q (Caitlin Burrows · Goldman Sachs): Analyst asked what drove the uptick in lease termination fees and whether their improved speed of opening spaces will change guidance methodology going forward.

A: Management said the lease termination fees were normal course of business and just hit this quarter. On the SNO pipeline, they said a 20% overage came from many small timing pulls across several hundred projects and credited One Kimco alignment, development and construction coordination, and permitting work for pulling forward commencements; they will continue to incorporate this activity into future guidance.

"On the lease termination side, it was just normal course of business stuff." — Dave Jamieson (COO)

One Kimco program progress and savings

Q (Craig Mailman · Citi): Analyst asked where One Kimco is in its life cycle, what fruits are visible, and how much savings come from G&A versus AI revenue initiatives.

A: Management said One Kimco launched in July and is in the early innings with measurable early wins like 30% improvement in cycle time for controllable lease tasks. They said it's an operating model across people, process, and platform driving revenue and expense benefits, with tech and AI delivering hours saved, reduced cycle times, and improved lead generation and underwriting workflows.

"We're in the third inning because we've posted some early wins to the board, but there's a lot of work ahead of us" — Dave Jamieson (COO)

package deals and 2027 pipeline retailers

Q (Linda Tsai · Truist): Analyst asked how 10 package deals this quarter compare to 2026 and which retailers are in 2027 pipeline discussions.

A: Management said package deals accelerated after standing up the national accounts team, allowing multiple LOIs to be packaged and executed nationally, which retailers support. They said for 2027, of the anchor leases rolling in the first half, almost 75% are already resolved or in process at meaningful mark-to-market adjustments, driven by omni-channel retailer strategies.

"This quarter is an acceleration of the package program now that we have stood up our national accounts team under our national leasing platform." — Dave Jamieson (COO)

residential capital recycling and new starts

Q (Mike Mueller · JPMorgan): Analyst asked if they are pursuing additional multifamily sales, new starts, or entitled land sales for capital recycling.

A: Management said the resi program is opportunistic; they broke ground on The Chester and another project in Connecticut and evaluate each entitled project case-by-case. They noted upwards of 10,000 entitled units and near-term entitled mixed-use units that can be ground-leased, sold, or developed to recycle capital.

"With the amount of entitlements that we have, upwards of 10,000 entitled units that are not built or haven't broken ground, we can look at each and every one of these projects" — Ross Cooper (PRESIDENT)

where cap rates move and deal timing

Q (Paulina Rojas · Green Street): Analyst asked for details on dynamics causing cap rates to stay sticky, whether deals take longer or are repriced, and signs of pricing moving up.

A: Management said it depends: institutional-quality grocery-anchored growth assets remain aggressively priced and largely unaffected by rate volatility, though single-tenant rate-sensitive assets may move with rates. They noted recent rate volatility in both directions and that supply-demand and buyer financing source drive pricing, with more capital chasing quality centers than there is supply.

"We continue to see assets that are institutional quality, primarily grocery anchored with growth, pricing as aggressively as we've seen and really have not been impacted whatsoever by the volatility in rates." — Ross Cooper (PRESIDENT)

why owners use the structured investment program

Q (Michael Gorman · U.S. Bancorp): Analyst asked what drives owners to use the structured investment program given strong retail operations and institutional demand.

A: Management said the program is a capital solutions platform with bespoke structures; owners come for flexible capital, help executing with senior lenders, tenant relationship assistance, redevelopment funding, or transition support. They emphasized their operator expertise and ability to underwrite changes and speak to retailers as key reasons borrowers choose the program.

"While we refer to it as our structured investment program, we really view it as a capital solutions program." — Ross Cooper (PRESIDENT)