KIM changes
Pick any two versions below to diff them.
- Price
- $22.91 → $25.62(+11.8%)
- Discount category
- Well below intrinsic value → Below intrinsic value
- Next earnings
- Oct 29, 2026 → Jan 29, 2027
- Next earnings is estimate
- No → Yes
- About
- Kimco Realty is a real estate investment trust that owns and operates open-air shopping centers in the United States. Most of its centers have a grocery store as an anchor tenant, and it also owns mixed-use properties with apartments and offices. Its centers are mostly in the suburbs of large coastal and Sun Belt cities. Tenants include grocery stores, discount stores, restaurants and service businesses that sell everyday goods and services. Kimco also lends money to owners of shopping centers through its Structured Investment Program, and it often gets the right to buy those centers later. Pro-rata leased occupancy was removed: 96.4% added: a record 96.6% at removed: June added: September 30, 2026, removed: equal to its all-time high, and small shop occupancy was removed: a record 92.9%. added: 92.9%, equal to its all-time high. At that date, Kimco owned interests in 561 shopping centers and mixed-use properties with 99 million square feet of space.
- Thesis
- The market prices Kimco like other shopping center REITs, for the effect of higher interest rates on property values and for the risk that a weaker consumer causes tenant failures. FFO per share removed: grows only slowly, by 4.5% added: rose 6.8% in removed: Q2 added: Q3 2026, removed: and credit loss was 57 basis points of rental revenue in added: but investors doubt that removed: quarter. Investors added: this pace can last. They also worry that occupancy is near its peak, so growth must come from higher rents. Kimco's results are strong: added: in Q3 2026, same property NOI rose removed: 3.5% in Q2 2026, added: 4.9%, occupancy reached a record 96.6%, and rents on new leases were removed: 40.4% added: 31.5% higher than on the old removed: leases, added: leases. Kimco also sold an apartment building and added: used the removed: board raised the dividend 12% added: money to removed: $0.28 per quarter. added: buy back $150 million of its shares. For the gap to close, three things must be true. Occupancy must stay near 96% and the removed: $75 added: $76 million of rent from signed leases that have not started yet must start on time. Same property NOI must grow within the removed: 3.0% to added: raised 3.5% added: to 3.8% guidance, and FFO per share must grow in 2027. Tenant failures must stay within the credit loss guidance of removed: 55 added: 50 to removed: 75 added: 60 basis points. The removed: Q3 added: Q4 2026 report removed: on October 29, 2026, and added: with the 2027 removed: guidance added: guidance, expected in removed: February 2027 are added: early 2027, is the next removed: tests. added: test. If they pass, and if long-term interest rates stop rising, the gap can close over the next four to eight quarters. The main reason it may not close is high long-term interest rates, which keep the value of all REITs low.
- Risks
- Higher long-term interest rates lower the value of real estate and raise the cost of new debt. REIT share prices often fall when interest rates rise. A weaker consumer or more retailer bankruptcies can raise vacancies and credit losses. Credit loss was removed: 57 added: 45 basis points of rental revenue in removed: Q2 added: Q3 2026, and the 2026 guidance is removed: 55 added: 50 to removed: 75 added: 60 basis points. Occupancy is near its all-time high, so it has little room to rise. Future growth depends more on higher rents and on new investments. Online shopping can lower demand for some kinds of store space, although Kimco focuses on grocery stores and services that need a physical location.
- Balance sheet
- Cash: removed: $700M added: $545M Debt: removed: $8.7B added: $8.5B Net debt: removed: $8.0B added: $7.9B Undrawn credit line: $2.0B, to March 2030 Kimco funds itself mostly with unsecured notes. Debt is notes payable of removed: $8,308 added: $8,043 million and mortgages payable of removed: $432 added: $429 million at removed: June added: September 30, 2026. removed: In June 2026, it issued $600 added: Notes payable include $860 million of removed: 3.50% exchangeable senior notes due 2031. It also has added: unsecured term loans: a $550 million removed: unsecured term loan due January 2027, with two one-year options to extend to January removed: 2029. added: 2029, and $310 million of term loans with options to extend to between November 2028 and February 2030. Kimco repaid $266.0 million of notes in Q3 2026 and a $500 million note in October 2026. Cash, cash equivalents and restricted cash were removed: $700 added: $545 million. Its removed: new $2.0 billion unsecured revolving credit facility removed: from February 2026 was fully available, and it runs to March 2030, with options to extend to March 2031. Immediate liquidity was removed: $2.7 added: more than $2.5 billion. Kimco's unsecured debt ratings are A-, A- and A3. Total assets were removed: $20.0 added: $19.7 billion. The quarterly common dividend is $0.28 per share. As of removed: Jun added: Sep 30, 2026.
- Checkpoints
- Oct 29, 2026: Q3 2026 results: occupancy and FFO guidance. removed: Pending. added: Passed. Watch: Occupancy near 96.4%, same property NOI growth of at least 3.0% and FFO guidance of $1.83 to $1.84 kept pass; lower occupancy or a guidance cut fails. removed: Feb added: Outcome: Occupancy rose to a record 96.6%, same property NOI grew 4.9%, and Kimco raised its 2026 FFO guidance to $1.84 to $1.86 per share. Jan 29, 2027 (estimate): Q4 2026 results and the 2027 guidance. Pending. Watch: 2027 guidance with FFO per share growth and credit loss within its usual range passes; flat FFO per share or higher credit loss fails.
- Recent events
- added: Oct 29, 2026: Kimco reported Q3 2026 results. FFO per share rose 6.8% to $0.47, and net income was $0.41 per share. Same property NOI rose 4.9%. Pro-rata leased occupancy rose to a record 96.6%, and rents on new leases were 31.5% above the old leases. Kimco raised its 2026 FFO guidance to $1.84 to $1.86 per share and its same property NOI growth guidance to 3.5% to 3.8%. Oct 29, 2026: In Q3 2026, Kimco sold The Witmer, a 440-unit apartment building at Pentagon Centre, for $211.5 million, and it bought back 6.3 million common shares for $150 million at $23.81 per share. It also bought back about $74 million of preferred stock and repaid $266.0 million of notes. After the quarter, it repaid a $500 million note with a 2.80% coupon. Aug 4, 2026: Kimco reported Q2 2026 results. FFO per share rose 4.5% to $0.46, and net income was $0.22 per share. Same property NOI rose 3.5%. Pro-rata leased occupancy rose to 96.4%, and rents on new leases were 40.4% above the old leases. The board raised the quarterly dividend 12.0% to $0.28 per share. Kimco raised its 2026 FFO guidance to $1.83 to $1.84 per share. In the quarter, it sold The Milton, a 253-unit apartment building at its Pentagon Centre property in Virginia, for $142.3 million, its first sale of an apartment property. Aug 4, 2026: After the quarter, Kimco sold four Costco-anchored properties for about $127 million and bought two centers in Florida, anchored by Walmart and Publix, for $109 million. It also bought back 516,750 shares of its 7.25% Class N preferred stock for $33.3 million. Jun 15, 2026: Kimco issued $600 million of 3.50% exchangeable senior notes due 2031. With the offering, it bought back about 4.1 million common shares for $104.7 million at $25.38 per share.