Key Highlights

  • Diluted EPS of USD 0.41 doubled the USD 0.20 consensus estimate, aided by USD 89.4 million of sale gains.
  • Rental property Revenue of USD 539.73 million rose from USD 531.11 million but trailed the USD 549.06 million estimate.
  • Funds from operations reached USD 0.47 per diluted share, up 6.8%, as same property NOI growth accelerated to 4.9%.
  • Full year FFO guidance was lifted to a range of USD 1.84 to USD 1.86 per diluted share.

Kimco Realty Corporation (NYSE:KIM) reported third quarter 2026 GAAP Diluted Earnings per Share of USD 0.41, compared with a consensus estimate of USD 0.20 and USD 0.19 in the same quarter a year earlier. Revenue from rental properties, net, came to USD 539.73 million, below the consensus estimate of USD 549.06 million, while total revenues including management and other fee income were USD 546.15 million versus USD 535.86 million a year ago. Net Income available to common shareholders was USD 272.5 million, up from USD 130.2 million.

Sale Gains and Occupancy Records Shape the Quarter

The earnings jump leaned heavily on a USD 89.4 million gain on sale of properties, against USD 3.7 million a year earlier. Interest expense rose to USD 87.7 million from USD 84.3 million, and Impairment charges were USD 8.0 million. On an operating basis, FFO of USD 0.47 per diluted share grew 6.8%, and the chief financial officer said consolidated NOI margins passed 70% for the first time since certain general and administrative costs were reclassified almost a decade ago.

Chief Executive Officer Conor Flynn pointed to same property NOI growth of 1.7% in the first quarter, 3.5% in the second and 4.9% in the third. Lease occupancy reached an all time high of 96.6%, and small shop occupancy held at a record 92.9%. The company signed 444 leases covering 2.7 million square feet at a blended cash spread of 12%, with new lease spreads of 31.5%.

Capital Recycling and Raised Guidance

Management said it sold The Witmer for USD 211.5 million at a cap rate of about 5.1% and completed the USD 127 million sale of four Costco anchored assets. Proceeds were redeployed into Pompano Marketplace and Sunshine Plaza in South Florida. Year to date, dispositions total USD 391 million at a weighted average cap rate of 5.1%, against USD 118 million of acquisitions at 5.8%. The company repurchased USD 150 million of common shares at a weighted average price of USD 23.80 and about USD 74 million of preferred stock.

Full year FFO guidance now stands at USD 1.84 to USD 1.86 per diluted share, and same property NOI growth guidance at 3.5% to 3.8%. The Credit loss assumption improved to between 50 and 60 basis points. Transaction Volume was raised to USD 400 million to USD 500 million, kept roughly net neutral for the year, and free Cash Flow after dividends and Capital spending is projected at USD 175 million.

Signposts for the Fourth Quarter and 2027

Several dated items frame the next report. The signed but not open pipeline holds about USD 76 million of annual base rent, and roughly USD 64 million of it is scheduled to commence from the fourth quarter through 2027. Economic occupancy of 92.7% trails lease occupancy by 390 basis points, a gap that tracks that pipeline.

Two grocery anchored acquisitions in a top 50 US metro market were described as closing within days, and two structured investments totaling about USD 49 million closed after quarter end. The company said its full 2027 outlook arrives with fourth quarter results, and 2027 Debt maturities total USD 466 million at a weighted average coupon of 4%. Net debt to EBITDA stood at 5.3x on a look through basis, the best level since the company began reporting the metric.