Kimco Reports 4.5% Year-Over-Year Growth in Funds From Operations per Share in Second Quarter
Key Facts
The company reported results on October 29, 2026, for the quarter ended September 30. The announcement included record portfolio occupancy and improved same-property net operating income growth. CEO Conor Flynn said the results reflected "strong execution, with record occupancy, significant pricing power on new leases, and further acceleration in same-property net operating income growth." The company raised its annual forecast range for the third time, according to its earnings release.
Kimco's portfolio occupancy reached a record 96.6% in the third quarter, while small-shop occupancy reached 92.9%, matching the company's previous high. These figures build on the improvement seen in the second quarter, when pro-rata leased occupancy was 96.4%, up 10 basis points from the previous quarter and 100 basis points from the second quarter of 2025. The third-quarter reading highlights improved occupancy across the shopping center portfolio, alongside small-shop performance holding at its previous peak. Occupancy is a key operating indicator for a company that owns retail assets whose revenue depends on leasing space. In the second quarter, the company said limited new supply, consumer demand for essential goods and strong shopper traffic had supported leasing activity.
Credit losses were 45 basis points of total pro-rata rental revenue during the quarter. The quarter-over-quarter comparison points to an acceleration in same-property net operating income growth alongside a higher contribution from minimum rents. In the second quarter, Kimco had linked improved operating income to higher minimum rents, before the growth rate increased in the third quarter.
The company executed 444 leases in the third quarter, covering a total of 2.7 million square feet. Cash leasing spreads on comparable leases were 12%, comprising 31.5% on new leases, 7.3% on renewals and 7.7% on options. The gap between new leases and renewals shows the clearest pricing strength in space re-leased to new tenants, while spreads also remained positive on renewals and options. Flynn linked the quarter's results to pricing power on new leases, alongside record occupancy and accelerating operating income growth.
In asset management, Kimco sold The Witmer, a mixed-use building with 440 residential units at Pentagon Centre in Virginia, for $211.5 million. The transaction's capitalization rate was about 5.1%. The sale was among the company's real estate transactions in the third quarter, alongside its leasing and occupancy results. As of September 30, 2026, Kimco said it owned interests in 561 shopping centers and mixed-use assets in the United States, with a total gross leasable area of 99 million square feet. The size of the portfolio puts the transaction in the context of the company's broader asset base.
After its second-quarter results, Kimco had raised its 2026 funds-from-operations forecast to a range of $1.83 to $1.84 per diluted share, from a previous range of $1.81 to $1.84. The company held its third-quarter earnings conference call on October 29, 2026, at 8:30 a.m. Eastern Time. It took place on the day results were announced, after the quarter ended on September 30.