Track market-moving stories before they get noisy

California State Teachers Retirement System grew its holdings in shares of Kimco Realty Corporation (NYSE:KIM – Free Report) by 2,156.5% in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 24,275,059 shares of the real estate investment trust’s stock after purchasing an additional 23,199,273 shares during the quarter. California State Teachers Retirement System owned approximately 3.62% of Kimco Realty worth $615,373,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also recently made changes to their positions in the company. Readystate Asset Management LP purchased a new position in Kimco Realty during the second quarter valued at approximately $591,000. Wedmont Private Capital purchased a new position in shares of Kimco Realty during the 2nd quarter valued at $243,000. Saudi Central Bank boosted its holdings in Kimco Realty by 88.8% in the 2nd quarter. Saudi Central Bank now owns 47,185 shares of the real estate investment trust’s stock worth $1,196,000 after buying an additional 22,189 shares during the period. Raiffeisen Bank International AG boosted its holdings in Kimco Realty by 9,783.7% in the 2nd quarter. Raiffeisen Bank International AG now owns 47,936 shares of the real estate investment trust’s stock worth $1,238,000 after buying an additional 47,451 shares during the period. Finally, Syon Capital LLC increased its stake in Kimco Realty by 61.9% in the 2nd quarter. Syon Capital LLC now owns 16,092 shares of the real estate investment trust’s stock worth $408,000 after buying an additional 6,153 shares in the last quarter. Institutional investors own 89.25% of the company’s stock.

Kimco Realty Price Performance KIM stock opened at $23.21 on Tuesday. Kimco Realty Corporation has a 52 week low of $19.76 and a 52 week high of $26.65. The company has a quick ratio of 5.23, a current ratio of 5.23 and a debt-to-equity ratio of 0.84. The company has a fifty day simple moving average of $24.67 and a two-hundred day simple moving average of $24.09. The firm has a market capitalization of $15.57 billion, a P/E ratio of 27.31, a price-to-earnings-growth ratio of 2.67 and a beta of 0.93.

Kimco Realty (NYSE:KIM – Get Free Report) last posted its earnings results on Tuesday, August 4th. The real estate investment trust reported $0.46 earnings per share for the quarter, topping analysts’ consensus estimates of $0.20 by $0.26. The firm had revenue of $550.80 million for the quarter, compared to the consensus estimate of $543.75 million. Kimco Realty had a net margin of 27.76% and a return on equity of 5.76%. The business’s quarterly revenue was up 4.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.44 EPS. Kimco Realty has set its FY 2026 guidance at 1.830-1.840 EPS. Analysts anticipate that Kimco Realty Corporation will post 1.84 earnings per share for the current fiscal year. Kimco Realty Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Friday, September 4th will be paid a $0.28 dividend. This is an increase from Kimco Realty’s previous quarterly dividend of $0.26. This represents a $1.12 annualized dividend and a dividend yield of 4.8%. The ex-dividend date of this dividend is Friday, September 4th. Kimco Realty’s payout ratio is currently 131.76%.

Analyst Ratings Changes A number of research firms have commented on KIM. Jefferies Financial Group raised Kimco Realty to a “hold” rating in a report on Friday, June 26th. The Goldman Sachs Group reissued a “neutral” rating and set a $28.00 target price on shares of Kimco Realty in a research note on Tuesday, August 11th. Weiss Ratings reiterated a “buy (b)” rating on shares of Kimco Realty in a research note on Friday, July 31st. Raymond James Financial reissued a “strong-buy” rating and set a $29.00 price objective on shares of Kimco Realty in a report on Monday, June 29th. Finally, Scotiabank lifted their target price on Kimco Realty from $24.00 to $25.00 and gave the stock a “sector perform” rating in a report on Tuesday, May 19th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $26.53.

Check Out Our Latest Stock Report on Kimco Realty

Kimco Realty Company Profile (Free Report)

Kimco Realty Corporation (NYSE: KIM) is a real estate investment trust that owns, operates and develops open-air, grocery-anchored shopping centers and mixed-use properties. Its properties are generally located in established communities and are designed to serve everyday consumer needs, with tenants that may include grocery stores, restaurants, retailers, service providers and other businesses.

The company’s portfolio is concentrated in major metropolitan areas across the United States, including markets in coastal and Sun Belt regions.

See Also Five stocks we like better than Kimco Realty Analysts Are Punting Their Calls Into the Next Quarter After Adobe’s Mixed Earnings Institutional Money Is Pouring Into These 2 Altcoin ETFs The End of Big Tech Buybacks? Only One Hyperscaler Is Still Repurchasing Shares 3 Dividend Kings to Buy While They’re Still Beaten Down Want to see what other hedge funds are holding KIM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Kimco Realty Corporation (NYSE:KIM – Free Report).

Receive News & Ratings for Kimco Realty Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kimco Realty and related companies with MarketBeat.com's FREE daily email newsletter.

Kimco Realty (NYSE:KIM) reported second-quarter funds from operations of $0.46 per diluted share, up 4.5% from a year earlier, as higher rents, improving credit trends and strong leasing activity supported results. The shopping center REIT also raised the lower end of its full-year FFO outlook and increased its quarterly common dividend by 12% from the prior-year period.

CEO Conor Flynn said the company’s portfolio continued to benefit from retailer demand for open-air, grocery-anchored centers, while new shopping center development remains limited in its markets. Same-property net operating income rose 3.5% in the quarter, driven by higher minimum rents and stronger net recoveries.

“Kimco has the right platform, portfolio, and balance sheet to drive sustainable earnings growth,” Flynn said, citing retailer demand, shopper traffic, a signed-but-not-open leasing pipeline, capital recycling and balance-sheet management.

Occupancy and Leasing Trends Kimco’s pro-rata portfolio occupancy matched its all-time high of 96.4%, despite a 16-basis-point impact from lease rejections connected to the Painted Tree bankruptcy. Small-shop occupancy reached a record 92.9%, while anchor occupancy was 97.8%, down 10 basis points sequentially but up 110 basis points year over year.

David Jamieson, executive vice president and chief operating officer, said Kimco signed 461 leases covering 2.5 million square feet during the quarter at a blended lease spread of 13.1%. New leases accounted for 161 transactions and 685,000 pro-rata square feet, with a blended spread of 40.4%.

The quarter marked Kimco’s 19th consecutive period of double-digit new-lease spreads, according to Jamieson. Renewal and option activity totaled 300 deals covering 1.9 million square feet, with a blended spread of 7%.

Kimco replaced a former Rite Aid at Marketplace of Victoria with Japanese-inspired home goods retailer Teso Life. Woodlawn Marketplace in Charlotte, North Carolina, added Lowes Foods. The company signed its first Uniqlo lease within its lifestyle portfolio. Non-anchor leasing was broad-based, with strength in fitness, health and wellness, restaurants and professional services. Kimco’s signed-not-open pipeline represented $95 million of annual base rent, including $75 million of incremental rent. The company expects 48% of the incremental pipeline to commence by year-end. Jamieson said Kimco now projects $33 million of rent commencements in 2026, 16% above its initial estimate, including $24 million from tenants that opened during the first half and $9 million expected in the second half.

Foot traffic across the portfolio increased 3% year over year, including 3.2% growth in June, Flynn said. In response to an analyst question, management said spending growth was strongest among higher-income consumers, but remained positive among lower-income shoppers. Jamieson cited spending growth of about 5.5% among middle-income consumers and 3.5% among lower-income consumers.

Capital Recycling and Mixed-Use Monetization Kimco continued to recycle capital from lower-growth assets into grocery-anchored properties with higher expected growth. During the quarter, the company acquired Pompano Marketplace, a Walmart-anchored center in Pompano Beach, Florida, for $53 million, and Sunshine Plaza, a Publix-anchored center in a first-ring Fort Lauderdale suburb, for $56 million.

Pompano Marketplace was the third acquisition sourced through Kimco’s structured investment program. President and Chief Investment Officer Ross Cooper said the property had initially been financed through the program, where Kimco served as senior lender at an 8% yield. Kimco later used contractual rights to acquire the property when its borrower sought to sell.

Cooper said the acquired South Florida centers had compound annual growth rates more than 350 basis points above the Costco properties Kimco sold as part of its disposition initiative. The company said the Costco assets had annual growth below 1% and a sub-6% unlevered internal rate of return over a 10-year hold, compared with an expected unlevered IRR above 9% for the replacement properties.

The company also completed the sale of The Milton, a 253-unit multifamily building at its Pentagon Centre mixed-use project in Pentagon City, Virginia. Cooper described the sale as Kimco’s first full-cycle monetization of a ground-up multifamily development within its value-add redevelopment program. The Milton sold at a 4.9% capitalization rate.

Kimco expects to consider monetizing the second residential tower at Pentagon Centre, The Witmer, next, though Cooper said no formal timetable has been established. Management said it evaluates each mixed-use project individually and retains flexibility to hold, develop, sell or structure assets through joint ventures and preferred-equity arrangements.

Balance Sheet, Outlook and Dividend Executive Vice President and CFO Glenn Cohen said second-quarter FFO totaled $309.2 million, compared with $297.6 million a year earlier. Credit loss was 57 basis points in the quarter, down from 89 basis points in the comparable 2025 period. Year-to-date credit loss was 54 basis points.

Kimco ended the quarter with consolidated net debt to EBITDA of 5.2 times, or 5.5 times including pro-rata joint venture debt and preferred stock. Total liquidity was $2.7 billion, including $700 million of cash, much of which Cohen said is expected to be used for 2026 debt maturities.

During the quarter, Kimco issued $600 million of 3.5% exchangeable senior notes due 2031. The offering was upsized due to investor demand. The notes have an initial exchange price of approximately $32.36 per share, a 27.5% premium to Kimco’s stock price at issuance. In connection with the offering, the company repurchased approximately 4.1 million common shares for $104.7 million.

Kimco raised the lower end of its 2026 FFO outlook to $1.83 per diluted share from $1.81, while maintaining the upper end at $1.84. It also increased its same-property NOI growth forecast to 3% to 3.5%, from a prior range of 2.8% to 3.5%, and tightened its credit-loss outlook to 55 to 75 basis points from 65 to 90 basis points.

The board declared a quarterly common dividend of $0.28 per share, or $1.12 on an annualized basis. Cohen said the increase reflects growth in operating cash flows, earnings and taxable income.

About Kimco Realty (NYSE:KIM) Founded in 1958 by Milton Cooper and headquartered in Jericho, New York, Kimco Realty Corporation (NYSE: KIM) is a leading publicly traded real estate investment trust (REIT) specializing in the ownership, operation and development of open-air shopping centers. The company’s portfolio, concentrated on neighborhood and community centers anchored by grocery stores, encompasses approximately 400 properties across the United States, with selective holdings in Canada and Mexico.

Kimco’s core business activities include acquiring, repositioning and managing retail real estate assets that serve as daily-need destinations for consumers.

Key Takeaways Kimco Realty is expected to report higher Q2 revenues and FFO when it releases results on Aug. 4.KIM's grocery-anchored portfolio and healthy leasing demand are expected to support same-site NOI growth.KIM's occupancy to be pressured by recent bankruptcies, delayed rent commencements and redevelopment downtime. Kimco Realty Corporation (KIM - Free Report) is slated to report second-quarter 2026 results on Aug. 4, before the opening bell. The company’s quarterly results are likely to display year-over-year growth in revenues and funds from operations (FFO) per share.

In the last reported quarter, this Jericho, NY-based retail real estate investment trust (REIT) reported FFO per share of 46 cents, which surpassed the Zacks Consensus Estimate by a cent. Results were supported by steady rent growth and continued demand for Kimco’s open-air, grocery-anchored centers.

Over the preceding four quarters, Kimco’s FFO per share surpassed the Zacks Consensus Estimate on three occasions and met in the remaining period, the average beat being 1.72%. This is depicted in the graph below:

In this article, we will dive deep into the U.S. retail real estate market environment and the company's fundamentals and analyze the factors that may have contributed to its second-quarter 2026 performance.

US Retail Real Estate Market in Q2The second-quarter 2026 U.S. retail market showed signs of stabilization, as shopping-center demand returned to positive territory and vacancy remained near historically low levels. Limited new construction continued to support rent growth, while resilient consumer spending favored grocery, discount and other value-oriented retailers. However, uneven regional trends and rising pressure on lower- and middle-income households kept the operating backdrop mixed.

Per the Cushman & Wakefield report, net absorption reached 708,000 square feet, while national vacancy remained broadly stable at 6%, up only 3 basis points sequentially and still below the historical average of 7.4%. Limited construction continued to support market fundamentals, with just 2.3 million square feet delivered during the quarter and the development pipeline accounting for less than 0.3% of existing inventory.

Asking rents increased 2.2% year over year to $25.65 per square foot, supported by tight availability and muted new supply. The West led demand growth with 1.3 million square feet of positive absorption and was the only region to record a decline in vacancy. In contrast, the South posted a slight rise in vacancy as earlier population growth encouraged new development, creating temporary lease-up pressure in markets such as Atlanta, Houston, Washington and Dallas-Fort Worth. Rents in the South advanced 3.3% year over year, the strongest growth among all regions.

Consumer spending remained resilient despite higher energy costs. Retail sales rose 6.9% year over year, or 5.4%, excluding gasoline stations, while unemployment stayed low at 4.2%. However, inflation outpaced wage growth in April and May, increasing pressure on lower- and middle-income households. This widening spending divide is likely to favor grocery, discount, value and health-and-wellness retailers over discretionary categories.

Factors to Consider Ahead of KIM’s Upcoming ResultsKimco’s second-quarter performance is likely to have witnessed continued strength in its grocery-anchored, necessity-based portfolio, supported by limited new retail supply, high tenant retention and healthy leasing demand. Management entered the second quarter with a record $77 million signed-but-not-open pipeline and indicated that leasing activity remained on pace with the prior year.

Rent commencements scheduled from the second quarter onward should begin lifting economic occupancy, minimum rents and same-property NOI, while positive mark-to-market spreads and strong small-shop demand may provide additional support. Management expects same-site NOI growth to accelerate sequentially after the first quarter’s 1.7% increase.

However, second quarter comparisons may be affected by the absence of the first quarter’s roughly $7 million accelerated below-market rent benefit and seasonally higher percentage-rent income.

Occupancy could also remain constrained by recent bankruptcies, tenant openings that have not yet commenced rent and redevelopment-related downtime. Higher refinancing costs remain a headwind, although Kimco’s strong liquidity and improved leverage should limit near-term pressure.

Q2 Projections for KIMThe company’s top line is expected to have improved due to the above tailwinds. The Zacks Consensus Estimate for KIM’s quarterly revenues stands at $545 million, implying 3.8% growth from the prior-year reported number.

Our estimate for net revenues from rental properties stands at $540 million, indicating a 3.6% increase year over year. However, we expect KIM’s leased occupancy to decrease 40 basis points sequentially to 95.9% in the to-be-reported quarter. We estimate a year-over-year increase of 3.4% in its second-quarter interest expenses.

Before the second-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly FFO per share has remained unchanged at 46 cents for more than three months. It implies a rise of 4.6% year over year.

What Our Quantitative Model Predicts for KIMOur proven model predicts a surprise in terms of FFO per share for Kimco this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is the case here.

Kimco currently has an Earnings ESP of +0.63% and a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks That Warrant a LookHere are two other stocks from the retail REIT sector — Regency Centers (REG - Free Report) and Simon Property Group (SPG - Free Report) — that you may want to consider, as our model shows that these also have the right combination of elements to report a surprise this quarter.

Regency Centers, slated to release quarterly numbers on July 29, has an Earnings ESP of +0.68% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Simon Property Group, scheduled to report quarterly numbers on Aug. 10, has an Earnings ESP of +1.21% and carries a Zacks Rank of 3 at present.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.