Kimco raises 2026 profit forecast as occupancy hits record

Kimco Realty Corp. (KIM) said in its 8-K filing on Oct. 29 that third-quarter 2026 net income rose to $272.5 million, or 41 cents per diluted share, and that it raised its full-year 2026 outlook for net income and funds from operations, or FFO.

Kimco is a real estate investment trust and owner of grocery-anchored shopping centers and mixed-use properties in the United States. As of Sept. 30, 2026, it held interests in 561 U.S. shopping centers and mixed-use assets comprising 99 million square feet of gross leasable space, the company said.

Here's how the company did:

• Net income per diluted share: 41 cents vs. 19 cents a year earlier
• FFO per diluted share: 47 cents vs. 44 cents a year earlier
• Revenue: $546.1 million vs. $535.9 million a year earlier

Net income rose from $130.2 million a year earlier. The company said the increase was primarily driven by $122.4 million more of gains on sales of properties, net of impairments.

FFO was $316.2 million for the quarter. The company said FFO per diluted share grew 6.8% from a year earlier.

2026 outlook

The company raised its 2026 net income per diluted share outlook to $1.07 to $1.09, from $1.00 to $1.03 previously.

It raised its FFO per diluted share outlook to $1.84 to $1.86, from the $1.83 to $1.84 range it gave on Aug. 4.

CEO Conor Flynn said, “Our third quarter results reflect strong execution, with record occupancy, significant pricing power on new leases and further acceleration in same property NOI growth.” He added, “This positive momentum allowed us to again raise our full year guidance, which would mark the third consecutive year of FFO per share growth above 5%.”

Leasing and operations

Pro-rata occupancy reached a record 96.6%, up 90 basis points from a year earlier. Small-shop occupancy was 92.9%.

The company executed 444 leases covering 2.7 million square feet. New leases carried pro-rata cash rent spreads of 31.5%. Same property net operating income grew 4.9% year over year, driven by a 3.2% increase in minimum rents.

Property sales and investments

The company sold The Witmer, a 440-unit multifamily building at its Pentagon Centre property in Pentagon City, Virginia, for $211.5 million. The cap rate on the sale was approximately 5.1%.

It also completed the sale of four Costco-anchored assets for about $127 million. It used 1031 exchange proceeds to buy Pompano Marketplace in Pompano Beach, Florida, for $53 million, and Sunshine Plaza in Fort Lauderdale, Florida, for $56 million.

Capital returns

The company repurchased 6.3 million shares of common stock for $150 million, at a weighted average price of $23.81 per share. It also repurchased about $74 million of preferred stock.

The board declared a quarterly cash dividend of 28 cents per common share, a 7.7% increase over the same quarter a year earlier. It is payable Dec. 18 to shareholders of record on Dec. 4.