Kimco Realty Hits Record Occupancy and Raises Dividend
On August 4, Kimco Realty (NYSE:KIM) reported second-quarter results that pushed portfolio occupancy to a record high of 96.4%, with small shop occupancy also reaching an all-time peak at 92.9%. The company raised its quarterly dividend by 12% to $0.28 per share, ahead of schedule and accompanied by upward revisions in full-year guidance for funds from operations (FFO) and net income. Kimco signed new leases with a cash rent spread of 40.4%, contributing to an overall blended spread of 13.1% across nearly half a million square feet. This strong leasing performance translated into same-property net operating income growth of 3.5%. The company also sold $270 million in assets and used the proceeds for new acquisitions, while maintaining significant liquidity with $2.7 billion on hand. Despite improved occupancy metrics and higher guidance, Kimco's balance sheet grew heavier due to increased debt issuance totaling $600 million in exchangeable senior notes. Net income per diluted share fell slightly year-over-year as gains from property sales declined.
Topics: capital_recycling dividend_increase lease_signings occupancy