Kimco Realty lifts FFO guidance as higher occupancy gains bolster Q3

[REIT. Real estate investment trust. Financial Market. Hand pressing button on screen]
Funtap/iStock via Getty Images

Kimco Realty (KIM [https://seekingalpha.com/symbol/KIM]) on Thursday nudged up its full-year guidance for funds from operations after delivering a double-beat on third-quarter numbers, aided by occupancy gains.

The shopping center REIT now expects 2025 FFO per share [https://seekingalpha.com/pr/20285835-kimco-realty-announces-third-quarter-2025-results] of $1.75-$1.76 (midpoint $1.755), topping the $1.74 average analyst estimate and revised from $1.73-$1.75 (midpoint $1.74) in the previous outlook.

"The all-time highs for small shop occupancy and the rent commencement pipeline are great examples of the strong demand for our product and provide real visibility into our growth potential," the company said in a statement.

Q3 FFO per share of $0.44, slightly exceeding the $0.43 consensus, held steady from the earlier quarter and ticked up from $0.43 in Q3 2024.

Q3 revenue of $535.9M, beating the $521.4M expected, rose from $525.2M in Q2 and $507.6M a year before.

Operating expenses were $352.3M in Q3, compared with $358.3M in the prior three-month period and $336.9M in last year's Q3.

The company signed 427 leases totaling 2.3M square feet during Q3, generating blended pro-rata cash rent spreads on comparable spaces of 11.1%, with new leases up 21.1% and renewals and options growing 8.2%.

Pro-rata leased occupancy rose to 95.7% from 95.4% in Q2. Pro-rata anchor and small shop occupancy ending Q3 at 97.0% and 92.5%, respectively, each representing a 30-basis-point sequential increase.

Same-property net operating income grew 1.9% Y/Y in Q3, mainly reflecting a 2.1% gain in minimum rents.

The spread between Kimco's (KIM [https://seekingalpha.com/symbol/KIM]) ro-rata leased rate versus economic occupancy level was 360 basis points, a 50 basis-point sequential rise, equating to $71M in future annual base rent from leases that have been signed and have not yet commenced.

MORE ON KIMCO REALTY

* Kimco Realty: Fundamentals Are Strong, But Valuation Limits Upside (For Now) [https://seekingalpha.com/article/4828691-kimco-realty-stock-fundamentals-strong-but-valuation-limits-upside-now]
* Kimco Shows Clear Evidence Of Negotiating Power [https://seekingalpha.com/article/4827737-kimco-shows-clear-evidence-of-negotiating-power]
* Kimco Realty Corporation (KIM) Presents At BofA Securities 2025 Global Real Estate Conference Transcript [https://seekingalpha.com/article/4821780-kimco-realty-corporation-kim-presents-at-bofa-securities-2025-global-real-estate-conference]
* Kimco Realty beats top-line and bottom-line estimates; raises FY25 outlook [https://seekingalpha.com/news/4511170-kimco-realty-beats-top-line-and-bottom-line-estimates-raises-fy25-outlook]
* Seeking Alpha’s Quant Rating on Kimco Realty [https://seekingalpha.com/symbol/KIM/ratings/quant-ratings]