Kimco's Net Income Surges 75% on Strong Rental Revenue Growth

TL;DR

**Kimco's crushing it with rental income and property sales, making it a solid buy despite rising interest costs.**

AI Summary

Kimco Realty Corporation reported a significant increase in net income for the nine months ended September 30, 2025, reaching $439.50 million, a substantial rise from $251.44 million in the same period of 2024. This 74.8% increase was primarily driven by a 5.7% growth in revenues from rental properties, which climbed to $1.58 billion from $1.50 billion. Operating income also saw a robust increase, jumping to $573.53 million in 2025 from $462.70 million in 2024, a 23.9% improvement. The company's strategic outlook appears positive, with a notable gain on the sale of properties, reaching $43.51 million in 2025 compared to just $0.94 million in 2024. However, interest expense increased to $245.84 million from $224.12 million, reflecting a 9.7% rise. Total assets slightly decreased to $19.88 billion from $20.31 billion, while total liabilities also saw a reduction to $9.20 billion from $9.46 billion. The company's common stock outstanding decreased slightly to 677,195,122 shares as of October 22, 2025, from 679,493,522 shares at December 31, 2024.

Why It Matters

Kimco's strong performance, particularly the 74.8% surge in net income and 5.7% increase in rental property revenues, signals robust health in the retail REIT sector, which could attract more investor interest. This positive trend suggests that Kimco is effectively managing its properties and capitalizing on market demand, potentially leading to higher dividends for investors. For employees, sustained growth could mean job security and opportunities. In a competitive landscape, Kimco's ability to significantly increase operating income by 23.9% demonstrates its competitive edge and operational efficiency, potentially putting pressure on rivals.

Risk Assessment

Risk Level: medium — While net income and revenues are up, the company's interest expense increased by 9.7% to $245.84 million for the nine months ended September 30, 2025, compared to $224.12 million in the prior year. This rising cost of debt, coupled with a slight decrease in total assets from $20.31 billion to $19.88 billion, indicates potential sensitivity to interest rate fluctuations and a need for careful balance sheet management.

Analyst Insight

Investors should consider Kimco's strong rental property revenue growth and significant gain on property sales as positive indicators. However, monitor the increasing interest expense and overall debt levels, as these could impact future profitability. A deeper dive into their debt maturity schedule and hedging strategies would be prudent.

Financial Highlights

revenue

$1.58B

total Assets

$19.88B

total Debt

$9.20B

net Income

$439.50M

revenue Growth

+5.7%

Revenue Breakdown

Key Numbers

• $439.50M — Net Income (9M 2025) (Increased 74.8% from $251.44M in 9M 2024)
• $1.58B — Revenues from Rental Properties (9M 2025) (Increased 5.7% from $1.50B in 9M 2024)
• $573.53M — Operating Income (9M 2025) (Increased 23.9% from $462.70M in 9M 2024)
• $43.51M — Gain on Sale of Properties (9M 2025) (Significant increase from $0.94M in 9M 2024)
• $245.84M — Interest Expense (9M 2025) (Increased 9.7% from $224.12M in 9M 2024)
• $19.88B — Total Assets (Sept 30, 2025) (Slight decrease from $20.31B at Dec 31, 2024)
• $9.20B — Total Liabilities (Sept 30, 2025) (Decreased from $9.46B at Dec 31, 2024)
• 677.2M — Common Shares Outstanding (Oct 22, 2025) (Slight decrease from 679.5M at Dec 31, 2024)

Key Players & Entities

• KIMCO REALTY CORP (company) — registrant
• Kimco Realty OP, LLC (company) — operating company and subsidiary
• New York Stock Exchange (regulator) — exchange where KIM common stock is traded
• $439.50 million (dollar_amount) — Net income for nine months ended September 30, 2025
• $251.44 million (dollar_amount) — Net income for nine months ended September 30, 2024
• $1.58 billion (dollar_amount) — Revenues from rental properties for nine months ended September 30, 2025
• $1.50 billion (dollar_amount) — Revenues from rental properties for nine months ended September 30, 2024
• $43.51 million (dollar_amount) — Gain on sale of properties for nine months ended September 30, 2025
• $245.84 million (dollar_amount) — Interest expense for nine months ended September 30, 2025
• 677,195,122 shares (dollar_amount) — Common stock outstanding as of October 22, 2025

FAQ

Risk Factors

• Interest Rate Sensitivity [medium — financial]: The company's interest expense increased by 9.7% to $245.84 million for the nine months ended September 30, 2025, from $224.12 million in the prior year. This rise indicates sensitivity to interest rate fluctuations, which could impact future profitability and debt servicing costs.
• Real Estate Market Fluctuations [medium — market]: While revenues from rental properties grew 5.7%, the total asset base saw a slight decrease from $20.31 billion to $19.88 billion. This suggests potential market pressures or strategic divestitures that could impact overall scale and future growth opportunities.
• Property Sale Gains Volatility [low — operational]: The significant increase in gain on sale of properties to $43.51 million in 2025 from $0.94 million in 2024 highlights the non-recurring nature of such gains. Over-reliance on these gains can mask underlying operational performance and create earnings volatility.

Industry Context

Kimco Realty Corporation operates within the highly competitive retail real estate investment trust (REIT) sector. The industry is influenced by consumer spending trends, e-commerce penetration, and evolving retail formats. Companies like Kimco focus on owning and managing well-located shopping centers, often anchored by essential retailers, to maintain stable rental income and occupancy.

Regulatory Implications

As a publicly traded REIT, Kimco is subject to SEC regulations and tax laws specific to REITs, which require distributing a significant portion of taxable income to shareholders. Compliance with these regulations is crucial for maintaining its tax-advantaged status and investor confidence.

What Investors Should Do

1. Monitor interest expense trends
2. Evaluate sustainability of net income growth
3. Assess asset and liability management

Key Dates

• 2025-09-30: Nine Months Ended — Key period for financial performance review, showing strong net income growth and revenue increase.
• 2025-10-22: Common Shares Outstanding Date — Indicates a slight reduction in shares outstanding, potentially beneficial for EPS if net income continues to grow.
• 2024-12-31: Previous Year End — Baseline for comparison of assets, liabilities, and share count.

Glossary

Operating Income

Profitability from a company's core business operations before accounting for interest and taxes. (Increased by 23.9% to $573.53 million, indicating strong performance in Kimco's primary rental property business.)

Gain on Sale of Properties

Profit realized from selling real estate assets above their book value. (A significant increase to $43.51 million contributed substantially to net income, though it's a non-recurring item.)

Interest Expense

The cost incurred by a company for borrowed funds. (Rose by 9.7% to $245.84 million, highlighting the impact of debt financing and interest rate sensitivity.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Kimco Realty Corporation demonstrates robust financial improvement. Revenue from rental properties grew by 5.7% to $1.58 billion, and operating income saw a substantial 23.9% increase to $573.53 million, indicating strong core operational performance. Net income more than doubled, rising 74.8% to $439.50 million, significantly boosted by a large gain on property sales ($43.51 million vs. $0.94 million). However, interest expenses also climbed by 9.7%, reflecting increased borrowing costs or debt levels.

Key Financial Figures

• $1.00 — Cumulative Redeemable Preferred Stock, $1.00 par value per share . KIMprL New Yo

Filing Documents

• kim-20250930.htm (10-Q) — 7362KB
• kim-ex31_1.htm (EX-31.1) — 14KB
• kim-ex31_2.htm (EX-31.2) — 13KB
• kim-ex31_3.htm (EX-31.3) — 17KB
• kim-ex31_4.htm (EX-31.4) — 14KB
• kim-ex32_1.htm (EX-32.1) — 7KB
• kim-ex32_2.htm (EX-32.2) — 7KB
• kim-ex32_3.htm (EX-32.3) — 8KB
• kim-ex32_4.htm (EX-32.4) — 8KB
• 0001193125-25-258133.txt ( ) — 24088KB
• kim-20250930.xsd (EX-101.SCH) — 2428KB
• kim-20250930_htm.xml (XML) — 5098KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 4 Condensed Consolidated Financial Statements of Kimco Realty Corporation and Subsidiaries (unaudited) Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 4 Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2025 and 2024 5 Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2025 and 2024 6 Condensed Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2025 and 2024 7 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 9 Condensed Consolidated Financial Statements of Kimco Realty OP, LLC and Subsidiaries (unaudited) Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 10 Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2025 and 2024 11 Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2025 and 2024 12 Condensed Consolidated Statements of Changes in Capital for the Three and Nine Months Ended September 30, 2025 and 2024 13 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2025 and 2024 15 Kimco Realty Corporation and Subsidiaries and Kimco Realty OP, LLC and Subsidiaries Notes to Condensed Consolidated Financial Statements (unaudited) 16 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 42 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 56 Item 4.

Controls and Procedures

Controls and Procedures. 57

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1. Legal Proceedings. 58 Item 1A. Risk Factors. 58 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 58 Item 3. Defaults Upon Senior Securities. 58 Item 4. Mine Safety Disclosures. 58 Item 5. Other Information. 58 Item 6. Exhibits. 59

Signatures

Signatures 60 3 KIMCO REALTY CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDAT ED BALANCE SHEETS (unaudited) (in thousands, except share information) September 30, 2025 December 31, 2024 Assets: Real estate, net of accumulated depreciation and amortization of $ 4,717,097 and $ 4,360,239 , respectively $ 16,750,039 $ 16,810,333 Investments in and advances to real estate joint ventures 1,454,358 1,487,675 Other investments 109,334 107,347 Cash, cash equivalents and restricted cash 160,481 689,731 Mortgage and other financing receivables, net 623,237 444,966 Accounts and notes receivable, net 351,719 340,469 Operating lease right-of-use assets, net 129,217 126,441 Other assets 301,654 302,934 Total assets (1) $ 19,880,039 $ 20,309,896 Liabilities: Notes payable, net $ 7,754,717 $ 7,964,738 Mortgages payable, net 470,123 496,438 Accounts payable and accrued expenses 316,485 281,867 Dividends payable 6,364 6,409 Operating lease liabilities 121,265 117,199 Other liabilities 526,083 597,456 Total liabilities (1) 9,195,037 9,464,107 Redeemable noncontrolling interests 46,783 47,877 Commitments and Contingencies (Footnote 19) Stockholders' equity: Preferred stock, $ 1.00 par value, authorized 7,054,000 shares; Issued and outstanding (in series) 20,748 and 20,806 shares, respectively; Aggregate liquidation preference $ 553,196 and $ 556,113 , respectively 21 21 Common stock, $ .01 par value, authorized 1,500,000,000 shares; Issued and outstanding 677,195,722 and 679,493,522 shares, respectively 6,772 6,795 Paid-in capital 10,984,725 11,033,485 Cumulative distributions in excess of net income ( 496,466 ) ( 398,792 ) Accumulated other comprehensive (loss)/income ( 8,844 ) 11,038 Total stockholders' equity 10,486,208 10,652,547 Noncontrolling interests 152,011 145,365 Total equity 10,638,219

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