Kimco Realty OP Posts 77% Net Income Surge on Strong Rental Revenue

TL;DR

**Kimco Realty OP is crushing it with a 77% net income jump, making it a solid buy for dividend-hungry investors.**

AI Summary

Kimco Realty OP, LLC reported a robust financial performance for the nine months ended September 30, 2025, with net income attributable to the Company surging to $433,578 thousand, a significant increase from $244,747 thousand in the prior year, representing a 77.1% rise. Revenues from rental properties, net, also saw a healthy increase, reaching $1,583,329 thousand for the nine-month period in 2025, up from $1,498,001 thousand in 2024, an increase of 5.7%. Operating income for the nine months ended September 30, 2025, was $573,525 thousand, a substantial improvement from $462,696 thousand in the same period of 2024, marking a 23.9% increase. However, interest expense rose to $245,842 thousand for the nine months ended September 30, 2025, compared to $224,122 thousand in 2024, indicating increased borrowing costs. The company also experienced a gain on the sale of properties of $43,514 thousand for the nine months ended September 30, 2025, a significant jump from $944 thousand in the prior year, contributing positively to income. Total assets slightly decreased to $19,880,039 thousand as of September 30, 2025, from $20,309,896 thousand at December 31, 2024, while total liabilities also decreased to $9,195,037 thousand from $9,464,107 thousand over the same period. Diluted net income per common share increased to $0.60 for the nine months ended September 30, 2025, from $0.32 in 2024.

Why It Matters

Kimco Realty OP's substantial increase in net income and rental property revenue signals strong operational health in the retail real estate sector, which is crucial for investors seeking stable dividend income from REITs. The significant gain on property sales suggests effective portfolio management and potential for further asset optimization, impacting future growth prospects. For employees, this performance indicates a stable and potentially growing company, while customers benefit from well-maintained and strategically located properties. In a competitive market, Kimco's ability to boost revenue and net income, despite rising interest expenses, demonstrates resilience and a competitive edge, potentially attracting more capital and strengthening its market position against rivals.

Risk Assessment

Risk Level: medium — While net income and revenues are up, the company's interest expense increased to $245,842 thousand for the nine months ended September 30, 2025, from $224,122 thousand in 2024, indicating sensitivity to rising interest rates. Additionally, total assets decreased from $20,309,896 thousand to $19,880,039 thousand, and cash, cash equivalents, and restricted cash significantly dropped from $689,731 thousand to $160,481 thousand, which could impact liquidity and future investment capacity.

Analyst Insight

Investors should consider Kimco Realty OP's strong net income growth and increased rental revenues as a positive indicator for its core business. However, they should closely monitor the rising interest expenses and the significant decrease in cash and cash equivalents, which could pose future liquidity challenges or impact dividend sustainability. A deeper dive into the company's debt maturity schedule and refinancing strategies is warranted.

Financial Highlights

revenue

$1,583,329,000

total Assets

$19,880,039,000

net Income

$433,578,000

eps

$0.60

cash Position

$160,500,000

revenue Growth

+5.7%

Revenue Breakdown

Key Numbers

• $433.6M — Net income attributable to the Company (Increased 77.1% from $244.7M in 2024 for the nine months ended September 30.)
• $1.58B — Revenues from rental properties, net (Increased 5.7% from $1.49B in 2024 for the nine months ended September 30.)
• $573.5M — Operating income (Increased 23.9% from $462.7M in 2024 for the nine months ended September 30.)
• $245.8M — Interest expense (Increased from $224.1M in 2024 for the nine months ended September 30.)
• $43.5M — Gain on sale of properties (Significantly up from $0.9M in 2024 for the nine months ended September 30.)
• $0.60 — Diluted net income per common share (Increased from $0.32 in 2024 for the nine months ended September 30.)
• $160.5M — Cash, cash equivalents and restricted cash (Decreased from $689.7M at December 31, 2024.)
• $19.88B — Total assets (Slightly decreased from $20.31B at December 31, 2024.)

Key Players & Entities

• Kimco Realty OP, LLC (company) — registrant for the 10-Q filing
• Kimco Realty Corporation (company) — Parent Company and REIT
• SEC (regulator) — Securities and Exchange Commission
• $433,578 thousand (dollar_amount) — Net income attributable to the Company for nine months ended September 30, 2025
• $244,747 thousand (dollar_amount) — Net income attributable to the Company for nine months ended September 30, 2024
• $1,583,329 thousand (dollar_amount) — Revenues from rental properties, net, for nine months ended September 30, 2025
• $1,498,001 thousand (dollar_amount) — Revenues from rental properties, net, for nine months ended September 30, 2024
• $245,842 thousand (dollar_amount) — Interest expense for nine months ended September 30, 2025
• $224,122 thousand (dollar_amount) — Interest expense for nine months ended September 30, 2024
• $43,514 thousand (dollar_amount) — Gain on sale of properties for nine months ended September 30, 2025

FAQ

Risk Factors

• Increased Interest Expense [medium — financial]: Interest expense rose to $245,842,000 for the nine months ended September 30, 2025, from $224,122,000 in the prior year. This indicates an increase in borrowing costs, which could impact profitability if not managed effectively.
• Asset and Liability Fluctuations [low — financial]: Total assets decreased slightly to $19,880,039,000 as of September 30, 2025, from $20,309,896,000 at December 31, 2024. Total liabilities also decreased to $9,195,037,000 from $9,464,107,000. While a decrease in liabilities is generally positive, significant shifts in asset and liability levels warrant monitoring for underlying operational or strategic changes.
• Dependence on Property Sales [medium — operational]: The company reported a significant gain on the sale of properties of $43,514,000 for the nine months ended September 30, 2025, a substantial jump from $944,000 in the prior year. While this contributed positively to income, over-reliance on property sales for income generation can be volatile.

Industry Context

Kimco Realty OP, LLC operates within the retail real estate investment trust (REIT) sector, which is characterized by its dependence on consumer spending and e-commerce trends. The industry is competitive, with companies vying for prime locations and strong tenant relationships. Recent trends include a focus on necessity-based retail and omnichannel strategies to adapt to evolving consumer behaviors.

Regulatory Implications

As a publicly traded entity, Kimco Realty OP, LLC is subject to SEC regulations and accounting standards, requiring transparent financial reporting. Changes in tax laws or real estate regulations could impact its operational costs and profitability. Compliance with environmental, social, and governance (ESG) standards is also becoming increasingly important for investor relations.

What Investors Should Do

1. Monitor interest expense trends.
2. Analyze the sustainability of property sale gains.
3. Evaluate operating income growth drivers.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reporting period showing significant net income growth and increased operating income, alongside higher interest expenses and substantial gains from property sales.
• 2024-12-31: As of December 31, 2024 — Prior period balance sheet reference point, showing higher total assets and liabilities compared to September 30, 2025.

Glossary

Net income attributable to the Company

The portion of a company's profit that is available to its shareholders after all expenses, taxes, and preferred stock dividends have been paid. (Key indicator of profitability for Kimco Realty OP, LLC's common shareholders, showing a substantial increase of 77.1%.)

Revenues from rental properties, net

The income generated from leasing out properties after deducting any direct operating expenses related to those properties. (Represents the core revenue stream for Kimco Realty OP, LLC, showing a steady increase of 5.7%.)

Operating income

Profitability from a company's core business operations, before interest and taxes. (Demonstrates the efficiency of Kimco Realty OP, LLC's primary business activities, with a strong 23.9% increase.)

Gain on the sale of properties

The profit realized when a company sells an asset (in this case, real estate) for more than its book value. (A significant contributor to net income for the period, highlighting strategic asset disposition activities.)

Diluted net income per common share

A measure of a company's profitability that accounts for all potential dilutive common shares, such as stock options and convertible securities. (Indicates the earnings available to each outstanding share of common stock, showing a significant improvement from $0.32 to $0.60.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Kimco Realty OP, LLC has demonstrated robust growth, with net income surging by 77.1% to $433.6M and operating income increasing by 23.9% to $573.5M. Revenue from rental properties saw a more modest 5.7% increase. While total assets and liabilities have slightly decreased, interest expenses have risen, indicating higher borrowing costs. A notable change is the significant increase in gains from property sales, contributing substantially to the improved net income.

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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