Kimco Realty Corporation Q1 FY2026 earnings call

• Priorities for 2026: Convert signed but not open pipeline to cash flow, recycle capital, modernize operating platform, push occupancy and same site NOI growth. • Executing on priorities: FFO up, leasing strong with record pipeline, occupancy high. • Leasing highlights: 576 deals, new lease spreads, strong renewals, lifestyle portfolio activity, high average new lease rents. • Macro environment: Geopolitical uncertainty, but portfolio's durability in discount/necessity-driven retail shows resilience. • Operational transformation: Focus on velocity to convert signed leases to cash-paying rent, tracking ahead of plan for 2026 commencements.

For the first quarter, FFO was 46 cents per diluted share, a 4.5% increase over prior year. Same property NOI grew 1.7%. Leasing: 576 deals totaling 4.4 million square feet, new lease spreads 23.8%, combined spreads 11.3%. Signed but not open pipeline grew to $77 million in annual base rent. Occupancy was 96.3% pro rata, 50 basis points higher than year ago. RPT portfolio occupancy surpassed Kimco's legacy assets. Average new lease rents near $29 per square foot, highest ever reported.

• Tightened full-year 2026 FFO outlook to $1.81 to $1.84 per diluted share from previous $1.80 to $1.84. • Raised full-year same-site NOI growth outlook to 2.8% to 3.5%. • Tightened full-year credit loss assumption to 65 to 90 basis points from 75 to 100 basis points. • Outlook dependent on timing of capital activity like debt refinancing, acquisitions, dispositions, redevelopment spending.

Q: On capital allocation front, how's market for ground leases on apartments and acceleration of capital recycling?

A: Strong market, substantial pipeline on disposition and acquisition structured side, feeling good about execution as year progresses.

Q: On occupancy upside in 2026 and plans to capture it?

A: Q1 occupancy dip due to American Signature bankruptcy, momentum in 2026 with high retention rates, demand still strong, economic occupancy lift expected.

Q: On non-cash gap revenue cadence?

A: First quarter had larger below-market rents recaptured, back half expected to have normal cadence of $8 to $10 million per quarter.

Q: On importance of size, liquidity, and being relevant to investors?

A: Compelling investment to generalists with relative discount, strong balance sheet, growth profile, and team.

Q: On tenant perspective in leasing?

A: Tenants more flexible, aggressive, willing to sign leases sooner, working constructively with landlord, value engineering to lower CapEx costs.

Q: On multi family units and disposition pipeline cap rates?

A: Near term projects have gross yields in fives, mid fives; disposition side has high fours, low fives, retail amenities help demand.

Q: On market rent growth slowdown and anchor leasing?

A: No meaningful slowdown, new lease rents strong, almost all anchor leases resolved.

Q: On operating portfolio at peak level and growth trajectory?

A: Number one objective is maximizing cash flow growth, exploring backfilling and re-merchandising for growth.

Q: On forecasting leasing costs and AFFO going forward?

A: Capex load should taper as economic occupancy grows, good leasing discipline continues, AFFO growth driven by inflection point in private capital markets.

Q: On bad debt and guidance?

A: Credit loss better in first quarter, primary driver of FFO growth is higher minimum rents, watchful on share buybacks.

Q: On apartment in Hawaii exposure from ground leases?

A: Relatively small, focus on CapEx light activation opportunities, underutilized parking lots.

Q: On disconnect in multiple relative to peers and what's needed to change?

A: Combination of sector out of favor and balance sheet improvement, consistency of earnings growth, transformation to grocery-anchored portfolio.

Q: On transaction side, sourcing deals and competitiveness?

A: Competitive market, confident in executing, disciplined, differentiators in proprietary deal flow, seeing opportunity in pipeline.

Q: On years until normalized leased economic spread?

A: Room to run in economic occupancy, anticipate compression as cash flow growth realized, healthy spread continues to fuel future pipeline