Kimco Realty's Persistent Leasing Demand Drives Quarterly FFO Growth

Kimco Realty (NYSE: KIM), a leading owner and operator of high-quality, open-air, grocery-anchored shopping centers and mixed-use properties in the United States, reported strong fourth quarter and full-year 2024 results, driven by robust leasing demand and operational excellence. The company's persistent leasing demand, coupled with strategic acquisitions and a disciplined capital allocation strategy, has positioned it well for sustained growth and value creation for shareholders.

Kimco Realty's strategic focus on grocery-anchored shopping centers has contributed to its persistent leasing demand, as these centers offer essential goods and services that drive multiple shopping trips per week. This focus, combined with the company's presence in high-barrier-to-entry markets and strong retail fundamentals, has enabled Kimco to maintain strong occupancy rates and secure favorable lease terms. The company's acquisition of RPT Realty in January 2024 expanded its portfolio while maintaining strong operational metrics, with a 96.3% occupancy rate and remarkable 35.4% cash rent spreads on new leases (Kimco Realty, 2025).



Kimco Realty's strong leasing performance has translated into significant Same-Property Net Operating Income (NOI) growth, driven by increased occupancy rates, higher cash rent spreads, successful integration of acquisitions, and overall operational excellence. The company produced a 3.2% growth in Same-Property NOI over the same period a year ago, demonstrating its ability to create value for shareholders through disciplined capital allocation and strategic decision-making.

The company's acquisition of Waterford Lakes Town Center in Orlando for $322 million and Markets at Town Center in Jacksonville for $108 million reflects its strategic focus on Florida markets, capitalizing on population migration trends and strong retail fundamentals in the region. These acquisitions, combined with the structured investment program, showcase a sophisticated capital allocation strategy targeting blended returns of 7-8% (Kimco Realty, 2025).

Kimco Realty's 2025 outlook, projecting net income of $0.70-$0.72 per share and FFO of $1.70-$1.72 per share, reflects conservative but achievable targets. The projected credit loss of 75-100 basis points indicates prudent risk management, while Moody's positive outlook revision could lead to lower borrowing costs and enhanced financial flexibility (Kimco Realty, 2025).

In conclusion, Kimco Realty's persistent leasing demand, driven by its strategic focus on grocery-anchored shopping centers and supported by strategic acquisitions and a disciplined capital allocation strategy, has translated into strong quarterly FFO growth. The company's ability to maintain strong occupancy rates, secure favorable lease terms, and create value for shareholders positions it well for sustained growth and value creation in the future.