キムコ・リアルティ 2026年第3四半期 決算説明会サマリー

主要なポイント

• 希薄化後1株あたりFFOは、主に不動産運営事業が牽引し、前年同期比6.8%増の0.47ドルとなりました。経営陣は通期の1株あたりFFO見通し（ガイダンス）を1.84ドル〜1.86ドルに引き上げました。
• 既存物件NOI（純営業利益）の伸びは、第1四半期の1.7%、第2四半期の3.5%から4.9%へと加速しました。通期の既存物件NOI見通しは3.5%〜3.8%に引き上げられました。
• 賃貸済入居率は過去最高の96.6%に達し、小規模店舗の入居率も過去最高の92.9%を維持しました。アンカー店舗の入居率は前四半期比で40ベーシスポイント上昇し、98.2%となりました。
• キムコは270万平方フィートに相当する444件の賃貸契約を締結し、加重平均（ブレンデッド）現金ベーススプレッドは12%となりました。新規契約スプレッドは31.5%に達し、20四半期連続で2桁の新規契約スプレッドを記録しました。
• 年間基本賃料で約7,600万ドルに相当する400件以上の締結済み契約が、まだ賃料発生に至っていません。そのうち約85%にあたる約6,400万ドルは、2026年第4四半期から2027年にかけて開始される予定です。
• キムコは当四半期を、同社として過去最高水準となる連結純有利子負債対EBITDA倍率5.0倍、25億ドル以上の手元流動性を確保して終えました。当四半期中に1億5,000万ドルの普通株式と約7,400万ドルの優先株式の自社株買いを実施しました。

主要財務データ

事業および運営実績

ポートフォリオ全体の来客数は前年同期比で約3%増加しました。経営陣は、新規の商業施設供給が限られる中、キムコが食品スーパー主導型（グロサリー・アンカー）センターや日常生活需要に特化した物件に集中投資していることが需要を牽引したと考えています。

賃貸済入居率は96.6%に達した一方、経済的入居率は92.7%となりました。この390ベーシスポイントのギャップは、契約締結済みでまだ賃料支払いが始まっていない400件以上の物件を反映しています。キムコは現在、2026年中に開始される契約からの賃料収入を、当初の予想を約20%上回る3,400万ドルと見込んでいます。

賃貸価格設定は堅調を維持しました。新規契約の現金ベーススプレッドは31.5%を記録し、そのうちアンカーテナント向けが39.9%、非アンカーテナント向けが21%となりました。更新時およびオプション行使時のスプレッドはそれぞれ7.3%と7.7%でした。

経営陣によると、当四半期に締結された大型アンカー向け新規契約の30%以上に年次賃料増額条項（エスカレーション）が含まれています。またキムコは、建設、再開発、またはリポジショニングの段階にある食品スーパー案件を28件抱えており、これらが来客数と隣接する小規模店舗の賃料水準を支えると期待されています。

オペレーションモデル「One Kimco」は、賃料発生の迅速化、回収率の向上、オーバーヘッド（固定経費）の削減に貢献しました。リテール物件の共益費（CAM）および保険料の回収率は2024年以降で300ベーシスポイント改善しました。経営陣はこの取り組みを「3回表裏（序盤）」段階と形容しており、管理可能な賃貸サイクルの所要時間は前四半期比で30%短縮されました。

キムコによると、自動化の推進により会社全体で年間5,000時間以上の作業時間が削減されています。取引の引受（アンダーライティング）やテナントの財務審査に自律型エージェントワークフロー（agentic workflows）を新たに導入したことで、処理サイクル時間が約半減しました。

資本配分および物件取引

年初来で、キムコは加重平均還元利回り（キャップレート）5.1%で3億9,100万ドルの資産を売却し、5.8%で1億1,800万ドルを取得しました。経営陣は年間で売買を均衡（ネットニュートラル）させる目標を維持しつつ、2026年の予想取引高を4億ドル〜5億ドルに引き上げました。

同社は、物件売却のキャップレートが5%台前半であるのに対し、取得時のキャップレートは約6%になると予想しています。経営陣は、取得したセンターが売却資産よりも年間成長率で約250〜300ベーシスポイント高い伸びをもたらすと述べています。

キムコは集合住宅物件「Witmer」をキャップレート約5.1%の2億1,150万ドルで売却しました。また、コストコを主要テナントとする4物件の売却益を、サウスフロリダにある2つの食品スーパー主導型ショッピングセンターに再投資しました。

構造化投資プログラムでは、第3四半期中に1億1,500万ドルの返済を受けた一方、3,900万ドルの新規投資を行いました。四半期末以降、キムコは平均利回り10%超で計約4,900万ドルの追加投資2件を完了しました。

第3四半期中、キムコは平均価格23.80ドル（FFO利回り約8%に相当）で1億5,000万ドルの普通株式を買戻しました。経営陣はこの買戻しが従来のガイダンスにプラスに寄与したと説明しています。また同社は、約7,400万ドルの優先株式も買い戻しました。

経営陣の見通し（ガイダンス）

経営陣は業績見通しの上方修正について、賃料発生の早期化、高いテナント維持率、回収率の向上、信用損失の低下、および厳格なコスト管理によるものとしています。同社はFFO予想レンジの中央値から上限付近に着地することに自信を示しつつも、2027年通期の詳細な見通しについては第4四半期決算発表時に公表するとしています。

キムコは、契約済み未オープン案件の年間基本賃料パイプライン7,600万ドルのうち、約6,400万ドルが2026年第4四半期から2027年末までの間に発生し始めると見込んでいます。

2027年に満期を迎える債務は加重平均クーポン4%で計4億6,600万ドルとなっています。経営陣はこれにより足元の借換リスクが限定的であると述べました。またキムコは10月に利率2.8%の社債5億ドルを償還しました。

リスクおよび注視すべき点

• 経営陣は金利のボラティリティの上昇を認知しており、これが取引のタイミング、資金調達条件、および金利に敏感な単一テナント（シングルテナント）物件の価格設定に影響を与える可能性があると指摘しました。
• パイプラインにある構造化投資案件の一部は、取引のタイミングの不確実性により、2026年第4四半期から2027年第1四半期にずれ込む可能性があります。
• アナリストからは、消費や特定の小売カテゴリーへの圧迫について懸念が示されました。経営陣は、テナントの破綻事例は限られており、テナント監視リスト（ウォッチリスト）も過去最小レベルであると述べたものの、商業市場の環境は変動し得ることも認めました。
• 賃料発生の早期化は、引き続き許認可、インフラ設備（ユーティリティ）、自治体、用途地域変更（リゾーニング）、権利取得（エンタイトルメント）の手続きに依存します。
• 優良な食品スーパー主導型センターをめぐるプライベート市場での競合は依然として激しく、金利が上昇しているにもかかわらず、物件取得価格が高止まりする可能性があります。

アナリスト質疑応答のハイライト

買収の見通し：経営陣は、食品スーパー主導型物件2件の買収が数日以内に完了する見込みであり、これにより通期の買収額と売却額がほぼ均衡（ネットニュートラル）へ戻る見通しだと述べました。これらの物件がキムコの第4四半期における取引活動の大部分を占める見込みです。

構造化投資：キムコはこのプログラムについて、従来の融資ではなく、柔軟な資本ソリューション・プラットフォームであると位置づけました。同社の運営ノウハウ、小売業者との関係、および優先交渉権や優先買取権（ROFO/ROFR）により、将来の物件所有権獲得への道筋が開かれます。経営陣は、2027年に向けて市場のボラティリティがさらなる機会を生み出すと期待しています。

入居率および賃料成長：経営陣は、食品スーパー店舗の再開発や競合供給の少なさから、入居率のさらなる上昇余地を見込んでいます。キムコでは2027年に延長オプションのないアンカー契約が56件満期を迎えますが、電話会議時点で上半期満期分の約75%がすでに合意済みまたは手続き中でした。

固定CAM（共益費）への移行：ポートフォリオ全体の約51%が固定共益費（CAM）方式に移行しました。この割合は、キムコの既存保有物件で約70%、新規賃貸契約では90%を超えています。

消費者およびテナントの健全性：経営陣は、ショッピングセンターの底堅い来客数、生活必需品小売への集中的な投資、低水準の信用損失、および小売業者の健全化した貸借対照表（バランスシート）を挙げました。それにもかかわらず、マクロ経済および消費者動向は同社の2027年予算策定プロセスにおいて引き続き考慮事項であると述べました。

集合住宅における資本のリサイクリング：キムコは建築済み、開発中、または権利取得済みの集合住宅（マルチファミリー）を約14,000戸保有しています。経営陣は開発、ジョイントベンチャー、定期借地、開発権利の売却を個別に評価し、このプログラムをより成長性の高いショッピングセンター投資への資金源として活用する計画です。

決算説明会文字起こし全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Hello, everyone. Thank you for joining us, and welcome to Kimco Realty's Third Quarter 2026 Earnings Conference Call. [Operator Instructions] I would now hand the conference over to Dave Bujnicki, Senior Vice President of Investor Relations and Strategy. Please go ahead.

David Bujnicki

Thank you all for joining Kimco's quarterly earnings conference call. With me today are Conor Flynn, CEO; Ross Cooper, President and Chief Investment Officer; Dave Jamieson, Executive Vice President and Chief Operating Officer; Glenn Cohen, Executive Vice President and CFO; as well as other members of the Kimco leadership team who are available for Q&A.

Before we begin, some of our comments today may include forward-looking statements based on management's current beliefs and expectations. These are subject to risks and uncertainties described in our SEC filings, and actual results may differ materially. We assume no obligation to update any forward-looking statements.

We will also reference non-GAAP financial measures. Reconciliations to GAAP are available in our earnings release and supplemental package, both posted to our IR website, along with an accompanying presentation. The same forward-looking caution lies to those materials. Following prepared remarks, we'll open the call to Q&A. To allow a smooth and efficient call, please limit yourself to 1 question and requeue for follow-ups.

And with that, I'll turn the call over to Conor.

Conor Flynn

Good morning, and thanks for joining us. I'll start with the quarter and our strategy, and then Dave, Ross and Glenn will cover operations, transactions and our financial results and outlook. We delivered a strong third quarter and are raising our full year FFO and same-property NOI outlook. FFO per share grew 6.8%, keeping us on track for a third consecutive year of FFO per share growth above 5%. At the start of the year, we said the first quarter would be the low point for same property NOI growth, and that it would accelerate from there. That is exactly what we delivered, 1.7% in the first quarter, 3.5% in the second and 4.9% in the third.

We are also seeing early benefits from One Kimco, our unified operating platform and faster end commencements and greater cost efficiency. Traffic at our centers remained strong, despite higher rates and better on consumer sentiment, up nearly 3% year-over-year. Consumers continue to prioritize convenience and value, and our centers anchored by grocery and everyday essentials sit on their daily path of travel. New supply remains extremely limited, and higher construction and financing costs make new developments even less likely. That has pushed portfolio occupancy to an all-time high with small shop occupancy at its record, and we still have runway as newly signed anchor Oakland and drive traffic to the shops around this.

Rethar's own data shows how much their stores matter to their online business. Stores serve as last mile fulfillment hub. ICSC research found that when a retailer closes a store, its online sales in that trade area fall by more than 11% on average. That is why retention remains near record levels and retailers keep reinvesting in their fleet which supports continued rent growth. That demand drives our operating results. How we allocate capital is what compounds it, and it works like a flywheel. It starts with our currency. Flat growth assets like ground leases and single-tenant properties, multifamily assets that we've built on our own parking lots and the free cash flow that our portfolio generates.

Private buyers paid full value for those flat and multifamily assets with our dispositions this year averaging a cap rate of approximately 5%. And with approximately 14,000 multifamily units either built, active or entitled, this provides a source of additional currency over time. We put it to work where it earns the most, acquiring grocery-anchored centers with higher yields and stronger growth, redeveloping [indiscernible] centers at low double-digit returns, including roughly 28 grocery boxes and making structured investments that's a future acquisition.

When our stock is the better value, we buy it back. The higher growth investments generate more free cash flow and the cycle repeats, raising our grocery concentration each time. We believe our valuation does not reflect the quality and growth of the business. Private market frank for open-air grocery-anchored centers sits in the 5% to 6% range, consistent with where we bought and sold this year, while our share price implies a cap rate in the mid- to high 7% range. We believe this disconnect creates a compelling opportunity. Rates may drive the headlines, but over time, fundamentals drive value, and we are not done.

As we look at 2027, a meaningful part of our growth is already signed. We have 1 of the largest signed but not open pipeline in the sector and among the lowest debt maturities next year relative to our peer group, keeping our refinancing exposure minimal. Glenn will walk through those building blocks. That is why we believe Kimco offers consistent growth and a growing dividend at a discounted valuation.

With that, I'll turn it over to Dave.

David Jamieson

Thanks, Conor, and good morning. Demand across our portfolio remains broad indeed. Lease occupancy reached an all-time high of 96.6%, while small shop occupancy remained at its record 92.9%. Anchor occupancy increased 40 basis points sequentially to 98.2% within 70 basis points of our all-time high. Just as important, volume and pricing are moving together. We signed 444 leases totaling 2.7 million square feet at a blended cash spread of 12% on comparable basis. New lease spreads were 31.5%, with anchors at 39.9% and nonanchors at 21%, highlighting the meaningful mark-to-market opportunity that remains in our small shop portfolio.

That marks our 20th consecutive quarter of double-digit new lease spreads. Renewals and options were 7.3% and 7.7%, respectively. A meaningful amount of our future growth is already signed. Economic occupancy increased 30 basis points to 92.7%, narrowing the spread with lease occupancy to 390 basis points. That spread represents over 400 signed leases and approximately $76 million of annual base rent that is yet to commence. Our focus now is converting that sign pipeline into paying rent as quickly as possible. That is where One Kimco comes in. helping us convert leasing demand into earnings more quickly.

We are seeing meaningful improvement on what we can control. Once a lease is signed, the next step is getting that tenant to rent commence. By pulling forward rent commencement dates, we now expect $34 million of rent from 2026 commencements, nearly 20% above our original expectations. That is a tangible example of how One Kimco is helping us convert leasing demand into earnings more quickly. We're also using the scale of the platform to drive operating leverage. Recoveries on retail CAM and insurance have improved 300 basis points since 2024, and we continue to drive G&A efficiency as the platform grows.

We are also deploying AI across the platform to find additional efficiencies, that work is still early, but together, these efforts show how One Kimco translate our scale into better operating performance. So the opportunity is [indiscernible] forward, strong retailer demand, significant signed rent waiting to commence in a platform turning that demand and to revenue faster and more efficiently.

With that, I'll turn it over to Ross.

Ross Cooper

Thank you, Dave, and good morning. The third quarter advanced the capital recycling strategy Conor described, monetizing lower group assets at attractive valuations and reinvesting where we can earn both higher yields and stronger growth. Recent market volatility has affected commercial real estate sectors unevenly, but high-quality open-air retail continues to hold up well. Pricing remains competitive, transactions are closing, and there is still significantly more capital looking to invest in the sector and product available. That depth of private demand reinforces the valuation disconnect Conor described, and it makes sourcing a real differentiator.

Our joint venture platform and structured investment program let us find opportunities before they reach a crowded bidding process. If rates remain elevated, we could see more dislocation, and we are positioned to act where risk-adjusted returns are attractive whether through core acquisitions from sellers who value certainty of execution or structured investments for owners of high-quality centers who need flexible capital. We see that as a growing source of opportunity as we move into 2027. During the quarter, we sold the Witmer for $211.5 million at approximately 5.1% cap rate.

Together with the Milton last quarter at a 4.9% cap rate, it shows value we create by developing multifamily on land we already own and monetizing it. We also completed the previously announced $127 billion sale of 4 Costco-anchored assets with low contractual rent growth and redeployed the proceeds through 1031 exchanges into Pompano Marketplace and Sunshine Plaza, 2 grocery-anchored centers in South Florida. Pompano was the third acquisition through our structured investment program. During the quarter, the program received $115 million of repayments, including Pompano, partially offset by $39 million of new investments. That is the program working as intended, we earn an attractive return while invested and, in some cases, end up owning the real estate.

New investment activity is picking up again with 2 investments closed after quarter end, totaling approximately $49 million at an average yield of over 10%. Year-to-date, we have sold $391 million of assets at a weighted average cap rate of 5.1% and acquired $118 million at 5.8%. We are raising our expected transaction volume to $400 million to $500 million, while remaining net neutral for the year. That includes 2 grocery-anchored acquisitions in a top 50 U.S. metro markets that we expect to close in the coming dates. These are high-quality centers with strong grocery anchors and meaningful growth potential, and they are the kind of real estate our operating platform is built to improve. We look forward to sharing more detail once they close.

Our outlook assumes acquisition cap rates of approximately 6% and compared with disposition cap rates in the low 5% range. The bigger difference is growth. The centers we are buying should grow approximately 250 to 300 basis points faster annually than the assets we are selling. Put simply, we are trading flat income for growth and picking up yield along the way.

With that, I'll turn it over to Glenn.

Glenn Cohen

Thanks, Ross, and good morning. FFO was $0.47 per diluted share, up 6.8% from the third quarter of last year, with growth driven primarily by the operations of the business. Pro rata NOI increased $12.6 million led by $10.5 million of higher consolidated minimum rent, supplemented by higher interest income and management fee income and lower preferred dividends. These benefits more than offset higher interest expense and lower financing income. In addition, credit loss for the quarter was 45 basis points, and for the 9 months was 51 basis points.

Same-property NOI growth of 4.9%, was led by 3.2% higher minimum rents and 1.3% stronger net recoveries with an additional benefit from lower credit loss. Year-to-date, same-property NOI is up 3.3%. One financial result I want to highlight at the margin, our consolidated NOI margin surpassed 70% this quarter, the first time since we reclassified certain G&A costs for operating expenses almost a decade ago. Three factors drove the improvement, higher recoveries from our fixed CAM program, higher economic occupancy and better collections. We are seeing positive operating leverage below the property level as well, with G&A as a percent of revenue improving to 5.2% so far this year from 5.4% for the full year 2025 and 7.2% in 2019.

The revenue acceleration, margin expansion and G&A efficiency are areas where One Kimco is translating directly into our financial results. Turning to the balance sheet. We ended the quarter with consolidated net debt to EBITDA of 5x and 5.3x on a look-through basis, both at best levels since we began reporting these metrics. Combined with more than $2.5 billion of liquidity, that gives us significant capacity on future growth. Following the repayment of our $500 million, 2.8% notes in October, we have no notable remaining debt maturities this year.

Looking to 2027, our maturities are modest at just $466 million with a weighted average coupon of 4%, which limits the impact from the higher interest rate environment today. Our credit ratings remain A- at S&P and Fitch and A3 at Moody's with a stable outlook from each. During the quarter, we repurchased $150 million of common shares at a weighted average price of $23.80, representing an FFO yield of roughly 8%. We also repurchased approximately $74 million of preferred stock. Both were accretive uses of capital. We expect to generate $175 million of free cash flow after dividends and leasing and maintenance capital this year, providing substantial capacity to reinvest in future growth.

Now to our outlook. We are raising our full year FFO guidance range to a new range of $1.84 to $1.86 per diluted share and our same-property NOI growth to a range of 3.5% to 3.8%. We are also improving credit loss assumption to between 50 to 60 basis points. This higher outlook reflects continued strength in rent commencements, retention levels and recovery rates, along with disciplined cost management. As we look ahead, several building blocks are already in place. Approximately $64 million or roughly 85% of our $76 million signed not open pipeline is scheduled to commence from the fourth quarter through 2027.

In addition, our debt maturities will be modest and the capital we have recycled this year is being redeployed at the higher growth center. We will provide our full 2027 outlook with our fourth quarter results. In summary, we delivered operationally driven earnings growth, expanded margins and maintained a strong balance sheet. Combined with the embedded growth already in place, that positions us well heading into 2027.

And with that, we're ready to take your questions.

Operator

[Operator Instructions] Your first question comes from the line of Michael Goldsmith with UBS.

質疑応答

Michael Goldsmith

You've been very active on the capital recycling piece and as you sit here today, acquisitions trailing dispositions through the third quarter and you expect transaction volume to be net neutral in the year and then I think also structured investment redemptions are outpacing deployment, that's expected to be up material in the year. So just I guess the question is, what visibility into both acquisitions and structured investments do you have in the fourth quarter? And just given the macro backdrop, any timing risk associated with that?

Ross Cooper

Sure. Yes. Thanks, Michael. We're really excited about the capital recycling that we've been able to execute on. As evidenced by the results, we were really front-loaded on dispositions, which we think was really strong for us, particularly as the window was very much open for dispositions at very aggressive pricing, particularly for those single tenant ground leases that are lower growth and some of the multifamily that we sold at very aggressive cap rates. So we feel really good about the execution there.

We do have very good insight into the fourth quarter. As I mentioned in the prepared remarks, we have 2 grocery-anchored assets that we're really excited about that are going to be closing very soon in the coming days. Those 2 transactions alone will bring us back to that plus or minus net neutrality that we talked about for the year. So that will sort of close off the pipeline and the transactions on the acquisition side, more or less for the year.

On the structured side, as we indicated, we did close a couple of deals or fund a couple of deals already here in the fourth quarter. That brings us up to back to a little bit in the positive on the overall volume for the year. We have a couple of things that are in the pipeline right now. Timing is always a little bit in flux. So 1 or 2 of those deals could float over to Q1 next year. But I think the important part is that we're seeing a lot of activity in that program, even within the last 30 or 45 days.

What we've seen over the last few years since this program commenced 5 or 6 years ago, is that in times of increased volatility or uncertainty. That's where we see this program being a real differentiator. So we're excited about this program. We're really -- we really think that there's going to be increased activity particularly if the rate environment volatility remains elevated for a period of time. And as you've seen and what we indicated in the third quarter that we did acquire our third asset from this program in Q3. And so we anticipate that there will be additional opportunities from within that program to fuel our acquisition pipeline as we enter 2027. So all in all, it's -- the program is really working as intended.

Operator

Your next question comes from the line of Alexander Goldfarb with Piper Sandler.

Alexander Goldfarb

Maybe just following up on that line. We all appreciate the robust demand for hard assets for shopping centers that continues. But on the debt and preferred equity, are you seeing a similar ramp-up in some of these private platforms that are competing more for the debt and preferred equity side of the business? Or is most of the institutional capital that we hear about really just targeting direct ownership? I'm just trying to understand because obviously, 10% plus yields on your DP is pretty attractive. Just trying to understand if we should expect that to compress.

Ross Cooper

Yes. Thanks, Alex. I mean we've always had competition within the program, but I think that we have a differentiation in that. There are very few real operators that are competing with this capital. it's been interesting to watch the evolution over the last 5 or 6 years of this program and what the competition set looks like. I would say earlier in the program, it was more in the debt funds and more of the traditional lending sources. That sort of transitioned over to competing a bit with more LP capital for joint venture equity capital for our program.

But at the end of the day, I think we provide a few things that others don't. One, having us in the capital stack we've seen has definitely impacted to the positive our borrowers' ability and execution on the senior financing. So that's 1 differentiator. The other is while it's a passive program, we do lend a hand and assistance as it relates to tenant relationships. So to the extent that our borrower needs to utilize our team and our platform to help with a renewal or something related to existing tenants. That's something that we could provide that others don't.

So when you factor in all of those differentiators, we've seen that our program has been very much in need and well received by borrowers. And you can see that by the groups that we've worked with that have come back for the second, the third, the fourth deal. So we feel really good about where we sit in this program, what we offer and the differentiation. There's always going to be a unique and bespoke asset aspect to each and every 1 of these deals and these investments, but we see a pipeline that will continue to build.

Conor Flynn

The only other piece that I think differentiates our program is the ROFO and the ROFR that we get on every single investment. The debt funds really do not value that. And I think where the Kimco shareholder really gets the benefit of this program because in essence, all of these assets would be great assets to own for the Kimco portfolio. And I think that piece of it is a big differentiator for us as we like to say we get paid to wait and we continue to harvest that opportunity set in the future as well.

Ross Cooper

And if I could just also add back on top of that. I think the other factor that is really important is we've seen the quality of the assets in this program continue to improve. So just this quarter, we funded a Trader Joe's anchored asset in California, a Whole Foods' anchored asset. So we really do see tremendous value in these rider-first offers and rider first refusals, evidenced by the 3 that we've acquired and hopefully some others that we'll look to acquire in '27 and beyond.

Operator

Your next question comes from the line of Rich Hightower with Barclays.

Richard Hightower

Just on the changes to the full year guidance here, obviously, you had sort of some one-timer effects. I noticed a pretty sizable uptick in what you call noncash GAAP revenue of about $8 million driving part of that. Just help us understand maybe the movements in sort of the core and noncore that are driving the FFO increase, please?

Glenn Cohen

I'll start and then I'll pass it to Kathleen. But from the core part, I mean, it's really coming from faster rent commencements that we have. It's coming from the improvements in credit loss it's coming from the maintaining and discipline around costs, the G&A costs that we're focused on. So all those components are definitely helping. Obviously, doing our convert when we did it, again, helped on the interest expense side also. And then maybe talk about the non-GAAP.

Kathleen Thayer

Yes. So Rich, on the noncash GAAP revenues, it's really driven from straight line and there's pieces to the straight line. One is just the leasing volume that we're experiencing and how quickly we're able to tender those spaces to the tenant and then as well as the bumps that are included in those leases. And then the second part just like we're seeing the positive results in credit loss, that flows over to straight line as well from a reserve perspective. So we're just not seeing any significant reserves that we're needing to take in that area, which is helping increase that income that you're seeing come through.

Operator

Your next question comes from the line of Ronald Kamdem with Morgan Stanley.

Ronald Kamdem

Just a quick 1 on shop occupancy. If you could -- I know we're at record right now. And if you could just remind us what you think more upside is on that piece of it. And how are you sort of getting more pricing power at these levels through the lease contract, whether it's escalators or cotenancies or options? Just would like to hear how those are trending at these levels.

David Jamieson

Yes, thanks for the question. It's a good one. So just on occupancy in general, first, starting with the small shop side. As you know, we're holding out a record high right now. But when you look at our pipeline and the activity and the investments that we're making, that's where we're encouraged and we see further upside. Having over 28 grocery boxes under construction, redeveloping and repositioning those assets, building better mouse trap adds value to the adjacent space, which also then converts to that halo effect that we talked a lot about that drives a premium in terms of the rents, right, higher traffic volume centers, drives more interest from small shop retailers drives more sales, converts to higher rent for us.

So we see room to run there. On the anchor side, as I mentioned earlier in prepared remarks, we're still below our all-time high there. We have about another 70, 80 basis points of gain before we achieve that. So we do see room to run and considering the tailwinds of no supply here and outpace demand, there's that opportunity to push it further. As it relates to the contract rents and the negotiated terms, we continue to see improvement. It's really a partnership between both the retailer and the landlord. And they really for risk and regard the relationships that they have in the center with us and what we're doing. And so on the economics side, our big push is on growth. And so we've seen annual escalators not only flow through on the small shop side, but just this quarter alone, we saw 30% -- over 30% of our upper anchor deal -- new lease deals actually have annual escalators in it.

This is this initiative we've been pushing for a long time, and we're starting to see that conversion play out. And again, it's all the investments that we've been making at the property level and with the team to drive that.

Operator

Your next question comes from the line of Michael Griffin with Evercore ISI.

Michael Griffin

Appreciate the commentary so far. Maybe just circling back on the guidance point. I appreciate it, Glenn, your comments on some of the line items there. But can you give us a sense of what the offsets are to get to the $0.015 increase. It looks like same-property NOI is better, bad debt assumptions come down. You're getting the benefit from the accretion from the share repurchases as well as the higher noncash revenues. Just what would be the offset on those? Is it timing around capital deployment? Are there other factors? And then lastly, can you comment were the share repurchases initially contemplated in your guidance? Or were they just additive to as the year progressed?

Glenn Cohen

So I'll start with your last piece. They were additive. Again, we look at capital allocation, look at our sources and uses on a constant basis and with being able to deploy capital from very low cap rate sales that we made on the residential properties and part of that not being able to be 1031 exchange, redeploying that capital when the prices in our view, trading at a pretty decent discount, earning an FFO yield of over 8% or around 8% when we're selling stuff at 5.1% with the balance sheet capacity we have really made a lot of sense. So that was additive to it.

The increase in the guidance really is coming from -- if you look at where we were at the end of the third quarter, our range was $1.83, $1.84. So we've bumped the guidance now where the low end of the range was the upper end with the other $0.02. We're trending higher than what we had in our forecast for the third quarter. So that kind of gets you there. And based on the activity we're seeing, the improvement in our expectations for where same site will end for the full year, our expectations for further improvement in credit loss for the full year and the speed at which we're seeing lease-up and the pipeline coming online, there's a good chance we could get to the upper end of the range, but we remain very comfortable with the mid- to upper end of the range in the guidance.

Operator

Your next question comes from the line of Haendel St. Juste with Mizuho.

Ravi Vaidya

This is Ravi Vaidya on the line for Haendel. I hope you guys are doing well. I wanted to ask about the acquisitions that are expected to close here in the next couple of days. When did the process start for this? And what is the anticipated cap rate for these deals? And maybe going forward, does it make sense to maybe weight or pause on acquisitions as cap rates are likely to move upward from here given the higher interest rate backdrop?

Ross Cooper

Sure. Thanks. Yes. I mean we have been working on these deals for several months now, but we're very confident in the pricing that we're able to negotiate in the yields that we're going to achieve. I think most importantly, I know everybody likes to look at the going in yield the growth that we believe that our team can generate from 2 assets is significant, as we indicated, a good 300 basis points higher than what we've sold to fund it.

And keep in mind that the funding sources we're already closed between the Costcos, the multifamily and some of the other dispositions. So we feel really good about that spread. We feel really good about that growth. And then as we think about the assets themselves, we will had a little bit more detail in the coming days once we close, and we'll put out some information that we can talk through. But we're extremely excited about that. We think that the demand for products will continue to be strong for assets that are high-quality grocery anchor that have growth like this. Even as there's some noise in the volatility in the rate environment.

In terms of the yield in set, as I mentioned, we'll provide more information. However, if you look at where we increased the guidance on the yield levels going from what was [ 5 to a low 6 ], you could sort of back into where the yields are on these 2 acquisitions because, as I mentioned, these 2 will be the -- pretty much the bulk or the lion's share of all the fourth quarter transaction activity for us. So that will bring us back to that neutral level in the volumes that we indicated in the guidance. And so you can kind of see directionally where that is.

Operator

Your next question comes from the line of Jamie Feldman with Wells Fargo.

James Feldman

Great. So you're citing your credit loss guidance range, what gave you confidence to do that? And maybe just a bigger picture question as we think about next year. I mean, definitely some sign posts out there of greater concerns about the consumer or just retailers in certain segments of the retail market. It sounds like you're very confident and exciting time to be expanding the investment pipeline. But just as you think over the next 12 to 18 months, especially as you complete all these investments, what is like your base case of the consumer and the economy. I know you have any kind of trepidations or any kind of confirms about where the economy and consumer might be going?

Conor Flynn

Sure. I'm happy to start. Look, coming into the holiday season, it seems like most of the numbers that are projected for the holiday spend range from anywhere from 4% upwards to 9-plus percent. So it looks like the consumer is ready to spend. As we know, like the consumer in the U.S. is very resilient, and they are definitely going to look to take advantage of maybe the holiday season here. So that type of anticipation gives us confidence that this road that we're on continues to be resilient. We clearly see the traffic being a leading indicator for the consumer continuing to gravitate towards Kimco shopping centers.

That being said, we recognize all the macro issues that are up there that you talked about that we see daily. And so we're evaluating next year already. We're rolling up our budgets. We're trying to get to a point where we feel confident in showcasing that the trajectory that Kimco has been on. We've been the only shopping center REIT to produce 5%-plus growth the last few years and we want to continue on that track record of being really that steady Eddie that can produce regardless of the cycle to produce growth. And the shopper when you think about the needs, the essential goods and services that we provide. We feel like even if there is a bit of a pullback or a stress point the consumer will still be buying groceries. The consumer will still be going to the essential goods and services that we provide. And so we feel like with the pipeline, the snow pipeline, the future growth that is just coming online, we continue to have a pretty [indiscernible] for in terms of trajectory going forward.

Kathleen Thayer

Let me just layer on the credit loss aspect of your question. We've been consistently below that 60 basis points, and we're definitely seeing the quality of the tenants through that number, as well as the significant effort we've made on the billing and collection efforts with our lease administration reorg that we did about a year ago. So all of those are leading towards that lower credit loss that we're seeing positive results.

Glenn Cohen

The only thing I would add is I made a comment to our team as we were sitting here that when I look at our tenant watch list, I mean, is the smallest watch list I've ever seen in the period we've been doing this stuff. So things happen in retail. But right now, when you look at it, I mean, you've seen bankruptcies have been incredibly slow for this year. The retailers themselves have fortified their own balance sheets. So there's just -- we just don't see the bankruptcy activity coming. And with all the things that the others have mentioned, it just gives us a lot of confidence about where -- how the tenants are paying and how we are collecting.

Operator

Your next question comes from the line of Juan Sanabria with BMO Capital Markets.

Juan Sanabria

Just a macro question following up on Jamie's in the prior question. Just given the supply-demand dynamic and the fact that it's probably harder for new supply to pencil, just curious how market trends are trending. Is that accelerating? Or is it moderating in any form, just given some of the aforementioned strains on the consumer? Just curious on how market rents are trending.

David Jamieson

Yes, it's a good question. I think market rents are very much a local game. When you look at sort of the Kimco strategy of first-ring suburbs, major metro markets, we continue to see that there's virtually no supply coming online. And when you think about where there is potential for new supply or a handful of new developments, it's in those second or third ring areas that really don't compete with the Kimco portfolio where you've seen sprawl and where you see new household formations occur.

So we continue to monitor market by market and continue to see where there's accelerating market rent growth. And actually, where our 2 acquisitions are coming online in the next few days, there's significant market rent growth in that trade area that we really like. And so that's 1 of the leading indicators that we continue to watch and see.

Unknown Executive

Yes. And like when you look at just our -- when you look at our mark-to-market adjustments, like on the new lease, I mean, that's where you see the big upside, right? I mean we're hitting 20%, 30%, 40% on the new lease spreads right now. And that's where you're seeing a meaningful gain. So as we get those boxes back, we can clearly see that more meaningful material lift than just sort of the annual mark-to-market adjustment on the top side of rents. When we look ahead into '27 and we have 56 anchor boxes that are rolling with no options. We're already seeing mark-to-market spreads upwards 40% of those that are resolved. So we're seeing a lot of opportunity there to continue to push northward, which will only help further fuel our future growth.

Ross Cooper

The other piece of upside to market rent growth is our omnichannel retailers that utilize their stores even some of the conversations that we've been having with some of our retailers are thinking long and hard about where to place their stores as distribution points to enhance the offering to their consumer. And we continue to think that, that halo will allow us to push occupancy costs to push rents even higher.

Operator

Your next question comes from the line of Greg McGinniss with Scotiabank.

Greg McGinniss

Looking ahead transactions in 2027, maybe can you just remind us what remains from a disposition funding perspective for multifamily ground lease, lower growth centers. And given the continued competitive pricing. You talked about more capital looking to investment product available? Do you actually expect cap rates to move much over the next few quarters? Has there been any early indications of that shift? And alternatively, might share buybacks just become a bigger focus given Kimco's implied cap rate above where similar quality properties are currently priced.

Ross Cooper

Sure. Yes. We're happy to give some color, but we'll be coming out with more specific volume guidance, obviously, on the next call. But our plan of capital recycling was not just a 2026 plan. It was a 2027 and beyond plan. And we believe that we have enough product within our portfolio that we can continue to recycle accretively. We're still upwards of 8% plus of our ABR in these long-term ground leases, and we've continued to replenish that as we've done new leases with some of these retailers.

So there were some low-hanging fruit that we took advantage of this year, and we're able to capitalize on some very aggressive cap rates. I think the important factor even if cap rates do move a bit on the single-tenant product because that is arguably more interest rate sensitive than multi-tenant shopping centers with growth that we can still maintain that spread and that growth profile on the reinvestment. Now whether that comes in the form of new core acquisitions. To your point, we'll continue to monitor where we're trading and where the market is trading. We see a meaningful valuation gap still, which is what sort of enabled us or prompted us to buy back over $150 million of stock in the third quarter.

So we'll continue to focus on capital allocation and reinvestment. On the multifamily side, even with the sale of the Milton and the Witmer, we still have upwards of 14,000 units, either built under construction, or where we're entitled that has value if we decide that we want to sell it before the development occurs. So we will continue to monitor our existing multifamily program. We have over 3,000 projects that are already open and operating today, that at the appropriate time and the appropriate pricing, we could look to monetize and crystallize that value.

I think the beauty of it is that the timing and the control is within our own control. So it is intended to be utilized as currency and opportunistic. When we see those windows where we can get more aggressive pricing and reinvest, that's when we'll capitalize it like we did on the Witmer and the Milton. But it's in our election, and we have the flexibility to tie out accordingly.

Conor Flynn

The only thing I'd add on the buyback is, clearly, the balance sheet is in the best shape it's ever been. When you look at our leverage levels, that gives us tremendous capacity to continue to. When we see an opportunistic time to buy back our shares, we're going to be able to do it because of the leverage levels we're at. And so that's a lever that we continue to see as an opportunistic 1 where if we can sell assets and showcase that spread, that we can crystallize, that's a no-brainer in terms of capital allocation for us, and we'll continue to do that.

Operator

Your next question comes from the line of Floris Van Dijkum with Ladenburg Thalmann.

Floris Gerbrand Van Dijkum

I love the updates on capital recycling. One of my other topics, which caught my attention is the improvement of margins. And maybe if you could remind us where you are today in your fixed CAM initiative, what percentage of rents have fixed CAM in them today? Presumably, all of your new leases have fixed CAM provisions included in them. And so where -- how quickly do you see that growing going forward? And then the other part of that question is your ancillary income. And maybe touch upon what you're doing in terms of your billboard charging your temp tenancy and other revenue sources? And how much more can that grow in your opinion?

Glenn Cohen

So I'll start and then I'll pass it to Dave for some of this. So the margin is exceeding 70%. Again, it's driven partially by the things you're seeing us do, right? Credit loss is better, that helps. Occupancy is higher, that helps. The leasing and the economic leasing is higher. Those are all building into that NOI number. Cost containment at the property level is a driver. We're constantly looking at ways to reduce our real estate taxes, social work that we're doing just drive those costs down that kind of minimizes leakage that happens. So when you put all of that together, it's just driving the margin higher from where it was.

David Jamieson

Yes. And then on the fix CAM conversions, so I'll throw out a few stats. So starting first with the entire portfolio, we're just over 50%, around 51%. It's important to note though, obviously, the conversion is driven by, one, when leases come due. So as the leases aren't coming due, it's a little more challenging to convert lease new signings relative to the total population. So as lease sign you convert of. And then 3, when you own properties. So we tend to like to hold and operate a property for a couple of years to build some operating history behind us. Before we look at a conversion, that we feel is a reasonable number that we then sign new leases with and renewals with.

So then from that 51% if you just look at the Kimco legacy, those that we really owned and operated for a next seated period of time. We're over 70% -- almost 70% converted on the fixed CAM. And then when you look at new lease conversions, we're just around 90%, 90-plus percent for new deals. So it's in more or less all new deals that you do. And then on the renewal side, too, we see the opportunity to obviously convert over to fixed CAM. From the outset, it was always a program to drive efficiency and gains on both sides of the house, which I think is more than achieved that and that also helps on the collection side and flow through the margin and the numbers.

Operator

Your next question comes from the line of Samir Khanal with Bank of America.

Samir Khanal

I guess, Conor, just maybe broadly speaking, I mean, given the strength we see in leasing spreads, right, quarter after quarter, are you seeing evidence that the tenants are becoming more sort of selective on economics? Given that they are certainly feeling the cost pressures, right? I mean you hear that on their earnings call. So curious kind of what you're hearing on the ground from your retailers.

Conor Flynn

Obviously, every deal is a little bit unique and bespoke. But it's very clear that the store is becoming more profitable as retailers have evolved their strategy to utilizing the store for more than just the 4-wall sales. And I think that's what's really starting to showcase is they're being thoughtful about how they service their customer in more ways than one. They're reinvesting in their store. [indiscernible] to see how they can better serve their customer. And then a lot of ways, the expansion of stores is the key for them, like they have already built the e-commerce platform and how they go about distributing it in a more effective and cost-efficient way is really the key, and that's the store base.

And so you're seeing it continue to show up when the economics, as Dave talked about, we've been trying to push economics for a long time at Kimco. And in many years, the retailer has had the upper hand. That is no longer the case. It is very clear. It's a very tight supply. We have multiple tenants bidding on the same space. and we can dictate terms and dictate things that we haven't been able to achieve before, which is great because you can pick and choose who you want to remerchandise the center with, all while getting better economics and better growth for the future.

Operator

Your next question comes from the line of [ Anita Okusanya ] with Deutsche Bank.

Unknown Analyst

Again, congrats on the quarter and really solid execution on that front. I wondered if you could talk a little bit about the sources and uses of capital as we round out the rest of the year. And specifically, again, you have about $545 million in cash, but you did pay down the notes of like $500 million. You have this acquisition pipeline that's coming as you're going to be closing on in a couple of days. I wonder comment to what kind of clearance sort of the uses as you kind of think about the rest of the year.

Glenn Cohen

Yes. I mean, again, you kind of hit on most of the points. We did have $545 million of cash to end the quarter. We did have a $500 million bond that we just paid off. So obviously, the -- that cash was used to take care of that debt. There's 1 small piece of debt that remains. It's about $7 million. It's an old MTN from when we acquired Weingarten, but it's got like a 6.5% interest rate handle on. So we'll use it for that. And as Ross mentioned, we have 2 sizable acquisitions that we're very close to completing. And then with that, we still have some structured investment program potential investments to make as well. So that's where the capital is focused right now.

And then we'll see -- again, as we talked about, we have a lot of capacity on our debt metric side, we'll see where the stock price is. We're going to continue to watch and try and be really good capital allocators and take advantage of whichever market it's presented to us.

Conor Flynn

We have nothing outstanding on our line of credit. We have the commercial paper program that we just implemented that we have a lot of capacity on. So when you think about the sources. There's a lot of capacity on the balance sheet side because we've never been at 5x net debt to EBITDA before. So exciting times.

Operator

Your next question comes from the line of Caitlin Burrows with Goldman Sachs.

Caitlin Burrows

I have 2 questions on guidance, 1 more specific, 1 more bigger picture. But just quick ones. I'm wondering what drove the uptick in lease termination fees. And then separately, you mentioned in the prepared remarks that I think you're realizing $34 million of commencements this year, which is 20% above your original expectation. So I was wondering, as you think about like the confidence you have, if you think you'll modify your guidance methodology going forward at all, and like has your ability to open space more quickly gotten so good that you're more comfortable changing that case assumption or not so much?

David Jamieson

Yes, on the lease termination side, it was just normal course of business stuff. And it just happened to hit this quarter versus when it could have hit at a subsequent quarter. So nothing really major there to look through. On this note pipeline, it's a great question. And when you look -- when you drill into the detail, it's a lot of singles and doubles that help achieve this 20% overage. So if you're accelerating over several hundred projects, if you're pulling forward projects 1 week, 2 weeks, maybe 30 days here and there. While some of my slides, net-net, the gain is obviously material when you sum it all up.

And it's a direct impact to One Kimco and a direct impact to the effort of the development in the construction team and how well they are aligned, both internally and with our retail partners. If we sign a lease, if we sign package leases with retailers, our Head of Development then meets with their head of construction and they get a line on what the scope body work that's required to open the space in multiple spaces across the country. And although the local teams are executing every single day to get this done, they're there to help triage and get in front of any that may arise that help pull forward the RCV dates.

It is painstaking work. It's a real grind. But our relationships due to our scale has really benefited our team and ultimately, the retailer's objectives to get through the permitting process, work through utilities and municipalities and rezoning and entitlements. So it is a ton of blocking and tackling. It's One Kimco at its core, and that's what's resulted in the outperformance here. And on a go forward with '27, we scrutinize all of our budgets and all of our plans. We've been going through that process. Obviously, we'll release guidance, but we've always incorporated this activity into it.

Operator

Your next question comes from the line of Craig Mailman with Citi.

Craig Mailman

Just want to follow up on Kimco, I know you guys have mentioned it a bunch this morning, and it's a big initiative for you. I'm just kind of curious where we are in the life cycle of this initiative in terms of kind of seeing the fruits of the labor and also where you are in sort of the expense associated with this? And just as you look forward, how much of it is this the G&A savings and some of these other efficiencies of getting spaces opened on time versus maybe some of the AI investments and other initiatives kind of driving pure revenue?

David Jamieson

Yes. It's a great a loaded question. So I'll break it down in simplest form, and then I'll pass it over to Will to fill in some of the detail. We noted an event obviously earlier or later this summer, launching One Kimco that we launched in July. I'd like to say we're in the third inning because we posted some early wins to the Board, but there's a lot of work ahead of us, and we're seeing a lot of promise and opportunity as we continue to transform how we operate. One Kimco is simply put, it's the alignment of the entire organization to execute more efficiency and cleaner and it impacts both our people, the process and the platform that we've deployed.

Looking at each of the individual workflows of how do we modernize, how we get the job done every single day and how AI or other tools can be a complement to that and breaking through those bottlenecks that have historically constrained some of the optimization that we're looking to do. And so when we looked at [indiscernible] from the cycle time, using that as a simple KPI on what we can control within the lease itself, so those aspects that are within our control before it gets back to the tenant. We've seen a 30% improvement quarter-over-quarter. Obviously, that's 90 days of work but it's a benchmark that we'll continue to try to meet mix on a go-forward basis.

So we're setting ambitious targets for ourselves so that we continue to keep the eye on the ball and find a way forward. All of this translates to the bottom line. Our core metrics, same-site NOI and FFO are our key focus. So anything that we do to invest or modernize the workforce and how we work, all translate ultimately into that to those 2 key financial metrics, and we're starting to see that play out. I mentioned the snow pipeline already. That's been a clear benefit. Obviously, Will mentioned earlier this year, some of the direct AI savings that we've seen. And then I was just mentioning the KPI and the cycle time for what we can control. So we're seeing real tangible results already.

With that, Will, do you have anything else you want to share?

Will Teichman

Sure. As Dave said, One Kimco is really an operating model. It's not a capital investment program, and it's really focused on transforming the way we operate. As Glenn mentioned in his prepared remarks, we have had a significant improvement in our headline operating leverage metric, which is measured as the ratio of G&A to revenue, and have improved by over 28% over the last 6 years. That really comes through 2 things: accelerating revenue at over 10%, while we're bending the G&A curve down between -- at a growth rate of between 5% and 6%.

From a technology perspective, obviously, that is 1 component where we're investing to deliver this transformation. It's not the only area, but for every investment that we make from a tech perspective, we're measuring it against the goal of continue on that curve downward as we accelerate revenue. So there are some initiatives that are pure-play revenue growth focus, and there are others that are focused on lowering our overhead and creating more efficiencies from an expense perspective. A lot of that capability has already been funded through vendor consolidation. So we're sort of harnessing efficiencies to help fund incremental investments in technology.

And as Dave alluded to, we've already, I think, been one of the few companies out in front sort of talking about some of the real value that we're generating from our AI investments. Last quarter, we talked about some of the professional services savings that we're seeing. This quarter, we launched 3 additional initiatives, one of which is a natural language leasing search on our website that is driving improved weed inbound qualified lead inbound to our leasing team. We put some additional automations into production this quarter, specifically support the billing and collections effort that Glenn mentioned, and automation is now saving over 5,000 hours a year across our enterprise.

And then finally, we've had a particular focus this quarter on around building new Agentic workflows for transaction underwriting and tenant financial screening, both of which have reduced our cycle times roughly in half. So those are some of the things that we have going from a tech perspective and looking forward to sharing more results as the program and One Kimco continues to mature.

Operator

Your next question comes from the line of Linda Tsai with Truist Securities.

Linda Tsai

Back on the topic of tenant package deals, Kimco completed 10 package deals, comprising of 60 leases, representing over 20% of new leased GLA, how do those metrics compare in '26? And then on the '27 pipeline, any color in terms of the retailers where you're having discussions?

David Jamieson

Yes. I mean, I think, this quarter, it's an acceleration of the package program now that we've stood up our national accounts team under our national leasing platform. We can now package multiple LOIs as 1 and then transfer it over to the national account team for executing. So this is very much a cornerstone of how we can accelerate the deal flow and build continuity and consistency with the messaging and the negotiation between ourselves and the retailer. Retailers have been very, very supportive of this because it just clears the lanes and get really down to the fundamentals of what we want to focus on, which is opening the store and letting them operate their store.

So we'll continue to see that as a trend going forward. I mentioned earlier in Q&A about the '27 pipeline, just in terms of velocity right now. And again, we have 56 anchor leases that have no options coming out. We've -- right now, we're looking at -- in the first half of the year of those in the first half of the year, almost 75% of those are already resolved or in process of getting resolved at a meaningful mark-to-market adjustment. So trend lines are looking very good for '27 in this environment because, again, no supply these retailers need to continue to hit their open-to-buy strategies and grab market share. And as Conor mentioned, the omnichannel evolution and how they're continuing to leverage that store to optimize their sales growth, we're seeing that flow through in terms of our discussions and demand.

Glenn Cohen

So I would just add the -- we do a lot of portfolio reviews with all of these major retailers. And being able to do these packaged deals is a true advantage of our scale. You can't do it if you only own 40 properties. But because of our size and where we're located, it is a true advantage of our scale and a true differentiator.

Operator

The next question comes from Mike Mueller with JPMorgan.

Michael Mueller

Sorry, in transit here at reception. For resi capital recycling, it sounds like you're going to obviously pursue some additional sales over time. But just curious, are you looking at any new starts today and or just outright title plan sales as well?

Ross Cooper

Yes. Thanks, Mike. We are, it continues to be an opportunistic program. So we broke ground on the Chester out in California, which we're really excited about. We're looking at another project that we're about to break ground in Connecticut. So we continue to evaluate on a one-off basis. I think we've talked about it in the past. But we look at our decision tree to determine at what point and what structure makes the most sense to activate these projects.

So with the amount of entitlements that we have upwards of 10,000 entitled units that are not built or haven't broken ground, we can look at each and every 1 of these projects, determine the market in which it's located, where their projected rent levels are, the demand from a joint venture partner, multifamily developer to build it alongside us, and ultimately make a determination, is this a project that we want to activate in the near term? Do we want to do a long-term ground lease. Does it make more sense to sell the entitlements and the dirt rather than build it ourselves. So we're looking at each and every 1 of those projects, and then we figured it out and determine our strategy on a case-by-case basis.

David Jamieson

Yes. And it's a very active program, as Ross just laid out. And so we will have another project going active in this next quarter. And we look at this whole program really as a form of currency, right? And so if you go into our supplemental, you see near-term entitled mixed-use projects, it's 3,500 units, it's 13 projects themselves. And all of that is a form of currency that either we can, as Ross [indiscernible] built to sell, stabilize and sell and then recycle that into higher-yielding, higher-growth core shopping center assets, and that's our focus. And with so many entitled units, and we're still looking to entitle more on -- within our portfolio. We see this as a nice flywheel effect that's just starting to take hold really in the last 2 years.

Operator

Your next question comes from the line of Paulina Rojas with Green Street.

Paulina Rojas Schmidt

It seems like the cap rates have been relatively sticky, particularly for high-growth assets. But can you share more detail on the dynamics that you're observing? Are there deals that -- or are deals in general, taking longer to close? Or are central being repriced more often? And more generally, where if anywhere are you seeing signs of pricing moving up given the higher rate environment?

David Jamieson

Yes. Thanks, Paulina. I mean I think that the short and easy response to that is it depends. We continue to see assets that are institutional quality primarily grocery-anchored with growth pricing as aggressively as we've seen and really have not been impacted whatsoever by the volatility in rates. Now keep in mind, as rates have risen somewhat dramatically, they've also dropped back down about 30 basis in the last couple of weeks. So the volatility isn't only going in 1 direction. So I think the important part is to determine what is the source of capital that you're utilizing to make this investment. All cash buyers are clearly going to be less sensitive to the rate movement than you have with a more levered buyer.

So the product and the quality is going to go into whether or not that discussion on pricing is occurring or whether or not there's capitulation between the buyers and sellers. I think there will be certain deals that fall out based upon volatility, but we're still seeing a tremendous amount of activity and a lot of deals getting over the finish line, notwithstanding the volatility in the marketplace. As we mentioned, anything that is more rate sensitive, single-tenant assets, in particular, are going to have movement based upon where the rate environment is, but growth assets and high-quality multi-tenant shopping centers continue to be 1 of the, if not the most in-demand asset class, and we're seeing just more capital chasing these deals than there is supply. So pricing is remaining very competitive.

Operator

Your next call comes from the line of Michael Gorman with U.S. Bancorp.

Michael Gorman

Maybe just 1 more on the investment side. Just trying to kind of triangulate a little bit here. We're in 1 of the best retail operating environment probably ever a ton of institutional demand for the product. Yet on the structured investment program, you're seeing increased quality and increased opportunities. I'm just curious what is driving these owners into the orbit of the structured investment program? Is it CapEx? Is it development funding? Kind of what brings them to the table or brings them in as an opportunity for SiP in this kind of otherwise strong environment?

Ross Cooper

Yes, it's a good question. And I think, frankly, that's the beauty of the program. While we refer to it as our structured investment program, we really view it as a capital solutions program. So I think every deal is unique. They all have their own story. The structures that we negotiate are bespoke. There's really no 2 deals that are exactly alike. And so to your point, it's a combination of a variety of factors. Oftentimes, it's the fact that we can provide more flexible capital. So whether it be the ability or the willingness to except the payoff earlier than a traditional lender would and lock in a significant prepayment penalty, some of the differentiations that I think we talked about earlier, whether it be our tenant relationships and assistance there.

Certainly in an environment where there's volatility in the rate environment and the lending community. I think the fact that we in the capital stack can help the execution with the senior lender is very much a differentiator for us. And then I think just there are deals that are in transition, whether it be a repositioning, redevelopment opportunity. Not only do we provide that capital, but I think as an operator that can underwrite those changes and understand what it means and get a good sense of comfort by speaking directly to the retailers that might be under construction or signing a lease but not yet open.

All of those factors, I think, play into why a borrower would look to Kimco to participate in that asset or in that investment because we just do understand this real estate in the process better than a traditional lender, better than a debt fund or better than a passive investor would.

Operator

There are no further questions at this time. We have reached the end of the Q&A session. I will now turn the call back to Dave Bujnicki for closing remarks.

David Bujnicki

We appreciate everybody that took the time to join our call today. If you do have any follow-up questions, please don't hesitate to reach out. And with that, we hope everyone enjoys the rest of their day. Thank you.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.