Kimco Realty forecasts strong annual results on resilient leasing demand

Feb 12 (Reuters) - Kimco Realty KIM.N forecast fiscal 2026 funds from operations (FFO) and net income above Wall Street estimates on Thursday, citing resilient leasing demand for its grocery-anchored shopping centers.

The Jericho, New York-based company expects fiscal-year FFO of $1.80 to $1.84 per share, compared with analysts' estimates of $1.80 per share, according to data compiled by LSEG. It expects full-year net income of 80 cents to 84 cents per share, compared with estimates of 75 cents per share.

Demand for commercial real estate investment trust (REIT) rental properties remained strong, as Kimco's tenants continued to benefit from consumers seeking cheaper alternatives and prioritizing daily essentials and groceries. As of September 30, the REIT's five largest tenants were TJX Companies, Ross Stores, Burlington Stores, Amazon's Whole Foods and Albertsons Companies.

Visits to open-air shopping centers rose 6.2% in January, compared with a 2.9% increase a year ago, according to data analytics firm Placer.ai.

Kimco posted revenue of $542.5 million in the fourth quarter, beating estimates of $536.7 million. Its FFO of 44 cents per share came in line with estimates.

The company owned interests in 565 U.S. shopping centers and mixed-use assets comprising 100 million square feet of gross leasable space, as of December 31. It owns and operates open-air, grocery-anchored shopping centers and mixed-use properties in the United States.

Last week, peer Regency Centers REG.O reported upbeat FFO on the back of steady demand.