Kimco Realty Corporation (KIM): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of Kimco Realty Corporation's (KIM) portfolio, and the Boston Consulting Group Matrix is defintely the right framework to map where capital is working hardest and where it's just sitting. Honestly, the picture is sharp: the core grocery-anchored centers, making up 86% of Annual Base Rent, are clear Stars, driving rent spreads near 49% and small shop occupancy to 92.5%. Meanwhile, the reliable, high-quality assets are printing steady cash flow, evidenced by the 4.0% dividend hike, cementing their Cash Cow status. But we also see assets ripe for selling, like those non-core properties, and big bets in the development pipeline, over $600 million worth, that are Question Marks needing capital to truly pay off. Let's break down exactly where Kimco Realty Corporation is winning, holding, and needing to prune its real estate holdings right now.

Background of Kimco Realty Corporation (KIM)

You're looking at Kimco Realty Corporation (KIM), which you should know is a real estate investment trust (REIT) that's been around for over 65 years, specializing in owning and running high-quality, open-air, grocery-anchored shopping centers and mixed-use properties across the United States. They've been publicly traded on the NYSE since 1991 and are even a component of the S&P 500 Index, so they're definitely a major player in the sector. Their core strategy revolves around tenant mixes focused on essential, necessity-based goods and services-the kind of stuff that keeps people coming back multiple times a week. That focus means their portfolio is heavily weighted toward the first-ring suburbs of the biggest metro areas, including those tricky, high-barrier coastal markets and the growing Sun Belt cities.

As of the third quarter of 2025, Kimco Realty Corporation owned interests in 564 U.S. shopping centers and mixed-use assets, totaling about 100 million square feet of gross leasable space. The operational strength you're seeing is really tied to their leasing success; for instance, they hit an all-time high for pro-rata small shop occupancy at 92.5% by September 30, 2025, and overall pro-rata portfolio occupancy was 95.7%. Honestly, the demand for their specific type of real estate seems robust, evidenced by the fact that their leased-to-economic occupancy spread expanded to 360 basis points, which translates to about $71 million in Annual Base Rent (ABR) coming online from leases already signed. Plus, they recently secured an 'A-' credit rating from S&P Global Ratings, which is a nice vote of confidence in their balance sheet strength.

When we look at the numbers from that Q3 2025 report, the results reflect that strategy paying off. Net income available to common shareholders per diluted share for the quarter was $0.19, and Funds From Operations (FFO) per diluted share came in at $0.44. You'll also note they recently increased their quarterly dividend on common shares by 4%, which is something investors focused on income definitely keep an eye on. They're actively managing the portfolio, too; they acquired the remaining stake in Tanasbourne Village for $65.9 million (pro-rata) during that period, showing they are still deploying capital into core assets that fit their grocery-anchored model.

Kimco Realty Corporation (KIM) - BCG Matrix: Stars

You're looking at the high-growth, high-market-share segment of Kimco Realty Corporation (KIM)'s portfolio, which is where the Stars live. These assets are leaders in their space and require significant investment to maintain that dominance, but they are the future Cash Cows if the market growth sustains. The core of this strength is clearly in the grocery-anchored segment, which is the engine driving this high performance.

The strategic focus on necessity-based retail is paying off, as evidenced by the portfolio composition. As of Q2 2025, grocery-anchored shopping centers represented a record 86% of Annual Base Rent (ABR). This high concentration in an essential sector signals a strong, defensible market position, which is the definition of a Star in this matrix.

Leasing activity confirms this market leadership. You saw exceptional pricing power in the first quarter of 2025. Here's the quick math on the leasing spreads:

That new lease spread of nearly 49% in Q1 2025 is a massive indicator of high demand for Kimco Realty Corporation's space. Also, consider the pipeline of future revenue locked in; the leased-to-economic occupancy spread expanded to 360 basis points in Q3 2025, representing $71 million of future ABR from signed leases not yet commenced,. That's cash flow waiting in the wings.

The demand for smaller spaces within these centers, which often house high-frequency tenants, is particularly strong. Small shop occupancy hit an all-time company record of 92.5% in Q3 2025. This high occupancy in the smaller, more flexible spaces shows the underlying health of the tenant base and the market's growth appetite. What this estimate hides, though, is that the overall portfolio occupancy was 95.7% at the end of Q3 2025.

The operational results tie it all together, showing sustained growth from these core assets. For the nine months ended September 30, 2025, Same Property Net Operating Income (NOI) growth was a solid 3.0%. This growth, coupled with the high leasing spreads and record small shop occupancy, firmly places these business units in the Star quadrant.

Key performance indicators supporting the Star classification include:

• Grocery-anchored ABR contribution: 86% (Q2 2025).
• Record Small Shop Occupancy: 92.5% (Q3 2025).
• Same Property NOI Growth: 3.0% (9 months ended 9/30/2025).
• Future ABR Pipeline: $71 million (Q3 2025).

Kimco Realty Corporation (KIM) - BCG Matrix: Cash Cows

Cash Cows for Kimco Realty Corporation (KIM) are represented by the established, high-quality core portfolio that demonstrates market leadership and consistent, reliable cash generation, typical of mature, high-share business units. These assets require minimal growth investment but yield substantial cash flow to support the broader enterprise.

You see this stability reflected in the core, high-quality portfolio, which maintained a robust pro-rata leased occupancy of 95.7% as of Q3 2025. This high occupancy rate is a direct measure of market share dominance in a mature sector. Also, the anchor occupancy, which provides the reliable base revenue stream characteristic of a cash cow, remained high at 97.0% in Q3 2025.

The consistent cash generation is evident in the Funds From Operations (FFO) figures. FFO per diluted share was $0.44 in Q2 2025 and held steady at $0.44 in Q3 2025, showing dependable earnings power. This mature cash generation supports shareholder returns, as the board declared a quarterly cash dividend that was increased by 4.0% to $0.26 per common share in Q3 2025.

Here's a quick look at the key operational metrics from Q3 2025 that underscore the high-share, stable nature of these assets:

These figures confirm the cash cow status, as the business unit is maximizing returns from its established position rather than requiring heavy investment for growth. The focus here is on efficiency and milking the gains passively, which is supported by the strong leasing spreads and high occupancy. The stability allows for capital returns, such as the dividend increase.

• FFO per diluted share was $0.44 for both Q2 and Q3 2025.
• Quarterly cash dividend increased by 4.0% to $0.26 per share.
• Pro-rata portfolio occupancy reached 95.7%.
• Anchor occupancy provided a stable 97.0%.
• The company achieved an A- credit rating from S&P Global Ratings.

Kimco Realty Corporation (KIM) - BCG Matrix: Dogs

Dogs, are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

Kimco Realty Corporation actively manages this segment by executing capital recycling, which means selling lower-growth assets to fund acquisitions in higher-growth areas. This strategy targets non-core assets that require significant capital commitments inconsistent with long-term investment objectives. For 2025, Kimco Realty Corporation identified a disposition target range of $100 million to $150 million from assets like long-term ground leases and non-income producing properties.

Non-core, single-tenant assets with limited growth potential, such as the Home Depot property sold for $49.5 million in Q2 2025.

You see this play out clearly with the sale of a freestanding, Home Depot-anchored property in Santa Ana, California, in the second quarter of 2025 for $49.5 million. That asset generated a gain of $38.4 million. Honestly, this is a textbook move; the asset had a low growth profile, with an estimated CAGR of roughly 1%, which is much lower than the 3% CAGR expected from the asset acquired in the 1031 exchange. This keeps the portfolio focused on higher-growth grocery-anchored centers, which accounted for 86% of Annual Base Rent (ABR) as of Q2 2025.

Former RPT Realty properties identified for disposition due to lower growth profiles and higher capital needs.

While the major disposition of ten former RPT Realty properties for an aggregate price of $248 million occurred in Q1 2024, the underlying strategy continues. Those former RPT centers were prioritized because they were primarily power centers requiring high capital expenditure commitments in excess of $75 million in aggregate over several years, which didn't align with Kimco Realty Corporation's core focus. The remaining portfolio from that acquisition, 46 former RPT assets, still contributes to the overall portfolio composition, but the focus is on weeding out the lowest performers.

Vacated spaces from bankrupt tenants like Party City and JOANN, which are temporarily dragging down overall occupancy.

Tenant instability, even from high-profile bankruptcies, creates temporary drag in the Dogs quadrant. The anticipated vacates from the remaining JOANN and Party City leases caused a 66 basis point sequential decline in pro-rata leased occupancy for the second quarter of 2025. This pushed the overall pro-rata leased occupancy down to 95.4% at the end of Q2 2025. Still, the small shop occupancy hit an all-time company record of 92.2%, which shows the core portfolio is strong despite these specific vacancies.

Ground-leased properties that offer minimal growth and are targeted for capital recycling into higher-growth assets.

Ground-leased assets are explicitly mentioned as targets for capital redeployment due to their limited growth potential. A concrete example from the third quarter of 2025 was the sale of a ground-leased parcel anchored by a Lowe's Home Improvement store at Mill Station in Owings Mills, Maryland, for $18.5 million. This is the type of non-income producing or low-growth asset Kimco Realty Corporation is actively pruning.

Here's a quick look at the financial impact of these disposition activities in 2025:

The ongoing effort to minimize Dogs is reflected in the portfolio's leasing metrics, even with the temporary headwinds:

• Pro-rata leased occupancy ended Q2 2025 at 95.4%.
• The impact from the vacates of the remaining JOANN and Party City leases was a 66 basis point sequential decline.
• Small shop occupancy reached a record high of 92.2% as of Q2 2025.
• The Home Depot property sold had an estimated CAGR of roughly 1%.
• The company's 2025 outlook included a disposition target of $100 million to $125 million in the initial outlook, later updated to a range of $100 million to $150 million.

Finance: draft the Q4 2025 cash flow projection incorporating the Lowe's parcel sale proceeds by next Wednesday.

Kimco Realty Corporation (KIM) - BCG Matrix: Question Marks

You're looking at the parts of Kimco Realty Corporation's business that are in high-growth areas-like new development and strategic capital deployment-but haven't yet translated that growth into a dominant market share. These are the cash consumers, the Question Marks, that need focused investment to potentially become Stars.

As of September 30, 2025, Kimco Realty Corporation's pipeline of active and near-term development and redevelopment projects, which includes active mixed-use projects, stood at over $600 million. This figure reflects a significant sequential increase of approximately $250 million from the second quarter of 2025, showing aggressive capital deployment into future value creation. This pipeline represents the company's bet on transforming high-quality retail destinations into thriving mixed-use communities.

A prime example of this strategy in action is the mixed-use and multi-family venture, The Chester at Westlake in Daly City, California. This project involves 214 units and carries a gross cost of $153 million, with Kimco Realty Corporation holding a 75% ownership interest. This specific asset is part of the broader goal to expand the multifamily footprint to approximately 10,000 units by 2025. The activation of The Chester, which is replacing a former Burlington Coat Factory, signals a move into residential development within established retail cores.

The leasing momentum is also feeding this quadrant, as evidenced by the pipeline of future Annual Base Rent (ABR) from leases already signed but not yet commenced. As of the third quarter of 2025, this pipeline reached an all-time high, equating to $71 million in future ABR. This represents a 360 basis points spread between the pro-rata leased rate versus economic occupancy, a 50 basis-point sequential increase. Realizing this future rent requires capital deployment as leases transition from signed to operational.

The Structured Investment Program is another area where capital is being deployed for potential future growth, essentially acting as a source for future acquisitions. This program involves deploying capital as loans to create an acquisition pipeline. For instance, during the first quarter of 2025, Kimco Realty Corporation funded a $35 million senior loan on a grocery-anchored center in South Florida with an 8% coupon. This type of investment often includes protective rights, such as a right of first offer, should the borrower look to sell while the loan is outstanding.

Here's a look at the capital activity and pipeline metrics that characterize these high-potential, cash-consuming assets for Kimco Realty Corporation as of the latest reporting periods:

These Question Marks are defined by their need for cash to move them forward. The strategy requires a decision: invest heavily to capture market share or divest. The growth in the pipeline suggests a strong inclination to invest.

• The pipeline of active and near-term development and redevelopment projects increased by approximately $250 million sequentially from Q2 2025 to Q3 2025.
• The Chester project includes 10,000 square feet of ground-level retail space.
• The $71 million future ABR pipeline is an all-time high for Kimco Realty Corporation.
• The company aims to expand its multifamily footprint to approximately 10,000 units by 2025.
• In Q2 2025, Kimco Realty Corporation repaid a $240.5 million 3.85% unsecured note.

The $71 million in future ABR is particularly interesting because management indicated that about 60% of these leases are projected to commence in 2026, creating a favorable tailwind for future Funds From Operations (FFO) and Net Operating Income (NOI) growth. This pipeline represents capital that is committed but not yet generating revenue, fitting the Question Mark profile perfectly. Finance: finalize the capital allocation plan for the Q4 2025 SIP deployment by next Tuesday.