Retail Assets Kimco Plans Up To $500M Disposition

Occupancy Records Boost Retail Asset Strategy

Bisnow reports that retail REIT Kimco Realty is accelerating its retail asset disposition strategy. The company closed 2025 with record-high occupancy and strong leasing momentum. As a result, Kimco plans to sell $300M to $500M in assets this year. These sales will target lower-growth shopping centers and non-income-producing land.

Executives said many of the planned dispositions will involve ground leases. Demand has increased from private investors and retailers seeking to repurchase real estate. Therefore, Kimco expects higher sales volume in 2026 than last year. The company sold about $100M in assets in 2025.

Leasing Strength and Income Growth

Kimco’s portfolio ended 2025 at a 96.4% occupancy rate, matching its all-time high. The firm completed 1.2M SF of leases in Q4 2025, including 30 anchor tenant deals, highlighting sustained demand in its 565 US shopping centers and mixed-use assets. Top tenants include TJX Cos., Ross Stores, Burlington Stores, Whole Foods, and Albertsons.

Consumers’ shift toward value retail and alternative grocery stores have supported high occupancy and tenant sales. Kimco projects same-property net operating income for its retail assets to grow by 2.5%–3.5% in 2026.

The company’s strong leasing metrics come as other property sectors are also showing renewed momentum, with apartment leasing activity picking up in early 2025 across several major metros, signaling broader stabilization in commercial real estate fundamentals.

Upcoming Debt Maturity

Despite operational strength, Kimco faces $800M in debt maturing this year, originally set at a 2.65% interest rate. With rates now higher, refinancing is expected to come at a significantly increased cost, signaling a cautious outlook even as retail assets remain a focus for disposition and income growth in 2026.