- Kimco Realty posted a record 410 basis point leased-to-economic-occupancy spread in Q1 2026.
- This equates to a $77M, or 28% year-over-year, increase in future annual base rent across its US grocery-anchored portfolio.
- Kimco signed 576 leases totaling 4.4MSF, with new leases up 23.8% over Q1 2025.
- Net income rose 20% to $157M, partially offset by higher operating expenses.
Solid Leasing Gains Drive Growth
Kimco Realty, the largest operator of grocery-anchored shopping centers in North America, reported its strongest leasing results on record for the first quarter of 2026, according to CSA. The company achieved a positive leased-to-economic-occupancy spread of 410 basis points, with an associated $77M jump in future annual base rent. This marks a 28% year-over-year increase for its 565 US centers.
Rising Lease Volumes and Spreads
Kimco signed 576 leases covering 4.4MSF during the quarter. Blended pro-rata cash rent spreads on comparable spaces reached 11.3%. New leases surged 23.8% versus the same period last year, while renewals and options increased by 12.0% and 7.9%, respectively. Grocery-anchored centers continued to attract resilient tenant demand and support organic growth.
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Income Boosted Despite Costs
Net income climbed 20% year-over-year to $157M, driven by leasing activity and a $15.3M gain on property sales. Operating and maintenance expenses increased, mainly due to higher snow removal and landscaping costs, as well as higher real estate taxes and lower lease termination income compared to the first quarter of 2025.
What’s Next
Kimco’s CEO Conor Flynn noted a strong pipeline of signed-not-opened tenants set to drive further organic growth through the year. At the same time, the company is actively pruning select assets as part of a broader effort to recycle capital and optimize its portfolio. The company’s grocery-anchored strategy, sustained leasing momentum, and robust portfolio position it to deliver durable cash flow and additional gains in future quarters.
