What's in the Cards for Kimco Realty Stock in Q3 Earnings?

Kimco Realty Corporation KIM is slated to report third-quarter 2025 results on Oct. 30, before the opening bell. The company’s quarterly results are likely to display year-over-year growth in revenues, while funds from operations (FFO) per share remain unchanged.In the last reported quarter, this Jericho, NY-based retail real estate investment trust (REIT) reported FFO per share of 44 cents, which beat the Zacks Consensus Estimate of 43 cents. Results reflected better-than-expected growth in revenues, though a rise in interest expenses acted as a dampener.Over the preceding four quarters, Kimco’s FFO per share surpassed the Zacks Consensus Estimate on three occasions and met in the remaining period, the average beat being 2.99%. This is depicted in the graph below: Kimco Realty Corporation Price and EPS Surprise Kimco Realty Corporation price-eps-surprise | Kimco Realty Corporation Quote U.S. Retail Real Estate Market in Q3 2025Per a Cushman & Wakefield CWK report, there has been a positive shift in net absorption for the U.S. shopping center market in the third quarter of 2025. Asking rents for the U.S. shopping center market grew from the year-ago quarter. While the national vacancy rate increased year over year, it remained flat compared to the previous quarter.Demand for retail space improved in the third quarter of 2025, with the overall U.S. shopping center market witnessing positive net absorption totaling 323,000 square feet against the negative 6.5 million square feet (msf) reported in the previous quarter. The increase was due to positive net absorption observed in the southern region of the country.Asking rents for the U.S. shopping centers came in at $25.01 per square foot in the third quarter, up 1.8% from a year ago. However, the pace of rent growth slowed from early 2024, when it was trending at 4%.The national vacancy rate for the U.S. shopping center markets remained at 5.8% in the third quarter, unchanged from the previous quarter but up by 50 basis points compared to a year before. The rate held steady thanks to the market rebounding from negative absorption earlier in the year. However, the risk of more store closures and hesitancy among both consumers and retailers looms.The lack of new construction is also contributing to the scarcity, as only 7.9 million square feet (msf) of new shopping center space was delivered from the beginning of the year through Oct. 14, 2025. As of the third quarter of 2025, there are only 11.7 msf under construction with an inventory of 4.28 billion square feet.Factors to Consider Ahead of KIM’s Upcoming ResultsIn the third quarter, Kimco seems to have gained from its portfolio of premium shopping centers, which are predominantly grocery-anchored and are in the drivable first-ring suburbs of its top major metropolitan Sunbelt and coastal markets.Led by a healthy mix of essential, necessity-based tenants and omnichannel retailers, this retail REIT enjoys a diverse tenant base. This is likely to have aided stable revenue generation during the to-be-reported quarter, driving top-line growth. Moreover, Kimco’s focus on developing mixed-use assets clustered in strong economic metropolitan statistical areas is likely to have given it an edge by driving net asset value.However, high interest expenses are anticipated to have affected Kimco’s performance to some extent during the quarter.Q3 Projections for KIMThe company’s top line is expected to have improved due to the above tailwinds. The Zacks Consensus Estimate for KIM’s quarterly revenues stands at $524.3 million, implying 3.3% growth from the prior-year reported number.Our estimate for net revenues from rental properties stands at $517.5 million, suggesting a 2.9% increase year over year. We expect KIM’s leased occupancy to increase 20 basis points sequentially to 95.6% in the to-be-reported quarter. However, we estimate a year-over-year increase of 8% in its third-quarter interest expenses.Before the third-quarter earnings release, the company’s activities were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for the quarterly FFO per share has remained unchanged at 43 cents over the past three months. It also remains unchanged year over year.What Our Quantitative Model Predicts for KIMOur proven model does not conclusively predict a surprise in terms of FFO per share for Kimco this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.Kimco currently has an Earnings ESP of -0.51% and carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks That Warrant a LookHere are two stocks from the retail REIT sector — Federal Realty Investment Trust FRT and Simon Property Group SPG — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.FRT, scheduled to report quarterly numbers on Oct. 31, has an Earnings ESP of +0.26% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.SPG, slated to release quarterly numbers on Nov. 3, has an Earnings ESP of +1.08% and carries a Zacks Rank of 3 at present.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Simon Property Group, Inc. (SPG): Free Stock Analysis Report Kimco Realty Corporation (KIM): Free Stock Analysis Report Federal Realty Investment Trust (FRT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks