Does Kimco Realty's Credit Upgrade Signal Durable Strength in Its Grocery-Anchored Strategy for KIM?

• In September 2025, S&P Global Ratings upgraded Kimco Realty to an A- credit rating with a Stable Outlook, citing the company’s stable cash flows and strengthened operational performance driven by its grocery-anchored property strategy.
• This recognition highlights how Kimco’s steady focus on grocery-anchored assets and robust leasing activity has reinforced the company’s ability to withstand economic shifts and changing retail trends.
• We'll explore how the credit rating upgrade and growing grocery-anchor strength impact Kimco Realty's updated investment narrative.

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Kimco Realty Investment Narrative Recap

To be a Kimco Realty shareholder, you need to believe that grocery-anchored shopping centers with strong tenant demand will continue to fuel resilient cash flow and rental growth, despite rising e-commerce and shifting consumer habits. S&P’s upgrade to an A- credit rating provides a vote of confidence, but the main near-term catalyst, the company’s ability to drive rent growth and maintain high occupancy, remains balanced against the risk of future declines in anchor tenant stability from more online grocery adoption. For now, the rating change affirms financial strength but does not remove the long-term vulnerability to industry shifts.

One recent announcement closely tied to this news event is Kimco’s reported 86 percent of annualized base rent now coming from grocery-anchored assets. As tenant reliability is central to the company’s investment story, this milestone builds on the positive credit outlook, suggesting continued portfolio stability in the face of retail fluctuations.

However, investors should not overlook the potential impact if grocery delivery trends accelerate and threaten Kimco’s anchor tenant revenue stream...

Read the full narrative on Kimco Realty (it's free!)

Kimco Realty is expected to reach $2.3 billion in revenue and $540.4 million in earnings by 2028. This projection assumes annual revenue growth of 3.0% and represents a decrease of $18.7 million in earnings from the current $559.1 million.

Uncover how Kimco Realty's forecasts yield a $24.53 fair value, a 14% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community’s four fair value estimates for Kimco range from US$23 to US$29.07 per share. While market participants reach different conclusions, it’s the company’s growing focus on grocery-anchored properties that may ultimately determine whether these values prove optimistic or cautious.

Explore 4 other fair value estimates on Kimco Realty - why the stock might be worth just $23.00!

Build Your Own Kimco Realty Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Kimco Realty research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Kimco Realty research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Kimco Realty's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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