August 1, 2025 - 10-Q: Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________to_________

Commission File Number: 1-10899 (Kimco Realty Corporation)

Commission File Number: 333-269102-01 (Kimco Realty OP, LLC)

KIMCO REALTY CORPORATION

KIMCO REALTY OP, LLC

(Exact name of registrant as specified in its charter)

      Maryland (Kimco Realty Corporation)
Delaware (Kimco Realty OP, LLC)

      13-2744380
92-1489725

      (State or other jurisdiction of incorporation or organization)

      (I.R.S. Employer Identification No.)

500 North Broadway, Suite 201, Jericho, NY 11753

(Address of principal executive offices) (Zip Code)

(516) 869-9000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year,

if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Kimco Realty Corporation


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.01 per share.	KIM	New York Stock Exchange
Depositary Shares, each representing one one-thousandth of a share of 5.125% Class L Cumulative Redeemable, Preferred Stock, $1.00 par value per share.	KIMprL	New York Stock Exchange
Depositary Shares, each representing one one-thousandth of a share of 5.250% Class M Cumulative Redeemable, Preferred Stock, $1.00 par value per share.	KIMprM	New York Stock Exchange
Depositary Shares, each representing one one-thousandth of a share of 7.250% Class N Cumulative Convertible Preferred Stock, $1.00 par value per share.	KIMprN	New York Stock Exchange

Kimco Realty OP, LLC

      Title of each class

      Trading
Symbol(s)

      Name of each exchange on
which registered

      None

      N/A

      N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


	Kimco Realty Corporation Yes  No ☐		Kimco Realty OP, LLC Yes  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).


	Kimco Realty Corporation Yes  No ☐		Kimco Realty OP, LLC Yes  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Kimco Realty Corporation:


Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐
Smaller reporting company	☐	Emerging growth company	☐

Kimco Realty OP, LLC:


Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated filer	☒
Smaller reporting company	☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


	Kimco Realty Corporation ☐		Kimco Realty OP, LLC ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).


	Kimco Realty Corporation Yes ☐ No 		Kimco Realty OP, LLC Yes ☐ No 

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.

As of July 22, 2025, Kimco Realty Corporation had 677,200,477 shares of common stock outstanding.

KIMCO REALTY CORPORATION

KIMCO REALTY OP, LLC

QUARTERLY REPORT ON FORM 10-Q

QUARTERLY PERIOD ENDED JUNE 30, 2025

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the quarterly period ended June 30, 2025, of Kimco Realty Corporation (the “Parent Company”) and Kimco Realty OP, LLC (“Kimco OP”). Unless stated otherwise or the context requires, references to “Kimco Realty Corporation” or the “Parent Company” mean Kimco Realty Corporation and its subsidiaries, and references to “Kimco Realty OP, LLC” or “Kimco OP” mean Kimco Realty OP, LLC and its subsidiaries. The terms the “Company,” “we,” “our” or “us” refer to the Parent Company and its business and operations conducted through its directly or indirectly owned subsidiaries, including Kimco OP; and in statements regarding qualification as a Real Estate Investment Trust ("REIT"), such terms refer solely to the Parent Company. References to “shares” and “shareholders” refer to the shares and shareholders of the Parent Company and not the limited liability company interests of Kimco OP.

The Parent Company is a REIT and is the managing member of Kimco OP. As of June 30, 2025, the Parent Company owned 99.79% of the outstanding limited liability company interests (the "OP Units") in Kimco OP. Noncontrolling OP Unit interests are owned by third parties and certain officers and directors of the Company.

Substantially all of the Parent Company’s assets are held by, and substantially all of the Parent Company’s operations are conducted through, Kimco OP (either directly or through its subsidiaries), as the Parent Company’s operating company, and the Parent Company is the managing member of Kimco OP. In addition, the officers and directors of the Parent Company are the same as the officers and directors of Kimco OP. Management operates the Parent Company and Kimco OP as one business. The management of the Parent Company consists of the same individuals as the management of Kimco OP. These individuals are officers of the Parent Company and employees of Kimco OP.

Stockholders' equity and Members’ capital are the primary areas of difference between the unaudited Condensed Consolidated Financial Statements of the Parent Company and those of Kimco OP. Kimco OP’s capital currently includes OP Units owned by the Parent Company and noncontrolling OP Units owned by third parties and certain officers and directors of the Company. OP Units owned by outside members are accounted for within capital on Kimco OP’s financial statements and in noncontrolling interests in the Parent Company’s financial statements.

The Parent Company consolidates Kimco OP for financial reporting purposes, and the Parent Company does not have significant assets other than its investment in Kimco OP. Therefore, while stockholders’ equity, members’ capital and noncontrolling interests differ as discussed above, the assets and liabilities of the Parent Company and Kimco OP are the same on their respective financial statements.

The Company believes combining the quarterly reports on Form 10-Q of the Parent Company and Kimco OP into this single report provides the following benefits:

•

Enhances investors' understanding of the Parent Company and Kimco OP by enabling investors to view the businesses as a whole in the same manner as management views and operates the business;

•

Eliminates duplicative disclosure and provides a more concise and readable presentation because a substantial portion of the disclosure applies to both the Parent Company and Kimco OP; and

•

Creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

In order to highlight the differences between the Parent Company and Kimco OP, there are sections in this Quarterly Report that separately discuss the Parent Company and Kimco OP, including separate financial statements (but combined footnotes), separate controls and procedures sections, and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure for the Parent Company and Kimco OP, unless context otherwise requires, this Quarterly Report refers to actions or holdings of the Parent Company and/or Kimco OP as being the actions or holdings of the Company (either directly or through its subsidiaries, including Kimco OP).


PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements	4

Condensed Consolidated Financial Statements of Kimco Realty Corporation and Subsidiaries (unaudited)

	Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024	4

	Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2025 and 2024	5

	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2025 and 2024	6

	Condensed Consolidated Statements of Changes in Equity for the Three and Six Months Ended June 30, 2025 and 2024	7

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024	9

Condensed Consolidated Financial Statements of Kimco Realty OP, LLC and Subsidiaries (unaudited)

	Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024	10

	Condensed Consolidated Statements of Income for the Three and Six Months Ended June 30, 2025 and 2024	11

	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2025 and 2024	12

	Condensed Consolidated Statements of Changes in Capital for the Three and Six Months Ended June 30, 2025 and 2024	13

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024	15

Kimco Realty Corporation and Subsidiaries and Kimco Realty OP, LLC and Subsidiaries

	Notes to Condensed Consolidated Financial Statements (unaudited)	16

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations.	40

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	53

Item 4.	Controls and Procedures.	54

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings.	55

Item 1A.	Risk Factors.	55

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	55

Item 3.	Defaults Upon Senior Securities.	55

Item 4.	Mine Safety Disclosures.	55

Item 5.	Other Information.	56

Item 6.	Exhibits.	56

Signatures		57

KIMCO REALTY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except share information)


	June 30, 2025			December 31, 2024
Assets:
Real estate, net of accumulated depreciation and amortization of $4,585,939 and $4,360,239, respectively	$	16,751,461		$	16,810,333
Investments in and advances to real estate joint ventures		1,466,874			1,487,675
Other investments		109,826			107,347
Cash, cash equivalents and restricted cash		227,826			689,731
Mortgage and other financing receivables, net		440,991			444,966
Accounts and notes receivable, net		339,351			340,469
Operating lease right-of-use assets, net		130,768			126,441
Other assets		329,458			302,934
Total assets (1)	$	19,796,555		$	20,309,896

Liabilities:
Notes payable, net	$	7,717,229		$	7,964,738
Mortgages payable, net		441,489			496,438
Accounts payable and accrued expenses		257,321			281,867
Dividends payable		6,364			6,409
Operating lease liabilities		122,386			117,199
Other liabilities		533,790			597,456
Total liabilities (1)		9,078,579			9,464,107
Redeemable noncontrolling interests		46,566			47,877

Commitments and Contingencies (Footnote 19)

Stockholders' equity:
Preferred stock, $1.00 par value, authorized 7,054,000 shares; Issued and outstanding (in series) 20,748 and 20,806 shares, respectively; Aggregate liquidation preference $553,196 and $556,113, respectively		21			21
Common stock, $.01 par value, authorized 1,500,000,000 shares; Issued and outstanding 677,205,011 and 679,493,522 shares, respectively		6,772			6,795
Paid-in capital		10,979,077			11,033,485
Cumulative distributions in excess of net income		(457,405	)		(398,792	)
Accumulated other comprehensive (loss)/income		(7,790	)		11,038
Total stockholders' equity		10,520,675			10,652,547
Noncontrolling interests		150,735			145,365
Total equity		10,671,410			10,797,912
Total liabilities and equity	$	19,796,555		$	20,309,896

(1)

Total assets include restricted assets of consolidated variable interest entities (“VIEs”) at June 30, 2025 and December 31, 2024 of $330,268 and $334,859, respectively. Total liabilities include non-recourse liabilities of consolidated VIEs at June 30, 2025 and December 31, 2024 of $159,628 and $161,577, respectively. See Footnote 14 of the Notes to Condensed Consolidated Financial Statements.

The accompanying notes are an integral part of these condensed consolidated financial statements.

KIMCO REALTY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(in thousands, except per share data)


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Revenues
Revenues from rental properties, net	$	520,930		$	496,221		$	1,052,216		$	995,126
Management and other fee income		4,245			4,010			9,583			8,859
Total revenues		525,175			500,231			1,061,799			1,003,985

Operating expenses
Rent		(4,242	)		(4,226	)		(8,426	)		(8,505	)
Real estate taxes		(66,559	)		(66,182	)		(136,470	)		(129,542	)
Operating and maintenance		(91,069	)		(87,749	)		(180,622	)		(173,523	)
General and administrative		(32,447	)		(33,090	)		(66,839	)		(69,388	)
Impairment charges		(7,645	)		(201	)		(8,179	)		(3,902	)
Merger charges		-			-			-			(25,246	)
Depreciation and amortization		(156,323	)		(148,148	)		(314,776	)		(302,867	)
Total operating expenses		(358,285	)		(339,596	)		(715,312	)		(712,973	)

Gain on sale of properties		38,922			75			39,809			393

Operating income		205,812			160,710			386,296			291,405

Other income/(expense)
Other income, net		2,903			910			3,119			10,480
Mortgage and other financing income, net		12,062			4,751			23,331			7,270
Loss on marketable securities, net		(2	)		(6	)		(11	)		(27,692	)
Interest expense		(81,204	)		(73,341	)		(161,581	)		(147,906	)

Income before income taxes, net, equity in income of joint ventures, net, and equity in income from other investments, net		139,571			93,024			251,154			133,557

Provision for income taxes, net		(366	)		(217	)		(830	)		(72,227	)
Equity in income of joint ventures, net		23,990			21,527			46,673			42,432
Equity in income of other investments, net		1,747			7,718			2,448			9,252

Net income		164,942			122,052			299,445			113,014

Net income attributable to noncontrolling interests		(1,956	)		(2,314	)		(3,642	)		(4,250	)

Net income attributable to the Company		162,986			119,738			295,803			108,764

Preferred dividends, net		(7,556	)		(7,961	)		(15,239	)		(15,903	)

Net income available to the Company's common shareholders	$	155,430		$	111,777		$	280,564		$	92,861

Per common share:
Net income available to the Company's common shareholders:
-Basic	$	0.23		$	0.17		$	0.41		$	0.14
-Diluted	$	0.23		$	0.17		$	0.41		$	0.14

Weighted average shares:
-Basic		674,613			671,198			675,837			670,658
-Diluted		675,079			671,384			676,244			670,839

The accompanying notes are an integral part of these condensed consolidated financial statements.

KIMCO REALTY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

(in thousands)


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Net income	$	164,942		$	122,052		$	299,445		$	113,014
Other comprehensive (loss)/income:
Change in fair value of cash flow hedges for interest payments		(5,440	)		1,361			(15,709	)		7,820
Equity in change in fair value of cash flow hedges for interest payments of unconsolidated investees		(1,439	)		(404	)		(3,119	)		87
Other comprehensive (loss)/income		(6,879	)		957			(18,828	)		7,907

Comprehensive income		158,063			123,009			280,617			120,921

Comprehensive income attributable to noncontrolling interests		(1,956	)		(2,314	)		(3,642	)		(4,250	)

Comprehensive income attributable to the Company	$	156,107		$	120,695		$	276,975		$	116,671

The accompanying notes are an integral part of these condensed consolidated financial statements.

KIMCO REALTY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(unaudited)

(in thousands)



														Cumulative			Accumulated
														Distributions			Other			Total
	Preferred Stock				Common Stock						Paid-in			in Excess of			Comprehensive			Stockholders'			Noncontrolling			Total
	Issued		Amount		Issued			Amount			Capital			Net Income			Income/(Loss)			Equity			Interests			Equity
Balance at April 1, 2024		21	$	21		674,118		$	6,741		$	10,906,300		$	(303,302	)	$	10,279		$	10,620,039		$	147,817		$	10,767,856
Net income		-		-		-			-			-			119,738			-			119,738			2,314			122,052
Other comprehensive income/(loss):
Change in fair value of cash flow hedges for interest payments		-		-		-			-			-			-			1,361			1,361			-			1,361
Equity in change in fair value of cash flow hedges for interest payments of unconsolidated investees		-		-		-			-			-			-			(404	)		(404	)		-			(404	)
Redeemable noncontrolling interests income		-		-		-			-			-			-			-			-			(1,145	)		(1,145	)
Dividends declared to preferred shares		-		-		-			-			-			(7,961	)		-			(7,961	)		-			(7,961	)
Dividends declared to common shares		-		-		-			-			-			(161,785	)		-			(161,785	)		-			(161,785	)
Distributions to noncontrolling interests		-		-		-			-			-			-			-			-			(1,581	)		(1,581	)
Surrender of restricted common stock		-		-		(6	)		-			(35	)		-			-			(35	)		-			(35	)
Amortization of equity awards		-		-		-			-			7,819			-			-			7,819			433			8,252
Redemption/conversion of noncontrolling interests		-		-		-			-			-			-			-			-			(3	)		(3	)
Balance at June 30, 2024		21	$	21		674,112		$	6,741		$	10,914,084		$	(353,310	)	$	11,236		$	10,578,772		$	147,835		$	10,726,607

Balance at April 1, 2025		21	$	21		679,497		$	6,795		$	11,025,904		$	(443,533	)	$	(911	)	$	10,588,276		$	145,701		$	10,733,977
Net income		-		-		-			-			-			162,986			-			162,986			1,956			164,942
Other comprehensive loss:
Change in fair value of cash flow hedges for interest payments		-		-		-			-			-			-			(5,440	)		(5,440	)		-			(5,440	)
Equity in change in fair value of cash flow hedges for interest payments of unconsolidated investees		-		-		-			-			-			-			(1,439	)		(1,439	)		-			(1,439	)
Redeemable noncontrolling interests income		-		-		-			-			-			-			-			-			(656	)		(656	)
Dividends declared to preferred shares		-		-		-			-			-			(7,538	)		-			(7,538	)		-			(7,538	)
Dividends declared to common shares		-		-		-			-			-			(169,302	)		-			(169,302	)		-			(169,302	)
Repurchase of preferred stock		-		-		-			-			(645	)		(18	)		-			(663	)		-			(663	)
Distributions to noncontrolling interests		-		-		-			-			-			-			-			-			(1,623	)		(1,623	)
Issuance of equity awards, net		-		-		716			7			2,098			-			-			2,105			4,320			6,425
Repurchase of common stock		-		-		(3,000	)		(30	)		(58,814	)		-			-			(58,844	)		-			(58,844	)
Surrender of restricted common stock		-		-		(8	)		-			(110	)		-			-			(110	)		-			(110	)
Amortization of equity awards		-		-		-			-			10,666			-			-			10,666			959			11,625
Redemption/conversion of noncontrolling interests		-		-		-			-			(78	)		-			-			(78	)		78			-
Adjustment of redeemable noncontrolling interests to estimated fair value		-		-		-			-			56			-			-			56			-			56
Balance at June 30, 2025		21	$	21		677,205		$	6,772		$	10,979,077		$	(457,405	)	$	(7,790	)	$	10,520,675		$	150,735		$	10,671,410

The accompanying notes are an integral part of these condensed consolidated financial statements.

KIMCO REALTY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(unaudited)

(in thousands)



														Cumulative			Accumulated
														Distributions			Other			Total
	Preferred Stock				Common Stock						Paid-in			in Excess of			Comprehensive			Stockholders'			Noncontrolling			Total
	Issued		Amount		Issued			Amount			Capital			Net Income			Income/(Loss)			Equity			Interests			Equity
Balance at January 1, 2024		19	$	19		619,871		$	6,199		$	9,638,494		$	(122,576	)	$	3,329		$	9,525,465		$	127,993		$	9,653,458
Net income		-		-		-			-			-			108,764			-			108,764			4,250			113,014
Other comprehensive income:
Change in fair value of cash flow hedges for interest payments		-		-		-			-			-			-			7,820			7,820			-			7,820
Equity in change in fair value of cash flow hedges for interest payments of unconsolidated investees		-		-		-			-			-			-			87			87			-			87
Redeemable noncontrolling interests income		-		-		-			-			-			-			-			-			(2,282	)		(2,282	)
Dividends declared to preferred shares		-		-		-			-			-			(15,921	)		-			(15,921	)		-			(15,921	)
Dividends declared to common shares		-		-		-			-			-			(323,577	)		-			(323,577	)		-			(323,577	)
Distributions to noncontrolling interests		-		-		-			-			-			-			-			-			(3,341	)		(3,341	)
Issuance of preferred stock for merger (1)		2		2		-			-			105,605			-			-			105,607			-			105,607
Issuance of common stock for merger (1)		-		-		53,034			530			1,166,234			-			-			1,166,764			-			1,166,764
Issuance of common stock		-		-		1,967			20			(20	)		-			-			-			-			-
Noncontrolling interests assumed from the merger (1)		-		-		-			-			-			-			-			-			20,975			20,975
Surrender of restricted common stock		-		-		(760	)		(8	)		(14,686	)		-			-			(14,694	)		-			(14,694	)
Amortization of equity awards		-		-		-			-			17,498			-			-			17,498			824			18,322
Redemption/conversion of noncontrolling interests		-		-		-			-			(18	)		-			-			(18	)		(584	)		(602	)
Adjustment of redeemable noncontrolling interests to estimated fair value		-		-		-			-			977			-			-			977			-			977
Balance at June 30, 2024		21	$	21		674,112		$	6,741		$	10,914,084		$	(353,310	)	$	11,236		$	10,578,772		$	147,835		$	10,726,607

Balance at January 1, 2025		21	$	21		679,494		$	6,795		$	11,033,485		$	(398,792	)	$	11,038		$	10,652,547		$	145,365		$	10,797,912
Net income		-		-		-			-			-			295,803			-			295,803			3,642			299,445
Other comprehensive loss:
Change in fair value of cash flow hedges for interest payments		-		-		-			-			-			-			(15,709	)		(15,709	)		-			(15,709	)
Equity in change in fair value of cash flow hedges for interest payments of unconsolidated investees		-		-		-			-			-			-			(3,119	)		(3,119	)		-			(3,119	)
Redeemable noncontrolling interests income		-		-		-			-			-			-			-			-			(1,469	)		(1,469	)
Dividends declared to preferred shares		-		-		-			-			-			(15,091	)		-			(15,091	)		-			(15,091	)
Dividends declared to common shares		-		-		-			-			-			(339,177	)		-			(339,177	)		-			(339,177	)
Repurchase of preferred stock		-		-		-			-			(3,332	)		(148	)		-			(3,480	)		-			(3,480	)
Distributions to noncontrolling interests		-		-		-			-			-			-			-			-			(2,819	)		(2,819	)
Issuance of equity awards, net		-		-		1,241			12			2,093			-			-			2,105			4,320			6,425
Repurchase of common stock		-		-		(3,000	)		(30	)		(58,814	)		-			-			(58,844	)		-			(58,844	)
Surrender of restricted common stock		-		-		(530	)		(5	)		(11,641	)		-			-			(11,646	)		-			(11,646	)
Amortization of equity awards		-		-		-			-			16,731			-			-			16,731			1,618			18,349
Redemption/conversion of noncontrolling interests		-		-		-			-			(78	)		-			-			(78	)		78			-
Adjustment of redeemable noncontrolling interests to estimated fair value		-		-		-			-			633			-			-			633			-			633
Balance at June 30, 2025		21	$	21		677,205		$	6,772		$	10,979,077		$	(457,405	)	$	(7,790	)	$	10,520,675		$	150,735		$	10,671,410

(1) See Footnotes 1 and 3 of the Notes to Condensed Consolidated Financial Statements for further details.

The accompanying notes are an integral part of these condensed consolidated financial statements.

KIMCO REALTY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)


	Six Months Ended June 30,
	2025			2024
Cash flow from operating activities:
Net income	$	299,445		$	113,014
Adjustments to reconcile net income to net cash flow provided by operating activities:
Depreciation and amortization		314,776			302,867
Impairment charges		8,179			3,902
Straight-line rental income adjustments, net		(10,564	)		(12,934	)
Amortization of above-market and below-market leases, net		(12,644	)		(10,345	)
Amortization of deferred financing costs and fair value debt adjustments, net		667			(910	)
Equity award expense		18,349			18,293
Gain on sale of properties		(39,809	)		(393	)
Loss on marketable securities, net		11			27,692
Change in fair value of embedded derivative liability		(2,459	)		3,079
Equity in income of joint ventures, net		(46,673	)		(42,432	)
Equity in income of other investments, net		(2,448	)		(9,252	)
Distributions from joint ventures and other investments		44,661			52,664
Change in accounts and notes receivable, net		11,599			29,459
Change in accounts payable and accrued expenses		(25,741	)		9,603
Change in other operating assets and liabilities, net		(28,133	)		(14,157	)
Net cash flow provided by operating activities		529,216			470,150

Cash flow from investing activities:
Acquisition of operating real estate and other related net assets		(106,244	)		-
Improvements to operating real estate		(138,210	)		(128,594	)
Acquisition of RPT Realty		-			(149,103	)
Investment in marketable securities		(1,003	)		(11	)
Proceeds from sale of marketable securities		500			300,763
Investments in preferred stock and cost method investments		(5,361	)		(36	)
Investments in and advances to real estate joint ventures		(2,909	)		(3,182	)
Reimbursements of investments in and advances to real estate joint ventures		14,186			18,159
Investments in and advances to other investments		(3,012	)		(3,913	)
Reimbursements of investments in and advances to other investments		1,195			2,856
Investment in mortgage and other financing receivables		(46,170	)		(178,934	)
Collection of mortgage and other financing receivables		50,144			61,122
Proceeds from sale of properties		2,119			70,341
Proceeds from insurance casualty claims		1,630			-
Net cash flow used for investing activities		(233,135	)		(10,532	)

Cash flow from financing activities:
Principal payments on debt, excluding normal amortization of rental property debt		(48,844	)		(11,774	)
Principal payments on rental property debt		(6,200	)		(4,963	)
Proceeds from issuance of unsecured term loans		-			510,000
Proceeds from issuance of unsecured notes		500,000			-
Proceeds from unsecured revolving credit facility, net		-			220,000
Repayments of unsecured term loans		-			(310,000	)
Repayments of unsecured notes		(740,505	)		(1,157,700	)
Financing origination costs		(6,619	)		(1,563	)
Redemption/distribution of noncontrolling interests		(5,334	)		(8,318	)
Dividends paid		(354,311	)		(338,085	)
Repurchase of preferred stock		(3,480	)		-
Repurchase of common stock		(58,844	)		-
Shares repurchased for employee tax withholding on equity awards		(11,644	)		(14,665	)
Principal payments under finance lease obligations		(24,362	)		-
Change in tenants' security deposits		2,157			1,248
Net cash flow used for financing activities		(757,986	)		(1,115,820	)

Net change in cash, cash equivalents and restricted cash		(461,905	)		(656,202	)
Cash, cash equivalents and restricted cash, beginning of the period		689,731			783,757
Cash, cash equivalents and restricted cash, end of the period	$	227,826		$	127,555

Interest paid (net of capitalized interest of $1,166 and $1,153, respectively)	$	167,401		$	150,906
Income taxes paid, net of refunds	$	25,773		$	57,805

The accompanying notes are an integral part of these condensed consolidated financial statements.

KIMCO REALTY OP, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands, except unit information)


	June 30, 2025			December 31, 2024
Assets:
Real estate, net of accumulated depreciation and amortization of $4,585,939 and $4,360,239, respectively	$	16,751,461		$	16,810,333
Investments in and advances to real estate joint ventures		1,466,874			1,487,675
Other investments		109,826			107,347
Cash, cash equivalents and restricted cash		227,826			689,731
Mortgage and other financing receivables, net		440,991			444,966
Accounts and notes receivable, net		339,351			340,469
Operating lease right-of-use assets, net		130,768			126,441
Other assets		329,458			302,934
Total assets (1)	$	19,796,555		$	20,309,896

Liabilities:
Notes payable, net	$	7,717,229		$	7,964,738
Mortgages payable, net		441,489			496,438
Accounts payable and accrued expenses		257,321			281,867
Dividends payable		6,364			6,409
Operating lease liabilities		122,386			117,199
Other liabilities		533,790			597,456
Total liabilities (1)		9,078,579			9,464,107
Redeemable noncontrolling interests		46,566			47,877

Commitments and Contingencies (Footnote 19)

Members' capital:
Preferred units; 20,748 and 20,806 units outstanding, respectively		546,256			549,588
General member; 677,205,011 and 679,493,522 common units outstanding, respectively		9,982,209			10,091,921
Limited members; 1,444,722 and 1,073,942 common units outstanding, respectively		28,143			22,276
Accumulated other comprehensive (loss)/income		(7,790	)		11,038
Total members' capital		10,548,818			10,674,823
Noncontrolling interests		122,592			123,089
Total capital		10,671,410			10,797,912
Total liabilities and capital	$	19,796,555		$	20,309,896

(1)

Total assets include restricted assets of consolidated VIEs at June 30, 2025 and December 31, 2024 of $330,268 and $334,859, respectively. Total liabilities include non-recourse liabilities of consolidated VIEs at June 30, 2025 and December 31, 2024 of $159,628 and $161,577, respectively. See Footnote 14 of the Notes to Condensed Consolidated Financial Statements.

The accompanying notes are an integral part of these condensed consolidated financial statements.

KIMCO REALTY OP, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(in thousands, except per unit data)


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Revenues
Revenues from rental properties, net	$	520,930		$	496,221		$	1,052,216		$	995,126
Management and other fee income		4,245			4,010			9,583			8,859
Total revenues		525,175			500,231			1,061,799			1,003,985

Operating expenses
Rent		(4,242	)		(4,226	)		(8,426	)		(8,505	)
Real estate taxes		(66,559	)		(66,182	)		(136,470	)		(129,542	)
Operating and maintenance		(91,069	)		(87,749	)		(180,622	)		(173,523	)
General and administrative		(32,447	)		(33,090	)		(66,839	)		(69,388	)
Impairment charges		(7,645	)		(201	)		(8,179	)		(3,902	)
Merger charges		-			-			-			(25,246	)
Depreciation and amortization		(156,323	)		(148,148	)		(314,776	)		(302,867	)
Total operating expenses		(358,285	)		(339,596	)		(715,312	)		(712,973	)

Gain on sale of properties		38,922			75			39,809			393

Operating income		205,812			160,710			386,296			291,405

Other income/(expense)
Other income, net		2,903			910			3,119			10,480
Mortgage and other financing income, net		12,062			4,751			23,331			7,270
Loss on marketable securities, net		(2	)		(6	)		(11	)		(27,692	)
Interest expense		(81,204	)		(73,341	)		(161,581	)		(147,906	)

Income before income taxes, net, equity in income of joint ventures, net, and equity in income from other investments, net		139,571			93,024			251,154			133,557

Provision for income taxes, net		(366	)		(217	)		(830	)		(72,227	)
Equity in income of joint ventures, net		23,990			21,527			46,673			42,432
Equity in income of other investments, net		1,747			7,718			2,448			9,252

Net income		164,942			122,052			299,445			113,014

Net income attributable to noncontrolling interests		(1,609	)		(2,123	)		(3,084	)		(4,074	)

Net income attributable to Kimco OP		163,333			119,929			296,361			108,940

Preferred distributions, net		(7,556	)		(7,961	)		(15,239	)		(15,903	)

Net income available to Kimco OP's common unitholders	$	155,777		$	111,968		$	281,122		$	93,037

Per common unit:
Net income available to Kimco OP's common unitholders:
-Basic	$	0.23		$	0.16		$	0.41		$	0.14
-Diluted	$	0.23		$	0.16		$	0.41		$	0.14

Weighted average units:
-Basic		675,609			675,189			676,818			674,572
-Diluted		676,075			675,374			677,225			674,753

The accompanying notes are an integral part of these condensed consolidated financial statements.

KIMCO REALTY OP, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

(in thousands)


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Net income	$	164,942		$	122,052		$	299,445		$	113,014
Other comprehensive (loss)/income:
Change in fair value of cash flow hedges for interest payments		(5,440	)		1,361			(15,709	)		7,820
Equity in change in fair value of cash flow hedges for interest payments of unconsolidated investees		(1,439	)		(404	)		(3,119	)		87
Other comprehensive (loss)/income		(6,879	)		957			(18,828	)		7,907

Comprehensive income		158,063			123,009			280,617			120,921

Comprehensive income attributable to noncontrolling interests		(1,609	)		(2,123	)		(3,084	)		(4,074	)

Comprehensive income attributable to Kimco OP	$	156,454		$	120,886		$	277,533		$	116,847

The accompanying notes are an integral part of these condensed consolidated financial statements.

KIMCO REALTY OP, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL

(unaudited)

(in thousands)


																	Accumulated
	General Member											Limited Members					Other			Total
	Preferred Units					Common Units						Common Units					Comprehensive			Members'			Noncontrolling			Total
	Issued		Amount			Issued			Amount			Issued		Amount			Income/(Loss)			Capital			Interests			Capital
Balance at April 1, 2024		21	$	573,003			674,118		$	10,036,757			1,074	$	21,093		$	10,279		$	10,641,132		$	126,724		$	10,767,856
Net income		-		7,961			-			111,777			-		191			-			119,929			2,123			122,052
Other comprehensive income/(loss):
Change in fair value of cash flow hedges for interest payments		-		-			-			-			-		-			1,361			1,361			-			1,361
Equity in change in fair value of cash flow hedges for interest payments of unconsolidated investees		-		-			-			-			-		-			(404	)		(404	)		-			(404	)
Redeemable noncontrolling interests income		-		-			-			-			-		-			-			-			(1,146	)		(1,146	)
Distributions declared to preferred unitholders		-		(7,961	)		-			-			-		-			-			(7,961	)		-			(7,961	)
Distributions declared to common unitholders		-		-			-			(161,785	)		-		(256	)		-			(162,041	)		-			(162,041	)
Distributions to noncontrolling interests		-		-			-			-			-		-			-			-			(1,324	)		(1,324	)
Redemption of common units		-		-			-			-			-		(3	)		-			(3	)		-			(3	)
Surrender of restricted common units		-		-			(6	)		(35	)		-		-			-			(35	)		-			(35	)
Amortization of equity awards		-		-			-			7,819			-		433			-			8,252			-			8,252
Balance at June 30, 2024		21	$	573,003			674,112		$	9,994,533			1,074	$	21,458		$	11,236		$	10,600,230		$	126,377		$	10,726,607

Balance at April 1, 2025		21	$	546,901			679,497		$	10,042,286			1,074	$	22,877		$	(911	)	$	10,611,153		$	122,824		$	10,733,977
Net income		-		7,556			-			155,430			-		347			-			163,333			1,609			164,942
Other comprehensive loss:
Change in fair value of cash flow hedges for interest payments		-		-			-			-			-		-			(5,440	)		(5,440	)		-			(5,440	)
Equity in change in fair value of cash flow hedges for interest payments of unconsolidated investees		-		-			-			-			-		-			(1,439	)		(1,439	)		-			(1,439	)
Redeemable noncontrolling interests income		-		-			-			-			-		-			-			-			(656	)		(656	)
Distributions declared to preferred unitholders		-		(7,556	)		-			-			-		-			-			(7,556	)		-			(7,556	)
Distributions declared to common unitholders		-		-			-			(169,284	)		-		(360	)		-			(169,644	)		-			(169,644	)
Repurchase of preferred units		-		(645	)		-			(18	)		-		-			-			(663	)		-			(663	)
Repurchase of common units		-		-			(3,000	)		(58,844	)		-		-			-			(58,844	)		-			(58,844	)
Distributions to noncontrolling interests		-		-			-			-			-		-			-			-			(1,263	)		(1,263	)
Issuance of equity awards, net		-		-			716			2,105			371		4,320			-			6,425			-			6,425
Surrender of restricted common units		-		-			(8	)		(110	)		-		-			-			(110	)		-			(110	)
Amortization of equity awards		-		-			-			10,666			-		959			-			11,625			-			11,625
Redemption/conversion of noncontrolling interests		-		-			-			(78	)		-		-			-			(78	)		78			-
Adjustment of redeemable noncontrolling interests to estimated fair value		-		-			-			56			-		-			-			56			-			56
Balance at June 30, 2025		21	$	546,256			677,205		$	9,982,209			1,445	$	28,143		$	(7,790	)	$	10,548,818		$	122,592		$	10,671,410

The accompanying notes are an integral part of these condensed consolidated financial statements.

KIMCO REALTY OP, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL

(unaudited)

(in thousands)


																	Accumulated
	General Member											Limited Members					Other			Total
	Preferred Units					Common Units						Common Units					Comprehensive			Members'			Noncontrolling			Total
	Issued		Amount			Issued			Amount			Issued		Amount			Income/(Loss)			Capital			Interests			Capital
Balance at January 1, 2024		19	$	467,396			619,871		$	9,054,740			-	$	-		$	3,329		$	9,525,465		$	127,993		$	9,653,458
Net income		-		15,903			-			92,861			-		176			-			108,940			4,074			113,014
Other comprehensive income:
Change in fair value of cash flow hedges for interest payments		-		-			-			-			-		-			7,820			7,820			-			7,820
Equity in change in fair value of cash flow hedges for interest payments of unconsolidated investees		-		-			-			-			-		-			87			87			-			87
Redeemable noncontrolling interests income		-		-			-			-			-		-			-			-			(2,283	)		(2,283	)
Distributions declared to preferred unitholders		-		(15,903	)		-			-			-		-			-			(15,903	)		-			(15,903	)
Distributions declared to common unitholders		-		-			-			(323,595	)		-		(514	)		-			(324,109	)		-			(324,109	)
Distributions to noncontrolling interests																					-			(2,826	)		(2,826	)
Issuance of preferred units for merger (1)		2		105,607																	105,607						105,607
Issuance of common units for merger (1)							53,034			1,166,764			953		20,975						1,187,739						1,187,739
Issuance of common units		-		-			1,967			-			121		-			-			-			-			-
Redemption of common units		-		-			-			-			-		(3	)		-			(3	)		-			(3	)
Surrender of restricted common units		-		-			(760	)		(14,694	)		-		-			-			(14,694	)		-			(14,694	)
Amortization of equity awards		-		-			-			17,498			-		824			-			18,322			-			18,322
Redemption/conversion of noncontrolling interests		-		-			-			(18	)		-		-			-			(18	)		(581	)		(599	)
Adjustment of redeemable noncontrolling interests to estimated fair value		-		-			-			977			-		-			-			977			-			977
Balance at June 30, 2024		21	$	573,003			674,112		$	9,994,533			1,074	$	21,458		$	11,236		$	10,600,230		$	126,377		$	10,726,607

Balance at January 1, 2025		21	$	549,588			679,494		$	10,091,921			1,074	$	22,276		$	11,038		$	10,674,823		$	123,089		$	10,797,912
Net income		-		15,239			-			280,564			-		558			-			296,361			3,084			299,445
Other comprehensive loss:
Change in fair value of cash flow hedges for interest payments		-		-			-			-			-		-			(15,709	)		(15,709	)		-			(15,709	)
Equity in change in fair value of cash flow hedges for interest payments of unconsolidated investees		-		-			-			-			-		-			(3,119	)		(3,119	)		-			(3,119	)
Redeemable noncontrolling interests income		-		-			-			-			-		-			-			-			(1,469	)		(1,469	)
Distributions declared to preferred unitholders		-		(15,109	)		-			-			-		-			-			(15,109	)		-			(15,109	)
Distributions declared to common unitholders		-		-			-			(339,159	)		-		(629	)		-			(339,788	)		-			(339,788	)
Repurchase of preferred units		-		(3,462	)		-			(18	)		-		-			-			(3,480	)		-			(3,480	)
Distributions to noncontrolling interests		-		-			-			-			-		-			-			-			(2,190	)		(2,190	)
Issuance of equity awards, net		-		-			1,241			2,105			371		4,320			-			6,425			-			6,425
Repurchase of common units		-		-			(3,000	)		(58,844	)		-		-			-			(58,844	)		-			(58,844	)
Surrender of restricted common units		-		-			(530	)		(11,646	)		-		-			-			(11,646	)		-			(11,646	)
Amortization of equity awards		-		-			-			16,731			-		1,618			-			18,349			-			18,349
Redemption/conversion of noncontrolling interests		-		-			-			(78	)		-		-			-			(78	)		78			-
Adjustment of redeemable noncontrolling interests to estimated fair value		-		-			-			633			-		-			-			633			-			633
Balance at June 30, 2025		21	$	546,256			677,205		$	9,982,209			1,445	$	28,143		$	(7,790	)	$	10,548,818		$	122,592		$	10,671,410

(1)

See Footnotes 1 and 3 of the Notes to Condensed Consolidated Financial Statements for further details.

The accompanying notes are an integral part of these condensed consolidated financial statements.

KIMCO REALTY OP, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)


	Six Months Ended June 30,
	2025			2024
Cash flow from operating activities:
Net income	$	299,445		$	113,014
Adjustments to reconcile net income to net cash flow provided by operating activities:
Depreciation and amortization		314,776			302,867
Impairment charges		8,179			3,902
Straight-line rental income adjustments, net		(10,564	)		(12,934	)
Amortization of above-market and below-market leases, net		(12,644	)		(10,345	)
Amortization of deferred financing costs and fair value debt adjustments, net		667			(910	)
Equity award expense		18,349			18,293
Gain on sale of properties		(39,809	)		(393	)
Loss on marketable securities, net		11			27,692
Change in fair value of embedded derivative liability		(2,459	)		3,079
Equity in income of joint ventures, net		(46,673	)		(42,432	)
Equity in income of other investments, net		(2,448	)		(9,252	)
Distributions from joint ventures and other investments		44,661			52,664
Change in accounts and notes receivable, net		11,599			29,459
Change in accounts payable and accrued expenses		(25,741	)		9,603
Change in other operating assets and liabilities, net		(28,133	)		(14,157	)
Net cash flow provided by operating activities		529,216			470,150

Cash flow from investing activities:
Acquisition of operating real estate and other related net assets		(106,244	)		-
Improvements to operating real estate		(138,210	)		(128,594	)
Acquisition of RPT Realty		-			(149,103	)
Investment in marketable securities		(1,003	)		(11	)
Proceeds from sale of marketable securities		500			300,763
Investments in preferred stock and cost method investments		(5,361	)		(36	)
Investments in and advances to real estate joint ventures		(2,909	)		(3,182	)
Reimbursements of investments in and advances to real estate joint ventures		14,186			18,159
Investments in and advances to other investments		(3,012	)		(3,913	)
Reimbursements of investments in and advances to other investments		1,195			2,856
Investment in mortgage and other financing receivables		(46,170	)		(178,934	)
Collection of mortgage and other financing receivables		50,144			61,122
Proceeds from sale of properties		2,119			70,341
Proceeds from insurance casualty claims		1,630			-
Net cash flow used for investing activities		(233,135	)		(10,532	)

Cash flow from financing activities:
Principal payments on debt, excluding normal amortization of rental property debt		(48,844	)		(11,774	)
Principal payments on rental property debt		(6,200	)		(4,963	)
Proceeds from issuance of unsecured term loans		-			510,000
Proceeds from issuance of unsecured notes		500,000			-
Proceeds from unsecured revolving credit facility, net		-			220,000
Repayments of unsecured term loans		-			(310,000	)
Repayments of unsecured notes		(740,505	)		(1,157,700	)
Financing origination costs		(6,619	)		(1,563	)
Redemption/distribution of noncontrolling interests		(4,705	)		(8,318	)
Distributions paid to common and preferred unitholders		(354,940	)		(338,085	)
Repurchase of preferred units		(3,480	)		-
Repurchase of common units		(58,844	)		-
Units repurchased for employee tax withholding on equity awards		(11,644	)		(14,665	)
Principal payments under finance lease obligations		(24,362	)		-
Change in tenants' security deposits		2,157			1,248
Net cash flow used for financing activities		(757,986	)		(1,115,820	)

Net change in cash, cash equivalents and restricted cash		(461,905	)		(656,202	)
Cash, cash equivalents and restricted cash, beginning of the period		689,731			783,757
Cash, cash equivalents and restricted cash, end of the period	$	227,826		$	127,555

Interest paid (net of capitalized interest of $1,166 and $1,153, respectively)	$	167,401		$	150,906
Income taxes paid, net of refunds	$	25,773		$	57,805

The accompanying notes are an integral part of these condensed consolidated financial statements.

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Business and Organization

Kimco Realty Corporation and its subsidiaries (the “Parent Company”) operates as a Real Estate Investment Trust ("REIT"), of which substantially all of the Parent Company’s assets are held by, and substantially all of the Parent Company’s operations are conducted through, Kimco Realty OP, LLC (“Kimco OP”), either directly or through its subsidiaries, as the Parent Company’s operating company. The Parent Company is the managing member and exercises exclusive control over Kimco OP. As of June 30, 2025, the Parent Company owned 99.79% of the outstanding limited liability company interests (the "OP Units") in Kimco OP. The terms “Kimco,” “the Company” and “our” each refer to the Parent Company and Kimco OP, collectively, unless the context indicates otherwise. In statements regarding qualification as a REIT, such terms refer solely to Kimco Realty Corporation.

The Company is the leading owner and operator of high-quality, open-air, grocery-anchored shopping centers and mixed-use properties in the United States. The Company’s portfolio is primarily concentrated in the first-ring suburbs of the top major metropolitan markets, including those in high-barrier-to-entry coastal markets and rapidly expanding Sun Belt cities, with a tenant mix focused on essential, necessity-based goods and services that drive multiple shopping trips per week. The Company, its affiliates and related real estate joint ventures are engaged principally in the ownership, management, development and operation of open-air shopping centers, including mixed-use assets, which are anchored primarily by grocery stores, off-price retailers, discounters or service-oriented tenants. Additionally, the Company provides complementary services that capitalize on the Company’s established retail real estate expertise. The Company’s mission is to create destinations for everyday living that inspire a sense of community and deliver value to our many stakeholders. The Company evaluates performance on a property specific or transactional basis and does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company believes it has a single reportable segment for disclosure purposes in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

The Company elected status as a REIT for federal income tax purposes commencing with its taxable year which began January 1, 1992 and operates in a manner that enables the Company to maintain its status as a REIT. To qualify as a REIT, the Company must meet several organizational and operational requirements, and is required to annually distribute at least 90% of its net taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain. In addition, the Company will be subject to federal income tax at regular corporate rates to the extent that it distributes less than 100% of its net taxable income, including any net capital gains. In January 2023, the Company consummated a reorganization into an umbrella partnership real estate investment trust structure (“UPREIT”). The Company believes it is organized and operates in such a manner to qualify and remain qualified as a REIT, in accordance with Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”). The Company, generally, will not be subject to U.S. federal income tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income, as defined in the Code. The Company maintains certain subsidiaries that have made joint elections with the Company to be treated as taxable REIT subsidiaries (“TRSs”), that permit the Company to engage through such TRSs in certain business activities that the REIT may not conduct directly. A TRS is subject to federal and state income taxes on its income, and the Company includes, when applicable, a provision for taxes in its condensed consolidated financial statements.

RPT Merger

On January 2, 2024, RPT Realty (“RPT”) merged with and into the Company, with the Company continuing as the surviving public company (the “RPT Merger”), pursuant to the definitive merger agreement (the “Merger Agreement”) between the Company and RPT, entered into on August 28, 2023. Under the terms of the Merger Agreement, each RPT common share was converted into 0.6049 of a newly issued share of the Company’s common stock, together with cash in lieu of fractional shares, and each 7.25% Series D Cumulative Convertible Perpetual Preferred Share of RPT was converted into the right to receive one depositary share representing one one-thousandth of a share of the Company’s 7.25% Class N Cumulative Convertible Perpetual Preferred Stock, par value $1.00 per share (“Class N Preferred Stock”). During the six months ended June 30, 2024, the Company incurred expenses of $25.2 million associated with the RPT Merger, primarily comprised of severance, legal and professional fees. See Footnote 3 of the Notes to Condensed Consolidated Financial Statements for further details.

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

2. Summary of Significant Accounting Policies

Basis of Presentation

This report combines the quarterly reports on Form 10-Q for the quarterly period ended June 30, 2025, of the Parent Company and Kimco OP into this single report. The accompanying Condensed Consolidated Financial Statements include the accounts of the Parent Company and Kimco OP and their consolidated subsidiaries. The Company’s subsidiaries include subsidiaries which are wholly owned or which the Company has a controlling interest, including where the Company has been determined to be a primary beneficiary of a variable interest entity (“VIE”) in accordance with the consolidation guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). The Parent Company serves as the general member of Kimco OP. The limited members of Kimco OP have limited rights over Kimco OP and do not have the power to direct the activities that most significantly impact Kimco OP’s economic performance. As such, Kimco OP is considered a VIE, and the Parent Company, which consolidates it, is the primary beneficiary. All inter-company balances and transactions have been eliminated in consolidation. The information presented in the accompanying Condensed Consolidated Financial Statements is unaudited and reflects all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature. Amounts as of December 31, 2024 included in the Condensed Consolidated Financial Statements have been derived from the audited Consolidated Financial Statements as of that date, but do not include all annual disclosures required by GAAP. These Condensed Consolidated Financial Statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as certain disclosures in this Quarterly Report that would duplicate those included in such Annual Report on Form 10-K are not included in these Condensed Consolidated Financial Statements.

On January 2, 2024, the Parent Company, as managing member of Kimco OP, entered into an amended and restated limited liability company agreement of Kimco OP (the “Amended and Restated Limited Liability Company Agreement”), providing for, among other things, the creation of Class N Preferred Units of Kimco OP, having the preferences, rights and limitations set forth therein, and certain modifications to the provisions regarding long-term incentive plan units (“LTIP Units”), including provisions governing distribution and tax allocation requirements and the procedures for converting LTIP Units.

Subsequent Events

The Company has evaluated subsequent events and transactions for potential recognition or disclosure in its Condensed Consolidated Financial Statements.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted into law, which included certain modifications to U.S. tax law, including certain provisions that affect the taxation of REITs and their investors. The OBBBA permanently extended certain provisions that were enacted in the Tax Cuts and Jobs Act of 2017. Such extensions included the permanent extension of the 20% deduction for “qualified REIT dividends” for individuals and other non-corporate taxpayers. The OBBBA also increased the percentage limit under the REIT asset test applicable to TRSs (the permissible value of TRS securities that a REIT may hold) from 20% to 25% of the value of the REIT’s total assets for taxable years beginning after December 31, 2025. The Company is currently evaluating the provisions of the OBBBA, but does not expect the OBBBA to have a material impact on the Company’s financial position and/or results of operations.

Reclassifications

Certain amounts in the prior period have been reclassified in order to conform to the current period’s presentation. For comparative purposes, as of December 31, 2024, the Company reclassified Mortgage and other financing receivables, net from Other assets to a separate line item and reclassified Marketable securities to Other assets on the Company’s Condensed Consolidated Balance Sheet as follows (in thousands):


	As of December 31, 2024
Mortgage and other financing receivables, net	$	444,966
Marketable securities	$	(2,290	)
Other assets	$	(442,676	)

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

For comparative purposes, for the three and six months ended June 30, 2024, the Company reclassified Mortgage and other financing income, net from Other income, net to a separate line item on the Company’s Condensed Consolidated Statements of Income as follows (in thousands):


	Three Months Ended June 30, 2024			Six Months Ended June 30, 2024
Mortgage and other financing income, net	$	4,751		$	7,270
Other income, net	$	(4,751	)	$	(7,270	)

New Accounting Pronouncements

The following table represents Accounting Standards Updates (“ASUs”) to the FASB’s ASC that, as of June 30, 2025, are not yet effective for the Company and for which the Company has not elected early adoption, where permitted:


ASU	Description	Effective Date	Effect on the financial statements or other significant matters
ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures	This ASU requires entities to provide additional information in the rate reconciliation and additional disclosures about income taxes paid. The guidance requires public business entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance requires all entities annually to disclose income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. The amendments are to be applied prospectively, although retrospective adoption is permitted.	Fiscal years beginning January 1, 2025, and interim periods for fiscal years beginning January 1, 2026; Early adoption permitted	The Company is reviewing the extent of new disclosures necessary prior to implementation. Other than additional disclosure, the adoption of this ASU will not have a material impact on the Company’s financial position and/or results of operations.
ASU 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses ASU 2025-01, Income Statement - Reporting Comprehensive, Income -Expense Disaggregation Disclosures (Subtopic 220-40), Clarifying the Effective Date	This ASU requires additional disclosure about a public business entity’s expenses and more detailed information about the types of expenses in commonly presented expense captions. Such information should allow investors to better understand an entity's performance, assess future cash flows, and compare performance over time and with other entities. The amendments will require public business entities to disclose in the notes to the financial statements, at each interim and annual reporting period, specific information about certain costs and expenses, employee compensation, depreciation, and intangible asset amortization included in each expense caption presented on the face of the income statement, and the total amount of an entity's operating expenses. The amendments are to be applied either prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the financial statements.	Fiscal years beginning January 1, 2027, and interim periods for fiscal years beginning January 1, 2028; Early adoption permitted	The Company does not expect the adoption of this ASU to have a material impact on the Company’s financial position and/or results of operations.

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

          ASU 2025-03 Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity
 
          The amendments in this ASU revise the guidance for determining the accounting acquirer in the acquisition of a VIE. An entity will be required to consider the factors in ASC 805-10-55-12 through 805-10-55-15 in determining which entity is the accounting acquirer when a VIE is acquired in a business combination effected primarily by exchanging equity interests. Previously, the primary beneficiary was always identified as the accounting acquirer in such transactions. The amendments are required to be applied prospectively to any acquisition transaction that occurs after the initial application date.
 
          January 1, 2027; Early adoption is permitted as of the beginning of an interim or annual reporting
period

          The Company does not expect the adoption of this ASU, which is applied prospectively, to have a material impact on the Company’s financial position and/or results of operations.

The following ASUs to the FASB’s ASCs have been adopted by the Company as of the date listed:


ASU	Description	Adoption Date	Effect on the financial statements or other significant matters
ASU 2023-05, Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement	The amendments in this ASU address the accounting for contributions made to a joint venture, upon formation, in a joint venture’s separate financial statements. To reduce diversity in practice and provide decision-useful information to a joint venture’s investors, these amendments require that a joint venture apply a new basis of accounting upon formation. By applying a new basis of accounting, a joint venture, upon formation, will recognize and initially measure its assets and liabilities at fair value (with exceptions to fair value measurement that are consistent with the business combinations guidance). Additionally, existing joint ventures have the option to apply the guidance retrospectively.	January 1, 2025	This ASU does not impact accounting for joint ventures by the venturers. As such, the adoption of this ASU did not have an impact on the Company’s financial position and/or results of operations.
ASU 2024-01, Compensation - Stock Compensation (Topic 718)	The amendments in this ASU clarify how to determine whether profits interest and similar awards should be accounted for as a share-based payment arrangement (ASC 718) or as a cash bonus or profit-sharing arrangement (ASC 710, Compensation - General, or other guidance) and apply to all reporting entities that account for profits interest awards as compensation to employees or non-employees. In addition to the illustrative guidance, this ASU modifies the language in paragraph 718-10-15-3 to improve its clarity and operability without changing the guidance. The amendments should be applied either retrospectively to all prior periods presented in the financial statements, or prospectively to profits interests and similar awards granted or modified on or after the adoption date.	January 1, 2025	The adoption of this ASU did not have a material impact on the Company’s financial position and/or results of operations.

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

3. RPT Merger

Overview

On January 2, 2024, the Company completed the RPT Merger, under which RPT merged with and into the Company, with the Company continuing as the surviving public company. Under the terms of the Merger Agreement, each RPT common share was converted into 0.6049 of a newly issued share of the Company’s common stock, together with cash in lieu of fractional shares and each 7.25% Series D Cumulative Convertible Perpetual Preferred Share of RPT was converted into the right to receive one depositary share representing one one-thousandth of a share of Class N Preferred Stock of the Company.

The following highlights the Company’s significant activity upon completion of the $1.4 billion RPT Merger on January 2, 2024:

•

Added 56 open-air shopping centers, 43 of which were wholly owned and 13 of which were owned through a joint venture, comprising 13.3 million square feet of gross leasable area (“GLA”);

•

Obtained RPT’s 6% stake in a 49-property net lease joint venture;

•

Assumed $821.5 million of unsecured notes and term loans, of which the Company repaid $511.5 million of unsecured notes in January 2024;

•

Issued 53.0 million shares of common stock and 1.8 million depositary shares of Class N Preferred Stock to effect the RPT Merger;

•

Issued 953,400 OP Units in Kimco OP, which were fully vested upon issuance and had a fair market value of $21.0 million;

•

Obtained a $13.5 million operating right-of-use asset (excluding an intangible right-of-use asset of $7.4 million) in exchange for a new operating lease liability related to a property under an operating ground lease agreement; and

•

Obtained a finance right-of-use asset of $6.8 million (which is included in Other assets on the Company’s Condensed Consolidated Balance Sheets).

Since the date of the RPT Merger through June 30, 2024, the revenue and net income included in the Company’s Condensed Consolidated Statements of Income were $89.3 million and $5.7 million (excluding $25.2 million of merger-related charges), respectively.

Pro forma Information

The pro forma financial information set forth below is based upon the Company’s historical Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024, adjusted to give effect to these properties acquired as of January 1, 2023. The pro forma financial information is presented for informational purposes only and may not be indicative of what actual results of income would have been, nor does it purport to represent the results of income for future periods. Amounts are presented in millions.


	Three Months Ended June 30, 2024		Six Months Ended June 30, 2024
Revenues from rental properties, net	$	496.2	$	995.1
Net income (1)	$	122.1	$	138.3
Net income available to the Company’s common shareholders (1)	$	111.8	$	118.1

(1)

The pro forma earnings for the six months ended June 30, 2024 were adjusted to exclude merger-related charges of $25.2 million.

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

4. Real Estate

Acquisitions

During the six months ended June 30, 2025, the Company acquired the following operating properties, through direct asset acquisitions (in thousands):


					Purchase Price
Property Name	Location	Month Acquired	Cash		Debt		Other		Total		GLA
Markets at Town Center (1)	Jacksonville, FL	Jan-25	$	108,238	$	-	$	-	$	108,238		254
College Park Land (2)	Las Vegas, NV	Jan-25		12,746		-		1,428		14,174		-
Francisco Center Land (2)	Las Vegas, NV	Jan-25		11,588		-		593		12,181		-
			$	132,572	$	-	$	2,021	$	134,593		254

(1)

The Company had a mortgage receivable of $15.0 million related to this property, which was repaid by the seller at closing.

(2)

The Company acquired the fee interest in two properties under finance ground lease agreements through the exercise of a call option for an aggregate purchase price of $24.2 million. In addition, the Company had a mortgage receivable of $3.4 million, which was repaid by the seller at closing. This transaction also resulted in a decrease in Other assets of $26.2 million and a decrease in Other liabilities of $24.2 million on the Company’s Condensed Consolidated Balance Sheets related to the finance right-of-use assets and lease liabilities (included in Other). See Footnote 9 of the Notes to Condensed Consolidated Financial Statements for further details.

Included in the Company’s Condensed Consolidated Statements of Income is $5.6 million in total revenues and $0.6 million in net income from the date of acquisition through June 30, 2025 for the operating properties acquired during the period.

The purchase price for these acquisitions was allocated to real estate and related intangible assets and liabilities acquired, as applicable, in accordance with our accounting policies for asset acquisitions. The purchase price allocation for properties acquired during the six months ended June 30, 2025 were as follows (in thousands):


	Allocation as of June 30, 2025			Weighted Average Useful Life (in Years)
Land	$	48,844		n/a
Buildings		68,659			50.0
Building improvements		4,700			45.0
Tenant improvements		5,390			6.2
In-place leases		12,859			4.9
Above-market leases		457			5.4
Below-market leases		(6,316	)		15.8
Net assets acquired	$	134,593

During the six months ended June 30, 2024, there were no operating property acquisitions other than those acquired in connection with the RPT Merger (See Footnote 3 of the Notes to Condensed Consolidated Financial Statements for further details).

Dispositions

The table below summarizes the Company’s disposition activity relating to consolidated operating properties and parcels for the six months ended June 30, 2025 and 2024 (dollars in millions):


	Six Months Ended June 30,
	2025		2024
Aggregate sales price/gross fair value (1) (2)	$	51.9	$	254.1
Gain on sale of properties (3)	$	39.8	$	0.4
Number of operating properties sold		1		11
Number of parcels sold		2		7

(1)

During the six months ended June 30, 2024, the Company provided, as a lender, seller financing totaling $175.4 million related to the sale of nine operating properties.

(2)

Includes $48.7 million of Internal Revenue Code 26 U.S.C. §1031 proceeds held in escrow through sale of real estate interests as of June 30, 2025.

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(3)

Before noncontrolling interests of $0.1 million and taxes of $0.4 million for the six months ended June 30, 2025.

Impairments

During the six months ended June 30, 2025, the Company recognized aggregate impairment charges related to adjustments to property carrying values of $8.2 million, for which the Company’s estimated fair values were primarily based upon signed contracts or letters of intent from third party offers. These adjustments to property carrying values were recognized in connection with the Company’s efforts to market certain properties and management’s assessment as to the likelihood and timing of such potential transactions. See Footnote 15 of the Notes to Condensed Consolidated Financial Statements for fair value disclosure.

5. Investments in and Advances to Real Estate Joint Ventures

The Company has investments in and advances to various real estate joint ventures. These joint ventures are engaged primarily in the operation of shopping centers which are either owned or held under long-term operating leases. The Company and the joint venture partners have joint approval rights for major decisions, including those regarding property operations. As such, the Company holds noncontrolling interests in these joint ventures and accounts for them under the equity method of accounting. The Company manages certain of these joint venture investments and, where applicable, earns acquisition fees, leasing commissions, property management fees, asset management fees and construction management fees. The table below presents unconsolidated joint venture investments for which the Company held an ownership interest at June 30, 2025 and December 31, 2024 (in millions, except number of properties and GLA):


	Noncontrolling Ownership Interest	The Company’s Investment
Joint Venture	As of June 30, 2025	June 30, 2025		December 31, 2024
Prudential Investment Program	15.0%	$	127.5	$	133.3
Kimco Income Opportunity Portfolio (“KIR”)	52.1%		287.0		289.1
R2G Venture LLC (“R2G”)	51.5%		407.5		411.8
Canada Pension Plan Investment Board (“CPP”)	55.0%		203.3		202.8
Other Institutional Joint Ventures	Various		232.6		237.7
Other Joint Venture Programs	Various		209.0		213.0
Total*		$	1,466.9	$	1,487.7

* Represents 115 property interests, 48 other property interests and 24.9 million square feet of GLA, as of June 30, 2025, and 116 property interests, 48 other property interests and 25.1 million square feet of GLA, as of December 31, 2024.

The table below presents the Company’s share of net income for the above investments, which is included in Equity in income of joint ventures, net on the Company’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2025 and 2024 (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
Joint Venture	2025		2024		2025		2024
Prudential Investment Program	$	2.3	$	4.1	$	5.4	$	6.4
KIR		8.2		8.7		18.3		18.4
R2G		2.0		2.5		4.3	4.2
CPP		3.0		2.4		6.2		4.6
Other Institutional Joint Ventures		1.0		1.0		2.1		2.4
Other Joint Venture Programs (1)		7.5		2.8		10.4		6.4
Total	$	24.0	$	21.5	$	46.7	$	42.4

(1)

During the three months ended June 30, 2025, the Company recognized $4.7 million of equity in income related to the restructuring of a joint venture.

During the six months ended June 30, 2025, certain of the Company’s real estate joint ventures disposed of an operating property and a land parcel, in separate transactions, for an aggregate sales price of $39.8 million. These transactions resulted in an aggregate net gain to the Company of $0.8 million for the six months ended June 30, 2025, which is included in Equity in income of joint ventures, net on the Company’s Condensed Consolidated Statements of Income.

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

During the six months ended June 30, 2024, certain of the Company’s real estate joint ventures disposed of an operating property and other property interest, in separate transactions, for an aggregate sales price of $19.2 million. These transactions resulted in an aggregate net gain to the Company of $1.4 million for the six months ended June 30, 2024, which is included in Equity in income of joint ventures, net on the Company’s Condensed Consolidated Statements of Income.

The table below presents debt balances within the Company’s unconsolidated joint venture investments for which the Company held noncontrolling ownership interests at June 30, 2025 and December 31, 2024 (dollars in millions):


	As of June 30, 2025							As of December 31, 2024
Joint Venture	Mortgages and Notes Payable, Net		Weighted Average Interest Rate			Weighted Average Remaining Term (months)*		Mortgages and Notes Payable, Net		Weighted Average Interest Rate			Weighted Average Remaining Term (months)*
Prudential Investment Program	$	266.9		5.38	%		26.3	$	268.5		5.47	%		19.6
KIR		274.1		4.70	%		21.2		273.9		5.82	%		27.2
R2G		69.7		2.90	%		68.7		68.7		2.90	%		74.6
CPP		80.0		4.88	%		13.1		80.6		4.88	%		19.0
Other Institutional Joint Ventures		235.1		5.31	%		17.7		234.7		5.76	%		23.7
Other Joint Venture Programs		542.3		5.00	%		36.3		547.3		4.98	%		40.8
Total	$	1,468.1						$	1,473.7

* Includes extension options

6. Other Investments

The Company has provided capital to owners and developers of real estate properties through its Preferred Equity program, which is included in Other investments on the Company’s Condensed Consolidated Balance Sheets. In addition, the Company has invested capital in certain structured investments that are accounted for on the equity method of accounting. As of June 30, 2025 and December 31, 2024, the Company’s Other investments were $109.8 million and $107.3 million, respectively, of which the Company’s net investments under the Preferred Equity program were $70.0 million and $70.1 million as of June 30, 2025 and December 31, 2024, respectively.

During the six months ended June 30, 2024, the Company converted its $50.2 million preferred equity investment into mezzanine loan financing for a property in San Antonio, TX. In addition, the Company acquired the outstanding senior mortgage loan of $146.2 million encumbering the property.

7. Mortgage and Other Financing Receivables

The Company has various mortgage and other financing receivables, which consist of loans acquired and loans originated by the Company. As of June 30, 2025 and December 31, 2024, the Company had mortgage and other financing receivables, net of allowance for credit losses, of $441.0 million and $445.0 million, respectively. As of June 30, 2025, these mortgage and other receivables have scheduled maturities ranging from less than one month to 9.3 years and accrue interest at rates ranging from 6.35% to 14.00%. During the six months ended June 30, 2025 and 2024, the Company recognized mortgage and other financing income, net of $23.3 million and $7.3 million, respectively, on the Company’s Condensed Consolidated Statements of Income.

During the six months ended June 30, 2025, the Company (i) provided $46.2 million of mortgage and other financing loans, (ii) collected $50.1 million of mortgage and other financing receivables, of which $18.4 million was repaid at closing upon the Company’s acquisition of the corresponding properties, and (iii) extended two mortgage loans with an aggregate principal balance of $159.7 million, utilizing extension options ranging from six months to one year.

During the six months ended June 30, 2024, the Company (i) issued $175.4 million of seller financing related to the sale of nine operating properties, which were acquired in conjunction with the RPT Merger, (ii) provided $175.2 million of mortgage and other financing loans, (iii) provided $50.2 million of mortgage loan financing related to the Company’s previously held preferred equity investment and (iv) collected $60.1 million of mortgage and other financing receivables.

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table presents the changes in the allowance for credit losses for the six months ended June 30, 2025 and 2024, respectively (in thousands):


	Six Months Ended June 30,
	2025			2024
Balance at January 1,	$	6,800		$	1,300
Provision for credit losses		693			4,500
Recoveries collected		(693	)		-
Balance at June 30,	$	6,800		$	5,800

8. Accounts and Notes Receivable

The components of Accounts and notes receivable, net of potentially uncollectible amounts as of June 30, 2025 and December 31, 2024, were as follows (in thousands):


	As of June 30, 2025		As of December 31, 2024
Billed tenant receivables	$	15,108	$	23,011
Unbilled common area maintenance, insurance and tax reimbursements		62,842		67,010
Other receivables		16,341		15,865
Straight-line rent receivables		245,060		234,583
Total accounts and notes receivable, net	$	339,351	$	340,469

9. Leases

Lessor Leases

The Company’s primary source of revenues is derived from lease agreements, which includes rental income and expense reimbursement. The Company’s lease income is comprised of minimum base rent, expense reimbursements, percentage rent, lease termination fee income, ancillary income, amortization of above-market and below-market rent adjustments and straight-line rent adjustments.

The disaggregation of the Company’s lease income, which is included in Revenues from rental properties, net on the Company’s Condensed Consolidated Statements of Income, as either fixed or variable lease income based on the criteria specified in ASC 842, for the three and six months ended June 30, 2025 and 2024, was as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Lease income:
Fixed lease income (1)	$	413,727		$	396,640		$	829,898		$	794,335
Variable lease income (2)		105,829			100,006			218,816			198,287
Above-market and below-market leases amortization, net		7,330			4,444			12,644			10,345
Adjustments for potentially uncollectible lease income or disputed amounts		(5,956	)		(4,869	)		(9,142	)		(7,841	)
Total lease income	$	520,930		$	496,221		$	1,052,216		$	995,126

(1)

Includes minimum base rents, expense reimbursements, ancillary income and straight-line rent adjustments.

(2)

Includes minimum base rents, expense reimbursements, percentage rent, lease termination fee income and ancillary income.

Lessee Leases

The Company currently leases real estate space under non-cancelable operating lease agreements for ground leases and administrative office leases. The Company’s operating leases have remaining lease terms ranging from less than one year to 79.8 years, some of which include options to extend the terms for up to an additional 60 years. During the six months ended June 30, 2025, the Company obtained a $7.4 million operating right-of-use asset in exchange for a new operating lease liability related to an option exercise for a property under an operating ground lease agreement.

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The Company had three properties under finance ground lease agreements that consisted of variable lease payments with a bargain purchase option. During the six months ended June 30, 2025, the Company acquired the fee interest in two properties under finance ground lease agreements through the exercise of its call option for an aggregate purchase price of $24.2 million. This transaction resulted in a decrease in Other assets of $26.2 million and a decrease in Other liabilities of $24.2 million on the Company’s Condensed Consolidated Balance Sheets related to the finance right-of-use assets and lease liabilities. As of June 30, 2025, the Company has a property under a finance ground lease agreement with a right-of-use asset of $6.8 million, which is included in Other assets on the Company’s Condensed Consolidated Balance Sheets.

The weighted-average remaining non-cancelable lease term and weighted-average discount rates for the Company’s operating leases as of June 30, 2025 were as follows:


	Operating Leases
Weighted-average remaining lease term (in years)		29.22
Weighted-average discount rate		6.78	%

The components of the Company’s lease expense, which are included in interest expense, rent expense and general and administrative expense on the Company’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2025 and 2024, were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Lease cost:
Finance lease cost	$	-	$	365	$	43	$	731
Operating lease cost		3,600		3,843		7,041		7,714
Variable lease cost		724		502		1,565		1,161
Total lease cost	$	4,324	$	4,710	$	8,649	$	9,606

10. Other Assets

Marketable Securities

During the six months ended June 30, 2024, the Company sold its remaining 14.2 million shares of common stock of Albertsons Companies Inc. (“ACI”), generating net proceeds of $299.1 million. For tax purposes, the Company recognized a long-term capital gain of $288.7 million and elected to retain the proceeds from the sale of ACI common stock, resulting in estimated federal and state income tax expense of $72.9 million during the six months ended June 30, 2024.

The portion of unrealized (losses)/gains on marketable securities for the three and six months ended June 30, 2025 and 2024 that related to marketable securities still held at the reporting date (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Loss on marketable securities, net	$	(2	)	$	(6	)	$	(11	)	$	(27,692	)
Less: Net (gain)/loss recognized related to marketable securities sold		-			(24	)		(2	)		27,671
Unrealized loss related to marketable securities still held	$	(2	)	$	(30	)	$	(13	)	$	(21	)

11. Notes and Mortgages Payable

Notes Payable

The Company has a $2.0 billion unsecured revolving credit facility (the “Credit Facility”) with a group of banks. The Credit Facility is scheduled to expire in March 2027 with two additional six-month options to extend the maturity date, at the Company’s discretion, to March 2028. The Credit Facility can be increased to $2.75 billion through an accordion feature. The Credit Facility is a green credit facility tied to sustainability metric targets, as described in the agreement. The Credit Facility accrues interest at a rate of Adjusted Term Secured Overnight Financing Rate (“SOFR”), as defined in the terms of the Credit Facility, plus an applicable spread determined by the Company’s credit ratings. The interest rate can be further adjusted upward or downward based on the sustainability metric targets, as

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

defined in the agreement. As of June 30, 2025, the interest rate on the Credit Facility is Adjusted Term SOFR plus 68.5 basis points (5.11% as of June 30, 2025) after reductions for sustainability metrics achieved and an upgraded credit rating profile. Pursuant to the terms of the Credit Facility, the Company is subject to certain covenants. As of June 30, 2025, the Credit Facility had no outstanding balance and no appropriations for letters of credit, and the Company was in compliance with its covenants.

The Company has $310.0 million of unsecured term loans (the “Term Loans”) with a group of banks, which are scheduled to expire between November 2026 to February 2028. The Term Loans accrue interest at the rate of Adjusted Term SOFR plus an applicable spread determined by the Company’s credit rating outlook and sustainability metric targets, as described in the agreement. As of June 30, 2025, the interest rates on the Term Loans is Adjusted Term SOFR plus 81.0 basis points after reductions for an upgraded credit rating profile and sustainability metrics achieved. As of June 30, 2025, the Company had 20 swap rate agreements with various lenders swapping the interest rates on the Term Loans to all-in fixed rates ranging from 4.5793% to 4.7801%. See Footnote 12 of the Notes to Condensed Consolidated Financial Statements for interest rate swap disclosure.

During June 2025, the Company issued $500.0 million in senior unsecured notes, which are scheduled to mature in February 2036 and accrue interest at a rate of 5.30% per annum. These senior unsecured notes are guaranteed by the Parent Company.

The Company has a $550.0 million unsecured term loan credit facility (the “Term Loan Credit Facility”) with a group of banks, which is scheduled to mature in January 2026 with three one-year options to extend the maturity date, at the Company’s discretion, to January 2029. The Term Loan Credit Facility accrues interest at a spread (currently 80.0 basis points after reductions for an upgraded credit rating profile) to the Adjusted Term SOFR Rate (as defined in the credit agreement), that fluctuates in accordance with changes in the Company’s senior debt ratings. As of June 30, 2025, the Company had six swap rate agreements with various lenders swapping the overall interest rate on the $550.0 million Term Loan Credit Facility to an all-in fixed rate of 4.6122%. See Footnote 12 of the Notes to Condensed Consolidated Financial Statements for interest rate swap disclosure.

During the six months ended June 30, 2025 and 2024, the Company fully repaid the following notes payable (dollars in millions):


Type	Date Paid	Amount Repaid		Interest Rate	Maturity Date
Unsecured note	Jun-25	$	240.5	3.85%	Jun-25
Unsecured note	Feb-25	$	500.0	3.30%	Feb-25
Unsecured note	Mar-24	$	400.0	2.70%	Mar-24
Unsecured notes (1)	Jan-24	$	511.5	3.64%-4.74%	Jun-25-Nov-31
Unsecured term loan	Jan-24	$	50.0	4.15%	Nov-26
Unsecured term loan	Jan-24	$	100.0	4.11%	Feb-27
Unsecured term loan	Jan-24	$	50.0	3.43%	Aug-27
Unsecured term loan	Jan-24	$	110.0	3.71%	Feb-28

(1)

The Company incurred a make-whole charge of $0.3 million resulting from this early repayment of these notes, which are included in Merger charges on the Company’s Condensed Consolidated Statements of Income.

The Parent Company guarantees the unsecured debt instruments of Kimco OP, including the Credit Facility. These guarantees by the Parent Company are full, irrevocable, unconditional and absolute joint and several guarantees to the holders of each series of such unsecured debt instruments.

Mortgages Payable

During the six months ended June 30, 2025, the Company repaid $48.9 million of mortgage debt (including fair market value adjustment of $0.1 million) that encumbered three operating properties.

12. Derivatives

Derivative Instruments & Hedging Activities

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company manages economic risks, including interest rate, liquidity, and credit risks, primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company may use derivatives to manage exposures that arise

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

from changes in interest rates and limits the risk by following established risk management policies and procedures, including the use of derivative financial instruments.

The use of derivative financial instruments carries certain risks, including the risk that the counterparties to these contractual arrangements are not able to perform under the agreements. To mitigate these risks, the Company only enters into derivative financial instruments with counterparties with major financial institutions. The Company does not anticipate that any of the counterparties will fail to meet their obligations. The Company's objectives in using interest rate derivatives are to attempt to stabilize interest expense where possible and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

During 2024, the Company entered into 26 interest rate swap agreements with notional amounts aggregating to $860.0 million. The interest rate swap agreements are designated as cash flow hedges and are held by the Company to reduce the impact of changes in interest rates on variable rate debt. As of June 30, 2025, all interest rate swaps were deemed effective and are therefore included within Accumulated other comprehensive (loss)/income (“AOCI”) on the Company’s Condensed Consolidated Balance Sheets. As of June 30, 2025, the Company expects approximately $0.6 million of accumulated comprehensive income on derivative instruments to be reclassified into earnings as a reduction to interest expense during the next 12 months.

The interest rate swaps are measured at fair value using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company classifies the interest rate swaps as Level 2 and the fair value of the interest rate swaps are measured on a recurring basis, see Footnote 15 of the Notes to Condensed Consolidated Financial Statements.

The following table summarizes the terms and fair value of the Company’s derivative financial instruments as of June 30, 2025 (dollars in thousands):


Instrument	Number of Swap Agreements	Associated Debt Instrument	Effective Date	Maturity Date	Notional Amount (1)		Derivative Liabilities (2)
Interest rate swap	1	$200.0 Million Term Loan	Jan-24	Jan-29	$	200,000	$	(1,841	)
Interest rate swaps	3	$50.0 Million Term Loan	Jan-24	Nov-26		50,000		(163	)
Interest rate swaps	3	$100.0 Million Term Loan	Jan-24	Feb-27		100,000		(453	)
Interest rate swaps	7	$50.0 Million Term Loan	Jan-24	Aug-27		50,000		(315	)
Interest rate swaps	7	$110.0 Million Term Loan	Jan-24	Feb-28		110,000		(839	)
Interest rate swaps	4	$300.0 Million Term Loan	Jul-24	Jan-29		300,000		(4,817	)
Interest rate swap	1	$50.0 Million Term Loan	Sept-24	Jan-29		50,000		(42	)
					$	860,000	$	(8,470	)

(1)

These interest rate swap agreements utilize a one-month SOFR CME index.

(2)

Derivative liabilities are included within Other liabilities on the Company’s Condensed Consolidated Balance Sheets.

The table below details the location in the financial statements of the gain/(loss) recognized on interest rate swaps designated as cash flow hedges for the three and six months ended June 30, 2025 and 2024 (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Amount of (loss)/gain recognized in AOCI on interest rate swaps, net	$	(4,148	)	$	3,445		$	(13,135	)	$	11,982
Amount reclassified from AOCI into income as Interest expense	$	1,292		$	2,084		$	2,574		$	4,162
Total amount of Interest expense presented in the Condensed Consolidated Statements of Income in which the effects of cash flow hedges are being recorded	$	(81,204	)	$	(73,341	)	$	(161,581	)	$	(147,906	)

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The Company has interests in certain unconsolidated joint ventures, which have cash flow hedges for interest payments. As of June 30, 2025 and December 31, 2024, the Company’s net share of the fair value of cash flow hedges for interest payments of unconsolidated investees was $0.7 million and $3.8 million, respectively, which is included within AOCI on the Company’s Condensed Consolidated Balance Sheets.

13. Noncontrolling Interests

Noncontrolling interests represent the portion of equity that the Company does not own in those entities it consolidates as a result of having a controlling interest or having determined that the Company was the primary beneficiary of a VIE in accordance with the provisions of the FASB’s Consolidation guidance. The Company accounts and reports for noncontrolling interests in accordance with the Consolidation guidance and the Distinguishing Liabilities from Equity guidance issued by the FASB. The Company identifies its noncontrolling interests separately within the equity section on the Company’s Condensed Consolidated Balance Sheets. The amounts of consolidated net income attributable to the Company and to the noncontrolling interests are presented separately on the Company’s Condensed Consolidated Statements of Income.

The Parent Company issued 953,400 OP Units in Kimco OP during 2024, which were fully vested upon issuance and had a fair market value of $21.0 million. In addition, the Parent Company has granted to certain employees and directors LTIP Units with time-based vesting requirements (“Time-Based LTIP Units”) and LTIP Units with performance-based vesting requirements (“Performance-Based LTIP Units”), assuming the maximum target performance. See Footnote 16 of the Notes to Condensed Consolidated Financial Statements for further disclosure. As of June 30, 2025, the Parent Company owned 99.79% of the outstanding OP Units in Kimco OP. The OP Units are currently redeemable at the option of the holder (subject to restrictions agreed upon at the time of issuance of LTIP Units to certain holders that may restrict such redemption right for a period of time) for the Parent Company’s common stock at a ratio of 1:1 or cash at the option of the Parent Company. As of June 30, 2025, noncontrolling interests relating to the Noncontrolling OP units were $28.1 million and consisted of the following:


Type	Units Outstanding		Return Per Annum
Vested OP Units		1,002,014	Equal to the Company’s common stock dividend
Unvested Time-Based OP Units		442,708	Equal to the Company’s common stock dividend
Unvested Performance-Based OP Units		1,076,361	Dividend equivalent OP Units upon vesting

The Company owns eight shopping center properties located in Long Island, NY, which were acquired during 2022, partially through the issuance of $122.1 million of Preferred Outside Partner Units and $13.6 million of Common Outside Partner Units. The noncontrolling interest is classified as mezzanine equity and included in Redeemable noncontrolling interests on the Company’s Condensed Consolidated Balance Sheets as a result of the put right available to the unit holders, an event that is not solely in the Company’s control. During the six months ended June 30, 2025, 46,461 Preferred Outside Partner Units and 5,162 Common Outside Partner Units were redeemed for cash of $1.0 million, in separate transactions. These transactions resulted in a net decrease in Redeemable noncontrolling interests of $0.7 million and a decrease in the embedded derivative liability in Other liabilities of $0.4 million on the Company’s Condensed Consolidated Balance Sheets. During the six months ended June 30, 2024, 101,369 Preferred Outside Partner Units and 3,441 Common Outside Partner Units were redeemed for cash of $2.1 million, in separate transactions. These transactions resulted in a net decrease in Redeemable noncontrolling interests of $1.3 million and a decrease in the embedded derivative liability in Other liabilities of $0.8 million on the Company’s Condensed Consolidated Balance Sheets. As of June 30, 2025, the Outside Partner Units related to these acquisitions total $53.6 million, including noncontrolling interests of $36.6 million and an embedded derivative liability associated with put and call options of these unitholders of $17.0 million. The Outside Partner Units related annual cash distribution rates and related conversion features consisted of the following as of June 30, 2025:


Type	Par Value Per Unit		Units Outstanding		Return Per Annum
Preferred Outside Partner Units	$	20.00		2,450,246	3.75%
Common Outside Partner Units	$	20.00		261,369	Equal to the Company’s common stock dividend

Included within noncontrolling interests are units that were determined to be contingently redeemable that are classified as Redeemable noncontrolling interests and presented in the mezzanine section between Total liabilities and Stockholders’ equity/Members’ capital on the Company’s Condensed Consolidated Balance Sheets.

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table presents the change in the redemption value of the Redeemable noncontrolling interests for the six months ended June 30, 2025 and 2024 (in thousands):


	Six Months Ended June 30,
	2025			2024
Balance at January 1,	$	47,877		$	72,277
Net income		1,469			2,282
Distributions		(1,471	)		(2,282	)
Redemption/conversion of noncontrolling interests (1)		(676	)		(1,290	)
Adjustment to estimated redemption value		(633	)		(977	)
Balance at June 30,	$	46,566		$	70,010

(1)

Includes Preferred and Common Outside Partner Units, which were partially redeemed during the six months ended June 30, 2025 and 2024.

14. Variable Interest Entities

Consolidated Operating Properties

Kimco OP is considered a VIE, and the Parent Company, which consolidates it, is the primary beneficiary. Substantially all of the Parent Company's assets and liabilities are the assets and liabilities of Kimco OP. In addition, included within the Company’s operating properties at June 30, 2025 and December 31, 2024, are 27 and 29 consolidated entities, respectively, that are VIEs for which the Company is the primary beneficiary. These entities have been established to own and operate real estate property. The Company’s involvement with these entities is through its majority ownership and management of the properties. The entities were deemed VIEs primarily because the unrelated investors do not have substantive kick-out rights to remove the general or managing partner by a vote of a simple majority or less, and they do not have substantive participating rights. The Company determined that it was the primary beneficiary of these VIEs as a result of its controlling financial interest. At June 30, 2025, total assets of these VIEs were $1.7 billion and total liabilities were $159.6 million. At December 31, 2024, total assets of these VIEs were $1.7 billion and total liabilities were $161.6 million.

The majority of the operations of these VIEs are funded with cash flows generated from the properties. The Company has not provided financial support to any of these VIEs that it was not previously contractually required to provide, which consists primarily of funding any capital expenditures, including tenant improvements, which are deemed necessary to continue to operate the entity and any operating cash shortfalls that the entity may experience.

All liabilities of these consolidated VIEs are non-recourse to the Company (“VIE Liabilities”). The assets of the unencumbered VIEs are not restricted for use to settle only the obligations of these VIEs. The remaining VIE assets are encumbered by third-party non-recourse mortgage debt. The assets associated with these encumbered VIEs (“Restricted Assets”) are collateral under the respective mortgages and are therefore restricted and can only be used to settle the corresponding liabilities of the VIE. The table below summarizes the consolidated VIEs and the classification of the Restricted Assets and VIE Liabilities on the Company’s Condensed Consolidated Balance Sheets are as follows (dollars in millions):


	As of June 30, 2025		As of December 31, 2024
Number of unencumbered VIEs		25		27
Number of encumbered VIEs		2		2
Total number of consolidated VIEs		27		29

Restricted Assets:
Real estate, net	$	321.9	$	326.1
Cash, cash equivalents and restricted cash		4.0		4.1
Accounts and notes receivable, net		3.2		3.4
Other assets		1.2		1.3
Total Restricted Assets	$	330.3	$	334.9

VIE Liabilities:
Mortgages payable, net	$	84.2	$	85.1
Accounts payable and accrued expenses		13.4		11.6
Operating lease liabilities		1.8		1.8
Other liabilities		60.2		63.1
Total VIE Liabilities	$	159.6	$	161.6

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Unconsolidated Redevelopment Investment

Included in the Company’s preferred equity investments at June 30, 2025, is an unconsolidated development project which is a VIE for which the Company is not the primary beneficiary. This preferred equity investment was primarily established to develop real estate property for long-term investment and was deemed a VIE primarily based on the fact that the equity investment at risk was not sufficient to permit the entity to finance its activities without additional financial support. The initial equity contributed to this entity was not sufficient to fully finance the real estate construction as development costs are funded by construction loan financing and the partners over the construction period. The Company determined that it was not the primary beneficiary of this VIE based on the fact that the Company has shared control of this entity along with the entity’s partners and therefore does not have a controlling financial interest.

As of June 30, 2025 and December 31, 2024, the Company’s investment in this VIE was $38.7 million and $37.6 million, respectively, which is included in Other investments on the Company’s Condensed Consolidated Balance Sheets. The Company’s maximum exposure to loss as a result of its involvement with this VIE is the Company’s carrying value in this investment. The Company has not provided financial support to this VIE that it was not previously contractually required to provide. All future costs of development will be funded with construction loan financing or capital contributions from the Company and the outside partner in accordance with their respective ownership percentages if necessary.

15. Fair Value Measurements

All financial instruments of the Company are reflected in the accompanying Condensed Consolidated Balance Sheets at amounts which, in management’s estimation, based upon an interpretation of available market information and valuation methodologies, reasonably approximate their fair values except those listed below, for which fair values are disclosed. The valuation method used to estimate fair value for fixed-rate and variable-rate debt and mortgage and other finance receivables is based on discounted cash flow analyses, with assumptions that include credit spreads, market yield curves, trading activity, loan amounts and debt maturities. The fair values for marketable securities are based on published values, securities dealers’ estimated market values or comparable market sales. The fair value for embedded derivative liability is based on using the “with-and-without” method. Such fair value estimates are not necessarily indicative of the amounts that would be realized upon disposition. Interest rate swaps are measured at fair value using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements for interest rate swaps.

As a basis for considering market participant assumptions in fair value measurements, the FASB’s Fair Value Measurements and Disclosures guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

The following table presents the carrying amount and estimated fair value of Company's financial instruments not measured at fair value as of June 30, 2025 and December 31, 2024 (in thousands):


		June 30, 2025				December 31, 2024
	Fair Value Hierarchy	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets:
Mortgage and other financing receivables (1)	Level 3	$	440,991	$	442,005	$	444,966	$	443,234
Liabilities:
Notes payable, net (2)
Senior unsecured notes	Level 2	$	6,858,422	$	6,434,010	$	7,106,835	$	6,538,784
Unsecured term loans	Level 3	$	858,807	$	860,899	$	857,903	$	861,296
Mortgages payable, net (3)	Level 3	$	441,489	$	424,923	$	496,438	$	469,734

(1)

The carrying value includes and the fair value excludes allowance for credit losses of $6.8 million as of both June 30, 2025 and December 31, 2024.

(2)

The carrying value includes and the fair value excludes deferred financing costs of $66.8 million and $65.0 million as of June 30, 2025 and December 31, 2024, respectively.

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(3)

The carrying value includes and the fair value excludes deferred financing costs of $1.0 million and $1.1 million as of June 30, 2025 and December 31, 2024, respectively.

The Company has certain financial instruments that must be measured under the FASB’s Fair Value Measurements and Disclosures guidance, including available for sale securities, interest rate swap derivative assets/liabilities and embedded derivative liabilities. The Company currently does not have non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level of the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

The tables below present the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024, aggregated by the level of the fair value hierarchy within which those measurements fall (in thousands):


	Balance at June 30, 2025		Level 1		Level 2		Level 3
Assets:
Marketable equity securities	$	2,781	$	2,781	$	-	$	-
Liabilities:
Interest rate swaps derivative liabilities	$	8,470	$	-	$	8,470	$	-
Embedded derivative liability	$	17,035	$	-	$	-	$	17,035


	Balance at December 31, 2024		Level 1		Level 2		Level 3
Assets:
Marketable equity securities	$	2,290	$	2,290	$	-	$	-
Interest rate swaps derivative assets	$	7,239	$	-	$	7,239	$	-
Liabilities:
Embedded derivative liability	$	19,864	$	-	$	-	$	19,864

The significant unobservable input (Level 3 inputs) used in measuring the Company’s embedded derivative liability, which is categorized with Level 3 of the fair value hierarchy, is the discount rate of 5.60% and 6.40% as of June 30, 2025 and December 31, 2024, respectively.

The table below summarizes the change in the fair value of the embedded derivative liability measured using Level 3 inputs for the six months ended June 30, 2025 and 2024 (in thousands):


		Six Months Ended June 30,

Form: 10-Q

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