Well covered — grocery-anchored retail, leasing spreads strong. A 4.74% yield on a $0.28 quarterly dividend, raised from $0.26 and paid in September 2026, is covered by FFO: the $1.12 annual dividend is about 61% of the $1.835 midpoint of 2026 FFO guidance. Q2 FFO was $0.46 per share, up 4.5% year over year, pro-rata leased occupancy was 96.4%, and consolidated net debt to EBITDA was 5.2×.
Key risk: Small-shop sensitivity — grocery anchors hold up, but smaller tenants feel consumer spending first, and credit loss, low at 57 basis points in Q2, is the number that would move first.
Changes if: FFO payout pushes well past ~61%, or pro-rata leased occupancy falls materially below 96%. The cushion, not the headline yield, is the tripwire.
- ✓FFO coverage check: FFO guidance of $1.83–$1.84 per share for 2026 covers the $1.12 annual dividend — about 61% paid out at the midpoint. Kimco headlines FFO rather than AFFO; the payout basis is stated here.
- ✓Yield check: 4.74% indicated — $0.28/qtr × 4 at the $23.62 close on Oct. 23, 2026. Earned rent income, not a special or return of capital.
- ✓Balance-sheet check: Consolidated net debt to EBITDA of 5.2× at June 30, 2026 (5.5× on a look-through basis including pro-rata joint-venture debt and preferred stock), with pro-rata leased occupancy of 96.4%.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.