KIMCO REALTY CORP Leases Disclosure
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 Revenue from rental properties, net on the Company’s Consolidated Statements of Income, as either fixed or variable lease income based on the criteria specified in ASC 842, for the years ended December 31, 2025, 2024 and 2023, was as follows (in thousands):
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Lease income: |
|
|
|
|
|
|
|
|
|
|||
Fixed lease income (1) |
|
$ |
1,672,317 |
|
|
$ |
1,615,352 |
|
|
$ |
1,409,609 |
|
Variable lease income (2) |
|
|
432,044 |
|
|
|
399,627 |
|
|
|
354,093 |
|
Above-market and below-market leases amortization, net |
|
|
30,744 |
|
|
|
25,205 |
|
|
|
17,253 |
|
Adjustments for potentially uncollectible lease income or disputed amounts |
|
|
(13,705 |
) |
|
|
(21,119 |
) |
|
|
(13,898 |
) |
Total lease income |
|
$ |
2,121,400 |
|
|
$ |
2,019,065 |
|
|
$ |
1,767,057 |
|
Base rental revenues and fixed-rate expense reimbursements from rental properties are recognized on a straight-line basis over the terms of the related leases. The difference between the amount of rental income contracted through leases and rental income recognized on a straight-line basis for the years ended December 31, 2025, 2024 and 2023 was $29.3 million, $23.2 million and $22.5 million, respectively.
The Company is primarily engaged in the operation of shopping centers that are either owned or held under long-term leases that expire at various dates through 2089. The Company, in turn, leases premises in these centers to tenants pursuant to lease agreements which provide for terms ranging generally from to 25 years and for annual minimum rentals plus incremental rents based on operating expense levels and tenants’ sales volumes. Annual minimum rentals plus incremental rents based on operating expense
levels and percentage rents comprised 98% of total revenues from rental properties for each of the three years ended December 31, 2025, 2024 and 2023.
The minimum revenues expected to be received by the Company from rental properties under the terms of all non-cancelable tenant leases for future years, assuming no new or renegotiated leases are executed for such premises and excluding variable lease payments, are as follows (in millions):
|
|
2026 |
|
|
2027 |
|
|
2028 |
|
|
2029 |
|
|
2030 |
|
|
Thereafter |
|
||||||
Minimum revenues |
|
$ |
1,604.5 |
|
|
$ |
1,473.0 |
|
|
$ |
1,277.7 |
|
|
$ |
1,055.6 |
|
|
$ |
853.7 |
|
|
$ |
4,029.1 |
|
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 79.3 years, some of which include options to extend the terms for up to an additional 60 years. During 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.
In connection with the RPT Merger, the Company 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. In addition, the Company obtained a finance intangible right-of-use asset of $6.8 million (which is included in Other assets on the Company’s Consolidated Balance Sheets).
The Company had three properties under finance ground lease agreements that consisted of variable lease payments with a bargain purchase option. During 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 Consolidated Balance Sheets related to the finance right-of-use assets and lease liabilities. As of December 31, 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 on the Company’s Consolidated Balance Sheets.
The weighted-average remaining non-cancelable lease term and weighted-average discount rates for the Company’s operating and finance leases as of December 31, 2025 were as follows:
|
|
Operating Leases |
|
|
|
Weighted-average remaining lease term (in years) |
|
|
29.1 |
|
|
Weighted-average discount rate |
|
|
6.77 |
% |
|
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 Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023, were as follows (in thousands):
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Lease cost: |
|
|
|
|
|
|
|
|
|
|||
Finance lease cost |
|
$ |
43 |
|
|
$ |
1,459 |
|
|
$ |
1,261 |
|
Operating lease cost |
|
|
14,246 |
|
|
|
15,107 |
|
|
|
14,736 |
|
Variable lease cost |
|
|
2,895 |
|
|
|
2,300 |
|
|
|
2,241 |
|
Total lease cost |
|
$ |
17,184 |
|
|
$ |
18,866 |
|
|
$ |
18,238 |
|
The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities (in thousands):
Year Ending December 31, |
|
|||
2026 |
|
$ |
12,048 |
|
2027 |
|
|
12,189 |
|
2028 |
|
|
12,212 |
|
2029 |
|
|
11,416 |
|
2030 |
|
|
10,160 |
|
Thereafter |
|
|
251,450 |
|
Total minimum lease payments |
|
$ |
309,475 |
|
|
|
|
|
|
Less imputed interest |
|
|
(189,397 |
) |
Total operating lease liabilities |
|
$ |
120,078 |
|
Want the next KIMCO REALTY CORP leases disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment KIMCO REALTY CORP's next filing hits EDGAR. No credit card, your email never gets sold.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 25, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.