Kimco Realty Corporation (NYSE: KIM) secured a Moody’s A3 rating with a stable outlook on December 3, 2025, moving the REIT into the small group of U.S. properties that hold A‑level ratings from all three major agencies. The upgrade follows a prior Baa1 rating and reflects the company’s robust portfolio and disciplined capital structure.
The rating decision cites Kimco’s high‑quality, grocery‑anchored shopping center portfolio, which delivered 3 % same‑property NOI growth for the first nine months of 2025 and 1.9 % year‑over‑year in Q3. The REIT’s 564 U.S. centers and mixed‑use assets cover 100 million square feet of gross leasable space, and 92 % of those properties are unencumbered as of September 30, 2025. Moody’s expects net debt/EBITDA to stay below 6.0× and EBITDA/interest expense above 4.0× through at least 2027, underscoring the company’s low‑risk profile.
Liquidity is a key pillar of the upgrade. Kimco reported $159 million in unrestricted cash and nearly full availability on its $2.0 billion revolving credit facility as of September 30, 2025. The combination of ample cash, strong cash flow generation, and limited debt exposure gives the REIT flexibility to refinance, fund acquisitions, or return capital to shareholders without compromising its credit standing.
The A3 rating signals lower borrowing costs and greater confidence from investors, which can support future capital‑allocation initiatives and dividend sustainability. Kimco’s CFO, Glenn Cohen, noted that the new rating “strongly affirms our operational excellence, robust access to financial markets, and disciplined capital allocation, all of which have enabled us to deliver consistent earnings growth.” The upgrade also aligns with the company’s recent dividend increase of 4 % in Q3 2025, reinforcing its commitment to shareholder returns.
Market reaction to the upgrade was modest but positive. On the day of the announcement, Kimco’s stock closed slightly higher, reflecting investor approval of the improved credit outlook. Analysts highlighted the upgrade as evidence of the REIT’s resilient business model, driven by essential grocery tenants and first‑ring suburban locations that provide stable foot traffic even amid broader retail headwinds.
Overall, the Moody’s A3 upgrade positions Kimco among the most creditworthy U.S. REITs, enhances its financial flexibility, and supports its long‑term growth strategy in a competitive retail landscape.
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