Kimco Realty's Business Segments

The registrant primarily owns and operates open-air shopping centers, including mixed-use assets and other retail properties. Its business performance is influenced by economic conditions affecting the retail real estate market. The company faces risks related to changes in the economic climate, demand for retail space, growth of e-commerce, tenant financial health, competition from other properties, and market rental rates. Challenges include tenant bankruptcies, lease defaults, and the need for property repairs and renovations. Competition from other real estate companies and retail formats such as outlet malls and online marketing affects tenant attraction and retention. Financial results depend significantly on tenants' ability to pay rent, with risks increased by factors such as inflation, labor shortages, tariffs, supply chain disruptions, and consumer spending trends. The company seeks to diversify its tenant base with businesses less vulnerable to e-commerce, including groceries and essential retailers, though success is uncertain. Operating costs, including maintenance, insurance, and taxes, are relatively fixed and may not decrease with reduced income, potentially impacting financial condition and cash flows. Additional risks arise from geopolitical challenges, regulatory changes, and property obsolescence, which could adversely affect operations and financial results.

The Company consolidates its operating segments into a single reportable segment due to similarities in the nature and economics of its properties, tenants, and operations, which are managed with consistent business strategies. The Chief Executive Officer, identified as the Company's chief operating decision maker (CODM), evaluates the portfolio and assesses the ongoing operations and performance of consolidated properties as well as the Company's share of unconsolidated joint venture operations. Net Operating Income (NOI), defined as lease revenues and other property-related income minus property operating expenses, is the primary performance measure used by the CODM to assess operating performance. NOI reflects factors such as property acquisitions and dispositions, occupancy levels, rental rate changes, and recoverability of operating expenses. The CODM does not use asset information for performance assessment. The report provides detailed financial data on revenues, operating expenses, NOI from unconsolidated real estate joint ventures, and a reconciliation of NOI to net income for the years ended December 31, 2025, 2024, and 2023.