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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Kimco Realty Corporation · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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The Company’s primary market risk exposure is interest rate risk. The Company periodically evaluates its exposure to short-term interest rates and will, from time-to-time, enter into interest rate protection agreements, which mitigate, but do not eliminate, the effect of changes in interest rates on its floating-rate debt. As of June 30, 2026, the Company had 26 interest rate swaps 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. The hedged debt is reflected as fixed rate unsecured debt in the table below. The Company has not entered, and does not plan to enter, into any derivative financial instruments for trading or speculative purposes.
The following table presents the carrying value of the Company’s aggregate fixed rate and variable rate debt obligations outstanding, including fair market value adjustments and unamortized deferred financing costs, as of June 30, 2026, with corresponding weighted-average interest rates sorted by maturity date. In addition, the following table presents the fair value of the Company’s debt obligations outstanding, excluding fair market value adjustments and unamortized deferred financing costs. The table does not include extension options where available (amounts in millions).
2026 2027 2028 2029 2030 Thereafter Total Fair Value
Secured Debt
Fixed Rate $ - $ 32.3 $ 122.7 $ 248.2 $ - $ 11.2 $ 414.4 $ 398.8
Average Interest Rate - 4.01 % 4.44 % 4.51 % - 3.33 % 4.41 %
Variable Rate $ - $ - $ - $ 17.2 $ - $ - $ 17.2 $ 17.0
Average Interest Rate - - - 4.81 % - - 4.81 %
Unsecured Debt
Fixed Rate $ 823.4 $ 1,134.2 $ 518.6 $ - $ 497.3 $ 5,334.5 $ 8,308.0 $ 7,968.2
Average Interest Rate 3.15 % 4.30 % 2.51 % - 2.70 % 4.23 % 3.93 %
Based on the Company’s variable-rate debt balances, interest expense would have increased by $0.1 million for the six months ended June 30, 2026 if short-term interest rates were 1.0% higher.
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