Grade: F — Major Red Flags (REIT-Structural)
Framework: Schilit *Financial Shenanigans* + Beneish M-Score + forensic accounting principles
Data: SEC EDGAR 10-K (Filed 2026-02-20, FY ended December 31, 2025) + Yahoo Finance
Auditor: PricewaterhouseCoopers LLP — Unqualified opinion
CIK: 0000879101
One-line verdict: Kimco's F grade stems from cash of $227M covering 3% of $8.3B debt. The open-air grocery-anchored retail REIT otherwise operates cleanly: zero goodwill, 69.1% gross margin, CFFO/NI of 1.92, FCF of $1.1B, and M-Score of -2.50 (clean). Revenue grew 5.1% to $2.1B. Net income available to common shareholders was $554.4M, "as compared to $375.7 million" in FY2024 — a 47.6% increase per the filing. Debt/EBITDA of 5.7x is a watch item. Kimco describes itself as "well positioned to achieve sustainable growth, with its strong core portfolio and its recent acquisitions allowing the Company to achieve higher occupancy."
| Metric | Result |
|---|---|
| Red Flags | **1** (Cash-to-debt 3%) |
| Watch Items | **1** (Debt/EBITDA 5.7x) |
| Checks Completed | **16/18** (2 N/A) |
| Beneish M-Score | **-2.50** (clean) |
| Auditor | PricewaterhouseCoopers LLP — Unqualified opinion |
Grocery-Anchored Retail
Revenue of $2,140M grew 5.1%. The filing highlights FFO as the key performance metric: "Funds From Operations ('FFO'), a supplemental non-GAAP financial measure of REIT performance, available to the Company's common shareholders" grew alongside the net income improvement.
The $554.4M net income in FY2025 vs. $375.7M in FY2024 (+47.6%) is a significant swing, likely driven by reduced impairments and improved occupancy in the portfolio. Kimco's strategy focuses on "grocery-anchored shopping centers and mixed-use assets in high-growth, first-ring suburb locations."
CFFO of $1,123M and FCF of $1,123M (same, meaning no significant CapEx differential) demonstrate clean cash conversion. SG&A/Gross Profit of 9.0% is excellent.
The 18-Point Screening
| # | Check | Result | Detail |
|---|---|---|---|
| A1-A2 | Revenue Quality | ✅ | DSO 48 days, AR tracking revenue |
| A3 | Revenue vs CFFO | ✅ | Revenue +5.1%, CFFO +11.4% |
| B1-B4 | Expense Quality | ✅ | 69.1% gross margin, 9.0% SG&A |
| C1-C3 | Cash Flow | ✅ | CFFO/NI 1.92, accruals -2.7% |
| C4 | Cash vs Debt | ❌ | Cash $227M = 3% of $8.3B |
| D1 | Goodwill | ✅ | Zero goodwill |
| D2 | Leverage | ⚠️ | Debt/EBITDA = 5.7x |
| D3-D4 | Balance Sheet | ✅ | Other assets declining |
| E1-E2, F1 | Risk & M-Score | ✅ | Clean |
Summary
Grade: F is REIT-structural. Kimco is a well-operated grocery-anchored retail REIT with 47.6% net income growth, zero goodwill, and clean cash metrics. The 3% cash-to-debt ratio is standard for a REIT with revolver access. Debt/EBITDA of 5.7x is the only watch item.
**Disclaimer**: This report is based on Kimco Realty's FY2025 10-K filed with SEC EDGAR on February 20, 2026. This is NOT investment advice.
Data: SEC EDGAR 10-K + Yahoo Finance
Auditor: PricewaterhouseCoopers LLP (Unqualified opinion)
Fiscal year ended: December 31, 2025