A retail REIT plans to sell up to half a billion dollars of its lower-valued assets following one of its best years for occupancy and leasing activity.

New York-based Kimco Realty executives said they have identified between $300M and $500M of assets to sell, the REIT announced during its Q4 earnings call Thursday. Chief Investment Officer Ross Cooper said the firm will look to sell "lower-growth multitenant centers and non-income-producing land and entitlements."

Cooper said the company expects to complete more dispositions in 2026 than in 2025. It sold off roughly $100M in assets last year. A sizable amount of this year's sales will likely be ground leases, he said.

"We've seen a really increased demand from the private investors for this in addition to the retailers themselves that have gotten more active and aggressive in buying back some of their own real estate," Cooper said.

The company's overall portfolio occupancy stood at 96.4% at the end of 2025, which Kimco CEO Conor Flynn said matched the company's all-time high. The REIT completed 1.2M SF of leases in the fourth quarter, including 30 anchor leases.

The company owned interests in 565 U.S. shopping centers and mixed-use assets at the end of 2025. Its five largest tenants were TJX Cos., Ross Stores, Burlington Stores, Whole Foods and Albertsons.

The REIT’s occupancy levels and tenants’ strong sales have benefited from consumers gravitating toward cheaper groceries and retailer alternatives, Reuters reported. Kimco projects same-property net operating income to grow by 2.5% to 3.5% in 2026.

Despite the strong year, Kimco officials said they face a “known headwind” in $800M in debt coming due in 2026 that was set at an average interest rate of 2.65%. In current conditions, the REIT may count itself fortunate to finance at double that rate.