Quick Read
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Brixmor posted record occupancy of 95.6% and raised its dividend 7.3%, while paying out just 56% of FFO, which was the lowest ratio in the group.
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Federal Realty has raised its dividend for 59 straight years, which is the longest streak in the REIT sector, while yielding about 4.3% at current prices.
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Kimco raised its quarterly dividend 12% and hit all-time high portfolio occupancy of 96.4%, but cut its payout to $0.10 per share as recently as 2020.
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Grocery-anchored shopping centers have become one of real estate's most reliable income stories. Very little new space is being built, and retailers are competing for what exists. Brixmor Property Group( NYSE:BRX ) is the latest proof: it reported record total leased occupancy of 95.6%, up from 94.1%, and raised its quarterly dividend 7.3% to $0.33 per share. All four REITs below are equity REITs. They own the centers and collect rent from tenants. None of them is a mortgage REIT, so none carries the interest-rate and credit risk that comes with holding property loans. Dividend safety for each is judged on funds from operations (FFO), the cash flow the properties actually produce.
Brixmor Property Group: Record Occupancy and a 7.3% Raise
What it owns:open-air, grocery-anchored shopping centers. These are neighborhood strip centers built around a supermarket, with off-price apparel, restaurants, and service tenants filling the smaller spaces.
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Demand backdrop:Third-quarter Nareit FFO came in at $0.60 per diluted share, up from $0.56 a year earlier, and same-property NOI rose 6.6%. Small shop leased occupancy hit a record 92.8%, while anchors stood at 97.0%. Comparable rent spreads were 25.3%, made up of 42.6% on new leases and 19.4% on renewals. Retention climbed to 88%. The company's chief executive, Brian T. Finnegan, said on the call, "Retailer demand for space in high-quality grocery-anchored centers remains robust. Traffic to our centers continues to grow, and new supply remains limited."
Current yield:At $28.50, the new $1.32 annualized dividend works out to a yield of about 4.63%. The raised payment is due January 15, 2027, to holders of record on January 5, 2027. The stock is up 13.52% year-to-date.
Payout coverage (Nareit FFO):REITs use FFO for this test because GAAP earnings subtract depreciation, an accounting charge that assumes buildings lose value every year. That charge doesn't remove cash from the business, and well-located real estate often appreciates. So a REIT can look like it pays out more than 100% of its earnings while its properties easily cover the dividend. FFO adds depreciation back and shows the cash the centers generate. Brixmor raised its 2026 Nareit FFO guidance to $2.36 to $2.38 per diluted share. The annualized dividend equals roughly 55.7% of the midpoint, the lowest payout in this group.
Bull case:A large share of the growth is already contracted. Brixmor has 363 leases signed but not yet paying rent, worth $68.9 million in annual base rent. Anchor leases expiring in 2027 without options average about $11 per square foot, while new and renewal deals are signing in the mid-to-upper teens. Anchor occupancy is still 70 basis points below its prior peak.
Risk:The $2.34 billion Slate Grocery REIT deal, expected to close in the first quarter of 2027, brings integration and financing risk. That comes alongside rising interest expense and 2027 lease expirations covering 10.5% of leased GLA. Net debt to adjusted EBITDA was 5.2 times at quarter end.
Regency Centers: A-Rated Balance Sheet in Top Markets
What it owns: Regency Centers( NASDAQ:REG ) owns grocery-anchored centers concentrated in the largest metro areas. The top 50 markets generate 85.2% of its annual base rent.
Demand backdrop:In the second quarter, same-property percent leased reached 96.9%, up 40 bps year over year. Regency signed 2.1 million square feet of comparable leases at blended cash rent spreads of 10.4% (15.8% new, 9.4% renewal). Same-property NOI grew 3.8%. Chief Operating Officer Alan Todd Roth said: "Quality space is in short supply both within our portfolio and throughout our markets."
Current yield:The $3.02 annualized dividend yields about 4.10% at $73.68. The quarterly rate has held at $0.755 for four payments, after a raise from $0.705.
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Payout coverage (Nareit FFO):Regency's second-quarter guidance, possibly since updated, put 2026 Nareit FFO at $4.84 to $4.88 per diluted share. The dividend equals about 62.1% of the midpoint. Management called the balance sheet A-rated, with leverage inside a 5 to 5.5x target.
Bull case:Regency has 308 signed-not-commenced leases worth $41.2 million in annual base rent and an in-process development pipeline of $680 million at roughly 9% blended yields. More than 80% of new shop leases carry annual escalators of 3% or more.
Risk:Geographic concentration. California accounts for 24.6% of base rent and Florida 18.4%, so a downturn or insurance shock in either state hits harder here.
Kimco Realty: Highest Yield in the Group, With a Footnote
What it owns: Kimco Realty( NYSE:KIM ) is the largest of the four by market value, at about $15.82 billion. It owns open-air, grocery-anchored shopping centers.
Demand backdrop:Portfolio occupancy matched an all-time high of 96.4% in the second quarter. Small shops hit a record 92.9%, and anchors reached 97.8%. Kimco signed 461 leases at blended cash spreads of 13.1%, with new leases at 40.4%. FFO was $0.46 per diluted share, up from $0.44. CEO Conor Flynn said, "Demand [is] outpacing available supply as new shopping center development remains limited across our markets."
Current yield:Kimco raised its quarterly dividend 12% to $0.28, a quarter ahead of its usual schedule. The $1.12 annualized payout yields about 4.75% at $23.56, the highest of the four. The stock is up 20.2% year-to-date.
Payout coverage (FFO):Full-year FFO guidance of $1.83 to $1.84 per diluted share puts the dividend at about 61.0% of the midpoint. CFO Glenn Cohen said the payout equals 100% of taxable income from the business's operations. That means future raises will track earnings growth closely.
Bull case:A 400 bps gap between leased and economic occupancy represents about $75 million in signed rent that hasn't started yet. Credit loss guidance improved to 55 to 75 bps.
Risk:History. Kimco cut its dividend to $0.10 per share in September 2020, and the current $0.28 matches only what it paid in 2018 and 2019. Tenant bankruptcies also remain a live issue: the Painted Tree lease rejections took 16 basis points off occupancy.
Federal Realty: 59 Straight Years of Dividend Raises
What it owns: Federal Realty Investment Trust( NYSE:FRT ) owns upscale, mixed-use retail properties in major coastal markets. Its portfolio includes Santana Row, Pike & Rose, Assembly Row, and CocoWalk.
Demand backdrop:Second-quarter Core FFO rose 6.8% to $1.88 per share. Federal signed a record 124 comparable retail leases covering 819,273 square feet at 15% cash rent spreads (28% straight-line). The portfolio was 96.1% leased, up 70 bps. Management said no new supply has been added over the last 15 or 20 years in its markets.
Current yield:The $4.64 annualized dividend yields about 4.26% at $108.89. The latest raise to $1.16 marked its 59th consecutive year of annual increases, the longest streak in the REIT sector.
Payout coverage (Core FFO):Raised 2026 Core FFO guidance of $7.48 to $7.56 per diluted share has a midpoint of $7.52. The dividend equals roughly 61.7% of that. Management expects more than $100 million of free cash flow this year after dividends and maintenance capital.
Bull case:Residential projects built on excess land at its centers are expected to add $27 million of new operating income once stabilized. Executed leases should add $31 million in revenue over the next 18 months.
Risk:Interest expense rose to $50.0 million from $44.6 million, and a heavy redevelopment program adds exposure to cost overruns. Price growth has also been slow. Over ten years, the stock is up just 12.04%, so the dividend has supplied most of the return.
Brixmor Leads the Income Case
Brixmor has the strongest income profile in this group. It pays out the smallest share of FFO at roughly 55.7%, delivered strong same-property NOI growth, and has $68.9 million of signed rent still to start. That gives it more room for raises than its peers. Federal Realty stands out for its unbroken record of increases. The Slate closing is the key item to watch at Brixmor in early 2027.
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