Kimco Realty Corp.
) announced the addition of the Santee Trolley Square in suburban
San Diego to its portfolio. Particularly, the company purchased a
50% ownership interest of its institutional partner in Santee
Trolley Square for $98 million.
A Premium Property
Spanning 311,000-square-foot, this San Diego property is 98%
occupied and is burdened with a $48.5 million mortgage. It houses
several well known national retailers like
The TJX Companies Inc.
Bed Bath & Beyond
Its tenant list also includes industry leading restaurateurs such
Darden Restaurants Inc.
Brinker International Inc.
Chipotle Mexican Grill Inc.
Moreover, Santee Trolley Square offers locational advantage to
Kimco as it is well connected to major roadways and Trolley
lines. This premium shopping center not only enjoys a strong
footfall of 103,000 residents who reside nearby (within three
miles), but draws crowd from outside its community.
Along with this acquisition, Kimco's tally of properties owned in
the San Diego-Carlsbad-San Marcos metropolitan statistical area
(MSA) comes to 21.
Given the current uncertainty in the capital markets, Kimco has
modified its business strategy to focus on core retail
competencies. The company intends to concentrate its future
investments on the neighborhood and community shopping center
segment, primarily focusing on the North American market.
During the fourth quarter of 2012, Kimco acquired nine new
properties with City Heights Retail Village, Savi Ranch and Metro
New York Grocery portfolio being the noteworthy ones. We believe
such opportunistic acquisitions provide solid upside potential
for the top-line expansion of the company and hence we remain
Kimco currently retains a Zacks Rank #4 (Sell). However,
considering its fundamentals and the current operating
environment, we maintain our long-term Neutral recommendation on
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