Kimco Realty Corp.
) sold 9 assets of its Mexican shopping center portfolio to a
local real estate operator for 3.35 billion Mexican pesos ($274
million), which include 573 million Mexican pesos ($47 million)
of mortgage debt. The move comes as a part of Kimco's effort to
dispose its non-core assets.
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This retail real estate investment trust (REIT) had a 47.6%
interest in the sold Mexican assets, which spanned 2.6 million
square feet and were 91% leased. Notably, Kimco's share of sale
proceeds was approximately $93 million and the company generated
a profit of about $26 million. Significantly, with the
aforementioned transaction, Kimco's Mexican shopping center
portfolio now constitutes 47 assets, covering 9.4 million square
Kimco is well on track on improving its core business operations
and is focused on owning and operating neighborhood and community
shopping centers through investments in North America. As part of
this effort, the company is vending non-strategic assets and
aggressively using this capital for developing its core business.
In relation to this, last week, Kimco disclosed the buyout of a
Washington-based shopping center - Marketplace at Factoria - for
a gross value of $130.75 million. Additionally, in first-quarter
2013, the company underwent a strong portfolio restructuring
activity.The notable ones include: acquisition of 5 grocery
banners' operations from
); and the sale of 1 non-retail and 2 shopping centers. Moreover,
at the end of the first quarter, Kimco had about 14 retail
properties in the contract negotiation stage for approximately
Kimco currently carries a Zacks Rank #3 (Hold). Better-performing
retail REITs include
Equity One Inc.
The Macerich Company
), both of which carry a Zacks Rank #2 (Buy).