Mexicans are upbeat following the defeat of Cameroon in their
first match in the FIFA World Cup 2014 and are gearing up to face
Brazil in their next. However, retail real estate investment trust
Kimco Realty Corporation
) - is gradually leaving the country by selling its retail assets.
After disposing a 9-property Mexican portfolio in the first
quarter, the company has now divested a 4-property portfolio for a
gross sales price of 1.1 billion Mexican pesos (US $82.1
million). Kimco reaped around 688.1 million Mexican pesos (US
$53.3 million) as pro-rata proceeds from this 4-property portfolio
As a matter of fact, in a zest to focus exclusively on its U.S. and
Canadian shopping center portfolios, Kimco is simplifying its
operations and pruning its Latin American retail assets.
This Mexican portfolio disposition comes as part of that assets
sale and the company is redeploying the proceeds to acquire high
quality U.S. shopping center assets in its key markets, with
demographics and household income levels higher than the national
average. Currently, the company is under negotiations for the
disposition of the rest of the retail Latin American assets.
Spanning 1.2 million square feet in total, these 4 Mexican assets
are positioned in the cities of Rosarito, Tijuana, Los Mochis, and
Mexicali with anchor tenants including
Wal-Mart Stores Inc.
The Home Depot, Inc.
) and Cinepolis.
Going forward, we believe that solid demand for its properties, its
portfolio restructuring activity, along with easy access to capital
promises considerable upside potential to Kimco.
Kimco currently has a Zacks Rank #3 (Hold). Moreover, investors
interested in the retail REIT industry may consider another stock -
Retail Properties of America, Inc.
) - that carries a Zacks Rank #2 (Buy).
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