Retail real estate investment trust (REIT) -
Kimco Realty Corp.
) is focused on revamping its portfolio. The company recently
vended a property in Manhattan's Flatiron District for $38.5
million to Skyway Development Group, LLC. On the other hand,
Kimco is raising stake in a number of its joint ventures.
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The property - 30 West 21st Street - that has been sold to Skyway
is basically a 12-story commercial building plus an adjacent lot
that could be developed in the future. It has around 60,000
square feet of existing office as well as retail space, and 66
feet of combined frontage.
This portfolio overhaul is in sync with Kimco's current focus on
improving its core business line, shedding non-core assets and
reshuffling its joint venture investments to achieve overall
Kimco has recently raised its stake in one of its joint ventures
(JV). The move has facilitated the company to gain ownership
interest in 39 shopping centers, occupancy levels at which
currently stand at 96%. Earlier in the month, the company
invested $67 million to raise its stake in two ventures that
helped it gain ownership in 70 shopping centers.
The tenant list of these shopping centers boasts of investment
grade retailers such as
Bed Bath & Beyond Inc.
The Home Depot, Inc.
The TJX Companies, Inc.
Alongside, as part of trimming its non-retail assets and
investments as well as non-strategic retail assets, Kimco has
been actively divesting its interests in the Mexican non-core
properties to improve its core business operations and redeploy
the capital to solidify its North American portfolio.
Hence, backed by its solid operating platform, we expect this
Zacks Rank #3 (Hold) stock to ride high on the growth trajectory,
going forward. Yet, the competitive market and short-term
headwinds for occupancy in the midst of an unsettled economic
environment would somewhat impede the growth tempo.