Kimco in Revamp Mode - Analyst Blog

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Retail real estate investment trust (REIT) - Kimco Realty Corp. ( KIM ) 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.

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 efficiency.


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. ( BBBY ), The Home Depot, Inc. ( HD ), and The TJX Companies, Inc. ( TJX ).

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.



BED BATH&BEYOND (BBBY): Free Stock Analysis Report

HOME DEPOT (HD): Free Stock Analysis Report

KIMCO REALTY CO (KIM): Free Stock Analysis Report

TJX COS INC NEW (TJX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Business , Stocks

Referenced Stocks: BBBY , HD , KIM , TJX

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