Kimco Realty Corp.
(
KIM
), a real estate investment trust (REIT), has recently announced
the acquisition of 50% ownership stake in Orleans Gardens Shopping
Centre in Ottawa, Ontario, for $16.5 million. With the purchase of
this grocery-anchored shopping center, Kimco presently has six
retail centers in Ottawa, bringing its tally of Canadian shopping
center portfolio to 64 properties.
The acquisition is part of a new pari passu joint venture with
the existing owner of the property - the North American Property
Group. Pari passu refers to an "equal footing" scenario and
describes situations where two or more assets, securities,
creditors or obligations are equally managed without any display of
preference.
Spanning 110,000 square feet of retail space, Orleans Gardens
Shopping Centre is anchored by two Canadian retailers: a
49,000-square-foot Loblaws Supermarket, and an 11,000-square-foot
Rexall Pharma Plus drugstore.
The acquired property is strategically located in an established
residential neighborhood in Orleans, which is one of the
fast-growing eastern suburbs of Ottawa with an expanding
residential and commercial population. The property boasts of
approximately 110,000 residents within a 3-mile radius with an
average household income of $111,000.
With a geographically diverse portfolio concentrated mostly in
high-income, high-growth areas, Kimco is the largest publicly
traded owner and operator of neighborhood and community shopping
centers in the U.S.
Kimco has established a track record of conservative capital
management and maintains strong investment-grade debt ratings.
Furthermore, the company has continuous access to capital through
debt or equity financing, that provide the necessary resources to
expand and develop its business.
We maintain our long-term Neutral recommendation on Kimco, which
currently has a Zacks #3 Rank that translates into a short-term
Hold rating. We also have a long-term Neutral recommendation and a
Zacks #2 Rank (short-term Buy) for
Simon Property Group
(
SPG
), one of the competitors of Kimco.
KIMCO REALTY CO (
KIM
): Free Stock Analysis Report
SIMON PROPERTY (
SPG
): Free Stock Analysis Report
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