Retail real estate investment trust (REIT) -
Kimco Realty Corp.
) invested $67 million to raise its stake in two ventures. The
move has facilitated the company to gain stake in 70 shopping
centers, occupancy levels at which averaged at approximately 96%.
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The tenant list of these shopping centers includes retailers such
Bed Bath & Beyond Inc.
The Home Depot, Inc.
Wal-Mart Stores Inc.
This stake acquisition is in sync with Kimco's current focus on
improving its core business line and reshuffling its joint
venture investments to achieve overall efficiency.
Particularly, Kimco acquired its partner's 9.7% stake in the
Kimco Income Fund I ("KIF I") portfolio and 3.6% interest in the
Kimco Income REIT ("KIR") joint venture. This raised the
company's ownership stake in KIF I and KIR to 39.2% and 48.6%,
Spanning 13.9 million square feet of retail space in aggregate
and mainly positioned in N.Y., Va., Fla., Md., Calif., and Texas,
the 12-property KIF I and 58-property KIR shopping center
portfolios are strategically located in retail markets with high
barriers to entry.
This stake acquisition by Kimco places it in a favorable
position. Last month, the company also disclosed the acquisition
of Marketplace at Factoria in the suburban Seattle community of
Bellevue, Wash. Kimco, which earlier had a 50% ownership interest
in this property, has now acquired the majority of its joint
venture partner's ownership interest in this property.
Alongside, Kimco has been trimming its non-retail assets and
investments as well as non-strategic retail assets. It has been
actively divesting its interests in the Mexican non-core
properties to improve its core business operations. Hence, backed
by its solid operating platform, we expect this Zacks Rank #2
(Buy) stock to ride high on the growth trajectory, going forward.