Kimco Realty Corp
), a real estate investment trust (REIT), recently acquired City
Heights Retail Village in San Diego. The purchase price for this
transaction was $35.6 million, including the assumption of $20
million of mortgage debt.
KIMCO REALTY CO (KIM): Free Stock Analysis
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Spanning 109,000 square feet, the shopping center is currently
99.0% occupied. The property is located in the densely populated
community of City Heights, northeast of downtown San Diego and
close to San Diego State University's main campus.
The acquisition is beneficial to Kimco Realty as the shopping
center is located in infill locations with high barriers to entry
and limited competitors. The center has easy access to Interstate
15, I-8 and I-808 highways and is surrounded by office,
residential and recreational spaces. The strategic move by the
company is aimed at having a geographically diverse portfolio
concentrated mostly in high-income, high-growth areas. Also the
company continues to reposition its portfolio through the
divestiture of non-strategic assets and acquisition of
Earlier in the third quarter of 2012, Kimco acquired three
wholly-owned shopping centers (420,000 square feet) in core
markets for $84.3 million, including $42.5 million of mortgage
debt. The company also acquired a 161,000-square-foot shopping
center in California, for $34.5 million.
Kimco together with its subsidiaries is the largest publicly
traded owner and operator of neighbourhood and community shopping
centers in the U.S. As of September 30, 2012, the company owned
interests in 922 shopping centers totalling 135 million square
feet of leasable space across 44 states, Puerto Rico, Canada,
Mexico and South America.
Kimco currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating. We maintain our long-term Neutral
recommendation on the stock. One of its competitors,
Simon Property Group Inc
), currently retains a Zacks #2 Rank, which translates into a
short-term Buy rating.