Kimco Solidifies its Portfolio - Analyst Blog

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In an effort to strengthen its portfolio, Kimco Realty Corp. ( KIM ) disclosed the purchase of the 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.

Based on a gross value of $130.75 million, the buyout of this 510,000-square-foot shopping center has been completed. It is 94.3% occupied and houses several well known national and regional retailers including The TJX Companies Inc. ( TJX ), Wal-Mart Stores Inc. ( WMT ) and Target Corp. ( TGT ).

It is a premium property located in a region, which is thickly populated and has high barriers to entry. In addition, it can enjoy the footfall of people residing nearby (within three miles), with an average household income of $131,000.

Our Take

We remain encouraged with this strategic move as we believe that it will help the company to expand its high quality portfolio. The company has a premium portfolio of retail properties in high-income, high-growth areas and is currently focusing on its core business activities to tide over the volatility in the market.

It is well on track to sell off its non-retail assets and investments as well as non-strategic retail assets. This particular deal also reflects the reshuffling of its joint venture investments to achieve overall efficiency. In addition, it has a strong balance sheet with easy access to capital to allow continued growth.

Kimco currently carries a Zacks Rank #3 (Hold).



KIMCO REALTY CO (KIM): Free Stock Analysis Report

TARGET CORP (TGT): Free Stock Analysis Report

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

WAL-MART STORES (WMT): 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: KIM , TGT , TJX , WMT

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