Kimco Shares Dip Despite Tesla Supercharger Station Set up

Zacks

Taking its portfolio enhancement activity a notch higher, Kimco Realty Corporation (KIM) came up with the plan of installing electric vehicle-charging stations outside its shopping mall. However, following this announcement, shares of the company dropped 0.66% during the regular trading session on Sep 17 on the NYSE, on broader market concerns.

In particular, this retail real estate investment trust (REIT) disclosed the opening of a Supercharger station of Tesla Motors Inc. (TSLA) at its Gateway at Donner Pass shopping center in Truckee, CA. This property is located off of Interstate 80 (Exit 185) and boasts several well-known national and regional retailers.

As a matter of fact, the Supercharger station comprises six Supercharger bays that refill 50% battery capacity for a Tesla Model S vehicle 16 times faster than many other charging stations. The move will enhance customers shopping experience and escalate footfall at Kimco’s Donner Pass shopping center.

Amid increasing usage of electric vehicle in California, the strategic move depicts Kimco’s efforts to cater to the rising demand of chargers in the state. However, Kimco is not the only one aiming to capitalize on this opportunity. Simon Property Group, Inc. (SPG) has been carrying on with the installation of electric chargers across U.S. since Apr 2014. Particularly in California, the company along with the NRG eVgo of NRG Energy, Inc. (NRG) is currently running Freedom Station sites at four shopping centers in Orange County (read: Simon-eVgo Expands EV Chargers Network). Hence, Kimco needs to be wary of the rising competition in this field.

Kimco has scheduled the release of its third-quarter 2014 earnings results on Oct 28, after the closing bell. The Zacks Consensus Estimate for the same is pegged at 35 cents, representing year-over-year growth of 6.34%.

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

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