Kimco Realty Corporation (KIM) recently acquired three shopping centers totaling 595,000 square feet for approximately $75.5 million, including $43.4 million in mortgage debt. The acquired shopping centers are Independence Plaza, Garden State Pavilions and Village Shoppes of Flowery Branch, located in New York, New Jersey and Georgia, respectively.
Additionally, Kimco converted its equity interest in 6 shopping centers spanning 638,000 square feet into a joint venture where the company holds a 70.0% stake.
The company recently divested 11 non-strategic shopping centers totaling 1.0 million square feet for approximately $44.6 million. The proceeds generated from the sale of theses properties are expected to be utilized to fund the acquisition.
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 generally signs long-term leases with high credit tenants, which limits the downside risk and provides a steady source of income to the company.
Kimco, a real estate investment trust (REIT), owns and operates North America’s largest portfolio of neighborhood and community shopping centers. As of March 31, 2011, the company owned interests in 948 shopping centers totaling 138 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 are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Simon Property Group Inc. (SPG), currently retains a Zacks #2 Rank, which translates into a short-term Buy rating.
KIMCO REALTY CO (KIM): Free Stock Analysis Report
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