Kimco Realty Corporation (HC) (KIM) Stock Forecasts

Summary

Kimco is a last-mile real estate investment trust specializing in the acquisition, development, and management of open-air shopping centers. The company’s portfolio consists of 529 U.S. shopping centers with approximately 90 million square feet of tenant space. New York and Los Angeles account for about one-fourth of all properties. In 2022, approximately 80% of annual base rents came from centers anchored by grocery store tenants.

Anchor stores also include discount clothing retailers such as T.J. Maxx and Ross. The company recognizes the value of multiuse retail destinations that include smaller tenants, and has maintained relationships with fast food and coffee retailers. The company has shopping centers in 39 states, with a focus on the last-mile suburbs of major metro coastal markets, as well as Sunbelt locations. In August 2021, it purchased Weingarten Realty for approximately $3.9 billion, becoming the largest grocery-anchored shopping REIT by market capitalization. The acquisition also gave the company a presence in Texas.

Kimco has a significant equity stake in Albertsons and its balance sheet has benefited from the Kroger-Albertsons merger. In January 2023, the company restructured with an internal merger into an umbrella partnership REIT, or UPREIT. The new parent holding company, New Kimco, is the publically traded company. KIM shares are included in the S&P 500.