Analyst Report: Kimco Realty Corp.

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 567 U.S. shopping centers and mixed-use assets. Prior to the 1Q24 merger, New York and California accounted for about 28% of all properties. Currently, about 80% of annual base rents come from the REIT’s top 18 metropolitan markets. Approximately 87% of GLA is leased to anchor stores and current anchor occupancy is 98%. Anchor stores also include discount clothing retailers, and T.J Maxx is the company’s top tenant, accounting for less than 4% of GLA. The REIT’s largest grocery tenant is Amazon/Whole Foods with 32 locations. The company recognizes the value of multi-use retail destinations that include smaller tenants, and has maintained relationships with fast-food and coffee retailers. It 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. In January, Kimco purchased RPT Realty in an al