Ho, Ho, Ho, Way To Go Kimco

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Summary

  • Year to date, KIM’s dispositions included 38 shopping centers and 4 land parcels, totaling 5.0 million square feet, for a gross sales price of $556.1 million.
  • KIM is on target to complete $800 million of dispositions this year, and now – halfway through the year – the company has successfully closed on 66% of targeted dispositions.
  • I am maintaining a STRONG BUY on KIM shares and I am happy to be on the same page as the technical traders.

I know, it’s not Christmas yet, but for Kimco Realty (KIM) investors it feels like Christmas – in July.

Yesterday, Kimco announced that during Q2-18 it sold 17 shopping centers totaling 2.7 million square feet for $334.0 million (KIM’s share of these dispositions was $319.3 million). The blended cap rate for the property sales was in line with the company’s expected range of 7.50% to 8.00%. On the news, KIM’s president and CIO, Ross Cooper, explained:

“We are in a great position to meet our full-year disposition target of $700 to $900 million, thanks to the dedication and outstanding performance of our team this quarter. Once again, our robust sales volume highlights the strong demand for open-air shopping centers, supported by significant levels of capital and historically low interest rates.”

The dispositions include Primrose Marketplace, a 368,000-square-foot property in Springfield, Missouri, for $51.8 million, Broadway Plaza, a 356,000-square-foot property in Chula Vista, California, for $58.5 million, and Downers Park Plaza, a 269,000-square-foot center in Downers Grove, Illinois, for $26.7 million. In addition, the company exited the state of Alabama with the sale of The Grove, a 145,000-square-foot property in Hoover, Alabama, for $21.0 million.

Year to date, KIM’s dispositions included 38 shopping centers and 4 land parcels, totaling 5.0 million square feet, for a gross sales price of $556.1 million (KIM’s share of the sales price was $531.8 million).

You may recall that in a previous article I wrote that “KIM has another $500 million+ under contract with an accepted offer and maintains the full year guidance range for both net sales volume and cap rates” Specifically, KIM is on target to complete $800 million of dispositions this year, and now – halfway through the year – the company has successfully closed on 66% of the disposition guidance.

Back in May, I explained that “Kimco has a few more quarters to prove itself and clearly the first-quarter results serve as a promising sign that the pillars are well-anchored. I am especially pleased to see the company executing on its disposition promise and I am encouraged by the exceptional liquidity on the balance sheet.”

A teddy bear Description generated with high confidence

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Boom! Strong Buy Kimco Putting Points on the Board

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