Real Estate Sector Ideas

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>>> Kimco Realty -


https://www.fool.com/investing/2017/05/31/3-beaten-up-dividend-stocks-are-they-bargains.aspx?yptr=yahoo


5-31-17



Shopping center REIT Kimco Realty (NYSE:KIM), like the two other stocks mentioned here, hasn't performed too well in 2017. And it certainly makes sense, as many retailers that primarily operate in shopping centers -- such as Kmart, h.h. gregg, and Payless Shoe Source -- have all announced massive store closures in 2017.

However, the impact on Kimco has been minimal -- in fact, the loss due to these closures represents just 0.3% of Kimco's rental income.

Kimco's strategy is to operate in a little over 20 core markets, and to maintain a high level of tenant diversity. Kimco has 517 properties containing 84 million square feet of space, and 80% of the rent they generate is in these core markets. No more than 3.5% of the company's revenue comes from any single tenant, and the top tenants are made up of recession- and e-commerce-resistant businesses.

For example, discount retailers such as TJX, Ross Stores, Wal-Mart, and Dollar Tree, all of which are among Kimco's top 15 tenants, tend to do just fine during tough times, as customers seek bargains. Retailers such as Albertsons and PetSmart sell things people need, not just things people want. These are just a few examples of Kimco's roughly 4,000 individual tenants, but the point is that the company isn't too vulnerable to traditional, discretionary retail businesses closing stores.

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