Is Kimco Realty a Buy?
It's tough owning retail properties today, with investors largely afraid of anything that might get touched by the so-called "retail apocalypse." The thing is, Kimco Realty (NYSE: KIM) is doing a good job of dealing with this overhyped transition period in the retail sector. Here's what you need to understand to decide if Kimco Realty should have a place in your portfolio.
The real pain in the retail space is at enclosed malls, where anchor tenants like Sears that have failed to stay relevant are getting killed by the shift toward online shopping. While that's an important sector in the retail space, it isn't actually indicative of what's going on across the entire retail sector. Kimco, for example, largely owns shopping centers with grocery stores in them. These assets make up nearly 80% of the real estate investment trust's (REIT's) rent.
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