$1.2 Billion Reasons Kimco's Future Looks Bright
Strip malls are a cornerstone of the American economy, generally featuring a grocery store. That's exactly what real estate investment trust (REIT) Kimco (NYSE: KIM) specializes in owning. And when tenant Albertsons (NYSE: ACI) ran into trouble some years ago, the REIT stepped in to help, eventually ending up with an ownership stake. Albertsons is now public again, and this stake is a huge hidden plus for Kimco and its shareholders.
At the end of the third quarter, Kimco estimated that its stake in Albertsons was worth roughly $1.2 billion. That's a nice chunk of change thanks to a big rally since the grocer's mid-2020 initial public offering (IPO). In truth, the IPO was something of a dud, as the company was hoping to price the stock between $18 and $20 per share but ended up pricing it at $16. Today, however, it is worth around $34 per share, up a hefty 115% or so in around 17 months.
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Source Fool.com
