Why Kimco Realty Stock Plummeted 44% in March
Shares of retail-focused real estate investment trust (REIT) Kimco Realty (NYSE: KIM) fell 44% in March according to data from S&P Global Market Intelligence. That decline was dramatically worse than the S&P 500 Index's 13% drop or the performance of the average REIT, as reflected in the 20% fall of the Vanguard Real Estate ETF. But the relatively hard hit wasn't out of line with the risks Kimco faces today, largely because of COVID-19.
Kimco has transitioned its portfolio over the last few years to the point where it is now largely focused on desirable retail assets located in wealthy areas. Many of its properties are anchored by necessity tenants like grocery stores and pharmacies. That said, it still owns retail properties. As COVID-19 started to spread across the United States in February and March, state and local governments began to take increasingly aggressive actions in their efforts to slow its progress.
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Source Fool.com
