HYDE PARK, NY—Bigger isn't always better—better is better. At least that was the theme of Kimco Realty Corp.'s annual Investor Day. The company plans on continuing to sell assets that do not fit a top-of-market strategy and a plan to simplify what had become a very complicated structure of joint venture partnerships, etc.
“Gone are the days when Kimco would not sell an asset,” said Scott G. Onufrey, senior vice president and managing director, investment management.
Since the company's last investor day, it's sold 139 centers, and another 91 are in the pipeline. Some of that is the result of exiting joint ventures, and focusing on the top MSAs in the country.
The result for Kimco should be a national, more concentrated portfolio in the top markets – and opportunities for smaller investors to get into the business or beef up their own portfolios.
It's not like these properties are in trouble, after all – they're just in smaller markets that don't fit the new strategy. And with little to no new development to create competition and multiple retailers pursuing vacancies, rents should increase substantially, regional executives reported.
And Kimco continues to acquire. It's purchased 73 properties for a total of $1.8 billion since 2010, most recently in Clark, NJ, and a 24-center project in Boston.
It's a smart plan for a company that's been smart all along.
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