Shares of Kimco Realty (KIM) have dropped about 45% over the past three months due to a general sector sell-off. While retail fundamentals will get worse, the company is now vastly undervalued relative to its asset base. Now is a good time to get in on the largest strip center REIT in the country at a heavily discounted share price.

Kimco Realty Corporation, together with its subsidiaries, is the nation's largest publicly traded owner and operator of neighborhood and community shopping centers. As of June 30, 2008, the company had interests in 1,928 properties with 180 million square feet.

Despite a declining retail environment, operationally, the company's portfolio continues to perform well. KIM reported healthy rental rate increases on new/renewals leases in the most recent quarter. KIM also recently increased its quarterly common dividend 10%.

The company's development/redevelopment pipeline continues to grow. With initial expected yields in excess of 9%, the company continues to create good value through its wholly owned and co-investment developments. Further, KIM has a growing international asset base, which mitigates downside risk as the U.S. economy continues to weaken.

The company recently entered several Latin American markets. Kimco Realty Corp. has a stable balance sheet and plenty of liquidity to withstand the current U.S. economic downturn, which could create attractive buying opportunities in the retail sector.