Kimco Realty Downgraded - Analyst Blog
Operationally,
Kimco Realty's (
KIM) portfolio continues to perform well. KIM continues to sign new leases at higher rents and most of the company's current leases are at below market rents. In addition, the company has adequate liquidity on its line of credit to address 2009 debt maturities.
We think KIM is one of the best-positioned retail REITs in the continued economic downturn. KIM has a geographically diverse portfolio with concentrations in high income, high growth areas. We are changing our current recommendation to hold due to macroeconomic factors.
Going forward, transactional income will be much lower than previous years. With cap rate increases and the lack of available financing, KIM will have a much more difficult time selling newly developed properties. If the retail landscape gets worse, there could be a pre-emptive dividend cut in an effort to conserve cash.
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