Solid Results for America's Largest Shopping Center Landlord
Accordingly, Kimco has replaced many of their troubled tenants with higher-quality retailers. This diverse portfolio includes many brand names and the highly diversified platform remains the largest landlord of Costco (COST) , Home Depot (HD) , TJX (TJX) , Target (TGT) , Ross Stores (ROST) , Walgreen (WAG) and Bed Bath & Beyond (BBBY) , all strong investment grade companies. These tenants have enabled Kimco to draw more shoppers to the properties, improve leasing demand, and position the assets to better withstand another downturn.
Last week, Kimco reported its fourth quarter and year-end 2012 results and the improved performance is indicative of the higher quality income fundamentals. As David Henry, CEO of Kimco, explains:
"Overall, the shopping center industry in our portfolio in particular continues to demonstrate steady and sustained improvement across the board, benefiting from population growth and very little new development. Effective rents and occupancy rates are increasing at an accelerating rate. Our key metrics or vital signs, as we like to say, are very strong with 11 straight quarters of positive same-store NOI growth and an occupancy rate just under 94%, representing our highest level since the start of the recession and very high leasing spreads."