5 Rocket Stocks Worth Buying This Week
Shares are already up 38% this year, so while RHT is hardly a value stock at these price levels, this Rocket Stock should have more upside as a solid relative strength play. Kimco Realty
Real estate investment trust Kimco Realty (KIM) has ownership stakes in around 1,000 properties worldwide -- more than 138 million of leasable square feet in total. Kimco primarily owns and invests in neighborhood shopping centers, a business that got hit hard during the Great Recession. But now, with commercial real estate bouncing back and a solidified balance sheet at KIM, this stock has room to run higher.
Unlike most commercial REITs, Kimco owns a large number of properties in joint ventures with other firms (around half of its property portfolio). Joint ventures are a positive for Kimco because the firm can deploy capital other than its own while collecting a management fee from its partners for its role in running those properties. While that does confuse the firm's asset base a bit, it's an added revenue source that most other REITs don't have.
Essentially, real estate investment trusts are income-generation tools. Because Kimco leases properties with long-term triple-net contracts, the firm enjoys easily forecasted rent revenues without the earnings hiccups of maintenance, taxes or insurance costs. And since REITs are required to pay out the vast majority of income as dividends, KIM produces a solid 3.9% yield right now.