KIMCO IN THE NEWS: Q2 2014 RECAP
The momentum from a robust first quarter of 2014 propelled us into Q2 in excellent standing, as reflected in our recent media coverage. Here’s a sampling from the hundreds of media items we were proud to be featured in last quarter.
Strong on strategy
The strategy we unveiled at Kimco’s 2013 Investor Day back in December — a three-pillar approach we call TSR+, based on transformation, simplification, and redevelopment — continues to earn high praise in the media. Characterizing our strategy as an “addition by subtraction formula,” The Motley Fool offered kudos to Kimco management and added, “Clearly it is all about quality and not quantity!”
Several outlets including The Street and iREIT Investor ran a headline story entitled “Our Company Gets Stronger When We Simplify Our Focus.” Featuring an interview with Kimco CEO David Henry, the piece explains how we’ve gained strength in operations by reducing the number of properties in joint ventures and in Latin America while bolstering our U.S. portfolio with high-quality properties. Our April acquisition of 24 properties primarily in the greater Boston area, in particular, garnered national and regional coverage from the lay press (e.g., The Boston Globe, NewsTimes.com), professional journals (Law360), and REIT industry outlets alike. Likewise, our strategic divestiture of four Mexican shopping centers was covered by media including CNBC, Reuters, Nasdaq, and MarketWatch.
The TSR+ strategy has been recognized as a winning formula by the financial community. In a feature entitled “Kimco Shows Stability in Fundamentals,” Zacks Equity Research wrote, “Going forward, we believe that Kimco’s efforts to improve its core portfolio through the divestiture of non-strategic and non-retail assets as well as acquisition of high-quality properties would help it to ride on the growth trajectory.” The piece was picked up by Yahoo! Finance, Benzinga, and other market analysts.
In addition to dozens of national features addressing the transformation and simplification aspects of Kimco’s strategy, our redevelopment efforts have been warmly received in locally published reports. Projects underway including the Downtown Farmington Center in Farmington, MI, and the Fairview City Centre in Fairview Heights, IL (where organic grocer Thyme Farmers Market will be a new anchor), have been applauded by city officials. Down in Florida, where a Jacksonville infill adjacent to Interstate 95 had been stalled for nine years, the “Rebirth of Avenues Walk” was proudly announced by MetroJacksonville.com. Another Florida shopping center, Tri-City Plaza in Largo, FL, will be undergoing a facelift in the coming months. Also in Q2, after completing a renovation at Manhasset Center in Manhasset, NY, we added two sought-after retailers, DSW and Nordstrom Rack, to the site.
Our leasing strategy has also garnered attention. Tom Simmons, President of the Mid-Atlantic Region, discussed how important gyms and other health retailers are in a tenant mix to draw shoppers.
Easy being green
“Green [is] the New Black” sang a headline from Real Estate Weekly on May 7. Acknowledging that REITs who embrace sustainability benefit from cost savings and higher building evaluations, REW noted that Kimco won the Lighting Efficiency in Parking (LEEP) campaign award for making the most energy-saving upgrades to parking areas. Plaudits for our LEEP award have rolled in from all corners, including mentions by Energy Manager Today, EDC magazine, and others championing the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) program.
Kimco has further sought to support and promote sustainability through commercial leases, and was recognized as a Green Lease Leader at the Department of Energy’s Better Buildings Summit in May. That honor was covered by outlets including the Portland Business Journal and Seeking Alpha, who entitled their feature, “Greener Real Estate Can Create More Green for Investors.” We look forward to sharing in the success and stability that green initiatives promise for owners and tenants as our corporate responsibility efforts continue to expand.
“Epitome of stability”
Market analysts and advisors, encouraged by our successes in the previous quarter, had a string of superlatives for Kimco in Q2. BestStocks named Kimco a Best Dividend Stock To Watch for 2015, and Seeking Alpha cited us as a Best Dividend Grower (3.95 percent yield). LIStocks cited Wall Street’s advice on how to prepare for possible market corrections and declared Kimco to be a Best Defensive Stock To Own.
The headline “Kimco Soars to a New 52-Week High” was seen across multiple outlets including Zacks, Nasdaq, and Yahoo! Finance after shares reached $23.55 at the end of the trading session concluded on June 5. Zacks tipped its hat to our year-to-date return of 19.1 percent and said, “This Zacks Rank #3 (Hold) stock has plenty of upside left.”
The Wall Street Journal also acknowledged big gains, reporting on June 2 that over the prior three trading sessions and prior three months Kimco shares had gained .04 percent and 2.96 percent, respectively.
“Kimco is the epitome of stability,” wrote Wyatt Investment Research. “While its common dividend is 3.8 percent, you can instead buy the preferred stock H shares which yield 6.9 percent.” Wyatt named us among 4 High Yield Preferred Stocks
Legacy of leadership
A recent feature on REIT.com hearkened back to 1991, when Kimco’s initial public offering was the first equity REIT IPO ever, following a difficult era for capital markets. As REIT.com’s Editorial Director acknowledged in “REIT-volution: REITs Continue to Adapt to Dynamic Economy,” Kimco was confident even then that real estate was a safe harbor from market turbulence, and several REITs soon followed in our wake with their own successful IPOs.
We continue take pride in our role as an industry leader navigating an evolving market. In a recent Fortune article, Kimco CEO David Henry dispelled the myth that today’s extremely high occupancy rates and the rising tide of online shopping portend bad things for retail real estate. Instead, Henry sees an excellent growth opportunity for even more new shopping developments to be built in promising locales. Penned by CNBC “Squawk Box” anchor Becky Quick, the Fortune feature concurred that strip-mall retailers can weather the storm by adapting to changes in consumer spending habits. The piece, entitled “Retailing 2.0: The humble strip mall is bouncing back,” was also picked up by CNNMoney.
Finally, we’re proud to report that this blog has been recognized for promoting corporate social responsibility. We received the 2014 CSR Award for best blog from PR News. Under the heading “Kimco Realty Builds Industry Leadership in CSR through Corporate Blog,” PR News credited these pages with spurring new leasing activity and supporting goals shared by the REIT industry at large.
Thanks for reading, and stay tuned for next quarter’s recap of Kimco media coverage in early October.