Kimco Realty Corporation (KIM), a real estate investment trust (REIT), has recently formed a joint venture with BIG Shopping Centers, an Israeli publicly traded company, to acquire 15 high-quality neighborhood and community shopping centers for about $422 million including $385 million in mortgage debt. BIG would have 49.9% ownership interests in the joint venture, while Kimco would have a 33.3% ownership stake. The remaining 16.8% ownership would be controlled by a consortium of other investors. Kimco would perform as the operating partner of the joint venture and would earn asset management, property management and other customary fees. The portfolio spanning 2.6 million square feet on the West Coast of the U.S. includes 9 properties in California, 2 each in Washington and Nevada, and 1 each in Oregon and Maryland. The properties are currently 89.5% occupied with Wal-Mart Stores Inc. (WMT), Target Corp. (TGT), and The TJX Companies, Inc. (TJX) as tenant anchors.
 
The deal is expected to be completed by the end of the second-quarter fiscal 2010. Kimco would record a non-cash impairment charge of approximately 3 cents in the second quarter in relation to the transaction. However, the company reiterated its recurring FFO (fund from operations) guidance for 2010 in the range of $1.10 to $1.15 per share. Together with its subsidiaries, Kimco is the largest publicly traded owner and operator of neighborhood and community shopping centers in the U.S., with interests in 1,471 properties spanning 151 million square feet of space in 45 states across the country, along with Puerto Rico, Canada, Mexico, Chile, Brazil and Peru. The company also operates complementary businesses that include merchant buildings, private preferred equity and real estate capital and advisory services.
Read the full analyst report on “KIM”
Read the full analyst report on “WMT”
Read the full analyst report on “TGT”
Read the full analyst report on “TJX”
Zacks Investment Research