According to a recent analysis from BTIG, Kimco’s recent property tour provided an excellent view of the potential in its development pipeline and repositioned portfolio. The four assets covered the spectrum from urban ground up development of a mixed-use project to the demolition and repurposing of a former enclosed mall.
“With $945 million coming online through 2020, if Kimco can achieve its targeted underwriting, we estimate an additional 0.50-$1.00 per share of NAV creation.”
Perhaps more importantly, BTIG says that the tour highlighted that management has a firm vision for how the portfolio should continue to evolve in a changing retail landscape.
Future opportunities are waiting as well, says BTIG. Beyond the current projects, Kimco has already identified an additional 29 projects including 1.7 million square feet of retail and 6,000 apartment units, some of which will come into the pipeline over the next decade.
But management remains focused on risk, says BTIG. “The company is focused on phasing projects, limiting construction spending, and working with local partners to help minimize the risks associated with mixed-use.”
The tour also refocused the story on how much the portfolio has changed, the firm adds. “Kimco has shrunk its assets by almost half, and increased its exposure to core markets by 1800 bps since 2010.