KIM - Here's How Kimco Realty Can Afford Its 4.5% Dividend Yield
2023-07-14 05:06:00 ET
Income investors looking for yield should look at the real estate investment trust (REIT) sector. These companies invest in properties and then lease out the units. REITs can monetize many different assets, from office buildings to shopping malls to cellphone towers. Investors attracted to REIT yields should always ask if the dividend is sustainable; otherwise, it is illusory. Kimco Realty (NYSE: KIM) is a prominent retail REIT. How does it afford its 4.5% dividend yield, and is it sustainable?
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Kimco Realty is a REIT that focuses on open-air, supermarket-anchored shopping centers. As of March 31, 2023, Kimco Realty had interests in 523 properties representing 90.8 million square feet of gross leasable area. The company concentrates primarily on first-ring suburbs in 19 coastal and Sun Belt metropolitan areas. The company believes these metro areas have the population growth and economy to support these properties and considers these areas to have large barriers to entry.
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Here's How Kimco Realty Can Afford Its 4.5% Dividend Yield