KIM - Kimco Realty: The 6.45% Preferred Shares Remain Attractive

2024-04-05 10:30:00 ET

Summary

• Kimco Realty completed the acquisition of RPT Realty, creating a larger commercial REIT focused on grocery-related anchor tenants.
• Kimco's 2023 FFO was slightly lower than in 2022, but the net impact on FFO from increased interest expenses was limited.
• Kimco expects a relatively flat FFO performance in 2024, with a gain on the sale of assets and acquisition-related expenses.

Introduction

Earlier this year, Kimco Realty ( KIM ) completed the acquisition of RPT Realty in an all-stock transaction, creating a much larger commercial REIT with a focus on grocery-related anchor tenants. One of the interesting elements was that the " busted" preferred share issue of RPT Realty is now backed by Kimco Realty. As part of the acquisition, Kimco issued 53 million common shares of Kimco to RPT shareholders while it issued just under 1 million operating partnership units....

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