Puerto Rico: A successful Kimco investment

Posted by: Paul Puma Paul Puma
on April 23, 2013

In 2006, Kimco Realty acquired seven shopping centers in the Commonwealth of Puerto Rico. The commitment and efforts from our people assigned to these assets have shaped this portfolio into a very successful and stable investment.

A driving force behind the success of the Puerto Rico properties is the strong sales performance of many U.S.-based retailers on the island. The Puerto Rican shopper is a value-oriented consumer, demanding convenience and name-brand products at competitive prices. Retailers adhering to this model have enjoyed higher sales volumes in their Puerto Rico stores versus their stores in the United States.

One recent addition to the list of U.S.-based retailers to the Puerto Rico market is California-based Anna’s Linens. The retailer leases three locations with Kimco on the island — Ponce Towne Center in Ponce, Trujillo Alto Plaza in Trujillo Alto, and Plaza Centro in Caguas. All three stores had extraordinary openings and continue to be among some of the best performing stores in the Anna’s Linens chain. In fact, on opening day at the Plaza Centro location, the line to get into the store went out the mall door.

Anna’s Linens is not the only success story. Brooklyn-based junior fashion retailer, Rainbow, has enjoyed a long history of good sales on the island. Today Rainbow and its affiliates have 14 leases with Kimco in Puerto Rico. Companies such as Walmart and Marshalls also report strong sales on the island.

Over the last 18 months, PetSmart joined the list of U. S. companies opening stores in Puerto Rico. PetSmart currently has three leases with Kimco — Plaza Centro, Ponce Towne Center, and Rexville Town Center in Bayamon (which is scheduled to open summer of 2013).

The strong sales performance of both large and small retailers in Puerto Rico has led to a good history of tenant retention and steady revenue growth, including during the height of the recession. Occupancy rates for the Kimco Puerto Rican portfolio is consistently in the mid-90s, and today our occupancy is over 96 percent.

Despite varied reports on the Puerto Rican economy, Kimco properties have proven to be a sound investment, and Puerto Rico is identified as a market in which Kimco can grow.


Good assessment of the local retail market. It’s very positive that Kimco sees growth opportunities in PR.

Gerardo Jirau

April 26, 2013

Thanks, Gerardo – glad you enjoyed the post.

April 26, 2013

I came across your blog posting about Puerto Rico while doing research for the upcoming ICSC Florida Conference Aug 24, 2014. Puerto Rico is turning the corner and soon will put behind the economic challenges encountered in recent years. The future for PR retail looks very bright.

August 22, 2014

The Kimco properties in Puerto Rico are for the most part stable. We will closely monitor the impact of the recent tax legislation on tenant sales.

August 22, 2014

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