News & Trends

Kimco in the news: Q3 2014 recap

Posted by: Dave Bujnicki Dave Bujnicki
on November 4, 2014

Coverage by the media was generous and far-reaching in the past few months as Kimco enjoyed another strong quarter. Here’s a sampling of the many mentions we earned from July through September.

TSR hot streak

Kimco Continues Southeast Retail Hot Streak,” wrote GlobeSt., one of several dozen outlets to report on our buying and selling activities. Nearly all have echoed the conviction that our TSR+ strategy — emphasizing transformation, simplification, and redevelopment — is exceeding expectations.

High-quality acquisitions have played an enormous role in the strategy. Of particular note for the past quarter was our purchase of 10 shopping centers in the Mid-Atlantic region, as reported by Benzinga. The 1.4 million-square-foot portfolio, which is located in mature markets and is predominantly grocery-anchored, was purchased for $275.8 million from a pre-existing joint venture.

Dispositions of non-strategic assets continue alongside acquisitions as we transform our core portfolio. Looking here at a selection of regions, we begin in Mexico where our sale of three properties for $112.8 million was noted by Zacks. In South Florida, the sale of an open-air shopping center in Margate was covered by The Real Deal, and our $10.3 million sale of the 135,000-square-foot Century Plaza was mentioned by Orlando Business Journal. Chain Store Age wrote about the disposition of the 233,797-square-foot Centennial Plaza in Oklahoma City. Back in the Northeast, Boston’s CityBizList published a headline feature when we closed a sale for $27.2 million on Waterbury Plaza, a Connecticut property anchored by Stop & Shop.

News of our redevelopment projects has also garnered a great deal of media attention. On the west coast of Florida, The St. Petersburg Tribune applauded our approximately $32 million investment in Tri-City Plaza, aimed at refreshing this property, with local leaders anticipating a positive effect on the local community. WCSC’s Live 5 News in Charleston, SC, discussed the makeover planned for Westwood Plaza in West Ashley, where we are downsizing an Office Depot and shifting a TJ Maxx in order to accommodate a 50,000-square-foot Harris Teeter food and pharmacy center. Live 5 also mentioned that we recently renovated the nearby St. Andrews Shopping Center.

Farther up the Eastern seaboard, The Baltimore Sun highlights Kimco’s redevelopment of the Wilde Lake center in Baltimore’s Columbia village. Kimco is adding two apartment buildings in the middle of the center, and the success of this project may influence how other area projects are undertaken. In northeast Philadelphia, a new Burlington Coat Factory and a Bob’s Furniture are planned for the long-dormant shopping center at the intersection of Cottman Ave. and Castor Ave., writes The Philadelphia Inquirer.

Thumbs up from the market

Market analysts and investment advisors had a string of superlatives for Kimco in the past quarter, and have celebrated the growth of commercial real estate in general.

In August, a colorful headline on Seeking Alpha read, “Nobody Does It Better Than Kimco, I Feel Sad For The Rest.” Author Brad Thomas reminds readers that he has long admired Kimco as a unique company that’s always been “based on integrity, and that legacy continues today as the foundation of the business model.” Forbes gave us a nice nod in “Top Buys by Top Brass,” noting at the top of the article that Kimco’s Executive Chairman Milton Cooper invested $1.1 million of his own cash in Kimco stock on the open market. Our hometown paper Newsday further bolstered shareholder confidence by naming Kimco in “11 Long Island Stocks That Paid Off the Most This Year.”

“Physical retail spaces aren’t going away,” writes Investopedia’s Aaron Levitt. “In fact, they’re thriving.” In his article “Why ‘Bricks and Mortar’ Retail Remains A Solid Bet,” Levitt cites a study that says 90 percent of all U.S. retail sales conducted last year were completed in a physical store, contrasted with only about nine percent online. Analysts who expected traditional retail to crumble “may want to think again,” says Levitt.

Thinking ahead

For 15 years now, Realcomm has been presenting their annual Commercial Real Estate Digital Innovation Awards, better known as the “Digies.” We’re proud to share that Kimco took home the 2014 award for Best Use Of Automation – Retail. In bestowing the honor, Realcomm recognized Kimco for its development of advanced leasing, budgeting/forecasting, and business intelligence applications; for continual willingness to interact with peers and take a leadership role; and for implementing Gateway, our advanced web-enabled lighting solution.

REIT.com referenced Kimco in “Recommended Sustainability Best Practices,” citing our practice of sharing cost-saving initiatives with tenants. Will Teichman, our Director of Sustainability, was quoted in the piece, which also includes a sidebar on “The Greening of Leases.” Kimco was recognized by the U.S. Department of Energy earlier in the quarter as a Green Lease Leader.

Recognitions such as these, and the write-up by MarketWatch of our Tesla Supercharger Station opening at Donner Pass in Truckee, CA, help convey Kimco’s genuine interest in progressive practices. (See our previous post Driving The Trend to learn more about charging stations.) We also received Honorable Mention at the Platinum PR Awards from PR News, which recognized this blog as one of the best on the web.

Finally, we’d like to thank the many industry outlets, including ICSC and Shopping Center Business, who formally acknowledged the change in leadership here at Kimco this past quarter. As of August 5, Conor C. Flynn became Kimco’s new President. Conor will continue with his previous roles as COO and Chief Investment Officer.

Thanks for reading. We’ll be back with a fresh media recap in the new year.

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