Skip to main content
No. of Recommendations: 7
Just curious if anyone is following KIM.

I sold out about a year ago.

The most interesting thing that I notice about them in the last year is that they bought/retired $575 million worth of 3 series of preferred stock with a blended rate of 5.69%.

They issued $375 million of 30 year debt at 3.75%. As good as that rate seems, it would probably be better today. They issued $200 million in common stock in 4Q2019 at above $20 a share, versus its close Friday at $17.33.

They seem to be approaching the end of their previously large development/redevelopment program with about $40 million remaining in development and about $66 million in redevelopment. Completing this program will free up much cash. I am sure that redevelopment will continue to occur in the future, but hopefully at a slower pace.

Occupancy is quite good at 96.4%. In reviewing the top 50 tenants list, I identified three weak tenants - Petco 1.1% of ABR, Pier 1 (just took bankruptcy) at 0.5% ABR and Sears/Kmart at 0.4% ABR. Since the Sears/Kmart occupy 1.6% of GLA there might be opportunity there, but Eddie Lampert will try to extract the maximum value there for himself.

This is the way I see the pros and cons: Pros - Good occupancy, lower costs of capital (debt & preferreds) and coming to an end development/redevelopment program. Con - Bad economy could hurt occupancy.

Any opinions on KIM?

If it drops this week I might buy in the $16's and would be more likely in the $15's, should that opportunity arise.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.