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.
I thought last weekend, we are finding bottom and can start nibbling, but I am reassessing my views. I am leaning towards just raising cash and waiting it out. It is not clear where is the bottom and I am losing confidence in this administration, most likely administration missteps and large number of folks not understanding the importance of prevention, all of this going to result in a major outbreak and by the time we get a handle on this, it is going to be a much bigger problem and economic and human toll is going to be bigger. I wish I could be wrong, but that is much current view.So preserve cash, and opportunities will present for us.
Hi Valuemongeragain!I own KIM, BRX and ROIC at lower prices than today's closing prices.Of the three, BRX seems to be growing a bit faster and started increasing its dividend again.ROIC has continuously increased its dividend for many years but the increases lately have beenvery small. All three seem to have rather conservative balance sheets especially ROIC.I have been a shareholder of ROIC since it was first recommended by the Motley Fool premiumservices, Income Investor, Inside Value and Special Ops about ten years ago(all three of which have since been discontinued).I think KIM is a good candidate at today's closing price for the reasons you mentioned. Morningstar follows KIM and estimates fair value at $20.00.DavidNot an analyst, just an investor
I picked up SPG today. I am happy with the 8% dividend on the shares. Morningstar rates them a 5 star at $130.90 so around $103 seems like a deep discount. They are growing their dividend at a 7% cagr over the last 5 years.Andy
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