Kimco is 33% more valued than BRX, i.e., on FFO basis BRX is trading around 9.1x vs KIM's 12.1x. Between the two, I see BRX is growing FFO faster than KIM.
Yet the market gives essentially equal treatment to KIM & BRX. Maybe the question should be whether to buy either ahead of BPR.
BPR is not in the same category of KIM & BRX.
you right, brx is different animal, i do like brt because of bam. did buy brx in dec. work out good but has stall lately. brx is into shopping centers with some very strong archers like publix. people have to eat, plus new mgmt a few years ago. stay put, nice div.
I took a look at BPR, I didn't like their debt load. They are carrying $12 B market cap and compared to the equity of $2 B. Lot of folks like them because of BAM, that is not a reason for me to get into something with such a huge debt load and in mall sector. There are many things that can go wrong.On the other hand, BRX is a simple story with redevelopment fueled FFO growth and if the economy turns bad, they can switch off the redevelopment, the cost of failure is limited since a single location reinvestment's are < $10m, etc.I sold most of what I bought around $14.5, I hold a core position.
The debt load is not as ominous as it first appears for bpr. Because of their connection with bpy and ultimately bam, the debt load is quite manageable. In terms of same category neighborhood shopping centers, roic is probably the best managed, best performing of the group, yet the market largely ignores them. Consequently, I don't spend as much time studying fundamentals as I do the price action of what I own.
Because of their connection with bpy and ultimately bam, the debt load is quite manageable The debt is 6 times of the equity/market cap. This is a highly leveraged play and I will not count that BPY or BAM will bail them out if they get into some debt trouble. May be even if they bail them out, that may end up buying out minority and individual shareholders at pennies on the dollar situation. This is not a comment on BAM management, it is just that economic incentive and power is so skewed.roic is probably the best managed, best performing of the group, yet the market largely ignores them ROIC price to FFO valuation is 14.5, almost 5 multiples higher than BRX and 2.5 multiples higher than KIM.I would not call this valuation as market ignoring it, rather market is richly valuing it.
The market should richly price roic, are you familiar with west coast pricing? I have lots of confidence in Stuart Tanz, he's worth some premium, but I understand your straight valuation call.I don't know whether you've compared occupancy or same store improvements. I also own KIM, so I'm interested in the evolving retail scene.
I bought ROIC at the IPO because of the CEO's reputation. But even a smart CEO can only create so much value in this field. This is not technology, where you have an ability to create exponential value, this is real estate. Remember, high occupancy may be great, but that leaves little room for improvement !
That's a good point
Why are people talking about BPR and BPY as if they are two different companies? As I understand it, its one company, call it BPY, with two different types of stock (a US REIT and a partnership). Unless I'm going totally mad (a possibility), I can't imagine owning BPY over BPR.I also doubt BAM comes to the rescue if things hit the fan (unless it benefits BAM tremendously to do so).Rob
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