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Kimco Announces Buyout of Waterford Lakes Town Center for $322M
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Kimco Realty (KIM - Free Report) recently announced the acquisition of Waterford Lakes Town Center for $322 million in Orlando, FL, which includes the assumption of a $164 million mortgage.
The purchase of Waterford Lakes enhances this retail real estate investment trust’s (REIT) position in the Orlando market, increasing its portfolio to 18 centers with a total of more than four million square feet of gross leasable area.
This 976,000-square-foot property, encompassing 79 acres, is approximately 99% occupied. The property features a high-quality tenant mix that integrates lifestyle and entertainment offerings with essential goods and services.
Located in Orlando’s upscale West University submarket, Waterford Lakes Town Center serves an extensive trade area. The shopping center is surrounded by an estimated population of more than 228,000 residents, with an average household income of $111,000 within a five-mile radius. Additionally, it is positioned in one of the fastest-growing metropolitan areas in the United States.
According to Placer.ai, these strong demographics contribute to an impressive total of 13.6 million visits to the center each year. Several anchors and national tenants are recognized as top traffic generators for their respective chains within Florida.
Per Ross Cooper, president and chief investment officer of Kimco, “We are excited to leverage our extensive operating platform and deep tenant relationships to unlock the full growth potential of this dominant shopping center by recapturing below market leases and further enhancing its already excellent merchandising mix.”
KIM’s Revised 2024 Guidance
The acquisition of Waterford Lakes has led Kimco to surpass $560 million in 2024 total acquisition activity, including structured investments. As a result, it now expects to be a net acquirer in 2024.
The company expects its total acquisitions and structured investments for 2024 to fall between $565 to $625 million, an increase from the prior range of $300 to $350 million. At the same time, 2024 dispositions are expected to be between $250 to $300 million, down from the previous range of $300 to $350 million.
Summing-Up
Kimco is well-poised to benefit from its portfolio of high-quality, open-air shopping centers, which are predominantly grocery-anchored, in the drivable first-ring suburbs within key major metropolitan Sunbelt and coastal markets. Its focus on developing mixed-use assets bodes well for long-term growth.
The company’s latest buyout is part of its ongoing efforts to expand its premium shopping center portfolio that offers essential goods and services. The necessity-driven nature of this portfolio makes it resilient during periods of economic downturns and provides a stable source of income. Hence, its acquisition of Waterford Lakes seems like a strategic fit.
Shares of this Zacks Rank #3 (Hold) company have rallied 23% in the past six months, outperforming the industry's growth of 17.1%.
The Zacks Consensus Estimate for Brixmor’s 2024 FFO per share is pinned at $2.13, suggesting year-over-year growth of 4.4%.
The Zacks Consensus Estimate for Tanger’s 2024 FFO per share stands at $2.09, indicating an increase of 6.6% from the year-ago reported figure.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Kimco Announces Buyout of Waterford Lakes Town Center for $322M
Kimco Realty (KIM - Free Report) recently announced the acquisition of Waterford Lakes Town Center for $322 million in Orlando, FL, which includes the assumption of a $164 million mortgage.
The purchase of Waterford Lakes enhances this retail real estate investment trust’s (REIT) position in the Orlando market, increasing its portfolio to 18 centers with a total of more than four million square feet of gross leasable area.
This 976,000-square-foot property, encompassing 79 acres, is approximately 99% occupied. The property features a high-quality tenant mix that integrates lifestyle and entertainment offerings with essential goods and services.
Located in Orlando’s upscale West University submarket, Waterford Lakes Town Center serves an extensive trade area. The shopping center is surrounded by an estimated population of more than 228,000 residents, with an average household income of $111,000 within a five-mile radius. Additionally, it is positioned in one of the fastest-growing metropolitan areas in the United States.
According to Placer.ai, these strong demographics contribute to an impressive total of 13.6 million visits to the center each year. Several anchors and national tenants are recognized as top traffic generators for their respective chains within Florida.
Per Ross Cooper, president and chief investment officer of Kimco, “We are excited to leverage our extensive operating platform and deep tenant relationships to unlock the full growth potential of this dominant shopping center by recapturing below market leases and further enhancing its already excellent merchandising mix.”
KIM’s Revised 2024 Guidance
The acquisition of Waterford Lakes has led Kimco to surpass $560 million in 2024 total acquisition activity, including structured investments. As a result, it now expects to be a net acquirer in 2024.
The company expects its total acquisitions and structured investments for 2024 to fall between $565 to $625 million, an increase from the prior range of $300 to $350 million. At the same time, 2024 dispositions are expected to be between $250 to $300 million, down from the previous range of $300 to $350 million.
Summing-Up
Kimco is well-poised to benefit from its portfolio of high-quality, open-air shopping centers, which are predominantly grocery-anchored, in the drivable first-ring suburbs within key major metropolitan Sunbelt and coastal markets. Its focus on developing mixed-use assets bodes well for long-term growth.
The company’s latest buyout is part of its ongoing efforts to expand its premium shopping center portfolio that offers essential goods and services. The necessity-driven nature of this portfolio makes it resilient during periods of economic downturns and provides a stable source of income. Hence, its acquisition of Waterford Lakes seems like a strategic fit.
Shares of this Zacks Rank #3 (Hold) company have rallied 23% in the past six months, outperforming the industry's growth of 17.1%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the retail REIT sector are Brixmor Property Group (BRX - Free Report) and Tanger, Inc. (SKT - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Brixmor’s 2024 FFO per share is pinned at $2.13, suggesting year-over-year growth of 4.4%.
The Zacks Consensus Estimate for Tanger’s 2024 FFO per share stands at $2.09, indicating an increase of 6.6% from the year-ago reported figure.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.