Kimco Realty Corporation (KIM) disclosed the opening of a Fresh Thyme Farmers Market store in North West Square in Columbus, OH. With the deal, Fresh Thyme Farmers Market became the anchor tenant, occupying 28,000 square feet of space, at the shopping center. This specialty grocer will open its unit on Aug 13.
North West Square, located at 6670 Sawmill Road, is an 113,000 square feet shopping center. Apart from Fresh Thyme Farmers Market, the property’s chief tenants include Pier 1 Imports, Inc. (PIR) and Patel Brothers Indian Grocers.
The addition of Fresh Thyme Farmers Market will boost the presence of North West Square and pave the way for top-line growth. Moreover, this strengthens Kimco’s relationship with the grocer that recently opened its store at the company’s Indiana-based Greenwood Shopping Center. Also, Fresh Thyme Farmers Market is intended to launch a new store this winter at Kimco’s Fairview City Center property in Illinois.
As a matter of fact, Kimco, which has premium properties in high-income and high-growth areas, boasts tenant roster of some well-capitalized retailers. The company generally signs long-term leases with these high credit tenants, which limit the downside risk and provide a steady source of income.
Last month, Kimco reported second-quarter 2014 results with funds from operations (:FFO) per share of 34 cents, in line with the Zacks Consensus Estimate and a cent below the prior-year quarter figure. The company experienced growth in revenues as well as occupancy levels in the quarter (Read: Kimco Posts In Line Q2 FFO, Revenues Top, Guides Same).
Kimco currently carries a Zacks Rank #3 (Hold). Investors interested in retail REITs may consider stocks like DDR Corp. (DDR) and General Growth Properties, Inc (GGP). Both stocks hold a Zacks Rank #2 (Buy).
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.