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Kimco (KIM) Inaugurates Grand Parkway Marketplace in Texas
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Retail REIT, Kimco Realty Corp. (KIM - Free Report) declared the inauguration of its new ground-up development – Grand Parkway Marketplace – in Spring, TX. Target Corporation (TGT - Free Report) is the first retailer to commence operations at this center.
In addition to Target, that occupies 126,000-square-feet of space in this property, there are a number of other tenants, including TJ Maxx of The TJX Companies, Inc. (TJX - Free Report) , PetSmart and Ulta Beauty Inc. (ULTA - Free Report) , which will soon open their respective outlets.
Grand Parkway Marketplace
Situated along the Grand Parkway – a huge highway project encompassing the Greater Houston region – the Grand Parkway Marketplace comprises two phases. These will cover more than 110 acres, forming a retail center of around 750,000 square feet of space.
The $87-million, 488,000-square-foot phase one is slated to complete in third-quarter 2017. Per the company, this phase is around 80% leased and there is solid demand for its remaining space. It will comprise national, regional, and local tenants, with eight junior anchors and 11 outparcels.
On the other hand, the planned $52-million phase two development, situated across the street, will include many multi-tenant retail buildings, and a number of outparcels for restaurants, banks, or other retail uses.
Our Take
We believe this ground-up development would be a significant contributor to the company’s top line. This is because the property enjoys decent trade area demographics. In fact, within a five-mile radius, there are around 180,000 people with an average household income of over $110,000. Also, the area includes the ExxonMobil global headquarters, along with new facilities for Noble Energy, Southwestern Energy, CHI St. Luke’s Health, raising chances of greater footfall at the property.
Further, Kimco remains on track with its strategic 2020 Vision, which envisages the ownership of premium assets in major metro markets in the U.S. and a reduction in the joint-venture portfolio. Such efforts augur well for long-term growth. However, earnings dilution led by high disposition activity remains a concern. Furthermore, dwindling mall traffic and store closures due to aggressive growth in online sales is a major headwind.
Kimco’s shares descended 15.6% over the past three months against the Zacks categorized REIT and Equity Trust – Retail industry’s decline of 4.1%.
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Kimco (KIM) Inaugurates Grand Parkway Marketplace in Texas
Retail REIT, Kimco Realty Corp. (KIM - Free Report) declared the inauguration of its new ground-up development – Grand Parkway Marketplace – in Spring, TX. Target Corporation (TGT - Free Report) is the first retailer to commence operations at this center.
In addition to Target, that occupies 126,000-square-feet of space in this property, there are a number of other tenants, including TJ Maxx of The TJX Companies, Inc. (TJX - Free Report) , PetSmart and Ulta Beauty Inc. (ULTA - Free Report) , which will soon open their respective outlets.
Grand Parkway Marketplace
Situated along the Grand Parkway – a huge highway project encompassing the Greater Houston region – the Grand Parkway Marketplace comprises two phases. These will cover more than 110 acres, forming a retail center of around 750,000 square feet of space.
The $87-million, 488,000-square-foot phase one is slated to complete in third-quarter 2017. Per the company, this phase is around 80% leased and there is solid demand for its remaining space. It will comprise national, regional, and local tenants, with eight junior anchors and 11 outparcels.
On the other hand, the planned $52-million phase two development, situated across the street, will include many multi-tenant retail buildings, and a number of outparcels for restaurants, banks, or other retail uses.
Our Take
We believe this ground-up development would be a significant contributor to the company’s top line. This is because the property enjoys decent trade area demographics. In fact, within a five-mile radius, there are around 180,000 people with an average household income of over $110,000. Also, the area includes the ExxonMobil global headquarters, along with new facilities for Noble Energy, Southwestern Energy, CHI St. Luke’s Health, raising chances of greater footfall at the property.
Further, Kimco remains on track with its strategic 2020 Vision, which envisages the ownership of premium assets in major metro markets in the U.S. and a reduction in the joint-venture portfolio. Such efforts augur well for long-term growth. However, earnings dilution led by high disposition activity remains a concern. Furthermore, dwindling mall traffic and store closures due to aggressive growth in online sales is a major headwind.
Kimco’s shares descended 15.6% over the past three months against the Zacks categorized REIT and Equity Trust – Retail industry’s decline of 4.1%.
Currently, Kimco has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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