Kimco Realty Corporation (KIM - Analyst Report) recently announced that it has entered into a joint venture with General Growth Properties Inc. (GGP - Analyst Report) for developing the Owings Mills Mall in Owings Mills, Maryland, in northwest Baltimore County. The 25-year old, 1 million square foot mall was previously owned by General Growth and the latter seeks to redevelop the property jointly with Kimco.
As per preliminary redevelopment plans, the mall will be completely renovated with a new format and new tenants. The plans also include new exterior facing retail, junior boxes, big boxes and department stores.
Baltimore is one of the core markets for Kimco and following the transformation of the Owings Mills Mall into a vibrant shopping center, the company will further consolidate its position in the region. Besides being a more viable center, which better meets the needs and wants of the residents, the center is also expected to generate new jobs and quality services in the region.
General Growth is a publicly traded real estate investment trust (REIT) that has ownership and management interest in 167 regional and super regional shopping malls in 42 states.
Kimco is a real estate investment trust that has a geographically diverse portfolio concentrated mostly in high-income, high-growth areas being the largest publicly traded owner and operator of neighborhood and community shopping centers in the U.S.
Kimco has managed to establish a strong track record of conservative capital management and also maintains strong investment-grade debt ratings. Furthermore, the company has continuous access to capital through debt or equity financing, that provide the necessary resources to expand and develop its business.
Kimco currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock.