Why Kimco Realty Stock Popped 10% at the Open Today
Shares of real estate investment trust (REIT) Kimco Realty (NYSE: KIM) quickly jumped 10% in the first half hour of trading on April 28. Although there was no specific news related to the shopping center REIT, the move by several states to allow non-essential businesses to open again has been viewed very positively by investors. And for good reason.
Roughly 75% of the rentable square feet in Kimco's centers is leased out to large tenants that are, for the most part, essential businesses (think grocery stores and the like). That's the good news. The bad news is that these tenants only account for around 60% of the REIT's rent roll. The rest of the top line is tied to mid-size and smaller shops, where the mix leans toward non-essential. For example, around 30% of rent comes from either local shops or small national chains, including a lot of restaurants. In other words, Kimco's rent roll could be materially impacted by COVID-19 related closures when it reports first-quarter earnings.
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Source Fool.com
