Kimco Realty Intrinsic Value Calculation – Forsta AP Fonden reduces stake in Kimco Realty Corp by over 50% in Q3, according to Form 13F
October 31, 2024
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Kimco Realty ($NYSE:KIM) Corp is a real estate investment trust (REIT) that primarily focuses on owning and operating open-air shopping centers in the United States. Kimco’s tenants include major retailers such as Target, Walmart, and Home Depot. In its latest Form 13F filing, it was revealed that Forsta AP Fonden, a Swedish pension fund, significantly reduced its stake in Kimco Realty Corp during the third quarter of this year. This move by Forsta AP Fonden is significant as it represents a shift in its investment strategy. One possible reason for Forsta AP Fonden’s divestment could be the current state of the retail industry. With the rise of e-commerce and changing consumer preferences, traditional brick-and-mortar retailers have been struggling. This has had a direct impact on companies like Kimco Realty Corp, which rely on rental income from these retailers. As a result, the stock price of Kimco has been relatively flat over the past year. The closure of non-essential businesses and social distancing measures have led to a decrease in foot traffic at retail properties, which could have affected Kimco’s rental income.
However, it is worth noting that other institutional investors, such as Vanguard Group and BlackRock Inc., have increased their stakes in Kimco during the same quarter. This suggests that there may still be confidence in the company’s long-term prospects. It could be a reflection of the challenges currently facing the retail sector and the uncertainty surrounding Kimco’s future performance. However, with other major investors continuing to hold or even increase their positions in the company, it remains to be seen how this will impact Kimco’s stock in the long run.
Analysis – Kimco Realty Intrinsic Value Calculation
After carefully analyzing the financials of KIMCO REALTY, I have determined that the intrinsic value of their share is approximately $24.3. This valuation was calculated using our proprietary Valuation Line, which takes into account various financial metrics such as revenue, earnings, and cash flow. Currently, KIMCO REALTY’s stock is trading at $24.03, which is only a slight discount of 1.3% from our calculated intrinsic value. This suggests that the stock is currently trading at a fair price and is slightly undervalued. Overall, our analysis indicates that KIMCO REALTY is a solid investment opportunity with a fair valuation. However, as with any investment, it is important to conduct further research and consider other factors before making any decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kimco Realty. More…
| Total Revenues | Net Income | Net Margin |
| 1.78k | 629.25 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kimco Realty. More…
| Operations | Investing | Financing |
| 1.04k | -63.22 | -982.73 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kimco Realty. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 18.27k | 8.55k | 14.17 |
Key Ratios Snapshot
Some of the financial key ratios for Kimco Realty are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 32.7% |
| FCF Margin | ROE | ROA |
| – | – | – |
Peers
Kimco Realty Corp is one of the largest real estate investment trusts in the United States. The company owns and operates open-air shopping centers. Kimco’s competitors include Brixmor Property Group Inc, Morguard North American Residential Real Estate Investment Trust, and Strategic Realty Trust Inc.
– Brixmor Property Group Inc ($NYSE:BRX)
Brixmor Property Group Inc is a publicly traded real estate investment trust that owns, operates, and leases a portfolio of open-air shopping centers in the United States. As of December 31, 2020, the company’s portfolio consisted of 468 shopping centers spanning approximately 75.4 million square feet of gross leasable area. Brixmor’s properties are leased to a diversified mix of national, regional, and local tenants. Notable tenants include grocery stores, discount stores, restaurants, entertainment venues, and service providers.
– Morguard North American Residential Real Estate Investment Trust ($TSX:MRG.UN)
Morguard North American Residential Real Estate Investment Trust is a real estate investment trust that invests in, owns, and operates a diversified portfolio of residential properties in Canada and the United States. The company has a market capitalization of $591.44 million as of 2022.
– Strategic Realty Trust Inc ($OTCPK:SGIC)
Strategic Realty Trust Inc is a real estate investment trust that owns and operates a portfolio of properties in the United States. The company has a market cap of 7.63M as of 2022. Strategic Realty Trust Inc was founded in 2010 and is headquartered in New York, New York.
Summary
Forsta AP Fonden, a Swedish pension fund, reduced its ownership of Kimco Realty Corp by over half during the third quarter of the year. This move is reflected in the fund’s most recent Form 13F filing. It is likely that Forsta AP Fonden made this decision after conducting an investing analysis on Kimco Realty Corp, possibly due to factors such as changes in the real estate market or the company’s financial performance. This reduction in stake could have implications for the overall valuation and future prospects of Kimco Realty Corp, as well as for other investors considering investing in the company.
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