Kimco Trumpets Results, Ignores Stock Slide

In other good news for the trust, same store, net operating income for the quarter grew by 4%, and the company posted a 95.8% occupancy rate in its core holdings. Kimco's shopping center portfolio includes 959 properties, with 867 in the US and Puerto Rico, 38 in Canada, 50 in Mexico and four in Chile. During Q2 2007, the company signed a total of 259 leases totaling 947,000 sf, with an average increase in base rent on the new leases signed of 11.3%.

David Henry, chief investment officer, said during the call that the company has received a boost from its Canada holdings, thanks to the weak US dollar and solid investment fundamentals in the country. Also, the company's activity continues to accelerate, he said. "We're very proud to the have the largest retail portfolio in Mexico with 32 shopping centers and 18 development projects," costing about $600 million with various partners, he said. "The competition in Mexico is heating up, as new capital sources identify Mexico as an investment opportunity. However, we have a substantial head start."

The central states are a different story for the company, however. The company believes that demographics in the Midwest are not as valuable as in other areas of the company, said Milton Cooper, chairman and CEO, during the call. "By and large, our shopping centers are in growth areas, and rents are below market," Cooper said. "We continue to wean our portfolio of those properties with limited growth potential or properties where we perceive risk."

During the quarter, the company bought nine properties totaling 1.8 million sf for about $509.9 sf, including Flagler Plaza in Miami and Suburban Square in Ardmore, PA. The company also has more than 50 active redevelopment projects, including those in Canada and Mexico. Redevelopment continues at the $80 million, 650,000 sf Westlake lifestyle center in Daly City, CA. Other projects include the $50 million Factoria Mall in Bellevue, WA and Grant Square, a $75 million mixed-use project in Orlando.

The company's stock price was at $36.60 at the close of trading Friday. The stock was trading at $50 at the beginning of March. "We are at a discounted value, but we are able to create deals," Cooper said.