Wolfe Research Upgrades Kimco Realty (KIM) on Strong Fundamentals and Lower Refinancing Risk

Kimco Realty Corporation (NYSE:KIM) ranks among the best real estate and realty stocks to invest in according to hedge funds. On June 22, Wolfe Research raised Kimco Realty Corporation (NYSE:KIM) to Outperform from Peerperform and set a $28 price target on the company’s shares. The upgrade came as the firm highlighted robust fundamentals and reduced refinancing constraints from past low-interest Weingarten loans.

In addition, on June 11, Stifel increased its price target on Kimco Realty Corporation (NYSE:KIM) to $28 from $25.75, while keeping a Buy rating on the company’s shares. The firm made the move after Kimco Realty Corporation (NYSE:KIM) announced it had priced an issue of exchangeable senior unsecured notes due 2031 with a principal amount of $525 million.

The notes have an annual interest rate of 3.50% and are payable semi-annually. Early buyers were given the option to purchase an extra $75 million in principal amount of notes. Kimco estimates net proceeds of $513.5 million, or $587 million, provided the first buyers’ option is completely utilized.

Kimco Realty Corporation (NYSE:KIM) is a real estate investment trust (REIT) that owns and operates open-air, grocery-anchored shopping centers and mixed-use properties across the United States.

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