A Seeking Alpha article earlier this week said that “many investors… will want to own blue chip REITs,” calling them a “financially sound, ‘safe’ investment.” The article went on to use Kimco, the “king of the jungle” in the retail sector with 946 properties overall, including many in the Greater Philadelphia region, as an example of such a REIT.
The author points to seven standards by which REITs should be measured, and explains in detail how Kimco excels in each of these areas. The seven standards are as follows, and a link to the story is below.
1. Outstanding proven management
2. Balance sheet strength
3. Access to capital to fund growth
4. Sector and geographical focus
5. Substantial insider ownership
6. Low payout ratio
7. Absence of conflicts of interest
The article concludes by saying “Kimco is an established blue chip REIT that has a long track record of skillfully managing risk and generating profits. This differentiation is what separates Kimco as the best – from all the rest.”