Kimco Realty Has All The Ingredients Of Something Special

Dec. 27, 2018 9:22 AM ETKimco Realty Corporation (KIM)100 Comments


  • I knew my uncle was a savvy investor, but I never imagined that he would teach me the concept of being a patient value investor.
  • I know what you’re thinking. where is the "my oh my, Kimco is a strong buy" performance?
  • After all, my strong buy picks are supposed to generate impressive 25% annualized returns.
  • This idea was discussed in more depth with members of my private investing community, Rhino Real Estate Advisors. Get started today »

Yesterday, I commenced a series of articles aimed to "provide deep-level research on REITs that have the widest moats". In my quest to find the best moat-worthy REITs, I decided to focus on the concept of "competitive advantages" as explained by Heather Brilliant and Elizabeth Collins, co-authors of Why Moats Matter:

"…economic moats generally stem from at least one of five sources of competitive advantage - cost advantage, intangible assets, switching costs, efficient scale, and network effect".

The key to my year-ending research (on wide moat REITs) has two primary purposes: (1) uncover REITs that "can fend off competition and earn high returns on capital", and (2) uncover REITs that are trading at a discount with the potential to compound over times.

Around thirty years ago (in 1988), I found out that I had inherited shares in a blue-chip utility known as Consolidated Edison (ED). Up until I graduated from college, I had no clue that my uncle had gifted 100 shares (with a cost basis of ~$2.00 per share). Now, over 43 years later, the return on investment is over ~$7,500 (~90% annualized price appreciation, excluding dividend reinvestment). (Note: my uncle gifted the shares to me in 1974 when I was in the third grade).

I knew my uncle was a savvy investor, but I never imagined that he would teach me the concept of being a patient value investor. Over the years, I have become increasingly skilled at selecting sound real estate securities, as Benjamin Graham explained (in The Intelligent Investor):

"The security analyst deals with the past, the present, and the future of any given security issue. He describes the business, he summarizes its operating results and financial position, he sets forth its strong and weak points, its possibilities and risks; he estimates future earning power under various assumptions, or as a 'best guess'. He makes elaborate

This article was written by

Brad Thomas profile picture
Author of iREIT on Alpha
The #1 Service For Safe and Reliable REIT Income

Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 15,000 investors around the world. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps.

The WMR brands include: (1) iREIT on Alpha (Seeking Alpha), and (2) The Dividend Kings (Seeking Alpha), and (3) Wide Moat Research. He is also the editor of The Forbes Real Estate Investor

Thomas has also been featured in Barron's, Forbes Magazine, Kiplinger’s, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox. 

He is the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 (based on page views) and has over 108,000 followers (on Seeking Alpha). Thomas is also the author of The Intelligent REIT Investor Guide (Wiley) and is writing a new book, REITs For Dummies. 

Thomas received a Bachelor of Science degree in Business/Economics from Presbyterian College and he is married with 5 wonderful kids. He has over 30 years of real estate investing experience and is one of the most prolific writers on Seeking Alpha. To learn more about Brad visit HERE.

Disclosure: I am/we are long KIM, ED. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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