Kimco CEO Says Focus is on Capital Recycling

11/10/2014 | By Allen Kenney

David Henry, CEO of Kimco Realty Corp. (NYSE: KIM), joined for a CEO Spotlight video interview at REITWorld 2014: NAREIT’s Annual Convention for All Things REIT at the Atlanta Marriott Marquis.

Kimco has gone through a high volume of property acquisitions and dispositions in 2014.

“Like most of the industry post-recession, we have been all about recycling,” Henry said. “We’re trying to sell the bottom parts of our portfolio and add high-quality properties.”

Current capitalization rates make now a good time to sell assets, Henry said. He noted that Kimco is having success buying out institutional partners in assets that they already own.

Henry also offered some insights into the redevelopment process for his company. Kimco relies on its local employees to assess the redevelopment potential of the company’s assets.

“Spending money on redevelopment gives us the highest return on capital because if you think about it, we already own the land and the property. The infrastructure is already there. If we can add a few stores or enlarge the property or renovate it and get higher rents, it makes all the sense in the world,” Henry said.