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Kimco is a last-mile real estate investment trust specializing in the acquisition, development, and management of open-air shopping centers. The company's portfolio consists of 567 U.S. shopping centers and mixed-use assets. Prior to the 1Q24 merger, New York and California accounted for about 28% of all properties. Currently, about 80% of annual base rents come from the REIT's top 18 metropolitan markets. Approximately 87% of GLA is leased to anchor stores and current anchor occupancy is 98%. Anchor stores also include discount clothing retailers, and T.J Maxx is the company's top tenant, accounting for less than 4% of GLA. The REIT's largest grocery tenant is Amazon/Whole Foods with 32 locations. The company recognizes the value of multi-use retail destinations that include smaller tenants, and has maintained relationships with fast-food and coffee retailers. It has shopping centers in 39 states, with a focus on the last-mile suburbs of major metro coastal markets, as well as Sunbelt locations. In August 2021, it purchased Weingarten Realty for approximately $3.9 billion, becoming the largest grocery-anchored shopping REIT by market capitalization. The acquisition also gave the company a presence in Texas. In January, Kimco purchased RPT Realty in an all-stock transaction in March 2024. Kimco had a significant equity stake in Albertsons, and its balance sheet has benefited from the Kroger-Albertsons merger. In January 2023, the company restructured with an internal merger into an umbrella partnership REIT, or UPREIT. The new parent holding company, New Kimco, is the publicly traded company. KIM shares are included in the S&P 500. The company's market cap is $16 billion.

The major market indices are sharply lower and momentum is downward at midday. The Nasdaq is taking the hardest hit. This follows the much-anticipated August Jobs report out this morning. Nonfarm payrolls came in at 142,000 for August, below expectations of 165,000. The unemployment rate edged back down to 4.2% after the surprise jump to 4.3% last month. The markets will continue to spend the day interpreting what this report signals for the health of the U.S. labor market, and how the Fed might interpret the bigger picture of the health of the economy. We at Argus forecast a 25 bps rate cut this month, followed by equal size cuts in November and December, so three cuts in total this year. We believe recent data reinforces our forecast.

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

Uniti is a REIT with about 140,000 route miles of fiber in the US, primarily in the Southeast. It has agreed to merge with Windstream, which will result in Uniti giving up its REIT status and adding a consumer telecom business line. Uniti’s business currently consists exclusively of fiber leasing to enterprises. Windstream currently leases the Uniti network and makes up the bulk of Uniti’s revenue and profits. The combined firm will own 217,000 route miles of fiber and pass 4.3 million households and 150,000 commercial buildings, mostly in less populated markets in the Southeast. The firm will continue to offer fiber access to enterprises, as Uniti currently does, but residential telecom services will become its largest revenue stream.