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How Investors Can Gain from REITs

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    Kimco Realty CEO David Henry on the impact of retailers on the shopping-center industry’s outlook.

  • Duration 3:48
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Holiday shopping may have inspired you to make a little money back after investing right spent so much on presence now you -- to invest properly but retail -- over the past few months.

-- -- looking a little bit expensive compared to other alternatives like reits real estate investment trust.

That have exposure to the American consumer David Henry is Kimco Realty CEO -- was a REIT focused on retail.

They pay a juicy dividend that you've got a great story here because your stock is -- 18% year over year so you're looking pretty healthy right now.

The inference.

That because people seem to be doing OK as far shopping is concerned even -- shopper track today downgraded what they expect -- for Christmas sales.

But -- stores are doing well.

You're doing well because you can -- -- leases and you -- maybe -- a little bit more.

Exactly right the whole shopping center industry has been getting better over the last couple years.

Powered by their consumers but still spending so.

Retailers especially the national retailers are growing like crazy having stores and that's good for a shopping center -- language okay look at your stock -- -- along with some of the other ones Arcadia and some of the names that are out here in the space but specifically to you.

You're in a whole bunch of different regions on the map they say real estate is all really pretty localism -- which areas looking at best for you right.

What we are -- national company and that we concentrated on major markets like the New York City metro we have eighty shopping centers here in the New York City metro.

We have a 140 shopping centers in the Baltimore Washington Philadelphia.

Category we're about forty in South Florida.

-- about twenty in San Francisco so these are major cities live work and play is one market better than another.

-- the coasts in general are looking out looking pretty good although Chicago also was is it is a major metropolitan area Texas is a good strong market for us good growth good employment growth.

12% of your properties are in California you know California's.

Financial situation is pretty -- at the moment on the California following very closely are you seeing any erosion there any worrisome trends not so far -- again it's very hard to building California so if you have an existing shopping center it's probably doing OK if you're in some of those major markets like Los Angeles or -- but what's my next question a lot of these guys -- there in your space are are sprucing up existing malls.

There isn't as much outright building or are what you guys do what what is your choice here.

Well it's it's very simple the economics aren't there to justify -- new building new rents haven't recovered to the levels they were several years ago so in terms of buying land.

Getting in entitled getting its own and then building.

It just doesn't make economic sense it's much easier.

To renovate and expand something you already you know we're showing which retailers are in most of your properties and -- Wal-Mart Sears Home Depot PetSmart Costco Bed, Bath & Beyond -- -- -- and then you've got.

They they lower and dollar tree TJ Maxx and Ross.

I don't know you know.

It is one area doing better than another right now.

Well I think the analogy of a bar -- really works that the low when the discounters are doing very well and in the very high and the Neiman Marcus is -- doing well as the people in the middle that are still struggling for the right business model with our last thirty seconds you've got as we said a juicy dividend about four point 3% to.

But it's we should let people know taxed at a regular and come right so if something -- in the fiscal -- discussions and dividends or tend to hiking you're already getting taxed at what 35% exactly right so we will make -- student looked a little better as taxes on.

Ordinary C -- go up.

Absolutely that's an important point folks and it's certainly better than say for example your savings account.

Or a treasury yields -- -- point 3% -- what's not to love it's good to see you thank you live happy holidays thank you David.

Is with the Kimco Realty CEO David Henry thank you very much closing bell.

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