While we continue working on our database we get the chance to look at charts as we run through various security pages and today we noticed that investors still hate the Kimco Realty (NYSE:KIM) preferreds. At this rate they may be a buy in the not distant future. KIM is an investment grade retail focused REIT.
In the normal flow of preferred pricing the shares are marked down on the ex-dividend date and generally the share price will ‘base’ and then shortly thereafter start to move gradually higher. NOT true in the case of the Kimco Realty 5.25% Cumulative Redeemable preferred (NYSE:KIM-M).
As you can see the shares were trading at $22.34/share the day before ex-date. On the ex-date they were marked down by the amount of the dividend (32.8 cents) which should have meant an opening price of around $22 and then a day or two of fluctuation followed by a slow climb higher.
In this case the shares have now fallen for the 4th consecutive day and closed at $21.55/share today. Current yield is 6.08% which for an investment grade preferred isn’t too far away from being a decent buy.
While the current yield is getting better it also goes to show what higher interest rates, a low coupon and being in a hated sector (retail related REITs) will get you. The other Kimco Realty preferreds look just as sickly.