Analyst Downgrades Kimco Realty To 'Hold'

BOSTON (AP) — A Benchmark Co. analyst on Tuesday cut his rating on Kimco Realty Corp. to "Hold" from "Buy," saying the real estate investment trust faces challenges reducing its debt amid a retail business slump.

Analyst Bill Acheson said in a research note that he sees "some pricing risk" for Kimco's stock. He cited "fairly heavy lifting" that Kimco has to do to reduce risks from borrowing.

Acheson also cited Kimco's efforts to refocus on its core business as an owner and operator of community and neighborhood shopping centers, a process he said "will involve the sale of a large number of the company's more eclectic noncore investments.

"Moreover," he added, "given that the retail vista is still very tenuous at best, we feel that valuation is pretty full at this juncture."

New Hyde Park, N.Y.-based Kimco owns and operates shopping centers, with owned interests in 1,466 retail properties across 45 states, Puerto Rico, Canada, Mexico and South America, as of June 30.

Its shares rose 32 cents, or 2.6 percent, to $12.23 in afternoon trading.