NEW YORK (TheStreet) -- Wal-Mart (WMT) is the world's largest retailer, operating 3,029 supercenters (includes sizable grocery departments), 629 discount stores, 611 Sam's Clubs and 210 Neighborhood Markets in the U.S., plus 5,651 foreign stores, mainly in Latin America, with the balance in Asia, Canada and the U.K.
Wal-Mart is DDR's largest tenant with around 80 leases representing around 5.1 million square feet of space. Based on annual base rent, Wal-Mart pays DDR around 3.1% of DDR's overall revenue (based onthe second quarter of 2012).
Kimco Realty ( KIM), based in New Hyde Park, N.Y., has a market cap of $ 8.269 billion and a current dividend yield of 3.74%. The company is extremely well capitalized and like many other shopping center REITs, Kimco has been focusing on recycling assets. Kimco also operates internationally with 926 properties in 44 states, Canada, Mexico, Brazil, Chile and Puerto Rico. Last November Kimco celebrated its 20th anniversary as a public company and since its founding in 1958, the retail REIT has evolved into a diversely risk-aligned investment platform. Kimco has a well-balanced tenant portfolio that includes many leading retailers such as Home Depot, TJ Maxx, Wal-Mart, Kohl's, PetSmart and Costco. Wal-Mart is Kimco's third-largest tenant (based on revenue) with around 60 leases in the Kimco portfolio. This translates into around 4.045 million square feet of space (leased to Wal-Mart) and around 2.5% of Kimco's annual base rental income. The power of a repeatable model lies in the way it turns the sources of differentiation into routines that everyone can understand. In the case of Wal-Mart, the prime source of the company's competitive advantage is being able to maintain that differentiation that led to the company's initial success. In the case of DDR Corporation and Kimco Realty, the same diversification that produces healthy dividends provides the differentiation. By building their existing investment strategies, DDR and Kimco should be able to maintain and grow revenue and provide investors with sound income and dividends. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.