Latest News

‘Load Up,’ Says Jim Cramer About These 2 Real Estate Stocks

S&P 500




Dow 30








Russell 2000




Crude Oil
















10-Yr Bond
















CMC Crypto 200




FTSE 100




Nikkei 225




There was no good news in the August inflation numbers. While the annualized rate did fall slightly from July, from 8.5% to 8.3%, it came in higher than expected – and worse, the core CPI rate, rather than dropping, increased to 6.3%. Consumers are struggling, and their pain is real.

But it’s not only consumers who are getting hit hard by inflation. Retailers are also feeling the strain, and they’re feeling it twice – from consumers, whose wallets are pinched and so are buying less, and from their own suppliers, who have been raising prices themselves. There’s no easy way out of this, as the Federal Reserve’s main anti-inflationary move, raising interest rates, will necessarily drive up the cost of credit, making goods more expensive – again – for both consumers and retailers, while also increasing the risk of a serious recession.

Investors can be forgiven if they just don’t know where to put their money in an environment like this. On this end, Jim Cramer, the well-known host of CNBC’s ‘Mad Money’ program, has some advice.

“While most retail stocks are horrible right now, the companies that own the best retail real estate are doing just fine.” Cramer noted.

Cramer elaborated with some further detail on the general position of commercial real estate companies: “Not many [retail] chains are in danger of going under, or even falling behind on their rent payments. We’re not looking at mass store closures, either… As long as their tenants stay in business, [real estate companies] won’t take much of a hit financially. To me, that looks like an opportunity.”

Now let’s take a look at two real estate stocks on Cramer’s buy list. We’ve used the TipRanks database to pull up the latest data on both, and we can check them out in conjunction with recent commentary from the Wall Street analysts.

Kimco Realty (KIM)

The first Cramer pick we’re looking at is Kimco Realty, a real estate investment trust (REIT) focused on commercial space. In fact, this company, based in Jericho, New York, is the largest owner and manager of grocery-anchored, open-air retail shopping centers. The company’s portfolio of properties focuses on the first-ring suburbs of major urban areas, especially in the Northeast, on the West Coast, and in the Southeast and Sun Belt regions. As of the end of 2Q22, Kimco owned interests in 533 such shopping centers with a total of 92 million leasable square feet.

Some key metrics from the company’s 2Q22 earnings release show both the quality of the portfolio and the continued demand for high-end retail space. First, Kimco saw its occupancy rate increase by 40 basis points to 95.1% in the quarter. On a year-over-year basis, Kimco’s occupancy rate has increased by 120 basis points.

High occupancy has led to plenty of cash generation, and Kimco saw its funds from operations (FFO) grow by 17.6% y/y to reach $246.6 million or 40 cents per diluted share. This metric is of especial interest for dividend investors, as FFO typically supports a REIT’s div payments. Kimco’s current dividend, declared in July for a September 23 payout, was set at 22 cents per common share. This annualizes to 88 cents, and gives a yield of 4.2%. Kimco has been gradually raising the dividend over the past two years.

In addition to Cramer, this stock has caught the eye of Baird’s 5-star analyst Wesley Golladay, who writes of Kimco, “The core business continues to improve with cash basis tenants back to normal levels and SS base rents accelerating. Tenant demand remains resilient and retention is high despite the softening economy. The company remains active on the external growth front with structured investments, acquisitions and acquiring JV interests in 2Q and 3Q. KIM is also finding ways to create value via buying back debt and preferred equity, taking out existing ground leases, and entitling land for residential units.”

In addition to his upbeat comments, Golladay rates this stock ab Outperform (i.e. Buy) and his price target, at $27, implies a one-year upside potential of ~30%. (To watch Golladay’s track record, click here)

Overall, there have been 16 analyst reviews set in recent weeks, including 11 to Buy and 5 to Hold for a consensus rating of Moderate Buy on the stock. The average price target of $24.45 suggests an upside of 17% from the trading price of $20.82. (See Kimco stock forecast on TipRanks)

Federal Realty (FRT)

Next up is Federal Realty, a REIT based in Rockville, Maryland. FRT’s focus is on shopping center properties – especially high-end retail properties – in the Mid-Atlantic and Northeast regions of the US. The company also has a presence in Florida, in the Great Lakes area, and in the Southwest, particularly in California. FRT saw $951 million in total revenue in 2021.

The company’s strong performance has continued this year. In its 2Q22 report, FRT noted a high occupancy rate of 92% for its portfolio properties, and a 94.1% lease rate. Year-over-year, these numbers represent increases of 240 and 140 basis points, respectively. Small shop leasing has proven particularly resilient since the height of the COVID crisis, and has risen 580 basis points since its pandemic low point. In the recent Q2, small shop leasing was up 360 basis point y/y to 89.3%.

FRT has also been moving to expand its footprint, and in Q2 spent some $434 million on 3 new shopping center assets. These new properties cover 93 acres of land and include more than 1 million square feet of leasable space. The company signed 132 new leases during the quarter, covering 562,111 square feet of its total space, making 2Q22 its ‘most active quarter on record.’

Federal Realty has one of the REIT industry’s strongest dividends, and has not missed a single payment since it started paying out 55 years ago. The company has raised its dividend in every one of those 55 years. The current dividend is $1.08 per common share, or $4.32 annualized, and yields 4.3%.

All of this points to a company with a sound footing in its niche, and that prompted Raymond James’ 5-star analyst RJ Milligan to rate FRT a Strong Buy along with a $140 price target. That figure indicates a potential for ~30% share growth in the coming year. (To watch Milligan’s track record, click here.)

Backing his bullish stance, Milligan writes: “The biggest fundamental takeaway is that the leasing pipeline is as robust as it has ever been – which should drive meaningful growth through 2023/2024… FRT (and the broader sector) has had a tough few months of trading as investors priced in a recession and retreated into more defensive REIT sub-sectors (such as net lease). With shares trading at just 17x the midpoint of 2022 guidance much of our thesis remains intact: shares continue to trade at a historic discount while the fundamental backdrop has never been better…”

All in all, the 16 recent analyst reviews on this one are evenly split, with 8 each Buys and Holds. This makes the consensus view a Moderate Buy. FRT shares are trading for $100.60, and their $117.78 average price target implies ~17% upside on the one-year horizon. (See FRT stock forecast on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.



REIT Store Capital agrees to be acquired by GIC and Oak Street in all-cash deal valued at $14 billion

Store Capital Corp. , a Scottsdale, Ariz.-based real estate investment trust, said Thursday it has agreed to be acquired by Singaporean sovereign fund GIC and Oak Street in an all-cash deal valued at about $14 billion. Oak Street is a unit of Blue Owl, a net lease investor. Under the terms of the deal, Store Capital shareholders will receive $32.25 per each share owned, equal to a premium of 20.4% over the stock’s closing price on Wednesday, and a premium of 17.8% over the 90-day volume weighted


How Can I Protect My Portfolio? Here Are 2 ‘Strong Buy’ Dividend Stocks Yielding at Least 8%

According to the latest CPI (consumer-price index) report, U.S. inflation cooled down slightly from July but not enough to appease the markets. Overall prices rose by 8.3% from the same period a year ago, slowing down from July’s 8.5% uptick and further down from June’s 40-year high showing of 9.1%. On a monthly basis, after plateauing in July, consumer prices rose by 0.1%. As the expectation was for a rise of 8.1% over last year and a drop of 0.1% compared to last month, the markets did what th

Motley Fool

Got $5,000? These 2 Dividend Stocks Haven’t Been This Cheap in Years

When dividend stocks dip in price and go on sale, they can create buying opportunities for long-term investors. Takeda Pharmaceuticals (NYSE: TAK) and Verizon Communications (NYSE: VZ) are both at multi-year lows, and here’s why they could be attractive options for a $5,000 investment. Takeda Pharmaceuticals is one of the largest drug companies in the world.

Insider Monkey

13 Best Semiconductor Stocks to Buy Now

In this piece, we will take a look at the 13 best semiconductor stocks to buy now. If you want to skip the details and jump ahead to the top five stocks in this list, then take a look at the 5 Best Semiconductor Stocks to Buy Now. The high technology sector is a double […]


3 ways retirees can make the most of their money in an unpredictable market

When stock market volatility and inflation persist, smart retirees seek ways to make the most of their money. “Even when the seas are rough, there are always little, tiny things you can do,” says certified financial planner Andrew Feldman, founder of AJ Feldman Financial, based in the Chicago area. “Rather than trying to squeeze more returns in a period like this, it’s better to reduce your expenses,” says Daniel Lee, director of financial planning and advice at BrightPlan, a financial wellness benefit provider based in San Jose, Calif.


How to Buy More than $10,000 in I Bonds Through This Loophole

In a world where the stock market is unpredictable and interest rates are rising, many investors are looking for someplace to put their money that is as close to risk-free as possible – even if it means forgoing the chance … Continue reading → The post How to Buy More than $10,000 in I Bonds Through This Loophole appeared first on SmartAsset Blog.

American City Business Journals

IBM offloads $16B in pension obligations to MetLife, Prudential

IBM, one of the Triangle’s largest employers, has transferred $16 billion in pension obligations to Prudential Financial (NYSE: PRU) and MetLife (NYSE: MET). IBM (NYSE: IBM), which has one of its largest campuses in Research Triangle Park, disclosed the news in a regulatory filing late Tuesday.


Ask an Advisor: My Kids Inherited $5 Million. How Should They Handle It?

My children have inherited $5 million of stock from their father (whose estate has not yet been dispersed after 11 months) leaving them with a 30% or so loss of value over which they have had no control. Is there … Continue reading → The post Ask an Advisor: My Kids Inherited $5 Million. How Should They Handle It? appeared first on SmartAsset Blog.


2 REITs That Are NOT Paying Dividends

The idea is “growth only” for these real estate investment trusts (REITs), none of which pay dividends. Investors in these REITs anticipate greater funds from operations without the worry about interest rate moves that dividend-paying funds have. Money being made stays with the company so that it can increase profitability and enhance long-term value. These investments are not for those interested in regular quarterly or monthly payments, a feature of most REITs. Will the underlying value of the

Bad News Is Piling Up for Chip Makers

The months follow one another and look alike for the manufacturers of semiconductors. For months, fears of a hard landing in the economy due to aggressive interest rate hikes by the Federal Reserve to fight inflation at its highest in 40 years have been a headache since the beginning of the year for Nvidia , Advanced Micro Devices , Intel , Micron and Qualcomm . Nvidia shares have lost more than 13% since the end of August, while AMD shares, which had rebounded well after the release of the second quarter earnings, have fallen by 9.2% since the end of August.

Motley Fool

Want $1,000 in Passive Income? Buy 211 Shares of This Dividend Stock.

After a hotter-than-expected August inflation report, it is clear that the market volatility investors have become accustomed to this year is not done just yet. With the return of volatility, investors might want to once again think about where they can invest their money for a steadier stream of income. Dividend stocks are certainly one category that fits this need, as long as companies can maintain their payouts.

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News