CO COST Costco Wholesale Corporation Loading... : Bullish and Bearish Analyst Opinions

Kimco sold a portfolio of Costco-anchored properties at sub-6% unlevered IRRs because the leases have CAGRs under 1% and tenant control for decades, using proceeds to acquire higher-growth grocery assets in Florida with 3.5%+ CAGRs, resulting in a 9%+ unlevered IRR. — This highlights the peak pricing for low-growth, single-tenant assets and shows landlords like Kimco are monetizing them to fund higher-growth opportunities.