The following comparison tracks the performance of KIM and BRX over the past 10 years. A decade ago, I invested in both, with KIM widely regarded as the stronger franchise and commanding a higher valuation than BRX. However, I was drawn to BRX’s strategy of prioritizing redevelopment, self-funded capital expenditures, and disciplined growth.
Until 2023, both stocks traded in lockstep, but by mid-2024, BRX began to diverge, showing greater resilience relative to KIM. Notably, both outperformed $VNQ after the Fed began raising interest rates.
KIM pursued aggressive expansion post-COVID, acquiring Weingarten in 2021 and RPT in 2024. While these mergers increased share count and revenue, they did not translate into meaningful cash flow growth per share or higher dividends for shareholders. Currently, KIM offers a dividend yield of 4.71%, slightly higher than BRX’s 4.37%. The lower dividend yield of BRX is a reflection of the higher quality of the franchise.
Both companies maintain solid dividend coverage and are well-positioned to withstand market volatility, including potential tariff-related disruptions.
BRX, in particular, is worth watching. If its price drops to the $20 range, it could present an attractive buying opportunity. At that level, factoring in dividends, the stock could deliver a 10% CAGR over the long term. Consider holding it in an IRA to maximize tax efficiency on dividends