Strip center REITs 2026: BRX, KIM, REG, PECO compared

2026-06-23 · By Lubin Danilo, founder of Lubin Investment

Brixmor (BRX), Kimco (KIM), Regency Centers (REG), and Phillips Edison (PECO) are the 4 main US grocery-anchored strip center REITs. Our screener rates all 6/10, similar profile: high FCF margin, high debt, limited growth, prices well above our targets.

What is a strip center REIT?

A strip center is an open-air neighborhood shopping center anchored by a grocery store (Kroger, Publix, Whole Foods, Walmart Neighborhood). Adjacent shops (hair salons, pharmacies, restaurants, fitness) benefit from traffic generated by the grocery anchor. This sub-sector is known as 'e-commerce resistant', you can't download a pizza or a haircut.

Data ranking of the 4 main players

Criterion	BRX	KIM	REG	PECO
Lubin screener score	6/10	6/10	6/10	6/10
Current FCF multiple	14.8×	15.4×	17.8×	17.2×
Current price	$31.18	$24.69	$77.36	$41.09
Lubin entry target	$15.94	$12.05	$40.15	$21.12
Price vs target	+96%	+105%	+93%	+95%
Market cap	~$8B	~$17B	~$14B	~$5B
Number of properties	~360	~520	~480	~290
Occupancy rate	~95%	~96%	~95%	~98%

Differentiated profiles: from Brixmor to Regency

Brixmor (BRX) focuses on secondary markets and transforming obsolete centers into modern assets, value creation through renovation. Kimco (KIM) is the largest by cap, heavy coastal US presence. Regency Centers (REG) is the most premium, higher-quality tenants (Whole Foods, Publix), affluent markets. Phillips Edison (PECO) is the most concentrated on grocery anchors, 98% of properties have a supermarket as anchor, highest in the category.

Why these REITs resist e-commerce

Grocery-anchored strip centers have shown remarkable resilience to e-commerce. Vacancy rates are at historic lows (~4%) in 2026, better than malls and high streets. Proximity food, dining, personal services (hair, beauty, medical), and fitness can't be replaced by home delivery. This 'necessity-based retail' is one of the few real estate sub-sectors that has resisted Amazon.

FAQ

Among the 4, which would you recommend?

For highest grocery/anti-Amazon exposure: PECO (98% grocery-anchored). For liquidity and diversification: KIM (the largest). For tenant quality and market quality: REG. For value-add renovation potential: BRX.

Are strip centers truly e-commerce resistant?

Largely yes. Grocery-anchored retail has historically high occupancy (~95-98%) even post-COVID. Amazon Fresh hasn't cannibalized local grocers. Service tenants (medical, beauty) are inherently in-person.

Do these REITs pay good dividends?

All pay quarterly dividends with 3-5% yields. All four maintained or grew dividends post-COVID. Their balance sheets are solid compared to declining malls.

How do strip centers compare to triple-net REITs?

Strip centers have slightly less predictable occupancy (renovation, tenant turnover) but greater rent growth opportunities. Triple-net REITs (O, NNN) have more predictable income (long leases, fixed indexed rents). Both sub-sectors score similarly (6/10) in our screener.

About the author

Written by Lubin Danilo, founder of Lubin Investment. A self-taught individual investor, I find fundamental analysis fascinating, and it has delivered excellent results. For three years now, my performance has beaten the S&P 500. But analyzing every stock took too much time: sites with incomplete data, calculation methods and criteria never aligned with mine. And spotting the best stocks was just as time-consuming, even with my own well-defined checklist. So I put my software development background to work to build this software, base my investment strategy on its results, and share it with people who share the same passion as me. It judges a company's quality and its price separately, using criteria drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran).