Kimco Realty Corp. /zigman2/quotes/202836571/composite KIM -0.57% announced Thursday an agreement to buy Weingarten Realty Investors /zigman2/quotes/208519310/composite WRI -0.80% in a cash and stock deal that values the owner of grocery-anchored shopping centers at about $3.9 billion. Kimco's stock was up 0.2% in premarket trading and Weingarten shares are still inactive. Under terms of the deal, each Weingarten share will be exchanged for 1.408 new Kimco shares and $2.89 in cash. Based on Wednesday's closing prices, that values Weingarten's stock at $30.31 each, a 10.9% premium. After closing, which is expected to occur during the second half of 2021, Kimco shareholders are expected to own 71% of the combined company. "This combination reflects our conviction in the grocery-anchored shopping center category, which has performed well throughout the pandemic and provides last mile locations that are more valuable than ever due to their hybrid role as both shopping destinations and omnichannel fulfillment epicenters," said Kimco Chief Executive Conor Flynn. Year to date, Kimco's stock has run up 29.8% and Weingarten's stock has climbed 26.2%, while the SPDR Real Estate Select Sector ETF /zigman2/quotes/207325179/composite XLRE +0.05% has advanced 11.0% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.25% has gained 9.8%.