Kimco Realty Corp. (NYSE: KIM) today announced the execution of a
purchase and sale agreement to acquire a 24-property retail portfolio in
New England for $270 million, including the assumption of $121.5 million
of mortgage debt. With the addition of this 1.4-million-square-foot,
96-percent-occupied portfolio, Kimco will gain 17 properties in the
Boston metropolitan market with anchor tenants including Whole Foods,
Trader Joe’s, Lowes, Kohl’s, Petco, Pier 1 Imports, Aldi Supermarket,
CVS and Walgreens. This portfolio represents a significant expansion of
the company’s existing portfolio in this metropolitan area. In addition,
the portfolio includes four other Massachusetts shopping centers, three
of which are near Cape Cod, two high volume Kings Supermarket-anchored
centers in northern New Jersey in close proximity to New York City, and
one Wal-Mart-anchored center in Danbury, Conn. Closing is subject to
customary conditions, including lender approvals, with Kimco expecting
this transaction to be completed during the first quarter of 2014.
“This acquisition is in line with our communicated strategy of focusing
on key territories which boast solid demographics and growth potential,”
said David Henry, Kimco’s president and CEO, adding, “The assets are
largely located in the high barrier to entry Boston market with
attractive infill locations and a large consumer base.”
Several centers in the portfolio have more than 200,000 local residents
within a three-mile range, including those strategically located near
the colleges and universities of Boston College, Boston University,
Harvard and MIT. The average population of these 24 assets is 25 percent
higher than Kimco’s collective retail portfolio. The high density
surrounding these properties has led to strong tenant sales volumes
averaging $500 per-square-foot for those retailers that report sales.
“Kimco remains committed to transforming its portfolio and we are
excited about the long-term growth opportunity this acquisition
provides,” commented Conor Flynn, Kimco’s COO.
The 24-property New England portfolio features a diverse tenant mix that
fits Kimco’s focus on grocery, necessity-based and discount retail
anchored by strong brands. Anchor tenants comprise 81 percent of base
rents.
HFF, led by senior managing director Jim Koury, marketed the portfolio
exclusively on behalf of the seller.
About Kimco
Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT)
headquartered in New Hyde Park, N.Y., that owns and operates North
America’s largest portfolio of neighborhood and community shopping
centers. As of June 30, 2013, the company owned interests in 874
shopping centers comprising 128 million square feet of leasable space
across 43 states, Puerto Rico, Canada, Mexico and South America.
Publicly traded on the NYSE since 1991, and included in the S&P 500
Index, the company has specialized in shopping center acquisitions,
development and management for more than 50 years. For further
information, please visit www.kimcorealty.com,
the company’s blog at blog.kimcorealty.com,
or follow Kimco on Twitter at www.twitter.com/kimcorealty.
SAFE HARBOR STATEMENT
The statements in this news release state the company's and management's
intentions, beliefs, expectations or projections of the future and are
forward-looking statements. It is important to note that the company's
actual results could differ materially from those projected in such
forward-looking statements. Factors that could cause actual results to
differ materially from current expectations include, but are not limited
to, (i) general adverse economic and local real estate conditions, (ii)
the inability of major tenants to continue paying their rent obligations
due to bankruptcy, insolvency or a general downturn in their business,
(iii) financing risks, such as the inability to obtain equity, debt, or
other sources of financing or refinancing on favorable terms, (iv) the
company’s ability to raise capital by selling its assets, (v) changes in
governmental laws and regulations, (vi) the level and volatility of
interest rates and foreign currency exchange rates, (vii) the
availability of suitable acquisition and disposition opportunities,
(viii) valuation of joint venture investments, (ix) valuation of
marketable securities and other investments, (x) increases in operating
costs, (xi) changes in the dividend policy for our common stock, (xii)
the reduction in our income in the event of multiple lease terminations
by tenants or a failure by multiple tenants to occupy their premises in
a shopping center, (xiii) impairment charges, and (xiv) unanticipated
changes in our intention or ability to prepay certain debt prior to
maturity and/or hold certain securities until maturity. Additional
information concerning factors that could cause actual results to differ
materially from those forward-looking statements is contained from time
to time in the company's Securities and Exchange Commission filings,
including but not limited to the company's Annual Report on Form 10-K
for the year ended Dec. 31, 2012. Copies of each filing may be obtained
from the company or the Securities and Exchange Commission.
The company refers you to the documents filed by the company from time
to time with the Securities and Exchange Commission, specifically the
section titled "Risk Factors" in the company's Annual Report on Form
10-K for the year ended Dec. 31, 2012, as may be updated or supplemented
in the company’s Form 10-Q filings, which discuss these and other
factors that could adversely affect the company's results.
Copyright Business Wire 2013