Kimco Realty Corp. (NYSE:KIM), North America’s largest publicly traded
owner and operator of neighborhood and community shopping centers, today
announced that it has acquired the remaining 60.9-percent interest in
the 12-property Kimco Income Fund I portfolio (KIF I) from its joint
venture partners for a gross price of $408.0 million, including the
assumption of $38.2 million in mortgage debt. As part of this
transaction, the company will repay $118.9 million of mortgage debt
encumbering nine of the properties. In addition, Kimco earned a cash
promote of approximately $18.8 million, which was used to reduce the
company’s overall cash payment to $251.4 million.
With the KIF I acquisition, Kimco continues to advance its
simplification goals that include reducing the number of institutional
joint ventures and partners, streamlining property ownership and
management, and adding high-quality retail assets to its wholly owned
portfolio. The addition of these properties, totaling 1.5 million square
feet, also strengthens Kimco’s footprint in key retail territories. KIF
I properties are primarily located in the Mid-Atlantic, Northeast and
Northern California regions of the U.S., in mature markets with high
barriers to entry and strong surrounding trade demographics.
This transaction furthers Kimco’s portfolio transformation goals with
these 12 grocery-anchored and necessity-based shopping centers that
feature strong portfolio metrics and above-average occupancy, rent and
household income levels. The high-quality nature of these assets is
demonstrated by a three-mile, average household income level of $98,000,
and an average base rent per square foot of $17.59, both of which exceed
Kimco’s current portfolio averages by 17 percent and 35 percent,
respectively. The KIF portfolio is 98 percent occupied and supported by
such notable national retailers as Royal Ahold, Safeway, Dick’s Sporting
Goods and TJX-Companies’ businesses. In addition, 10 of the 12
properties are anchored by the top one or two grocers in each respective
market.
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 publicly traded portfolio of neighborhood and
community shopping centers. As of December 31, 2013, the company owned
interests in 852 shopping centers comprising 125 million square feet of
leasable space across 42 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 which may 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 to the
company, (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) risks related to our international operations, (viii) the
availability of suitable acquisition and disposition opportunities, and
risks related to acquisitions not performing in accordance with our
expectations, (ix) valuation and risks related to our joint venture and
preferred equity investments, (x) valuation of marketable securities and
other investments, (xi) increases in operating costs, (xii) changes in
the dividend policy for the company’s common stock, (xiii) the reduction
in the company’s income in the event of multiple lease terminations by
tenants or a failure by multiple tenants to occupy their premises in a
shopping center, (xiv) impairment charges and (xv) unanticipated changes
in the company’s 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 (SEC)
filings. Copies of each filing may be obtained from the company or the
SEC.
The company refers you to the documents filed by the company from time
to time with the SEC, specifically the section titled "Risk Factors" in
the company's Annual Report on Form 10-K for the year ended December 31,
2013, as may be updated or supplemented in the company’s Quarterly
Reports on Form 10-Q and the company’s other filings with the SEC, which
discuss these and other factors that could adversely affect the
company's results.
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