Kimco Realty Corp. (NYSE:KIM), North America’s largest publicly traded
owner and operator of neighborhood and community shopping centers, today
announced its transaction activity for the first quarter of 2014. During
this period, the company continued to simplify its business model with
the acquisition of three properties from a joint venture and the
disposition of a nine-property retail portfolio in Mexico. Kimco also
continued its portfolio transformation and redevelopment activity by
purchasing two large, well-positioned properties in North Carolina. Key
transactions in first quarter of 2014 are summarized below.
ACQUISITIONS
In the first quarter, Kimco acquired five high-quality shopping centers
totaling more than 900,000 square feet for a gross purchase price of
$216.0 million, including $113.0 million of mortgage debt. Details of
these transactions are as follows:
-
Crossroads
Plaza (Cary, N.C.) – Acquired a 489,000-square-foot
dominant power center located in the community of Cary, N.C., for
$91.0 million, including $72.3 million of mortgage debt. The 93.1%
occupied center is supported by a well-known list of national anchor
tenants, including Ross Dress for Less, Home Goods, Marshalls, Stein
Mart, Michaels, Best Buy, Petco, Old Navy, Five Below and Ulta, as
well as shadow anchors Toys “R” Us / Babies “R” Us and DSW Shoe
Warehouse. With the acquisition of Crossroads Plaza, Kimco has nine
shopping centers, comprising 2 million square feet, in the Raleigh
metropolitan statistical area (MSA), which is ranked as one of the
fastest-growing MSAs by Forbes.
-
Quail
Corners (Charlotte, N.C.) – Purchased a controlling interest
in a 110,000-square-foot, grocery-anchored shopping center located in
Charlotte, N.C., for $31.8 million, including $17.4 million of
mortgage debt. The recently renovated shopping center is 94.5%
occupied and is anchored by a Harris Teeter grocer. Quail Corners,
located in an affluent area of Charlotte, where the average household
income exceeds $100,000 within the immediate trade area, offers an
additional value creation opportunity with a fully entitled
undeveloped outparcel.
-
Also, as previously announced, the company continued its
simplification strategy of reducing the number of properties in joint
ventures by acquiring the remaining 89% equity interest in three
grocery-anchored shopping centers from an institutional joint venture
partner for a gross purchase price of $93.2 million, including $23.3
million of mortgage debt. The three properties, totaling 316,000
square feet, are located in the greater Baltimore area and have a
pro-rata occupancy level of 97.6% and an average base rent of $19.49
per square foot.
In September 2010, Kimco initiated its portfolio transformation efforts
to sell non-core, limited-growth properties in favor of acquiring
high-quality shopping centers in the company’s key markets. Since the
start of this initiative, Kimco has acquired a total of 87 U.S. retail
properties, comprising 11.5 million square feet, for a gross purchase
price of $2.1 billion, including $827.1 million of mortgage debt. These
properties have, on a pro-rata basis, an average occupancy of 96 percent
and are supported by excellent demographics, including an average
household income of $91,000 within a three-mile radius.
DISPOSITIONS
United States
During the first quarter, Kimco sold ownership interests in 11 U.S.
properties (seven wholly owned and four unconsolidated properties held
in joint ventures) totaling 1 million square feet for a gross sales
price of $63.7 million, including $14.0 million of mortgage debt. The
company’s share of the proceeds from these sales was $42.1 million. The
properties that were sold had demographics below Kimco’s portfolio
averages, including an average population level of 66,000 and a mean
household income level of $71,000 within a three-mile radius.
The company is currently negotiating contracts for the sale of 33
properties for approximately $300.5 million and is actively marketing 25
properties for sale, including several portfolios, totaling
approximately $289.5 million.
Since the start of the company’s disposition efforts, Kimco has sold 154
retail properties, comprising 15.9 million square feet, for a gross
sales price of $1.2 billion, including $302.6 million of mortgage debt.
The company’s share of the proceeds from these sales was approximately
$740.3 million.
Latin America
As previously announced, the company completed the sale of a
nine-property retail portfolio in Mexico to a joint venture between
Macquarie Mexican REIT (MMREIT) (BMV:FIBRAMQ) and Grupo Frisa for a
gross sales price of 2.9 billion Mexican pesos ($222 million), including
debt of 475.9 million Mexican pesos ($36.3 million). Kimco’s pro-rata
share of the sales price was approximately 2.0 billion Mexican pesos
($153 million).
The transaction represents a major step in the company’s disposition of
its Latin American assets to focus on its portfolio in the U.S. and
Canada. With the sale of these nine properties, Kimco’s remaining Latin
American shopping center portfolio comprises 36 properties totaling 5.9
million square feet. The company is currently negotiating contracts for
the sale of these remaining properties.
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.
Copyright Business Wire 2014