Kimco Realty Corp. (NYSE:KIM), North America’s largest publicly traded
owner and operator of neighborhood and community shopping centers, today
reported its transaction activity for the second quarter of 2014. The
company continued transforming its portfolio and simplifying its
business model, highlighted by the acquisition of a 24-property retail
portfolio in New England and a 12-property portfolio from the Kimco
Income Fund (KIF I) joint venture, and by the disposition of four retail
properties in Mexico. These and other key second quarter transactions
are summarized below.
ACQUISITIONS
In the second quarter, Kimco acquired 36 high-quality shopping centers
totaling approximately 3.0 million square feet for a gross purchase
price of $678.0 million, including $158.7 million of mortgage debt.
Details of these transactions are as follows:
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New England Portfolio: As previously announced, Kimco acquired
a 24-property retail portfolio for a total purchase price of $270
million, including $120.5 million of mortgage debt. This
1.4-million-square-foot portfolio is 96% occupied and includes 17
shopping centers in the Boston metropolitan area, four other
Massachusetts shopping centers, two grocery-anchored centers in
northern New Jersey, and one Wal-Mart-anchored center in Danbury,
Connecticut. The portfolio, which features a diverse tenant mix that
includes Whole Foods, Trader Joe’s, Lowe’s, CVS and Walgreens, boasts
an average population that is over 25% higher than that of Kimco’s
collective retail portfolio and offers multiple redevelopment and
re-tenanting opportunities.
-
KIF I Portfolio: The company continued its simplification
strategy of reducing the number of properties in joint ventures by
acquiring the remaining 60.9% interest in the 12-property KIF I
portfolio from its joint venture partners for a gross price of $408.0
million, including $38.2 million of mortgage debt. As part of this
transaction, the company repaid $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.
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 123 U.S. retail
properties, comprising 14.4 million square feet, for a gross purchase
price of $2.8 billion, including $996.1 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 $92,000 within a three-mile radius.
DISPOSITIONS
United States
During the second quarter, Kimco sold ownership interests in 15 U.S.
properties (seven wholly owned and eight unconsolidated properties held
in joint ventures) totaling 1.7 million square feet for a gross sales
price of $185.6 million, including $23.3 million of mortgage debt. The
company’s share of the proceeds from these sales was $121.5 million.
Kimco currently has 50 properties for sale that are under contract,
including several portfolios, totaling approximately $363.9 million.
Since the start of the company’s disposition efforts, Kimco has sold 169
retail properties, comprising 17.6 million square feet, for a gross
sales price of $1.4 billion, including $325.9 million of mortgage debt.
The company’s share of the proceeds from these sales was approximately
$861.8 million. The properties that were sold had demographics below
Kimco’s portfolio averages, including an average population level of
76,000 and a median household income level of $58,000 within a
three-mile radius.
Latin America
As previously announced, the company completed the sale of four retail
properties in Mexico for a gross sales price of 1.1 billion Mexican
pesos ($82.1 million). Kimco’s pro-rata share of the proceeds was
approximately 688.1 million pesos ($53.3 million).
In addition, the company has executed a contract of sale for three
shopping centers in Mexico for a gross sales price of 1.5 billion pesos
($112.3 million) that is expected to close in the third quarter of 2014.
Kimco’s pro-rata share of the sales price is approximately 1.3 billion
pesos ($100.5 million). These transactions represent another step toward
the company’s commitment to exit Latin America with a focus on its
portfolio in the U.S. and Canada.
About Kimco
Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT)
headquartered in New Hyde Park, New York, that owns and operates North
America’s largest publicly traded portfolio of neighborhood and
community shopping centers. As of March 31, 2014, the company owned
interests in 835 shopping centers comprising 122 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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