Kimco Realty Corp. (NYSE:KIM) today announced transactions of
approximately $1.9 billion and $4.4 billion in the fourth quarter and
full year 2015, respectively.
Highlights for the fourth quarter include the sale of 88 wholly owned
and joint venture properties for $1.7 billion, of which Kimco’s share of
the sales price and mortgage debt was $908.3 million and $285.4 million,
respectively. Sixty-four of the properties were located in the U.S., 23
in Canada and the final being the company’s last asset in Chile. During
the fourth quarter, the company also acquired three U.S. shopping
centers totaling $207.8 million, two of which come from existing joint
ventures.
In 2014, the company embarked on a simplification initiative focusing on
its U.S. portfolio and reducing its joint venture program. Since that
time, Kimco has transformed its U.S. shopping center portfolio to become
more concentrated in core major metro markets by acquiring 119
high-quality properties totaling $3.5 billion and selling interests in
186 properties for $1.8 billion. During the same period, the company
exited Mexico and South America and reduced its Canadian platform. In
addition, the number of properties held in joint ventures decreased from
412 to 194.
Fourth Quarter Activity:
Dispositions:
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Kimco sold 64 U.S. properties, totaling 3.0 million square feet, for a
gross sales price of $437.7 million (which included 49 joint venture
properties for $226.6 million). The company’s share from these sales
was $275.5 million.
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As previously announced, the company sold its interest in 23 Canadian
shopping centers to RioCan based on a gross sales price of $1.2
billion, including the assumption of $404.9 million of existing
mortgage debt. Kimco’s share of the sales price and assignment of debt
was $581.5 million and $195.9 million, respectively.
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The company sold its last remaining shopping center in Latin America,
Vina del Mar, a wholly owned property in Chile for $51.3 million,
including the assignment of $32.0 million of debt.
Acquisitions:
As previously announced, Kimco acquired:
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Christown Spectrum, an 850,000-square-foot destination power
center in the Phoenix-Mesa-Scottsdale, Ariz. metropolitan statistical
area (MSA) for $115.3 million. Christown, which is supported by a
population of 437,000 within a five-mile radius and lies adjacent to
the second-busiest light rail station in Phoenix, offers a multitude
of redevelopment and value creation opportunities.
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The remaining 85% ownership interest in Conroe Marketplace
(Houston-The Woodlands-Sugar Land MSA), a 289,000-square-foot power
center, for $54.4 million based on a gross value of $64.0 million.
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A 36-acre tract of land in Houston for $13.2 million. This parcel lies
directly across from Kimco’s Grand Parkway Marketplace ground-up
development project and will be part of a phase II expansion of this
project.
In addition, Kimco acquired the remaining 85% ownership interest in The
Shops at District Heights, a 91,000-square-foot, grocery-anchored
neighborhood center located in the Washington-Arlington-Alexandria MSA
for $24.3 million based upon a gross value of $28.5 million.
Subsequently, In January 2016, Kimco paid $11.5 million to acquire
General Growth Properties’ (NYSE: GGP) remaining 50% ownership interest
in the Owings Mills Mall (Baltimore-Columbia-Towson MSA). In connection
with this transaction, Kimco also acquired the parcel owned by J.C.
Penny Company, Inc. for $5.2 million and is under contract to acquire
the parcel owned by Macy’s, Inc. for $7.5 million. As a result of these
transactions, Kimco will own 100% of the Owings Mills Mall and plans to
develop a new open-air center in its place.
ABOUT KIMCO
Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT)
headquartered in New Hyde Park, N.Y., that is North America’s largest
publicly traded owner and operator of open-air shopping centers. As of
December 31, 2015, the company owned interests in 564 U.S. shopping
centers comprising 90 million square feet of leasable space across 38
states and Puerto Rico. 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 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 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 and
management’s ability to estimate the impact thereof, (vii) risks related
to the company’s international operations, (viii) the availability of
suitable acquisition, disposition, development and redevelopment
opportunities, and risks related to acquisitions not performing in
accordance with the company’s expectations, (ix) valuation and risks
related to the company’s 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 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,
2014, as it may be updated or supplemented in the company’s Quarterly
Reports on Form 10-Q and the company’s other filings filed with the SEC,
which discuss these and other factors that could adversely affect the
company’s results.
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