NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--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.
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:
- 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.
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.
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.
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.