Kimco Third Quarter 2015 Transaction Activities Exceed $245 Million

Company Completes the Sale of its Interests in 19 Shopping Centers to RioCan

NEW HYDE PARK, N.Y.--()--Kimco Realty Corp. (NYSE:KIM) today announced that the company’s transaction activity for the third quarter of 2015 totaled more than $245 million. Subsequent to the third quarter, Kimco acquired the remaining 85% ownership interest in a Houston power center for a gross price of $64 million, and also completed the sale of its ownership interests in 19 shopping centers in Canada to RioCan Real Estate Investment Trust (TSX:REI.UN) for CAD $477 million.

Third Quarter Activity:

Acquisitions:

  • As previously announced, Kimco acquired the remaining 80% ownership interest in Montgomery Plaza, a 465,000-square-foot power center located in the Dallas-Fort Worth-Arlington MSA, from RioCan for $58.3 million based upon a gross value of $72.9 million.
  • The company also opportunistically acquired a parcel adjacent to its flagship Suburban Square (Ardmore, Pa.) shopping center for $1.9 million.

Subsequently in October, Kimco exited another institutional joint venture by acquiring a partner’s 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. The 98-percent-leased shopping center is anchored by strong national tenants such as TJMaxx, Ross Dress for Less, Bed Bath and Beyond, Ashley Furniture HomeStore, PetSmart, Old Navy and Ulta.

In addition, the company purchased 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 extension of this project.

Dispositions:

  • Sold interests in 14 U.S. properties, totaling 1.6 million square feet, for a gross sales price of $141.6 million. In addition, the company sold 14 wholly owned net-leased restaurant properties for $17.3 million. The company’s share from these sales was $97.4 million.
  • Disposed of its 50% interest in Centre Jacques Cartier located in Montreal, Canada for a gross sales price of CAD $17.6 million. The company’s share from this sale was CAD $8.8 million.

Subsequently, on October 6, 2015, Kimco completed the sale of its ownership interests in 19 Canadian properties to RioCan at a pro-rata purchase price of CAD $477 million, including the assumption of CAD $127 million of existing mortgage debt. The company will receive approximately $220 million in proceeds, net of its pro-rata share of debt and the impact of currency and taxes, which will be used to further strengthen Kimco’s balance sheet and fund redevelopment activities.

The sale of these 19 Canadian properties to RioCan is part of a larger announced transaction in which RioCan and Kimco have agreed to unwind their Canadian joint venture. This includes RioCan acquiring Kimco’s ownership interests in 22 properties from the RioCan-Kimco joint venture for CAD $715 million in a two-step process. The initial step was the sale of Kimco’s interest in these 19 properties; the second step will be the sale of the remaining three properties, totaling CAD $238 million including the assumption of CAD $104 million of existing mortgage debt, expected to close in the first quarter of 2016.

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 June 30, 2015, the company owned interests in 727 shopping centers comprising 107 million square feet of leasable space across 39 states, Puerto Rico, Canada and Chile. 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.

Contacts

Kimco Realty Corp.
David F. Bujnicki, 1-866-831-4297
Vice President, Investor Relations and Corporate Communications
dbujnicki@kimcorealty.com

Contacts

Kimco Realty Corp.
David F. Bujnicki, 1-866-831-4297
Vice President, Investor Relations and Corporate Communications
dbujnicki@kimcorealty.com