NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--Kimco Realty Corp. (NYSE:KIM) today announced transactions of approximately $159.7 million and $1.5 billion in the fourth quarter and full year 2016, respectively.
Fourth Quarter Activity:
Fourth quarter acquisitions totaled $88.7 million from the purchase of interests in three shopping centers and two land parcels. Kimco’s share of the purchase price was $68.1 million. These acquisitions consist of:
- The remaining 85% interest in Creekside Center in Hayward, California, and Brookhurst Center in Anaheim, California, totaling 234,000 square feet, for a gross price of $54.5 million, which includes the assumption of $35.7 million in mortgage debt that was subsequently repaid. Kimco’s share of the purchase price was $46.3 million. Creekside Center (San Francisco-Oakland-Hayward MSA) and Brookhurst Center (Los Angeles-Long Beach-Anaheim MSA) are both located in core markets supported by strong density levels in which the estimated average population within a three-mile area exceeds 250,000.
- Vail Ranch Plaza, a 102,000-square-foot grocery-anchored center in Temecula, California, for a gross price of $27.5 million. Vail Ranch Plaza is anchored by a Sprouts Farmers Market and is adjacent to the company’s 417,000-square-foot Redhawk Towne Center, which features a strong anchor roster that includes Walmart, Marshalls and Ross Dress for Less. Vail Ranch Plaza is located in an affluent community in which the average household income is approximately $101,000 within a three-mile radius. Kimco’s share of the purchase price, based on its 55% ownership interest, was $15.1 million.
- Two parcels adjacent to its flagship Suburban Square (Philadelphia-Camden-Wilmington MSA) shopping center for $6.8 million. Suburban Square, in Ardmore, Pennsylvania, is a lifestyle center anchored by a high-volume Trader Joe’s and Apple Store in the heart of the Main Line with an estimated average household income in excess of $131,000 and a population of over 125,000 within a three-mile radius.
Sales for the fourth quarter totaled $139.7 million from the disposition of six U.S. shopping centers and two land parcels totaling 999,000 square feet. Kimco’s share of the sales price was $65.5 million.
Full Year Activity:
For the full year 2016, Kimco acquired interests in 20 properties, including 10 acquired from existing joint venture partners, totaling 2.4 million square feet. The aggregate gross purchase price for these acquisitions was $746.1 million, including $210.2 million of mortgage debt. Kimco’s share of all 2016 acquisitions totaled $520.1 million.
Kimco’s share of shopping center dispositions in 2016 totaled $982.4 million from the sale of interests in 34 Canadian properties for USD $571.5 million and 31 U.S. properties for $410.9 million. The 2016 sales activity marks the completion of the company’s multi-year strategic portfolio transformation, representing another milestone on the road to its strategic 2020 Vision of owning high-quality assets in major metro markets in the U.S.
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 September 30, 2016, the company owned interests in 534 U.S. shopping centers comprising 86 million square feet of leasable space across 35 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 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 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 our 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, 2015, 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. The company disclaims any intention or obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.