Kimco Realty Second Quarter Transaction Activity Summary

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NEW HYDE PARK, N.Y.--(BUSINESS WIRE)-- Kimco Realty Corp. (NYSE: KIM), North America’s largest owner and operator of neighborhood and community shopping centers, today announced its transactions for the second quarter of 2012. As part of its ongoing recycling initiative, the company acquired ownership interests in seven high-quality shopping centers comprising 1.3 million square feet and sold 10 non-strategic centers totaling 887,000 square feet in the quarter.

SHOPPING CENTER ACQUISITIONS

Kimco progressed on its strategic plan to opportunistically add high-quality shopping centers in core markets to its portfolio. In the second quarter, the company acquired interests in six U.S. shopping centers and one Canadian center, with an average occupancy level of 97 percent, for an aggregate gross purchase price of approximately $261.7 million.

   

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Devon Village, a 69,000-square-foot, wholly owned unencumbered shopping center in Devon, Pa., was purchased for $28.6 million. Kimco now owns 39 properties in the Philadelphia-Camden-Wilmington metropolitan statistical area (MSA).

 

Devon Village is fully occupied and located in a densely populated neighborhood of Philadelphia’s affluent Main Line suburbs, and enjoys frontage along Lancaster Avenue, a vibrant east-west transportation thoroughfare. The recently renovated and expanded center is anchored by a Whole Foods Market, and serves an upscale community with a median household income (HHI) of $116,000 within three miles, compared to the national median HHI of $54,000.

 

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Additionally, Kimco purchased for $63.8 million an unencumbered four-property portfolio in North and South Carolina comprised of two upscale grocery-anchored centers in Charlotte, N.C., one upscale grocery-anchored center in Greeneville, S.C., and a power center in Asheville, N.C. With two acquisitions this quarter, Kimco now has six properties in the Charlotte MSA, whose population has grown more than 35 percent since 2000. Overall, North and South Carolina each have had double digit population growth from 2000 and represent attractive long-term markets for the company.

 

Davidson Commons, an 89,000-square-foot shopping center built in 2007 and located in Davidson, a north Charlotte suburb, was acquired for approximately $15.9 million. This shopping center is located near the primary commuter artery of Interstate 77 and is proximal to Davidson College in a retail area with high barriers to entry. Davidson is a town along Lake Norman whose population has grown by more than 80 percent since 2000, and which has a median HHI of $81,000. Davidson Commons is 86 percent leased and is anchored by Harris Teeter, a high-end supermarket operator.

 

Mountain Island Marketplace, a 73,000-square-foot fully leased center in Charlotte, N.C., was bought for approximately $10.6 million. Mountain Island Marketplace has excellent visibility and access from a recently expanded section of Interstate 485 added to accommodate the area’s triple digit population growth since 2000. The shopping center is anchored by a Harris Teeter supermarket and serves a growing population with a median HHI of $64,000.

 

Forest Park, a 52,000-square-foot shopping center developed in 2008 and located at South Pleasantburg Drive and U.S. Highway 276 in Greenville, S.C., was purchased for approximately $11.8 million. Forest Park is anchored by The Fresh Market, a gourmet grocer that serves the upscale neighborhoods bordering the Greenville Country Club. Kimco sees an opportunity to reposition the center to better appeal to these upscale patrons, as well as the 15,000 students at the nearby Greenville Technical College, and to grow occupancy from the current 79 percent.

 

Overlook Village, a 154,000-square-foot regional power center located in Asheville, N.C., was purchased for approximately $25.5 million. This fully occupied center along Tunnel Road is visible and easily accessed from Interstate 240, and the center, anchored by TJ Maxx/HomeGoods, Ross Dress for Less, hhgregg and Jo-Ann Fabrics, benefits from strong permanent, retirement and tourist populations. Retail barriers to entry are high given geographical constraints from the bordering mountains.

 

Kimco also completed the following previously announced acquisitions in the second quarter:

 

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Towson Place, a 680,000-square-foot grocery-anchored power center located at Putty Road and Goucher Boulevard in Towson, Md., is now wholly owned by Kimco after the company acquired the remaining 70 percent interest from an existing institutional joint venture for a gross price of $127 million, including $57.6 million of mortgage debt.  The fully occupied center boasts national anchors such as Wal-Mart, Target, Bed Bath & Beyond, TJ Maxx, Marshalls, PetSmart, Babies R Us/Toys R Us and Weis Markets, and serves 145,000 residents within a 3-mile radius with a median HHI of $65,000.

 

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Millwoods Mainstreet, a 140,000-square-foot grocery-anchored shopping center in Edmonton, Alberta, was added to the Kimco and Anthem Properties Ltd. Canadian retail joint venture for a gross purchase price of $41.7 million Canadian dollars (US$42.4 million), including CA$26 million (US$26.4 million) of mortgage debt, growing the joint venture to 17 properties in the high-growth western provinces of Canada. Millwoods Mainstreet is located in southeast Edmonton, among the fastest-growing regions in Canada, with a strong labor market and above-average income levels. The 90-percent-occupied center serves more than 120,000 residents within a 3-mile radius and is anchored by a 35,000-square-foot Sobeys, a dominant grocery chain in Canada.

 

SHOPPING CENTER DISPOSITIONS

As part of Kimco’s ongoing portfolio recycling initiative, the company divested 10 non-strategic properties comprising 887,000 square feet during the second quarter for approximately $75.6 million, with net proceeds to Kimco of $53.5 million. These properties had a combined gross occupancy of approximately 76 percent. Including these dispositions, the company has divested 2.1 million square feet of non-strategic retail across 23 properties in 2012 for $171.5 million.

During the quarter, Kimco also placed Montgomery Plaza in a new joint venture with RioCan, the largest real estate investment trust in Canada, for a gross sales price of $55.7 million, including $27.7 million of mortgage debt. Kimco’s joint venture investment in the property is 20 percent. The 291,000-square-foot Montgomery Plaza, located in Fort Worth, Texas, is 91 percent occupied and anchored by national retailers such as SuperTarget, Ross Dress for Less, Michaels, Office Depot, Marshalls and PetSmart. Kimco-RioCan joint ventures now own 45 properties in Canada and two in the U.S. with a collective occupancy level of nearly 98 percent.

ABOUT KIMCO

Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that owns and operates North America’s largest portfolio of neighborhood and community shopping centers. As of March 31, 2012, the company owned interests in 930 shopping centers comprising 136 million square feet of leasable space across 44 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 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, (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) the availability of suitable acquisition and disposition opportunities, (viii) valuation of joint venture investments, (ix) valuation of marketable securities and other investments, (x) increases in operating costs, (xi) changes in the dividend policy for our common stock, (xii) the reduction in our income in the event of multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center, (xiii) impairment charges, and (xiv) unanticipated changes in our 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 filings, including but not limited to the company's Annual Report on Form 10-K for the year ended December 31, 2011. Copies of each filing may be obtained from the company or the Securities and Exchange Commission.

The company refers you to the documents filed by the company from time to time with the Securities and Exchange Commission, specifically the section titled "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2011, as may be updated or supplemented in the company’s Form 10-Q filings, which discuss these and other factors that could adversely affect the company's results.

Kimco Realty Corporation
David F. Bujnicki, 1-866-831-4297
Vice President, Investor Relations and Corporate Communications

Source: Kimco Realty Corporation

Released July 11, 2012