Kimco Realty Corporation announces fourth quarter transaction activity
NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--
Kimco Realty Corporation (NYSE: KIM) announced the following major acquisition, disposition, and financing activity for the fourth quarter 2007. During the quarter, the company acquired four shopping center properties totaling 830,000 square feet for approximately $116.6 million in California, Arizona and Mexico. The company disposed of nine shopping center properties totaling 1.3 million square feet for approximately $226.3 million. Year-to-date, the company has acquired 81 shopping center properties totaling 8.8 million square feet for $2.2 billion and disposed of 55 shopping center properties totaling 6.1 million square feet for $891.0 million. Transactions between Kimco affiliated entities are excluded from these totals.
MAJOR ACQUISITIONS
United States
-- In a joint venture in which the company holds a one-third
interest, Kimco acquired three retail properties located in
California on October 2nd for $39.2 million, including $31.3
million of mortgage debt. The portfolio consists of two ground
lease positions and one fee simple interest totaling
approximately 560,000 square feet with two Macy's and one
Nordstrom as anchor tenants.
Mexico
-- Kimco acquired Gran Plaza Cancun, a 263,000 square foot
operating shopping center located in Cancun, Mexico for $45.2
million. The 94 percent occupied center is shadowed-anchored
by a Wal-Mart Supercenter and co-anchored by Suburbia and a
12-screen Cinepolis theater.
-- In a 50/50 joint venture with Frisa, the company acquired 10
acres of land in Tuxtepec, Oaxaca for $5.0 million for the
expansion of its existing 105,000 square foot Wal-Mart
anchored shopping center. The expansion will consist of the
development of an additional 133,000 square feet of leasable
area and will be anchored by MM Cinemas movie theaters and a
department store. The expansion is expected to be completed in
the fourth quarter 2008 and cost approximately $14 million.
-- On December 4th, the company acquired 19.7 acres of land in
Nuevo Vallarta, Nayarit for the development of Plaza Lago
Real, a 300,000 square foot retail center anchored by a
Wal-Mart Supercenter as well as a movie theater. Total
investment for the project, which is 85% owned by Kimco, is
estimated to be $28 million.
-- The company acquired approximately 29.7 acres in Tapachula,
Chiapas on December 13th, for the ground-up development of a
371,000 square foot center to be anchored by Wal-Mart
Supercenter and Cinepolis. Construction on the $32 million
project is expected to begin early 2008 and be completed by
fourth quarter 2008.
-- In Los Mochis, Sinaloa, the company acquired 9.9 acres of land
on December 19th, for the development of a 153,000 square foot
center anchored by Wal-Mart Bodega Aurrera, Elektra and
AutoZone with an estimated project cost of $8.2 million.
-- Kimco invested approximately $28 million in the American
Industries portfolio during the quarter. The joint venture
acquired interests in six land parcels, three buildings and
one expansion project located in the Mexico cities of Las
Colinas, Chihuahua, San Luis, Juarez, and Monclova. The
venture now contains 70 net leased industrial buildings with a
portfolio value of $358 million.
MAJOR DISPOSITIONS
United States
-- Kimco Developers, Inc. (KDI) sold two completed projects, nine
land parcels, and had two earn outs totaling approximately
$125 million during the fourth quarter. Treasure Valley
Marketplace, a 691,000 square foot center located in Nampa,
Idaho anchored by Target, Costco, Kohl's, Best Buy, Bed Bath &
Beyond, Michaels and Cost Plus, was sold on December 7 for
approximately $75.5 million. Pablo Creek Plaza East, a 320,000
square foot project located in Jacksonville, Fla., was sold on
December 19 for $31.3 million. This project is anchored by
Target, OfficeMax and Michaels.
-- The joint venture between Kimco and Prudential Real Estate
Investors sold four shopping center properties and one
development parcel from the former Pan Pacific portfolio for
approximately $90.8 million in separate transactions during
the quarter. The centers totaled approximately 560,000 square
feet.
-- Kimco Retail Opportunity Portfolio (KROP), a joint venture
between Kimco and GE Real Estate, sold four properties during
the quarter which resulted in approximately $5.0 million in
promoted income to Kimco. In November, Maplewood Town Center
located in Maplewood, Minn. was sold for $17.4 million
including mortgage debt of $6.1 million. Wayne Plaza, a Giant
anchored shopping center located in Chambersburg, Pa. was sold
for $21.1 million including mortgage debt of $8.4 million,
Rockford Crossing, an 89,000 square foot center anchored by
Best Buy and Linens N Things was sold for $14.9 million
including $11.0 million of mortgage debt, and Center at
Westbank was sold for $31.7 million including mortgage debt of
$20.1 million. Wayne Plaza, Rockford Crossing, and Center at
Westbank were sold to a 100% owned subsidiary of Kimco.
-- Fountains on the Lake, a 589,000 square foot shopping center
in Stafford, Texas, was sold for $102 million including the
repayment of $42.1 million in mortgage debt. The property was
part of the Kimco Income REIT (KIR) portfolio, a joint venture
between Kimco and various institutional investors.
-- The company sold three additional properties during the
quarter. Freedom Ford Service Center and Tampa Olsmar
dealerships were sold for $14.5 million, including $7.9
million in mortgage debt. A Dairy Queen building in Stafford,
Va. was sold for $1.6 million.
Mexico
-- Kimco sold 50% of its interest in Tijuana Blvd 2000, a 455,000
square foot development, located in Tijuana, Baja California
for $9.1 million to GE Real Estate. This brings the total
number of properties in the Kimco/GE Real Estate Mexico joint
venture to 15, which totals approximately 5.5 million square
feet.
FINANCING ACTIVITY
-- Since the end of the third quarter the company has completed
several financing initiatives. The company raised $460 million
through the issuance of a perpetual preferred equity offering.
Additionally, the company's U.S. line of credit was renewed
for an additional four years plus a one year option and
increased from $850 million to $1.5 billion with a reduction
in spread of 7.5 basis points. Kimco also completed $267
million in financing for assets expected to be contributed to
joint ventures during 2008. The company currently has
available approximately $1.5 billion of immediate liquidity
through its various credit facilities.
About Kimco
Kimco Realty Corporation, a real estate investment trust (REIT), owns and operates the nation's largest portfolio of neighborhood and community shopping centers. As of September 30, 2007, the company owned interests in 1,959 properties comprising 183 million square feet of leaseable space across 45 states, Puerto Rico, Canada, Mexico and Chile. Publicly traded on the NYSE under the symbol KIM and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 45 years. For further information, visit the company's web site at www.kimcorealty.com.
Safe Harbor Statement
The statements in this release state the company's and management's hopes, 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 economic conditions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or general downturn in their business, (iii) local real estate conditions, (iv) increases in interest rates, (v) increases in operating costs and real estate taxes. 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, including but not limited to the company's report on Form 10-K for the year ended December 31, 2006. Copies of each filing may be obtained from the company or the Securities & 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, 2006, 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.
Source: Kimco Realty Corporation
Released January 7, 2008