Kimco Realty Corporation announces third quarter transaction activity
NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--
Kimco Realty Corporation (NYSE: KIM) announced the following major acquisition and disposition activity for the third quarter 2007. During the quarter, the company acquired 15 retail properties totaling 1.1 million square feet for approximately $185.4 million in primary metropolitan markets including Long Island, NY; Riverside-San Bernardino, Calif., Charlotte, N.C. and Mexico City, Mexico. The company disposed of 14 properties totaling 1.3 million square feet for approximately $201 million. Year-to-date, the company has acquired 77 properties totaling 8.3 million square feet for $2.0 billion and disposed of 46 properties totaling 4.8 million square feet for $664.7 million. Transactions between Kimco affiliated entities are excluded from these totals.
MAJOR ACQUISITIONS
United States
-- On July 31, Kimco acquired the Birchwood portfolio, a
portfolio of 11 unencumbered properties located on Long
Island, New York for $92.0 million. The portfolio consists of
seven retail properties totaling approximately 250,000 square
feet, two office properties and two land parcels. The
portfolio is 94 percent occupied and includes the tenants,
CVS, Gold City Supermarket, Whole Foods, Marshalls, and TGI
Fridays.
-- Mooresville Crossing, a 155,000 square foot power center
outside Charlotte, N.C., was acquired unencumbered on August 1
for $41.0 million. The center is approximately 87 percent
leased and includes Best Buy, Bed, Bath & Beyond, Staples,
Petco and Ulta.
-- Kimco acquired Corona Hills Marketplace in Corona, Calif.,
unencumbered, on August 22 for $32 million. The 148,000 square
foot center is anchored by Wal-Mart, Vons and PetSmart. An
additional pad site to include a Starbucks is under
development.
Mexico
-- The company acquired approximately 12 acres of land in
Tijuana, Mexico in July, for the development of a 220,000
square foot shopping center with G. Accion. The center will be
anchored by a Comercial Mexicana grocer, a movie theater and
local retail tenants.
-- Kimco acquired approximately 50 acres of land, also in
Tijuana, for $16.9 million for the development of a 455,000
square foot retail center. The center will be anchored by
Wal-Mart, Home Depot, and Cinepolis. Project completion is
expected for fourth quarter 2008.
-- On September 21st, Mexico Land Fund acquired approximately 22
acres of land for future development in the city of Apodaca,
Mexico for a total cost of $5.3 million. Kimco maintains a 15%
interest in the Land Fund.
-- The company contributed $8.3 million in a new joint venture
partnership with Frisa in connection with the acquisition of
MagnoCentro 26, a 246,000 square foot shopping center located
in Mexico City. The property is valued at approximately $49.6
million. The center, which is 98 percent occupied, is located
in Interlomas, a high-income area of Mexico City and includes
a high-end organic grocery store by Comercial Mexicana, a 13
screen Cinemex theater and Zara, a Spanish apparel store.
Frisa is Kimco's partner in seven other properties in Mexico.
Canada
-- The company purchased a Ford dealership in Windsor, Ontario,
Canada as part of its 50/50 joint venture with Capital
Automotive Real Estate Services, Inc., for approximately US
$11.3 million. The property will be net leased back to the
dealership for an initial term of 20 years.
MAJOR DISPOSITIONS
United States
-- Kimco Developers Inc. (KDI) sold one completed project, one
land parcel and five additional pad sites for approximately
$61.5 million during the third quarter. Gateway Station Phase
II in Burleson, Texas anchored by Old Navy and Ulta, was sold
August 20 for approximately $18.5 million. Gilbert Esplanade,
68 acres of undeveloped land in Gilbert, Ariz. which was
previously expected to be developed, was sold on August 30 for
$37.8 million. Gain on these sales, net of tax was
approximately $10.3 million.
-- In July, Kimco sold an 80,000 square foot single tenant asset
for $6.2 million in Arlington Heights, IL located on 6.53
acres.
-- The joint venture between Kimco and Prudential Real Estate
Investors sold six former Pan Pacific shopping centers for
approximately $110.2 million in separate transactions during
the quarter. The centers totaled approximately 700,000 square
feet.
-- Kimco Retail Opportunity Portfolio (KROP), a joint venture
between Kimco and GE Real Estate, sold Waverly Woods Village
Center located in Woodstock, Md. on September 7. The 104,000
square foot center was sold for $26.5 million including
mortgage debt of $11.3 million. On September 27, River Hill
Village, a Giant anchored shopping center located in Columbia,
Md. was sold by KROP to the joint venture between Kimco and
SEB Immobilien-Investment GmbH for $33.0 million, includes
debt repayment of $9.1 million. Kimco recognized promoted
income of approximately 5.6 million as a result of these
sales.
-- The Groves, a 228,000 square foot shopping center in Tempe,
Ariz. was sold for $40.1 million including the repayment of
$28.6 million in mortgage debt. The property was part of the
PL Retail portfolio, a joint venture between Kimco and DRA
Advisors.
Mexico
-- Kimco sold 50% of its interest in two shopping centers in
Mexico to GE Real Estate for $17.2 million. In Ciudad del
Carmen, a 427,000 square foot development was sold for $5.9
million and in Plaza Rosarito, a 600,000 square foot
development in Baja California was sold for $11.3 million.
This brings the total number of properties in the Kimco/GE
Real Estate Mexico joint venture to 14, which totals
approximately 4.8 million square feet.
OTHER MAJOR TRANSACTION ACTIVITY
-- During the third quarter, the company invested approximately
$37.1 million in 11 preferred equity investments representing
16 properties: $17.7 million for eight properties in the U.S.
and $19.4 million for eight properties in Canada.
-- Kimco Select invested approximately $78 million on July 3 in a
portfolio of 403 net leased properties. The properties consist
of a diverse array of free-standing restaurants, fast food
restaurants, convenience stores and auto parts stores divided
into 30 master leased pools with each pool leased to a single
corporate operator. The initial investment included a $73
million eight percent loan plus participation through a $5
million investment which entitles the company to acquire the
outstanding interests in the properties at the time the master
leases expire.
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 June 30, 2007, the company owned interests in 1,519 properties comprising 180 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 October 8, 2007