Kimco Realty Corporation Announces Second 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 second quarter 2007. In total, the company acquired 34 properties totaling 4.1 million square feet for approximately $1.1 billion in high density metropolitan markets including Miami, Fla.; San Diego, Calif.; Reno, Nev., Philadelphia, Pa. and Santiago, Chile. The company disposed of 28 properties totaling 3.4 million square feet for approximately $545 million. Year-to-date, the company has acquired 75 properties totaling 9.2 million square feet for $2.2 billion and disposed of 45 properties totaling 5.3 million square feet for $787 million.
MAJOR ACQUISITIONS (includes previously announced transactions)
Consolidated - US
-- Flagler Park Plaza, a 350,000 square foot shopping center in
Miami, Fla., was acquired unencumbered on April 24 for
approximately $95 million. The center is anchored by Publix
and is 99 percent leased.
-- On April 30, Kimco Developers, Inc. (KDI) purchased a 180 acre
land parcel for $20.6 million in Hoover, Alabama for the
development of The Grove, a 600,000 square foot power center
anchored by Target, Lowe's, Kohl's and Best Buy. The center is
expected to open in 2009.
-- Black Mountain Village totaling 49,000 square feet located in
San Diego, Calif. was acquired unencumbered on May 1 for
approximately $15.6 million. The neighborhood center was 100
percent leased.
-- D'Andrea Marketplace, totaling 120,000 square feet and located
in the Reno, Nev. area was acquired May 1 for approximately
$38 million including $16.8 million in mortgage debt. The
property is 100 percent leased and tenants in the
grocery-anchored center include Safeway, Starbucks and Longs
Drugs.
-- Suburban Square in the Philadelphia, Pa. area was acquired
unencumbered on May 10 for $215 million. The property, which
totals approximately 360,000 square feet, is a mixed-use life
style center with approximately 320,000 square feet of retail
space and 40,000 square feet of office space. Major tenants
include Macy's, Banana Republic, Trader Joe's, The Gap, Ann
Taylor, American Eagle Outfitters and Victoria's Secret. Sales
for shop tenants are in excess of $600 psf.
-- Chatham Plaza in Savannah, Ga. was acquired unencumbered on
June 7 for $44.6 million. The 200,000 square foot neighborhood
center is 94 percent leased. Tenants include Linens & Things,
Ross Dress for Less and Costco.
Consolidated - Mexico
-- On May 15, Kimco acquired approximately 44 acres of land in
Rosarito, Mexico, a Pacific coast city just south of Tijuana,
for US $20.4 million. Plaza Rosarito, a 600,000 square foot
power center anchored by Wal-Mart Supercenter and Home Depot,
will be developed on the land. It will also include a 40,000
square foot Cinepolis movie theater, the largest theater chain
in Latin America. Including land, estimated cost for the
center, which is expected to open in 2008, is approximately US
$40 million.
-- Kimco made its first acquisition for the recently announced
Mexico Land Fund on June 14 with the purchase of a 36 acre
parcel in Mazatlan, Mexico for US $11.8 million. Kimco's
equity contribution for the land, which will be held for
future development, was US $1.9 million.
Joint Ventures - US
-- A 50 percent interest in Sequoia Mall & Tower Plaza, a 235,000
shopping center located in Visalia, Calif. was acquired in a
joint venture on April 12. The property, which is suited for
re-development, was acquired unencumbered for $29.6 million
and includes Borders, Regal Cinemas, Bed, Bath & Beyond and
Marshalls.
-- Corsica Square, totaling 60,000 square feet, was purchased by
a joint venture between Kimco and UBS Wealth Management. The
property was acquired unencumbered on May 2 for $19.4 million
and is 100 percent leased. Kimco retained a 15 percent
ownership interest and will manage the property.
-- Ten shopping centers, six in California totaling approximately
428,500 square feet and four in Nevada with 484,500 square
feet were acquired June 1 jointly by Kimco and UBS Wealth
Management. The aggregate purchase price of the ten properties
was $289.3 million including the assumption of approximately
$69.8 million of mortgage debt. Major tenants in the
properties include Safeway, Bed, Bath & Beyond, Cost Plus,
Borders, Raley's, Longs Drugs and Starbucks. Kimco retained a
15 percent ownership interest and will manage the properties.
-- A new joint venture between Kimco and SEB
Immobilien-Investment GmbH purchased nine shopping centers
from the Kimco Retail Opportunity Portfolio (KROP), a joint
venture between Kimco and GE Real Estate on June 19. Six
centers are located in the Baltimore, Md. area, two in Va. and
one in New Jersey in the Greater Philadelphia area. The
properties, which total approximately 1.2 million square feet,
were approximately 97 percent leased, were purchased for $235
million. Approximately $171 million of new mortgage debt was
placed on the properties replacing approximately $102 million
of previous mortgage debt. Tenants in the centers include
grocery stores Harris Teeter, Safeway and Giant Food, as well
as department stores Target, Kohl's and Marshalls. Kimco
retained a 15 percent ownership interest and will manage the
properties.
Joint Ventures - Canada
-- As part of its 50/50 joint venture with Capital Automotive
REIT (CARS), the company purchased a Volkswagen dealership in
downtown Toronto, Canada for approximately US $9.9 million.
The property will be net leased back to the dealership for an
initial term of 20 years.
Joint Ventures - Chile
-- A portfolio of four properties located in Santiago, Chile was
acquired through a new 50/50 joint venture with Patio S.A. on
April 12. The neighborhood/convenience centers, which total
approximately 100,000 square feet, with planned expansion of
an additional 50,000 square feet, were purchased for US $16.5
million including US $11.1 of mortgage debt. Tenants in the
centers include Cencosud, the largest retailer in Chile and
Argentina, Cruz Verde, a leading pharmacy chain, and La Polar,
a popular discount department store.
MAJOR DISPOSITIONS
Consolidated - US
-- KDI sold one completed project and seven additional land
parcels for approximately $76.6 million during the second
quarter. Hazel Dell, a 436,000 square foot power center
located in Vancouver, Washington and anchored by Target,
Kohl's, Petco, Office Depot and Bed, Bath & Beyond, was sold
on April 3 for approximately $59.8 million.
-- Duquesne Plaza, a 70,000 square foot shopping center located
in Duquesne, Pa. was sold May 18 for approximately $900,000.
-- In June, the company sold two non-strategic assets, Club
Center located in Baltimore, Md. and Martins Food Plaza
located in Martinsburg, W. Va. Club Center, a 44,000 square
foot convenience center, was sold for $7.0 million on June 15
and Martins Food Plaza, a 43,000 square foot shopping center,
was sold for $3.2 million on June 21.
Joint Ventures
-- Kimco Income REIT (KIR) sold Parkway Plaza in Norman, Okla.
for $35.5 million and repaid third party debt of $18.9
million. The power center totaled approximately 260,000 square
feet and was 94 percent leased.
-- KROP sold Northwest Market Place located in Houston, Texas on
June 7. The 185,000 square foot center which was 100 percent
leased sold for $36.3 million including mortgage debt of $19.8
million.
-- The joint venture between Kimco and Prudential Real Estate
Investors sold thirteen former Pan Pacific shopping centers
for approximately $222.4 million in separate transactions
during the quarter. The centers totaled 1.6 million square
feet and were located in non-strategic markets.
OTHER MAJOR TRANSACTION ACTIVITY
-- On June 15, as part of Kimco Select's ongoing opportunistic
investment strategy, the company, in a joint venture with
Westmont Hospitality Group, purchased the stock of InTown
Suites, a 127 property portfolio totaling 16,364 units. The
total purchase price was approximately $781 million and Kimco
contributed $120 million representing 75 percent of the
required equity contribution. The average purchase price per
key is approximately $47,700, which the company estimates is
well below replacement cost. The properties, which will be
operated by Westmont, are located across 21 states and have an
average age of nine years. This is Kimco's fifth investment
with Westmont. Previous investments include the Hyatt Cancun
in Cancun, Mexico, the Grosvenor Hotel in Orlando, Florida,
the Galleria in Houston, Texas and eight hotels across Canada.
-- During the second quarter, the company also invested
approximately $58 million in ten separate preferred equity
investments in the U.S.
-- Subsequent to the quarter close, 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 investment consists of 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 April 23, 2007, the company owned interests in approximately 1,365 properties comprising 175 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 July 9, 2007