Kimco Cites Fourth-Quarter Transactions

Kimco Realty Corporation has announced the following transaction activity for the fourth quarter 2011.

SHOPPING CENTER ACQUISITIONS

U.S. Shopping Center Portfolio:

Kimco acquired 10 wholly-owned shopping centers located primarily in targeted major metropolitan statistical areas (MSA) for an aggregate purchase price of approximately $204.3 million, including $66.2 million of mortgage debt. These 10 acquisitions, including two previously announced purchases, total 1.1 million square feet and are approximately 97 percent occupied. Additional details about the centers are as follows:

• Market at Southpark, a 190,000-square-foot unencumbered grocery-anchored shopping center located in Littleton, Colo., (Denver-Aurora-Broomfield MSA), was purchased for $30 million. This center is 95 percent occupied and is anchored by King Soopers (a subsidiary of Kroger), Office Depot and Big Lots.
• Brennan Station, a 136,000-square-foot shopping center located in Raleigh, N.C., (Raleigh-Cary MSA), was purchased for approximately $29.4 million, including $9.1 million of mortgage debt. This center is 96 percent occupied and is anchored by Office Depot, Ace Hardware and Dollar Tree.
• Highlands Ranch S.C., a 123,000-square-foot grocery-anchored shopping center located in Highlands Ranch, Colo., (Denver-Aurora-Broomfield MSA), was purchased for approximately $27.6 million, including $20.6 million of mortgage debt. This fully occupied center is anchored by TJ Maxx, OfficeMax, Ace Hardware, and shadow-anchored by Kroger.
• Westridge Square S.C., a 215,000-square-foot unencumbered grocery-anchored shopping center located in Greensboro, N.C., (Greensboro-Highpoint MSA), was purchased for approximately $26.1 million. This center is 98 percent occupied and is anchored by Kohl’s and Harris Teeter.
• Grand Oaks Village, an 86,000-square-foot grocery-anchored shopping center located in Orlando, Fla., (Orlando-Kissimmee-Sanford MSA), was purchased for $25 million, including $6 million of mortgage debt. This center is fully occupied and is anchored by The Fresh Market.
• North Valley S.C., a 168,000-square-foot shopping center located in Peoria, Ariz., (Phoenix-Mesa-Scottsdale MSA), was purchased for approximately $23.4 million, including $16.1 million of mortgage debt. This center is 97 percent occupied and is anchored by J.C. Penney, Ross Stores and Jo-Ann Fabrics.
• Jetton Village Shoppes, a 67,000-square-foot grocery-anchored shopping center located in Cornelius, N.C., (Charlotte-Gastonia-Rock Hill MSA), was purchased for approximately $13.4 million, including $8.3 million of mortgage debt. This center is 99 percent occupied and anchored by Harris Teeter.
• College Park S.C., a 62,000-square-foot unencumbered grocery-anchored shopping center located in Tempe, Ariz., (Phoenix-Mesa-Scottsdale MSA), was purchased for approximately $10.5 million. This center is fully occupied and is anchored by Whole Foods.

Additional acquisitions previously announced:

• Island Gate Plaza – Acquired the fee position and an additional 43,000 square feet of retail space in an existing ground-leased site in Corpus Christi, Texas, (Corpus Christi MSA), for $8.8 million. Kimco now holds the full ownership interest in this 168,000-square-foot unencumbered shopping center that is 97 percent occupied and is anchored by Ross Dress for Less, Bed Bath & Beyond, Best Buy, Shoe Carnival and Michaels.
• Village Center West, a 30,000-square-foot grocery-anchored shopping center located in Highlands Ranch, Colo., (Denver-Aurora MSA), was purchased for $10.1 million, including $6.1 million of mortgage debt. This center is 94 percent leased and is shadow-anchored by Kroger.

In addition, Kimco acquired a 50 percent interest in the 1.1 million square foot Owings Mills Mall located in Owings Mills, Md., as part of a new joint venture with General Growth Properties, Inc. (GGP) to redevelop this property.

Canadian Shopping Center Portfolio:

The joint venture between Kimco and Anthem Properties acquired Salish Plaza, an 88,000-square-foot grocery-anchored shopping center located in Chilliwack, BC, for CAD $20.6 million. Also during the quarter, the company converted its preferred equity interest in the North Town shopping center with Anthem Properties into a pari-passu joint venture in which Kimco holds a 90 percent interest.

Latin America Portfolio:

The company acquired a land parcel in Lima, Peru, for $2.7 million that it will develop into a new 37,000-square-foot grocery-anchored center.

NON-STRATEGIC SHOPPING CENTER DISPOSITIONS

During the quarter, Kimco completed the sales of seven non-strategic shopping centers for approximately $59.4 million, including the repayment of $18 million of mortgage debt. Kimco’s share of the proceeds from these sales was $39.1 million. These properties, which totaled approximately 1 million square feet, had a combined gross occupancy of 71 percent. Proceeds from the sales of these properties were recycled toward the properties acquired during the quarter.

NON-RETAIL ASSETS

Fourth quarter activity includes the disposition of five urban properties (two each in Boston and Philadelphia with another located in New York) for $15.1 million, as well as the sale of $7.1 million of marketable securities. Also during the quarter, Kimco received a distribution of $27.7 million on a non-retail preferred equity investment from a mortgage refinancing, in addition to selling its interest in a Canadian hotel venture to its joint venture partner for approximately CAD $2.5 million.