Kimco Realty Corporation Announces Second Quarter Transaction Activity 
NEW HYDE PARK, NY (REIT Media) July 9, 2007 - 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
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Jul.09.2007. 07:00
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