Kimco Realty Announces Third Quarter 2014 Transaction Activity Exceeding $650 million
Kimco Realty Corp. (NYSE:KIM) today reported its transaction activity for the third quarter of 2014. The company acquired a 10-property shopping center portfolio valued at $275.8 million while disposing of 27 properties for a gross sales price of approximately $376.4 million. These transactions are summarized below.
As previously announced, the company acquired a portfolio of 10 shopping centers totaling 1.4 million square feet from its joint venture with SEB Asset Management for a gross price of $275.8 million, including the assumption of $193.6 million of mortgage debt. Kimco, which previously held a 15% ownership interest in these properties, paid approximately $69.8 million for the remaining 85% equity interest held by SEB Asset Management. The predominately grocery-anchored portfolio, located in mature markets in the Mid-Atlantic region, is 95.4% occupied. The portfolio features a diverse mix of tenants that include market-leading grocers such as Giant Food, Harris Teeter, Weis Markets, Safeway and Food Lion, along with a lineup of well-known national retailers including Ross Stores, Bed Bath & Beyond, Marshalls, Kohl’s, PetSmart, and Michaels. This transaction represents the third joint venture portfolio acquisition by Kimco in 2014, highlighting the company’s continuous emphasis on reducing the number of properties in joint venture arrangements.
Since the beginning of 2014, Kimco has acquired a total of 51 U.S. retail properties, comprising 5.3 million square feet, for a gross purchase price of $1.2 billion, including $465.3 million of mortgage debt. These properties have, on a pro-rata basis, an average occupancy of 96.0 percent and are supported by excellent demographics, including an average household income of $92,000 within a three-mile radius.
During the quarter, Kimco sold ownership interests in 24 U.S. properties (17 wholly owned and seven unconsolidated properties held in joint ventures) totaling 2.4 million square feet, for a gross sales price of $263.6 million, including $35.2 million of mortgage debt. The company’s pro-rata share from these sales was $205.4 million.
Since the beginning of 2014, Kimco has sold 50 retail properties, comprising 5.1 million square feet, for a gross sales price of $512.9 million, including $72.4 million of mortgage debt. The company’s pro-rata share from these sales was approximately $384.9 million. The properties that were sold had demographics below Kimco’s portfolio averages, including an average population level of 85,000 and a median household income level of $57,000 within a three-mile radius.
During the quarter, the company sold three unencumbered retail properties in Mexico to FibraShop (BMV: FSHOP13), a Mexican real estate investment trust (REIT), for a gross sales price of 1.5 billion Mexican pesos (US $112.8 million). The company’s pro-rata share from these sales was approximately 1.3 billion pesos (US $101.3 million).
Since the beginning of 2014, Kimco has sold 16 retail properties in Mexico, comprising 4.5 million square feet, for a gross sales price of $416.9 million. The company’s pro-rata share from these sales was $305.5 million.
Kimco Realty Corp. (NYSE:KIM) is a real estate investment trust (REIT) headquartered in New Hyde Park, New York, that owns and operates North America’s largest publicly traded portfolio of neighborhood and community shopping centers. As of June 30, 2014, the company owned interests in 840 shopping centers comprising 121 million square feet of leasable space across 41 states, Puerto Rico, Canada, Mexico and South America. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 50 years. For further information, please visit www.kimcorealty.com, the company’s blog at blog.kimcorealty.com, or follow Kimco on Twitter at www.twitter.com/kimcorealty.
Safe Harbor Statement
The statements in this news release state the company’s and management’s 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 which may cause actual results to differ materially from current expectations include, but are not limited to (i) general adverse economic and local real estate conditions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the company, (iv) the company’s ability to raise capital by selling its assets, (v) changes in governmental laws and regulations, (vi) the level and volatility of interest rates and foreign currency exchange rates, (vii) risks related to our international operations, (viii) the availability of suitable acquisition and disposition opportunities, and risks related to acquisitions not performing in accordance with our expectations, (ix) valuation and risks related to our joint venture and preferred equity investments, (x) valuation of marketable securities and other investments, (xi) increases in operating costs, (xii) changes in the dividend policy for the company’s common stock, (xiii) the reduction in the company’s income in the event of multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center, (xiv) impairment charges and (xv) unanticipated changes in the company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity. 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 Securities and Exchange Commission (SEC) filings. Copies of each filing may be obtained from the company or the SEC.
The company refers you to the documents filed by the company from time to time with the SEC, specifically the section titled “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended December 31, 2013, as may be updated or supplemented in the company’s Quarterly Reports on Form 10-Q and the company’s other filings with the SEC, which discuss these and other factors that could adversely affect the company’s results.
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