Kimco Realty Third Quarter 2016 Transaction Activity Exceeds $360 Million
October 11 2016 - 09:01AM
Business Wire
Kimco Realty Corp. (NYSE: KIM) today announced that its
transaction activity for the third quarter of 2016 exceeded $360
million. This includes the previously announced partner buyout of a
four-property joint venture portfolio for a gross price of $169.0
million and the acquisition of Kentlands Market Square shopping
center for $95 million.
Additionally, in the third quarter Kimco sold five of its
remaining six Canadian shopping centers. The third quarter
transactions highlight the company’s continuing commitment to its
strategic 2020 Vision focused on owning high-quality assets in
major metro markets in the U.S., and reducing its exposure to joint
ventures.
Third Quarter Transaction
Activity:
Dispositions: Sales for the third
quarter totaled $150.7 million from the disposition of 12 shopping
centers, totaling 1.4 million square feet. Kimco’s share of the
sales price was $97.8 million. The sales consist of:
- Seven unencumbered U.S. properties,
totaling 430,000 square feet, for a gross sales price of $53.3
million. The company’s share from these sales was $49.0
million.
- Interests in five Canadian shopping
centers, totaling 1.0 million square feet, for a gross sales price
of USD $97.4 million, including USD $22.5 million of existing
mortgage debt. Kimco’s share of the sales price was USD $48.7
million.
The company’s 2016 guidance range for shopping center
dispositions is $1.0 billion to $1.15 billion (Kimco’s share); year
to date, the company’s share totaled $918.6 million from the sale
of interests in 34 Canadian properties for USD $571.5 million and
25 U.S. properties for $347.1 million.
Acquisitions: Third quarter
acquisitions totaled $292.8 million and 1.0 million square feet.
Kimco’s share of the purchase price was $263.4 million.
As previously announced, Kimco acquired:
- The remaining 85% interest in a
four-property joint venture portfolio, totaling 681,000 square
feet, for a gross price of $169.0 million, which includes the
assumption of $77.0 million in mortgage debt. The portfolio
includes Perimeter Expo in Atlanta, Cranberry Commons
in Pittsburgh, Cypress Towne Center in Houston and Doc
Stone Commons in Stafford, Virginia. All four assets are
located in major metro markets where Kimco already has a
significant presence.
- Kentlands Market Square, a
221,000-square-foot, Whole Foods-anchored open-air shopping center
located in the Washington-Arlington-Alexandria metropolitan
statistical area (MSA) for $95.0 million which includes the
assumption of $33.2 million in mortgage debt. In addition to the
high-volume Whole Foods, the property is anchored by national
tenants such as PetSmart, Michaels and Starbucks and is one of only
two shopping centers located in the “downtown” commercial district
of the Kentlands, an affluent, master-planned community in
Gaithersburg, Maryland, a northwest suburb of Washington, D.C. The
center boasts excellent demographics including a population of
107,000 with a median household income level of $99,000 within a
three-mile radius.
In addition, Kimco acquired the following properties during the
third quarter:
- An additional 84% ownership interest in
the 97,000-square-foot Gateway Shopping Center for a gross price of
$18.1 million. The grocery-anchored center is located in the
Seattle-Bellevue-Everett MSA, and is a prime redevelopment
opportunity.
- A 21,000-square-foot parcel adjacent to
Kimco’s Webster Square shopping center for $8.2 million.
Webster Square is a 176,000-square-foot multi-anchored property
featuring Trader Joe’s, TJ Maxx and Michaels in the desirable
retail market of Nashua, New Hampshire.
- A parcel adjacent to Coral Way
Plaza, a grocery-anchored shopping center in the Miami-Fort
Lauderdale-West Palm Beach MSA, for a gross price of $1.6 million.
Kimco’s share of the purchase price was $398,000.
- An additional land parcel at the
Grand Parkway Marketplace for $900,000. Located in Spring,
Texas, Grand Parkway Marketplace is a Kimco signature development
project that will be anchored by a new Target store and will be
completed in 2017.
The company’s 2016 guidance range for shopping center
acquisitions is $450 million - $550 million (Kimco’s share); year
to date, the company’s share totaled $451.9 million.
ABOUT KIMCO
Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust
(REIT) headquartered in New Hyde Park, N.Y., that is North
America’s largest publicly traded owner and operator of open-air
shopping centers. As of June 30, 2016, the company owned interests
in 537 U.S. shopping centers comprising 86 million square feet of
leasable space across 36 states and Puerto Rico. 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 and management’s ability to estimate the impact
thereof, (vii) risks related to the company’s international
operations, (viii) the availability of suitable acquisition,
disposition, development and redevelopment opportunities, and risks
related to acquisitions not performing in accordance with our
expectations, (ix) valuation and risks related to the company’s
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 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, 2015, 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. The company
disclaims any intention or obligation to update the forward-looking
statements, whether as a result of new information, future events
or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20161011005940/en/
Kimco Realty Corp.David F. Bujnicki, 1-866-831-4297Senior Vice
President, Investor Relations and
Strategydbujnicki@kimcorealty.com
Kimco Realty (NYSE:KIM)
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