Kimco Realty Completes Partial Redemption of its 6.000% Class I Cumulative Redeemable Preferred Stock
September 07 2017 - 8:52AM
Business Wire
Kimco Realty Corp. (NYSE:KIM) announced the completion of the
redemption of 9,000 shares of its issued and outstanding Class I
Preferred Stock, representing 56.25% of the issued and outstanding
Class I Preferred Stock, and 9,000,000 depositary shares (the
“Class I Depositary Shares” and, together with the Class I
Preferred Stock, the “Class I Shares”), representing the Class I
Preferred Stock, representing 56.25% of the Class I Depositary
Shares, representing a $225 million liquidation value of the Class
I Preferred Stock plus accrued and unpaid dividends.
The Class I Preferred Stock was redeemed at the redemption price
of $25,000.00 per share, plus $212.50 in accrued and unpaid
dividends on each share, and the Class I Depositary Shares were
redeemed at the redemption price of $25.00 per depositary share,
plus $0.2125 in accrued and unpaid dividends on each share.
Dividends ceased to accrue on the Class I Shares that were
redeemed.
In connection with this redemption, the company expects to incur
a non-cash transaction charge of approximately $7.0 million. In
addition to this non-cash transaction charge, the company will
incur a $1.6 million transaction charge related to the previously
announced tender of its outstanding 4.30% Series E Medium-Term
Notes due 2018. The combined $8.6 million in transaction charges
will reduce net income attributable to common stockholders per
diluted share and NAREIT Funds From Operations per diluted share by
approximately $0.02 in the third quarter of 2017.
About Kimco
Kimco Realty Corp. (NYSE:KIM) is a real estate investment trust
(REIT) headquartered in New Hyde Park, N.Y., that is one of North
America’s largest publicly traded owners and operators of open-air
shopping centers. As of June 30, 2017, the company owned interests
in 510 U.S. shopping centers comprising 84 million square feet of
leasable space primarily concentrated in the top major metropolitan
markets. 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 https://twitter.com/kimcorealty.
Safe Harbor Statement
The statements in this press 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 the
company’s 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 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 sections titled
“Risk Factors” in the prospectus supplement and prospectus relating
to the company’s 2025 notes and 2047 notes and in the company’s
Annual Report on Form 10-K for the year ended December 31, 2016, 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.
Non-GAAP Financial
Measures
NAREIT FFO: A supplemental non-GAAP measure utilized to
evaluate the operating performance of real estate companies. The
National Association of Real Estate Investment Trusts (“NAREIT”)
defines funds from operations (“NAREIT FFO”) as net income/(loss)
attributable to common shareholders computed in accordance with
generally accepted accounting principles in the United States,
excluding (i) gains or losses from sales of operating real estate
assets and change in control of interests, plus (ii) depreciation
and amortization of operating properties and (iii) impairment of
depreciable real estate and in substance real estate equity
investments and (iv) after adjustments for unconsolidated
partnerships and joint ventures calculated to reflect NAREIT FFO on
the same basis.
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version on businesswire.com: http://www.businesswire.com/news/home/20170907005884/en/
Kimco Realty CorporationDavid F. Bujnicki, 1-866-831-4297Senior
Vice President, Investor Relations and
Strategydbujnicki@kimcorealty.com
Kimco Realty (NYSE:KIM)
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