Kimco Realty Reports Fourth Quarter and Full Year 2017 Transaction Activity
February 01 2018 - 8:45AM
Business Wire
Kimco Realty Corp. (NYSE: KIM) announced today transaction
activity for the fourth quarter and full year 2017.
Dispositions:
During the fourth quarter of 2017, Kimco sold 16 shopping
centers for $234.2 million. Kimco’s share of the sales price was
$174.0 million.
These dispositions included Westgate Market and Tall
Grass Center in Wichita, Kansas and Marshalls Plaza in
Cranston, Rhode Island for a total of $40.0 million, which complete
the company’s exit from Kansas and Rhode Island, as well as
Richland Marketplace, a 267,000 square-foot property in
Quakertown, Pennsylvania for $47.3 million.
For the full year 2017, the company’s dispositions included 38
shopping centers and 3 land parcels, totaling 4.4 million square
feet, for a gross sales price of $565.7 million. Kimco’s share of
the sales price was $430.4 million.
In January of 2018, Kimco completed the sales of three shopping
centers totaling over $30 million. For 2018, the company expects to
be a net seller of properties with Kimco’s pro-rata share of
dispositions, net of any acquisitions, to range between $700
million to $900 million. Currently, the company has approximately
$300 million of properties under contract or with an accepted
offer, with over $375 million of properties being marketed.
Acquisitions:
As previously announced, Kimco added Whittwood Town
Center, a 783,000-square-foot, grocery-anchored open-air
shopping center on a 54-acre infill site in the densely populated
Los Angeles suburb of Whittier, California, to its Signature Series
portfolio. The center features Target, Vons, PetSmart, Cost Plus
and 24 Hour Fitness in addition to Kohl’s, Sears and J.C. Penney,
that pay substantially below-market rents, with an aggregate
mark-to-market opportunity of 560%. The $123 million purchase price
was funded with 1031 Exchange proceeds along with the assumption of
$43 million in mortgage debt, which was completed in the fourth
quarter despite the offer having been accepted in April 2017.
In 2017, Kimco acquired three shopping centers and ten land
parcels for $382.1 million of which $377.4 million represents the
company’s pro-rata share.
“We are pleased with the execution of our disposition strategy
to date. Strong pricing enabled us to exceed the high end of our
2017 projection of $400 million, while validating the quality of
our assets and highlighting the disconnect between public and
private valuations,” stated Conor Flynn, Kimco’s Chief Executive
Officer. “We will continue to highlight this disconnect in 2018,
and while this activity will have a short-term dilutive impact, it
will enable Kimco to further enhance and exhibit the quality and
growth of our coastal-focused portfolio amid the ongoing retail
paradigm shift. We remain focused on maximizing long-term
shareholder value by transforming the portfolio through
acquisitions, dispositions, leasing, redevelopment and
development.”
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 December 31, 2017, the company owned
interests in 492 U.S. shopping centers comprising 83 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 60
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, 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20180201005725/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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