Kimco Realty Corp. (NYSE:KIM) today reported that the company’s transaction activity for the first quarter of 2015 totaled more than $1.7 billion. Highlights include the acquisition of the remaining 66.7% ownership interest in the 39-property Kimstone portfolio for a gross price of $1.4 billion, the purchase of Copperfield Village in Houston, TX for $39.5 million, and the announced property trade with RioCan Real Estate Investment Trust (RioCan). Property dispositions for the quarter totaled $302.4 million on a gross basis and included the sale of six U.S. shopping centers, three Canadian properties and the sale of 37 net-leased restaurants. These transactions are further summarized below.

ACQUISITIONS

In the first quarter, Kimco acquired 40 high-quality shopping centers and four parcels adjacent to existing Tier 1 shopping centers totaling approximately 6.0 million square feet for a gross purchase price of approximately $1.5 billion. Details of these transactions are as follows:

  • Kimstone Portfolio: As previously announced, the company completed the acquisition of the remaining 66.7% interest in the 39-property Kimstone portfolio from its joint venture partner, a subsidiary of Blackstone Real Estate Partners VII, for $925 million, which included the assumption of $426.7 million in mortgage debt. The high-quality nature of the portfolio, having a gross value of $1.4 billion, is demonstrated by its three-mile average household income level of $93,000 and an average base rent per square foot of $15.88, both of which exceed Kimco’s current portfolio averages.
  • Copperfield Village: Kimco also purchased this 165,000-square-foot grocery-anchored center in Houston for $39.5 million, including $20.8 million of debt. Copperfield Village, situated in the affluent Copperfield Master Planned Community with 146,000 residents within a three mile radius, is well positioned at the intersection of the highly trafficked Highway 6 and Highway 529, directly across from two existing Kimco shopping centers, Copperwood Village and The Centre at Copperfield. This 97.1% occupied center is supported by a well-known list of anchors including Sprouts Farmers Market, Ross Dress for Less, Five Below and Panera Bread. The acquisition of Copperfield Village expands Kimco’s footprint in the Houston-The Woodlands-Sugarland Metropolitan Statistical Area (MSA) to 15 centers.
  • Acquired four separate improved parcels adjacent to existing Kimco Tier 1 shopping centers, and purchased the remaining 50% interest in an additional Tier 1 property from an existing joint venture partner for a total purchase price of $33.7 million. The acquired parcels increased the company’s gross leasable area (GLA) at Dulles Town Square (Sterling, Va.), Elmont Plaza (Elmont, N.Y.), Flagler Park Plaza (Miami, Fla.), Garden State Pavilions (Cherry Hill, N.J.) and Snowden Square S.C. (Columbia, Md.).

In addition, as part of a previously announced exchange transaction, Kimco will acquire the remaining 80% interest in Montgomery Plaza (Dallas-Fort Worth-Arlington MSA) from RioCan for gross price of $58.3 million. Montgomery Plaza is a 465,000 square foot shopping center, part of a mixed-use project which includes two luxury residential condo towers, with the potential to add additional density in the future, and shadow anchored by a 174,000 square foot Super Target. The acquisition of Montgomery Plaza is expected to close during 2015 shortly after receiving lender consent.

DISPOSITIONS

During the quarter, Kimco sold ownership interests in six U.S. properties, five of which were wholly owned, totaling 832,000 square feet, for a gross sales price of $54.1 million. The company’s pro-rata share from these sales was $34.4 million. These properties had an average pro-rata base rent of $7.32 per sq. ft. with a median household income of $54,000 within a three-mile radius, both of which are substantially below Kimco’s portfolio averages.

In addition, as previously announced and in two separate transactions, Kimco sold its 50% ownership interest in three Canadian shopping centers to RioCan for a gross price of $190.7 million, including $39.7 million of debt. Two of the properties sold, Brentwood Village (Calgary, Alberta) and Grand Park (Mississauga, Ontario), were part of the aforementioned trade transaction. The other Canadian property sold to RioCan was Leaside Centre (Toronto, Ontario) for $52.6 million. Also during the quarter, the company sold 37 net-leased restaurant properties for a gross sales price of $57.6 million.

ABOUT KIMCO

Kimco Realty Corp. (NYSE: KIM) is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that owns and operates North America’s largest publicly traded portfolio of neighborhood and community shopping centers. As of December 31, 2014, the company owned interests in 754 shopping centers comprising 110 million square feet of leasable space across 39 states, Puerto Rico, Canada, Mexico and Chile. 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.

SAFE HARBOR STATEMENT

The statements in this 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 that could 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, including but not limited to the company’s Annual Report on Form 10-K for the year ended December 31, 2014 and any subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. 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, 2014, as it may be updated or supplemented by subsequent Annual Reports on Form 10-K or Quarterly Reports on Form 10-Q filed with the SEC, which discuss these and other factors that could adversely affect the company’s results.