Kimco Realty Acquires Balance of KIF I Portfolio $408M

Kimco Realty Corp.

, North America's largest publicly traded owner and operator of neighborhood and community shopping centers, today announced that it has acquired the remaining 60.9-percent interest in the 12-property Kimco Income Fund I portfolio (KIF I) from its joint venture partners for a gross price of $408.0 million, including the assumption of $38.2 million in mortgage debt. As part of this transaction, the company will repay $118.9 million of mortgage debt encumbering nine of the properties. In addition, Kimco earned a cash promote of approximately $18.8 million, which was used to reduce the company's overall cash payment to $251.4 million. With the KIF I acquisition, Kimco continues to advance its simplification goals that include reducing the number of institutional joint ventures and partners, streamlining property ownership and management, and adding high-quality retail assets to its wholly owned portfolio. The addition of these properties, totaling 1.5 million square feet, also strengthens Kimco's footprint in key retail territories. KIF I properties are primarily located in the Mid-Atlantic, Northeast and Northern California regions of the U.S., in mature markets with high barriers to entry and strong surrounding trade demographics. This transaction furthers Kimco's portfolio transformation goals with these 12 grocery-anchored and necessity-based shopping centers that feature strong portfolio metrics and above-average occupancy, rent and household income levels. The high-quality nature of these assets is demonstrated by a three-mile, average household income level of $98,000, and an average base rent per square foot of $17.59, both of which exceed Kimco's current portfolio averages by 17 percent and 35 percent, respectively. The KIF portfolio is 98 percent occupied and supported by such notable national retailers as Royal Ahold, Safeway, Dick's Sporting Goods and TJX-Companies' businesses. In addition, 10 of the 12 properties are anchored by the top one or two grocers in each respective market.