RioCan and Kimco Jointly Announce Agreement for RioCan to Acquire Kimco's Interest Multiple Properties

RioCan Real Estate Investment Trust ("RioCan")

and Kimco Realty Corp. ("Kimco")

are pleased to announce that RioCan will acquire Kimco's 50% interest in two Canadian properties held in the RioKim joint venture, Brentwood Village and Grand Park, as part of a trade transaction whereby Kimco will purchase RioCan's 80% interest in Montgomery Plaza, a shopping center currently held in a joint venture with Kimco; Montgomery Plaza is located in the Dallas-Fort Worth area. The acquisition of Brentwood Village and RioCan Grand Park are expected to be completed on March 31, 2015, with the remaining closings to be completed upon obtaining customary lender consents. "This transaction again showcases the importance of RioCan's strategic relationships with our partners as we have been able to secure the remaining 50% interest in two high quality assets in a very competitive market. The acquisition of Kimco's interest in these two properties also provides RioCan more flexibility in terms of managing potential future intensification in both instances," said Edward Sonshine, Chief Executive Officer of RioCan. "Also, by selling the only co-owned and non-managed U.S. property in RioCan's portfolio, RioCan will now own and operate 100% of its U.S. portfolio." "This trade of property interests enables us to acquire Montgomery Plaza, a landmark property in a terrific area of Fort Worth, and is reflective of the wonderful partner relationship between Kimco and RioCan," said Dave Henry, Chief Executive Officer of Kimco. "In addition, the acquisition of Montgomery Plaza and the sale of our interest in these two Canadian properties help us further our goal of reducing the number of properties in joint ventures, especially those that we do not manage, while at the same time, expanding Kimco's ownership of larger, high quality properties in core U.S. markets." Transaction Details RioCan will acquire Kimco's 50% interest in Brentwood Village in Calgary, Alberta and Grand Park in Mississauga, Ontario at a total purchase price of $87.5 million net of in place debt of $8.0 million representing an equity commitment of $79.5 million by RioCan. RioCan will, in turn, sell its 80% interest in Montgomery Plaza in Fort Worth, Texas to Kimco at a sale price of US$58.3 million net of in place debt of US$23.6 million representing equity of US$34.7 million with the remaining purchase price to be paid in cash by RioCan. Details of the Properties Included in the Transaction Brentwood Village Brentwood Village, located in Calgary, Alberta, is a grocery anchored shopping centre containing 294,310 square feet of gross leasable area. The shopping centre's anchor tenants include Safeway, London Drugs, and Sears Whole Home. Other national retailers at the site include Pier 1 Imports, Sleep Country, Penningtons, TD Canada Trust, Bank of Montreal and Harvey's. Approximately 50,000 square feet of retail space was demolished in 2011 and the air rights were sold to a residential developer who subsequently constructed four condo towers. The residential towers include retail podiums consisting of 39,510 square feet that are owned and leased by RioCan. RioCan will acquire Kimco's 50% interest at a purchase price of $65.1 million which equates to a capitalization rate of 5.25% on in place income and an additional $4.0 million as consideration for the potential residential density and existing podium retail space. The property will be acquired free and clear of financing. The property is located near Calgary's rapid transit line, hospitals, and the University of Calgary. Grand Park RioCan Grand Park, located in Mississauga, Ontario, is a 118,637 square foot new format retail property. The centre contains a mix of national tenants that includes Winners and Shoppers Drug Mart. RioCan will acquire Kimco's 50% interest at a purchase price of $18.4 million which equates to a capitalization rate of 6.0%. In connection with the purchase, RioCan will assume Kimco's 50% interest on the in place debt of $8.0 million (at 50%) which carries a weighted average interest rate of 6.35% and is scheduled to mature in 2019 and 2024 subject to a mark to market adjustment. Montgomery Plaza Montgomery Plaza is a 465,011 square foot shopping center located in Fort Worth, Texas that was originally developed by a subsidiary of Kimco. This center, located at the corner of Carroll Street and W Seventh Street on the edge of downtown Fort Worth, spans 46 acres and features a wide array of live, work and play opportunities including two luxury residential condo towers with the potential to add additional density in the future. The property is 97.4% occupied and shadow-anchored by Super Target and anchored by Marshalls, Ross Dress for Less, PetSmart, Michaels and Office Depot. The anchors are complemented by nationally recognized tenants including Pier 1 Imports, Starbucks and Chick-fil-A. RioCan will sell its 80% interest in the property to Kimco at a sale price of US$58.3 million which equates to a capitalization rate of 5.75%. Kimco will assume RioCan's 80% interest in the existing mortgage debt of US$23.6 (at 80%) million that carries an interest rate of 3.90% and is scheduled to mature in 2022 subject to a mark to market adjustment.