Kimco Realty to Acquire Partner's Interest in 39-Property Kimstone Portfolio

NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--

Kimco Realty Corp. KIM today announced that its subsidiary has executed a contract to acquire the remaining 66.667% interest in the 39-property Kimstone portfolio from its joint venture partner, a subsidiary of Blackstone Real Estate Partners VII (BREP) for a price of $925 million, which includes the assumption of approximately $426.7 million in mortgage debt. The company will pay approximately $512.3 million to acquire BREP's interest. Kimco will use a combination of proceeds from recently completed and pending property sales in the U.S. and Latin America as well as availability under its existing $1.75 billion revolving credit facility to fund this transaction which is expected to be completed in the first quarter of 2015. Upon closing, Kimco will own 100% of the portfolio.

The portfolio, which consists of 39 high-quality properties totaling 5.6 million square feet, is approximately 97% occupied and is comprised of a balance between well-located, grocery-anchored shopping centers and dominant power centers in strong demographic areas that have high barriers to entry. The properties in the portfolio are concentrated in the core markets of New York, Virginia, Texas, Florida, California, and Maryland. The high-quality nature of the portfolio is demonstrated by its three-mile average household income level of $92,000 and an average base rent per square foot of $15.83, both of which exceed Kimco's current portfolio averages. Furthermore, the well-positioned portfolio offers a multitude of opportunities for redevelopment, repositioning and re-tenanting. The active pipeline already includes the replacement of an old Borders space with Nordstrom Rack in Reno, Nev. and the redevelopment of a specialty grocer at the Franklin Park Shopping Center in Spokane, Wash. The portfolio also includes four signature assets:

• 280 Metro Center, a 228,000 square foot property located in the San Francisco Bay Area of Colma, Calif., is widely recognized as the first dominant power center in the U.S. This 95-percent-occupied center is supported by a well-known list of anchors that includes Nordstrom Rack, Marshalls, Bed Bath & Beyond and several others.
• Airport Plaza, a 437,000 square foot power center, located in the densely populated, high income Long Island community of Farmingdale, N.Y. This 97-percent-occupied center features an anchor roster that includes Home Depot, PetSmart, Bed Bath & Beyond, and TJ Maxx and Regal Cinemas as a shadow anchor. In addition, the property will soon be redeveloped to include a highly regarded regional grocer.
• Dulles Town Crossing, a 799,000 square foot, fully occupied power center located in Sterling, Va., and anchored by Walmart, Lowes Home Center, Sam's Club, Nordstrom Rack, Bed Bath & Beyond, TJ Maxx, Best Buy and Cost Plus.
• Stafford Marketplace, a 331,000 square foot, fully occupied grocery anchored shopping center is located in Stafford, Va. and anchored by Shoppers Food, Ross Dress for Less, TJ Maxx, Michaels, Bed Bath & Beyond, and PetSmart.

With this acquisition, Kimco continues to advance its simplification goals that include reducing the number of properties in joint ventures, while adding high-quality retail assets to its wholly owned portfolio. In addition to the pending Kimstone transaction, to date during 2014 the company has acquired the remaining interests in 33 properties from its joint venture partners at a pro-rata amount of $697.6 million.

About Kimco

Kimco Realty Corp. 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 September 30, 2014, the company owned interests in 814 shopping centers comprising 117 million square feet of leasable space across 41 states, Puerto Rico, Canada, Mexico and South America. 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 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, (vii) risks related to our international operations, (viii) the availability of suitable acquisition and disposition opportunities, and risks related to acquisitions not performing in accordance with our expectations, (ix) valuation and risks related to our 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 section titled "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2013, 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.