Kimco Realty Second Quarter 2015 Transaction Activity Exceeds $500 Million; Company Continues Simplification – Further Reduces Joint Ventures and Sells Last Remaining Shopping Centers in Mexico

Kimco Realty Corp. (NYSE:KIM) today reported that the company’s transaction activity for the second quarter of 2015 totaled more than $500 million. Highlights include the acquisition of the remaining 24.7% equity interest in the 14-property Kimco Income Fund II portfolio based on a gross value of $341.1 million and the disposition of 16 shopping centers for a gross sales price of $144.0 million. In addition the company sold 6.4 million shares of SUPERVALU INC. (NYSE:SVU) common stock for $58.6 million.

ACQUISITIONS

In the second quarter, Kimco acquired the full ownership interest in 14 high-quality shopping centers and several improved parcels adjacent to existing Tier 1 shopping centers totaling approximately 2.0 million square feet for a gross purchase price of approximately $367.4 million. Details of these transactions are as follows:

• Kimco Income Fund (KIF) II Portfolio: The company completed the acquisition of the 14-property KIF II portfolio from three existing joint venture partners based on a gross value of $341.1 million. Kimco, which previously held a 75.3% ownership interest in this consolidated joint venture, paid approximately $30.5 million for the remaining 24.7% equity interest. The KIF II portfolio is a geographically-diversified, primarily grocery-anchored portfolio totaling 1.9 million square feet across nine states including four sites located in California. The properties feature a well-known lineup of national retailers including Kroger, Giant Food, Ross Stores, Bed Bath & Beyond, Best Buy, DSW and Burlington Stores, Inc.
  
  With this acquisition, Kimco continues to execute on the company’s strategy of simplifying its business by reducing its number of joint ventures. Since 2010, the company has reduced the number of institutional joint venture partners by approximately 50%.

• Purchased several improved parcels adjacent to existing Kimco Tier 1 shopping centers: Milleridge Inn at Whole Foods-anchored Jericho Commons (Jericho, N.Y.); Michael’s at Nordstrom Rack-anchored West Farms (Farmington, Conn.), the fee interest and three to-be-developed pad parcels at Jewel-Osco-anchored 87th Street Center (Chicago, Ill.) and two well-positioned outparcels at Woodgrove Festival (Chicago, Ill.) for an aggregate price of $26.3 million.

Subsequently, in July 2015, Kimco acquired the remaining 80% interest in the 465,000-square-foot Montgomery Plaza shopping center (Dallas-Fort Worth-Arlington MSA) from RioCan Real Estate Investment Trust (RioCan) for $58.3 million based upon a gross value of $72.9 million. Montgomery Plaza is anchored by Super Target (shadow anchor), Marshalls, Ross Dress for Less, PetSmart, and Michaels, and also features two luxury residential condo towers offering the potential to add additional density in the future.

DISPOSITIONS

During the quarter, Kimco sold ownership interests in 13 U.S. properties totaling 1.3 million square feet for a gross sales price of $130.0 million. The company’s pro-rata share from these sales was $92.1 million. These properties had an average pro-rata base rent of $8.36 per sq. ft. and an average population of 59,000 within a three-mile radius, both of which are substantially below Kimco’s portfolio averages.

Kimco also disposed of several properties in Mexico during the second quarter 2015 including three remaining shopping centers for $14.0 million. In addition, the company sold 13 land parcels and one building in Mexico for a gross sales price of $23.3 million. Kimco’s share of proceeds from these sales totaled $22.9 million.

Also during the second quarter of 2015, the company sold seven wholly owned net-leased restaurant properties for a gross sales price of $14.5 million.

As previously announced, the company sold 6.4 million shares of SUPERVALU Inc. (NYSE: SVU) common stock. As a result of this transaction, Kimco received approximately $58.6 million in net proceeds and will recognize a gain on sale of approximately $32.4 million, or $0.08 per diluted share during the second quarter 2015. This gain was included in Kimco’s 2015 full year FFO guidance but is excluded from the calculation of FFO as adjusted. After this sale, Kimco still holds 1.8 million shares of SUPERVALU Inc. (NYSE: SVU) common stock.

ABOUT KIMCO

Kimco Realty Corp. (NYSE:KIM) is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y., that is North America’s largest publicly traded owner and operator of open air shopping centers. As of March 31, 2015, the company owned interests in 745 shopping centers comprising 108 million square feet of leasable space across 39 states, Puerto Rico, Canada 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. 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 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.

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