Kimco recently acquired a portfolio of existing centers in northern Mexico, and has invested in Chile. But the company also has approved its first small partnership in Brazil, and is looking at several other Latin American countries, including Peru.
"We going to expand in South America, but we're going to do it in a very careful, disciplined matter," says David Henry, vice chairman and chief investment officer.
Mexico is extremely under-retailed, he notes. The United States has about 45,000 neighborhood and community centers, while Mexico has 800 such centers, offering substantial opportunities for growth. During the quarter, the company purchased land for two new development projects, and has since established a new $300 million co-mingled fund with institutional partners to purchase land and develop retail centers in Mexico.
Still, "it is difficult to predict the exact volume of development activity at this time," Henry adds.
That doesn't mean the company is neglecting its domestic operations. During the quarter, Kimco acquired five shopping centers totaling 570,000 sf in its US core holdings, and sold five properties totaling 324,000 sf. Since then, the company acquired four additional shopping centers for $185.4 million.
For the quarter, funds from operations (FFO) were $202.8 million for the quarter, up 62.7% from a year ago. Net income available to common shareholders was $150.9 million, up 61.7% from the first quarter of 2006.
"The core portfolio is steadily improving," says Milton Cooper, chairman and CEO. "Occupancy, which was under 80% in the year 2000, is 96% today."
As of April 23, 2007, Kimco owned interests in approximately 1,365 properties, comprising 175 million square feet of leaseable space across 45 states, Puerto Rico, Canada, Mexico and Chile.
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