The company has reduced its planned transaction income, which had totaled almost $675 million over the last five years, to nearly zero for the fourth quarter because of the lack of credit available to buyers. While Kimco is "uniquely positioned" to acquire and manage large portfolios for institutional investors, many potential acquirers are sitting on the sidelines waiting for the capital markets to stabilize, said David Henry, vice chairman and chief investment officer.

"The real estate markets have changed, and continue to change dramatically," Henry said. "From a new business perspective, we have responded by adopting a more focused strategy across our operating business. We plan on concentrating on retail properties that will align us with our core experience."

KDI, its fee merchant building division, has been merged into Kimco's redevelopment staff. Only two KDI development projects were approved and closed in 2007, and one this year. In addition, Kimco will limit its investment activity to retail investment and remains committed to Canada and Mexico. Henry noted that retailers such as Wal-Mart and Costco, which have slowed expansion in the US, are continuing to grow in Mexico.