NEW HYDE PARK, NY-Continuing its US portfolio recycling initiative, retail REIT Kimco Realty Corp. has disposed of more of its non-strategic assets. Since the end of second quarter 2012, the company has sold 23 retail properties comprised of 2.7 million square feet for $165 million, including a subsequent quarter-end sale of a 13-property portfolio in the Midwest region, of which eight properties were located in Ohio and five in Indiana.
Since the start of the company’s asset recycling program in September 2010, Kimco has sold of 86 non-strategic properties comprising on a gross basis, 7.9 million square feet for $529.9 million. The REIT’s share of the proceeds from these sales was $387.4 million and was utilized by Kimco to “opportunistically add high-quality shopping centers in core markets to its portfolio," according to a company statement.
“We went through our portfolio and we identified a number of non-strategic shopping centers that we decided for a number of reasons, to dispose of them, primarily because they may have been in challenged markets, they may have had chronic vacancies, single-use, limited or low growth or just because we didn’t have the necessary scale of people in that geographic location,” David F. Bujnicki, Kimco’s VP of investor relations and corporate communications, previously stated to GlobeSt.com about the initiative.
During Q3, Kimco continued the strategy of reducing its non-retail investments by approximately $36.2 million through the sale of two urban properties and the partial repayment of a mortgage receivable.
After selling off the properties, the company is now investing in its primary areas. Since the end of Q2 2012, the company has also acquired four wholly-owned shopping centers comprising 581,000 square feet for $118.8 million, including $42.5 million of mortgage debt, in its primary core markets:
- Hawthorne Hills Square, a 193,000-square-foot property located in the Chicago suburb of Vernon Hills, IL. The property was purchased for $37.5 million, including the assumption of a $21.6 million mortgage, and is anchored by PetSmart, Dick’s Sporting Goods and ULTA.
- Savi Ranch, a 161,000-square-foot unencumbered shopping center located in Yorba Linda, CA in the Greater Los Angeles market. The property is anchored by Dick’s Sporting Goods, Bed Bath & Beyond and Michaels.
- Woodlawn Center, an unencumbered 137,000-square-foot Home Depot-anchored property in Charlotte, NC for $7.1 million. The property is adjacent to Kimco’s existing Woodlawn Marketplace and is the company’s seventh property in the growing Charlotte metropolitan statistical area.
- Wilton Campus Shops, a 97,000-square-foot Stop & Shop-anchored center in lower Fairfield County for $39.7 million, including $20.9 million of mortgage debt.
As of June 30, the company had interests in 926 shopping centers comprising 136 million square feet of leasable space across 44 states, Puerto Rico, Canada, Mexico and South America.
In September 2010, Kimco acquired 47 shopping centers comprised of six million square feet for $984.8 million. The properties have a combined gross occupancy of 94.5%.
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