Kimco Realty to Issue Common Stock

Kimco Realty Corporation (KIM), a real estate investment trust (REIT), has recently announced plans to issue 25 million shares to raise cash to repay debt. The company will also grant the underwriters a 30-day option to purchase an additional 3.8 million shares to cover any over-allotments. Deutsche Bank Securities Inc. is the book-running manager for the public offering. 

Kimco will utilize the proceeds from the equity offering to partially repay the outstanding debt under its $1.5 billion unsecured U.S. revolving credit facility. The credit facility is scheduled to mature in Oct 2011, although Kimco has an option to extend it by one more year. 

Together with its subsidiaries, Kimco is the largest publicly traded owner and operator of neighborhood and community shopping centers in the U.S., with interests in 1,462 properties spanning 153 million square feet of space in 45 states across the country, along with Puerto Rico, Canada, Mexico, Chile, Brazil and Peru. The company also operates complementary businesses that include merchant buildings, private preferred equity, and real estate capital and advisory services. 

The company’s portfolio is concentrated mostly in high-income and high-growth areas. The largest tenants of Kimco include The Home Depot Inc. (HD), The TJX Companies Inc. (TJX), and Wal-Mart Stores Inc. (WMT), which are well-capitalized discount retailers having fared relatively well even as U.S. consumers become more price conscious.

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