NEW HYDE PARK, N.Y.--(BUSINESS WIRE)--Kimco Realty Corporation (NYSE: KIM) announced today that it has sold its remaining interest in the Valad convertible notes to an affiliate of Blackstone Real Estate Advisors VI L.P. for A$165 million plus any unpaid accrued interest. Proceeds from this transaction will be used to partially repay the balance on the company’s U.S. revolving credit facility.

Kimco President and CEO Dave Henry stated, “The sale of the Valad notes represents a major step forward in the reduction of our non-retail investment portfolio which was one of our main goals for 2011.”

As a result of this transaction, the company estimates it will recognize transaction income in the second quarter 2011 of approximately $3 million in Funds From Operations (FFO) with no gain or loss for purposes of Generally Accepted Accounting Principles (GAAP). The difference is attributable to a $3 million positive adjustment realized on the remeasurement of a derivative instrument for FFO purposes. The company is maintaining its 2011 guidance for recurring FFO, a widely accepted supplemental measure of REIT performance, of $1.17 - $1.21 per diluted share.

Additional 2011 non-retail activity includes the C$10 million repayment from Whiterock REIT for the redemption of their outstanding Series D convertible debentures in April, resulting in approximately $1 million of transaction income in the second quarter, as well as the sale of a Canadian hotel for approximately $11.9 million by Kimco and its joint venture partner, Westmont Hospitality Group in the first quarter.

Also during the first quarter, in separate transactions, the company disposed of two unconsolidated joint venture properties (in which Kimco held a 50% interest) for approximately $24.9 million, including $11.0 million of mortgage debt. The properties, comprising a total of 188,000 square feet, include a non-strategic shopping center located in Derby, Conn. and a Canadian auto dealership in Windsor, Ontario. Subsequent to quarter close, Kimco disposed of two wholly-owned non-strategic shopping centers comprising 138,000 square feet for $3.2 million.

First quarter 2011 acquisition activity includes the purchase of two grocery anchored centers and one community center, totaling 425,000 square feet for approximately $85.3 million, including $15.4 million in mortgage debt. These properties are approximately 94% occupied and located in top 20 major metropolitan statistical areas (MSA). The details of these acquisitions are as follows:

• Richland Marketplace (previously announced), a 266,000 square foot unencumbered shopping center located in Quakertown, Pa. (Philadelphia-Camden-Wilmington MSA) for $52.0 million by an existing joint venture with Canada Pension Plan Investment Board in which Kimco holds a 55% interest. This property is 93% occupied and anchored by BJ’s, Best Buy, PetSmart and shadow anchored by Target.
• Turnpike Plaza, a 53,000 square foot unencumbered grocery anchored center located in Huntington, N.Y. (New York-Northern New Jersey-Long Island MSA) for $7.9 million. This property is 100% occupied and anchored by Waldbaum’s.
• Centre Court, a 106,000 square foot grocery anchored center located in Pikesville, Md. (Baltimore-Towson MSA) for $25.4 million, including $15.4 million of mortgage debt. This property is 93% occupied and anchored by Giant Food.

Subsequent to quarter close, Kimco acquired Village Shoppes of Flowery Branch, a 93,000 square foot grocery anchored center located in Flowery Branch, Ga. (Atlanta-Sandy Springs-Marietta MSA) for $13.7 million, including $9.3 million of mortgage debt. This property is 92% occupied and anchored by Publix.

About Kimco

Kimco Realty Corporation, a real estate investment trust (REIT), owns and operates North America’s largest portfolio of neighborhood and community shopping centers. As of December 31, 2010, the company owned interests in 951 shopping centers comprising 138 million square feet of leasable space across 44 states, Puerto Rico, Canada, Mexico and South America. Publicly traded on the NYSE under the symbol KIM and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for 50 years. For further information, visit the company's web site at www.kimcorealty.com.

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, (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, (vii) the availability of suitable acquisition opportunities, (viii) valuation of joint venture investments, (ix) valuation of marketable securities and other investments, (x) increases in operating costs, (xi) changes in the dividend policy for our common stock, (xii) the reduction in our income in the event of multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center, and (xiii) impairment charges. 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 Securities and Exchange Commission filings, including but not limited to the company's Annual Report on Form 10-K for the year ended December 31, 2010. Copies of each filing may be obtained from the company or the Securities and Exchange Commission.

The company refers you to the documents filed by the company from time to time with the Securities and Exchange Commission, specifically the section titled "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2010, as may be updated or supplemented in the company’s Form 10-Q filings, which discuss these and other factors that could adversely affect the company's results.