Kimco AG真人官方ty庐 Announces Pricing of $500 Million Aggregate Principal Amount of 5.300% Notes due 2036
- Successfully secured $500 million in long-term financing through notes offering
- Strong institutional backing with multiple major financial institutions as joint book-running managers
- Proceeds will help optimize debt structure by paying down revolving credit facility
- Large portfolio of 567 shopping centers provides strong asset backing for the debt
- Additional long-term debt obligation with 5.300% interest rate adds to company's debt service requirements
- 13-year maturity period represents a significant long-term financial commitment
Insights
Kimco's new $500M debt offering enhances liquidity while extending maturity profile at reasonable fixed rates in today's interest rate environment.
Kimco AG真人官方ty's $500 million notes offering represents a strategic debt capital raise with several notable implications. The 5.300% coupon rate with a 5.354% effective yield for 12-year notes is relatively favorable in the current higher interest rate environment, especially for a REIT with exposure to retail properties. This offering will help Kimco optimize its capital structure by paying down its revolving credit facility, which typically carries variable interest rates, essentially converting short-term flexible debt into long-term fixed-rate debt.
The company specifically mentioned using proceeds for acquisition and investment opportunities, suggesting management sees potential growth avenues in the current market. This proactive capital raising approach is particularly strategic amid persistent inflation and economic uncertainty, as it secures long-term funding at a fixed rate before potential future rate increases.
Looking at Kimco's profile as revealed in the release - 567 shopping centers comprising 101 million square feet - this capital raise represents a modest but meaningful enhancement to its financial flexibility. The February 2036 maturity extends Kimco's debt profile while maintaining a staggered debt maturity schedule, which is critical for REITs to avoid concentration of refinancing risk. The transaction demonstrates continued market access and investor confidence in Kimco's business model despite ongoing challenges in retail real estate, particularly as consumer shopping behaviors continue to evolve in the post-pandemic environment.
JERICHO, N.Y., June 16, 2025 (GLOBE NEWSWIRE) -- Kimco AG真人官方ty Corporation (NYSE: KIM) (the 鈥淐ompany鈥�) today announced that its subsidiary, Kimco AG真人官方ty OP, LLC (鈥淜imco OP鈥� and, together with the Company, 鈥淜imco鈥�), has priced a public offering of
Kimco intends to use the net proceeds from the offering for general corporate purposes, including, but not limited to, repaying outstanding borrowings under its
Wells Fargo Securities, LLC, BNP Paribas Securities Corp., PNC Capital Markets LLC, RBC Capital Markets, LLC, Truist Securities, Inc., Barclays Capital Inc., BMO Capital Markets Corp. and TD Securities (USA) LLC served as joint book-running managers in connection with the offering. BNY Mellon Capital Markets, LLC, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC served as senior co-managers in connection with the offering. Morgan Stanley & Co. LLC, Samuel A. Ramirez & Company, Inc., Scotia Capital (USA) Inc. and U.S. Bancorp Investments, Inc. served as co-managers in connection with the offering.
The offering of the notes is being made pursuant to an effective shelf registration statement, base prospectus and related prospectus supplement. Copies of the base prospectus and prospectus supplement, when available, may be obtained by contacting Wells Fargo Securities, LLC at 1-800-645-3751; BNP Paribas Securities Corp. at 1-800-854-5674; PNC Capital Markets LLC at 1-855-881-0697; RBC Capital Markets, LLC at 1-866-375-6829; or Truist Securities, Inc. at 1-800-685-4786. Investors may also obtain these documents for free by visiting EDGAR on the Securities and Exchange Commission鈥檚 (鈥淪EC鈥�) website at .
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
About Kimco AG真人官方ty庐
Kimco AG真人官方ty庐 (NYSE: KIM) is a real estate investment trust (REIT) and leading owner and operator of high-quality, open-air, grocery-anchored shopping centers and mixed-use properties in the United States. The company鈥檚 portfolio is strategically concentrated in the first-ring suburbs of the top major metropolitan markets, including high-barrier-to-entry coastal markets and Sun Belt cities. Its tenant mix is focused on essential, necessity-based goods and services that drive multiple shopping trips per week. Publicly traded on the NYSE since 1991 and included in the S&P 500 Index, the company has specialized in shopping center ownership, management, acquisitions, and value-enhancing redevelopment activities for more than 65 years. With a proven commitment to corporate responsibility, Kimco AG真人官方ty is a recognized industry leader in this area. As of March 31, 2025, the company owned interests in 567 U.S. shopping centers and mixed-use assets comprising 101 million square feet of gross leasable space.
Safe Harbor Statement
This communication contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company鈥檚 future plans, strategies and expectations, are generally identifiable by use of the words 鈥渂elieve,鈥� 鈥渆xpect,鈥� 鈥渋ntend,鈥� 鈥渃ommit,鈥� 鈥渁nticipate,鈥� 鈥渆stimate,鈥� 鈥減roject,鈥� 鈥渨ill,鈥� 鈥渢arget,鈥� 鈥減lan,鈥� 鈥渇orecast鈥� or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which, in some cases, are beyond the Company鈥檚 control and could materially affect actual results, performance or achievements. Factors which may cause actual results to differ materially from current expectations include, but are not limited to, (i) financial disruption, changes in trade policies and tariffs, geopolitical challenges or economic downturn, including general adverse economic and local real estate conditions, (ii) the impact of competition, including the availability of acquisition or development opportunities and the costs associated with purchasing and maintaining assets, (iii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business, (iv) the reduction in the Company鈥檚 income in the event of multiple lease terminations by tenants or a failure of multiple tenants to occupy their premises in a shopping center, (v) the potential impact of e-commerce and other changes in consumer buying practices, and changing trends in the retail industry and perceptions by retailers or shoppers, including safety and convenience, (vi) the availability of suitable acquisition, disposition, development, redevelopment and merger opportunities, and the costs associated with purchasing and maintaining assets and risks related to acquisitions not performing in accordance with our expectations, (vii) the Company鈥檚 ability to raise capital by selling its assets, (viii) disruptions and increases in operating costs due to inflation and supply chain disruptions, (ix) risks associated with the development of mixed-use commercial properties, including risks associated with the development, and ownership of non-retail real estate, (x) changes in governmental laws and regulations, including, but not limited to, changes in data privacy, environmental (including climate change), safety and health laws, and management鈥檚 ability to estimate the impact of such changes, (xi) valuation and risks related to the Company鈥檚 joint venture and preferred equity investments and other investments, (xii) collectability of mortgage and other financing receivables, (xiii) impairment charges, (xiv) criminal cybersecurity attack disruptions, data loss or other security incidents and breaches, (xv) risks related to artificial intelligence, (xvi) impact of natural disasters and weather and climate-related events, (xvii) pandemics or other health crises (xviii) our ability to attract, retain and motivate key personnel, (xix) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (xx) the level and volatility of interest rates and management鈥檚 ability to estimate the impact thereof, (xxi) changes in the dividend policy for the Company鈥檚 common and preferred stock and the Company鈥檚 ability to pay dividends at current levels, (xxii) unanticipated changes in the Company鈥檚 intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity, (xxiii) the Company鈥檚 ability to continue to maintain its status as a REIT for U.S. federal income tax purposes and potential risks and uncertainties in connection with its UPREIT structure, and (xxiv) other risks and uncertainties identified under Item 1A, 鈥淩isk Factors鈥� in our Annual Report on Form 10-K for the year ended December 31, 2024. Accordingly, there is no assurance that the Company鈥檚 expectations will be realized. The Company disclaims any intention or obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to refer to any further disclosures the Company makes in other filings with the SEC.
CONTACT:
David F. Bujnicki
Senior Vice President, Investor Relations and Strategy
Kimco AG真人官方ty Corporation
1-833-800-4343
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