Kimco Realty Corp. to Partially Monetize Albertsons Investment

Kimco Realty Corp., one of North America's largest publicly traded owners and operators of open-air, grocery-anchored shopping centers and mixed-use assets, announced that it will partially monetize its investment in Albertsons Companies, Inc. as part of Albertsons' $1.75 billion sale of convertible preferred stock. The company expects to receive its allocable share of the proceeds, which will reduce its ownership interest in Albertsons from approximately 9.29% to around 7.5% after the completion of the transaction, expected to close by June 15, 2020.

Key Takeaways:

• Kimco Realty Corp. will partially monetize its investment in Albertsons Companies, Inc. by selling a portion of its convertible preferred stock.
• The sale is part of Albertsons' $1.75 billion convertible preferred stock offering, with proceeds to be used to repurchase a portion of the common stock owned by Albertsons' current shareholders.
• Kimco expects to receive its allocable share of the proceeds and retain a 7.5% ownership interest in Albertsons after the completion of the transaction.
• The transaction is expected to close by June 15, 2020, subject to customary closing conditions.
• Kimco has received over $300 million in cash distributions from its Albertsons investment, including proceeds from the SUPERVALU stock sale.
• The company expects to recognize a gain from the transaction, which will be determined upon closing.
• The Albertsons investment has been a significant contributor to Kimco's Plus business, which has a long history of investing in real estate-rich retailers.
• The company's shareholders will continue to benefit from the investment, especially in times of liquidity constraints.

Statistics:

• Albertsons' $1.75 billion convertible preferred stock offering
• Kimco's allocable share of the proceed: unknown
• Current ownership interest in Albertsons: approximately 9.29%
• Expected ownership interest in Albertsons after the transaction: around 7.5%
• Cash distributions received from Albertsons investment: over $300 million
• Proceeds from the SUPERVALU stock sale: $74 million
• Gain expected from the transaction: unknown
• Number of U.S. shopping centers and mixed-use assets owned by Kimco: 401
• Total gross leasable space: 70 million square feet
• Number of years in real estate investment business: over 60
• Publicly traded on the NYSE since: 1991

Sources:

• Kimco Realty Corp. news release dated May 20, 2020
• SEC filings
• Albertsons Companies, Inc. news release dated May 20, 2020
• Comtex SmarTrend Alert dated May 21, 2012