Kimco Realty Completes Tender Offer for Preferred Stock Shares

Kimco Realty's Successful Tender Offer for Preferred Stock

Kimco Realty Corporation (NYSE: KIM) has recently concluded a transformative cash tender offer to repurchase its depositary shares, each representing a fraction of its 7.25% Class N Cumulative Convertible Perpetual Preferred Stock. This initiative reflects the company's ongoing strategy to manage its financial assets effectively and optimize its capital structure.

Details of the Tender Offer

According to the announcement, the tender offer, which concluded on December 12, invited holders of the company’s depositary shares to participate in the opportunity to sell their holdings back to Kimco at a price of $62.00 per share. In total, a remarkable 409,772 securities were accepted for purchase, translating to about 22.17% of the outstanding securities. This repurchase aligns with Kimco’s commitment to return value to shareholders and manage its balance sheet prudently.

Consent Solicitation Results

Alongside the repurchase, the company also conducted a consent solicitation aimed at obtaining shareholder approval for an amendment to its charter. However, the company reported that it did not secure the necessary consent from the required two-thirds of holders of the Class N Preferred Stock, thereby concluding that the proposed amendment would not take effect. This outcome underscores the complexities involved in corporate governance and shareholder engagement.

Financial Advisors and Stakeholders

J.P. Morgan Securities LLC played a pivotal role as both the dealer manager and consent solicitation agent for the tender offer, while D.F. King & Co., Inc. served as the information agent, and Equiniti Trust Company, LLC functioned as the tender agent. This collaboration illustrates the strategic partnerships Kimco engages in to enhance its operations and ensure transparent communication with its investors.

Investor Relations and Information

For any inquiries related to the tender offer, Kimco has encouraged interested parties to reach out to their financial advisors or the designated agents. Kimco remains committed to maintaining open lines of communication with its investors and stakeholders, providing them with timely updates and access to important information regarding their investments.

About Kimco Realty

As a leading real estate investment trust (REIT), Kimco Realty (NYSE: KIM) specializes in owning and operating high-quality, grocery-anchored shopping centers and mixed-use properties across the United States. With a robust portfolio comprising over 567 shopping centers and a strong presence in key metropolitan areas, the company prioritizes essential goods and services that guarantee consistent patronage.

Long-Standing Industry Leadership

Since its initial public offering in 1991 and its inclusion in the S&P 500 Index, Kimco has established itself as a leader in the shopping center sector, blending extensive market knowledge with a commitment to corporate responsibility. The company's extensive experience spans over six decades of navigating the evolving landscape of retail real estate, with a key focus on enhancing property value through strategic investments and redevelopment initiatives.

Future Outlook and Strategic Goals

Kimco Realty is poised to continue its path towards growth and innovation within the retail sector, emphasizing the importance of adaptability in response to shifting market trends. The company acknowledges the challenges posed by e-commerce and is committed to rethinking its tenant mix and enhancing customer experiences in its properties.

Engaging with Investors

In today’s digital era, Kimco Realty is leveraging new communications channels to engage with its stakeholders, including social media and investor relations platforms. This engagement ensures that investors remain informed about material events and strategic initiatives affecting the company.

Frequently Asked Questions

What was the key outcome of Kimco Realty's recent tender offer?

The tender offer successfully repurchased 409,772 depositary shares, amounting to roughly 22.17% of the total outstanding securities.

Why did Kimco Realty not proceed with the charter amendment?

Kimco did not obtain the necessary consent from two-thirds of the holders of the Class N Preferred Stock during the consent solicitation.

How much was Kimco Realty offering per depositary share?

Each depositary share was offered at a price of $62.00, plus any accrued and unpaid dividends.

Who were Kimco Realty’s financial advisors for this offer?

J.P. Morgan Securities LLC acted as the dealer manager and consent solicitation agent, while D.F. King & Co., Inc. served as the information agent.

What types of properties does Kimco Realty focus on?

Kimco Realty focuses on high-quality grocery-anchored shopping centers and mixed-use properties located in prime metropolitan areas.

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