Kimco Realty boosts loan facility to $500 million

JERICHO, N.Y. - Kimco Realty (NYSE: KIM), a prominent real estate investment trust (REIT) specializing in open-air, grocery-anchored shopping centers and mixed-use properties, has upsized its unsecured term loan to $500 million, a significant increase from the previous $200 million. This financial move, announced today, involved the addition of four banks to the existing agreement, which originally included TD Bank, N.A. and was established on January 2, 2024.

The terms of the loan, including the applicable spread, maturity date, and credit covenants, remain consistent with the original agreement. Additionally, Kimco has entered into interest rate swap agreements, securing a blended rate of 4.78% on the incremental term loans. The company plans to allocate the proceeds for general corporate purposes, which may include reducing outstanding borrowings under its unsecured revolving credit facility.

Glenn G. Cohen, Kimco's Executive Vice President and Chief Financial Officer, expressed gratitude for the banking partners' support, emphasizing its contribution to maintaining a strong balance sheet and liquidity for the company. He stated that with this support, Kimco aims to continue its strategic investments and build long-term value for stakeholders.

The transaction was facilitated by Toronto Dominion (Texas) LLC as Administrative Agent, with Royal Bank of Canada and U.S. Bank National Association serving as Syndication Agents. BNP Paribas (OTC:BNPQY) and Scotia Financing (USA) LLC acted as Documentation Agents. TD Securities (USA) LLC was the Sole Bookrunner and Joint Lead Arranger, alongside Royal Bank of Canada and U.S. Bank National Association as Joint Lead Arrangers.

Kimco Realty has a strategic focus on properties located in the first-ring suburbs of major metropolitan markets, including coastal areas and growing Sun Belt cities. Its portfolio prioritizes essential, necessity-based goods and services that drive frequent shopping trips. As of March 31, 2024, Kimco owns interests in 569 U.S. shopping centers and mixed-use assets, totaling 101 million square feet of leasable space.

This financial strategy is based on a press release statement from Kimco Realty Corporation (NYSE:KIM).

In other recent news, Kimco Realty Corporation reported robust first quarter 2024 results, exceeding expectations with a positive same-site Net Operating Income (NOI) growth. The company also raised its full-year guidance for Funds From Operations (FFO) and same-site NOI. The successful integration of the RPT acquisition and a strong occupancy rate of 96% were key factors in these recent developments.

However, Deutsche Bank and Truist Securities have adjusted their stance on Kimco Realty. Deutsche Bank lowered the company's price target from $23.00 to $20.00, maintaining a hold rating due to concerns over the company's earnings growth. Truist Securities also revised its price target on shares of Kimco Realty, decreasing it to $22.00 from the previous $23.00, while keeping a hold rating on the stock.

Despite these adjustments, Kimco has shown resilience in a high-interest rate environment, focusing on grocery-anchored and lifestyle centers for future acquisitions. The company expects increased transaction activity in the second half of the year, despite current market uncertainties.

InvestingPro Insights

As Kimco Realty (NYSE: KIM) fortifies its financial position through an upsized unsecured term loan, the company's stock metrics provide additional insight into its market performance. According to InvestingPro data, Kimco's market capitalization stands at a robust $14.52 billion, reflecting the size and stability of the company within the REIT sector. However, with a P/E ratio of 41.6 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 44.84, the stock is trading at a high earnings multiple, which could signal investor confidence in its future earnings potential.

An InvestingPro Tip worth noting is that Kimco has maintained its dividend payments for an impressive 33 consecutive years, showcasing a commitment to returning value to shareholders. Additionally, the company's liquid assets exceed its short-term obligations, indicating a strong liquidity position that may reassure investors of its ability to meet its financial commitments.

For those looking to delve deeper into the company's financials and stock performance, there are 11 additional InvestingPro Tips available at: https://www.investing.com/pro/KIM. Potential subscribers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing access to a wealth of analysis and data to inform investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.