0000879101 0001959472 false --12-31 FY 2023 false --12-31 FY 2023 false false false false 1.00 1.00 7,054,000 7,054,000 19,367 19,367 19,435 19,435 484,179 485,868 0.01 0.01 750,000,000 750,000,000 619,871,237 619,871,237 618,483,565 618,483,565 56,451 0 6,955 0 2,313 668 583 19,367 19,367 19,435 19,435 619,871,237 619,871,237 618,483,565 618,483,565 56,451 0 6,955 0 2,313 668 583 0.001 3 10 4 5 10 1 3 3 968 5 2 1.1 1 5 98 98 1 3 3.66 3.45 4.22 4.16 8 7 1 377,837 16.1 2 1 8 22,446 734 1,906 August 16, 2022 December 20,2022 August 16, 2022 December 20, 2022 0 0 0 500.0 0 0 0 0 0.001 Includes partial repayments during May and June 2022. Includes fixtures, leasehold improvements and other costs capitalized. As of December 31, 2023 and 2022, the Company had $6.7 million and $2.5 million of deferred financing costs, net related to the Credit Facility that are included in Other assets on the Company’s Consolidated Balance Sheets, respectively. The Company determined that its valuation of its mortgages payable were classified within Level 3 of the fair value hierarchy. The carrying value includes deferred financing costs of $1.2 million and $1.7 million as of December 31, 2023 and 2022, respectively. Operating lease liabilities are included in Operating lease liabilities and financing lease liabilities are included in Other liabilities on the Company's Consolidated Balance Sheets. Includes minimum base rents, expense reimbursements, ancillary income and straight-line rent adjustments. During 2023, the Company provided as a lender seller financing of $25.0 million related to the sale of an operating property located in Gresham, OR. See Footnote 11 of the Notes to the Company’s Consolidated Financial Statements for mortgage receivable loan disclosure. All adjustments to "GAAP net income from REIT operations" are net of amounts attributable to noncontrolling interests and TRSs. Other includes the Company’s previously held equity investments in the Prudential Investment Program and net gains on change in control. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as a result, recognized gains on change in control of interest of $7.7 million, in aggregate, resulting from the fair value adjustments associated with the Company’s previously held equity interests, which are included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Operations. The Company previously held an ownership interest of 15.0% in these property interests. See Footnote 6 of the Notes to the Company’s Consolidated Financial Statements. During 2023 and 2022, the Company sold shares of ACI common stock and recognized long-term capital gains for tax purposes of $241.2 million and $251.5 million, respectively. The Company elected to retain the proceeds from these stock sales for general corporate purposes and pay corporate income tax on the taxable gains. During 2023, the Company incurred federal taxes of $50.7 million and state and local taxes of $10.2 million. During 2022, the Company incurred federal taxes of $47.3 million and state and local taxes of $9.9 million. This undistributed long-term capital gain is allocated to, and reportable by, each shareholder, and each shareholder is also entitled to claim a federal income tax credit for its allocable share of the federal income tax paid by the Company. The allocable share of the long-term capital gain and the federal tax credit will be reported to direct holders of Kimco common stock, on Form 2439, and to others in year-end reporting documents issued by brokerage firms if the Company’s common stock is held in a brokerage account. During 2022, the Company recognized $4.0 million of profit participation related to the repayment of a mortgage loan, which is included in Other income, net on the Company’s Consolidated Statements of Income. For the years ended December 31, 2023, 2022 and 2021 amounts are before noncontrolling interests of $1.8 million, $1.7 million, and $3.0 million respectively and taxes of $1.6 million, $1.2 million and $2.2 million, respectively, after utilization of net operating loss carryforwards. Weighted-average interest rate Amount includes $130.0 million to pay off the outstanding balance on RPT’s credit facility at closing, additional consideration of $18.7 million relating to transaction costs incurred by RPT and $10,879 of cash paid in lieu of issuing fractional Kimco common shares. Amounts are included in Other income, net on the Company’s Consolidated Statements of Income. See Footnote 23 of the Notes to Consolidated Financial Statements for defined benefit plan disclosure. At December 31, 2023 and 2022, the Company had accumulated amortization relating to in-place leases and above-market leases aggregating $751,215 and $671,794, respectively. Includes bargain purchase options exercisable in 2023 related to two properties. The Company paid cash in lieu of issuing fractional Kimco common shares, which is included in “Cash Consideration” caption in the table below. Representing 104 property interests and 21.1 million square feet of GLA, as of December 31, 2023, and 111 property interests and 22.4 million square feet of GLA, as of December 31, 2022. There was an outstanding undrawn mortgage loan balance of $7.0 million as of December 31, 2023, for which the Company, as a lender, accrues interest at a rate of 0.5% per annum. During 2021, the Company purchased its partner’s 70.0% remaining interest in Jamestown Portfolio, which is comprised of six property interests. The Company then entered into a joint venture with Blackstone Real Estate Income Trust, Inc. (“BREIT”) in which it contributed these six properties for a gross sales price of $425.8 million, including $170.0 million of non-recourse mortgage debt. As a result, the Company no longer consolidates these six property interests and recognized a loss on change in control of interests of $0.4 million. The Company has a 50.0% investment in this joint venture ($130.1 million as of the date of deconsolidation), included in Investments in and advances to real estate joint ventures on the Company’s Consolidated Balance Sheets. Includes minimum base rents, expense reimbursements, percentage rent, lease termination fee income and ancillary income. Includes merger related book/tax differences of $4.8 million and ($20.7) million for the years ended December 31, 2023 and 2021, respectively. Comprised of two separate loans with original loan amounts ranging from $0.5 million to $1.9 million. Includes non-recourse liabilities of consolidated VIEs at December 31, 2023 and 2022 of $180,855 and $199.132, respectively. See Footnote 16 of the Notes to Consolidated Financial Statements. Relates to Preferred and Common Outside Partner Units, which were issued during 2022 and partially redeemed during 2023 described above. Land parcel Average remaining term includes extensions See Footnote 23 of the Notes to the Consolidated Financial Statements for defined benefit plan disclosure. These units are redeemable for cash by the holder or at the Company’s option, shares of the Company’s common stock, based upon the conversion calculation as defined in the agreement. These units are included in Noncontrolling interests on the Company’s Consolidated Balance Sheets. Amounts relate to adjustments to property carrying values for properties which the Company has marketed for sale and as such has adjusted the anticipated hold periods for such properties. The Company’s estimated fair values of these assets were primarily based upon estimated sales prices from signed contracts or letters of intent from third-party offers, which were less than the carrying value of the assets. Shopping center includes land held for development. Includes fair market value of debt adjustments, net and deferred financing costs, net. The Company issued 1,849 shares of Class N Preferred Stock with a par value of $1.00 per share, represented by 1,848,539 depositary shares. The liquidation preference is $92.4 million ($50.00 per depositary share) and the shareholders are entitled to fixed annual dividends of $3.625 per depositary share. The Class N Preferred Stock depositary shares are convertible at any time by the holders to 2.3071 of the Company’s common shares or under certain circumstances by the Company’s election. During 2022, the Prudential Investment Program recognized an impairment charge on a property of $15.1 million, of which the Company’s share was $2.3 million. Volatility is based on the annualized standard deviation of the daily logarithmic returns on dividend-adjusted closing prices over the look-back period based on the term of the award. Includes restricted assets of consolidated variable interest entities (“VIEs”) at December 31, 2023 and 2022 of $388,620 and $436,605, respectively. See Footnote 16 of the Notes to Consolidated Financial Statements. There was no prepayment charge associated with this early repayment. These units are redeemable for cash by the holder or callable by the Company and are included in Redeemable noncontrolling interests on the Company's Consolidated Balance Sheets. Includes restricted assets of consolidated variable interest entities (“VIEs”) at December 31, 20223 and 2022 of $388,620 and $436,605, respectively. See Footnote 16 of the Notes to Consolidated Financial Statements. Total Shareholder Returns, as used in the performance share awards computation, are measured based on cumulative dividend stock prices, as such a zero percent dividend yield is utilized. During March 2023, the Company received a parcel as consideration resulting from the exercise of a termination option of an operating lease. During 2022, the Company recognized impairment charges of $19.2 million, before noncontrolling interests of $16.0 million, related to five properties. Net operating losses do not expire. Relates to interest expense on finance lease liabilities, which were acquired in connection with the Merger. The Company incurred a prepayment charge of $6.5 million and $0.7 million in write-off of deferred financing costs resulting from this early repayment, which are included in Early extinguishment of debt charges on the Company's Condensed Consolidated Statements of Income. Other consists of redeemable noncontrolling interest of $79.7 million and an embedded derivative liability associated with put and call options of these units of $56.0 million. See Footnotes 14 and 15 of the Company’s Consolidated Financial Statements for additional discussion regarding fair value allocation to unitholders for noncontrolling interests. Accrues interest at a rate of Adjusted Term Secured Overnight Financing Rate (“Adjusted Term SOFR”), as defined, plus 0.755% as of December 31, 2023 and 2022. During 2023, the Company contributed a land parcel and related entitlements, located in Admore, PA, into a preferred equity investment with a gross value of $19.6 million. As a result, the Company no longer consolidates this land parcel and has a non-controlling interest in this investment. See Footnote 7 of the Notes to the Company’s Consolidated Financial Statements for preferred equity investment disclosure. The negative balance for costs capitalized subsequent to acquisition could include parcels/out-parcels sold, assets held-for-sale, provision for losses and/or demolition of part of a property for redevelopment. The Company determined that the valuation of its senior unsecured notes were classified within Level 2 of the fair value hierarchy. The estimated fair value amounts classified as Level 2 as of December 31, 2023 and 2022, were $6.7 billion and $5.8 billion, respectively. The carrying value includes deferred financing costs of $65.0 million and $66.4 million as of December 31, 2023 and 2022, respectively. During 2023, the Company’s Board of Directors declared a $0.09 per common share special cash dividend to maintain distribution requirements as a REIT. The effect of the assumed conversion of certain convertible units had an anti-dilutive effect upon the calculation of Net income available to the Company’s common shareholders per share. Accordingly, the impact of such conversions has not been included in the determination of diluted earnings per share calculations. Additionally, there were 0.3 million stock options that were not dilutive as of December 31, 2022. During 2021, the Company acquired $13.4 million of mortgage loan receivables in connection with the merger with Weingarten. The weighted-average grant date fair value for restricted stock issued during the years ended December 31, 2023, 2022 and 2021 were $21.30, $24.27 and $17.81, respectively. The Company determined that the valuation of its mortgage and other financing receivables were classified within Level 3 of the fair value hierarchy. Includes a long term capital gain of $241.2 million and $251.5 million for the years ended December 31, 2023 and 2022, respectively, for which the Company elected to pay the associated corporate income taxes. Upon consummation of the RPT Merger, the Parent Company owns 99.86% of the outstanding OP Units in Kimco OP, which is no longer a disregarded entity for federal income tax purposes. Comprised of two separate loans with original loan amounts ranging from $3.1 million to $3.4 million. For the years ended December 31, 2023, 2022 and 2021, the corresponding common stock equivalent of these vested awards were 970,231, 998,238 and 814,160 shares, respectively. The aggregate cost for Federal income tax purposes was approximately $130.7 million as of December 31, 2023. The amounts represent adjustments associated with potentially uncollectible revenues and disputed amounts. Relates to changes in estimates in insured events in the prior years, incurred losses and loss adjustment expenses. For the year ended December 31, 2021, includes $5.3 million of liability incurred as a result of the Merger. The weighted-average grant date fair value for performance shares issued during the years ended December 31, 2023, 2022 and 2021 were $42.61, $31.19 and $22.96, respectively. 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Table of Contents



 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K

 

☑         ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended December 31, 2023

 

OR

 

☐         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                     to                    

 

Commission file number 1-10899 (Kimco Realty Corporation)

Commission file number 333-269102-01 (Kimco Realty OP, LLC)

 

KIMCO REALTY CORPORATION

KIMCO REALTY OP, LLC

(Exact name of registrant as specified in its charter)

 

Maryland (Kimco Realty Corporation)

Delaware (Kimco Realty OP, LLC)

 

13-2744380

92-1489725

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

500 North Broadway, Suite 201, Jericho, NY 11753

(Address of principal executive offices)  (Zip Code)

 

(516) 869-9000

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Kimco Realty Corporation

 

Title of each class

Trading Symbol(s)

Name of each exchange on

which registered

Common Stock, par value $.01 per share.

KIM

New York Stock Exchange

Depositary Shares, each representing one-thousandth of a share of 5.125% Class L Cumulative Redeemable Preferred Stock, $1.00 par value per share.

KIMprL

New York Stock Exchange

Depositary Shares, each representing one-thousandth of a share of 5.250% Class M Cumulative Redeemable Preferred Stock, $1.00 par value per share.

KIMprM

New York Stock Exchange

Depositary Shares, each representing one-thousandth of a share of 7.250% Class N Cumulative Convertible Preferred Stock, $1.00 par value per share.

KIMprN

New York Stock Exchange

 

Kimco Realty OP, LLC

 

Title of each class

Trading Symbol(s)

Name of each exchange on

which registered

None

N/A

N/A

 

Securities registered pursuant to section 12(g) of the Act:   None

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Kimco Realty Corporation Yes ☑ No ☐                                                      Kimco Realty OP, LLC Yes ☑ No ☐

 

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Kimco Realty Corporation Yes ☐ No ☑                                                      Kimco Realty OP, LLC Yes ☐ No ☑

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Kimco Realty Corporation Yes ☑ No ☐                                                      Kimco Realty OP, LLC Yes ☑ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Kimco Realty Corporation Yes ☑ No ☐                                                      Kimco Realty OP, LLC Yes ☑ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Kimco Realty Corporation:

Large accelerated filer

Accelerated filer

 

Non-accelerated filer

Smaller reporting company

Emerging growth company

   

 

Kimco Realty OP, LLC:

Large accelerated filer

Accelerated filer

 

Non-accelerated filer

Smaller reporting company

Emerging growth company

   

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Kimco Realty Corporation ☐                                                      Kimco Realty OP, LLC

 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

Kimco Realty Corporation ☑                                                      Kimco Realty OP, LLC

 

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

Kimco Realty Corporation ☐                                                      Kimco Realty OP, LLC

 

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).

Kimco Realty Corporation ☐                                                      Kimco Realty OP, LLC

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Kimco Realty Corporation Yes ☐ No ☑                                                      Kimco Realty OP, LLC Yes ☐ No ☑         

 

The aggregate market value of the voting and non-voting common equity held by non-affiliates of Kimco Realty Corporation was approximately $12.0 billion based upon the closing price on the New York Stock Exchange for such equity on June 30, 2023.

 

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.

 

As of February 9, 2024, Kimco Realty Corporation had 672,904,480 shares of common stock outstanding.

 

DOCUMENTS INCORPORATED BY REFERENCE

 

Part III incorporates certain information by reference to the Kimco Realty Corporation's definitive proxy statement to be filed with respect to the Annual Meeting of Stockholders expected to be held on May 7, 2024.

 

Index to Exhibits begins on page 48.

 



 

  

 

KIMCO REALTY CORPORATION

KIMCO REALTY OP, LLC

 

ANNUAL REPORT ON FORM 10-K

FISCAL YEAR ENDED DECEMBER 31, 2023

 

EXPLANATORY NOTE

 

Prior to January 1, 2023, the business of Kimco Realty Corporation (the “Company”) was conducted through a predecessor entity also known as Kimco Realty Corporation (the “Predecessor”). On December 14, 2022, the Predecessor’s Board of Directors approved the entry into an Agreement and Plan of Merger (the “UPREIT Merger”) with the company formerly known as New KRC Corp., which was a Maryland corporation and wholly owned subsidiary of the Predecessor (the “Parent Company”), and KRC Merger Sub Corp., which was a Maryland corporation and wholly owned subsidiary of the Parent Company (“Merger Sub”), to effect the reorganization (the “Reorganization”) of the Predecessor’s business into an umbrella partnership real estate investment trust, or “UPREIT”.

 

On January 1, 2023, pursuant to the UPREIT Merger, Merger Sub merged with and into the Predecessor, with the Predecessor continuing as the surviving entity and a wholly owned subsidiary of the Parent Company, and each outstanding share of capital stock of the Predecessor was converted into one equivalent share of capital stock of the Parent Company (each share of which has continued to trade under their respective existing ticker symbol with the same rights, powers and limitations that existed immediately prior to the Reorganization).

 

In connection with the Reorganization, the Parent Company changed its name to Kimco Realty Corporation, and replaced the Predecessor as the New York Stock Exchange-listed public company. Effective as of January 3, 2023, the Predecessor converted into a limited liability company, organized in the State of Delaware, known as Kimco Realty OP, LLC, the entity we refer to herein as “Kimco OP”.

 

Following the Reorganization, substantially all of the Company’s assets are held by, and substantially all of the Company’s operations are conducted through, Kimco OP (either directly or through its subsidiaries), as the Company’s operating company, and the Company is the managing member of Kimco OP. The officers and directors of the Company are the same as the officers and directors of the Predecessor immediately prior to the Reorganization.

 

The Parent Company is a real estate investment trust ("REIT") and is the managing member of Kimco OP. As of December 31, 2023, the Parent Company owned 100% of the outstanding limited liability company interests (the "OP Units") in Kimco OP.

 

Stockholders' equity and members’ capital are the primary areas of difference between the Consolidated Financial Statements of the Parent Company and those of Kimco OP. Kimco OP’s capital currently includes OP Units owned solely by the Parent Company, and may in the future include non-controlling OP Units owned by third parties. OP Units owned by third parties, if any, will be accounted for within capital on Kimco OP’s financial statements and in non-controlling interests in the Parent Company’s financial statements.

 

The Parent Company consolidates Kimco OP for financial reporting purposes, and the Parent Company does not have significant assets other than its investment in Kimco OP. Therefore, while stockholders’ equity and members’ capital differ as discussed above, the assets and liabilities of the Parent Company and Kimco OP are the same on their respective financial statements.

 

The Company believes combining the annual reports on Form 10-K of the Parent Company and Kimco OP into this single report provides the following benefits:

 

Enhances investors' understanding of the Parent Company and Kimco OP by enabling investors to view the businesses as a whole in the same manner as management views and operates the business;

 

Eliminates duplicative disclosure and provides a more concise and readable presentation because a substantial portion of the disclosure applies to both the Parent Company and Kimco OP; and

 

Creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

In order to highlight the differences between the Parent Company and Kimco OP, there are sections in this Annual Report that separately discuss the Parent Company and Kimco OP, including separate financial statements (but combined footnotes), separate controls and procedures sections, and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure for the Parent Company and Kimco OP, unless context otherwise requires, this Annual Report refers to actions or holdings of Parent Company and/or Kimco OP as being the actions or holdings of the Company (either directly or through its subsidiaries, including Kimco OP).

 

Throughout this Annual Report, unless the context requires otherwise:

 

 

The “Company,” “we,” “our” or “us” refer to:

 

o

for the period prior to January 1, 2023 (the period preceding the UPREIT Merger), the Predecessor and its business and operations conducted through its directly or indirectly owned subsidiaries;

 

o

for the period on or after January 1, 2023 (the period from and following the UPREIT Merger), the Parent Company and its business and operations conducted through its directly or indirectly owned subsidiaries, including Kimco OP; and

 

o

in statements regarding qualification as a REIT, such terms refer solely to the Predecessor or Parent Company, as applicable.

 

“Kimco OP” refers to Kimco Realty OP, LLC, our operating company following the UPREIT Merger.

 

References to “shares” and “shareholders” refer to the shares and shareholders of the Predecessor prior to January 1, 2023 and of the Parent Company on or after January 1, 2023, and not the limited liability company interests of Kimco OP.

 

 

 

 

TABLE OF CONTENTS

 

Item No.

Form 10-K
Report Page

 

PART I 4
   
Item 1. Business 4
   
Item 1A. Risk Factors 11
   
Item 1B. Unresolved Staff Comments 23
   
Item 1C. Cybersecurity 23
   
Item 2. Properties 24
   
Item 3. Legal Proceedings 25
   
Item 4. Mine Safety Disclosures 25
   
PART II 26
   
Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26
   
Item 6. Reserved 28
   
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 28
   
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 44
   
Item 8. Financial Statements and Supplementary Data 44
   
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 44
   
Item 9A. Controls and Procedures 44
   
Item 9B. Other Information 45
   
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 45
   
PART III 46
   
Item 10. Directors, Executive Officers and Corporate Governance 46
   
Item 11. Executive Compensation 46
   
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 46
   
Item 13. Certain Relationships and Related Transactions, and Director Independence 46
   
Item 14. Principal Accountant Fees and Services 46
   
PART IV 47
   
Item 15. Exhibits and Financial Statement Schedules 47
   
Item 16. Form 10-K Summary 47
 

 

  

 

FORWARD-LOOKING STATEMENTS

 

This annual report on Form 10-K (“Form 10-K”), together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  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’s future plans, strategies and expectations, are generally identifiable by use of the words “believe,” “expect,” “intend,” “commit,” “anticipate,” “estimate,” “project,” “will,” “target,” “plan,” “forecast” 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’s control and could materially affect actual results, performances or achievements. Factors which may 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 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’s 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 and redevelopment 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’s 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’s ability to estimate the impact of such changes, (xi) the Company’s failure to realize the expected benefits of the merger with RPT Realty (“RPT Merger”), (xii) significant transaction costs and/or unknown or inestimable liabilities related to the RPT Merger, (xiii) the risk of litigation, including shareholder litigation, in connection with the RPT Merger, including any resulting expense, (xiv) the ability to successfully integrate the operations of the Company and RPT and the risk that such integration may be more difficult, time-consuming or costly than expected, (xv) risks related to future opportunities and plans for the combined company, including the uncertainty of expected future financial performance and results of the combined company, (xvi) effects relating to the RPT Merger on relationships with tenants, employees, joint venture partners and third parties, (xvii) the possibility that, if the Company does not achieve the perceived benefits of the RPT Merger as rapidly or to the extent anticipated by financial analysts or investors, the market price of the Company’s common stock could decline, (xviii) valuation and risks related to the Company’s joint venture and preferred equity investments and other investments, (xix) valuation of marketable securities, (xx) impairment charges, (xxi) criminal cybersecurity attacks disruption, data loss or other security incidents and breaches, (xxii) risks related to artificial intelligence, (xxiii) impact of natural disasters and weather and climate-related events, (xxiv) pandemics or other health crises, such as coronavirus disease 2019 (“COVID-19”), (xxv) our ability to attract, retain and motivate key personnel, (xxvi) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms to the Company, (xxvii) the level and volatility of interest rates and management’s ability to estimate the impact thereof, (xxviii) changes in the dividend policy for the Company’s common and preferred stock and the Company’s ability to pay dividends at current levels, (xxix) unanticipated changes in the Company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity, (xxx) the Company’s 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 (xxxi) other risks and uncertainties identified under Item 1A, “Risk Factors” and elsewhere in this Form 10-K and in the Company’s other filings with the Securities and Exchange Commission (“SEC”). Accordingly, there is no assurance that the Company’s 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 or related subjects in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K that the Company files with the SEC. Certain forward-looking and other statements in this Annual Report on Form 10-K, or other locations, such as our corporate website, contain various environmental, social, and governance (“ESG”) standards and frameworks (including standards for the measurement of underlying data) and the interests of various stakeholders. As such, such information may not, and should not be interpreted as necessarily being, “material” under the federal securities laws for SEC reporting purposes, even if we use the word “material” or “materiality” in this document. ESG information is also often reliant on third-party information or methodologies that are subject to evolving expectations and best practices, and our approach to and discussion of these matters may continue to evolve as well. For example, our disclosures may change due to revisions in framework requirements, availability of information, changes in our business or applicable governmental policies, or other factors, some of which may be beyond our control.

 

 

3

 

PART I

 

Item 1. Business

 

Overview

 

The Company is North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers and a growing portfolio of mixed-use assets. The Company’s mission is to create destinations for everyday living that inspire a sense of community and deliver value to our many stakeholders.

 

The Company began operations through its predecessor, The Kimco Corporation, which was organized in 1966 upon the contribution of several shopping center properties owned by its principal stockholders. In 1973, these principals formed the Company as a Delaware corporation, and, in 1985, the operations of The Kimco Corporation were merged into the Company. The Company completed its initial public stock offering (the “IPO”) in November 1991, and, commencing with its taxable year which began January 1, 1992, elected to qualify as a REIT in accordance with Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”). To qualify as a REIT, the Company must meet several organizational and operational requirements and is required to annually distribute at least 90% of its net taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain. In addition, the Company will be subject to federal income tax at regular corporate rates to the extent that it distributes less than 100% of its net taxable income, including any net capital gains.  In January of 2023, the Company consummated the Reorganization into an UPREIT structure as described in the Explanatory Note at the beginning of this Annual Report.  If, as the Company believes, it is organized and operates in such a manner so as to qualify and remain qualified as a REIT under the Code, the Company generally will not be subject to U.S. federal income tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income, as defined in the Code. The Company maintains certain subsidiaries that made joint elections with the Company to be treated as taxable REIT subsidiaries (“TRSs”). This permits the Company to engage in certain business activities that a REIT may not conduct directly, by conducting such business activities through such TRSs. A TRS is subject to federal and state taxes on its income, and the Company includes a provision for taxes in its consolidated financial statements. In 1994, the Predecessor reorganized as a Maryland corporation. In March 2006, the Predecessor was added to the S&P 500 Index, an index containing the stock of 500 Large Cap companies, most of which are U.S. corporations. The Company's common stock, Class L Depositary Shares, Class M Depositary Shares, and Class N Depositary Shares are traded on the New York Stock Exchange (“NYSE”) under the trading symbols “KIM”, “KIMprL”, “KIMprM”, and “KIMprN”, respectively.

 

The Company is a self-administered REIT and has not engaged, nor does it expect to retain, any REIT advisors in connection with the operation of its properties. The Company’s ownership interests in real estate consist of its consolidated portfolio and portfolios where the Company owns an economic interest, such as properties in the Company’s investment real estate management programs, where the Company partners with institutional investors and also retains management.

 

The Company began to expand its operations through the development of real estate and the construction of shopping centers but revised its growth strategy to focus on the acquisition and redevelopment of existing shopping centers that include a grocery component. Additionally, the Company developed various residential and mixed-use operating properties and continues to obtain entitlements to embark on additional projects of this nature through re-development opportunities.

 

The Company has implemented its investment real estate management format through the establishment of various institutional joint venture programs, in which the Company has noncontrolling interests. The Company earns management fees, acquisition fees, disposition fees as well as promoted interests based on achieving certain performance metrics.

 

In addition, the Company has capitalized on its established expertise in retail real estate by establishing other ventures in which the Company owns a smaller equity interest and provides management, leasing and operational support for those properties. The Company has also provided preferred equity capital to real estate professionals and, from time to time, provides real estate capital, financing and management services to both healthy and distressed retailers. The Company has also made selective investments in secondary market opportunities where a security or other investment is, in management’s judgment, priced below the value of the underlying assets, however, these investments are subject to volatility within the equity and debt markets.

 

As described in greater detail in the Explanatory Note to this Form 10-K, (i) on January 1, 2023, as a result of the Reorganization, the Parent Company, a Maryland corporation, became the successor issuer to the Predecessor, and (ii) on January 3, 2023, the Predecessor converted into Kimco OP, a limited liability company, organized in the State of Delaware. At December 31, 2023, the Parent Company is the managing member of Kimco OP and owns 100% of the limited liability company interests of, and exercises exclusive control over, Kimco OP.

 

As of December 31, 2023, the Company had interests in 523 shopping center properties (the “Combined Shopping Center Portfolio”), aggregating 89.7 million square feet of gross leasable area (“GLA”), located in 28 states. In addition, the Company had 21 other property interests, primarily through the Company’s preferred equity investments and other investments, totaling 5.5 million square feet of GLA.

 

 

RPT Merger

 

On August 28, 2023, the Company and RPT Realty (“RPT”) announced that they had entered into a definitive merger agreement (the “Merger Agreement”) pursuant to which the Company would acquire RPT through a series of mergers (collectively, the “RPT Merger”). On January 2, 2024, RPT merged with and into the Company, with the Company continuing as the surviving public company. The RPT Merger added 56 open-air shopping centers, 43 of which are wholly owned and 13 of which are owned through a joint venture, comprising 13.3 million square feet of GLA, to the Company’s existing portfolio of 523 properties. In addition, pursuant to the RPT Merger, the Company obtained RPT’s 6% stake in a 49-property net lease joint venture.

 

Under the terms of the Merger Agreement, each RPT common share was converted into 0.6049 of a newly issued share of the Company’s common stock, together with cash in lieu of fractional shares, and each 7.25% Series D Cumulative Convertible Perpetual Preferred Share of RPT was converted into the right to receive one depositary share representing one one-thousandth of a share of the Company’s 7.25% Class N Cumulative Convertible Perpetual Preferred Stock, par value $1.00 per share (the “Class N Preferred Stock”). In connection with the RPT Merger, the Company issued 53.0 million shares of common stock, 1.8 million shares of Class N Preferred Stock, and 953,400 OP Units.  See Footnote 28 of the Notes to Consolidated Financial Statements for further details on the RPT Merger.

 

Economic Conditions

 

The economy continues to face several issues, including inflation risk, liquidity constraints, lack of qualified employees, tenant bankruptcies and supply chain disruptions, which could impact the Company and its tenants. In response to the rising rate of inflation, the Federal Reserve steadily increased interest rates and has kept them at elevated levels. The Federal Reserve may continue to increase interest rates or maintain these elevated levels, until the rate of inflation begins to decrease. These elevated interest rates could adversely impact the business and financial results of the Company and its tenants. In addition, slower economic growth and the potential for a recession could have an adverse effect on the Company and its tenants. This could negatively affect the overall demand for retail space, including the demand for leasable space in the Company’s properties.

 

Any of these events could materially adversely impact the Company’s business, financial condition, results of operations or stock price. The Company continues to monitor economic, financial, and social conditions and will assess its asset portfolio for any impairment indicators. If the Company determines that any of its assets are impaired, the Company would be required to take impairment charges, and such amounts could be material.

 

Business Objective and Strategies

 

The Company has developed a strong nationally diversified portfolio of open-air, grocery anchored shopping centers located in drivable first-ring suburbs primarily within 18 major metropolitan sun belt and coastal markets, which are supported by strong demographics, significant projected population growth, and where the Company perceives significant barriers to entry.  As of December 31, 2023, the Company derived 86% of its proportionate share of annualized base rental revenues from these top major metro markets. The Company’s shopping centers provide essential, necessity-based goods and services to the local communities and are primarily anchored by a grocery store, home improvement center, off-price retailer, discounter and/or service-oriented tenant.

 

 

 

The Company’s focus on high-quality locations has led to significant opportunities for value creation through the reinvestment in its assets to add density, replace outdated shopping center concepts, and better meet changing consumer demands.  In order to add density to existing properties, the Company has obtained multi-family entitlements for 9,945 units of which 3,157 units have been constructed as of December 31, 2023.  The Company continues to place strategic emphasis on live/work/play environments and in reinvesting in its existing assets, while building shareholder value.  This philosophy is exemplified by the Company’s Signature SeriesTM properties which include key value creation projects in our portfolio that exemplify our transformation and highlight our focus on quality, concentration around core metropolitan statistical areas, and/or growth through redevelopment and development opportunities. Signature Series properties also include fully entitled, shovel-ready mixed-use projects, and opportunities that we continue to identify and entitle as we seek to achieve the highest and best use of our real estate, enhance our communities, and create value for our stakeholders for years to come.

 

The strength and security of the Company’s balance sheet remains central to its strategy.  The Company’s strong balance sheet and liquidity position are evidenced by its investment grade unsecured debt ratings (BBB+/Baa1) by two major ratings agencies.  The Company maintains one of the longest weighted average debt maturity profiles in the REIT industry, now at 8.7 years.  The Company expects to continue to take steps to reduce leverage, unencumber assets and maintain its strong debt coverage metrics as mixed-use projects and redevelopments continue to come online and contribute additional cash flow growth.

 

Business Objective

 

The Company’s primary business objective is to be the premier owner and operator of open-air, grocery-anchored shopping centers, and a growing portfolio of mixed-use assets, in the U.S. The Company believes it can achieve this objective by:

 

increasing the value of its existing portfolio of properties and generating higher levels of portfolio growth;

 

increasing cash flows for reinvestment and/or for distribution to shareholders while maintaining conservative payout ratios;

 

maintaining strong debt metrics and our BBB+/Baa1 unsecured debt ratings

 

continuing growth in desirable demographic areas with successful retailers, primarily focused on grocery anchors; and

 

increasing the number of entitlements for residential use.

6

 

Business Strategies

 

The Company believes it is well positioned to achieve sustainable growth, with its strong core portfolio and its recent acquisitions allowing the Company to achieve higher occupancy levels, increased rental rates and rental growth in the future. The Company identified the following components to effectively execute and achieve its strategic goals:

mdabusinessstrategypic2024v5.jpg

The Company has identified the following areas where it is well positioned for sustainable growth in the future.

 

mdasustainablegrowthpic3.jpg
 

The Company reduces its operating and leasing risks through diversification achieved by the geographic distribution of its properties and a large tenant base. As of December 31, 2023, no single open-air shopping center accounted for more than 1.3% of the Company's annualized base rental revenues, including the proportionate share of base rental revenues from properties in which the Company has less than a 100% economic interest, or more than 1.4% of the Company’s total shopping center GLA. Furthermore, at December 31, 2023, the Company’s single largest tenant represented only 3.7%, and the Company’s five largest tenants aggregated less than 11.3%, of the Company’s annualized base rental revenues, including the proportionate share of base rental revenues from properties in which the Company has less than a 100% economic interest.

 

As one of the original participants in the growth of the shopping center industry and the nation's largest owner and operator of open-air shopping centers, the Company has established close relationships with major national and regional retailers and maintains a broad network of industry contacts. Management is associated with and/or actively participates in many shopping center and REIT industry organizations. Notwithstanding these relationships, there are numerous regional and local commercial developers, real estate companies, financial institutions and other investors who compete with the Company for the acquisition of properties and other investment opportunities and in seeking tenants who will lease space in the Company’s properties.

 

The Company’s executive and senior management teams are seasoned real estate operators with extensive retail and public company leadership experience.  The Company’s management has a deep industry knowledge and well-established relationships with retailers, brokers, and vendors through many years of operational and transactional experience, as well as significant capital markets capabilities.  The Company believes that management’s expertise, experience, reputation, and key relationships in the retail real estate industry provides it with a significant competitive advantage in attracting new business opportunities.

 

 

Government Regulation

 

Compliance with various governmental regulations has an impact on our business, including our capital expenditures, earnings and competitive position, which can be material. We incur costs to monitor and take actions to comply with governmental regulations that are applicable to our business, which include, among others, federal securities laws and regulations, applicable stock exchange requirements, REIT and other tax laws and regulations, environmental and health and safety laws and regulations, local zoning, usage and other regulations relating to real property and the Americans with Disabilities Act of 1990.

 

In addition, see Item 1A. Risk Factors for a discussion of material risks to us, including, to the extent material, to our competitive position, relating to governmental regulations, and see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” together with our audited consolidated financial statements and the related notes thereto for a discussion of material information relevant to an assessment of our financial condition and results of operations, including, to the extent material, the effects that compliance with governmental regulations may have upon our capital expenditures and earnings.

 

Human Capital Resources

 

The Company believes that its associates are one of its strongest resources and that a variety of perspectives and experiences found in its diverse workforce sparks innovation and enriches Company culture.  The Company is committed to equitable and inclusive best practices in all phases of the associate life cycle, including recruitment, training, development and promotion. By cultivating high levels of associate satisfaction, management’s goal is to ensure the Company remains a significant driving force in commercial real estate well into the future.

 

The Company has been and will continue to be an equal opportunity employer committed to hiring, developing, and supporting its highly inclusive workplace.  The Company takes steps to support its commitment that employment decisions (including how persons are recruited, hired, assigned and promoted) are not made on the basis of any legally protected characteristic.  All of our employees must adhere to a Code of Business Conduct and Ethics that sets standards for appropriate behavior and includes required, regular internal training on preventing, identifying, reporting and stopping any type of discrimination and/or retaliation.

 

To attract and retain high performing individuals, we are committed to partnering with our associates to provide opportunities for their professional development and promote their health and well-being.  We offer a broad range of benefits, and we believe our compensation package and benefits are competitive with others in our industry. Our benefits programs include a robust offering of medical, dental, vision, life, disability and a number of exciting ancillary benefits, all of which require very low associate contributions or are offered at no cost to associates. The Company also provides a Safe Harbor 401(k) program with both pretax and Roth offerings including a robust, fully vested matching contribution.

 

The Company has been recognized as a Great Place to Work® for six consecutive years as well as a One of the 2023 Best Workplaces in Real Estate™, both of which are based on anonymous third-party surveys and feedback collected from our associates. Additionally, the Company was once again designated a Leader in LGBTQ+ Workplace Inclusion having achieved the highest score on the Human Rights Campaign Foundation’s 2023-2024 Corporate Equality Index, one of only a few REITs earning the Equality 100 Award.

 

The Company operates under a hybrid work model, which balances associates’ need for valuable face-to-face interactions with individual preferences for ideal work conditions. By continuing to focus on communication, collaboration, and innovation, and by encouraging associates to protect their personal time and be deliberate in where and how they choose to work, management is confident that the model results in a happier, engaged, and more efficient workforce.

 

The Company’s executive and management team promotes a true “open door” environment in which all feedback and suggestions are welcome. Whether it be through regular all employee calls, department meetings, frequent training sessions, Coffee Connections with the executive team, use of our BRAVO recognition program, or participation in our LABS (Leaders Advancing Business Strategy) program, associates are encouraged to be inquisitive and share ideas. Those ideas have resulted in a number of programs and benefit enhancements.

 

The Company promotes physical health, including access to a national gym membership program for associates and their family members as well as host to regular wellness and nutrition seminars and health screenings. The Company also feels it is important that our associates are engaged and active in the community. Across our numerous offices, associates host volunteer and social activities. Whether we’re participating in walks, runs, food or toy drives, the Company promotes and supports associate volunteerism with two volunteer days off per year and a company matching program in support of each associates charitable endeavors. The Company also encourages associates to directly drive strategy around the Company’s environmental, social and governance initiatives through participation in five associate-driven KIMunity Councils focused in the areas of diversity, equity and inclusion, giving, wellness, sustainability, and tenant engagement.

 

 

The Company recognizes the importance of advanced education and provides funds for scholarship programs to benefit the children of our associates as well as students interested in pursuing careers in real estate.

 

The Company's executive offices are located at 500 North Broadway, Suite 201, Jericho, NY 11753, a mixed-use property that is wholly owned by the Company, and its telephone number is (516) 869-9000 or 1-800-764-7114. Nearly all corporate functions, including legal, data processing, finance and accounting are administered by the Company from its executive offices in Jericho, New York and supported by the Company’s regional offices. As of December 31, 2023, a total of 660 persons were employed by the Company, of which 31% were located in our corporate office with the remainder located in 26 offices throughout the United States. The average tenure of our employees was 9.4 years.

 

Environmental, Social and Governance (ESG) Programs

 

The Company strives to build a thriving and viable business, one that succeeds by delivering long-term value for its stakeholders. We believe that the Company’s ESG programs are aligned with its core business strategy of creating destinations for everyday living that inspire a sense of community and deliver value to its many stakeholders.

 

The Company has identified the following five pillars that outline the Company’s current strategic priorities within our ESG program. The Company has defined 16 ESG goals that expand upon the Company’s commitment with clear targets in each pillar:

 

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The Company has aligned its annual reporting towards standards from the Global Reporting Initiative (“GRI”), Sustainability Accounting Standards Board (“SASB”) and Task Force on Climate-related Financial Disclosures (“TCFD”). The Company also discloses aggregate-level EEO-1 workforce data that can be found on the Company’s website, which data and website contents are not incorporated by reference hereto. Additional ESG information of relevance to stakeholders can be found on the Company’s website, the contents of which are not incorporated by reference and do not form a part of this Form 10-K.

 

The Company’s Board of Directors sets the Company’s overall ESG program objectives and oversees enterprise risk management. The Nominating and Corporate Governance Committee of the Board of Directors is responsible for overseeing the Company’s efforts with regard to the Company’s ESG matters.

 

The Company recognizes that climate change is one of the most significant stakeholder issues of our times, threatening the viability of economic and environmental systems globally.  The scientific community has studied climate change and a consensus exists that warming is occurring outside the boundaries of historical planetary trends due in significant part, to human activity. As a real estate portfolio owner, the Company monitors physical and transition risks as well as opportunities posed to its business by climate change and quantifies and discloses the climate impacts of its activities. The Company has established a near-term greenhouse gas (“GHG”) emissions reduction target of reducing Scope 1 and 2 emissions 30% from a 2018 baseline by 2030, and separately has a target of achieving net zero Scope 1 and 2 GHG emissions by 2050.

 

Climate risks and opportunities are generally evaluated at both the corporate and individual asset level. The following table summarizes relevant climate risks identified as a part of the Company’s ongoing risk assessment process. The Company may be subject to other climate risks not included below.

 

Climate Risk

Description

   

Physical

 
 

Acute Hazards - Windstorms

Increased frequency and intensity of windstorms, such as hurricanes, could lead to property damage, loss of property value, increased operation and capital costs and insurance premiums, and interruptions to business operations.

 

Acute Hazards - Flooding

Change in rainfall conditions leading to increased frequency and severity of flooding could lead to property damage, loss of property value, increased operating and capital costs and insurance premiums, and interruptions to business operations.

 

Chronic Stressors - Sea Level Rise

Rising sea levels could lead to storm surge and other potential impacts for low-lying coastal properties leading to damage, loss of property value, increased operating and capital costs and insurance premiums, and interruptions to business operations.

 

Chronic Stressors - Wildfires

Change in fire potential could lead to permanent loss of property, stress on human health (air quality) and stress on ecosystem services.

 

Chronic Stressors - Heat and

Water Stress

Increases in temperature could lead to droughts and decreased available water supply could lead to higher utility usage and supply interruptions.

     

Transition

 
 

Policy and Legal

Regulations at the federal, state and local levels, in addition to stakeholder adherence to international regulations, could impose additional operating and capital costs associated with utilities, energy efficiency, building materials and building design.

 

Reputation and Market

Increased interest among retail tenants in building efficiency, sustainable design criteria and "green leases", which incorporate provisions intended to promote sustainability at the property, could result in decreased demand for outdated space. Potential for fluctuating costs for carbon intensive raw materials used to construct and renovate properties.

 

Technology

Increasing market and regulatory expectations may result in increased investment in upgrading technology and assets, including training and startup costs.

 

The Company’s approach in mitigating these risks include but are not limited to (i) carrying additional insurance coverage relating to flooding and windstorms, (ii) maintaining a geographically diversified portfolio, which limits exposure to event driven risks, (iii) creating a form “green lease” for its tenants which incorporates varied criteria that align landlord and tenant sustainability priorities as well as establishing green construction criteria and (iv) implementing emergency preparedness and operational energy and water efficiency programs.

 

In 2020, the Company issued $500.0 million in 2.70% notes due 2030 in its inaugural green bond offering. The net proceeds from this offering are allocated to finance or refinance, in whole or in part, recently completed, existing or future eligible green projects, which projects are to be aligned with the four core components of the Green Bond Principles, 2018 as administered by the International Capital Market Association. Additionally, the Company’s $2.0 billion Credit Facility (as defined below) is a green credit facility which incorporates rate adjustments associated with attainment (or nonattainment) of Scope 1 and 2 greenhouse gas emissions reductions.

 

 

Information About Our Executive Officers

 

The following table sets forth information with respect to the executive officers of the Company as of December 31, 2023:

 

Name

Age

Position

Joined Kimco

Milton Cooper

94

Executive Chairman of the Board of Directors

Co-Founder

Conor C. Flynn

43

Chief Executive Officer

2003

Ross Cooper

41

President and Chief Investment Officer

2006

Glenn G. Cohen

59

Executive Vice President,
Chief Financial Officer

1995

David Jamieson

43

Executive Vice President,
Chief Operating Officer

2007

 

Available Information

 

The Company’s website is located at http://www.kimcorealty.com. The information contained on our website does not constitute part of this Form 10-K. On the Company’s website you can obtain, free of charge, a copy of this Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable, after we file such material electronically with, or furnish it to, the SEC. The public may read and obtain a copy of any materials we file electronically with the SEC at http://www.sec.gov.

 

 

Item 1A.  Risk Factors

 

We are subject to certain business and legal risks including, but not limited to, the following:

 

Risks Related to Our Business and Operations

 

Adverse global market and economic conditions may impede our ability to generate sufficient income and maintain our properties.

 

Our properties consist primarily of open-air shopping centers, including mixed-use assets, and other retail properties. Our performance, therefore, is generally linked to economic conditions in the market for retail space. The economic performance and value of our properties is subject to all of the risks associated with owning and operating real estate, including but not limited to:

 

 

changes in the national, regional and local economic climate;

 

local conditions, including an oversupply of, or a reduction in demand for, space in properties like those that we own or operate;

 

trends toward smaller store sizes as retailers reduce inventory and develop new prototypes;

 

increasing use by customers of e-commerce and online store sites;

 

the attractiveness of our properties to tenants;

 

market disruptions due to global pandemics or other health epidemics;

 

the ability of tenants to pay rent, particularly anchor tenants with leases in multiple locations;

 

tenants who may declare bankruptcy and/or close stores;

 

competition from other available properties to attract and retain tenants;

 

changes in market rental rates;

 

the need to periodically pay for costs to repair, renovate and re-let space;

 

ongoing consolidation in the retail sector;

 

the excess amount of retail space in a number of markets;

 

changes in operating costs, including costs for maintenance, insurance and real estate taxes;

 

the expenses of owning and operating properties, which are not necessarily reduced when circumstances such as market factors and competition cause a reduction in income from the properties;

 

changes in laws and governmental regulations, including those governing usage, zoning, the environment and taxes;

 

acts of terrorism and war and acts of God, including physical and weather-related damage to our properties;

 

the continued service and availability of key personnel; and

 

the risk of functional obsolescence of properties over time.

 

Competition may limit our ability to purchase new properties or generate sufficient income from tenants and may decrease the occupancy and rental rates for our properties.

 

Numerous commercial developers and real estate companies compete with us in seeking tenants for our existing properties and properties for acquisition. Open-air shopping centers, including mixed-use assets, or other retail shopping centers with more convenient locations or better rents may attract tenants or cause them to seek more favorable lease terms at or prior to renewal. Retailers at our properties may face increasing competition from other retailers, e-commerce, outlet malls, discount shopping clubs, telemarketing or home shopping networks, all of which could (i) reduce rents payable to us; (ii) reduce our ability to attract and retain tenants at our properties; or (iii) lead to increased vacancy rates at our properties. We may fail to anticipate the effects of changes in consumer buying practices, particularly of growing online sales and the resulting retailing practices and space needs of our tenants or a general downturn in our tenants’ businesses, which may cause tenants to close stores or default in payment of rent.

 

We face competition in the acquisition or development of real property from others engaged in real estate investment that could increase our costs associated with purchasing and maintaining assets. Some of these competitors may have greater financial resources than we do. This could result in competition for the acquisition of properties for tenants who lease or consider leasing space in our existing and subsequently acquired properties and for other investment or development opportunities.

 

Our performance depends on our ability to collect rent from tenants, including anchor tenants, our tenants financial condition and our tenants maintaining leases for our properties.

 

At any time, our tenants may experience a downturn in their business that may significantly weaken their financial condition. As a result, our tenants may delay a number of lease commencements, decline to extend or renew leases upon expiration, fail to make rental payments when due, close stores or declare bankruptcy. Any of these actions could result in the termination of tenants’ leases and the loss of rental income attributable to these tenants’ leases. In the event of a default by a tenant, we may experience delays and costs in enforcing our rights as landlord under the terms of the leases.

 

 

In addition, multiple lease terminations by tenants, including anchor tenants, or a failure by multiple tenants to occupy their premises in a shopping center could result in lease terminations or significant reductions in rent by other tenants in the same shopping centers under the terms of some leases. In that event, we may be unable to re-lease the vacated space at attractive rents or at all, and our rental payments from our continuing tenants could significantly decrease. The occurrence of any of the situations described above, particularly involving a substantial tenant with leases in multiple locations, could have a material adverse effect on our financial condition, results of operations and cash flows.

 

A tenant that files for bankruptcy protection may not continue to pay us rent. A bankruptcy filing by, or relating to, one of our tenants or a lease guarantor would bar all efforts by us to collect pre-bankruptcy debts from the tenant or the lease guarantor, or their property, unless the bankruptcy court permits us to do so. A tenant bankruptcy could delay our efforts to collect past due balances under the relevant leases and could ultimately preclude collection of these sums. If a lease is rejected by a tenant in bankruptcy, we would have only a general unsecured claim for damages. As a result, it is likely that we would recover substantially less than the full value of any unsecured claims we hold, if at all.

 

The success of our tenants in operating their businesses and their corresponding ability to pay us rent continue to be significantly impacted by many current economic challenges, which impact the performance of their businesses, including, but not limited to, inflation, labor shortages, supply chain constraints, decreasing consumer confidence and discretionary spending, and increasing energy prices and interest rates.

 

E-commerce and other changes in consumer buying practices present challenges for many of our tenants and may require us to modify our properties, diversify our tenant composition and adapt our leasing practices to remain competitive.

 

Many of our tenants face increasing competition from e-commerce and other sources that could cause them to reduce their size, limit the number of locations and/or suffer a general downturn in their businesses and ability to pay rent. We may also fail to anticipate the effects of changes in consumer buying practices, particularly of growing online sales and the resulting change in retailing practices and space needs of our tenants, which could have an adverse effect on our results of operations and cash flows. We are focused on anchoring and diversifying our properties with tenants that are more resistant to competition from e-commerce (e.g., groceries, essential retailers, restaurants and service providers), but there can be no assurance that we will be successful in modifying our properties, diversifying our tenant composition and/or adapting our leasing practices.

 

Our expenses may remain constant or increase, even if income from our Combined Shopping Center Portfolio decreases, which could adversely affect our financial condition, results of operations and cash flows.

 

Costs associated with our business, such as common area expenses, utilities, insurance, real estate taxes, mortgage payments, and corporate expenses are relatively inflexible and generally do not decrease in the event that a property is not fully occupied, rental rates decrease, a tenant fails to pay rent or other circumstances cause our revenues to decrease. In addition, inflation could result in higher operating costs. If we are unable to lower our operating costs when revenues decline and/or are unable to pass along cost increases to our tenants, our financial condition, results of operations and cash flows could be adversely impacted.

 

We may be unable to sell our real estate property investments when appropriate or on terms favorable to us.

 

Real estate property investments are illiquid and generally cannot be disposed of quickly. The capitalization rates at which properties may be sold could be higher than historic rates, thereby reducing our potential proceeds from sale. In addition, the Code includes certain restrictions on a REIT’s ability to dispose of properties that are not applicable to other types of real estate companies. Therefore, we may not be able to vary our portfolio in response to economic or other conditions promptly or on terms favorable to us within a time frame that we would need. All of these factors reduce our ability to respond to changes in the performance of our investments and could adversely affect our business, financial condition and results of operations.

 

Certain properties we own have a low tax basis, which may result in a taxable gain on sale. We may utilize like-kind exchanges qualifying under Section 1031 of the Code (“1031 Exchanges”) to mitigate taxable income; however, there can be no assurance that we will identify properties that meet our investment objectives for acquisitions. In the event that we do not utilize 1031 Exchanges, we may be required to distribute the gain proceeds to shareholders or pay income tax, which may reduce our cash flow available to fund our commitments.

 

We may acquire or develop properties or acquire other real estate related companies, and this may create risks.

 

We may acquire or develop properties or acquire other real estate related companies when we believe that an acquisition or development is consistent with our business strategies. We may not succeed in consummating desired acquisitions or in completing developments on time or within budget. When we do pursue a project or acquisition, we may not succeed in leasing newly developed or acquired properties at rents sufficient to cover the costs of acquisition or development and operations. Difficulties in integrating acquisitions may prove costly or time-consuming and could divert management’s attention from other activities. Acquisitions or developments in new markets or industries where we do not have the same level of market knowledge may result in poorer than anticipated performance. We may also abandon acquisition or development opportunities that management has begun pursuing and consequently fail to recover expenses already incurred and will have devoted management’s time to a matter not consummated. Furthermore, our acquisitions of new properties or companies will expose us to the liabilities of those properties or companies, some of which we may not be aware of at the time of the acquisition. In addition, development of our existing properties presents similar risks.

 

 

Newly acquired or re-developed properties may have characteristics or deficiencies currently unknown to us that affect their value or revenue potential. It is also possible that the operating performance of these properties may decline under our management. As we acquire additional properties, we will be subject to risks associated with managing new properties, including lease-up and tenant retention. In addition, our ability to manage our growth effectively will require us to successfully integrate our new acquisitions into our existing management structure. We may not succeed with this integration or effectively manage additional properties, particularly in secondary markets. Also, newly acquired properties may not perform as expected.

 

We face risks associated with the development of mixed-use commercial properties.

 

We operate, are currently developing, and may in the future develop, properties either alone or through joint ventures with other persons that are known as “mixed-use” developments. This means that, in addition to the development of retail space, the project may also include space for residential, office, hotel or other commercial purposes. We have less experience in developing and managing non-retail real estate than we do with retail real estate. As a result, if a development project includes a non-retail use, we may seek to develop that component ourselves, sell the rights to that component to a third-party developer with experience developing properties for such use or partner with such a developer. If we do not sell the rights or partner with such a developer, or if we choose to develop the other component ourselves, we would be exposed not only to those risks typically associated with the development of commercial real estate generally, but also to specific risks associated with the development and ownership of non-retail real estate. In addition, even if we sell the rights to develop the other component or elect to participate in the development through a joint venture, we may be exposed to the risks associated with the failure of the other party to complete the development as expected. These include the risk that the other party would default on its obligations necessitating that we complete the other component ourselves, including providing any necessary financing. In the case of residential properties, these risks include competition for prospective residents from other operators whose properties may be perceived to offer a better location or better amenities or whose rent may be perceived as a better value given the quality, location and amenities that the resident seeks. We will also compete against condominiums and single-family homes that are for sale or rent. In the case of office properties, the risks also include changes in space utilization by tenants due to technology, economic conditions and business culture, declines in financial condition of these tenants and competition for credit worthy office tenants. In the case of hotel properties, the risks also include increases in inflation and utilities that may not be offset by increases in room rates. We are also dependent on business and commercial travelers and tourism.  Because we have less experience with residential, office and hotel properties than with retail properties, we expect to retain third parties to manage our residential and other non-retail components as deemed warranted. If we decide to not sell or participate in a joint venture and instead hire a third-party manager, we would be dependent on them and their key personnel who provide services to us, and we may not find a suitable replacement if the management agreement is terminated, or if key personnel leave or otherwise become unavailable to us. 

 

Construction projects are subject to risks that materially increase the costs of completion.

 

In the event that we decide to redevelop existing properties, we will be subject to risks and uncertainties associated with construction and development. These risks include, but are not limited to, risks related to obtaining all necessary zoning, land-use, building occupancy and other governmental permits and authorizations, risks related to the environmental concerns of government entities or community groups, risks related to changes in economic and market conditions, especially in an inflationary environment, between development commencement and stabilization, risks related to construction labor disruptions, adverse weather, acts of God or shortages of materials and labor which could cause construction delays and risks related to increases in the cost of labor and materials which could cause construction costs to be greater than projected and adversely impact the amount of our development fees or our financial condition, results of operations and cash flows.

 

Supply chain disruptions and unexpected construction expenses and delays could impact our ability to timely deliver spaces to tenants and/or our ability to achieve the expected value of a construction project or lease, thereby adversely affecting our profitability.

 

The construction and building industry, similar to many other industries, is experiencing worldwide supply chain disruptions due to a multitude of factors that are beyond our control. Materials, parts and labor have also increased in cost over the past year or more, sometimes significantly and over a short period of time. We may incur costs for a property renovation or tenant buildout that exceeds our original estimates due to increased costs for materials or labor or other costs that are unexpected. We also may be unable to complete renovation of a property or tenant space on schedule due to supply chain disruptions or labor shortages, which could result in increased debt service expense or construction costs. Additionally, some tenants may have the right to terminate their leases if a renovation project is not completed on time. The time frame required to recoup our renovation and construction costs and to realize a return on such costs can often be significant and materially adversely affect our profitability.

 

The Americans with Disabilities Act of 1990 could require us to take remedial steps with respect to existing or newly acquired properties.

 

Our existing properties, as well as properties we may acquire, as commercial facilities, are required to comply with Title III of the Americans with Disabilities Act of 1990 (the “ADA”). Investigation of a property may reveal non-compliance with the ADA. The requirements of the ADA, or of other federal, state or local laws or regulations, also may change in the future and restrict further renovations of our properties with respect to access for disabled persons. Future compliance with the ADA may require expensive changes to the properties.

 

 

We do not have exclusive control over our joint venture and preferred equity investments, such that we are unable to ensure that our objectives will be pursued.

 

We have invested in some properties as a co-venturer or a partner, instead of owning directly. In these investments, we do not have exclusive control over the development, financing, leasing, management and other aspects of these investments. As a result, the co-venturer or partner might have interests or goals that are inconsistent with ours, take action contrary to our interests or otherwise impede our objectives. These investments involve risks and uncertainties. The co-venturer or partner may fail to provide capital or fulfill its obligations, which may result in certain liabilities to us for guarantees and other commitments. Conflicts arising between us and our partners may be difficult to manage and/or resolve and it could be difficult to manage or otherwise monitor the existing business arrangements. The co-venturer or partner also might become insolvent or bankrupt, which may result in significant losses to us.

 

In addition, joint venture arrangements may decrease our ability to manage risk and implicate additional risks, such as:

 

 

our joint venture partner having potentially inferior financial capacity or diverging business goals and strategies, which could lead to actions not aligned with our interests;

 

our inability to take actions with respect to the joint venture activities that we believe are favorable to us if our joint venture partner does not agree;

 

our inability to control the legal entity that has title to the real estate associated with the joint venture;

 

our lenders may not be easily able to sell our joint venture assets and investments or may view them less favorably as collateral, which could negatively affect our liquidity and capital resources;

 

our joint venture partners can take actions that we may not be able to anticipate or prevent, which could result in negative impacts on our debt and equity; and

 

our joint venture partners’ business decisions or other actions or omissions may result in harm to our reputation or adversely affect the value of our investments.

 

Our joint venture and preferred equity investments generally own real estate properties for which the economic performance and value are subject to all the risks associated with owning and operating real estate as described above.

 

We may not be able to recover our investments in marketable securities, mortgage receivables or other investments, which may result in significant losses to us.

 

Our investments in marketable securities are subject to specific risks relating to the particular issuer of the securities, including the financial condition and business outlook of the issuer, which may result in significant losses to us. Marketable securities are generally unsecured and may also be subordinated to other obligations of the issuer. As a result, investments in marketable securities are subject to risks of:

 

 

limited liquidity in the secondary trading market;

 

substantial market price volatility, resulting from changes in prevailing interest rates;

 

subordination to the prior claims of banks and other senior lenders to the issuer;

 

the possibility that earnings of the issuer may be insufficient to meet its debt service and distribution obligations; and

 

the declining creditworthiness and potential for insolvency of the issuer during periods of rising interest rates and economic downturn.

 

These risks may adversely affect the value of outstanding marketable securities and the ability of the issuers to make distribution payments.

 

See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Footnotes 8 and 28 of the Notes to Consolidated Financial Statements included in this Form 10-K for additional discussion regarding the shares held by the Company of Albertsons Companies, Inc. (“ACI”).

 

Our investments in mortgage receivables are subject to specific risks relating to the borrower and the underlying property. In the event of a default by a borrower, it may be necessary for us to foreclose our mortgage or engage in costly negotiations. Delays in liquidating defaulted mortgage loans and repossessing and selling the underlying properties could reduce our investment returns. Furthermore, in the event of default, the actual value of the property collateralizing the mortgage may decrease. A decline in real estate values will adversely affect the value of our loans and the value of the properties collateralizing our loans.

 

Our mortgage receivables may be or become subordinated to mechanics' or materialmen's liens or property tax liens. In these instances, we may need to protect a particular investment by making payments to maintain the current status of a prior lien or discharge it entirely. Where that occurs, the total amount we recover may be less than our total investment, resulting in a loss. In the event of a major loan default or several loan defaults resulting in losses, our investments in mortgage receivables would be materially and adversely affected.

 

 

The economic performance and value of our other investments, which we do not control, are subject to risks associated with owning and operating retail businesses, including:

 

 

changes in the national, regional and local economic climate;

 

the adverse financial condition of some large retailing companies;

 

increasing use by customers of e-commerce and online store sites; and

 

ongoing consolidation in the retail sector.

 

A decline in the value of our other investments may require us to recognize an other-than-temporary impairment (“OTTI”) against such assets. When the fair value of an investment is determined to be less than its amortized cost at the balance sheet date, we assess whether the decline is temporary or other-than-temporary. If we intend to sell an impaired asset, or it is more likely than not that we will be required to sell the impaired asset before any anticipated recovery, then we must recognize an OTTI through charges to earnings equal to the entire difference between the asset’s amortized cost and its fair value at the balance sheet date. When an OTTI is recognized through earnings, a new cost basis is established for the asset, and the new cost basis may not be adjusted through earnings for subsequent recoveries in fair value.

 

Our real estate assets may be subject to impairment charges.

 

We periodically assess whether there are any indicators that the value of our real estate assets and other investments may be impaired. A property’s value is considered to be impaired only if the estimated aggregate future undiscounted property cash flows are less than the carrying value of the property. In our estimate of cash flows, we consider factors such as trends and prospects and the effects of demand and competition on expected future operating income. If we are evaluating the potential sale of an asset or redevelopment alternatives, the undiscounted future cash flows consider the most likely course of action as of the balance sheet date based on current plans, intended holding periods and available market information. We are required to make subjective assessments as to whether there are impairments in the value of our real estate assets and other investments. Impairment charges have an immediate direct impact on our earnings. There can be no assurance that we will not take additional charges in the future related to the impairment of our assets. Any future impairment could have a material adverse effect on our results of operations in the period in which the charge is taken.

 

We intend to continue to sell our lesser quality assets and may not be able to recover our investments, which may result in significant losses to us.

 

There can be no assurance that we will be able to recover the current carrying amount of all of our lesser quality properties and investments and those of our unconsolidated joint ventures in the future. Our failure to do so would require us to recognize impairment charges for the period in which we reached that conclusion, which could materially and adversely affect our financial condition, results of operations and cash flows.

 

We have completed our efforts to exit Mexico, Chile, Brazil, Peru and Canada, however, we cannot predict the impact of laws and regulations affecting these international operations, including the United States Foreign Corrupt Practices Act, or the potential that we may face regulatory sanctions.

 

Our international operations have included properties in Mexico, Chile, Brazil, Peru and Canada and are subject to a variety of United States and foreign laws and regulations, including the United States Foreign Corrupt Practices Act and foreign tax laws and regulations. Although we have completed our efforts to exit our investments in Mexico, South America and Canada, we cannot assure you that our past practices will continue to be found to be in compliance with such laws or regulations. In addition, we cannot predict the manner in which such laws or regulations might be administered or interpreted, or when, or the potential that we may face regulatory sanctions or tax audits as a result of our international operations.

 

We have experienced cybersecurity attacks and could in the future be subject to significant disruption, data loss or other security incidents or breaches.

 

Our information technology (“IT”) networks and related systems are essential to the operation of our business and our ability to perform day-to-day operations and, in some cases, may be critical to the operations of certain of our tenants. While we maintain some of our own critical IT networks and related systems, we also depend on third parties to provide important software, technologies, tools and a broad array of services and operational functions, including payroll, human resources, electronic communications and finance functions. In the ordinary course of our business, we and our third-party service providers collect, process, transmit and store sensitive information and data, including intellectual property, our proprietary business information and that of our customers, suppliers and business partners, as well as personally identifiable information.

 

 

We, and our third-party service providers like all businesses, are subject to cyberattacks and security incidents, which threaten the confidentiality, integrity, and availability of our systems and information resources. Those attacks and incidents may be due to intentional or unintentional acts by employees, customers, contractors or third parties, who seek to gain unauthorized access to our or our service providers’ systems to disrupt operations, corrupt data, or steal confidential or personal information through malware, computer viruses, ransomware, software or hardware vulnerabilities, social engineering (e.g., phishing attachments to e-mails) or other vectors.

 

The risk of a cybersecurity attack, breach or operational disruption, particularly through a cyber incident, including by computer hackers, foreign governments or cyber terrorists, has generally increased.  Attack methodologies change frequently or are not recognized until launched, and we may be unable to investigate or remediate incidents because attackers increasingly use techniques and tools, including artificial intelligence, that circumvent controls, avoid detection, and remove obscure forensic evidence. There can be no assurance that our cybersecurity risk management program, security controls and security process, or those of our third-party services providers will be fully implemented, complied with, or effective or that attempted security breaches or disruptions would not be successful or damaging.

 

We have in the past experienced adverse events that have not resulted, and are not expected to result, in a material impact on the Company’s business operations or financial results. For example, in February 2023, the Company experienced a criminal ransomware attack affecting data contained on legacy servers of Weingarten Realty Investors (“WRI”). The Company acquired WRI in August 2021. The affected servers and exfiltrated data were on the WRI network. The WRI network is separate and is not connected to the Company’s network. The Company promptly initiated an investigation and its response protocols, including deploying containment measures such as taking affected systems offline, implementing enhanced monitoring technology and data recovery processes. The Company also notified federal law enforcement, engaged the services of cybersecurity and forensics professionals, and restored affected systems. The WRI network data is historical and stored for archival purposes. We have acquired in the past and may acquire in the future companies with cybersecurity vulnerabilities or unsophisticated security measures, which could expose us to significant cybersecurity, operational, and financial risks.

 

A cyber incident could materially affect our operations and financial condition by:

 

 

disrupting the proper functioning of our networks and systems and, therefore, our operations and/or those of certain of our tenants;

 

resulting in misstated financial reports, violations of loan covenants and/or missed reporting deadlines;

 

resulting in our inability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT;

 

resulting in the unauthorized access to, and destruction, loss, theft, misappropriation or release of proprietary, confidential, sensitive or otherwise valuable information of ours or others, which others could use to compete against us or for disruptive, destructive or otherwise harmful purposes and outcomes;

 

resulting in our inability to maintain the building systems relied upon by our tenants for the efficient use of their leased space;

 

requiring significant management attention and resources to remediate systems, fulfill compliance requirements and/or to remedy any damages that result;

 

subjecting us to regulatory enforcement, including investigative costs and fines or penalties;

 

subjecting us to litigation claims for negligence, breach of contract or other agreements or other causes of action, potentially resulting in remedies such as damages, credits, penalties or termination of leases or other agreements; or

 

damaging our reputation among our tenants, investors and associates.

 

The occurrence or perception of a cyberattack or security incident could result in operational interruption, damage to our relationship with our tenants, and confidential data exposure. In addition, federal and state governments and agencies have enacted, and continue to develop, broad data protection legislation, regulations, and guidance that require companies to increasingly implement, monitor and enforce reasonable cybersecurity measures. These governmental entities and agencies are aggressively investigating and enforcing such legislation, regulations and guidance across industry sectors and companies. We may be required to expend significant capital and other resources to address an attack or incident, including those as a result of the February 2023 incident involving the WRI legacy servers, and our insurance may not cover some or all of our losses resulting from an attack or incident. These losses may include payments for investigations, forensic analyses, legal advice, public relations advice, system repair or replacement, or other services, in addition to any remedies or relief that may result from legal proceedings. The incurrence of these losses, costs or business interruptions may adversely affect our reputation as well as our financial condition, results of operations and cash flows.

 

Artificial intelligence presents risks and challenges that can impact our business, including by posing security risks to our confidential information, proprietary information, and personal data.

 

Issues in the development and use of artificial intelligence, combined with an uncertain regulatory environment, may result in reputational harm, liability, or other adverse consequences to our business operations. As with many technological innovations, artificial intelligence presents risks and challenges that could impact our business. We have adopted generative artificial intelligence tools into our systems for specific use cases reviewed by legal and information security. Our vendors may incorporate generative artificial intelligence tools into their services and deliverables without disclosing this use to us, and the providers of these generative artificial intelligence tools may not meet existing or rapidly evolving regulatory or industry standards with respect to privacy and data protection and may inhibit our or our vendors’ ability to maintain an adequate level of service and experience. If we, our vendors, or our third-party partners experience an actual or perceived breach or a privacy or security incident because of the use of generative artificial intelligence, we may lose valuable intellectual property and confidential information, and our reputation and the public perception of the effectiveness of our security measures could be harmed. Further, bad actors around the world use increasingly sophisticated methods, including the use of artificial intelligence, to engage in illegal activities involving the theft and misuse of personal information, confidential information, and intellectual property. Any of these outcomes could damage our reputation, result in the loss of valuable property and information, and adversely impact our business.

 

We may be subject to liability under environmental laws, ordinances and regulations.

 

Under various federal, state, and local laws, ordinances and regulations, we may be considered an owner or operator of real property and may be responsible for paying for the disposal or treatment of hazardous or toxic substances released on or in our property, as well as certain other potential costs relating to hazardous or toxic substances (including governmental fines and injuries to persons and property). This liability may be imposed whether or not we knew about, or were responsible for, the presence of hazardous or toxic substances. The Company has environmental insurance coverage on certain of its properties, however this coverage may not be sufficient to cover any or all expenses associated with the aforementioned risks.

 

 

Natural disasters, severe weather conditions and the effects of climate change could have an adverse impact on our financial condition, results of operations and cash flows.

 

Our operations are located in areas that are subject to natural disasters and severe weather conditions such as hurricanes, tornados, earthquakes, snowstorms, floods and fires, and the frequency of these natural disasters and severe weather conditions may increase due to climate change. The occurrence of natural disasters, severe weather conditions and the effects of climate change, including extreme temperatures changes to meteorological or hydrological patterns, can delay new development or redevelopment projects, decrease the attractiveness of locations, increase investment costs to repair or replace damaged properties (or make repair or replacement impossible), increase operation costs, including the cost of energy at our properties, increase costs for future property insurance, negatively impact the tenant demand for lease space and cause substantial damages or losses to our properties which could exceed any applicable insurance coverage. The incurrence of any of these losses, costs or business interruptions may adversely affect our financial condition, results of operations and cash flows.

 

We anticipate the potential effects of climate change will increasingly impact the decisions and analysis we make with respect to our properties, since climate change considerations can impact the relative desirability of locations and the cost of operating and insuring real estate properties. In addition, changes in government legislation and regulation on climate change could result in increased capital expenditures to improve the energy efficiency of our existing properties and could also require us to spend more on our development or redevelopment projects without a corresponding increase in revenues, which may adversely affect our financial condition, results of operations and cash flows. Transition impacts of climate change may subject us to increased regulations, reporting requirements (such as the SEC’s proposed climate change disclosure rule), standards, or expectations regarding the environmental impacts of our or our tenants’ business. Failure to disclose accurate information in a timely manner may also adversely affect our reputation, business, or financial performance. For more information on potential climate-related risks, please refer to our disclosures title “Environmental, Social and Governance (“ESG”) Programs” above.

 

Pandemics or other health crises may adversely affect our tenants financial condition and the profitability of our properties.

 

Our business and the businesses of our tenants could be materially and adversely affected by the risks, or the public perception of the risks, related to a pandemic or other health crisis, such as the outbreak of novel coronavirus (COVID-19).

 

Such events could result in the complete or partial closure of one or more of our tenants’ manufacturing facilities or distribution centers, temporary or long-term disruption in our tenants’ supply chains from local and international suppliers, and /or delays in the delivery of our tenants’ inventory.

 

The profitability of our properties depends, in part, on the willingness of customers to visit our tenants’ businesses. The risk, or public perception of the risk, of a pandemic or media coverage of infectious diseases could cause employees or customers to avoid our properties, which could adversely affect foot traffic to our tenants’ businesses and our tenants’ ability to adequately staff their businesses. Such events could adversely impact tenants’ sales and/or cause the temporary closure of our tenants’ businesses, which could severely disrupt their operations and have a material adverse effect on our business, financial condition, results of operations and cash flows.

 

Financial disruption or a prolonged economic downturn could materially and adversely affect the Companys business.

 

Worldwide financial markets have recently experienced periods of extraordinary disruption and volatility, resulting in heightened credit risk, reduced valuation of investments and decreased economic activity. Moreover, many companies have experienced reduced liquidity and uncertainty as to their ability to raise capital during such periods of market disruption and volatility. In the event that these conditions recur or result in a prolonged economic downturn, our results of operations, financial position or liquidity could be materially and adversely affected. These market conditions may affect the Company's ability to access debt and equity capital markets. In addition, as a result of recent financial events, we may face increased regulation.

 

Corporate responsibility, specifically related to ESG factors and commitments, imposes additional costs and expose us to new risks.

 

Sustainability evaluation is becoming more broadly accepted or expected by investors and shareholders. Certain organizations that provide corporate governance and other corporate risk information to investors and shareholders have developed scores and ratings to evaluate companies and investment funds based upon ESG or “sustainability” metrics. Many investment funds focus on positive ESG business practices and sustainability scores when making investments and may consider a company’s sustainability score as a reputational or other factor in making an investment decision. In addition, investors, particularly institutional investors, use these scores to benchmark companies against their peers and if a company is perceived as lagging, these investors may engage with companies to require improved ESG disclosure or performance. We may face reputational damage or additional costs in the event our corporate responsibility procedures or standards do not meet the standards set by various constituencies. In addition, the criteria by which companies are rated may change, which could cause us to receive lower scores than previous years. A low sustainability score could result in a negative perception of the Company, or exclusion of our common stock from consideration by certain investors who may elect to invest with our competition instead. In addition, as part of our corporate responsibility, we have adopted certain ESG goals, including greenhouse gas emissions reduction targets and other sustainability initiatives. If we cannot not meet these goals fully or on time, we may face reputational damage. Simultaneously, there are efforts by some parties to restrict companies’ efforts on various ESG-related matters. Both advocates and opponents to certain ESG matters are increasingly resorting to a range of activism forms, including media campaigns and litigation, to advance their perspectives. To the extent we are subject to such activism, it may require us to incur costs or otherwise adversely impact our business.

 

 

Moreover, while we may create and publish voluntary disclosures regarding ESG matters from time to time, many of the statements in those voluntary disclosures are based on hypothetical expectations and assumptions that may or may not be representative of current or actual risks or events or forecasts of expected risks or events, including the costs associated therewith. Such expectations and assumptions are necessarily uncertain and may be prone to error or subject to misinterpretation given the long timelines involved and the lack of an established single approach to identifying, measuring and reporting on many ESG matters. For example, we note that standards regarding the monitoring and accounting of GHG emissions, as well as any GHG emissions reductions, continues to evolve, and our disclosures on such matters may continue to evolve as well, though we cannot guarantee our disclosures will always be perceived as in keeping with particular best practices. Such disclosures may also be at least partially reliant on third-party information that we have not independently verified or cannot be independently verified. In addition, we expect there will likely be increasing levels of regulation, disclosure-related and otherwise, with respect to ESG matters, and increased regulation will likely lead to increased compliance costs as well as scrutiny that could heighten all of the risks identified in this risk factor. Such ESG matters may also impact our suppliers or customers, which may adversely impact our business, financial condition, or results of operations.

 

Our success depends largely on the continued service and availability of key personnel.

 

We depend on the deep industry knowledge and efforts of key personnel, including our executive officers, to manage our day-to-day operations and strategic business direction. Our ability to attract, retain and motivate key personnel may significantly impact our future performance, and if any of our executive officers or other key personnel depart the Company, for any reason, we may not be able to easily replace such individual. The loss of the services of our executive officers and other key personnel could have a material adverse effect on our financial condition, results of operations and cash flows.

 

Retail operating conditions may adversely affect our results of operations.

 

A retail property’s revenues and value may be adversely affected by a number of factors, many of which apply to real estate investment generally, but which also include trends in the retail industry and perceptions by retailers or shoppers of the safety, convenience and attractiveness of the retail property. Our retail properties are public locations, and any incidents of crime or violence, including acts of terrorism, could result in a reduction of business traffic to tenant stores in our properties. Any such incidents may also expose us to civil liability or harm our reputation. In addition, to the extent that the investing public has a negative perception of the retail sector, the value of our retail properties may be negatively impacted.

 

Our Umbrella Partnership Real Estate Investment Trust (UPREIT) structure may result in potential conflicts of interest with members of Kimco OP, whose interests may not be aligned with those of our stockholders.

 

Our directors and officers have duties to our corporation and our stockholders under Maryland law in connection with their management of the corporation. At the same time, we, as managing member of Kimco OP, our operating company, have fiduciary duties under Delaware law to our operating company and to its members in connection with the management of our operating company. Our duties as managing member of our operating company and to its members may come into conflict with the duties of our directors and officers to the corporation and our stockholders. While the operating agreement contains provisions limiting the fiduciary duties of the managing member to the operating company and its members, the provisions of Delaware law that allow for such limitations have not been fully tested in a court of law.

 

Risks Related to Our Debt and Equity Securities

 

We may be unable to obtain financing through the debt and equity markets, which could have a material adverse effect on our growth strategy, our financial condition and our results of operations.

 

We cannot assure you that we will be able to access the credit and/or equity markets to obtain additional debt or equity financing or that we will be able to obtain financing on terms favorable to us. The inability to obtain financing on a timely basis could have negative effects on our business, such as:

 

 

we could have great difficulty acquiring or developing properties, which would materially adversely affect our investment strategy;

 

our liquidity could be adversely affected;

 

we may be unable to repay or refinance our indebtedness;

 

we may need to make higher interest and principal payments or sell some of our assets on terms unfavorable to us to fund our indebtedness; or

 

we may need to issue additional capital stock, which could further dilute the ownership of our existing stakeholders.

 

Adverse changes in our credit ratings could impair our ability to obtain additional debt and equity financing on terms favorable to us, if at all, and could significantly reduce the market price of our publicly traded securities.

 

 

We are subject to financial covenants that may restrict our operating and acquisition activities.

 

Our Credit Facility, bank term loans and the indentures under which our senior unsecured debt is issued contain certain financial and operating covenants, including, among other things, certain coverage ratios and limitations on our ability to incur debt, make dividend payments, sell all or substantially all of our assets and engage in mergers and consolidations and certain acquisitions. These covenants may restrict our ability to pursue certain business initiatives or certain acquisition transactions that might otherwise be advantageous. In addition, failure to meet any of the financial covenants could cause an event of default under our Credit Facility, bank term loans and the indentures and/or accelerate some or all of our indebtedness, which would have a material adverse effect on us.

 

We have a substantial amount of indebtedness and may need to incur more indebtedness in the future.

 

We have substantial indebtedness. The level of indebtedness could have adverse consequences on our business, such as:

 

 

requiring the Company to use a substantial portion of our cash flow from operations to service our indebtedness, which would reduce the available cash flow to fund working capital, capital expenditures, development projects, and other general corporate purposes and reduce cash for distributions;

 

limiting our ability to obtain additional financing to fund our working capital needs, acquisitions, capital expenditures, or other debt service requirements or for other purposes;

 

increasing our costs of incurring additional debt;

 

subjecting us to floating interest rates;

 

limiting our ability to compete with other companies that are not as highly leveraged, as we may be less capable of responding to adverse economic and industry conditions;

 

restricting the Company from making strategic acquisitions, developing properties, or exploiting business opportunities;

 

restricting the way in which we conduct our business because of financial and operating covenants in the agreements governing our existing and future indebtedness;

 

exposing the Company to potential events of default (if not cured or waived) under covenants contained in our debt instruments that could have a material adverse effect on our business, financial condition, and operating results;

 

increasing our vulnerability to a downturn in general economic conditions; and

 

limiting our ability to react to changing market conditions in its industry.

 

The impact of any of these potential adverse consequences could have a material adverse effect on our results of operations, financial condition, and liquidity.

 

We are exposed to interest rate risk, and there can be no assurance that we will manage or mitigate this risk effectively.

 

We are exposed to interest rate risk, primarily through our unsecured revolving credit facility.  Borrowings under our unsecured revolving credit facility bear interest at a floating rate, and as a result an increase in interest rates will increase the amount of interest we must pay.  Our interest rate risk may materially change in the future if we increase our borrowings under this facility. A significant increase in interest rates could also make it more difficult to find alternative financing on desirable terms.  Increases in interest rates on any of our variable-rate debt would result in an increase in interest expense, which could have an adverse effect on our results of operations, financial condition, and liquidity.  For additional information with respect to interest rate risk, see “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in this Form 10-K.

 

Changes in market conditions could adversely affect the market price of our publicly traded securities.

 

The market price of our publicly traded securities depends on various market conditions, which may change from time-to-time. Among the market conditions that may affect the market price of our publicly traded securities are the following:

 

 

the extent of institutional investor interest in us;

 

the reputation of REITs generally and the reputation of REITs with portfolios similar to ours;

 

the attractiveness of the securities of REITs in comparison to securities issued by other entities, including securities issued by other real estate companies;

 

our financial condition and performance;

 

the market’s perception of our growth potential, potential future cash dividends and risk profile;

 

an increase in market interest rates, which may lead prospective investors to demand a higher distribution rate in relation to the price paid for our shares; and

 

general economic and financial market conditions.

 

We may change the dividend policy for our common stock in the future.

 

The decision to declare and pay dividends on our common stock in the future, as well as the timing, amount and composition of any such future dividends, will be at the sole discretion of our Board of Directors and will depend on our earnings, operating cash flows, liquidity, financial condition, capital requirements, contractual prohibitions or other limitations under our indebtedness including preferred stock, the annual distribution requirements under the REIT provisions of the Code, state law and such other factors as our Board of Directors deems relevant or are requirements under the Code or state or federal laws. Any negative change in our dividend policy could have a material adverse effect on the market price of our common stock.

 

 

Our charter and bylaws and Maryland law contain provisions that may delay, defer or prevent a change of control transaction, even if such a change in control may be in our best interest, and as a result may depress the market price of our securities.

 

Our charter contains certain ownership limits. Our charter contains various provisions that are intended to preserve our qualification as a REIT and, subject to certain exceptions, authorize our directors to take such actions as are necessary or appropriate to preserve our qualification as a REIT. For example, our charter prohibits the actual, beneficial or constructive ownership by any person of more than 9.8% in value or number of shares, whichever is more restrictive, of the outstanding shares of our common stock, and more than 9.8% in value of the aggregate outstanding shares of all classes and series of our stock. Our Board of Directors, in its sole and absolute discretion, may exempt a person, prospectively or retroactively, from these ownership limits if certain conditions are satisfied. The restrictions on ownership and transfer of our stock may:

 

 

discourage a tender offer or other transactions or a change in management or of control that might involve a premium price for our common stock or that our stockholders otherwise believe to be in their best interests; or

 

result in the transfer of shares acquired in excess of the restrictions to a trust for the benefit of a charitable beneficiary and, as a result, the forfeiture by the acquirer of the benefits of owning the additional shares.

 

Risks Related to Our Status as a REIT and Related U.S. Federal Income Tax Matters

 

Loss of our tax status as a REIT or changes in U.S. federal income tax laws, regulations, administrative interpretations or court decisions relating to REITs could have significant adverse consequences to us and the value of our securities.

 

We have elected to be taxed as a REIT for U.S. federal income tax purposes under the Code. We believe that we are organized and operate in a manner that has allowed us to qualify and will allow us to remain qualified as a REIT under the Code. However, there can be no assurance that we have qualified or will continue to qualify as a REIT for U.S. federal income tax purposes.

 

Qualification as a REIT involves the application of highly technical and complex Code provisions, for which there are only limited judicial and administrative interpretations. The determination of various factual matters and circumstances not entirely within our control may affect our ability to qualify as a REIT. The rules dealing with U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the U.S. Internal Revenue Service (the “IRS”) and U.S. Department of the Treasury. We cannot predict how changes in the tax laws might affect our investors or us. New legislation, regulations, administrative interpretations or court decisions could significantly and negatively change the tax laws with respect to qualification as a REIT, the U.S. federal income tax consequences of such qualification or the desirability of an investment in a REIT relative to other investments.

 

In order to qualify as a REIT, we must satisfy a number of requirements, including requirements regarding the ownership of our stock, the composition of our assets and the sources of our gross income. Also, we must make distributions to stockholders aggregating annually at least 90% of our REIT taxable income, excluding net capital gains. Furthermore, we own a direct or indirect interest in certain subsidiary REITs which have elected to be taxed as REITs for U.S. federal income tax purposes under the Code. Provided that each subsidiary REIT qualifies as a REIT, our interest in such subsidiary REIT will be treated as a qualifying real estate asset for purposes of the REIT asset tests. To qualify as a REIT, the subsidiary REIT must independently satisfy all of the REIT qualification requirements. The failure of a subsidiary REIT to qualify as a REIT could have an adverse effect on our ability to comply with the REIT income and asset tests, and thus our ability to qualify as a REIT.

 

If we were to lose our REIT status, we would face serious tax consequences that would substantially reduce the funds available to pay distributions to stockholders for each of the years involved because:

 

 

we would not be allowed a deduction for dividends to stockholders in computing our taxable income, and we would be subject to the regular U.S. federal corporate income tax;

 

we could possibly be subject to a federal alternative minimum tax or increased state and local taxes;

 

unless we were entitled to relief under statutory provisions, we could not elect to be taxed as a REIT for four taxable years following the year during which we were disqualified; and

 

we would not be required to make distributions to stockholders.

 

Our failure to qualify as a REIT or new legislation or changes in U.S. federal income tax laws, including with respect to qualification as a REIT or the tax consequences of such qualification, could also impair our ability to expand our business or raise capital and have a materially adverse effect on the value of our securities.

 

 

To maintain our REIT status, we may be forced to borrow funds during unfavorable market conditions, and the unavailability of such capital on favorable terms at the desired times, or at all, may cause us to curtail our investment activities and/or to dispose of assets at inopportune times, which could adversely affect our financial condition, results of operations, cash flows and per share trading price of our common stock.

 

To qualify as a REIT, we generally must distribute to our stockholders at least 90% of our REIT taxable income each year, excluding net capital gains, and we will be subject to regular U.S. federal corporate income taxes on the amount we distribute that is less than 100% of our net taxable income each year, including capital gains. In addition, we will be subject to a 4% nondeductible excise tax on the amount, if any, by which distributions paid by us in any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gain net income and 100% of our undistributed income from prior years. While we have historically satisfied these distribution requirements by making cash distributions to our stockholders, a REIT is permitted to satisfy these requirements by making distributions of cash or other property, including, in limited circumstances, its own stock. Assuming we continue to satisfy these distribution requirements with cash, we may need to borrow funds to meet the REIT distribution requirements and avoid the payment of income and excise taxes even if the then prevailing market conditions are not favorable for these borrowings. These borrowing needs could result from differences in timing between the actual receipt of cash and inclusion of income for U.S. federal income tax purposes, or the effect of non-deductible capital expenditures, the creation of cash reserves or required debt or amortization payments. These sources, however, may not be available on favorable terms or at all. Our access to third-party sources of capital depends on a number of factors, including the market's perception of our growth potential, our current debt levels, the market price of our common stock, and our current and potential future earnings. We cannot assure you that we will have access to such capital on favorable terms at the desired times, or at all, which may cause us to curtail our investment activities and/or to dispose of assets at inopportune times, and could adversely affect our financial condition, results of operations, cash flows and per share trading price of our common stock.

 

If Kimco OP were to fail to qualify as a partnership for federal income tax purposes, the Parent Company would fail to qualify as a REIT and suffer other adverse consequences.

 

We believe that after the RPT Merger, Kimco OP has been organized and operated in a manner that allows it to be treated as a partnership, and not an association or publicly traded partnership taxable as a corporation, for federal income tax purposes. As an entity treated as a partnership for federal income tax purposes, Kimco OP is not subject to federal income tax on its income. Instead, each of its partners, including the Parent Company, is allocated, and may be required to pay tax with respect to, that partner’s share of Kimco OP’s income. No assurance can be provided, however, that the IRS will not challenge Kimco OP’s status as a partnership for federal income tax purposes or that a court would not sustain such a challenge. If the IRS were successful in treating Kimco OP as an association or publicly traded partnership taxable as a corporation for federal income tax purposes, the Parent Company would fail to meet the gross income tests and certain of the asset tests applicable to REITs and, accordingly, would cease to qualify as a REIT. Such REIT qualification failure could impair our ability to expand our business and raise capital, and would materially adversely affect the value of the Parent Company’s stock and the OP Units. Also, the failure of Kimco OP to qualify as a partnership would cause it to become subject to federal corporate income tax, which would reduce significantly the amount of its cash available for debt service and for distribution to its partners, including the Parent Company.

 

Tax liabilities and attributes inherited in connection with acquisitions may adversely impact our business.

 

From time to time we may acquire other corporations or entities and, in connection with such acquisitions, we may succeed to the historic tax attributes and liabilities of such entities. For example, if we acquire a C corporation and subsequently dispose of its assets within five years of the acquisition, we could be required to pay tax on any built-in gain attributable to such assets determined as of the date on which we acquired the assets. In addition, in order to qualify as a REIT, at the end of any taxable year, we must not have any earnings and profits accumulated in a non-REIT year. As a result, if we acquire a C corporation, we must distribute the corporation’s earnings and profits accumulated prior to the acquisition before the end of the taxable year in which we acquire the corporation. We also could be required to pay the acquired entity’s unpaid taxes even though such liabilities arose prior to the time we acquired the entity.

 

The tax imposed on REITs engaging in prohibited transactions may limit our ability to engage in transactions which would be treated as sales for U.S. federal income tax purposes.

 

A REIT's net income from prohibited transactions is subject to a 100% penalty tax. In general, prohibited transactions are sales or other dispositions of property, other than foreclosure property, held primarily for sale to customers in the ordinary course of business. Although we do not intend to hold any properties that would be characterized as held for sale to customers in the ordinary course of our business, unless a sale or disposition qualifies under certain statutory safe harbors, or is held through a taxable REIT subsidiary, such characterization is a factual determination and no guarantee can be given that the IRS would agree with our characterization of our properties or that we will always be able to make use of the available safe harbors.

 

Dividends payable by REITs do not qualify for the reduced tax rates available for some dividends.

 

The maximum tax rate applicable to “qualified dividend income” payable to U.S. stockholders that are individuals, trusts and estates is 20%. Dividends payable by REITs, however, generally are not eligible for these reduced rates. U.S. stockholders that are individuals, trusts and estates generally may deduct up to 20% of the ordinary dividends (i.e., dividends not designated as capital gain dividends or qualified dividend income) received from a REIT for taxable years beginning before January 1, 2026. Although this deduction reduces the effective tax rate applicable to certain dividends paid by REITs (generally to 29.6% assuming the shareholder is subject to the 37% maximum rate), such tax rate is still higher than the tax rate applicable to corporate dividends that constitute qualified dividend income. Accordingly, investors who are individuals, trusts and estates may perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends treated as qualified dividend income, which could materially and adversely affect the value of the shares of REITs, including the per share trading price of our common stock.

 

Risks Relating to the Company after Completion of the RPT Merger

 

We expect to incur substantial expenses related to the RPT Merger.

 

We expect to incur substantial expenses in completing the RPT Merger and integrating the business, operations, networks, systems, technologies, policies and procedures of the Company and RPT. There are a large number of processes that must be integrated in the RPT Merger, including leasing, billing, management information, purchasing, accounting and finance, sales, payroll and benefits, fixed asset, lease administration and regulatory compliance. While we have assumed that a certain level of transaction and integration expenses would be incurred, there are a number of factors beyond our control that could affect the total amount or the timing of such integration expenses.

 

Our stockholders were diluted by the RPT Merger and the trading price of shares of the combined company may be affected by factors different from those affecting the price of shares of our common stock before the RPT Merger.

 

The RPT Merger diluted the ownership position of our stockholders. After completion of the RPT Merger, our legacy stockholders own approximately 92% of the issued and outstanding shares of our common stock, and legacy RPT stockholders own approximately 8% of the issued and outstanding shares of our common stock. Consequently, our stockholders have somewhat less influence over our management and policies after the RPT Merger than they previously exercised. The results of our operations and the trading price of our common stock after the RPT Merger may also be affected by factors different from those previously affecting our results of operations and the trading prices of our common stock. For example, some of our and RPT’s prior institutional investors may elect to decrease their ownership in the combined company. Accordingly, the historical trading prices and financial results of the Company and RPT may not be indicative of trading prices and financial results of the combined company after the RPT Merger.

 

 

Following the RPT Merger, we may be unable to integrate the business of RPT successfully or realize the anticipated synergies and related benefits of the RPT Merger or do so within the anticipated time frame.

 

The RPT Merger involves the combination of two companies, which previously operated as independent public companies, and requires significant management attention and resources. Potential difficulties we may encounter in the integration process include:

 

 

the inability to successfully combine the businesses of the Company and RPT in a manner that permits the Company to achieve the anticipated cost savings from the RPT Merger, which would result in some anticipated benefits of the RPT Merger not being realized in the time frame currently anticipated, or at all;

 

the failure to integrate operations and internal systems, programs and controls within the expected time frame or at all;

 

the inability to successfully realize the anticipated value from some of RPT’s assets;

 

lost sales and tenants as a result of certain tenants of either of the Company or RPT deciding not to continue to do business with the combined company;

 

complexities associated with combining two companies with different histories, cultures, markets, strategies and customer bases and managing the combined Company;

 

any failure of the combined company to retain key employees of either of the two companies;

 

potential unknown liabilities and unforeseen increased expenses associated with the RPT Merger; and
 

performance shortfalls, including as a result of the diversion of management’s attention caused by the RPT Merger and integration.

 

For all these reasons, you should be aware that it is possible that the integration process could result in the distraction of our management, the disruption of our ongoing business or inconsistencies in our services, standards, controls, procedures and policies, any of which could adversely affect the ability of the Company to maintain relationships with tenants, vendors and employees or to achieve the anticipated future opportunities, plans and benefits of the RPT Merger, or could otherwise adversely affect our business, financial condition, results of operations and cash flows.

 

Following the RPT Merger, we have a substantial amount of indebtedness and may need to incur additional indebtedness in the future.

 

Following the RPT Merger, we have a substantial amount of indebtedness and may need to incur additional indebtedness. Our substantial indebtedness and the incurrence of new indebtedness could have adverse consequences on our business following the RPT Merger, such as:

 

 

requiring the Company to use a substantial portion of our cash flow provided by operating activities to service our indebtedness, which would reduce the available cash flow to fund working capital, capital expenditures, development projects, and other general corporate purposes and reduce cash for distributions;

 

limiting our ability to obtain additional financing to fund our working capital needs, acquisitions, capital expenditures, or other debt service requirements or for other purposes;

 

increasing our costs of incurring additional debt;

 

increasing our exposure to floating interest rates;

 

limiting our ability to compete with other companies that are not as highly leveraged, as we may be less capable of responding to adverse economic and industry conditions;

 

restricting the Company from making strategic acquisitions, developing properties, or exploiting business opportunities;

 

restricting the way in which we conduct our business because of financial and operating covenants in the agreements governing our existing and future indebtedness;

 

exposing the Company to potential events of default (if not cured or waived) under covenants contained in our debt instruments;

 

increasing our vulnerability to a downturn in general economic conditions; and

 

limiting our ability to react to changing market conditions in its industry.

 

The impact of any of these potential adverse consequences could have a material adverse effect on our business, financial condition, results of operations and liquidity.

 

Counterparties to certain agreements with RPT may exercise their contractual rights under such agreements in connection with the RPT Merger.

 

RPT is party to certain agreements that give the counterparty certain rights following a “change in control,” including in some cases the right to terminate such agreements. Under some such agreements, for example certain debt obligations, the RPT Merger constitutes a change in control and therefore the counterparty may exercise certain rights under the agreement upon the closing of the RPT Merger. Any such counterparty may request modifications of its respective agreements as a condition to granting a waiver or consent under its agreement. There is no assurance that such counterparties will not exercise their rights under such agreements, including termination rights where available, that the exercise of any such rights will not result in a material adverse effect or that any modifications of such agreements will not result in a material adverse effect to the combined company or its securities subsequent to the RPT Merger.

 

 

Item 1B.  Unresolved Staff Comments

 

None.

 

Item 1C.  Cybersecurity

 

Cybersecurity Risk Management and Strategy

 

We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. 

 

Our cybersecurity risk management program leverages the National Institute of Standards and Technology ("NIST") cybersecurity framework, which organizes cybersecurity risks into five categories: identify, protect, detect, respond and recover. This does not imply that we meet any particular technical standards, specifications, or requirements, only that we use the NIST as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business.

 

Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas.

 

Key elements of our cybersecurity risk management program include, but are not limited to the following:

 

 

risk assessments designed to help identify material cybersecurity risks to our critical systems and information;

 

a security team principally responsible for managing (i) our cybersecurity risk assessment processes, (ii) our security controls, and (iii) our response to cybersecurity incidents;

 

the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security processes;

 

cybersecurity awareness training for our employees, incident response personnel, and senior management;

 

a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and

 

a third-party risk management process for critical service providers.

 

We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected us, including our operations, business strategy, results of operations, or financial condition. We have in the past experienced adverse events that have not resulted, and are not expected to result, in a material impact on the Company’s business operations or financial results. For example, in February 2023, we experienced a criminal ransomware attack affecting data contained on legacy servers of WRI acquired in August 2021. The affected servers and exfiltrated data were on the WRI network. The WRI network is separate and is not connected to our network. We promptly initiated an investigation and our response protocols, including deploying containment measures such as taking affected systems offline, implementing enhanced monitoring technology and data recovery processes. We also notified federal law enforcement, engaged the services of cybersecurity and forensics professionals, and restored affected systems. The WRI network data is historical and stored for archival purposes. We face certain ongoing risks from cybersecurity threats that, if realized, are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition. See “Risk Factors – We have experienced cybersecurity attacks and could in the future be subject to significant disruption, data loss or other security incidents or breaches”.

 

Cybersecurity Governance and Oversight

 

Our Board of Directors (“Board”) considers cybersecurity risk as part of its risk oversight function and has delegated to its Audit Committee oversight of cybersecurity and other information technology risks. Our Audit Committee oversees management’s implementation of our cybersecurity risk management program. Our Audit Committee receives quarterly briefings from our Chief Information Officer regarding the emerging cybersecurity threat and risk landscape as well as our cybersecurity risk management program and related readiness, resiliency, and response efforts. In addition, management will update the Audit Committee, as necessary, regarding significant cybersecurity incidents. Our Audit Committee reports to the full Board regarding its activities, including those related to cybersecurity. The Board also receives briefings from management on our cybersecurity risk management program. Board members receive presentations on cybersecurity topics from our Chief Information Officer, internal security staff or external experts as part of the Board’s continuing education on topics that impact public companies.

 

We have a Cyber Risk Committee (“Cyber Committee”) which reviews and reports on cybersecurity risks and related issues.  The Cyber Committee is comprised of senior management from various business units within the Company and meets at least quarterly to review the status of the Company’s overall cybersecurity risk management program, as well as controls and procedures and to stay up to date regarding relevant legislative, regulatory, and technical developments. The Cyber Committee is responsible for assessing and managing our material risks from cybersecurity threats. The Cyber Committee has primary responsibility for our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants, and in this capacity, the Committee works closely with an outsourced Chief Information Security Officer firm with decades of combined cybersecurity governance and technology experience.

 

The Cyber Committee is informed about and monitors the prevention, detection, mitigation, and remediation of key cybersecurity risks and incidents through various means, which may include briefings from internal security personnel, threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us, and alerts and reports produced by security tools deployed in the IT environment. 

 

We utilize a variety of administrative, technical and physical safeguards that take into account the nature of our IT environment, information assets and cybersecurity risks posed by both internal and external threats.  We have incorporated cybersecurity coverage in our insurance policies, and our goal is to keep our data and systems, as well as our employees, safe from cybersecurity threats. 

 

The Company conducts employee security awareness training and internal phishing exercises.  When security issues arise, the Company conducts a prompt investigation and initiates response protocols and other measures to protect the Company and its valued employees and key stakeholders.

 

 

Item 2.  Properties

 

Real Estate Portfolio.

 

As of December 31, 2023, the Company had interests in 523 shopping center properties aggregating 89.7 million square feet of GLA located in 28 states. In addition, the Company had 21 other property interests, primarily through the Company’s preferred equity investments and other investments, totaling 5.5 million square feet of GLA. Open-air shopping centers comprise the primary focus of the Company's current portfolio.  As of December 31, 2023, the Company’s Combined Shopping Center Portfolio, was 96.2% leased.

 

The Company's open-air shopping center properties, which are generally owned and operated through subsidiaries or joint ventures, had an average size of 171,471 square feet as of December 31, 2023. The Company generally retains its shopping centers for long-term investment and consequently pursues a program of regular physical maintenance together with redevelopment, major renovations and refurbishing to preserve and increase the value of its properties. This includes renovating existing facades, installing uniform signage, resurfacing parking lots and enhancing parking lot lighting. During 2023, the Company expended $151.1 million in connection with property redevelopments and $113.3 million related to improvements.

 

The Company's management believes its experience in the real estate industry and its relationships with numerous national and regional tenants gives it an advantage in an industry where ownership is fragmented among a large number of property owners. The Company's open-air shopping centers are usually "anchored" by a grocery store, home improvement centers, off-price retailer, discounter or service-oriented tenant. As one of the original participants in the growth of the shopping center industry and the nation's largest owner and operator of shopping centers, the Company has established close relationships with a large number of major national and regional retailers. Some of the major national and regional companies that are tenants in the Company's shopping center properties include TJX Companies, The Home Depot, Albertsons Companies, Ross Stores, Amazon/Whole Foods Market, Burlington Stores, PetSmart, Ahold Delhaize, Kroger, and Walmart.

 

The Company reduces its operating and leasing risks through diversification achieved by the geographic distribution of its properties and a large tenant base. As of December 31, 2023, no single open-air shopping center accounted for more than 1.3% of the Company's annualized base rental revenues, including the proportionate share of base rental revenues from properties in which the Company has less than a 100% economic interest, or more than 1.4% of the Company’s total shopping center GLA. At December 31, 2023, the Company’s five largest tenants were TJX Companies, The Home Depot, Albertsons Companies, Ross Stores and Amazon/Whole Foods Market, which represented 3.7%, 2.1%, 1.9%, 1.9% and 1.8%, respectively, of the Company’s annualized base rental revenues, including the proportionate share of base rental revenues from properties in which the Company has less than a 100% economic interest.

 

The following table shows the number of properties, total proportionate share of GLA and total proportionate share of annualized base rental revenues (including % of total) for the Company’s top 10 major metropolitan markets by total proportionate share of annualized based rent as of December 31, 2023.  Amounts for GLA and Annual Base Rent in thousands:

                Total     Total Proportionate        
   

 

   

Number of

     Proportionate     Share of Annual     % of Gross  

Market

  Rank     Properties    

Share of GLA

   

Base Rent

   

Annual Rent

 

New York

    1       71       6,770     $ 166,799       11.7 %

Baltimore, Washington D.C.

    2       46       8,139     $ 161,295       11.3 %

Los Angeles, Orange County, San Diego

    3       49       7,570     $ 148,733       10.4 %

Miami, Ft. Lauderdale

    4       41       6,396     $ 124,806       8.7 %

Houston

    5       31       6,036     $ 122,453       8.6 %

San Francisco, Sacramento, San Jose

    6       24       3,076     $ 79,535       5.6 %

Phoenix

    7       23       4,524     $ 63,453       4.4 %

Philadelphia

    8       21       3,040     $ 56,567       4.0 %

Orlando

    9       15       2,373     $ 46,754       3.3 %

Raleigh-Durham

    10       14       2,905     $ 42,587       3.0 %

 

mdapicturemap2.jpg

A substantial portion of the Company's income consists of rent received under long-term leases. Most of the leases provide for the payment of fixed-base rentals monthly in advance and for the payment by tenants of an allocable share of the real estate taxes, insurance, utilities and common area maintenance expenses incurred in operating the shopping centers (certain of the leases provide for the payment of a fixed-rate reimbursement of these such expenses). Although many of the leases require the Company to make roof and structural repairs as needed, a number of tenant leases place that responsibility on the tenant, and the Company's standard small store lease provides for reimbursements by the tenant as part of common area maintenance. Additionally, many of the leases provide for reimbursements by the tenant of capital expenditures.

 

 

Minimum base rental revenues, operating expense reimbursements, and percentage rents accounted for 98% of the Company's total revenues from rental properties for the year ended December 31, 2023. The Company's management believes that the base rent per leased square foot for many of the Company's existing leases is generally lower than the prevailing market-rate base rents in the geographic regions where the Company operates, reflecting the potential for future growth. Additionally, a majority of the Company’s leases have provisions requiring contractual rent increases. The Company’s leases may also include escalation clauses, which provide for increases based upon changes in the consumer price index or similar inflation indices.

 

As of December 31, 2023, the Company’s consolidated operating portfolio, comprised of 426 shopping center properties aggregating 70.8 million square feet of GLA, was 96.1% leased. The consolidated operating portfolio consists entirely of properties located in the U.S., inclusive of Puerto Rico.  For the period of January 1, 2023 to December 31, 2023, the Company increased the average base rent per leased square foot, which includes the impact of tenant concessions, in its consolidated portfolio of open-air shopping centers from $19.60 to $20.24, an increase of $0.64.  This increase primarily consists of (i) a $0.48 increase relating to rent step-ups within the portfolio and new leases signed, net of leases vacated, (ii) an $0.08 increase relating to acquisitions and transfers and (iii) a $0.08 increase relating to dispositions.

 

The Company has a total of 8,413 leases in the consolidated operating portfolio. The following table sets forth the aggregate lease expirations for each of the next ten years, assuming no renewal options are exercised. For purposes of the table, the Total Annual Base Rent Expiring represents annualized rental revenue, excluding the impact of straight-line rent, for each lease that expires during the respective year. Amounts in thousands, except for number of leases data:

 

Year Ending

December 31,

   

Number of Leases

Expiring

   

Square Feet

Expiring

   

Total Annual Base

Rent Expiring

   

% of Gross

Annual Rent

 
(1)       115       381     $ 9,741       0.7 %

2024

      814       3,965     $ 85,798       6.6 %

2025

      1,167       7,756     $ 150,601       11.6 %

2026

      1,150       9,600     $ 164,580       12.7 %

2027

      1,178       9,559     $ 177,095       13.6 %

2028

      1,218       10,467     $ 200,255       15.4 %

2029

      796       7,299     $ 130,729       10.1 %

2030

      368       2,903     $ 65,229       5.0 %

2031

      355       2,350     $ 54,949       4.2 %

2032

      381       2,717     $ 54,113       4.2 %

2033

      411       3,209     $ 61,773       4.8 %

 

 

(1)

Leases currently under a month-to-month lease or in process of renewal.

 

During 2023, the Company executed 1,620 leases totaling 11.1 million square feet in the Company’s consolidated operating portfolio comprised of 500 new leases and 1,120 renewals and options. The leasing costs associated with these new leases are estimated to aggregate $119.5 million or $39.74 per square foot. These costs include $93.9 million of tenant improvements and $25.6 million of external leasing commissions. The average rent per square foot for (i) new leases was $21.41 and (ii) renewals and options was $19.20. The Company will seek to obtain rents that are higher than amounts within its expiring leases, however, there are many variables and uncertainties which can significantly affect the leasing market at any time; as such, the Company cannot guarantee that future leases will continue to be signed for rents that are equal to or higher than current amounts.

 

Ground-Leased Properties.

 

The Company has interests in 38 consolidated shopping center properties that are subject to long-term ground leases where a third party owns and has leased the underlying land to the Company to construct and/or operate a shopping center. The Company pays rent for the use of the land and generally is responsible for all costs and expenses associated with the building and improvements. At the end of these long-term leases, unless extended, the land together with all improvements reverts to the landowner.

 

More specific information with respect to each of the Company's property interests is set forth in Exhibit 99.1, which is incorporated herein by reference.

 

Item 3.  Legal Proceedings

 

The Company is not presently involved in any litigation nor, to its knowledge, is any litigation threatened against the Company or its subsidiaries that, in management's opinion, would result in any material effect on the Company's ownership, management or operation of its properties taken as a whole, or which is not covered by the Company's insurance.

 

Item 4.  Mine Safety Disclosures

 

Not applicable.

 

 

PART II

 

Item 5.  Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 

Market Information:  The Company’s common stock is traded on the NYSE under the trading symbol "KIM".

 

Holders:  The number of holders of record of the Company's common stock, par value $0.01 per share, was 2,853 as of January 31, 2024.

 

Dividends:  Since the IPO, the Company has paid regular quarterly cash dividends to its stockholders. While the Company intends to continue paying regular quarterly cash dividends, future dividend declarations will be paid at the discretion of the Board of Directors and will depend on the actual cash flows of the Company, its financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Code and such other factors as the Board of Directors deems relevant. The Company’s Board of Directors will continue to evaluate the Company’s dividend policy on a quarterly basis as they monitor sources of capital and evaluate operating fundamentals. The Company is required by the Code to distribute at least 90% of its REIT taxable income determined without regard to the dividends paid deduction and excluding any net capital gain. In addition, the Company will be subject to federal income tax at regular corporate rates to the extent that it distributes less than 100% of its net taxable income, including any net capital gains. The actual cash flow available to pay dividends will be affected by a number of factors, including the revenues received from operating properties, the operating expenses of the Company, the interest expense on its borrowings, the ability of lessees to meet their obligations to the Company, the ability to refinance near-term debt maturities and any unanticipated capital expenditures. The following table reflects the income tax status of distributions per share paid to holders of shares of our common stock:

 

   

Year Ended December 31,

 
   

2023

   

2022

 

Dividend paid per share

  $ 1.02     $ 0.84  

Ordinary income

    99 %     81 %

Capital gains

    -       16 %

Return of capital

    1 %     3 %

 

In addition to common stock offerings, the Company has capitalized on the growth in its business through the issuance of unsecured fixed rate medium-term notes, underwritten bonds, unsecured bank debt, mortgage debt and perpetual preferred stock. Borrowings under the Company's unsecured revolving credit facility have also been an interim source of funds to both finance the purchase of properties and other investments and meet any short-term working capital requirements. The various instruments governing the Company's issuance of its unsecured public debt, bank debt, mortgage debt and preferred stock impose certain restrictions on the Company regarding dividends, voting, liquidation and other preferential rights available to the holders of such instruments. See "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Footnotes 12, 13 and 18 of the Notes to Consolidated Financial Statements included in this Form 10-K.

 

The Company does not believe that the preferential rights available to the holders of its Class L Preferred Stock, Class M Preferred Stock, and Class N Preferred Stock, the financial covenants contained in its public bond indentures, as amended, or the credit agreement for its Credit Facility and bank term loans will have an adverse impact on the Company's ability to pay dividends in the normal course to its common stockholders or to distribute amounts necessary to maintain its qualification as a REIT. See Footnote 28 of the Notes to Consolidated Financial Statements included in this Form 10-K.

 

The Company maintains a dividend reinvestment and direct stock purchase plan (the "Plan") pursuant to which common stockholders and other interested investors may elect to automatically reinvest their dividends to purchase shares of the Company’s common stock or, through optional cash payments, purchase shares of the Company’s common stock. The Company may, from time-to-time, either (i) purchase shares of its common stock in the open market or (ii) issue new shares of its common stock for the purpose of fulfilling its obligations under the Plan.

 

Recent Sales of Unregistered Securities:  None.

 

Issuer Purchases of Equity Securities:

 

The Company’s Board of Directors had authorized the repurchase of up to 894,000 depositary shares of Class L preferred stock and 1,048,000 depositary shares of Class M preferred stock through December 31, 2023, which represented up to an aggregate of 1,942 shares of the Company’s preferred stock, par value $1.00 per share. During the year ended December 31, 2023, the Company repurchased 43,777 depositary shares of Class L preferred stock and 23,791 depositary shares of Class M preferred stock for a purchase price of $1.0 million and $0.5 million, respectively. In addition, during January 2024, the Company’s Board of Directors authorized the repurchase of up to 891,000 depositary shares of Class L Preferred Stock, 1,047,000 depositary shares of Class M Preferred Stock, and 185,000 depositary shares of Class N Preferred Stock through February 28, 2026.

 

 

The Company’s Board of Directors also extended its previously authorized common share repurchase program, which is now scheduled to expire February 28, 2026. Under this program, the Company may repurchase shares of its common stock, par value $0.01 per share, with an aggregate gross purchase price of up to $300.0 million. The Company did not repurchase any shares under the share repurchase program during the year ended December 31, 2023. As of December 31, 2023, the Company had $224.9 million available under this common share repurchase program.

 

During the year ended December 31, 2023, the Company repurchased 761,149 shares of the Company’s common stock for an aggregate purchase price of $16.3 million (weighted average price of $21.41 per share) in connection with common shares surrendered or deemed surrendered to the Company to satisfy statutory minimum tax withholding obligations in connection with equity-based compensation plans.

 

The following table presents information regarding the shares of common stock repurchased by the Company during the three months ended December 31, 2023.

 

Period

 

Total

Number of

Shares

Purchased

   

Average

Price

Paid per

Share

   

Total Number of

Shares Purchased

as Part of Publicly

Announced Plans

or Programs

   

Approximate Dollar

Value of Shares that May

Yet Be Purchased Under

the Plans or Programs

(in millions)

 

October 1, 2023 – October 31, 2023

    213     $ 17.28       -     $ 224.9  

November 1, 2023 – November 30, 2023

    -       -       -     $ 224.9  

December 1, 2023 – December 31, 2023

    2,250       22.33       -     $ 224.9  

Total

    2,463     $ 21.89       -          

 

Total Stockholder Return Performance:  The following performance chart compares, over the five years ended December 31, 2023, the cumulative total stockholder return on the Company’s common stock with the cumulative total return of the S&P 500 Index and the cumulative total return of the NAREIT Equity REITs Index (the “NAREIT Equity REITs”) prepared and published by the National Association of Real Estate Investment Trusts (“NAREIT”). The NAREIT Equity REITs Index is a free-float adjusted, market capitalization-weighted index of U.S. equity REITs. Constituents of the index include all tax-qualified REITs with more than 50% of total assets in qualifying real estate assets other than mortgages secured by real property.

 

Stockholder return performance, presented annually for the five years ended December 31, 2023, is not necessarily indicative of future results. All stockholder return performance assumes the reinvestment of dividends. The information in this paragraph and the following performance chart are deemed to be furnished, not filed.

 

img05.jpg

 

 

   

Comparison of 5 year cumulative total return data points

 
   

Dec-18

   

Dec-19

   

Dec-20

   

Dec-21

   

Dec-22

   

Dec-23

 

Kimco Realty Corporation

  $ 100     $ 150     $ 114     $ 193     $ 172     $ 183  

S&P 500

  $ 100     $ 131     $ 156     $ 200     $ 164     $ 207  

NAREIT Equity REITs

  $ 100     $ 126     $ 116     $ 166     $ 126     $ 143  

 

Item 6.  Reserved

 

Item 7.  Management's Discussion and Analysis of Financial Condition and Results of Operations

 

The following discussion should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in this Form 10-K. Historical results and percentage relationships set forth in the Consolidated Statements of Income contained in the Consolidated Financial Statements, including trends, should not be taken as indicative of future operations.

 

The Consolidated Financial Statements of the Company include the accounts of the Company, its wholly owned subsidiaries and all entities in which the Company has a controlling interest, including where the Company has been determined to be a primary beneficiary of a variable interest entity in accordance with the consolidation guidance of the FASB Accounting Standards Codification. The Company applies these provisions to each of its joint venture investments to determine whether the cost, equity or consolidation method of accounting is appropriate. The Company evaluates performance on a property specific or transactional basis and does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company believes it has a single reportable segment for disclosure purposes in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

 

Critical Accounting Estimates

 

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying Consolidated Financial Statements and related notes. In preparing these financial statements, management has made its best estimates and assumptions that affect the reported amounts of assets and liabilities. These estimates are based on, but not limited to, historical results, industry standards and current economic conditions, giving due consideration to materiality. The Company’s significant accounting policies are more fully described in Footnote 1 of the Notes to Consolidated Financial Statements included in this Form 10-K. The Company is required to make subjective assessments, of which, the most significant assumptions and estimates relate to the recoverability of trade accounts receivable, depreciable lives, valuation of real estate and intangible assets and liabilities, and valuation of joint venture investments and other investments. The Company’s reported net earnings are directly affected by management’s estimate of impairments. Application of these assumptions requires the exercise of judgment as to future uncertainties, and, as a result, actual results could materially differ from these estimates.

 

Trade Accounts Receivable

 

The Company reviews its trade accounts receivable, related to base rents, straight-line rent, expense reimbursements and other revenues for collectability. The Company evaluates the probability of the collection of the lessee’s total accounts receivable, including the corresponding straight-line rent receivable balance on a lease-by-lease basis. Determining the probability of collection of substantially all lease payments during a lease term requires significant judgment. The Company’s analysis of its accounts receivable included (i) customer credit worthiness, (ii) assessment of risk associated with the tenant, and (iii) current economic trends. In addition, tenants in bankruptcy are analyzed and considerations are made in connection with the expected recovery of pre-petition and post-petition bankruptcy claims. The Company includes provision for doubtful accounts in Revenues from rental properties, net. If a lessee’s accounts receivable balance is considered uncollectible, the Company will write-off the receivable balances associated with the lease and will only recognize lease income on a cash basis. In addition to the lease-specific collectability assessment, the analysis also recognizes a general reserve, as a reduction to Revenues from rental properties, for its portfolio of operating lease receivables which are not expected to be fully collectible based on the Company’s historical and current collection experience and the potential for settlement of arrears. Although the Company estimates uncollectible receivables and provides for them through charges against Revenues from rental properties, actual results may differ from those estimates. For example, in the event that the Company’s collectability determinations are not accurate, and the Company is required to write off additional receivables equaling 1% of the outstanding accounts and notes receivable, net balance at December 31, 2023, the Company’s rental income and net income would decrease by $3.1 million for the year ended December 31, 2023. If the Company subsequently determines that it is probable it will collect the remaining lessee’s lease payments under the lease term, any outstanding lease receivables (including straight-line rent receivables) are reinstated with a corresponding increase to rental income.

 

Real Estate

 

Valuation of Real Estate, and Intangible Assets and Liabilities

 

The Company’s investments in real estate properties are stated at cost, less accumulated depreciation and amortization. Expenditures for maintenance and repairs are charged to operations as incurred. Significant renovations and replacements, which improve and extend the life of the asset, are capitalized.

 

 

Transaction costs related to acquisitions that qualify as asset acquisitions are capitalized as part of the cost basis of the acquired assets, while transaction costs for acquisitions that are deemed to be business combinations are expensed as incurred. Also, upon acquisition of real estate operating properties in either an asset acquisition or business combination, the Company estimates the fair value of acquired tangible assets (consisting of land, building, building improvements and tenant improvements) and identified intangible assets and liabilities (consisting of above and below-market leases, in-place leases, and tenant relationships, where applicable), assumed debt and redeemable units issued at the date of acquisition, based on evaluation of information and estimates available at that date. Fair value is determined based on a market approach, which contemplates the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

 

Depreciation and amortization are provided on the straight-line method over the estimated useful lives of the assets, as follows:

 

Buildings and building improvements (in years)

 

5 to 50

Fixtures, leasehold and tenant improvements (including certain identified intangible assets)

 

Terms of leases or useful lives, whichever is shorter

 

The Company is required to make subjective assessments as to the useful lives of its properties for purposes of determining the amount of depreciation to reflect on an annual basis with respect to those properties. These assessments have a direct impact on the Company’s net earnings.

 

During 2023, the Company acquired properties for a total purchase price of $346.0 million of which, $5.0 million, or less than 1.4% of the total purchase price, was allocated to above-market leases and $29.3 million, or 8.5% of the total purchase price, was allocated to below-market leases. If the amounts allocated in 2023 to above-market and below-market leases were each reduced by 1% of the total purchase price, the net annual market lease amortization through rental income would decrease by $1.1 million (using the weighted average life of above-market and below-market leases at each respective acquired property).

 

On a continuous basis, management assesses whether there are any indicators, including property operating performance, changes in anticipated holding period, general market conditions and delays of development, that the value of the real estate properties (including any related amortizable intangible assets or liabilities) may be impaired. A property value is considered impaired only if management’s estimate of current and projected operating cash flows, net of anticipated construction and leasing costs (undiscounted and unleveraged), of the property over its anticipated hold period is less than the net carrying value of the property. Such cash flow projections consider factors such as expected future costs of materials and labor, operating income, trends and prospects, as well as the effects of demand, competition and other factors. To the extent impairment has occurred, the carrying value of the property would be adjusted to reflect the estimated fair value of the property. The Company’s estimated fair values are primarily based upon estimated sales prices from signed contracts or letters of intent from third-parties, discounted cash flow models or third-party appraisals. Estimated fair values that are based on discounted cash flow models include all estimated cash inflows and outflows over a specified holding period. Capitalization rates and discount rates utilized in these models are based upon unobservable rates that the Company believes to be within a reasonable range of current market rates.

 

See Footnotes 3 and 5 of the Notes to Consolidated Financial Statements included in this Form 10-K for further discussion.

 

Valuation of Joint Venture Investments and Other Investments

 

On a continuous basis, management assesses whether there are any indicators, including property operating performance and general market conditions, that the value of the Company’s investments in unconsolidated joint ventures may be impaired. An investment’s value is impaired only if management’s estimate of the fair value of the investment is less than the carrying value of the investment and such difference is deemed to be other-than-temporary. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the investment over the estimated fair value of the investment. Estimated fair values which are based on discounted cash flow models include all estimated cash inflows and outflows over a specified holding period, capitalization rates and discount rates utilized in these models are based upon unobservable rates that the Company believes to be within a reasonable range of current market rates.

 

See Footnote 1 of the Notes to Consolidated Financial Statements included in this Form 10-K for further discussion of the Company’s accounting policies and estimates.

 

Executive Overview

 

Kimco Realty Corporation is North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers, and a growing portfolio of mixed-use assets. The executive officers are engaged in the day-to-day management and operation of real estate exclusively with the Company, with nearly all operating functions, including leasing, asset management, maintenance, construction, legal, finance and accounting, administered by the Company.

 

 

Corporate UPREIT Reorganization

 

In January of 2023, the Company completed the Reorganization into an UPREIT structure as described in the Explanatory Note at the beginning of this Annual Report. Prior to the Reorganization, the Company’s business was conducted through the Predecessor. This Annual Report includes the business and results of operations of the Predecessor for its fiscal years ended December 31, 2022 and 2021. As a result of the Reorganization, the Company became the successor issuer to the Predecessor under the Exchange Act. The Company and Kimco OP have elected to co-file this Annual Report on Form 10-K to ensure continuity of information to investors. For additional information about the Reorganization, please see the Company’s Current Reports on Form 8-K filed with the SEC on January 3, 2023 and January 4, 2023.

 

Financial Highlights

 

The following highlights the Company’s significant transactions, events and results that occurred during the year ended December 31, 2023:

 

Financial and Portfolio Information:

 

 

Net income available to the Company’s common shareholders was $629.3 million, or $1.02 per diluted share, for the year ended December 31, 2023 as compared to $100.8 million, or $0.16 per diluted share, for the year ended December 31, 2022.

 

FFO available to the Company’s common shareholders was $970.0 million, or $1.57 per diluted share, for the year ended December 31, 2023, as compared to $976.4 million, or $1.58 per diluted share, for the corresponding period in 2022 (see additional disclosure on FFO beginning on page 42).

 

Same property net operating income (“Same property NOI”) was $1.31 billion and $1.28 billion for the years ended December 31, 2023 and December 31, 2022, respectively, an increase of 2.4% (see additional disclosure on Same property NOI beginning on page 43).

 

Executed 1,620 new leases, renewals and options totaling approximately 11.1 million square feet in the consolidated operating portfolio during the year ended December 31, 2023.

 

Consolidated operating portfolio occupancy at December 31, 2023 was 96.1% as compared to 95.5% at December 31, 2022.

 

Acquisitions, Dispositions and Other Activity (see Footnotes 3, 4, 8 and 28 of the Notes to Consolidated Financial Statements included in this Form 10-K):

 

 

Acquired an operating property and five parcels, in separate transactions, for $195.3 million.

 

Acquired three properties for an aggregate purchase price of $150.7 million from joint ventures in which the Company previously held noncontrolling ownership interests.

 

Disposed of six operating properties and 13 parcels, in separate transactions, for an aggregate sales price of $214.2 million, which resulted in aggregate gains of $75.0 million, before noncontrolling interests and taxes.

 

Monetized 14.1 million shares of Albertsons Companies Inc. ("ACI") common stock held by the Company, generating net proceeds of $282.3 million. For tax purposes, the Company recognized a long-term capital gain of $241.2 million. The Company retained the proceeds from this stock sale for general corporate purposes and incurred federal and state taxes of $60.9 million on the taxable gain. As of December 31, 2023 the Company held 14.2 million shares of ACI common stock.

 

Received a special dividend payment of $194.1 million on its shares of ACI common stock.

 

Capital Activity (for additional details see Liquidity and Capital Resources below):

 

 

Issued $500.0 million of 6.40% unsecured notes maturing March 2034.

 

Assumed $37.2 million of mortgage debt through the acquisition of two operating properties, which it subsequently repaid in March 2023, and repaid $12.3 million of mortgage debt that encumbered two operating properties and a consolidated joint venture operating property.

 

As of December 31, 2023, had $2.8 billion in immediate liquidity, including $783.8 million of cash and cash equivalents.

 

 

As a result of the above debt activity, the Company’s consolidated debt maturity profile, including extension options as of December 31, 2023, is as follows:

 

  img06.jpg

 

 

As of December 31, 2023, the Company's consolidated debt had a weighted average interest rate of 3.68% and a weighted average maturity profile of 8.7 years.

 

The Company faces external factors which may influence its future results from operations. There remains significant uncertainty in the current macro-economic environment, driven by inflationary pressures, as well as ongoing supply chain issues. These factors have impacted, and are expected to continue to impact, consumer discretionary spending and many of our tenants. The convenience and availability of e-commerce has continued to impact the retail sector, which could affect our ability to increase or maintain rental rates and our ability to renew expiring leases and/or lease available space. To better position itself, the Company’s strategy has been to attract local area customers to its properties by providing a diverse and robust tenant base across a variety of retailers, including grocery stores, off-price retailers, discounters and service-oriented tenants, which offer buy online and pick up in store, off-price merchandise and day-to-day necessities rather than high-priced luxury items.

 

The Company’s portfolio is focused on first ring suburbs around major metropolitan-area U.S. markets, predominantly on the east and west coasts and in the sun belt region, which are supported by strong demographics, significant projected population growth, and where the Company perceives significant barriers to entry. The Company owns a predominantly grocery-anchored portfolio clustered in the nation’s top markets. The Company believes it can continue to increase its occupancy levels, rental rates and overall rental growth. In addition, the Company, on a selective basis, has developed or redeveloped projects which include residential and mixed-use components.

 

As part of the Company’s investment strategy, each property is evaluated for its highest and best use, which may include residential and mixed-use components. In addition, the Company may consider other opportunistic investments related to retailer controlled real estate, such as, repositioning underperforming retail locations, retail real estate financing and bankruptcy transaction support. The Company may continue to dispose of certain properties. If the estimated fair value for any of these assets is less than their net carrying values, the Company would be required to take impairment charges and such amounts could be material. For a further discussion of these and other factors that could impact our future results, performance or transactions, see Item 1A. Risk Factors.

 

 

Results of Operations

 

Comparison of the years ended December 31, 2023 and 2022

 

The following table presents the comparative results from the Company’s Consolidated Statements of Income for the year ended December 31, 2023, as compared to the corresponding period in 2022 (in thousands, except per share data):

 

   

Year Ended December 31,

 
   

2023

   

2022

   

Change

 

Revenues

                       

Revenues from rental properties, net

  $ 1,767,057     $ 1,710,848     $ 56,209  

Management and other fee income

    16,343       16,836       (493 )

Operating expenses

                       

Rent (1)

    (15,997 )     (15,811 )     (186 )

Real estate taxes

    (231,578 )     (224,729 )     (6,849 )

Operating and maintenance (2)

    (309,143 )     (290,367 )     (18,776 )

General and administrative (3)

    (136,807 )     (119,534 )     (17,273 )

Impairment charges

    (14,043 )     (21,958 )     7,915  

Merger charges

    (4,766 )     -       (4,766 )

Depreciation and amortization

    (507,265 )     (505,000 )     (2,265 )

Gain on sale of properties

    74,976       15,179       59,797  

Other income/(expense)

                       

Special dividend income

    194,116       -       194,116  

Other income, net

    39,960       28,829       11,131  

Gain/(loss) on marketable securities, net

    21,262       (315,508 )     336,770  

Interest expense

    (250,201 )     (226,823 )     (23,378 )

Early extinguishment of debt charges

    -       (7,658 )     7,658  

Provision for income taxes, net

    (60,952 )     (56,654 )     (4,298 )

Equity in income of joint ventures, net

    72,278       109,481       (37,203 )

Equity in income of other investments, net

    10,709       17,403       (6,694 )

Net (income)/loss attributable to noncontrolling interests

    (11,676 )     11,442       (23,118 )

Preferred dividends

    (25,021 )     (25,218 )     197  

Net income available to the Company's common shareholders

  $ 629,252     $ 100,758     $ 528,494  

Net income available to the Company's common shareholders:

                       

Diluted per share

  $ 1.02     $ 0.16     $ 0.86  

 

 

(1)

Rent expense relates to ground lease payments for which the Company is the lessee.

 

(2)

Operating and maintenance expense consists of property related costs including repairs and maintenance costs, roof repair, landscaping, parking lot repair, snow removal, utilities, property insurance costs, security and various other property related expenses.

 

(3)

General and administrative expense includes employee-related expenses (including salaries, bonuses, equity awards, benefits, severance costs and payroll taxes), professional fees, office rent, travel and entertainment costs and other company-specific expenses.

 

Net income available to the Company’s common shareholders was $629.3 million for the year ended December 31, 2023, as compared to $100.8 million for the comparable period in 2022. On a diluted per share basis, net income available to the Company’s common shareholders for the year ended December 31, 2023, was $1.02 as compared to $0.16 for the comparable period in 2022. For additional disclosure, see Footnote 27 of the Notes to Consolidated Financial Statements included in this Form 10-K.

 

The following describes the changes of certain line items included on the Company’s Consolidated Statements of Income, that the Company believes changed significantly and affected Net income available to the Company’s common shareholders during the year ended December 31, 2023, as compared to the corresponding period in 2022:

 

Revenues from rental properties, net

 

The increase in Revenues from rental properties, net of $56.2 million is primarily from (i) an increase in revenues from tenants of $50.2 million, primarily due to an increase in leasing activity and net growth in the current portfolio, and (ii) an increase in revenues of $48.8 million due to properties acquired during 2023 and 2022, partially offset by (iii) a decrease in revenues of $24.5 million due to dispositions in 2023 and 2022, (iv) a net decrease of $15.2 million due to changes in credit losses from tenants, and (v) a decrease in lease termination fee income of $3.1 million.

 

Real estate taxes

 

The increase in Real estate taxes of $6.8 million is primarily due to properties acquired during 2023 and 2022, partially offset by dispositions during 2023 and 2022.

 

 

Operating and maintenance

 

The increase in Operating and maintenance expense of $18.8 million is primarily due to (i) an increase in insurance expense of $7.4 million, (ii) an increase in repairs and maintenance expense of $5.9 million, and (iii) an increase in operating costs of $5.4 million, primarily related to properties acquired during 2023 and 2022, partially offset by (iv) dispositions during 2023 and 2022.

 

General and administrative

 

The increase in General and administrative expense of $17.3 million is primarily due to (i) an increase in employee-related benefit expenses of $14.5 million, including an increase in the valuation of employee equity awards and additional employees hired and (ii) an increase in professional fees and corporate expenses of $3.7 million, primarily related to the Reorganization.

 

Impairment charges

 

During the years ended December 31, 2023 and 2022, the Company recognized impairment charges of $14.0 million and $22.0 million, respectively, primarily related to adjustments to property carrying values for which the Company’s estimated fair values were primarily based upon signed contracts or letters of intent from third-party offers. These adjustments to property carrying values were recognized in connection with the Company’s efforts to market certain properties and management’s assessment as to the likelihood and timing of such potential transactions. Certain of the calculations to determine fair values utilized unobservable inputs and, as such, were classified as Level 3 of the FASB’s fair value hierarchy. For additional disclosure, see Footnotes 5 and 17 of the Notes to Consolidated Financial Statements included in this Form 10-K.

 

Merger charges

 

During the year ended December 31, 2023, the Company incurred costs of $4.8 million associated with the RPT Merger, primarily comprised of professional and legal fees (see Footnote 28 of the Notes to Consolidated Financial Statements included in this Form 10-K).

 

Gain on sale of properties

 

During 2023, the Company disposed of six operating properties and 13 parcels, in separate transactions, for an aggregate sales price of $214.2 million, which resulted in aggregate gains of $75.0 million. During 2022, the Company disposed of nine operating properties and 13 parcels, in separate transactions, for an aggregate sales price of $191.1 million, which resulted in aggregate gains of $15.2 million.

 

Special dividend income

 

During 2023, the Company received a $194.1 million special dividend payment on its shares of ACI common stock.

 

Other income, net

 

The increase in Other income, net of $11.1 million is primarily due to (i) an increase of $8.6 million relating to net settlement gains recognized upon the liquidation of the Company’s defined benefit plan during 2023, and (ii) an increase in dividend, interest and other income of $6.8 million due to higher levels of cash on hand during 2023, partially offset by, (iii) a net decrease in mortgage and other financing income of $3.0 million.

 

Gain/(loss) on marketable securities, net

 

The change in Gain/(loss) on marketable securities, net of $336.8 million is primarily the result of mark-to-market fluctuations of the ACI shares of common stock held by the Company and the sale of ACI shares of common stock during 2023 and 2022.

 

Interest expense

 

The increase in Interest expense of $23.4 million is primarily due to a decrease in fair market value amortization resulting from the repayment of senior unsecured notes in 2022 and the issuance of $500.0 million 6.400% senior unsecured notes during 2023.

 

Early extinguishment of debt charges

 

During 2022, the Company repaid its $500.0 million 3.40% senior unsecured notes, which were scheduled to mature in November 2022. As a result, the Company incurred a prepayment charge and wrote-off deferred financing costs during 2022.

 

 

Provision for income taxes, net

 

The increase in Provision for income taxes, net of $4.3 million is primarily due to the Company’s sale of shares of ACI common stock during 2023, which generated an increased taxable long-term capital gain as compared to 2022. The Company elected to retain the proceeds from the sale and as a result incurred federal and state income tax aggregating $60.9 million on such gain.

 

Equity in income of joint ventures, net

 

The decrease in Equity in income of joint ventures, net of $37.2 million is primarily due to (i) higher gains of $29.8 million recognized on sale of properties within various joint venture investments during 2022 as compared to 2023, (ii) an increase in interest expense of $7.2 million and (iii) lower equity in income in 2023 as compared to 2022 by $3.8 million, partially offset by (iv) lower impairments in 2023 as compared to 2022 by $3.6 million.

 

Equity in income of other investments, net

 

The decrease in Equity in income of other investments, net of $6.7 million is primarily due to higher profit participation resulting from the sale of properties within various investments during 2022 as compared to 2023.

 

Net (income)/loss attributable to noncontrolling interests

 

The change in Net (income)/loss attributable to noncontrolling interests of $23.1 million is primarily due to (i) lower impairment charges of $16.4 million relating to properties within consolidated joint ventures recognized during 2022, and (ii) an increase in income from properties acquired within consolidated joint ventures during 2022.

 

Comparison of the years ended December 31, 2022 and 2021

 

Information pertaining to fiscal year 2021 was included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 under Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which was filed with the SEC on February 24, 2023.

 

Liquidity and Capital Resources

 

The Company’s capital resources include accessing the public debt and equity capital markets, unsecured term loans, mortgages and construction loan financing, marketable securities (including 14.2 million shares of ACI common stock held by the Company, see Footnote 28 of the Notes to Consolidated Financial Statements included in this Form 10-K) and immediate access to an unsecured revolving credit facility (the “Credit Facility”) with bank commitments of $2.0 billion, which can be increased to $2.75 billion through an accordion feature.

 

The Company’s cash flow activities are summarized as follows (in thousands):

 

   

Year Ended December 31,

 
   

2023

   

2022

 

Cash, cash equivalents and restricted cash, beginning of year

  $ 149,829     $ 334,663  

Net cash flow provided by operating activities

    1,071,607       861,114  

Net cash flow used for investing activities

    (136,983 )     (63,217 )

Net cash flow used for financing activities

    (300,696 )     (982,731 )

Net change in cash, cash equivalents and restricted cash

    633,928       (184,834 )

Cash, cash equivalents and restricted cash, end of year

  $ 783,757     $ 149,829  

 

Operating Activities

 

The Company anticipates that cash on hand, net cash flow provided by operating activities, borrowings under its Credit Facility and the issuance of equity, public debt, as well as other debt and equity alternatives, and the sale of marketable equity securities, will provide the necessary capital required by the Company. The Company will continue to evaluate its capital requirements for both its short-term and long-term liquidity needs, which could be affected by various risks and uncertainties, including, but not limited to, the effects of the current inflationary environment, rising interest rates, and other risks detailed in Part I, Item 1A. Risk Factors.

 

Net cash flow provided by operating activities for the year ended December 31, 2023 was $1.1 billion, as compared to $861.1 million for the comparable period in 2022. The increase of $210.5 million is primarily attributable to:

 

 

special dividend payment from ACI of $194.1 million during 2023;

 

additional operating cash flow generated by operating properties acquired during 2023 and 2022; and

 

 

 

 

new leasing, expansion and re-tenanting of core portfolio properties; partially offset by

 

a decrease in distributions from the Company’s joint ventures programs;

 

the disposition of operating properties in 2023 and 2022; 

  changes in assets and liabilities due to timing of receipts and payments; and
 

nonrecurring costs incurred in connection with the RPT Merger during 2023.

 

Investing Activities

 

Net cash flow used for investing activities was $137.0 million for 2023, as compared to $63.2 million for 2022.

 

Investing activities during 2023 consisted primarily of:

 

Cash inflows:

 

$292.6 million in proceeds from the sale of marketable securities, primarily due to the sale of 14.1 million shares of ACI common stock;

 

$160.1 million in proceeds from the sale of six consolidated properties and 13 parcels;

 

$14.0 million in reimbursements of investments in and advances to real estate joint ventures and other investments primarily due to the sale of properties within the investments; and

 

$4.6 million for principal payments from securities held to maturity.

 

Cash outflows:

 

$277.3 million for the acquisition/consolidation of four consolidated operating properties and five parcels;

 

$264.4 million for improvements to operating real estate primarily related to the Company’s active redevelopment pipeline;

 

$42.9 million for investments in and advances to real estate joint ventures, primarily related to partner buyouts and a redevelopment project within the Company’s joint venture portfolio, and investments in other investments, primarily related to funding commitments for certain investments;

 

$18.5 million for investment in mortgage and other financing receivables;

 

$3.6 million for investment in marketable securities; and

 

$1.6 million for investment in cost method investments.

 

Investing activities during 2022 consisted primarily of:

 

Cash inflows:

 

$302.5 million in proceeds from the sale of marketable securities, primarily due to the sale of 11.5 million shares of ACI common stock;

 

$184.3 million in proceeds from the sale of nine consolidated properties and 13 parcels;

 

$68.4 million in reimbursements of investments in and advances to real estate joint ventures and other investments primarily due to the sale of properties within the investments;

 

$60.3 million in collection of mortgage and other financing receivables; and

 

$4.0 million for principal payments from securities held to maturity.

 

Cash outflows:

 

$300.8 million for the acquisition of 10 consolidated operating properties and eight parcels;

 

$193.7 million for improvements to operating real estate primarily related to the Company’s active redevelopment pipeline;

 

$104.7 million for investments in and advances to real estate joint ventures, primarily related to partner buyouts and a redevelopment project within the Company’s joint venture portfolio, and investments in other investments, primarily related to funding commitments for certain investments;

 

$75.1 million for investment in mortgage and other financing receivables;

 

$4.5 million for investment in cost method investments; and

 

$4.0 million for investment in marketable securities.

 

Acquisitions of Operating Real Estate and Other Related Net Assets

 

During the years ended December 31, 2023 and 2022, the Company expended $277.3 million and $300.8 million, respectively, towards the acquisition/consolidation of operating real estate properties. The Company anticipates spending approximately $50.0 million to $100.0 million towards the acquisition of or purchase of additional interests in operating properties during 2024, excluding amounts expended in connection with the RPT Merger. The Company intends to fund these acquisitions with cash on hand, net cash flow provided by operating activities, proceeds from property dispositions, proceeds from the sale of marketable securities and/or availability under its Credit Facility.

 

 

Improvements to Operating Real Estate

 

During the years ended December 31, 2023 and 2022, the Company expended $264.4 million and $193.7 million, respectively, towards improvements to operating real estate. These amounts consist of the following (in thousands):

 

   

Year Ended December 31,

 
   

2023

   

2022

 

Redevelopment and renovations

  $ 151,067     $ 113,928  

Tenant improvements and tenant allowances

    113,328       79,782  

Total improvements

  $ 264,395     $ 193,710  

 

The Company has an ongoing program to redevelop and re-tenant its properties to maintain or enhance its competitive position in the marketplace. The Company is actively pursuing redevelopment opportunities within its operating portfolio which it believes will increase the overall value by bringing in new tenants and improving the assets’ value. The Company anticipates its capital commitment toward these redevelopment projects and re-tenanting efforts for 2024 will be approximately $225.0 million to $275.0 million. The funding of these capital requirements will be provided by cash on hand, proceeds from property dispositions, proceeds from the sale of marketable securities, net cash flow provided by operating activities and/or availability under the Company’s Credit Facility.

 

Financing Activities

 

Net cash flow used for financing activities was $300.7 million for 2023, as compared to $982.7 million for 2022.

 

Financing activities during 2023 primarily consisted of the following:

 

Cash inflows:

 

$500.0 million in proceeds from issuance of 6.4% senior unsecured notes due in 2034;

 

$3.7 million in proceeds from the issuance of common stock from stock option exercises; and

 

$2.5 million from changes in tenants’ security deposits.

 

Cash outflows:

 

$657.5 million of dividends paid;

 

$60.8 million in principal payment on debt, including normal amortization of rental property debt;

 

$58.4 million in redemption/distribution of noncontrolling interests;

 

$16.3 million in shares repurchased for employee tax withholding on equity awards;

 

$12.5 million in financing origination costs, in connection with the issuance of senior unsecured notes; and

 

$1.5 million for repurchase of preferred stock.

 

Financing activities during 2022 primarily consisted of the following:

 

Cash inflows:

 

$1.25 billion in proceeds from issuance of the Company’s $600.0 million 3.20% senior unsecured notes due 2032 and $650.0 million 4.60% senior unsecured notes due 2033;

 

$19.0 million in proceeds from a mortgage loan financing;

 

$15.5 million in proceeds from the issuance of common stock; and

 

$5.3 million from changes in tenants’ security deposits.

 

Cash outflows:

 

$1.4 billion for repayment of four separate senior unsecured notes, which had maturity dates ranging from November 2022 to June 2023;

 

$544.7 million of dividends paid;

 

$167.7 million in principal payment on debt, including normal amortization of rental property debt;

 

$67.5 million in redemption/distribution of noncontrolling interests;

 

$20.3 million in financing origination costs, in connection with the issuance of senior unsecured notes;

 

$13.7 million in shares repurchased for employee tax withholding on equity awards;

 

$7.0 million for payment of early extinguishment of debt charges; and

 

$3.4 million for repurchase of preferred stock.

 

The Company continually evaluates its debt maturities, and, based on management’s current assessment, believes it has viable financing and refinancing alternatives that will not materially adversely impact its expected financial results. As of December 31, 2023, the Company had consolidated floating rate debt totaling $17.6 million, excluding deferred financing costs of $0.1 million. The Company continues to pursue borrowing opportunities with large commercial U.S. and global banks, select life insurance companies and certain regional and local banks.

 

 

Debt maturities for 2024 consist of: $659.0 million of consolidated debt (of which $246.2 million was subsequently repaid), $112.9 million of unconsolidated joint venture debt and $231.2 million of debt included in the Company’s preferred equity program, assuming the utilization of extension options where available. The 2024 remaining consolidated debt maturities are anticipated to be repaid with operating cash flows or debt refinancing, as deemed appropriate. The 2024 debt maturities on properties in the Company’s unconsolidated joint ventures and preferred equity program are anticipated to be repaid through operating cash flows, debt refinancing, proceeds from sales within the respective entities, and partner capital contributions, as deemed appropriate.

 

The Company intends to maintain strong debt service coverage and fixed charge coverage ratios as part of its commitment to maintain its unsecured debt ratings. The Company may, from time to time, seek to obtain funds through additional common and preferred equity offerings, unsecured debt financings, unsecured term loans and/or mortgage/construction loan financings and other capital alternatives.

 

Since the completion of the Company’s IPO in 1991, the Company has utilized the public debt and equity markets as its principal source of capital for its expansion needs. Since the IPO, the Company has completed additional offerings of its public unsecured debt and equity, raising in the aggregate over $17.9 billion. Proceeds from public capital market activities have been used for the purposes of, among other things, repaying indebtedness, acquiring interests in open-air, grocery anchored shopping centers and mixed-use assets, expanding and improving properties in the portfolio and other investments.

 

During January 2023, the Company filed a shelf registration statement on Form S-3, which is effective for a term of three years, for future unlimited offerings, from time to time, of debt securities, preferred stock, depositary shares, common stock and common stock warrants. The Company, pursuant to this shelf registration statement may, from time to time, offer for sale its senior unsecured debt securities for any general corporate purposes, including (i) funding specific liquidity requirements in its business, including property acquisitions, development and redevelopment costs and (ii) managing the Company’s debt maturities.

 

During January 2023, the Company filed a registration statement on Form S-8 for its 2020 Equity Participation Plan (the “2020 Plan”), which was previously approved by the Company’s stockholders and is a successor to the Restated Kimco Realty Corporation 2010 Equity Participation Plan that expired in March 2020. The 2020 Plan provides for a maximum of 10,000,000 shares of the Company’s common stock to be reserved for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, stock payments and deferred stock awards. At December 31, 2023, the Company had 4.9 million shares of common stock available for issuance under the 2020 Plan. (see Footnote 22 of the Notes to Consolidated Financial Statements included in this Form 10-K).

 

Preferred Stock

 

The Company’s Board of Directors had authorized the repurchase of up to 894,000 depositary shares of Class L preferred stock and 1,048,000 depositary shares of Class M preferred stock through December 31, 2023, which represented up to 1,942 shares of the Company’s preferred stock, par value $1.00 per share. During the year ended December 31, 2023, the Company repurchased the following preferred stock:

 

Class of Preferred Stock

 

Depositary Shares Repurchased

   

Purchase Price (in thousands)

 

Class L

    43,777     $ 973.4  

Class M

    23,791     $ 515.9  

 

In conjunction with the RPT Merger the Company issued 1,848,539 depositary shares each representing one one-thousandth of a share of Class N preferred stock. The Class N preferred stock was issued to replace the RPT 7.25% Series D Cumulative Convertible Perpetual Preferred Share.

 

During January 2024, the Company’s Board of Directors authorized the repurchase of up to 891,000 depositary shares of Class L preferred stock, 1,047,000 depositary shares of Class M preferred stock, and 185,000 depositary shares of Class N preferred stock through February 28, 2026.

 

Common Stock

 

During September 2023, the Company established an at-the-market continuous offering program (the “ATM Program”) pursuant to which the Company may offer and sell from time-to-time shares of its common stock, par value $0.01 per share, with an aggregate gross sales price of up to $500.0 million through a consortium of banks acting as sales agents. Sales of the shares of common stock may be made, as needed, from time to time in “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended, including by means of ordinary brokers’ transactions on the New York Stock Exchange or otherwise (i) at market prices prevailing at the time of sale, (ii) at prices related to prevailing market prices or (iii) as otherwise agreed to with the applicable sales agent. In addition, the Company may from time to time enter into separate forward sale agreements with one or more banks. The Company did not issue any shares under the ATM Program during the year ended December 31, 2023. As of December 31, 2023, the Company had $500.0 million available under this ATM Program.

 

 

The Company has a common share repurchase program, which is scheduled to expire on February 28, 2026. Under this program, the Company may repurchase shares of its common stock, par value $0.01 per share, with an aggregate gross purchase price of up to $300.0 million. The Company did not repurchase any shares under the share repurchase program during 2023 and 2022. As of December 31, 2023, the Company had $224.9 million available under this common share repurchase program.

 

Senior Notes

 

In October 2023, the Company issued $500.0 million in senior unsecured notes, which are scheduled to mature in March 2034 and accrue interest at a rate of 6.400% per annum. These senior unsecured notes are guaranteed by the Parent Company. The Company used the net proceeds from the offering for general corporate purposes.

 

In January 2024, the Company paid off the remaining $246.2 million of its 4.45% senior unsecured notes, which were scheduled to mature in January 2024.

 

The Company’s supplemental indenture governing its senior notes contains the following covenants, all of which the Company is compliant with:

 

Covenant

 

Must Be

 

As of December 31, 2023

 

Consolidated Indebtedness to Total Assets

    <60%     38%  

Consolidated Secured Indebtedness to Total Assets

    <40%     2%  

Consolidated Income Available for Debt Service to Maximum Annual Service Charge

    >1.50x     5.3x  

Unencumbered Total Asset Value to Consolidated Unsecured Indebtedness

    >1.50x     2.4x  

 

For a full description of the various indenture covenants refer to the Indenture dated September 1, 1993; the First Supplemental Indenture dated August 4, 1994; the Second Supplemental Indenture dated April 7, 1995; the Third Supplemental Indenture dated June 2, 2006; the Fourth Supplemental Indenture dated April 26, 2007; the Fifth Supplemental Indenture dated as of September 24, 2009; the Sixth Supplemental Indenture dated as of May 23, 2013; Seventh Supplemental Indenture dated as of April 24, 2014; and the Eighth Supplemental Indenture dated as of January 3, 2023 each as filed with the SEC. See the Index to Exhibits included in this Form 10-K for specific filing information.

 

In connection with the merger with Weingarten, the Company assumed senior unsecured notes which have covenants that are similar to the Company’s existing debt covenants for its senior unsecured notes. Please refer to the form Indenture included in Weingarten’s Registration Statement on Form S-3, filed with the Securities and Exchange Commission on February 10, 1995, the First Supplemental Indenture, dated as of August 2, 2006 filed with Weingarten’s Current Report on Form 8-K dated August 2, 2006, and the Second Supplemental Indenture, dated as of October 9, 2012 filed with Weingarten’s Current Report on Form 8-K dated October 9, 2012. See the Exhibits Index in this Form 10-K for specific filing information.

 

In connection with the Reorganization, Kimco OP became the issuer of the senior notes and the Parent Company has provided a full and unconditional guarantee of Kimco OP’s obligations under each series of senior notes previously issued and outstanding.

 

In connection with the RPT Merger, the Company assumed $511.5 million of senior unsecured notes with maturities ranging from 2026 to 2031, which bear interest at rates ranging from 3.64% to 4.74%.  The Merger triggered a change in control, and as such, in January 2024, the Company repaid these notes, including any accrued interest and make-whole requirements.

 

Credit Facility

 

In February 2023, the Company obtained a new $2.0 billion unsecured revolving credit facility (the “Credit Facility”) with a group of banks, which replaced the Company’s existing $2.0 billion unsecured revolving credit facility which was scheduled to mature in March 2024.  The Credit Facility is scheduled to expire in March 2027 with two additional six-month options to extend the maturity date, at the Company’s discretion, to March 2028.  The Credit Facility is guaranteed by the Parent Company. The Credit Facility could be increased to $2.75 billion through an accordion feature.  The Credit Facility is a green credit facility tied to sustainability metric targets, as described in the agreement. The Credit Facility accrues interest at a rate of Adjusted Term SOFR, as defined in the terms of the Credit Facility, plus 77.5 basis points and fluctuates in accordance with the Company’s credit ratings. The interest rate can be further adjusted upward or downward by a maximum of four basis points based on the sustainability metric targets, as defined in the agreement. The interest rate on the Credit Facility as of December 31, 2023 was 6.21% after a two-basis point reduction was achieved.  Pursuant to the terms of the Credit Facility, the Company continues to be subject to the same covenants under the Company’s prior unsecured revolving credit facility. For a full description of the Credit Facility’s covenants refer to the Amended and Restated Credit Agreement dated as of February 23, 2023, filed as Exhibit 10.20 in our Annual Report on Form 10-K for the year ended December 31, 2022. As of December 31, 2023, the Credit Facility had no outstanding balance and no appropriations for letters of credit.

 

 

Pursuant to the terms of the Credit Facility, the Company, among other things, is subject to maintenance of various covenants. The Company is currently in compliance with these covenants. The financial covenants for the Credit Facility are as follows:

 

Covenant

 

Must Be

 

As of December 31, 2023

 

Total Indebtedness to Gross Asset Value (“GAV”)

 

<60%

    36%  

Total Priority Indebtedness to GAV

 

<35%

    1%  

Unencumbered Asset Net Operating Income to Total Unsecured Interest Expense

 

>1.75x

 

5.4x

 

Fixed Charge Total Adjusted EBITDA to Total Debt Service

 

>1.50x

 

4.7x

 

 

For a full description of the Credit Facility’s covenants, refer to the Amended and Restated Credit Agreement dated as of February 23, 2023, filed as Exhibit 10.20 in our Annual Report on Form 10-K for the year ended December 31, 2022. See the Index to Exhibits included in this Form 10-K for specific filing information.

 

Term Loans

 

On January 2, 2024, Kimco OP entered into a new $200.0 million unsecured term loan credit facility pursuant to a credit agreement, among Kimco OP, TD Bank, N.A., as administrative agent, and the other parties thereto. This unsecured term loan credit facility accrues interest at a spread (currently 0.850%) to the Adjusted Term SOFR Rate (as defined in the credit agreement) or, at Kimco OP’s option, a spread (currently 0.000%) to a base rate defined in the credit agreement, that, in each case, fluctuates in accordance with changes in Kimco’s senior debt ratings.

 

In addition, in connection with the RPT Merger, the Company assumed and amended $310.0 million of unsecured term loans, which were outstanding under RPT's Sixth Amended and Restated Credit Agreement. The term loans consisted of the following tranches: (i) $50.0 million maturing in 2026, (ii) $100.0 million maturing in 2027, (iii) $50.0 million maturing in 2027 and (iv) $110.0 million maturing in 2028. The Company entered into a Seventh Amended and Restated Credit Agreement, through which the current term loans were terminated and new term loans were issued to replace them. The new term loans retained the amounts and maturities of the current term loans, however, the rates (Adjusted Term SOFR plus 0.905%) and covenants were revised to match those within the Company's Credit Facility. The rates fluctuate in accordance with changes in Kimco’s senior debt ratings. The Company entered into swap rate agreements with various lenders swapping the interest rates to fixed rates ranging from 4.674% to 4.875%.

 

Mortgages Payable

 

During 2023, the Company (i) assumed $37.2 million of individual non-recourse mortgage debt through the acquisition of two operating properties, which it subsequently repaid in March 2023, and (ii) repaid $12.3 million of mortgage debt that encumbered two operating properties and a consolidated joint venture operating property.

 

In addition to the public equity and debt markets as capital sources, the Company may, from time to time, obtain mortgage financing on selected properties to partially fund the capital needs of its real estate re-development and re-tenanting projects. As of December 31, 2023, the Company had over 485 unencumbered property interests in its portfolio.

 

Albertsons Companies, Inc.

 

During 2023, the Company received a $194.1 million special dividend payment on its shares of ACI common stock and recognized this as Special dividend income on the Company’s Consolidated Statements of Income. As a result, the Company’s Board of Directors declared a $0.09 per common share special cash dividend to maintain distribution requirements as a REIT. This special dividend was paid on December 21, 2023, to shareholders of record on December 7, 2023.

 

In addition, during 2023, the Company sold 14.1 million shares of ACI common stock held by the Company, generating net proceeds of $282.3 million. For tax purposes, the Company recognized a long-term capital gain of $241.2 million. The Company retained the proceeds from this stock sale for general corporate purposes and incurred federal and state taxes of $60.9 million on the taxable gain. As of December 31, 2023, the Company held 14.2 million shares of ACI common stock.

 

In February 2024, the Company sold its remaining 14.2 million shares of ACI common stock, generating net proceeds of $299.1 million. For tax purposes, the Company will recognize a long-term capital gain of $288.7 million during the three months ended March 31, 2024. The Company anticipates retaining the proceeds from this stock sale for general corporate purposes and will incur estimated corporate taxes of $72.9 million on the taxable gain.

 

 

Dividends

 

In connection with its intention to continue to qualify as a REIT for U.S. federal income tax purposes, the Company expects to continue paying regular dividends to its stockholders. These dividends will be paid from operating cash flows. The Company’s Board of Directors will continue to evaluate the Company’s dividend policy on a quarterly basis as it monitors sources of capital and evaluates the impact of the economy and capital markets availability on operating fundamentals. Since cash used to pay dividends reduces amounts available for capital investment, the Company generally intends to maintain a dividend payout ratio which reserves such amounts as it considers necessary for the expansion and renovation of shopping centers in its portfolio, debt reduction, the acquisition of interests in new properties and other investments as suitable opportunities arise and such other factors as the Board of Directors considers appropriate. Cash dividends paid were $657.5 million, $544.7 million and $382.1 million in 2023, 2022 and 2021, respectively.

 

Although the Company receives substantially all of its rental payments on a monthly basis, it generally intends to continue paying dividends quarterly. Amounts accumulated in advance of each quarterly distribution will be invested by the Company in short-term money market or other suitable instruments. The Company’s objective is to establish a dividend level that maintains compliance with the Company’s REIT taxable income distribution requirements. On October 23, 2023, the Company’s Board of Directors declared a quarterly dividend with respect to the Company’s classes of cumulative redeemable preferred shares (Classes L and M) which were paid on January 16, 2024, to shareholders of record on January 2, 2024. Also, the Company’s Board of Directors declared a “stub period” cash dividend with respect to the Company’s newly issued Class N Preferred Stock, payable on January 16, 2024 to shareholders of record on January 5, 2024.   

 

In addition, the Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share, which was paid on December 21, 2023, to shareholders of record on December 7, 2023. Also, as discussed above, on November 12, 2023, the Company’s Board of Directors declared a special cash dividend $0.09 per common share, which was paid on December 21, 2023, to shareholders of record on December 7, 2023.

 

On January 30, 2024, the Company’s Board of Directors declared quarterly dividends with respect to the Company’s classes of cumulative redeemable preferred shares (Classes L, M and N), which are scheduled to be paid on April 15, 2024, to shareholders of record on April 1, 2024. Additionally, on January 30, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on March 21, 2024 to shareholders of record on March 7, 2024.

 

Contractual Obligations and Other Commitments

 

Contractual Obligations

 

The Company has debt obligations relating to its Credit Facility (no outstanding balance as of December 31, 2023), unsecured senior notes and mortgages with maturities ranging from less than one month to 26 years. As of December 31, 2023, the Company’s consolidated total debt had a weighted average term to maturity of 8.7 years. In addition, the Company has non-cancelable leases pertaining to its shopping center portfolio. As of December 31, 2023, the Company had 38 consolidated shopping center properties that are subject to long-term ground leases where a third party owns and has leased the underlying land or a portion of the underlying land to the Company to construct and/or operate a shopping center. Amounts due in 2024 in connection with these leases aggregate $11.8 million. The following table summarizes the Company’s consolidated debt maturities (excluding extension options, unamortized debt issuance costs of $66.2 million and fair market value of debt adjustments aggregating $24.4 million) and obligations under non-cancelable operating leases as of December 31, 2023:

   

Payments due by period (in millions)

         
   

2024

   

2025

   

2026

   

2027

   

2028

   

Thereafter

   

Total

 

Long-Term Debt:

                                                       

Principal (1)

  $ 667.5     $ 813.5     $ 780.4     $ 472.7     $ 523.4     $ 4,401.2     $ 7,658.7  

Interest (2)

  $ 261.8     $ 236.1     $ 223.0     $ 193.4     $ 178.2     $ 1,572.6     $ 2,665.1  
                                                         

Non-cancelable Leases:

                                                       

Operating leases (3)

  $ 11.8     $ 11.3     $ 10.6     $ 10.3     $ 10.4     $ 178.4     $ 232.8  

Financing leases

  $ 25.9     $ -     $ -     $ -     $ -     $ -     $ 25.9  

 

 

(1)

Maturities utilized do not reflect extension options, which range from two to five years.

 

(2)

For loans which have interest at floating rates, future interest expense was calculated using the rate as of December 31, 2023.

 

(3)

For leases which have inflationary increases, future ground and office rent expense was calculated using the rent based upon initial lease payment.

 

As of December 31, 2023, the Company had $646.8 million of consolidated unsecured debt (of which $246.2 million was subsequently repaid) and $12.2 million of consolidated secured debt scheduled to mature in 2024. The Company anticipates satisfying the remaining future maturities with available cash, operating cash flows and/or debt financing.

 

Commitments

 

The Company has issued letters of credit in connection with the completion and repayment guarantees, primarily on certain of the Company’s redevelopment projects and guaranty of payment related to the Company’s insurance program. At December 31, 2023, these letters of credit aggregated $39.2 million.

 

 

The Company has investments with funding commitments of $64.7 million, of which $51.8 million has been funded as of December 31, 2023.

 

In connection with the construction of its development/redevelopment projects and related infrastructure, certain public agencies require posting of performance and surety bonds to guarantee that the Company’s obligations are satisfied. These bonds expire upon the completion of the improvements and infrastructure. As of December 31, 2023, the Company had $18.4 million in performance and surety bonds outstanding.

 

The Company provides a guaranty for the payment of any debt service shortfalls on Series A bonds issued by the Sheridan Redevelopment Agency which are tax increment revenue bonds issued in connection with a property owned by the Company in Sheridan, Colorado. These tax increment revenue bonds have a balance of $41.0 million outstanding at December 31, 2023. The bonds are to be repaid with incremental sales and property taxes and a public improvement fee ("PIF") to be assessed on current and future retail sales and, to the extent necessary, any amounts we may have to provide under a guaranty. The revenue generated from incremental sales, property taxes and PIF have satisfied the debt service requirements to date. The incremental taxes and PIF are to remain intact until the earlier of the payment of the bond liability in full or 2040.

 

Off-Balance Sheet Arrangements

 

Unconsolidated Real Estate Joint Ventures

 

The Company has investments in various unconsolidated real estate joint ventures with varying structures. These joint ventures primarily operate shopping centers or mixed-use properties. The properties owned by the joint ventures are primarily financed with individual non-recourse mortgage loans, however, the Company, on a selective basis, has obtained unsecured financing for certain joint ventures. As of December 31, 2023, the Company did not guarantee any joint venture unsecured debt. Non-recourse mortgage debt is generally defined as debt whereby the lenders’ sole recourse with respect to borrower defaults is limited to the value of the property collateralized by the mortgage. The lender generally does not have recourse against any other assets owned by the borrower or any of the constituent members of the borrower, except for certain specified exceptions listed in the particular loan documents (see Footnote 6 of the Notes to Consolidated Financial Statements included in this Form 10-K).

 

Debt balances within the Company’s unconsolidated joint venture investments for which the Company held noncontrolling ownership interests at December 31, 2023, aggregated $1.2 billion. As of December 31, 2023, these loans had scheduled maturities ranging from three months to 7.5 years and bore interest at rates ranging from 2.95% to SOFR plus 210 basis points (7.41% as of December 31, 2023). Approximately $112.9 million of the aggregate outstanding loan balance matures in 2024. These maturing loans are anticipated to be repaid with operating cash flows, debt refinancing, unsecured credit facilities, proceeds from sales of properties within the respective entities, and partner capital contributions, as deemed appropriate (see Footnote 6 of the Notes to Consolidated Financial Statements included in this Form 10-K).

 

Other Investments

 

The Company has provided capital to owners and developers of real estate properties through its Preferred Equity program, which is included in Other investments on the Company’s Consolidated Balance Sheets. In addition, the Company has invested capital in structured investments, which are primarily accounted for on the equity method of accounting. As of December 31, 2023, the Company’s other investments were $144.1 million, of which the Company’s net investment under the Preferred Equity program was $104.1 million. As of December 31, 2023, these preferred equity investment properties had non-recourse mortgage loans aggregating $231.2 million. These loans have scheduled maturities of less than one year and bear interest at rates ranging from 4.19% to SOFR plus 265 basis points (8.14% as of December 31, 2023). These maturing loans are anticipated to be repaid with operating cash flows, debt refinancing, proceeds from sales of properties within the respective entities, and partner capital contributions, as deemed appropriate. Due to the Company’s preferred position in these investments, the Company’s share of each investment is subject to fluctuation and is dependent upon property cash flows. The Company’s maximum exposure to losses associated with its preferred equity investments is limited to its invested capital.

 

Effects of Inflation

 

Many of the Company’s long-term leases contain provisions designed to help mitigate the adverse impact of inflation. Such provisions include clauses enabling the Company to receive payment of additional rent calculated as a percentage of tenants’ gross sales above pre-determined thresholds, which generally increase as prices rise, and/or as a result of escalation clauses, which generally increase rental rates during the terms of the leases. Such escalation clauses often include increases based upon changes in the consumer price index or similar inflation indices.  In addition, many of the Company’s leases are for terms of less than 10 years, which permits the Company to seek to increase rents to market rates upon renewal. To assist in partially mitigating the Company’s exposure to increases in costs and operating expenses, including common area maintenance costs, real estate taxes and insurance, resulting from inflation, the Company’s leases include provisions that either (i) require the tenant to pay an allocable share of these operating expenses or (ii) contain fixed contractual amounts, which include escalation clauses, to reimburse these operating expenses.

 

 

Funds From Operations

 

Funds From Operations (“FFO”) is a supplemental non-GAAP financial measure utilized to evaluate the operating performance of real estate companies. NAREIT defines FFO as net income/(loss) available to the Company’s common shareholders computed in accordance with GAAP, excluding (i) depreciation and amortization related to real estate, (ii) gains or losses from sales of certain real estate assets, (iii) gains and losses from change in control, (iv) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and (v) after adjustments for unconsolidated partnerships and joint ventures calculated to reflect FFO on the same basis. The Company also made an election, in accordance with the NAREIT Funds From Operations White Paper-2018 Restatement, to exclude from its calculation of FFO (i) gains and losses on the sale of assets and impairments of assets incidental to its main business and (ii) mark-to-market changes in the value of its equity securities. As such, the Company does not include gains/impairments on land parcels, mark-to-market gains/losses from marketable securities, allowance for credit losses on mortgage receivables, gains/impairments on other investments or other amounts considered incidental to its main business in NAREIT defined FFO.

 

The Company presents FFO available to the Company’s common shareholders as it considers it an important supplemental measure of our operating performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO available to the Company’s common shareholders when reporting results. Comparison of our presentation of FFO available to the Company’s common shareholders to similarly titled measures for other REITs may not necessarily be meaningful due to possible differences in the application of the NAREIT definition used by such REITs.

 

FFO is a supplemental non-GAAP financial measure of real estate companies’ operating performances, which does not represent cash generated from operating activities in accordance with GAAP, and therefore, should not be considered an alternative for net income or cash flows from operations as a measure of liquidity.

 

The Company’s reconciliation of Net income/(loss) available to the Company’s common shareholders to FFO available to the Company’s common shareholders is reflected in the table below (in thousands, except per share data).

 

   

Three Months Ended

December 31,

   

Year Ended

December 31,

 
   

2023

   

2022

   

2023

   

2022

 

Net income/(loss) available to the Company’s common shareholders

  $ 133,360     $ (56,086 )   $ 629,252     $ 100,758  

Gain on sale of properties

    (22,600 )     (4,221 )     (74,976 )     (15,179 )

Gain on sale of joint venture properties

    -       (643 )     (9,020 )     (38,825 )

Depreciation and amortization - real estate related

    123,053       123,663       502,347       501,274  

Depreciation and amortization - real estate joint ventures

    16,082       16,158       64,472       66,326  

Impairment charges (including real estate joint ventures)

    1,020       1,585       15,060       27,254  

Profit participation from other investments, net

    366       (4,584 )     (1,916 )     (15,593 )

Special dividend income

    -       -       (194,116 )     -  

(Gain)/loss on marketable securities/derivative, net

    (11,354 )     100,314       (21,996 )     315,508  

(Benefit)/provision for income taxes (1)

    (112 )     58,608       61,351       58,373  

Noncontrolling interests (1)

    (372 )     63       (440 )     (23,540 )

FFO available to the Company’s common shareholders (3) (4)

  $ 239,443     $ 234,857     $ 970,018     $ 976,356  

Weighted average shares outstanding for FFO calculations:

                               

Basic

    617,122       615,856       616,947       615,528  

Units

    2,389       2,559       2,380       2,492  

Dilutive effect of equity awards

    845       2,114       1,132       2,283  

Diluted (2)

    620,356       620,529       620,459       620,303  
                                 

FFO per common share – basic

  $ 0.39     $ 0.38     $ 1.57     $ 1.59  

FFO per common share – diluted (2)

  $ 0.39     $ 0.38     $ 1.57     $ 1.58  

 

 

(1)

Related to gains, impairment, depreciation on properties, and gains/(losses) on sales of marketable securities, where applicable.

 

(2)

Reflects the potential impact if certain units were converted to common stock at the beginning of the period, which would have a dilutive effect on FFO available to the Company’s common shareholders. FFO available to the Company’s common shareholders would be increased by $763 and $584 for the three months ended December 31, 2023 and 2022, respectively, and $2,395 and $2,041 for the years ended December 31, 2023 and 2022, respectively. The effect of other certain convertible units would have an anti-dilutive effect upon the calculation of FFO available to the Company’s common shareholders per share. Accordingly, the impact of such conversion has not been included in the determination of diluted earnings per share calculations.

 

(3)

Includes Early extinguishment of debt charges of $7.7 million recognized during the year ended December 31, 2022.

 

(4)

Includes merger-related charges of $1.0 million and $4.8 million for the three months and year ended December 31, 2023, respectively. In addition, includes income related to the liquidation of the pension plan of $5.0 million, net for the year ended December 31, 2023.

 

 

Same Property Net Operating Income

 

Same property NOI is a supplemental non-GAAP financial measure of real estate companies’ operating performance and should not be considered an alternative to net income in accordance with GAAP or cash flows from operations as a measure of liquidity. The Company considers Same property NOI as an important operating performance measure because it is frequently used by securities analysts and investors to measure only the net operating income of properties that have been owned by the Company for the entire current and prior year reporting periods. It excludes properties under redevelopment, development and pending stabilization; properties are deemed stabilized at the earlier of (i) reaching 90% leased or (ii) one year following a project’s inclusion in operating real estate. Same property NOI assists in eliminating disparities in net income due to the development, acquisition or disposition of properties during the particular period presented, and thus provides a more consistent performance measure for the comparison of the Company's properties.

 

Same property NOI is calculated using revenues from rental properties (excluding straight-line rent adjustments, lease termination fees, TIFs and amortization of above/below-market rents) less charges for credit losses, operating and maintenance expense, real estate taxes and rent expense plus the Company’s proportionate share of Same property NOI from unconsolidated real estate joint ventures, calculated on the same basis. The Company’s method of calculating Same property NOI available to the Company’s common shareholders may differ from methods used by other REITs and, accordingly, may not be comparable to such other REITs.

 

The following is a reconciliation of Net income/(loss) available to the Company’s common shareholders to Same property NOI (in thousands):

 

   

Three Months Ended

December 31,

   

Year Ended
December 31,

 
   

2023

   

2022

   

2023

   

2022

 

Net income/(loss) available to the Company’s common shareholders

  $ 133,360     $ (56,086 )   $ 629,252     $ 100,758  

Adjustments:

                               

Management and other fee income

    (3,708 )     (3,955 )     (16,343 )     (16,836 )

General and administrative

    35,627       31,928       136,807       119,534  

Impairment charges

    -       200       14,043       21,958  

Merger charges

    1,016       -       4,766       -  

Depreciation and amortization

    124,282       124,676       507,265       505,000  

Gain on sale of properties

    (22,600 )     (4,221 )     (74,976 )     (15,179 )

Special dividend income

    -       -       (194,116 )     -  

Interest expense and other income, net

    46,917       50,969       210,241       205,652  

(Gain)/loss on marketable securities, net

    (3,620 )     100,314       (21,262 )     315,508  

(Benefit)/provision for income taxes, net

    (175 )     57,750       60,952       56,654  

Equity in income of other investments, net

    (1,968 )     (1,912 )     (10,709 )     (17,403 )

Net income/(loss) attributable to noncontrolling interests

    2,468       2,710       11,676       (11,442 )

Preferred dividends

    6,285       6,307       25,021       25,218  

Non same property net operating income

    (12,967 )     (13,293 )     (62,357 )     (68,548 )

Non-operational expense from joint ventures, net

    24,713       23,934       86,625       55,514  

Same property NOI

  $ 329,630     $ 319,321     $ 1,306,885     $ 1,276,388  

 

Same property NOI increased by $10.3 million, or 3.2%, for the three months ended December 31, 2023, as compared to the corresponding period in 2022. This increase is primarily the result of (i) an increase of $12.2 million, primarily related to an increase in rental revenue driven by strong leasing activity, partially offset by (ii) a change in credit loss from tenants of $1.9 million.

 

Same property NOI increased by $30.5 million, or 2.4%, for the year ended December 31, 2023, as compared to the corresponding period in 2022. This increase is primarily the result of (i) an increase of $47.9 million primarily related to an increase in rental revenue driven by strong leasing activity, partially offset by (ii) a change in credit loss from tenants of $17.4 million.

 

New Accounting Pronouncements

 

See Footnote 1 of the Notes to Consolidated Financial Statements included in this Form 10-K.

 

 

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk

 

The Company’s primary market risk exposure is interest rate risk. The Company periodically evaluates its exposure to short-term interest rates and will, from time-to-time, enter into interest rate protection agreements which mitigate, but do not eliminate, the effect of changes in interest rates on its floating-rate debt. The Company has not entered, and does not plan to enter, into any derivative financial instruments for trading or speculative purposes. The following table presents the carrying value of the Company’s aggregate fixed rate and variable rate debt obligations outstanding, including fair market value adjustments and unamortized deferred financing costs, as of December 31, 2023, with corresponding weighted-average interest rates sorted by maturity date. In addition, the following table presents the fair value of the Company’s debt obligations outstanding, excluding unamortized deferred financing costs. The table does not include extension options where available (amounts in millions).

 

   

2024

   

2025

   

2026

   

2027

   

2028

   

Thereafter

   

Total

   

Fair Value

 

Secured Debt

                                                               

Fixed Rate

  $ 12.2     $ 51.1     $ -     $ 33.7     $ 138.2     $ 101.1     $ 336.3     $ 312.6  

Average Interest Rate

    4.48 %     3.50 %     -       4.01 %     4.51 %     3.82 %     4.09 %        
                                                                 

Variable Rate

  $ -     $ 17.6     $ -     $ -     $ -     $ -     $ 17.6     $ 17.4  

Average Interest Rate

    -       6.64 %     -       -       -       -       6.64 %        
                                                                 

Unsecured Debt

                                                               

Fixed Rate

  $ 646.8     $ 747.9     $ 782.0     $ 436.1     $ 407.3     $ 4,242.8     $ 7,262.9     $ 6,671.5  

Average Interest Rate

    3.37 %     3.48 %     3.06 %     4.03 %     2.01 %     3.95 %     3.66 %        

 

Based on the Company’s variable-rate debt balances, interest expense would have increased by $0.2 million for the year ended December 31, 2023, if short-term interest rates were 1.0% higher.

 

Item 8.  Financial Statements and Supplementary Data

 

The response to this Item 8 is included in our audited Consolidated Financial Statements and Notes to Consolidated Financial Statements, which are contained in Part IV, Item 15 of this Form 10-K.

 

Item 9.  Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

 

None.

 

Item 9A.  Controls and Procedures

 

Kimco Realty Corporation

 

Evaluation of Disclosure Controls and Procedures

 

The Parent Company’s management, with the participation of the Parent Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Parent Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on such evaluation, the Parent Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Parent Company’s disclosure controls and procedures are effective as of December 31, 2023.

 

Changes in Internal Control Over Financial Reporting

 

There have not been any changes in the Parent Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth fiscal quarter ended December 31, 2023, that have materially affected, or are reasonably likely to materially affect, the Parent Company’s internal control over financial reporting.

 

Managements Report on Internal Control Over Financial Reporting

 

The Parent Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f) and 15d-15(f). Under the supervision and with the participation of Parent Company’s management, including Parent Company’s Chief Executive Officer and Chief Financial Officer, Parent Company conducted an evaluation of the effectiveness of its internal control over financial reporting based on the framework in the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on such evaluation under the framework in Internal Control - Integrated Framework (2013), Parent Company’s management concluded that Parent Company’s internal control over financial reporting was effective as of December 31, 2023.

 

The effectiveness of Parent Company's internal control over financial reporting as of December 31, 2023 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears under Item 8.

 

 

Kimco Realty OP, LLC

 

Evaluation of Disclosure Controls and Procedures

 

Kimco OP’s management, with the participation of Kimco OP’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of Kimco OP’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act ) as of the end of the period covered by this report. Based on such evaluation, Kimco OP’s Chief Executive Officer and Chief Financial Officer have concluded that Kimco OP’s disclosure controls and procedures are effective as of December 31, 2023.

 

Changes in Internal Control Over Financial Reporting

 

There have not been any changes in Kimco OP’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth fiscal quarter ended December 31, 2023, that have materially affected, or are reasonably likely to materially affect, Kimco OP’s internal control over financial reporting.

 

Managements Report on Internal Control Over Financial Reporting

 

Kimco OP’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f) and 15d-15(f). Under the supervision and with the participation of Kimco OP’s management, including Kimco OP’s Chief Executive Officer and Chief Financial Officer, Kimco OP conducted an evaluation of the effectiveness of its internal control over financial reporting based on the framework in the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on such evaluation under the framework in Internal Control - Integrated Framework (2013), Kimco OP’s management concluded that Kimco OP’s internal control over financial reporting was effective as of December 31, 2023.

 

Item 9B.  Other Information

 

During the three months ended December 31, 2023, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

 

On February 21, 2024, the Company filed with the State Department of Assessments and Taxation of the State of Maryland a Certificate of Correction, as set forth in Exhibit 3.7 to this Annual Report on Form 10-K, making two typographical corrections in the Articles Supplementary to the charter of Kimco Realty Corporation that classified the 7.25% Class N preferred stock of the Company.

 

Item 9C.  Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 

Not applicable.

 

 

PART III

 

Item 10.  Directors, Executive Officers and Corporate Governance

 

The information required by this item is incorporated by reference to “Proposal 1—Election of Directors,” “Governance at Kimco,” “Executive Officers,” “Other Matters” and if required, “Delinquent Section 16(a) Reports” in our definitive proxy statement to be filed with respect to the Annual Meeting of Stockholders expected to be held on May 7, 2024 (“Proxy Statement”).

 

We have adopted a Code of Conduct that applies to all directors, officers and employees, including our principal executive officer, principal financial officer and principal accounting officer. The Code of Conduct is available at the Investors/Governance/Governance Documents section of our website at www.kimcorealty.com. A copy of the Code of Conduct is available in print, free of charge, to stockholders upon request to us at the address set forth in Item 1 of this Form 10-K under the section “Business - Overview.” We intend to satisfy the disclosure requirements under the Exchange Act, as amended, regarding an amendment to or waiver from a provision of our Code of Conduct by posting such information on our website.

 

Item 11.  Executive Compensation

 

The information required by this item is incorporated by reference to “Compensation Discussion and Analysis,” “Executive Compensation Committee Report,” “Executive Compensation Tables,” “Governance at Kimco” and “Other Matters” in our Proxy Statement.

 

Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 

The information required by this item is incorporated by reference to “Beneficial Ownership” and “Executive Compensation Tables” in our Proxy Statement.

 

Item 13.  Certain Relationships and Related Transactions, and Director Independence

 

The information required by this item is incorporated by reference to “Certain Relationships and Related Transactions” and “Governance at Kimco” in our Proxy Statement.

 

Item 14.  Principal Accountant Fees and Services

 

The information required by this item is incorporated by reference to “Proposal 4: Ratification of Independent Accountants” in our Proxy Statement.

 

 

PART IV

 

Item 15.  Exhibits and Financial Statement Schedules

 

(a)   1.

 Financial Statements – 

The following consolidated financial information is included as a separate section of this Form 10-K.

Form 10-K
Report
Page

     
 

Report of Independent Registered Public Accounting Firm – Kimco Realty Corporation and Subsidiaries

55

     
 

Report of Independent Registered Public Accounting Firm – Kimco Realty OP, LLC and Subsidiaries

57

     
 

Consolidated Financial Statements of Kimco Realty Corporation and Subsidiaries

 
     
 

   Consolidated Balance Sheets as of December 31, 2023 and 2022

59

     
 

   Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021

60

     
 

   Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022 and 2021

61

     
 

   Consolidated Statements of Changes in Equity for the years ended December 31, 2023, 2022 and 2021

62

     
 

   Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021

63

     
 

Consolidated Financial Statements of Kimco Realty OP, LLC and Subsidiaries

 
     
 

   Consolidated Balance Sheets as of December 31, 2023 and 2022

64

     
 

   Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021

65

     
 

   Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022 and 2021

66

     
 

   Consolidated Statements of Changes in Capital for the years ended December 31, 2023, 2022 and 2021

67

     
 

   Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021

68

     
 

Kimco Realty Corporation and Subsidiaries and Kimco Realty OP, LLC and Subsidiaries

 
     
 

Notes to Consolidated Financial Statements

69

     

2.

 Financial Statement Schedules -

 

 

 

Schedule II -

Valuation and Qualifying Accounts for the years ended December 31, 2023, 2022 and 2021

109

 

Schedule III -

Real Estate and Accumulated Depreciation as of December 31, 2023

110

 

Schedule IV -

Mortgage Loans on Real Estate as of December 31, 2023

112

         
 

All other schedules are omitted since the required information is not present or is not present in amounts sufficient to require submission of the schedule.

 

 

3.

 Exhibits -

 
     
 

The exhibits listed on the accompanying Index to Exhibits are filed as part of this Form 10-K.

48

 

Item 16.  Form 10-K Summary

 

None.

 

 

INDEX TO EXHIBITS

 

   

Incorporated by Reference

   

Exhibit

Number

Exhibit Description

Form

File No.

Date of

Filing

Exhibit

Number

Filed/

Furnished

Herewith

Page

Number

2.1

Agreement and Plan of Merger, dated as of April 15, 2021, by and between Kimco Realty Corporation and Weingarten Realty Investors.

8-K

1-10899

04/15/21

2.1

   

2.2

Agreement and Plan of Merger, dated December 15, 2022, by and among Kimco, New Kimco and Merger Sub.

8-K

1-10899

12/15/22

2.1

   

2.3

Agreement and Plan of Merger, dated as of August 28, 2023, by and among Kimco Realty Corporation, Kimco Realty OP, LLC, Tarpon Acquisition Sub, LLC, Tarpon OP Acquisition Sub, LLC, RPT Realty, and RPT Realty, L.P.

8-K

1-10899

08/28/23

2.1

   
3.1 Articles of Merger 8-K12B 1-10899 01/03/23 3.3    

3.2

Articles of Amendment and Restatement of Kimco Realty Corporation

8-K12B

1-10899

01/03/23

3.1

   

3.3

Articles Supplementary of Kimco Realty Corporation with respect to Kimco Class N Preferred Stock

8-K

1-10899

01/02/24

3.2    
3.4 Certificate of Correction to Articles Supplementary of Kimco Realty Corporation with respect to Kimco Class N Preferred Stock *  
3.5 Amended and Restated Bylaws of Kimco Realty Corporation 10-Q 1-10899 07/28/23 3.1    

3.6

Certificate of Formation of Kimco Realty OP, LLC

8-K12B

1-10899

01/03/23

3.4

   

3.7

Amended and Restated Limited Liability Company Agreement of Kimco Realty OP, LLC, dated as of January 2, 2024

8-K

1-10899

01/02/24

3.1

   

4.1

Indenture dated September 1, 1993, between Kimco Realty Corporation and Bank of New York (as successor to IBJ Schroder Bank and Trust Company)

S-3

333-67552

09/10/93

4(a)

   

4.2

First Supplemental Indenture, dated August 4, 1994, between Kimco Realty Corporation and Bank of New York (as successor to IBJ Schroder Bank and Trust Company)

10-K

1-10899

03/28/96

4.6

   

4.3

Second Supplemental Indenture, dated April 7, 1995, between Kimco Realty Corporation and Bank of New York (as successor to IBJ Schroder Bank and Trust Company)

8-K

1-10899

04/07/95

4(a)

   

4.4

Third Supplemental Indenture, dated June 2, 2006, between Kimco Realty Corporation and The Bank of New York, as Trustee

8-K

1-10899

06/05/06

4.1

   

4.5

Fourth Supplemental Indenture, dated April 26, 2007, between Kimco Realty Corporation and The Bank of New York, as Trustee

8-K

1-10899

04/26/07

1.3

   

4.6

Fourth Supplemental Indenture, dated as of January 3, 2023, between Kimco Realty OP, LLC, as issuer, Kimco Realty Corporation, as guarantor, and The Bank of New York Mellon Trust Company, N.A., as Trustee

8-K12B

1-10899

01/03/23

4.2

   

4.7

Fifth Supplemental Indenture, dated September 24, 2009, between Kimco Realty Corporation and The Bank of New York Mellon, as Trustee

8-K

1-10899

09/24/09

4.1

   

4.8

Sixth Supplemental Indenture, dated May 23, 2013, between Kimco Realty Corporation and The Bank of New York Mellon, as Trustee

8-K

1-10899

05/23/13

4.1

   

4.9

Seventh Supplemental Indenture, dated April 24, 2014, between Kimco Realty Corporation and The Bank of New York Mellon, as Trustee

8-K

1-10899

04/24/14

4.1

   

4.10

Eighth Supplemental Indenture, dated as of January 3, 2023, between Kimco Realty OP, LLC, as issuer, Kimco Realty Corporation, as guarantor, and The Bank of New York Mellon Trust Company, N.A., as Trustee

8-K12B

1-10899

01/03/23

4.1

   

 

 

    Incorporated by Reference    

Exhibit

Number

Exhibit Description Form File No.

Date of

Filing

Exhibit

Number

Filed/

Furnished

Herewith

Page

Number

4.11

Form of Indenture for Senior Debt Securities, among Kimco Realty Corporation, an issuer, Kimco Realty OP, LLC, as guarantor, and The Bank of New York Mellon, as Trustee

S-3ASR

333-269102

01/03/23

4(j)

   

4.12

Description of Securities

*  

4.13

Form of Indenture for Senior Debt Securities dated as of May 1, 1995 between Weingarten Realty Investors and The Bank of New York Mellon Trust Company, N.A. (successor to J.P. Morgan Trust Company, National Association, successor to Texas Commerce Bank National Association).

S-3

33-57659

02/10/95

4(a)

   

4.14

First Supplemental Indenture, dated August 2, 2006, between Weingarten Realty Investors and The Bank of New York Mellon Trust Company, N.A. (successor to J.P. Morgan Trust Company, National Association, successor to Texas Commerce Bank National Association).

8-K

1-09876

08/02/06

4.1

   

4.15

Second Supplemental Indenture, dated October 9, 2012, between Weingarten Realty Investors and The Bank of New York Mellon Trust Company, N.A. (successor to J.P. Morgan Trust Company, National Association, successor to Texas Commerce Bank National Association).

8-K

1-09876

10/09/12

4.1

   

4.16

Third Supplemental Indenture, dated August 3, 2021, between Kimco Realty Corporation, Weingarten Realty Investors and The Bank of New York Mellon Trust Company, N.A. (successor to J.P. Morgan Trust Company, National Association, successor to Texas Commerce Bank National Association).

10-K

1-10899

02/24/23

4.16

   

4.17

Fourth Supplemental Indenture, dated January 3, 2023, between Kimco Realty Corporation (successor in interest to Weingarten Realty Investors) and The Bank of New York Mellon Trust Company, N.A. (successor to J.P. Morgan Trust Company, National Association, successor to Texas Commerce Bank National Association).

8-K12B

1-10899

01/03/23

4.2

   

4.18

Form of Deposit Agreement, dated as of January 2, 2024, between Kimco Realty Corporation and Equiniti Trust Company, LLC, and the holders from time to time of the Depositary Receipts described therein, dated as of January 2, 2024

8-K

1-10899

01/03/24

4.1

   

10.1

Amended and Restated Stock Option Plan

10-K

1-10899

03/28/95

10.3

   

10.2

Second Amended and Restated 1998 Equity Participation Plan of Kimco Realty Corporation (restated February 25, 2009)

10-K

1-10899

02/27/09

10.9

   

10.3

Kimco Realty Corporation Executive Severance Plan, dated March 15, 2010

8-K

1-10899

03/19/10

10.5

   

10.4

Restated Kimco Realty Corporation 2010 Equity Participation Plan

10-K

1-10899

02/27/17

10.6

   

10.5

Amendment No. 1 to the Kimco Realty Corporation 2010 Equity Participation Plan

10-K

1-10899

02/23/18

10.7

   

10.6

Amendment No. 2 to the Kimco Realty Corporation 2010 Equity Participation Plan

8-K12B

1-10899

01/03/23

10.7

   

10.7

Form of Performance Share Award Grant Notice and Performance Share Award Agreement

8-K

1-10899

03/19/10

10.8

   

10.8

First Amendment to the Kimco Realty Corporation Executive Severance Plan, dated March 20, 2012

10-Q

1-10899

05/10/12

10.3

   

10.9

Amended and Restated Credit Agreement, dated as of February 27, 2020, among Kimco Realty Corporation, the subsidiaries of Kimco from time to time parties thereto, the several banks, financial institutions and other entities from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent for the Lenders thereunder

8-K

1-10899

03/02/20

10.1

   

10.10

Kimco Realty Corporation 2020 Equity Participation Plan

DEF 14A

1-10899

03/18/20

Annex B

   

10.11

Kimco Realty Corporation Amended and Restated 2020 Equity Participation Plan

8-K12B

1-10899

01/03/23

10.8

   

 

 

    Incorporated by Reference    

Exhibit

Number

Exhibit Description Form File No.

Date of

Filing

Exhibit

Number

Filed/

Furnished

Herewith

Page

Number

10.12 Kimco Realty Corporation Second Amended and Restated 2020 Equity Participation Plan         *  
10.13 Form of LTIP Unit Award Agreement (Time-Based)         *  
10.14 Form of LTIP Unit Award Agreement (Performance-Based)         *  

10.15

Credit Agreement, dated April 1, 2020, among Kimco Realty Corporation and each of the parties named therein

10-Q

1-10899

08/07/20

10.1

   

10.16

Amendment No.1 to Credit Agreement, dated April 20, 2020, among Kimco Realty Corporation and each of the parties named therein.

10-Q

1-10899

08/07/20

10.2

   

10.17

Amendment No.2 to Credit Agreement, dated April 24, 2020, among Kimco Realty Corporation and each of the parties named therein.

10-Q

1-10899

08/07/20

10.3

   

10.18

Amendment No. 3 to Amended and Restated Credit Agreement, dated as of January 3, 2023, by and among Kimco Realty OP, LLC, Kimco Realty Corporation, and JPMorgan Chase Bank, N.A., as administrative agent

8-K12B

1-10899

01/03/23

10.1

   

10.19

Form of Kimco Realty Corporation 2020 Equity Participation Plan Performance Share Award Grant Notice and Performance Share Award Agreement.

10-Q

1-10899

08/07/20

10.4

   

10.20

Form of Kimco Realty Corporation 2020 Equity Participation Plan Restricted Stock Award Grant Notice and Restricted Stock Award Agreement.

10-Q

1-10899

08/07/20

10.5

   

10.21

Parent Guarantee, dated as of January 1, 2023, by Kimco Realty Corporation

8-K12B

1-10899

01/03/23

10.2

   

10.22

Form of Indemnification Agreement

10-K

1-10899

02/24/23

10.19

   

10.23

Amended and Restated Credit Agreement, dated as of February 23, 2023, among Kimco Realty OP, LLC and each of the parties named therein.

10-K

1-10899

02/24/23

10.20

   

10.24

Seventh Amended and Restated Credit Agreement, dated as of January 2, 2024 among Kimco Realty OP, LLC (as successor by assumption to RPT Realty, L.P.), the several banks, financial institutions and other entities from time to time parties thereto, BMO Bank, N.A., as syndication agent, Truist Bank and Regions Bank, as documentation agents, J.P. Morgan Securities LLC, as sustainability structuring agent, and JPMorgan Chase Bank, N.A., as administrative agent

8-K

1-10899

01/03/24

10.1

   

10.25

Parent Guarantee, dated as of January 2, 2024, made by Kimco Realty Corporation in favor of JPMorgan Chase Bank, N.A., as administrative agent

8-K

1-10899

01/03/24

10.2

   

10.26

Term Loan Agreement, dated as of January 2, 2024 among Kimco Realty O.P., LLC, the several banks, financial institutions and other entities from time to time parties thereto, and TD Bank, N.A., as administrative agent

8-K

1-10899

01/03/24

10.3

   

10.27

Parent Guarantee, dated as of January 2, 2024, made by Kimco Realty Corporation in favor of TD Bank, N.A., as administrative agent

8-K

1-10899

01/03/24

10.4

   

21.1

Significant Subsidiaries of Kimco Realty Corporation and Kimco Realty OP, LLC

*

 

23.1

Consent of PricewaterhouseCoopers LLP - Kimco Realty Corporation

*

 
23.2 Consent of PricewaterhouseCoopers LLP - Kimco Realty OP, LLC *  

31.1

Certification of the Chief Executive Officer of Kimco Realty Corporation, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

*

 

31.2

Certification of the Chief Financial Officer of Kimco Realty Corporation, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

*

 

31.3

Certification of the Chief Executive Officer of Kimco Realty OP, LLC, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

*

 

31.4

Certification of the Chief Financial Officer of Kimco Realty OP, LLC, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

*

 

32.1

Certification of the Chief Executive Officer of Kimco Realty Corporation, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

**

 

32.2

Certification of the Chief Financial Officer of Kimco Realty Corporation, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

**

 

 

 

    Incorporated by Reference    

Exhibit

Number

Exhibit Description Form File No.

Date of

Filing

Exhibit

Number

Filed/

Furnished

Herewith

Page

Number

32.3

Certification of the Chief Executive Officer of Kimco Realty OP, LLC, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

**

 

32.4

Certification of the Chief Financial Officer of Kimco Realty OP, LLC, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

**

 
97.1 Kimco Realty Corporation Policy for Recovery of Erroneously Awarded Compensation *  

99.1

Property Chart

*

 

101.INS

Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

*

 

101.SCH

Inline XBRL Taxonomy Extension Schema

*

 

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase

*

 

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase

*

 

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase

*

 

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase

*

 

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*

 

 

* Filed herewith

** Furnished herewith

 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  KIMCO REALTY CORPORATION
   
   
  By: /s/ Conor C. Flynn
  Conor C. Flynn
  Chief Executive Officer

 

Dated:  February 23, 2024

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Signature

 

Title

Date

       

/s/ Milton Cooper

 

Executive Chairman of the Board of Directors

February 23, 2024

Milton Cooper

     
       

/s/ Conor C. Flynn

 

Chief Executive Officer and Director

February 23, 2024

Conor C. Flynn

     
       

/s/ Frank Lourenso

 

Director

February 23, 2024

Frank Lourenso

     
       

/s/ Richard Saltzman

 

Director

February 23, 2024

Richard Saltzman

     
       

/s/ Philip Coviello

 

Director

February 23, 2024

Philip Coviello

     
       

/s/ Mary Hogan Preusse

 

Director

February 23, 2024

Mary Hogan Preusse

     
       

/s/ Valerie Richardson

 

Director

February 23, 2024

Valerie Richardson

     
       

/s/ Henry Moniz

 

Director

February 23, 2024

Henry Moniz

     
       

/s/ Glenn G. Cohen

 

Executive Vice President -

February 23, 2024

Glenn G. Cohen

 

Chief Financial Officer

 
       

/s/ Paul Westbrook

 

Vice President -

February 23, 2024

Paul Westbrook

 

Chief Accounting Officer

 

 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  KIMCO REALTY OP, LLC
  BY: KIMCO REALTY CORPORATION, managing member
   
   
  By: /s/ Conor C. Flynn
  Conor C. Flynn
  Chief Executive Officer

 

Dated:  February 23, 2024

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following directors and officers of Kimco Realty Corporation, the managing member of the registrant, and in the capacities and on the dates indicated.

 

Signature

 

Title

Date

       

/s/ Milton Cooper

 

Executive Chairman of the Board of Directors

February 23, 2024

Milton Cooper

     
       

/s/ Conor C. Flynn

 

Chief Executive Officer and Director

February 23, 2024

Conor C. Flynn

     
       

/s/ Frank Lourenso

 

Director

February 23, 2024

Frank Lourenso

     
       

/s/ Richard Saltzman

 

Director

February 23, 2024

Richard Saltzman

     
       

/s/ Philip Coviello

 

Director

February 23, 2024

Philip Coviello

     
       

/s/ Mary Hogan Preusse

 

Director

February 23, 2024

Mary Hogan Preusse

     
       

/s/ Valerie Richardson

 

Director

February 23, 2024

Valerie Richardson

     
       

/s/ Henry Moniz

 

Director

February 23, 2024

Henry Moniz

     
       

/s/ Glenn G. Cohen

 

Executive Vice President -

February 23, 2024

Glenn G. Cohen

 

Chief Financial Officer

 
       

/s/ Paul Westbrook

 

Vice President -

February 23, 2024

Paul Westbrook

 

Chief Accounting Officer

 

 

 

 

ANNUAL REPORT ON FORM 10-K

 

ITEM 8, ITEM 15 (a) (1) and (2)

 

INDEX TO FINANCIAL STATEMENTS

 

AND

 

FINANCIAL STATEMENT SCHEDULES

 

  
 

Form 10-K
Page

  

KIMCO REALTY CORPORATION AND SUBSIDIARIES

 
KIMCO REALTY OP, LLC AND SUBSIDIARIES  
  

Report of Independent Registered Public Accounting Firm (PCAOB ID 238) - Kimco Realty Corporation and Subsidiaries

55

  

Report of Independent Registered Public Accounting Firm (PCAOB ID 238) - Kimco Realty OP, LLC and Subsidiaries

57

  

Consolidated Financial Statements and Financial Statement Schedules of Kimco Realty Corporation and Subsidiaries:

 
  

Consolidated Balance Sheets as of December 31, 2023 and 2022

59

  

Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021

60

  

Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022 and 2021

61

  

Consolidated Statements of Changes in Equity for the years ended December 31, 2023, 2022 and 2021

62

  

Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021

63

  

Consolidated Financial Statements and Financial Statement Schedules of Kimco Realty OP, LLC and Subsidiaries:

 
  

Consolidated Balance Sheets as of December 31, 2023 and 2022

64

  

Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021

65

  

Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022 and 2021

66

  

Consolidated Statements of Changes in Capital for the years ended December 31, 2023, 2022 and 2021

67

  

Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021

68

  

Financial Statement Schedules:

 
  

II.

Valuation and Qualifying Accounts for the years ended December 31, 2023, 2022 and 2021

109

III.

Real Estate and Accumulated Depreciation as of December 31, 2023

110

IV.

Mortgage Loans on Real Estate as of December 31, 2023

112

 

 

Report of Independent Registered Public Accounting Firm

 

To the Board of Directors and Stockholders of Kimco Realty Corporation

 

Opinions on the Financial Statements and Internal Control over Financial Reporting

 

We have audited the consolidated financial statements, including the related notes, as listed in the index appearing under Item 15(a)(1), and the financial statement schedules listed in the index appearing under Item 15(a)(2), of Kimco Realty Corporation and its subsidiaries (the “Company”) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

 

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

 

Basis for Opinions

 

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

 

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

 

Definition and Limitations of Internal Control over Financial Reporting

 

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

Critical Audit Matters

 

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

 

Analysis of Real Estate Properties for Indicators of Impairment

 

As described in Notes 1 and 5 to the consolidated financial statements, the net carrying value of the Company’s real estate, net was $15.1 billion. On a continuous basis, management assesses whether there are indicators, including property operating performance, changes in anticipated holding period, and general market conditions, that the value of the Company’s real estate properties may be impaired. An impairment is recognized on properties held for use when the expected undiscounted cash flows for a property are less than its carrying amount, at which time, the property is written-down to its estimated fair value.

 

 

The principal considerations for our determination that performing procedures relating to the analysis of real estate properties for indicators of impairment of property carrying values is a critical audit matter are (i) the significant judgment by management to identify indicators of impairment and (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to management’s identification of impairment indicators related to property operating performance, changes in anticipated holding period, and general market conditions.

 

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s analysis of real estate properties for indicators of impairment. These procedures also included, among others (i) testing management’s process for identifying real estate properties for indicators of impairment, (ii) testing the completeness and accuracy of the underlying data used in the analysis, and (iii) evaluating the reasonableness of management’s identification of impairment indicators related to property operating performance, changes in anticipated holding period, and general market conditions. Evaluating the reasonableness of management’s identification of impairment indicators involved considering whether the indicators were consistent with evidence obtained in other areas of the audit, as well as (i) evaluating property operating performance (ii) evaluating anticipated changes in holding period, which consists of management’s intent with respect to holding or disposing of properties, and (iii) assessing management’s considerations of general market conditions and evaluating the consistency with external market and industry data.

 

 

 

 

/s/ PricewaterhouseCoopers LLP

New York, New York

February 23, 2024

 

We have served as the Company’s auditor since at least 1991.We have not been able to determine the specific year we began serving as auditor of the Company.

 

 

Report of Independent Registered Public Accounting Firm

 

To the Member of Kimco Realty OP, LLC

 

Opinion on the Financial Statements

 

We have audited the consolidated financial statements, including the related notes, as listed in the index appearing under Item 15(a)(1), and the financial statement schedules listed in the index appearing under Item 15(a)(2), of Kimco Realty OP, LLC and its subsidiaries (“Kimco OP”) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Kimco OP as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These consolidated financial statements are the responsibility of Kimco OP’s management. Our responsibility is to express an opinion on Kimco OP’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Kimco OP in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Kimco OP is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of Kimco OP's internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

Critical Audit Matters

 

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

 

Analysis of Real Estate Properties for Indicators of Impairment

 

As described in Notes 1 and 5 to the consolidated financial statements, the net carrying value of Kimco OP’s real estate, net was $15.1 billion. On a continuous basis, management assesses whether there are indicators, including property operating performance, changes in anticipated holding period, and general market conditions, that the value of Kimco OP’s real estate properties may be impaired. An impairment is recognized on properties held for use when the expected undiscounted cash flows for a property are less than its carrying amount, at which time, the property is written-down to its estimated fair value.

 

 

The principal considerations for our determination that performing procedures relating to the analysis of real estate properties for indicators of impairment of property carrying values is a critical audit matter are (i) the significant judgment by management to identify indicators of impairment and  (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to management’s identification of impairment indicators related to property operating performance, changes in anticipated holding period, and general market conditions.

 

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s analysis of real estate properties for indicators of impairment. These procedures also included, among others (i) testing management’s process for identifying real estate properties for indicators of impairment, (ii) testing the completeness and accuracy of the underlying data used in the analysis, and (iii) evaluating the reasonableness of management’s identification of impairment indicators related to property operating performance, changes in anticipated holding period, and general market conditions. Evaluating the reasonableness of management’s identification of impairment indicators involved considering whether the indicators were consistent with evidence obtained in other areas of the audit, as well as (i) evaluating property operating performance (ii) evaluating anticipated changes in holding period, which consists of management’s intent with respect to holding or disposing of properties, and (iii) assessing management’s considerations of general market conditions and evaluating the consistency with external market and industry data.

 

 

 

 

/s/ PricewaterhouseCoopers LLP

New York, New York

February 23, 2024

 

We have served as Kimco OP’s or its predecessor’s auditor since at least 1991. We have not been able to determine the specific year we began serving as auditor of the predecessor.

 

 

 

KIMCO REALTY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

 

  

December 31, 2023

  

December 31, 2022

 

Assets:

        

Real estate:

        

Land

 $4,177,797  $4,124,542 
Building and improvements  14,759,997   14,332,700 
Real estate  18,937,794   18,457,242 
Less: accumulated depreciation and amortization  (3,842,869)  (3,417,414)

Total real estate, net

  15,094,925   15,039,828 
         

Investments in and advances to real estate joint ventures

  1,087,804   1,091,551 

Other investments

  144,089   107,581 

Cash and cash equivalents

  783,757   149,829 

Marketable securities

  330,057   597,732 

Accounts and notes receivable, net

  307,617   304,226 

Deferred charges and prepaid expenses

  155,567   147,863 

Operating lease right-of-use assets, net

  128,258   133,733 

Other assets

  241,948   253,779 

Total assets (1)

 $18,274,022  $17,826,122 
         

Liabilities:

        

Notes payable, net

 $7,262,851  $6,780,969 

Mortgages payable, net

  353,945   376,917 

Accounts payable and accrued expenses

  216,237   207,815 

Dividends payable

  5,308   5,326 

Operating lease liabilities

  109,985   113,679 

Other liabilities

  599,961   601,574 

Total liabilities (2)

  8,548,287   8,086,280 

Redeemable noncontrolling interests

  72,277   92,933 
         

Commitments and contingencies (Footnote 21)

          
         

Stockholders' equity:

        
Preferred stock, $1.00 par value, authorized 7,054,000 shares; issued and outstanding (in series) 19,367 and 19,435 shares, respectively; aggregate liquidation preference $484,179 and $485,868, respectively  19   19 
Common stock, $.01 par value, authorized 750,000,000 shares; issued and outstanding 619,871,237 and 618,483,565 shares, respectively  6,199   6,185 

Paid-in capital

  9,638,494   9,618,271 

Cumulative distributions in excess of net income

  (122,576)  (119,548)

Accumulated other comprehensive income

  3,329   10,581 
         

Total stockholders' equity

  9,525,465   9,515,508 

Noncontrolling interests

  127,993   131,401 

Total equity

  9,653,458   9,646,909 

Total liabilities and equity

 $18,274,022  $17,826,122 

 

(1)

Includes restricted assets of consolidated variable interest entities (“VIEs”) at December 31, 2023 and 2022 of $388,626 and $436,605, respectively. See Footnote 16 of the Notes to Consolidated Financial Statements.

(2)

Includes non-recourse liabilities of consolidated VIEs at December 31, 2023 and 2022 of $180,855 and $199,132, respectively. See Footnote 16 of the Notes to Consolidated Financial Statements.

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

KIMCO REALTY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data)

 

  

Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Revenues

            

Revenues from rental properties, net

 $1,767,057  $1,710,848  $1,349,702 

Management and other fee income

  16,343   16,836   14,883 

Total revenues

  1,783,400   1,727,684   1,364,585 
             

Operating expenses

            

Rent

  (15,997)  (15,811)  (13,773)

Real estate taxes

  (231,578)  (224,729)  (181,256)

Operating and maintenance

  (309,143)  (290,367)  (222,882)

General and administrative

  (136,807)  (119,534)  (104,121)

Impairment charges

  (14,043)  (21,958)  (3,597)

Merger charges

  (4,766)  -   (50,191)

Depreciation and amortization

  (507,265)  (505,000)  (395,320)

Total operating expenses

  (1,219,599)  (1,177,399)  (971,140)
             

Gain on sale of properties

  74,976   15,179   30,841 
             

Operating income

  638,777   565,464   424,286 
             

Other income/(expense)

            

Special dividend income

  194,116   -   - 

Other income, net

  39,960   28,829   19,810 

Gain/(loss) on marketable securities, net

  21,262   (315,508)  505,163 

Interest expense

  (250,201)  (226,823)  (204,133)

Early extinguishment of debt charges

  -   (7,658)  - 

Income before income taxes, net, equity in income of joint ventures, net, and equity in income from other investments, net

  643,914   44,304   745,126 
             

Provision for income taxes, net

  (60,952)  (56,654)  (3,380)

Equity in income of joint ventures, net

  72,278   109,481   84,778 

Equity in income of other investments, net

  10,709   17,403   23,172 
             

Net income

  665,949   114,534   849,696 
             

Net (income)/loss attributable to noncontrolling interests

  (11,676)  11,442   (5,637)
             

Net income attributable to the Company

  654,273   125,976   844,059 
             

Preferred dividends

  (25,021)  (25,218)  (25,416)
             

Net income available to the Company's common shareholders

 $629,252  $100,758  $818,643 
             

Per common share:

            

Net income available to the Company's common shareholders:

            

-Basic

 $1.02  0.16  1.61 

-Diluted

 $1.02  $0.16  1.60 
             

Weighted average shares:

            

-Basic

  616,947   615,528   506,248 

-Diluted

  618,199   617,858   511,385 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

KIMCO REALTY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

 

  

Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Net income

 $665,949  $114,534  $849,696 

Other comprehensive income:

            

Change in unrealized gains related to defined benefit plan

  (10,581)  8,365   2,216 

Change in unrealized gains related to equity method investments

  3,329   -   - 

Other comprehensive income

  (7,252)  8,365   2,216 
             

Comprehensive income

  658,697   122,899   851,912 
             

Comprehensive (income)/loss attributable to noncontrolling interests

  (11,676)  11,442   (5,637)
             

Comprehensive income attributable to the Company

 $647,021  $134,341  $846,275 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

KIMCO REALTY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the Years Ended December 31, 2023, 2022 and 2021

(in thousands)

 

                      

(Cumulative

  

Accumulated

             
                      

Distributions in

  

Other

  

Total

         
  

Preferred Stock

  

Common Stock

  

Paid-in

  

Excess of Net Income)/

  

Comprehensive

  

Stockholders'

  

Noncontrolling

  

Total

 
  

Issued

  

Amount

  

Issued

  

Amount

  

Capital

  

Retained Earnings

  

Income

  

Equity

  

Interests

  

Equity

 

Balance, January 1, 2021

  20  $20   432,519  $4,325  $5,766,511  $(162,812) $-  $5,608,044  $62,210  $5,670,254 

Comprehensive income:

                              -         

Net income

  -   -   -   -   -   844,059   -   844,059   5,637   849,696 

Other comprehensive income:

                              -       - 

Change in unrealized gains related to defined benefit plan

  -   -   -   -   -   -   2,216   2,216   -   2,216 

Redeemable noncontrolling interests income

  -   -   -   -   -   -   -   -   (751)  (751)

Dividends declared to preferred shares

                      (25,420)      (25,420)      (25,420)

Dividends declared to common shares

  -   -   -   -   -   (356,712)  -   (356,712)  -   (356,712)

Distributions to noncontrolling interests

  -   -   -   -   -   -   -   -   (28,707)  (28,707)

Issuance of common stock, net of issuance costs

  -   -   4,958   50   76,879   -   -   76,929   -   76,929 

Issuance of common stock for Weingarten Realty Investors merger

  -   -   179,920   1,799   3,736,936   -   -   3,738,735   -   3,738,735 

Surrender of common stock for taxes

  -   -   (1,127)  (11)  (20,898)  -   -   (20,909)  -   (20,909)

Exercise of common stock options

  -   -   316   3   6,057   -   -   6,060   -   6,060 

Amortization of equity awards

  -   -   -   -   22,543   -   -   22,543   -   22,543 

Noncontrolling interests assumed from the Weingarten Realty Investors merger

  -   -   -   -   -   -   -   -   177,039   177,039 

Redemption/conversion of noncontrolling interests

  -   -   73   1   1,539   -   -   1,540   (4,635)  (3,095)

Adjustment of redeemable noncontrolling interests to estimated fair value

  -   -   -   -   2,304   -   -   2,304   -   2,304 

Balance at December 31, 2021

  20   20   616,659   6,167   9,591,871   299,115   2,216   9,899,389   210,793   10,110,182 
                               -         

Contributions from noncontrolling interest

  -   -   -   -   -   -   -   -   891   891 

Net income/(loss)

  -   -   -   -   -   125,976   -   125,976   (11,442)  114,534 

Other comprehensive income:

                              -       - 

Change in unrealized gains related to defined benefit plan

  -   -   -   -   -   -   8,365   8,365   -   8,365 

Redeemable noncontrolling interests income

  -   -   -   -   -   -   -   -   (1,770)  (1,770)

Dividends declared to preferred shares

                      (25,286)      (25,286)      (25,286)

Dividends declared to common shares

  -   -   -   -   -   (519,417)  -   (519,417)  -   (519,417)

Repurchase of preferred stock

  (1)  (1)  -   -   (3,505)  64   -   (3,442)  -   (3,442)

Distributions to noncontrolling interests

  -   -   -   -   -   -   -   -   (65,232)  (65,232)

Issuance of common stock, net of issuance costs

  -   -   2,162   22   11,259   -   -   11,281   -   11,281 

Surrender of restricted common stock

  -   -   (616)  (6)  (13,784)  -   -   (13,790)  -   (13,790)

Exercise of common stock options

  -   -   206   1   4,231   -   -   4,232   -   4,232 

Amortization of equity awards

  -   -   -   -   26,602   -   -   26,602   -   26,602 

Redemption/conversion of noncontrolling interests

  -   -   73   1   1,597   -   -   1,598   (1,839)  (241)

Balance at December 31, 2022

  19   19   618,484   6,185   9,618,271   (119,548)  10,581   9,515,508   131,401  

 

9,646,909 
                               -         

Contributions from noncontrolling interests

  -   -   -   -   -   -   -   -   13   13 

Net income

  -   -   -   -   -   654,273   -   654,273   11,676   665,949 

Other comprehensive income:

                              -       - 

Change in unrealized gains related to defined benefit plan

  -   -   -   -   -   -   (10,581)  (10,581)  -   (10,581)

Change in unrealized gains related to equity method investments

  -   -   -   -   -   -   3,329   3,329   -   3,329 

Redeemable noncontrolling interests income

  -   -   -   -   -   -   -   -   (5,820)  (5,820)

Dividends declared to preferred shares

  -   -   -   -   -   (25,021)  -   (25,021)  -   (25,021)

Dividends declared to common shares

  -   -   -   -   -   (632,280)  -   (632,280)  -   (632,280)

Repurchase of preferred stock

  -   -   -   -   (1,631)  -   -   (1,631)  -   (1,631)

Distributions to noncontrolling interests

  -   -   -   -   -   -   -   -   (5,614)  (5,614)

Issuance of common stock

  -   -   1,988   20   (20)  -   -   -   -   - 

Surrender of restricted common stock

  -   -   (774)  (8)  (16,319)  -   -   (16,327)  -   (16,327)

Exercise of common stock options

  -   -   173   2   3,725   -   -   3,727   -   3,727 

Amortization of equity awards

  -   -   -   -   33,088   -   -   33,088   -   33,088 

Redemption/conversion of noncontrolling interests

  -   -   -   -   (112)  -   -   (112)  (3,663)  (3,775)

Adjustment of redeemable noncontrolling interests to estimated fair value

  -   -   -   -   1,492   -   -   1,492   -   1,492 

Balance at December 31, 2023

  19  $19   619,871  $6,199  $9,638,494  $(122,576) $3,329  $9,525,465  $127,993  

$

9,653,458 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

KIMCO REALTY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

  

Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Cash flow from operating activities:

            

Net income

 $665,949  $114,534  $849,696 

Adjustments to reconcile net income to net cash provided by operating activities:

            

Depreciation and amortization

  507,265   505,000   395,320 

Impairment charges

  14,043   21,958   3,597 

Straight-line rental income adjustments, net

  (22,517)  (33,794)  (22,627)

Amortization of above-market and below-market leases, net

  (17,253)  (13,591)  (14,843)

Amortization of deferred financing costs and fair value debt adjustments, net

  (9,196)  (28,631)  (9,445)

Early extinguishment of debt charges

  -   7,658   - 

Equity award expense

  33,054   26,639   23,150 

Gain on sale of properties

  (74,976)  (15,179)  (30,841)

(Gain)/loss on marketable securities, net

  (21,262)  315,508   (505,163)

(Gain)/loss on change in fair value of embedded derivative liability

  (734)  -   - 

Equity in income of joint ventures, net

  (72,278)  (109,481)  (84,778)

Equity in income from other investments, net

  (10,709)  (17,403)  (23,172)

Distributions from joint ventures and other investments

  75,827   83,553   91,507 

Change in accounts and notes receivable, net

  18,453   (9,104)  4,548 

Change in accounts payable and accrued expenses

  5,826   37,655   (104,712)

Change in other operating assets and liabilities, net

  (19,885)  (24,208)  46,638 

Net cash flow provided by operating activities

  1,071,607   861,114   618,875 
             

Cash flow from investing activities:

            

Acquisition of operating real estate and other related net assets

  (277,308)  (300,772)  (355,953)

Improvements to operating real estate

  (264,395)  (193,710)  (163,699)

Acquisition of Weingarten Realty Investors, net of cash acquired of $56,451

  -   -   (263,973)

Investment in marketable securities

  (3,614)  (4,003)  - 

Proceeds from sale of marketable securities

  292,552   302,504   377 

Investment in cost method investments

  (1,569)  (4,524)  - 

Investments in and advances to real estate joint ventures

  (24,494)  (87,301)  (12,571)

Reimbursements of investments in and advances to real estate joint ventures

  13,738   37,571   47,862 

Investments in and advances to other investments

  (18,442)  (17,432)  (67,090)

Reimbursements of investments in and advances to other investments

  282   30,855   64,068 

Investment in mortgage and other financing receivables

  (18,519)  (75,063)  (41,897)

Collection of mortgage and other financing receivables

  133   60,306   13,776 

Proceeds from sale of properties

  160,064   184,294   302,841 

Principal payments from securities held-to-maturity

  4,589   4,058   - 

Net cash flow used for investing activities

  (136,983)  (63,217)  (476,259)
             

Cash flow from financing activities:

            

Principal payments on debt, excluding normal amortization of rental property debt

  (49,460)  (157,928)  (229,288)

Principal payments on rental property debt

  (11,308)  (9,808)  (10,622)

Proceeds from mortgage loan financings

  -   19,000   - 

Proceeds from issuance of unsecured notes

  500,000   1,250,000   500,000 

Repayments of unsecured notes

  -   (1,449,060)  - 

Financing origination costs

  (12,481)  (20,326)  (8,197)

Payment of early extinguishment of debt charges

  -   (6,955)  - 

Contributions from noncontrolling interests

  13   891   - 

Redemption/distribution of noncontrolling interests

  (58,417)  (67,453)  (34,610)

Dividends paid

  (657,460)  (544,740)  (382,132)

Proceeds from issuance of stock, net

  3,727   15,513   82,989 

Repurchase of preferred stock

  (1,491)  (3,441)  - 

Shares repurchased for employee tax withholding on equity awards

  (16,293)  (13,679)  (20,842)

Change in tenants' security deposits

  2,474   5,255   1,561 

Net cash flow used for financing activities

  (300,696)  (982,731)  (101,141)
             

Net change in cash, cash equivalents and restricted cash

  633,928   (184,834)  41,475 

Cash, cash equivalents and restricted cash, beginning of year

  149,829   334,663   293,188 

Cash, cash equivalents and restricted cash, end of year

 $783,757  $149,829  $334,663 
             

Interest paid during the year including payment of early extinguishment of debt charges of $0, $6,955 and $0, respectively (net of capitalized interest of $2,313, $668 and $583, respectively)

 $250,432  $257,979  $197,947 

Income taxes paid during the year, net of refunds

 $65,267  $11,869  $1,961 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

KIMCO REALTY OP, LLC AND SUBSIDIAIRIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)

 

  

December 31, 2023

  

December 31, 2022

 

Assets:

        

Real estate:

        

Land

 $4,177,797  $4,124,542 

Building and improvements

  14,759,997   14,332,700 

Real estate

  18,937,794   18,457,242 

Less: accumulated depreciation and amortization

  (3,842,869)  (3,417,414)

Total real estate, net

  15,094,925   15,039,828 
         

Investments in and advances to real estate joint ventures

  1,087,804   1,091,551 

Other investments

  144,089   107,581 

Cash and cash equivalents

  783,757   149,829 

Marketable securities

  330,057   597,732 

Accounts and notes receivable, net

  307,617   304,226 

Deferred charges and prepaid expenses

  155,567   147,863 

Operating lease right-of-use assets, net

  128,258   133,733 

Other assets

  241,948   253,779 

Total assets (1)

 $18,274,022  $17,826,122 
         

Liabilities:

        

Notes payable, net

 $7,262,851  $6,780,969 

Mortgages payable, net

  353,945   376,917 

Accounts payable and accrued expenses

  216,237   207,815 

Dividends payable

  5,308   5,326 

Operating lease liabilities

  109,985   113,679 

Other liabilities

  599,961   601,574 

Total liabilities (2)

  8,548,287   8,086,280 

Redeemable noncontrolling interests

  72,277   92,933 
         

Commitments and Contingencies (Footnote 21)

          
         

Members' capital:

        

Preferred units; Issued and outstanding 19,367 and 19,435 units, respectively

  467,396   469,027 

Common units; Issued and outstanding 619,871,237 and 618,483,565 units, respectively

  9,054,740   9,035,900 

Accumulated other comprehensive income

  3,329   10,581 

Total members' capital

  9,525,465   9,515,508 

Noncontrolling interests

  127,993   131,401 

Total capital

  9,653,458   9,646,909 

Total liabilities and capital

 $18,274,022  $17,826,122 

 

(1)

Includes restricted assets of consolidated variable interest entities (“VIEs”) at December 31, 2023 and 2022 of $388,626 and $436,605, respectively. See Footnote 16 of the Notes to Consolidated Financial Statements.

(2)

Includes non-recourse liabilities of consolidated VIEs at December 31, 2023 and 2022 of $180,855 and $199,132, respectively. See Footnote 16 of the Notes to Consolidated Financial Statements.

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

KIMCO REALTY OP, LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per unit data)

 

   

Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Revenues

            

Revenues from rental properties, net

 $1,767,057  $1,710,848  $1,349,702 

Management and other fee income

  16,343   16,836   14,883 
Total revenues  1,783,400   1,727,684   1,364,585 
             

Operating expenses

            

Rent

  (15,997)  (15,811)  (13,773)

Real estate taxes

  (231,578)  (224,729)  (181,256)

Operating and maintenance

  (309,143)  (290,367)  (222,882)

General and administrative

  (136,807)  (119,534)  (104,121)

Impairment charges

  (14,043)  (21,958)  (3,597)

Merger charges

  (4,766)  -   (50,191)

Depreciation and amortization

  (507,265)  (505,000)  (395,320)
Total operating expenses  (1,219,599)  (1,177,399)  (971,140)
             

Gain on sale of properties

  74,976   15,179   30,841 
             

Operating income

  638,777   565,464   424,286 
             

Other income/(expense)

            

Special dividend income

  194,116   -   - 

Other income, net

  39,960   28,829   19,810 

Gain/(loss) on marketable securities, net

  21,262   (315,508)  505,163 

Interest expense

  (250,201)  (226,823)  (204,133)

Early extinguishment of debt charges

  -   (7,658)  - 

Income before income taxes, net, equity in income of joint ventures, net, and equity in income from other investments, net

  643,914   44,304   745,126 
              

Provision for income taxes, net

  (60,952)  (56,654)  (3,380)

Equity in income of joint ventures, net

  72,278   109,481   84,778 

Equity in income of other investments, net

  10,709   17,403   23,172 
              

Net income

  665,949   114,534   849,696 
              

Net (income)/loss attributable to noncontrolling interests

  (11,676)  11,442   (5,637)
              

Net income attributable to the Company

  654,273   125,976   844,059 
              

Preferred distributions, net

  (25,021)  (25,218)  (25,416)
              

Net income available to the Company's common unitholders

 $629,252  $100,758  $818,643 
              

Per common unit:

            

Net income available to the Company's common unitholders:

            

-Basic

 $1.02  $0.16  $1.61 

-Diluted

 $1.02  $0.16  $1.60 
              

Weighted average units:

            

-Basic

  616,947   615,528   506,248 

-Diluted

  618,199   617,858   511,385 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

KIMCO REALTY OP, LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

 

  

Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Net income

 $665,949  $114,534  $849,696 

Other comprehensive income:

            

Change in unrealized gains related to defined benefit plan

  (10,581)  8,365   2,216 

Change in unrealized gains related to equity method investments

  3,329   -   - 

Other comprehensive income

  (7,252)  8,365   2,216 
             

Comprehensive income

  658,697   122,899   851,912 
             

Comprehensive (income)/loss attributable to noncontrolling interests

  (11,676)  11,442   (5,637)
             

Comprehensive income attributable to the Company

 $647,021  $134,341  $846,275 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

KIMCO REALTY OP, LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL

For the Years Ended December 31, 2023, 2022 and 2021

(in thousands)

 

  

Preferred Units

  

Common Units

  

Accumulated

  

Total

  

Noncontrolling

  

 

 
  

Issued

  

Amount

  

Issued

  

Amount

  Other   Members' Capital  Interests  Total Capital 

Balance at January 1, 2021

  20  $472,533   432,519  $5,135,511  $-  $5,608,044  $62,210  $5,670,254 

Net income

  -   25,420   -   818,639   -   844,059   5,637   849,696 

Other comprehensive income:

                                

Change in unrealized gains related to defined benefit plan

  -   -   -   -   2,216   2,216   -   2,216 

Redeemable noncontrolling interests income

  -   -   -   -   -   -   (751)  (751)

Distributions declared to preferred unitholders

  -   (25,420)  -   -   -   (25,420)  -   (25,420)

Distributions declared to common unitholders

  -   -   -   (356,712)  -   (356,712)     (356,712)

Distributions to noncontrolling interests

  -   -   -   -   -   -   (28,707)  (28,707)

Issuance of common units as a result of common stock issued by Parent Company

  -   -   5,274   82,989   -   82,989   -   82,989 

Issuance of common units for Weingarten Realty Investors merger

  -   -   179,920   3,738,735   -   3,738,735   -   3,738,735 

Surrender of common units for taxes

  -   -   (1,127)  (20,909)  -   (20,909)  -   (20,909)

Amortization of equity awards

  -   -   -   22,543   -   22,543   -   22,543 

Noncontrolling interests assumed from the Weingarten Realty Investors merger

  -   -   -   -   -   -   177,039   177,039 

Redemption/conversion of noncontrolling interests

  -   -   73   1,540   -   1,540   (4,635)  (3,095)

Adjustment of redeemable noncontrolling interests to estimated fair value

  -   -   -   2,304   -   2,304   -   2,304 

Balance at January 1, 2022

  20   472,533   616,659   9,424,640   2,216   9,899,389   210,793   10,110,182 
                                 

Contributions from noncontrolling interest

  -   -   -   -   -   -   891   891 

Net income/(loss)

  -   25,218   -   100,758   -   125,976   (11,442)  114,534 

Other comprehensive income:

                                

Change in unrealized gains related to defined benefit plan

  -   -   -   -   8,365   8,365   -   8,365 

Redeemable noncontrolling interests income

  -   -   -   -   -   -   (1,770)  (1,770)

Distributions declared to preferred unitholders

  -   (25,218)  -   -   -   (25,218)  -   (25,218)

Distributions declared to common unitholders

  -   -   -   (519,421)  -   (519,421)  -   (519,421)

Repurchase of preferred units

  (1)  (3,506)  -   -   -   (3,506)  -   (3,506)

Distributions to noncontrolling interests

  -   -   -   -   -   -   (65,232)  (65,232)

Issuance of common units as a result of common stock issued by Parent Company

  -   -   2,368   15,513   -   15,513   -   15,513 

Surrender of common units

  -   -   (616)  (13,790)  -   (13,790)  -   (13,790)

Amortization of equity awards

  -   -   -   26,602   -   26,602   -   26,602 

Redemption/conversion of noncontrolling interests

  -   -   73   1,598   -   1,598   (1,839)  (241)

Balance at December 31, 2022

  19   469,027   618,484   9,035,900   10,581   9,515,508   131,401   9,646,909 
                                 

Contributions from noncontrolling interest

  -   -   -   -   -   -   13   13 

Net income

  -   25,021   -   629,252   -   654,273   11,676   665,949 

Other comprehensive income:

                                

Change in unrealized gains related to defined benefit plan

  -   -   -   -   (10,581)  (10,581)  -   (10,581)

Change in unrealized gains related to equity method investments

  -   -   -   -   3,329   3,329   -   3,329 

Redeemable noncontrolling interests income

  -   -   -   -   -   -   (5,820)  (5,820)

Distributions declared to preferred unitholders

  -   (25,021)  -   -   -   (25,021)  -   (25,021)

Distributions declared to common unitholders

  -   -   -   (632,280)  -   (632,280)  -   (632,280)

Repurchase of preferred units

  -   (1,631)  -   -   -   (1,631)  -   (1,631)

Distributions to noncontrolling interests

  -   -   -   -   -   -   (5,614)  (5,614)

Issuance of common units as a result of common stock issued by Parent Company

  -   -   2,161   3,727   -   3,727   -   3,727 

Surrender of common units

  -   -   (774)  (16,327)  -   (16,327)  -   (16,327)

Amortization of equity awards

  -   -   -   33,088   -   33,088   -   33,088 

Redemption/conversion of noncontrolling interests

  -   -   -   (112)  -   (112)  (3,663)  (3,775)

Adjustment of redeemable noncontrolling interests to estimated fair value

  -   -   -   1,492   -   1,492   -   1,492 

Balance at December 31, 2023

  19  $467,396   619,871  $9,054,740  $3,329  $9,525,465  $127,993  $9,653,458 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

KIMCO REALTY OP, LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

  

Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Cash flow from operating activities:

            

Net income

 $665,949  $114,534  $849,696 

Adjustments to reconcile net income to net cash provided by operating activities:

            

Depreciation and amortization

  507,265   505,000   395,320 

Impairment charges

  14,043   21,958   3,597 

Straight-line rental income adjustments, net

  (22,517)  (33,794)  (22,627)

Amortization of above-market and below-market leases, net

  (17,253)  (13,591)  (14,843)

Amortization of deferred financing costs and fair value debt adjustments, net

  (9,196)  (28,631)  (9,445)

Early extinguishment of debt charges

  -   7,658   - 

Equity award expense

  33,054   26,639   23,150 

Gain on sale of properties

  (74,976)  (15,179)  (30,841)

(Gain)/loss on marketable securities, net

  (21,262)  315,508   (505,163)

(Gain)/loss on change in fair value of embedded derivative liability

  (734)  -   - 

Equity in income of joint ventures, net

  (72,278)  (109,481)  (84,778)

Equity in income from other investments, net

  (10,709)  (17,403)  (23,172)

Distributions from joint ventures and other investments

  75,827   83,553   91,507 

Change in accounts and notes receivable, net

  18,453   (9,104)  4,548 

Change in accounts payable and accrued expenses

  5,826   37,655   (104,712)

Change in other operating assets and liabilities, net

  (19,885)  (24,208)  46,638 

Net cash flow provided by operating activities

  1,071,607   861,114   618,875 
             

Cash flow from investing activities:

            

Acquisition of operating real estate and other related net assets

  (277,308)  (300,772)  (355,953)

Improvements to operating real estate

  (264,395)  (193,710)  (163,699)

Acquisition of Weingarten Realty Investors, net of cash acquired of $56,451

  -   -   (263,973)

Investment in marketable securities

  (3,614)  (4,003)  - 

Proceeds from sale of marketable securities

  292,552   302,504   377 

Investment in cost method investments

  (1,569)  (4,524)  - 

Investments in and advances to real estate joint ventures

  (24,494)  (87,301)  (12,571)

Reimbursements of investments in and advances to real estate joint ventures

  13,738   37,571   47,862 

Investments in and advances to other investments

  (18,442)  (17,432)  (67,090)

Reimbursements of investments in and advances to other investments

  282   30,855   64,068 

Investment in mortgage and other financing receivables

  (18,519)  (75,063)  (41,897)

Collection of mortgage and other financing receivables

  133   60,306   13,776 

Proceeds from sale of properties

  160,064   184,294   302,841 

Principal payments from securities held-to-maturity

  4,589   4,058   - 

Net cash flow used for investing activities

  (136,983)  (63,217)  (476,259)
             

Cash flow from financing activities:

            

Principal payments on debt, excluding normal amortization of rental property debt

  (49,460)  (157,928)  (229,288)

Principal payments on rental property debt

  (11,308)  (9,808)  (10,622)

Proceeds from mortgage loan financings

  -   19,000   - 

Proceeds from issuance of unsecured notes

  500,000   1,250,000   500,000 

Repayments of unsecured notes

  -   (1,449,060)  - 

Financing origination costs

  (12,481)  (20,326)  (8,197)

Payment of early extinguishment of debt charges

  -   (6,955)  - 

Contributions from noncontrolling interests

  13   891   - 

Redemption/distribution of noncontrolling interests

  (58,417)  (67,453)  (34,610)

Distributions paid to common and preferred unitholders

  (657,460)  (544,740)  (382,132)

Proceeds from issuance of units as a result of shares issued by Parent Company, net

  3,727   15,513   82,989 

Repurchase of preferred units

  (1,491)  (3,441)  - 

Units repurchased due to employee tax withholding on equity awards by the Parent Company

  (16,293)  (13,679)  (20,842)

Change in tenants' security deposits

  2,474   5,255   1,561 

Net cash flow used for financing activities

  (300,696)  (982,731)  (101,141)
             

Net change in cash, cash equivalents and restricted cash

  633,928   (184,834)  41,475 

Cash, cash equivalents and restricted cash, beginning of year

  149,829   334,663   293,188 

Cash, cash equivalents and restricted cash, end of year

 $783,757  $149,829  $334,663 
             

Interest paid during the year including payment of early extinguishment of debt charges of $0, $6,955 and $0, respectively (net of capitalized interest of $2,313, $668 and $583, respectively)

 $250,432  $257,979  $197,947 

Income taxes paid during the year, net of refunds

 $65,267  $11,869  $1,961 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
 
 

Amounts relating to the number of buildings, square footage, tenant and occupancy data, joint venture debt and average interest rates and terms on joint venture debt are unaudited.

 

1.   Summary of Significant Accounting Policies:

 

Business and Organization

 

Kimco Realty Corporation and its subsidiaries (the “Parent Company”) operates as a Real Estate Investment Trust (“REIT”), of which substantially all of the Parent Company’s assets are held by, and substantially all of the Parent Company’s operations are conducted through, Kimco Realty OP, LLC (“Kimco OP”), either directly or through its subsidiaries, as the Parent Company’s operating company. The Parent Company is the managing member and exercises exclusive control over Kimco OP. As of December 31, 2023, the Parent Company owned 100% of the outstanding limited liability company interests (the "OP Units") in Kimco OP. The terms “Kimco”, “the Company” and “our”, each refer to the Parent Company and Kimco OP, collectively, unless the context indicates otherwise. In statements regarding qualification as a REIT, such terms refer solely to Kimco Realty Corporation.

 

The Company is North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers and a growing portfolio of mixed-use assets. The Company’s portfolio is primarily concentrated in the first-ring suburbs of the top major metropolitan markets, including those in high-barrier-to-entry coastal markets and rapidly expanding Sun Belt cities, with a tenant mix focused on essential, necessity-based goods and services that drive multiple shopping trips per week. The Company, its affiliates and related real estate joint ventures are engaged principally in the ownership, management, development and operation of open-air shopping centers, including mixed-use assets which, are anchored primarily by grocery stores, off-price retailers, discounters or service-oriented tenants. Additionally, the Company provides complementary services that capitalize on the Company’s established retail real estate expertise. The Company’s mission is to create destinations for everyday living that inspire a sense of community and deliver value to our many stakeholders. The Company evaluates performance on a property specific or transactional basis and does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring performance. Accordingly, the Company believes it has a single reportable segment for disclosure purposes in accordance with accounting principles generally accepted in the United States of America ("GAAP").

 

The Company elected status as a REIT for federal income tax purposes commencing with its taxable year which began January 1, 1992 and operates in a manner that enables the Company to maintain its status as a REIT. To qualify as a REIT, the Company must meet several organizational and operational requirements, and is required to annually distribute at least 90% of its net taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain. In addition, the Company will be subject to federal income tax at regular corporate rates to the extent that it distributes less than 100% of its net taxable income, including any net capital gains. In January 2023, the Company consummated the Reorganization into an UPREIT structure as described in the Explanatory Note at the beginning of this Annual Report on Form 10-K. If, as the Company believes, it is organized and operates in such a manner so as to qualify and remain qualified as a REIT under the Code, the Company, generally will not be subject to U.S. federal income tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income, as defined in the Code. The Company maintains certain subsidiaries that have made joint elections with the Company to be treated as taxable REIT subsidiaries (“TRSs”), that permit the Company to engage through such TRSs in certain business activities that the REIT may not conduct directly. A TRS is subject to federal and state income taxes on its income, and the Company includes, when applicable, a provision for taxes in its consolidated financial statements. See Footnote 24 of the Notes to Consolidated Financial Statements for further discussion.

 

RPT Merger

 

On August 28, 2023, the Company and RPT Realty (“RPT”) announced that they had entered into a definitive merger agreement (the “Merger Agreement”) pursuant to which the Company would acquire RPT through a series of mergers (collectively, the “RPT Merger”). On January 2, 2024, RPT merged with and into the Company, with the Company continuing as the surviving public company. The RPT Merger added 56 open-air shopping centers, 43 of which are wholly owned and 13 of which are owned through a joint venture, comprising 13.3 million square feet of gross leasable area (“GLA”), to the Company’s existing portfolio of 523 properties. In addition, as a result of the RPT Merger, the Company obtained RPT’s 6% stake in a 49-property net lease joint venture.

 

Under the terms of the Merger Agreement, each RPT common share was converted into 0.6049 of a newly issued share of the Company’s common stock, together with cash in lieu of fractional shares, and each 7.25% Series D Cumulative Convertible Perpetual Preferred Share of RPT was converted into the right to receive one depositary share representing one one-thousandth of a share of the Company's 7.25% Class N Cumulative Convertible Perpetual Preferred Stock, par value $1.00 per share ("Class N Preferred Stock"). During 2023, the Company incurred expenses of $4.8 million associated with the RPT Merger primarily comprised of legal and professional fees. See Footnote 28 of the Notes to Consolidated Financial Statements for further details on the RPT Merger.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

Economic Conditions

 

The economy continues to face several issues including inflation risk, liquidity constraints, the lack of qualified employees, tenant bankruptcies and supply chain disruptions, which could impact the Company and its tenants. In response to the rising rate of inflation the Federal Reserve steadily increased interest rates and has kept them at elevated levels. The Federal Reserve may continue to increase interest rates or maintain these elevated levels, until the rate of inflation begins to decrease. These increased interest rates could adversely impact the business and financial results of the Company and its tenants. In addition, slower economic growth and the potential for a recession could have an adverse effect on the Company and its tenants. This could negatively affect the overall demand for retail space, including the demand for leasable space in the Company’s properties.

 

Any of these events could materially adversely impact the Company’s business, financial condition, results of operations or stock price. The Company continues to monitor economic, financial, and social conditions and will assess its asset portfolio for any impairment indicators. If the Company determines that any of its assets are impaired, the Company would be required to take impairment charges, and such amounts could be material.

 

Basis of Presentation

 

This report combines the annual reports on Form 10-K for the annual period ended December 31, 2023, of the Parent Company and Kimco OP into this single report. The accompanying Consolidated Financial Statements include the accounts of the Parent Company and Kimco OP and their consolidated subsidiaries. The Reorganization resulted in a merger of entities under common control in accordance with GAAP. Accordingly, the accompanying consolidated financial statements including the notes thereto, are presented as if the Reorganization had occurred at the earliest period presented. The Company’s subsidiaries include subsidiaries which are wholly owned or which the Company has a controlling interest, including where the Company has been determined to be a primary beneficiary of a variable interest entity (“VIE”) in accordance with the consolidation guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). All inter-company balances and transactions have been eliminated in consolidation.

 

Use of Estimates

 

GAAP requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate and related intangible assets and liabilities, equity method investments, other investments, including the assessment of impairments, as well as, depreciable lives, revenue recognition, and the collectability of trade accounts receivable. Application of these assumptions requires the exercise of judgment as to future uncertainties, and, as a result, actual results could differ from these estimates.

 

Subsequent Events

 

The Company has evaluated subsequent events and transactions for potential recognition or disclosure in its consolidated financial statements (see Footnotes 18 and 28 of the Notes to Consolidated Financial Statements).

 

Real Estate

 

Real estate assets are stated at cost, less accumulated depreciation and amortization. The Company periodically assesses the useful lives of its depreciable real estate assets, including those expected to be redeveloped in future periods, and accounts for any revisions prospectively. Expenditures for maintenance, repairs and demolition costs are charged to operations as incurred. Significant renovations and replacements, which improve or extend the life of the asset, are capitalized.

 

The Company evaluates each acquisition transaction to determine whether the acquired asset meets the definition of a business and therefore accounted for as a business combination or if the acquisition transaction should be accounted for as an asset acquisition. Under Business Combinations (Topic 805), an acquisition does not qualify as a business when (i) substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets or (ii) the acquisition does not include a substantive process in the form of an acquired workforce or (iii) an acquired contract that cannot be replaced without significant cost, effort or delay. In accordance with ASC 805-10, Business Combinations, the Company accounted for the Weingarten Realty Investors Merger as business combinations using the acquisition method of accounting.  The Company also expects to account for the RPT Merger as business combinations using the acquisition method of accounting, however the Company’s evaluation is not yet complete as of this filing.  See Footnote 28 of the Notes to Consolidated Financial Statements for further details on the RPT Merger.

 

Transaction costs related to acquisitions that qualify as asset acquisitions are capitalized as part of the cost basis of the acquired assets, while transaction costs for acquisitions that are deemed to be acquisitions of a business are expensed as incurred.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

When substantially all of the fair value is not concentrated in a group of similar identifiable assets, the set of assets will generally be considered a business and the Company applies the acquisition method of accounting for business combinations, where all tangible and identifiable intangible assets acquired, and all liabilities assumed are recorded at fair value. In a business combination, the difference, if any, between the purchase price and the fair value of identifiable net assets acquired is either recorded as goodwill or as a bargain purchase gain. 

 

In both a business combination and an asset acquisition, the Company allocates the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities based on their respective fair values. The fair value of any tangible real estate assets acquired is determined by valuing the building as if it were vacant, and the fair value is then allocated to land, buildings, and improvements based on available information including replacement cost, appraisal or using net operating income capitalization rates, discounted cash flow analysis or similar fair value models. Fair value estimates are also made using significant assumptions such as capitalization rates, discount rates, fair market lease rates, land values per square foot and other market data. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends, and market and economic conditions. Tangible assets may include land, land improvements, buildings, building improvements and tenant improvements. Intangible assets may include the value of in-place leases, above and below-market leases and other identifiable assets or liabilities based on lease or property specific characteristics. 

 

In allocating the purchase price to identified intangible assets and liabilities of acquired properties, the value of above-market and below-market leases is estimated based on the present value of the difference between the contractual amounts, including fixed rate below-market lease renewal options, to be paid pursuant to the leases and management’s estimate of the market lease rates and other lease provisions (e.g., expense recapture, base rental changes) measured over a period equal to the estimated remaining term of the lease. The capitalized above-market or below-market intangible is amortized to rental income over the estimated remaining term of the respective leases, which includes the expected renewal option period for below-market leases. Mortgage debt discounts or premiums are amortized into interest expense over the remaining term of the related debt instrument.

 

In determining the value of in-place leases, management considers current market conditions and costs to execute similar leases in arriving at an estimate of the carrying costs during the expected lease-up period from vacant to existing occupancy. In estimating carrying costs, management includes real estate taxes, insurance, other operating expenses, estimates of lost rental revenue during the expected lease-up periods and costs to execute similar leases including leasing commissions, legal and other related costs based on current market demand. The value assigned to in-place leases and tenant relationships is amortized over the estimated remaining term of the leases. If a lease were to be terminated prior to its scheduled expiration, all unamortized costs relating to that lease would be written off.

 

The useful lives of amortizable intangible assets are evaluated each reporting period with any changes in estimated useful lives being accounted for over the revised remaining useful life.

 

Depreciation and amortization are provided on the straight-line method over the estimated useful lives of the assets, as follows:

 

Buildings and building improvements (in years)

5 to 50

Fixtures, leasehold and tenant improvements

     (including certain identified intangible assets)

Terms of leases or useful

 lives, whichever is shorter

 

The difference between the fair value and the face value of debt assumed, if any, in connection with an acquisition is recorded as a premium or discount and is amortized on a straight-line basis, which approximates the effective interest method, over the terms of the related debt agreements. The fair value of debt is estimated based upon contractual future cash flows discounted using borrowing spreads and market interest rates that would have been available for debt with similar terms and maturities.

 

Real estate under development represents the development of open-air shopping center projects, which may include residential and mixed-use components, that the Company plans to hold as long-term investments. These properties are carried at cost. The cost of land and buildings under development includes specifically identifiable costs. Capitalized costs include pre-construction costs essential to the development of the property, construction costs, interest costs, real estate taxes, insurance, legal costs, salaries and related costs of personnel directly involved and other costs incurred during the period of development. The Company ceases cost capitalization when the property is held available for occupancy and placed into service. This usually occurs upon substantial completion of all development activity necessary to bring the property to the condition needed for its intended use, but no later than one year from the completion of major construction activity. However, the Company may continue to capitalize costs even though a project is substantially completed if construction is still ongoing at the site. If, in management’s opinion, the current and projected undiscounted cash flows of these assets to be held as long-term investments is less than the net carrying value plus estimated costs to complete the development, the carrying value would be adjusted to an amount that reflects the estimated fair value of the property.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

The Company's policy is to classify real estate assets as held-for-sale if the (i) asset is under contract, (ii) the buyer’s deposit is non-refundable, (iii) due diligence has expired and (iv) management believes it is probable that the disposition will occur within one year. When a real estate asset is identified by management as held-for-sale, the Company ceases depreciation of the asset and estimates the fair value. If the fair value of the asset, less cost to sell, is less than the net book value of the asset, an adjustment to the carrying value would be recorded to reflect the estimated fair value of the property, and the asset is included within Other assets on the Company’s Consolidated Balance Sheets.

 

On a continuous basis, management assesses whether there are any indicators, including property operating performance, changes in anticipated holding period and general market conditions, that the value of the real estate properties (including any related amortizable intangible assets or liabilities) may be impaired. A property value is considered impaired only if management’s estimated fair value is less than the net carrying value of the property. The Company’s estimated fair value is primarily based upon (i) estimated sales prices from signed contracts or letters of intent from third-party offers or (ii) discounted cash flow models of the property over its remaining hold period. An impairment is recognized on properties held for use when the expected undiscounted cash flows for a property are less than its carrying amount, at which time, the property is written-down to its estimated fair value. Estimated fair values which are based on discounted cash flow models include all estimated cash inflows and outflows over a specified holding period. Capitalization rates and discount rates utilized in these models are based upon unobservable rates that the Company believes to be within a reasonable range of current market rates. In addition, such cash flow models consider factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors. To the extent impairment has occurred, the carrying value of the property would be adjusted to an amount to reflect the estimated fair value of the property. The Company does not have access to the unobservable inputs used to determine the estimated fair values of third-party offers.

 

Investments in Unconsolidated Joint Ventures

 

The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting as the Company exercises significant influence, but does not control, these entities. These investments are recorded initially at cost and are subsequently adjusted for cash contributions and distributions. Earnings for each investment are recognized in accordance with each respective investment agreement and where applicable, are based upon an allocation of the investment’s net assets at book value as if the investment was hypothetically liquidated at the end of each reporting period.

 

The Company’s joint ventures primarily consist of co-investments with institutional and other joint venture partners in open-air shopping center or mixed-use properties, consistent with its core business. These joint ventures typically obtain non-recourse third-party financing on their property investments, thus contractually limiting the Company’s exposure to losses primarily to the amount of its equity investment; and due to the lender’s exposure to losses, a lender typically will require a minimum level of equity in order to mitigate its risk. On a select basis, certain of these joint ventures, have obtained unsecured financing. As of December 31, 2023, the Company did not guaranty any unsecured joint venture debt.

 

To recognize the character of distributions from equity investees within its Consolidated Statements of Cash Flows, all distributions received are presumed to be returns on investment and classified as cash inflows from operating activities unless the Company’s cumulative distributions received less distributions received in prior periods that were determined to be returns of investment exceed its cumulative equity in earnings recognized by the investor (as adjusted for amortization of basis differences). When such an excess occurs, the current-period distribution up to this excess is considered a return of investment and classified as cash inflows from investing.

 

In a business combination, the fair value of the Company’s investment in an unconsolidated joint venture is calculated using the fair value of the real estate held by the joint venture, which are valued using similar methods as described in the Company’s Real Estate policy above, offset by the fair value of the debt on the property which is then multiplied by the Company’s equity ownership percentage.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

On a continuous basis, management assesses whether there are any indicators, including the underlying investment property operating performance and general market conditions, that the value of the Company’s investments in unconsolidated joint ventures may be impaired. An investment’s value is impaired only if management’s estimate of the fair value of the investment is less than the carrying value of the investment and such difference is deemed to be other-than-temporary. To the extent impairment has occurred, the loss will be measured as the excess of the carrying amount of the investment over the estimated fair value of the investment. Estimated fair values which are based on discounted cash flow models include all estimated cash inflows and outflows over a specified holding period, and, where applicable, any estimated debt premiums. Capitalization rates and discount rates utilized in these models are based upon unobservable rates that the Company believes to be within a reasonable range of current market rates.

 

Other Investments

 

Other investments primarily consist of preferred equity investments for which the Company provides capital to owners and developers of real estate. The Company typically accounts for its preferred equity investments on the equity method of accounting, whereby earnings for each investment are recognized in accordance with each respective investment agreement and based upon an allocation of the investment’s net assets at book value as if the investment was hypothetically liquidated at the end of each reporting period.

 

On a continuous basis, management assesses whether there are any indicators, including the underlying investment property operating performance and general market conditions, that the value of the Company’s Other investments may be impaired. An investment’s value is impaired only if management’s estimate of the fair value of the investment is less than the carrying value of the investment and such difference is deemed to be other-than-temporary. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the investment over the estimated fair value of the investment.

 

The Company’s estimated fair values are based upon a discounted cash flow model for each investment that includes all estimated cash inflows and outflows over a specified holding period and, where applicable, any estimated debt premiums. Capitalization rates, discount rates and credit spreads utilized in these models are based upon rates that the Company believes to be within a reasonable range of current market rates.

 

Cash, Cash Equivalents and Restricted Cash

 

Cash and cash equivalents include demand deposits in banks, commercial paper and certificates of deposit with original maturities of three months or less. Cash and cash equivalent balances may, at a limited number of banks and financial institutions, exceed insurable amounts. The Company believes it mitigates risk by investing in or through major financial institutions and primarily in funds that are currently U.S. federal government insured up to applicable account limits. Recoverability of investments is dependent upon the performance of the issuers.

 

Restricted cash is deposits held or restricted for a specific use. The Company had restricted cash totaling $3.2 million and $2.9 million at December 31, 2023 and 2022, respectively, which is included in Cash and cash equivalents on the Company’s Consolidated Balance Sheets.

 

Marketable Securities

 

The Company classifies its marketable equity securities as available-for-sale in accordance with the FASB’s Investments-Debt and Equity Securities guidance. In accordance with ASC Topic 825 Financial Instruments: the Company recognizes changes in the fair value of equity investments with readily determinable fair values in net income.

 

Other Assets

 

Mortgage and Other Financing Receivables

 

Mortgages and other financing receivables consist of loans acquired and loans originated by the Company, which are included within Other assets on the Company’s Consolidated Balance Sheets. Borrowers of these loans are primarily experienced owners, operators or developers of commercial real estate. The Company’s loans are primarily mortgage loans that are collateralized by real estate. Mortgages and other financing receivables are recorded at stated principal amounts, net of any discount or premium or deferred loan origination costs or fees. The related discounts or premiums on mortgages and other loans purchased are amortized or accreted over the life of the related loan receivable. 

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

The Company applies Accounting Standards Update (“ASU”) 2016-13 Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. The Company adopted this standard using the modified retrospective method for all financial assets measured at amortized cost.

 

On a quarterly basis, the Company reviews credit quality indicators such as (i) payment status to identify performing versus non-performing loans, (ii) changes affecting the underlying real estate collateral and (iii) national and regional economic factors. The Company has determined that it has one portfolio segment, primarily represented by loans collateralized by real estate, whereby it determines, as needed, reserves for loan losses on an asset-specific basis. The Company utilizes its history of incurred losses as well as external data to perform its expected credit loss calculation using the probability of default (“PD”) and loss given default method (“LGD”). This approach calculates the expected credit loss by multiplying the PD (probability the asset will default within a given timeframe) by the LGD (percentage of the asset not expected to be collected due to default). The reserve for loan losses reflects management's estimate of loan losses as of the balance sheet date and any adjustments are included in Other income, net on the Company’s Consolidated Statements of Income. The reserve is increased through loan loss expense and is decreased by charge-offs when losses are confirmed through the receipt of assets such as cash or via ownership control of the underlying collateral in full satisfaction of the loan upon foreclosure or when significant collection efforts have ceased.

 

Interest income on performing loans is accrued as earned. Accrued interest receivable is included in Accounts and notes receivable, net on the Company’s Consolidated Balance Sheets. A non-performing loan is placed on non-accrual status when it is probable that the borrower may be unable to meet interest payments as they become due. Generally, loans 90 days or more past due are placed on non-accrual status unless there is sufficient collateral to assure collectability of principal and interest. Upon the designation of non-accrual status, all unpaid accrued interest is reserved and charged against current income. Interest income on non-performing loans is generally recognized on a cash basis. Recognition of interest income on non-performing loans on an accrual basis is resumed when it is probable that the Company will be able to collect amounts due according to the contractual terms.

 

Tax Increment Revenue Bonds

 

Other assets include Series B tax increment revenue bonds issued by the Sheridan Redevelopment Agency in connection with the development of a project in Sheridan, Colorado, which mature on December 15, 2039. These Series B bonds have been classified as held to maturity and were recorded at estimated fair value. The fair value estimates of the Company’s held to maturity tax increment revenue bonds are based on discounted cash flow analysis, which are based on the expected future sales tax revenues of the project. This analysis reflects the contractual terms of the bonds, including the period to maturity, and uses observable market-based inputs, such as market discount rates and unobservable market-based inputs, such as future growth and inflation rates. Interest on these bonds is recorded at an effective interest rate while cash payments are received at the contractual interest rate.

 

The held to maturity bonds are evaluated for credit losses based on discounted estimated future cash flows. Any future receipts in excess of the amortized basis will be recognized as revenue when received. The credit risk associated with the amortized value of these bonds is deemed as low risk as the bonds are earmarked for repayments from a government entity which are funded through sales and property taxes.

 

Deferred Leasing Costs

 

Initial direct leasing costs include commissions paid to third parties, including brokers, leasing and referral agents and internal leasing commissions paid to employees for successful execution of lease agreements. These initial direct leasing costs are capitalized and generally amortized over the term of the related leases using the straight-line method. These direct leasing costs are included in Other assets, on the Company’s Consolidated Balance Sheets and are classified as operating activities on the Company’s Consolidated Statements of Cash Flows.

 

Internal employee compensation, payroll-related benefits and certain external legal fees are considered indirect costs associated with the execution of lease agreements. These indirect leasing costs are expensed in accordance with ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”) and included in General and administrative expense on the Company’s Consolidated Statements of Income.

 

Software Development Costs

 

Expenditures for major software purchases and software developed for internal use are capitalized and amortized on a straight-line basis generally over a period of three to ten years. The Company’s policy provides for the capitalization of external direct costs of materials and services associated with developing or obtaining internal use computer software. In addition, the Company also capitalizes certain payroll and payroll-related costs for employees who are directly associated with internal use computer software projects. The amount of payroll costs that can be capitalized with respect to these employees is limited to the time directly spent on such projects. Costs associated with preliminary project stage activities, training, maintenance and all other post-implementation stage activities are expensed as incurred. These software development costs are included in Other assets on the Company’s Consolidated Balance Sheets.

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

Deferred Financing Costs

 

Costs incurred in obtaining long-term financing, included in Notes payable, net and Mortgages payable, net in the accompanying Consolidated Balance Sheets, are amortized on a straight-line basis, which approximates the effective interest method, over the terms of the related debt agreements, as applicable.

 

Revenue, Trade Accounts Receivable and Gain Recognition

 

The Company determines the proper amount of revenue to be recognized in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (“Topic 606”), by performing the following steps: (i) identify the contract with the customer, (ii) identify the performance obligations within the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue when (or as) a performance obligation is satisfied. As of December 31, 2023 and 2022, the Company had no outstanding contract assets or contract liabilities.

 

The Company’s primary sources of revenues are derived from lease agreements which fall under the scope of ASU 2016-02, Leases (Topic 842), (“Topic 842”), which includes rental income and expense reimbursement income. The Company also has revenues which are accounted for under Topic 606, which include fees for services performed at various unconsolidated joint ventures for which the Company is the manager. These fees primarily include property and asset management fees, leasing fees, development fees and property acquisition/disposition fees. Also affected by Topic 606 are gains on sales of properties and tax increment financing (“TIF”) contracts. The Company presents its revenue streams on the Company’s Consolidated Statements of Income as Revenues from rental properties, net and Management and other fee income.

 

Revenues from rental properties, net

 

Revenues from rental properties, net are comprised of minimum base rent, percentage rent, lease termination fee income, amortization of above-market and below-market rent adjustments and straight-line rent adjustments. The Company accounts for lease and non-lease components as combined components under Topic 842. Non-lease components include reimbursements paid to the Company from tenants for common area maintenance costs and other operating expenses. The combined components are included in Revenues from rental properties, net on the Company’s Consolidated Statements of Income.

 

Base rental revenues from rental properties are recognized on a straight-line basis over the terms of the related leases. Certain of these leases also provide for percentage rents based upon the level of sales achieved by the lessee. These percentage rents are recognized once the required sales level is achieved. Rental income may also include payments received in connection with lease termination agreements. Lease termination fee income is recognized when the lessee provides consideration in order to terminate an existing lease agreement and has vacated the leased space. If the lessee continues to occupy the leased space for a period of time after the lease termination is agreed upon, the termination fee is accounted for as a lease modification based on the modified lease term. Upon acquisition of real estate operating properties, the Company estimates the fair value of identified intangible assets and liabilities (including above-market and below-market leases, where applicable). The capitalized above-market or below-market intangible asset or liability is amortized to rental income over the estimated remaining term of the respective leases, which includes the expected renewal option period for below-market leases.

 

Also included in Revenues from rental properties, net are ancillary income and TIF income. Ancillary income is derived through various agreements relating to parking lots, clothing bins, temporary storage, vending machines, ATMs, trash bins and trash collections, seasonal leases, etc. The majority of the revenue derived from these sources is through lease agreements/arrangements and is recognized in accordance with the lease terms described in the lease. The Company has TIF agreements with certain municipalities and receives payments in accordance with the agreements. TIF reimbursement income is recognized on a cash basis when received.

 

Management and other fee income

 

Property management fees, property acquisition and disposition fees, construction management fees, leasing fees and asset management fees all fall within the scope of Topic 606. These fees arise from contractual agreements with third parties or with entities in which the Company has a noncontrolling interest. Management and other fee income related to partially owned entities are recognized to the extent attributable to the unaffiliated interest. Property and asset management fee income is recognized as a single performance obligation (managing the property) comprised of a series of distinct services (maintaining property, handling tenant inquiries, etc.). The Company believes that the overall service of property management is substantially the same each day and has the same pattern of performance over the term of the agreement. As a result, each day of service represents a performance obligation satisfied at that point in time. The time-based output method is used to measure progress over time, as this is representative of the transfer of the services. These fees are recognized at the end of each period for services performed during that period, primarily billed to the customer monthly with payment due upon receipt.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

Leasing fee income is recognized as a single performance obligation primarily upon the rent commencement date. The Company believes the leasing services it provides are similar for each available space leased and none of the individual activities necessary to facilitate the execution of each lease are distinct. These fees are billed to the customer monthly with payment due upon receipt.

 

Property acquisition and disposition fees are recognized when the Company satisfies a performance obligation upon acquiring control of a property or transferring control of a property. These fees are billed subsequent to the acquisition or sale of the property and payment is due upon receipt.

 

Construction management fees are recognized as a single performance obligation (managing the construction of the project) composed of a series of distinct services. The Company believes that the overall service of construction management is substantially the same each day and has the same pattern of performance over the term of the agreement. As a result, each day of service represents a performance obligation satisfied at that point in time. These fees are based on the amount spent on the construction at the end of each period for services performed during that period, primarily billed to the customer monthly with payment due upon receipt.

 

Trade Accounts Receivable

 

The Company reviews its trade accounts receivable, related to base rents, straight-line rent, expense reimbursements and other revenues for collectability. The Company evaluates the probability of the collection of the lessee’s total accounts receivable, including the corresponding straight-line rent receivable balance on a lease-by-lease basis. The Company’s analysis of its accounts receivable includes (i) customer credit worthiness, (ii) assessment of risk associated with the tenant, and (iii) current economic trends. In addition, tenants in bankruptcy are analyzed and considerations are made in connection with the expected recovery of pre-petition and post-petition bankruptcy claims. If a lessee’s accounts receivable balance is considered uncollectible, the Company will write-off the uncollectible receivable balances associated with the lease and will only recognize lease income on a cash basis. The Company includes provision for doubtful accounts in Revenues from rental properties, net, in accordance with Topic 842. Lease income will then be limited to the lesser of (i) the straight-line rental income or (ii) the lease payments that have been collected from the lessee. In addition to the lease-specific collectability assessment performed under Topic 842, the analysis also recognizes a general reserve under ASC Topic 450 Contingencies, as a reduction to Revenues from rental properties, for its portfolio of operating lease receivables which are not expected to be fully collectible based on the Company’s historical and current collection experience and the potential for settlement of arrears. Although the Company estimates uncollectible receivables and provides for them through charges against revenues from rental properties, actual results may differ from those estimates. If the Company subsequently determines that it is probable it will collect the remaining lessee’s lease payments under the lease term, the Company will then reinstate the straight-line balance.

 

Gains/losses on sale of properties

 

Gains and losses from the sale and/or transfer of nonfinancial assets, such as real estate property, are to be recognized when control of the asset transfers to the buyer, which will occur when the buyer has the ability to direct the use of or obtain substantially all of the remaining benefits from the asset. This generally occurs when the transaction closes and consideration is exchanged for control of the property.

 

Lessee Leases

 

The Company accounts for its leases in accordance with Topic 842. The Company has right-of-use (“ROU”) assets and lease liabilities on its balance sheet for those leases classified as operating and financing leases where the Company is a lessee. The Company’s leases where it is the lessee primarily consist of ground leases and administrative office leases. The Company classifies leases based on whether the arrangement is effectively a purchase of the underlying asset. Leases that transfer control of the underlying asset to a lessee are classified as finance leases and all other leases as operating leases. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

ROU assets and lease liabilities are recognized at the commencement date of the lease and liabilities are determined based on the estimated present value of the Company’s minimum lease payments under its lease agreements. Variable lease payments are excluded from the lease liabilities and corresponding ROU assets, as they are recognized in the period in which the obligation for those payments is incurred. Certain of the Company’s leases have renewal options for which the Company assesses whether it is reasonably certain the Company will exercise these renewal options. Lease payments associated with renewal options that the Company is reasonably certain will be exercised are included in the measurement of the lease liabilities and corresponding ROU assets. The discount rate used to determine the lease liabilities is based on the estimated incremental borrowing rate on a lease-by-lease basis. When calculating the incremental borrowing rates, the Company utilized data from (i) its recent debt issuances, (ii) publicly available data for instruments with similar characteristics, (iii) observable mortgage rates and (iv) unlevered property yields and discount rates. The Company then applied adjustments to account for considerations related to term and security that may not be fully incorporated by the data sets. Rental expense for lease payments is recognized on a straight-line basis over the lease term. See Footnote 10 of the Notes to Consolidated Financial Statements for further details.

 

Income Taxes

 

The Company elected to qualify as a REIT for federal income tax purposes commencing with its taxable year January 1, 1992 and operates in a manner that enables the Company to qualify and maintain its status as a REIT. Accordingly, the Company generally will not be subject to federal income tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income as defined under Sections 856 through 860 of the Code. The Company will be subject to federal income tax at regular corporate rates to the extent that it distributes less than 100% of its net taxable income, including any net capital gains. Most states, in which the Company holds investments in real estate, conform to the federal rules recognizing REITs.

 

The Company maintains certain subsidiaries which made joint elections with the Company to be treated as taxable REIT subsidiaries (“TRSs”), which permit the Company to engage through such TRSs in certain business activities that the REIT may not conduct directly. A TRS is subject to federal and state income taxes on its income, and the Company includes a provision for taxes in its consolidated financial statements. As such, the Company, through its wholly owned TRSs, has been engaged in various retail real estate related opportunities including retail real estate management and disposition services which primarily focus on leasing and disposition strategies of retail real estate controlled by both healthy and distressed and/or bankrupt retailers. The Company may consider other investments through its TRSs should suitable opportunities arise.

 

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The Company provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not.

 

The Company reviews the need to establish a valuation allowance against deferred tax assets on a quarterly basis. The review includes an analysis of various factors, such as future reversals of existing taxable temporary differences, the capacity for the carryback or carryforward of any losses, the expected occurrence of future income or loss and available tax planning strategies.

 

The Company applies the FASB’s guidance relating to uncertainty in income taxes recognized in a Company’s financial statements. Under this guidance the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also provides guidance on de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods.

 

Noncontrolling Interests

 

The Company accounts for noncontrolling interests in accordance with the Consolidation guidance and the Distinguishing Liabilities from Equity guidance issued by the FASB. Noncontrolling interests represent the portion of equity that the Company does not own in those entities it consolidates. The Company identifies its noncontrolling interests separately within the equity section on the Company’s Consolidated Balance Sheets. The amounts of consolidated net earnings attributable to the Company and to the noncontrolling interests are presented separately on the Company’s Consolidated Statements of Income. 

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

Noncontrolling interests also include amounts related to partnership units issued by consolidated subsidiaries of the Company in connection with certain property acquisitions. These units have a stated redemption value or a defined redemption amount based upon the trading price of the Company’s common stock and provides the unit holders various rates of return during the holding period. The unit holders generally have the right to redeem their units for cash at any time after one year from issuance. For convertible units, the Company typically has the option to settle redemption amounts in cash or common stock.

 

The Company evaluates the terms of the partnership units issued in accordance with the FASB’s Distinguishing Liabilities from Equity guidance. Convertible units for which the Company has the option to settle redemption amounts in cash or common stock are included in the caption Noncontrolling interests within the equity section on the Company’s Consolidated Balance Sheets. Units which embody a conditional obligation requiring the Company to redeem the units for cash after a specified or determinable date (or dates) or upon the occurrence of an event that is not solely within the control of the issuer are determined to be contingently redeemable under this guidance and are included as Redeemable noncontrolling interests and classified within the mezzanine section between Total liabilities and Stockholders’ equity on the Company’s Consolidated Balance Sheets.

 

In a business combination, the fair value of the noncontrolling interest in a consolidated joint venture is calculated using the fair value of the real estate held by the joint venture, which are valued using similar methods as described in the Company’s Real Estate policy above, offset by the fair value of the debt on the property which is then multiplied by the partners’ noncontrolling share.

 

Contingently redeemable noncontrolling interests are recorded at fair value upon issuance. Any change in the fair value or redemption value of these noncontrolling interests is subsequently recognized through Paid-in capital on the Company’s Consolidated Balance Sheets and is included in the Company’s computation of earnings per share (see Footnote 27 of the Notes to Consolidated Financial Statements).

 

Stock Compensation

 

In May 2020, the Company’s stockholders approved the 2020 Equity Participation Plan (the “2020 Plan”), which is a successor to the Restated Kimco Realty Corporation 2010 Equity Participation Plan that expired in March 2020. The 2020 Plan provides for a maximum of 10,000,000 shares of the Company’s common stock to be reserved for the issuance of stock options, stock appreciation rights, restricted stock units, performance awards, dividend equivalents, stock payments and deferred stock awards. Unless otherwise determined by the Board of Directors at its sole discretion, restricted stock grants generally vest (i) 100% on the fourth or fifth anniversary of the grant, (ii) ratably over three, four and five years or (iii) over ten years at 20% per year commencing after the fifth year. Performance share awards, which vest over a period of one to three years, may provide a right to receive shares of the Company’s common stock or restricted stock based on the Company’s performance relative to its peers, as defined, or based on other performance criteria as determined by the Board of Directors. In addition, the 2020 Plan provides for the granting of restricted stock to each of the Company’s non-employee directors (the “Independent Directors”) and permits such Independent Directors to elect to receive deferred stock awards in lieu of directors’ fees.

 

The Company accounts for equity awards in accordance with the FASB’s Stock Compensation guidance which requires that all share-based payments to employees be recognized in the Statements of Income over the service period based on their fair values. Fair value of performance awards is determined using the Monte Carlo method, which is intended to estimate the fair value of the awards at the grant date (see Footnote 22 of the Notes to Consolidated Financial Statements for additional disclosure on the assumptions and methodology).

 

Reclassifications

 

Certain amounts in the prior period have been reclassified in order to conform to the current period’s presentation. For comparative purposes, for the year ended  December 31, 2021, the Company reclassified cash flows (used for)/provided by on the Company’s Consolidated Statements of Cash Flows as follows (in millions):

 

  

2021

 

Operating activities:

    

Straight-line rental income adjustments, net

 $(22.6)

Amortization of above-market and below-market leases, net

 $(14.8)

Amortization of deferred financing costs and fair value debt adjustments, net

 $(9.4)

Change in accounts and notes receivable, net

 $22.6 

Change in other operating assets and liabilities, net

 $24.2 

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

New Accounting Pronouncements

 

The following table represents ASUs to the FASB’s ASCs that, as of December 31, 2023, are not yet effective for the Company and for which the Company has not elected early adoption, where permitted:

 

ASU

Description

Effective

Date

Effect on the financial

statements or other significant

matters

ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions

This ASU clarifies the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and provides new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820.

 

January 1, 2024; Early adoption permitted

The Company does not expect the adoption of this ASU to have a material impact on the Company’s financial position and/or results of operations.

ASU 2023-05, Business Combinations – Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement

The amendments in this ASU address the accounting for contributions made to a joint venture, upon formation, in a joint venture’s separate financial statements. To reduce diversity in practice and provide decision-useful information to a joint venture’s investors, these amendments require that a joint venture apply a new basis of accounting upon formation. By applying a new basis of accounting, a joint venture, upon formation, will recognize and initially measure its assets and liabilities at fair value (with exceptions to fair value measurement that are consistent with the business combinations guidance). Additionally, existing joint ventures have the option to apply the guidance retrospectively.

 

January 1, 2025; Early adoption permitted

This ASU does not impact accounting for joint ventures by the venturers. As such, the Company does not expect the adoption of this ASU will have a material impact on the Company’s financial position and/or results of operations.

ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

The amendments in this ASU improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements.

Fiscal years beginning January 1, 2024, and interim periods for fiscal years beginning January 1, 2025; Early adoption permitted

There are aspects of this ASU that apply to entities with one reportable segment. The Company will review the extent of new disclosures necessary prior to implementation. Other than additional disclosure, the adoption of this ASU is not expected to have a material impact on the Company’s financial position and/or results of operations.

 

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

This ASU requires entities to provide additional information in the rate reconciliation and additional disclosures about income taxes paid. The guidance requires public business entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance requires all entities to disclose annually income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold.

 

Fiscal years beginning January 1, 2025, and interim periods for fiscal years beginning January 1, 2026; Early adoption permitted

The Company will review the extent of new disclosures necessary prior to implementation. Other than additional disclosure, the adoption of this ASU is not expected to have a material impact on the Company’s financial position and/or results of operations.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

The following ASUs to the FASB’s ASCs has been adopted by the Company as of the date listed:

 

ASU

Description

Adoption Date

Effect on the financial

statements or other

significant matters

ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

 

The amendments in this ASU require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination rather than at fair value on the acquisition date required by Topic 805.

January 1, 2023

The adoption of this ASU did not have a material impact on the Company’s financial position and/or results of operations.

 

2.   Real Estate:

 

The Company’s components of Real estate, net consist of the following (in thousands):

 

  

December 31,

 
  

2023

  

2022

 

Land:

        

Developed land

 $4,166,475  $4,102,542 

Undeveloped land

  5,458   16,328 

Land held for development

  5,864   5,672 

Total land

  4,177,797   4,124,542 

Buildings and improvements:

        

Buildings

  10,312,001   10,158,588 

Building improvements

  2,213,248   2,080,437 

Tenant improvements

  1,158,919   1,046,969 

Fixtures and leasehold improvements

  41,055   36,627 

Above-market leases

  170,513   170,211 

In-place leases

  864,261   839,868 

Total buildings and improvements

  14,759,997   14,332,700 

Real estate

  18,937,794   18,457,242 

Accumulated depreciation and amortization (1)

  (3,842,869)  (3,417,414)

Total real estate, net

 $15,094,925  $15,039,828 

 

 

(1)

The Company had accumulated amortization relating to in-place leases and above-market leases aggregating $751,215 at December 31, 2023 and $671,794 at December 31, 2022.

 

In addition, at December 31, 2023 and 2022, the Company had intangible liabilities relating to below-market leases from property acquisitions of $330.6 million and $330.9 million, respectively, net of accumulated amortization of $260.8 million and $242.4 million, respectively. These amounts are included in the caption Other liabilities on the Company’s Consolidated Balance Sheets.

 

The Company’s amortization associated with above-market and below-market leases for the years ended December 31, 2023, 2022 and 2021 resulted in net increases to revenue of $17.3 million, $13.6 million and $14.8 million, respectively. The Company’s amortization expense associated with in-place leases, which is included in depreciation and amortization, for the years ended December 31, 2023, 2022 and 2021 was $94.7 million, $118.1 million and $80.1 million, respectively.

 

The estimated net amortization income/(expense) associated with the Company’s above-market and below-market leases and in-place leases for the next five years are as follows (in millions):

 

  

2024

  

2025

  

2026

  

2027

  

2028

 

Above-market and below-market leases amortization, net

 $13.2  $13.8  $14.7  $14.3  $14.0 

In-place leases amortization

 $(65.5) $(47.5) $(35.2) $(27.5) $(20.3)

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
  
 

3.  Property Acquisitions:

 

Acquisition/Consolidation of Operating Properties

 

During the year ended December 31, 2023, the Company acquired the following operating properties, through direct asset purchases or consolidation due to change in control resulting from the purchase of additional interests in certain operating properties held in an unconsolidated joint venture (in thousands):

 

    

Purchase Price

    

Property Name

Location

Month

Acquired

 

Cash

  

Debt

  

Other

  

Total

  

GLA

 

Portfolio (2 properties) (1)

Various

Jan-23

 $69,130  $19,637  $13,019  $101,786  342  

Crossroads Plaza Parcel

Cary, NC

Jan-23

  2,173   -   -   2,173  5  

Northridge Shopping Center Parcel

Arvada, CO

Jan-23

  728   -   -   728  57  

Stafford Marketplace Parcel (2)

Stafford, VA

Feb-23

  -   -   12,527   12,527  87  

Tustin Heights (1)

Tustin, CA

Mar-23

  26,501   17,550   4,910   48,961  137  

Marlton Plaza Parcel

Cherry Hill, NJ

Jul-23

  529   -   -   529  -  

Stonebridge at Potomac Town Center

Woodbridge, VA

Aug-23

  169,840   -   1,667   171,507  504  

Big 5 Factoria Parcel

Bellevue, WA

Oct-23

  7,817   -   -   7,817  13  
    $276,718  $37,187  $32,123  $346,028  1,145  

 

(1)

Other includes the Company’s previously held equity investments in the Prudential Investment Program and net gains on change in control. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as a result, recognized gains on change in control of interest of $7.7 million, in aggregate, resulting from the fair value adjustments associated with the Company’s previously held equity interests, which are included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Operations. The Company previously held an ownership interest of 15.0% in these property interests. See Footnote 6 of the Notes to Consolidated Financial Statements.

(2)

During March 2023, the Company received a parcel as consideration resulting from the exercise of a termination option of an operating lease.

 

During the year ended December 31, 2022, the Company acquired the following operating properties, through direct asset purchases (in thousands):

 

  Month 

Purchase Price

     

Property Name

Location

Acquired

 

Cash

  

Debt

  

Other

  

Total

  

GLA

 

Rancho San Marcos Parcel

San Marcos, CA

Jan-22

 $2,407  $-  $-  $2,407   6 

Columbia Crossing Parcel

Columbia, MD

Feb-22

  16,239   -   -   16,239   60 

Oak Forest Parcel

Houston, TX

Jun-22

  3,846   -   -   3,846   4 

Devon Village (1)

Devon, PA

Jun-22

  733   -   -   733   - 

Fishtown Crossing

Philadelphia, PA

Jul-22

  39,291   -   -   39,291   133 

Carman’s Plaza

Massapequa, NY

Jul-22

  51,423   -   -   51,423   195 

Pike Center (1)

Rockville, MD

Jul-22

  21,850   -   -   21,850   - 

Baybrook Gateway (1)

Webster, TX

Oct-22

  2,978   -   -   2,978   - 

Portfolio (8 Properties) (2)

Long Island, NY

Nov-22

  152,078   88,792   135,663   376,533   536 

Gordon Plaza (1)

Woodbridge, VA

Nov-22

  5,573   -   -   5,573   - 

The Gardens at Great Neck (1)

Great Neck, NY

Dec-22

  4,019   -   -   4,019   - 
    $300,437  $88,792  $135,663  $524,892   934 

 

(1)

Land parcel

(2)

Other consists of redeemable noncontrolling interest of $79.7 million and an embedded derivative liability associated with put and call options of $56.0 million. See Footnotes 14 and 15 of the Notes to Consolidated Financial Statements for additional discussion regarding fair value allocation to unitholders for noncontrolling interests.

 

Included in the Company’s Consolidated Statements of Income are $20.5 million and $9.1 million in total revenues from the date of acquisition through December 31, 2023 and 2022, respectively, for operating properties acquired during each of the respective years.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

Purchase Price Allocations

 

The purchase price for these acquisitions is allocated to real estate and related intangible assets acquired and liabilities assumed, as applicable, in accordance with our accounting policies for asset acquisitions. The purchase price allocations for properties acquired/consolidated during the years ended December 31, 2023 and 2022, are as follows (in thousands):

 

  

Allocation as of

December 31, 2023

  

Weighted-

Average Useful

Life (in Years)

  

Allocation as of

December 31, 2022

  

Weighted-

Average Useful

Life (in Years)

 

Land

 $109,116   n/a  $207,067   n/a 

Buildings

  166,067   50.0   271,525   50.0 

Building improvements

  23,846   45.0   13,273   45.0 

Tenant improvements

  22,675   6.3   11,689   7.9 

Solar panels

  -   -   2,308   20.0 

In-place leases

  47,805   5.2   28,405   6.9 

Above-market leases

  4,981   6.7   8,408   8.3 

Below-market leases

  (29,271)  23.7   (24,069)  16.1 

Mortgage fair value adjustment

  -   -   9,430   6.5 

Other assets

  1,777   n/a   -   n/a 

Other liabilities

  (968)  n/a   (3,144)  n/a 

Net assets acquired/consolidated

 $346,028      $524,892     
 

4.  Dispositions of Real Estate:

 

The table below summarizes the Company’s disposition activity relating to operating properties and parcels, in separate transactions (dollars in millions):

 

  

Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Aggregate sales price/gross fair value (1) (2) (3)

 $214.2  $191.1  $612.4 

Gain on sale of properties (3) (4)

 $75.0  $15.2  $30.8 

Number of operating properties sold/deconsolidated (1) (3)

  6   9   13 

Number of parcels sold

  13   13   10 

 

(1)

During 2023, the Company contributed a land parcel and related entitlements, located in Admore, PA, into a preferred equity investment with a gross value of $19.6 million. As a result, the Company no longer consolidates this land parcel and has a non-controlling interest in this investment. See Footnote 7 of the Notes to Consolidated Financial Statements for preferred equity investment disclosure.

(2)

During 2023, the Company provided as a lender seller financing of $25.0 million related to the sale of an operating property located in Gresham, OR. See Footnote 11 of the Notes to Consolidated Financial Statements for mortgage receivable loan disclosure.

(3)

During 2021, the Company purchased its partner’s 70.0% remaining interest in Jamestown Portfolio, which is comprised of six property interests. The Company then entered into a joint venture with Blackstone Real Estate Income Trust, Inc. (“BREIT”) in which it contributed these six properties for a gross sales price of $425.8 million, including $170.0 million of non-recourse mortgage debt. As a result, the Company no longer consolidates these six property interests and recognized a loss on change in control of interests of $0.4 million. The Company has a 50.0% investment in this joint venture ($130.1 million as of the date of deconsolidation), included in Investments in and advances to real estate joint ventures on the Company’s Consolidated Balance Sheets.

(4)

For the years ended December 31, 2023, 2022 and 2021 amounts are before noncontrolling interests of $1.8 million, $1.7 million, and $3.0 million, respectively, and taxes of $1.6 million, $1.2 million and $2.2 million, respectively, after utilization of net operating loss carryforwards.

 

5.  Impairments:

 

Management assesses on a continuous basis whether there are any indicators, including property operating performance, changes in anticipated holding period, general market conditions and delays of or change in plans for development, that the value of the Company’s assets (including any related amortizable intangible assets or liabilities) may be impaired. To the extent impairment has occurred, the carrying value of the asset would be adjusted to an amount to reflect the estimated fair value of the asset.

 

The Company has a capital recycling program which provides for the disposition of certain properties, typically of lesser quality assets in less desirable locations. The Company adjusted the anticipated hold period for these properties and as a result the Company recognized impairment charges on certain operating properties (see Footnote 17 of the Notes to Consolidated Financial Statements for fair value disclosure).

 

82

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

The Company’s efforts to market certain assets and management’s assessment as to the likelihood and timing of such potential transactions and/or the property hold period resulted in the Company recognizing impairment charges for the years ended December 31, 2023, 2022 and 2021 as follows (in millions):

 

  

2023

  

2022

  

2021

 

Properties marketed for sale (1) (2)

 $14.0  $21.6  $2.7 

Other impairments

  -   0.4   0.9 

Total impairment charges

 $14.0  $22.0  $3.6 

 

(1)

Amounts relate to adjustments to property carrying values for properties which the Company has marketed for sale and as such has adjusted the anticipated hold periods for such properties. The Company’s estimated fair values of these assets were primarily based upon estimated sales prices from signed contracts or letters of intent from third-party offers, which were less than the carrying value of the assets.

(2)During 2022, the Company recognized impairment charges of $19.2 million, before noncontrolling interests of $16.0 million, related to five properties.

 

The Company also recognized its share of impairment charges related to certain properties within various unconsolidated joint ventures in which the Company holds noncontrolling interests. The Company’s share of these impairment charges were $1.0 million, $4.6 million and $2.9 million for the years ended December 31, 2023, 2022 and 2021, respectively, and are included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Income. (see Footnote 6 of the Notes to Consolidated Financial Statements).

 

6.  Investment in and Advances to Real Estate Joint Ventures:

 

The Company has investments in and advances to various real estate joint ventures. These joint ventures are engaged primarily in the operation of shopping centers which are either owned or held under long-term operating leases. The Company and the joint venture partners have joint approval rights for major decisions, including those regarding property operations. As such, the Company holds noncontrolling interests in these joint ventures and accounts for them under the equity method of accounting. The Company manages certain of these joint venture investments and, where applicable, earns acquisition fees, leasing commissions, property management fees, asset management fees and construction management fees. The table below presents unconsolidated joint venture investments for which the Company held an ownership interest at December 31, 2023 and 2022 (in millions, except number of properties):

 

  

Noncontrolling

 

The Company's Investment

 
  

Ownership Interest

 

December 31,

 

Joint Venture

 

December 31, 2023

 

2023

  

2022

 

Prudential Investment Program

  15.0% $138.7  $153.6 

Kimco Income Opportunity Portfolio (“KIR”) (1)

  52.1%  286.3   281.5 

Canada Pension Plan Investment Board (“CPP”)

  55.0%  204.6   190.8 

Other Institutional Joint Ventures

 

Various

  247.5   256.8 

Other Joint Venture Programs

 

Various

  210.7   208.9 

Total*

     $1,087.8  $1,091.6 

 

* Representing 104 property interests and 21.1 million square feet of GLA, as of December 31, 2023, and 111 property interests and 22.4 million square feet of GLA, as of December 31, 2022.

 

(1)

During 2022, the Company purchased additional ownership interests for $55.1 million, including the General Partner’s ownership interest from Milton Cooper, Executive Chairman of the Board of Directors of the Company, for $0.1 million. There was no change in control as a result of these transactions.

 

The table below presents the Company’s share of net income for the above investments, which is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Income (in millions):

 

  

Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Prudential Investment Program (1)

 $16.4  $9.6  $17.5 

KIR

  34.7   70.3   36.9 

CPP

  8.7   10.6   9.2 

Other Institutional Joint Ventures

  2.6   7.0   1.7 

Other Joint Venture Programs

  9.9   12.0   19.5 

Total

 $72.3  $109.5  $84.8 

 

(1)

During 2022, the Prudential Investment Program recognized an impairment charge on a property of $15.1 million, of which the Company’s share was $2.3 million.

 

83

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

During 2023, the Company acquired the remaining 85% interest in three operating properties from Prudential Investment Program, in separate transactions, with an aggregate gross fair value of $150.7 million. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as a result, recognized net gains on change in control of interests of $7.7 million, in aggregate, resulting from the fair value adjustments associated with the Company’s previously held equity interests. See Footnote 3 of the Notes to Consolidated Financial Statements for the operating properties acquired by the Company.

 

In addition, during 2023, certain of the Company’s real estate joint ventures disposed of four properties and a parcel, in separate transactions, for an aggregate sales price of $132.3 million. These transactions resulted in an aggregate net gain to the Company of $0.3 million for the year ended December 31, 2023.

 

During 2022, certain of the Company’s real estate joint ventures disposed of nine properties and two parcels, in separate transactions, for an aggregate sales price of $349.1 million. These transactions resulted in an aggregate net gain to the Company of $39.3 million for the year ended December 31, 2022.

 

The table below presents debt balances within the Company’s unconsolidated joint venture investments for which the Company held noncontrolling ownership interests at December 31, 2023 and 2022 (dollars in millions):

 

  

December 31, 2023

  

December 31, 2022

 

Joint Venture

 

Mortgages and

Notes Payable,

Net

  

Weighted

Average

Interest

Rate

  

Weighted

Average

Remaining

Term

(months)*

  

Mortgages and

Notes Payable, Net

  

Weighted

Average

Interest

Rate

  

Weighted

Average

Remaining

Term

(months)*

 

Prudential Investment Program

 $291.6   6.00%  24.6  $380.1   5.20%  33.1 

KIR

  273.4   5.82%  39.2   297.9   5.46%  47.2 

CPP

  81.9   5.12%  31.0   83.1   6.14%  43.0 

Other Institutional Joint Ventures

  234.1   5.76%  35.7   233.5   4.30%  47.7 

Other Joint Venture Programs

  367.9   4.44%  59.6   388.8   4.10%  71.8 

Total

 $1,248.9          $1,383.4         

 

* Average remaining term includes extensions

 

Unconsolidated Significant Subsidiaries

 

The Company holds a 52.1% noncontrolling limited partnership interest in KIR, which the Company determined under Rule 4-08(g) of Regulation S-X was significant under the income and revenue tests for the year ended December 31, 2022 and requires summarized financial information. The Company has a master management agreement whereby the Company performs services for fees relating to the management, operation, supervision and maintenance of the KIR joint venture properties. The following table shows summarized unaudited financial information for KIR, as follows (in millions):

 

  

December 31,

 
  

2023

  

2022

 

Assets:

        

Real estate, net

 $669.2  $668.7 

Other assets, net

  67.5   72.4 

Total Assets

 $736.7  $741.1 

Liabilities and Members’ Capital:

        

Notes payable, net

 $273.4  $272.9 

Mortgages payable, net

  -   25.0 

Other liabilities

  15.9   13.9 
Accumulated other comprehensive income  0.6   - 

Members’ capital

  446.8   429.3 

Total Liabilities and Members’ Capital

 $736.7  $741.1 

 

  

Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Revenues, net

 $174.1  $182.5  $186.6 

Operating expenses

  (46.7)  (48.2)  (51.3)

Depreciation and amortization

  (38.5)  (39.4)  (40.3)

Gain on sale of properties

  -   76.2   - 

Interest expense

  (16.8)  (15.5)  (18.1)

Other expense, net

  (0.6)  (1.2)  (2.1)

Net income

 $71.5  $154.4  $74.8 

 

84

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

Summarized financial information for the Company’s investment in and advances to all other real estate joint ventures is as follows (in millions):

 

  

December 31,

 
  

2023

  

2022

 

Assets:

        

Real estate, net

 $3,156.2  $3,440.1 

Other assets, net

  251.6   208.4 

Total Assets

 $3,407.8  $3,648.5 
         

Liabilities and Members’ Capital:

        

Notes payable, net

 $159.9  $159.5 

Mortgages payable, net

  815.6   925.9 

Other liabilities

  70.9   78.8 
Accumulated other comprehensive income  5.1   6.3 

Noncontrolling interests

  34.4   33.5 

Members’ capital

  2,321.9   2,444.5 

Total Liabilities and Members’ Capital

 $3,407.8  $3,648.5 

 

  

Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Revenues, net

 $378.4  $395.2  $340.3 

Operating expenses

  (126.6)  (126.9)  (111.7)

Impairment charges

  (17.8)  (21.1)  (23.5)

Depreciation and amortization

  (108.2)  (119.0)  (97.2)

Gain on sale of properties

  48.0   24.7   61.5 

Interest expense

  (55.4)  (38.6)  (27.6)

Other expense, net

  (6.4)  (6.2)  (0.9)

Net income

 $112.0  $108.1  $140.9 

 

Other liabilities included in the Company’s accompanying Consolidated Balance Sheets include investments in certain real estate joint ventures totaling $5.1 million and $5.3 million at December 31, 2023 and 2022, respectively. The Company has varying equity interests in these real estate joint ventures, which may differ from their proportionate share of net income or loss recognized in accordance with GAAP.

 

The Company’s maximum exposure to losses associated with its unconsolidated joint ventures is primarily limited to its carrying value in these investments. Generally, such investments contain operating properties and the Company has determined these entities do not contain the characteristics of a VIE. As of December 31, 2023 and 2022, the Company’s carrying value in these investments was $1.1 billion.

 

85

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
  
 

7.   Other Investments:

 

The Company has provided capital to owners and developers of real estate properties through its Preferred Equity program, which is included in Other investments on the Company’s Consolidated Balance Sheets. In addition, the Company has invested capital in structured investments which are primarily accounted for on the equity method of accounting. As of December 31, 2023, the Company’s other investments were $144.1 million, of which the Company’s net investment under the Preferred Equity program was $104.1 million. As of December 31, 2022, the Company’s other investments were $107.6 million, of which the Company’s net investment under the Preferred Equity program was $69.4 million. During 2023 and 2022, the Company recognized equity in income of $11.1 million and $16.9 million, respectively, from its preferred equity investments.

 

During 2023, the Company contributed a land parcel and related entitlements, located in Admore, PA, into a preferred equity investment with a gross value of $19.6 million. As a result, the Company no longer consolidates this land parcel and has a non-controlling interest in this investment. As of December 31, 2023, the Company’s investment was $33.3 million.

 

As of December 31, 2023, these preferred equity investment properties had non-recourse mortgage loans aggregating $231.2 million. These loans have scheduled maturities of less than one year and bear interest at rates ranging from 4.19% to Secured Overnight Financing Rate (“SOFR”) plus 265 basis points (8.14% as of December 31, 2023). Due to the Company’s preferred position in these investments, the Company’s share of each investment is subject to fluctuation and is dependent upon property cash flows. The Company’s maximum exposure to losses associated with its preferred equity investments is primarily limited to its invested capital.

  

 

8.  Marketable Securities:

 

The amortized cost and unrealized gains, net of marketable securities as of December 31, 2023 and 2022, are as follows (in thousands):

 

  

December 31, 

 
   2023   2022 

Marketable securities:

        

Amortized cost

 $40,110  $87,411 

Unrealized gains, net

  289,947   510,321 

Total fair value

 $330,057  $597,732 

 

The Company’s gains/(losses) on marketable securities and dividend income for the years ended December 31, 2023, 2022 and 2021, are as follows (in thousands):

 

     

Year Ended December 31,

 
     

2023

  

2022

  

2021

 

Gain/(loss) on marketable securities, net

    $21,262  $(315,508) $505,163 

Dividend income (included in Other income, net and Special dividend income)

  202,749   18,002   16,958 

 

The portion of unrealized gains/(losses) on marketable securities for the period that relates to marketable securities still held at the reporting date (in thousands):

 

 

Year Ended December 31,

 

2023

 

2022

 

2021

Gain/(loss) on marketable securities, net$21,262 $(315,508)$505,163
Less: Net gain/(loss) recognized related to marketable securities sold 10,614  (15,120) -
Unrealized gain/(loss) related to marketable securities still held$31,876 $(330,628)$505,163

 

Albertsons Companies, Inc. (ACI)

 

During 2023, the Company received a $194.1 million special dividend payment on its shares of ACI common stock and recognized this as Special dividend income on the Company’s Consolidated Statements of Income. As a result, the Company’s Board of Directors declared a $0.09 per common share special cash dividend to maintain distribution requirements as a REIT. This special dividend was paid on December 21, 2023, to shareholders of record on December 7, 2023.

 

In addition, during 2023, the Company sold 14.1 million shares of ACI common stock held by the Company, generating net proceeds of $282.3 million. For tax purposes, the Company recognized a long-term capital gain of $241.2 million. The Company retained the proceeds from this stock sale for general corporate purposes and incurred federal and state taxes of $60.9 million on the taxable gain. As of December 31, 2023, the Company held 14.2 million shares of ACI. See Footnote 28 of the Notes to Consolidated Financial Statements for additional information regarding subsequent events.

 

During 2022, the Company sold 11.5 million shares of ACI common stock held by the Company, generating net proceeds of $301.1 million. For tax purposes, the Company recognized a long-term capital gain of $251.5 million. The Company elected to retain the proceeds for this stock sale for general corporate purposes and paid federal and state taxes of $57.2 million on the taxable gain.

 

86

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
  
 

9.  Accounts and Notes Receivable:

 

The components of Accounts and notes receivable, net of potentially uncollectible amounts as of December 31, 2023 and 2022, are as follows (in thousands):

 

  December 31,
  

2023

  

2022

 

Billed tenant receivables

 $30,444  $33,801 

Unbilled common area maintenance, insurance and tax reimbursements

  55,499   56,001 

Deferred rent receivables

  578   1,905 

Defined benefit plan receivable (1)

  -   14,421 

Other receivables

  9,508   8,361 

Straight-line rent receivables

  211,588   189,737 

Total accounts and notes receivable, net

 $307,617  $304,226 

 

 

(1)

 See Footnote 23 of the Notes to Consolidated Financial Statements for defined benefit plan disclosure.

 

10.  Leases:

 

Lessor Leases

 

The Company’s primary source of revenues is derived from lease agreements, which includes rental income and expense reimbursement. The Company’s lease income is comprised of minimum base rent, expense reimbursements, percentage rent, lease termination fee income, ancillary income, amortization of above-market and below-market rent adjustments and straight-line rent adjustments.

 

The disaggregation of the Company’s lease income, which is included in Revenue from rental properties, net on the Company’s Consolidated Statements of Income, as either fixed or variable lease income based on the criteria specified in ASC 842, for the years ended December 31, 2023, 2022 and 2021, is as follows (in thousands):

 

  

Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Lease income:

            

Fixed lease income (1)

 $1,409,609  $1,353,024  $1,045,888 

Variable lease income (2)

  354,093   339,722   264,040 

Above-market and below-market leases amortization, net

  17,253   13,591   14,843 

Adjustments for potentially uncollectible revenues and disputed amounts (3)

  (13,898)  4,511   24,931 

Total lease income

 $1,767,057  $1,710,848  $1,349,702 

 

 

(1)

Includes minimum base rents, expense reimbursements, ancillary income and straight-line rent adjustments.

 

(2)

Includes minimum base rents, expense reimbursements, percentage rent, lease termination fee income and ancillary income.

 

(3)

The amounts represent adjustments associated with potentially uncollectible revenues and disputed amounts.

 

Base rental revenues and fixed-rate expense reimbursements from rental properties are recognized on a straight-line basis over the terms of the related leases. The difference between the amount of rental income contracted through leases and rental income recognized on a straight-line basis for the years ended December 31, 2023, 2022 and 2021 was $22.5 million, $33.8 million and $22.6 million, respectively.

 

The Company is primarily engaged in the operation of shopping centers that are either owned or held under long-term leases that expire at various dates through 2121. The Company, in turn, leases premises in these centers to tenants pursuant to lease agreements which provide for terms ranging generally from five to 25 years and for annual minimum rentals plus incremental rents based on operating expense levels and tenants’ sales volumes. Annual minimum rentals plus incremental rents based on operating expense levels and percentage rents comprised 98% of total revenues from rental properties for each of the three years ended December 31, 2023, 2022 and 2021.

 

87

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

The minimum revenues expected to be received by the Company from rental properties under the terms of all non-cancelable tenant leases for future years, assuming no new or renegotiated leases are executed for such premises and excluding variable lease payments, are as follows (in millions):

 

  

2024

  

2025

  

2026

  

2027

  

2028

  

Thereafter

 

Minimum revenues

 $1,351.0  $1,258.7  $1,111.4  $938.5  $741.7  $3,224.1 

 

Lessee Leases

 

The Company currently leases real estate space under non-cancelable operating lease agreements for ground leases and administrative office leases. The Company’s operating leases have remaining lease terms ranging from less than one year to 47.9 years, some of which include options to extend the terms for up to an additional 75 years.

 

The Company also has two properties under finance leasing arrangements that consists of variable lease payments with a bargain purchase option. The finance right-of-use assets of $26.2 million are included in Other assets on the Company’s Consolidated Balance Sheets and finance lease liabilities of $24.4 million are included in Other liabilities on the Company’s Consolidated Balance Sheets.

 

The weighted-average remaining non-cancelable lease term and weighted-average discount rates for the Company’s operating and finance leases as of December 31, 2023 were as follows:

 

  

Operating Leases

  

Finance Leases

 

Weighted-average remaining lease term (in years)

  24.0   1.0 

Weighted-average discount rate

  6.65%  6.00%

 

The components of the Company’s lease expense, which are included in interest expense, rent expense and general and administrative expense on the Company’s Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021, were as follows (in thousands):

 

  

Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Lease cost:

            

Finance lease cost

 $1,261  $1,294  $569 

Operating lease cost

  14,736   12,994   11,637 

Variable lease cost

  2,241   4,143   3,972 

Total lease cost

 $18,238  $18,431  $16,178 

 

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating and financing lease liabilities (in thousands):

 

Year Ending December 31,

 
  

Operating Leases

  

Financing Leases (1)

 

2024

 $11,806  $25,890 

2025

  11,291   - 

2026

  10,626   - 

2027

  10,342   - 

2028

  10,366   - 

Thereafter

  178,334   - 

Total minimum lease payments

 $232,765  $25,890 
         

Less imputed interest

  (122,780)  (1,458)

Total lease liabilities (1)

 $109,985  $24,432 

 

 

(1)

Operating lease liabilities are included in Operating lease liabilities and financing lease liabilities are included in Other liabilities on the Company’s Consolidated Balance Sheets.

 

11.  Other Assets:

 

Assets Held-For-Sale

 

At December 31, 2022, the Company had three properties classified as held-for-sale at a net carrying amount of $56.3 million.  These properties were subsequently sold during 2023.

 

Mortgages and Other Financing Receivables

 

The Company has various mortgages and other financing receivables which consist of loans acquired and loans originated by the Company. For a complete listing of the Company’s mortgages and other financing receivables at December 31, 2023, see Financial Statement Schedule IV included in this annual report on Form 10-K.

 

88

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

During the years ended December 31, 2023 and 2022, the Company provided, as a lender, the following mortgage loans (dollars in millions):

 

 

Date Issued

 

Face Amount

 

Interest Rate

 

Maturity Date

Nov-23

$

7.3

 

10.50%

 

Nov-26

Mar-23

$

25.0

 

8.00%

 

Apr-24

Feb-23

$

11.2

 

14.00%

 

Dec-24

Jul-22

$

22.0

 

10.00%

 

Feb-24

Jun-22

$

16.5

 

9.00%

 

Jun-25

Jun-22

$

19.6

 

10.00%

 

Jun-29

May-22

$

14.0

 

8.00%

 

May-29

Jan-22

$

3.0

 

8.00%

 

Jul-22

 

During the year ended December 31, 2022, the Company received $60.2 million of partial and full repayments relating to three mortgage loans with interest rates ranging from 8.00% to 12.50%, and maturity dates ranging from July 2022 to September 2027.

 

Software Development Costs

 

As of December 31, 2023 and 2022, the Company had unamortized software development costs of $18.2 million and $18.4 million, respectively. The Company expensed $4.5 million, $3.5 million and $3.1 million in amortization of software development costs during the years ended December 31, 2023, 2022 and 2021, respectively.

 

12.  Notes Payable:

 

As of December 31, 2023 and 2022 the Company’s Notes payable, net consisted of the following (dollars in millions):

 

  

Carrying Amount at

December 31,

  

Interest Rate at

December 31,

  

Maturity Date at

 
  

2023

  

2022

  

2023

  

2022

  December 31, 2023 

Senior unsecured notes

 $7,303.0  $6,803.0   1.90% - 6.88%   1.90% - 6.88%  

Jan-2024 – Oct-2049

 

Credit facility (1)

  -   -   n/a   n/a  

Mar-2027

 

Fair value debt adjustments, net

  24.9   44.4   n/a   n/a   n/a 

Deferred financing costs, net (2)

  (65.0)  (66.4)  n/a   n/a   n/a 
  $7,262.9  $6,781.0   3.66%*   3.45%*     

* Weighted-average interest rate

 

(1)

Accrues interest at a rate of Adjusted Term Secured Overnight Financing Rate (“Adjusted Term SOFR”), as defined, plus 0.755% as of December 31, 2023 and 2022.

 

(2)

As of December 31, 2023 and 2022, the Company had $6.7 million and $2.5 million, respectively, of deferred financing costs, net related to the Credit Facility that are included in Other assets on the Company’s Consolidated Balance Sheets.

 

During the years ended December 31, 2023 and 2022, the Company issued the following senior unsecured notes (dollars in millions):

 

Date Issued

 

Amount Issued

  

Interest Rate

 

Maturity Date

Oct-23

 $500.0   6.400% 

Mar-34

Aug-22

 $650.0   4.600% 

Feb-33

Feb-22

 $600.0   3.200% 

Apr-32

 

During the year ended December 31, 2022, the Company repaid the following senior unsecured notes (dollars in millions):

 

Date Paid

 

Amount Repaid

  

Interest Rate

 

Maturity Date

Sep-22 (1)

 $299.7   3.500% 

Apr-23

Sep-22 (1) (2)

 $350.0   3.125% 

Jun-23

Sep-22 (1) (2)

 $299.4   3.375% 

Oct-22

Mar-22 (3)

 $500.0   3.400% 

Nov-22

 

 

(1)

There was no prepayment charge associated with this early repayment.

 

(2)

Includes partial repayments during May and June 2022.

 

(3)

The Company incurred a prepayment charge of $6.5 million and $0.7 million in write-off of deferred financing costs resulting from this early repayment, which are included in Early extinguishment of debt charges on the Company’s Consolidated Statements of Income.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

See Footnote 28 of the Notes to Consolidated Financial Statements for additional information regarding subsequent events.

 

The scheduled maturities of all notes payable, excluding unamortized fair value debt adjustments of $24.9 million and unamortized debt issuance costs of $65.0 million, as of December 31, 2023, were as follows (in millions):

 

  

2024

  

2025

  

2026

  

2027

  

2028

  

Thereafter

  

Total

 

Principal payments

 $646.2  $740.5  $773.0  $433.7  $409.6  $4,300.0  $7,303.0 

 

The Company’s supplemental indentures governing its Senior Unsecured Notes contain covenants whereby the Company is subject to maintaining (a) certain maximum leverage ratios on both unsecured senior corporate and secured debt, minimum debt service coverage ratios and minimum equity levels, (b) certain debt service ratios and (c) certain asset to debt ratios. In addition, the Company is restricted from paying dividends in amounts that exceed by more than $26.0 million the funds from operations, as defined therein, generated through the end of the calendar quarter most recently completed prior to the declaration of such dividend; however, this dividend limitation does not apply to any distributions necessary to maintain the Company's qualification as a REIT providing the Company is in compliance with its total leverage limitations. The Company was in compliance with all of the covenants as of December 31, 2023.

 

Interest on the Company’s fixed-rate Senior Unsecured Notes is payable semi-annually in arrears. Proceeds from these issuances were primarily used for the acquisition of shopping centers, the expansion and improvement of properties in the Company’s portfolio and the repayment of certain debt obligations of the Company.

 

Credit Facility

 

In February 2023, the Company obtained a new $2.0 billion unsecured revolving credit facility (the “Credit Facility”) with a group of banks, which replaced the Company’s existing $2.0 billion unsecured revolving credit facility which was scheduled to mature in March 2024. The Credit Facility is scheduled to expire in March 2027 with two additional six-month options to extend the maturity date, at the Company’s discretion, to March 2028. The Credit Facility is guaranteed by the Parent Company. The Credit Facility could be increased to $2.75 billion through an accordion feature. The Credit Facility is a green credit facility tied to sustainability metric targets, as described in the agreement. The Credit Facility accrues interest at a rate of Adjusted Term SOFR, as defined in the terms of the Credit Facility, plus 77.5 basis points and fluctuates in accordance with the Company’s credit ratings. The interest rate can be further adjusted upward or downward by a maximum of four basis points based on the sustainability metric targets, as defined in the agreement. The interest rate on the Credit Facility as of December 31, 2023 was 6.21% after a two-basis point reduction was achieved. Pursuant to the terms of the Credit Facility, the Company continues to be subject to the same covenants under the Company’s prior unsecured revolving credit facility. For a full description of the Credit Facility’s covenants refer to the Amended and Restated Credit Agreement dated as of February 23, 2023, filed as Exhibit 10.20 in our Annual Report on Form 10-K for the year ended December 31, 2022. As of December 31, 2023, the Credit Facility had no outstanding balance, no appropriations for letters of credit and the Company was in compliance with its covenants.

 

13.  Mortgages Payable:

 

Mortgages, collateralized by certain shopping center properties (see Financial Statement Schedule III included in this annual report on Form 10-K), are generally due in monthly installments of principal and/or interest.

 

As of December 31, 2023 and 2022, the Company’s Mortgages payable, net consisted of the following (dollars in millions):

 

  

Carrying Amount at

December 31,

  

Interest Rate at

December 31,

  

Maturity Date at 

 
  

2023

  

2022

  

2023

  

2022

  December 31, 2023 

Mortgages payable

 $355.7  $379.3   3.33% - 7.23%   3.23% - 7.23%  

May-2024 – Jun-2031

 

Fair value debt adjustments, net

  (0.6)  (0.7)  n/a   n/a   n/a 

Deferred financing costs, net

  (1.2)  (1.7)  n/a   n/a   n/a 
  $353.9  $376.9   4.22%*   4.16%*     

* Weighted-average interest rate

 

90

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

During 2023, the Company (i) assumed $37.2 million of individual non-recourse mortgage debt through the acquisition of two operating properties, which it subsequently repaid in March 2023 and (ii) repaid $12.3 million of mortgage debt that encumbered two operating properties and a consolidated joint venture operating property.

 

During 2022, the Company (i) assumed $79.4 million of mortgage debt (including fair market value adjustment of $9.4 million) encumbering six operating properties acquired in 2022, (ii) obtained a $19.0 million mortgage relating to a consolidated joint venture operating property and (iii) repaid $158.4 million of mortgage debt (including fair market value adjustment of $0.5 million) that encumbered 11 operating properties.

 

The scheduled principal payments (excluding any extension options available to the Company) of all mortgages payable, excluding unamortized fair value debt adjustments of $0.6 million and unamortized debt issuance costs of $1.2 million, as of December 31, 2023, were as follows (in millions):

 

  

2024

  

2025

  

2026

  

2027

  

2028

  

Thereafter

  

Total

 

Principal payments

 $21.3  $73.0  $7.4  $39.0  $113.8  $101.2  $355.7 
 

14.  Other Liabilities:

 

Embedded Derivative Liability

 

The Company evaluates its financial instruments, including equity-linked financial instruments, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). For derivative financial instruments that are classified as liabilities, the derivative instrument is initially recognized at fair value with subsequent changes in fair value recognized in each reporting period as a component of “Other income/(loss), net” on our accompanying Consolidated Statements of Income. The classification of freestanding derivative instruments, including whether such instruments should be classified as liabilities or as equity, is evaluated at the end of each reporting period.

 

During the year ended December 31, 2022, the Company entered into an agreement to purchase a portfolio of eight properties for a sales price of $376.5 million, which were encumbered by $88.8 million of mortgage debt. The Company paid cash of $152.1 million and issued 6,104,831 preferred units (“Preferred Outside Partner Units”) and 678,306 common units (“Common Outside Partner Units”) with a value of $135.7 million to the sellers (collectively, the “Outside Partner Units”).

 

The transaction includes a call option for the Company to purchase the Outside Partner’s Unit interests 10 years from the anniversary date of the agreement. The holders of the Outside Partner Units have a put option that would require the Company to purchase (i) 50% of the holder’s ownership interest after the first anniversary date, (ii) an additional 25% after the second anniversary date and (iii) the balance of the units after the third anniversary date. The put and call options cannot be separated from the noncontrolling interest. The noncontrolling interests associated with these units are classified in mezzanine equity as redeemable noncontrolling interests as a result of the put right available to the unit holders in the future, an event that is not solely in the Company’s control.

 

This arrangement included an embedded derivative which required separate accounting. The initial value of the embedded derivative was a liability of $56.0 million at the date of purchase. During 2023, certain unit holders exercised their put options to redeem a total of 2,183,075 Outside Partner Units (2,126,527 Preferred Outside Partner Units and 56,548 Common Outside Partner Units) which were redeemed for cash of $43.5 million. The Company estimated the fair value of the derivative liability using a “with-and-without” method. The “with-and-without” methodology involves valuing the whole instrument on an as-is basis and then valuing the instrument without the individual embedded derivative. The difference between the entire instrument with the embedded derivative compared to the instrument without the embedded derivative was the fair value of the derivative liability on issuance. The analysis reflects the contractual terms of the redeemable preferred and common units and the estimated probability and timing of underlying events, triggering the put and call options, are inputs used to determine the estimated fair value of the embedded derivative. The Company has determined the majority of the inputs used to value its embedded derivative fall within Level 3 of the fair value hierarchy, and, as a result, the fair value valuation of its embedded derivative held as of December 31, 2023 was classified as Level 3 in the fair value hierarchy and are required to be measured at fair value on a recurring basis, see Footnote 17 of the Notes to Consolidated Financial Statements. The embedded derivative liability was $30.9 million at December 31, 2023.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
  
 

15.  Noncontrolling Interests and Redeemable Noncontrolling Interests:

 

Noncontrolling interests represent the portion of equity that the Company does not own in those entities it consolidates as a result of having a controlling interest or having determined that the Company was the primary beneficiary of a VIE in accordance with the provisions of the FASB’s Consolidation guidance. The Company accounts and reports for noncontrolling interests in accordance with the Consolidation guidance and the Distinguishing Liabilities from Equity guidance issued by the FASB. The Company identifies its noncontrolling interests separately within the equity section on the Company’s Consolidated Balance Sheets. The amounts of consolidated net income attributable to the Company and to the noncontrolling interests are presented separately on the Company’s Consolidated Statements of Income.

 

Noncontrolling interests

 

The Company owns seven shopping center properties located throughout Puerto Rico. These properties were acquired in 2006 partially through the issuance of $158.6 million of non-convertible units and $45.8 million of convertible units. Noncontrolling interests related to these acquisitions totaled $233.0 million of units, including premiums of $13.5 million and a fair market value adjustment of $15.1 million (collectively, the "Units"). Since the acquisition date the Company has redeemed a substantial portion of these units. As of December 31, 2023 and 2022, noncontrolling interests relating to the remaining units was $4.7 million. The Units related annual cash distribution rates and related conversion features consisted of the following as of December 31, 2023:

 

Type

 

Par Value

Per Unit

  

Number of Units

Remaining

  

Return Per Annum

 

Class B-1 Preferred Units (1)

 $10,000   166   7.0% 

Class B-2 Preferred Units (2)

 $10,000   21   7.0% 

Class C DownREIT Units (1)

 $30.52   52,797  

Equal to the Company’s common stock dividend

 

 

 

(1)

These units are redeemable for cash by the holder or at the Company’s option, shares of the Company’s common stock, based upon the conversion calculation as defined in the agreement. These units are included in Noncontrolling interests on the Company’s Consolidated Balance Sheets.

 

(2)

These units are redeemable for cash by the holder or callable by the Company and are included in Redeemable noncontrolling interests on the Company’s Consolidated Balance Sheets.

 

The Company owns a shopping center located in Bay Shore, NY, which was acquired in 2006 with the issuance of 647,758 redeemable Class B Units at a par value of $37.24 per unit. The units accrue a return equal to the Company’s common stock dividend and are redeemable for cash by the holder or at the Company’s option, shares of the Company’s common stock at a ratio of 1:1. These units are callable by the Company any time after April 3, 2028 and are included in Noncontrolling interests on the Company’s Consolidated Balance Sheets. The redemption value of these units is calculated using the 30-day weighted average closing price of the Company’s common stock prior to redemption. As of December 31, 2023 and 2022, noncontrolling interest relating to the remaining 377,837 Class B Units was $16.1 million.

 

Noncontrolling interests also includes 138,015 convertible units issued during 2006 by the Company, which were valued at $5.3 million, including a fair market value adjustment of $0.3 million, related to an interest acquired in an office building located in Albany, NY. These units are currently redeemable at the option of the holder for cash or at the option of the Company for the Company’s common stock at a ratio of 1:1. The holder is entitled to a distribution equal to the dividend rate of the Company’s common stock.

 

The Company acquired two consolidated joint ventures structured as DownREIT partnerships. The Raleigh Limited Partnership had 1,813,615 units and the Madison Village Limited Partnership had 174,411 units, together which had an aggregate fair value of $41.7 million. These ventures allow the outside limited partners to redeem their interest in the partnership (at the Company’s option) in cash or for the Company’s common stock at a ratio of 1:1. The unit holders are entitled to a distribution equal to the dividend rate of the Company’s common stock. During 2023, all 174,411 outstanding units in the Madison Village Limited Partnership were redeemed for $3.0 million in cash. This transaction resulted in a net decrease in Noncontrolling interests of $3.7 million and a corresponding increase in Paid-in capital totaling $0.7 million, on the Company’s Consolidated Balance Sheets. During 2022, 73,286 units in the Raleigh Limited Partnership were redeemed for 73,286 common shares of the Company’s common stock with a redemption value of $1.7 million. This transaction resulted in a net decrease in Noncontrolling interests of $1.5 million and a corresponding decrease in Common stock and Paid-in capital totaling $1.5 million, on the Company’s Consolidated Balance Sheets. As of December 31, 2023 and 2022, the aggregate redemption value of these noncontrolling interests was $34.9 million and $38.6 million, respectively.

 

92

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

During 2022, a consolidated joint venture, in which the Company had a 15% controlling interest, disposed of five properties (encumbered by $42.8 million of mortgage debt, in aggregate) for a sales price of $105.5 million, in aggregate. The Company recognized impairment charges of $19.0 million, before the partner’s $15.8 million noncontrolling interests share of the impairment. As a result of this transaction, the noncontrolling partner received a distribution of $50.3 million.

 

Redeemable noncontrolling interests

 

Included within noncontrolling interests are units that were determined to be contingently redeemable that are classified as Redeemable noncontrolling interests and presented in the mezzanine section between Total liabilities and Stockholder’s equity on the Company’s Consolidated Balance Sheets.

 

The Company owns eight shopping center properties located in Long Island, NY, which were acquired partially through the issuance of $122.1 million of Preferred Outside Partner Units and $13.6 million of Common Outside Partner Units during 2022, see Footnote 14 of the Notes to Consolidated Financial Statements included in this Form 10-K. Upon acquisition, the Outside Partner Units related to these acquisitions totaled $135.7 million of units, including noncontrolling interests of $79.7 million and an embedded derivative liability associated with put and call options of these unitholders of $56.0 million. The noncontrolling interest is classified as mezzanine equity and included in Redeemable noncontrolling interests on the Company’s Consolidated Balance Sheets as a result of the put right available to the unit holders, an event that is not solely in the Company’s control. During 2023, 2,126,527 Preferred Outside Partner Units and 56,548 Common Outside Partner Units were redeemed for cash of $43.5 million. This transaction resulted in a net decrease in Redeemable noncontrolling interests of $21.1 million and a decrease in Other liabilities of $22.4 million on the Company’s Consolidated Balance Sheets. The Outside Partner Units related annual cash distribution rates and related conversion features consisted of the following as of December 31, 2023:

 

Type

 

Par Value

Per Unit

  

Number of Units Remaining

  

Return Per Annum

 

Preferred Outside Partner Units

 $20.00   3,978,304   3.75%

Common Outside Partner Units

 $20.00   621,758  

Equal to the Company’s common stock dividend

 

 

The following table presents the change in the redemption value of the Redeemable noncontrolling interests for the years ended December 31, 2023 and 2022 (in thousands):

 

  

2023

  

2022

 

Balance at January 1,

 $92,933  $13,480 

Fair value allocation to unitholders/partnership interest (1)

  -   79,663 

Income

  5,820   1,770 

Distributions

  (5,820)  (1,771)

Redemption/conversion of noncontrolling interests (1)

  (21,070)  (209)

Adjustment to estimated redemption value

  414   - 

Balance at December 31,

 $72,277  $92,933 

 

 

(1)

Relates to Preferred and Common Outside Partner Units, which were issued during 2022 and partially redeemed during 2023 described above.

 

16.  Variable Interest Entities (VIE):

 

Included within the Company’s operating properties at December 31, 2023 and 2022, are 30 and 32 consolidated entities, respectively, that are VIEs for which the Company is the primary beneficiary. These entities have been established to own and operate real estate property. The Company’s involvement with these entities is through its majority ownership and management of the properties. The entities were deemed VIEs primarily because the unrelated investors do not have substantive kick-out rights to remove the general or managing partner by a vote of a simple majority or less, and they do not have substantive participating rights. The Company determined that it was the primary beneficiary of these VIEs as a result of its controlling financial interest. At December 31, 2023, total assets of these VIEs were $1.8 billion and total liabilities were $180.9 million. At December 31, 2022, total assets of these VIEs were $1.8 billion and total liabilities were $199.1 million.

 

The majority of the operations of these VIEs are funded with cash flows generated from the properties. The Company has not provided financial support to any of these VIEs that it was not previously contractually required to provide, which consists primarily of funding any capital expenditures, including tenant improvements, which are deemed necessary to continue to operate the entity and any operating cash shortfalls that the entity may experience.

 

93

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

All liabilities of these consolidated VIEs are non-recourse to the Company (“VIE Liabilities”). The assets of the unencumbered VIEs are not restricted for use to settle only the obligations of these VIEs. The remaining VIE assets are encumbered by third-party non-recourse mortgage debt. The assets associated with these encumbered VIEs (“Restricted Assets”) are collateral under the respective mortgages and are therefore restricted and can only be used to settle the corresponding liabilities of the VIE. The table below summarizes the consolidated VIEs and the classification of the Restricted Assets and VIE Liabilities on the Company’s Consolidated Balance Sheets are as follows (dollars in millions):

 

  December 31,
  

2023

  

2022

 
         

Number of unencumbered VIEs

  28   29 

Number of encumbered VIEs

  2   3 

Total number of consolidated VIEs

  30   32 
         

Restricted Assets:

        

Real estate, net

 $379.8  $425.5 

Cash and cash equivalents

  3.9   7.9 

Accounts and notes receivable, net

  3.6   1.7 

Other assets

  1.3   1.5 

Total Restricted Assets

 $388.6  $436.6 
         

VIE Liabilities:

        

Mortgages payable, net

 $97.3  $109.7 

Accounts payable and accrued expenses

  11.4   10.9 

Operating lease liabilities

  5.0   5.2 

Other liabilities

  67.2   73.3 

Total VIE Liabilities

 $180.9  $199.1 

 

Unconsolidated Redevelopment Investment

 

Included in the Company’s preferred equity investments at December 31, 2023, is an unconsolidated development project which is a VIE for which the Company is not the primary beneficiary. This preferred equity investment was primarily established to develop real estate property for long-term investment and was deemed a VIE primarily based on the fact that the equity investment at risk was not sufficient to permit the entity to finance its activities without additional financial support. The initial equity contributed to this entity was not sufficient to fully finance the real estate construction as development costs are funded by the partners over the construction period. The Company determined that it was not the primary beneficiary of this VIE based on the fact that the Company has shared control of this entity along with the entity’s partners and therefore does not have a controlling financial interest.

 

As of December 31, 2023, the Company’s investment in this VIE was $33.3 million, which is included in Other investments on the Company’s Consolidated Balance Sheets. The Company’s maximum exposure to loss as a result of its involvement with this VIE is estimated to be $35.7 million, which is the Company's carrying value in this investment and its remaining capital commitment obligation. The Company has not provided financial support to this VIE that it was not previously contractually required to provide. All future costs of development will be funded with capital contributions from the Company and the outside partner in accordance with their respective ownership percentages and construction loan financing.

 

17.  Fair Value Disclosure of Financial Instruments:

 

All financial instruments of the Company are reflected in the accompanying Consolidated Balance Sheets at amounts which, in management’s estimation, based upon an interpretation of available market information and valuation methodologies, reasonably approximate their fair values except those listed below, for which fair values are disclosed. The valuation method used to estimate fair value for fixed-rate and variable-rate debt and mortgage and other finance receivables is based on discounted cash flow analyses, with assumptions that include credit spreads, market yield curves, trading activity, loan amounts and debt maturities. The fair values for marketable securities are based on published values, securities dealers’ estimated market values or comparable market sales. The fair value for embedded derivative liability is based on using the “with-and-without” method. Such fair value estimates are not necessarily indicative of the amounts that would be realized upon disposition.

 

94

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

As a basis for considering market participant assumptions in fair value measurements, the FASB’s Fair Value Measurements and Disclosures guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).

 

The following are financial instruments for which the Company’s estimate of fair value differs from the carrying amounts (in thousands):

 

  

December 31,

 
  

2023

  

2022

 
  

Carrying

Amounts

  

Estimated

Fair Value

  

Carrying

Amounts

  

Estimated

Fair Value

 

Assets:

                

Mortgage and other financing receivables (1)

 $130,745  $122,323  $87,359  $87,359 

Liabilities:

                

Notes payable, net (2)

 $7,262,851  $6,671,450  $6,780,969  $5,837,401 

Mortgages payable, net (3)

 $353,945  $329,955  $376,917  $311,659 

 

 

(1)

The Company determined that the valuation of its mortgage and other financing receivables were classified within Level 3 of the fair value hierarchy.

 

(2)

The Company determined that the valuation of its senior unsecured notes were classified within Level 2 of the fair value hierarchy. The estimated fair value amounts classified as Level 2 as of December 31, 2023 and 2022, were $6.7 billion and $5.8 billion, respectively. The carrying value includes deferred financing costs of $65.0 million and $66.4 million as of December 31, 2023 and 2022, respectively.

 

(3)

The Company determined that its valuation of its mortgages payable were classified within Level 3 of the fair value hierarchy. The carrying value includes deferred financing costs of $1.2 million and $1.7 million as of December 31, 2023 and 2022, respectively.

 

The Company has certain financial instruments that must be measured under the FASB’s Fair Value Measurements and Disclosures guidance, including available for sale securities and embedded derivative liabilities. The Company currently does not have non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis.

 

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level of the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

 

The tables below present the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022, aggregated by the level of the fair value hierarchy within which those measurements fall (in thousands):

 

  

Balance at

December 31, 2023

  

Level 1

  

Level 2

  

Level 3

 

Assets:

                

Marketable equity securities

 $330,057  $330,057  $-  $- 

Liabilities:

                

Embedded derivative liability

 $30,914  $-  $-  $30,914 

 

  

Balance at

December 31, 2022

  

Level 1

  

Level 2

  

Level 3

 

Assets:

                

Marketable equity securities

 $597,732  $597,732  $-  $- 

Liabilities:

                

Embedded derivative liability

 $56,000  $-  $-  $56,000 

 

The significant unobservable input (Level 3 inputs) used in measuring the Company’s embedded derivative liability, which is categorized with Level 3 of the fair value hierarchy, is the discount rate of 6.40% and 8.00% as of December 31, 2023 and 2022, respectively.

 

The table below summarizes the change in the fair value of the embedded derivative liability for the year ended December 31, 2023 (in thousands): 

 

   

Fair Value of Embedded Derivative Liability

 

Balance as of January 1, 2023

 

$

56,000

 

Settlements

  

(22,446)

 

Change in fair value (included in Other income, net)

  

(734)

 

Change in fair value (included in Paid-in capital)

  

(1,906)

 

Balance as of December 31, 2023

 

$

30,914

 

 

 

95

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

Assets measured at fair value on a non-recurring basis at December 31, 2023 are as follows (in thousands):

 

  

Balance at

December 31, 2023

  

Level 1

  

Level 2

  

Level 3

 
                 

Real estate

 $11,724  $-  $-  $11,724 

 

During the year ended December 31, 2023, the Company recognized impairment charges related to adjustments to property carrying values of $14.0 million. The Company’s estimated fair values of these assets were primarily based upon estimated sales prices from signed contracts or letters of intent from third-party offers, which were less than the carrying value of the assets. The Company does not have access to the unobservable inputs used to determine the estimated fair values of third-party offers. Based on these inputs, the Company determined that its valuation of these investments was classified within Level 3 of the fair value hierarchy.

 

18.  Preferred Stock, Common Stock and Convertible Unit Transactions:

 

Preferred Stock

 

The Company’s Board of Directors had authorized the repurchase of up to 894,000 depositary shares of Class L Preferred Stock and 1,048,000 depositary shares of Class M Preferred Stock through December 31, 2023, which represented up to 1,942 shares of the Company’s preferred stock, par value $1.00 per share. During the year ended December 31, 2023, the Company repurchased the following preferred stock:

 

Class of Preferred Stock

 

Depositary Shares Repurchased

  

Purchase Price (in thousands)

 

Class L

  43,777  $973.4 

Class M

  23,791  $515.9 

 

During January 2024, the Company’s Board of Directors authorized the repurchase of up to 891,000 depositary shares of Class L Preferred Stock, 1,047,000 depositary shares of Class M Preferred Stock, and 185,000 depositary shares of Class N Preferred Stock through February 28, 2026. See Footnote 28 of the Notes to Consolidated Financial Statements for additional information regarding subsequent events.

 

The Company’s outstanding Preferred Stock is detailed below (in thousands, except share data and par values):

 

As of December 31, 2023

Class of

Preferred

Stock

 

Shares

Authorized

  

Shares

Issued and

Outstanding

  

Liquidation

Preference

(in thousands)

  

Dividend

Rate

  

Annual

Dividend per

Depositary

Share

  

Par

Value

 

Optional

Redemption

Date

Class L

  10,350   8,902  $222,543   5.125% $1.28125  $1.00 

8/16/2022

Class M

  10,580   10,465   261,636   5.250% $1.31250  $1.00 

12/20/2022

       19,367  $484,179              

 

As of December 31, 2022

Class of

Preferred

Stock

 

Shares

Authorized

  

Shares

Issued and

Outstanding

  

Liquidation

Preference

(in thousands)

  

Dividend

Rate

  

Annual

Dividend per

Depositary

Share

  

Par

Value

 

Optional

Redemption

Date

Class L

  10,350   8,946  $223,637   5.125% $1.28125  $1.00 

8/16/2022

Class M

  10,580   10,489   262,231   5.250% $1.31250  $1.00 

12/20/2022

       19,435  $485,868              

 

The Company’s Class L and Class M Preferred Stock Depositary Shares are not convertible or exchangeable for any other property or securities of the Company. 

 

Voting Rights

 

The Class L and M Preferred Stock rank pari passu as to voting rights, priority for receiving dividends and liquidation preference as set forth below.

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

As to any matter on which the Class L or M Preferred Stock may vote, including any actions by written consent, each share of the Class L or M Preferred Stock shall be entitled to 1,000 votes, each of which 1,000 votes may be directed separately by the holder thereof. With respect to each share of Class L or M Preferred Stock, the holder thereof may designate up to 1,000 proxies, with each such proxy having the right to vote a whole number of votes (totaling 1,000 votes per share of Class L or M Preferred Stock). As a result, each Class L or M Depositary Share is entitled to one vote.

 

Liquidation Rights

 

In the event of any liquidation, dissolution or winding up of the affairs of the Company, preferred stock holders are entitled to be paid, out of the assets of the Company legally available for distribution to its stockholders, a liquidation preference of $25,000 per share of Class L Preferred Stock and $25,000 per share of Class M Preferred Stock ($25.00 per each Class L and Class M Depositary Share), plus an amount equal to any accrued and unpaid dividends to the date of payment, before any distribution of assets is made to holders of the Company’s common stock or any other capital stock that ranks junior to the preferred stock as to liquidation rights.

 

Common Stock

 

The Company has a common share repurchase program, which is scheduled to expire February 28, 2026. Under this program, the Company may repurchase shares of its common stock, par value $0.01 per share, with an aggregate gross purchase price of up to $300.0 million. The Company did not repurchase any shares under the share repurchase program during 2023 and 2022. As of December 31, 2023, the Company had $224.9 million available under this share repurchase program.

 

During September 2023, the Company established an at-the-market continuous offering program (the “ATM Program”) pursuant to which the Company may offer and sell from time-to-time shares of its common stock, par value $0.01 per share, with an aggregate gross sales price of up to $500.0 million through a consortium of banks acting as sales agents. Sales of the shares of common stock may be made, as needed, from time to time in “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, as amended, including by means of ordinary brokers’ transactions on the New York Stock Exchange or otherwise (i) at market prices prevailing at the time of sale, (ii) at prices related to prevailing market prices or (iii) as otherwise agreed to with the applicable sales agent. In addition, the Company may, from time to time, enter into separate forward sale agreements with one or more banks. The Company did not issue any shares under the ATM Program during the year ended December 31, 2023. As of December 31, 2023, the Company had $500.0 million available under this ATM Program.

 

The Company, from time to time, repurchases shares of its common stock in amounts that offset new issuances of common stock relating to the exercise of stock options or the issuance of restricted stock awards. These repurchases may occur in open market purchases, privately negotiated transactions or otherwise subject to prevailing market conditions, the Company’s liquidity requirements, contractual restrictions and other factors. During 2023, 2022 and 2021, the Company repurchased 761,149, 567,450 and 1,084,953 shares, respectively, relating to shares of common stock surrendered to the Company to satisfy statutory minimum tax withholding obligations relating to the vesting of restricted stock awards under the Company’s equity-based compensation plans.

 

Convertible Units

 

The Company has various types of convertible units that were issued in connection with the purchase of operating properties (see Footnote 15 of the Notes to Consolidated Financial Statements). The amount of consideration that would be paid to unaffiliated holders of units issued from the Company’s consolidated subsidiaries which are not mandatorily redeemable, as if the termination of these consolidated subsidiaries occurred on December 31, 2023, is $51.2 million. The Company has the option to settle such redemption in cash or shares of the Company’s common stock. If the Company exercised its right to settle in common stock, the unit holders would receive 2.4 million shares of common stock.

 

Dividends Declared

 

The following table provides a summary of the dividends declared per share:

 

      

Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Common Stock (1)

 $1.02000  $0.84000  $0.68000 

Class L Depositary Shares

 $1.28125  $1.28125  $1.28125 

Class M Depositary Shares

 $1.31250  $1.31250  $1.31250 

 

 

(1)

During 2023, the Company’s Board of Directors declared a $0.09 per common share special cash dividend to maintain distribution requirements as a REIT.

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
  
 

19.  Supplemental Schedule of Non-Cash Investing/Financing Activities:

 

The following schedule summarizes the non-cash investing and financing activities of the Company for the years ended December 31, 2023, 2022 and 2021 (in thousands):

 

  

2023

  

2022

  

2021

 

Acquisition of real estate interests:

            

Mortgages debt

 $-  $79,362  $- 

Other liabilities

 $-  $59,000  $- 

Redeemable noncontrolling interests

 $-  $79,663  $- 

Lease modification

 $12,527  $-  $- 
Proceeds held in escrow through sale of real estate interests $3,524  $-  $- 

Disposition of real estate interests through the issuance of mortgage receivables

 $25,000  $-  $- 

Deconsolidation of real estate interests through contribution to other investments

 $19,618  $-  $- 

Capital expenditures accrual

 $30,892  $29,079  $34,651 

Surrender of common stock

 $16,327  $13,790  $20,909 

Declaration of dividends paid in succeeding period

 $5,308  $5,326  $5,366 

Increase/(decrease) in redeemable noncontrolling interests’ carrying amount

 $414  $-  $(2,304)

Lease liabilities arising from obtaining operating right-of-use assets

 $1,481  $-  $553 

Lease liabilities arising from obtaining financing right-of-use assets

 $3,161  $-  $- 

Decrease in embedded derivative liability from extinguishment

 $1,906  $-  $- 

Allocation of fair value to noncontrolling interests

 $-  $-  $2,068 

Purchase price fair value adjustment to prepaid rent

 $-  $-  $15,620 

Decrease in noncontrolling interests from redemption of units for common stock

 $-  $1,613  $1,540 

Weingarten Merger:

            

Real estate assets

 $-  $-  $5,627,469 

Investments in and advances to real estate joint ventures

 $-  $-  $585,382 

Notes payable

 $-  $-  $(1,497,632)

Mortgages payable

 $-  $-  $(317,671)

Below-market leases

 $-  $-  $(119,373)

Noncontrolling interests

 $-  $-  $(177,039)

Other assets and liabilities, net

 $-  $-  $(154,775)

Lease liabilities arising from obtaining operating right-of-use assets

 $-  $-  $32,569 

Lease liabilities arising from obtaining financing right-of-use assets

 $-  $-  $23,026 

Common stock issued in exchange for Weingarten common shares

 $-  $-  $(3,738,735)

Consolidation of Joint Ventures:

            

Increase in real estate and other assets, net

 $54,345  $-  $506,266 

Increase in mortgages payable, other liabilities and noncontrolling interests

 $37,187  $-  $234,091 

Deconsolidation of Joint Venture:

            

Decrease in real estate and other assets, net

 $-  $-  $300,099 

Decrease in mortgages payable and other liabilities

 $-  $-  $170,000 

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash recorded on the Company’s Consolidated Balance Sheets to the Company’s Consolidated Statements of Cash Flows (in thousands):

 

  

As of December 31, 2023

  

As of December 31, 2022

 

Cash and cash equivalents

 $780,518  $146,970 

Restricted cash

  3,239   2,859 

Total cash, cash equivalents and restricted cash

 $783,757  $149,829 
 

20.  Transactions with Related Parties:

 

Joint Ventures

 

The Company provides management services for shopping centers owned principally by affiliated entities and various real estate joint ventures in which certain stockholders of the Company have economic interests. Such services are performed pursuant to management agreements which provide for fees based upon a percentage of gross revenues from the properties and other direct costs incurred in connection with management of the centers. Substantially all of the Management and other fee income on the Company’s Consolidated Statements of Income constitute fees earned from affiliated entities. Reference is made to Footnote 6 of the Notes to Consolidated Financial Statements for additional information regarding transactions with related parties.

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

During 2023, the Company acquired the remaining 85% interest in three operating properties from the Prudential Investment Program, in separate transactions, with an aggregate gross fair value of $150.7 million. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as a result, recognized net gains on change in control of interests of $7.7 million, in aggregate, resulting from the fair value adjustments associated with the Company’s previously held equity interests. See Footnote 3 of the Notes to Consolidated Financial Statements for the operating properties acquired by the Company.

 

During 2022, the Company purchased the General Partner’s ownership interest in the KIR joint venture from Milton Cooper, Executive Chairman of the Board of Directors of the Company, for $0.1 million. There was no change in control as a result of this transaction.

 

Ripco

 

Ripco Real Estate Corp. (“Ripco”) business activities include serving as a leasing agent and representative for national and regional retailers including Target, Best Buy, Kohl’s and many others, providing real estate brokerage services and principal real estate investing. Todd Cooper, an officer and 50% shareholder of Ripco, is a son of Milton Cooper, Executive Chairman of the Board of Directors of the Company. During 2023, 2022 and 2021, the Company paid brokerage commissions of $0.5 million, $0.3 million and $0.4 million, respectively, to Ripco for services rendered primarily as leasing agent for various national tenants in shopping center properties owned by the Company.

 

Fifth Wall

 

Mary Hogan Preusse, a member of the Company’s Board of Directors, is a Senior Advisor at Fifth Wall. The Company holds an investment in the Fifth Wall’s Climate Technology Fund with a commitment of up to $25.0 million, of which $16.8 million has been funded as of December 31, 2023 and a cost method investment of $1.6 million within Fifth Wall’s Ventures SPV Fund as of December 31, 2023.

 

21.  Commitments and Contingencies:

 

Letters of Credit

 

The Company has issued letters of credit in connection with the completion and repayment guarantees primarily on certain of the Company’s redevelopment projects and guaranty of payment related to the Company’s insurance program. At December 31, 2023, these letters of credit aggregated $39.2 million.

 

Funding Commitments

 

The Company has investments, including Fifth Wall discussed above, with funding commitments of $64.7 million, of which $51.8 million has been funded as of December 31, 2023.

 

Other

 

The Parent Company guarantees the unsecured debt instruments of Kimco OP. These guarantees by the Parent Company are full, irrevocable, unconditional and absolute joint and several guarantees to the holders of each series of such unsecured debt instruments. See Footnote 12 of the Notes to Consolidated Financial Statements for these unsecured debt instruments.

 

In connection with the construction of its development and redevelopment projects and related infrastructure, certain public agencies require posting of performance and surety bonds to guarantee that the Company’s obligations are satisfied. These bonds expire upon the completion of the improvements and infrastructure. As of December 31, 2023, there were $18.4 million in performance and surety bonds outstanding.

 

The Company provides a guaranty for the payment of any debt service shortfalls on the Sheridan Redevelopment Agency issued Series A bonds which are tax increment revenue bonds issued in connection with a development project in Sheridan, Colorado. These tax increment revenue bonds have a balance of $41.0 million outstanding at December 31, 2023. The bonds are to be repaid with incremental sales and property taxes and a public improvement fee ("PIF") to be assessed on current and future retail sales and, to the extent necessary, any amounts the Company  may have to provide under a guaranty. The revenue generated from incremental sales, property taxes and PIF have satisfied the debt service requirements to date. The incremental taxes and PIF are to remain intact until the earlier of the payment of the bond liability in full or 2040.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

The Company is subject to various other legal proceedings and claims that arise in the ordinary course of business. Management believes that the final outcome of such matters will not have a material adverse effect on the financial position, results of operations or liquidity of the Company taken as a whole as of December 31, 2023.

 

22.  Incentive Plans:

 

In May 2020, the Company’s stockholders approved the 2020 Equity Participation Plan (the “2020 Plan”), which is a successor to the Restated Kimco Realty Corporation 2010 Equity Participation Plan (the “2010 Plan” and together with the 2020 Plan, the “Plan”) that expired in March 2020. The 2020 Plan provides for a maximum of 10.0 million shares of the Company’s common stock to be reserved for the issuance of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, dividend equivalents, long term incentive plan units, stock payments and deferred stock awards. At December 31, 2023, the Company had 4.9 million shares of common stock available for issuance under the 2020 Plan.

 

The Company accounts for equity awards in accordance with FASB’s Compensation – Stock Compensation guidance which requires that all share-based payments to employees, including grants of employee stock options, restricted stock and performance shares, be recognized in the Consolidated Statements of Income over the service period based on their fair values. Fair value of performance awards is determined using the Monte Carlo method, which is intended to estimate the fair value of the awards at the grant date. Fair value of restricted shares is based on the price on the date of grant.

 

The Company recognized expense associated with its equity awards of $33.1 million, $26.6 million and $23.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, the Company had $51.5 million of total unrecognized compensation cost related to unvested stock compensation granted under the Plan. That cost is expected to be recognized over a weighted-average period of 2.7 years.

 

Stock Options

 

During 2023, 2022 and 2021, the Company did not grant any stock options. Information with respect to stock options outstanding under the 2010 Plan for the years ended December 31, 2023, 2022 and 2021 are as follows:

 

  

Shares

  

Weighted-Average

Exercise Price

Per Share

  

Aggregate Intrinsic Value

(in millions)

 

Options outstanding, January 1, 2021

  1,162,321  $20.03  $- 

Exercised

  (315,750) $19.19  $1.1 

Forfeited

  (357,816) $19.01     

Options outstanding, December 31, 2021

  488,755  $21.48  $1.5 

Exercised

  (205,871) $20.56  $0.8 

Forfeited

  (750) $19.70     

Options outstanding, December 31, 2022

  282,134  $22.13  $- 

Exercised

  (173,038) $21.54  $0.1 

Forfeited

  (109,096) $21.61     

Options outstanding, December 31, 2023

  -  $-  $- 

Options exercisable (fully vested)

            

December 31, 2021

  488,755  $21.48  $1.5 

December 31, 2022

  282,134  $22.13  $- 

December 31, 2023

  -  $-  $- 

 

Cash received from options exercised under the 2010 Plan was $3.7 million, $4.2 million and $6.1 million for the years ended December 31, 2023, 2022 and 2021, respectively.

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

Restricted Stock

 

Information with respect to restricted stock under the Plan for the years ended December 31, 2023, 2022 and 2021 are as follows:

 

  

2023

  

2022

  

2021

 

Restricted stock outstanding as of January 1,

  2,605,970   2,347,608   2,394,825 

Granted (1)

  893,880   819,090   754,560 

Vested

  (740,866)  (511,772)  (759,665)

Forfeited

  (12,868)  (48,956)  (42,112)

Restricted stock outstanding as of December 31,

  2,746,116   2,605,970   2,347,608 

 

(1)

The weighted-average grant date fair value for restricted stock issued during the years ended December 31, 2023, 2022 and 2021 were $21.30, $24.27 and $17.81, respectively.

 

Restricted shares have the same voting rights as the Company’s common stock and are entitled to a cash dividend per share equal to the Company’s common dividend which is taxable as ordinary income to the holder. For the years ended December 31, 2023, 2022 and 2021, the dividends paid on unvested restricted shares were $3.1 million, $2.5 million and $1.8 million, respectively.

 

Performance Shares

 

Information with respect to performance share awards under the Plan for the years ended December 31, 2023, 2022 and 2021 are as follows:

 

  

2023

  

2022

  

2021

 

Performance share awards outstanding as of January 1,

  1,004,040   1,052,100   913,800 

Granted (1)

  531,200   458,660   545,380 

Vested (2)

  (545,380)  (506,720)  (407,080)

Performance share awards outstanding as of December 31,

  989,860   1,004,040   1,052,100 

 

(1)

The weighted-average grant date fair value for performance shares issued during the years ended December 31, 2023, 2022 and 2021 were $42.61, $31.19 and $22.96, respectively.

(2)

For the years ended December 31, 2023, 2022 and 2021, the corresponding common stock equivalent of these vested awards were 970,231, 998,238 and 814,160 shares, respectively.

 

The more significant assumptions underlying the determination of fair values for these performance awards granted during 2023, 2022 and 2021 were as follows:

 

  

2023

  

2022

  

2021

 

Stock price

 $21.30  $24.27  $17.87 

Dividend yield (1)

  0%  0%  0%

Risk-free rate

  4.38%  1.72%  0.20%

Volatility (2)

  44.89%  49.07%  48.41%

Term of the award (years)

  2.87   2.87   2.86 

 

(1)

Total Shareholder Returns, as used in the performance share awards computation, are measured based on cumulative dividend stock prices, as such a zero percent dividend yield is utilized.

(2)

Volatility is based on the annualized standard deviation of the daily logarithmic returns on dividend-adjusted closing prices over the look-back period based on the term of the award.

 

Other

 

The Company maintains a 401(k)-retirement plan covering substantially all officers and employees, which permits participants to defer up to the maximum allowable amount determined by the Internal Revenue Service of their eligible compensation. This deferred compensation, together with Company matching contributions, which generally equal employee deferrals up to a maximum of 5% of their eligible compensation, is fully vested and funded as of December 31, 2023. The Company’s contributions to the plan were $2.7 million, $2.6 million and $2.4 million for the years ended December 31, 2023, 2022 and 2021, respectively. In addition during 2023, the Company provided a discretionary match in the amount of $3.9 million to all participants in the 401(k)-retirement plan.

 

The Company recognized severance costs associated with employee retirements and terminations during the years ended December 31, 2023, 2022 and 2021, of $0.4 million, $1.5 million and $14.4 million (including $13.7 million of severance costs included in Merger charges on the Company’s Consolidated Statements of Income), respectively.

 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
  
 

23.  Defined Benefit Plan:

 

In August 2021, the Company assumed sponsorship of Weingarten Realty Investors’ noncontributory qualified cash balance retirement plan (“the Benefit Plan”) in connection with the merger with Weingarten. The Benefit Plan was frozen as of the date of the merger and subsequently terminated as of December 31, 2021. On March 28, 2023, the Internal Revenue Service (the “IRS”) issued a favorable determination letter for the termination of the Benefit Plan. As a result, the Company elected to settle the Benefit Plan’s obligations through third-party annuity payments, lump sum distributions and direct rollover of funds in an Individual Retirement Account (“IRA Rollovers”) based on elections made by the Benefit Plan’s participants.

 

During 2023, the Benefit Plan’s obligations were settled through third-party annuity contracts, lump sum distributions and IRA Rollovers. In addition, during 2023, the Benefit Plan transferred excess assets with a value of $3.9 million to the qualified replacement plan managed by the Company and reverted excess assets with a value of $11.0 million to the Company. Upon the liquidation of the Benefit Plan, the Company realized $10.8 million of settlement gains during the year ended December 31, 2023, which are included in Other income, net on the Company’s Consolidated Statements of Income and were previously included in Accumulated other comprehensive income on the Company’s Consolidated Balance Sheets. In addition, the Company incurred excise taxes of $2.2 million resulting from the pension reversion of excess pension plan assets during the year ended December 31, 2023, which are included in Other income, net on the Company’s Consolidated Statements of Income.

 

The following table summarizes the measurement changes in the Benefit Plan’s projected benefit obligation, plan assets and funded status, as well as the components of net periodic benefit costs, including key assumptions, from January 1, 2023 through December 31, 2023 (in thousands):

 

  2023  2022 

Change in Projected Benefit Obligation:

        

Benefit obligation at beginning of period

 $26,165  $36,995 

Interest cost

  982   1,052 

Settlement payments

  (25,480)  - 

Actuarial gain

  (189)  (9,781)

Benefit payments

  (1,478)  (2,101)

Benefit obligation at end of period

 $-  $26,165 

Change in Plan Assets:

        

Fair value of plan assets at beginning of period

 $40,586  $43,653 

Actual return on plan assets

  1,299   (966)

Excess assets transfer

  (14,927)  - 

Settlement payments

  (25,480)  - 

Benefit payments

  (1,478)  (2,101)

Fair value of plan assets at end of period

 $-  $40,586 

Funded status at end of period (included in Accounts and notes receivable)

 $-  $14,421 

Accumulated benefit obligation

 $-  $26,165 

Net gain recognized in Accumulated other comprehensive income

 $267  $10,581 

 

The components of net periodic benefit income/(cost), included in Other income, net in the Company’s Consolidated Statements of Income for the years ended December 31, 2023 and 2022 are as follows (in thousands):

 

  

2023

  

2022

 

Interest cost

 $(982) $(1,052)

Expected return on plan assets

  1,221   413 

Amortization of net gain

  -   37 

Settlement gain

  10,848   - 

Total

 $11,087  $(602)

 

The weighted-average assumptions used to determine the benefit obligation as of December 31, 2022 are as follows:

 

  

2022

 

Discount rate

  4.88%

Salary scale increases

  N/A 

Interest credit rate for cash balance plan

  4.50%

 

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KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
  
 

24.  Income Taxes:

 

The Company elected to qualify as a REIT in accordance with the Code commencing with its taxable year which began January 1, 1992. To qualify as a REIT, the Company must meet several organizational and operational requirements, and is required to annually distribute at least 90% of its net taxable income, determined without regard to the dividends paid deduction and excluding any net capital gain. In addition, the Company will be subject to federal income tax at regular corporate rates to the extent that it distributes less than 100% of its net taxable income, including any net capital gains. Management intends to adhere to these requirements and maintain the Company’s REIT status. As a REIT, the Company generally will not be subject to corporate federal income tax, provided that dividends to its stockholders equal at least the amount of its REIT taxable income. If the Company were to fail to qualify as a REIT in any taxable year, it would be subject to federal income taxes at regular corporate rates (including any applicable alternative minimum tax) and would not be permitted to elect REIT status for four subsequent taxable years. Even if the Company qualifies for taxation as a REIT, the Company is subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed taxable income. In addition, taxable income from non-REIT activities managed through TRSs is subject to federal, state and local income taxes.

 

Reconciliation between GAAP Net Income and Federal Taxable Income

 

The following table reconciles GAAP net income to taxable income for the years ended December 31, 2023, 2022 and 2021 (in thousands):

 

  

2023

  

2022

  

2021

 
  

(Estimated)

  

(Actual)

  

(Actual)

 

GAAP net income attributable to the Company

 $654,273  $125,976  $844,059 

GAAP net income attributable to TRSs

  (64)  (5,042)  (23,365)

GAAP net income from REIT operations (1)

  654,209   120,934   820,694 

Federal income taxes

  50,661   47,328   - 

Net book depreciation in excess of tax depreciation

  95,468   120,446   77,951 

Deferred/prepaid/above-market and below-market rents, net

  (31,982)  (38,479)  (31,666)

Fair market value debt amortization

  (21,053)  (38,303)  (17,961)

Book/tax differences from executive compensation

  31,169   23,248   19,882 

Book/tax differences from equity awards

  (7,157)  (7,846)  (3,714)

Book/tax differences from defined benefit plan

  2,948   -   (2,948)

Book/tax differences from investments in and advances to real estate joint ventures

  27,163   11,736   16,030 

Book/tax differences from sale of properties

  177,772   217,797   (50,955)

Book/tax differences from accounts receivable

  (4,284)  (8,430)  (17,707)

Book adjustment to property carrying values and marketable equity securities

  (24,275)  335,199   (503,847)

Taxable currency exchange (loss)/gain, net

  (2,446)  198   1,945 

Tangible property regulation deduction

  (65,000)  (61,492)  - 

GAAP change in ownership of joint venture interests

  (7,574)  45,767   (5,607)

Dividends from TRSs

  -   243   23,314 

Severance accrual

  (573)  (2,065)  (5,608)

Other book/tax differences, net (2)

  7,803   2,115   (20,299)

Adjusted REIT taxable income (3)

 $882,849  $768,396  $299,504 

 

Certain amounts in the prior periods have been reclassified to conform to the current year presentation in the table above.

 

(1)

All adjustments to "GAAP net income from REIT operations" are net of amounts attributable to noncontrolling interests and TRSs.

(2)

Includes merger related book/tax differences of $4.8 million and ($20.7) million for the years ended December 31, 2023 and 2021, respectively.

(3)Includes a long term capital gain of $241.2 million and $251.5 million for the years ended December 31, 2023 and 2022, respectively, for which the Company elected to pay the associated corporate income taxes.

 

103

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

Characterization of Distributions

 

The following characterizes distributions paid for tax purposes for the years ended December 31, 2023, 2022 and 2021, (amounts in thousands):

 

  

2023

  

2022

  

2021

 

Preferred L Dividends

                        

Ordinary income

 $11,432   100% $9,657   84% $11,185   97%

Capital gain

  -   -   1,839   16%  346   3%
  $11,432   100% $11,496   100% $11,531   100%

Preferred M Dividends

                        

Ordinary income

 $13,749   100% $11,615   84% $13,469   97%

Capital gain

  -   -   2,212   16%  417   3%
  $13,749   100% $13,827   100% $13,886   100%

Common Dividends

                        

Ordinary income

 $622,885   99% $418,725   81% $273,272   77%

Capital gain

  -   -   82,711   16%  10,647   3%

Return of capital

  6,292   1%  15,508   3%  70,980   20%
  $629,177   100% $516,944   100% $354,899   100%

Total dividends distributed for tax purposes

 $654,358      $542,267      $380,316     

 

For the years ended December 31, 2023 and 2022, the Company elected to retain the proceeds from the sale of ACI stock for general corporate purposes in lieu of distributing to its shareholders. This undistributed long-term capital gain is allocated to, and reportable by, each shareholder, and each shareholder is also entitled to claim a federal income tax credit for its allocable share of the federal income tax paid by the Company. The allocable share of the long-term capital gain and the federal tax credit will be reported to direct holders of Kimco common shares, on Form 2439, and to others in year-end reporting documents issued by brokerage firms if Kimco shares are held in a brokerage account. For the year ended December 31, 2021, cash dividends paid for tax purposes were equivalent to, or in excess of, taxable income.

 

Taxable REIT Subsidiaries and Taxable Entities

 

The Company is subject to federal, state and local income taxes on income reported through its TRS activities, which include wholly owned subsidiaries of the Company. The Company’s TRSs include Kimco Realty Services II, Inc., FNC Realty Corporation, Kimco Insurance Company, Weingarten Investments Inc. and the consolidated entity, Blue Ridge Real Estate Company/Big Boulder Corporation.

 

Income taxes are accounted for under the asset and liability method. Deferred income taxes are recognized for the temporary differences between the financial reporting basis and the tax basis of taxable assets and liabilities. The Company’s (provision)/benefit for income taxes relating to the Company for the years ended December 31, 2023, 2022 and 2021, are summarized as follows (in thousands):

 

  

2023

  

2022

  

2021

 

TRSs and taxable entities

 $(83) $533  $(3,380)

REIT (1)

  (60,869)  (57,187)  - 

Total tax provision

 $(60,952) $(56,654) $(3,380)

 

 

(1)

During 2023 and 2022, the Company sold shares of ACI common stock and recognized long-term capital gains for tax purposes of $241.2 million and $251.5 million, respectively. The Company elected to retain the proceeds from these stock sales for general corporate purposes and pay corporate income tax on the taxable gains. During 2023, the Company incurred federal taxes of $50.7 million and state and local taxes of $10.2 million. During 2022, the Company incurred federal taxes of $47.3 million and state and local taxes of $9.9 million. This undistributed long-term capital gain is allocated to, and reportable by, each shareholder, and each shareholder is also entitled to claim a federal income tax credit for its allocable share of the federal income tax paid by the Company. The allocable share of the long-term capital gain and the federal tax credit will be reported to direct holders of Kimco common stock, on Form 2439, and to others in year-end reporting documents issued by brokerage firms if the Company’s common stock is held in a brokerage account.

 

104

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

Deferred Tax Assets, Liabilities and Valuation Allowances

 

The Company’s deferred tax assets and liabilities at December 31, 2023 and 2022, were as follows (in thousands):

 

  

2023

  

2022

 

Deferred tax assets:

        

Tax/GAAP basis differences

 $3,293  $4,165 

Net operating losses (1)

  4,463   1,836 

Valuation allowance

  (3,776)  - 

Total deferred tax assets

  3,980   6,001 

Deferred tax liabilities

  (5,843)  (6,551)

Net deferred tax liabilities

 $(1,863) $(550)

 

 

(1)

Net operating losses do not expire.

 

The major differences between the GAAP basis of accounting and the basis of accounting used for federal and state income tax reporting consist of depreciation and amortization, impairment charges recorded for GAAP purposes, but not recognized for tax purposes, rental revenue recognized on the straight-line method for GAAP, reserves for doubtful accounts, above-market and below-market lease amortization, differences in GAAP and tax basis of assets sold, and the period in which certain gains were recognized for tax purposes, but not yet recognized under GAAP.

 

Deferred tax assets and deferred tax liabilities are included in the captions Other assets and Other liabilities on the Company’s Consolidated Balance Sheets at December 31, 2023 and 2022.

 

Under GAAP a reduction of the carrying amounts of deferred tax assets by a valuation allowance is required, if, based on the evidence available, it is more likely than not (a likelihood of more than 50%) that some portion or all of the deferred tax assets will not be realized. The valuation allowance should be sufficient to reduce the deferred tax asset to the amount that is more likely than not to be realized.

 

Uncertain Tax Positions

 

As of December 31, 2023 and 2022, the Company had no accrual for uncertain tax positions and related interest under the provisions of the authoritative guidance that addresses accounting for income taxes. The Company does not believe that the total amount of unrecognized tax benefits as of December 31, 2023, will significantly increase within the next 12 months.

 

25.  Captive Insurance Company:

 

In October 2007, the Company formed a wholly owned captive insurance company, KIC, which provides general liability insurance coverage for all losses below the deductible under the Company’s third-party liability insurance policy. The Company created KIC as part of its overall risk management program and to stabilize its insurance costs, manage exposure and recoup expenses through the functions of the captive program. The Company capitalized KIC in accordance with the applicable regulatory requirements. KIC established annual premiums based on projections derived from the past loss experience of the Company’s properties. KIC has engaged an independent third party to perform an actuarial estimate of future projected claims, related deductibles and projected expenses necessary to fund associated risk management programs. Premiums paid to KIC may be adjusted based on this estimate. Like premiums paid to third-party insurance companies, premiums paid to KIC may be reimbursed by tenants pursuant to specific lease terms. KIC assumes occurrence basis general liability coverage (not including casualty loss or business interruption) for the Company and its affiliates under the terms of a reinsurance agreement entered into by KIC and the reinsurance provider.

 

105

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

From October 1, 2007 through December 31, 2023, KIC assumes 100% of the first $250,000 per occurrence risk layer. This coverage is subject to annual aggregates ranging between $7.8 million and $14.2 million per policy year. The annual aggregate is adjustable based on the amount of audited square footage of the insureds’ locations and can be adjusted for subsequent program years. Defense costs erode the stated policy limits. KIC is required to pay the reinsurance provider for unallocated loss adjustment expenses an amount ranging between 8.0% and 12.2% of incurred losses for the policy periods ending September 30, 2008 through February 1, 2021. Beginning February 1, 2021 through February 1, 2025, ULAE is billed on a fee per claim basis ranging between $53 and $1,599 based on the claim type. These amounts do not erode the Company’s per occurrence or aggregate limits.

 

As of December 31, 2023, the Company maintained letters of credit in the amount of $24.7 million issued in favor of the reinsurance provider to provide security for the Company’s obligations under its agreements with the reinsurance providers.

 

Activity in the liability for unpaid losses and loss adjustment expenses for the years ended December 31, 2023 and 2022 is summarized as follows (in thousands):

 

  

2023

  

2022

 

Balance at the beginning of the year

 $20,202  $19,655 

Incurred related to:

        

Current year

  6,097   5,694 

Prior years (1)

  2,644   125 

Total incurred

  8,741   5,819 

Paid related to:

        

Current year

  (817)  (645)

Prior years

  (7,243)  (4,627)

Total paid

  (8,060)  (5,272)

Balance at the end of the year

 $20,883  $20,202 

 

(1)

Relates to changes in estimates in insured events in the prior years, incurred losses and loss adjustment expenses.

 

26.  Accumulated Other Comprehensive Income (AOCI):

 

The following table displays the change in the components of AOCI for the years ended December 31, 2023 and 2022 (in thousands):

 

  

Unrealized Gains

Related to Defined

Benefit Plan

  

Unrealized Gains

Related to Equity

Method Investments

  

Total

 

Balance as of January 1, 2023

 $10,581  $-  $10,581 

Other comprehensive income before reclassifications

  267   3,329   3,596 

Amounts reclassified from AOCI (1)

  (10,848)  -   (10,848)

Net current-period other comprehensive income

  (10,581)  3,329   (7,252)

Balance as of December 31, 2023

 $-  $3,329  $3,329 

 

 

(1)

Amounts are included in Other income, net on the Company’s Consolidated Statements of Income. See Footnote 23 of the Notes to Consolidated Financial Statements for defined benefit plan disclosure.

 

  

Unrealized Gains

Related to Defined

Benefit Plan

 

Balance as of January 1, 2022

 $2,216 

Other comprehensive income before reclassifications

  8,365 

Amounts reclassified from AOCI

  - 

Net current-period other comprehensive income

  8,365 

Balance as of December 31, 2022

 $10,581 

 

106

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
  
 

27.  Earnings Per Share:

 

The following table sets forth the reconciliation of earnings and the weighted-average number of shares used in the calculation of basic and diluted earnings per share (amounts presented in thousands, except per share data):

 

  

For the Year Ended December 31,

 
  

2023

  

2022

  

2021

 

Computation of Basic and Diluted Earnings Per Share:

            

Net income available to the Company's common shareholders

 $629,252  $100,758  $818,643 

Change in estimated redemption value of redeemable noncontrolling interests

  2,323   -   2,304 

Earnings attributable to participating securities

  (2,819)  (2,182)  (5,346)

Net income available to the Company’s common shareholders for basic earnings per share

  628,756   98,576   815,601 

Distributions on convertible units

  53   -   3,087 

Net income available to the Company’s common shareholders for diluted earnings per share

 $628,809  $98,576  $818,688 
             

Weighted average common shares outstanding – basic

  616,947   615,528   506,248 

Effect of dilutive securities (1):

            

Equity awards

  1,132   2,283   2,422 

Assumed conversion of convertible units

  120   47   2,715 

Weighted average common shares outstanding – diluted

  618,199   617,858   511,385 
             

Net income available to the Company's common shareholders:

            

Basic earnings per share

 $1.02  $0.16  $1.61 

Diluted earnings per share

 $1.02  $0.16  $1.60 

 

(1)

The effect of the assumed conversion of certain convertible units had an anti-dilutive effect upon the calculation of Net income available to the Company’s common shareholders per share. Accordingly, the impact of such conversions has not been included in the determination of diluted earnings per share calculations. Additionally, there were 0.3 million stock options that were not dilutive as of December 31, 2022.

 

The Company's unvested restricted share awards contain non-forfeitable rights to distributions or distribution equivalents. The impact of the unvested restricted share awards on earnings per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted share awards based on dividends declared and the unvested restricted shares' participation rights in undistributed earnings.

 

28.  Subsequent Events:

 

RPT Merger

 

On August 28, 2023, the Company and RPT announced that they had entered into a definitive merger agreement (the “Merger Agreement”) pursuant to which the Company would acquire RPT through a series of mergers (collectively the “RPT Merger”). On January 2, 2024, RPT merged with and into the Company, with the Company continuing as the surviving public company. The RPT Merger added 56 open-air shopping centers, 43 of which are wholly owned and 13 of which are owned through a joint venture, comprising 13.3 million square feet of GLA, to the Company’s existing portfolio of 523 properties. In addition, pursuant to the RPT Merger, the Company obtained RPT’s 6% stake in a 49-property net lease joint venture.

 

Under the terms of the Merger Agreement, each RPT common share was converted into 0.6049 of a newly issued share of the Company’s common stock, together with cash in lieu of fractional shares and each 7.25% Series D Cumulative Convertible Perpetual Preferred Share of RPT was converted into the right to receive one depositary share representing one one-thousandth of a share of Class N Preferred Stock of the Company having the rights, preferences and privileges substantially as set forth in the Merger Agreement, in each case, without interest, and subject to any withholding required under applicable law, upon the terms and subject to the conditions set forth in the Merger Agreement.

 

The provisional fair market value of the acquired properties will be based upon a valuation prepared by the Company with assistance of a third-party valuation specialist. The Company has engaged a valuation specialist and is in the process of preparing the valuation, including determining the inputs to be used by the third-party specialist in accordance with management’s policy. Therefore, the total consideration, including the purchase price and its allocation, are not yet complete as of this filing. Once the total consideration and purchase price and allocation are determined, any excess purchase price, which could differ materially, may result in the recognition of goodwill, the amount of which may be significant.

 

107

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
 

The number of RPT shares/units outstanding as of January 2, 2024, converted to shares of the Company’s shares/units were determined as follows (amounts presented in thousands, except per share data):

 

  

Common Shares (1)

  

OP Units (2)

  

Cumulative

Convertible Perpetual

Preferred Shares (3)

 

RPT shares/units outstanding as of January 2, 2024

  87,675   1,576   1,849 

Exchange ratio

  0.6049   0.6049   1.0000 

Kimco shares/units issued

  53,034   953   1,849 
             

Value of Kimco stock per share/unit

 $22.0005  $22.0005  $57.13 

Equity consideration given from Kimco shares/units issued

 $1,166,775  $20,975  $105,607 

 

 

(1)

The Company paid cash in lieu of issuing fractional Kimco common shares, which is included in “Cash Consideration” caption in the table below.

 (2)Upon consummation of the RPT Merger, the Parent Company owns 99.86% of the outstanding OP Units in Kimco OP, which is no longer a disregarded entity for federal income tax purposes.
 (3)The Company issued 1,849 shares of Class N Preferred Stock with a par value of $1.00 per share, represented by 1,848,539 depositary shares. The liquidation preference is $92.4 million ($50.00 per depositary share) and the shareholders are entitled to fixed annual dividends of $3.625 per depositary share.  The Class N Preferred Stock depositary shares are convertible at any time by the holders to 2.3071 of the Company’s common shares or under certain circumstances by the Company’s election.

 

The following table presents the total value of stock consideration paid by Kimco at the close of the RPT Merger (in thousands):

 

  

Calculated Value of

RPT Consideration

  

Cash

Consideration*

  

Total Value of

Consideration

 

As of January 2, 2024

 $1,293,357  $148,881  $1,442,238 

 

* Amount includes $130.0 million to pay off the outstanding balance on RPT’s credit facility at closing, additional consideration of approximately $18.9 million relating to transaction costs incurred by RPT and $0.1 million of cash paid in lieu of issuing fractional Kimco common shares.

 

In connection with the RPT Merger, the Company assumed $511.5 million of senior unsecured notes with maturities ranging from 2026 to 2031, which bore interest at rates ranging from 3.64% to 4.74%. The RPT Merger triggered a change in control and as such, in January 2024, the Company repaid these notes, including any accrued interest.

 

In addition, in connection with the RPT Merger, the Company assumed and amended $310.0 million of unsecured term loans, which were outstanding under RPT's Sixth Amended and Restated Credit Agreement ("RPT Credit Facility"). The term loans consist of the following tranches: (i) $50.0 million maturing in 2026, (ii) $100.0 million maturing in 2027, (iii) $50.0 million maturing in 2027 and (iv) $110.0 million maturing in 2028. The Company entered into a Seventh Amended and Restated Credit Agreement, through which the current term loans were terminated and new term loans were issued to replace the current loans. The new term loans retained the amounts and maturities of the current term loans, however the rates (Adjusted Term SOFR plus 0.905%) and covenants were revised to match those within the Company's Credit Facility. The rates fluctuate in accordance with changes in Kimco’s senior debt ratings. The Company entered into swap rate agreements with various lenders swapping the interest rates to fixed rates ranging from 4.674% to 4.875%.

 

Amended and Restated Limited Liability Company Agreement

 

On January 2, 2024, the Parent Company, as managing member of Kimco OP, entered into an amended and restated limited liability company agreement of Kimco OP (the “Amended and Restated Limited Liability Company Agreement”), providing for, among other things, the creation of Class N Preferred Units of Kimco OP, having the preferences, rights and limitations set forth therein, and certain modifications to the provisions regarding LTIP Units (as defined in the Amended and Restated Limited Liability Company Agreement), including provisions governing distribution and tax allocation requirements and the procedures for converting LTIP Units.

 

Notes Payable

 

On January 2, 2024, the Company entered into a new $200.0 million unsecured term loan credit facility pursuant to a credit agreement, among the Company, TD Bank, N.A., as administrative agent and the other parties thereto. This unsecured term loan accrues interest at a spread (currently 0.850%) to the Adjusted Term SOFR Rate (as defined in the credit agreement) or, at the Company’s option, a spread (currently 0.000%) to a base rate defined in the credit agreement, that in each case fluctuates in accordance with changes in the Company’s senior debt ratings. The covenants are similar to those in the Company’s Credit Facility, see Footnote 12 of the Notes to Consolidated Financial Statements.

 

In addition, in January 2024, the Company paid off the remaining $246.2 million of its 4.45% senior unsecured notes, which were scheduled to mature in January 2024.

 

Albertsons Companies, Inc.

 

In February 2024, the Company sold its remaining 14.2 million shares of ACI held by the Company, generating net proceeds of $299.1 million. For tax purposes, the Company will recognize a long-term capital gain of $288.7 million during the three months ended March 31, 2024. The Company anticipates retaining the proceeds from this stock sale for general corporate purposes and will incur estimated corporate taxes of $72.9 million on the taxable gain.

 

Common Stock and Preferred

 

During January 2024, the Company’s Board of Directors approved the extension of the Company’s common stock share repurchase program through February 28, 2026.  In addition, the Company’s Board of Directors authorized the repurchase of up to 891,000 depositary shares of Class L preferred stock, 1,047,000 depositary shares of Class M preferred stock, and 185,000 depositary shares of Class N preferred stock through February 28, 2026.

 

 

108

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
  
 
 
 
KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES
 
SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS
 

For the Years Ended December 31, 2023, 2022 and 2021

(in thousands)

 

  

Balance at

beginning of

period

  

Charged to

expenses

  

Adjustments to

valuation

accounts

  

Deductions

  

Balance at

end of

period

 

Year Ended December 31, 2023

                    

Allowance for uncollectable accounts (1)

 $6,982  $-  $-  $(2,454) $4,528 

Allowance for deferred tax asset

 $-  $-  $3,776  $-  $3,776 
                     

Year Ended December 31, 2022

                    

Allowance for uncollectable accounts (1)

 $8,339  $-  $-  $(1,357) $6,982 

Allowance for deferred tax asset

 $4,067  $-  $(4,067) $-  $- 
                     

Year Ended December 31, 2021

                    

Allowance for uncollectable accounts (1)

 $22,377  $-  $-  $(14,038) $8,339 

Allowance for deferred tax asset

 $36,957  $-  $(32,890) $-  $4,067 

 

(1)

Includes allowances on accounts receivable and straight-line rents.

 

109

  
 

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION

December 31, 2023

(in thousands)

 

   

INITIAL COST

  

COST CAPITALIZED

SUBSEQUENT

TO

     BUILDING           

TOTAL COST, NET OF

     

DATE OF

       

BUILDING AND

  ACQUISITION     

AND

      

ACCUMULATED

  

ACCUMULATED

  ENCUMBRANCES  

ACQUISITION(A)

DESCRIPTION

State

 

LAND

  

IMPROVEMENTS

  

(1)

 

LAND

  

IMPROVEMENTS

  

TOTAL

  

DEPRECIATION

  

DEPRECIATION

  

(2)

 

CONSTRUCTION(C)

SHOPPING CENTERS

                                      

ARCADIA BILTMORE PLAZA

AZ

 $850  $1,212  $68  $850  $1,280  $2,130  $286  $1,844  $- 

2021(A)

BELL CAMINO CENTER

AZ

  2,427   6,439   1,155   2,427   7,594   10,021   2,966   7,055   - 

2012(A)

BELL CAMINO-SAFEWAY PARCEL

AZ

  1,104   4,574   -   1,104   4,574   5,678   667   5,011   - 

2019(A)

BROADWAY MARKETPLACE

AZ

  3,517   10,303   529   3,518   10,830   14,348   1,537   12,811   - 

2021(A)

CAMELBACK MILLER PLAZA

AZ

  6,236   29,230   790   6,237   30,019   36,256   4,067   32,189   - 

2021(A)

CAMELBACK VILLAGE SQUARE

AZ

  -   13,038   427   -   13,465   13,465   1,917   11,548   - 

2021(A)

CHRISTOWN SPECTRUM

AZ

  33,831   91,004   24,078   76,639   72,274   148,913   21,138   127,775   - 

2015(A)

COLLEGE PARK SHOPPING CENTER

AZ

  3,277   7,741   923   3,277   8,663   11,940   3,569   8,371   - 

2011(A)

DESERT VILLAGE

AZ

  6,465   22,025   311   6,465   22,336   28,801   2,767   26,034   - 

2021(A)

ENTRADA DE ORO PLAZA

AZ

  5,700   11,044   (47)  5,700   10,997   16,697   1,521   15,176   - 

2021(A)

FOUNTAIN PLAZA

AZ

  4,794   20,373   79   4,794   20,453   25,247   1,929   23,318   - 

2021(A)

MADERA VILLAGE

AZ

  3,980   8,110   219   3,980   8,330   12,310   1,266   11,044   - 

2021(A)

MADISON VILLAGE MARKETPLACE

AZ

  4,090   18,343   167   4,090   18,510   22,600   2,004   20,596   - 

2021(A)

MESA RIVERVIEW

AZ

  15,000   -   143,883   308   158,574   158,882   78,144   80,738   - 

2005(C)

METRO SQUARE

AZ

  4,101   16,411   2,799   4,101   19,211   23,312   12,342   10,970   - 

1998(A)

MONTE VISTA VILLAGE CENTER

AZ

  4,064   8,344   (11)  4,064   8,333   12,397   1,050   11,347   - 

2021(A)

NORTH VALLEY

AZ

  6,862   18,201   15,177   4,796   35,444   40,240   9,261   30,979   - 

2011(A)

PLAZA AT MOUNTAINSIDE

AZ

  2,450   9,802   2,905   2,450   12,706   15,156   8,510   6,646   - 

1997(A)

PLAZA DEL SOL

AZ

  5,325   21,270   2,656   4,578   24,673   29,251   12,107   17,144   - 

1998(A)

PUEBLO ANOZIRA

AZ

  7,734   27,063   449   7,734   27,512   35,246   3,153   32,093   11,803 

2021(A)

RAINTREE RANCH CENTER

AZ

  7,720   30,743   (129)  7,720   30,614   38,334   3,113   35,221   - 

2021(A)

RED MOUNTAIN GATEWAY

AZ

  4,653   10,410   3,791   4,653   14,200   18,853   1,144   17,709   - 

2021(A)

SCOTTSDALE HORIZON

AZ

  8,191   36,728   1,693   8,191   38,421   46,612   3,861   42,751   - 

2021(A)

SCOTTSDALE WATERFRONT

AZ

  15,872   30,112   173   15,872   30,285   46,157   3,726   42,431   - 

2021(A)

SHOPPES AT BEARS PATH

AZ

  3,445   2,874   103   3,445   2,977   6,422   369   6,053   - 

2021(A)

SQUAW PEAK PLAZA

AZ

  2,515   17,021   71   2,515   17,092   19,607   2,011   17,596   - 

2021(A)

VILLAGE CROSSROADS

AZ

  5,663   24,981   1,794   5,663   26,774   32,437   9,129   23,308   - 

2011(A)

280 METRO CENTER

CA

  38,735   94,903   2,014   38,735   96,917   135,652   22,774   112,878   - 

2015(A)

580 MARKET PLACE

CA

  12,769   48,768   287   12,769   49,055   61,824   4,314   57,510   - 

2021(A)

8000 SUNSET STRIP S.C.

CA

  43,012   85,115   1,034   43,012   86,148   129,160   9,710   119,450   - 

2021(A)

AAA BUILDING AT STEVENS CREEK

CA

  1,661   3,114   -   1,661   3,114   4,775   333   4,442   - 

2021(A)

ANAHEIM PLAZA

CA

  34,228   73,765   6,169   34,228   79,934   114,162   10,398   103,764   - 

2021(A)

BLACK MOUNTAIN VILLAGE

CA

  4,678   11,913   2,241   4,678   14,154   18,832   6,344   12,488   - 

2007(A)

BROOKHURST CENTER

CA

  10,493   31,358   4,051   22,300   23,602   45,902   6,819   39,083   - 

2016(A)

BROOKVALE SHOPPING CENTER

CA

  14,050   19,771   1,241   14,050   21,011   35,061   2,905   32,156   - 

2021(A)

CAMBRIAN PARK PLAZA

CA

  41,258   2,015   2,298   41,258   4,313   45,571   810   44,761   - 

2021(A)

CENTERWOOD PLAZA

CA

  10,981   10,702   195   10,981   10,897   21,878   1,498   20,380   - 

2021(A)

CHICO CROSSROADS

CA

  9,976   30,535   (5,399)  7,905   27,207   35,112   12,329   22,783   - 

2008(A)

CHINO HILLS MARKETPLACE

CA

  17,702   72,529   967   17,702   73,496   91,198   8,045   83,153   - 

2021(A)

CITY HEIGHTS

CA

  10,687   28,325   (435)  13,909   24,668   38,577   7,030   31,547   - 

2012(A)

CORONA HILLS PLAZA

CA

  13,361   53,373   13,790   13,361   67,163   80,524   43,815   36,709   - 

1998(A)

COSTCO PLAZA - 541

CA

  4,996   19,983   (762)  4,996   19,221   24,217   12,714   11,503   - 

1998(A)

CREEKSIDE CENTER

CA

  3,871   11,563   2,696   5,154   12,975   18,129   2,404   15,725   - 

2016(A)

CROCKER RANCH

CA

  7,526   24,878   (107)  7,526   24,770   32,296   6,315   25,981   - 

2015(A)

CUPERTINO VILLAGE

CA

  19,886   46,535   27,949   19,886   74,484   94,370   27,845   66,525   - 

2006(A)

EL CAMINO PROMENADE

CA

  7,372   37,592   5,200   7,372   42,792   50,164   4,268   45,896   - 

2021(A)

FREEDOM CENTRE

CA

  8,933   18,622   125   8,933   18,746   27,679   2,637   25,042   - 

2021(A)

FULTON MARKET PLACE

CA

  2,966   6,921   16,928   6,280   20,535   26,815   6,679   20,136   - 

2005(A)

GATEWAY AT DONNER PASS

CA

  4,516   8,319   14,671   8,759   18,747   27,506   3,825   23,681   - 

2015(A)

GATEWAY PLAZA

CA

  18,372   65,851   (334)  18,372   65,516   83,888   6,197   77,691   23,363 

2021(A)

GREENHOUSE MARKETPLACE

CA

  10,976   27,721   101   10,976   27,822   38,798   3,590   35,208   - 

2021(A)

GREENHOUSE MARKETPLACE II

CA

  5,346   7,188   (227)  5,346   6,961   12,307   835   11,472   - 

2021(A)

HOME DEPOT PLAZA

CA

  4,592   18,345   1   4,592   18,345   22,937   12,207   10,730   - 

1998(A)

KENNETH HAHN PLAZA

CA

  4,115   7,661   (695)  -   11,082   11,082   5,405   5,677   - 

2010(A)

LA MIRADA THEATRE CENTER

CA

  8,817   35,260   46   6,889   37,234   44,123   24,286   19,837   - 

1998(A)

LA VERNE TOWN CENTER

CA

  8,414   23,856   13,176   16,362   29,084   45,446   8,823   36,623   - 

2014(A)

LABAND VILLAGE SHOPPING CENTER

CA

  5,600   13,289   (920)  5,607   12,362   17,969   7,202   10,767   - 

2008(A)

LAKEWOOD PLAZA

CA

  1,294   3,669   (1,265)  -   3,699   3,699   947   2,752   - 

2014(A)

LAKEWOOD VILLAGE

CA

  8,597   24,375   (182)  11,683   21,107   32,790   6,942   25,848   - 

2014(A)

LARWIN SQUARE SHOPPING CENTER

CA

  17,234   39,731   6,731   17,234   46,462   63,696   3,927   59,769   - 

2023(A)

LINCOLN HILLS TOWN CENTER

CA

  8,229   26,127   433   8,229   26,560   34,789   8,144   26,645   - 

2015(A)

LINDA MAR SHOPPING CENTER

CA

  16,549   37,521   5,284   16,549   42,805   59,354   13,027   46,327   - 

2014(A)

MADISON PLAZA

CA

  5,874   23,476   4,980   5,874   28,456   34,330   16,743   17,587   - 

1998(A)

MARINA VILLAGE

CA

  14,108   27,414   8,051   14,108   35,465   49,573   2,817   46,756   - 

2023(A)

NORTH COUNTY PLAZA

CA

  10,205   28,934   785   20,895   19,028   39,923   5,816   34,107   - 

2014(A)

NOVATO FAIR S.C.

CA

  9,260   15,600   2,244   9,260   17,844   27,104   8,465   18,639   - 

2009(A)

ON THE CORNER AT STEVENS CREEK

CA

  1,825   4,641   2   1,825   4,642   6,467   464   6,003   - 

2021(A)

PLAZA DI NORTHRIDGE

CA

  12,900   40,575   1,798   12,900   42,373   55,273   19,185   36,088   - 

2005(A)

POWAY CITY CENTRE

CA

  5,855   13,792   9,252   7,248   21,652   28,900   11,734   17,166   - 

2005(A)

RANCHO PENASQUITOS TOWNE CTR I

CA

  14,852   20,342   808   14,852   21,150   36,002   5,622   30,380   - 

2015(A)

RANCHO PENASQUITOS TWN CTR II

CA

  12,945   20,324   860   12,945   21,183   34,128   5,536   28,592   - 

2015(A)

RANCHO PENASQUITOS-VONS PROP.

CA

  2,918   9,146   -   2,918   9,146   12,064   1,241   10,823   - 

2019(A)

RANCHO SAN MARCOS VILLAGE

CA

  9,050   29,357   6,926   9,483   35,850   45,333   2,777   42,556   - 

2021(A)

REDWOOD CITY PLAZA

CA

  2,552   6,215   5,901   2,552   12,116   14,668   3,744   10,924   - 

2009(A)

SAN DIEGO CARMEL MOUNTAIN

CA

  5,323   8,874   (1,898)  5,323   6,976   12,299   2,719   9,580   - 

2009(A)

SAN MARCOS PLAZA

CA

  1,883   12,044   3,074   1,883   15,118   17,001   1,124   15,877   - 

2021(A)

SANTEE TROLLEY SQUARE

CA

  40,209   62,964   309   40,209   63,274   103,483   23,003   80,480   - 

2015(A)

SILVER CREEK PLAZA

CA

  33,541   53,176   246   33,541   53,423   86,964   5,533   81,431   - 

2021(A)

SOUTH NAPA MARKET PLACE

CA

  1,100   22,159   21,848   23,119   21,988   45,107   14,220   30,887   - 

2006(A)

SOUTHAMPTON CENTER

CA

  10,289   64,096   195   10,289   64,291   74,580   6,112   68,468   20,053 

2021(A)

STANFORD RANCH

CA

  10,584   30,007   3,166   9,983   33,774   43,757   8,690   35,067   - 

2014(A)

STEVENS CREEK CENTRAL S.C.

CA

  41,818   45,886   540   41,818   46,427   88,245   5,891   82,354   - 

2021(A)

STONY POINT PLAZA

CA

  10,361   38,054   (229)  10,361   37,824   48,185   3,922   44,263   - 

2021(A)

TRUCKEE CROSSROADS

CA

  2,140   28,325   (18,609)  2,140   9,716   11,856   6,387   5,469   - 

2006(A)

TUSTIN HEIGHTS SHOPPING CENTER

CA

  16,745   30,953   5,880   16,745   36,834   53,579   2,214   51,365   - 

2023(A)

WESTLAKE SHOPPING CENTER

CA

  16,174   64,819   116,460   16,174   181,279   197,453   77,758   119,695   - 

2002(A)

WESTMINSTER CENTER

CA

  60,428   64,973   907   60,428   65,880   126,308   10,475   115,833   48,075 

2021(A)

WHITTWOOD TOWN CENTER

CA

  57,136   105,815   4,780   57,139   110,591   167,730   27,690   140,040   - 

2017(A)

CROSSING AT STONEGATE

CO

  11,909   33,111   231   11,909   33,343   45,252   3,471   41,781   - 

2021(A)

DENVER WEST 38TH STREET

CO

  161   647   332   161   979   1,140   761   379   - 

1998(A)

EAST BANK S.C.

CO

  1,501   6,180   8,417   1,501   14,597   16,098   5,448   10,650   - 

1998(A)

EDGEWATER MARKETPLACE

CO

  7,807   32,706   537   7,807   33,243   41,050   3,217   37,833   - 

2021(A)

ENGLEWOOD PLAZA

CO

  806   3,233   1,081   806   4,314   5,120   2,678   2,442   - 

1998(A)

GREELEY COMMONS

CO

  3,313   20,070   4,467   3,313   24,536   27,849   7,488   20,361   - 

2012(A)

HERITAGE WEST S.C.

CO

  1,527   6,124   2,856   1,527   8,979   10,506   5,560   4,946   - 

1998(A)

HIGHLANDS RANCH II

CO

  3,515   11,756   1,515   3,515   13,271   16,786   4,465   12,321   - 

2013(A)

HIGHLANDS RANCH VILLAGE S.C.

CO

  8,135   21,580   1,212   5,337   25,591   30,928   7,455   23,473   - 

2011(A)

LOWRY TOWN CENTER

CO

  3,271   32,685   858   3,271   33,543   36,814   3,085   33,729   - 

2021(A)

MARKET AT SOUTHPARK

CO

  9,783   20,780   6,256   9,783   27,035   36,818   8,412   28,406   - 

2011(A)

NORTHRIDGE SHOPPING CENTER

CO

  4,933   16,496   4,389   8,934   16,883   25,817   8,357   17,460   - 

2013(A)

QUINCY PLACE S.C.

CO

  1,148   4,608   3,081   1,148   7,689   8,837   4,826   4,011   - 

1998(A)

RIVER POINT AT SHERIDAN

CO

  13,223   30,444   1,390   12,331   32,726   45,057   6,156   38,901   - 

2021(A)

RIVER POINT AT SHERIDAN II

CO

  1,255   4,231   -   1,255   4,231   5,486   487   4,999   - 

2021(A)

VILLAGE CENTER - HIGHLAND RANCH

CO

  1,140   2,660   284   1,140   2,944   4,084   757   3,327   - 

2014(A)

VILLAGE CENTER WEST

CO

  2,011   8,361   826   2,011   9,186   11,197   2,496   8,701   - 

2011(A)

VILLAGE ON THE PARK

CO

  2,194   8,886   20,019   3,018   28,081   31,099   9,384   21,715   - 

1998(A)

BRIGHT HORIZONS

CT

  1,212   4,611   128   1,212   4,740   5,952   1,713   4,239   - 

2012(A)

HAMDEN MART

CT

  13,668   40,890   6,784   14,226   47,116   61,342   13,565   47,777   17,580 

2016(A)

HOME DEPOT PLAZA

CT

  7,705   30,798   4,206   7,705   35,004   42,709   22,022   20,687   - 

1998(A)

NEWTOWN S.C.

CT

  -   15,635   425   -   16,059   16,059   3,835   12,224   - 

2014(A)

WEST FARM SHOPPING CENTER

CT

  5,806   23,348   20,688   7,585   42,257   49,842   23,677   26,165   - 

1998(A)

WILTON CAMPUS

CT

  10,169   31,893   2,845   10,169   34,739   44,908   10,666   34,242   - 

2013(A)

WILTON RIVER PARK SHOPPING CTR

CT

  7,155   27,509   1,264   7,155   28,772   35,927   8,680   27,247   - 

2012(A)

BRANDYWINE COMMONS

DE

  -   36,057   (548)  -   35,509   35,509   9,785   25,724   - 

2014(A)

ARGYLE VILLAGE

FL

  5,228   36,814   294   5,228   37,108   42,336   5,113   37,223   - 

2021(A)

BELMART PLAZA

FL

  1,656   3,394   5,818   1,656   9,212   10,868   2,306   8,562   - 

2014(A)

BOCA LYONS PLAZA

FL

  13,280   37,751   309   13,280   38,061   51,341   3,796   47,545   - 

2021(A)

CAMINO SQUARE

FL

  574   2,296   (395)  734   1,742   2,476   39   2,437   - 

1992(A)

CARROLLWOOD COMMONS

FL

  5,220   16,884   4,765   5,220   21,649   26,869   13,162   13,707   - 

1997(A)

CENTER AT MISSOURI AVENUE

FL

  294   792   6,973   294   7,765   8,059   2,657   5,402   - 

1968(C)

CHEVRON OUTPARCEL

FL

  531   1,253   -   531   1,253   1,784   487   1,297   - 

2010(A)

COLONIAL PLAZA

FL

  25,516   54,604   5,782   25,516   60,385   85,901   8,975   76,926   - 

2021(A)

CORAL POINTE S.C.

FL

  2,412   20,508   1,015   2,412   21,523   23,935   5,307   18,628   - 

2015(A)

CORAL SQUARE PROMENADE

FL

  710   2,843   4,212   710   7,054   7,764   5,005   2,759   - 

1994(A)

CORSICA SQUARE S.C.

FL

  7,225   10,757   354   7,225   11,111   18,336   3,185   15,151   - 

2015(A)

COUNTRYSIDE CENTRE

FL

  11,116   41,581   1,662   11,116   43,243   54,359   5,170   49,189   - 

2021(A)

CURLEW CROSSING SHOPPING CTR

FL

  5,316   12,529   1,003   3,312   15,536   18,848   8,151   10,697   - 

2005(A)

DANIA POINTE

FL

  105,113   -   35,582   26,094   114,600   140,694   12,789   127,905   - 

2016(C)

DANIA POINTE - PHASE II (3)

FL

  -   -   273,761   26,715   247,046   273,761   19,551   254,210   - 

2016(C)

EMBASSY LAKES

FL

  6,565   18,104   694   6,565   18,797   25,362   1,705   23,657   - 

2021(A)

FLAGLER PARK

FL

  26,163   80,737   6,379   26,725   86,554   113,279   33,786   79,493   - 

2007(A)

FT LAUDERDALE #1, FL

FL

  1,003   2,602   18,506   1,774   20,337   22,111   13,102   9,009   - 

1974(C)

FT. LAUDERDALE/CYPRESS CREEK

FL

  14,259   28,042   4,384   14,259   32,425   46,684   14,403   32,281   - 

2009(A)

GRAND OAKS VILLAGE

FL

  7,409   19,654   675   5,846   21,892   27,738   6,839   20,899   - 

2011(A)

GROVE GATE S.C.

FL

  366   1,049   793   366   1,842   2,208   1,699   509   - 

1968(C)

IVES DAIRY CROSSING

FL

  733   4,080   11,713   721   15,806   16,527   11,307   5,220   - 

1985(A)

KENDALE LAKES PLAZA

FL

  18,491   28,496   (377)  15,362   31,248   46,610   11,907   34,703   - 

2009(A)

LARGO PLAZA

FL

  23,571   63,604   137   23,571   63,742   87,313   7,956   79,357   - 

2021(A)

MAPLEWOOD PLAZA

FL

  1,649   6,626   2,104   1,649   8,729   10,378   5,689   4,689   - 

1997(A)

MARATHON SHOPPING CENTER

FL

  2,413   8,069   3,525   1,515   12,491   14,006   2,685   11,321   - 

2013(A)

MERCHANTS WALK

FL

  2,581   10,366   11,137   2,581   21,503   24,084   13,163   10,921   - 

2001(A)

MILLENIA PLAZA PHASE II

FL

  7,711   20,703   6,031   7,698   26,748   34,446   11,942   22,504   - 

2009(A)

MILLER ROAD S.C.

FL

  1,138   4,552   4,736   1,138   9,288   10,426   6,569   3,857   - 

1986(A)

MILLER WEST PLAZA

FL

  6,726   10,661   396   6,726   11,057   17,783   2,995   14,788   - 

2015(A)

MISSION BELL SHOPPING CENTER

FL

  5,056   11,843   8,816   5,067   20,648   25,715   9,244   16,471   - 

2004(A)

NASA PLAZA

FL

  -   1,754   5,313   -   7,067   7,067   4,944   2,123   - 

1968(C)

OAK TREE PLAZA

FL

  -   917   2,526   -   3,443   3,443   2,998   445   - 

1968(C)

OAKWOOD BUSINESS CTR-BLDG 1

FL

  6,793   18,663   4,325   6,793   22,988   29,781   9,701   20,080   - 

2009(A)

OAKWOOD PLAZA NORTH

FL

  35,301   141,731   2,930   35,301   144,661   179,962   30,423   149,539   - 

2016(A)

OAKWOOD PLAZA SOUTH

FL

  11,127   40,592   73   11,127   40,665   51,792   9,371   42,421   - 

2016(A)

PALMS AT TOWN & COUNTRY

FL

  30,137   94,674   2,345   30,137   97,019   127,156   10,313   116,843   - 

2021(A)

PALMS AT TOWN & COUNTRY LIFESTYLE

FL

  26,597   92,088   611   26,597   92,699   119,296   9,901   109,395   - 

2021(A)

PARK HILL PLAZA

FL

  10,764   19,264   1,826   10,764   21,089   31,853   6,694   25,159   - 

2011(A)

PHILLIPS CROSSING

FL

  -   53,536   460   -   53,996   53,996   6,248   47,748   - 

2021(A)

PLANTATION CROSSING

FL

  2,782   8,077   3,345   2,782   11,423   14,205   2,523   11,682   - 

2017(A)

POMPANO POINTE S.C.

FL

  10,517   14,356   641   10,517   14,997   25,514   3,279   22,235   - 

2012(A)

RENAISSANCE CENTER

FL

  9,104   36,541   14,853   9,123   51,374   60,497   27,234   33,263   - 

1998(A)

RIVERPLACE SHOPPING CTR.

FL

  7,503   31,011   3,290   7,200   34,604   41,804   13,796   28,008   - 

2010(A)

RIVERSIDE LANDINGS S.C.

FL

  3,512   14,440   838   3,512   15,278   18,790   3,809   14,981   - 

2015(A)

SEA RANCH CENTRE

FL

  3,298   21,259   340   3,298   21,598   24,896   2,324   22,572   - 

2021(A)

SHOPPES AT DEERFIELD

FL

  19,069   69,485   (43)  19,069   69,441   88,510   7,812   80,698   - 

2021(A)

SHOPPES AT DEERFIELD II

FL

  788   6,388   10   788   6,397   7,185   609   6,576   - 

2021(A)

SHOPS AT SANTA BARBARA PHASE 1

FL

  743   5,374   242   743   5,616   6,359   1,459   4,900   - 

2015(A)

SHOPS AT SANTA BARBARA PHASE 2

FL

  332   2,489   46   332   2,535   2,867   657   2,210   - 

2015(A)

SHOPS AT SANTA BARBARA PHASE 3

FL

  330   2,359   118   330   2,476   2,806   574   2,232   - 

2015(A)

SODO S.C.

FL

  -   68,139   6,562   142   74,559   74,701   27,766   46,935   - 

2008(A)

SOUTH MIAMI S.C.

FL

  1,280   5,134   5,120   1,280   10,254   11,534   6,034   5,500   - 

1995(A)

SUNSET 19 S.C.

FL

  12,460   55,354   108   12,460   55,462   67,922   6,373   61,549   - 

2021(A)

TJ MAXX PLAZA

FL

  10,341   38,660   195   10,341   38,855   49,196   4,152   45,044   - 

2021(A)

TRI-CITY PLAZA

FL

  2,832   11,329   24,300   2,832   35,629   38,461   10,219   28,242   - 

1992(A)

TUTTLEBEE PLAZA

FL

  255   828   2,910   255   3,738   3,993   2,551   1,442   - 

2008(A)

UNIVERSITY TOWN CENTER

FL

  5,515   13,041   579   5,515   13,621   19,136   5,136   14,000   - 

2011(A)

VILLAGE COMMONS S.C.

FL

  2,026   5,106   2,032   2,026   7,138   9,164   2,422   6,742   - 

2013(A)

VILLAGE COMMONS SHOPPING CENTER

FL

  2,192   8,774   7,950   2,192   16,724   18,916   8,768   10,148   - 

1998(A)

VILLAGE GREEN CENTER

FL

  11,405   13,466   140   11,405   13,607   25,012   2,160   22,852   16,852 

2021(A)

VIZCAYA SQUARE

FL

  5,773   20,965   252   5,773   21,217   26,990   2,430   24,560   - 

2021(A)

WELLINGTON GREEN COMMONS

FL

  19,528   32,521   85   19,528   32,605   52,133   3,831   48,302   14,598 

2021(A)

WELLINGTON GREEN PAD SITES

FL

  3,854   1,777   3,046   3,854   4,823   8,677   383   8,294   - 

2021(A)

WINN DIXIE-MIAMI

FL

  2,990   9,410   (52)  3,544   8,804   12,348   2,214   10,134   - 

2013(A)

WINTER PARK CORNERS

FL

  5,191   42,530   151   5,191   42,681   47,872   3,833   44,039   - 

2021(A)

BRAELINN VILLAGE

GA

  7,315   20,739   19   3,731   24,342   28,073   6,665   21,408   - 

2014(A)

BROWNSVILLE COMMONS

GA

  593   5,488   (12)  593   5,475   6,068   611   5,457   - 

2021(A)

CAMP CREEK MARKETPLACE II

GA

  4,441   38,596   212   4,441   38,808   43,249   4,045   39,204   - 

2021(A)

EMBRY VILLAGE

GA

  18,147   33,010   4,714   18,161   37,710   55,871   25,553   30,318   - 

2008(A)

GRAYSON COMMONS

GA

  2,600   13,358   4   2,600   13,362   15,962   1,653   14,309   - 

2021(A)

LAKESIDE MARKETPLACE

GA

  2,238   28,579   1,251   2,238   29,830   32,068   2,969   29,099   - 

2021(A)

LAWRENCEVILLE MARKET

GA

  8,878   29,691   1,695   9,060   31,204   40,264   10,828   29,436   - 

2013(A)

MARKET AT HAYNES BRIDGE

GA

  4,881   21,549   3,249   4,890   24,788   29,678   10,353   19,325   - 

2008(A)

PERIMETER EXPO PROPERTY

GA

  14,770   44,295   2,582   16,142   45,506   61,648   11,302   50,346   - 

2016(A)

PERIMETER VILLAGE

GA

  5,418   67,522   (215)  5,418   67,307   72,725   7,224   65,501   25,828 

2021(A)

RIVERWALK MARKETPLACE

GA

  3,512   18,863   403   3,388   19,390   22,778   4,463   18,315   - 

2015(A)

ROSWELL CORNERS

GA

  4,536   47,054   702   4,536   47,756   52,292   4,447   47,845   - 

2021(A)

ROSWELL CROSSING

GA

  6,270   45,338   297   6,270   45,635   51,905   4,796   47,109   - 

2021(A)

CLIVE PLAZA

IA

  501   2,002   -   501   2,002   2,503   1,433   1,070   - 

1996(A)

HAWTHORN HILLS SQUARE

IL

  6,784   33,034   3,652   6,784   36,687   43,471   14,164   29,307   - 

2012(A)

PLAZA DEL PRADO

IL

  10,204   28,410   1,670   10,172   30,113   40,285   7,282   33,003   - 

2017(A)

SKOKIE POINTE

IL

  -   2,276   9,794   2,628   9,442   12,070   5,472   6,598   - 

1997(A)

GREENWOOD S.C.

IN

  423   1,883   21,522   1,641   22,187   23,828   6,142   17,686   - 

1970(C)

FESTIVAL ON JEFFERSON COURT

KY

  5,627   26,790   349   5,627   27,139   32,766   3,761   29,005   - 

2021(A)

ADAMS PLAZA

MA

  2,089   3,227   251   2,089   3,478   5,567   1,008   4,559   - 

2014(A)

BROADWAY PLAZA

MA

  6,485   343   -   6,485   343   6,828   244   6,584   - 

2014(A)

FALMOUTH PLAZA

MA

  2,361   13,066   2,012   2,361   15,078   17,439   3,692   13,747   - 

2014(A)

FELLSWAY PLAZA

MA

  5,300   11,014   1,304   5,300   12,319   17,619   3,556   14,063   - 

2014(A)

FESTIVAL OF HYANNIS S.C.

MA

  15,038   40,683   2,936   15,038   43,618   58,656   12,924   45,732   - 

2014(A)

GLENDALE SQUARE

MA

  4,699   7,141   741   4,699   7,882   12,581   2,237   10,344   - 

2014(A)

LINDEN PLAZA

MA

  4,628   3,535   701   4,628   4,235   8,863   1,922   6,941   - 

2014(A)

MAIN ST. PLAZA

MA

  556   2,139   (33)  523   2,139   2,662   781   1,881   - 

2014(A)

MEMORIAL PLAZA

MA

  16,411   27,554   1,333   16,411   28,887   45,298   6,888   38,410   - 

2014(A)

MILL ST. PLAZA

MA

  4,195   6,203   1,445   4,195   7,647   11,842   1,929   9,913   - 

2014(A)

MORRISSEY PLAZA

MA

  4,097   3,751   2,761   4,097   6,512   10,609   943   9,666   - 

2014(A)

NORTH AVE. PLAZA

MA

  1,164   1,195   302   1,164   1,497   2,661   489   2,172   - 

2014(A)

NORTH QUINCY PLAZA

MA

  6,333   17,954   (102)  3,894   20,291   24,185   4,889   19,296   - 

2014(A)

PARADISE PLAZA

MA

  4,183   12,195   1,281   4,183   13,476   17,659   4,086   13,573   - 

2014(A)

VINNIN SQUARE IN-LINE

MA

  582   2,095   28   582   2,123   2,705   488   2,217   - 

2014(A)

VINNIN SQUARE PLAZA

MA

  5,545   16,324   569   5,545   16,893   22,438   5,632   16,806   - 

2014(A)

WASHINGTON ST. PLAZA

MA

  11,008   5,652   10,543   12,958   14,245   27,203   4,913   22,290   - 

2014(A)

WASHINGTON ST. S.C.

MA

  7,381   9,987   3,388   7,381   13,374   20,755   3,412   17,343   - 

2014(A)

WAVERLY PLAZA

MA

  1,215   3,623   1,174   1,203   4,810   6,013   1,225   4,788   - 

2014(A)

CENTRE COURT-GIANT

MD

  3,854   12,770   128   3,854   12,898   16,752   4,573   12,179   2,935 

2011(A)

CENTRE COURT-OLD COURT/COURTYD

MD

  2,279   5,285   96   2,279   5,381   7,660   1,681   5,979   - 

2011(A)

CENTRE COURT-RETAIL/BANK

MD

  1,035   7,786   892   1,035   8,678   9,713   2,489   7,224   181 

2011(A)

COLUMBIA CROSSING

MD

  3,613   34,345   3,689   3,613   38,035   41,648   8,457   33,191   - 

2015(A)

COLUMBIA CROSSING II SHOP.CTR.

MD

  3,138   19,868   4,614   3,138   24,482   27,620   6,480   21,140   - 

2013(A)

COLUMBIA CROSSING OUTPARCELS

MD

  1,279   2,871   49,620   14,854   38,916   53,770   6,913   46,857   - 

2011(A)

DORSEY'S SEARCH VILLAGE CENTER

MD

  6,322   27,996   1,093   6,322   29,089   35,411   6,620   28,791   - 

2015(A)

ENCHANTED FOREST S.C.

MD

  20,124   34,345   2,114   20,124   36,459   56,583   9,522   47,061   - 

2014(A)

FULLERTON PLAZA

MD

  14,238   6,744   16,672   14,238   23,416   37,654   4,342   33,312   - 

2014(A)

GAITHERSBURG S.C.

MD

  245   6,788   2,051   245   8,839   9,084   5,437   3,647   - 

1999(A)

GREENBRIER S.C.

MD

  8,891   30,305   1,247   8,891   31,552   40,443   8,176   32,267   - 

2014(A)

HARPER'S CHOICE

MD

  8,429   18,374   2,071   8,429   20,445   28,874   5,217   23,657   - 

2015(A)

HICKORY RIDGE

MD

  7,184   26,948   1,405   7,184   28,354   35,538   6,115   29,423   - 

2015(A)

HICKORY RIDGE (SUNOCO)

MD

  543   2,122   -   543   2,122   2,665   567   2,098   - 

2015(A)

INGLESIDE S.C.

MD

  10,417   17,889   1,013   10,417   18,902   29,319   5,175   24,144   - 

2014(A)

KENTLANDS MARKET SQUARE

MD

  20,167   84,615   19,921   20,167   104,536   124,703   19,110   105,593   - 

2016(A)

KINGS CONTRIVANCE

MD

  9,308   31,760   1,768   9,308   33,527   42,835   9,690   33,145   - 

2014(A)

LAUREL PLAZA

MD

  350   1,398   6,745   1,571   6,921   8,492   3,580   4,912   - 

1995(A)

LAUREL PLAZA

MD

  275   1,101   174   275   1,275   1,550   1,275   275   - 

1972(C)

MILL STATION DEVELOPMENT

MD

  21,321   -   69,798   16,103   75,016   91,119   6,050   85,069   - 

2015(C)

MILL STATION THEATER/RSTRNTS

MD

  23,379   1,090   (3,531)  14,738   6,200   20,938   2,279   18,659   - 

2016(C)

PIKE CENTER

MD

  -   61,389   22,134   21,849   61,674   83,523   4,846   78,677   - 

2021(A)

PUTTY HILL PLAZA

MD

  4,192   11,112   1,322   4,192   12,434   16,626   4,408   12,218   - 

2013(A)

RADCLIFFE CENTER

MD

  12,043   21,188   163   12,043   21,351   33,394   6,410   26,984   - 

2014(A)

RIVERHILL VILLAGE CENTER

MD

  16,825   23,282   1,192   16,825   24,473   41,298   7,326   33,972   - 

2014(A)

SHAWAN PLAZA

MD

  4,466   20,222   (33)  4,466   20,188   24,654   14,319   10,335   - 

2008(A)

SHOPS AT DISTRICT HEIGHTS

MD

  8,166   21,971   (1,412)  7,298   21,427   28,725   4,543   24,182   - 

2015(A)

SNOWDEN SQUARE S.C.

MD

  1,929   4,558   5,155   3,326   8,316   11,642   2,673   8,969   - 

2012(A)

TIMONIUM CROSSING

MD

  2,525   14,863   1,304   2,525   16,167   18,692   3,817   14,875   - 

2014(A)

TIMONIUM SQUARE

MD

  6,000   24,283   13,360   7,311   36,332   43,643   19,845   23,798   - 

2003(A)

TOWSON PLACE

MD

  43,887   101,765   7,879   43,271   110,260   153,531   33,638   119,893   - 

2012(A)

VILLAGES AT URBANA

MD

  3,190   6   20,609   4,829   18,976   23,805   4,686   19,119   - 

2003(A)

WILDE LAKE

MD

  1,468   5,870   26,747   2,577   31,508   34,085   13,695   20,390   - 

2002(A)

WILKENS BELTWAY PLAZA

MD

  9,948   22,126   2,652   9,948   24,778   34,726   6,036   28,690   - 

2014(A)

YORK ROAD PLAZA

MD

  4,277   37,206   485   4,277   37,690   41,967   8,998   32,969   - 

2014(A)

THE FOUNTAINS AT ARBOR LAKES

MN

  28,585   66,699   15,879   29,485   81,678   111,163   38,701   72,462   - 

2006(A)

CENTER POINT S.C.

MO

  -   550   -   -   550   550   550   -   - 

1998(A)

BRENNAN STATION

NC

  7,750   20,557   (476)  6,322   21,510   27,832   7,336   20,496   - 

2011(A)

BRENNAN STATION OUTPARCEL

NC

  628   1,666   (196)  450   1,648   2,098   488   1,610   - 

2011(A)

CAPITAL SQUARE

NC

  3,528   12,159   33   3,528   12,193   15,721   2,089   13,632   - 

2021(A)

CLOVERDALE PLAZA

NC

  541   720   7,530   541   8,250   8,791   4,760   4,031   - 

1969(C)

CROSSROADS PLAZA

NC

  768   3,099   1,384   768   4,483   5,251   2,764   2,487   - 

2000(A)

CROSSROADS PLAZA

NC

  13,406   86,456   5,331   13,843   91,349   105,192   24,303   80,889   - 

2014(A)

DAVIDSON COMMONS

NC

  2,979   12,860   862   2,979   13,722   16,701   4,400   12,301   - 

2012(A)

FALLS POINTE

NC

  4,049   27,415   190   4,049   27,605   31,654   2,633   29,021   - 

2021(A)

HIGH HOUSE CROSSING

NC

  3,604   10,950   322   3,604   11,271   14,875   1,477   13,398   - 

2021(A)

HOPE VALLEY COMMONS

NC

  3,743   16,808   249   3,743   17,057   20,800   1,768   19,032   - 

2021(A)

JETTON VILLAGE SHOPPES

NC

  3,875   10,292   790   2,144   12,813   14,957   4,054   10,903   - 

2011(A)

LEESVILLE TOWNE CENTRE

NC

  5,693   37,053   262   5,693   37,316   43,009   3,847   39,162   - 

2021(A)

MOORESVILLE CROSSING

NC

  12,014   30,604   398   11,333   31,684   43,017   15,108   27,909   - 

2007(A)

NORTHWOODS S.C.

NC

  2,696   9,397   (83)  2,696   9,314   12,010   1,077   10,933   - 

2021(A)

PARK PLACE SC

NC

  5,461   16,163   5,034   5,470   21,188   26,658   10,816   15,842   - 

2008(A)

PLEASANT VALLEY PROMENADE

NC

  5,209   20,886   24,824   5,209   45,710   50,919   27,077   23,842   - 

1993(A)

QUAIL CORNERS

NC

  7,318   26,676   2,383   7,318   29,060   36,378   7,464   28,914   - 

2014(A)

SIX FORKS S.C.

NC

  -   78,366   (2)  -   78,364   78,364   7,819   70,545   - 

2021(A)

STONEHENGE MARKET

NC

  3,848   37,900   1,785   3,848   39,685   43,533   3,177   40,356   - 

2021(A)

TYVOLA SQUARE

NC

  -   4,736   9,499   -   14,235   14,235   11,143   3,092   - 

1986(A)

WOODLAWN MARKETPLACE

NC

  919   3,571   3,342   919   6,913   7,832   5,084   2,748   - 

2008(A)

WOODLAWN SHOPPING CENTER

NC

  2,011   5,834   1,856   2,011   7,690   9,701   2,597   7,104   - 

2012(A)

ROCKINGHAM PLAZA

NH

  2,661   10,644   24,569   3,149   34,725   37,874   18,984   18,890   - 

2008(A)

WEBSTER SQUARE

NH

  11,683   41,708   9,330   11,683   51,038   62,721   12,732   49,989   - 

2014(A)

WEBSTER SQUARE - DSW

NH

  1,346   3,638   132   1,346   3,770   5,116   881   4,235   - 

2017(A)

WEBSTER SQUARE NORTH

NH

  2,163   6,511   171   2,163   6,683   8,846   1,753   7,093   - 

2016(A)

CENTRAL PLAZA

NJ

  3,170   10,603   2,116   5,145   10,744   15,889   4,578   11,311   - 

2013(A)

CLARK SHOPRITE 70 CENTRAL AVE

NJ

  3,497   11,694   995   13,960   2,226   16,186   1,656   14,530   - 

2013(A)

COMMERCE CENTER EAST

NJ

  1,519   5,080   1,753   7,235   1,117   8,352   868   7,484   - 

2013(A)

COMMERCE CENTER WEST

NJ

  386   1,290   161   794   1,043   1,837   345   1,492   - 

2013(A)

COMMONS AT HOLMDEL

NJ

  16,538   38,760   10,585   16,538   49,345   65,883   22,387   43,496   - 

2004(A)

EAST WINDSOR VILLAGE

NJ

  9,335   23,778   1,245   9,335   25,023   34,358   10,411   23,947   - 

2008(A)

GARDEN STATE PAVILIONS

NJ

  7,531   10,802   29,752   12,204   35,882   48,086   12,202   35,884   - 

2011(A)

HILLVIEW SHOPPING CENTER

NJ

  16,008   32,607   2,274   16,008   34,880   50,888   8,629   42,259   - 

2014(A)

HOLMDEL TOWNE CENTER

NJ

  10,825   43,301   12,010   10,825   55,310   66,135   31,376   34,759   - 

2002(A)

MAPLE SHADE

NJ

  -   9,958   2,329   -   12,287   12,287   4,449   7,838   - 

2009(A)

NORTH BRUNSWICK PLAZA

NJ

  3,205   12,820   30,886   3,205   43,706   46,911   26,558   20,353   - 

1994(A)

PISCATAWAY TOWN CENTER

NJ

  3,852   15,411   1,733   3,852   17,144   20,996   11,255   9,741   - 

1998(A)

PLAZA AT HILLSDALE

NJ

  7,602   6,994   1,658   7,602   8,652   16,254   2,958   13,296   - 

2014(A)

PLAZA AT SHORT HILLS

NJ

  20,155   11,062   1,806   20,155   12,868   33,023   3,789   29,234   - 

2014(A)

RIDGEWOOD S.C.

NJ

  450   2,107   1,303   450   3,410   3,860   2,356   1,504   - 

1993(A)

SHOP RITE PLAZA

NJ

  2,418   6,364   3,285   2,418   9,649   12,067   7,793   4,274   - 

1985(C)

UNION CRESCENT III

NJ

  7,895   3,011   28,966   8,697   31,175   39,872   23,646   16,226   - 

2007(A)

WESTMONT PLAZA

NJ

  602   2,405   20,757   602   23,163   23,765   9,734   14,031   - 

1994(A)

WILLOWBROOK PLAZA

NJ

  15,320   40,997   10,873   15,320   51,869   67,189   13,611   53,578   - 

2009(A)

NORTH TOWNE PLAZA - ALBUQUERQUE

NM  3,598   33,327   269   3,598   33,596   37,194   3,704   33,490   - 

2021(A)

CHARLESTON COMMONS

NV

  29,704   24,267   437   29,704   24,704   54,408   5,812   48,596   - 

2021(A)

COLLEGE PARK S.C.-N LAS VEGAS

NV

  2,100   18,413   210   2,100   18,623   20,723   2,545   18,178   - 

2021(A)

D'ANDREA MARKETPLACE

NV

  11,556   29,435   927   11,556   30,362   41,918   12,928   28,990   - 

2007(A)

DEL MONTE PLAZA

NV

  2,489   5,590   1,287   2,210   7,156   9,366   3,835   5,531   - 

2006(A)

DEL MONTE PLAZA ANCHOR PARCEL

NV

  6,513   17,600   219   6,520   17,812   24,332   3,630   20,702   - 

2017(A)

FRANCISCO CENTER

NV

  1,800   10,085   2,038   1,800   12,123   13,923   1,605   12,318   - 

2021(A)

GALENA JUNCTION

NV

  8,931   17,503   1,749   8,931   19,251   28,182   6,026   22,156   - 

2015(A)

MCQUEEN CROSSINGS

NV

  5,017   20,779   1,102   5,017   21,881   26,898   8,969   17,929   - 

2015(A)

RANCHO TOWNE & COUNTRY

NV

  7,785   13,364   (56)  7,785   13,308   21,093   1,705   19,388   - 

2021(A)

REDFIELD PROMENADE

NV

  4,415   32,035   (3,054)  4,415   28,980   33,395   8,143   25,252   - 

2015(A)

SPARKS MERCANTILE

NV

  6,222   17,069   451   6,222   17,519   23,741   5,867   17,874   - 

2015(A)

501 NORTH BROADWAY

NY

  -   1,176   (50)  -   1,126   1,126   559   567   - 

2007(A)

AIRPORT PLAZA

NY

  22,711   107,012   6,297   22,711   113,308   136,019   29,260   106,759   - 

2015(A)

BELLMORE S.C.

NY

  1,272   3,184   1,837   1,272   5,021   6,293   2,928   3,365   - 

2004(A)

BIRCHWOOD PLAZA COMMACK

NY

  3,630   4,775   1,442   3,630   6,218   9,848   2,703   7,145   - 

2007(A)

BRIDGEHAMPTON COMMONS-W&E SIDE

NY

  1,812   3,107   43,237   1,858   46,298   48,156   27,913   20,243   - 

1972(C)

CARMAN'S PLAZA

NY

  12,558   37,290   3,174   12,562   40,460   53,022   2,653   50,369   - 

2022(A)

CHAMPION FOOD SUPERMARKET

NY

  758   1,875   (25)  2,241   367   2,608   264   2,344   - 

2012(A)

ELMONT S.C.

NY

  3,012   7,606   6,885   3,012   14,491   17,503   5,790   11,713   - 

2004(A)

ELMSFORD CENTER 2

NY

  4,076   15,599   1,118   4,245   16,548   20,793   5,948   14,845   - 

2013(A)

FAMILY DOLLAR UNION TURNPIKE

NY

  909   2,250   244   1,057   2,346   3,403   736   2,667   - 

2012(A)

FOREST AVENUE PLAZA

NY

  4,559   10,441   3,084   4,559   13,525   18,084   5,407   12,677   - 

2005(A)

FRANKLIN SQUARE S.C.

NY

  1,079   2,517   3,984   1,079   6,501   7,580   2,696   4,884   - 

2004(A)

GREAT NECK OUTPARCEL

NY

  4,019   -   74   4,019   74   4,093   -   4,093   - 

2022(A)

GREENRIDGE PLAZA

NY

  2,940   11,812   9,872   3,148   21,477   24,625   11,957   12,668   - 

1997(A)

HAMPTON BAYS PLAZA

NY

  1,495   5,979   3,550   1,495   9,529   11,024   8,638   2,386   - 

1989(A)

HICKSVILLE PLAZA

NY

  3,543   8,266   2,629   3,543   10,895   14,438   5,461   8,977   - 

2004(A)

INDEPENDENCE PLAZA

NY

  12,279   34,814   513   16,132   31,474   47,606   10,756   36,850   - 

2014(A)

JERICHO COMMONS SOUTH

NY

  12,368   33,071   4,119   12,368   37,190   49,558   15,779   33,779   768 

2007(A)

KEY FOOD - 21ST STREET

NY

  1,091   2,700   (165)  1,669   1,957   3,626   578   3,048   - 

2012(A)

KEY FOOD - ATLANTIC AVE

NY

  2,273   5,625   509   4,809   3,598   8,407   1,297   7,110   - 

2012(A)

KEY FOOD - CENTRAL AVE.

NY

  2,788   6,899   (395)  2,603   6,689   9,292   2,061   7,231   - 

2012(A)

KINGS HIGHWAY

NY

  2,744   6,811   2,060   2,744   8,872   11,616   4,613   7,003   - 

2004(A)

KISSENA BOULEVARD SHOPPING CTR

NY

  11,610   2,933   1,894   11,610   4,827   16,437   1,450   14,987   - 

2007(A)

LITTLE NECK PLAZA

NY

  3,277   13,161   6,505   3,277   19,666   22,943   10,992   11,951   - 

2003(A)

MANETTO HILL PLAZA

NY

  264   584   17,499   264   18,083   18,347   8,791   9,556   - 

1969(C)

MANHASSET CENTER

NY

  4,567   19,166   33,543   3,472   53,804   57,276   34,823   22,453   - 

1999(A)

MARKET AT BAY SHORE

NY

  12,360   30,708   7,943   12,360   38,651   51,011   18,308   32,703   - 

2006(A)

MASPETH QUEENS-DUANE READE

NY

  1,872   4,828   1,037   1,872   5,865   7,737   2,680   5,057   - 

2004(A)

MILLERIDGE INN

NY

  7,500   481   14   7,500   496   7,996   75   7,921   - 

2015(A)

MINEOLA CROSSINGS

NY

  4,150   7,521   1,006   4,150   8,527   12,677   3,213   9,464   - 

2007(A)

NORTH MASSAPEQUA S.C.

NY

  1,881   4,389   (1,685)  -   4,586   4,586   4,350   236   - 

2004(A)

OCEAN PLAZA

NY

  564   2,269   8   564   2,277   2,841   1,212   1,629   - 

2003(A)

RALPH AVENUE PLAZA

NY

  4,414   11,340   4,055   4,414   15,395   19,809   7,193   12,616   - 

2004(A)

RICHMOND S.C.

NY

  2,280   9,028   22,052   2,280   31,080   33,360   18,486   14,874   - 

1989(A)

ROMAINE PLAZA

NY

  782   1,826   588   782   2,414   3,196   1,131   2,065   - 

2005(A)

SEQUAMS SHOPPING CENTER

NY

  3,971   8,654   (67)  3,971   8,587   12,558   391   12,167   - 

2022(A)

SHOPRITE S.C.

NY

  872   3,488   -   872   3,488   4,360   2,780   1,580   - 

1998(A)

STOP & SHOP

NY

  21,661   17,636   -   21,661   17,636   39,297   658   38,639   10,892 

2022(A)

SMITHTOWN PLAZA

NY

  3,528   7,364   670   3,437   8,124   11,561   4,019   7,542   - 

2009(A)

SOUTHGATE SHOPPING CENTER

NY

  18,822   62,670   (1,299)  18,829   61,364   80,193   2,971   77,222   19,135 

2022(A)

SYOSSET CORNERS

NY

  6,169   13,302   25   6,169   13,328   19,497   675   18,822   - 

2022(A)

SYOSSET S.C.

NY

  107   76   3,046   107   3,122   3,229   1,544   1,685   - 

1990(C)

THE BOULEVARD

NY

  28,724   38,232   258,349   28,724   296,583   325,307   32,304   293,003   - 

2006(A)

THE GARDENS AT GREAT NECK

NY

  27,956   71,366   55   27,962   71,414   99,376   4,968   94,408   16,888 

2022(A)

THE GREEN COVE PLAZA

NY

  17,017   39,206   (232)  17,017   38,974   55,991   1,963   54,028   11,249 

2022(A)

THE MARKETPLACE

NY

  4,498   9,850   15   4,498   9,864   14,362   483   13,879   4,994 

2022(A)

TOWNPATH CORNER

NY

  2,675   6,408   52   2,675   6,460   9,135   367   8,768   - 

2022(A)

TURNPIKE PLAZA

NY

  2,472   5,839   970   2,472   6,809   9,281   2,406   6,875   - 

2011(A)

VETERANS MEMORIAL PLAZA

NY

  5,968   23,243   22,893   5,980   46,124   52,104   21,758   30,346   - 

1998(A)

WHITE PLAINS S.C.

NY

  1,778   4,454   2,964   1,778   7,418   9,196   3,226   5,970   - 

2004(A)

WOODBURY COMMON

NY

  27,249   28,516   (178)  27,249   28,338   55,587   1,771   53,816   16,132 

2022(A)

JANTZEN BEACH CENTER

OR

  57,575   102,844   4,052   57,588   106,883   164,471   25,005   139,466   - 

2017(A)

CENTER SQUARE SHOPPING CENTER

PA

  732   2,928   1,225   691   4,194   4,885   3,207   1,678   - 

1996(A)

CRANBERRY TOWNSHIP-PARCEL 1&2

PA

  10,271   30,770   3,183   6,070   38,154   44,224   8,787   35,437   - 

2016(A)

CROSSROADS PLAZA

PA

  789   3,155   14,408   976   17,377   18,353   12,070   6,283   - 

1986(A)

DEVON VILLAGE

PA

  4,856   25,847   988   5,608   26,084   31,692   9,213   22,479   - 

2012(A)

FISHTOWN CROSSING

PA

  20,398   22,602   243   20,401   22,842   43,243   2,884   40,359   - 

2022(A)

HARRISBURG EAST SHOPPING CTR.

PA

  453   6,665   12,250   3,003   16,365   19,368   10,169   9,199   - 

2002(A)

HORSHAM POINT

PA

  3,813   18,189   674   3,813   18,863   22,676   4,258   18,418   - 

2015(A)

LINCOLN SQUARE

PA

  90,479   -   76,429   10,533   156,376   166,909   17,369   149,540   - 

2017(C)

NORRITON SQUARE

PA

  686   2,665   5,715   774   8,293   9,067   5,727   3,340   - 

1984(A)

POCONO PLAZA

PA

  1,050   2,373   18,493   1,050   20,866   21,916   3,129   18,787   - 

1973(C)

SHOPPES AT WYNNEWOOD

PA

  7,479   -   3,676   7,479   3,676   11,155   731   10,424   - 

2015(C)

SHREWSBURY SQUARE S.C.

PA

  8,066   16,998   (1,555)  6,172   17,338   23,510   4,720   18,790   - 

2014(A)

SPRINGFIELD S.C.

PA

  920   4,982   14,083   920   19,065   19,985   13,174   6,811   - 

1983(A)

SUBURBAN SQUARE

PA

  70,680   166,351   85,342   71,280   251,093   322,373   79,755   242,618   - 

2007(A)

TOWNSHIP LINE S.C.

PA

  732   2,928   -   732   2,928   3,660   2,052   1,608   - 

1996(A)

WAYNE PLAZA

PA

  6,128   15,605   925   6,136   16,522   22,658   7,013   15,645   - 

2008(A)

WEXFORD PLAZA

PA

  6,414   9,775   14,488   6,299   24,378   30,677   7,937   22,740   - 

2010(A)

WHITEHALL MALL

PA

  -   5,196   -   -   5,196   5,196   3,641   1,555   - 

1996(A)

WHITELAND TOWN CENTER

PA

  732   2,928   59   732   2,987   3,719   2,111   1,608   - 

1996(A)

WHOLE FOODS AT WYNNEWOOD

PA

  15,042   -   11,785   13,772   13,055   26,827   1,893   24,934   - 

2014(C)

LOS COLOBOS - BUILDERS SQUARE

PR

  4,405   9,628   (538)  4,461   9,034   13,495   8,453   5,042   - 

2006(A)

LOS COLOBOS - KMART

PR

  4,595   10,120   (827)  4,402   9,486   13,888   8,528   5,360   - 

2006(A)

LOS COLOBOS I

PR

  12,891   26,047   1,468   13,613   26,793   40,406   14,450   25,956   - 

2006(A)

LOS COLOBOS II

PR

  14,894   30,681   1,438   15,142   31,871   47,013   17,556   29,457   - 

2006(A)

MANATI VILLA MARIA SC

PR

  2,781   5,673   1,851   2,607   7,698   10,305   4,914   5,391   - 

2006(A)

PLAZA CENTRO - COSTCO

PR

  3,628   10,752   (455)  3,866   10,059   13,925   5,560   8,365   - 

2006(A)

PLAZA CENTRO - MALL

PR

  19,873   58,719   5,967   19,408   65,151   84,559   29,956   54,603   - 

2006(A)

PLAZA CENTRO - RETAIL

PR

  5,936   16,510   931   6,026   17,352   23,378   8,263   15,115   - 

2006(A)

PLAZA CENTRO - SAM'S CLUB

PR

  6,643   20,225   (1,170)  6,520   19,178   25,698   18,078   7,620   - 

2006(A)

PONCE TOWNE CENTER

PR

  14,433   28,449   5,364   14,903   33,343   48,246   21,623   26,623   - 

2006(A)

REXVILLE TOWN CENTER

PR

  24,873   48,688   8,414   25,678   56,297   81,975   36,182   45,793   - 

2006(A)

TRUJILLO ALTO PLAZA

PR

  12,054   24,446   8,717   12,289   32,927   45,216   17,144   28,072   - 

2006(A)

WESTERN PLAZA - MAYAGUEZ ONE

PR

  10,858   12,253   839   11,242   12,707   23,949   11,119   12,830   - 

2006(A)

WESTERN PLAZA - MAYAGUEZ TWO

PR

  16,874   19,911   3,172   16,873   23,084   39,957   18,921   21,036   - 

2006(A)

FOREST PARK

SC

  1,920   9,545   433   1,920   9,978   11,898   3,173   8,725   - 

2012(A)

ST. ANDREWS CENTER

SC

  730   3,132   22,086   730   25,218   25,948   14,314   11,634   - 

1978(C)

WESTWOOD PLAZA

SC

  1,744   6,986   15,227   1,727   22,230   23,957   7,932   16,025   - 

1995(A)

WOODRUFF SHOPPING CENTER

SC

  3,110   15,501   1,772   3,465   16,918   20,383   6,260   14,123   - 

2010(A)

HIGHLAND SQUARE

TN

  1,302   2,130   6   1,302   2,136   3,438   105   3,333   - 

2021(A)

MENDENHALL COMMONS

TN

  1,272   14,826   (32)  1,272   14,793   16,065   1,711   14,354   - 

2021(A)

OLD TOWNE VILLAGE

TN

  -   4,134   4,674   -   8,808   8,808   6,905   1,903   - 

1978(C)

THE COMMONS AT DEXTER LAKE

TN

  1,554   14,649   1,000   1,554   15,648   17,202   2,336   14,866   - 

2021(A)

THE COMMONS AT DEXTER LAKE II

TN

  567   8,874   (27)  567   8,847   9,414   954   8,460   - 

2021(A)

1350 W. 43RD ST. - WELLS FARGO

TX

  3,707   247   1   3,708   247   3,955   58   3,897   - 

2022(A)

1934 WEST GRAY

TX

  705   4,831   (7)  705   4,824   5,529   422   5,107   - 

2021(A)

1939 WEST GRAY

TX

  269   1,731   (170)  269   1,561   1,830   135   1,695   - 

2021(A)

43RD STREET CHASE BANK BLDG

TX

  497   1,703   56   497   1,759   2,256   167   2,089   - 

2021(A)

ACCENT PLAZA

TX

  500   2,831   535   500   3,366   3,866   1,973   1,893   - 

1996(A)

ALABAMA SHEPHERD S.C.

TX

  4,590   21,368   355   4,590   21,723   26,313   2,689   23,624   - 

2021(A)

ATASCOCITA COMMONS SHOP.CTR.

TX

  16,323   54,587   593   15,580   55,924   71,504   14,599   56,905   - 

2013(A)

BAYBROOK GATEWAY

TX

  9,441   44,160   (872)  9,441   43,289   52,730   5,308   47,422   - 

2021(A)

BAYBROOK WEBSTER PARCEL

TX

  -   2,978   8,616   -   11,594   11,594   -   11,594   - 

2022(A)

BELLAIRE BLVD S.C.

TX

  1,334   7,166   12   1,334   7,178   8,512   618   7,894   - 

2021(A)

BLALOCK MARKET

TX

  -   17,283   67   -   17,351   17,351   3,013   14,338   - 

2021(A)

CENTER AT BAYBROOK

TX

  6,941   27,727   10,856   6,928   38,597   45,525   22,263   23,262   - 

1998(A)

CENTER OF THE HILLS

TX

  2,924   11,706   4,984   2,924   16,690   19,614   8,434   11,180   - 

2008(A)

CITADEL BUILDING

TX

  4,046   12,824   (7,501)  2,169   7,201   9,370   547   8,823   - 

2021(A)

CONROE MARKETPLACE

TX

  18,869   50,757   (1,582)  10,842   57,202   68,044   13,901   54,143   - 

2015(A)

COPPERFIELD VILLAGE SHOP.CTR.

TX

  7,828   34,864   1,334   7,828   36,198   44,026   9,507   34,519   - 

2015(A)

COPPERWOOD VILLAGE

TX

  13,848   84,184   2,580   13,848   86,765   100,613   21,475   79,138   - 

2015(A)

CYPRESS TOWNE CENTER

TX

  6,034   -   2,412   2,252   6,194   8,446   2,098   6,348   - 

2003(C)

CYPRESS TOWNE CENTER

TX

  12,329   36,836   1,714   8,644   42,234   50,878   8,640   42,238   - 

2016(A)

CYPRESS TOWNE CENTER (PHASE II)

TX

  2,061   6,158   (1,361)  270   6,588   6,858   1,961   4,897   - 

2016(A)

DRISCOLL AT RIVER OAKS-RESI

TX

  1,244   145,366   3,107   1,244   148,472   149,716   8,080   141,636   - 

2021(A)

FIESTA TARGET

TX

  6,766   7,334   378   6,766   7,711   14,477   1,199   13,278   - 

2021(A)

FIESTA TRAILS

TX

  15,185   32,897   1,843   15,185   34,739   49,924   4,206   45,718   - 

2021(A)

GALVESTON PLACE

TX

  1,661   28,288   3,330   1,661   31,619   33,280   3,413   29,867   - 

2021(A)

GATEWAY STATION

TX

  1,374   28,145   4,955   1,375   33,099   34,474   9,677   24,797   - 

2011(A)

GATEWAY STATION PHASE II

TX

  4,140   12,020   1,132   4,143   13,148   17,291   2,762   14,529   - 

2017(A)

GRAND PARKWAY MARKET PLACE II

TX

  13,436   -   39,243   12,298   40,381   52,679   6,896   45,783   - 

2015(C)

GRAND PARKWAY MARKETPLACE

TX

  25,364   -   64,791   21,937   68,218   90,155   10,900   79,255   - 

2014(C)

HEB - DAIRY ASHFORD & MEMORIAL

TX

  1,076   5,324   1   1,076   5,325   6,401   429   5,972   - 

2021(A)

HEIGHTS PLAZA

TX

  5,423   10,140   23   5,423   10,163   15,586   1,182   14,404   - 

2021(A)

INDEPENDENCE PLAZA - LAREDO

TX

  4,836   53,564   140   4,836   53,703   58,539   5,232   53,307   8,063 

2021(A)

INDEPENDENCE PLAZA II - LAREDO

TX

  2,482   21,418   12   2,482   21,431   23,913   2,800   21,113   - 

2021(A)

KROGER PLAZA

TX

  520   2,081   3,103   520   5,183   5,703   2,595   3,108   - 

1995(A)

LAKE PRAIRIE TOWN CROSSING

TX

  7,897   -   30,681   6,783   31,795   38,578   10,252   28,326   - 

2006(C)

LAS TIENDAS PLAZA

TX

  8,678   -   28,165   7,944   28,899   36,843   9,825   27,018   - 

2005(C)

MONTGOMERY PLAZA

TX

  10,739   63,065   1,650   10,739   64,715   75,454   17,749   57,705   - 

2015(A)

MUELLER OUTPARCEL

TX

  150   3,351   (3)  150   3,348   3,498   335   3,163   - 

2021(A)

MUELLER REGIONAL RETAIL CENTER

TX

  7,352   85,805   3,521   7,352   89,326   96,678   9,336   87,342   - 

2021(A)

NORTH CREEK PLAZA

TX

  5,044   34,756   86   5,044   34,841   39,885   4,066   35,819   - 

2021(A)

OAK FOREST

TX

  13,395   25,275   290   13,395   25,565   38,960   2,723   36,237   - 

2021(A)

PLANTATION CENTRE

TX

  2,325   34,494   913   2,325   35,408   37,733   4,033   33,700   - 

2021(A)

PRESTON LEBANON CROSSING

TX

  13,552   -   28,428   12,164   29,816   41,980   12,058   29,922   - 

2006(C)

RANDALLS CENTER/KINGS CROSSING

TX

  3,717   21,363   6,631   3,717   27,993   31,710   2,613   29,097   - 

2021(A)

RICHMOND SQUARE

TX

  7,568   15,432   (233)  7,568   15,198   22,766   1,258   21,508   - 

2021(A)

RIVER OAKS S.C. EAST

TX

  5,766   13,882   120   5,766   14,002   19,768   1,373   18,395   - 

2021(A)

RIVER OAKS S.C. WEST

TX

  14,185   138,022   3,897   14,185   141,918   156,103   12,799   143,304   - 

2021(A)

ROCK PRAIRIE MARKETPLACE

TX

  -   8,004   232   -   8,236   8,236   671   7,565   - 

2021(A)

SHOPPES AT MEMORIAL VILLAGES

TX

  -   41,493   57   -   41,549   41,549   4,449   37,100   - 

2021(A)

SHOPS AT HILSHIRE VILLAGE

TX

  11,206   19,092   562   11,206   19,655   30,861   2,562   28,299   - 

2021(A)

SHOPS AT KIRBY DRIVE

TX

  969   5,031   (37)  969   4,994   5,963   445   5,518   - 

2021(A)

SHOPS AT THREE CORNERS

TX

  7,094   59,795   (393)  7,094   59,401   66,495   6,621   59,874   - 

2021(A)

STEVENS RANCH

TX

  18,143   6,407   405   18,143   6,812   24,955   837   24,118   - 

2021(A)

THE CENTRE AT COPPERFIELD

TX

  6,723   22,525   628   6,723   23,154   29,877   6,795   23,082   - 

2015(A)

THE CENTRE AT POST OAK

TX

  12,642   100,658   288   12,642   100,947   113,589   11,326   102,263   - 

2021(A)

THE SHOPPES @ WILDERNESS OAKS

TX

  4,359   8,964   (12,427)  896   -   896   -   896   - 

2021(A)

TOMBALL CROSSINGS

TX

  8,517   28,484   1,545   7,965   30,581   38,546   8,034   30,512   - 

2013(A)

TOMBALL MARKETPLACE

TX

  4,280   31,793   217   4,280   32,010   36,290   3,982   32,308   - 

2021(A)

TRENTON CROSSING - NORTH MCALLEN

TX

  6,279   29,686   2,013   6,279   31,700   37,979   4,444   33,535   - 

2021(A)

VILLAGE PLAZA AT BUNKER HILL

TX

  21,320   233,086   2,053   21,320   235,140   256,460   22,191   234,269   71,050 

2021(A)

WESTCHASE S.C.

TX

  7,547   35,653   3   7,547   35,656   43,203   3,887   39,316   13,506 

2021(A)

WESTHILL VILLAGE

TX

  11,948   26,479   613   11,948   27,092   39,040   3,405   35,635   - 

2021(A)

WOODBRIDGE SHOPPING CENTER

TX

  2,569   6,814   491   2,569   7,305   9,874   2,833   7,041   - 

2012(A)

BURKE TOWN PLAZA

VA

  -   43,240   (5,224)  -   38,016   38,016   9,999   28,017   - 

2014(A)

CENTRO ARLINGTON

VA

  3,937   35,103   1,600   3,937   36,704   40,641   2,398   38,243   - 

2021(A)

CENTRO ARLINGTON-RESI

VA

  15,012   155,639   604   15,012   156,243   171,255   6,800   164,455   - 

2021(A)

DOCSTONE COMMONS

VA

  3,839   11,468   643   3,904   12,046   15,950   2,730   13,220   - 

2016(A)

DOCSTONE O/P - STAPLES

VA

  1,425   4,318   (828)  1,168   3,747   4,915   1,028   3,887   - 

2016(A)

DULLES TOWN CROSSING

VA

  53,285   104,176   2,449   53,285   106,625   159,910   28,499   131,411   - 

2015(A)

GORDON PLAZA

VA

  -   3,331   6,005   5,573   3,763   9,336   791   8,545   - 

2017(A)

HILLTOP VILLAGE CENTER

VA

  23,409   93,673   553   23,409   94,225   117,634   7,743   109,891   - 

2021(A)

OLD TOWN PLAZA

VA

  4,500   41,570   (14,425)  3,053   28,592   31,645   9,024   22,621   - 

2007(A)

POTOMAC RUN PLAZA

VA

  27,370   48,451   3,896   27,370   52,347   79,717   21,125   58,592   - 

2008(A)

STAFFORD MARKETPLACE

VA

  26,893   86,450   16,725   29,485   100,584   130,069   22,898   107,171   - 

2015(A)

STONEBRIDGE AT POTOMAC TOWN CENTER

VA

  52,190   73,877   54,138   52,189   128,017   180,206   3,967   176,239   - 

2023(A)

WEST ALEX - RETAIL

VA

  6,043   55,434   1,510   6,043   56,944   62,987   3,556   59,431   - 

2021(A)

WEST ALEX-OFFICE

VA

  1,479   10,458   1,602   1,479   12,059   13,538   622   12,916   - 

2021(A)

WEST ALEX-RESI

VA

  15,892   65,282   451   15,892   65,733   81,625   5,813   75,812   - 

2021(A)

AUBURN NORTH

WA

  7,786   18,158   12,122   7,786   30,279   38,065   11,541   26,524   - 

2007(A)

COVINGTON ESPLANADE

WA

  6,009   47,941   165   6,009   48,107   54,116   3,630   50,486   - 

2021(A)

FRANKLIN PARK COMMONS

WA

  5,419   11,989   7,740   5,419   19,730   25,149   5,778   19,371   - 

2015(A)

FRONTIER VILLAGE SHOPPING CTR.

WA

  10,751   44,861   2,811   10,751   47,672   58,423   12,080   46,343   - 

2012(A)

GATEWAY SHOPPING CENTER

WA

  6,938   11,270   9,612   6,938   20,883   27,821   4,249   23,572   - 

2016(A)

SILVERDALE PLAZA

WA

  3,875   33,109   1,196   3,756   34,425   38,181   10,419   27,762   - 

2012(A)

THE MARKETPLACE AT FACTORIA

WA

  60,502   92,696   27,454   65,781   114,871   180,652   31,949   148,703   - 

2013(A)

THE WHITTAKER

WA

  15,799   23,508   181   15,799   23,690   39,489   2,361   37,128   - 

2021(A)

OTHER PROPERTY INTERESTS

                                      

ASANTE RETAIL CENTER

AZ

  8,703   3,406   (11,939)  170   -   170   -   170   - 

2004(C)

HOMESTEAD-WACHTEL LAND LEASE

FL

  150   -   -   150   -   150   -   150   - 

2013(A)

PALM COAST LANDING OUTPARCELS

FL

  1,460   -   5   1,460   5   1,465   -   1,465   - 

2021(A)

LAKE WALES S.C.

FL

  601   -   -   601   -   601   -   601   - 

2009(A)

FLINT - VACANT LAND

MI

  101   -   (10)  91   -   91   -   91   - 

2012(A)

CHARLOTTE SPORTS & FITNESS CTR

NC

  501   1,859   562   501   2,422   2,923   2,086   837   - 

1986(A)

SURF CITY CROSSING

NC

  5,260   -   (2,478)  2,782   -   2,782   -   2,782   - 

2021(A)

THE SHOPPES AT CAVENESS FARMS

NC

  5,470   -   21   5,470   21   5,491   -   5,491   - 

2021(A)

WAKE FOREST CROSSING II - LAND ONLY

NC

  520   -   -   520   -   520   -   520   - 

2021(A)

WAKEFIELD COMMONS III

NC

  6,506   -   (5,397)  787   322   1,109   321   788   - 

2001(C)

WAKEFIELD CROSSINGS

NC

  3,414   -   (3,277)  137   -   137   -   137   - 

2001(C)

HILLSBOROUGH PROMENADE

NJ

  11,887   -   (6,632)  5,006   249   5,255   130   5,125   - 

2001(C)

JERICHO ATRIUM

NY

  10,624   20,065   5,237   10,624   25,302   35,926   8,365   27,561   - 

2016(A)

KEY BANK BUILDING

NY

  1,500   40,487   (8,107)  669   33,211   33,880   22,784   11,096   - 

2006(A)

MANHASSET CENTER (RESIDENTIAL)

NY

  950   -   -   950   -   950   -   950   - 

2012(A)

MERRY LANE (PARKING LOT)

NY

  1,486   2   1,567   1,486   1,569   3,055   -   3,055   - 

2007(A)

NORTHPORT LAND PARCEL

NY

  -   14   82   -   96   96   12   84   - 

2012(A)

MCMINNVILLE PLAZA

OR

  4,062   -   478   4,062   478   4,540   -   4,540   - 

2006(C)

1935 WEST GRAY

TX

  780   -   14   780   14   794   -   794   - 

2021(A)

2503 MCCUE, LLC

TX

  -   2,287   -   -   2,287   2,287   1,082   1,205   - 

2021(A)

NORTH TOWNE PLAZA - BROWNSVILLE

TX

  1,517   -   295   1,517   295   1,812   8   1,804   - 

2021(A)

RICHMOND SQUARE - PAD

TX

  570   -   4   570   4   574   -   574   - 

2021(A)

TEXAS CITY LAND

TX

  1,000   -   -   1,000   -   1,000   -   1,000   - 

2021(A)

WESTOVER SQUARE

TX

  1,520   -   (665)  855   -   855   -   855   - 

2021(A)

BLUE RIDGE

Various

  12,347   71,530   (51,782)  3,513   28,582   32,095   20,990   11,105   - 

2005(A)

BALANCE OF PORTFOLIO (4)

Various

  1,907   65,127   (22,029)  -   45,013   45,013   5,232   39,781   -  
                                       

TOTALS

  $4,232,117  $11,848,636  $2,857,041  $4,177,797  $14,759,997  $18,937,794  $3,842,869  $15,094,925  $353,945  

 

(1)

The negative balance for costs capitalized subsequent to acquisition could include parcels/out-parcels sold, assets held-for-sale, provision for losses and/or demolition of part of a property for redevelopment.

(2)

Includes fair market value of debt adjustments, net and deferred financing costs, net.

(3)

Shopping center includes land held for development.

(4)

Includes fixtures, leasehold improvements and other costs capitalized.

 

110

 

Depreciation and amortization are provided on the straight-line method over the estimated useful lives of the assets as follows:

 

Buildings and building improvements (in years)

 5to50  

Fixtures, building and leasehold improvements

 

Terms of leases or useful lives, whichever is shorter

 

(including certain identified intangible assets)

      

 

The aggregate cost for Federal income tax purposes was approximately $17.5 billion at December 31, 2023.

 

The changes in total real estate assets for the years ended December 31, 2023, 2022 and 2021 are as follows:

 

  

2023

  

2022

  

2021

 

Balance, beginning of period

 $18,457,242  $18,052,271  $12,068,827 

Additions during period:

            

Acquisitions

  208,001   542,789   5,765,363 

Improvements

  263,171   183,561   153,698 

Transfers from unconsolidated joint ventures

  166,490   -   785,334 

Deductions during period:

            

Sales and assets held-for-sale

  (85,541)  (271,347)  (205,057)

Transfers to unconsolidated joint ventures

  -   -   (433,829)

Adjustment for fully depreciated assets

  (59,832)  (36,032)  (82,065)

Adjustment of property carrying values

  (11,737)  (14,000)  - 

Balance, end of period

 $18,937,794  $18,457,242  $18,052,271 

 

 

 

The changes in accumulated depreciation for the years ended December 31, 2023, 2022 and 2021 are as follows:

 

  

2023

  

2022

  

2021

 

Balance, beginning of period

 $3,417,414  $3,010,699  $2,717,114 

Additions during period:

            

Depreciation for year

  492,434   493,075   378,416 

Deductions during period:

            

Sales and assets held-for-sale

  (7,147)  (50,328)  (2,766)

Adjustment for fully depreciated assets/other

  (59,832)  (36,032)  (82,065)

Balance, end of period

 $3,842,869  $3,417,414  $3,010,699 

 

Reclassifications:

Certain amounts in the prior period have been reclassified in order to conform with the current period's presentation.

 

111

  
 

KIMCO REALTY CORPORATION AND SUBSIDIARIES AND KIMCO REALTY OP, LLC AND SUBSIDIARIES

SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE

As of December 31, 2023

(in thousands)

 

Description

 

Interest

Rate

 

Final

Maturity

Date

Periodic

Payment

Terms (a)

 

Prior Liens

  

Original Face Amount

of Mortgages

  

Carrying Amount of

Mortgages (b)

 

Mortgage Loans:

                  

Retail

                  

Gresham, OR

  8.00%

Apr-24

I

 $-  $25,000  $25,000 

Apopka, FL

  14.00%

Dec-24

I

  -   11,211   11,211 

Lynwood, CA

  9.00%

Jun-25

I

  -   16,463   16,463 

Crystal Lake, IL (i)

  10.50%

Nov-26

I

  -   7,308   7,308 

Jacksonville, FL

  10.00%

Nov-26

I

  -   15,000   15,000 

San Antonio, TX

  12.50%

Sep-27

I

  -   21,500   16,359 

Fairfax, VA

  8.00%

May-29

I

  -   14,000   14,000 

Euless, TX

  10.00%

Jun-29

I

  -   19,600   19,600 

Individually < 3% (c)

 

(d)

 

(e)

I

  -   6,485   6,485 
                   

Nonretail

                  

Individually < 3% (f)

 

(g)

 

(h)

P&I

  -   1,854   305 
                   

Other Financing Loans:

                  

Nonretail

                  

Borrower A

  7.00%

Mar-31

P&I

  -   397   314 

Allowance for Credit losses:

        -   -   (1,300)
                   
        $-  $138,818  $130,745 

 

(a)  I = Interest only; P&I = Principal & Interest.

(b)  The aggregate cost for Federal income tax purposes was approximately $130.7 million as of December 31, 2023.

(c)  Comprised of two separate loans with original loan amounts ranging from $3.1 million to $3.4 million.

(d)  Interest rates range from 7.00% to 12.00%.

(e)  Maturity dates range from May 2033 to October 2053.

(f)  Comprised of two separate loans with original loan amounts ranging from $0.5 million to $1.9 million.

(g)  Interest rates range from 6.88% to 7.41%.

(h)  Maturity dates range from October 2026 to December 2030.

(i) There was an outstanding undrawn mortgage loan balance of $7.0 million as of December 31, 2023, for which the Company, as a lender, accrues interest at a rate of 0.5% per annum.

For a reconciliation of mortgage and other financing receivables from January 1, 2021 to December 31, 2023, see Footnote 11 of the 

Notes to the Consolidated Financial Statements included in this Form 10-K.

 

The Company reviews payment status to identify performing versus non-performing loans. As of December 31, 2023, the Company had a total of 13 loans, all of which are performing. The Company monitors the credit quality of its notes receivable on an ongoing basis and considers indicators of credit quality such as loan payment activity, the estimated fair value of the underlying collateral, the personal guarantees of the borrower and the prospects of the borrower. 

 

The following table reconciles mortgage loans and other financing receivables from January 1, 2021 to December 31, 2023 (in thousands):

 

  

2023

  

2022

  

2021

 

Balance at January 1,

 $87,359  $73,102  $32,246 

Additions:

            

New mortgage and other loans (1)

  43,519   75,063   55,307 

Deductions:

            

Loan repayments (2)

  (35)  (60,211)  (13,646)

Collections of principal

  (98)  (95)  (130)

Allowance for credit losses

  -   (500)  (370)

Other adjustments

  -   -   (305)

Balance at December 31,

 $130,745  $87,359  $73,102 

 

 

(1)

During 2021, the Company acquired $13.4 million of mortgage loan receivables in connection with the merger with Weingarten.

 

(2)

During 2022, the Company recognized $4.0 million of profit participation related to the repayment of a mortgage loan, which is included in Other income, net on the Company’s Consolidated Statements of Income.

  

112

Exhibit 3.4

 

KIMCO REALTY CORPORATION

 

CERTIFICATE OF CORRECTION

 

THIS IS TO CERTIFY THAT:

 

FIRST:            The title of the document being corrected is Articles Supplementary Classifying 1,849 Shares of 7.25% Class N Cumulative Convertible Perpetual Preferred Stock and 1,849 shares of 7.25% Class N Excess Cumulative Convertible Perpetual Preferred Stock (the “Articles”).

 

SECOND:       The sole party to the Articles is Kimco Realty Corporation, a Maryland corporation (the “Corporation”).

 

THIRD:           The Articles were filed with the State Department of Assessments and Taxation of Maryland (the “SDAT”) on December 28, 2023.

 

FOURTH:        The formula set forth in Section 7(D)(v) of the Articles as previously filed with the SDAT is set forth below:

 

       

AC + (SP1 x OS1)

CR1

=

CR0

x

                                      

       

OS0 – SP1

 

FIFTH:            The formula set forth in Section 7(D)(v) of the Articles as corrected hereby is set forth below:

 

       

AC + (SP1 x OS1)

CR1

=

CR0

x

                                        

       

OS0 x SP1

 

SIXTH:            The first sentence of Section 7(D)(vii) of the Articles as previously filed with the SDAT is set forth below:

 

(vii) Notwithstanding anything in this Section 7(D) to the contrary, if a Conversion Rate adjustment becomes effective pursuant to the any of the foregoing clauses (i), (ii), (iii), (iv) or (v) of this Section 7(D) on any Ex‑Date as described above, and a Holder that converts its Class N Preferred Stock on or after such Ex‑Date and on or prior to the related record date would be treated as the record holder of Common Stock as of the related Conversion Date set forth in Section 7(B) based on an adjusted Conversion Rate for such Ex‑Date, then, notwithstanding the foregoing Conversion Rate adjustment provisions, the Conversion Rate adjustment relating to such Ex‑Date will not be made for such converting Holder.

 

SEVENTH:       The first sentence of Section 7(D)(vii) of the Articles as corrected hereby is set forth below:

 

(vii) Notwithstanding anything in this Section 7(D) to the contrary, if a Conversion Rate adjustment becomes effective pursuant to any of the foregoing clauses (i), (ii), (iii), (iv) or (v) of this Section 7(D) on any Ex‑Date as described above, and a Holder that converts its Class N Preferred Stock on or after such Ex‑Date and on or prior to the related record date would be treated as the record holder of Common Stock as of the related Conversion Date set forth in Section 7(B) based on an adjusted Conversion Rate for such Ex‑Date, then, notwithstanding the foregoing Conversion Rate adjustment provisions, the Conversion Rate adjustment relating to such Ex‑Date will not be made for such converting Holder.

 

EIGHTH:         The undersigned acknowledges this Certificate of Correction to be the corporate act of the Corporation and as to all matters or facts required to be verified under oath, the undersigned acknowledges that to the best of his knowledge, information and belief, these matters and facts are true in all material respects and that this statement is made under the penalties for perjury.

 

IN WITNESS WHEREOF, the Corporation has caused this Certificate of Correction to be signed in its name and on its behalf by its Executive Vice President and Chief Financial Officer and attested to by its Assistant Secretary on February 21, 2024.

 

ATTEST:

/s/ Kathleen M. Gazerro         

Name:         Kathleen M. Gazerro

Title:           Assistant Secretary

KIMCO REALTY CORPORATION

By:         /s/ Glenn G. Cohen         

     Name:         Glenn G. Cohen

     Title:           Executive Vice President and Chief Financial Officer

 

 

Exhibit 4.12

 

DESCRIPTION OF REGISTRANTS SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

The following description of the Company’s registered securities is based upon the Company’s charter (our “charter”), including the Articles Supplementary thereto, the Company’s Amended and Restated Bylaws (our “bylaws”) and applicable provisions of law. The statements below describing the registered securities are, in all respects, subject to and qualified in their entirety by reference to the applicable provisions of our charter (including the applicable articles supplementary) and bylaws.

 

Authorized Capital Stock

 

The Company has the authority to issue 750,000,000 shares of common stock, par value $0.01 per share, 384,046,000 shares of excess stock, par value $0.01 per share, and 7,054,000 shares of preferred stock, par value $1.00 per share (the “preferred stock”). Of the authorized shares of preferred stock: (i) 10,307 shares are classified and designated as 5.125% Class L Cumulative Redeemable Preferred Stock, par value $1.00 per share (the “Class L preferred stock”); (ii) 10,350 shares are classified and designated as Class L Excess Preferred Stock, par value $1.00 per share; (iii) 10,557 shares are classified and designated as 5.25% Class M Cumulative Redeemable Preferred Stock, par value $1.00 per share (the “Class M preferred stock”); (iv) 10,580 shares are classified and designated as Class M Excess Preferred Stock, par value $1.00 per share; (v) 1,849 shares are classified and designated as 7.25% Class N Cumulative Convertible Perpetual Preferred Stock, par value $1.00 per share (the “Class N preferred stock”); (vi) 1,849 shares are classified and designated as Class N Excess Cumulative Convertible Perpetual Preferred Stock, par value $1.00 per share; and (vii) 7,008,508 shares are undesignated as to class or series.

 

Item 601(b)(4)(vi) of Regulation S-K requires a description of each class of equity securities registered under Section 12 of the Exchange Act. Accordingly, because only our common stock and our depositary shares, representing one one-thousandth of a share of Class L preferred stock, Class M preferred stock or Class N preferred stock, are registered, only the terms of our common stock and our depositary shares representing one-one thousandth of a share of Class L preferred stock, Class M preferred stock or Class N preferred stock are described in detail below.

 

Description of Common Stock

 

General

 

Common Stock Outstanding. The outstanding shares of the Company’s common stock are duly authorized, validly issued, fully paid and nonassessable. The Company’s common stock is listed and principally traded on the New York Stock Exchange under the ticker symbol “KIM.”

 

Voting Rights. The common stock possesses voting rights in the election of directors and in respect of certain other corporate matters, with each share entitling the holder thereof to one vote. Holders of shares of common stock do not have cumulative voting rights in the election of directors, which means that holders of more than 50% of all of the shares of our common stock voting for the election of directors will be able to elect all of the directors if they choose to do so and, accordingly, the holders of the remaining shares will be unable to elect any directors.

 

Preemptive Rights. Holders of the Company’s common stock have no preemptive right to purchase, subscribe for or otherwise acquire any unissued shares of stock of any class or series or other securities.

 

Rights upon Liquidation; Appraisal Rights. Upon our liquidation, dissolution or winding-up, holders of common stock will be entitled to share equally and ratably in any assets available for distribution to them, after payment or provision for payment of our debts and other liabilities, and the preferential amounts owing with respect to any of our outstanding preferred stock. Holders of shares of common stock generally do not have appraisal rights.

 

Transfer Agent and Registrar. EQ Shareowner Services is the transfer agent and registrar for the Company’s common stock.

 

Dividend Rights. Holders of our common stock will be entitled to receive dividends when, as and if authorized by our Board of Directors and declared by us, out of assets legally available therefor. Payment and declaration of dividends on the common stock and purchases of shares thereof by us will be subject to certain restrictions if we fail to pay dividends on our preferred stock.

 

Restrictions on Ownership

 

For us to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), not more than 50% in value of our outstanding stock may be owned, actually or constructively, by five or fewer individuals (as defined in the Code to include certain entities) during the last half of a taxable year. Our stock also must be beneficially owned by 100 or more persons during at least 335 days of a taxable year of 12 months or during a proportionate part of a shorter taxable year. In addition, rent from related party tenants (generally, a tenant of a REIT owned, actually or constructively, 10% or more by the REIT, or a 10% owner of the REIT) is not qualifying income for purposes of the income tests under the Code.

 

Subject to the exceptions specified in our charter, no holder may beneficially own, or be deemed to own by virtue of the constructive ownership provisions of the Code, more than 9.8% in value of the outstanding shares of our common stock. The constructive ownership rules under the Code are complex and may cause common stock owned actually or constructively by a group of related individuals or entities, or both, to be deemed constructively owned by one individual or entity. As a result, the acquisition of less than 9.8% of our common stock (or the acquisition of an interest in an entity which owns, actually or constructively, our common stock) by an individual or entity could cause that individual or entity (or another individual or entity) to own constructively in excess of 9.8% of our common stock, and thus, subject such common stock to the ownership limit.

 

Our Board of Directors may waive the ownership limit with respect to a particular stockholder if evidence satisfactory to our Board of Directors and our tax counsel is presented that such ownership will not then, or in the future, jeopardize our status as a REIT. As a condition of any waiver, our Board of Directors may require a ruling from the Internal Revenue Service, opinion of counsel satisfactory to it or an undertaking, or both, from the applicant with respect to preserving our REIT status. The foregoing restrictions on transferability and ownership will not apply if our Board of Directors determines that it is no longer in our best interests to attempt to qualify, or to continue to qualify, as a REIT. If shares of common stock in excess of the ownership limit, or shares which would otherwise cause the REIT to be beneficially owned by fewer than 100 persons or which would otherwise cause us to be “closely held” within the meaning of the Code, or would otherwise result in our failure to qualify as a REIT, are issued or transferred to any person, that issuance or transfer shall be null and void to the intended transferee, and the intended transferee would acquire no rights to the stock. Shares transferred in excess of the ownership limit, or shares which would otherwise cause us to be “closely held” within the meaning of the Code, or would otherwise result in our failure to qualify as a REIT, will automatically be exchanged for shares of a separate class of stock, which we refer to as excess stock, that will be transferred by operation of law to us as trustee for the exclusive benefit of the person or persons to whom the shares are ultimately transferred, until that time as the intended transferee retransfers the shares. While these shares are held in trust, they will not be entitled to vote or to share in any dividends or other distributions (except upon liquidation). The shares may be retransferred by the intended transferee to any person who may hold those shares at a price not to exceed either:

 

 

(1)

the price paid by the intended transferee; or

 

(2)

if the intended transferee did not give value for such shares (through a gift, devise or otherwise), a price per share equal to the market value of the shares on the date of the purported transfer to the intended transferee, at which point the shares will automatically be exchanged for an equal number of shares of ordinary common stock. In addition, such shares of excess stock held in trust are purchasable by us, or our designee, for a 90-day period at a price equal to the lesser of the price paid for the stock by the intended transferee and the market price for the stock on the date we, or our designee, determines to purchase the stock. This period commences on the date of the violative transfer if the intended transferee gives us notice of the transfer, or the date our Board of Directors determines that a violative transfer has occurred if no notice is provided.

All certificates representing shares of common stock will bear a legend referring to the restrictions described above.

 

All persons who own, directly or by virtue of the attribution provisions of the Code, more than 5% (or such other percentage between 0.5% and 5%, as provided in the Income Tax Regulations promulgated under the Code) of the outstanding shares of common stock must give written notice to us containing the information specified in our charter within 30 days after the close of each year. In addition, each common stockholder shall, upon demand, be required to disclose to us such information with respect to the actual and constructive ownership of shares as we deem necessary to comply with the provisions of the Code applicable to a REIT.

 

Description of Preferred Stock

 

General

 

Rank. Unless otherwise specified in the articles supplementary setting forth the terms of any class or series of preferred stock, the preferred stock will, with respect to rights to the payment of dividends and distribution of our assets and rights upon our liquidation, dissolution or winding-up, rank:

 

 

(1)

senior to all classes or series of our common stock and excess stock, and to all of our equity securities, the terms of which provide that those equity securities are junior to the preferred stock;

 

(2)

on a parity with all of our equity securities other than those referred to in clauses (1) and (3); and

 

(3)

junior to all of our equity securities, the terms of which provide that those equity securities will rank senior to it.

For these purposes, the term “equity securities” does not include convertible debt securities.

 

Conversion Rights. The terms and conditions, if any, upon which shares of any class or series of preferred stock are convertible into common stock, debt securities or another class or series of preferred stock or excess stock, will be set forth in the applicable articles supplementary setting forth the terms of any class or series of preferred stock.

 

Transfer Agent and Registrar. EQ Shareowner Services is the transfer agent and registrar for the Company’s preferred stock.

 

Restrictions on Ownership

 

For us to qualify as a REIT under the Code, not more than 50% in value of our outstanding stock may be owned, actually or constructively, by five or fewer individuals (as defined in the Code to include certain entities) during the last half of a taxable year. Our stock also must be beneficially owned by 100 or more persons during at least 335 days of a taxable year of 12 months or during a proportionate part of a shorter taxable year. In addition, rent from related party tenants (generally, a tenant of a REIT owned, actually or constructively, 10% or more by the REIT, or a 10% owner of the REIT) is not qualifying income for purposes of the income tests under the Code. Therefore, the applicable articles supplementary for each outstanding class of preferred stock contains certain provisions restricting the ownership and transfer of that class of preferred stock. The provisions of the articles supplementary setting forth the terms of the Class L preferred stock and Class M preferred stock relating to the ownership limit for any class or series of preferred stock provide that, subject to some exceptions, no holder of that class or series of preferred stock may beneficially own, or be deemed to own by virtue of the constructive ownership provisions of the Code, preferred stock in excess of the preferred stock ownership limit, equal to 9.8% of the outstanding preferred stock of any class or series. The constructive ownership rules under the Code are complex and may cause preferred stock owned actually or constructively by a group of related individuals and/or entities to be deemed to be constructively owned by one individual or entity. As a result, the acquisition of less than 9.8% of any class or series of our preferred stock (or the acquisition of an interest in an entity which owns, actually or constructively, preferred stock) by an individual or entity could cause that individual or entity (or another individual or entity) to own constructively in excess of 9.8% of that class or series of preferred stock, and thus subject that preferred stock to the preferred stock ownership limit. The provisions of the articles supplementary setting forth the terms of the Class N preferred stock relating to the ownership limit for shares of Class N preferred stock provide that, subject to some exceptions, no holder may own shares of Class N preferred stock in excess of (1) 100% of the then outstanding shares of Class N preferred stock or (2) if fewer, the maximum number of shares of Class N preferred stock that, if then converted into our common stock by the holder, would make such holder the owner of a number of shares of our common stock that would not exceed (a) the ownership limit applicable to our common stock in the charter or, (b) if an excepted holder limit has been created, the excepted holder limit. In addition, no holder may own shares of Class N preferred stock such that the holder would own more than 9.8% of the value of all of the outstanding shares of stock of the Company.

 

Description of Depositary Shares

 

General

 

We have issued and may, in the future, issue depositary shares, each of which represent a fractional interest of a share of a particular class or series of our preferred stock, as specified in the applicable prospectus supplement relating to the depositary shares. Shares of a class or series of preferred stock represented by depositary shares will be deposited under a separate deposit agreement among us, the depositary named therein and the holders from time to time of the depositary receipts issued by the preferred stock depositary which will evidence the depositary shares. Subject to the terms of the deposit agreement, each owner of a depositary receipt will be entitled, in proportion to the fractional interest of a share of a particular class or series of preferred stock represented by the depositary shares evidenced by that depositary receipt, to all the rights and preferences of the class or series of preferred stock represented by those depositary shares (including dividend, voting, conversion, redemption and liquidation rights).

 

The depositary shares will be evidenced by depositary receipts issued pursuant to the applicable deposit agreement. Immediately following the issuance and delivery of a class or series of preferred stock by us to the preferred stock depositary, we will cause the preferred stock depositary to issue, on our behalf, the depositary receipts. Copies of the applicable form of deposit agreement and depositary receipt may be obtained from us upon request, and the statements made hereunder relating to the deposit agreement and the depositary receipts to be issued thereunder are summaries of certain provisions thereof and do not purport to be complete and are subject to, and qualified in their entirety by reference to, all of the provisions of the applicable deposit agreement and related depositary receipts.

 

Dividends and Other Distributions

 

The preferred stock depositary will distribute all cash dividends or other cash distributions received in respect of a class or series of preferred stock to the record holders of depositary receipts evidencing the related depositary shares in proportion to the number of those depositary receipts owned by those holders, subject to certain obligations of holders to file proofs, certificates and other information, and to pay certain charges and expenses to the preferred stock depositary.

 

In the event of a distribution other than in cash, the preferred stock depositary will distribute property received by it to the record holders of depositary receipts entitled thereto, subject to certain obligations of holders to file proofs, certificates and other information, and to pay certain charges and expenses to the preferred stock depositary, unless the preferred stock depositary determines that it is not feasible to make that distribution, in which case the preferred stock depositary may, with our approval, sell that property and distribute the net proceeds from that sale to those holders.

 

No distribution will be made in respect of any depositary share to the extent that it represents any class or series of preferred stock converted into excess preferred stock or otherwise converted or exchanged.

 

Withdrawal of Preferred Stock

 

Upon surrender of the depositary receipts at the corporate trust office of the preferred stock depositary (unless the related depositary shares have previously been called for redemption or converted into excess preferred stock or otherwise), the holders thereof will be entitled to delivery at that office, to or upon that holder’s order, of the number of whole or fractional shares of the class or series of preferred stock and any money or other property represented by the depositary shares evidenced by those depositary receipts. Holders of depositary receipts will be entitled to receive whole or fractional shares of the related class or series of preferred stock on the basis of the proportion of preferred stock represented by each depositary share, as specified in the applicable prospectus supplement, but holders of those shares of preferred stock will not thereafter be entitled to receive depositary shares therefor. If the depositary receipts delivered by the holder evidence a number of depositary shares in excess of the number of depositary shares representing the number of shares of preferred stock to be withdrawn, the preferred stock depositary will deliver to that holder at the same time a new depositary receipt evidencing the excess number of depositary shares.

 

Redemption

 

Whenever we redeem shares of a class or series of preferred stock held by the preferred stock depositary, the preferred stock depositary will redeem, as of the same redemption date, the number of depositary shares representing shares of the class or series of preferred stock so redeemed, provided we shall have paid in full to the preferred stock depositary the redemption price of the preferred stock to be redeemed plus an amount equal to any accrued and unpaid dividends thereon to the date fixed for redemption. The redemption price per depositary share will be equal to the corresponding proportion of the redemption price and any other amounts per share payable with respect to that class or series of preferred stock. If fewer than all the depositary shares are to be redeemed, the depositary shares to be redeemed will be selected pro rata (as nearly as may be practicable without creating fractional depositary shares) or by any other equitable method determined by us that will not result in the issuance of any excess preferred stock.

 

From and after the date fixed for redemption, all dividends in respect of the shares of a class or series of preferred stock so called for redemption will cease to accrue, the depositary shares so called for redemption will no longer be deemed to be outstanding and all rights of the holders of the depositary receipts evidencing the depositary shares so called for redemption will cease, except the right to receive any moneys payable upon their redemption and any money or other property to which the holders of those depositary receipts were entitled upon their redemption and surrender thereof to the preferred stock depositary.

 

Voting

 

Upon receipt of notice of any meeting at which the holders of a class or series of preferred stock deposited with the preferred stock depositary are entitled to vote, the preferred stock depositary will mail the information contained in that notice of meeting to the record holders of the depositary receipts, evidencing the depositary shares which represent that class or series of preferred stock. Each record holder of depositary receipts evidencing depositary shares on the record date (which will be the same date as the record date for that class or series of preferred stock) will be entitled to instruct the preferred stock depositary as to the exercise of the voting rights pertaining to the amount of preferred stock represented by that holder’s depositary shares. The preferred stock depositary will vote the amount of that class or series of preferred stock represented by those depositary shares in accordance with those instructions, and we will agree to take all reasonable action which may be deemed necessary by the preferred stock depositary in order to enable the preferred stock depositary to do so. The preferred stock depositary will abstain from voting the amount of that class or series of preferred stock represented by those depositary shares to the extent it does not receive specific instructions from the holders of depositary receipts evidencing those depositary shares. The preferred stock depositary shall not be responsible for any failure to carry out any instruction to vote, or for the manner or effect of any vote made, as long as that action or non-action is in good faith and does not result from negligence or willful misconduct of the preferred stock depositary.

 

Liquidation Preference

 

In the event of our liquidation, dissolution or winding-up, whether voluntary or involuntary, the holders of each depositary receipt will be entitled to the fraction of the liquidation preference accorded each share of preferred stock represented by the depositary shares evidenced by that depositary receipt, as set forth in the applicable prospectus supplement.

 

Conversion

 

The depositary shares, as such, are not generally convertible into our common stock or any of our other securities or property, except in connection with certain conversions in connection with the preservation of our status as a REIT, or, in the case of depositary shares representing fractional interests in our Class N preferred stock, at the option of the holder. Nevertheless, if so specified in the applicable prospectus supplement relating to an offering of depositary shares, the depositary receipts may be surrendered by holders thereof to the preferred stock depositary with written instructions to the preferred stock depositary to instruct us to cause conversion of a class or series of preferred stock represented by the depositary shares evidenced by those depositary receipts into whole shares of our common stock, other shares of a class or series of preferred stock (including excess preferred stock) or other shares of stock, and we have agreed that upon receipt of those instructions and any amounts payable in respect thereof, we will cause the conversion thereof utilizing the same procedures as those provided for delivery of preferred stock to effect that conversion. If the depositary shares evidenced by a depositary receipt are to be converted in part only, a new depositary receipt or receipts will be issued for any depositary shares not to be converted. No fractional shares of common stock will be issued upon conversion, and if that conversion would result in a fractional share being issued, an amount will be paid in cash by us equal to the value of the fractional interest based upon the closing price of the common stock on the last business day prior to the conversion.

 

Amendment and Termination of the Deposit Agreements

 

The form of depositary receipt evidencing the depositary shares, which represent the preferred stock, and any provision of the applicable deposit agreement may, at any time, be amended by agreement between us and the preferred stock depositary. However, any amendment that materially and adversely alters the rights of the holders of depositary receipts or that would be materially and adversely inconsistent with the rights granted to the holders of the related class or series of preferred stock, will not be effective unless that amendment has been approved by the existing holders of at least two-thirds of the depositary shares evidenced by the depositary receipts then outstanding. No amendment shall impair the right, subject to certain exceptions in the deposit agreement, of any holder of depositary receipts to surrender any depositary receipt with instructions to deliver to the holder the related class or series of preferred stock and all money and other property, if any, represented hereby, except in order to comply with law. Every holder of an outstanding depositary receipt at the time any of those types of amendments becomes effective, shall be deemed, by continuing to hold that depositary receipt, to consent and agree to that amendment and to be bound by the deposit agreement as amended thereby.

 

We may terminate the deposit agreement upon not less than 30 days’ prior written notice to the preferred stock depositary if:

 

 

(1)

such termination is necessary to preserve our status as a REIT; or

 

(2)

a majority of each class or series of preferred stock subject to that deposit agreement consents to that termination, whereupon the preferred stock depositary shall deliver or make available to each holder of depositary receipts, upon surrender of the depositary receipts held by that holder, that number of whole or fractional shares of each class or series of preferred stock as are represented by the depositary shares evidenced by those depositary receipts together with any other property held by the preferred stock depositary with respect to those depositary receipts.

We have agreed that if the deposit agreement is terminated to preserve our status as a REIT, then we will use our best efforts to list each class or series of preferred stock issued upon surrender of the related depositary shares on a national securities exchange. In addition, the deposit agreement will automatically terminate if:

 

(1)

all outstanding depositary shares issued thereunder shall have been redeemed;

 

(2)

there shall have been a final distribution in respect of each class or series of preferred stock subject to that deposit agreement in connection with our liquidation, dissolution or winding-up and that distribution shall have been distributed to the holders of depositary receipts evidencing the depositary shares representing that class or series of preferred stock; or

 

(3)

each share of preferred stock, subject to that deposit agreement, shall have been converted into our stock not so represented by depositary shares.

 

Charges of Preferred Stock Depositary

 

We will pay all transfer and other taxes and governmental charges arising solely from the existence of the deposit agreement. In addition, we will pay the fees and expenses of the preferred stock depositary in connection with the performance of its duties under the deposit agreement. However, holders of depositary receipts will pay the fees and expenses of the preferred stock depositary for any duties requested by those holders to be performed, which are outside of those expressly provided for in the deposit agreement.

 

Description of Class L Preferred Stock and Depositary Shares

 

General

 

The Company is authorized to issue 10,307 shares of 5.125% Class L Cumulative Redeemable Preferred Stock, par value $1.00 per share (the “Class L preferred stock”).

 

Each Class L depositary share represents a 1/1000 fractional interest in a share of Class L preferred stock. The Class L preferred stock has been deposited with Wells Fargo Bank, N.A., as depositary (referred to herein as the preferred stock depositary), under a deposit agreement between us, the preferred stock depositary and the holders from time to time of the depositary receipts issued by the preferred stock depositary thereunder. The depositary receipts evidence the depositary shares. Subject to the terms of the deposit agreement, each holder of a depositary receipt representing a depositary share is entitled to all the rights and preferences of a fractional interest in a share of Class L preferred stock (including dividends, voting, redemption, and liquidation rights and preferences). The Class L depositary shares are listed on the NYSE under the symbol “KIMprL.”

 

Ranking

 

With respect to the payment of dividends and distribution of our assets and rights upon liquidation, dissolution or winding-up, the Class L preferred stock ranks: (i) senior to our common stock and to all other equity securities that, by their terms, rank junior to the Class L preferred stock; (ii) on a parity with all equity securities issued by us other than those referred to in clause (i) or clause (iii), including our outstanding Class M preferred stock and Class N preferred stock; and (iii) junior to all equity securities issued by us whose senior ranking is consented to by holders of at least two-thirds of the shares of the Class L preferred stock outstanding at the time. For these purposes, the term “equity securities” does not include convertible debt securities. We currently have no equity securities outstanding senior to the Class L preferred stock.

 

Dividends

 

Holders of the Class L preferred stock shall be entitled to receive, when, as and if authorized by our Board of Directors and declared by us, out of funds legally available for payment, cumulative cash dividends at the rate of 5.125% of the $25,000.00 liquidation preference per year (equivalent to an annual rate of $1.28125 per depositary share). Dividends on the Class L preferred stock accrue and are cumulative from, and including, the date of original issue and shall be payable, subject to authorization by our Board of Directors and declaration by us, quarterly in arrears on January 15, April 15, July 15 and October 15 of each year or, if any such date is not a business day, the next succeeding business day. Dividends payable on the Class L preferred stock are computed on the basis of a 360-day year consisting of twelve 30-day months. The preferred stock depositary will distribute cash dividends received in respect of the Class L preferred stock to the record holders of the depositary receipts as of the close of business on the applicable record date, which shall be the first day of the calendar month in which the applicable dividend payment date falls or such other date designated by our Board of Directors for the payment of dividends that is not more than 30, nor less than 10, days prior to the dividend payment date.

 

No full dividends shall be declared or paid or set apart for payment on any class or series of equity securities ranking, as to dividends or payment upon liquidation, dissolution or winding-up, on a parity with or junior to our Class L preferred stock unless full cumulative dividends have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof set apart for that payment on the Class L preferred stock for all past dividend periods.

 

When dividends are not paid in full (or a sum sufficient for their full payment is not so set apart) on the Class L preferred stock and any other class or series of equity securities ranking on a parity as to dividends or payment upon liquidation, dissolution or winding-up with the Class L preferred stock, all dividends declared upon the Class L preferred stock and any other such equity securities shall be declared pro rata so that the amount of dividends declared per share on the Class L preferred stock and all other such parity securities shall, in all cases, bear to each other the same ratio that accrued and unpaid dividends per share on the Class L preferred stock and all other such parity securities bear to each other.

 

Except as provided in the immediately preceding paragraph, unless full cumulative dividends on the Class L preferred stock have been, or contemporaneously are, declared and paid or declared and a sum sufficient for the payment thereof set apart for payment for all past dividend periods, then no dividends (other than in the form of our common stock or any of our other equity securities ranking junior to the Class L preferred stock as to dividends and upon our liquidation, dissolution or winding-up) shall be declared or paid or set apart for payment or other distribution shall be declared or made upon our common stock, excess stock or any of our other equity securities ranking junior to or on a parity with the Class L preferred stock as to dividends or upon liquidation, dissolution or winding-up, nor shall any common stock, excess stock or any of our other equity securities ranking junior to or on a parity with the Class L preferred stock as to dividends or upon our liquidation, dissolution or winding-up be redeemed, purchased or otherwise acquired for any consideration (or any moneys be paid to or made available for a sinking fund for the redemption of any such equity securities) by us (except by conversion into or exchange for other of our equity securities ranking junior to the Class L preferred stock as to dividends and upon our liquidation, dissolution or winding-up).

 

No dividends on the Class L preferred stock shall be authorized by our Board of Directors or declared by us or be paid or set apart for payment by us at such time as the terms and provisions of any agreement of ours, including any agreement relating to our indebtedness, prohibits the authorization, declaration, payment or setting apart for payment, or provides that the authorization, declaration, payment or setting apart for payment would constitute a breach thereof or a default thereunder, or if the declaration or payment shall be restricted or prohibited by law.

 

Notwithstanding the foregoing, dividends on the Class L preferred stock will accrue whether or not we have earnings, whether or not there are funds legally available for the payment of the dividends and whether or not the dividends are authorized or declared. Accrued but unpaid dividends on the Class L preferred stock will not bear interest and holders of the Class L preferred stock will not be entitled to any dividends in excess of full cumulative dividends, as described above.

 

Any dividend payment made on the Class L preferred stock shall first be credited against the earliest accrued but unpaid dividend due with respect to the shares which remains payable.

 

Liquidation Preference

 

In the event of any liquidation, dissolution or winding-up of our affairs, subject to the rights of any class or series of equity securities issued by us that rank senior to Class L preferred stock with respect the distribution of assets upon our liquidation, dissolution or winding-up, the holders of the Class L preferred stock are entitled to be paid out of our assets legally available for distribution to our stockholders, liquidating distributions in cash or property at its fair market value as determined by our Board of Directors in the amount of a liquidation preference of $25,000.00 per share (equivalent to $25.00 per depositary share), plus an amount equal to all accrued and unpaid dividends to, but excluding, the date of the liquidation, dissolution or winding-up, before any distribution or payment shall be made to the holders of any common stock, excess stock or any other class or series of equity securities issued by us ranking junior to our Class L preferred stock as to liquidation rights. After payment of the full amount of the liquidating distributions to which they are entitled, the holders of the Class L preferred stock will have no right or claim to any of our remaining assets. Our consolidation or merger with or into any other entity, or the sale, lease, transfer or conveyance of all or substantially all of our property or business, individually or as part of a series of transactions, shall not be deemed to constitute a liquidation, dissolution or winding-up of our affairs.

In the event that, upon any such voluntary or involuntary liquidation, dissolution or winding-up, our legally available assets are insufficient to pay the amount of the liquidating distributions on all outstanding shares of Class L preferred stock and the corresponding amounts payable on all other classes or series of equity securities issued by us ranking on a parity with the Class L preferred stock as to liquidation rights, then the holders of the depositary shares representing the Class L preferred stock and all other classes or series of equity securities issued by us ranking on a parity with the Class L preferred stock as to liquidation rights, including all other preferred stock, shall share ratably in any distribution of assets in proportion to the full liquidating distributions to which they would otherwise be respectively entitled.

 

Optional Redemption

 

We may redeem, at our option upon not less than 30, nor more than 60, days’ written notice, the Class L preferred stock (and the preferred stock depositary will redeem the number of depositary shares representing the Class L preferred stock so redeemed), in whole or in part, at any time or from time to time, for cash at a redemption price of $25,000.00 per share (equivalent to $25.00 per depositary share), plus accrued and unpaid dividends thereon, if any, to, but excluding, the date fixed for redemption, without interest. If fewer than all of the outstanding shares of Class L preferred stock and depositary shares are to be redeemed, the shares of Class L preferred stock and depositary shares to be redeemed will be determined pro rata (as nearly as practicable without creating fractional shares) or in such other equitable manner prescribed by our Board of Directors that will not result in a violation of the ownership limitations applicable to the Class L preferred stock or by the rules and procedures of the Depository Trust Company (“DTC”). In addition, we may redeem shares of Class L preferred stock at any time in certain circumstances relating to the maintenance of our ability to qualify as a REIT for federal income tax purposes.

 

We will give the preferred stock depositary prior written notice of redemption of the deposited Class L preferred stock. A similar notice will be mailed by the preferred stock depositary, postage prepaid, not less than 30, nor more than 60, days prior to the date fixed for redemption of the Class L preferred stock and the depositary shares, addressed to the respective holders of depositary shares to be redeemed at their respective addresses shown on the records of the preferred stock depositary. The notice of redemption may be contingent on the occurrence of a future event. No failure to give notice or any defect of the notice or in the mailing of the notice shall affect the validity of the proceedings for the redemption of any shares of Class L preferred stock except as to the holder to whom notice was defective or not given. Each notice shall state:

 

 

the date fixed for redemption of the Class L preferred stock and the depositary shares;

 

the redemption price;

 

the total number of shares of Class L preferred stock and the number of depositary shares to be redeemed;

 

the place or places where certificates representing the Class L preferred stock and the depositary receipts are to be surrendered for payment of the redemption price; and

 

that dividends on the shares to be redeemed will cease to accrue on the redemption date.

The notice mailed to each holder shall also specify the number of shares of Class L preferred stock and depositary shares to be redeemed from each holder.

 

On or after the redemption date, each holder of Class L preferred stock to be redeemed must present and surrender the certificates representing the Class L preferred stock at the place designated in the redemption notice, and then the redemption price of such Class L preferred stock and any accrued and unpaid dividends payable upon such redemption will be paid to the person who presented and surrendered such certificates, and each surrendered certificate will be canceled. Similarly, on or after the redemption date, each holder of depositary receipts representing depositary shares to be redeemed must present and surrender the depositary receipts representing depositary shares at the place designated in the redemption notice, and then the redemption price of such depositary shares and any accrued and unpaid dividends payable upon such redemption will be paid to the person who presented and surrendered such depositary receipts, and each surrendered depositary receipt will be canceled. In the event that fewer than all the shares of Class L preferred stock or depositary shares represented by any certificate or depositary receipt are to be redeemed, a new certificate or depositary receipt will be issued representing the unredeemed shares of preferred stock or depositary shares, as the case may be.

 

At our election, we may, prior to the redemption date, irrevocably deposit cash in an amount equal to the redemption price (including accrued and unpaid dividends) of the Class L preferred stock called for redemption in trust for the holders thereof with a bank or trust company, in which case the notice to holders of the Class L preferred stock and depositary shares to be redeemed will:

 

 

specify the office of such bank or trust company as the place of payment of the redemption price; and

 

call upon such holders to surrender the certificates or depositary receipts, as the case may be, representing such shares at such place on or about the date fixed in such redemption notice (which may not be later than the redemption date) against payment of the redemption price (including all accrued and unpaid dividends up to, but excluding, the redemption date). Subject to applicable law, any moneys deposited which remain unclaimed at the end of two years after the redemption date will be returned to us by such bank or trust company.

The holders of depositary shares at the close of business on a record date of any dividend will be entitled to receive the dividend payable with respect to the Class L preferred stock represented thereby on the corresponding payment date, notwithstanding the redemption thereof between such dividend record date and the corresponding dividend payment date. Except as provided above, we will make no payment or allowance for unpaid dividends, whether or not in arrears, on shares of Class L preferred stock to be redeemed.

 

If notice of redemption of any shares of Class L preferred stock has been given and if the funds necessary for that redemption have been set apart by us in trust for the benefit of the holders of any shares of Class L preferred stock so called for redemption, then from and after the redemption date, dividends will cease to accrue on those shares of Class L preferred stock, those shares of Class L preferred stock will no longer be deemed outstanding and such shares will not thereafter be transferred (except with our consent) on our books, and all rights of the holders of those shares will terminate, except the right to receive the redemption price (including all accrued and unpaid dividends up to, but excluding, the redemption date).

 

Notwithstanding the foregoing, unless full cumulative dividends on all outstanding shares of Class L preferred stock have been, or contemporaneously are, declared and paid or declared and a sum sufficient for the payment set apart for payment for all past dividend periods, no shares of Class L preferred stock or depositary shares representing Class L preferred stock will be redeemed unless all outstanding shares of Class L preferred stock and depositary shares representing Class L preferred stock are simultaneously redeemed. Unless full cumulative dividends on all outstanding Class L preferred stock and depositary shares representing Class L preferred stock have been, or contemporaneously are, declared and paid or declared and a sum sufficient for the payment thereof set apart for payment for all past dividend periods, we will not purchase or otherwise acquire, directly or indirectly, any shares of Class L preferred stock or depositary shares representing Class L preferred stock (except by conversion into or exchange for equity securities ranking junior to the Class L preferred stock as to dividend and liquidation rights). However, the foregoing will not prevent the purchase or acquisition of shares of Class L preferred stock or depositary shares representing Class L preferred stock pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding shares of Class L preferred stock and depositary shares representing Class L preferred stock.

 

The Class L preferred stock and the depositary shares have no stated maturity date and will not be subject to any sinking fund or mandatory redemption provisions (except in connection with the preservation of our REIT status).

 

Voting Rights

 

Except as indicated herein, the holders of the depositary shares representing the Class L preferred stock have no voting rights. On any matter on which the Class L preferred stock is entitled to vote, each share of Class L preferred stock is entitled to one thousand votes. As a result, each depositary share will be entitled to one vote on each matter for which the holders of shares of Class L preferred stock are entitled to vote.

 

If and whenever dividends payable on the Class L preferred stock are in arrears for six or more dividend periods, whether or not consecutive, holders of Class L preferred stock (voting together as a class with holders of Class M preferred stock, Class N preferred stock and all other classes or series of preferred stock upon which like voting rights have been conferred and are exercisable) will be entitled to elect two additional directors to serve on our Board of Directors until we pay all accrued and unpaid dividends on the Class L preferred stock to which the holders of such Class L preferred stock are entitled.

 

So long as any Class L preferred stock remains outstanding, we will not, without the affirmative vote or consent of the holders of at least two-thirds of the shares of Class L preferred stock outstanding at the time, given in person or by proxy, either in writing or at a meeting (with the holders of Class L preferred stock voting separately as a class): (i) authorize or create, or increase the authorized or issued amount of, any class or series of equity securities issued by us that rank senior to Class L preferred stock with respect to payment of dividends or the distribution of assets upon our liquidation, dissolution or winding-up, or reclassify any of our authorized stock into such equity securities or create, authorize or issue any obligation or security convertible into or evidencing the right to purchase any such equity securities; or (ii) amend, alter or repeal the provisions of the Charter, whether by merger, consolidation or otherwise, so as to materially and adversely affect any right, preference, privilege or voting power of the holders of Class L preferred stock; except that (1) with respect to the occurrence of any of the events described in (ii) above, so long as the Class L preferred stock remains outstanding with the terms of the Class L preferred stock materially unchanged or is converted into a security in another entity with the terms materially unchanged, the occurrence of such event will not be deemed to materially and adversely affect the rights, preferences, privileges or voting powers of holders of Class L preferred stock and (2) (A) any increase in the amount of the authorized shares of Class L preferred stock or the authorization or issuance of any other class or series of equity securities or (B) any increase in the number of authorized shares of Class L preferred stock or any other class or series of equity securities, in each case ranking on a parity with or junior to the Class L preferred stock with respect to the payment of dividends and the distribution of assets upon our liquidation, dissolution or winding-up, will not be deemed to materially and adversely affect such rights, preferences, privileges or voting powers.

 

The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which the vote would otherwise be required shall be effected, all outstanding shares of Class L preferred stock shall have been redeemed or called for redemption and sufficient funds shall have been deposited in trust to effect the redemption.

 

Conversion

 

The Class L preferred stock and the depositary shares representing Class L preferred stock are not convertible into or exchangeable for any other property or securities, except that, in limited circumstances, the Class L preferred stock and the depositary shares representing Class L preferred stock may be automatically converted into Class L excess preferred stock or depositary shares representing Class L excess preferred stock, as applicable.

 

Description of Class M Preferred Stock and Depositary Shares

 

General

 

The Company is authorized to issue 10,557 shares of 5.25% Class M Cumulative Redeemable Preferred Stock, par value $1.00 per share (the “Class M preferred stock”).

 

Each Class M depositary share represents a 1/1000 fractional interest in a share of Class M preferred stock. The Class M preferred stock has been deposited with Wells Fargo Bank, N.A., as depositary (referred to herein as the preferred stock depositary), under a deposit agreement between us, the preferred stock depositary and the holders from time to time of the depositary receipts issued by the preferred stock depositary thereunder. The depositary receipts evidence the depositary shares. Subject to the terms of the deposit agreement, each holder of a depositary receipt representing a depositary share is entitled to all the rights and preferences of a fractional interest in a share of Class M preferred stock (including dividends, voting, redemption and liquidation rights and preferences). The Class M depositary shares are listed on the NYSE under the symbol “KIMprM”.

 

Ranking

 

With respect to the payment of dividends and distribution of our assets and rights upon liquidation, dissolution or winding-up, the Class M preferred stock ranks: (i) senior to our common stock and to all other equity securities that, by their terms, rank junior to the Class M preferred stock; (ii) on a parity with all equity securities issued by us, other than those referred to in clause (i) or clause (iii), including our outstanding Class L preferred stock and Class N preferred stock; and (iii) junior to all equity securities issued by us whose senior ranking is consented to by holders of at least two-thirds of the shares of the Class M preferred stock outstanding at the time. For these purposes, the term “equity securities” does not include convertible debt securities. We currently have no equity securities outstanding senior to the Class M preferred stock.

 

Dividends

 

Holders of the Class M preferred stock shall be entitled to receive, when, as and if authorized by our Board of Directors and declared by us, out of funds legally available for payment, cumulative cash dividends at the rate of 5.25% of the $25,000.00 liquidation preference per year (equivalent to an annual rate of $1.3125 per depositary share). Dividends on the Class M preferred stock accrue and are cumulative from, and including, the date of original issue, and shall be payable, subject to authorization by our Board of Directors and declaration by us, quarterly in arrears on January 15, April 15, July 15 and October 15 of each year or, if any such date is not a business day, the next succeeding business day. Dividends payable on the Class M preferred stock will be computed on the basis of a 360-day year consisting of twelve 30-day months. The preferred stock depositary will distribute cash dividends received in respect of the Class M preferred stock to the record holders of the depositary receipts as of the close of business on the applicable record date, which shall be the first day of the calendar month in which the applicable dividend payment date falls, or such other date designated by our Board of Directors for the payment of dividends that is not more than 30, nor less than 10, days prior to the dividend payment date.

 

No full dividends shall be declared or paid or set apart for payment on any class or series of equity securities ranking, as to dividends or payment upon liquidation, dissolution or winding-up, on a parity with or junior to our Class M preferred stock unless full cumulative dividends have been, or contemporaneously are, declared and paid or declared and a sum sufficient for the payment thereof set apart for that payment on the Class M preferred stock for all past dividend periods.

 

When dividends are not paid in full (or a sum sufficient for their full payment is not so set apart) on the Class M preferred stock and any other class or series of equity securities ranking on a parity as to dividends or payment upon liquidation, dissolution or winding-up with the Class M preferred stock, all dividends declared upon the Class M preferred stock and any other such equity securities shall be declared pro rata so that the amount of dividends declared per share on the Class M preferred stock, and all other such parity securities shall in all cases bear to each other the same ratio that accrued and unpaid dividends per share on the Class M preferred stock and all other such parity securities bear to each other.

 

Except as provided in the immediately preceding paragraph, unless full cumulative dividends on the Class M preferred stock have been, or contemporaneously are, declared and paid or declared and a sum sufficient for the payment thereof set apart for payment for all past dividend periods, then no dividends (other than in the form of our common stock or any of our other equity securities ranking junior to the Class M preferred stock as to dividends and upon our liquidation, dissolution or winding-up) shall be declared or paid or set apart for payment or other distribution shall be declared or made upon our common stock, excess stock or any of our other equity securities ranking junior to or on a parity with the Class M preferred stock as to dividends or upon liquidation, dissolution or winding-up, nor shall any common stock, excess stock or any of our other equity securities ranking junior to or on a parity with the Class M preferred stock as to dividends or upon our liquidation, dissolution or winding-up be redeemed, purchased or otherwise acquired for any consideration (or any moneys be paid to or made available for a sinking fund for the redemption of any such equity securities) by us (except by conversion into or exchange for other of our equity securities ranking junior to the Class M preferred stock as to dividends and upon our liquidation, dissolution or winding-up).

 

No dividends on the Class M preferred stock shall be authorized by our Board of Directors or declared by us or be paid or set apart for payment by us at such time as the terms and provisions of any agreement of ours, including any agreement relating to our indebtedness, prohibits the authorization, declaration, payment or setting apart for payment, or provides that the authorization, declaration, payment or setting apart for payment would constitute a breach thereof or a default thereunder, or if the declaration or payment shall be restricted or prohibited by law.

 

Notwithstanding the foregoing, dividends on the Class M preferred stock will accrue whether or not we have earnings, whether or not there are funds legally available for the payment of the dividends and whether or not the dividends are authorized or declared. Accrued but unpaid dividends on the Class M preferred stock will not bear interest, and holders of the Class M preferred stock will not be entitled to any dividends in excess of full cumulative dividends, as described above.

 

Any dividend payment made on the Class M preferred stock shall first be credited against the earliest accrued but unpaid dividend due with respect to the shares which remains payable.

 

Liquidation Preference

 

In the event of any liquidation, dissolution or winding-up of our affairs, subject to the rights of any class or series of equity securities issued by us that rank senior to Class M preferred stock with respect to the distribution of assets upon our liquidation, dissolution or winding-up, the holders of the Class M preferred stock are entitled to be paid out of our assets legally available for distribution to our stockholders liquidating distributions in cash or property at its fair market value, as determined by our Board of Directors in the amount of a liquidation preference of $25,000.00 per share (equivalent to $25.00 per depositary share), plus an amount equal to all accrued and unpaid dividends to, but excluding, the date of the liquidation, dissolution or winding-up, before any distribution or payment shall be made to the holders of any common stock, excess stock or any other class or series of equity securities issued by us ranking junior to our Class M preferred stock as to liquidation rights. After payment of the full amount of the liquidating distributions to which they are entitled, the holders of the Class M preferred stock will have no right or claim to any of our remaining assets. Our consolidation or merger with or into any other entity or the sale, lease, transfer or conveyance of all or substantially all of our property or business, individually or as part of a series of transactions, shall not be deemed to constitute a liquidation, dissolution or winding-up of our affairs.

 

In the event that, upon any such voluntary or involuntary liquidation, dissolution or winding-up, our legally available assets are insufficient to pay the amount of the liquidating distributions on all outstanding shares of Class M preferred stock and the corresponding amounts payable on all other classes or series of equity securities issued by us ranking on a parity with the Class M preferred stock as to liquidation rights, then the holders of the depositary shares representing the Class M preferred stock and all other classes or series of equity securities issued by us ranking on a parity with the Class M preferred stock as to liquidation rights, including all other preferred stock, shall share ratably in any distribution of assets in proportion to the full liquidating distributions to which they would otherwise be respectively entitled.

 

Optional Redemption

 

We may redeem, at our option upon not less than 30, nor more than 60, days’ written notice, the Class M preferred stock (and the preferred stock depositary will redeem the number of depositary shares representing the Class M preferred stock so redeemed), in whole or in part, at any time or from time to time, for cash at a redemption price of $25,000.00 per share (equivalent to $25.00 per depositary share), plus accrued and unpaid dividends thereon, if any, to, but excluding, the date fixed for redemption, without interest. If fewer than all of the outstanding shares of Class M preferred stock and depositary shares are to be redeemed, the shares of Class M preferred stock and depositary shares to be redeemed will be determined by lot (as nearly as practicable without creating fractional shares) or in such other equitable manner prescribed by our Board of Directors that will not result in a violation of the ownership limitations applicable to the Class M preferred stock or by the rules and procedures of DTC. In addition, we may redeem shares of Class M preferred stock at any time in certain circumstances relating to the maintenance of our ability to qualify as a REIT for federal income tax purposes.

 

We will give the preferred stock depositary prior written notice of redemption of the deposited Class M preferred stock. A similar notice will be mailed by the preferred stock depositary, postage prepaid, not less than 30, nor more than 60, days prior to the date fixed for redemption of the Class M preferred stock and the depositary shares, addressed to the respective holders of depositary shares to be redeemed at their respective addresses shown on the records of the preferred stock depositary. The notice of redemption may be contingent on the occurrence of a future event. No failure to give notice or any defect of the notice or in the mailing of the notice shall affect the validity of the proceedings for the redemption of any shares of Class M preferred stock, except as to the holder to whom notice was defective or not given. Each notice shall state:

 

 

the date fixed for redemption of the Class M preferred stock and the depositary shares;

 

the redemption price;

 

the total number of shares of Class M preferred stock and the number of depositary shares to be redeemed;

 

the place or places where certificates representing the Class M preferred stock and the depositary receipts are to be surrendered for payment of the redemption price; and

 

that dividends on the shares to be redeemed will cease to accrue on the redemption date.

The notice mailed to each holder shall also specify the number of shares of Class M preferred stock and depositary shares to be redeemed from each holder.

 

On or after the redemption date, each holder of Class M preferred stock to be redeemed must present and surrender the certificates representing the Class M preferred stock at the place designated in the redemption notice, and then the redemption price of such Class M preferred stock and any accrued and unpaid dividends payable upon such redemption will be paid to the person who presented and surrendered such certificates, and each surrendered certificate will be canceled. Similarly, on or after the redemption date, each holder of depositary receipts representing depositary shares to be redeemed must present and surrender the depositary receipts representing depositary shares at the place designated in the redemption notice, and then the redemption price of such depositary shares and any accrued and unpaid dividends payable upon such redemption will be paid to the person who presented and surrendered such depositary receipts, and each surrendered depositary receipt will be canceled. In the event that fewer than all the shares of Class M preferred stock or depositary shares represented by any certificate or depositary receipt are to be redeemed, a new certificate or depositary receipt will be issued, representing the unredeemed shares of preferred stock or depositary shares, as the case may be.

 

At our election, we may, prior to the redemption date, irrevocably deposit cash in an amount equal to the redemption price (including accrued and unpaid dividends) of the Class M preferred stock called for redemption in trust for the holders thereof with a bank or trust company, in which case the notice to holders of the Class M preferred stock and depositary shares to be redeemed will:

 

 

specify the office of such bank or trust company as the place of payment of the redemption price; and

 

call upon such holders to surrender the certificates or depositary receipts, as the case may be, representing such shares at such place on or about the date fixed in such redemption notice (which may not be later than the redemption date) against payment of the redemption price (including all accrued and unpaid dividends up to, but excluding, the redemption date). Subject to applicable law, any moneys deposited which remain unclaimed at the end of two years after the redemption date will be returned to us by such bank or trust company.

The holders of depositary shares at the close of business on a record date of any dividend will be entitled to receive the dividend payable with respect to the Class M preferred stock represented thereby on the corresponding payment date, notwithstanding the redemption thereof between such dividend record date and the corresponding dividend payment date. Except as provided above, we will make no payment or allowance for unpaid dividends, whether or not in arrears, on shares of Class M preferred stock to be redeemed.

 

If notice of redemption of any shares of Class M preferred stock has been given and if the funds necessary for that redemption have been set apart by us in trust for the benefit of the holders of any shares of Class M preferred stock so called for redemption, then from and after the redemption date, dividends will cease to accrue on those shares of Class M preferred stock, those shares of Class M preferred stock will no longer be deemed outstanding and such shares will not thereafter be transferred (except with our consent) on our books, and all rights of the holders of those shares will terminate, except the right to receive the redemption price (including all accrued and unpaid dividends up to, but excluding, the redemption date).

 

Notwithstanding the foregoing, unless full cumulative dividends on all outstanding shares of Class M preferred stock have been or contemporaneously are paid or declared and a sum sufficient for the payment set apart for payment for all past dividend periods, no shares of Class M preferred stock or depositary shares representing Class M preferred stock will be redeemed unless all outstanding shares of Class M preferred stock and depositary shares representing Class M preferred stock are simultaneously redeemed. Unless full cumulative dividends on all outstanding Class M preferred stock and depositary shares representing Class M preferred stock have been, or contemporaneously are, paid or declared, and a sum sufficient for the payment thereof set apart for payment for all past dividend periods, we will not purchase or otherwise acquire, directly or indirectly, any shares of Class M preferred stock or depositary shares representing Class M preferred stock (except by conversion into, or exchange for, equity securities ranking junior to the Class M preferred stock as to dividend and liquidation rights). However, the foregoing will not prevent the purchase or acquisition of shares of Class M preferred stock or depositary shares representing Class M preferred stock pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding shares of Class M preferred stock and depositary shares representing Class M preferred stock.

 

The Class M preferred stock and the depositary shares have no stated maturity date and will not be subject to any sinking fund or mandatory redemption provisions (except in connection with the preservation of our REIT status).

 

Voting Rights

 

Except as indicated herein, the holders of the depositary shares representing the Class M preferred stock will have no voting rights. On any matter on which the Class M preferred stock is entitled to vote, each share of Class M preferred stock shall be entitled to one thousand votes. As a result, each depositary share will be entitled to one vote on each matter for which the holders of shares of Class M preferred stock are entitled to vote.

 

If and whenever dividends payable on the Class M preferred stock are in arrears for six or more dividend periods, whether or not consecutive, holders of Class M preferred stock (voting together as a class with holders of Class L preferred stock, Class N preferred stock and all other classes or series of preferred stock upon which like voting rights have been conferred and are exercisable) will be entitled to elect two additional directors to serve on our Board of Directors until we pay all accrued and unpaid dividends on the Class M preferred stock to which the holders of such Class M preferred stock are entitled.

 

So long as any Class M preferred stock remains outstanding, we will not, without the affirmative vote or consent of the holders of at least two-thirds of the shares of Class M preferred stock outstanding at the time, given in person or by proxy, either in writing or at a meeting (with the holders of Class M preferred stock voting separately as a class): (i) authorize or create, or increase the authorized or issued amount of, any class or series of equity securities issued by us that rank senior to Class M preferred stock with respect to payment of dividends or the distribution of assets upon our liquidation, dissolution or winding-up, or reclassify any of our authorized stock into such equity securities or create, authorize or issue any obligation or security convertible into or evidencing the right to purchase any such equity securities; or (ii) amend, alter or repeal the provisions of the Charter, whether by merger, consolidation, or otherwise, so as to materially and adversely affect any right, preference, privilege or voting power of the holders of Class M preferred stock; except that (1) with respect to the occurrence of any of the events described in (ii) above, so long as the Class M preferred stock remains outstanding with the terms of the Class M preferred stock materially unchanged or is converted into a security in another entity with the terms materially unchanged, the occurrence of such event will not be deemed to materially and adversely affect the rights, preferences, privileges or voting powers of holders of Class M preferred stock and (2) (A) any increase in the amount of the authorized shares of Class M preferred stock or the authorization or issuance of any other class or series of equity securities or (B) any increase in the number of authorized shares of Class M preferred stock or any other class or series of equity securities, in each case ranking on a parity with or junior to the Class M preferred stock with respect to the payment of dividends and the distribution of assets upon our liquidation, dissolution or winding-up, will not be deemed to materially and adversely affect such rights, preferences, privileges or voting powers.

 

The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which the vote would otherwise be required shall be effected, all outstanding shares of Class M preferred stock shall have been redeemed or called for redemption and sufficient funds shall have been deposited in trust to effect the redemption.

 

Conversion

 

The Class M preferred stock and the depositary shares representing Class M preferred stock are not convertible into, or exchangeable for, any other property or securities, except that, in limited circumstances, the Class M preferred stock and the depositary shares representing Class M preferred stock may be automatically converted into Class M excess preferred stock or depositary shares representing Class M excess preferred stock, as applicable.

 

Description of Class N Preferred Stock and Depositary Shares

 

General

 

The Company is authorized to issue 1,849 shares of 7.25% Class N Cumulative Convertible Perpetual Preferred Stock, par value $1.00 per share (the “Class N preferred stock”).

 

Each Class N depositary share represents a 1/1000 fractional interest in a share of Class N preferred stock. The Class N preferred stock has been deposited with Equiniti Trust Company, LLC, as depositary (referred to herein as the preferred stock depositary), under a deposit agreement between us, the preferred stock depositary and the holders from time to time of the depositary receipts issued by the preferred stock depositary thereunder. The depositary receipts evidence the depositary shares. Subject to the terms of the deposit agreement, each holder of a depositary receipt representing a depositary share is entitled to all the rights and preferences of a fractional interest in a share of Class N preferred stock (including dividends, voting, conversion, redemption and liquidation rights and preferences). The Class N depositary shares are listed on the NYSE under the symbol “KIMprN.”

 

Ranking

 

With respect to the payment of dividends and distribution of assets and rights upon voluntary or involuntary liquidation, dissolution or winding up, the Class N preferred stock ranks (i) senior to our common stock and each other class or series of shares of our stock issued after January 2, 2024, the terms of which do not expressly provide that such class or series of shares of stock ranks senior to or on parity with the Class N preferred stock as to dividend rights or rights upon our liquidation, winding up or dissolution, (ii) on a parity, in all respects, with the Class L preferred Stock, the Class M preferred stock and each other class or series of our stock issued after January 2, 2024, in compliance with the terms of the Class N preferred stock, the terms of which expressly provide that such class or series will rank on parity with the Class N preferred stock as to dividend rights or rights upon our voluntary or involuntary liquidation, winding up or dissolution and (iii) junior to each class or series of our stock issued after January 2, 2024, in compliance with the terms of the Class N preferred stock, the terms of which expressly provide that such class or series will rank senior to the Class N preferred stock as to dividend rights or rights upon our voluntary or involuntary liquidation, winding up or dissolution. We currently have no equity securities outstanding senior to the Class N preferred stock.

 

Dividends

 

Holders of shares of Class N preferred stock shall be entitled to receive, when, as and if authorized by our Board of Directors and declared by us, out of funds legally available for payment, quarterly, cumulative preferential cash dividends, in an amount per share equal to 7.25% of the $50,000 liquidation preference per annum (equivalent to a fixed annual amount of $3,625.00 per share or $3.625 per depositary share), payable in equal amounts of $906.25 per share of Class N preferred stock quarterly. Dividends on the shares of Class N preferred stock shall begin to accrue and will be fully cumulative starting from the date of original issue and shall be payable, subject to authorization by our Board of Directors, in equal amounts in arrears on January 15, April 15, July 15 and October 15 of each year or, if any such date is not a business day, the next succeeding business day, and no interest or additional dividends or other sums shall accrue on the amount so payable from such date to such next succeeding Business Day. Any dividend payable on the shares of Class N preferred stock for any partial dividend period that ends prior to a dividend payment date will be prorated and computed on the basis of a 360-day year consisting of twelve 30-day months. The preferred stock depositary will distribute cash dividends received in respect of the Class N preferred stock to the record holders of the depositary receipts at the close of business on the applicable record date, which will be the 20th day of the calendar month immediately preceding the month in which the applicable dividend payment date falls or such other date designated by our Board of Directors that is not more than 30, nor less than 10, days prior to the applicable dividend payment date.

 

When dividends are not paid in full (or a sum sufficient for such full payment is not so set apart) upon the shares of Class N preferred stock and any other class or series of our stock ranking on a parity as to the payment of dividends with the shares of Class N preferred stock (which we refer to as “dividend parity stock”), all dividends declared upon the shares of Class N preferred stock and dividend parity stock will be declared pro rata so that the amount of dividends declared per share of Class N preferred stock and per share of such dividend parity stock will in all cases bear to each other the same ratio that accumulated dividends per share of Class N preferred stock and accumulated dividends per share of such other dividend parity stock (which shall not include any accrual in respect of unpaid dividends for prior dividend periods if such dividend parity stock does not have a cumulative dividend) bear to each other.

 

Except as provided in the immediately preceding paragraph, no dividends or other distributions (other than a dividend or other distribution payable solely in parity stock or junior stock (in the case of parity stock) or junior stock (in the case of junior stock) and cash in lieu of fractional shares) will be declared or paid or set apart for payment on any parity stock or junior stock, nor may any parity stock or junior stock be redeemed, purchased or otherwise acquired for any consideration (or any money paid to or made available for a sinking fund for the redemption of any parity stock or junior stock) by us or on our behalf (except by conversion into or exchange for parity stock or junior stock (in the case of parity stock) or junior stock (in the case of junior stock)) unless full accumulated dividends have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof is set apart for such payment on the Class N preferred stock and any dividend parity stock for all dividend periods ending on or prior to the date of such declaration, payment, set apart, redemption, purchase or acquisition, provided, that the foregoing restriction will not limit the acquisition of parity stock or junior stock solely to the extent necessary to preserve our qualification as a REIT.

 

No dividends on the shares of Class N preferred stock shall be declared or paid or set apart for payment by our Board of Directors if such declaration, payment or setting apart for payment would violate any of our agreements or is restricted or prohibited by law.

 

Notwithstanding the foregoing, dividends on the shares of Class N preferred stock will accrue whether or not we have earnings, whether or not there are funds legally available for the payment thereof and whether or not such dividends are declared. Accrued but unpaid dividends on the shares of Class N preferred stock will not bear interest, and holders of the Class N preferred stock will not be entitled to any dividends in excess of full cumulative dividends, as described above.

 

Any dividend payment made on the shares of Class N preferred stock shall first be credited against the earliest accumulated but unpaid dividend due with respect to such shares which remains payable.

 

Liquidation Preference

 

In the event of any liquidation, dissolution or winding-up of our affairs, the holders of the shares of Class N preferred stock will be entitled to receive and to be paid out of our assets legally available for distribution to our stockholders remaining after payment or provisions for payment of all of our debts and other liabilities liquidating distributions, in cash or property at its fair market value as determined by our Board of Directors, in the amount of a liquidation preference of $50,000.00 per share (equivalent to $50.00 per depositary share), plus an amount equal to any accumulated and accrued dividends (whether or not earned or declared) to (but not including) the date of payment, before any payment or distribution of assets is made to holders of junior stock, but subject to the preferential rights of the holders of any class or series of senior stock. Upon the payment in full of such liquidation preference and all such accumulated and accrued dividends to which they are entitled, the holders of shares of Class N preferred stock will have no right or claim to any of our remaining assets. None of (i) our consolidation or merger with or into another entity, (ii) a statutory share exchange by us or (iii) the voluntary sale, lease or conveyance of all or substantially all of our property or business will be deemed to constitute a liquidation, dissolution or winding up of our affairs.

 

If, upon any liquidation, dissolution or winding-up of our affairs, our assets available for distribution to the holders of Class N preferred stock shall be insufficient to permit payment in full to such holders the sums that such holders are entitled to receive in such case (including, if applicable, accumulated dividends and accrued dividends), then all of the assets available for distribution to the holders of Class N preferred stock shall be distributed among and paid to such holders ratably in proportion to the respective amounts that would be payable to such holders if such assets were sufficient to permit payment in full; provided that all such distributions and payments to the holders of Class N preferred stock shall be made on a pari passu basis with the holders of parity stock, including all other preferred stock.

 

Redemption

 

The shares of Class N preferred stock are not redeemable by us. However, under certain circumstances, we may, at our option, cause all outstanding shares of Class N preferred stock to be converted into shares of our common stock as described below under “–Mandatory Conversion.”

 

Subject to applicable law, we may purchase shares of Class N preferred stock in the open market, by tender or by private agreement. Any shares of Class N preferred stock that we reacquire will be retired and reclassified as authorized but unissued shares of preferred stock, without designation as to class or series, and may thereafter be reissued as any class or series of preferred stock.

 

Voting Rights

 

Except as indicated herein, the holders of the depositary shares representing the Class N preferred stock have no voting rights. On any matter on which the Class N preferred stock is entitled to vote, each share of Class N preferred stock is entitled to one thousand votes, unless the outstanding parity voting preferred has similar vested and continuing voting rights, in which case each share of Class N preferred stock shall be entitled to one thousand votes for each $50,000.00 of liquidation preference. As a result, each depositary share will be entitled to one vote on each matter for which the holders of shares of Class N preferred stock are entitled to vote.

 

Whenever dividends on any shares of Class N preferred stock are in arrears for six or more quarterly periods, the number of directors then constituting our Board of Directors will increase by two (if not already increased by reason of a similar arrearage with respect to any class or series of preferred stock that are parity stock upon which voting rights equivalent to the voting rights of the Class N preferred stock have been conferred and are exercisable, including the Class L preferred stock and the Class M preferred stock (which we refer to as “parity voting preferred”)) and the holders of Class N preferred stock (voting separately as a class with holders of all parity voting preferred) will be entitled to vote for the election of a total of two additional directors to serve on our Board of Directors until all dividends accumulated on the Class N preferred stock and such parity voting preferred for the then current dividend period either have been fully paid or have been declared and a sum sufficient for the payment thereof set aside for payment.

 

So long as any Class N preferred stock remains outstanding, we will not, without the affirmative vote or consent of the holders of at least two-thirds of the shares of Class N preferred stock outstanding at the time, given in person or by proxy, either in writing or at a meeting (with the holders of Class N preferred stock voting separately as a class), (i) authorize, create or issue, or increase the authorized or issued amount of, any shares of senior stock, or reclassify any authorized shares of stock into senior stock, or create, authorize or issue any obligation or security convertible or exchangeable into or evidencing the right to purchase any shares of senior stock; or (ii) repeal, amend or otherwise change any provision of our charter, including the terms of the Class N preferred stock, in any manner, whether by merger or consolidation or otherwise, that adversely affects the powers, preferences, or other special rights or privileges of the Class N preferred stock or its holders; provided, however, that any increase in the amount of the authorized shares of preferred stock or the creation or issuance of other series of parity stock or junior stock, any increase in the amount of authorized shares of parity stock or junior stock, and any increase in the amount of authorized shares of Class N preferred stock will not require the consent of the holders of Class N preferred stock and shall not be deemed to adversely affect such powers, preferences, or other special rights or privileges.

 

Notwithstanding the foregoing, in the event of a merger or consolidation involving the Company, a sale of all or substantially all of the assets of the Company or of the Company and its subsidiaries on a consolidated basis or a statutory share exchange (we refer to any such transaction as an “extraordinary transaction”), so long as: (i) the Class N preferred stock remains outstanding following consummation of such extraordinary transaction with their terms materially unchanged, taking into account that, upon the occurrence of such an extraordinary transaction, the Company may not be the surviving entity (in which case, the Class N preferred stock may be converted into or exchanged for preferred stock or preferred shares of the surviving entity having terms materially the same as the Class N preferred stock) and, if applicable, with any changes to the terms of the Class N preferred stock required pursuant to and made in compliance with the current terms of the Class N preferred stock in connection with such extraordinary transaction and (ii) if such transaction also constitutes a fundamental change, the provisions under “–Special Rights Upon a Fundamental Change” are complied with in connection with such extraordinary transaction, then the occurrence of such extraordinary transaction shall not be deemed to adversely affect the powers, preferences, or other special rights or privileges of the Class N preferred stock or its holders and in such case such holders shall not have any voting rights with respect to the occurrence of such extraordinary transaction under this paragraph.

 

The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required will be effected, all outstanding shares of Class N preferred stock have been converted, surrendered for voluntary conversion or called for mandatory conversion and a sufficient number of shares of our common stock have been deposited in trust to effect such conversion.

 

Conversion Rights

 

Each holder of Class N preferred stock shall have the right, at any time, at its option, to convert, subject to the terms and provisions described below, any or all of such holder’s shares of Class N preferred stock into such whole number of fully paid and nonassessable shares of our common stock per converted share of Class N preferred stock as is equal to the conversion rate in effect on the conversion date, subject to the conversion rate adjustments described below under “–Conversion Rate Adjustment.” Each holder of depositary shares shall have the right, at any time, at its option, to convert, subject to the terms and provisions described below, any or all of such holder’s depositary shares into shares of our common stock upon the same terms as the Class N preferred stock except that the number of shares of common stock receivable upon conversion of each depositary share will be equal to the number of shares of common stock receivable upon conversion of one share of Class N preferred stock divided by 1,000.

 

The holders of depositary shares at the close of business on a dividend record date will be entitled to receive the dividend payment on those shares on the corresponding dividend payment date notwithstanding the conversion of such shares following that dividend record date or our failure to pay the dividend due on that dividend payment date. However, shares of Class N preferred stock surrendered for conversion at the option of the holder during the period between the close of business on any dividend record date and the close of business on the business day immediately preceding the applicable dividend payment date must be accompanied by payment of an amount equal to the dividend payable on such shares on that dividend payment date. A holder of depositary shares on a dividend record date who (or whose transferee) surrenders any depositary shares for conversion on the corresponding dividend payment date will receive the dividend payable by us on the shares of Class N preferred stock on that date, and the converting holder need not include payment in the amount of such dividend upon surrender of depositary shares for conversion. Except as provided above with respect to a voluntary conversion and as provided under “–Mandatory Conversion” and “–Special Rights Upon a Fundamental Change,” we will make no payment or allowance for unpaid dividends, whether or not in arrears, on converted shares or for dividends on the shares of our common stock issued upon conversion.

 

The terms of the Class N preferred stock provide that we at all times shall reserve and keep available for issuance upon conversion of the shares of Class N preferred stock a sufficient number of authorized and unissued shares of our common stock to permit the conversion of all outstanding shares of Class N preferred stock and that we use reasonable best efforts to take all action required to increase the authorized number of shares of our common stock if at any time there are insufficient unissued shares of our common stock to permit such reservation or to permit the conversion of all outstanding shares of Class N preferred stock.

 

In addition, the terms of the Class N preferred stock provide that any shares of common stock issued upon conversion of the shares of Class N preferred stock will be validly issued, fully paid and nonassessable and that we will use reasonable best efforts to list the shares of our common stock required to be delivered upon conversion of the shares of Class N preferred stock, prior to such delivery, upon each national securities exchange, if any, upon which the outstanding shares of our common stock are listed at the time of delivery.

 

Conversion Procedures

 

The conversion right of a record holder of depositary shares shall be exercised by the surrender of the receipts representing the depositary shares to be converted at the Corporate Trust Office or other office designated by the preferred stock depositary. Following such surrender by the holder of depositary shares, the preferred stock depositary shall, among other things, notify the transfer agent of (a) the number of shares of Class N preferred stock to be converted, (b) the number of shares of common stock to be delivered upon such conversion and (c) the amount of cash, if any, to be delivered to the record holder of the receipts in payment of cash dividends and cash in lieu of any fractional shares. As promptly as practicable after the transfer agent receives certificates representing shares of Class N preferred stock to be converted, we will furnish to the preferred stock depositary a certificate or certificates representing the number of shares of our common stock to be delivered upon conversion of the shares of Class N preferred stock and the amount of cash referenced above. On the date of any conversion at the option of the holders, if a holder’s interest is a beneficial interest in a global certificate representing shares of Class N preferred stock, the holder must comply with the DTC’s, or successor depository’s, procedures for converting a beneficial interest in a global security.

 

If a holder’s interest is in certificated form, a holder must do each of the following in order to convert:

 

 

complete and manually sign the conversion notice, which is irrevocable, provided by the conversion agent, or a facsimile of the conversion notice, and deliver this notice to the conversion agent;

 

surrender the shares of Class N preferred stock to the conversion agent;

 

if required, furnish appropriate endorsements and transfer documents;

 

if required, pay any share transfer, documentary, stamp or similar taxes not payable by the Company; and

 

if required, pay funds equal to any declared and unpaid dividend payable on the next dividend payment date to which such holder is entitled.

The date on which a holder complies with the foregoing procedures is the “conversion date.”

 

The conversion agent for the shares of Class N preferred stock is initially the transfer agent. A holder may obtain copies of the required form of the conversion notice from the conversion agent (and a holder of depositary shares may obtain copies of the required form of the conversion notice from the preferred stock depositary). The conversion agent will, on a holder’s behalf, convert the shares of Class N preferred stock into shares of our common stock, in accordance with the terms of the notice delivered by the holder. A share certificate or certificates representing the shares of our common stock to be delivered in connection with the conversion, together with, if applicable, any payment of cash in lieu of fractional shares, will be delivered by the Company to the holder, or in the case of global certificates, a book-entry transfer through DTC will be made by the conversion agent. Such delivery will be made as promptly as practicable, but in no event later than three business days following the conversion date.

 

The person or persons entitled to receive the shares of our common stock issuable upon conversion of the shares of Class N preferred stock will be treated as the record holder(s) of such shares as of the close of business on the applicable conversion date. On the conversion date, all rights with respect to the shares of Class N preferred stock so converted, including the rights, if any, to receive notices, will terminate, except only the rights of holders thereof to receive the number of whole shares of our common stock into which such shares of Class N preferred stock have been converted (with such adjustment or cash payment for fractional shares as we may elect, as described under “–No Fractional Shares”) and, if applicable, any additional shares of common stock or other consideration as may be issuable upon conversion in payment of a make-whole premium or otherwise as described under “–Special Rights Upon a Fundamental Change” or any “reference property” that may be issuable in lieu of common stock upon conversion as described under “–Recapitalizations, Reclassifications and Changes of Shares of Our Common Stock” and the rights to which they are otherwise entitled as holders of our common stock or other property receivable upon conversion. Prior to the close of business on the applicable conversion date, the shares of our common stock issuable upon conversion of the shares of Class N preferred stock will not be deemed to be outstanding for any purpose and the holders of Class N preferred stock will have no rights with respect to the shares of our common stock, including voting rights, rights to respond to tender offers and rights to receive any dividends or other distributions on the shares of our common stock, by virtue of holding the shares of Class N preferred stock.

 

Mandatory Conversion

 

At any time we may, at our option, cause all (but not less than all) outstanding shares of Class N preferred stock to be mandatorily converted into a number of shares of our common stock for each share of Class N preferred stock equal to the then-prevailing conversion rate, but only if the daily VWAP (as defined below) of shares of our common stock equals or exceeds 130% of the then-prevailing conversion price for at least 20 trading days in a period of 30 consecutive trading days, including the last trading day of such 30-day period, ending on the trading day prior to our issuance of a press release announcing the mandatory conversion as described below. The term “trading day” means a day during which (i) trading in securities generally occurs on the NYSE or, if shares of our common stock are not listed on the NYSE, on the other principal national securities exchange on which shares of our common stock are then listed or, if shares of our common stock are not listed on a national securities exchange, on the principal other market on which shares of our common stock are then traded and (ii) there is no market disruption event (as defined below). A “trading day” only includes those days that have a scheduled closing time of 4:00 p.m. (New York City time) or the then standard closing time for regular trading on the relevant exchange or trading system. If shares of our common stock are not so listed or traded, “trading day” means a “business day.”

 

The term “market disruption event” means (i) a failure by the NYSE or, if shares of our common stock are not listed on the NYSE, the principal U.S. national securities exchange on which shares of our common stock are listed or, if shares of our common stock are not listed on a national securities exchange, on the principal other market on which shares of our common stock are then traded, to open for trading during its regular trading session or (ii) the occurrence or existence prior to 1:00 p.m. on any trading day for shares of our common stock of an aggregate one half hour period of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the stock exchange or otherwise) in shares of our common stock or in any options, contracts or future contracts relating to shares of our common stock.

 

The term “daily VWAP” means the average of the per share volume-weighted average prices of shares of our common stock for each day, as displayed under the heading “Bloomberg VWAP” on Bloomberg page “KIM.UN <Equity> AQR (NYSE VWAP)” (or its equivalent successor if such page is not available) in respect of the period from scheduled open of trading until the scheduled close of trading of the primary trading session on each such trading day (or if such volume-weighted average price is unavailable on any such day, the closing sale price (as defined below) shall be used for such day). The per share volume-weighted average price on each such day will be determined without regard to afterhours trading or any other trading outside of the regular trading session trading hours.

 

The “closing sale price” of shares of our common stock on any date means the closing sale price per share (or if no closing sale price is reported, the average of the closing bid and ask prices or, if more than one in either case, the average of the average closing bid and the average closing ask prices) on such date as reported on the NYSE or, if shares of our common stock are not listed on the NYSE, on the principal other national securities exchange on which shares of our common stock are then listed or, if shares of our common stock are not listed on a national securities exchange, on the principal other market on which shares of our common stock are then traded. If shares of our common stock are not so listed, the closing sale price will be an amount determined in good faith by our Board of Directors to be the fair value of the common stock.

 

To exercise the mandatory conversion right described above, we must issue a press release for publication on the Dow Jones News Service or Bloomberg Business News (or if either such service is not available, another broadly disseminated news or press release service selected by us) prior to the opening of business on the first trading day following any date on which the conditions described in the first paragraph of this “Mandatory Conversion” section are met, announcing such a mandatory conversion. We will also give notice by mail or by publication (with subsequent prompt notice by mail) to the holders of the shares of Class N preferred stock (not more than four business days after the date of the press release) of the mandatory conversion announcing our intention to convert the Class N preferred stock. The conversion date will be the date (which we refer to as the “mandatory conversion date”) that is five trading days after the date on which we issue such press release.

 

In addition to any information required by applicable law or regulation, the press release and notice of a mandatory conversion will state, as appropriate:

 

 

the mandatory conversion date;

 

the number of shares of our common stock to be issued upon conversion of each share of Class N preferred stock;

 

the number of shares of Class N preferred stock to be converted; and

 

that dividends on the shares of Class N preferred stock to be converted will cease to accrue on the mandatory conversion date.

 

On and after the mandatory conversion date, dividends will cease to accrue on the shares of Class N preferred stock that are subject to a mandatory conversion and all rights of holders of such shares of Class N preferred stock will terminate except for the right to receive the common stock issuable upon conversion thereof. The dividend payment with respect to any shares of Class N preferred stock that are subject to a mandatory conversion on a date during the period between the close of business on any dividend record date for the payment of dividends to the close of business on the corresponding dividend payment date will be payable on such dividend payment date to the record holders of such shares on such dividend record date if such shares have been converted after such dividend record date and prior to such dividend payment date. Except as provided in the immediately preceding sentence, no payment or adjustment will be made upon mandatory conversion of any shares of Class N preferred stock for unpaid accrued and accumulated dividends or for dividends with respect to the shares of our common stock issued upon such conversion.

 

We may not authorize or give notice of any mandatory conversion unless, prior to giving the conversion notice, all accumulated and unpaid dividends on the shares of Class N preferred stock for all quarterly dividend periods ending on or prior to the date on which we give such notice have been paid.

 

In addition to the mandatory conversion provision described above, if there are fewer than 150 shares of Class N preferred stock outstanding, we may, at any time, at our option, cause all such outstanding shares of Class N preferred stock to be converted into the number of whole shares of our common stock equal to the greater of (i) the then-prevailing conversion rate and (ii) the liquidation preference divided by the market value (as defined below) of the shares of our common stock as determined on the second trading day immediately prior to the mandatory conversion date. The provisions of the immediately preceding four paragraphs will apply to any such mandatory conversion pursuant to this paragraph; provided, however, that (1) the mandatory conversion date will not be less than 15 calendar days nor more than 30 calendar days after the date on which we issue a press release announcing such mandatory conversion and (2) the press release and notice of mandatory conversion need not state the number of shares of our common stock to be issued upon conversion of each share of Class N preferred stock.

 

The term “market value” means the average of the daily VWAP of shares of our common stock for each day during a 10 consecutive trading day period ending immediately prior to the date of determination.

 

Conversion Rate Adjustment

 

The applicable conversion rate will be subject to adjustment, without duplication, upon the occurrence of any of the following events:

 

 

(1)

If we issue shares of our common stock as a dividend or distribution on shares of our common stock, or if we effect a share split or shares combination, the conversion rate will be adjusted based on the following formula:

ex_628752img001.jpg

where,

 

CR0 = the conversion rate in effect immediately prior to the open of business on the ex-date for such dividend or distribution, or the open of business on the effective date of such share split or share combination, as the case may be;

 

CR1 = the conversion rate in effect immediately after the open of business on the ex-date for such dividend or distribution, or the open of business on the effective date of such share split or share combination, as the case may be;

 

OS0 = the number of common shares outstanding immediately prior to the open of business on the ex-date for such dividend or distribution, or the open of business on the effective date of such share split or share combination, as the case may be; and

 

OS1 = the number of common shares outstanding immediately after such dividend or distribution, or such share split or share combination, as the case may be.

 

Any adjustment made under this clause (1) shall become effective immediately after the open of business on the ex-date for such dividend or distribution, or immediately after the open of business on the effective date for such share split or share combination. If any dividend or distribution of the type described in this clause (1) is declared but not so paid or made, or any share split or combination of the type described in this clause (1) is announced but the outstanding shares of our common stock are not split or combined, as the case may be, the conversion rate will be immediately readjusted, effective as of the date our Board of Directors determines not to pay such dividend or distribution, or not to split or combine outstanding shares of our common stock, as the case may be, to the conversion rate that would then be in effect if such dividend, distribution, share split or share combination had not been declared or announced.

 

 

(2)

If we distribute to all or substantially all holders of shares of our common stock any rights, options or warrants entitling them, for a period expiring not more than 45 days immediately following the record date of such distribution, to purchase or subscribe for shares of our common stock at a price per share less than the average of the daily VWAP of shares of our common stock over the 10 consecutive trading-day period ending on the trading day immediately preceding the ex-date for such distribution, the conversion rate will be increased based on the following formula:

ex_628752img002.jpg

where,

 

CR0 = the conversion rate in effect immediately prior to the open of business on the ex-date for such distribution;

 

CR1 = the conversion rate in effect immediately after the open of business on the ex-date for such distribution;

 

OS0 = the number of shares of our common stock outstanding immediately prior to the open of business on the ex-date for such distribution;

 

X = the total number of shares of our common stock issuable pursuant to such rights, options or warrants; and

 

Y = the number of shares of our common stock equal to the aggregate price payable to exercise such rights, options or warrants divided by the average of the daily VWAP of shares of our common stock over the 10 consecutive trading-day period ending on the trading day immediately preceding the ex-date for such distribution.

Any increase made under this clause (2) will be made successively whenever any such rights, options or warrants are distributed and shall become effective immediately after the open of business on the ex-date for such distribution. To the extent that shares of common stock are not delivered after the expiration of such rights, options or warrants, the conversion rate will be readjusted to the conversion rate that would then be in effect had the increase with respect to the distribution of such rights, options or warrants been made on the basis of delivery of only the number of shares of common stock actually delivered. If such rights, options or warrants are not so distributed, the conversion rate will be decreased to be the conversion rate that would then be in effect if such ex-date for such distribution had not occurred.

In determining whether any rights, options or warrants entitle the holders to subscribe for or purchase shares of our common stock at less than such average of the daily VWAP for the 10 consecutive trading day period ending on the trading day immediately preceding the ex-date for such distribution, and in determining the aggregate offering price of such shares of our common stock, there shall be taken into account any consideration received by us for such rights, options or warrants and any amount payable on exercise or conversion thereof, the value of such consideration, if other than cash, to be determined by our Board of Directors in its good faith judgment.

 

 

(3)

If we distribute shares of stock, evidences of indebtedness or other assets, securities or property, to all or substantially all holders of shares of our common stock, excluding:
(a) dividends or distributions referred to in the clauses (1) and (2) above;
(b) spin-offs to which the provisions set forth in the latter portion of this clause (3) shall apply; and
(c) dividends or distributions paid exclusively in cash referred to in clause (4) below,
then the conversion rate will be increased based on the following formula:

 

ex_628752img003.jpg

 

where,

 

CR0 = the conversion rate in effect immediately prior to the open of business on the ex-date for such distribution;

 

CR1 = the conversion rate in effect immediately after the open of business on the ex-date for such distribution;

 

SP0 = the average of the daily VWAP of shares of our common stock over the 10 consecutive trading-day period ending on the trading day immediately preceding the ex-date for such distribution; and

 

FMV = the fair market value (as determined by our Board of Directors in its good faith judgment) of the shares of our stock, evidences of indebtedness, assets, securities or property distributable with respect to each outstanding share of our common stock on the ex-date for such distribution.

If “FMV” (as defined above) is equal to or greater than the “SP0” (as defined above), in lieu of the foregoing increase, each holder of a share of Class N preferred stock shall receive in respect of each share of Class N preferred stock owned by it, at the same time and upon the same terms as holders of shares of our common stock, the amount and kind of shares of our stock, evidences of our indebtedness, other assets, securities or property of ours that such holder would have received as if such holder owned a number of shares of common stock equal to the conversion rate in effect on the ex-date for the distribution.

Any increase made under the above portion of this clause (3) will become effective immediately after the open of business on the ex-date for such distribution.

With respect to an adjustment pursuant to this clause (3) where there has been a payment of a dividend or other distribution on shares of our common stock of any class or series, or similar equity interests, of or relating to a subsidiary or other business unit where such shares of stock or similar equity interest is listed or quoted (or will be listed or quoted upon consummation of the spin-off (as defined below)) on a national securities exchange, which we refer to as a “spin-off,” the conversion rate in effect immediately before 5:00 p.m., New York City time, on the tenth trading day immediately following, and including, the ex-date for the spin-off will be increased based on the following formula:

ex_628752img004.jpg

 

where,

 

CR0 = the conversion rate in effect immediately prior to the close of business on the tenth trading day immediately following, and including, the ex-date for the spin-off;

 

CR1 = the conversion rate in effect immediately after the close of business on the tenth trading day immediately following, and including, the ex-date for the spin-off;

 

FMV = the average of the volume-weighted average sale prices of the shares of stock or similar equity interest distributed to holders of shares of our common stock applicable to one share of common stock over the 10 consecutive trading-day period immediately following, and including, the ex-date for the spin-off; and

 

MP0 = the average of the daily VWAP of shares of our common stock over the 10 consecutive trading-day period immediately following, and including, the ex-date for the spin-off.

The adjustment to the conversion rate under the preceding paragraph will occur at the close of business on the tenth trading day immediately following, and including, the ex-date for the spin-off; provided that, for purposes of determining the conversion rate, in respect of any conversion during the 10 trading days following, and including, the effective date of any spin-off, references within the portion of this clause (3) related to “spin-offs” to 10 consecutive trading days shall be deemed replaced with such lesser number of consecutive trading days as have elapsed between the effective date of such spin-off and the relevant conversion date.

If the dividend or distribution described in this third clause is declared but not paid or made, the new conversion rate shall be readjusted to be the conversion rate that would then be in effect if such dividend or distribution had not been declared.

 

 

(4)

If any cash dividend or distribution is made to all or substantially all holders of shares of our common stock (excluding any dividend or distribution in connection with our liquidation, dissolution or winding up) during any of our quarterly fiscal periods in an aggregate amount that, together with other cash dividends or distributions made during such quarterly fiscal period, exceeds the product of $0.27, which we refer to as the reference dividend, multiplied by the number of shares of our common stock outstanding on the record date for such distribution, the conversion rate will be increased based on the following formula:
ex_628752img005.jpg

where,

 

CR0 = the conversion rate in effect immediately prior to the open of business on the ex-date for such dividend or distribution;

 

CR1 = the conversion rate in effect immediately after the open of business on the ex-date for such dividend or distribution;

 

SP0 = the average of the daily VWAP of the common stock over the 10 consecutive trading day period immediately preceding the ex-date for such dividend or distribution; and

 

C = the amount in cash per share of common stock distributed to holders of the common stock that exceeds the reference dividend.

Such increase shall become effective immediately after the open of business on the ex-date for such dividend or distribution. If such dividend or distribution is not so paid, the conversion rate shall be decreased to be the conversion rate that would then be in effect if such dividend or distribution had not been declared.

If “C” (as defined above) is equal to or greater than “SP0” (as defined above), in lieu of the foregoing increase, each holder of shares of Class N preferred stock shall receive in respect of each share of Class N preferred stock owned by it, at the same time as holders of shares of our common stock receive their dividend or other distribution, an amount of cash equal to C multiplied by the number of shares of our common stock equal to the conversion rate in effect on the ex-date for such cash dividend or distribution.

The reference dividend amount is subject to adjustment in a manner inversely proportional to adjustments to the conversion rate; provided that no adjustment will be made to the reference dividend amount for any adjustment made to the conversion rate under this clause (4).

Notwithstanding the foregoing, if an adjustment is required to be made under this clause (4) as a result of distribution that is not a regular quarterly dividend, the reference dividend amount will be deemed to be zero.

 

 

(5)

If we or any of our subsidiaries make a payment in respect of a tender offer or exchange offer for shares of our common stock, if the cash and value of any other consideration included in the payment per share of common stock exceeds the average of the daily VWAP of shares of our common stock over the 10 consecutive trading-day period commencing on, and including, the trading day next succeeding the last date on which tenders or exchanges may be made pursuant to such tender or exchange offer, the conversion rate will be increased based on the following formula:

ex_628752img006.jpg

where,

 

CR0 = the conversion rate in effect immediately prior to the close of business on the last trading day of the 10 consecutive trading-day period commencing on, and including, the trading day next succeeding the date such tender or exchange offer expires;

 

CR1 = the conversion rate in effect immediately after the close of business on the last trading day of the 10 consecutive trading-day period commencing on, and including, the trading day next succeeding the date such tender or exchange offer expires;

 

AC = the aggregate value of all cash and any other consideration (as determined in good faith by our Board of Directors) paid or payable for shares purchased in such tender or exchange offer;

 

OS0 = the number of shares of our common stock outstanding immediately prior to the date such tender or exchange offer expires;

 

OS1 = the number of shares of our common stock outstanding immediately after the date such tender or exchange offer expires (after giving effect to such tender offer or exchange offer and excluding fractional shares); and

 

SP1 = the average of the daily VWAP of shares of our common stock over the 10 consecutive trading day period commencing on, and including, the trading day next succeeding the date such tender or exchange offer expires.

The increase to the conversion rate under the preceding paragraph will occur at the close of business on the tenth trading day immediately following, but excluding, the date such tender or exchange offer expires; provided that, for purposes of determining the conversion rate, in respect of any conversion during the 10 trading days immediately following, but excluding, the date that any such tender or exchange offer expires, references within this clause (5) to 10 consecutive trading days shall be deemed replaced with such lesser number of consecutive trading days as have elapsed between the date such tender or exchange offer expires and the relevant conversion date.

Notwithstanding the foregoing, if (i) a conversion rate adjustment pursuant to any of the foregoing becomes effective on any ex-date as described above and (ii) a holder converting its shares of Class N preferred stock on or after such ex-date and on or prior to the related record date would be treated as the record holder of shares of our common stock as of the related conversion date as described under “–Conversion Procedures” based on an adjusted conversion rate for such ex-date, then, notwithstanding the foregoing conversion rate adjustment provisions, the conversion rate adjustment relating to such ex-date will not be made for any holder converting shares of Class N preferred stock on or after such ex-date and on or prior to the related record date. Instead, such holder will be treated as if such holder were the record owner of the shares of our common stock on an un-adjusted basis and participate in the related dividend, distribution or other event giving rise to such adjustment.

The “ex-date” as used herein is the first date on which shares of our common stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive the issuance, dividend or distribution in question from us or, if applicable, from the seller of shares of our common stock on such exchange or market (in the form of due bills or otherwise) as determined by such exchange or market.

We are not required to adjust the Conversion Rate for any of the transactions described in the clauses above (other than for share splits or share combinations) if we make provision for each holder of a share of Class N preferred stock to participate in the transaction, at the same time as holders of shares of our common stock participate, without conversion, as if such holder held a number of shares of our common stock in respect of each share of Class N preferred stock equal to the conversion rate in effect on the ex-date or effective date.

If we issue rights, options or warrants that are only exercisable upon the occurrence of certain triggering events, then the conversion rate will not be adjusted pursuant to the clauses (2) or (3) above, as applicable, until the earliest of these triggering events occurs and the conversion rate will be readjusted to the extent any of these rights, options or warrants are not exercised before they expire.

If we have in effect a shareholder rights plan while any of the shares of Class N preferred stock remain outstanding, holders of the shares of Class N preferred stock will receive, upon a conversion of such shares, in addition to such shares of our common stock, rights under our shareholder rights agreement unless, prior to conversion, the rights have expired, terminated or been redeemed or unless the rights have separated from shares of our common stock. If the rights provided for in any rights plan that our Board of Directors may adopt have separated from shares of our common stock in accordance with the provisions of the applicable shareholder rights agreement so that holders of the shares of Class N preferred stock would not be entitled to receive any rights in respect of shares of our common stock that we deliver upon conversion of the shares of Class N preferred stock, we will adjust the conversion rate at the time of separation as if we had distributed to all holders of shares of our common stock, evidences of indebtedness or other assets or property pursuant to clause (3) above, subject to readjustment upon the subsequent expiration, termination or redemption of the rights.

We will not adjust the conversion rate pursuant to the clauses above unless the adjustment would result in a change of at least 1% in the then effective conversion rate. However, we will carry forward any adjustment that is less than 1% of the conversion rate and make such carry forward adjustment in any subsequent adjustment and, regardless of whether the aggregate adjustment is less than 1%, on the conversion date for any shares of Class N preferred stock. In addition, at the end of each fiscal year, beginning with the fiscal year ending December 31, 2024, we will give effect to any adjustments that we have otherwise deferred pursuant to this provision, and those adjustments will no longer be carried forward and taken into account in any subsequent adjustment. Adjustments to the conversion rate will be calculated to the nearest 1/10,000 of a share.

To the extent permitted by law and the continued listing requirements of NYSE (or any stock exchange on which shares of our common stock may then be listed), we may, from time to time, increase the conversion rate by any amount for a period of at least 20 business days or any longer period permitted or required by law, so long as the increase is irrevocable during that period and our Board of Directors determines that the increase is in our best interests. We will mail a notice of the increase to registered holders at least 15 calendar days before the day the increase commences. In addition, we may, but are not obligated to, increase the conversion rate as we determine to be advisable in order to avoid or diminish taxes to recipients of certain distributions.

Upon each adjustment to the conversion rate, a corresponding adjustment will be made to the conversion price, calculated by dividing the liquidation preference by the adjusted conversion rate.

If certain of the possible adjustments to the conversion rate of the shares of Class N preferred stock are made (or if failures to make certain adjustments occur), a holder of such shares may be deemed to have received a taxable distribution from us even though such holder has not received any cash or property as a result of such adjustments. In the case of a non-U.S. shareholder, we may, at our option, withhold U.S. federal income tax with respect to any such deemed distribution from cash payments of dividends and any other payments in respect of the shares of Class N preferred stock.

 

 

Events that Will not Result in Adjustment

 

The Conversion Rate will not be adjusted:

 

upon the issuance of any shares of our common stock pursuant to any present or future plan providing for the reinvestment of dividends or interest payable on our securities;

 

upon the issuance of any shares of our common stock, restricted shares or restricted share units, nonqualified share options, incentive share options or any other options or rights (including share appreciation rights) to purchase shares of our common stock pursuant to nay present or future employee, director or consultant benefit plan or program of, or assumed by, us or any of our subsidiaries;

 

upon the issuance of any shares of our common stock pursuant to any option, warrant, right or exercisable, exchangeable or convertible security not described in the preceding clause and outstanding as of the date the shares of Class N preferred stock were first issued;

 

for unpaid accrued and accumulated dividends, if any;

 

upon the repurchase of any shares of our common stock pursuant to an open-market share repurchase program or other buy-back transaction that is not a tender offer or exchange offer; or

 

for a change in the par value of shares of our common stock.

We will not take any action that would require an adjustment to the conversion rate such that the conversion price, as adjusted to give effect to such action, would be less than the then-applicable par value per share of our common stock, except that we may undertake a share split or similar event if such share split results in a corresponding reduction in the par value per share of our common stock such that the as-adjusted new effective conversion price per share would not be below the new as-adjusted par value per share of our common stock following such share split or similar transaction and the conversion rate is adjusted as provided under the first clause (and/or any such other clause(s) as may be applicable) under “–Conversion Rate Adjustment” above. In addition, the terms of the Class N preferred stock provide that we may not take any action that would result in an adjustment to the conversion rate without complying with any applicable shareholder approval rules of the NYSE or any other stock exchange on which shares of our common stock may be listed at the relevant time.

 

Recapitalizations, Reclassifications and Changes of Shares of Our Common Stock

 

In the case of any recapitalization, reclassification or change of the common stock (other than changes resulting from a subdivision, combination or certain reclassifications), a consolidation, merger or combination involving the Company, a sale, lease or other transfer to a third party of all or substantially all of the assets of the Company (or the Company and its subsidiaries on a consolidated basis), or any statutory share exchange, in each case as a result of which shares of our common stock would be converted into, or exchanged for, shares, other securities, other property or assets (including cash or any combination thereof), then, at the effective time of the transaction, the right to convert each share of Class N preferred stock will be changed into a right to convert such share of Class N preferred stock into the kind and amount of shares of stock, other securities or other property or assets (including cash or any combination thereof) (which we refer to as the “reference property”) that a holder would have received in respect of shares of our common stock issuable upon conversion of such shares of Class N preferred stock immediately prior to such transaction. If such transaction also constitutes a fundamental change, a holder of shares of Class N preferred stock who converts its shares of Class N preferred stock in connection with such fundamental change will, if applicable, also be entitled to receive additional shares of our common stock in connection with such conversion as described below under “—Special Rights Upon a Fundamental Change,” in which case the converting holder would also receive reference property in lieu of such additional shares of our common stock. In the event that holders of our common stock have the opportunity to elect the form of consideration to be received in such transaction, the reference property into which the shares of Class N preferred stock will be convertible shall be deemed to be the weighted average of elections made by the holders of shares of Class N preferred stock who participate in such determination. The terms of the Class N preferred stock provide that we may not become a party to any such transaction unless its terms are consistent with the foregoing.

 

A change in the conversion right described in this “Recapitalizations, Reclassifications and Changes of Shares of Our Common Stock” could substantially lessen or eliminate the value of the conversion right. For example, if a third party acquires the Company in a cash merger, each share of Class N preferred stock would be convertible solely into cash and would no longer be potentially convertible into securities whose value could increase depending on our future financial performance, prospects and other factors. There is no precise, established definition of the phrase “all or substantially all” under applicable law. Accordingly, there may be uncertainty as to whether the provisions above would apply to a sale, transfer, lease, conveyance or other disposition of less than all of the consolidated property or assets of the Company or the Company and its subsidiaries.

 

No Fractional Shares

 

No fractional shares of our common stock or securities representing fractional shares will be issued upon conversion of the shares of Class N preferred stock, whether voluntary or mandatory. Instead, we may elect to either make a cash payment to each holder that would otherwise be entitled to a fractional share or, in lieu of such cash payment, the number of shares of common stock to be issued to any particular holder upon conversion will be rounded up to the nearest whole share.

 

Special Rights Upon a Fundamental Change

 

We must give notice of each fundamental change (as defined below) to all record holders of the shares of Class N preferred stock, by the later of 20 business days prior to the anticipated effective date of the fundamental change (which we refer to as the “fundamental change effective date”) and the first public disclosure by us of the anticipated fundamental change. In addition, we must give notice announcing the effective date of such fundamental change and certain other matters as set forth under “Determination of the Make-Whole Premium. If a holder converts its shares of Class N preferred stock at any time beginning at the opening of business on the trading day immediately following the fundamental change effective date and ending at the close of business on the 30th trading day immediately following such effective date, the holder will automatically receive for each share of Class N preferred stock converted, a number of shares of our common stock equal to the greater of:

 

 

i.

the sum of (a) the applicable conversion rate (with such adjustment or cash payment for fractional shares as we may elect, as described under “No Fractional Shares”) and (b) the make-whole premium, if any, determined pursuant to the procedures described under “Determination of the Make-Whole Premium;” and

 

ii.

a number of shares of common stock equal to the lesser of (a) the liquidation preference divided by the market value of the shares of our common stock on the fundamental change effective date and (b) 5,306.4, subject to adjustment in the same manner as the conversion rate.

 

In addition, a converting holder will have the right to receive cash in an amount equal to all unpaid accrued and accumulated dividends on such converted shares of Class N preferred stock, whether or not declared prior to that date, for all prior dividend periods ending on or prior to the dividend payment date immediately preceding (or, if applicable, ending on) the conversion date (other than previously declared dividends on shares of Class N preferred stock payable to holders of record as of a prior date), provided that we are then legally permitted to pay such dividends.

 

In lieu of issuing the number of shares of our common stock issuable upon conversion pursuant to the foregoing provisions, we may, at our option, make a cash payment equal to the market value determined for the period ending on the fundamental change effective date for each such share of our common stock otherwise issuable upon conversion. Our notice of fundamental change will specify whether we intend to issue shares of our common stock or pay cash upon conversion.

 

A “fundamental change” will be deemed to have occurred upon the occurrence of any of the following:

 

 

1.

any “person” is or becomes the “beneficial owner,” directly or indirectly, through a purchase, merger or other transaction, of 50% or more of the total voting power of all classes of voting stock of the Company;

 

2.

The Company consolidates with, or merges with or into, another “person” or any “person” consolidates with or merges with or into the Company, or the Company conveys, transfers, leases or otherwise disposes of all or substantially all of the Company’s assets or all or substantially all of the assets of the Company and its subsidiaries on a consolidated basis to any “person” (whether in one transaction or a series of related transactions), other than:

 

a.

any transaction pursuant to which the holders of our voting stock immediately prior to the transaction collectively have the entitlement to exercise, directly or indirectly, 50% or more of the total voting power of all classes of voting stock of the continuing or surviving person immediately after the transaction; or

 

b.

any merger solely for the purpose of changing our jurisdiction of formation and resulting in a reclassification, conversion or exchange of outstanding shares of our common stock solely into shares of common stock of the surviving entity;

 

3.

the first day on which a majority of the members of our Board of Directors does not consist of “Continuing Directors;”

 

4.

approval of a plan of liquidation or dissolution of the Company; or

 

5.

shares of our common stock cease to be listed on a national securities exchange.

 

“Continuing Directors” means (i) individuals who, on the date of original issuance of the shares of Class N preferred stock, constituted our Board of Directors or (ii) any new directors whose election to our Board of Directors or whose nomination for election by our stockholders was approved by at least a majority of the directors then in office (or a duly constituted committee thereof) who were either directors on the date of original issuance of the shares of Class N preferred stock or whose election or nomination for election was previously so approved.

 

The term “beneficially own” as used herein means beneficial ownership as determined in accordance with Rule 13d-3 promulgated by the SEC under the Exchange Act, except that a person will be deemed to own any securities that such person has a right to acquire, whether such right is exercisable immediately or only after the passage of time. The term “person” includes any syndicate or group that would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act and the rules of the SEC thereunder.

 

Notwithstanding the foregoing, a fundamental change will be deemed not to have occurred in the case of a merger or consolidation if (i) at least 90% of the consideration for shares of our common stock (excluding cash payments for fractional shares and cash payments pursuant to dissenters’ appraisal rights) in the merger or consolidation consists of common stock of a corporation or other entity organized and existing under the laws of the United States or any state thereof and traded on a national securities exchange (or which will be so traded when issued or exchanged in connection with such transaction) (which we refer to as “publicly traded common stock”) and (ii) as a result of such transaction or transactions the shares of Class N preferred stock become convertible into such publicly traded common stock.

 

This fundamental change conversion feature may make more difficult or discourage a takeover of the Company and the removal of incumbent management. We are not, however, aware of any specific effort to accumulate shares of our common stock or to obtain control of us by means of a merger, tender offer, solicitation or otherwise. In addition, the fundamental change conversion feature is not part of a plan by management to adopt a series of anti-takeover provisions.

 

Our obligation to issue shares in excess of the conversion rate in connection with a fundamental change as described above could be considered a penalty, in which case its enforceability would be subject to general principles of reasonableness of economic remedies.

 

Determination of the Make-Whole Premium

 

If a holder of Class N preferred stock elects to convert its shares of Class N preferred stock upon the occurrence of a fundamental change, in certain circumstances, we will increase the conversion rate (the “make- whole premium”) by reference to the table below.

 

Holders will be entitled to receive the make-whole premium only with respect to shares surrendered for conversion from and after the opening of business on the trading day immediately following the fundamental change effective date until the close of business on the 30th trading day following such fundamental change effective date.

 

The increase in the conversion rate will be determined by reference to the table below, based on the share price (as defined below). If holders of shares of our common stock receive only cash in the transaction constituting a fundamental change, the share price shall be the cash amount paid per share. Otherwise, the share price shall be the average of the closing sale price of shares of our common stock on the five trading days prior to but excluding the effective date of the transaction constituting a fundamental change.

 

The following table sets forth the share price paid, or deemed paid, per share of our common stock in a transaction that constitutes the fundamental change and the make-whole premium (expressed as the number of additional shares of our common stock that will be added to the conversion rate) to be paid upon a conversion in connection with a fundamental change:

 

Share Price ($)

$18.85

$20.30

$21.06

$22.56

$24.06

$25.57

$27.07

$30.08

 

346.1

311.0

281.8

228.1

179.1

131.1

77.7

0

 

The share prices set forth in the table will be adjusted as of any date on which the conversion rate of the shares of Class N preferred stock is adjusted by multiplying the applicable price in effect immediately before the adjustment by a fraction:

 

whose numerator is the conversion rate immediately before the adjustment; and

 

whose denominator is the adjusted conversion rate.

 

In addition, we will adjust the number of additional shares in the table at the same time, in the same manner in which, and for the same events for which, we are required to adjust the conversion rate as described under “Conversion Rate Adjustment.”

 

The exact share price and fundamental change effective date may not be set forth on the table, in which case:

 

if the share price is between two share prices on the table, the make-whole premium will be determined by straight-line interpolation between make-whole premium amounts set forth for the higher and lower share prices;

 

if the share price is in excess of $30.08 per share (subject to the same adjustment as provided in “–Conversion Rate” for share prices), no make-whole premium will be paid; and

 

if the share price is less than $18.85 per share (subject to the same adjustment as provided in “–Conversion Rate” for shares), no make-whole premium will be paid.

 

Our obligation to pay the make-whole premium could be considered a penalty, in which case the enforceability thereof would be subject to general equitable principles of reasonableness of economic remedies.

 

No later than the third business day after the occurrence of a fundamental change, we will provide to the holders and the transfer agent of the shares of Class N preferred stock a notice of the occurrence of the fundamental change. Such notice will state:

 

the events constituting the fundamental change;

 

the date of the fundamental change;

 

the last date on which the holder of shares of Class N preferred stock may convert shares of Class N preferred stock in connection with such fundamental change;

 

the conversion rate and, if applicable, the make-whole premium and/or other consideration issuable upon conversions of shares of Class N preferred stock in connection with such fundamental change;

 

whether we will issue common shares or deliver cash upon conversion of shares of Class N preferred stock in connection with the fundamental change and whether any of the consideration issuable upon a conversion of shares of Class N preferred stock in connection with such fundamental change will consist of reference property (and, in such case, specifying such reference property);

 

the name and address of the paying agent and the conversion agent; and

 

the procedures that the holder of shares of Class N preferred stock must follow to exercise the fundamental change conversion right.

We will also issue a press release for publication on the Dow Jones News Service or Bloomberg Business News (or if either such services is not available, another broadly disseminated news or press release service selected by us), or post notice on our website containing the information specified above, in any event prior to the opening of business on the first trading day following any date on which we provide such notice to the holders of shares of Class N preferred stock

 

Certain Provisions of Maryland Law and Our Charter and Bylaws

 

The following paragraphs summarize certain provisions of Maryland law and describe certain provisions of our charter and bylaws. This is a summary, and does not completely describe Maryland law, our charter or our bylaws. For a complete description, we refer you to the Maryland General Corporation Law, our charter and our bylaws. We have incorporated by reference our charter and bylaws as exhibits to this Form 10-K.

 

Election of Directors

 

Under the Maryland General Corporation Law, a corporation must have at least one director. Subject to this provision, a corporation’s bylaws may alter the number of directors and authorize a majority of the entire Board of Directors to alter within specified limits the number of directors set by the corporation’s charter or its bylaws.

 

Our bylaws provide that the number of directors shall not be less than three nor more than 15, and that the number of directors may be changed by a majority vote of the entire Board of Directors. Each director serves for a term ending at the next annual meeting of stockholders following his or her election and until his or her successor is duly elected and qualifies. There is no cumulative voting on the election of directors. Consequently, at each annual meeting of stockholders, the holders of a majority of the outstanding shares of our common stock can elect all of our directors. A vacancy resulting from an increase in the number of directors may be filled by a majority vote of the entire Board of Directors. Other vacancies may be filled by the vote of a majority of the remaining directors. However, stockholders may elect a successor to fill a vacancy on the Board of Directors which results from the removal of a director by the stockholders of the Company.

 

Each nominee for director shall be elected by a majority of the votes cast. A majority of the votes cast means the affirmative vote of a majority of the total votes cast “for” and “against” such nominee. Notwithstanding the foregoing, a nominee for director shall be elected by a plurality of the votes cast if the number of nominees exceeds the number of directors to be elected. If an incumbent director fails to receive the required vote for re-election, under our current bylaws, he or she is required to offer to resign from the Board of Directors, and the nominating and corporate governance committee will consider such offer to resign, determine whether to accept such director’s resignation, and will submit such recommendation for prompt consideration by our Board of Directors.

 

Removal of Directors

 

Under the Maryland General Corporation Law, unless the corporation’s charter provides otherwise, which ours does not, the stockholders of a corporation may remove any director with or without cause, by the affirmative vote of a majority of all the votes entitled to be cast for the election of directors.

 

Business Combinations

 

Under Maryland law, “business combinations” between a Maryland corporation and an interested stockholder, or an affiliate of an interested stockholder, are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, share exchange, or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. An interested stockholder is defined as:

 

 

any person who beneficially owns, directly or indirectly, ten percent or more of the voting power of the corporation’s outstanding voting stock; or

 

an affiliate or associate of the corporation who, at any time within the two-year period prior to the date in question, was the beneficial owner, directly or indirectly, of ten percent or more of the voting power of the then outstanding voting stock of the corporation.

After the five-year prohibition, any business combination between the Maryland corporation and an interested stockholder generally must be recommended by the board of directors of the corporation and approved by the affirmative vote of at least:

 

 

80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and

 

two-thirds of the votes entitled to be cast by holders of voting stock of the corporation other than shares held by the interested stockholder with whom, or with whose affiliate, the business combination is to be effected, or which are held by an affiliate or associate of the interested stockholder.

These super-majority vote requirements do not apply if the corporation’s common stockholders receive a minimum price, as defined under Maryland law, for their shares in the form of cash or other consideration in the same form as previously paid by the interested stockholder for its shares. None of these provisions of Maryland law will apply, however, to business combinations that are approved or exempted by the board of directors of the corporation prior to the time that the interested stockholder becomes an interested stockholder.

 

We have not elected to opt out of the business combination provisions of the Maryland General Corporation Law.

 

Control Share Acquisitions

 

Maryland law provides that a holder of “control shares” of a Maryland corporation acquired in a “control share acquisition” has no voting rights with respect to those shares except to the extent approved by a vote of two-thirds of the votes entitled to be cast on the matter. Shares of stock owned by the acquiror, by officers or by directors who are employees of the corporation, are excluded from shares entitled to vote on the matter. “Control shares” are voting shares of stock which, if aggregated with all other shares of stock owned by the acquiror or shares of stock in respect of which the acquiror is able to exercise or direct the exercise of voting power except solely by virtue of a revocable proxy, would entitle the acquiror to exercise voting power in electing directors within one of the following ranges of voting power:

 

 

one-tenth or more, but less than one-third;

 

one-third or more, but less than a majority; or

 

a majority or more of all voting power.

Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval or shares acquired directly from the corporation. Except as otherwise specified in the statute, a “control share acquisition” means the acquisition of issued and outstanding control shares.

 

Once a person who has made, or proposes to make, a control share acquisition has undertaken to pay expenses and satisfied other conditions, such person may compel the board of directors of the corporation to call a special meeting of stockholders to be held within 50 days of demand to consider the voting rights of the shares. If no request for a meeting is made, the corporation may itself present the question at any stockholders meeting.

 

If voting rights are not approved at the meeting or if the acquiring person does not deliver an acquiring person statement as required by the statute, then the corporation may be able to redeem any or all of the control shares for fair value, except for control shares for which voting rights previously have been approved. The right of the corporation to redeem control shares is subject to certain conditions and limitations. Fair value is determined, without regard to the absence of voting rights for control shares, as of any meeting of stockholders at which the voting rights of such control shares are considered and not approved or, if no such meeting is held, as of the date of the last control share acquisition by the acquiror. If voting rights for control shares are approved at a stockholders meeting and the acquiror becomes entitled to vote a majority of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of these appraisal rights may not be less than the highest price per share paid by the acquiror in the control share acquisition. Some of the limitations and restrictions otherwise applicable to the exercise of dissenters’ rights do not apply in the context of a control share acquisition.

 

The control share acquisition statute does not apply to shares acquired in a merger, consolidation or share exchange if the corporation is a party to the transaction or to acquisitions approved or exempted by the charter or bylaws of the corporation.

 

Our bylaws contain a provision exempting from the control share acquisition statute any and all acquisitions by any person of shares of our stock. There can be no assurance that this provision will not be amended or eliminated at any time in the future.

 

Subtitle 8

 

Subtitle 8 of Title 3 of the Maryland General Corporation Law permits a Maryland corporation with a class of equity securities registered under the Securities Exchange Act of 1934, as amended, and at least three independent directors to elect to be subject, by provision in its charter or bylaws or a resolution of its board of directors and notwithstanding any contrary provision in the charter or bylaws, to any or all of five provisions:

 

a classified board,

 

a two-thirds vote requirement for removing a director,

 

a requirement that the number of directors be fixed only by vote of the directors,

 

a requirement that a vacancy on the board be filled only by the remaining directors and for the remainder of the full term of the class of directors in which the vacancy occurred, and

 

a majority requirement for the calling of a stockholder-requested special meeting of stockholders.

Through provisions in our charter and bylaws unrelated to Subtitle 8, we already vest in the Board of Directors the exclusive power to fix the number of directorships and require, unless called by our chairman of the Board of Directors, our president, our chief executive officer or the Board of Directors, the request of holders of a majority of the outstanding shares to call a special meeting.

 

Amendments to the Charter

 

The Maryland General Corporation Law generally allows an amendment of a corporation’s charter if its board of directors adopts a resolution setting forth the amendment proposed, declaring its advisability and directing that it be submitted to the stockholders for consideration at a meeting of stockholders, and the stockholders thereafter approve such proposed amendment either at a special meeting called by the board for the purpose of approval of such amendment by the stockholders or, if so directed by the board, at the next annual stockholders meeting by the affirmative vote of two-thirds of all votes entitled to be cast on the matter.

 

Under Maryland law and pursuant to our charter, most amendments to our charter must be declared advisable and approved by the Board of Directors, and approved by the affirmative vote of a majority of the votes entitled to be cast at a meeting of stockholders.

 

Amendment to the Bylaws

 

Under the Maryland General Corporation Law, the power to amend the bylaws may be left with the stockholders, vested exclusively in the directors or shared.

 

Our bylaws provide that stockholders have the power to adopt, alter or repeal any bylaws or to make new bylaws, and that the Board of Directors shall have the power to do the same, except that the Board of Directors shall not alter or repeal the section of the bylaws governing amendments to the bylaws or any bylaws made by the stockholders.

 

Extraordinary Actions

 

Pursuant to our charter and as permitted by Maryland law, a merger, statutory share exchange, conversion into another form of entity, sale of all or substantially all of our assets or dissolution must generally be declared advisable and approved by our Board of Directors and approved by the affirmative vote of the holders of a majority of our outstanding shares of common stock.

 

Advance Notice of Director Nominations and New Business

 

Our bylaws provide that with respect to an annual meeting of stockholders, nominations of individuals for election to the Board of Directors and the proposal of business to be considered by stockholders may be made only: (i) pursuant to our notice of the meeting; (ii) by or at the direction of the Board of Directors; or (iii) by a stockholder who is a stockholder of record at the record date set for the meeting, at the time of giving the advance notice required by the bylaws and at the time of the meeting, who is entitled to vote at the meeting in the election of each individual so nominated or on any such other business, as the case may be, and who has complied with the advance notice procedures of the bylaws. With respect to special meetings of stockholders, only the business specified in our notice of the meeting may be brought before the meeting. Nominations of individuals for election to the Board of Directors at a special meeting may be made only: (i) pursuant to our notice of the meeting, (ii) by or at the direction of the Board of Directors; or (iii) provided that the Board of Directors has determined that directors shall be elected at such meeting, by a stockholder who is a stockholder of record at the record date for the meeting, at the time of giving the advance notice required by the bylaws and at the time of the meeting, who is entitled to vote at the meeting in the election of each individual so nominated and who has complied with the advance notice provisions of the bylaws.

 

Proxy Access

 

Our bylaws include provisions permitting, subject to certain eligibility, procedural and disclosure requirements, qualifying stockholders, or a qualifying group of no more than 20 stockholders, that have maintain continuous ownership of at least three percent of our outstanding common stock for at least the three prior years to require us to include in our proxy materials for an annual meeting of stockholders a number of director nominees not to exceed twenty percent of the number of directors up for election, provided that that number will be reduced by the number of stockholder nominees elected at either of the two preceding annual meetings after inclusion in the Company’s proxy materials and nominated for re-election by the Board of Directors.

 

Anti-takeover Effect of Certain Provisions of Maryland Law and Our Charter and Bylaws

 

The restrictions on ownership and transfer of our stock, the business combination provisions of the Maryland General Corporation Law and the advance notice provisions of our bylaws could delay, defer or prevent a transaction or a change of control of us that might involve a premium price for our stock or that our stockholders otherwise believe to be in their best interests. Likewise, if our Board of Directors were to elect to be subject to the provisions of Subtitle 8 or if the provision in our bylaws opting out of the control share acquisition provisions of the Maryland General Corporation Law were amended or rescinded, these provisions of the Maryland General Corporation Law could have similar anti-takeover effects.

 

Limitation of Liability and Indemnification

 

Under Maryland law, a Maryland corporation may include in its charter a provision eliminating the liability of directors and officers to the corporation and its stockholders for money damages, except for liability resulting from (a) actual receipt of an improper benefit or profit in money, property or services, or (b) active and deliberate dishonesty established by a final judgment, and which is material to the cause of action. Our charter contains a provision which eliminates directors’ and officers’ liability to the maximum extent permitted by Maryland law.

 

The Maryland General Corporation Law requires a corporation (unless its charter provides otherwise, which our charter does not) to indemnify a director or officer who has been successful, on the merits or otherwise, in the defense of any proceeding to which he or she is made or threatened to be made a party by reason of his service in that capacity. The Maryland General Corporation Law permits a corporation to indemnify its present and former directors and officers, among others, against judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to or in which they may be made or threatened to be made a party or witness by reason of their service in those or other capacities unless it is established that: (a) the act or omission of the director or officer was material to the matter giving rise to the proceeding and (i) was committed in bad faith; or (ii) was the result of active and deliberate dishonesty; (b) the director or officer actually received an improper personal benefit in money, property or services; or (c) in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or omission was unlawful. However, a Maryland corporation may not indemnify for an adverse judgment in a suit by or in the right of the corporation or for a judgment of liability on the basis that personal benefit was improperly received, unless in either case a court orders indemnification, and then only for expenses.

 

In addition, the Maryland General Corporation Law permits a Maryland corporation to advance reasonable expenses to a director or officer upon the corporation’s receipt of: (a) a written affirmation by the director or officer of his or her good faith belief that he or she has met the standard of conduct necessary for indemnification by the corporation; and (b) a written undertaking by the director or officer or on his or her behalf to repay the amount paid or reimbursed by the corporation if it is ultimately determined that he or she did not meet the standard of conduct.

 

Our charter authorizes us, and our bylaws obligate us, to the maximum extent permitted by Maryland law and without requiring a preliminary determination as to entitlement, to indemnify any present or former director or officer of us or any individual who, while a director or officer of us and at our request, serves or has served another corporation, real-estate investment trust, partnership, joint venture, trust, employee benefit plan or any other enterprise as a director, officer, partner or trustee and who is made or threatened to be made a party to the proceeding by reason of his or her service in that capacity from and against any claim or liability to which that individual may become subject or which that individual may incur by reason of his or her service in that capacity, and to pay or reimburse his or her reasonable expenses in advance of final disposition of a proceeding.

 

Our charter and bylaws also permit us, with the approval of our Board of Directors, to indemnify and advance expenses to any person who served a predecessor of ours in any of the capacities described above and to any employee or agent of ours or a predecessor of ours.

 

 

Exhibit 10.12

 

KIMCO REALTY CORPORATION
SECOND AMENDED AND RESTATED 2020 EQUITY PARTICIPATION PLAN

(Amended and Restated Effective: January 29, 2024)

 

Article 1.
PURPOSE

 

The purpose of the Second Amended and Restated Kimco Realty Corporation 2020 Equity Participation Plan (as it may be amended and/or restated, the “Plan”) is to promote the success and enhance the value of Kimco Realty Corporation (the “Company”) and the Partnership by linking the individual interests of the Eligible Individuals to those of Company stockholders and by providing such Eligible Individuals with an incentive for outstanding performance to generate superior returns to Company stockholders. The Plan is further intended to provide flexibility to the Company, the Partnership and their respective subsidiaries in its ability to motivate, attract, and retain the services of Eligible Individuals upon whose judgment, interest, and special effort the successful conduct of the Company’s and the Partnership’s operation is largely dependent. Effective as of January 29, 2024 (the “Effective Date”), this Plan amends and restates, in its entirety, the Kimco Realty Corporation Amended and Restated 2020 Equity Incentive Plan.

 

Article 2.
DEFINITIONS AND CONSTRUCTION

 

Wherever the following terms are used in the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise. The singular pronoun shall include the plural where the context so indicates.

 

2.1 “Administrator

 

shall mean the entity that conducts the general administration of the Plan as provided in Article 11. With reference to the duties of the Committee under the Plan which have been delegated to one or more persons pursuant to Section 11.6, or as to which the Board has assumed, the term “Administrator” shall refer to such person(s) unless the Committee or the Board has revoked such delegation or the Board has terminated the assumption of such duties.

 

2.2 “Affiliate

 

shall mean (a) the Partnership, (b) any Subsidiary; and (c) any domestic eligible entity that is disregarded, under Treasury Regulation Section 301.7701-3, as an entity separate from either (i) the Company, (ii) the Partnership or (iii) any Subsidiary.

 

2. 3“Applicable Accounting Standards

 

shall mean Generally Accepted Accounting Principles in the United States, International Financial Reporting Standards or such other accounting principles or standards as may apply to the Company’s financial statements under United States federal securities laws from time to time.

 

2.4 “Award

 

shall mean an Option, a Restricted Stock award, a Restricted Stock Unit award, a Performance Award, a Dividend Equivalents award, a Deferred Stock award, a Stock Payment award, a Stock Appreciation Right or a LTIP Unit, which may be awarded or granted under the Plan (collectively, “Awards”).

 

2.5 “Award Agreement

 

shall mean any written notice, agreement, terms and conditions, contract or other instrument or document evidencing an Award, including through electronic medium, which shall contain such terms and conditions with respect to an Award as the Administrator shall determine consistent with the Plan.

 

2.6 “Award Limit

 

shall mean with respect to Awards that shall be payable in Shares or in cash, as the case may be, the respective limits set forth in Section 3.3 and Section 3.4.

 

2.7 “Board

 

shall mean the Board of Directors of the Company.

 

2.8 “Change in Control

 

shall mean (a) a transaction or series of transactions resulting in more than 50% of the voting stock of the Company being held by a Person or Group (as defined in Rule 13d-5 under the Exchange Act) that does not include the Company or the Partnership; (b) the date on which a majority of the members of the Board is replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of the appointment or election; (c) the consummation by the Company of a sale or other disposition of all or substantially all of the assets of the Company, in any single transaction or series of related transactions, to a Person (as defined in Rule 13d-5 under the Exchange Act) who is not an affiliate of the Company or an entity in which the shareholders of the Company immediately prior to such transaction do not control more than 50% of the voting power immediately following the transaction; (d) a merger, consolidation, reorganization or business combination of the Company into another entity which is not an affiliate of the Company or an entity in which the shareholders of the Company immediately prior to such transaction do not control more than 50% of the voting power immediately following the transaction; or (e) the approval by the Company’s stockholders of a liquidation or dissolution of the Company; provided, that the transaction or event described in (a), (b), (c), (d) or (e) constitutes a “change in control event” as defined in Section 1.409A-3(i)(5) of the Department of Treasury Regulations.

 

2.9 “Code

 

shall mean the Internal Revenue Code of 1986, as amended from time to time, together with the regulations and official guidance promulgated thereunder.

 

2.10 “Committee

 

shall mean the Compensation Committee of the Board, or another committee or subcommittee of the Board, appointed as provided in Section 11.1.

 

2.11 “Common Stock

 

shall mean the common stock of the Company, par value $0.01 per share.

 

2.12 “Company

 

shall mean Kimco Realty Corporation, a Maryland corporation.

 

2.13 “Consultant

 

shall mean any consultant or adviser that is not an Employee, in each case, that can be granted an Award that is eligible to be registered on a Form S-8 Registration Statement.

 

2.14 “Deferred Stock

 

shall mean a right to receive Shares, pursuant to a deferred compensation arrangement or otherwise, awarded under Section 8.4.

 

2.15 “Director

 

shall mean a member of the Board, as constituted from time to time.

 

2.16 “Dividend Equivalent

 

shall mean a right to receive the equivalent value (in cash or Shares) of dividends paid on Shares, awarded under Section 8.2.

 

2.17 “DRO

 

shall mean a domestic relations order as defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended from time to time, or the rules thereunder.

 

2.18 “Eligible Individual

 

shall mean any person who is an Employee, a Consultant or a Non-Employee Director, as determined by the Committee.

 

2.19 “Employee

 

shall mean any officer or other employee (as determined in accordance with Section 3401(c) of the Code and the Treasury Regulations thereunder) of the Company, of the Partnership, of Kimco Realty Services II, Inc., or of any Subsidiary.

 

2.20 “Equity Restructuring

 

shall mean a nonreciprocal transaction between the Company and its stockholders, such as a stock dividend, stock split, spin-off, rights offering or recapitalization through a large, nonrecurring cash dividend, that affects the number or kind of shares of Common Stock (or other securities of the Company) or the share price of Common Stock (or other securities) and causes a change in the per share value of the Common Stock underlying outstanding Awards.

 

2.21 “Exchange Act

 

shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

2.22 “Fair Market Value

 

shall mean, as of any given date, the value of a Share determined as follows:

 

(a)    If the Common Stock is listed on any (i) established securities exchange (such as the New York Stock Exchange, the NASDAQ Global Market and the NASDAQ Global Select Market), (ii) national market system or (iii) automated quotation system on which the Shares are listed, quoted or traded, its Fair Market Value shall be the closing sales price for a share of Common Stock as quoted on such exchange or system for such date or, if there is no closing sales price for a share of Common Stock on the date in question, the closing sales price for a share of Common Stock on the last preceding date for which such quotation exists, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

 

(b)    If the Common Stock is not listed on an established securities exchange, national market system or automated quotation system, but the Common Stock is regularly quoted by a recognized securities dealer, its Fair Market Value shall be the mean of the high bid and low asked prices for such date or, if there are no high bid and low asked prices for a share of Common Stock on such date, the high bid and low asked prices for a share of Common Stock on the last preceding date for which such information exists, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

 

(c)    If the Common Stock is neither listed on an established securities exchange, national market system or automated quotation system nor regularly quoted by a recognized securities dealer, its Fair Market Value shall be established by the Administrator in good faith.

 

2.23 “Full Value Award

 

shall mean any Award other than (i) an Option, (ii) a Stock Appreciation Right or (iii) any other Award for which the Holder pays the intrinsic value existing as of the date of grant (whether directly or by foregoing a right to receive a payment from the Company or any Affiliate).

 

2.24 “Greater Than 10% Stockholder

 

shall mean an individual then owning (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of stock of the Company or any Affiliate corporation (as defined in Section 424(f) of the Code) or parent corporation thereof (as defined in Section 424(e) of the Code).

 

2.25 “Holder

 

shall mean an Eligible Individual who has been granted an Award.

 

2.26 “Incentive Stock Option

 

shall mean an Option that is intended to qualify as an incentive stock option and conforms to the applicable provisions of Section 422 of the Code.

 

2.27 “LTIP Unit

 

shall mean, to the extent authorized by the Operating Agreement, a unit of the Partnership that is granted pursuant to Section 8.6 hereof and is intended to constitute a “profits interest” within the meaning of the Code.

 

2.28 “Non-Employee Director

 

shall mean a Director of the Company who is not an Employee.

 

2.29 “Non-Qualified Stock Option” shall mean an Option that is not an Incentive Stock Option.

 

2.30 “    Option” shall mean a right to purchase Shares at a specified exercise price, granted under Article 5. An Option shall be either a Non-Qualified Stock Option or an Incentive Stock Option; provided, however, that Options granted to Non-Employee Directors and Consultants shall only be Non-Qualified Stock Options.

 

2.31“Operating Agreement

 

shall mean the Limited Liability Company Agreement of the Partnership, as it may be amended, modified and/or restated from time to time.

 

2.32     “Parent

 

shall mean any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities ending with the Company if each of the entities other than the Company beneficially owns, at the time of the determination, securities or interests representing more than fifty percent (50%) of the total combined voting power of all classes of securities or interests in one of the other entities in such chain.

 

2.33 “Participant

 

shall mean an Eligible Individual who has been granted an Award pursuant to the Plan.

 

2.34 “Partnership

 

shall mean Kimco Realty OP, LLC.

 

2.35 “Performance Award

 

shall mean a Performance Share award, Performance LTIP Unit award, or a cash bonus award, stock bonus award, performance award or incentive award that is paid in (or covers) cash, Shares, LTIP Units, or a combination of cash and Shares or cash and LTIP Units, awarded under Section 8.1.

 

2.36 “Performance Criteria

 

shall mean the criteria (and adjustments) that the Committee selects for an Award for purposes of establishing the Performance Goal or Performance Goals for a Performance Period, determined as follows:

 

(a)    The Performance Criteria that shall be used to establish Performance Goals may include, but are not limited to, the following: (i) net earnings (either before or after one or more of the following: (A) interest, (B) taxes, (C) depreciation and (D) amortization); (ii) gross or net sales or revenue; (iii) net income (either before or after taxes); (iv) adjusted net income; (v) operating earnings, income or profit; (vi) cash flow (including, but not limited to, operating cash flow and free cash flow); (vii) return on assets; (viii) return on capital or invested capital; (ix) return on stockholders’ equity; (x) total stockholder return; (xi) return on sales; (xii) gross or net profit or operating margin; (xiii) costs, cost reduction or savings; (xiv) funds from operations; (xv) expenses; (xvi) working capital; (xvii) earnings per share; (xviii) adjusted earnings per share; (xix) price per share of Common Stock or appreciation in the fair market value of Common Stock; (xx) regulatory body approval for commercialization of a product; (xxi) implementation or completion of critical projects; (xxii) market share; and (xxiii) economic value, any of which may be measured either in absolute terms or as compared to any incremental increase or decrease or as compared to results of a peer group or to market performance indicators or indices; provided, that, to the extent applicable, each of the business criteria described in this subsection (a) shall be determined in accordance with Applicable Accounting Standards.

 

(b)    The Administrator may, in its sole discretion, provide that one or more adjustments shall be made to one or more of the Performance Goals. Such adjustments may include one or more of the following: (i) items related to a change in accounting principle; (ii) items relating to financing activities; (iii) expenses for restructuring or productivity initiatives; (iv) other non-operating items; (v) items related to acquisitions; (vi) items attributable to the business operations of any entity acquired by the Company or the Partnership during the Performance Period; (vii) items related to the disposal of a business or segment of a business; (viii) items related to discontinued operations that do not qualify as a segment of a business under Applicable Accounting Standards; (ix) items attributable to any stock dividend, stock split, combination or exchange of stock occurring during the Performance Period; (x) any other items of significant income or expense which are determined to be appropriate adjustments; (xi) items relating to unusual or extraordinary corporate transactions, events or developments, (xii) items related to amortization of acquired intangible assets; (xiii) items that are outside the scope of the Company’s or the Partnership’s core, on-going business activities; (xiv) items related to acquired in-process research and development; (xv) items relating to changes in tax laws; (xvi) items relating to major licensing or partnership arrangements; (xvii) items relating to asset impairment charges; (xviii) items relating to gains or losses for litigation, arbitration and contractual settlements; (xix) items relating to any other unusual or nonrecurring events or changes in applicable laws, accounting principles or business conditions; (xx) items related to changes in Applicable Accounting Standards; or (xxi) items reflecting adjustments to funds from operations with respect to straight-line rental income as reported in the Company’s Exchange Act reports.

 

2.37 “Performance Goals

 

shall mean, for a Performance Period, one or more goals established by the Administrator for the Performance Period based upon one or more Performance Criteria. Depending on the Performance Criteria used to establish such Performance Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of the Partnership, a Subsidiary, division, business unit, or an individual. The achievement of each Performance Goal may be determined in accordance with Applicable Accounting Standards.

 

2.38 “Performance LTIP Units” shall have the same meaning as set forth in the Operating Agreement.

 

2.39 “Performance Period

 

shall mean one or more periods of time, which may be of varying and overlapping durations, as the Administrator may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Holder’s right to, and the payment of, a Performance Award.

 

2.40 “Performance Shares

 

shall mean the right to receive shares of Common Stock and/or Restricted Stock awarded under Section 8.1(c).

 

2.41 “Permitted Transferee

 

shall mean, with respect to a Holder, any “family member” of the Holder, as defined under the instructions to use of the Form S-8 Registration Statement under the Securities Act, after taking into account any state, federal, local or foreign tax and securities laws applicable to transferable Awards.

 

2.42 “Plan

 

shall mean this Second Amended and Restated Kimco Realty Corporation 2020 Equity Participation Plan, as it may be amended or restated from time to time.

 

2.43 “Program

 

shall mean any program adopted by the Administrator pursuant to the Plan containing the terms and conditions intended to govern a specified type of Award granted under the Plan and pursuant to which such type of Award may be granted under the Plan.

 

2.44 “REIT” shall mean a real estate investment trust within the meaning of Sections 856 through 860 of the Code.

 

2.45 “Restricted Stock” shall mean Common Stock awarded under Article 7 that is subject to certain restrictions and may be subject to risk of forfeiture or repurchase.

 

2.46 “Restricted Stock Units

 

shall mean the right to receive Shares awarded under Section 8.5.

 

2.47 “Retirement

 

of a Holder shall mean his Termination of Service on or after his sixty-fifth (65th) birthday or his completion of thirty (30) full (not necessarily consecutive) years of employment, consultancy or directorship, as the case may be, with the Company or any Affiliate.

 

2.48 “ Securities Act

 

shall mean the Securities Act of 1933, as amended.

 

2.49 “Shares

 

shall mean shares of Common Stock.

 

2.50 “Stock Appreciation Right

 

shall mean a stock appreciation right granted under Article 9.

 

2.51 “Stock Payment

 

shall mean (a) a payment in the form of Shares, or (b) an option or other right to purchase Shares, as part of a bonus, deferred compensation or other arrangement, awarded under Section 8.3.

 

2.52 “Subsidiary

 

shall mean any entity (other than the Company or Partnership, as applicable), whether domestic or foreign, in an unbroken chain of entities beginning with the Company or the Partnership (as applicable) if each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities or interests representing more than fifty percent (50%) of the total combined voting power of all classes of securities or interests in one of the other entities in such chain.

 

2.53 “Substitute Award

 

shall mean an Award granted under the Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted by a company or other entity in connection with a corporate transaction, such as a merger, combination, consolidation or acquisition of property or stock; providedhowever, that in no event shall the term “Substitute Award” be construed to refer to an award made in connection with the cancellation and repricing of an Option or Stock Appreciation Right.

 

2.54 “Termination of Service

 

shall mean,

 

(a)    As to a Consultant, the time when the engagement of a Holder as a Consultant to the Company or an Affiliate is terminated for any reason, with or without cause, including, without limitation, by resignation, discharge, death or Retirement, but excluding terminations where the Consultant simultaneously commences or remains in employment or service with the Company or any Affiliate.

 

(b)    As to a Non-Employee Director, the time when a Holder who is a Non-Employee Director ceases to be a Director for any reason, including, without limitation, a termination by resignation, failure to be elected, death or Retirement, but excluding terminations where the Holder simultaneously commences or remains in employment or service with the Company or any Affiliate.

 

(c)    As to an Employee, the time when the employee-employer relationship between a Holder and the Company or any Affiliate is terminated for any reason, including, without limitation, a termination by resignation, discharge, death, disability or Retirement; but excluding terminations where the Holder simultaneously commences or remains in employment or service with the Company or any Affiliate.

 

The Administrator, in its sole discretion, shall determine the effect of all matters and questions relating to Terminations of Service, including, without limitation, the question of whether a Termination of Service resulted from a discharge for cause and all questions of whether particular leaves of absence constitute a Termination of Service; providedhowever, that, with respect to Incentive Stock Options, unless the Administrator otherwise provides in the terms of the Program, the Award Agreement or otherwise, a leave of absence, change in status from an employee to an independent contractor or other change in the employee-employer relationship shall constitute a Termination of Service only if, and to the extent that, such leave of absence, change in status or other change interrupts employment for the purposes of Section 422(a)(2) of the Code and the then applicable regulations and revenue rulings under said Section. For purposes of the Plan, a Holder’s employee-employer relationship or consultancy relations shall be deemed to be terminated in the event that the Affiliate employing or contracting with such Holder ceases to remain an Affiliate following any merger, sale of stock or other corporate transaction or event (including, without limitation, a spin-off).

 

Article 3.
SHARES SUBJECT TO THE PLAN

 

3.1    Number of Shares.

 

(a)    Subject to Section 12.2 and Section 3.1(b), the aggregate number of Shares which may be issued or transferred pursuant to Awards under the Plan shall be 10,000,000 Shares. Subject to Section 12.2 hereof, each LTIP Unit issued pursuant to an Award shall count as one Share for purposes of calculating the aggregate number of Shares available for issuance under the Plan as set forth in this Section 3.1(a) and for purposes of calculating the Individual Award Limit set forth in Section 3.3 hereof.

 

(b)    If any Shares subject to an Award are forfeited or expire or such Award is settled for cash (in whole or in part), the Shares subject to such Award shall, to the extent of such forfeiture, expiration or cash settlement, again be available for future grants of Awards under the Plan. Notwithstanding anything to the contrary contained herein, the following Shares shall not be added to the Shares authorized for grant under Section 3.1(a) and will not be available for future grants of Awards: (i) Shares tendered by a Holder or withheld by the Company in payment of the exercise price of an Option; (ii) Shares tendered by the Holder or withheld by the Company to satisfy any tax withholding obligation with respect to an Award; (iii) Shares subject to a Stock Appreciation Right that are not issued in connection with the stock settlement of the Stock Appreciation Right on exercise thereof; and (iv) Shares purchased on the open market with the cash proceeds from the exercise of Options. Any Shares repurchased by the Company under Section 7.4 at the same price paid by the Holder, or a lower price (as adjusted for corporate events), so that such shares are returned to the Company will again be available for Awards. The payment of Dividend Equivalents in cash in conjunction with any outstanding Awards shall not be counted against the shares available for issuance under the Plan. Notwithstanding the provisions of this Section 3.1(b), no Shares may again be optioned, granted or awarded if such action would cause an Incentive Stock Option to fail to qualify as an incentive stock option under Section 422 of the Code.

 

(c)    Substitute Awards shall not reduce the Shares authorized for grant under the Plan. Additionally, in the event that a company acquired by the Company or any Affiliate or with which the Company or any Affiliate combines has shares available under a pre-existing plan approved by stockholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the Shares authorized for grant under the Plan; provided that Awards using such available shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not employed by or providing services to the Company or its Affiliates immediately prior to such acquisition or combination.

 

3.2  Stock Distributed.

 

Any Shares distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Common Stock, treasury Common Stock or Common Stock purchased on the open market.

 

3.3  Limitation on Number of Shares Subject to Awards.

 

Notwithstanding any provision in the Plan to the contrary, and subject to Section 12.2, the maximum aggregate number of Shares with respect to one or more Awards that may be granted to any one person during any calendar year shall be 750,000 and the maximum amount payable in cash during any calendar year to any one person with respect to one or more Awards that do not relate to Shares and are payable in cash shall be $2,000,000.

 

3.4  Non-Employee Director Compensation.

 

Notwithstanding any provision to the contrary in the Plan, the Committee may establish compensation for Non-Employee Directors from time to time, subject to the limitations in the Plan. The Committee will from time to time determine the terms, conditions and amounts of all such Non-Employee Director compensation in its discretion and pursuant to the exercise of its business judgment, taking into account such factors, circumstances and considerations as it shall deem relevant from time to time, provided that the sum of any cash compensation, or other compensation, and the value (determined as of the grant date in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, or any successor thereto) of Awards granted to a Non-Employee Director as compensation for services as a Non-Employee Director during any fiscal year of the Company may not exceed $500,000. The Committee may make exceptions to this limit for individual Non-Employee Directors in extraordinary circumstances, as the Committee may determine in its discretion, provided that the Non-Employee Director receiving such additional compensation may not participate in the decision to award such compensation or in other contemporaneous compensation decisions involving Non-Employee Directors.

 

Article 4.
GRANTING OF AWARDS

 

4.1  Participation.

 

The Administrator may, from time to time, select from among all Eligible Individuals, those to whom an Award shall be granted and shall determine the nature and amount of each Award, which shall not be inconsistent with the requirements of the Plan. No Eligible Individual shall have any right to be granted an Award pursuant to the Plan.

 

4.2  Award Agreement.

 

Each Award shall be evidenced by an Award Agreement. Award Agreements evidencing Incentive Stock Options shall contain such terms and conditions as may be necessary to meet the applicable provisions of Section 422 of the Code.

 

4.3  Limitations Applicable to Section 16 Persons.

 

Notwithstanding any other provision of the Plan, the Plan, and any Award granted or awarded to any individual who is then subject to Section 16 of the Exchange Act, shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including Rule 16b-3 of the Exchange Act and any amendments thereto) that are requirements for the application of such exemptive rule. To the extent permitted by applicable law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

 

4.4  At-Will Employment.

 

Nothing in the Plan or in any Program or Award Agreement hereunder shall confer upon any Holder any right to continue in the employ of, or as a Director or Consultant for, the Company or any Affiliate, or shall interfere with or restrict in any way the rights of the Company and any Affiliate, which rights are hereby expressly reserved, to discharge any Holder at any time for any reason whatsoever, with or without cause, and with or without notice, or to terminate or change all other terms and conditions of employment or engagement, except to the extent expressly provided otherwise in a written agreement between the Holder and the Company or any Affiliate.

 

4.5  Foreign Holders.

 

Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws in other countries in which the Company and its Affiliates operate or have Employees, Non-Employee Directors or Consultants, or in order to comply with the requirements of any foreign securities exchange, the Administrator, in its sole discretion, shall have the power and authority to (a) determine which Subsidiaries shall be covered by the Plan; (b) determine which Eligible Individuals outside the United States are eligible to participate in the Plan; (c) modify the terms and conditions of any Award granted to Eligible Individuals outside the United States to comply with applicable foreign laws or listing requirements of any such foreign securities exchange; (d) establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable (any such subplans and/or modifications shall be attached to the Plan as appendices); providedhowever, that no such subplans and/or modifications shall increase the share limitations contained in Sections 3.1, 3.3 and 3.4; and (e) take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local governmental regulatory exemptions or approvals or listing requirements of any such foreign securities exchange. Notwithstanding the foregoing, the Administrator may not take any actions hereunder, and no Awards shall be granted, that would violate the Code, the Exchange Act, the Securities Act, any other securities law or governing statute, the rules of the securities exchange or automated quotation system on which the Shares are listed, quoted or traded or any other applicable law.

 

4.6  Stand-Alone and Tandem Awards.

 

Awards granted pursuant to the Plan may, in the sole discretion of the Administrator, be granted either alone, in addition to, or in tandem with, any other Award granted pursuant to the Plan. Awards granted in addition to or in tandem with other Awards may be granted either at the same time as or at a different time from the grant of such other Awards.

 

Article 5.
GRANTING OF OPTIONS

 

5.1  Granting of Options to Eligible Individuals.

 

The Administrator is authorized to grant Options to Eligible Individuals from time to time, in its sole discretion, on such terms and conditions as it may determine which shall not be inconsistent with the Plan.

 

5.2  Qualification of Incentive Stock Options.

 

No Incentive Stock Option shall be granted to any person who is not an Employee of the Company or any “subsidiary corporation” of the Company (as defined in Section 424(f) of the Code). No person who qualifies as a Greater Than 10% Stockholder may be granted an Incentive Stock Option unless such Incentive Stock Option conforms to the applicable provisions of Section 422 of the Code. Any Incentive Stock Option granted under the Plan may be modified by the Administrator, with the consent of the Holder, to disqualify such Option from treatment as an “incentive stock option” under Section 422 of the Code. To the extent that the aggregate fair market value of stock with respect to which “incentive stock options” (within the meaning of Section 422 of the Code, but without regard to Section 422(d) of the Code) are exercisable for the first time by a Holder during any calendar year under the Plan, and all other plans of the Company and any Affiliate or parent corporation thereof (each as defined in Section 424(f) and (e) of the Code, respectively), exceeds $100,000, the Options shall be treated as Non-Qualified Stock Options to the extent required by Section 422 of the Code. The rule set forth in the preceding sentence shall be applied by taking Options and other “incentive stock options” into account in the order in which they were granted and the Fair Market Value of stock shall be determined as of the time the respective options were granted.

 

5.3  Option Exercise Price.

 

. The exercise price per Share subject to each Option shall be set by the Administrator, but shall not be less than 100% of the Fair Market Value of a Share on the date the Option is granted (or, as to Incentive Stock Options, on the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code). In addition, in the case of Incentive Stock Options granted to a Greater Than 10% Stockholder, such price shall not be less than 110% of the Fair Market Value of a Share on the date the Option is granted (or the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code).

 

5.4  Option Term.

 

The term of each Option shall be set by the Administrator in its sole discretion; providedhowever, that no Option may be exercised to any extent by anyone after the first to occur of the following events:

 

(a)    In the case of an Incentive Stock Option, (i) the expiration of ten years from the date the Option was granted, or (ii) in the case of a Greater Than 10% Stockholder, the expiration of five years from the date the Incentive Stock Option was granted;

 

(b)    In the case of a Non-Qualified Stock Option, the expiration of ten years and one day from the date the Non-Qualified Stock Option was granted;

 

(c)    Except (i) in the case of any Holder who is disabled (within the meaning of Section 22(e)(3) of the Code) or (ii) as otherwise determined by the Administrator in its discretion either pursuant to the terms of an applicable Award Agreement or by action of the Administrator taken at the time of the Holder’s Termination of Services, the expiration of three months from the date of the Holder’s Termination of Services for any reason other than such Holder’s death (unless the Holder dies within said three-month period) or Retirement;

 

(d)    In the case of a Holder who is disabled (within the meaning of Section 22(e)(3) of the Code), the expiration of one year from the date of the Holder’s Termination of Services for any reason other than such Holder’s death (unless the Holder dies within said one-year period) or Retirement;

 

(e)    The expiration of one year from the date of the Holder’s death; or

 

(f)    In the case of the Holder’s Retirement, the earlier of (i) the date the Holder engages in any activity in competition with the Company or Affiliate, or which is inimical, contrary or harmful to the interests of the Company or Affiliate, or (ii) the expiration of the term of the Option in accordance with clause (a) or (b) above.

 

Except as limited by the requirements of Section 409A or Section 422 of the Code and regulations and rulings thereunder, the Administrator may extend the term of any outstanding Option, and may extend the time period during which vested Options may be exercised, in connection with any Termination of Service of the Holder, in each case, to the extent that such extension does not constitute a repricing or a cash buyout under Section 10.6, and may amend any other term or condition of such Option relating to such a Termination of Service.

 

5.5  Option Vesting.

 

(a)    The period during which the right to exercise, in whole or in part, an Option vests in the Holder shall be set by the Administrator and the Administrator may determine that an Option may not be exercised in whole or in part for a specified period after it is granted. Such vesting may be based on service with the Company or any Affiliate, any of the Performance Criteria, or any other criteria selected by the Administrator. After grant of an Option, in connection with or following a Holder’s Termination of Service, the Administrator may, in its sole discretion and subject to whatever terms and conditions it selects, accelerate the period during which an Option vests.

 

(b)    No portion of an Option which is unexercisable at a Holder’s Termination of Service shall thereafter become exercisable, except as may be otherwise provided by the Administrator either in the Program, the Award Agreement or by action of the Administrator following the grant of the Option.

 

5.6  Substitute Awards.

 

Notwithstanding the foregoing provisions of this Article 5 to the contrary, in the case of an Option that is a Substitute Award, the price per share of the shares subject to such Option may be less than the Fair Market Value per share on the date of grant; provided, that the excess of (a) the aggregate Fair Market Value (as of the date such Substitute Award is granted) of the shares subject to the Substitute Award, over (b) the aggregate exercise price thereof does not exceed the excess of (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award, such fair market value to be determined by the Administrator) of the shares of the predecessor entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate exercise price of such shares.

 

5.7  Substitution of Stock Appreciation Rights.

 

The Administrator may provide in the applicable Program or the Award Agreement evidencing the grant of an Option that the Administrator, in its sole discretion, shall have the right to substitute a Stock Appreciation Right for such Option at any time prior to or upon exercise of such Option; provided, that such Stock Appreciation Right shall be exercisable with respect to the same number of Shares for which such substituted Option would have been exercisable, and shall also have the same exercise price and remaining term as the substituted Option.

 

Article 6.
EXERCISE OF OPTIONS

 

6.1  Partial Exercise.

 

An exercisable Option may be exercised in whole or in part. An Option may be exercisable with respect to fractional shares, provided that the Administrator may require that, by the terms of the Option, a partial exercise must be with respect to a minimum number of shares.

 

6.2  Manner of Exercise.

 

All or a portion of an exercisable Option shall be deemed exercised upon delivery of all of the following to the Secretary of the Company, or such other person or entity designated by the Administrator, or his, her or its office, as applicable:

 

(a)    A written or electronic notice complying with the applicable rules established by the Administrator stating that the Option, or a portion thereof, is exercised. The notice shall be signed by the Holder or other person then entitled to exercise the Option or such portion of the Option;

 

(b)    Such representations and documents as the Administrator, in its sole discretion, deems necessary or advisable to effect compliance with all applicable provisions of the Securities Act and any other federal, state or foreign securities laws or regulations, the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded or any other applicable law. The Administrator may, in its sole discretion, also take whatever additional actions it deems appropriate to effect such compliance including, without limitation, placing legends on share certificates and issuing stop-transfer notices to agents and registrars;

 

(c)    In the event that the Option shall be exercised pursuant to Section 10.3 by any person or persons other than the Holder, appropriate proof of the right of such person or persons to exercise the Option, as determined in the sole discretion of the Administrator; and

 

(d)    Full payment of the exercise price and applicable withholding taxes to the stock administrator of the Company for the shares with respect to which the Option, or portion thereof, is exercised, in a manner permitted by Section 10.1 and 10.2.

 

6.3  Notification Regarding Disposition.

 

The Holder shall give the Company prompt written or electronic notice of any disposition of shares of Common Stock acquired by exercise of an Incentive Stock Option which occurs within (a) two years from the date of granting (including the date the Option is modified, extended or renewed for purposes of Section 424(h) of the Code) such Option to such Holder, or (b) one year after the transfer of such shares to such Holder.

 

Article 7.
AWARD OF RESTRICTED STOCK

 

7.1  Award of Restricted Stock.

 

(a)    The Administrator is authorized to grant Restricted Stock to Eligible Individuals, and shall determine the terms and conditions, including the restrictions applicable to each award of Restricted Stock, which terms and conditions shall not be inconsistent with the Plan, and may impose such conditions on the issuance of such Restricted Stock as it deems appropriate.

 

(b)    The Administrator shall establish the purchase price, if any, and form of payment for Restricted Stock; providedhowever, that if a purchase price is charged, such purchase price shall be no less than the par value of the Shares to be purchased, unless otherwise permitted by applicable state law. In all cases, legal consideration shall be required for each issuance of Restricted Stock.

 

7.2  Rights as Stockholders.

 

Subject to Section 7.4, upon issuance of Restricted Stock, the Holder shall have, unless otherwise provided by the Administrator, all the rights of a stockholder with respect to said shares, subject to the restrictions in the applicable Program or in each individual Award Agreement, including the right to receive all dividends and other distributions paid or made with respect to the shares; providedhowever, that, in the sole discretion of the Administrator, any extraordinary distributions with respect to the Shares shall be subject to the restrictions set forth in Section 7.3.

 

7.3  Restrictions.

 

All shares of Restricted Stock (including any shares received by Holders thereof with respect to shares of Restricted Stock as a result of stock dividends, stock splits or any other form of recapitalization) shall, in the terms of the applicable Program or in each individual Award Agreement, be subject to such restrictions and vesting requirements as the Administrator shall provide. Such restrictions may include, without limitation, restrictions concerning voting rights and transferability and such restrictions may lapse separately or in combination at such times and pursuant to such circumstances or based on such criteria as selected by the Administrator, including, without limitation, criteria based on the Holder’s duration of employment, directorship or consultancy with the Company or Affiliate, the Performance Criteria, Company performance, individual performance or other criteria selected by the Administrator. By action taken after the Restricted Stock is issued, the Administrator may, on such terms and conditions as it may determine to be appropriate, accelerate the vesting of such Restricted Stock by removing any or all of the restrictions imposed by the terms of the Program or the Award Agreement in the event of a Change in Control or the applicable Holder’s Retirement, death or disability. Restricted Stock may not be sold or encumbered until all restrictions are terminated or expire. Except as otherwise provided by any written agreement between the Company and any applicable Holder, a Holder’s rights in unvested Restricted Stock shall lapse, and such Restricted Stock shall be surrendered to the Company without consideration, upon the Holder’s Termination of Services with the Company.

 

7.4  Repurchase or Forfeiture of Restricted Stock.

 

If no price was paid by the Holder for the Restricted Stock, upon a Termination of Service the Holder’s rights in unvested Restricted Stock then subject to restrictions shall lapse, and such Restricted Stock shall be surrendered to the Company and cancelled without consideration. If a price was paid by the Holder for the Restricted Stock, upon a Termination of Service the Company shall have the right to repurchase from the Holder the unvested Restricted Stock then subject to restrictions at a cash price per share equal to the price paid by the Holder for such Restricted Stock or such other amount as may be specified in the Program or the Award Agreement. The Administrator in its sole discretion may provide that in the event of certain events, including a Change in Control, the Holder’s death, Retirement or disability or any other specified Termination of Service or any other event, the Holder’s rights in unvested Restricted Stock shall not lapse, such Restricted Stock shall vest and, if applicable, the Company shall not have a right of repurchase.

 

7.5  Certificates for Restricted Stock.

 

Restricted Stock granted pursuant to the Plan may be evidenced in such manner as the Administrator shall determine. Certificates or book entries evidencing shares of Restricted Stock must include an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock, and the Company may, in its sole discretion, retain physical possession of any stock certificate until such time as all applicable restrictions lapse.

 

7.6  Section 83(b) Election.

 

If a Holder makes an election under Section 83(b) of the Code to be taxed with respect to the Restricted Stock as of the date of transfer of the Restricted Stock rather than as of the date or dates upon which the Holder would otherwise be taxable under Section 83(a) of the Code, the Holder shall be required to deliver a copy of such election to the Company promptly after filing such election with the Internal Revenue Service.

 

Article 8.
AWARD OF PERFORMANCE AWARDS, DIVIDEND EQUIVALENTS, DEFERRED STOCK, STOCK PAYMENTS, RESTRICTED STOCK UNITS, LTIP UNITS

 

8.1  Performance Awards.

 

(a)    The Administrator is authorized to grant Performance Awards to any Eligible Individual. The value of Performance Awards may be linked to any one or more of the Performance Criteria or other specific criteria determined by the Administrator, in each case on a specified date or dates or over any period or periods determined by the Administrator. Performance Awards may cover or be paid in cash, Shares (including shares of Restricted Stock), LTIP Units, or a combination of cash and either Shares (including shares of Restricted Stock) or LTIP Units, as determined by the Administrator.

 

(b)    Without limiting Section 8.1(a), the Administrator may grant Performance Awards to any Eligible Individual in the form of a cash bonus payable upon the attainment of objective Performance Goals, or such other criteria, whether or not objective, which are established by the Administrator, in each case on a specified date or dates or over any period or periods determined by the Administrator.

 

(c)    The Administrator is authorized to grant Performance Share Awards or Performance LTIP Units to any Eligible Individual. The number and terms and conditions of Performance Shares and Performance LTIP Units shall be determined by the Administrator. The Administrator shall specify the date or dates on which the Performance Shares and Performance LTIP Units shall become vested and shall determine to what extent such Performance Shares and Performance LTIP Units have vested, based upon such conditions to vesting as it deems appropriate, including conditions based on one or more Performance Criteria or other specific criteria, including total stockholder return of the Company relative to the range of total return to stockholders of the constituent companies in a specific peer group of the Company, in each case on a specified date or dates or over any period or periods, as determined by the Administrator. The Performance Shares shall be payable in shares of Common Stock and/or Restricted Stock, and the Performance LTIP Units shall cover LTIP Units. To the extent Performance Shares are payable in shares of Restricted Stock, the Administrator shall, subject to the terms and provisions with respect to Restricted Stock set forth in Article 7, specify the conditions and dates upon which the shares of Restricted Stock underlying the Performance Shares shall be issued and the conditions and dates upon which such shares of Restricted Stock shall become vested and nonforfeitable, which dates shall not be earlier than the date as of which the Performance Shares vest. To the extent Performance Awards cover Performance LTIP Units, the Administrator shall, subject to the terms and provisions of the Operating Agreement, specify the conditions and dates upon which such Performance LTIP Units shall become vested and nonforfeitable.

 

8.2  Dividend Equivalents.

 

(a)    Dividend Equivalents may be granted by the Administrator based on dividends declared on the Common Stock, to be credited as of dividend payment dates during the period between the date an Award is granted to a Holder and the date such Award vests, is exercised, is distributed or expires, as determined by the Administrator. Such Dividend Equivalents shall be converted to cash or additional shares of Common Stock by such formula and at such time and subject to such limitations as may be determined by the Administrator. In addition, Dividend Equivalents with respect to an Award with performance-based vesting that are based on dividends paid prior to the vesting of such Award shall only be paid out to the Holder to the extent that the performance-based vesting conditions are subsequently satisfied and the Award vests.

 

(b)    Notwithstanding the foregoing, no Dividend Equivalents shall be payable with respect to Options or Stock Appreciation Rights.

 

8.3  Stock Payments.

 

The Administrator is authorized to make Stock Payments to any Eligible Individual. The number or value of shares of any Stock Payment shall be determined by the Administrator and may be based upon one or more Performance Criteria or any other specific criteria, including service to the Company or any Affiliate, determined by the Administrator. Unless otherwise provided by the Administrator, shares underlying a Stock Payment which is subject to a vesting schedule or other conditions or criteria set by the Administrator will not be issued until those conditions have been satisfied. Unless otherwise provided by the Administrator, a Holder of a Stock Payment shall have no rights as a Company stockholder with respect to such Stock Payment until such time as the Stock Payment has vested and the Shares underlying the Award have been issued to the Holder. Stock Payments may, but are not required to, be made in lieu of base salary, bonus, fees or other cash compensation otherwise payable to such Eligible Individual, pursuant to such policies and procedures as may be established by the Administrator.

 

8.4  Deferred Stock.

 

The Administrator is authorized to grant Deferred Stock to any Eligible Individual. The number of shares of Deferred Stock shall be determined by the Administrator and may be based upon one or more Performance Criteria or any other specific criteria, including service to the Company or any Affiliate, as the Administrator determines, in each case on a specified date or dates or over any period or periods determined by the Administrator. Unless otherwise provided by the Administrator, shares underlying a Deferred Stock award which is subject to a vesting schedule or other conditions or criteria set by the Administrator will not be issued until those conditions have been satisfied. Unless otherwise provided by the Administrator, a Holder of Deferred Stock shall have no rights as a Company stockholder with respect to such Deferred Stock until such time as the Award has vested and the Shares underlying the Award have been issued to the Holder. Awards of Deferred Stock may, but are not required to, be made in lieu of base salary, bonus, fees or other cash compensation otherwise payable to such Eligible Individual, pursuant to such policies and procedures as may be established by the Administrator.

 

8.5  Restricted Stock Units.

 

The Administrator is authorized to grant Restricted Stock Units to any Eligible Individual. The number and terms and conditions of Restricted Stock Units shall be determined by the Administrator. The Administrator shall specify the date or dates on which the Restricted Stock Units shall become fully vested and nonforfeitable, and may specify such conditions to vesting as it deems appropriate, including conditions based on one or more Performance Criteria or other specific criteria, including service to the Company or any Affiliate, in each case on a specified date or dates or over any period or periods, as determined by the Administrator. The Administrator shall specify, or permit the Holder to elect, the conditions and dates upon which the Shares underlying the Restricted Stock Units which shall be issued, which dates shall not be earlier than the date as of which the Restricted Stock Units vest and become nonforfeitable and which conditions and dates shall be subject to compliance with Section 409A of the Code. Restricted Stock Units may be paid in cash, Shares, or both, as determined by the Administrator. On the distribution dates, the Company shall issue to the Holder one unrestricted, fully transferable Share (or the Fair Market Value of one such Share in cash) for each vested and nonforfeitable Restricted Stock Unit.

 

8.6  LTIP Units.

 

The Administrator is authorized to grant LTIP Units in such amount and subject to such terms and conditions as may be determined by the Administrator; provided, however, that LTIP Units may only be issued to a Participant for the performance of services to or for the benefit of the Partnership (a) in the Participant’s capacity as a partner of the Partnership, (b) in anticipation of the Participant becoming a partner of the Partnership, or (c) as otherwise determined by the Administrator, provided that the LTIP Units are intended to constitute “profits interests” within the meaning of the Code, including, to the extent applicable, Revenue Procedure 93-27, 1993-2 C.B. 343 and Revenue Procedure 2001-43, 2001-2 C.B. 191. The Administrator shall specify the conditions and dates upon which the LTIP Units shall vest and become nonforfeitable. LTIP Units shall be subject to the terms and conditions of the Operating Agreement and such other restrictions, including restrictions on transferability, as the Administrator may impose. These restrictions may lapse separately or in combination at such times, pursuant to such circumstances, in such installments, or otherwise, as the Administrator determines at the time of the grant of the Award or thereafter.

 

8.7  Term.

 

To the extent applicable, the term of an Award described in this Article 8 shall be set by the Administrator in its sole discretion.

 

8.8  Exercise or Purchase Price.

 

The Administrator may establish the exercise or purchase price of an Award described in this Article 8; providedhowever, that value of the consideration shall not be less than the par value of a Share, unless otherwise permitted by applicable law.

 

8.9  Exercise upon Termination of Service.

 

An Award described in this Article 8 is exercisable or distributable only while the Holder is an Employee, Director or Consultant, as applicable. The Administrator, however, in its sole discretion may provide that an Award described in this Article 8 may be exercised or distributed subsequent to a Termination of Service in certain events, including a Change in Control, the Holder’s death, Retirement or disability or any other specified Termination of Service.

 

Article 9.

AWARD OF STOCK APPRECIATION RIGHTS

 

9.1  Grant of Stock Appreciation Rights.

 

(a)    The Administrator is authorized to grant Stock Appreciation Rights to Eligible Individuals from time to time, in its sole discretion, on such terms and conditions as it may determine consistent with the Plan.

 

(b)    A Stock Appreciation Right shall entitle the Holder (or other person entitled to exercise the Stock Appreciation Right pursuant to the Plan) to exercise all or a specified portion of the Stock Appreciation Right (to the extent then exercisable pursuant to its terms) and to receive from the Company an amount determined by multiplying the difference obtained by subtracting the exercise price per share of the Stock Appreciation Right from the Fair Market Value on the date of exercise of the Stock Appreciation Right by the number of Shares with respect to which the Stock Appreciation Right shall have been exercised, subject to any limitations the Administrator may impose. Except as described in (c) below, the exercise price per Share subject to each Stock Appreciation Right shall be set by the Administrator, but shall not be less than 100% of the Fair Market Value on the date the Stock Appreciation Right is granted.

 

(c)    Notwithstanding the foregoing provisions of Section 9.1(b) to the contrary, in the case of a Stock Appreciation Right that is a Substitute Award, the price per share of the shares subject to such Stock Appreciation Right may be less than 100% of the Fair Market Value per share on the date of grant; provided, that the excess of (a) the aggregate Fair Market Value (as of the date such Substitute Award is granted) of the shares subject to the Substitute Award, over (b) the aggregate exercise price thereof does not exceed the excess of (x) the aggregate fair market value (as of the time immediately preceding the transaction giving rise to the Substitute Award, such fair market value to be determined by the Administrator) of the shares of the predecessor entity that were subject to the grant assumed or substituted for by the Company, over (y) the aggregate exercise price of such shares.

 

9.2  Stock Appreciation Right Vesting.

 

(a)    The period during which the right to exercise, in whole or in part, a Stock Appreciation Right vests in the Holder shall be set by the Administrator and the Administrator may determine that a Stock Appreciation Right may not be exercised in whole or in part for a specified period after it is granted. Such vesting may be based on service with the Company or any Affiliate, or any other criteria selected by the Administrator. After grant of a Stock Appreciation Right, in connection with or following a Holder’s Termination of Service, the Administrator may, in its sole discretion and subject to whatever terms and conditions it selects, accelerate the period during which a Stock Appreciation Right vests.

 

(b)    No portion of a Stock Appreciation Right which is unexercisable at Termination of Service shall thereafter become exercisable, except as may be otherwise provided by the Administrator either in the applicable Program or Award Agreement or by action of the Administrator following the grant of the Stock Appreciation Right.

 

9.3  Manner of Exercise.

 

All or a portion of an exercisable Stock Appreciation Right shall be deemed exercised upon delivery of all of the following to the stock administrator of the Company, or such other person or entity designated by the Administrator, or his, her or its office, as applicable:

 

(a)    A written or electronic notice complying with the applicable rules established by the Administrator stating that the Stock Appreciation Right, or a portion thereof, is exercised. The notice shall be signed by the Holder or other person then entitled to exercise the Stock Appreciation Right or such portion of the Stock Appreciation Right;

 

(b)    Such representations and documents as the Administrator, in its sole discretion, deems necessary or advisable to effect compliance with all applicable provisions of the Securities Act and any other federal, state or foreign securities laws or regulations. The Administrator may, in its sole discretion, also take whatever additional actions it deems appropriate to effect such compliance; and

 

(c)    In the event that the Stock Appreciation Right shall be exercised pursuant to this Section 9.3 by any person or persons other than the Holder, appropriate proof of the right of such person or persons to exercise the Stock Appreciation Right.

 

9.4  Stock Appreciation Right Term.

 

The term of each Stock Appreciation Right shall be set by the Administrator in its sole discretion; providedhowever, that the term shall not be more than ten (10) years from the date the Stock Appreciation Right is granted. The Administrator shall determine the time period, including the time period following a Termination of Service, during which the Holder has the right to exercise the vested Stock Appreciation Rights, which time period may not extend beyond the expiration date of the Stock Appreciation Right term. Except as limited by the requirements of Section 409A of the Code and regulations and rulings thereunder, the Administrator may extend the term of any outstanding Stock Appreciation Right, and may extend the time period during which vested Stock Appreciation Rights may be exercised, in connection with any Termination of Service of the Holder, in each case, to the extent that such extension does not constitute a repricing or cash buyout under Section 10.6, and may amend any other term or condition of such Stock Appreciation Right relating to such a Termination of Service.

 

9.5  Payment.

 

Payment of the amounts payable with respect to Stock Appreciation Rights pursuant to this Article 9 shall be in cash, Shares (based on its Fair Market Value as of the date the Stock Appreciation Right is exercised), or a combination of both, as determined by the Administrator.

 

Article 10.
ADDITIONAL TERMS OF AWARDS

 

10.1     Payment.

 

. The Administrator shall determine the methods by which payments by any Holder with respect to any Awards granted under the Plan shall be made, including, without limitation, (a) cash or check, (b) Shares (including, in the case of payment of the exercise price of an Award, Shares issuable pursuant to the exercise of the Award) or Shares held for such period of time as may be required by the Administrator in order to avoid adverse accounting consequences, in each case, having a Fair Market Value on the date of delivery equal to the aggregate payments required, (c) delivery of a written or electronic notice that the Holder has placed a market sell order with a broker with respect to Shares then issuable upon exercise or vesting of an Award, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the aggregate payments required; provided, that payment of such proceeds is then made to the Company upon settlement of such sale, or (d) other form of legal consideration acceptable to the Administrator. The Administrator shall also determine the methods by which Shares shall be delivered or deemed to be delivered to Holders. Notwithstanding any other provision of the Plan to the contrary, no Holder who is a Director or an “executive officer” of the Company within the meaning of Section 13(k) of the Exchange Act shall be permitted to make payment with respect to any Awards granted under the Plan, or continue any extension of credit with respect to such payment with a loan from the Company or a loan arranged by the Company in violation of Section 13(k) of the Exchange Act.

 

10.2  Tax Withholding.

 

The Company or any Affiliate shall have the authority and the right to deduct or withhold, or require a Holder to remit to the Company or any Affiliate, an amount sufficient to satisfy federal, state, local and foreign taxes (including the Holder’s FICA or employment tax obligation) required by law to be withheld with respect to any taxable event concerning a Holder arising as a result of the Plan. The Administrator may in its sole discretion and in satisfaction of the foregoing requirement allow a Holder to elect to have the Company or Affiliate withhold Shares otherwise issuable under an Award (or allow the surrender of Shares). The number of Shares which may be so withheld or surrendered shall be limited to the number of shares which have a fair market value on the date of withholding or repurchase equal to the aggregate amount of such liabilities based on the maximum statutory withholding rates (or such lower rate as may be determined by the Company or, with respect to any person who is subject to the reporting requirements of Section 16(a) of the Exchange Act, the Committee, after considering any accounting consequences or costs) for federal, state, local and foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income. The Administrator shall determine the fair market value of the Shares, consistent with applicable provisions of the Code, for tax withholding obligations due in connection with a broker-assisted cashless Option or Stock Appreciation Right exercise involving the sale of shares to pay the Option or Stock Appreciation Right exercise price or any tax withholding obligation.

 

10.3  Transferability of Awards.

 

(a)    Except as otherwise provided in Section 10.3(b):

 

(i)    No Award under the Plan may be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution or, subject to the consent of the Administrator, pursuant to a DRO, unless and until such Award has been exercised, or the shares underlying such Award have been issued, and all restrictions applicable to such shares have lapsed;

 

(ii)    No Award or interest or right therein shall be liable for the debts, contracts or engagements of the Holder or the Holder’s successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, hypothecation, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence; and

 

(iii)    During the lifetime of the Holder, only the Holder may exercise an Award (or any portion thereof) granted to the Holder under the Plan, unless it has been disposed of pursuant to a DRO; after the death of the Holder, any exercisable portion of an Award may, prior to the time when such portion becomes unexercisable under the Plan or the applicable Program or Award Agreement, be exercised by the Holder’s personal representative or by any person empowered to do so under the deceased Holder’s will or under the then applicable laws of descent and distribution.

 

(b)    Notwithstanding Section 10.3(a), the Administrator, in its sole discretion, may determine to permit a Holder to transfer an Award other than an Incentive Stock Option to any one or more Permitted Transferees, subject to the following terms and conditions:

 

(i)    An Award transferred to a Permitted Transferee shall not be assignable or transferable by the Permitted Transferee other than by will or the laws of descent and distribution;

 

(ii)    An Award transferred to a Permitted Transferee shall continue to be subject to all the terms and conditions of the Award as applicable to the original Holder (other than the ability to further transfer the Award); and

 

(iii)    The Holder and the Permitted Transferee shall execute any and all documents requested by the Administrator, including, without limitation documents to (A) confirm the status of the transferee as a Permitted Transferee, (B) satisfy any requirements for an exemption for the transfer under applicable federal, state and foreign securities laws and (C) evidence the transfer.

 

(c)    Notwithstanding Section 10.3(a), a Holder may, in the manner determined by the Administrator, designate a beneficiary to exercise the rights of the Holder and to receive any distribution with respect to any Award upon the Holder’s death. A beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject to all terms and conditions of the Plan and any Program or Award Agreement applicable to the Holder, except to the extent the Plan, the Program and the Award Agreement otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Administrator. If the Holder is married and resides in a community property state, a designation of a person other than the Holder’s spouse as his or her beneficiary with respect to more than 50% of the Holder’s interest in the Award shall not be effective without the prior written or electronic consent of the Holder’s spouse. If no beneficiary has been designated or survives the Holder, payment shall be made to the person entitled thereto pursuant to the Holder’s will or the laws of descent and distribution. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Holder at any time; provided, that such change or revocation is filed with the Administrator prior to the Holder’s death.

 

10.4  Conditions to Issuance of Shares.

 

(a)    Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates or make any book entries evidencing Shares pursuant to the exercise of any Award, unless and until the Board or the Committee has determined, with advice of counsel, that the issuance of such shares is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the Shares are listed or traded, and the Shares are covered by an effective registration statement or applicable exemption from registration. In addition to the terms and conditions provided herein, the Board or the Committee may require that a Holder make such reasonable covenants, agreements, and representations as the Board or the Committee, in its discretion, deems advisable in order to comply with any such laws, regulations, or requirements.

 

(b)    All Share certificates delivered pursuant to the Plan and all shares issued pursuant to book entry procedures are subject to any stop-transfer orders and other restrictions as the Administrator deems necessary or advisable to comply with federal, state, or foreign securities or other laws, rules and regulations and the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted, or traded. The Administrator may place legends on any Share certificate or book entry to reference restrictions applicable to the Shares.

 

(c)    The Administrator shall have the right to require any Holder to comply with any timing or other restrictions with respect to the settlement, distribution or exercise of any Award, including a window-period limitation, as may be imposed in the sole discretion of the Administrator.

 

(d)    Fractional Shares may be issued, provided that the Administrator may determine, in its sole discretion, whether cash shall be given in lieu of fractional shares or whether such fractional shares shall be eliminated by rounding down.

 

(e)    Notwithstanding any other provision of the Plan, unless otherwise determined by the Administrator or required by any applicable law, rule or regulation, the Company shall not deliver to any Holder certificates evidencing Shares issued in connection with any Award and instead such Shares shall be recorded in the books of the Company (or, as applicable, its transfer agent or stock plan administrator).

 

10.5  Forfeiture Provisions.

 

Pursuant to its general authority to determine the terms and conditions applicable to Awards under the Plan, the Administrator shall have the right to provide, in the terms of Awards made under the Plan, or to require a Holder to agree by separate written or electronic instrument, that (a) (i) any proceeds, gains or other economic benefit actually or constructively received by the Holder upon any receipt or exercise of the Award, or upon the receipt or resale of any Shares underlying the Award, must be paid to the Company, and (ii) the Award shall terminate and any unexercised portion of the Award (whether or not vested) shall be forfeited, if (b) (i) a Termination of Service occurs prior to a specified date, or within a specified time period following receipt or exercise of the Award, or (ii) the Holder at any time, or during a specified time period, engages in any activity in competition with the Company or any Affiliate, or which is inimical, contrary or harmful to the interests of the Company or any Affiliate, as further defined by the Administrator or (iii) the Holder incurs a Termination of Service for “cause” (as such term is defined in the sole discretion of the Administrator, or as set forth in a written agreement relating to such Award between the Company and the Holder).

 

10.6  Prohibition on Repricing.

 

Subject to Section 12.2, the Administrator shall not, without the approval of the stockholders of the Company, (a) authorize the amendment of any outstanding Option or Stock Appreciation Right to reduce its price per share, or (b) cancel any Option or Stock Appreciation Right in exchange for cash or another Award when the Option or Stock Appreciation Right price per share exceeds the Fair Market Value of the underlying Shares. Subject to Section 12.2, the Administrator shall have the authority, without the approval of the stockholders of the Company, to amend any outstanding award to increase the price per share or to cancel and replace an Award with the grant of an Award having a price per share that is greater than or equal to the price per share of the original Award.

 

10.7  Award Vesting Limitations.

 

Awards (including Options and Full Value Awards) made to Eligible Individuals shall become vested over a period of not less than three years (which shall be measured from the commencement of the applicable performance period), and no portion of any Award shall become vested prior to the first anniversary of the date of grant; providedhowever, that, notwithstanding the foregoing, (a) the Administrator may lapse or waive such vesting restrictions upon the Holder’s death, disability, Retirement, or Termination of Service without “cause” (as such term is defined in the sole discretion of the Administrator, or as set forth in a written agreement relating to such Award between the Company and the Holder) and (b) Awards (including Options and Full Value Awards) that result in the issuance of an aggregate of up to 5% of the shares of Stock available pursuant to Section 3.1(a) may be granted to any one or more Holders without respect to such minimum vesting provisions.

 

Article 11.
ADMINISTRATION

 

11.1  Administrator.

 

The Compensation Committee (or another committee or a subcommittee of the Board assuming the functions of the Committee under the Plan) shall administer the Plan (except as otherwise permitted herein) and, unless otherwise determined by the Board, shall consist solely of two or more Non-Employee Directors appointed by and holding office at the pleasure of the Board, each of whom is intended to qualify as both a “non-employee director” as defined by Rule 16b-3 of the Exchange Act or any successor rule and an “independent director” under the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded; provided, that any action taken by the Committee shall be valid and effective, whether or not members of the Committee at the time of such action are later determined not to have satisfied the requirements for membership set forth in this Section 11.1 or otherwise provided in any charter of the Committee. Except as may otherwise be provided in any charter of the Committee, appointment of Committee members shall be effective upon acceptance of appointment. Committee members may resign at any time by delivering written or electronic notice to the Board. Vacancies in the Committee may only be filled by the Board. Notwithstanding the foregoing, (a) the full Board, acting by a majority of its members in office, shall conduct the general administration of the Plan with respect to Awards granted to Non-Employee Directors and (b) the Board or Committee may delegate its authority hereunder to the extent permitted by Section 11.6.

 

11.2  Duties and Powers of Committee.

 

It shall be the duty of the Committee to conduct the general administration of the Plan in accordance with its provisions. The Committee shall have the power to interpret the Plan, the Program and the Award Agreement, and to adopt such rules for the administration, interpretation and application of the Plan as are not inconsistent therewith, to interpret, amend or revoke any such rules and to amend any Program or Award Agreement; provided, that the rights or obligations of the Holder of the Award that is the subject of any such Program or Award Agreement are not affected adversely by such amendment, unless the consent of the Holder is obtained or such amendment is otherwise permitted under Section 12.10. Any such grant or award under the Plan need not be the same with respect to each Holder. Any such interpretations and rules with respect to Incentive Stock Options shall be consistent with the provisions of Section 422 of the Code. In its sole discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan except with respect to matters which under Rule 16b-3 under the Exchange Act or any successor rule, or any regulations or rules issued thereunder, or the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded are required to be determined in the sole discretion of the Committee.

 

11.3  Action by the Committee.

 

Unless otherwise established by the Board or in any charter of the Committee, a majority of the Committee shall constitute a quorum and the acts of a majority of the members present at any meeting at which a quorum is present, and acts approved in writing by all members of the Committee in lieu of a meeting, shall be deemed the acts of the Committee. Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any officer or other employee of the Company or any Affiliate, the Company’s independent certified public accountants, or any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan.

 

11.4  Authority of Administrator.

 

Subject to any specific designation in the Plan, the Administrator has the exclusive power, authority and sole discretion to:

 

(a)    Designate Eligible Individuals to receive Awards;

 

(b)    Determine the type or types of Awards to be granted to each Eligible Individual;

 

(c)    Determine the number of Awards to be granted and the number of Shares to which an Award will relate;

 

(d)    Determine the terms and conditions of any Award granted pursuant to the Plan, including, but not limited to, the exercise price, grant price, or purchase price, any performance criteria, any restrictions or limitations on the Award, any schedule for vesting, lapse of forfeiture restrictions or restrictions on the exercisability of an Award, and accelerations or waivers thereof, and any provisions related to non-competition and recapture of gain on an Award, based in each case on such considerations as the Administrator in its sole discretion determines;

 

(e)    Determine whether, to what extent, and pursuant to what circumstances an Award may be settled in, or the exercise price of an Award may be paid in cash, Shares, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered;

 

(f)    Prescribe the form of each Award Agreement, which need not be identical for each Holder;

 

(g)    Determine as between the Company, the Partnership and any other Subsidiary which entity will make payments with respect to an Award, consistent with applicable securities laws and other Applicable Law;

 

(h)    Decide all other matters that must be determined in connection with an Award;

 

(i)    Establish, adopt, or revise any rules and regulations as it may deem necessary or advisable to administer the Plan;

 

(j)    Interpret the terms of, and any matter arising pursuant to, the Plan, any Program or any Award Agreement; and

 

(k)    Make all other decisions and determinations that may be required pursuant to the Plan or as the Administrator deems necessary or advisable to administer the Plan.

 

11.5  Decisions Binding.

 

The Administrator’s interpretation of the Plan, any Awards granted pursuant to the Plan, any Program, any Award Agreement and all decisions and determinations by the Administrator with respect to the Plan are final, binding, and conclusive on all parties.

 

11.6  Delegation of Authority.

 

To the extent permitted by applicable law or the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded, the Board or Committee may from time to time delegate to a committee of one or more members of the Board or one or more officers of the Company or any of its Affiliates the authority to grant or amend Awards or to take other administrative actions pursuant to Article 11; providedhowever, that in no event shall an officer of the Company (or an Affiliate) be delegated the authority to grant awards to, or amend awards held by, (a) individuals who are subject to Section 16 of the Exchange Act, or (b) officers of the Company or any of its Affiliates (or Directors) to whom authority to grant or amend Awards has been delegated hereunder; provided further, that any delegation of administrative authority shall only be permitted to the extent it is permissible under applicable securities laws or the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded. Any delegation hereunder shall be subject to the restrictions and limits that the Board or Committee specifies at the time of such delegation, and the Board may at any time rescind the authority so delegated or appoint a new delegatee. At all times, the delegatee appointed under this Section 11.6 shall serve in such capacity at the pleasure of the Board and the Committee.

 

Article 12.
MISCELLANEOUS PROVISIONS

 

12.1  Term; Amendment, Suspension or Termination of the Plan.

 

(a)    The Plan shall become effective as of the Effective Date.

 

(b)    Except as otherwise provided in this Section 12.1, the Plan may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Board or the Committee. However, without approval of the Company’s stockholders given within twelve (12) months before or after the action by the Administrator, no action of the Administrator may, except as provided in Section 12.2, (i) increase the limits imposed in Section 3.1 on the maximum number of shares which may be issued under the Plan, or (ii) reduce the price per share of any outstanding Option or Stock Appreciation Right granted under the Plan, or (iii) cancel any Option or Stock Appreciation Right in exchange for cash or another Award when the Option or Stock Appreciation Right price per share exceeds the Fair Market Value of the underlying Shares. Except as provided in Section 12.10, no amendment, suspension or termination of the Plan shall, without the consent of the Holder, impair any rights or obligations under any Award theretofore granted or awarded, unless the Award itself otherwise expressly so provides. No Awards may be granted or awarded during any period of suspension or after termination of the Plan, and in no event may any Award be granted under the Plan after the tenth (10th) anniversary of April 28, 2020.

 

12.2  Changes in Common Stock or Assets of the Company, Acquisition or Liquidation of the Company and Other Corporate Events.

 

(a)    In the event of any stock dividend, stock split, combination or exchange of shares, consummation of a merger, consolidation or other distribution (other than normal cash dividends) of Company assets to stockholders, or any other change affecting the Common Stock or other securities of the Company or the share price of the Common Stock or other securities of the Company other than an Equity Restructuring, the Administrator shall make equitable adjustments, if any, to reflect such change with respect to (i) the aggregate number and kind of shares that may be issued under the Plan (including, but not limited to, adjustments of the limitations in Section 3.1 on the maximum number and kind of shares which may be issued under the Plan, and adjustments of the Award Limit, and adjustments of the manner in which shares subject to Full Value Awards will be counted); (ii) the number and kind of shares of Common Stock (or other securities or property) subject to outstanding Awards; (iii) the terms and conditions of any outstanding Awards (including, without limitation, any applicable performance targets or criteria with respect thereto); and (iv) the grant or exercise price per share for any outstanding Awards under the Plan.

 

(b)    In the event of any transaction or event described in Section 12.2(a) or any unusual or nonrecurring transactions or events affecting the Company, any Affiliate of the Company, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations or accounting principles, the Administrator, in its sole discretion, and on such terms and conditions as it deems appropriate, either by the terms of the Award or by action taken prior to the occurrence of such transaction or event and either automatically or upon the Holder’s request, is hereby authorized to take any one or more of the following actions whenever the Administrator determines that such action is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect to any Award under the Plan, to facilitate such transactions or events or to give effect to such changes in laws, regulations or principles:

 

(i)    To provide for either (A) termination of any such Award in exchange for an amount of cash, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Holder’s rights (and, for the avoidance of doubt, if as of the date of the occurrence of the transaction or event described in this Section 12.2 the Administrator determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Holder’s rights, then such Award may be terminated by the Company without payment) or (B) the replacement of such Award with other rights or property selected by the Administrator in its sole discretion having an aggregate value not exceeding the amount that could have been attained upon the exercise of such Award or realization of the Holder’s rights had such Award been currently exercisable or payable or fully vested;

 

(ii)    To provide that such Award be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted for by similar options, rights or awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices;

 

(iii)    To make adjustments in the number and type of shares of the Company’s stock (or other securities or property) subject to outstanding Awards, and in the number and kind of outstanding Restricted Stock or Deferred Stock and/or in the terms and conditions of (including the grant or exercise price), and the criteria included in, outstanding Awards and Awards which may be granted in the future;

 

(iv)    To provide that such Award shall be exercisable or payable or fully vested with respect to all shares covered thereby, notwithstanding anything to the contrary in the Plan or the applicable Program or Award Agreement; and

 

(v)    To provide that the Award cannot vest, be exercised or become payable after such event.

 

(c)    In connection with the occurrence of any Equity Restructuring, and notwithstanding anything to the contrary in Sections 12.2(a) and 12.2(b):

 

(i)    The number and type of securities subject to each outstanding Award and the exercise price or grant price thereof, if applicable, shall be equitably adjusted; and/or

 

(ii)    The Administrator shall make such equitable adjustments, if any, as the Administrator in its discretion may deem appropriate to reflect such Equity Restructuring with respect to the aggregate number and kind of shares that may be issued under the Plan (including, but not limited to, adjustments of the limitations in Section 3.1 on the maximum number and kind of shares which may be issued under the Plan, and adjustments of the Award Limit, and adjustments of the manner in which shares subject to Full Value Awards will be counted). The adjustments provided under this Section 12.2(c) shall be nondiscretionary and shall be final and binding on the affected Holder and the Company.

 

(d)    In the event an Award is assumed or an equivalent Award substituted in connection with a Change in Control, and a Holder has a Termination of Service by the Company without “cause” (as such term is defined in the sole discretion of the Administrator, or as set forth in a written agreement relating to such Award between the Company (or an Affiliate) and the Holder) upon or within twelve (12) months following the Change in Control, then such Holder shall be fully vested in such assumed or substituted Award.

 

(e)    In the event that the successor corporation in a Change in Control refuses to assume or substitute for the Award, the Administrator shall cause any or all of such Awards to become fully exercisable immediately prior to the consummation of such transaction and all forfeiture restrictions on any or all of such Awards to lapse, provided that, to the extent that the vesting of any such Award is subject to the satisfaction of specified performance goals, such Award shall vest at either (as the Administrator may determine) (i) the target level of performance, pro-rated based on the period elapsed between the beginning of the applicable performance period and the date of the Change in Control, or (ii) the actual performance level as of the date of the Change in Control (as determined by the Administrator) with respect to all open performance period. If an Award is exercisable in lieu of assumption or substitution in the event of a Change in Control, the Administrator shall notify the Holder that the Award shall be fully exercisable for a period of fifteen (15) days from the date of such notice, contingent upon the occurrence of the Change in Control, and the Award shall terminate upon the expiration of such period. 

 

(f)    For purposes of this Section 12.2, an Award shall be considered assumed if, following the Change in Control, the Award confers the right to purchase or receive, for each share of Common Stock subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash, or other securities or property) received in the Change in Control by holders of Common Stock for each share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares); providedhowever, that if such consideration received in the Change in Control was not solely common stock of the successor corporation or its parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Award, for each share of Common Stock subject to an Award, to be solely common stock of the successor corporation or its parent equal in fair market value to the per share consideration received by holders of Common Stock in the Change in Control.

 

(g)    The Administrator may, in its sole discretion, include such further provisions and limitations in any Award, agreement or certificate, as it may deem equitable and in the best interests of the Company that are not inconsistent with the provisions of the Plan.

 

(h)    No adjustment or action described in this Section 12.2 or in any other provision of the Plan shall be authorized to the extent that such adjustment or action would cause the Plan or an Award to violate Section 422(b)(1) of the Code or other applicable law. Furthermore, no such adjustment or action shall be authorized to the extent such adjustment or action would result in short-swing profits liability under Section 16 or violate the exemptive conditions of Rule 16b-3 unless the Administrator determines that the Award is not to comply with such exemptive conditions.

 

(i)    The existence of the Plan, the Program, the Award Agreement and the Awards granted hereunder shall not affect or restrict in any way the right or power of the Company, its Affiliates or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s or such Affiliate’s capital structure or its business, any merger or consolidation of the Company or any Affiliate, any issue of stock or of options, warrants or rights to purchase stock or of bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the Common Stock or the rights thereof or which are convertible into or exchangeable for Common Stock, or the dissolution or liquidation of the Company or any Affiliate, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

 

(j)    In the event of any pending stock dividend, stock split, combination or exchange of shares, merger, consolidation or other distribution (other than normal cash dividends) of Company assets to stockholders, or any other change affecting the shares of Common Stock or the share price of the Common Stock including any Equity Restructuring, for reasons of administrative convenience, the Company in its sole discretion may refuse to permit the exercise of any Award during a period of thirty (30) days prior to the consummation of any such transaction.

 

12.3  Approval of Plan by Stockholders.

 

The Plan will be submitted for the approval of the Company’s stockholders within twelve (12) months after the date this Plan is approved by the Board.

 

12.4  No Stockholders Rights.

 

Except as otherwise provided herein, a Holder shall have none of the rights of a stockholder with respect to shares of Common Stock covered by any Award until the Holder becomes the record owner of such shares of Common Stock.

 

12.5  Paperless Administration.

 

In the event that the Company establishes, for itself or using the services of a third party, an automated system for the documentation, granting or exercise of Awards, such as a system using an internet website or interactive voice response, then the paperless documentation, granting or exercise of Awards by a Holder may be permitted through the use of such an automated system.

 

12.6  Effect of Plan upon Other Compensation Plans.

 

The adoption of the Plan shall not affect any other compensation or incentive plans in effect for the Company or any Affiliate. Nothing in the Plan shall be construed to limit the right of the Company or any Affiliate to (a) establish any other forms of incentives or compensation for Employees, Directors or Consultants of the Company or any Affiliate or (b) grant or assume options or other rights or awards otherwise than under the Plan in connection with any proper corporate purpose including without limitation, the grant or assumption of options in connection with the acquisition by purchase, lease, merger, consolidation or otherwise, of the business, stock or assets of any corporation, partnership, limited liability company, firm or association.

 

12.7  Compliance with Laws.

 

The Plan, the granting and vesting of Awards under the Plan and the issuance and delivery of Shares and LTIP Units and the payment of money under the Plan or under Awards granted or awarded hereunder are subject to compliance with all applicable federal, state, local and foreign laws, rules and regulations (including but not limited to state, federal and foreign securities law and margin requirements), the rules of any securities exchange or automated quotation system on which the Shares are listed, quoted or traded, and to such approvals by any listing, regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith. Any securities delivered under the Plan shall be subject to such restrictions, and the person acquiring such securities shall, if requested by the Company, provide such assurances and representations to the Company as the Company may deem necessary or desirable to assure compliance with all applicable legal requirements. To the extent permitted by applicable law, the Plan and Awards granted or awarded hereunder shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

12.8  Titles and Headings, References to Sections of the Code or Exchange Act.

 

The titles and headings of the Sections in the Plan are for convenience of reference only and, in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. References to sections of the Code or the Exchange Act shall include any amendment or successor thereto.

 

12.9  Governing Law.

 

The Plan and any agreements hereunder shall be administered, interpreted and enforced under the internal laws of the State of Maryland without regard to conflicts of laws thereof.

 

12.10  Section 409A.

 

To the extent that the Administrator determines that any Award granted under the Plan is subject to Section 409A of the Code, the Program pursuant to which such Award is granted and the Award Agreement evidencing such Award shall incorporate the terms and conditions required by Section 409A of the Code. To the extent applicable, the Plan, the Program and any Award Agreements shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder. Notwithstanding any provision of the Plan to the contrary, in the event that the Administrator determines that any Award may be subject to Section 409A of the Code and related Department of Treasury guidance, the Administrator may adopt such amendments to the Plan and the applicable Program and Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Administrator determines are necessary or appropriate to (a) exempt the Award from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance and thereby avoid the application of any penalty taxes under such Section.

 

12.11  No Rights to Awards.

 

No Eligible Individual or other person shall have any claim to be granted any Award pursuant to the Plan, and none of the Company, any Affiliate or the Administrator is obligated to treat Eligible Individuals, Holders or any other persons uniformly.

 

12.12  Unfunded Status of Awards.

 

The Plan is intended to be an “unfunded” plan for incentive compensation. With respect to any payments not yet made to a Holder pursuant to an Award, nothing contained in the Plan or any Program or Award Agreement shall give the Holder any rights that are greater than those of a general creditor of the Company or any Affiliate.

 

12.13  Indemnification.

 

To the extent allowable pursuant to applicable law, each member of the Committee or of the Board shall be indemnified and held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action or failure to act pursuant to the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment in such action, suit, or proceeding against him or her; provided, that he or she gives the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled pursuant to the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

 

12.14  Relationship to Other Benefits.

 

No payment pursuant to the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Affiliate except to the extent otherwise expressly provided in writing in such other plan or an agreement thereunder.

 

12.15  Expenses.

 

The expenses of administering the Plan shall be borne by the Company and its Subsidiaries.

 

12.16  Claw-Back Provisions.

 

All Awards (including any proceeds, gains or other economic benefit the Holder actually or constructively receives upon receipt or exercise of any Award or the receipt or resale of any shares of Common Stock underlying the Award) will be subject to any Company claw-back policy, including any claw-back policy adopted to comply with applicable laws (including the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations promulgated thereunder) as set forth in such claw-back policy or the Award Agreement. In addition, by accepting an Award under the Plan, Participant agrees that any other compensation Participant earns or receives from the Company of any of its Affiliates will also be subject to any such Company claw-back policy.

 

12.17  Grant of Awards to Certain Eligible Individuals. The Company may provide through the establishment of a formal written policy (which shall be deemed a part of this Plan) or otherwise for the method by which Common Stock or other securities of the Company may be issued and by which such Common Stock or other securities and/or payment therefor may be exchanged or contributed among such entities, or may be returned upon any forfeiture of Common Stock or other securities by the Eligible Individual.

 

12.18  REIT Status. The Plan shall be interpreted and construed in a manner consistent with the Company’s status as a REIT. No Award shall be granted or awarded, and with respect to any Award granted under the Plan, such Award shall not vest, be exercisable or be settled:

 

(a)         to the extent that the grant, vesting, exercise or settlement of such Award could cause the Participant or any other person to be in violation of any provision of Section 4(b) of the Company’s charter; or

 

(b)         if, in the discretion of the Administrator, the grant, vesting, exercise or settlement of such award could impair the Company’s status as a REIT.         

 

I hereby certify that the foregoing Plan was duly adopted by the Executive Compensation Committee of the Board of Directors of Kimco Realty Corporation on January 29, 2024.

 

Executed as of this 21 day of February, 2024.

 

KIMCO REALTY CORPORATION

 

By:         /s/ Leah Landro                          

Name:     Leah Landro

Title:       Executive Vice President,

 Chief Human Resources Officer

 

 

 

Exhibit 10.13

 

KIMCO REALTY CORPORATION

SECOND AMENDED AND RESTATED 2020 EQUITY PARTICIPATION PLAN

 

TIME-BASED LTIP UNIT AWARD GRANT NOTICE

 

Pursuant to the Second Amended and Restated 2020 Equity Participation Plan, as amended and/or restated from time to time (the “Plan”), of Kimco Realty Corporation, a Maryland corporation (the “Company”), Kimco Realty OP, LLC, a Delaware limited liability company (the “Partnership”), hereby grants to the holder listed below (“Participant”), a time-based LTIP Unit Award (the “Award”). This Award is subject to all of the terms and conditions set forth herein and in the Time-Based LTIP Unit Award Agreement attached hereto as Exhibit A (the “LTIP Unit Award Agreement”) and the Plan, each of which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the LTIP Unit Award Agreement.

 

Participant:

[____________]

Grant Date:

[____________]

Vesting Commencement Date:

[____________]

Total Number of LTIP Units Subject to the Award:

[____________]

Vesting Schedule:

[To be specified in individual award agreement].

 

Award Acceptance:         

 

The Participant may accept the Award and agree to be bound by the terms and conditions of the Plan, the LTIP Unit Award Agreement and this Grant Notice by electronically acknowledging and accepting the Award in the manner prescribed by the Company following the date of the Company’s electronic or other written notification to the Participant of the grant of the Award (the “Notification Date”).

 

In addition, the Participant will be deemed to have accepted the Award and agreed to be bound by the terms and conditions of the Plan, the LTIP Unit Award Agreement and this Grant Notice, unless the Participant informs the Company in writing within 30 days immediately following the Notification Date that the Participant wishes to reject the Award. Failure to notify the Company in writing of the Participants rejection of the Award during this 30-day period will result in the Participants acceptance of the Award and the Participants agreement to be bound by the terms and conditions of the Plan, the LTIP Unit Award Agreement and this Grant Notice.

 

The Participant will accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, this Grant Notice or the LTIP Unit Award Agreement. The Participant must file a Section 83(b) Election within 30 days of the Grant Date, as described in the LTIP Unit Award Agreement.

 

Kimco Realty Corporation:                                    Participant:

 

 

 

By: ________________________                                         ________________________

Name:                                                                         Name:

Title:

 

 

 

Kimco Realty OP, LLC:                                    

By: Kimco Realty Corporation, managing member

 

 

By: ________________________                                     

Name:                                    

Title:

 

 

 

EXHIBIT A

TO TIME-BASED LTIP UNIT AWARD GRANT NOTICE

 

KIMCO REALTY CORPORATION

TIME-BASED LTIP UNIT AWARD AGREEMENT

 

Pursuant to the Time-Based LTIP Unit Award Grant Notice (the “Grant Notice”) to which this Time-Based LTIP Unit Award Agreement (this “Agreement”) is attached, Participant is hereby granted an award (the “Award”) of LTIP Units in Kimco Realty OP, LLC, a Delaware limited liability company (the “Partnership”) under the Second Amended and Restated 2020 Equity Participation Plan of Kimco Realty Corporation (the “Company”), as amended and/or restated from time to time (the “Plan”).

 

WHEREAS, the Company and the Partnership wish to carry out the Plan, the terms of which are hereby incorporated by reference and made a part of this Agreement;

 

WHEREAS, Section 8.6 of the Plan permits the issuance of LTIP Units to Eligible Individuals for the performance of services to or for the benefit of the Partnership in the Eligible Individual’s capacity as a member of the Partnership; and

 

WHEREAS, the Administrator appointed to administer the Plan has determined that it would be to the advantage and in the best interest of the Company to issue the Award (as defined below) to the Participant as an inducement to enter into or remain in the service of the Company, the Partnership or any Subsidiary (together, “Kimco”), and as an additional incentive during such service, and has advised Kimco thereof.

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

Whenever the following terms are used in this Agreement, they shall have the meaning specified below unless the context clearly indicates to the contrary. All capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Plan and/or the Operating Agreement, as applicable.

 

Section 1.1 “Award” shall have the meaning set forth in the Preamble hereto.

 

Section 1.2 “Cause” shall mean (i) “Cause” as defined (A) in the Kimco Realty Corporation Executive Severance Plan (the “Severance Plan”) if the Participant is a participant in the Severance Plan or (B) if the Participant is not a participant in the Severance Plan, in the Participant’s applicable employment or severance agreement with Kimco if such an agreement exists and contains a definition of Cause, or (ii) if no such agreement exists or such agreement does not contain a definition of Cause and the Participant is not a participant in the Severance Plan, then Cause shall mean (A) conviction of a crime (including conviction on a nolo contendere plea) involving the commission by the Participant of a felony or of a criminal act involving, in the good faith judgment of the Company, fraud, dishonesty, or moral turpitude; (B) the Participant’s deliberate and continual refusal to perform employment duties reasonably requested by the Company or an Affiliate after thirty (30) days’ written notice by certified mail of such failure to perform, specifying that the failure constitutes cause (other than as a result of vacation, sickness, illness or injury); (C) prior to the occurrence of a Change in Control, the Participant’s continued unsatisfactory performance and/or behavior following issuance of progressive performance warnings and reasonable time to improve; (D) fraud or embezzlement by the Participant determined in accordance with the Company’s normal, internal investigative procedures consistently applied in comparable circumstances; (E) the Participant’s misconduct or negligence in connection with the business of the Company or an Affiliate which has a substantial adverse effect on the Company or the Affiliate; (F) a breach of fiduciary duty by the Participant to Kimco; or (G) the Participant’s violation of any of the Kimco policies prohibiting harassment or discrimination in the workplace. The determination of Cause shall be made by the Administrator in its sole discretion.

 

Section 1.3 “ Company” shall mean Kimco Realty Corporation, a Maryland corporation.

 

Section 1.4 “Disability” shall mean that the Participant suffers from a physical or mental condition which, in the reasonable judgment of a physician selected by the Company, prevents the Participant from performing the Participant’s usual and customary duties for Kimco, with or without reasonable accommodation, and is expected to result in death or can be expected to last for a continuous period of not less than twelve months. The Participant’s receipt of disability benefits for a period of not less than three months under Kimco’s long-term disability benefits plan or receipt of Social Security disability benefits shall be deemed conclusive evidence of Disability for purposes of this Agreement.

 

Section 1.5 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

Section 1.6 “Grant Date” shall mean the date of this Agreement as set forth in the Grant Notice.

 

Section 1.7 “Grant Notice” shall have the meaning set forth in the Preamble hereto.

 

Section 1.8 “Operating Agreement” shall mean the Limited Liability Company Agreement of the Partnership, as it may be amended from time to time.

 

Section 1.9  “Participant” shall have the meaning set forth in the Grant Notice.

 

Section 1.10 “Plan” shall have the meaning set forth in the Preamble hereto.

 

Section 1.11 “Restrictions” shall mean the exposure to forfeiture set forth in Article III hereof.

 

Section 1.12 “Secretary” shall mean the Secretary of the Company.

 

Section 1.13 “Subsidiary” shall mean any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities beginning with the Company if each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities or interests representing more than fifty percent (50%) of the total combined voting power of all classes of securities or interests in one of the other entities in such chain.

 

Section 1.14 “Vesting Commencement Date” shall mean the Vesting Commencement Date as set forth in the Grant Notice.

 

Section 1.15 “83(b) Election” shall have the meaning set forth in Section 4.5.

 

ARTICLE II.
LTIP UNIT AWARD

 

ARTICLE II.

 

Section 2.1    Award of LTIP Units. Pursuant to the Plan, in consideration of the Participant’s past and/or continued employment with or service to Kimco, and for other good and valuable consideration, the Partnership hereby (a) issues to the Participant an award of LTIP Units and (b) if not already a member, admits the Participant as a member of the Partnership on the terms and conditions set forth herein, in the Plan and in the Operating Agreement. The number of LTIP Units subject to the Award is set forth in the Grant Notice. The Partnership and the Participant acknowledge and agree that the LTIP Units are hereby issued to the Participant for the performance of services to or for the benefit of the Partnership in his or her capacity as a member or in anticipation of the Participant becoming a member. Upon receipt of the Award, the Participant shall, automatically and without further action on his or her part, be deemed to be a party to, signatory of and bound by the Operating Agreement. The Participant acknowledges that the Partnership may from time to time issue or cancel (or otherwise modify) LTIP Units in accordance with the terms of the Operating Agreement. The Award shall have the rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption and conversion set forth herein, in the Plan and in the Operating Agreement.

 

Section 2.2    Fractional Units. For purposes of this Agreement, any fractional LTIP Units that vest or become entitled to distributions pursuant to the Operating Agreement will be rounded down as determined by the Company or the Partnership. Furthermore, in no event shall the aggregate number of LTIP Units that vest or become entitled to such distributions exceed the total number of LTIP Units set forth in the Grant Notice.

 

Section 2.3    Award Subject to Plan. The Award granted hereunder is subject to the terms and provisions of the Plan, including without limitation, Article 12 thereof.

 

ARTICLE III.
RESTRICTIONS

 

ARTICLE III.

 

Section 3.1    LTIP Units Subject to Operating Agreement; Transfer Restrictions

 

(a)         The Award and the LTIP Units are subject to the terms of the Plan and the terms of the Operating Agreement, including, without limitation, the restrictions on transfer of Units (including, without limitation, LTIP Units) set forth therein. Any permitted transferee of the Award or LTIP Units shall take such Award or LTIP Units subject to the terms of the Plan, this Agreement, and the Operating Agreement. Any such permitted transferee must, upon the request of the Partnership, agree to be bound by the Plan, the Operating Agreement, and this Agreement, and shall execute the same on request, and must agree to such other waivers, limitations, and restrictions as the Partnership or the Company may reasonably require. Any Transfer of the Award or LTIP Units which is not made in compliance with the Plan, the Operating Agreement and this Agreement shall be null and void and of no effect.

 

(b)         Without the consent of the Administrator (which it may give or withhold in its sole discretion), the Participant shall not sell, pledge, assign, hypothecate, transfer, or otherwise dispose of (collectively, “Transfer”) any unvested LTIP Units or any portion of the Award attributable to such unvested LTIP Units (or any securities into which such unvested LTIP Units are converted or exchanged), other than by will or pursuant to the laws of descent and distribution (the “Transfer Restrictions”); provided, however, that the Transfer Restrictions shall not apply to any Transfer of unvested LTIP Units or of the Award to the Partnership or the Company.

 

Section 3.2    Vesting. Subject to Section 3.3 below, the Award shall vest and the Restrictions shall lapse and the LTIP Units will vest and become non-forfeitable in accordance with and subject to the time vesting schedule set forth on the Grant Notice, subject to the Participant’s continued status as an Eligible Individual through each applicable vesting date.

 

Section 3.3    Forfeiture.

 

(a)    Termination of Service. Subject to Section 3.3(b) below, any portion of the Award which is not vested upon the Participant’s Termination of Service shall thereupon be forfeited immediately and without any further action by the Company.

 

(b)    Qualifying Termination. Notwithstanding Sections 3.2 and 3.3(a): (a) the Award shall become fully vested in the event of a Termination of Service resulting from the Participant’s Disability or death [or, with the consent of the Administrator, the Participant’s Retirement]; and (b) the Award may become vested in accordance with Section 12.2 of the Plan, provided that “cause” shall have the meaning set forth in Article I of this Agreement. In connection with the foregoing, the Administrator may make such determinations and adopt such rules and conditions as it, in its sole discretion, deems appropriate in connection with such acceleration of vesting, including, but not limited to, provisions to ensure that any such acceleration of vesting shall be conditioned upon the consummation of any corporate transaction described in Section 12.2 of the Plan.

 

ARTICLE IV.
OTHER PROVISIONS

 

Section 4.1         Execution and Return of Documents and Certificates. At the Company’s or the Partnership’s request, the Participant hereby agrees to promptly execute, deliver and return to the Partnership any and all documents or certificates that the Company or the Partnership deems necessary or desirable to effectuate the cancellation and forfeiture of the unvested LTIP Units and the portion of the Award attributable to the unvested LTIP Units, or to effectuate the transfer or surrender of such unvested LTIP Units and portion of the Award to the Partnership.

 

Section 4.2         Covenants, Representations and Warranties. The Participant hereby represents, warrants, covenants, acknowledges and agrees on behalf of the Participant and his or her spouse, if applicable, that:

 

(a)         Investment. The Participant is holding the Award and the LTIP Units for the Participant’s own account, and not for the account of any other Person. The Participant is holding the Award and the LTIP Units for investment and not with a view to distribution or resale thereof except in compliance with applicable laws regulating securities.

 

(b)         Relation to the Partnership. The Participant is presently an executive officer and Employee of, or Consultant to, the Partnership, or is otherwise providing services to or for the benefit of the Partnership, and in such capacity has become personally familiar with the business of the Partnership.

 

(c)         Access to Information. The Participant has had the opportunity to ask questions of, and to receive answers from, the Partnership with respect to the terms and conditions of the transactions contemplated hereby and with respect to the business, affairs, financial conditions, and results of operations of the Partnership.

 

(d)         Registration. The Participant understands that the LTIP Units have not been registered under the Securities Act, and the LTIP Units cannot be transferred by the Participant unless such transfer is registered under the Securities Act or an exemption from such registration is available. The Partnership has made no agreements, covenants or undertakings whatsoever to register the transfer of the LTIP Units under the Securities Act. The Partnership has made no representations, warranties, or covenants whatsoever as to whether any exemption from the Securities Act, including, without limitation, any exemption for limited sales in routine brokers’ transactions pursuant to Rule 144 of the Securities Act, will be available. If an exemption under Rule 144 is available at all, it will not be available until at least six (6) months from issuance of the Award and then not unless the terms and conditions of Rule 144 have been satisfied.

 

(e)         Public Trading. None of the Partnership’s securities are presently publicly traded, and the Partnership has made no representations, covenants or agreements as to whether there will be a public market for any of its securities.

 

(f)         Tax Advice. The Partnership has made no warranties or representations to the Participant with respect to the income tax consequences of the transactions contemplated by this Agreement (including, without limitation, with respect to the decision of whether to make an election under Section 83(b) of the Code), and the Participant is in no manner relying on the Partnership or its representatives for an assessment of such tax consequences. The Participant is advised to consult with his or her own tax advisor with respect to such tax consequences and his or her ownership of the LTIP Units.

 

Section 4.3         Capital Account. The Participant shall make no contribution of capital to the Partnership in connection with the Award and, as a result, the Participant’s Capital Account (as defined in the Operating Agreement) balance in the Partnership immediately after its receipt of the LTIP Units shall be equal to zero, unless the Participant was a member in the Partnership prior to such issuance, in which case the Participant’s Capital Account balance shall not be increased as a result of the Partnership’s receipt of the LTIP Units.

 

Section 4.4         Conversion Rights. Notwithstanding any contrary terms in the Operating Agreement, Common Units that are acquired upon the conversion of the LTIP Units shall not, without the consent of the Partnership (which may be given or withheld in its sole discretion), be redeemed pursuant to Section 15.1 of the Operating Agreement within two (2) years of the date of the issuance of such LTIP Units.

 

Section 4.5         Section 83(b) Election. The Participant covenants that the Participant shall make a timely election under Section 83(b) of the Code (and any comparable election in the state of the Participant’s residence) with respect to the LTIP Units covered by the Award, and the Partnership hereby consents to the making of such election(s). In connection with such election, the Participant and the Participant’s spouse, if applicable, shall promptly provide a copy of such election to the Partnership. A form of election under Section 83(b) of the Code is attached hereto as Exhibit B. The Participant represents that the Participant is hereby advised to consult a tax advisor(s) that the Participant deems advisable in connection with the filing of an election under Section 83(b) of the Code and similar state tax provisions.

 

THE PARTICIPANT ACKNOWLEDGES THAT IT IS THE PARTICIPANT'S SOLE RESPONSIBILITY AND NOT THE COMPANY'S OR THE PARTNERSHIP'S OR ITS SUBSIDIARIES OR AFFILIATES OR THEIR RESPECTIVE REPRESENTATIVES RESPONSIBILITY TO TIMELY FILE THE ELECTION UNDER CODE SECTION 83(b), EVEN IF THE PARTICIPANT REQUESTS THAT THE COMPANY, THE PARTNERSHIP, ITS SUBSIDIARIES OR AFFILIATES OR THEIR RESPECTIVE REPRESENTATIVES TO MAKE THIS FILING ON PARTICIPANT'S BEHALF.

 

Section 4.6         Ownership Information. The Participant hereby covenants that so long as the Participant holds any LTIP Units, at the request of the Partnership, the Participant shall disclose to the Partnership in writing such information relating to the Participant’s ownership of the LTIP Units as the Partnership reasonably believes to be necessary or desirable to ascertain in order to comply with the Code or the requirements of any other appropriate taxing authority.

 

Section 4.7         Taxes. The Partnership and the Participant intend that (i) the LTIP Units be treated as “profits interests” as defined in Internal Revenue Service Revenue Procedure 93-27, as clarified by Revenue Procedure 2001-43, (ii) the issuance of such units not be a taxable event to the Partnership or the Participant as provided in such revenue procedure, and (iii) the Operating Agreement, the Plan and this Agreement be interpreted consistently with such intent. In furtherance of such intent, effective immediately prior to the issuance of the LTIP Units, the Partnership may revalue all Partnership assets to their respective gross fair market values, and make the resulting adjustments to the Capital Accounts of the partners, in each case as set forth in the Operating Agreement. The Company, the Partnership or any Subsidiary may withhold from the Participant’s wages, or require the Participant to pay to such entity, any applicable withholding or employment taxes resulting from the issuance of the Award hereunder, from the vesting or lapse of any restrictions imposed on the Award, or from the ownership or disposition of the LTIP Units.

 

Section 4.8         Remedies. The Participant shall be liable to the Partnership for all costs and damages, including incidental and consequential damages, resulting from a disposition of the Award or the LTIP Units which is in violation of the provisions of this Agreement. Without limiting the generality of the foregoing, the Participant agrees that the Partnership shall be entitled to obtain specific performance of the obligations of the Participant under this Agreement and immediate injunctive relief in the event any action or proceeding is brought in equity to enforce the same. The Participant will not urge as a defense that there is an adequate remedy at law.

 

Section 4.9         Restrictive Legends. Certificates evidencing the Award, to the extent such certificates are issued, may bear such restrictive legends as the Partnership and/or the Partnership’s counsel may deem necessary or advisable under applicable law or pursuant to this Agreement, including, without limitation, the following legends or any legends similar thereto:

 

“The securities represented hereby have not been registered under the Securities Act of 1933, as amended (the “Securities Act”). Any transfer of such securities will be invalid unless a Registration Statement under the Securities Act is in effect as to such transfer or in the opinion of counsel for Kimco Realty OP, LLC (the “Partnership”) such registration is unnecessary in order for such transfer to comply with the Securities Act.”

 

“The securities represented hereby are subject to forfeiture, transferability and other restrictions as set forth in (i) a written agreement with the Partnership, (ii) the Kimco Realty Corporation Second Amended and Restated 2020 Equity Participation Plan and (iii) the Limited Liability Company Agreement of the Partnership, in each case, as has been and as may in the future be amended (or amended and restated) from time to time, and such securities may not be sold or otherwise transferred except pursuant to the provisions of such documents.”

 

Section 4.10         Restrictions on Public Sale by the Participant. To the extent not inconsistent with applicable law, the Participant agrees not to effect any sale or distribution of the LTIP Units or any similar security of the Company or the Partnership, or any securities convertible into or exchangeable or exercisable for such securities, including a sale pursuant to Rule 144 under the Securities Act, during the fourteen (14) days prior to, and during the up to 180-day period beginning on, the date of the pricing of any public or private debt or equity securities offering by the Company or the Partnership (except as part of such offering), if and to the extent requested in writing by the Partnership or the Company in the case of a non-underwritten public or private offering or if and to the extent requested in writing by the managing underwriter or underwriters (or initial purchaser or initial purchasers, as the case may be) and consented to by the Partnership or the Company, which consent may be given or withheld in the Partnership’s or the Company’s sole and absolute discretion, in the case of an underwritten public or private offering (such agreement to be in the form of a lock-up agreement provided by the Company, the Partnership, managing underwriter or underwriters, or initial purchaser or purchasers as the case may be).

 

Section 4.11         Conformity to Securities Laws. The Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of all applicable federal and state laws, rules and regulations (including, but not limited to the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, including without limitation the applicable exemptive conditions of Rule 16b-3 of the Exchange Act) and to such approvals by any listing, regulatory or other governmental authority as may, in the opinion of counsel for the Partnership or the Company, be necessary or advisable in connection therewith. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Award of LTIP Units is made, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan, this Agreement and the Award shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

Section 4.12         No Right to Continued Service. Nothing in this Agreement shall confer upon the Participant any right to continue as an Eligible Individual of the Company, the Partnership or any Subsidiary, or shall interfere with or restrict in any way the rights of the Company, the Partnership or any Subsidiary, which rights are hereby expressly reserved, to discharge the Participant at any time for any reason whatsoever, with or without cause.

 

Section 4.13         Non-Solicitation.

 

(a)         During the Participant’s active period of employment with or service to the Company or any of its Affiliates and during the two year period immediately following the Participant’s Termination of Service (the “Restricted Period”), the Participant shall not (i) in any capacity, solicit for employment, or recommend that another person solicit for employment, any person who is an active employee of the Company at the time of said solicitation or (ii) on behalf of the Participant, or any other person, firm or corporation, solicit for competitive purposes, directly or indirectly, any of the Company’s customers, clients, tenants, and business or joint venture partners with whom Participant had contact while working for the Company or any of its Affiliates. For purposes of this Section 4.13(a), the term “contact” shall mean engaging in any communication, whether written or oral, with the customer, client, tenant, supplier and business or joint venture partner or representative thereof that results or is reasonably expected to result in a material loss of existing business for the Company or any of its Affiliates. If Participant breaches this Section 4.13(a), the Restricted Period for non-solicitation shall not expire until Participant is out of breach for a period of one (1) year (or, if longer, the end of the Restricted Period). The Participant acknowledges that the provisions of this Section 4.13 are reasonable and shall be in addition to any similar provisions the Participant may have entered into with the Company or any of its Affiliates.

 

(b)         In the event the terms of this Section 4.13 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action.

 

Section 4.14         Miscellaneous.

 

(a)         Incorporation of the Plan. This Agreement is made under and subject to and governed by all of the terms and conditions of the Plan. In the event of any discrepancy or inconsistency between this Agreement and the Plan, the terms and conditions of the Plan shall control. By signing this Agreement, the Participant confirms that he or she has received access to a copy of the Plan and has had an opportunity to review the contents thereof.

 

(b)         Clawback. This Award shall be subject to any clawback or recoupment policy currently in effect or as may be adopted by the Company or the Partnership, in each case, as may be amended from time to time.

 

(c)         Successors and Assigns. Subject to the limitations set forth in this Agreement, this Agreement shall be binding upon, and inure to the benefit of, the executors, administrators, heirs, legal representatives, successors and assigns of the parties hereto, including, without limitation, any business entity that succeeds to the business of the Company or the Partnership.

 

(d)         Entire Agreement and Waivers. This Agreement, together with the Plan and the Operating Agreement, constitutes the entire agreement among the parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties. In the event that the provisions of such other agreement or letter conflict or are inconsistent with the provisions of this Agreement, the provisions of this Agreement shall control. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.

 

(e)         Amendment, Suspension and Termination. The Award may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or the Board, provided, that, except as may otherwise be provided by the Plan, neither the amendment, suspension nor termination of this Agreement shall, without the consent of the Participant, alter or impair any rights or obligations under the Award.

 

(f)         Survival of Representations and Warranties. The representations, warranties and covenants contained in Section 4.2 hereof shall survive the later of the date of execution and delivery of this Agreement or the issuance of the Award.

 

(f)         Severability. If for any reason one or more of the provisions contained in this Agreement or in any other instrument referred to herein, shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, then to the maximum extent permitted by law, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other such instrument.

 

(g)         Titles. The titles, captions or headings of the Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

 

(h)         Counterparts. This Agreement may be executed in any number of counterparts, any of which may be executed and transmitted by facsimile (including, without limitation, transfer by .pdf), and each of which shall be deemed to be an original, but all of which together shall be deemed to be one and the same instrument..

 

(i)         Governing Law. This laws of the State of New York shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

 

(j)         Notices. Notices required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail by certified mail, with postage and fees prepaid, electronic mail or facsimile addressed to the Participant to the Participant’s address, email address or facsimile number shown in the Company records, and to the Company at its principal executive office or the Secretary’s then-current email address or facsimile number.

 

(k)         Electronic Communications. The Company and its Affiliates may choose to deliver any documents related to the Participant’s current or future participation in the Plan by electronic means. By accepting the Award, the Participant consents and agrees to electronic delivery of any Plan documents, proxy materials, annual reports and other related documents, including all materials required to be distributed pursuant to applicable securities laws. The Company has established procedures for an electronic signature system for delivery and acceptance of Plan documents (including documents relating to any programs adopted under the Plan). The Participant consents to such procedures and agrees to participate in the Plan through an online or electronic system established and maintained by the Company, one of its Affiliates or a third party designated by the Company or any of its Affiliates. The Participant agrees that his or her electronic signature is the same as, and shall have the same force and effect as, his or her manual signature. The Participant understands that, unless earlier revoked by the Participant, this consent shall be effective for the duration of the Agreement and that he or she shall have the right at any time to request written copies of any and all materials referred to above.

 

*****

EXHIBIT B

SECTION 83(b) ELECTION

 

This election (this “Election”) is being made under Section 83(b) of the Internal Revenue Code of 1986, as amended, pursuant to Treas. Reg. Section 1.83-2.

 

 

1.

The name, address and taxpayer identification number of the undersigned (the “Taxpayer”) are:

 

Name:                                              __________________________

Address:                                           __________________________

   __________________________

Taxpayer Identification Number:     __________________________

 

 

2.

The following is a description of the property with respect to which this Election is being made:

 

An award of LTIP Units in Kimco Realty OP, LLC, a Delaware limited liability company (the “Partnership”), under the Kimco Realty Corporation Second Amended and Restated 2020 Equity Participation Plan, as amended from time to time (the “Plan”), the Time-Based LTIP Unit Award Grant Notice (the “Grant Notice”) and the Time-Based LTIP Unit Award Agreement (the “Award Agreement”) entered into with Taxpayer. Taxpayer was issued [____] LTIP Units in the Partnership (the “Units”).

 

 

3.

The date on which such property was transferred was________, the Date of Grant. The taxable year to which this Election relates is calendar year _____.

 

 

4.

The nature of the restrictions to which such property is subject is as follows:

 

The Units may not be transferred and are subject to forfeiture under the terms of the Plan and the Award Agreement. These restrictions lapse upon the satisfaction of certain conditions contained in such agreements.

 

 

5.

The fair market value of the Units at the time of transfer (determined without regard to any restriction other than restrictions which by their terms will never lapse) is $0.00.

 

 

6.

The aggregate amount paid for the Units by the Taxpayer is $0.00.

 

 

7.

The amount to include in gross income is $0.00.

 

 

8.

A copy of this Election was furnished to the company for which the Taxpayer rendered the service underlying the transfer of such property. The transferee of the property is the person rendering the service underlying the transfer of such property.

 

The undersigned understands that the foregoing election may not be revoked except with the consent of the Commissioner of the Internal Revenue Service.

 

Dated: ______________________, ____                  _____________________________________

 Taxpayer

 

The undersigned spouse of taxpayer joins in this election.

 

 

Dated: ______________________, ____                   _____________________________________                                                                                 

  Spouse of Taxpayer

 

 

Exhibit 10.14

 

KIMCO REALTY CORPORATION

SECOND AMENDED AND RESTATED 2020 EQUITY PARTICIPATION PLAN

 

PERFORMANCE-BASED LTIP UNIT AWARD GRANT NOTICE

 

Pursuant to the Second Amended and Restated 2020 Equity Participation Plan, as amended and/or restated from time to time (the “Plan”), of Kimco Realty Corporation, a Maryland corporation (the “Company”), Kimco Realty OP, LLC, a Delaware limited liability company (the “Partnership”), hereby grants to the holder listed below (“Participant”), a performance-based LTIP Unit Award (the “Award”). This Award is subject to all of the terms and conditions set forth herein and in the Performance-Based LTIP Unit Award Agreement attached hereto as Exhibit A (the “LTIP Unit Award Agreement”) and the Plan, each of which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the LTIP Unit Award Agreement.

 

Participant:

[____________]

Grant Date:

[____________]

Total Number of LTIP Units Granted:

[____________]

Base Number of LTIP Units Subject to the Award:

[____________]

Performance Period:

January 1, [____] – December 31, [____]

Performance Goals:

The LTIP Units granted hereunder (the “LTIP Units”) will be eligible to vest upon the Vesting Date based upon the Company’s attainment of the Performance Goals set forth in Article 3 of the LTIP Unit Award Agreement during the Performance Period. The Performance Goals applicable to this Award relate to the Company’s achievement of Total Stockholder Return relative to its Peer Group.

Termination:

Except as otherwise set forth in the LTIP Unit Award Agreement, Participant shall forfeit all LTIP Units upon Participant’s Termination of Service prior to the applicable Valuation Date.

 

Award Acceptance:         

 

The Participant may accept the Award and agree to be bound by the terms and conditions of the Plan, the LTIP Unit Award Agreement and this Grant Notice by electronically acknowledging and accepting the Award in the manner prescribed by the Company following the date of the Company’s electronic or other written notification to the Participant of the grant of the Award (the “Notification Date”).

 

In addition, the Participant will be deemed to have accepted the Award and agreed to be bound by the terms and conditions of the Plan, the LTIP Unit Award Agreement and this Grant Notice, unless the Participant informs the Company in writing within 30 days immediately following the Notification Date that the Participant wishes to reject the Award. Failure to notify the Company in writing of the Participants rejection of the Award during this 30-day period will result in the Participants acceptance of the Award and the Participants agreement to be bound by the terms and conditions of the Plan, the LTIP Unit Award Agreement and this Grant Notice.

 

The Participant will accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan, this Grant Notice or the LTIP Unit Award Agreement. Participant must file a Section 83(b) Election within 30 days of the Grant Date, as described in the LTIP Unit Award Agreement.

 

Kimco Realty Corporation:                                    Participant:

 

 

 

By: ________________________                                       ________________________

Name:                                                                        Name:

Title:

 

 

 

Kimco Realty OP, LLC:

By: Kimco Realty Corporation, managing member                                    

 

 

 

By: ________________________                                     

Name:                                             

Title:

 

 

 

EXHIBIT A

TO PERFORMANCE-BASED LTIP UNIT AWARD GRANT NOTICE

 

KIMCO REALTY CORPORATION

PERFORMANCE-BASED LTIP UNIT AWARD AGREEMENT

 

Pursuant to the Performance-Based LTIP Unit Award Grant Notice (the “Grant Notice”) to which this Performance-Based LTIP Unit Award Agreement (this “Agreement”) is attached, Participant is hereby granted an award (the “Award”) of LTIP Units (the “LTIP Units”) in Kimco Realty OP, LLC, a Delaware limited liability company (the “Partnership”) under the Second Amended and Restated 2020 Equity Participation Plan of Kimco Realty Corporation (the “Company”), as amended and/or restated from time to time (the “Plan”).

 

WHEREAS, the Company and the Partnership wish to carry out the Plan, the terms of which are hereby incorporated by reference and made a part of this Agreement;

 

WHEREAS, Section 8.6 of the Plan permits the issuance of LTIP Units to Eligible Individuals for the performance of services to or for the benefit of the Partnership in the Eligible Individual’s capacity as a member of the Partnership; and

 

WHEREAS, the Administrator appointed to administer the Plan has determined that it would be to the advantage and in the best interest of the Company to issue the Award (as defined below) to the Participant as an inducement to enter into or remain in the service of the Company, the Partnership or any Subsidiary (together, “Kimco”), and as an additional incentive during such service, and has advised Kimco thereof;

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

Whenever the following terms are used in this Agreement, they shall have the meaning specified below unless the context clearly indicates to the contrary. All capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Plan and/or the Operating Agreement, as applicable.

 

Section 1.1 “75% TSR” shall mean, with respect to the period beginning on the Performance Commencement Date and ending on the Valuation Date, Total Stockholder Return of the Company equal to the 75th percentile (as determined in accordance with standard statistical methodology) of the range of the Total Stockholder Returns of each of the constituent companies included in the Peer Group.

 

Section 1.2 “Average Market Value” shall mean the average of the closing price per share of Common Stock (or per share of common stock of a constituent company in the Peer Group, as applicable) for the applicable twenty (20) trading days beginning or ending on a specified date for which such closing price is reported by the New York Stock Exchange or such other authoritative source as the Company may determine.

 

Section 1.3 “Award” shall have the meaning set forth in the Preamble hereto.

 

Section 1.4 “Base Number of LTIP Units” shall mean the base number of LTIP Units set forth in the Grant Notice.

 

Section 1.5 “Beginning Average Market Value” shall mean the Average Market Value based on the twenty (20) trading days preceding the Performance Commencement Date.

 

Section 1.6 “Cause” shall mean (i) “Cause” as defined (A) in the Kimco Realty Corporation Executive Severance Plan (the “Severance Plan”) if the Participant is a participant in the Severance Plan or, (B) if the Participant is not a participant in the Severance Plan, in the Participant’s applicable employment or severance agreement with Kimco if such an agreement exists and contains a definition of Cause, or (ii) if no such agreement exists or such agreement does not contain a definition of Cause and the Participant is not a participant in the Severance Plan, then Cause shall mean (A) conviction of a crime (including conviction on a nolo contendere plea) involving the commission by the Participant of a felony or of a criminal act involving, in the good faith judgment of the Company, fraud, dishonesty, or moral turpitude; (B) the Participant’s deliberate and continual refusal to perform employment duties reasonably requested by the Company or an Affiliate after thirty (30) days’ written notice by certified mail of such failure to perform, specifying that the failure constitutes cause (other than as a result of vacation, sickness, illness or injury); (C) prior to the occurrence of a Change in Control, the Participant’s continued unsatisfactory performance and/or behavior following issuance of progressive performance warnings and reasonable time to improve; (D) fraud or embezzlement by the Participant determined in accordance with the Company’s normal, internal investigative procedures consistently applied in comparable circumstances; (E) the Participant’s misconduct or negligence in connection with the business of the Company or an Affiliate which has a substantial adverse effect on the Company or the Affiliate; (F) a breach of fiduciary duty by the Participant to Kimco; or (G) the Participant’s violation of any of the Kimco policies prohibiting harassment or discrimination in the workplace. Determination of Cause shall be made by the Administrator in its sole discretion.

 

Section 1.7 “Company” shall mean Kimco Realty Corporation, a Maryland corporation.

 

Section 1.8 “Disability” shall mean that the Participant suffers from a physical or mental condition which, in the reasonable judgment of a physician selected by the Company, prevents the Participant from performing the Participant’s usual and customary duties for Kimco, with or without reasonable accommodation, and is expected to result in death or can be expected to last for a continuous period of not less than twelve months. The Participant’s receipt of disability benefits for a period of not less than three months under Kimco’s long-term disability benefits plan or receipt of Social Security disability benefits shall be deemed conclusive evidence of Disability for purposes of this Agreement.

 

Section 1.9 “Distribution Equivalent Units” means a number of LTIP Units equal to the quotient obtained by dividing (i) the excess of (A) the value of all dividends paid by the Company with an ex-dividend date that occurs during the period beginning on the Performance Commencement Date and ending on the Vesting Date (the “Distribution Measurement Period”) in respect of that number of shares of Common Stock equal to the number of LTIP Units that have become Vested Base Units as of the Vesting Date, over (B) the amount of any distributions made by the Partnership to the Participant pursuant to Section 5.1 and Section 16.4 of the Operating Agreement with respect to the Distribution Measurement Period in respect of such LTIP Units, plus (or minus) the amount of gain (or loss) on such excess dividend amounts had they been reinvested in Common Stock on the date that they were paid (at a price equal to the closing price of the Common Stock on the applicable dividend payment date) and plus, without duplication, the value of any dividends on the notional shares resulting from the hypothetical reinvestment of distributions with an ex-dividend date on or after the hypothetical issuance of such notional shares and on or prior to the last day of the Distribution Measurement Period (the amount in this clause (i), the “Net Dividend Amount”), by (ii) the Fair Market Value on the Vesting Date.

 

Section 1.10 “Ending Average Market Value” shall mean the Average Market Value based on the last twenty (20) trading days of the Performance Period; provided, that, if a Change in Control occurs prior to the end of the Performance Period, “Ending Average Market Value” shall mean the Average Market Value based on the twenty (20) trading days ending on the last trading day prior to date of the Change in Control.

 

Section 1.11 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

Section 1.12 “Good Reason” A Participant shall have “Good Reason” to terminate his or her employment with the Company following a Change in Control upon the occurrence (without the Participant’s prior written consent) of (a) a diminution in the base salary paid to a Participant on an annual basis, exclusive of any bonus payments, commission payments or additional payments under any benefit plan of the Company, (b) a material diminution in the Participant’s authority, duties or responsibilities, (c) a material diminution in the authority, duties, or responsibilities of the supervisor to whom the Participant is required to report, (d) a material change in the geographic location at which the Participant must perform the services, or (e) any other action or inaction that constitutes a material breach by the Company of any written agreement under which the Participant provides services; provided, however, that, notwithstanding the foregoing, the Participant may not resign his or her employment for Good Reason unless (i) the Participant has provided the Company with at least thirty (30) days prior written notice of his or her intent to resign for Good Reason (which notice must be provided within ninety (90) days following the occurrence of the event(s) purported to constitute Good Reason); and (ii) the Company has not remedied the alleged violation(s) within the thirty-day period following its receipt of such notice.

 

Section 1.13 “Grant Date” shall mean the date of this Agreement as set forth in the Grant Notice.

 

Section 1.14 “Grant Notice” shall have the meaning set forth in the Preamble hereto.

 

Section 1.15 “Maximum TSR” shall mean, with respect to the period beginning on the Performance Commencement Date and ending on the Valuation Date, Total Stockholder Return of the Company equal to or in excess of the 85th percentile (as determined in accordance with standard statistical methodology) of the range of the Total Stockholder Returns of each of the constituent companies included in the Peer Group.

 

Section 1.16 “Measurement Date” shall mean the last December 31st of the Performance Period.

 

Section 1.17 “Minimum TSR” shall mean, with respect to the period beginning on the Performance Commencement Date and ending on the Valuation Date, Total Stockholder Return of the Company equal to the 25th percentile (as determined in accordance with standard statistical methodology) of the range of the Total Stockholder Returns of each of the constituent companies included in the Peer Group.

 

Section 1.18 “Operating Agreement” shall mean the Limited Liability Company Agreement of the Partnership, as it may be amended from time to time.

 

Section 1.19 “Participant” shall have the meaning set forth in the Grant Notice.

 

Section 1.20 “Peer Group” shall mean the Company’s peer group set forth on Exhibit B to the Agreement; provided, however, that if a constituent company in the Peer Group ceases to be actively traded, due, for example, to merger or bankruptcy or the Committee otherwise reasonably determines that it is no longer suitable for the purposes of this Agreement, then such company shall be removed from the Peer Group.

 

Section 1.21 “Performance Commencement Date” shall mean the first date of the Performance Period.

 

Section 1.22 “Performance Goals” shall mean the Total Stockholder Return goals described in Section 3.2 (including the Minimum TSR, Target TSR, 75% TSR and Maximum TSR), each of which shall be measured with respect to the period beginning on the Performance Commencement Date and ending on the Valuation Date.

 

Section 1.23 “Performance Period” shall mean the Performance Period set forth in the Grant Notice.

 

Section 1.24 “Plan” shall have the meaning set forth in the Preamble hereto.

 

Section 1.25 “Qualifying Termination” shall mean (i) Participant incurs a Termination of Service as a result of death or Disability, (ii) Participant is entitled to a Severance Payment under the Company’s Executive Severance Plan and complies with Section 3.03 of such plan no later than fifty-five (55) days following such Termination of Service, (iii) Participant incurs a Termination of Service due to Retirement or (iv) Participant incurs a Termination of Service by the Company without Cause or as a result of the Participant’s resignation for Good Reason and, in either case, executes (and does not revoke) a release of claims in a form acceptable to the Company within sixty (60) days following the date of such Termination of Service.

 

Section 1.26 “Restrictions” shall mean the exposure to forfeiture set forth in Article 3.

 

Section 1.27 “Target TSR” shall mean, with respect to the period beginning on the Performance Commencement Date and ending on the Valuation Date, Total Stockholder Return of the Company equal to the 50th percentile (as determined in accordance with standard statistical methodology) of the range of the Total Stockholder Returns of each of the constituent companies included in the Peer Group.

 

Section 1.28 “Total Number of LTIP Units” shall mean the Total Number of LTIP Units as set forth in the Grant Notice.

 

Section 1.29 Total Number of Vested Units” shall mean (i) the Vested Base Units plus (ii) the Distribution Equivalent Units.

 

Section 1.30 “Total Stockholder Return” or “TSR” shall mean the percentage appreciation (positive or negative) in the Common Stock price from the Performance Commencement Date to the Valuation Date, determined by dividing (i) the difference obtained by subtracting (A) the Beginning Average Market Value, from (B) the Ending Average Market Value on the Valuation Date plus all cash dividends paid on a share of common stock from the Performance Commencement Date to the Valuation Date, assuming same-day reinvestment into common stock on the applicable ex-dividend date by (ii) the Beginning Average Market Value. Additionally, appropriate adjustments to the Total Stockholder Return may be made by the Administrator to take into account all stock dividends, stock splits, reverse stock splits and other similar events, including as set forth in Section 3.4 hereof, that occur prior to the Valuation Date.

 

Section 1.31 “Secretary” shall mean the Secretary of the Company.

 

Section 1.32 “Subsidiary” shall mean any entity (other than the Company), whether domestic or foreign, in an unbroken chain of entities beginning with the Company if each of the entities other than the last entity in the unbroken chain beneficially owns, at the time of the determination, securities or interests representing more than fifty percent (50%) of the total combined voting power of all classes of securities or interests in one of the other entities in such chain.

 

Section 1.33 “Valuation Date” shall mean, with respect to the Performance Period, the earliest of (i) the Measurement Date or (ii) the date upon which a Change in Control shall occur.

 

Section 1.34 “Vested Base Units” shall mean the Base Number of LTIP Units that become vested pursuant to Section 3.2, which shall not exceed 100% of the Base Number of LTIP Units.

 

Section 1.35 “Vesting Date” shall mean the date the Administrator determines that the extent to which the Award has vested, pursuant to Section 3.2(b), which date shall be no later than sixty (60) days after the Valuation Date.

 

Section 1.36 “83(b) Election” shall have the meaning set forth in Section 4.6.

 

ARTICLE II.
LTIP UNIT AWARD

 

ARTICLE II.

 

Section 2.1    Award of LTIP Units. Pursuant to the Plan, in consideration of the Participant’s past and/or continued employment with or service to Kimco, and for other good and valuable consideration, the Partnership hereby (a) issues to the Participant an award of LTIP Units equal to the Total Number of LTIP Units and (b) if not already a member, admits the Participant as a member of the Partnership on the terms and conditions set forth herein, in the Plan and in the Operating Agreement. The Total Number of LTIP Units and the Base Number of LTIP Units subject to the Award are set forth in the Grant Notice. The Partnership and the Participant acknowledge and agree that the LTIP Units are hereby issued to the Participant for the performance of services to or for the benefit of the Partnership in his or her capacity as a member or in anticipation of the Participant becoming a member. Upon receipt of the Award, the Participant shall, automatically and without further action on his or her part, be deemed to be a party to, signatory of and bound by the Operating Agreement. At the request of the Partnership, the Participant shall execute the Operating Agreement or a joinder or counterpart signature page thereto. The Participant acknowledges that the Partnership may from time to time issue or cancel (or otherwise modify) LTIP Units in accordance with the terms of the Operating Agreement. The Award shall have the rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption and conversion set forth herein, in the Plan and in the Operating Agreement. For the avoidance of doubt, the Award shall constitute an award of Performance LTIP Units under the Plan and the Operating Agreement.

 

Section 2.2    Fractional Units. For purposes of this Agreement, any fractional LTIP Units that vest or become entitled to distributions pursuant to the Operating Agreement will be rounded down as determined by the Company or the Partnership. Furthermore, in no event shall the aggregate number of LTIP Units that vest or become entitled to such distributions exceed the Total Number of Vested Units.

 

Section 2.3    Award Subject to Plan. The Award granted hereunder is subject to the terms and provisions of the Plan, including without limitation, Article 12 thereof.

 

ARTICLE III.
RESTRICTIONS

 

ARTICLE III.

 

Section 3.1    LTIP Units Subject to Operating Agreement; Transfer Restrictions

 

(a)         The Award and the LTIP Units are subject to the terms of the Plan and the terms of the Operating Agreement, including, without limitation, the restrictions on transfer of Units (including, without limitation, LTIP Units) set forth therein. Any permitted transferee of the Award or LTIP Units shall take such Award or LTIP Units subject to the terms of the Plan, this Agreement, and the Operating Agreement. Any such permitted transferee must, upon the request of the Partnership, agree to be bound by the Plan, the Operating Agreement, and this Agreement, and shall execute the same on request, and must agree to such other waivers, limitations, and restrictions as the Partnership or the Company may reasonably require. Any Transfer of the Award or LTIP Units which is not made in compliance with the Plan, the Operating Agreement and this Agreement shall be null and void and of no effect.

 

(b)         Without the consent of the Administrator (which it may give or withhold in its sole discretion), the Participant shall not sell, pledge, assign, hypothecate, transfer, or otherwise dispose of (collectively, “Transfer”) any unvested LTIP Units or any portion of the Award attributable to such unvested LTIP Units (or any securities into which such unvested LTIP Units are converted or exchanged), other than by will or pursuant to the laws of descent and distribution (the “Transfer Restrictions”); provided, however, that the Transfer Restrictions shall not apply to any Transfer of unvested LTIP Units or of the Award to the Partnership or the Company.

 

Section 3.2    Vesting. Subject to Section 3.3 below, the Award shall vest and the Restrictions shall lapse and the LTIP Units will vest and become non-forfeitable on the Vesting Date as follows:

 

(a)    The vesting of the LTIP Units is contingent on the attainment of the Performance Goals. Accordingly, the LTIP Units subject to this Agreement shall not become vested unless and until the Administrator determines whether and to what extent the Performance Goals have been attained. Upon such determination by the Administrator and subject to the provisions of the Plan and this Agreement, Participant shall be eligible to vest in that portion of the LTIP Units as corresponds to the Performance Goals attained (as determined by the Administrator in its sole discretion) as set forth in Section 3.2(b) below, and any LTIP Units granted hereby which do not become vested as of the Vesting Date shall automatically be cancelled and forfeited without payment of any consideration therefor, and the Participant shall have no further right to or interest in such LTIP Units.

 

(b)    The number of LTIP Units that shall become vested on the Vesting Date shall be determined as of the applicable Valuation Date, based on the Company’s Total Stockholder Return, as follows:

 

(i)    If, as of a Valuation Date, the Company’s TSR with respect to the period beginning on the Performance Commencement Date and ending on such Valuation Date is less than the Minimum TSR, then all of the LTIP Units shall thereupon be forfeited.

 

(ii)    If, as of a Valuation Date, the Company’s TSR with respect to the period beginning on the Performance Commencement Date and ending on such Valuation Date is equal to the Minimum TSR, then 25% of the Base Number of LTIP Units set forth on the Grant Notice plus the applicable number of Distribution Equivalent Units shall vest on the Vesting Date, and the remaining LTIP Units shall thereupon be forfeited.

 

(iii)    If, as of a Valuation Date, the Company’s TSR with respect to the period beginning on the Performance Commencement Date and ending on such Valuation Date is equal to the Target TSR, then 50% of the Base Number of LTIP Units set forth on the Grant Notice plus the applicable number of Distribution Equivalent Units shall vest on the Vesting Date, and the remaining LTIP Units shall thereupon be forfeited.

 

(iv)    If, as of a Valuation Date, the Company’s TSR with respect to the period beginning on the Performance Commencement Date and ending on such Valuation Date is equal to the 75% TSR, then 75% of the Base Number of LTIP Units set forth on the Grant Notice plus the applicable number of Distribution Equivalent Units shall vest on the Vesting Date, and the remaining LTIP Units shall thereupon be forfeited.

 

(v)    If, as of a Valuation Date, the Company’s TSR with respect to the period beginning on the Performance Commencement Date and ending on such Valuation Date is equal to the Maximum TSR, then 100% of the Base Number of LTIP Units set forth on the Grant Notice plus the applicable number of Distribution Equivalent Units shall vest on the Vesting Date, and the remaining LTIP Units shall thereupon be forfeited.

 

(vi)    The number of LTIP Units that are eligible to vest if, as of a Valuation Date, the Company’s Total Stockholder Return with respect to the period beginning on the Performance Commencement Date and ending on such Valuation Date is between the Minimum TSR and the Target TSR, between the Target TSR and the 75% TSR or between the 75% TSR and the Maximum TSR, shall be determined by means of linear interpolation and the remaining LTIP Units shall thereupon be forfeited. For the avoidance of doubt, the maximum number of LTIP Units that may become vested hereunder with respect to the Performance Period shall not exceed the Total Number of LTIP Units, and no additional LTIP Units above the Total Number of Vested Units shall be awarded if the Company’s TSR exceeds the Maximum TSR (the limitations described in this sentence, the “Limitation Provisions”) .

 

(c)    For the avoidance of doubt, that number of LTIP Units, if any, that constitute Distribution Equivalent Units as of the Vesting Date shall thereupon vest in full on the Vesting Date. Participant shall not be entitled to any payment for a Distribution Equivalent Unit with respect to any dividend with a record date that occurs prior to the Performance Commencement Date or after the Vesting Date for any reason, whether due to payment, forfeiture or otherwise. If any portion of the Base Number of LTIP Units to which the Distribution Equivalent Units are linked fails to vest and is forfeited for any reason, then (i) the applicable number of Distribution Equivalent Units shall be forfeited as well, (ii) any amounts otherwise payable in respect of such Distribution Equivalent Units shall be forfeited without payment, and (iii) the Company shall have no further obligations in respect of such Distribution Equivalent Units.

 

Section 3.3    Forfeiture.

 

(a)    Termination of Service. Subject to Section 3.3(b) below, any portion of the Award (including any Distribution Equivalent Units) which is not vested upon the Participant’s Termination of Service that occurs prior to the Valuation Date shall thereupon be forfeited immediately and without any further action by the Company.

 

(b)    Qualifying Termination. Notwithstanding Section 3.3(a), in the event of a Termination of Service as a result of a Qualifying Termination, Participant shall remain eligible to vest in the LTIP Units (including any Distribution Equivalent Units) subject to the terms of Section 3.2(b) above without regard to the continued employment condition. Any such vesting shall occur on the applicable Vesting Date. Any LTIP Units granted hereunder that do not become fully vested in accordance with the preceding sentence shall automatically be cancelled and forfeited as of the completion of the Performance Period without payment of any consideration therefor, and the Participant shall have no further right or interest in or with respect to such LTIP Units.

 

Section 3.4    Change in Control. Notwithstanding any contrary provision of this Agreement, in the event of a Change in Control at any time prior to the Measurement Date, that number of LTIP Units determined pursuant to Section 3.2(b) hereof (including any Distribution Equivalent Units) for the period beginning on the Performance Commencement Date and ending on the date of the Change in Control shall continue to vest over the remainder of the Performance Period (such LTIP Units, the “Restricted Units”), subject to (i) immediate vesting of the Restricted Units in the event of a Qualifying Termination (before or after the Change in Control), (ii) immediate vesting of the Restricted Units in the event the successor corporation (or any of its parent entities) does not assume or substitute the Restricted Units for equivalent rights in connection with such Change in Control, and (iii) immediate vesting of the Restricted Units on the earlier of (A) the date of the Change in Control if Participant is eligible for Retirement on such date, or (B) the date Participant becomes eligible for Retirement if Participant is not eligible for Retirement on the date of the Change in Control. If Participant incurs a Termination of Service that does not qualify as a Qualifying Termination, all outstanding Restricted Units shall be immediately forfeited. Any LTIP Units that are not Restricted Units as of a Change in Control shall be forfeited.

 

Section 3.5    Adjustments Upon Specified Events. The Administrator may accelerate the vesting of the LTIP Units in such circumstances as it, in its sole discretion, may determine. In addition, upon the occurrence of certain events relating to the shares of the Common Stock contemplated by Section 12.2 of the Plan or equity securities of the Partnership, the Administrator shall make such adjustments as the Administrator deems appropriate in the number of LTIP Units then outstanding and the number and kind of securities that may be issued in respect of the LTIP Units. Participant acknowledges that the LTIP Units are subject to amendment, modification and termination in certain events as provided in this Agreement, Section 12.2 of the Plan and the Operating Agreement.

 

Section 3.6    Distribution Equivalent Unit Cash Payment. If, but for the effect of the Limitation Provisions, the total number of Distribution Equivalent Units calculated in accordance with the definition set forth in the definition of “Distribution Equivalent Units” would have resulted in the Total Number of Vested Units to exceed the Total Number of LTIP Units (such hypothetical excess, the “Shortfall Units”), then the Partnership (or another Kimco entity designated by the Partnership) shall pay to the Participant a cash amount equal to the Net Dividend Amount attributable solely to the Shortfall Units (and not, for the avoidance of doubt, any Net Dividend Amount attributable to the Distribution Equivalent Units), less any tax withholdings required by law (the “DEU Cash Payment”). The DEU Cash Payment shall be paid no later than March 15 of the calendar year following the calendar year in which the Valuation Date occurs.

 

ARTICLE IV.
OTHER PROVISIONS

 

Section 4.1         Execution and Return of Documents and Certificates. At the Company’s or the Partnership’s request, the Participant hereby agrees to promptly execute, deliver and return to the Partnership any and all documents or certificates that the Company or the Partnership deems necessary or desirable to effectuate the cancellation and forfeiture of the unvested LTIP Units and the portion of the Award attributable to the unvested LTIP Units, or to effectuate the transfer or surrender of such unvested LTIP Units and portion of the Award to the Partnership.

 

Section 4.2         Determinations by Administrator. Notwithstanding anything contained herein, all determinations, interpretations and assumptions relating to the vesting of the Award (including, without limitation, determinations, interpretations and assumptions with respect to the calculation of TSR and the extent to which the Performance Goals have been attained (if at all)) shall be made by the Administrator. In making such determinations, the Administrator may employ attorneys, consultants, accountants, appraisers, brokers, or other persons, and the Administrator, the Board, the Company, the Partnership and their officers and directors shall be entitled to rely upon the advice, opinions or valuations of any such persons. All actions taken and all interpretations and determinations made by the Administrator in good faith and absent manifest error shall be final and binding upon the Participant, the Company and all other interested persons. In addition, the Administrator, in its discretion, may adjust or modify the methodology for calculations relating to the vesting of the Award (including, without limitation, the methodology for calculating TSR), as necessary or desirable to account for events affecting the value of the Common Stock which, in the discretion of the Administrator, are not considered indicative of Company performance, which may include events such as the issuance of new Common Stock, stock repurchases, stock splits, issuances and/or exercises of stock grants or stock options, and similar events, all in order to properly reflect the Company’s intent with respect to the performance objectives underlying the Award or to prevent dilution or enlargement of the benefits or potential benefits intended to be made available with respect to the Award.

 

Section 4.3         Covenants, Representations and Warranties. The Participant hereby represents, warrants, covenants, acknowledges and agrees on behalf of the Participant and his or her spouse, if applicable, that:

 

(a)         Investment. The Participant is holding the Award and the LTIP Units for the Participant’s own account, and not for the account of any other Person. The Participant is holding the Award and the LTIP Units for investment and not with a view to distribution or resale thereof except in compliance with applicable laws regulating securities.

 

(b)         Relation to the Partnership. The Participant is presently an executive officer and Employee of, or Consultant to, the Partnership, or is otherwise providing services to or for the benefit of the Partnership, and in such capacity has become personally familiar with the business of the Partnership.

 

(c)         Access to Information. The Participant has had the opportunity to ask questions of, and to receive answers from, the Partnership with respect to the terms and conditions of the transactions contemplated hereby and with respect to the business, affairs, financial conditions, and results of operations of the Partnership.

 

(d)         Registration. The Participant understands that the LTIP Units have not been registered under the Securities Act, and the LTIP Units cannot be transferred by the Participant unless such transfer is registered under the Securities Act or an exemption from such registration is available. The Partnership has made no agreements, covenants or undertakings whatsoever to register the transfer of the LTIP Units under the Securities Act. The Partnership has made no representations, warranties, or covenants whatsoever as to whether any exemption from the Securities Act, including, without limitation, any exemption for limited sales in routine brokers’ transactions pursuant to Rule 144 of the Securities Act, will be available. If an exemption under Rule 144 is available at all, it will not be available until at least six (6) months from issuance of the Award and then not unless the terms and conditions of Rule 144 have been satisfied.

 

(e)         Public Trading. None of the Partnership’s securities are presently publicly traded, and the Partnership has made no representations, covenants or agreements as to whether there will be a public market for any of its securities.

 

(f)         Tax Advice. The Partnership has made no warranties or representations to the Participant with respect to the income tax consequences of the transactions contemplated by this Agreement (including, without limitation, with respect to the decision of whether to make an election under Section 83(b) of the Code), and the Participant is in no manner relying on the Partnership or its representatives for an assessment of such tax consequences. The Participant is advised to consult with his or her own tax advisor with respect to such tax consequences and his or her ownership of the LTIP Units.

 

Section 4.4         Capital Account. The Participant shall make no contribution of capital to the Partnership in connection with the Award and, as a result, the Participant’s Capital Account (as defined in the Operating Agreement) balance in the Partnership immediately after its receipt of the LTIP Units shall be equal to zero, unless the Participant was a member in the Partnership prior to such issuance, in which case the Participant’s Capital Account balance shall not be increased as a result of the Partnership’s receipt of the LTIP Units.

 

Section 4.5         Conversion Rights. Notwithstanding any contrary terms in the Operating Agreement, Common Units (as defined in the Operating Agreement) that are acquired upon the conversion of the LTIP Units shall not, without the consent of the Partnership (which may be given or withheld in its sole discretion), be redeemed pursuant to Section 15.1 of the Operating Agreement within two (2) years of the date of the issuance of such LTIP Units.

 

Section 4.6         Section 83(b) Election. The Participant covenants that the Participant shall make a timely election under Section 83(b) of the Code (and any comparable election in the state of the Participant’s residence) with respect to the LTIP Units covered by the Award, and the Partnership hereby consents to the making of such election(s). In connection with such election, the Participant and the Participant’s spouse, if applicable, shall promptly provide a copy of such election to the Partnership. A form of election under Section 83(b) of the Code is attached hereto as Exhibit C. The Participant represents that the Participant is hereby advised to consult a tax advisor(s) that the Participant deems advisable in connection with the filing of an election under Section 83(b) of the Code and similar state tax provisions.

 

THE PARTICIPANT ACKNOWLEDGES THAT IT IS THE PARTICIPANTS SOLE RESPONSIBILITY AND NOT THE COMPANYS OR THE PARTNERSHIPS OR ITS SUBSIDIARIES OR AFFILIATES OR THEIR RESPECTIVE REPRESENTATIVES RESPONSIBILITY TO TIMELY FILE THE ELECTION UNDER CODE SECTION 83(b), EVEN IF THE PARTICIPANT REQUESTS THAT THE COMPANY, THE PARTNERSHIP, ITS SUBSIDIARIES OR AFFILIATES OR THEIR RESPECTIVE REPRESENTATIVES TO MAKE THIS FILING ON PARTICIPANTS BEHALF.

 

Section 4.7         Ownership Information. The Participant hereby covenants that so long as the Participant holds any LTIP Units, at the request of the Partnership, the Participant shall disclose to the Partnership in writing such information relating to the Participant’s ownership of the LTIP Units as the Partnership reasonably believes to be necessary or desirable to ascertain in order to comply with the Code or the requirements of any other appropriate taxing authority.

 

Section 4.8         Taxes. The Partnership and the Participant intend that (i) the LTIP Units be treated as “profits interests” as defined in Internal Revenue Service Revenue Procedure 93-27, as clarified by Revenue Procedure 2001-43, (ii) the issuance of such units not be a taxable event to the Partnership or the Participant as provided in such revenue procedure, and (iii) the Operating Agreement, the Plan and this Agreement be interpreted consistently with such intent. In furtherance of such intent, effective immediately prior to the issuance of the LTIP Units, the Partnership may revalue all Partnership assets to their respective gross fair market values, and make the resulting adjustments to the Capital Accounts of the partners, in each case as set forth in the Operating Agreement. The Company, the Partnership or any Subsidiary may withhold from the Participant’s wages, or require the Participant to pay to such entity, any applicable withholding or employment taxes resulting from the issuance of the Award hereunder, from the vesting or lapse of any restrictions imposed on the Award, or from the ownership or disposition of the LTIP Units.

 

Section 4.9         Remedies. The Participant shall be liable to the Partnership for all costs and damages, including incidental and consequential damages, resulting from a disposition of the Award or the LTIP Units which is in violation of the provisions of this Agreement. Without limiting the generality of the foregoing, the Participant agrees that the Partnership shall be entitled to obtain specific performance of the obligations of the Participant under this Agreement and immediate injunctive relief in the event any action or proceeding is brought in equity to enforce the same. The Participant will not urge as a defense that there is an adequate remedy at law.

 

Section 4.10       Restrictive Legends. Certificates evidencing the Award, to the extent such certificates are issued, may bear such restrictive legends as the Partnership and/or the Partnership’s counsel may deem necessary or advisable under applicable law or pursuant to this Agreement, including, without limitation, the following legends or any legends similar thereto:

 

“The securities represented hereby have not been registered under the Securities Act of 1933, as amended (the “Securities Act”). Any transfer of such securities will be invalid unless a Registration Statement under the Securities Act is in effect as to such transfer or in the opinion of counsel for Kimco Realty OP, LLC (the “Partnership”) such registration is unnecessary in order for such transfer to comply with the Securities Act.”

 

“The securities represented hereby are subject to forfeiture, transferability and other restrictions as set forth in (i) a written agreement with the Partnership, (ii) the Kimco Realty Corporation Second Amended and Restated 2020 Equity Participation Plan and (iii) the Limited Liability Company Agreement of the Partnership, in each case, as has been and as may in the future be amended (or amended and restated) from time to time, and such securities may not be sold or otherwise transferred except pursuant to the provisions of such documents.”

 

Section 4.11        Restrictions on Public Sale by the Participant. To the extent not inconsistent with applicable law, the Participant agrees not to effect any sale or distribution of the LTIP Units or any similar security of the Company or the Partnership, or any securities convertible into or exchangeable or exercisable for such securities, including a sale pursuant to Rule 144 under the Securities Act, during the fourteen (14) days prior to, and during the up to 180-day period beginning on, the date of the pricing of any public or private debt or equity securities offering by the Company or the Partnership (except as part of such offering), if and to the extent requested in writing by the Partnership or the Company in the case of a non-underwritten public or private offering or if and to the extent requested in writing by the managing underwriter or underwriters (or initial purchaser or initial purchasers, as the case may be) and consented to by the Partnership or the Company, which consent may be given or withheld in the Partnership’s or the Company’s sole and absolute discretion, in the case of an underwritten public or private offering (such agreement to be in the form of a lock-up agreement provided by the Company, the Partnership, managing underwriter or underwriters, or initial purchaser or purchasers as the case may be).

 

Section 4.12         Conformity to Securities Laws. The Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of all applicable federal and state laws, rules and regulations (including, but not limited to the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, including without limitation the applicable exemptive conditions of Rule 16b-3 of the Exchange Act) and to such approvals by any listing, regulatory or other governmental authority as may, in the opinion of counsel for the Partnership or the Company, be necessary or advisable in connection therewith. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Award of LTIP Units is made, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan, this Agreement and the Award shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

Section 4.13         No Right to Continued Service. Nothing in this Agreement shall confer upon the Participant any right to continue as an Eligible Individual of the Company, the Partnership or any Subsidiary, or shall interfere with or restrict in any way the rights of the Company, the Partnership or any Subsidiary, which rights are hereby expressly reserved, to discharge the Participant at any time for any reason whatsoever, with or without cause.

 

Section 4.14         Non-Solicitation.

 

(a)         During the Participant’s active period of employment with or service to the Company or any of its Affiliates and during the two year period immediately following the Participant’s Termination of Service (the “Restricted Period”), the Participant shall not (i) in any capacity, solicit for employment, or recommend that another person solicit for employment, any person who is an active employee of the Company at the time of said solicitation or (ii) on behalf of the Participant, or any other person, firm or corporation, solicit for competitive purposes, directly or indirectly, any of the Company’s customers, clients, tenants, and business or joint venture partners with whom Participant had contact while working for the Company or any of its Affiliates. For purposes of this Section 4.14(a), the term “contact” shall mean engaging in any communication, whether written or oral, with the customer, client, tenant, supplier and business or joint venture partner or representative thereof that results or is reasonably expected to result in a material loss of existing business for the Company or any of its Affiliates. If Participant breaches this Section 4.14(a), the Restricted Period for non-solicitation shall not expire until Participant is out of breach for a period of one (1) year (or, if longer, the end of the Restricted Period). The Participant acknowledges that the provisions of this Section 4.14 are reasonable and shall be in addition to any similar provisions the Participant may have entered into with the Company or any of its Affiliates.

 

(b)         In the event the terms of this Section 4.14 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action.

 

Section 4.15         Miscellaneous.

 

(a)         Incorporation of the Plan. This Agreement is made under and subject to and governed by all of the terms and conditions of the Plan. In the event of any discrepancy or inconsistency between this Agreement and the Plan, the terms and conditions of the Plan shall control. By signing this Agreement, the Participant confirms that he or she has received access to a copy of the Plan and has had an opportunity to review the contents thereof.

 

(b)         Clawback. This Award shall be subject to any clawback or recoupment policy currently in effect or as may be adopted by the Company or the Partnership, in each case, as may be amended from time to time.

 

(c)         Successors and Assigns. Subject to the limitations set forth in this Agreement, this Agreement shall be binding upon, and inure to the benefit of, the executors, administrators, heirs, legal representatives, successors and assigns of the parties hereto, including, without limitation, any business entity that succeeds to the business of the Company or the Partnership.

 

(d)         Entire Agreement and Waivers. This Agreement, together with the Plan and the Operating Agreement, constitutes the entire agreement among the parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties. In the event that the provisions of such other agreement or letter conflict or are inconsistent with the provisions of this Agreement, the provisions of this Agreement shall control. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.

 

(e)         Amendment, Suspension and Termination. The Award may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or the Board, provided, that, except as may otherwise be provided by the Plan, neither the amendment, suspension nor termination of this Agreement shall, without the consent of the Participant, alter or impair any rights or obligations under the Award.

 

(f)         Survival of Representations and Warranties. The representations, warranties and covenants contained in Section 4.3 hereof shall survive the later of the date of execution and delivery of this Agreement or the issuance of the Award.

 

(f)         Severability. If for any reason one or more of the provisions contained in this Agreement or in any other instrument referred to herein, shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, then to the maximum extent permitted by law, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other such instrument.

 

(g)         Titles. The titles, captions or headings of the Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

 

(h)         Counterparts. This Agreement may be executed in any number of counterparts, any of which may be executed and transmitted by facsimile (including, without limitation, transfer by .pdf), and each of which shall be deemed to be an original, but all of which together shall be deemed to be one and the same instrument..

 

(i)         Governing Law. This laws of the State of New York shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

 

(j)         Notices. Notices required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail by certified mail, with postage and fees prepaid, electronic mail or facsimile addressed to the Participant to the Participant’s address, email address or facsimile number shown in the Company records, and to the Company at its principal executive office or the Secretary’s then-current email address or facsimile number.

 

(k)         Electronic Communications. The Company and its Affiliates may choose to deliver any documents related to the Participant’s current or future participation in the Plan by electronic means. By accepting the Award, the Participant consents and agrees to electronic delivery of any Plan documents, proxy materials, annual reports and other related documents, including all materials required to be distributed pursuant to applicable securities laws. The Company has established procedures for an electronic signature system for delivery and acceptance of Plan documents (including documents relating to any programs adopted under the Plan). The Participant consents to such procedures and agrees to participate in the Plan through an online or electronic system established and maintained by the Company, one of its Affiliates or a third party designated by the Company or any of its Affiliates. The Participant agrees that his or her electronic signature is the same as, and shall have the same force and effect as, his or her manual signature. The Participant understands that, unless earlier revoked by the Participant, this consent shall be effective for the duration of the Agreement and that he or she shall have the right at any time to request written copies of any and all materials referred to above.

 

*****

EXHIBIT B

 

PEER GROUP

 

 

 

[______________]

EXHIBIT C

SECTION 83(b) ELECTION

 

This election (this “Election”) is being made under Section 83(b) of the Internal Revenue Code of 1986, as amended, pursuant to Treas. Reg. Section 1.83-2.

 

 

1.

The name, address and taxpayer identification number of the undersigned (the “Taxpayer”) are:

 

Name:                                              __________________________

Address:                                           __________________________

   __________________________

Taxpayer Identification Number:     __________________________

 

 

2.

The following is a description of the property with respect to which this Election is being made:

 

An award of LTIP Units in Kimco Realty OP, LLC, a Delaware limited liability company (the “Partnership”), under the Kimco Realty Corporation Second Amended and Restated 2020 Equity Participation Plan, as amended from time to time (the “Plan”), the Performance-Based LTIP Unit Award Grant Notice (the “Grant Notice”) and the Performance-Based LTIP Unit Award Agreement (the “Award Agreement”) entered into with Taxpayer. Taxpayer was issued [____] LTIP Units in the Partnership (the “Units”).

 

 

3.

The date on which such property was transferred was________, the Date of Grant. The taxable year to which this Election relates is calendar year _____.

 

 

4.

The nature of the restrictions to which such property is subject is as follows:

 

The Units may not be transferred and are subject to forfeiture under the terms of the Plan and the Award Agreement. These restrictions lapse upon the satisfaction of certain conditions contained in such agreements.

 

 

5.

The fair market value of the Units at the time of transfer (determined without regard to any restriction other than restrictions which by their terms will never lapse) is $0.00.

 

 

6.

The aggregate amount paid for the Units by the Taxpayer is $0.00.

 

 

7.

The amount to include in gross income is $0.00.

 

 

8.

A copy of this Election was furnished to the company for which the Taxpayer rendered the service underlying the transfer of such property. The transferee of the property is the person rendering the service underlying the transfer of such property.

 

The undersigned understands that the foregoing election may not be revoked except with the consent of the Commissioner of the Internal Revenue Service.

 

Dated: ______________________, ____                  _____________________________________

 Taxpayer

 

The undersigned spouse of taxpayer joins in this election.

 

 

Dated: ______________________, ____                   _____________________________________                                                                                

  Spouse of Taxpayer

 

 

Exhibit 21.1

 

 

SIGNIFICANT SUBSIDIARIES

 

KRCX WRI HOLDINGS, LLC

87-1304253

 

 

Exhibit 23.1

 

 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (No. 333-269102) and Form S-8 (Nos. 333-238131, 333-85659, 333-167265, and 333-184776) of Kimco Realty Corporation of our report dated February 23, 2024 relating to the financial statements, financial statement schedules and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.

 

 

/s/ PricewaterhouseCoopers LLP
New York, New York
February 23, 2024

 

 

Exhibit 23.2

 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

 

We hereby consent to the incorporation by reference in the Registration Statement on Form S-3 (No. 333-269102) of Kimco Realty OP, LLC of our report dated February 23, 2024 relating to the financial statements and financial statement schedules, which appears in this Form 10-K.

 

 

/s/ PricewaterhouseCoopers LLP
New York, New York
February 23, 2024

 

 

 

 

Exhibit 31.1

 

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

 

I, Conor C. Flynn, certify that:

 

1. I have reviewed this Annual Report on Form 10-K of Kimco Realty Corporation;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

 

Date: February 23, 2024

  /s/ Conor C. Flynn
  Conor C. Flynn
  Chief Executive Officer

 

 

 

Exhibit 31.2

 

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

 

I, Glenn G. Cohen, certify that:

 

1. I have reviewed this Annual Report on Form 10-K of Kimco Realty Corporation;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

 

Date: February 23, 2024

 

  /s/ Glenn G. Cohen
  Glenn G. Cohen
  Chief Financial Officer

 

 

 

Exhibit 31.3

 

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

 

I, Conor C. Flynn, certify that:

 

1. I have reviewed this Annual Report on Form 10-K of Kimco Realty OP, LLC;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

 

Date: February 23, 2024

  /s/ Conor C. Flynn
  Conor C. Flynn
  Chief Executive Officer

 

 

 

Exhibit 31.4

 

 

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

 

I, Glenn G. Cohen, certify that:

 

1. I have reviewed this Annual Report on Form 10-K of Kimco Realty OP, LLC;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

 

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

 

(d)

Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

 

Date: February 23, 2024

  /s/ Glenn G. Cohen
  Glenn G. Cohen
  Chief Financial Officer

 

 

 

Exhibit 32.1

 

Section 1350 Certification

 

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Kimco Realty Corporation (the “Company”) hereby certifies, to such officer’s knowledge, that:

 

 

(i)

the accompanying Annual Report on Form 10-K of the Company for the year ended December 31, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

 

(ii)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

 

Date: February 23, 2024  
 

/s/ Conor C. Flynn

Conor C. Flynn

Chief Executive Officer

 

 

 

Exhibit 32.2

 

Section 1350 Certification

 

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Kimco Realty Corporation (the “Company”) hereby certifies, to such officer’s knowledge, that:

 

 

(i)

the accompanying Annual Report on Form 10-K of the Company for the year ended December 31, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

 

(ii)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

 

Date: February 23, 2024  
 

/s/ Glenn G. Cohen

Glenn G. Cohen

Chief Financial Officer

 

 

 

 

Exhibit 32.3

 

Section 1350 Certification

 

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Kimco Realty OP, LLC (“Kimco OP”) hereby certifies, to such officer’s knowledge, that:

 

 

(i)

the accompanying Annual Report on Form 10-K of Kimco OP for the year ended December 31, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

 

(ii)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Kimco OP.

 

 

 

 

Date: February 23, 2024  
 

/s/ Conor C. Flynn

Conor C. Flynn

Chief Executive Officer

 

 

 

Exhibit 32.4

 

Section 1350 Certification

 

Pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Kimco Realty OP, LLC (“Kimco OP”) hereby certifies, to such officer’s knowledge, that:

 

 

(i)

the accompanying Annual Report on Form 10-K of Kimco OP for the year ended December 31, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

 

(ii)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Kimco OP.

 

 

 

 

Date: February 23, 2024  
 

/s/ Glenn G. Cohen

Glenn G. Cohen

Chief Financial Officer

 

 

Exhibit 97.1

 

KIMCO REALTY CORPORATION
POLICY FOR RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION

 

Kimco Realty Corporation (the “Company”) has adopted this Policy for Recovery of Erroneously Awarded Compensation (the “Policy”), effective as of October 2, 2023 (the “Effective Date”), which Policy is an amendment and restatement of the Company’s Clawback Policy, dated as of March 14, 2013 (the “Prior Policy”). Capitalized terms used in this Policy but not otherwise defined herein are defined in Section 11.

 

 

1.

Persons Subject to Policy

 

This Policy shall apply to current and former Officers.

 

 

2.

Compensation Subject to Policy

 

This Policy shall apply to Incentive-Based Compensation received on or after the Effective Date. For purposes of this Policy, the date on which Incentive-Based Compensation is “received” shall be determined under the Applicable Rules, which generally provide that Incentive-Based Compensation is “received” in the Company’s fiscal period during which the relevant Financial Reporting Measure is attained or satisfied, without regard to whether the grant, vesting or payment of the Incentive-Based Compensation occurs after the end of that period.

 

 

3.

Recovery of Compensation

 

In the event that the Company is required to prepare a Restatement, the Company shall recover, reasonably promptly and in accordance with Section 4 below, the portion of any Incentive-Based Compensation that is Erroneously Awarded Compensation, unless the Committee has determined that recovery from the relevant current or former Officer would be Impracticable. Recovery shall be required in accordance with the preceding sentence regardless of whether the applicable Officer engaged in misconduct or otherwise caused or contributed to the requirement for the Restatement and regardless of whether or when restated financial statements are filed by the Company. For clarity, the recovery of Erroneously Awarded Compensation under this Policy will not give rise to any Officer’s right to voluntarily terminate employment for “good reason” or due to a “constructive termination” (or any similar term of like effect) under any plan, program or policy of or agreement with the Company or any of its affiliates.

 

 

4.

Manner of Recovery; Limitation on Duplicative Recovery

 

The Committee shall, in its sole discretion, determine the manner of recovery of any Erroneously Awarded Compensation, which may include, without limitation, reduction or cancellation by the Company or an affiliate of the Company of Incentive-Based Compensation or Erroneously Awarded Compensation, reimbursement or repayment by any person subject to this Policy, and, to the extent permitted by law, an offset of the Erroneously Awarded Compensation against other compensation payable by the Company or an affiliate of the Company to such person. Notwithstanding the foregoing, unless otherwise prohibited by the Applicable Rules, to the extent this Policy provides for recovery of Erroneously Awarded Compensation already recovered by the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 or Other Recovery Arrangements, the amount of Erroneously Awarded Compensation already recovered by the Company from the recipient of such Erroneously Awarded Compensation may be credited to the amount of Erroneously Awarded Compensation required to be recovered pursuant to this Policy from such person.

 

 

5.

Administration

 

This Policy shall be administered, interpreted and construed by the Committee, which is authorized to make all determinations necessary, appropriate or advisable for such purpose. The Board may re-vest in itself the authority to administer, interpret and construe this Policy in accordance with applicable law, and in such event references herein to the “Committee” shall be deemed to be references to the Board. Subject to any permitted review by the applicable national securities exchange or association pursuant to the Applicable Rules, all determinations and decisions made by the Committee pursuant to the provisions of this Policy shall be final, conclusive and binding on all persons, including the Company and its affiliates, stockholders and employees. The Committee may delegate administrative duties with respect to this Policy to one or more directors or employees of the Company, as permitted under applicable law, including any Applicable Rules.

 

 

6.

Interpretation

 

This Policy shall be interpreted and applied in a manner that is consistent with the requirements of the Applicable Rules, and to the extent this Policy is inconsistent with such Applicable Rules, it shall be deemed amended to the minimum extent necessary to ensure compliance therewith.

 

 

7.

No Indemnification; No Liability

 

The Company shall not indemnify or insure any person against the loss of any Erroneously Awarded Compensation pursuant to this Policy, nor shall the Company directly or indirectly pay or reimburse any person for any premiums for third-party insurance policies that such person may elect to purchase to fund such person’s potential obligations under this Policy. None of the Company, an affiliate of the Company or any member of the Committee or the Board shall have any liability to any person as a result of actions taken under this Policy.

 

 

8.

Application; Enforceability

 

Effective as of the Effective Date, this Policy will supersede the Prior Policy in all respects; provided that, notwithstanding the foregoing, the Prior Policy will remain in effect with respect to periods prior to the Effective Date that are not covered by this Policy. Except as otherwise determined by the Committee or the Board, the adoption of this Policy does not limit, and is intended to apply in addition to, any Other Recovery Arrangements. Subject to Section 4, the remedy specified in this Policy shall not be exclusive and shall be in addition to every other right or remedy at law or in equity that may be available to the Company or an affiliate of the Company or is otherwise required by applicable law and regulations.

 

 

9.

Severability

 

The provisions in this Policy are intended to be applied to the fullest extent of the law; provided, however, to the extent that any provision of this Policy is found to be unenforceable or invalid under any applicable law, such provision will be applied to the maximum extent permitted, and shall automatically be deemed amended in a manner consistent with its objectives to the extent necessary to conform to any limitations required under applicable law.

 

 

10.

Amendment and Termination

 

The Board or the Committee may amend, modify or terminate this Policy in whole or in part at any time and from time to time in its sole discretion. This Policy will terminate automatically when the Company does not have a class of securities listed on a national securities exchange or association.

 

 

11.

Definitions

 

“Applicable Rules” means Section 10D of the Exchange Act, Rule 10D-1 promulgated thereunder, the listing rules of the national securities exchange or association on which the Company’s securities are listed, and any applicable rules, standards or other guidance adopted by the Securities and Exchange Commission or any national securities exchange or association on which the Company’s securities are listed.

 

“Board” means the Board of Directors of the Company.

 

“Committee” means the Executive Compensation Committee of the Board or, in the absence of such a committee, a majority of the independent directors serving on the Board.

 

“Erroneously Awarded Compensation” means the amount of Incentive-Based Compensation received by a current or former Officer that exceeds the amount of Incentive-Based Compensation that would have been received by such current or former Officer based on a restated Financial Reporting Measure, as determined on a pre-tax basis in accordance with the Applicable Rules.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Financial Reporting Measure” means any measure determined and presented in accordance with the accounting principles used in preparing the Company’s financial statements, and any measures derived wholly or in part from such measures, including GAAP, IFRS and non-GAAP/IFRS financial measures, as well as stock price and total stockholder return.

 

“GAAP” means United States generally accepted accounting principles.

 

“IFRS” means international financial reporting standards as adopted by the International Accounting Standards Board.

 

“Impracticable” means (a) the direct expense paid to third parties to assist in enforcing recovery would exceed the Erroneously Awarded Compensation; provided that the Company has (i) made reasonable attempt(s) to recover the Erroneously Awarded Compensation, (ii) documented such reasonable attempt(s) and (iii) provided such documentation to the relevant listing exchange or association, (b) the recovery would violate the Company’s home country laws adopted prior to November 28, 2022 pursuant to an opinion of home country counsel; provided that the Company has (i) obtained an opinion of home country counsel, acceptable to the relevant listing exchange or association, that recovery would result in such a violation and (ii) provided such opinion to the relevant listing exchange or association, or (c) recovery would likely cause an otherwise tax-qualified retirement plan, under which benefits are broadly available to employees of the Company, to fail to meet the requirements of 26 U.S.C. 401(a)(13) or 26 U.S.C. 411(a) and the regulations thereunder.

 

“Incentive-Based Compensation” means, with respect to a Restatement, any compensation that is granted, earned, or vested based wholly or in part upon the attainment of one or more Financial Reporting Measures and received by a person: (a) after such person began service as an Officer; (b) who served as an Officer at any time during the performance period for that compensation; (c) while the Company has a class of securities listed on a national securities exchange or association; and (d) during the applicable Three-Year Period.

 

“Officer” means each person who the Company determines serves as a Company officer, as defined in Section 16 of the Securities Exchange Act of 1934, as amended.

 

“Other Recovery Arrangements means any clawback, recoupment, forfeiture or similar policies or provisions of the Company or its affiliates, including any such policies or provisions of such effect contained in any employment agreement, bonus plan, incentive plan, equity-based plan or award agreement thereunder or similar plan, program or agreement of the Company or an affiliate or required under applicable law.

 

“Restatement” means an accounting restatement to correct the Company’s material noncompliance with any financial reporting requirement under securities laws, including restatements that correct an error in previously issued financial statements (a) that is material to the previously issued financial statements or (b) that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period.

 

“Three-Year Period” means, with respect to a Restatement, the three completed fiscal years immediately preceding the date that the Board, a committee of the Board, or the officer or officers of the Company authorized to take such action if Board action is not required, concludes, or reasonably should have concluded, that the Company is required to prepare such Restatement, or, if earlier, the date on which a court, regulator or other legally authorized body directs the Company to prepare such Restatement. The “Three-Year Period” also includes any transition period (that results from a change in the Company’s fiscal year) within or immediately following the three completed fiscal years identified in the preceding sentence. However, a transition period between the last day of the Company’s previous fiscal year end and the first day of its new fiscal year that comprises a period of nine to 12 months shall be deemed a completed fiscal year.

 

 

Exhibit 99.1

 

                       

MAJOR LEASES

 

GROCER

 

LOCATION

BUILDING NAME

PORTFOLIO

YEAR DEVELOPED OR ACQUIRED

 

LEASABLE AREA (SQ.FT.)

   

PERCENT LEASED (1)

 

TENANT NAME

 

GLA

 

TENANT NAME

 

GLA

 

TENANT NAME

 

GLA

 

ARIZONA

                                                   

CHANDLER

RAINTREE RANCH CENTER

 

2021

    129,822       98.5  

MY SISTER'S CLOSET

    15,533            

WHOLE FOODS MARKET

    60,000  

MESA

MESA RIVERVIEW

 

2005

    1,104,912       92.7  

BASS PRO SHOPS OUTDOOR WORLD

    170,000  

HOME DEPOT

    102,589  

WALMART

    208,000  

MESA

RED MOUNTAIN GATEWAY

 

2021

    75,128       98.9  

BURLINGTON

    29,781  

ULTA

    10,000  

TARGET (4)

    125,527  

MESA

MONTE VISTA VILLAGE CENTER

 

2021

    45,751       97.2  

PETER PIPER PIZZA

    10,000                      

ORO VALLEY

ENTRADA DE ORO PLAZA

 

2021

    88,665       91.0                      

WALMART NEIGHBORHOOD MARKET

    45,163  

PEORIA

NORTH VALLEY S.C.

 

2011

    177,078       98.4  

URBAN AIR

    53,984  

JOANN

    40,734  

TARGET (4)

    151,457  

PHOENIX

METRO SQUARE

 

1998

    218,608       100.0  

BURLINGTON

    98,054  

MICHAELS

    23,190            

PHOENIX

PLAZA DEL SOL

 

1998

    226,727       100.0  

COSTCO

    141,659  

ROSS DRESS FOR LESS

    24,390  

RANCH MARKET (4)

    103,909  

PHOENIX

PLAZA @ MOUNTAINSIDE

 

1997

    131,621       99.3                      

SAFEWAY

    62,573  

PHOENIX

VILLAGE CROSSROADS

 

2011

    184,292       98.1  

MICHAELS

    25,666            

WALMART

    110,627  

PHOENIX

CHRISTOWN SPECTRUM

 

2015

    837,864       96.9  

AMERICAN FURNITURE WAREHOUSE

    149,609  

HARKINS THEATRES

    62,322  

WALMART

    251,361  

PHOENIX

CAMELBACK VILLAGE SQUARE

 

2021

    132,731       100.0  

SKY ZONE

    22,403            

FRY'S FOOD & DRUG STORE

    82,838  

PHOENIX

SQUAW PEAK PLAZA

 

2021

    61,102       100.0                      

SPROUTS FARMERS MARKET

    32,725  

PHOENIX

MADISON VILLAGE MARKETPLACE

 

2021

    90,264       100.0                      

SAFEWAY

    49,364  

SCOTTSDALE

FOUNTAIN PLAZA

 

2021

    112,055       100.0  

DOLLAR TREE

    12,000            

FRY'S FOOD & DRUG STORE

    63,805  

SCOTTSDALE

SCOTTSDALE HORIZON

 

2021

    153,739       97.4  

CVS

    16,853            

SAFEWAY

    55,255  

SCOTTSDALE

DESERT VILLAGE

 

2021

    101,685       98.7  

CVS

    16,856  

MY SISTER'S CLOSET

    12,114  

AJ’S FINE FOOD

    26,381  

SCOTTSDALE

SCOTTSDALE WATERFRONT

 

2021

    93,334       100.0  

MOUNTAINSIDE FITNESS EXECUTIVE CLUB

    15,238  

URBAN OUTFITTERS

    11,144            

SCOTTSDALE

CAMELBACK MILLER PLAZA

 

2021

    144,427       98.5  

TJ MAXX

    34,255  

PETSMART

    28,033  

SPROUTS FARMERS MARKET

    28,500  

SCOTTSDALE

THE SUMMIT AT SCOTTSDALE

OIP

2021

    190,493       99.3  

OFFICEMAX

    15,147  

CVS

    13,813  

SAFEWAY

    64,500  

SUN CITY

BELL CAMINO CENTER

 

2012

    107,680       98.6  

CVS

    24,519            

SAFEWAY

    45,121  

TEMPE

COLLEGE PARK S.C. - TEMPE

 

2011

    62,285       33.7                                

TEMPE

BROADWAY MARKETPLACE

 

2021

    82,507       98.4  

OFFICEMAX

    29,331  

ACE HARDWARE

    16,235            

TEMPE

PUEBLO ANOZIRA

 

2021

    156,441       96.6  

PETCO

    15,000  

DOLLAR TREE

    11,524  

FRY'S FOOD & DRUG STORE

    61,143  

TUCSON

SHOPPES AT BEARS PATH

 

2021

    43,838       81.3                                

TUCSON

MADERA VILLAGE

 

2021

    96,697       95.8  

WORKOUT ANYTIME

    14,000  

DOLLAR TREE

    10,800  

SAFEWAY

    40,723  

CALIFORNIA

            -                                

ALHAMBRA

COSTCO PLAZA - ALHAMBRA

 

1998

    182,073       96.6  

JOANN

    13,472            

COSTCO

    157,019  

ANAHEIM

ANAHEIM PLAZA

 

2021

    342,245       98.5  

CRUNCH FITNESS

    42,250  

ROSS DRESS FOR LESS

    27,200  

EL SUPER/SMART & FINAL

    84,087  

ANAHEIM

BROOKHURST CENTER

 

2016

    154,465       87.0  

BLINK FITNESS

    16,310  

U.S. POSTAL SERVICE

    11,156  

RALPH'S

    45,000  

ANAHEIM

SYCAMORE PLAZA

PRU

2006

    105,338       100.0  

HARBOR FREIGHT TOOLS

    17,459  

DOLLAR TREE

    10,797  

STATER BROTHERS

    37,440  

BELLFLOWER

LAKEWOOD PLAZA

 

2014

    113,233       92.3  

BEST BUY

    64,039  

PLANET FITNESS

    29,025            

BELLFLOWER

CENTERWOOD PLAZA

 

2021

    75,486       100.0  

DOLLAR TREE

    10,000            

SUPERIOR GROCERS

    30,800  

BENICIA

SOUTHAMPTON CENTER

 

2021

    162,026       95.3  

ACE HARDWARE

    13,923            

RALEY'S

    60,000  

CARLSBAD

NORTH COUNTY PLAZA

 

2014

    158,431       68.8  

MARSHALLS

    27,000  

DOLLAR TREE

    16,610            

CARMICHAEL

MADISON PLAZA

 

1998

    212,754       100.0  

HOME DEPOT

    110,861  

ROSS DRESS FOR LESS

    21,890  

WALMART NEIGHBORHOOD MARKET

    44,257  

CASTRO VALLEY

580 MARKET PLACE

 

2021

    100,097       100.0  

24 HOUR FITNESS

    14,335            

SAFEWAY

    36,110  

CHICO

CHICO CROSSROADS

 

2008

    244,950       84.8  

EVANS FURNITURE GALLERIES

    38,250  

BARNES & NOBLE

    24,894  

FOOD MAXX

    54,239  

CHINO HILLS

LABAND VILLAGE S.C.

 

2008

    73,352       98.5                      

STATER BROTHERS

    43,235  

CHINO HILLS

CHINO HILLS MARKETPLACE

 

2021

    310,612       96.0  

24 HOUR FITNESS

    35,000  

RITE AID

    23,830  

SMART & FINAL

    47,616  

COLMA

280 METRO CENTER

 

2015

    227,829       94.4  

MARSHALLS

    32,000  

ASHLEY FURNITURE HOMESTORE

    30,809            

CORONA

CORONA HILLS PLAZA

 

1998

    489,151       99.2  

COSTCO

    114,112  

HOME DEPOT

    100,000  

99 RANCH MARKET (4)

    42,630  

COVINA

COVINA TOWN SQUARE

KIR

2000

    277,782       99.5  

LOWE'S HOME CENTER

    111,348  

SKYZONE

    25,608  

ALDI

    17,508  

CUPERTINO

CUPERTINO VILLAGE (3)

 

2006

    126,296       88.5                      

99 RANCH MARKET

    29,657  

DALY CITY

WESTLAKE S.C.

 

2002

    555,171       92.0  

HOME DEPOT

    109,000  

ROSS DRESS FOR LESS

    39,050  

SAFEWAY

    57,817  

DUBLIN

DUBLIN RETAIL CENTER

PRU

2006

    155,028       99.6  

MARSHALLS

    32,000  

ROSS DRESS FOR LESS

    31,060  

H MART

    35,787  

EL CAJON

RANCHO SAN DIEGO

CPP

2010

    98,316       91.6  

RITE AID

    27,642  

ROSS DRESS FOR LESS

    24,000            

ELK GROVE

BEL AIR VILLAGE S.C.

PRU

2006

    137,035       97.9  

24 HOUR FITNESS

    22,000            

BEL AIR MARKET

    56,435  

ENCINITAS

EL CAMINO PROMENADE

 

2021

    128,740       97.8  

TJ MAXX

    26,943  

BURLINGTON

    24,190            

ESCONDIDO

DEL NORTE PLAZA

PRU

2006

    223,203       94.7  

LA FITNESS

    40,000  

ROSS DRESS FOR LESS

    24,729  

VONS

    40,000  

FREEDOM

FREEDOM CENTRE

 

2021

    150,865       97.7  

BIG LOTS

    34,169  

RITE AID

    21,440  

SAFEWAY

    55,747  

FREMONT

FREMONT HUB

PRU

2007

    504,666       82.6  

MARSHALLS

    30,028  

ROSS DRESS FOR LESS

    30,000  

SAFEWAY

    54,741  

FREMONT

BROOKVALE S.C.

 

2021

    129,916       100.0  

CVS

    24,437  

PLANET FITNESS

    24,145  

SAVE MART

    48,000  

FREMONT

GATEWAY PLAZA

 

2021

    192,104       81.9  

CINELOUNGE FREMONT 7

    25,988            

RALEY'S

    62,418  

GARDENA

GARDENA GATEWAY CENTER

PRU

2006

    65,987       100.0  

DAISO JAPAN

    19,300            

99 RANCH MARKET

    22,000  

HAYWARD

CREEKSIDE CENTER

 

2016

    80,911       90.7  

99 CENTS ONLY

    29,300            

LAS MONTANAS SUPERMARKET

    23,334  

HUNTINGTON BEACH

MARINA VILLAGE

 

2006

    148,805       97.8  

CVS

    20,120  

CRUNCH FITNESS

    16,609  

VONS

    40,800  

LA MIRADA

LA MIRADA THEATER CENTER

 

1998

    264,513       97.7  

UFC GYM

    45,388  

U.S. POSTAL SERVICE

    26,577  

ALBERTSONS (4)

    47,199  

LA VERNE

LA VERNE TOWNE CENTER

 

2014

    226,872       95.3  

MARSHALLS

    27,764  

STAPLES

    15,661  

TARGET

    114,732  

LINCOLN

LINCOLN HILLS TOWN CENTER

 

2015

    116,409       95.7  

CVS

    23,077            

SAFEWAY

    55,342  

LIVERMORE

PLAZA 580 S.C.

PRU

2006

    104,165       95.2  

ROSS DRESS FOR LESS

    24,000  

DOLLAR TREE

    12,061  

TARGET (4)

    112,739  

LOS ANGELES

KENNETH HAHN PLAZA

 

2010

    151,160       99.4  

DD'S DISCOUNTS

    22,041  

RITE AID

    18,160  

RALPH'S/FOOD 4 LESS

    38,950  

LOS ANGELES

VERMONT-SLAUSON S.C.

PRU

2006

    161,900       99.1  

ROSS DRESS FOR LESS

    29,356  

CVS

    25,487  

SUPERIOR GROCERS

    34,420  

LOS ANGELES

8000 SUNSET STRIP S.C.

 

2021

    168,554       84.2  

CRUNCH FITNESS

    33,329  

LANDMARK THEATRES

    24,693  

TRADER JOE'S

    13,860  

MONTEBELLO

MONTEBELLO TOWN SQUARE

KIR

2000

    251,489       100.0  

ALTAMED

    105,000  

BIG LOTS

    46,270            

NAPA

SOUTH NAPA MARKET PLACE

 

2006

    348,604       100.0  

TARGET

    116,000  

HOME DEPOT

    100,238  

RALEY'S

    60,890  

NORTHRIDGE

PLAZA DI NORTHRIDGE

 

2005

    163,941       86.0  

DSW SHOE WAREHOUSE

    32,400  

BURLINGTON

    24,053  

SUPER KING MARKET

    39,348  

NOVATO

NOVATO FAIR S.C.

 

2009

    133,485       97.6  

RITE AID

    24,769  

DOLLAR TREE

    15,708  

SAFEWAY

    51,199  

OCEANSIDE

EL CAMINO NORTH

PRU

2006

    353,004       94.4  

AMERICAN FREIGHT - APPLIANCE FURNITURE MATTRESS

    38,902  

ROSS DRESS FOR LESS

    30,000            

OCEANSIDE

FIRE MOUNTAIN CENTER

PRU

2006

    93,810       97.2  

LAMPS PLUS

    11,000            

TRADER JOE'S

    12,881  

PACIFICA

LINDA MAR S.C.

 

2014

    168,231       94.0  

ROSS DRESS FOR LESS

    24,246  

RITE AID

    19,085  

SAFEWAY

    45,892  

POWAY

POWAY CITY CENTRE (3)

 

2005

    99,135       92.2  

HOMEGOODS

    26,210  

ROSS DRESS FOR LESS

    21,830            

REDWOOD CITY

REDWOOD CITY PLAZA

 

2009

    45,870       100.0  

OUTDOOR SUPPLY HARDWARE

    42,509            

COSTCO (4)

    132,067  

ROSEVILLE

STANFORD RANCH

 

2014

    188,493       97.4  

DICK'S SPORTING GOODS

    55,377  

ROSS DRESS FOR LESS

    27,471  

SPROUTS FARMERS MARKET (2)

    36,041  

ROSEVILLE

CROCKER RANCH

 

2015

    81,171       94.0                      

SAFEWAY

    55,146  

SAN DIEGO

VISTA BALBOA CENTER

KIR

2000

    117,410       93.9  

24 HOUR FITNESS

    66,851            

H MART

    38,359  

SAN DIEGO

MORENA PLAZA

CPP

2010

    412,674       100.0  

PRICE SELF STORAGE

    120,962  

COSTCO REGIONAL OFFICE

    50,000  

COSTCO

    153,095  

SAN DIEGO

CARMEL MOUNTAIN PLAZA

 

2009

    35,000       100.0  

COSTCO

    10,600            

COSTCO (4)

    133,087  

SAN DIEGO

LOMA SQUARE

PRU

2006

    205,853       96.0  

TJ MAXX

    31,152  

HOMEGOODS

    30,619  

SPROUTS FARMERS MARKET

    19,225  

SAN DIEGO

BLACK MOUNTAIN VILLAGE

 

2007

    48,169       100.0                      

NAMASTE PLAZA INDIAN SUPERMARKET

    10,439  

SAN DIEGO

RANCHO PENASQUITOS TOWNE CTR.

 

2015

    156,775       94.8                      

VONS

    39,981  

SAN DIEGO

CITY HEIGHTS CENTER

 

2012

    108,741       94.8                      

ALBERTSONS

    66,284  

SAN DIEGO

FASHION VALLEY S.C.

OJV

2007

    225,919       100.0  

NORDSTROM

    225,919                      

SAN JOSE

STEVENS CREEK CENTRAL S.C.

 

2021

    210,666       100.0  

MARSHALLS

    36,139  

TOTAL WINE & MORE

    25,653  

SAFEWAY

    59,139  

SAN JOSE

CAMBRIAN PARK PLAZA (3)

 

2021

    58,939       100.0  

DOLLAR TREE

    30,000                      

SAN JOSE

SILVER CREEK PLAZA

 

2021

    131,821       99.8  

WALGREENS

    16,000            

SPROUTS FARMERS MARKET

    30,130  

SAN LEANDRO

FASHION FAIRE PLACE

PRU

2006

    95,255       94.9  

ROSS DRESS FOR LESS

    26,706  

MICHAELS

    19,020            

SAN LEANDRO

GREENHOUSE MARKETPLACE

 

2021

    142,598       82.5  

JOANN

    25,000  

99 CENTS ONLY

    23,700  

SAFEWAY (4)

    44,692  

SAN MARCOS

RANCHO SAN MARCOS VILLAGE (3)

 

2021

    111,083       96.9  

PLANET FITNESS

    24,100  

DOLLAR TREE

    12,620  

ALDI

    21,687  

SAN MARCOS

SAN MARCOS PLAZA

 

2021

    34,880       79.0                      

ALBERTSONS (4)

    44,296  

SAN RAMON

MAGNOLIA SQUARE S.C.

KIR

1999

    46,147       94.7  

ULTA

    10,709  

PETCO

    10,000            

SANTA ANA

HOME DEPOT PLAZA - SANTA ANA

 

1998

    134,400       100.0  

HOME DEPOT

    134,400                      

SANTA ROSA

FULTON MARKET PLACE

 

2005

    102,478       91.1  

ACE HARDWARE

    12,100            

RALEY'S

    60,913  

SANTA ROSA

STONY POINT PLAZA

 

2021

    194,569       99.5  

ROSS DRESS FOR LESS

    28,106  

GOODWILL INDUSTRIES

    27,895  

FOOD MAXX

    57,897  

SANTEE

SANTEE TROLLEY SQUARE

 

2015

    312,754       97.7  

24 HOUR FITNESS

    36,000  

MARKET BY MACYS

    30,000  

TARGET (4)

    126,587  

TEMECULA

PALM PLAZA S.C.

KIR

1999

    342,000       90.3  

AT HOME

    86,479  

TEMEKU CINEMAS

    29,650  

FOOD 4 LESS

    52,640  

TEMECULA

REDHAWK TOWNE CENTER

CPP

2010

    519,018       100.0  

WALMART

    221,639  

KOHL'S

    88,728  

SPROUTS FARMERS MARKET

    25,647  

TORRANCE

TORRANCE PROMENADE

KIR

2000

    270,749       96.5  

BURLINGTON

    43,595  

UFC GYM

    42,575  

TRADER JOE'S

    10,004  

TRUCKEE

TRUCKEE CROSSROADS

 

2006

    26,553       90.7                      

SAVE MART (4)

    29,572  

TRUCKEE

GATEWAY AT DONNER PASS

 

2015

    81,449       90.4                      

SAFEWAY

    40,300  

TUSTIN

LARWIN SQUARE S.C.

 

2006

    193,415       92.7  

RITE AID

    19,072  

CRUNCH FITNESS

    16,520  

HAGGEN (2)

    41,430  

TUSTIN

TUSTIN HEIGHTS S.C.

 

2006

    137,287       100.0  

MICHAELS

    22,364  

PETCO

    11,550  

RALPH'S

    36,400  

TUSTIN

THE DISTRICT @ TUSTIN LEGACY

OJV

2018

    687,683       93.7  

TARGET

    134,639  

AMC THEATRES

    68,159  

WHOLE FOODS MARKET

    60,550  

UPLAND

MOUNTAIN SQUARE

PRU

2006

    273,149       98.1  

HOME DEPOT

    98,064  

HOBBY LOBBY

    63,748            

VALENCIA

GRANARY SQUARE

PRU

2006

    143,070       87.7  

CVS

    25,500            

RALPH'S

    45,579  

WESTMINSTER

PAVILIONS PLACE (3)

PRU

2006

    200,449       98.1  

HOWARD'S APPLIANCES & FLAT SCR

    17,962            

H MART

    69,445  

WESTMINSTER

WESTMINSTER CENTER

 

2021

    417,567       99.2  

HOME DEPOT

    102,220  

REGENCY THEATRES

    35,000  

ALBERTSONS

    50,000  

WHITTIER

WHITTWOOD TOWN CENTER

 

2017

    681,420       98.4  

TARGET

    141,900  

SEARS

    137,985  

VONS

    51,011  

WINDSOR

LAKEWOOD VILLAGE

 

2014

    126,208       94.0  

CVS

    19,950            

SAFEWAY

    52,610  

COLORADO

                                                   

ARVADA

NORTHRIDGE S.C. – ARVADA

 

2013

    144,315       89.0                      

TARGET (4)

    128,000  

AURORA

VILLAGE ON THE PARK

 

1998

    158,303       93.1  

ROSS DRESS FOR LESS

    30,187  

TJ MAXX

    28,140            

AURORA

QUINCY PLACE S.C.

 

1998

    42,977       95.1                      

KING SOOPERS (4)

    56,959  

AURORA

EAST BANK S.C. (3)

 

1998

    59,026       94.6                                

DENVER

WEST 38TH STREET S.C.

 

1998

    18,405       100.0                      

LOCAVORE

    18,405  

DENVER

LOWRY TOWN CENTER

 

2021

    62,603       98.1                      

SAFEWAY (4)

    53,208  

EDGEWATER

EDGEWATER MARKETPLACE

 

2021

    144,553       100.0  

ACE HARDWARE

    18,800            

KING SOOPERS

    76,560  

ENGLEWOOD

ENGLEWOOD PLAZA (3)

 

1998

    18,440       100.0                                

GREELEY

GREELEY COMMONS

 

2012

    138,818       93.8  

BURLINGTON

    27,974  

MICHAELS

    21,323  

SPROUTS FARMERS MARKET

    21,236  

HIGHLANDS RANCH

HIGHLANDS RANCH S.C.

 

2011

    208,092       94.8  

ACE HARDWARE

    33,450  

TJ MAXX

    30,000  

KING SOOPERS (4)

    77,696  

LAKEWOOD

HERITAGE WEST S.C.

 

1998

    82,581       96.8                      

SAFEWAY

    49,788  

LITTLETON

MARKET AT SOUTHPARK

 

2011

    191,268       100.0  

PLANET FITNESS

    25,267  

ARC THRIFT STORES

    19,831  

KING SOOPERS

    64,532  

PARKER

CROSSING AT STONEGATE

 

2021

    120,502       100.0                      

KING SOOPERS

    65,972  

SHERIDAN

RIVER POINT AT SHERIDAN

 

2021

    333,368       98.9  

REGAL CINEMAS

    55,455  

CONN'S HOMEPLUS

    42,485  

COSTCO (4)

    152,000  

CONNECTICUT

                                                   

BRANFORD

BRANHAVEN PLAZA

KIR

2000

    190,738       93.3  

KOHL'S

    86,830  

FIVE BELOW

    10,284  

BIG Y

    46,669  

DANBURY

NEWTOWN S.C.

 

2014

    136,209       100.0  

MARSHALLS

    30,954            

WALMART

    105,255  

FARMINGTON

WEST FARM S.C.

 

1998

    210,305       100.0  

BURLINGTON

    51,240  

NORDSTROM RACK

    35,834            

HAMDEN

HAMDEN MART

 

2016

    345,679       96.8  

WALMART

    89,750  

BOB’S STORES

    49,133  

ALDI

    19,927  

NORTH HAVEN

HOME DEPOT PLAZA - NORTH HAVEN

 

1998

    338,666       99.4  

HOME DEPOT

    111,500  

DICK'S SPORTING GOODS

    48,265  

BJ'S WHOLESALE CLUB

    109,920  

WILTON

WILTON RIVER PARK S.C.

 

2012

    131,630       69.3                      

STOP & SHOP

    46,764  

DELAWARE

                                                   

WILMINGTON

BRANDYWINE COMMONS II

 

2014

    165,792       100.0  

BURLINGTON

    42,443  

RAYMOUR & FLANIGAN FURNITURE

    36,000  

SHOPRITE

    58,236  

FLORIDA

                                                   

ALTAMONTE SPRINGS

RENAISSANCE CENTRE

 

1998

    192,090       100.0  

PGA TOUR SUPERSTORE

    38,292  

DSW SHOE WAREHOUSE

    23,990  

WHOLE FOODS MARKET

    40,000  

BOCA RATON

BOCA LYONS PLAZA

 

2021

    117,597       99.0  

ROSS DRESS FOR LESS

    33,575  

DOLLAR TREE

    10,000  

AROMA MARKET

    16,484  

BOCA RATON

CAMINO SQUARE

 

1967

    0                                        

BOYNTON BEACH

BOYNTON WEST S.C.

KIR

1999

    195,786       100.0  

BEALLS

    103,479  

BURLINGTON

    51,195            

BRANDON

PLAZA AT BRANDON TOWN CENTER

KIR

2001

    143,785       100.0  

BOWLERO

    40,000  

ROSS DRESS FOR LESS

    25,106  

TARGET (4)

    107,648  

CAPE CORAL

SHOPS AT SANTA BARBARA

 

2015

    42,030       100.0                                

CAPE CORAL

CORAL POINTE S.C.

 

2015

    125,108       98.4  

ROSS DRESS FOR LESS

    32,265  

STAPLES

    20,347  

PUBLIX

    44,684  

CLEARWATER

CURLEW CROSSING S.C.

 

2005

    112,188       97.2  

JOANN

    49,865  

STAPLES

    17,055            

CLEARWATER

COUNTRYSIDE CENTRE

 

2021

    248,348       94.9  

DICK'S SPORTING GOODS

    54,563  

TJ MAXX

    30,107            

CLEARWATER

SUNSET POINT 19 S.C.

 

2021

    267,819       99.9  

HOBBY LOBBY

    55,000  

SCANDINAVIAN DESIGNS

    33,330  

SPROUTS FARMERS MARKET

    31,998  

CLERMONT

CLERMONT LANDING

OJV

2021

    178,301       96.6  

ROSS DRESS FOR LESS

    30,187  

TJ MAXX

    26,000            

COOPER CITY

EMBASSY LAKES

 

2021

    131,751       80.2  

DOLLAR TREE

    11,126            

BRAVO SUPERMARKET

    46,328  

CORAL SPRINGS

CORAL SQUARE PROMENADE

 

1994

    55,089       100.0  

BIG LOTS

    33,517                      

CORAL SPRINGS

MAPLEWOOD PLAZA

 

1997

    86,342       100.0  

TJ MAXX

    29,500  

DISCOVERY CLOTHING CO.

    15,000            

DANIA BEACH

DANIA POINTE

 

2016

    740,714       86.2  

BRANDSMART USA

    91,347  

REGAL CINEMAS

    63,531  

SPROUTS FARMERS MARKET

    29,645  

DEERFIELD BEACH

SHOPPES AT DEERFIELD

 

2021

    409,530       89.6  

BURLINGTON

    35,004  

TJ MAXX

    30,481  

PUBLIX

    42,112  

FORT LAUDERDALE

CYPRESS CREEK STATION

 

2009

    229,034       83.6  

REGAL CINEMAS

    52,936  

LA FITNESS

    48,479            

HOLLYWOOD

OAKWOOD PLAZA NORTH

 

2016

    898,913       98.5  

HOME DEPOT

    142,280  

BJ'S WHOLESALE CLUB

    120,251  

NET COST MARKET

    24,950  

HOLLYWOOD

HOLLYWOOD HILLS PLAZA

OIP

2021

    377,543       99.2  

TARGET

    119,454  

CHEWY.COM

    100,928  

PUBLIX

    42,112  

HOMESTEAD

HOMESTEAD TOWNE SQUARE

OJV

1972

    205,614       100.0  

MARSHALLS

    29,575  

HOMEGOODS

    23,500  

PUBLIX

    56,077  

HOMESTEAD

HOMESTEAD-WACHTEL LAND LEASE

 

1972

    3,600       100.0                      

PUBLIX (4)

    56,077  

JACKSONVILLE

RIVERPLACE S.C.

 

2010

    257,566       97.1  

HOMESENSE

    36,000  

AMERICAN FREIGHT - APPLIANCE FURNITURE MATTRESS

    28,020            

JACKSONVILLE

ARGYLE VILLAGE

 

2021

    306,506       100.0  

SERVICE MERCHANDISE

    50,000  

JO ANN'S

    48,945  

PUBLIX

    51,420  

JACKSONVILLE

ATLANTIC WEST

OJV

2021

    92,268       100.0  

TJ MAXX

    28,000  

HOMEGOODS

    18,021  

WALMART (4)

    206,265  

JACKSONVILLE

KERNAN VILLAGE

OJV

2021

    85,158       94.8  

ROSS DRESS FOR LESS

    30,187  

PETCO

    15,000  

WALMART (4)

    206,265  

KEY LARGO

TRADEWINDS S.C.

KIR

2000

    162,603       95.8  

BEALLS OUTLET

    14,571            

PUBLIX

    48,555  

LAKELAND

MERCHANTS WALK

 

2001

    236,522       99.2  

HOBBY LOBBY

    53,271  

ROSS DRESS FOR LESS

    30,846            

LARGO

CENTER AT MISSOURI AVENUE

 

1968

    131,067       98.9  

OLD TIME POTTERY

    58,374  

UFC GYM

    25,121  

ALDI

    20,800  

LARGO

TRI-CITY PLAZA

 

1992

    221,429       99.3  

LA FITNESS

    33,490  

BURLINGTON

    30,302  

PUBLIX

    42,112  

LARGO

LARGO PLAZA

 

2021

    375,649       96.0  

BEALLS

    35,550  

REGAL CINEMAS

    29,224  

PUBLIX (4)

    120,180  

LAUDERHILL

FT. LAUDERDALE PLAZA

 

1974

    181,576       98.0  

BURLINGTON

    44,450  

STAPLES

    23,500  

FESTIVAL SUPERMARKET

    22,772  

MARATHON

MARATHON S.C.

 

2013

    107,756       89.7  

SURF STYLE

    53,929            

WINN-DIXIE

    38,400  

MELBOURNE

NASA PLAZA

 

1968

    168,737       99.5  

RADIAL

    69,900  

WALGREENS

    15,525            

MIAMI

GROVE GATE S.C.

 

1968

    107,000       100.0  

HOME DEPOT

    105,154            

MILAM'S MARKET

    10,947  

MIAMI

CORAL WAY PLAZA

OJV

1965

    74,148       100.0  

YOUFIT HEALTH CLUBS

    30,000            

FRESCO Y MAS (4)

    55,944  

MIAMI

CORAL WAY PLAZA

OJV

2003

    87,305       100.0  

ORCHARD SUPPLY HARDWARE

    29,111            

FRESCO Y MAS

    55,944  

MIAMI

CORAL WAY PLAZA

OJV

2016

    1,615       100.0                      

FRESCO Y MAS (4)

    55,944  

MIAMI

MILLER ROAD S.C.

 

1986

    86,109       100.0  

WALGREENS

    14,468            

PUBLIX

    46,810  

MIAMI

SOUTH MIAMI S.C.

 

1995

    64,007       83.9  

PETCO

    22,418  

PARTY CITY

    15,611            

MIAMI

KENDALE LAKES PLAZA

 

2009

    293,001       100.0  

KMART

    114,000  

HOBBY LOBBY

    40,000            

MIAMI

MILLER WEST PLAZA

 

2015

    63,563       100.0                      

PUBLIX

    44,271  

MIAMI

CORSICA SQUARE S.C.

 

2015

    60,280       100.0                      

PUBLIX

    45,600  

MIAMI

FLAGLER PARK PLAZA

 

2007

    355,051       98.4  

BURLINGTON

    29,953  

YOUFIT HEALTH CLUBS

    24,757  

PUBLIX

    56,000  

MIAMI

PARK HILL PLAZA

 

2011

    110,169       100.0  

LITTLE VILLAGE LEARNING CENTER

    10,000            

FRESCO Y MAS

    34,890  

MIAMI

WINN DIXIE - MIAMI

 

2013

    61,837       100.0                      

WINN-DIXIE

    61,837  

MIAMI

TJ MAXX PLAZA

 

2021

    161,429       99.2  

TJ MAXX

    32,800  

DOLLAR TREE

    10,000  

FRESCO Y MAS

    36,434  

MIAMI

PALMS AT TOWN & COUNTRY

 

2021

    658,954       94.7  

KOHL'S

    88,709  

MARSHALLS/HOMEGOODS

    50,877  

PUBLIX

    39,795  

MIAMI

TAMIAMI TRAIL SHOPS

OIP

2021

    110,952       97.4  

CANO HEALTH

    11,234  

CVS

    10,356  

PUBLIX

    42,112  

NORTH MIAMI BEACH

IVES DAIRY CROSSING

 

1985

    108,795       97.2  

WALGREENS

    15,930            

PUBLIX

    51,420  

OAKLAND PARK

NORTHRIDGE S.C. – OAKLAND PARK

OIP

2021

    234,199       96.9  

ROSS DRESS FOR LESS

    29,561  

YOUFIT HEALTH CLUBS

    28,752  

PUBLIX

    44,123  

ORLANDO

BAYHILL PLAZA

KIR

2000

    189,148       100.0  

FITNESS CF

    56,000  

PGA TOUR SUPERSTORE

    50,239  

SPROUTS FARMERS MARKET

    26,556  

ORLANDO

SODO S.C.

 

2008

    179,074       97.0  

LA FITNESS

    49,875  

TJ MAXX

    26,843  

TARGET (4)

    184,782  

ORLANDO

MILLENIA PLAZA

 

2009

    156,061       100.0  

MARSHALLS

    30,027  

HOMEGOODS

    24,991  

TARGET (4)

    187,166  

ORLANDO

GRAND OAKS VILLAGE

 

2011

    86,269       97.9                      

THE FRESH MARKET

    18,400  

ORLANDO

PHILLIPS CROSSING

 

2021

    145,644       98.6  

MICHAELS

    21,012  

GOLF GALAXY

    16,375  

WHOLE FOODS MARKET

    52,549  

ORLANDO

COLONIAL PLAZA

 

2021

    492,075       98.3  

HOBBY LOBBY

    53,065  

CONN'S HOMEPLUS

    42,780  

SPROUTS FARMERS MARKET

    23,000  

ORLANDO

THE MARKETPLACE AT DR PHILLIPS

OIP

2021

    326,729       85.9  

HOMEGOODS

    25,512  

HOMESENSE

    23,186  

PUBLIX

    64,850  

OVIEDO

RIVERSIDE LANDINGS

 

2015

    78,093       100.0                      

PUBLIX

    44,270  

PEMBROKE PINES

PEMBROKE COMMONS

OIP

2021

    303,127       100.0  

CONN'S HOMEPLUS

    40,000  

LA FITNESS

    39,850  

PUBLIX

    65,537  

PEMBROKE PINES

FLAMINGO PINES

OIP

2021

    131,664       92.1                      

PUBLIX

    55,000  

PENSACOLA

UNIVERSITY TOWN CENTER

 

2011

    101,377       94.5                      

PUBLIX

    61,389  

PLANTATION

PLANTATION COMMONS

 

2017

    60,414       100.0                      

ENSON MARKET

    41,440  

PLANTATION

VIZCAYA SQUARE

 

2021

    110,081       96.2                      

WINN-DIXIE

    54,307  

POMPANO BEACH

POMPANO POINTE S.C.

 

2012

    77,352       100.0  

HOMEGOODS

    20,280  

ULTA

    11,224  

WHOLE FOODS MARKET

    40,100  

SAINT PETERSBURG

OAK TREE PLAZA

 

1968

    118,574       86.8  

OLLIE'S BARGAIN OUTLET

    45,871  

YOUFIT HEALTH CLUBS

    22,000            

SARASOTA

TUTTLEBEE PLAZA

 

2008

    100,237       100.0  

TJ MAXX

    29,825  

OFFICEMAX

    23,800            

SEA RANCH LAKES

SEA RANCH CENTRE

 

2021

    90,956       96.2  

CVS

    14,273  

DOLLAR TREE

    10,000  

PUBLIX

    28,606  

TALLAHASSEE

VILLAGE COMMONS S.C.

 

1998

    190,811       99.3  

TOTAL WINE & MORE

    31,920  

HOMEGOODS

    24,471  

THE FRESH MARKET

    22,300  

TAMPA

THE PLAZA AT CITRUS PARK

KIR

2001

    340,000       96.2  

BEST BUY

    46,121  

JOANN

    45,965            

TAMPA

CARROLLWOOD COMMONS

 

1997

    206,564       96.6  

AMERICAN SIGNATURE

    49,106  

ROSS DRESS FOR LESS

    26,250  

SPROUTS FARMERS MARKET

    27,000  

TAMPA

MISSION BELL S.C.

 

2004

    197,181       100.0  

LOWE'S HOME CENTER

    167,000                      

WELLINGTON

WELLINGTON GREEN COMMONS

 

2021

    120,556       97.9                      

WHOLE FOODS MARKET

    49,979  

WELLINGTON

VILLAGE GREEN CENTER

 

2021

    70,240       100.0                      

TRADER JOE’S

    12,500  

WEST PALM BEACH

BELMART PLAZA

 

2014

    66,440       89.0                      

PUBLIX

    28,800  

WEST PALM BEACH

MCDONALD'S - BELVEDERE PLAZA

 

1997

    3,787       100.0                      

PUBLIX (4)

    28,800  

WINTER PARK

WINTER PARK CORNERS

 

2021

    95,211       100.0  

ORANGE COUNTY, FLORIDA

    10,500            

SPROUTS FARMERS MARKET

    30,348  

GEORGIA

                                                   

ACWORTH

LAKESIDE MARKETPLACE

 

2021

    137,498       98.5  

ROSS DRESS FOR LESS

    30,222  

MICHAELS

    23,921  

TARGET (4)

    169,120  

ATLANTA

EMBRY VILLAGE

 

2008

    206,570       97.9  

PLANET FITNESS

    19,838  

MR. CUE'S BILLIARDS & BURGERS

    14,870  

KROGER

    102,877  

ATLANTA

PERIMETER EXPO

 

2016

    175,835       100.0  

ONELIFE FITNESS

    53,851  

MARSHALLS

    36,598            

ATLANTA

PERIMETER VILLAGE

 

2021

    373,621       97.0  

HOBBY LOBBY

    40,000  

DSW SHOE WAREHOUSE

    19,920  

WALMART

    183,500  

ATLANTA

CAMP CREEK MARKETPLACE II

 

2021

    196,283       100.0  

AMERICAN SIGNATURE

    50,134  

LA FITNESS

    45,000            

ATLANTA

PUBLIX AT PRINCETON LAKES

OIP

2021

    68,407       100.0                      

PUBLIX

    45,600  

DECATUR

NORTH DECATUR STATION

OIP

2021

    88,779       100.0                      

WHOLE FOODS MARKET

    35,097  

DULUTH

RIVERWALK MARKETPLACE

 

2015

    78,025       100.0                      

WHOLE FOODS MARKET

    70,125  

GRAYSON

GRAYSON COMMONS

 

2021

    76,581       100.0                      

KROGER

    46,581  

JOHNS CREEK

MARKET AT HAYNES BRIDGE

 

2008

    130,390       94.7                      

KROGER

    62,000  

LAWRENCEVILLE

LAWRENCEVILLE MARKET

 

2013

    285,656       100.0  

HOBBY LOBBY

    67,400  

AMC THEATRES

    65,442  

TARGET (4)

    116,400  

PEACHTREE CITY

BRAELINN VILLAGE

 

2014

    266,005       66.9                      

KROGER

    108,127  

POWDER SPRINGS

BROWNSVILLE COMMONS

 

2021

    27,747       84.1                      

KROGER (4)

    54,166  

ROSWELL

ROSWELL CORNERS

 

2021

    145,496       100.0  

TJ MAXX

    30,000            

THE FRESH MARKET

    23,923  

ROSWELL

ROSWELL CROSSING

 

2021

    192,647       98.4  

PIKE FAMILY NURSERIES

    45,116  

OFFICEMAX

    23,500  

TRADER JOE'S

    11,606  

IOWA

                                                   

CLIVE

CLIVE PLAZA

 

1996

    90,000       100.0  

KMART

    90,000                      

ILLINOIS

                                                   

CHAMPAIGN

PINETREE PLAZA

KIR

2001

    111,720       100.0  

BEST BUY

    45,350  

ROSS DRESS FOR LESS

    30,247            

GLENVIEW

PLAZA DEL PRADO

 

2017

    141,721       95.6                      

JEWEL OSCO

    59,171  

SKOKIE

SKOKIE POINTE

 

1997

    62,983       100.0  

MARSHALLS

    30,406  

OLD NAVY

    28,049  

JEWEL OSCO (4)

    70,630  

VERNON HILLS

HAWTHORN HILLS SQUARE S.C.

 

2012

    192,624       95.4  

DICK'S SPORTING GOODS

    54,997  

PETSMART

    27,518            

INDIANA

                                                   

GREENWOOD

GREENWOOD S.C.

 

1970

    217,876       100.0  

BIG LOTS

    47,000  

MARSHALLS/HOMEGOODS

    42,000  

FRESH THYME FARMERS MARKET

    29,979  

KENTUCKY

                                                   

LOUISVILLE

FESTIVAL ON JEFFERSON COURT

 

2021

    169,783       98.5  

NADIA BEAUTY SUPPLY

    19,200  

PARTY CITY

    14,420  

KROGER

    59,976  

MASSACHUSETTS

                                                   

BRIGHTON

WASHINGTON ST. PLAZA

 

2014

    27,550       73.9                      

WHOLE FOODS MARKET

    20,350  

CAMBRIDGE

MEMORIAL PLAZA

 

2014

    62,555       100.0  

MICRO CENTER

    41,724            

TRADER JOE'S

    11,065  

CHATHAM

MAIN ST. PLAZA

 

2014

    24,432       100.0  

OCEAN STATE JOB LOT

    24,432                      

DORCHESTER

MORRISSEY PLAZA

 

2014

    84,470       100.0  

FLOOR & DECOR

    84,470                      

EVERETT

GLENDALE SQUARE

 

2014

    41,278       100.0  

WALGREENS

    14,707                      

FALMOUTH

FALMOUTH PLAZA

 

2014

    88,976       74.6  

STAPLES

    24,652  

PLANET FITNESS

    12,368            

FRAMINGHAM

WAVERLY PLAZA

 

2014

    26,482       100.0                      

AJ SEABRA SUPERMARKET

    9,615  

HYANNIS

FESTIVAL AT HYANNIS S.C.

 

2014

    231,883       96.2  

HOBBY LOBBY

    46,932  

HOMEGOODS

    24,904  

SHAW'S SUPERMARKET

    54,712  

MEDFORD

FELLSWAY @ 630

 

2014

    56,215       100.0  

LOWE'S OUTLET

    22,478            

ALDI

    21,952  

QUINCY

NORTH QUINCY PLAZA

 

2014

    80,510       92.3  

MING SEAFOOD RESTAURANT CORP.

    14,247            

99 RANCH MARKET

    55,087  

QUINCY

ADAMS PLAZA

 

2014

    24,469       100.0  

WALGREENS

    12,607                      

REVERE

BROADWAY PLAZA

 

2014

    15,272       100.0  

WALGREENS

    15,272                      

SALEM

PARADISE PLAZA

 

2014

    48,587       90.2  

STAPLES

    17,001                      

SWAMPSCOTT

VINNIN SQUARE PLAZA

 

2014

    63,975       100.0  

CVS

    11,060  

PETCO

    10,250            

WAKEFIELD

NORTH AVE. PLAZA

 

2014

    15,984       100.0  

MG FITNESS

    15,984                      

WALTHAM

LINDEN PLAZA

 

2014

    24,284       100.0  

PETCO

    13,650                      

WOBURN

WASHINGTON ST. S.C.

 

2014

    123,681       100.0  

KOHL'S

    93,705  

ULTA

    10,483            

WORCESTER

MILL ST. PLAZA

 

2014

    66,281       100.0  

HARBOR FREIGHT TOOLS

    18,859  

DOLLAR TREE

    10,541  

ASIAN SUPERMARKET

    21,521  

MARYLAND

                                                   

BALTIMORE

FULLERTON PLAZA

 

2014

    158,422       100.0  

LA FITNESS

    34,000            

WEIS MARKETS

    67,520  

BALTIMORE

INGLESIDE S.C.

 

2014

    114,045       89.6  

DOLLAR TREE

    10,000            

SAFEWAY

    54,200  

BALTIMORE

WILKENS BELTWAY PLAZA

 

2014

    90,299       100.0                      

GIANT FOOD

    55,108  

BALTIMORE

YORK ROAD PLAZA

 

2014

    90,903       94.9                      

GIANT FOOD

    56,892  

BALTIMORE

PUTTY HILL PLAZA

 

2013

    90,777       96.1                      

GIANT FOOD

    43,136  

BEL AIR

GREENBRIER S.C.

 

2014

    130,193       97.0  

CVS

    10,125  

DOLLAR TREE

    10,000  

SAFEWAY

    55,032  

CLARKSVILLE

RIVER HILL VILLAGE CENTER

 

2014

    105,907       100.0                      

GIANT FOOD

    62,943  

COLUMBIA

SNOWDEN SQUARE S.C.

 

2012

    75,000       100.0  

MICHAELS

    26,706  

PETSMART

    25,000  

BJ'S WHOLESALE CLUB (4)

    109,384  

COLUMBIA

COLUMBIA CROSSING

 

2015

    404,258       100.0  

ASHLEY FURNITURE WORLD

    63,062  

DICK'S SPORTING GOODS

    60,840  

TARGET (4)

    130,604  

COLUMBIA

HICKORY RIDGE

 

2015

    100,803       92.1                      

GIANT FOOD

    57,994  

COLUMBIA

KINGS CONTRIVANCE

 

2014

    98,399       94.0                      

HARRIS TEETER

    56,905  

COLUMBIA

HARPERS CHOICE

 

2015

    91,165       94.8                      

SAFEWAY

    55,164  

COLUMBIA

THE SHOPPES AT WILDE LAKE

 

2002

    69,903       86.5  

CVS

    13,225            

DAVID'S NATURAL MARKET

    15,079  

DISTRICT HEIGHTS

THE SHOPS AT DISTRICT HEIGHTS

 

2015

    90,929       100.0                      

GIANT FOOD

    64,333  

ELLICOTT CITY

DORSEY'S SEARCH VILLAGE CENTER

 

2015

    86,456       95.4                      

GIANT FOOD

    55,000  

ELLICOTT CITY

ENCHANTED FOREST S.C.

 

2014

    142,052       98.3  

PETCO

    12,400            

SAFEWAY

    50,093  

ELLICOTT CITY

LONG GATE S.C.

PRU

2007

    429,030       100.0  

TARGET

    146,773  

KOHL'S

    106,889  

SAFEWAY

    55,164  

FREDERICK

VILLAGES AT URBANA

 

2003

    111,033       100.0                      

GIANT FOOD

    56,166  

GAITHERSBURG

GAITHERSBURG S.C.

 

1999

    88,277       100.0  

FLOOR & DECOR

    60,102  

MATTRESS & FURNITURE MART

    10,026            

GAITHERSBURG

KENTLANDS MARKET SQUARE

 

2016

    238,393       99.0  

CINEPOLIS LUXURY CINEMAS

    34,052  

MICHAELS

    23,296  

WHOLE FOODS MARKET

    35,868  

HUNT VALLEY

SHAWAN PLAZA

 

2008

    94,653       100.0                      

GIANT FOOD

    55,330  

LAUREL

LAUREL PLAZA

 

1964

    162,144       100.0  

2ND AVE VALUE STORES

    81,550  

PLANET FITNESS

    21,000            

OWINGS MILLS

MILL STATION DEVELOPMENT

 

2016

    604,391       100.0  

COSTCO

    148,000  

LOWE'S HOME CENTER

    111,238  

GIANT FOOD

    66,450  

PASADENA

PATRIOTS PLAZA

OJV

2003

    38,766       100.0  

DAVITA

    10,496                      

PIKESVILLE

CENTRE COURT- RETAIL/BANK

 

2011

    105,223       98.9                      

GIANT FOOD

    63,529  

ROCKVILLE

PIKE CENTER

 

2021

    79,669       96.1  

LUNA HALL

    12,700  

GOLFDOM

    10,909            

TIMONIUM

TIMONIUM CROSSING

 

2014

    53,914       93.8  

AMERICAN RADIOLOGY

    14,849                      

TIMONIUM

TIMONIUM SQUARE

 

2003

    191,561       94.2  

STAPLES

    15,000            

GIANT FOOD

    61,941  

TOWSON

RADCLIFFE CENTER

 

2014

    88,405       100.0  

4 WHEEL PARTS

    11,500  

CVS

    10,125  

SAFEWAY

    59,180  

TOWSON

TOWSON PLACE

 

2012

    682,031       91.3  

WALMART

    154,828  

TARGET

    132,608  

WEIS MARKETS

    55,452  

MINNESOTA

                                                   

MAPLE GROVE

ARBOR LAKES RETAIL CENTER

KIR

2001

    450,981       99.6  

BEST BUY

    45,953  

JOANN

    45,940  

BYERLY'S

    55,043  

MAPLE GROVE

THE FOUNTAINS AT ARBOR LAKES

 

2006

    481,032       99.2  

LOWE'S HOME CENTER

    137,933  

DICK'S SPORTING GOODS

    51,182  

COSTCO (4)

    139,262  

MINNETONKA

RIDGEDALE FESTIVAL CENTER

KIR

1998

    121,066       100.0  

HOBBY LOBBY

    62,204  

TOTAL WINE & MORE

    25,775            

MISSOURI

                                                   

SAINT CHARLES

CENTER POINT S.C.

 

1998

    84,460       100.0  

KOHL'S

    84,460                      

NORTH CAROLINA

                                                   

CARY

CENTRUM @ CROSSROADS

KIR

2001

    315,977       100.0  

KOHL'S

    86,584  

PETSMART

    26,040  

BJ'S WHOLESALE CLUB

    108,532  

CARY

CROSSROADS PLAZA - CARY

 

2000

    586,786       89.9  

DICK'S SPORTING GOODS

    55,000  

BEST BUY

    51,259            

CARY

NORTHWOODS S.C.

 

2021

    77,802       100.0                      

WALMART NEIGHBORHOOD MARKET

    39,680  

CARY

HIGH HOUSE CROSSING

 

2021

    82,566       95.0  

TRIUMPH GYMNASTICS

    15,748            

LIDL (2)

    26,543  

CHARLOTTE

WOODLAWN MARKETPLACE

 

1968

    241,432       100.0  

HOME DEPOT

    85,600  

BURLINGTON

    48,000            

CHARLOTTE

TYVOLA SQUARE

 

1986

    228,538       97.8  

ROSS DRESS FOR LESS

    32,003  

K&G FASHION SUPERSTORE

    28,109  

COMPARE FOODS

    24,928  

CHARLOTTE

QUAIL CORNERS

 

2014

    106,219       97.8                      

HARRIS TEETER

    51,486  

CORNELIUS

JETTON VILLAGE SHOPPES

 

2011

    80,600       100.0                      

HARRIS TEETER

    57,260  

DAVIDSON

DAVIDSON COMMONS

 

2012

    83,938       100.0                      

HARRIS TEETER

    48,000  

DURHAM

NEW HOPE COMMONS

KIR

2002

    408,065       100.0  

BEST BUY

    45,000  

BURLINGTON

    31,772  

WALMART

    149,929  

DURHAM

HOPE VALLEY COMMONS

 

2021

    81,327       100.0                      

HARRIS TEETER

    48,505  

MOORESVILLE

MOORESVILLE CROSSING

 

2007

    165,798       100.0  

BEST BUY

    30,000  

NORDSTROM RACK

    28,000            

MORRISVILLE

PARK PLACE S.C.

 

2008

    169,901       100.0  

CARMIKE CINEMAS

    60,124  

O2 FITNESS CLUBS

    36,000  

FOOD LION

    36,427  

RALEIGH

PLEASANT VALLEY PROMENADE

 

1993

    355,902       71.3  

GOLF GALAXY

    59,719  

ROSS DRESS FOR LESS

    30,187            

RALEIGH

BRENNAN STATION

 

2011

    136,670       93.9  

OFFICE DEPOT

    22,391  

TOWN AND COUNTRY HARDWARE

    12,000            

RALEIGH

FALLS POINTE

 

2021

    109,501       98.9                      

HARRIS TEETER

    54,314  

RALEIGH

CAPITAL SQUARE

 

2021

    143,063       100.0  

SAM ASH MEGASTORE

    34,300  

IT'S FASHION METRO

    14,694  

FOOD LION

    39,301  

RALEIGH

LEESVILLE TOWNE CENTRE

 

2021

    127,106       100.0  

DUKE PRIMARY CARE

    12,711            

HARRIS TEETER

    46,479  

RALEIGH

SIX FORKS STATION S.C.

 

2021

    468,402       96.0  

HOME DEPOT

    117,424  

TARGET

    113,849  

FOOD LION

    44,213  

RALEIGH

STONEHENGE MARKET

 

2021

    188,623       99.5  

PAINTED TREE BOUTIQUES

    34,097            

HARRIS TEETER

    58,000  

WINSTON-SALEM

CLOVERDALE PLAZA

 

1969

    132,590       95.5  

DOLLAR TREE

    14,849            

HARRIS TEETER

    60,279  

NEW HAMPSHIRE

                                                   

NASHUA

WEBSTER SQUARE

 

2014

    215,640       99.5  

TJ MAXX

    25,219  

MICHAELS

    24,300  

TRADER JOE'S

    13,800  

SALEM

ROCKINGHAM PLAZA

 

1994

    350,451       87.5  

KOHL'S

    91,282  

BOB'S DISCOUNT FURNITURE

    51,507            

NEW JERSEY

                                                   

BRIDGEWATER

BRIDGEWATER PROMENADE

KIR

2001

    241,884       100.0  

BURLINGTON

    40,415  

MARSHALLS

    39,562  

TRADER JOE'S

    12,820  

CHERRY HILL

BRACE ROAD STATION

 

1985

    124,750       100.0  

HUNG VUONG FOOD MARKET

    34,427  

HUNG VUONG FOOD MARKET

    10,366  

HUNG VUONG SUPERMARKET

    62,532  

CHERRY HILL

HILLVIEW S.C.

 

2014

    216,219       97.7  

KOHL'S

    86,770  

HOBBY LOBBY

    44,675  

TARGET (4)

    130,915  

CHERRY HILL

GARDEN STATE PAVILIONS

 

2011

    381,824       95.1  

BURLINGTON

    70,500  

GABE'S

    39,610  

SHOPRITE

    86,076  

CLARK

CENTRAL CENTER-SHOPRITE

 

2013

    85,000       100.0                      

SHOPRITE

    85,000  

CLARK

COMMERCE CENTER EAST

 

2013

    52,812       100.0                      

BRIXMOR

    52,812  

CLARK

CENTRAL PLAZA

 

2013

    41,537       100.0  

AHS HOSPITAL

    28,000  

WALGREENS

    13,537            

EAST WINDSOR

EAST WINDSOR VILLAGE

 

2008

    248,727       100.0  

TARGET

    126,200  

KOHL'S

    30,257  

PATEL BROTHERS

    22,310  

EDGEWATER

EDGEWATER COMMONS

PRU

2007

    426,864       100.0  

TARGET

    113,156  

TJ MAXX

    35,000  

ACME

    63,966  

HILLSDALE

PLAZA AT HILLSDALE

 

2014

    60,432       100.0  

WALGREENS

    16,332            

KINGS SUPERMARKET

    30,811  

HOLMDEL

HOLMDEL TOWNE CENTER

 

2007

    299,723       99.0  

HOBBY LOBBY

    56,021  

MARSHALLS

    48,833            

HOLMDEL

COMMONS AT HOLMDEL

 

2007

    235,657       86.8  

BEST BUY

    30,109  

MICHAELS

    25,482            

MILLBURN

PLAZA AT SHORT HILLS

 

2014

    89,321       100.0  

CITYMD

    17,139  

PET SUPPLIES PLUS

    10,158  

KINGS SUPERMARKET

    40,024  

MOORESTOWN

MAPLE SHADE

 

2009

    201,351       100.0  

LOWE'S HOME CENTER

    135,198  

SKY ZONE

    42,173            

NORTH BRUNSWICK

NORTH BRUNSWICK PLAZA

 

1994

    429,293       100.0  

BURLINGTON

    64,676  

MARSHALLS

    52,440  

WALMART

    184,648  

PISCATAWAY

PISCATAWAY TOWN CENTER

 

1998

    97,348       92.5                      

SHOPRITE

    54,100  

RIDGEWOOD

RIDGEWOOD S.C.

 

1994

    24,280       100.0                      

WHOLE FOODS MARKET

    24,280  

UNION

UNION CRESCENT PLAZA

 

2007

    98,193       100.0  

BEST BUY

    30,225            

WHOLE FOODS MARKET

    60,000  

WAYNE

WILLOWBROOK PLAZA

 

2009

    401,574       100.0  

FLOOR & DECOR

    93,704  

LIFE STORAGE LP

    85,063            

WESTMONT

WESTMONT PLAZA

 

1994

    156,613       97.1  

TARGET

    48,142  

DOLLAR TREE

    12,000  

SPROUTS FARMERS MARKET

    22,360  

NEW MEXICO

                                                   

ALBUQUERQUE

NORTH TOWNE PLAZA - ALBUQUERQUE

 

2021

    118,721       100.0  

HOMEGOODS

    22,514            

WHOLE FOODS MARKET

    34,020  

NEVADA

                                                   

LAS VEGAS

RANCHO TOWNE & COUNTRY

 

2021

    84,670       96.7                      

SMITH'S

    55,096  

LAS VEGAS

FRANCISCO CENTER

 

2021

    116,756       93.7  

DD'S DISCOUNTS

    19,350            

LA BONITA (2)

    36,800  

LAS VEGAS

CHARLESTON COMMONS

 

2021

    330,815       100.0  

99 CENTS ONLY

    29,849  

BURLINGTON

    29,442  

WALMART

    116,792  

NORTH LAS VEGAS

COLLEGE PARK S.C. - N LAS VEGAS

 

2021

    167,160       95.6  

CVS

    24,100  

WSS

    14,924  

EL SUPER

    36,983  

RENO

DEL MONTE PLAZA

 

2006

    119,377       96.5  

SIERRA TRADING POST

    31,000  

FIVE BELOW

    10,542  

WHOLE FOODS MARKET

    51,758  

RENO

REDFIELD PROMENADE

 

2015

    152,601       68.7  

NORDSTROM RACK

    31,000  

WORLD MARKET

    18,665  

NATURAL GROCERS

    16,198  

RENO

MCQUEEN CROSSINGS S.C.

 

2015

    104,319       100.0                      

RALEY'S

    65,519  

RENO

GALENA JUNCTION S.C.

 

2015

    118,012       98.9  

SHELL OIL

    10,000            

RALEY'S

    61,570  

SPARKS

D'ANDREA MARKETPLACE

 

2007

    120,045       95.5  

CVS

    18,990            

SAFEWAY

    56,061  

SPARKS

SPARKS MERCANTILE

 

2015

    113,759       100.0                      

RALEY'S

    63,476  

NEW YORK

                                                   

BAY SHORE

MARKET AT BAY SHORE

 

2006

    176,831       100.0  

BEST BUY

    45,499  

BIG LOTS

    43,123  

ALDI

    18,635  

BELLMORE

BELLMORE S.C.

 

2004

    15,445       100.0  

PETSMART

    12,052                      

BRIDGEHAMPTON

BRIDGEHAMPTON COMMONS

 

2009

    304,959       100.0  

KMART

    89,935  

TJ MAXX

    26,768  

KING KULLEN

    61,892  

BRONX

CONCOURSE PLAZA

OJV

2013

    224,959       93.0  

NATIONAL AMUSEMENTS

    58,860  

BLINK FITNESS

    18,119  

FOOD BAZAAR

    51,680  

BROOKLYN

MILL BASIN PLAZA

KIR

2000

    80,708       97.3  

HOME DEPOT

    58,200  

WALGREENS

    11,050            

BROOKLYN

OCEAN PLAZA

 

2003

    10,000                                        

BROOKLYN

KINGS HIGHWAY S.C.

 

2004

    29,671       100.0  

CENTER FOR ALLIED HEALTH EDUCATION

    19,371  

DUANE READE

    10,300            

BROOKLYN

RALPH AVENUE PLAZA

 

2004

    40,373       100.0  

DUANE READE

    15,638  

PARTY CITY

    13,424            

BROOKLYN HEIGHTS

KEY FOOD - ATLANTIC AVENUE

 

2012

    7,200       100.0                      

KEY FOOD

    7,200  

COMMACK

VETERANS MEMORIAL PLAZA

 

1998

    251,254       100.0  

HOBBY LOBBY

    42,970  

BURLINGTON

    40,471  

WHOLE FOODS MARKET

    45,000  

COMMACK

BIRCHWOOD PLAZA

 

2007

    24,617       100.0  

DOLLAR TREE

    14,137                      

COPIAGUE

HOME DEPOT PLAZA - COPIAGUE

KIR

1998

    135,436       100.0  

HOME DEPOT

    112,000            

TARGET (4)

    130,417  

EAST NORTHPORT

NORTHPORT CENTER

 

2012

    3,827       100.0                                

ELMONT

ELMONT S.C.

 

2004

    27,078       100.0  

TJ MAXX

    21,178                      

ELMSFORD

ELMSFORD CENTER 2

 

2013

    58,838       100.0  

AUTONATION

    58,838                      

FARMINGDALE

AIRPORT PLAZA

 

2015

    413,830       100.0  

HOME DEPOT

    116,790  

PETSMART

    30,235  

STEW LEONARD'S

    60,000  

FLUSHING

KISSENA BLVD S.C.

 

2007

    22,416       100.0                      

FRUIT VALLEY PRODUCE

    17,300  

FRANKLIN SQUARE

FRANKLIN SQUARE S.C.

 

2004

    17,789       100.0  

PHENIX SALON SUITES

    11,857                      

FREEPORT

MEADOWBROOK COMMONS

KIR

2000

    173,002       98.5  

VORNADO REALTY TRUST

    37,328  

MARSHALLS

    27,540  

TARGET

    46,753  

GLEN COVE

NORTH SHORE TRIANGLE

KIR

2000

    49,212       92.1  

STAPLES

    24,880  

PETSMART

    13,482            

GREAT NECK

THE GARDENS AT GREAT NECK

 

2022

    111,463       98.4  

PLANET FITNESS

    22,000  

RITE AID

    11,700  

BEST MARKET OF GREAT NECK (2)

    40,000  

GREENVALE

THE GREEN COVE PLAZA

 

2022

    86,446       87.7  

TJ MAXX

    30,992  

EQUINOX FITNESS CLUB

    24,000            

HAMPTON BAYS

HAMPTON BAYS PLAZA

 

1989

    70,990       100.0  

MACY'S

    50,000  

PETCO

    11,890            

HICKSVILLE

HICKSVILLE PLAZA

 

2004

    35,736       100.0  

PETCO (2)

    12,919  

DOLLAR TREE

    10,481            

HUNTINGTON STATION

TURNPIKE PLAZA

 

2011

    52,973       76.2                      

LIDL

    30,700  

JERICHO

JERICHO COMMONS SOUTH

 

2007

    171,180       100.0  

MARSHALLS

    33,600  

MILLERIDGE

    20,466  

WHOLE FOODS MARKET

    39,504  

KEW GARDENS HILLS

FAMILY DOLLAR UNION TURNPIKE

 

2012

    10,790       92.5                                

LITTLE NECK

LITTLE NECK PLAZA

 

2003

    48,275       100.0                      

LITTLE NECK GROCERY

    8,750  

LONG ISLAND CITY

KEY FOOD - 21ST STREET

 

2012

    6,065       100.0                      

KEY FOOD

    5,621  

MANHASSET

MANHASSET CENTER

 

1999

    155,321       100.0  

MARSHALLS

    40,114  

NORDSTROM RACK

    34,257  

KING KULLEN

    37,570  

MASPETH

GRAND PLAZA

 

2004

    22,500       100.0                      

KEY FOOD

    22,000  

MASSAPEQUA

CARMANS PLAZA

 

2022

    168,225       88.5  

PLANET FITNESS

    19,870  

DMV

    19,310  

KEY FOOD

    32,570  

MASSAPEQUA PARK

SOUTHGATE SHOPPING CENTER

 

2022

    111,743       97.3                      

KING KULLEN

    51,283  

MERRICK

MERRICK COMMONS

KIR

2000

    108,876       100.0  

HOMEGOODS

    24,836  

PLANET FITNESS

    15,038  

LIDL

    31,478  

MINEOLA

MINEOLA CROSSINGS

 

2007

    26,747       97.7                      

NORTH SHORE FARMS

    10,000  

MUNSEY PARK

MUNSEY PARK PLAZA

KIR

2000

    72,748       100.0  

THEODORE ALEXANDER

    41,393            

WHOLE FOODS MARKET

    20,000  

NESCONSET

SMITHTOWN PLAZA

 

2009

    55,968       100.0  

PETSMART

    28,916  

BOB'S DISCOUNT FURNITURE

    27,052  

COSTCO (4)

    122,475  

NORTH MASSAPEQUA

NORTH MASSAPEQUA S.C.

 

2004

    29,599       100.0  

DOLLAR TREE

    13,965                      

PLAINVIEW

MANETTO HILL PLAZA

 

1969

    88,181       93.6  

PLANET FITNESS

    19,159                      

SELDEN

INDEPENDENCE PLAZA - SELDEN

 

2014

    236,130       99.6  

HOME DEPOT

    102,220  

RITE AID

    14,673  

TARGET

    52,250  

STATEN ISLAND

FOREST AVENUE S.C.

KIR

2000

    189,968       99.0  

TJ MAXX/HOMEGOODS

    34,798  

LA FITNESS

    34,000            

STATEN ISLAND

RICHMOND S.C.

 

1989

    266,617       99.1  

REGENCY FURNITURE

    29,216  

HOMEGOODS

    26,375  

TARGET

    139,839  

STATEN ISLAND

GREENRIDGE PLAZA

 

1997

    97,959       96.8  

LA FITNESS

    33,180            

ALDI

    21,317  

STATEN ISLAND

THE BOULEVARD

 

2006

    410,298       97.1  

ALAMO DRAFTHOUSE CINEMA

    45,485  

LA FITNESS

    37,583  

SHOPRITE

    67,868  

STATEN ISLAND

FOREST AVENUE PLAZA

 

2005

    46,063       100.0                      

TARGET

    46,063  

STATEN ISLAND

2424 HYLAN BOULEVARD

 

2020

    56,500       100.0  

ISLAND TOYOTA

    56,500                      

SYOSSET

SYOSSET S.C.

 

1967

    32,124       100.0  

PLANET FITNESS

    16,664                      

SYOSSET

SYOSSET CORNERS

 

2022

    25,442       100.0                                

VALLEY STREAM

KEY FOOD - CENTRAL AVENUE

 

2012

    27,924       100.0                      

KEY FOOD

    27,924  

WEST ISLIP

SEQUAMS SHOPPING CENTER

 

2022

    24,149       96.1                      

SOUTHDOWN MARKET

    11,575  

WHITE PLAINS

WHITE PLAINS S.C.

 

2004

    14,450       100.0  

DOLLAR TREE

    14,450                      

WOODBURY

WOODBURY COMMON

 

2022

    84,158       84.4                      

THE FRESH MARKET

    19,800  

WOODBURY

THE MARKETPLACE

 

2022

    35,737       57.5  

PARTY CITY

    12,000                      

WOODBURY

STOP & SHOP

 

2022

    55,000       100.0                      

STOP & SHOP

    55,000  

WOODSIDE

MET FRESH

 

2012

    7,500       100.0                      

MET FRESH

    7,500  

YONKERS

SHOPRITE S.C.

 

1995

    43,560       100.0                      

SHOPRITE

    43,560  

YONKERS

ROMAINE PLAZA

 

2005

    10,329       100.0  

ADVANCE AUTO PARTS

    10,329                      

OREGON

                                                   

CLACKAMAS

CLACKAMAS PROMENADE

PRU

2007

    235,116       99.1  

HOBBY LOBBY

    45,461  

NORDSTROM RACK

    27,766  

TARGET (4)

    125,923  

GRESHAM

GRESHAM TOWN FAIR

PRU

2006

    264,634       86.7  

MADRONA WATUMULL

    55,120  

ROSS DRESS FOR LESS

    26,832            

HAPPY VALLEY

CLACKAMAS SQUARE

OIP

2021

    73,951       88.0  

TJ MAXX

    25,404            

WINCO FOODS (4)

    64,255  

HILLSBORO

TANASBOURNE VILLAGE

PRU

2008

    206,691       100.0  

RITE AID

    27,465  

DSW SHOE WAREHOUSE

    19,949  

SAFEWAY

    53,000  

MILWAUKIE

MILWAUKIE MARKETPLACE

PRU

2007

    185,760       86.5  

RITE AID

    31,472  

PLANET FITNESS

    25,000  

NEW SEASONS MARKET

    42,630  

PORTLAND

JANTZEN BEACH CENTER

 

2017

    741,227       96.9  

HOME DEPOT

    106,500  

BURLINGTON

    70,501  

TARGET

    138,700  

PORTLAND

RALEIGH HILLS PLAZA

OIP

2021

    39,520       100.0  

WALGREENS

    15,120            

NEW SEASONS MARKET

    22,822  

PENNSYLVANIA

                                                   

ARDMORE

SUBURBAN SQUARE

 

2007

    309,371       94.3  

LIFE TIME FITNESS

    78,363  

WEST ELM

    10,543  

TRADER JOE'S

    12,548  

BLUE BELL

CENTER SQUARE S.C.

 

1996

    120,211       100.0  

KOHL'S

    93,444  

HOMEGOODS

    26,767  

MCCAFFREY'S FOOD MARKETS (4)

    88,842  

CHAMBERSBURG

WAYNE PLAZA

 

2008

    131,623       89.9  

WINE & SPIRITS SHOPPE

    11,309            

GIANT

    67,521  

DEVON

DEVON VILLAGE

 

2012

    68,935       100.0  

WINE & SPIRITS SHOPPE

    10,394            

WHOLE FOODS MARKET

    33,504  

EAST NORRITON

NORRITON SQUARE

 

1984

    131,962       100.0  

HAIR BUZZ

    18,025  

JOANN

    12,250  

ACME

    66,506  

EAST STROUDSBURG

POCONO PLAZA

 

1973

    143,790       94.7  

HOMEGOODS

    22,500  

WINE & SPIRITS SHOPPE

    11,388  

GIANT

    66,479  

EXTON

WHITELAND TOWN CENTER

 

1996

    85,184       100.0  

KOHL'S

    85,184                      

HARRISBURG

HARRISBURG EAST S.C.

 

1972

    192,078       100.0  

VALUE CITY FURNITURE

    48,884  

TOUCH OF COLOR FLOORING

    31,167  

GIANT

    72,251  

HAVERTOWN

TOWNSHIP LINE S.C.

 

1996

    80,938       100.0  

KOHL'S

    80,938                      

HORSHAM

HORSHAM POINT

 

2015

    71,737       100.0                      

GIANT

    48,820  

MONTGOMERYVILLE

MONTGOMERY SQUARE

KIR

2002

    254,432       86.3  

GABE'S

    28,892  

PETSMART

    26,340  

GIANT

    67,179  

PHILADELPHIA

CASTOR PLACE

OJV

1983

    184,097       100.0  

BURLINGTON

    70,723  

RAYMOUR & FLANIGAN FURNITURE

    33,000            

PHILADELPHIA

COTTMAN & BUSTLETON CENTER

OJV

1995

    332,812       99.3  

TARGET

    137,000  

PEP BOYS

    20,800  

ACME

    66,703  

PHILADELPHIA

LINCOLN SQUARE

 

2017

    101,226       100.0  

TARGET

    36,215  

PETSMART

    15,360  

SPROUTS FARMERS MARKET

    32,000  

PHILADELPHIA

FISHTOWN CROSSING

 

2022

    133,034       100.0  

PEP BOYS

    20,615  

DOLLAR GENERAL

    11,948  

IGA SUPERMARKET

    40,000  

PITTSBURGH

WEXFORD PLAZA

 

2010

    159,829       95.7  

ARHAUS FURNITURE

    18,500  

THE TILE SHOP

    16,059  

WHOLE FOODS MARKET

    45,401  

PITTSBURGH

CRANBERRY COMMONS

 

2016

    165,920       100.0  

TJ MAXX

    30,000  

STAPLES

    23,884  

FRESH THYME FARMERS MARKET

    31,296  

RICHBORO

CROSSROADS PLAZA - RICHBORO

 

1986

    111,982       100.0                      

ACME

    55,537  

SHREWSBURY

SHREWSBURY SQUARE S.C.

 

2014

    94,706       94.8                      

GIANT

    58,785  

SPRINGFIELD

SPRINGFIELD S.C.

 

1983

    175,068       99.3  

STAPLES

    26,535  

EMPIRE BEAUTY SCHOOL

    11,472  

GIANT

    66,825  

WHITEHALL

WHITEHALL CENTER

 

1996

    84,524       100.0  

KOHL'S

    84,524                      

WYNNEWOOD

WHOLE FOODS AT WYNNEWOOD

 

2014

    55,911       100.0                      

WHOLE FOODS MARKET

    45,453  

PUERTO RICO

                                                   

BAYAMON

REXVILLE TOWN CENTER

 

2006

    185,689       88.6  

PLANET FITNESS

    18,100  

CHUCK E CHEESE

    13,600  

PUEBLO

    35,588  

CAGUAS

PLAZA CENTRO - COSTCO

 

2006

    599,409       97.8  

COSTCO

    134,881  

JCPENNEY

    98,348  

SAM'S CLUB

    138,622  

CAROLINA

LOS COLOBOS

 

2006

    572,052       91.9  

GRAND SAVIA

    118,242  

HOME DEPOT

    109,800  

ECONO RIAL

    56,372  

MANATI

MANATI VILLA MARIA S.C.

 

2006

    69,640       84.5  

PLANET FITNESS

    20,350  

FARMACIAS SAVIA

    11,525            

MAYAGUEZ

WESTERN PLAZA

 

2006

    354,675       99.4  

HOME DEPOT

    109,800  

CARIBBEAN CINEMA

    45,126  

SAM'S CLUB

    100,408  

PONCE

PONCE TOWNE CENTER

 

2006

    200,294       93.5  

2000 CINEMA CORP.

    60,000  

GOLDEN CORRAL

    13,559  

SUPERMERCADOS MAXIMO

    35,651  

TRUJILLO ALTO

TRUJILLO ALTO PLAZA

 

2006

    194,130       96.3  

GRAND STORES

    35,000  

ME SALVE

    22,415  

PUEBLO SUPERMARKET

    26,869  

SOUTH CAROLINA

                                                   

CHARLESTON

ST. ANDREWS CENTER

 

1978

    187,905       100.0  

BURLINGTON

    35,351  

PETCO

    15,314  

HARRIS TEETER

    52,334  

CHARLESTON

WESTWOOD PLAZA

 

1995

    180,845       100.0  

BARNES & NOBLE

    25,389  

TJ MAXX

    25,240  

HARRIS TEETER

    53,000  

GREENVILLE

WOODRUFF S.C.

 

2010

    118,452       100.0  

ACADEMY SPORTS & OUTDOORS

    89,510            

TRADER JOE'S

    12,836  

GREENVILLE

FOREST PARK

 

2012

    51,103       100.0                      

THE FRESH MARKET

    20,550  

TENNESSEE

                                                   

CORDOVA

THE COMMONS AT DEXTER LAKE

 

2021

    228,796       95.2  

CRUNCH FITNESS

    36,000  

MARSHALLS

    30,000  

KROGER

    69,300  

MADISON

OLD TOWNE VILLAGE

 

1978

    175,593       100.0  

OLD TIME POTTERY

    99,400            

WALMART NEIGHBORHOOD MARKET

    39,687  

MEMPHIS

MENDENHALL COMMONS

 

2021

    88,108       98.7                      

KROGER

    74,685  

MEMPHIS

HIGHLAND SQUARE

 

2021

    14,490                                        

TEXAS

                                                   

AMARILLO

WESTGATE PLAZA

KIR

1997

    488,022       99.1  

HOME DEPOT

    109,800  

KOHL'S

    94,680            

AUSTIN

CENTER OF THE HILLS (3)

 

1998

    139,564       92.6  

TESLA

    64,310  

PETCO

    13,108            

AUSTIN

SUNSET VALLEY MARKETFAIR

PRU

2007

    213,352       98.0  

PAINTED TREE BOUTIQUES

    42,098  

HOMESENSE

    28,730            

AUSTIN

MUELLER REGIONAL RETAIL CENTER

 

2021

    357,087       100.0  

HOME DEPOT

    113,341  

BEST BUY

    29,404  

SPROUTS FARMERS MARKET

    20,171  

AUSTIN

HOMESTEAD S.C.

OJV

2011

    88,824       95.8  

BARNES & NOBLE

    24,685  

PETCO

    12,350            

AUSTIN

ROUND ROCK S.C.

OJV

2011

    131,039       100.0  

GATTI LAND EATER-TAINMENT

    31,094  

O'REILLY AUTO PARTS

    29,678            

AUSTIN

CENTURY SOUTH S.C.

OJV

2011

    207,538       98.7  

ACADEMY SPORTS & OUTDOORS

    61,452  

PACIFIC RESOURCES ASSOCIATES

    46,690            

BELLAIRE

BELLAIRE BLVD S.C.

 

2021

    37,699       100.0  

HOUSTON METHODIST

    34,076                      

BROWNSVILLE

LAS TIENDAS PLAZA

 

2005

    238,683       92.4  

BURLINGTON

    80,274  

TJ MAXX

    28,460            

BROWNSVILLE

NORTH TOWNE PLAZA - BROWNSVILLE

 

2021

    27,846       65.6  

FIRST NATIONAL BANK TEXAS

    14,680                      

BURLESON

GATEWAY STATION

 

2011

    367,552       98.4  

KOHL'S

    86,584  

ROSS DRESS FOR LESS

    30,187  

ALBERTSONS (4)

    54,340  

COLLEGE STATION

ROCK PRAIRIE MARKETPLACE

 

2021

    31,603       59.0                                

CONROE

CONROE MARKETPLACE

 

2015

    289,322       98.1  

ASHLEY FURNITURE HOMESTORE

    48,000  

TJ MAXX

    32,000            

DALLAS

CITYPLACE MARKET

KIR

1998

    83,868       100.0  

ROSS DRESS FOR LESS

    28,160  

OFFICEMAX

    23,500  

TARGET (4)

    130,715  

DALLAS

PRESTON FOREST VILLAGE

PRU

2007

    171,143       98.6  

CVS

    16,799  

RALLY HOUSE

    10,800  

NATURAL GROCERS

    15,130  

FORT WORTH

MONTGOMERY PLAZA

 

2015

    286,737       97.9  

MARSHALLS/HOMEGOODS

    38,032  

ROSS DRESS FOR LESS

    30,079  

TARGET (4)

    173,890  

FRISCO

PRESTON LEBANON CROSSING

 

2006

    240,647       97.7  

HOBBY LOBBY / MARDELS

    81,392  

DICK’S WAREHOUSE SALE

    50,000  

SPROUTS FARMERS MARKET

    26,043  

GALVESTON

GALVESTON PLACE

 

2021

    209,152       94.8  

SPEC'S LIQUOR

    29,845  

OFFICE DEPOT

    29,813  

RANDALL'S

    52,550  

GRAND PRAIRIE

LAKE PRAIRIE TOWNE CROSSING

 

2006

    243,940       98.1  

24 HOUR FITNESS

    30,000  

ROSS DRESS FOR LESS

    29,931  

TARGET (4)

    173,890  

HOUSTON

CYPRESS TOWNE CENTER

 

2005

    279,210       99.1  

TJ MAXX

    32,000  

ROSS DRESS FOR LESS

    30,187  

TARGET (4)

    125,400  

HOUSTON

THE CENTRE AT COPPERFIELD

 

2015

    144,055       100.0  

BEST BUY

    35,317  

HOMEGOODS

    31,620            

HOUSTON

COPPERWOOD VILLAGE

 

2015

    350,787       83.4  

MARSHALLS

    30,382  

PARTY CITY

    23,500  

FOOD TOWN (4)

    57,539  

HOUSTON

TOMBALL CROSSING

 

2013

    144,865       94.3  

ROSS DRESS FOR LESS

    30,176  

OLD NAVY

    19,222            

HOUSTON

COPPERFIELD VILLAGE

 

2015

    163,138       97.5  

ROSS DRESS FOR LESS

    26,000  

TOTAL WINE & MORE

    23,608  

SPROUTS FARMERS MARKET

    29,582  

HOUSTON

RIVER OAKS S.C. WEST

 

2021

    315,177       92.7  

BARNES & NOBLE

    33,179  

KELSEY SEYBOLD CLINIC

    12,538  

KROGER

    55,670  

HOUSTON

HEIGHTS PLAZA

 

2021

    71,277       96.4  

GOODWILL INDUSTRIES

    24,841            

KROGER

    32,390  

HOUSTON

WESTHILL VILLAGE

 

2021

    130,851       94.6  

ROSS DRESS FOR LESS

    27,685  

99 CENTS ONLY

    24,061            

HOUSTON

BLALOCK MARKET

 

2021

    97,277       100.0                      

99 RANCH MARKET

    83,791  

HOUSTON

THE CENTRE AT POST OAK

 

2021

    183,940       94.3  

MARSHALLS

    40,000  

NORDSTROM RACK

    30,017            

HOUSTON

RICHMOND SQUARE (3)

 

2021

    70,619       100.0  

BEST BUY

    58,321  

BURLINGTON

    26,941            

HOUSTON

ALABAMA SHEPHERD S.C.

 

2021

    59,120       100.0  

PETSMART

    22,283  

WHOLE EARTH PROVISION CO.

    16,218  

TRADER JOE’S

    14,566  

HOUSTON

SHOPPES AT MEMORIAL VILLAGES

 

2021

    166,777       85.0  

GULF COAST VETERINARY

    82,658                      

HOUSTON

HEB - DAIRY ASHFORD & MEMORIAL

 

2021

    36,874       100.0                      

HEB GROCERY

    36,874  

HOUSTON

SHOPS AT HILSHIRE VILLAGE

 

2021

    119,082       100.0  

WALGREENS

    15,120            

KROGER

    63,373  

HOUSTON

VILLAGE PLAZA AT BUNKER HILL

 

2021

    491,686       99.8  

ACADEMY SPORTS & OUTDOORS

    86,120  

BURLINGTON

    40,000  

HEB GROCERY

    127,983  

HOUSTON

WESTCHASE S.C.

 

2021

    214,856       97.2  

PAINTED TREE BOUTIQUES

    38,800  

ROSS DRESS FOR LESS

    30,000  

WHOLE FOODS MARKET

    45,489  

HOUSTON

OAK FOREST

 

2021

    161,687       100.0  

ROSS DRESS FOR LESS

    27,955  

DOLLAR TREE

    15,120  

KROGER

    65,206  

HOUSTON

SHOPS AT KIRBY DRIVE

 

2021

    10,000       70.1                      

SPROUTS FARMERS MARKET (4)

    26,000  

HOUSTON

SHOPS AT THREE CORNERS

 

2021

    251,972       94.5  

ROSS DRESS FOR LESS

    30,187  

BIG LOTS

    22,050  

FIESTA

    80,676  

HUMBLE

ATASCOCITA COMMONS

 

2013

    316,574       100.0  

KOHL'S

    88,827  

DICK'S SPORTING GOODS

    50,530  

TARGET (4)

    180,000  

KINGWOOD

KINGS CROSSING

 

2021

    127,296       100.0  

LA FITNESS

    40,000  

ACE HARDWARE

    29,199            

LAREDO

NORTH CREEK PLAZA

 

2021

    240,265       94.7  

BEST BUY

    45,699  

MARSHALLS

    40,000  

HEB GROCERY (4)

    59,840  

LAREDO

PLANTATION CENTRE

 

2021

    137,177       92.9                      

HEB GROCERY

    86,536  

LAREDO

INDEPENDENCE PLAZA - LAREDO

 

2021

    347,339       99.6  

HOBBY LOBBY

    55,000  

ROSS DRESS FOR LESS

    30,187  

HEB GROCERY

    147,324  

MCALLEN

TRENTON CROSSING - NORTH MCALLEN

 

2021

    265,566       87.9  

HOBBY LOBBY

    55,000  

ROSS DRESS FOR LESS

    30,164  

TARGET (4)

    123,693  

MCALLEN

OLD NAVY - MCALLEN

OJV

2021

    15,000       100.0  

OLD NAVY

    15,000                      

MCALLEN

MARKET AT NOLANA

OJV

2021

    41,138       85.5                      

WALMART (4)

    205,113  

MCALLEN

LAS TIENDAS S.C.

OJV

2021

    287,952       98.4  

DICK'S SPORTING GOODS

    76,100  

TOTAL WINE & MORE

    33,574            

MCALLEN

NORTHCROSS S.C.

OJV

2021

    74,765       81.3  

BARNES & NOBLE

    24,864                      

MCALLEN

MCALLEN CENTER

OJV

2021

    103,631       46.9  

TRUFIT ATHLETIC CLUB

    48,631                      

MESQUITE

KROGER PLAZA

 

1974

    79,550       100.0                      

KROGER

    51,000  

MISSION

SHARYLAND TOWNE CROSSING

OJV

2021

    360,889       97.7  

ROSS DRESS FOR LESS

    29,798  

TJ MAXX

    28,000  

HEB GROCERY

    148,270  

MISSION

MARKET AT SHARYLAND PLACE

OJV

2021

    107,912       95.4  

KOHL'S

    89,912  

DOLLAR TREE

    10,000  

WALMART (4)

    186,000  

PASADENA

FAIRWAY PLAZA

KIR

1999

    410,071       99.2  

BEST BUY

    36,896  

ROSS DRESS FOR LESS

    30,187            

PLANO

ACCENT PLAZA

 

1996

    100,598       100.0  

HOME DEPOT EXPO

    97,798                      

RIO GRANDE CITY

STARR PLAZA

OJV

2021

    176,693       84.5  

MARSHALLS

    24,000            

HEB GROCERY

    109,121  

SAN ANTONIO

FIESTA TRAILS

 

2021

    362,020       97.2  

BOB MILLS FURNITURE

    96,000  

BEST BUY

    37,000  

HEB GROCERY (4)

    78,000  

SAN ANTONIO

STEVENS RANCH

 

2021

    32,611       92.5                      

HEB GROCERY (4)

    100,000  

SPRING

GRAND PARKWAY MARKETPLACE

 

2014

    583,699       97.2  

ACADEMY SPORTS & OUTDOORS

    63,182  

HOBBY LOBBY

    55,000  

TARGET (4)

    126,844  

SUGAR LAND

WOODBRIDGE S.C.

 

2012

    96,623       98.3                      

KROGER

    64,842  

TOMBALL

TOMBALL MARKETPLACE

 

2021

    168,724       92.4  

ROSS DRESS FOR LESS

    25,000  

MARSHALLS

    25,000            

WEBSTER

CENTER AT BAYBROOK

 

2006

    363,830       99.0  

HOBBY LOBBY

    100,086  

BEL FURNITURE

    58,842            

WEBSTER

BAYBROOK GATEWAY

 

2021

    241,149       88.1  

ASHLEY FURNITURE HOMESTORE

    45,000  

BARNES & NOBLE

    32,000            

VIRGINIA

                                                   

ALEXANDRIA

HILLTOP VILLAGE CENTER

 

2021

    250,811       100.0  

LA FITNESS

    35,000            

WEGMANS

    128,357  

ALEXANDRIA

WEST ALEX-RETAIL

 

2021

    98,051       98.5                      

HARRIS TEETER

    61,816  

ARLINGTON

CENTRO ARLINGTON

 

2021

    72,367       100.0                      

HARRIS TEETER

    51,518  

BURKE

BURKE TOWN PLAZA

 

2014

    124,148       100.0  

CVS

    12,380            

SAFEWAY

    53,495  

FAIRFAX

COSTCO PLAZA - FAIRFAX

KIR

1998

    341,727       100.0  

HOME DEPOT

    126,290  

24 HOUR FITNESS

    42,837  

COSTCO

    139,658  

FAIRFAX

MAIN STREET MARKETPLACE

PRU

2007

    96,862       100.0  

TJ MAXX

    27,888  

WALGREENS

    15,230            

FAIRFAX

OLD TOWN PLAZA

 

2007

    52,946       96.2                                

LEESBURG

BATTLEFIELD S.C.

PRU

2007

    317,292       99.0  

DICK'S SPORTING GOODS

    43,149  

BIG LOTS

    36,958  

SPROUTS FARMERS MARKET

    24,770  

PENTAGON CITY

PENTAGON CENTRE

CPP

2010

    340,889       100.0  

MARSHALLS

    42,142  

BEST BUY

    36,532  

COSTCO

    171,286  

STAFFORD

DOC STONE COMMONS

 

2016

    101,042       100.0  

STAPLES

    23,942  

PETCO

    12,000  

GIANT FOOD

    61,500  

STAFFORD

STAFFORD MARKETPLACE

 

2015

    417,827       98.6  

KOHL'S

    87,101  

TJ MAXX

    30,545  

SHOPPERS FOOD

    67,995  

STERLING

POTOMAC RUN PLAZA

 

2008

    361,110       98.2  

REGENCY FURNITURE

    45,210  

MICHAELS

    35,333  

TARGET (4)

    125,204  

STERLING

DULLES TOWN CROSSING

 

2015

    808,442       100.0  

WALMART

    209,613  

LOWE'S HOME CENTER

    135,197  

SAM'S CLUB

    135,193  

WOODBRIDGE

GORDON PLAZA (3)

 

2017

    140,633       100.0  

REGENCY FURNITURE

    73,882  

THE SALVATION ARMY

    17,070  

ALDI

    16,530  

WOODBRIDGE

SMOKETOWN STATION-BLOCK 1

KIR

1998

    503,788       98.7  

HOBBY LOBBY

    63,971  

DICK'S SPORTING GOODS

    57,437            

WOODBRIDGE

STONEBRIDGE AT POTOMAC TOWN CENTER

2023

    504,327       95.9  

ONELIFE FITNESS

    42,401  

ALAMO DRAFTHOUSE CINEMA

    40,980  

WEGMANS

    138,500  

WASHINGTON

                                                   

AUBURN

AUBURN NORTH

 

2007

    174,855       88.6  

LA FITNESS

    34,500  

OFFICE DEPOT

    23,070            

BELLEVUE

THE MARKETPLACE AT FACTORIA

 

2013

    508,173       95.2  

TARGET

    101,495  

NORDSTROM RACK

    41,258  

AMAZON FRESH

    24,900  

COVINGTON

COVINGTON ESPLANADE

 

2021

    187,388       94.8  

HOME DEPOT

    130,948                      

FEDERAL WAY

PAVILIONS CENTRE

KIR

2000

    202,322       100.0  

JOANN

    43,506  

BARNES & NOBLE

    24,987  

H MART

    55,069  

KENT

CANYON RIDGE PLAZA

PRU

2006

    86,909       87.0  

ROSS DRESS FOR LESS

    27,200  

OLD NAVY

    12,500  

TARGET (4)

    115,900  

LAKE STEVENS

FRONTIER VILLAGE S.C.

 

2012

    188,259       98.7  

MICHAELS

    22,389  

ROSS DRESS FOR LESS

    22,354  

SAFEWAY

    61,000  

MILL CREEK

GATEWAY S.C.

 

2016

    96,671       98.2  

PLANET FITNESS

    25,333            

SPROUTS FARMERS MARKET

    29,942  

PUYALLUP

MERIDIAN TOWN CENTER

OIP

2021

    77,666       100.0  

JOANN

    35,023  

ACE HARDWARE

    20,849  

SAFEWAY (4)

    65,691  

PUYALLUP

SOUTH HILL CENTER

OIP

2021

    134,010       72.9  

BEST BUY

    45,365  

ROSS DRESS FOR LESS

    30,139            

SEATTLE

JEFFERSON SQUARE

PRU

2006

    86,060       100.0  

BARTELL DRUGS

    13,327            

SAFEWAY

    39,556  

SEATTLE

THE WHITTAKER

 

2021

    63,663       100.0                      

WHOLE FOODS MARKET

    41,000  

SEATTLE

QUEEN ANNE MARKETPLACE

OIP

2021

    80,488       75.7                      

METROPOLITAN MARKET

    48,350  

SEATTLE

RAINIER VALLEY SQUARE

OIP

2021

    110,803       98.9  

ROSS DRESS FOR LESS

    25,692            

SAFEWAY

    64,186  

SEATTLE

2200 WESTLAKE RETAIL

OIP

2021

    87,014       96.8                      

WHOLE FOODS MARKET

    47,367  

SILVERDALE

SILVERDALE PLAZA

 

2012

    170,403       94.0  

JOANN

    29,903  

RITE AID

    23,470  

SAFEWAY

    55,000  

SPOKANE

FRANKLIN PARK S.C.

 

2015

    124,691       70.6  

ROSS DRESS FOR LESS

    25,000  

OLD NAVY

    18,563  

TRADER JOE'S

    12,052  

TUKWILA

PARKWAY SUPER CENTER

KIR

2003

    468,857       91.9  

DICK'S SPORTING GOODS

    53,545  

MACY'S FURNITURE

    48,670  

LAM'S SEAFOOD MARKET

    28,136  

TOTAL 530 SHOPPING CENTER PROPERTY INTERESTS (5)

    91,855,203                                        

 

(1)

Percent leased information as of December 31, 2023.

(2)

Denotes tenants who are Dark & Paying.

(3)

Denotes projects which exclude GLA of units being held for redevelopment.

(4)

Denotes tenants who are Shadow Anchors.

(5)

Does not include 14 properties, primarily through the Company’s preferred equity investments, other real estate investments and non-retail properties, totalling approximately 3.3 million square feet of GLA.

CPP

Denotes property interest in Canada Pension Plan.

KIR

Denotes property interest in Kimco Income REIT.

OIP

Denotes property interest in Other Institutional Programs.

OJV

Denotes property interest in Other US Joint Ventures.

PRU

Denotes property interest in Prudential Investment Program.