Kimco Realty Corporation, a Maryland corporation, is one of the nation’s largest
owners and operators of neighborhood and community shopping centers. The Company
is a self-administered real estate investment trust (“REIT”) and manages its properties
through present management, which has owned and operated neighborhood and community
shopping centers for over 45 years. The Company has not engaged, nor does it expect
to retain, any REIT advisors in connection with the operation of its properties.
As of February 6, 2006, the Company had interests in 1,046 properties, totaling
approximately 135.5 million square feet of gross leasable area (“GLA”) located
in 44 states, Canada and Mexico. In addition, the Company manages 11 properties
totaling 1.7 million square feet of GLA on behalf of third party owners.
The Company’s executive offices are located at 3333 New Hyde Park Road, New
Hyde Park, New York 11042-0020 and its telephone number is (516) 869-9000. Unless
the context indicates otherwise, the term the “Company” as used herein is intended
to include subsidiaries of the Company.
During 1998, the Company, through a merger transaction, completed the acquisition
of The Price REIT, Inc., a Maryland corporation, (the “Price REIT”). Prior to
the merger, Price REIT was a self-administered and self-managed equity REIT
that was primarily focused on the acquisition, development, management and redevelopment
of large retail community shopping center properties concentrated in the western
part of the United States. In connection with the merger, the Company acquired
interests in 43 properties, located in 17 states. With the completion of the
Price REIT merger, the Company expanded its presence in certain western states
including California, Arizona and Washington. In addition, Price REIT had strong
ground-up development capabilities. These development capabilities, coupled
with the Company’s own construction management expertise, provide the Company,
on a selective basis, the ability to pursue ground-up development opportunities.
The Company has expanded its management business through the establishment of
other various institutional joint venture programs in which the Company has
non-controlling interests ranging from generally 5% to 30%. The Company earns
management fees, acquisition fees, disposition fees and promoted interests based
on value creation.
Investment and Operating Strategy The Company’s investment objective has been
to increase cash flow, current income and, consequently, the value of its existing
portfolio of properties, and to seek continued growth through (I) the strategic
re-tenanting, renovation and expansion of its existing centers and (II) the
selective acquisition of established income-producing real estate properties
and properties requiring significant re-tenanting and redevelopment, primarily
in neighborhood and community shopping centers in geographic regions in which
the Company presently operates. The Company will consider investments in other
real estate sectors and in geographic markets where it does not presently operate
should suitable opportunities arise.
The Company’s neighborhood and community shopping center properties are designed
to attract local area customers and typically are anchored by a discount department
store, a supermarket or a drugstore tenant offering day-to-day necessities rather
than high-priced luxury items. The Company may either purchase or lease income-producing
properties in the future, and may also participate with other entities in property
ownership through partnerships, joint ventures or similar types of co-ownership.
Equity investments may be subject to existing mortgage financing and/or other
indebtedness. Financing or other indebtedness may be incurred simultaneously
or subsequently in connection with such investments. Any such financing or indebtedness
will have priority over the Company’s equity interest in such property. The
Company may make loans to joint ventures in which it may or may not participate.
Competition As one of the original participants in the growth of the shopping
center industry and one of the nation’s largest owners and operators of neighborhood
and community shopping centers, the Company has established close relationships
with a large number of 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.
