Kimco Board authorizes dividend increase and accelerated payment dates, and appoints committee to review option to acquire nine shopping centers

Business Wire,  Nov 29, 1994  

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ROSLYN, N.Y.--(BUSINESS WIRE)--Nov. 29, 1994--Kimco Realty Corp. (NYSE-"KIM") announced today that its Board of Directors has declared an increase in the rate and an acceleration in the timing of payment of regular quarterly dividends payable on shares of the company's Common Stock.

The board increased by 8% to $.54 per share ($2.16 on an annualized basis) from $.50 per share the rate of regular quarterly distribution commencing with the company's dividend in respect of the fourth quarter of 1994. Payment of this dividend has been accelerated to Jan. 17, 1995, for the benefit of shareholders of record on Jan. 2, 1995, in order to more closely coincide the company's payment of its dividend with the due date of its individual shareholder's personal income tax payments. The company's regular quarterly dividends for the remainder of 1995 are expected to be paid on or about the 15th day of April, July and October.

In establishing this increased rate of dividend the board considered, among other things, the company's projected future funds from operations and the minimum annual distribution requirements under tax laws relating to real estate investment trusts.

The company also announced that a committee comprised of the independent members of its board has been formed to review the exercise of an option held by the company to acquire nine shopping centers from KC Holdings, Inc., an entity formed in connection with the company's initial public stock offering in November, 1991. The cash flow and equity value of these nine shopping centers have improved significantly since the IPO as a result of new leasing, renovations and the value created by satisfying at a substantial discount the majority of the debt which encumbered these properties at the time of the IPO. If purchased currently, the nine property portfolio would be expected to generate an initial yield on the company's investment in excess of 12%. Independent appraisals obtained by the committee have indicated the value of these nine shopping centers, which comprise 1.2 million square feet of leasable space, to be substantially above the approximate $39 million, or $33.00 per square foot, aggregate option purchase price to the company.

In addition to the nine shopping center portfolio, the company also holds options to acquire an additional 22 properties from KC Holdings, Inc.

Kimco, which has specialized in shopping center acquisition, development and management for over 25 years, owns the nation's largest, publicly traded portfolio of neighborhood and community shopping centers with 156 properties comprising nearly 21 million square feet of leasable space located throughout 25 states.

CONTACT: Kimco Realty Corp.

             Mary Jane Rehman
             516/484-7837

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