U.S. Shopping Center Portfolio
- Pro-rata occupancy was 93.9 percent, an increase of 50 basis points sequentially and 80 basis points over the fourth quarter of 2011;
- U.S. same-property NOI increased 3.1 percent during the fourth quarter of 2012 compared to the same period in 2011; and
- Pro-rata U.S. cash-basis leasing spreads increased 11.8 percent; new leases increased 25.5 percent, and renewals/options increased 6.1 percent.
In addition, the U.S. shopping center portfolio’s pro-rata occupancy for small shop space (defined as space of less than 10,000 square feet) was 84.2 percent, an increase of 30 basis points sequentially and 170 basis points from the fourth quarter of 2011.
Shopping Center Investment Activity
As previously announced, during the fourth quarter, Kimco acquired seven properties in core markets for its consolidated portfolio, comprising 329,000 square feet, for a total price of $96.2 million, including $20 million of mortgage debt. In addition, the company purchased the remaining ownership interest in two unencumbered shopping centers from its joint venture partners, comprising 189,000 square feet, for a gross price of $29.6 million.
During 2012, the company acquired for its U.S. portfolio, the full interest in 24 shopping centers, comprising 2.7 million square feet, for a gross price of $540 million, including $179.2 million of mortgage debt. These properties have an average pro-rata occupancy of 97.2 percent and are supported by excellent demographics, including an average population and household income of 102,000 and $100,000, respectively, within a three-mile radius.
Also during 2012, the company, as part of separate joint ventures, acquired interests in three Canadian shopping centers, comprising 377,000 square feet for a gross price of USD $113.6 million, including $47.9 million of mortgage debt.
As previously announced, the company will participate in the consortium to acquire five grocery banners totaling 877 locations from SUPERVALU INC. (SVU) that includes Albertsons, Shaw’s, Jewel-Osco, Acme and Star Market chains. In addition, this investment group has initiated a tender offer for up to 30 percent of the outstanding shares of SVU. Kimco will contribute up to $76.5 million as its investment and hold approximately a 15 percent interest in the consortium.