Kimco Realty Seals $2 Billion Deal Acquiring RPT Realty & Boosts Portfolio with 56 Open-Air Centers

Kimco Realty, a major player in the real estate market, has successfully concluded its $2 billion acquisition of RPT Realty, based in New York. This strategic move enhances Kimco's position as the largest publicly traded owner and operator of grocery-anchored shopping centers in North America.

Expanding the Portfolio with Prime Assets

With the completion of this deal, Kimco now adds 56 open-air centers, 43 of which are wholly owned, with a combined gross leasable area of 13.3 million square feet. Notable additions include Mary Brickell Village, a substantial grocery-anchored mixed-use property in Miami, and Northborough Crossing, a Wegmans-anchored shopping center in Northborough, Mass. This acquisition significantly bolsters Kimco's existing portfolio of 527 properties.

Strategic Benefits and Earnings Accretion

Analysts Haendel St. Juste and Ravi Vaidya of Mizuho Securities USA foresaw the advantages of this deal when it was announced in August. They highlighted the potential for Kimco to achieve its goal of generating 15 percent of its Net Operating Income (NOI) from mixed-use properties by 2025. The all-stock transaction also brings about earnings accretion through initial cost-saving synergies of approximately $34 million, with 85 percent expected to materialize in 2024.

Executing a Vision: Expanding in Coastal and Sun Belt Markets

This acquisition aligns with Kimco's broader strategy to strengthen its foothold in Coastal and Sun Belt markets. While planning to divest some Midwest assets, Kimco remains focused on growing its portfolio. As of September 30, Kimco owned interests in shopping centers and mixed-use assets totaling a substantial 90 million square feet.

Building on Successful Partnerships

Kimco's interest extends beyond acquisitions to successful partnerships, such as the joint venture formed by RPT in 2019 with Singapore sovereign wealth fund GIC. This venture, which involved a significant investment in U.S. open-air shopping centers, has proven successful. With this acquisition, Kimco looks forward to combining GIC's extensive real estate investing history with its own expertise to capitalize on long-term opportunities in the sector.