Kimco Realty (KIM) Updates Outlook; Expects to Reduce Dividend

April 2, 2009 5:03 PM EDT

Kimco Realty Corporation (NYSE: KIM) provided updates on its financing and leasing activities, as well as updates on its 2009 guidance and dividends.

During the first quarter of 2009, the company obtained approximately $212 million in secured debt commitments. These commitments were sourced from five different lenders for the financing of six individual properties. These loans are expected to have maturities ranging from three to 15 years with interest rates ranging from 5.95% to 7.625%. The company closed the financing for one property totaling $35 million on March 31, 2009 and expects to close the others during the second quarter. In addition, the company is currently negotiating term sheets for financing secured by 14 properties that is expected to generate proceeds of approximately $193 million. The company is also pursuing additional secured debt secured by nine other properties that it believes may generate proceeds of approximately $197 million.

The company has paid a dividend of $0.44 per share in the first quarter of 2009 and has declared a dividend of $0.44 per share to be paid in the second quarter of 2009. Recognizing the need to maintain maximum financial flexibility in light of the current state of the capital markets, and considering the dividend requirements for the increased number of shares expected to be outstanding upon completion of the common stock offering announced today, the company expects to reduce its dividend payments for the balance of 2009. The company expects to pay $0.06 per share in each of the third and fourth quarters of 2009.

The company estimates that its Funds From Operations ("FFO"), a widely accepted supplemental measure of REIT performance, will be between $1.70 and $1.85 per diluted common share for the year ending December 31, 2009. (Consensus is $1.73)

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