JERICHO, N.Y.--(BUSINESS WIRE)--Kimco Realty Corp. (NYSE: KIM), one of North America’s largest publicly traded owners and operators of open-air, grocery-anchored shopping centers and mixed-use assets, today announced that the company will partially monetize its investment in Albertsons Companies, Inc. (Albertsons) in conjunction with Albertsons’ $1.75 billion sale of convertible preferred stock.

As outlined in the Albertsons announcement, the convertible preferred stock represents, on an as-converted basis, approximately 17.5% of pro forma common stock outstanding of Albertsons, with proceeds to be used to repurchase a portion of the common stock owned by Albertsons’ current shareholders. Kimco, which currently holds approximately a 9.29% ownership interest in Albertsons, expects to receive its allocable portion of the share repurchase and will subsequently retain approximately a 7.5% ownership interest in Albertsons after the completion of this transaction, which is expected to close by June 15, 2020, subject to customary closing conditions. Kimco expects to recognize a gain which will be determined upon closing of this transaction.

“Our shareholders continue to benefit from the company’s Albertsons investment, especially at a time when liquidity remains paramount,” stated Conor Flynn, Kimco’s Chief Executive Officer. “Our Albertsons investment continues to be the hallmark of Kimco’s Plus business, which has a long and successful history of investing in real estate rich retailers and other companies. With our remaining 7.5% residual ownership interest in Albertsons, this investment will further benefit our shareholders well into the future while strengthening and diversifying Kimco’s balance sheet.”

History

In 2006, a Cerberus-led investment group acquired 661 non-core Albertsons stores from Albertsons, Inc. Kimco invested approximately $51 million. In 2013, the investment group acquired the remaining Albertsons stores, as well as the grocery banners of Jewel-Osco, Acme, Shaws and Star Markets, from SUPERVALU for $3.3 billion, with Kimco investing an additional $37 million. At that time, Kimco purchased $33.6 million of SUPERVALU common stock, which was subsequently sold for $74 million resulting in approximately a $40 million gain. The consortium then acquired the Safeway grocery banner in 2015, with Kimco investing $85.3 million. Prior to any proceeds received from the repurchase of common stock held by Kimco in conjunction with Albertsons preferred stock sale, Kimco has received in excess of $300 million in cash distributions from its Albertsons investment, inclusive of the proceeds from the SUPERVALU stock sale.

About Kimco

Kimco Realty Corp. (NYSE:KIM) is a real estate investment trust (REIT) headquartered in Jericho, N.Y. that is one of North America’s largest publicly traded owners and operators of open-air, grocery-anchored shopping centers and mixed-use assets. As of March 31, 2020, the company owned interests in 401 U.S. shopping centers and mixed-use assets comprising 70 million square feet of gross leasable space primarily concentrated in the top major metropolitan markets. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 60 years. For further information, please visit www.kimcorealty.com, the company’s blog at blog.kimcorealty.com, or follow Kimco on Twitter at www.twitter.com/kimcorealty.