Kimco Realty and RPT Realty announced a definitive merger agreement on Monday, under which RPT will be acquired by Kimco in an all-stock transaction valued at approximately $2 billion. This includes the assumption of debt and preferred stock. Upon closing, Kimco is expected to have a pro forma equity market capitalization of approximately $13 billion and total enterprise value of around $22 billion.
The acquisition will add 56 open-air shopping centers with 13.3 million square feet of gross leasable area to Jericho, NY-based Kimco’s existing portfolio comprising 528 properties; as well as New York City-based RPT’s 6% stake in a 49-property net lease joint venture. The deal is anticipated to strengthen Kimco’s presence in its key markets while providing embedded growth opportunities including redevelopment projects – though some Midwest properties within the portfolio are not consistent with their strategy so these may be divested over time if necessary.
Conor Flynn, CEO at Kimco commented: “This transaction presents another exciting opportunity for our Company to deepen our presence in key Coastal and Sun Belt markets while accelerating our growth at an attractive valuation… Approximately 70% of RPT’s portfolio aligns with our key strategic markets; plus there’s substantial pipeline signed leases that haven’t yet opened up along with 20% or greater mark-to market leasing spread across the entire portfolio – this should drive higher growth for us combined.” J P Morgan serves as financial advisor whilst Wachtell Lipton Rosen & Katz acts legal advisor for Kimceo; Lazard provides financial advice alongside Goodwin Procter LLP acting legal counsel for RPF . The acquisition is scheduled close early 2024 pending regulatory approval processes etcetera..
