Kimco Realty Corp. closed the full redemption of 9,000 shares of its issued and outstanding 5.500% class J cumulative redeemable preferred stock and 9.0 million depositary shares representing such stock.
The shopping center real estate investment trust redeemed the preferred stock at $25,000.00 apiece plus $290.278 in accrued and unpaid dividends on each share, while the depositary shares were redeemed at $25.00 apiece plus 29.028 cents in accrued and unpaid dividends on each share.
The company mainly financed the redemption of the preferred stock through the use of its at-the-market common stock equity offering program.
In the fourth quarter, the REIT raised $200.1 million in net proceeds by issuing 9.5 million common shares under its at-the-market program.
The company will recognize a noncash charge of about $7.2 million, or 2 cents per share, in the fourth quarter as a result of the redemption. The REIT said the charge will lower its net income and Nareit funds from operations per share by the same amount, but have no impact on its FFO as adjusted per share.
Nareit is the U.S.-based trade association for REITs and publicly traded real estate companies.