Kimco Realty Corporation Announces Restructure Into UPREIT

Kimco Realty Corporation intends to complete a holding company reorganization, which would restructure the company as an Umbrella Partnership Real Estate Investment Trust, or UPREIT.

The company said the reorganization is not anticipated to have any material impact on its financial position and is not expected to result in any material changes to the combined financial statements, outstanding debt securities, material debt facilities, or business operations.

A new holding company, or New Kimco, will become the publicly traded parent company by way of an intercompany merger, assuming the existing name of Kimco Realty Corporation.

The reorganization is intended to align the company’s corporate structure with other publicly traded US real estate investment trusts and provide a platform for the company to more efficiently acquire properties in a tax-deferred manner.

The current corporation, or Old Kimco, will convert to a limited liability company called Kimco Realty OP LLC or Kimco OP, controlled by the publicly traded parent company. Following this, Kimco OP will function as the operating partnership in the UPREIT structure.

The merger is anticipated to be effective as of January 1, 2023, and the conversion is expected to be effective promptly thereafter.