Terms

Series

5.125% Class L Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

5.125%

Rate Type

Fixed

Annual Dividend

$1.28

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

August 16, 2022

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Consolidated Indebtedness, Equity Securities Whose Senior Ranking Is Consented To By Two-Thirds Of Class L Preferred Stockholders, Debt And Preferred Equity Of Subsidiaries And Joint Ventures (Structural Subordination); Pari Passu With: Class I Cumulative Redeemable Preferred Stock, Class J Cumulative Redeemable Preferred Stock, Class K Cumulative Redeemable Preferred Stock; Senior To: Common Stock, All Equity Securities Ranking Junior To Class L Preferred Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Depositary Share Fraction

0.001

Shares Offered

9,000,000

Prospectus Summary

Kimco Realty Corporation, a Maryland-based REIT and one of the largest owners of open-air shopping centers in the U.S., is offering 9,000,000 depositary shares (each representing 1/1000th of a share of its 5.125% Class L Cumulative Redeemable Preferred Stock) at $25.00 per depositary share, with a matching liquidation preference. The fixed annual dividend is $1.28125 per depositary share ($0.320313 quarterly), first callable at par on August 16, 2022. This is a cumulative issue, meaning any unpaid dividends accrue and must be satisfied in full before Kimco can pay dividends on common stock or junior securities — providing holders a degree of income protection if the Board defers payments. The Class L preferred sits senior to Kimco's common stock and all junior equity, and ranks pari passu with the existing Class I, J, and K cumulative preferred. It is subordinate to all of Kimco's existing and future debt (approximately $5.4 billion consolidated as of June 30, 2017). As a holding company issuer, payments are also structurally subordinated to the debt, trade payables, and any preferred equity at Kimco's operating subsidiaries and joint ventures — meaning subsidiary creditors get paid first before cash flows up to the parent. The preferred may also be redeemed at any time (even before 2022) if necessary to preserve Kimco's REIT status under the IRC, which could occur if a holder's ownership triggers concentration-limit violations. At the $25.00 offering price, the effective yield is 5.125% annually. Dividends are paid quarterly on January 15, April 15, July 15, and October 15, with the record date set on the first day of the payment month (or another date 10–30 days before the payment date). As a REIT issuer, Kimco's dividends are generally not eligible for the qualified dividend income (QDI) preferential 15%/20% tax rate or the corporate dividends-received deduction (DRD), and are typically taxable as ordinary income to individual investors. The dividend stopper prevents any common or junior preferred dividends or repurchases if Class L cumulative dividends are not current, but note that dividends can be deferred by the Board without triggering a default — only accruing unpaid obligations.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Kimco has not paid full cumulative dividends on the Class L preferred stock for all past periods, it cannot pay dividends on or repurchase its common stock or any junior equity securities.

Other Preferreds from Kimco Realty Corporation

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 60 (Average)