Terms

Series

5.25% Class M Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

5.25%

Rate Type

Fixed

Annual Dividend

$1.31

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

December 20, 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 M Preferred Stockholders, Debt And Preferred Equity Of Subsidiaries And Joint Ventures (Structural Subordination); Pari Passu With: Class I Preferred Stock, Class J Preferred Stock, Class K Preferred Stock, Class L Preferred Stock; Senior To: Common Stock, All Equity Securities Ranking Junior To Class M 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

9,200,000

Prospectus Summary

Kimco Realty Corporation, a Maryland-based REIT and one of the nation's largest owners of open-air shopping centers, is offering 9,200,000 depositary shares, each representing 1/1000th of a share of its 5.25% Class M Cumulative Redeemable Preferred Stock, with a liquidation preference of $25.00 per depositary share. The fixed annual dividend of $1.3125 per depositary share ($0.328125 quarterly) accrues cumulatively from issuance, meaning that if Kimco fails to pay dividends in any period, those arrears must be made whole before any distributions can be made to common stockholders — a meaningful protection for income investors. The preferred stock is not callable until December 20, 2022, at which point Kimco may redeem it at $25.00 per depositary share plus accrued dividends. The Class M preferred stock sits above Kimco's common stock and all junior equity securities in the capital stack, and ranks on parity with its outstanding Class I, J, K, and L preferred stock. It is structurally subordinated to all of Kimco's existing and future debt (~$5.6 billion consolidated as of September 30, 2017) and to any equity securities that receive senior status by two-thirds holder consent. Critically, because Kimco operates primarily through subsidiaries and joint ventures, distributions to preferred holders depend on cash flowing up from those entities, whose creditors and preferred equity holders have prior claims — a structural subordination risk investors should weigh carefully. Kimco also retains a REIT-preservation redemption right, allowing it to call shares prior to 2022 if a holder's ownership threatens Kimco's REIT qualification. At the $25.00 offering price, the effective yield is 5.25%, with dividends paid quarterly on January 15, April 15, July 15, and October 15, commencing April 15, 2018. The record date is the first day of the calendar month in which each payment date falls (or a board-designated date 10–30 days prior). As a REIT, Kimco's dividends are generally not eligible for the qualified dividend income (QDI) rate or the corporate dividends-received deduction (DRD); they are typically treated as ordinary income, though a portion may qualify as return of capital or capital gain distributions depending on Kimco's taxable income composition each year. The dividend stopper provision bars any cash distributions on common or junior equity until all cumulative Class M arrears are paid current.

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 M preferred stock for all past periods, it cannot pay dividends on or repurchase its common stock or any equity securities junior to or on parity with the Class M preferred stock.

Other Preferreds from Kimco Realty Corporation

Div Score Breakdown

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