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NEW HYDE PARK, NY-Kimco Realty Corp. has signed a merger agreement to acquire Atlantic Realty Trust for $82.5 million. The New York City-based Atlantic is a Maryland REIT formed for the purpose of liquidating its interests in real properties, its mortgage loan portfolio and certain other assets and liabilities which were transferred from Ramco-Gershenson Properties Trust. It owns one retail property, the Hylan Plaza Shopping Center in Staten Island.

Under the terms of the agreement, Kimco will also acquire the amount of Atlantic Realty's cash on hand at closing and certain agreed-upon lease expenses less merger expenses and other liabilities. On the last business day prior to closing Atlantic Realty will declare a dividend in an amount necessary for it to qualify as a REIT. The merger consideration will be paid in shares of Kimco common stock valued on the final full trading day before closing.

Atlantic Realty currently estimates that as of today it has cash on hand and has incurred approved lease expenses of $9.6 million and anticipates that it will have merger expenses and other liabilities for which it is responsible of at least $10.4 million. The merger is subject to approval by Atlantic Realty shareholders and to customary closing conditions.

Kimco has interests in 946 properties comprising approximately 127 million sf of leasable space located throughout 43 states, Canada and Mexico.For the third quarter, ended Sept. 30, Kimco had announced net income of $85.3 million compared to $78.5 million a year earlier, an increase of 8.7%. Kimco's third quarter funds from operations rose 14.4% to $116.3 million from $101.6 million for the same period last year. During the quarter, Kimco's acquired all the shares of GDE Properties Corp., a private entity that owned a portfolio of three supermarket anchored properties located in Southern and Central California for approximately $104.5 million.

Instant Insights /

Kimco, Atlantic Realty Merge

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