The two firms entered into joint ventures in 2002 and 2003,which included the option that either would be entitled to certainpreferred returns on contributed equity. Cedar paid to Kimco $17.5million for the four properties, funding the transaction from itsrevolving credit facility.


Valued at approximately $52.9 million, their current debt isapproximately $27.3 million. The acquisition is expected to beaccretive to the company's FFO on an annual basis in the amount ofapproximately $0.015 per share/OP Unit--approximately $0.005 to itsnet income per share.


According to Leo Ullman, Cedar's CEO, one of the advantages ofthe deal's structure is that it eliminates the continuance of apreferred return structure, in effect replacing it with muchcheaper debt, "while permitting our company to benefit from futuregrowth of these fine supermarket-anchored properties, whichcontinue to evidence strong results." Ullman also notes that the484,500-sf portfolio dovetails with the company's developmentstrategyas two of the properties are already included in its revealedpipeline allowing the company to improve its return on investmentas full owners of the assets.

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