The company has reduced its planned transaction income, whichhad totaled almost $675 million over the last five years, to nearlyzero for the fourth quarter because of the lack of credit availableto buyers. While Kimco is "uniquely positioned" to acquire andmanage large portfolios for institutional investors, many potentialacquirers are sitting on the sidelines waiting for the capitalmarkets to stabilize, said David Henry, vice chairman and chiefinvestment officer.

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"The real estate markets have changed, and continue to changedramatically," Henry said. "From a new business perspective, wehave responded by adopting a more focused strategy across ouroperating business. We plan on concentrating on retail propertiesthat will align us with our core experience."

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KDI, its fee merchant building division, has been merged intoKimco's redevelopment staff. Only two KDI development projects wereapproved and closed in 2007, and one this year. In addition, Kimcowill limit its investment activity to retail investment and remainscommitted to Canada and Mexico. Henry noted that retailers such asWal-Mart and Costco, which have slowed expansion in the US, arecontinuing to grow in Mexico.

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The company's US centers benefit from locations close to majorcities, and a tenant mix that consists of necessity retailers, saidDavid Lukes, executive vice president. Lease turnover is higherthan last year, though new leases also are at an all time high, hesaid.

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Net income available to common shareholders was $96.8 millionfor the third quarter, up from $75.1 million in the same periodlast year. Funds from operations (FFO) were $176.9 million, up from$146.6 million in the year-ago period. Occupancy was 95.4%.

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As of Sept. 30, Kimco owned interests in 1,945 propertiescomprising 182 million square feet of leasable space across 45states, Puerto Rico, Canada, Mexico, Chile, Brazil and Peru.

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