KIMCO REALTY CORP (KIM) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that KIMCO REALTY CORP surfaced in its latest filing.

• In February 2023, the Company experienced a criminal ransomware attack affecting data on legacy servers of Weingarten Realty Investors, which was acquired in August 2021.February 2023
• The Company completed efforts to exit its investments in Mexico and Canada.
• The State of California has adopted or is considering adopting requirements for various disclosures or actions on climate or other sustainability matters.
• The Company has adopted corporate responsibility goals, including GHG emissions reduction targets.
• The Company's Credit Facility, bank term loans, and senior unsecured debt indentures contain financial and operating covenants, including coverage ratios and limitations on incurring debt, making dividend payments, asset sales, mergers, consolidations, and certain acquisitions.
• The Company's charter prohibits ownership by any person of more than 9.8% of common stock or aggregate stock value, with shares in excess subject to transfer to a charitable trust.
• The Company has elected to be taxed as a REIT and must distribute annually at least 90% of its REIT taxable income; it owns interests in subsidiary REITs that must independently qualify.
• The Company's Umbrella Partnership Real Estate Investment Trust (UPREIT) structure may result in conflicts of interest with members of Kimco OP, and duties under Delaware law as managing member may conflict with duties to the corporation and stockholders under Maryland law.
• The Company is subject to a 4% nondeductible excise tax if distributions fall below 85% of ordinary income, 95% of capital gain net income, and 100% of undistributed prior-year income.
• If an acquired C corporation's assets are disposed of within five years, the Company could be required to pay tax on built-in gain; also, pre-acquisition earnings and profits must be distributed by the end of the acquisition year.
• The Company may be exposed to liabilities of acquired properties or companies, including unknown liabilities at the time of acquisition.
• The Americans with Disabilities Act of 1990 could require remedial steps with respect to existing or newly acquired properties.