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Saul Centers Inc.PM S 2945 RGB CMYK R E A L T Y R E A L T Y R E A L T Y 2 0 1 0 A n n u Al R e p oR t R E A L T Y INTEGRITY | C RE ATIVITY | S TA BIL IT Y REALTYREALTYREALTYPM S 2945REALTYRGBCMYK I N T E G R I T Y | C R E AT I V I T Y | S TA B I L I T Y Kimco Realty owns North America’s largest portfolio of retail real estate. Our properties are located in 44 states, Puerto Rico, Canada, Mexico and South America. We have specialized in shopping center acquisitions, development and management for more than 50 years. Since our Initial Public Offering (IPO) almost 20 years ago, Kimco has generated a total annualized return for shareholders in excess of 13%. Chairman’s Letter ............................................................ 2010 Operating Review 3 Regaining Momentum ................................................. Continuing the Momentum in 2011 ........................ 7 The Kimco Spirit .......................................................... 12 1 Financial Form 10K .......................................................... 13 Shareholder Information ................................................ 138 Corporate Directory, Board of Directors.................. IBC CHAIRMAN’S LETTER “We have established a wonderful franchise in owning and operating neighborhood and com- munity shopping centers... focused on intrinsic real estate values and always prepared for the shifting fortunes of the retail tenant.” Milton Cooper Executive Chairman Dear Friends and Associates: In their letter that follows mine, Dave Henry and his sen- ior leadership team have set forth, in a thorough and thoughtful manner, our 2010 accomplishments and our strategy for the future. So permit me, in this letter, to share with you a bit of nostalgia and some random thoughts concerning our business. This coming November will mark the 20th anniversary of our IPO. Oh, what a difference 20 years can make! At the close of 1991, the Dow Jones industrial average was at 3,168. This was the first time it broke the 3,000 barrier. Yet interest rates were quite high; LIBOR was 7.4% and the Federal Reserve interest rate was 6.5%. Commercial real estate was horribly out of favor, and many investors viewed our asset class as the cause of the meltdown of the entire savings and loan industry. Despite the challenges, we at Kimco desired to be- come a public company and we thus embarked upon a two-and-a-half week “road show” to seek investor sup- port for our IPO. Richard Saltzman, a current Director of Kimco and the former head of Merrill Lynch’s Real Estate Banking unit, spearheaded our effort to raise $128 million. It was a very challenging two and a half weeks. (The comparison to our $346 million “overnight” equity offering in December 2009 is striking.) The investor refrain was, “Why buy an IPO? They all trade down.” We just squeezed through; to paraphrase Wellington at Waterloo, it was a close thing. Manage- ment and friends bought approximately 5% of the offer- ing. Our shares were priced at $20 a share, a very low multiple of our projected 1992 FFO. The dividend yield was 8.6% and, yes, the shares did trade down for a few days. But our earnings estimates were conservative, and by the end of 1992, we had far exceeded our guidance. That may have been the origin of Kimco’s mantra, “under- promise and overperform.” From that modest start, we have established a won- derful franchise in owning and operating neighborhood and community shopping centers. Retailing is a difficult business, and represents a prime example of Schumpet- er’s “creative destruction.” We can list scores of once- thriving retailers that no longer exist. The distinction and difference for us is that we are retail real estate owners, focused on intrinsic real estate values and always pre- pared for the shifting fortunes of the retail tenant. We have had so many retailers enter and exit our centers over the years. By way of illustration, in our Bridgehampton Center, located in Bridgehampton, N.Y., the original tenant was W.T. Grant, followed by the Woolco division of the F.W. Woolworth Company, followed by Caldor, and then by Kmart—but each paid higher rent than its predecessor. This outcome can be credited to a good retail location, strong relationships with retailers and our focus on underlying real estate values. Martin S. Kimmel, my partner of many years, and I have always shared the conviction that our shopping centers should provide space to tenants, including off-price retail- ers and discounters, that sell everyday necessities, and that these centers are superb investments. The propor- tion of land value to total property value (required by the need to have four times more parking area than build- ing area) ranks high compared with most other forms of real estate. Rents from our tenants provide us with the cash flow that, in effect, allows us to earn a return while the underlying land increases in value due to popu- lation growth and increasing density. Well-located land in the U.S. has, historically and over time, been a very good investment. When, as now, we are experiencing low core inflation and low interest rates and bond yields, I do believe that a safe cash flow from quality shopping centers in good locations warrants a valuation cap rate of something less than 6%. On a risk-adjusted basis, the spread between 1 Cash flows from stable shopping centers, located on major thoroughfares in thriving markets and enjoying strong tenancies, are a wonderful investment attribute and safe haven. the bond yields of the credit tenants occupying these shopping centers and a cap rate above 6% is too wide. We should also keep in mind that there is severe stress on municipal credits, even in such great states as California, Illinois and Michigan. In this environment, se- cure cash flows will be increasingly attractive to investors, as will the diversification that a large property portfo- lio such as ours (we have more than 15,000 individual leases) provides. Over time, inflation will return, resulting in higher rents and higher replacement costs, all leading to higher values for our properties. We are convinced that our business model can with- stand the challenges of a slow-growth economy, stub- bornly high unemployment and a struggling housing mar- ket, and return us to a path of growth. Cash flows from stable shopping centers, located on major thoroughfares in thriving markets and enjoying strong tenancies, are a wonderful investment attribute and safe haven. And, despite the current softness in consumer spending, de- mand for retail space is increasing because there are very few new developments. Many retailers are experienc- ing angst as to whether they will be able to meet their expansion plans for 2012 store openings, and bargain- ing power is slowly becoming more balanced between owner and tenant. We are quite proud that, despite the vicissitudes of the market and the disruption wrought by the Great Re- cession, a purchaser of our shares in November 1991 has enjoyed a total return of 1,063% (including dividends) and a compounded average annual total return of 13.7%; these figures compare well with 391% and 8.7%, respec- tively, for the S&P 500. My Kimco partners, Dave Henry, Mike Pappagallo, Glenn Cohen and Barbara Pooley, have contributed im- mensely to our success. At the January meeting of the Trustees of the International Council of Shopping Cen- ters, we were delighted that Dave was nominated to be the next Chairman of the ICSC. The Trustees gave Dave a standing ovation, which is just further evidence of the respect that he enjoys among his peers. Dave is a great people person and a wonderful leader. Mike has smooth- ly shifted his responsibilities for Kimco from Chief Finan- cial Officer to Chief Operating Officer without missing a beat. Our Regional Presidents have all told me how enthused they are about working with him. Glenn, who joined our company in 1995, transitioned very comfort- ably from Treasurer to CFO. He is well-respected as the “ombudsman of our balance sheet.” Barbara has been a driver of change in so many areas of the company. She has brought clarity and transparency of our business to the investment community. Her industry-wide recogni- tion is further highlighted by being named Institutional Investor magazine’s top-ranked IR professional for two straight years, based upon the votes of REIT investors. Our job continues as it always has: to achieve favor- able returns for our shareholders, as well as for all the constituencies that rely on us. Kimco’s portfolio, guided by our investment and property management profession- als, should provide, over time, steady increases in recurring cash flow and the dividends that so many of our investors desire. Additionally, we continue to pursue avenues that enable us to profit from the perturbations in the retail real estate markets, while using our capital wisely. We are grateful to our associates, investors, retailer friends and others who help us to accomplish these goals. 2 Milton Cooper Executive Chairman 2010 OPERATING REvIEW “Kimco entered 2010 with a commitment to reinvigorate the power and promise of our shop- ping center franchise. We are pleased to report that we accomplished the things we set out to do. Our shareholders realized a total return of 39% in 2010… and we exceeded our financial targets by reaching $1.13 per share in Funds from Operations.” David B. Henry Vice Chairman, President & Chief Executive Officer Dear Fellow Shareholders, Partners and Associates: Kimco entered 2010 with a commitment to reinvigorate the power and promise of our shopping center fran- chise. We are pleased to report that we accomplished the things we set out to do, and after two years of sub- optimal stock performance, our shareholders realized a total return of 39% in 2010, including an increase in the quarterly common dividend of 12.5%, to an annualized level of 72 cents per common share. We exceeded our financial targets by reaching $1.13 per share in Funds from Operations (FFO), the most common measure of a REIT’s financial performance. Our Recurring Funds from Operations—which adjusts FFO for transaction profits and losses and impairment charges—increased by just under 5%, to $465.4 million. Regaining Momentum In our letter to you last year, we highlighted certain pri- orities for 2010 that we felt were necessary to steady the business, increase shareholder value and position us for future growth. Twelve months later, we have made significant progress toward those goals. Focusing Our Resources on Shopping Center Value-Creation Most real estate companies felt the sting of the economic recession and financial crisis that overwhelmed the busi- ness environment in 2008 and much of 2009. During that time, demand for space fell, along with the rents retailers were willing to pay. Small businesses were hit particularly hard. In 2010, the momentum shifted. While the smaller store owners still faced headwinds in a credit-constrained environment, national retailers trimmed their expenses, improved their inventory management, and enhanced their profitability and balance sheets. And as the eco- nomic climate started to recover, they began to search for ways to expand their businesses again. With avail- able high-quality space at a premium, Kimco benefited from the increased demand for such properties by sign- ing more than 2.6 million square feet of new leases in the U.S. during the year. In addition, we successfully extended with our existing tenants more than 900 leases encom- passing over 4.3 million square feet. Our total portfolio ended the year with an occupancy level of 93%, a 40-ba- sis-point improvement from the beginning of the year. Another encouraging sign was the positive operating results we achieved from our same-site portfolio. (This metric compares the change in income for properties operating in both periods being measured.) We gener- ated positive same-site net operating income in each of the last three quarters of 2010, after experiencing five consecutive quarters of negative results. This turnaround was faster than most of Kimco’s retail REIT peers and un- derscores the resilience of our portfolio. It’s also a testa- ment to the tireless efforts of our operating team, whose focus never waivered from improving property-level oc- cupancy and reducing expenses, while also finding ways to generate additional revenue through creative ancillary income programs. The improving economic landscape also created more opportunities to enhance value in our shopping centers through redevelopment, re-tenanting and expansion. Our redevelopment at St. Andrews Center in Charleston, S.C., is now complete and features a new Harris Teeter supermarket. We also initiated a variety of new proj- ects during 2010 that we will harvest over the next few years. For example, we demolished a vacant box from 3 DuLLES TOwN CENTER, washington, D.C. Market the value City Furniture bankruptcy to build a new Giant Food supermarket and add an additional outparcel at our Springfield Shopping Center in Springfield, Pa.; similarly, in Elsmere, Del., we are building a BJ’s Wholesale Club. In Pittsburgh, we attracted Whole Foods to our Wexford Plaza Center, thereby eliminating a line of vacant shop space. Our pipeline continues to grow, and we have new projects commencing in both Miami and Lakeland, Fla. As the leasing environment picked up in the U.S. dur- ing the latter half of 2009 and throughout 2010, a similar trend was emerging in Mexico. All of Kimco’s 55 shop- ping centers in Mexico have completed construction, and 31 of those properties are now fully operational. Activity in Mexico picked up markedly over the past year as we leased more than 700,000 square feet of new space, re- sulting in an additional $9 million contribution to Kimco’s earnings from this portfolio. Reducing Leverage The return of the capital markets was swift and convinc- ing during the past year. Capital became available at sig- nificantly lower cost and from numerous sources. We ac- cessed capital in a variety of ways, including issuing $175 million in perpetual preferred stock, extending maturi- ties of corporate debt by prefunding near-term maturi- ties with new long-term bonds at advantageous pricing, and successfully refinancing our Canadian debt balances. More importantly, we reduced absolute debt levels by $375 million, and improved a key metric known as “Net Debt to Recurring EBITDA” to 6.3 times, well on our way to our stated goal of 6.0 times by the end of 2012. We also eliminated a significant level of debt in our joint venture programs guaranteed by Kimco. These actions helped solidify our investment-grade debt ratings from all three major credit rating agencies. Reducing Our Non-Retail Holdings As we returned our focus exclusively to our core com- petency of owning and managing retail real estate, we ceased making investments in areas that did not fit that strategy. We began the orderly liquidation of more than $1 billion in non-retail assets. In 2010, we received more than $130 million in cash proceeds from the sales of these assets, reducing their total portfolio value to just under $800 million, representing less than 6% of our gross balance sheet assets. Establishing New Institutional Joint Venture Relationships Joint venture investment programs with institutional in- vestors have served us well over the years. Our partners provide access to a source of capital that is largely un- tapped by many REITs; this access remains a competitive advantage for Kimco when acquiring high-quality shop- ping centers. New programs were established in the U.S. with three new partners during 2010: Canada Pension Plan Investment Board, the second largest pension fund in 4 We generated positive same-site net operating income in each of the last three quarters of 2010. This turnaround was faster than most of Kimco’s retail REIT peers and underscores the resilience of our portfolio. Michael V. Pappagallo Executive Vice President & Chief Operating Officer SUBURBAN SQUARE Philadelphia Market 5 The return of the capital markets was swift and convincing during the past year. Capital became available at significantly lower cost and from numerous sources. Glenn G. Cohen Executive Vice President, Chief Financial Officer & Treasurer (above) MUNSEY PARK (left, top of page) MANHASSET CENTER Long Island, New York 6 RIOCAN MARkETPLACE, Toronto, Canada MAGNOCENTRO 26, Mexico City Market Canada; BIG Shopping Centers, an Israeli public company that owns and develops retail properties throughout Is- rael; and Cisterra LLC, a real estate private equity fund. In Canada, we completed our first joint venture property acquisition with Sun Life Financial, a leading international financial products and services company. In addition to providing a fresh source of investment capital, these new programs allowed Prudential Real Estate Investors, an ex- isting partner, to exit some of its real estate investments with us. Kimco retained its management and ownership position in these assets after they were transferred to our new partners. Remaining Poised to Take Advantage of Shopping Center and Retailer-Owned Real Estate Opportunities With the catalysts of low interest rates, a revitalized fi- nancing market and a dearth of investment alternatives, demand for high-quality real estate soared again. Kimco was ideally positioned to take advantage of the rebound- ing market after the actions we took to enhance our own capital structure, establish new partnerships, and improve liquidity through asset sales. During 2010 and the first part of 2011, we re-entered the acquisition market with the purchase of 10 properties with an aggregate transac- tion value of $269 million. Continuing the Momentum in 2011 Moving into 2011, our message remains the same: We intend to build on the success and momentum of 2010 and move ever closer to our vision of being the premier owner and manager of high-quality shopping centers. Not surprisingly, our business priorities are essentially the same as last year, even as we remain vigilant, responsive and flexible to meet ever-changing economic, operating and financing conditions. A shopping center portfolio well-located in strong markets and occupied by solid, credit-worthy tenants can serve as a stable source of cash flow, regardless of the gyrations of the market and the business cycle. Those same shopping centers also can grow operat- ing cash flows and create value through rising rents, while offering the opportunity for repositioning and re- merchandising for even more value. The equation of stability + growth is our focus, and our business strat- egy and tactics are geared to delivering on those twin objectives. Asset-Level Execution Our shopping center assets are the core of our busi- ness and our operating teams are singularly focused on extracting maximum value and increasing cash flow from them. The key to our success is our tenants’ success: by creating the right shopping environments to drive cus- tomer traffic to our centers, we provide greater oppor- tunity for our more than 7,000 tenants to thrive. 7 STAFFORD MARkET PLACE, washington, D.C. Market To accomplish that, our key objectives are: • continued improvement in occupancy rates by re- leasing space, recapturing lost rents, and aggressively focusing on retaining in-place tenants; • the pursuit of selected expansion, redevelopment and increased density; and • proactive property management and the growth of alternative and ancillary income programs. Knowledge of retailer strategies and space needs is critical to our leasing strategy, and understanding the store performance and operating issues of our existing tenants is key to our efforts to retain them. Our daily interaction with tenants is supplemented by both a na- tional portfolio review process, as well as frequent re- gional reviews. In our national program, we conduct well over 100 reviews with existing and prospective tenants each year. These reviews provide our leasing and asset management teams with critical leads and opportunities to improve occupancy, increase retention rates, and cre- atively address retailer issues. Portfolio Recycling In the course of our 50-year history, we grew from a company that only operated east of the Mississippi River to an international business with properties in 44 U.S. states, Puerto Rico, Canada, Mexico and South America. With current investments in more than 950 shopping centers, it was time to take a hard look at each asset and ask if it was consistent with our strategic goal of portfolio stability and growth. We reached the conclusion that our shareholders’ interests would be best served by more aggressively exiting those assets that do not fit our strate- gic long-term focus. That means divesting properties that are outside of Kimco’s primary operating markets, do not fit our desired asset profile, or have limited opportunity for growth or repositioning. We identified approximately 150 such “non-strategic” properties, which represent about 10% of the company’s total base rental income. Over the next few years, we will sell these assets and use the cash proceeds to reinvest in our strategic core properties, as well as acquire new properties that meet our optimal asset profile. Disciplined External Growth The velocity of transactions in the real estate industry has picked up dramatically, and asking prices for the best properties have increased considerably. Industry observ- ers in 2009 suggested that the highest quality proper- ties in major markets would be acquired with a yield of approximately 9% for the first year of operation, if one could even find a property to buy. Today, those returns are closer to 6%, and demand is fueled by multiple bidders. However, growth and return expectations implied by this pricing of assets may not be 8 A shopping center portfolio well-located in strong markets and occupied by solid, credit-worthy tenants can serve as a stable source of cash flow. The equation of stability + growth is our focus. Barbara M. Pooley Executive Vice President & Chief Administration Officer STAFFORD MARKET PLACE Washington, D.C. Market 9 Joint venture investment programs with institutional investors have served us well over the years. Our partners provide access to a source of capital that is largely untapped by many REITs; this access remains a competitive advantage for Kimco. Scott G. Onufrey Vice President & Managing Director, Investment Management ANAHEIM PLAzA Anaheim, California 10 With available high-quality space at a premium, Kimco benefited from the increased demand for such properties by signing more than 2.6 million square feet of new leases in the U.S. during the year. Bruce Rubenstein Vice President, General Counsel & Secretary consistent with the fundamentals of the shopping center business, specifically, demand versus supply of space, mar- ket rents, and the competitive landscape. This represents a flashing yellow light to us—not that we will ignore ac- quisition opportunities, but rather that we will underwrite the economics of a potential transaction with an added dose of caution. Further Reduction in Non-Retail Holdings With just under $800 million of investment in non-retail properties remaining, we will aggressively pursue cre- ative approaches to dispose of these non-core assets. A substantial amount of these investments involve other partners or investors, and creating an alignment of inter- ests to advance our disposition strategy is an important step in the process. Our long-standing relationships with these business partners enabled us to make significant progress in 2010 and accelerate the process for 2011. We expect to exit substantially all of these major asset positions by the end of 2013 and, of course, we will strive to accomplish it sooner. ANAHEIM PLAZA, Anaheim, California Liquidity and Conservative Capital Structure Kimco’s significant success over the past two years in re- ducing debt and improving our balance sheet, coupled with the robust recovery in the capital markets, might cause some to conclude that the crisis in the capital mar- kets in late 2008 and early 2009 should be considered an aberration and should now be forgotten. We do not intend to forget. We are secure in our current access to capital, includ- ing more than $1.5 billion in credit line availability, narrow- ing spreads on our unsecured bonds, and access to insti- tutional and public market equity capital. However, we also acknowledge that a strong capital position is char- acterized by ample liquidity, manageable debt loads with staggered maturities, and strong debt and fixed-charge coverage ratios—all of which are fundamental to manag- ing through the ups and downs of the business and real estate cycles. We intend to meet our stated objectives of reduc- ing net debt to EBITDA and improving our fixed-charge coverage ratio. This will continue to position our balance sheet for optimal performance in both good and bad op- erating climates. 11 We intend to build on the success and momentum of 2010 and move ever closer to our vision of being the premier owner and manager of high-quality shopping centers. The kimco Spirit The challenges and responsibilities facing a public com- pany are ever increasing, but our mandate of increasing shareholder value remains paramount. To accomplish this primary objective, we concentrate on offering creative leasing options and providing the highest quality manage- ment of our shopping centers for our tenants; we man- age our balance sheet responsibly; we focus on execu- tion excellence for our investment partners; we provide a secure and motivating environment for our associates; and we aim to deliver a steadily growing, secure and sus- tainable dividend for our shareholders. We also are ever mindful of the increasing need to broaden our corporate mandate for social and environmental responsibility. The 700 associates of Kimco are up for the challenge. The dedication and steadfastness of our people was evi- dent through the downturn in the economy. Their focus, creativity, and resolve were on display as the operating environment improved, and now their energy and ex- citement is growing as the momentum increases in our business. The Kimco team has never been more determined to deliver outstanding results for all of our stakeholders— shareholders, tenants, equity investment partners, and Kimco associates alike. Our intense passion for the shop- ping center business bodes well for our future together. David B. Henry Michael v. Pappagallo Glenn G. Cohen Barbara M. Pooley OuR RE GIO NAL LE ADERS (right) Robert Nadler President, Central Region (left) Conor Flynn President, Northwest Region 12 wilbur “Tom” Simmons III President, Mid-Atlantic/Northeast Region kelly Smith Managing Director, Canada Paul D. Puma President, Florida/Southeast Region (far left) John Visconsi President, Pacific Southwest Region (left) Mike Melson Managing Director, Latin America PM S 2945 RGB CMYK R E A L T Y R E A L T Y F o r m 1 0 - K R E A L T Y R E A L T Y UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2010 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-10899 Kimco Realty Corporation (Exact name of registrant as specified in its charter) Maryland (State or other jurisdiction of incorporation or organization) 13-2744380 (I.R.S. Employer Identification No.) 3333 New Hyde Park Road, New Hyde Park, NY 11042-0020 (Address of principal executive offices Zip Code) (516) 869-9000 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Common Stock, par value $.01 per share. Depositary Shares, each representing one-tenth of a share of 6.65% Class F Cumulative Redeemable Preferred Stock, par value $1.00 per share. Depositary Shares, each representing one-hundredth of a share of 7.75% Class G Cumulative Redeemable Preferred Stock, par value $1.00 per share. Depositary Shares, each representing one-hundredth of a share of 6.90% Class H Cumulative Redeemable Preferred Stock, par value $1.00 per share. Name of each exchange on which registered New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange Securities registered pursuant to section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☑ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☑ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Large accelerated filer Non-accelerated filer (Do not check if a small reporting company.) ☑ Accelerated filer ☐ ☐ Smaller reporting company ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑ The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant was approximately $5.5 billion based upon the closing price on the New York Stock Exchange for such equity on June 30, 2010. (APPLICABLE ONLY TO CORPORATE REGISTRANTS) Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. 406,429,488 shares as of February 16, 2011. DOCUMENTS INCORPORATED BY REFERENCE Part III incorporates certain information by reference to the Registrant’s definitive proxy statement to be filed with respect to the Annual Meeting of Stockholders expected to be held on May 4, 2011. Index to Exhibits begins on page 35. TABLE OF CONTENTS Item No. PART I 1. 1A. 1B. 2. 3. 4. 5. 6. 7. 7A. 8. 9. 9A. 9B. 10. 11. 12. 13. 14. Business Risk Factors Unresolved Staff Comments Properties Legal Proceedings (Removed and Reserved) PART II Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Selected Financial Data Management’s Discussion and Analysis of Financial Condition and Results of Operations Quantitative and Qualitative Disclosures About Market Risk Financial Statements and Supplementary Data Changes in and Disagreements With Accountants on Accounting and Financial Disclosure Controls and Procedures Other Information PART III Directors, Executive Officers and Corporate Governance Executive Compensation Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Certain Relationships and Related Transactions, and Director Independence Principal Accounting Fees and Services PART IV 15. Exhibits and Financial Statement Schedules Form 10-K Report Page 2 4 9 9 10 10 11 13 14 30 32 32 32 32 33 33 33 33 33 34 1 FORWARD-LOOKING STATEMENTS This annual report on Form 10-K, together with other statements and information publicly disseminated by Kimco Realty Corporation (the “Company”) contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with the safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, are generally identifiable by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions. You should not rely on forward- looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and could materially affect actual results, performances or achievements. Factors which may cause actual results to differ materially from current expectations include, but are not limited to (i) general adverse economic and local real estate condi- tions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or general downturn in their business, (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms, (iv) the Company’s ability to raise capital by selling its assets, (v) changes in governmental laws and regulations, (vi) the level and volatility of interest rates and foreign currency exchange rates, (vii) the availability of suitable acquisition opportunities, (viii) valuation of joint venture investments, (ix) valuation of marketable securities and other investments, (x) increases in operating costs, (xi) changes in the dividend policy for the Company’s common stock, (xii) the reduction in the Company’s income in the event of multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center, (xiii) impairment charges, (xiv) unanticipated changes in the Company’s intention or ability to prepay certain debt prior to maturity and/or hold certain securities until maturity and the risks and uncertainties identified under Item 1A, “Risk Factors” and elsewhere in this Form 10-K. Accordingly, there is no assurance that the Company’s expectations will be realized. PART I ITEM 1. BUSINESS BACKGROUND Kimco Realty Corporation, a Maryland corporation, is one of the nation’s largest owners and operators of neighborhood and community shopping centers. The terms “Kimco,” the “Company,” “we,” “our” and “us” each refer to Kimco Realty Corporation and our subsidiaries unless the context indicates otherwise. The Company is a self-administered real estate investment trust (“REIT”) and has owned and operated neighborhood and community shopping centers for more than 50 years. The Company has not engaged, nor does it expect to retain, any REIT advisors in connection with the operation of its properties. As of December 31, 2010, the Company had interests in 951 shopping center properties (the “Combined Shopping Center Portfolio”) aggregating 138.0 million square feet of gross leasable area (“GLA”) and 906 other property interests, primarily through the Company’s preferred equity investments, other real estate investments and non-retail properties, totaling approximately 34.4 million square feet of GLA, for a grand total of 1,857 properties aggregating 172.4 million square feet of GLA, located in 44 states, Puerto Rico, Canada, Mexico, Chile, Brazil and Peru. The Company’s ownership interests in real estate consist of its consolidated portfolio and in portfolios where the Company owns an economic interest, such as properties in the Company’s investment real estate management programs, where the Company partners with institutional investors and also retains management. The Company believes its portfolio of neighborhood and community shopping center properties is the largest (measured by GLA) currently held by any publicly traded REIT. The Company’s executive offices are located at 3333 New Hyde Park Road, New Hyde Park, New York 11042-0020 and its telephone number is (516) 869-9000. Nearly all operating functions, including leasing, legal, construction, data processing, maintenance, finance and accounting are administered by the Company from its executive offices in New Hyde Park, New York and supported by the Company’s regional offices. As of December 31, 2010, a total of 687 persons are employed by the Company. The Company’s Web site is located at http://www.kimcorealty.com. The information contained on our Web site does not constitute part of this annual report on Form 10-K. On the Company’s Web site you can obtain, free of charge, a copy of our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursu- ant to Section 13(a) or 15(d) of the Exchange Act of 1934, as amended, as soon as reasonably practicable, after we file such material electronically with, or furnish it to, the Securities and Exchange Commission (the “SEC”). The Company began operations through its predecessor, The Kimco Corporation, which was organized in 1966 upon the contribution of several shopping center properties owned by its principal stockholders. In 1973, these principals formed the Company as a Delaware corporation, and, in 1985, the operations of The Kimco Corporation were merged into the Company. The Company completed its initial public stock offering (the “IPO”) in November 1991, and, commencing with its taxable year which began January 1, 1992, elected to qualify as a REIT in accordance with Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”). If, as the Company believes, it is organized and operates in such a manner so as to qualify and remain qualified as a REIT under the 2 Code, the Company generally will not be subject to federal income tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income as defined under the Code. In 1994, the Company reorganized as a Maryland corporation. In March 2006, the Company was added to the S & P 500 Index, an index containing the stock of 500 Large Cap companies, most of which are U.S. corporations. The Company’s common stock, Class F Depositary Shares, Class G Depositary Shares and Class H Depositary Shares are traded on the New York Stock Exchange (“NYSE”) under the trading symbols “KIM”, “KIMprF”, “KIMprG” and “KIMprH”, respectively. The Company’s initial growth resulted primarily from ground-up development and the construction of shopping centers. Subsequently, the Company revised its growth strategy to focus on the acquisition of existing shopping centers and continued its expansion across the nation. The Company implemented its investment real estate management format through the establishment of various institutional joint venture programs in which the Company has noncontrolling interests. The Company earns management fees, acquisition fees, disposition fees and promoted interests based on value creation. The Company continued its geographic expansion with investments in Canada, Mexico, Chile, Brazil and Peru. The Company’s revenues and equity in income from its foreign investments are as follows (in millions): Revenues (consolidated): Mexico South America Equity in income (unconsolidated joint ventures): Canada Mexico South America 2010 2009 2008 $ 35.4 $ 23.4 $ 20.3 $ 3.8 $ 1.5 $ 0.4 $ 26.5 $ 25.1 $ 41.8 $ 12.0 $ 7.0 $ 17.1 $ 0.1 $ 0.4 $ 0.2 The Company, through its taxable REIT subsidiaries (“TRS”), as permitted by the Tax Relief Extension Act of 1999, has been engaged in various retail real estate related opportunities, including (i) ground-up development of neighborhood and community shopping centers and the subsequent sale thereof upon completion, (ii) retail real estate management and disposition services, which primarily focused on leasing and disposition strategies for real estate property interests of both healthy and distressed retailers and (iii) acting as an agent or principal in connection with tax-deferred exchange transactions. The Company may consider other investments through taxable REIT subsidiaries should suitable opportunities arise. In addition, the Company has capitalized on its established expertise in retail real estate by establishing other ventures in which the Company owns a smaller equity interest and provides management, leasing and operational support for those properties. The Company has also provided preferred equity capital in the past to real estate entrepreneurs and, from time to time, provides real estate capital and management services to both healthy and distressed retailers. The Company has also made selective investments in secondary market opportunities where a security or other investment is, in management’s judgment, priced below the value of the underlying assets, however these investments are subject to volatility within the equity and debt markets. OPERATING AND INvESTMENT STRATEGY The Company’s vision is to be the premier owner and operator of shopping centers with its core business operations focusing on owning and operating neighborhood and community shopping centers through investments in North America. This vision will entail a shift away from non-retail assets that the Company currently holds. These investments include non-retail preferred equity investments, marketable securities, mortgages on non-retail properties and several urban mixed-use properties. The Company’s plan is to sell certain non-retail assets and investments. In addition, the Company continues to be committed to broadening its institutional management business by forming joint ventures with high quality domestic and foreign institutional partners for the purpose of investing in neighbor- hood and community shopping centers. The Company’s investment objective is to increase cash flow, current income and, consequently, the value of its existing portfolio of properties and to seek continued growth through (i) the retail re-tenanting, renovation and expansion of its existing centers and (ii) the selective acquisition of established income-producing real estate properties and properties requiring significant re-tenanting and redevelopment, primarily in neighborhood and community shopping centers in geographic regions in which the Company presently operates. The Company may consider investments in other real estate sectors and in geographic markets where it does not presently operate should suitable opportunities arise. The Company’s neighborhood and community shopping center properties are designed to attract local area customers and typically are anchored by a discount department store, a supermarket or a drugstore tenant offering day-to-day necessities rather than high- priced luxury items. The Company may either purchase or lease income-producing properties in the future and may also participate with other entities in property ownership through partnerships, joint ventures or similar types of co-ownership. Equity investments may 3 be subject to existing mortgage financing and/or other indebtedness. Financing or other indebtedness may be incurred simultaneously or subsequently in connection with such investments. Any such financing or indebtedness would have priority over the Company’s equity interest in such property. The Company may make loans to joint ventures in which it may or may not participate. The Company seeks to reduce its operating and leasing risks through diversification achieved by the geographic distribution of its properties and a large tenant base. As of December 31, 2010, no single neighborhood and community shopping center accounted for more than 0.8% of the Company’s annualized base rental revenues, including the proportionate share of base rental revenues from properties in which the Company has less than a 100% economic interest, or more than 1.0% of the Company’s total shopping center GLA. At December 31, 2010, the Company’s five largest tenants were The Home Depot, TJX Companies, Wal-Mart, Sears Holdings and Best Buy which represented approximately 3.0%, 2.8%, 2.4%, 2.3% and 1.6%, respectively, of the Company’s annualized base rental revenues, including the proportionate share of base rental revenues from properties in which the Company has less than a 100% economic interest. As one of the original participants in the growth of the shopping center industry and one of the nation’s largest owners and opera- tors of neighborhood and community shopping centers, the Company has established close relationships with a large number of major national and regional retailers and maintains a broad network of industry contacts. Management is associated with and/or actively par- ticipates in many shopping center and REIT industry organizations. Notwithstanding these relationships, there are numerous regional and local commercial developers, real estate companies, financial institutions and other investors who compete with the Company for the acquisition of properties and other investment opportunities and in seeking tenants who will lease space in the Company’s properties. ITEM 1A. RISK FACTORS We are subject to certain business and legal risks including, but not limited to, the following: Loss of our tax status as a real estate investment trust could have significant adverse consequences to us and the value of our securities. We have elected to be taxed as a REIT for federal income tax purposes under the Code. We believe we have operated so as to qualify as a REIT under the Code and believe that our current organization and method of operation comply with the rules and regula- tions promulgated under the Code to enable us to continue to qualify as a REIT. However, there can be no assurance that we have qualified or will continue to qualify as a REIT for federal income tax purposes. Qualification as a REIT involves the application of highly technical and complex Code provisions for which there are only limited judicial and administrative interpretations. The determination of various factual matters and circumstances not entirely within our control may affect our ability to qualify as a REIT. New legislation, regulations, administrative interpretations or court decisions could significantly change the tax laws with respect to qualification as a REIT, the federal income tax consequences of such qualification or the desirability of an investment in a REIT relative to other investments. In order to qualify as a REIT, we must satisfy a number of requirements, including requirements regarding the composition of our assets and a requirement that at least 95% of our gross income in any year must be derived from qualifying sources, such as “rents from real property.” Also, we must make distributions to stockholders aggregating annually at least 90% of our REIT taxable income, excluding net capital gains. Furthermore, we own a direct or indirect interest in certain subsidiary REITs which elected to be taxed as REITs for federal income tax purposes under the Code. Provided that each subsidiary REIT qualifies as a REIT, our interest in such subsidiary REIT will be treated as a qualifying real estate asset for purposes of the REIT asset tests. To qualify as a REIT, the subsidiary REIT must independently satisfy all of the REIT qualification requirements. The failure of a subsidiary REIT to fail to qualify as a REIT, could have an adverse effect on our ability to comply with the REIT income and asset tests, and thus our ability to qualify as a REIT. If we lose our REIT status, we will face serious tax consequences that will substantially reduce the funds available to pay dividends to stockholders for each of the years involved because: • we would not be allowed a deduction for distributions to stockholders in computing our taxable income and would be subject to federal income tax at regular corporate rates; • we could be subject to the federal alternative minimum tax and possibly increased state and local taxes; • unless we were entitled to relief under statutory provisions, we could not elect to be subject to tax as a REIT for four taxable years following the year during which we were disqualified; and • we would not be required to make distributions to stockholders. As a result of all these factors, our failure to qualify as a REIT could also impair our ability to expand our business, raise capital and could materially adversely affect the value of our securities. To maintain our REIT status, we may be forced to borrow funds on a short-term basis during unfavorable market conditions. To qualify as a REIT, we generally must distribute to our stockholders at least 90% of our REIT taxable income each year, exclud- ing capital gains, and we will be subject to regular corporate income taxes to the extent that we distribute less than 100% of our net taxable income each year. In addition, we will be subject to a 4% nondeductible excise tax on the amount, if any, by which distributions paid by us in any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gain net income and 100% of our undistributed income from prior years. While historically we have satisfied these distribution requirements by making cash 4 distributions to our stockholders, a REIT is permitted to satisfy these requirements by making distributions of cash or other property, including, in limited circumstances, its own stock. Assuming we continue to satisfy these distributions requirements with cash, we may need to borrow funds to meet the REIT distribution requirements even if the then prevailing market conditions are not favorable for these borrowings. These borrowing needs could result from differences in timing between the actual receipt of cash and inclusion of income for federal income tax purposes, or the effect of non-deductible capital expenditures, the creation of reserves or required debt or amortization payments. Adverse global market and economic conditions may impede our ability to generate sufficient income to pay expenses and maintain our properties. The economic performance and value of our properties is subject to all of the risks associated with owning and operating real estate including: • changes in the national, regional and local economic climate; • local conditions, including an oversupply of, or a reduction in demand for, space in properties like those that we own; • the attractiveness of our properties to tenants; • the ability of tenants to pay rent, particularly anchor tenants with leases in multiple locations; • tenants who may declare bankruptcy and/or close stores; • competition from other available properties to attract and retain tenants; • changes in market rental rates; • the need to periodically pay for costs to repair, renovate and re-let space; • changes in operating costs, including costs for maintenance, insurance and real estate taxes; • the fact that the expenses of owning and operating properties are not necessarily reduced when circumstances such as market factors and competition cause a reduction in income from the properties; and • changes in laws and governmental regulations, including those governing usage, zoning, the environment and taxes. Competition may limit our ability to purchase new properties, generate sufficient income from tenants and may decrease the occu- pancy and rental rates for our properties. Our properties consist primarily of community and neighborhood shopping centers and other retail properties. Our performance therefore is generally linked to economic conditions in the market for retail space. In the future, the market for retail space could be adversely affected by: • weakness in the national, regional and local economies; • the adverse financial condition of some large retailing companies; • ongoing consolidation in the retail sector; and • the excess amount of retail space in a number of markets. In addition, numerous commercial developers and real estate companies compete with us in seeking tenants for our existing properties and properties for acquisition. New regional malls, open-air lifestyle centers, or other retail shopping centers with more convenient locations or better rents may attract tenants or cause them to seek more favorable lease terms at or prior to renewal. Retailers at our properties may face increasing competition from other retailers, e-commerce, outlet malls, discount shopping clubs, catalog companies, direct mail, telemarketing and home shopping networks, all of which could (i) reduce rents payable to us; (ii) reduce our ability to attract and retain tenants at our properties; and (iii) lead to increased vacancy rates at our properties. We may fail to anticipate the effects on our properties of changes in consumer buying practices, particularly of sales over the Internet and the resulting retailing practices and space needs of our tenants or a general downturn in our tenants’ businesses, which may cause tenants to close stores or default in payment of rent. Our performance depends on our ability to collect rent from tenants, our tenants’ financial condition and our tenants maintaining leases for our properties. At any time, our tenants may experience a downturn in their business that may significantly weaken their financial condition. As a result, our tenants may delay a number of lease commencements, decline to extend or renew leases upon expiration, fail to make rental payments when due, close stores or declare bankruptcy. Any of these actions could result in the termination of the tenants’ leases and the loss of rental income attributable to these tenants’ leases. In the event of a default by a tenant, we may experience delays and costs in enforcing our rights as landlord under the terms of our leases. In addition, multiple lease terminations by tenants or a failure by multiple tenants to occupy their premises in a shopping center could result in lease terminations or significant reductions in rent by other tenants in the same shopping centers under the terms of some leases. In that event, we may be unable to re-lease the vacated space at attractive rents or at all, and our rental payments from our continuing tenants could significantly decrease. The occurrence of any of the situations described above, particularly if it involves a substantial tenant with leases in multiple locations, could have a material adverse effect on our performance. A tenant that files for bankruptcy protection may not continue to pay us rent. A bankruptcy filing by or relating to one of our ten- ants or a lease guarantor would bar all efforts by us to collect pre-bankruptcy debts from the tenant or the lease guarantor, or their property, unless the bankruptcy court permits us to do so. A tenant or lease guarantor bankruptcy could delay our efforts to collect past due balances under the relevant leases and could ultimately preclude collection of these sums. If a lease is rejected by a tenant in 5 bankruptcy, we would have only a general unsecured claim for damages. As a result, it is likely that we would recover substantially less than the full value of any unsecured claims we hold, if at all. We may be unable to sell our real estate property investments when appropriate or on favorable terms. Real estate property investments are illiquid and generally cannot be disposed of quickly. In addition, the federal tax code imposes restrictions on a REIT’s ability to dispose of properties that are not applicable to other types of real estate companies. Therefore, we may not be able to vary our portfolio in response to economic or other conditions promptly or on favorable terms. We may acquire or develop properties or acquire other real estate related companies and this may create risks. We may acquire or develop properties or acquire other real estate related companies when we believe that an acquisition or development is consistent with our business strategies. We may not succeed in consummating desired acquisitions or in completing developments on time or within budget. When we do pursue a project or acquisition, we may not succeed in leasing newly developed or acquired properties at rents sufficient to cover the costs of acquisition or development and operations. Difficulties in integrating acquisitions may prove costly or time-consuming and could divert management’s attention. Acquisitions or developments in new markets or industries where we do not have the same level of market knowledge may result in poorer than anticipated performance. We may also abandon acquisition or development opportunities that management has begun pursuing and consequently fail to recover expenses already incurred and have devoted management’s time to a matter not consummated. Furthermore, our acquisitions of new properties or companies will expose us to the liabilities of those properties or companies, some of which we may not be aware of at the time of the acquisition. In addition, development of our existing properties presents similar risks. We face competition in pursuing these acquisition or development opportunities that could increase our costs. We face competition in the acquisition, development, operation and sale of real property from others engaged in real estate invest- ment. Some of these competitors may have greater financial resources than we do. This could result in competition for the acquisition of properties for tenants who lease or consider leasing space in our existing and subsequently acquired properties and for other real estate investment opportunities. These properties may have characteristics or deficiencies currently unknown to us that affect their value or revenue potential. It is also possible that the operating performance of these properties may decline under our management. As we acquire additional properties, we will be subject to risks associated with managing new properties, including lease-up and tenant retention. In addition, our ability to manage our growth effectively will require us to successfully integrate our new acquisitions into our existing management structure. We may not succeed with this integration or effectively manage additional properties. Also, newly acquired properties may not perform as expected. We do not have exclusive control over our joint venture and preferred equity investments, such that we are unable to ensure that our objectives will be pursued. We have invested in some cases as a co-venturer or partner in properties instead of owning directly. In these investments, we do not have exclusive control over the development, financing, leasing, management and other aspects of these investments. As a result, the co-venturer or partner might have interests or goals that are inconsistent with ours, take action contrary to our interests or otherwise impede our objectives. These investments involve risks and uncertainties, including the risk of the co-venturer or partner failing to provide capital and fulfilling its obligations, which may result in certain liabilities to us for guarantees and other commitments, the risk of conflicts arising between us and our partners and the difficulty of managing and resolving such conflicts, and the difficulty of managing or otherwise monitoring such business arrangements. The co-venturer or partner also might become insolvent or bankrupt, which may result in significant losses to us. Although our joint venture arrangements may allow us to share risks with our joint-venture partners, these arrangements may also decrease our ability to manage risk. Joint ventures have additional risks, such as: • potentially inferior financial capacity, diverging business goals and strategies and our need for the venture partner’s continued cooperation; • our inability to take actions with respect to the joint venture activities that we believe are favorable if our joint venture partner does not agree; • our inability to control the legal entity that has title to the real estate associated with the joint venture; • our lenders may not be easily able to sell our joint venture assets and investments or view them less favorably as collateral, which could negatively affect our liquidity and capital resources; • our joint venture partners can take actions that we may not be able to anticipate or prevent, which could result in negative impacts on our debt and equity; and • our joint venture partners’ business decisions or other actions or omissions may result in harm to our reputation or adversely affect the value of our investments. Our joint venture and preferred equity investments generally own real estate properties for which the economic performance and value is subject to all the risks associated with owning and operating real estate as described above. 6 We intend to sell many of our non-retail assets over the next several years and may not be able to recover our investments, which may result in significant losses to us. No assurance can be given that we will be able to recover the current carrying amount of all of our non-retail properties and investments and those of our unconsolidated joint ventures in the future. Our failure to do so would require us to recognize impairment charges for the period in which we reached that conclusion, which could materially and adversely affect us. We have significant international operations, which may be affected by economic, political and other risks associated with interna- tional operations, and this could adversely affect our business. The risks we face in international business operations include, but are not limited to: • currency risks, including currency fluctuations; • unexpected changes in legislative and regulatory requirements; • potential adverse tax burdens; • burdens of complying with different accounting and permitting standards, labor laws and a wide variety of foreign laws; • obstacles to the repatriation of earnings and cash; • regional, national and local political uncertainty; • economic slowdown and/or downturn in foreign markets; • difficulties in staffing and managing international operations; • difficulty in administering and enforcing corporate policies, which may be different than the normal business practices of local cultures; and • reduced protection for intellectual property in some countries. Each of these risks might impact our cash flow or impair our ability to borrow funds, which ultimately could adversely affect our business, financial condition, operating results and cash flows. In order to fully develop our international operations, we must overcome cultural and language barriers and assimilate different business practices. In addition, we are required to create compensation programs, employment policies and other administrative pro- grams that comply with laws of multiple countries. We also must communicate and monitor standards and directives in our international locations. Our failure to successfully manage our geographically diverse operations could impair our ability to react quickly to changing business and market conditions and to enforce compliance with standards and procedures. Since a meaningful portion of our revenues are generated internationally, we must devote substantial resources to managing our international operations. Our future success will be influenced by our ability to anticipate and effectively manage these and other risks associated with our international operations. Any of these factors could, however, materially adversely affect our international operations and, consequently, our financial condition, results of operations and cash flows. We can predict neither the impact of laws and regulations affecting our international operations nor the potential that we may face regulatory sanctions. Our international operations are subject to a variety of U.S. and foreign laws and regulations, including the U.S. Foreign Corrupt Practices Act, or FCPA. We cannot assure you that we will continue to be found to be operating in compliance with, or be able to detect violations of, any such laws or regulations. In addition, we cannot predict the nature, scope or effect of future regulatory requirements to which our international operations might be subject, the manner in which existing laws might be administered or interpreted, or the potential that we may face regulatory sanctions. We cannot assure you that our employees will adhere to our Code of Business Ethics or any other of our policies, applicable anti- corruption laws, including the FCPA, or other legal requirements. Failure to comply with these requirements may subject us to legal, regulatory or other sanctions, which could adversely affect our financial condition, results of operations and cash flows. We may be unable to obtain financing through the debt and equities market, which would have a material adverse effect on our growth strategy, our results of operations and our financial condition. We cannot assure you that we will be able to access the capital and credit markets to obtain additional debt or equity financing or that we will be able to obtain financing on favorable terms. The inability to obtain financing could have negative effects on our busi- ness, such as: • we could have great difficulty acquiring or developing properties, which would materially adversely affect our business strategy; • our liquidity could be adversely affected; • we may be unable to repay or refinance our indebtedness; • we may need to make higher interest and principal payments or sell some of our assets on unfavorable terms to fund our indebtedness; and • we may need to issue additional capital stock, which could further dilute the ownership of our existing shareholders. Adverse changes in our credit ratings could impair our ability to obtain additional debt and equity financing on favorable terms, if at all, and could significantly reduce the market price of our publicly traded securities. 7 Financial covenants to which we are subject may restrict our operating and acquisition activities. Our revolving credit facilities and the indentures under which our senior unsecured debt is issued contain certain financial and oper- ating covenants, including, among other things, certain coverage ratios, as well as limitations on our ability to incur debt, make dividend payments, sell all or substantially all of our assets and engage in mergers and consolidations and certain acquisitions. These covenants may restrict our ability to pursue certain business initiatives or certain acquisition transactions that might otherwise be advantageous. In addition, failure to meet any of the financial covenants could cause an event of default under and/or accelerate some or all of our indebtedness, which would have a material adverse effect on us. Changes in market conditions could adversely affect the market price of our publicly traded securities. As with other publicly traded securities, the market price of our publicly traded securities depends on various market conditions, which may change from time-to-time. Among the market conditions that may affect the market price of our publicly traded securities are the following: • the extent of institutional investor interest in us; • the reputation of REITs generally and the reputation of REITs with portfolios similar to us; • the attractiveness of the securities of REITs in comparison to securities issued by other entities (including securities issued by other real estate companies); • our financial condition and performance; • the market’s perception of our growth potential and potential future cash dividends; • an increase in market interest rates, which may lead prospective investors to demand a higher distribution rate in relation to the price paid for our shares; and • general economic and financial market conditions. We may in the future choose to pay dividends in our own stock. We may distribute taxable dividends that are partially payable in cash and partially payable in our stock. Under IRS guidance, up to 90% of any such taxable dividend with respect to calendar years 2008 through 2011, and in some cases declared as late as December 31, 2012, could be payable in our stock if certain conditions are met. Although we reserve the right to utilize this procedure in the future, we currently do not intend to do so. In the event that we pay a portion of a dividend in shares of our common stock, taxable stockholders receiving such dividends will be required to include the full amount of the dividend as ordinary income to the extent of our accumulated earnings and profits for United States federal income tax purposes. As a result, taxable U.S. stockholders would be required to pay tax on the entire amount of the dividend, including the portion paid in shares of common stock, in which case such stockholders might have to pay the tax using cash from other sources. If a U.S. stockholder sells the stock it receives as a dividend in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our stock at the time of the sale. Furthermore, with respect to non-U.S. stockholders, we may be required to withhold U.S. tax with respect to such dividend, including all or a portion of such dividend that is payable in stock. In addition, if a significant number of our stockholders sell shares of our common stock in order to pay taxes owed on dividends, such sales would put downward pressure on the market price of our common stock. We may change the dividend policy for our common stock in the future. The decision to declare and pay dividends on our common stock in the future, as well as the timing, amount and composition of any such future dividends, will be at the sole discretion of our Board of Directors and will depend on our earnings, operating cash flows, liquidity, financial condition, capital requirements, contractual prohibitions or other limitations under our indebtedness including preferred stock, the annual distribution requirements under the REIT provisions of the Code, state law and such other factors as our Board of Directors deems relevant. Any change in our dividend policy could have a material adverse effect on the market price of our common stock. We may not be able to recover our investments in marketable securities or mortgage receivables, which may result in significant losses to us. Our investments in marketable securities are subject to specific risks relating to the particular issuer of the securities, including the financial condition and business outlook of the issuer, which may result in significant losses to us. Marketable securities are generally unsecured and may also be subordinated to other obligations of the issuer. As a result, investments in marketable securities are subject to risks of: • limited liquidity in the secondary trading market; • substantial market price volatility resulting from changes in prevailing interest rates; • subordination to the prior claims of banks and other senior lenders to the issuer; • the possibility that earnings of the issuer may be insufficient to meet its debt service and distribution obligations; and • the declining creditworthiness and potential for insolvency of the issuer during periods of rising interest rates and economic downturn. These risks may adversely affect the value of outstanding marketable securities and the ability of the issuers to make distribution payments. 8 In the event of a default by a borrower, it may be necessary for us to foreclose our mortgage or engage in costly negotiations. Delays in liquidating defaulted mortgage loans and repossessing and selling the underlying properties could reduce our investment returns. Furthermore, in the event of default, the actual value of the property securing the mortgage may decrease. A decline in real estate values will adversely affect the value of our loans and the value of the mortgages securing our loans. Our mortgage receivables may be or become subordinated to mechanics’ or materialmen’s liens or property tax liens. In these instances we may need to protect a particular investment by making payments to maintain the current status of a prior lien or discharge it entirely. In these cases, the total amount we recover may be less than our total investment, resulting in a loss. In the event of a major loan default or several loan defaults resulting in losses, our investments in mortgage receivables would be materially and adversely affected. We may be subject to liability under environmental laws, ordinances and regulations. Under various federal, state, and local laws, ordinances and regulations, we may be considered an owner or operator of real prop- erty and may be responsible for paying for the disposal or treatment of hazardous or toxic substances released on or in our property, as well as certain other potential costs which could relate to hazardous or toxic substances (including governmental fines and injuries to persons and property). This liability may be imposed whether or not we knew about, or were responsible for, the presence of haz- ardous or toxic substances. ITEM 1B. UNRESOLVED STAFF COMMENTS None ITEM 2. PROPERTIES Real Estate Portfolio. As of December 31, 2010, the Company had interests in 951 shopping center properties (the “Combined Shopping Center Portfolio“) aggregating 138.0 million square feet of gross leasable area (“GLA”) and 906 other property interests, primarily through the Company’s preferred equity investments, other real estate investments and non-retail properties, totaling approxi- mately 34.4 million square feet of GLA, for a grand total of 1,857 properties aggregating 172.4 million square feet of GLA, located in 44 states, Puerto Rico, Canada, Mexico and South America. The Company’s portfolio includes noncontrolling interests. Neighborhood and community shopping centers comprise the primary focus of the Company’s current portfolio. As of December 31, 2010, the Company’s Combined Shopping Center Portfolio was approximately 93.0% leased. The Company’s neighborhood and community shopping center properties, which are generally owned and operated through sub- sidiaries or joint ventures, had an average size of approximately 137,000 square feet as of December 31, 2010. The Company generally retains its shopping centers for long-term investment and consequently pursues a program of regular physical maintenance together with major renovations and refurbishing to preserve and increase the value of its properties. This includes renovating existing facades, installing uniform signage, resurfacing parking lots and enhancing parking lot lighting. During 2010, the Company capitalized approximately $14.4 million in connection with these property improvements and expensed to operations approximately $25.3 million. The Company’s neighborhood and community shopping centers are usually “anchored” by a national or regional discount depart- ment store, supermarket or drugstore. As one of the original participants in the growth of the shopping center industry and one of the nation’s largest owners and operators of shopping centers, the Company has established close relationships with a large number of major national and regional retailers. Some of the major national and regional companies that are tenants in the Company’s shopping center properties include The Home Depot, TJX Companies, Wal-Mart, Sears Holdings, Kohl’s, Costco, Best Buy and Royal Ahold. A substantial portion of the Company’s income consists of rent received under long-term leases. Most of the leases provide for the payment of fixed-base rentals monthly in advance and for the payment by tenants of an allocable share of the real estate taxes, insur- ance, utilities and common area maintenance expenses incurred in operating the shopping centers. Although many of the leases require the Company to make roof and structural repairs as needed, a number of tenant leases place that responsibility on the tenant, and the Company’s standard small store lease provides for roof repairs to be reimbursed by the tenant as part of common area maintenance. The Company’s management places a strong emphasis on sound construction and safety at its properties. Approximately 20.2% of the Company’s leases also contain provisions requiring the payment of additional rent calculated as a percentage of tenants’ gross sales above predetermined thresholds. Percentage rents accounted for less than 1% of the Company’s revenues from rental property for the year ended December 31, 2010. Additionally, a majority of the Company’s leases have provisions requiring contractual rent increases as well as escalation clauses. Such escalation clauses often include increases based upon changes in the consumer price index or similar inflation indices. 9 Minimum base rental revenues and operating expense reimbursements accounted for approximately 99% of the Company’s total revenues from rental property for the year ended December 31, 2010. The Company’s management believes that the base rent per leased square foot for many of the Company’s existing leases is generally lower than the prevailing market-rate base rents in the geo- graphic regions where the Company operates, reflecting the potential for future growth. As of December 31, 2010, the Company’s consolidated portfolio, comprised of 59.7 million square feet of GLA, was 91.9% leased. For the period January 1, 2010 to December 31, 2010, the Company increased the average base rent per leased square foot in its U.S. consolidated portfolio of neighborhood and community shopping centers from $11.13 to $11.20, an increase of $0.07. This increase pri- marily consists of (i) a $0.07 increase relating to acquisitions, as well as development properties placed into service, (ii) a $0.01 increase relating to new leases signed net of leases vacated and rent step-ups within the portfolio, partially offset by (iii) a $0.01 decrease relating to dispositions or the transfer of properties to various joint venture entities. For the period January 1, 2010 to December 31, 2010, the Company increased the average base rent per leased square foot in its Mexican consolidated portfolio of neighborhood and community shopping centers from $11.69 to $12.03, an increase of $0.34 primarily due to an increase in new leases signed net of leases vacated and rent step-ups within the portfolio. The Company’s management believes its experience in the real estate industry and its relationships with numerous national and regional tenants gives it an advantage in an industry where ownership is fragmented among a large number of property owners. Ground-Leased Properties. The Company has interests in 48 consolidated shopping center properties and interests in 21 shopping center properties in unconsolidated joint ventures that are subject to long-term ground leases where a third party owns and has leased the underlying land to the Company (or an affiliated joint venture) to construct and/or operate a shopping center. The Company or the joint venture pays rent for the use of the land and generally is responsible for all costs and expenses associated with the building and improvements. At the end of these long-term leases, unless extended, the land together with all improvements revert to the landowner. More specific information with respect to each of the Company’s property interests is set forth in Exhibit 99.1, which is incorpo- rated herein by reference. ITEM 3.LEGAL PROCEEDINGS The Company is not presently involved in any litigation nor, to its knowledge, is any litigation threatened against the Company or its subsidiaries that, in management’s opinion, would result in any material adverse effect on the Company’s ownership, management or operation of its properties taken as a whole, or which is not covered by the Company’s liability insurance. ITEM 4. (REMOVED AND RESERVED) 10 PART II ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EqUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EqUITY SECURITIES MARKET INFORMATION The following sets forth the common stock offerings completed by the Company during the three-year period ended December 31, 2010. The Company’s common stock was sold for cash at the following offering price per share: Offering Date Offering Price September 2008 April 2009 December 2009 $ 37.10 $ 7.10 $ 12.50 The table below sets forth, for the quarterly periods indicated, the high and low sales prices per share reported on the NYSE Composite Tape and declared dividends per share for the Company’s common stock. The Company’s common stock is traded on the NYSE under the trading symbol “KIM”. Stock Price Period High Low Dividends 2009: First Quarter $ 20.90 $ 6.33 Second Quarter $ 12.98 $ 7.03 Third Quarter $ 15.87 $ 8.16 $0.44 $0.06 $0.06 Fourth Quarter $ 14.22 $ 11.54 $0.16(a) 2010: First Quarter $ 16.44 $ 12.40 Second Quarter $ 16.72 $ 13.03 Third Quarter $ 17.05 $ 12.51 $0.16 $0.16 $0.16 Fourth Quarter $ 18.41 $ 15.61 $0.18(b) (a) Paid on January 15, 2010, to stockholders of record on January 4, 2010. (b) Paid on January 18, 2011, to stockholders of record on January 3, 2011. HOLDERS The number of holders of record of the Company’s common stock, par value $0.01 per share, was 3,150 as of January 31, 2011. DIvIDENDS Since the IPO, the Company has paid regular quarterly cash dividends to its stockholders. While the Company intends to continue paying regular quarterly cash dividends, future dividend declarations will be paid at the discretion of the Board of Directors and will depend on the actual cash flows of the Company, its financial condition, capital requirements, the annual distribution requirements under the REIT provisions of the Code and such other factors as the Board of Directors deems relevant. The Company’s Board of Directors will continue to evaluate the Company’s dividend policy on a quarterly basis as they monitor sources of capital and evaluate the impact of the economy on operating fundamentals. The Company is required by the Code to distribute at least 90% of its REIT taxable income. The actual cash flow available to pay dividends will be affected by a number of factors, including the revenues received from rental properties, the operating expenses of the Company, the interest expense on its borrowings, the ability of lessees to meet their obligations to the Company, the ability to refinance near-term debt maturities and any unanticipated capital expenditures. The Company has determined that the $0.64 dividend per common share paid during 2010 represented 70% ordinary income and a 30% return of capital to its stockholders. The $1.00 dividend per common share paid during 2009 represented 72% ordinary income and a 28% return of capital to its stockholders. In addition to its common stock offerings, the Company has capitalized the growth in its business through the issuance of unsecured fixed and floating-rate medium-term notes, underwritten bonds, mortgage debt and construction loans, convertible preferred stock and perpetual preferred stock. Borrowings under the Company’s revolving credit facilities have also been an interim source of funds to both finance the purchase of properties and other investments and meet any short-term working capital requirements. The various instruments governing the Company’s issuance of its unsecured public debt, bank debt, mortgage debt and preferred stock impose certain restrictions on the Company with regard to dividends, voting, liquidation and other preferential rights available to the holders of such instruments. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Notes 13, 14, 15 and 19 of the Notes to Consolidated Financial Statements included in this annual report on Form 10-K. 11 The Company does not believe that the preferential rights available to the holders of its Class F Preferred Stock, Class G Preferred Stock and Class H Preferred Stock, the financial covenants contained in its public bond indentures, as amended, or its revolving credit agreements will have an adverse impact on the Company’s ability to pay dividends in the normal course to its common stockholders or to distribute amounts necessary to maintain its qualification as a REIT. The Company maintains a dividend reinvestment and direct stock purchase plan (the “Plan”) pursuant to which common and preferred stockholders and other interested investors may elect to automatically reinvest their dividends to purchase shares of the Company’s common stock or, through optional cash payments, purchase shares of the Company’s common stock. The Company may, from time-to-time, either (i) purchase shares of its common stock in the open market or (ii) issue new shares of its common stock for the purpose of fulfilling its obligations under the Plan. TOTAL STOCKHOLDER RETURN PERFORMANCE The following performance chart compares, over the five years ended December 31, 2010, the cumulative total stockholder return on the Company’s common stock with the cumulative total return of the S&P 500 Index and the cumulative total return of the NAREIT Equity REIT Total Return Index (the “NAREIT Equity Index”) prepared and published by the National Association of Real Estate Investment Trusts (“NAREIT”). Equity real estate investment trusts are defined as those which derive more than 75% of their income from equity investments in real estate assets. The NAREIT Equity Index includes all tax qualified equity real estate investment trusts listed on the New York Stock Exchange, American Stock Exchange or the NASDAQ National Market System. Stockholder return performance, presented quarterly for the five years ended December 31, 2010, is not necessarily indicative of future results. All stockholder return performance assumes the reinvestment of dividends. The information in this paragraph and the following performance chart are deemed to be furnished, not filed. 12 ITEM 6. SELECTED FINANCIAL DATA The following table sets forth selected, historical, consolidated financial data for the Company and should be read in conjunction with the Consolidated Financial Statements of the Company and Notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this annual report on Form 10-K. The Company believes that the book value of its real estate assets, which reflects the historical costs of such real estate assets less accumulated depreciation, is not indicative of the current market value of its properties. Historical operating results are not necessarily indicative of future operating performance. (in thousands, except per share information) Operating Data: Revenues from rental property(1) Interest expense(3) Early extinguishment of debt charges Depreciation and amortization(3) Gain on sale of development properties Gain/loss on transfer/sale of operating properties, net(3) Benefit for income taxes(4) Provision for income taxes(5) Impairment charges(6) Income from continuing operations(7) Income/(loss) per common share, from continuing operations: Year ended December 31,(2) 2007 2008 2009 2010 2006 $ 667,996 $ 212,436 $ 751,196 $ 212,198 $ 849,549 $ 574,701 $ 773,423 $ 226,388 $ 169,189 $ 208,018 $ 10,811 $ — $ — $ — $ — $ 238,474 $ 139,708 $ 226,608 $ 37,276 $ 2,130 $ 5,751 $ 2,460 $ 3,867 $ 2,377 $ — $ 30,144 $ — $ — $ — $ — $ 17,441 $ 3,415 $ — $ 161,787 $ 33,910 $ 365,533 $ 4,633 $ 130,418 $ 204,809 $ 36,565 $ 1,782 $ 11,645 $ 188,861 $ 40,099 $ 2,708 $ 20,242 $ 13,796 $ 350,924 $ 147,529 $ 225,048 Basic Diluted Weighted average number of shares of common stock: Basic Diluted Cash dividends declared per common share (in thousands) Balance Sheet Data: $ $ 0.19 0.19 $ $ (0.12) $ (0.12) $ 0.69 0.69 $ $ 1.31 1.29 $ $ 1.48 1.45 405,827 406,201 0.66 350,077 350,077 0.72 257,811 258,843 1.68 252,129 257,058 1.52 239,552 244,615 1.38 December 31, 2010 2009 2008 2007 2006 Real estate, before accumulated depreciation $ 8,592,760 $ 8,882,341 $ 7,818,916 $ 7,325,035 $ 6,001,319 Total assets Total debt $ 9,833,075 $ 10,183,079 $ 9,397,147 $ 9,097,816 $ 7,869,280 $ 4,058,987 $ 4,434,383 $ 4,556,646 $ 4,216,415 $ 3,587,243 Total stockholders’ equity $ 4,935,842 $ 4,852,973 $ 3,983,698 $ 3,894,225 $ 3,366,826 Cash flow provided by operations $ 479,935 $ 403,582 $ 567,599 $ 665,989 $ 455,569 Cash flow provided by (used for) investing activities $ 37,904 $ (343,236) $ (781,350) $ (1,507,611) $ (246,221) Cash flow (used for) provided by financing activities $ (514,743) $ (74,465) $ 262,429 $ 584,056 $ 59,444 (1) Does not include (i) revenues from rental property relating to unconsolidated joint ventures, (ii) revenues relating to the investment in retail stores leases and (iii) revenues from properties included in discontinued operations. (2) All years have been adjusted to reflect the impact of operating properties sold during the years ended December 31, 2010, 2009, 2008, 2007 and 2006 and properties classified as held for sale as of December 31, 2010, which are reflected in discontinued operations in the Consolidated Statements of Operations. (3) Does not include amounts reflected in discontinued operations. (4) Does not include amounts reflected in discontinued operations and extraordinary gain. Amounts include income taxes related to gain on transfer/sale of operating properties. (5) Does not include amounts reflected in discontinued operations. Amounts include income taxes related to gain on transfer/sale of operating properties. (6) Amounts exclude noncontrolling interests and amounts reflected in discontinued operations. (7) Amounts include gain on transfer/sale of operating properties, net of tax and net income attributable to noncontrolling interests. 13 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in this annual report on Form 10-K. Historical results and percentage relationships set forth in the Consolidated Statements of Operations contained in the Consolidated Financial Statements, including trends which might appear, should not be taken as indicative of future operations. EXECUTIvE SUMMARY Kimco Realty Corporation is one of the nation’s largest publicly-traded owners and operators of neighborhood and community shopping centers. As of December 31, 2010, the Company had interests in 951 shopping center properties (the “Combined Shopping Center Portfolio”) aggregating 138.0 million square feet of gross leasable area (“GLA”) and 906 other property interests, primarily through the Company’s preferred equity investments, other real estate investments and non-retail properties, totaling approximately 34.4 million square feet of GLA, for a grand total of 1,857 properties aggregating 172.4 million square feet of GLA, located in 44 states, Puerto Rico, Canada, Mexico, Chile, Brazil and Peru. The Company is self-administered and self-managed through present management, which has owned and managed neighborhood and community shopping centers for over 50 years. The executive officers are engaged in the day-to-day management and operation of real estate exclusively with the Company, with nearly all operating functions, including leasing, asset management, maintenance, con- struction, legal, finance and accounting, administered by the Company. The Company’s vision is to be the premier owner and operator of shopping centers with its core business operations focusing on owning and operating neighborhood and community shopping centers through investments in North America. This vision will entail a shift away from non-retail assets that the Company currently holds. These investments include non-retail preferred equity investments, marketable securities, mortgages on non-retail properties and several urban mixed-use properties. The Company’s plan is to sell its non-retail assets and investments, realizing that the sale of these assets will be over a period of time given the current market conditions. If the Company accepts sales prices for these non-retail assets which are less than their net carrying values, the Company would be required to take impairment charges. In order to execute the Company’s vision, the Company’s strategy is to continue to strengthen its balance sheet by pursuing deleveraging efforts, providing it the necessary flexibility to invest opportunistically and selectively, primarily focusing on neighborhood and community shopping centers. In addition, the Company continues to be committed to broadening its institutional management business by forming joint ventures with high quality domestic and foreign institutional partners for the purpose of investing in neighborhood and community shopping centers. The following highlights the Company’s significant transactions, events and results that occurred during the year ended December 31, 2010: Portfolio Information: • Occupancy rose from 92.6% at December 31, 2009 to 93.0 % at December 31, 2010 in the Combined Shopping Center Portfolio. • Occupancy year over year remained at 92.4% for the U.S. shopping center combined. • Executed 2,703 leases, renewals and options totaling over 8.2 million square feet in the Combined Shopping Center Portfolio. Acquisition Activity: • Acquired 10 shopping center properties, an additional joint venture interest and two land parcels comprising an aggregate 1.7 million square feet of GLA, for an aggregate purchase price of approximately $251.3 million including the assumption of approxi- mately $138.8 million of non-recourse mortgage debt encumbering seven of the properties. • Established four new unconsolidated joint ventures that acquired approximately $1.0 billion in assets. Disposition Activity: • During 2010, the Company monetized non-retail assets of approximately $130.0 million and reduced its non-retail book values by approximately $80.0 million. • Included in the monetization above are the disposition of (i) three properties, in separate transactions, for an aggregate sales price of approximately $23.8 million and (ii) five properties from a consolidated joint venture in which the Company had a preferred equity investment for a sales price of approximately $40.8 million. These transactions resulted in an aggregate profit participation of approximately $20.8 million, before income tax of approximately $1.0 million and noncontrolling interest of approximately $4.9 million. • Also included in the monetization above is the Company’s receipt of approximately $34.7 million in distributions from the Albertson’s joint venture, in which the Company recognized approximately $21.2 million of equity in income primarily from the joint ventures’ sale of 23 properties. 14 • Additionally, during 2010, the Company disposed of, in separate transactions, nine land parcels for an aggregate sales price of approximately $25.6 million which resulted in an aggregate gain of approximately $3.4 million. • Additionally, during 2010, the Company (i) sold seven operating properties, which were previously consolidated, to two new joint ventures in which the Company holds noncontrolling equity interests for an aggregate sales price of approximately $438.1 million including the assignment of $159.9 million of non-recourse mortgage debt encumbering three of the properties and (ii) disposed of, in separate transactions, seven operating properties for an aggregate sales price of approximately $100.5 million including the assignment of $81.0 million of non-recourse mortgage debt encumbering one of the properties. These transactions resulted in aggregate gains of approximately $4.4 million and aggregate losses/impairments of approximately $5.0 million. Capital Activity (for additional details see Liquidity and Capital Resources below): • Issued $150 million in Canadian denominated eight-year unsecured notes priced at 5.99%. • Repaid the remaining $287.5 million guaranteed credit facility related to a joint venture in which the Company has a 15% noncontrolling ownership interest. • Issued $175 million of 6.90% cumulative redeemable preferred stock. • Issued a $300 million seven and a half year unsecured bond priced at 4.3%. • Total year over year reduction in debt of approximately $375.4 million. Impairments: • The U.S. economic and market conditions stabilized during 2010 and capitalization rates, discount rates and vacancies had improved; however, overall declines in market conditions continued to have a negative effect on certain transactional activity as it related to select real estate assets and certain marketable securities. As such, the Company recognized impairment charges of approximately $39.1 million (including approximately $5.2 million which is classified within discontinued operations), before income taxes and noncontrolling interests, relating to adjustments to property carrying values, investments in other real estate joint ventures, investments in real estate joint ventures, real estate under development and marketable securities and other investments. Potential future adverse market and economic conditions could cause the Company to recognize additional impair- ments in the future (see Note 2 of the Notes to Consolidated Financial Statements included in this annual report on Form 10-K). • In addition to the impairment charges above, various unconsolidated joint ventures in which the Company holds noncontrolling interests recognized impairment charges relating to certain properties during 2010. The Company’s share of these charges was approximately $28.3 million, before an income tax benefit of approximately $3.2 million. These impairment charges are included in Equity in income of joint ventures, net in the Company’s Consolidated Statements of Operations(see Notes 2 and 8 of the Notes to Consolidated Financial Statements included in this annual report on Form 10-K). CRITICAL ACCOUNTING POLICIES The Consolidated Financial Statements of the Company include the accounts of the Company, its wholly-owned subsidiaries and all entities in which the Company has a controlling interest, including where the Company has been determined to be a primary benefi- ciary of a variable interest entity in accordance with the consolidation guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). The Company applies these provisions to each of its joint venture investments to determine whether the cost, equity or consolidation method of accounting is appropriate. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying Consolidated Financial Statements and related notes. In preparing these financial statements, management has made its best estimates and assumptions that affect the reported amounts of assets and liabilities. These estimates are based on, but not limited to, historical results, industry standards and current economic conditions, giving due consideration to materiality. The most significant assumptions and estimates relate to revenue recognition and the recoverability of trade accounts receivable, depreciable lives, valuation of real estate and intangible assets and liabilities, valuation of joint venture investments, marketable securities and other investments, realizability of deferred tax assets and uncertain tax positions. Application of these assumptions requires the exercise of judgment as to future uncertainties, and, as a result, actual results could materially differ from these estimates. The Company is required to make subjective assessments as to whether there are impairments in the value of its real estate properties, investments in joint ventures, marketable securities and other investments. The Company’s reported net earnings is directly affected by management’s estimate of impairments and/or valuation allowances. 15 Revenue Recognition and Accounts Receivable Base rental revenues from rental property are recognized on a straight-line basis over the terms of the related leases. Certain of these leases also provide for percentage rents based upon the level of sales achieved by the lessee. These percentage rents are recorded once the required sales level is achieved. Operating expense reimbursements are recognized as earned. Rental income may also include payments received in connection with lease termination agreements. In addition, leases typically provide for reimbursement to the Company of common area maintenance, real estate taxes and other operating expenses. The Company makes estimates of the uncollectability of its accounts receivable related to base rents, straight-line rent, expense reimbursements and other revenues. The Company analyzes accounts receivable and historical bad debt levels, customer credit-worthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, tenants in bankruptcy are analyzed and estimates are made in connection with the expected recovery of pre-petition and post-petition claims. The Company’s reported net earnings is directly affected by management’s estimate of the collectability of accounts receivable. Real Estate The Company’s investments in real estate properties are stated at cost, less accumulated depreciation and amortization. Expenditures for maintenance and repairs are charged to operations as incurred. Significant renovations and replacements, which improve and extend the life of the asset, are capitalized. Upon acquisition of real estate operating properties, the Company estimates the fair value of acquired tangible assets (consisting of land, building, building improvements and tenant improvements) and identified intangible assets and liabilities (consisting of above and below-market leases, in-place leases and tenant relationships), assumed debt and redeemable units issued at the date of acquisi- tion, based on evaluation of information and estimates available at that date. Based on these estimates, the Company allocates the estimated fair value to the applicable assets and liabilities. Fair value is determined based on an exit price approach, which contemplates the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. If, up to one year from the acquisition date, information regarding fair value of the assets acquired and liabilities assumed is received and estimates are refined, appropriate adjustments are made to the purchase price allocation on a retrospective basis. The Company expenses transaction costs associated with business combinations in the period incurred. Depreciation and amortization are provided on the straight-line method over the estimated useful lives of the assets, as follows: Buildings and building improvements Fixtures, leasehold and tenant improvements (including certain identified intangible assets) 15 to 50 years Terms of leases or useful lives, whichever is shorter The Company is required to make subjective assessments as to the useful lives of its properties for purposes of determining the amount of depreciation to reflect on an annual basis with respect to those properties. These assessments have a direct impact on the Company’s net earnings. Real estate under development on the Company’s Consolidated Balance Sheets represents ground-up development of neighbor- hood and community shopping center projects which may be subsequently sold upon completion or which the Company may hold as long-term investments. These assets are carried at cost. The cost of land and buildings under development includes specifically iden- tifiable costs. The capitalized costs include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and related costs of personnel directly involved and other costs incurred during the period of development. The Company ceases cost capitalization when the property is held available for occupancy upon substantial completion of tenant improvements, but no later than one year from the completion of major construction activity. A gain on the sale of these assets is generally recognized using the full accrual method in accordance with the provisions of the FASB’s real estate sales guidance provided that various criteria relating to terms of the sale and subsequent involvement by the Company with the property are met. On a continuous basis, management assesses whether there are any indicators, including property operating performance and general market conditions, that the value of the real estate properties (including any related amortizable intangible assets or liabilities) may be impaired. A property value is considered impaired only if management’s estimate of current and projected operating cash flows (undiscounted and without interest charges) of the property over its remaining useful life is less than the net carrying value of the property. Such cash flow projections consider factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors. To the extent impairment has occurred, the carrying value of the property would be adjusted to an amount to reflect the estimated fair value of the property. When a real estate asset is identified by management as held-for-sale, the Company ceases depreciation of the asset and estimates the sales price of such asset net of selling costs. If, in management’s opinion, the net sales price of the asset is less than the net book value of such asset, an adjustment to the carrying value would be recorded to reflect the estimated fair value of the property. 16 Investments in Unconsolidated Joint Ventures The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting as the Company exercises significant influence, but does not control, these entities. These investments are recorded initially at cost and are subsequently adjusted for cash contributions and distributions. Earnings for each investment are recognized in accordance with each respective invest- ment agreement and, where applicable, are based upon an allocation of the investment’s net assets at book value as if the investment was hypothetically liquidated at the end of each reporting period. The Company’s joint ventures and other real estate investments primarily consist of co-investments with institutional and other joint venture partners in neighborhood and community shopping center properties, consistent with its core business. These joint ventures typically obtain non-recourse third-party financing on their property investments, thus contractually limiting the Company’s exposure to losses to the amount of its equity investment, and, due to the lender’s exposure to losses, a lender typically will require a minimum level of equity in order to mitigate its risk. The Company’s exposure to losses associated with its unconsolidated joint ventures is primarily limited to its carrying value in these investments. The Company, on a limited selective basis, obtained unsecured financing for certain joint ventures. These unsecured financings are guaranteed by the Company with guarantees from the joint venture partners for their proportionate amounts of any guaranty payment the Company is obligated to make. On a continuous basis, management assesses whether there are any indicators, including property operating performance and general market conditions, that the value of the Company’s investments in unconsolidated joint ventures may be impaired. An investment’s value is impaired only if management’s estimate of the fair value of the investment is less than the carrying value of the investment and such difference is deemed to be other-than-temporary. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the investment over the estimated fair value of the investment. The Company’s estimated fair values are based upon a discounted cash flow model for each specific property that includes all estimated cash inflows and outflows over a specified holding period and where applicable, any estimated debt premiums. Capitalization rates, discount rates and credit spreads utilized in these models are based upon rates that the Company believes to be within a reason- able range of current market rates for each respective property. Marketable Securities The Company classifies its existing marketable equity securities as available-for-sale in accordance with the FASB’s Investments-Debt and Equity Securities guidance. These securities are carried at fair market value with unrealized gains and losses reported in stockhold- ers’ equity as a component of Accumulated other comprehensive income (“OCI”). Gains or losses on securities sold are based on the specific identification method. All debt securities are generally classified as held-to-maturity because the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost, adjusted for any amortization of premiums and accretion of discounts to maturity. Debt securities which contain conversion features are generally classified as available-for-sale. These securities are carried at fair market value with unrealized gains and losses reported in stockholders’ equity as a component of OCI. On a continuous basis, management assesses whether there are any indicators that the value of the Company’s marketable securi- ties may be impaired. A marketable security is impaired if the fair value of the security is less than the carrying value of the security and such difference is deemed to be other-than-temporary. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the security over the estimated fair value in the security. Realizability of Deferred Tax Assets and Uncertain Tax Positions The Company is subject to federal, state and local income taxes on the income from its activities relating to its TRS activities and subject to local taxes on certain non-U.S. investments. The Company accounts for income taxes using the asset and liability method, which requires that deferred tax assets and liabilities be recognized based on future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when the changes are enacted. A reduction of the carrying amounts of deferred tax assets by a valuation allowance is required, if based on the evidence available, it is more likely than not (a likelihood of more than 50 percent) that some portion or all of the deferred tax assets will not be realized. The valuation allowance should be sufficient to reduce the deferred tax asset to the amount that is more likely than not to be realized. The Company considers all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is needed. Information about an enterprise’s current financial position and its results of operations for the current and preceding years is supplemented by all currently available information about future years. 17 Future realization of the tax benefit of an existing deductible temporary difference or carryforward ultimately depends on the existence of sufficient taxable income of the appropriate character (for example, ordinary income or capital gain) within the carryback or carryforward period available under the tax law. The Company must use judgment in considering the relative impact of negative and positive evidence. The weight given to the potential effect of negative and positive evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists (a) the more positive evidence is necessary and (b) the more difficult it is to support a conclusion that a valuation allowance is not needed for some portion or all of the deferred tax asset. The Company believes, when evaluating deferred tax assets within its taxable REIT subsidiaries, special consideration should be given to the unique relationship between the Company as a REIT and its taxable REIT subsidiaries. This relationship exists primarily to protect the REIT’s qualification under the Code by permitting, within certain limits, the REIT to engage in certain business activities in which the REIT cannot directly participate. As such, the REIT controls which and when investments are held in, or distributed or sold from, its taxable REIT subsidiaries. This relationship distinguishes a REIT and taxable REIT subsidiary from an enterprise that operates as a single, consolidated corporate taxpayer. The Company primarily utilizes a twenty year projection of pre-tax book income and taxable income as positive evidence to overcome its significant negative evidence of a three-year cumulative pretax book loss. Although items of income and expense utilized in the projection are objectively verifiable there is also significant judgment used in determining the duration and timing of events that would impact the projection. Based upon the Company’s analysis of negative and positive evidence the Company will make a deter- mination of the need for a valuation allowance against its deferred tax assets. If future income projections do not occur as forecasted, the Company will reevaluate the need for a valuation allowance. In addition, the Company can employ additional strategies to realize its deferred tax assets including transferring a greater portion of its property management business to the TRS, sale of certain built-in gain assets, and further reducing intercompany debt (see Note 24 of the Notes to Consolidated Financial Statements included in this annual report on Form 10-K). The Company recognizes and measure benefits for uncertain tax positions which requires significant judgment from management. Although the Company believes it has adequately reserved for any uncertain tax positions, no assurance can be given that the final tax outcome of these matters will not be different. The Company adjusts these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in the Company’s income tax expense in the period in which a change is made, which could have a material impact on operating results (see Note 24 of the Notes to Consolidated Financial Statements included in this annual report on Form 10-K). RESULTS OF OPERATIONS Comparison 2010 to 2009 (all amounts in millions) 2010 2009 Increase % change Revenues from rental property(1) $ 849.5 $ 773.4 $ 76.1 9.8% Rental property expenses:(2) Rent Real estate taxes Operating and maintenance $ 14.1 $ 13.9 $ 0.2 116.3 122.6 110.4 108.5 $ 253.0 $ 232.8 5.9 14.1 $ 20.2 $ 11.9 1.4% 5.3% 13.0% 8.7% 5.3% Depreciation and amortization(3) $ 238.5 $ 226.6 (1) Revenues from rental property increased primarily from the combined effect of (i) the acquisition of operating properties during 2010 and 2009, providing incremental revenues for the year ended December 31, 2010 of $70.6 million, as compared to the corresponding period in 2009 and (ii) the completion of certain devel- opment and redevelopment projects, tenant buyouts and overall growth in the current portfolio, providing incremental revenues of approximately $9.5 million, for the year ended December 31, 2010, as compared to the corresponding period in 2009, which was partially offset by (iii) a decrease in revenues of approximately $4.0 million for the year ended December 31, 2010, as compared to the corresponding period in 2009, pri- marily resulting from the sale of certain properties during 2010 and 2009. (2) Rental property expenses increased primarily due to (i) operating property acquisitions during 2010 and 2009, (ii) the placement of certain development properties into service, which resulted in lower capitalization of carry costs, partially offset by operating property dispositions during 2010 and 2009. (3) Depreciation and amortization increased primarily due to (i) operating property acquisitions during 2010 and 2009, (ii) the placement of certain development properties into service and (iii) tenant vacates, partially offset by certain operating property dispositions during 2010 and 2009. 18 Mortgage and other financing income decreased $5.6 million to $9.4 million for the year ended December 31, 2010, as compared to $15.0 million for the corresponding period in 2009. This decrease is primarily due to a decrease in interest income as a result of pay-downs and dispositions of mortgage receivables during 2010 and 2009. Management and other fee income decreased approximately $2.5 million to $39.9 million for the year ended December 31, 2010, as compared to $42.4 million for the corresponding period in 2009. This decrease is primarily due to a decrease in property management fees of approximately $2.6 million from PL Retail, due to the Company’s acquisition of the remaining 85% ownership interest resulting in the Company’s consolidation of PL Retail in 2009, partially offset by an increase in other transaction related fees of approximately $0.1 million recognized during 2010. Interest, dividends and other investment income decreased approximately $11.8 million to $21.3 million for the year ended December 31, 2010, as compared to $33.1 million for the corresponding period in 2009. This decrease is primarily due to (i) a decrease in realized gains of approximately $5.2 million during 2010 resulting from the sale of certain marketable securities during the corresponding period in 2009 as compared to 2010, (ii) a reduction in interest income of approximately $3.8 million due to repayments of notes in 2010 and 2009 and (iii) a decrease in interest and dividend income of approximately $1.9 million during 2010, as compared to the corresponding period in 2009, primarily resulting from the sale of investments in marketable securities during 2010 and 2009. Other (expense)/income, net changed approximately $9.9 million to an expense of approximately $4.3 million for the year ended December 31, 2010, as compared to income of approximately $5.6 million for the corresponding period in 2009. This change is primarily due to (i) a decrease in the fair value of an embedded derivative instrument of approximately $2.0 million relating to the convertible option of the Company’s investment in valad notes, (ii) decreased gains from land sales of approximately $3.5 million, (iii) an increase in a legal settlement accrual of approximately $2.0 million relating to a previously sold ground-up development project and (iv) an increase in acquisition related costs of approximately $0.5 million. Interest expense increased approximately $18.4 million to $226.4 million for the year ended December 31, 2010, as compared to $208.0 million for the corresponding period in 2009. This increase is due to higher average outstanding levels of debt during the year ended December 31, 2010, as compared to 2009. During the year ended December 31, 2010, the Company incurred early extinguishment of debt charges aggregating approximately $10.8 million in connection with the optional make-whole provisions of notes that were repaid prior to maturity and prepayment penal- ties on five mortgages that the Company paid prior to their maturity. Income from other real estate investments increased approximately $7.1 million to $43.3 million for the year ended December 31, 2010, as compared to $36.2 million for the corresponding period in 2009. This increase is primarily due to an increase in profit participa- tion earned from capital transactions within the Company’s Preferred Equity Program during 2010 as compared to the corresponding period in 2009. During 2010, the Company disposed of a land parcel for a sales price of approximately $0.9 million resulting in a gain of approximately $0.4 million. Additionally, the Company recognized approximately $1.7 million in income on previously sold development properties during the year ended December 31, 2010. During 2009, the Company sold, in separate transactions, five out-parcels, four land parcels and three ground leases for aggregate proceeds of approximately $19.4 million. These transactions resulted in gains on sale of development properties of approximately $5.8 million, before income taxes of $2.3 million. During 2010, the Company recognized impairment charges of approximately $29.3 million (not including approximately $5.2 million which is included in discontinued operations), before income taxes and noncontrolling interest, relating to adjustments to property carrying values, real estate under development, investments in other real estate investments and other investments. The Company’s estimated fair values relating to these impairment assessments were based upon estimated sales prices and discounted cash flow models that included all estimated cash inflows and outflows over a specified holding period. These cash flows are comprised of unobserv- able inputs which include contractual rental revenues and forecasted rental revenues and expenses based upon market conditions and expectations for growth. Capitalization rates and discount rates utilized in these models were based upon observable rates that the Company believes to be within a reasonable range of current market rates for the respective properties. Based on these inputs, the Company determined that its valuation in these investments was classified within Level 3 of the FASB fair value hierarchy. 19 Additionally, during 2010, the Company recorded impairment charges of approximately $4.6 million due to the decline in value of certain marketable securities that were deemed to be other-than-temporary. During 2009, the Company recognized impairment charges of approximately $131.7 million (not including approximately $13.3 million of which is included in discontinued operations), before income taxes and noncontrolling interest, relating to adjustments to property car- rying values, investments in real estate joint ventures, real estate under development and other real estate investments. The Company’s estimated fair values relating to these impairment assessments were based upon discounted cash flow models that included all estimated cash inflows and outflows over a specified holding period and where applicable, any estimated debt premiums. These cash flows are comprised of unobservable inputs which include contractual rental revenues and forecasted rental revenues and expenses based upon market conditions and expectations for growth. Capitalization rates and discount rates utilized in these models were based upon observ- able rates that the Company believes to be within a reasonable range of current market rates for the respective properties. Based on these inputs the Company determined that its valuation in these investments was classified within Level 3 of the fair value hierarchy. Additionally, during 2009, the Company recorded impairment charges of approximately $30.1 million due to the decline in value of certain marketable equity securities and other investments that were deemed to be other-than-temporary. (Provision)/benefit for income taxes changed by approximately $33.6 million to a provision of approximately $3.4 million for the year ended December 31, 2010, as compared to a benefit of approximately $30.1 million for the corresponding period in 2009. This change is primarily due to (i) a decrease in income tax benefit of approximately $22.7 million related to impairments taken during the year ended December 31, 2010 as compared to the corresponding period in 2009, (ii) an increase in foreign taxes of approximately $6.8 million primarily resulting from an overall increase in income from foreign investments and (iii) an increase in the tax provision expense of approximately $6.8 million relating to an increase in equity income recognized in connection with the Albertson’s invest- ment during the year ended December 31, 2010, as compared to the corresponding period in 2009, partially offset by (iv) a decrease in the income tax provision expense of approximately $1.4 million in connection with gains on sale of development properties during 2010, as compared to 2009. Equity in income of real estate joint ventures, net increased approximately $49.4 million to $55.7 million for the year ended December 31, 2010, as compared to $6.3 million for the corresponding period in 2009. This increase is primarily the result of a (i) the recognition of approximately $21.2 million of equity in income from the Albertson’s joint venture during 2010, as compared to $3.0 million of equity in income recognized during 2009, primarily resulting from the sale of properties in the joint venture, (ii) an increase in equity in income of approximately $5.9 million from the Company’s joint venture investments in Canada primarily resulting from the amend- ment and restructuring of two retail property preferred equity investments into two pari passu joint venture investments during 2010, (iii) the recognition of approximately $8.0 million in income resulting from cash distributions received in excess of the Company’s car- rying value of its investment in an unconsolidated limited liability partnership for the year ended December 31, 2010 and (iv) decrease in impairment charges of approximately $15.0 million resulting from fewer impairment charges recognized against certain joint venture properties during 2010, as compared to the corresponding period in 2009. During 2010, the Company (i) sold seven operating properties, which were previously consolidated, to two new joint ventures in which the Company holds noncontrolling equity interests for an aggregate sales price of approximately $438.1 million including the assignment of $159.9 million of non-recourse mortgage debt encumbering three of the properties and (ii) disposed of, in separate trans- actions, seven operating properties for an aggregate sales price of approximately $100.5 million including the assignment of $81.0 million of non-recourse mortgage debt encumbering one of the properties. These transactions resulted in aggregate gains of approximately $4.4 million and aggregate losses/impairments of approximately $5.0 million. Additionally, during 2010, the Company disposed of (i) three properties, in separate transactions, for an aggregate sales price of approximately $23.8 million and (ii) five properties from a consolidated joint venture in which the Company had a preferred equity investment for a sales price of approximately $40.8 million. These transactions resulted in an aggregate profit participation of approxi- mately $20.8 million, before income tax of approximately $1.0 million and noncontrolling interest of approximately $4.9 million. This profit participation has been recorded as Income from other real estate investments and is reflected in Income from discontinued operating properties, net of tax in the Company’s Consolidated Statements of Operations. During 2009, the Company disposed of, in separate transactions, portions of six operating properties and one land parcel for an aggregate sales price of approximately $28.9 million. These transactions resulted in the Company’s recognition of an aggregate net gain of approximately $4.1 million, net of income tax of $0.2 million. Net income attributable to the Company for 2010 was $142.9 million. Net loss attributable to the Company for 2009 was $3.9 million. On a diluted per share basis, net income attributable to the Company was $0.22 for 2010, as compared to net loss of $0.15 for 2009. These changes are primarily attributable to (i) a decrease in impairment charges of approximately $112.1 million, net of income taxes and noncontrolling interests, (ii) an overall net increase in Equity in income of joint ventures primarily due to a decrease in impairment charges of approximately $15.0 million during 2010, as compared to 2009 and an increase in equity in income from the Albertson’s joint venture, (iii) an increase in Income from other real estate investments primarily due to an increase of approximately $7.2 million from the Company’s Preferred Equity program, (iv) additional incremental earnings due to the acquisitions of operating properties during 2010 and 2009, partially offset by (v) the recognition of approximately $10.8 million in early extinguishment of debt charges. 20 Comparison 2009 to 2008 (all amounts in millions) 2009 2008 Increase % change Revenues from rental property(1) $ 773.4 $ 751.2 $ 22.2 3.0% Rental property expenses:(2) Rent Real estate taxes Operating and maintenance $ 13.9 $ 13.1 $ 0.8 110.4 108.5 96.9 103.8 $ 232.8 $ 213.8 13.5 4.7 $ 19.0 $ 21.8 6.1% 13.9% 4.5% 8.9% 10.6% Depreciation and amortization(3) $ 226.6 $ 204.8 (1) Revenues from rental property increased primarily from the combined effect of (i) the acquisition of operat- ing properties during 2009 and 2008, providing incremental revenues for the year ended December 31, 2009 of $29.3 million, as compared to the corresponding period in 2008 and (ii) the completion of certain development and redevelopment projects and tenant buyouts providing incremental revenues of approxi- mately $7.4 million, for the year ended December 31, 2009, as compared to the corresponding period in 2008, which was partially offset by (iii) a decrease in revenues of approximately $14.5 million for the year ended December 31, 2009, as compared to the corresponding period in 2008, primarily resulting from the sale of certain properties during 2009 and 2008, and (iv) an overall occupancy decrease in the consolidated shopping center portfolio from 93.1% at December 31, 2008 to 92.2% at December 31, 2009. (2) Rental property expenses increased primarily due to (i) operating property acquisitions during 2009 and 2008, (ii) the placement of certain development properties into service, which resulted in lower capitalization of carry costs, and (iii) an increase in snow removal costs during 2009 as compared to 2008, partially offset by (iv) a decrease in insurance costs during 2009 as compared to 2008 and (v) operating property disposi- tions during 2009 and 2008. (3) Depreciation and amortization increased primarily due to (i) operating property acquisitions during 2008 and 2009, (ii) the placement of certain development properties into service and (iii) tenant vacates, partially offset by operating property dispositions during 2009 and 2008. Mortgage and other financing income decreased $3.3 million to $15.0 million for the year ended December 31, 2009, as compared to $18.3 million for the corresponding period in 2008. This decrease is primarily due to a decrease in interest income during 2009 resulting from the repayment of certain mortgage receivables during 2009 and 2008. Management and other fee income decreased approximately $5.1 million to $42.5 million for the year ended December 31, 2009, as compared to $47.6 million for the corresponding period in 2008. This decrease is primarily due to a decrease in property management fees of approximately $5.8 million for 2009, due to lower revenues attributable to lower occupancy and the sale of certain properties during 2009 and 2008, partially offset by an increase in other transaction related fees of approximately $0.6 million recognized during 2009. General and administrative expenses decreased approximately $6.9 million to $108.0 million for the year ended December 31, 2009, as compared to $114.9 million for the corresponding period in 2008. This decrease is primarily due to a reduction in force during 2009 as a result of implementing the Company’s core business strategy of focusing on owning and operating shopping centers and a shift away from certain non-retail assets along with a lack of transactional activity. Interest, dividends and other investment income decreased approximately $23.0 million to $33.1 million for the year ended December 31, 2009, as compared to $56.1 million for the corresponding period in 2008. This decrease is primarily due to (i) a decrease in real- ized gains of approximately $8.2 million during 2009 resulting from the sale of certain marketable securities during the corresponding period in 2008 as compared to 2009, and (ii) a decrease in interest and dividend income of approximately $14.8 million during 2009, as compared to the corresponding period in 2008, primarily resulting from the sale of investments in marketable securities and reductions in dividends declared from certain marketable securities during 2009 and 2008. Other (expense)/income, net changed approximately $5.2 million to income of approximately $5.6 million for the year ended December 31, 2009, as compared to income of approximately $0.4 million for the corresponding period in 2008. This change is primarily due to (i) increased gains from land sales of approximately $5.9 million and (ii) an increase in the fair value of an embedded derivative instrument relating to the convertible option of the valad notes of approximately $9.8 million, partially offset by, (iii) the receipt of fewer shares of Sears Holding Corp. common stock received as partial settlement of Kmart pre-petition claims during 2008 and (iv) a decrease in franchise taxes. Interest expense decreased approximately $4.2 million to $208.0 million for the year ended December 31, 2009, as compared to $212.2 million for the corresponding period in 2008. This decrease is due to lower outstanding levels of debt during the year ended December 31, 2009, as compared to 2008. 21 Income from other real estate investments decreased $51.4 million to $36.2 million for the year ended December 31, 2009, as compared to $87.6 million for the corresponding period in 2008. This decrease is primarily due to (i) a decrease from the Company’s Preferred Equity Program of approximately $36.4 million in contributed income during 2009, including a decrease of approximately $22.1 million in profit participation earned from capital transactions during 2009 as compared to the corresponding period in 2008 and (ii) a gain of approximately $7.2 million from the sale of the Company’s interest in a real estate company located in Mexico during 2008. During 2009, the Company sold, in separate transactions, five out-parcels, four land parcels and three ground leases for aggregate proceeds of approximately $19.4 million. These transactions resulted in gains on sale of development properties of approximately $5.8 million, before income taxes of $2.3 million. During 2008, the Company sold, in separate transactions, (i) two completed merchant building projects, (ii) 21 out-parcels, (iii) a partial sale of one project and (iv) a partnership interest in one project for aggregate proceeds of approximately $73.5 million and received approximately $4.1 million of proceeds from completed earn-out requirements on three previously sold merchant building projects. These sales resulted in gains of approximately $36.6 million, before income taxes of $14.6 million. During 2009, the Company recognized impairment charges of approximately $131.7 million (not including approximately $13.3 million of which is included in discontinued operations), before income taxes and noncontrolling interest, relating to adjustments to property carrying values, investments in real estate joint ventures, real estate under development and other real estate investments. The Company’s estimated fair values relating to these impairment assessments were based upon discounted cash flow models that included all estimated cash inflows and outflows over a specified holding period and where applicable, any estimated debt premiums. These cash flows are comprised of unobservable inputs which include contractual rental revenues and forecasted rental revenues and expenses based upon market conditions and expectations for growth. Capitalization rates and discount rates utilized in these models were based upon observ- able rates that the Company believes to be within a reasonable range of current market rates for the respective properties. Based on these inputs the Company determined that its valuation in these investments was classified within Level 3 of the fair value hierarchy. Additionally, during 2009, the Company recorded impairment charges of approximately $30.1 million due to the decline in value of certain marketable equity securities and other investments that were deemed to be other-than-temporary. For the year ended December 31, 2008, the Company recognized impairment charges of approximately $29.1 million before income taxes and noncontrolling interests. Additionally, during 2008, the Company recorded impairment charges of approximately $118.4 million due to the decline in value of certain marketable equity securities and other investments that were deemed to be other-than-temporary. The Company will continue to assess the value of all its assets on an on-going basis. Based on these assessments, the Company may determine that a decline in value for one or more of its investments may be other-than-temporary or permanent and would therefore write-down its cost basis accordingly. Benefit for income taxes increased by $18.5 million to $30.1 million for the year ended December 31, 2009, as compared to $11.6 million for the corresponding period in 2008. This change is primarily due to (i) a decrease in the tax provision expense of approxi- mately $13.2 million from equity income recognized in connection with the Albertson’s investment during the year ended December 31, 2009, as compared to the corresponding period in 2008 and (ii) a decrease in the income tax provision expense of approximately $12.3 million in connection with gains on sale of development properties during 2009 as compared to 2008, partially offset by (iii) a decrease in income tax benefit of approximately $2.1 million related to impairments taken during the year ended December 31, 2009, as compared to the corresponding period in 2008 and (iv) an increase in foreign taxes of approximately $3.9 million for the year ended December 31, 2009, as compared to the corresponding period in 2008. Equity in income of real estate joint ventures, net for the year ended December 31, 2009, was approximately $6.3 million as compared to $132.2 million for the corresponding period in 2008. This reduction of approximately $125.9 million is primarily the result of (i) an increase in the recognition of impairment charges against the carrying value of the Company’s investment in unconsolidated joint ventures of approximately $27.5 million recorded during 2009, as compared to the corresponding period in 2008, primarily due to an increase in impairments of approximately $23.9 million recognized by the Kimco Prudential joint ventures, (ii) the recognition of approximately $2.9 million of equity in income from the Albertson’s joint venture during 2009, as compared to $63.9 million of equity in income recognized during 2008 resulting from the sale of 121 properties in the joint venture, (iii) the recognition of approximately $11.0 million in income resulting from cash distributions received in excess of the Company’s carrying value of its investment in various unconsolidated limited liability partnerships during the corresponding period in 2008, (iv) a decrease in income of $11.8 million during 2009, from a joint venture which holds interests in extended stay residential properties primarily due to overall decreases in occupancy, (v) a decrease in profit participation of approximately $9.1 million during 2009, as compared to the corresponding period in 2008, resulting from the sale/transfer of operating properties from two joint venture investments, (vi) a decrease in income of approximately $4.5 million during 2009, from a Canadian joint venture investment, primarily due to an overall decrease in occupancy and (vii) a decrease in occupancy levels within certain real estate joint venture investments, partially offset by increased gains on sales of approximately $5.1 million during the year ended December 31, 2009, resulting from the sale of operating properties during 2009, as compared to 2008. 22 During 2009, the Company disposed of, in separate transactions, portions of six operating properties and one land parcel for an aggregate sales price of approximately $28.9 million. These transactions resulted in the Company’s recognition of an aggregate net gain of approximately $4.1 million, net of income tax of $0.2 million. During 2008, the Company disposed of seven operating properties and a portion of four operating properties, in separate transac- tions, for an aggregate sales price of approximately $73.0 million, which resulted in an aggregate gain of approximately $20.0 million. In addition, the Company partially recognized deferred gains of approximately $1.2 million on three properties relating to their transfer and partial sale in connection with the Kimco Income Fund II transaction described below. During 2008, the Company transferred three properties to a wholly-owned consolidated entity, Kimco Income Fund II (“KIF II”), for $73.9 million, including $50.6 million in non-recourse mortgage debt. During 2008 the Company sold a 26.4% non-controlling own- ership interest in the entity to third parties for approximately $32.5 million, which approximated the Company’s cost. The Company continues to consolidate this entity. Additionally, during 2008, the Company disposed of an operating property for approximately $21.4 million. The Company provided seller financing for approximately $3.6 million, which bears interest at 10% per annum and is scheduled to mature on May 1, 2011. Due to the terms of this financing the Company deferred its gain of $3.7 million from this sale. Additionally, during 2008, a consolidated joint venture in which the Company had a preferred equity investment disposed of a property for a sales price of approximately $35.0 million. As a result of this capital transaction, the Company received approximately $3.5 million of profit participation, before noncontrolling interest of approximately $1.1 million. This profit participation has been recorded as income from other real estate investments and is reflected in Income from discontinued operating properties in the Company’s Consolidated Statements of Operations. Net loss attributable to the Company for 2009 was $3.9 million. Net income attributable to the Company for 2008 was $249.9 million. On a diluted per share basis, net loss attributable to the Company was $0.15 for 2009, as compared to net income of $0.78 for 2008. These changes are primarily attributable to (i) an increase in impairment charges of approximately $57.8 million, net of income taxes and noncontrolling interests, resulting from continuing declines in the real estate markets and equity securities, (ii) a reduction in Income from other real estate investments, primarily due to a decrease in profit participation from the Company’s Preferred Equity program, (iii) a decrease in equity in income of joint ventures, primarily due to a decrease in income from the Albertson’s investment and impairment charges relating to five joint venture investments, and (iv) lower gains on sales of development properties, partially offset by (v) an increase in revenues from rental properties primarily due to acquisitions of operating properties during 2009 and 2008. LIQUIDITY AND CAPITAL RESOURCES The Company’s capital resources include accessing the public debt and equity capital markets, when available, mortgage and con- struction loan financing and immediate access to unsecured revolving credit facilities with aggregate bank commitments of approximately $1.7 billion. The Company’s cash flow activities are summarized as follows (in millions): Year Ended December 31, 2010 2009 2008 Net cash flow provided by operating activities $ 479.9 $ 403.6 $ 567.6 Net cash flow provided by/(used for) investing activities $ 37.9 $ (343.2) $ (781.4) Net cash flow (used for)/provided by financing activities $ (514.7) $ (74.5) $ 262.4 OPERATING ACTIvITIES The Company anticipates that cash on hand, borrowings under its revolving credit facilities, issuance of equity and public debt, as well as other debt and equity alternatives, will provide the necessary capital required by the Company. Net cash flow provided by operating activities for the year ended December 31, 2010, was primarily attributable to (i) cash flow from the diverse portfolio of rental properties, (ii) the acquisition of operating properties during 2010 and 2009, (iii) new leasing, expansion and re-tenanting of core portfolio properties and (iv) distributions from the Company’s joint venture programs. 23 Cash flow provided by operating activities for the year ended December 31, 2010, was approximately $479.9 million, as compared to approximately $403.6 million for the comparable period in 2009. The change of approximately $76.3 million is primarily attributable to (i) an increase in distributions from joint ventures of approximately $26.2 million, primarily from increases in distributions from the Albertson’s investment and various other real estate joint ventures, (ii) a decrease in prepaid income taxes of approximately $22.6 million during 2010 as compared to 2009 primarily from the Company’s receipt of a federal tax refund from its filing of carryback claims for its taxable REIT subsidiary, KRS and (iii) additional incremental earnings due to the acquisitions of operating properties during 2010 and 2009. INvESTING ACTIvITIES Cash flow provided by investing activities for the year ended December 31, 2010, was approximately $37.9 million, as compared to a cash flows used for investing activities of approximately $343.2 million for the comparable period in 2009. This change of approximately $381.1 million resulted primarily from decreases in (i) the acquisition of and improvements to operating real estate and real estate under development, (ii) an increase in proceeds from the sale of operating properties, partially offset by, (iii) a decrease in proceeds from the sale of marketable securities (iv) an increase in investments and advances to real estate joint ventures, (v) a decrease in reimburse- ments of advances to real estate joint ventures, and (vi) a decrease in proceeds from the sale of development properties during the year ended December 31, 2010, as compared to the corresponding period in 2009. Acquisitions of and Improvements to Operating Real Estate During the year ended December 31, 2010, the Company expended approximately $182.5 million towards acquisition of and improvements to operating real estate including $74.5 million expended in connection with redevelopments and re-tenanting projects as described below. (See Note 4 of the Notes to the Consolidated Financial Statements included in this annual report on Form 10-K.) The Company has an ongoing program to reformat and re-tenant its properties to maintain or enhance its competitive position in the marketplace. The Company anticipates its capital commitment toward these and other redevelopment projects during 2011 will be approximately $15.0 million to $25.0 million. The funding of these capital requirements will be provided by cash flow from operating activities and availability under the Company’s revolving lines of credit. Investments and Advances to Real Estate Joint Ventures During the year ended December 31, 2010, the Company expended approximately $138.8 million for investments and advances to real estate joint ventures and received approximately $85.2 million from reimbursements of advances to real estate joint ventures. (See Note 8 of the Notes to the Consolidated Financial Statements included in this annual report on Form 10-K.) Acquisitions of and Improvements to Real Estate Under Development The Company is engaged in ground-up development projects which consist of (i) U.S. ground-up development projects which will be held as long-term investments by the Company and (ii) various ground-up development projects located in Latin America for long- term investment. During 2009, the Company changed its merchant building business strategy from a sale upon completion strategy to a long-term hold strategy. Those properties previously considered merchant building have been either placed in service as long-term investment properties or included in U.S. ground-up development projects. The ground-up development projects generally have significant pre-leasing prior to the commencement of construction. As of December 31, 2010, the Company had in progress a total of six ground-up development projects, consisting of (i) two ground-up development projects located in Mexico, (ii) two ground-up development projects located in the U.S., (iii) one ground-up development project located in Chile and (iv) one ground-up develop- ment project located in Brazil. During the year ended December 31, 2010, the Company expended approximately $42.0 million in connection with construction costs related to ground-up development projects. The Company anticipates its capital commitment during 2011 toward these and other development projects will be approximately $25.0 million to $35.0 million. The proceeds from construction loans and availability under the Company’s revolving lines of credit are expected to be sufficient to fund these anticipated capital requirements. Dispositions and Transfers During the year ended December 31, 2010, the Company received net proceeds of approximately $246.6 million relating to the sale of various operating properties and ground-up development projects. (See Notes 5 and 7 of the Notes to the Consolidated Financial Statements included in this annual report on Form 10-K.) FINANCING ACTIvITIES Cash flow used for financing activities for the year ended December 31, 2010, was approximately $514.7 million, as compared to approximately $74.5 million for the comparable period in 2009. This change of approximately $440.2 million resulted primarily from the Company’s deleveraging efforts to strengthen the Company’s Consolidated Balance Sheet. As a result of these efforts, there was (i) a 24 decrease in proceeds from the issuance of stock of approximately $886.6 million in 2010 as compared to 2009, (ii) a decrease in proceeds from mortgage/construction loan financing of approximately $419.3 million, (iii) an increase in the repayment of unsecured term loan/notes of approximately $43.0 million, (iv) decreases in proceeds from issuance of unsecured term loans/notes of approximately $70.3 million and (v) an increase in the redemption of noncontrolling interests of approximately $49.1 million, partially offset by (vi) a net decrease of approxi- mately $565.4 million in net borrowings/repayments under the Company’s unsecured revolving credit facilities, (vii) an overall decrease in aggregate principal payments of approximately $430.0 million and (viii) a decrease in dividends paid of approximately $24.1 million. The Company continually evaluates its debt maturities, and, based on management’s current assessment, believes it has viable financing and refinancing alternatives that will not materially adversely impact its expected financial results. The credit environment has improved and the Company continues to pursue opportunities with large commercial U.S. and global banks, select life insurance com- panies and certain regional and local banks. The Company has noticed a continuing trend that although pricing and loan-to-value ratios remain dependent on specific deal terms, generally spreads for non-recourse mortgage financing are compressing and loan-to-values are gradually increasing from levels a year ago. The unsecured debt markets are functioning well and credit spreads have decreased dramatically from a year ago. The Company continues to assess 2011 and beyond to ensure the Company is prepared if the current credit market conditions deteriorate. Debt maturities for 2011 consist of: $112.5 million of consolidated debt; $685.2 million of unconsolidated joint venture debt; and $276.4 million of preferred equity debt, assuming the utilization of extension options where available. The 2011 consolidated debt maturities are anticipated to be repaid with operating cash flows, borrowings from the Company’s credit facilities, which at December 31, 2010, the Company had approximately $1.6 billion available under these credit facilities, and debt refinancings. The 2011 uncon- solidated joint venture and preferred equity debt maturities are anticipated to be repaid through debt refinancing and partner capital contributions, as deemed appropriate. The Company intends to maintain strong debt service coverage and fixed charge coverage ratios as part of its commitment to maintaining its investment-grade debt ratings. The Company plans to continue strengthening its balance sheet by pursuing deleveraging efforts over time. The Company may, from time-to-time, seek to obtain funds through additional common and preferred equity offer- ings, unsecured debt financings and/or mortgage/construction loan financings and other capital alternatives. Since the completion of the Company’s IPO in 1991, the Company has utilized the public debt and equity markets as its principal source of capital for its expansion needs. Since the IPO, the Company has completed additional offerings of its public unsecured debt and equity, raising in the aggregate over $7.9 billion. Proceeds from public capital market activities have been used for the purposes of, among other things, repaying indebtedness, acquiring interests in neighborhood and community shopping centers, funding ground-up development projects, expanding and improving properties in the portfolio and other investments. These markets have experienced extreme volatility but have more recently stabilized. As available, the Company will continue to access these markets. The Company was added to the S&P 500 Index in March 2006, an index containing the stock of 500 Large Cap corporations, most of which are U.S. corporations. The Company has a $1.5 billion unsecured U.S. revolving credit facility (the “U.S. Credit Facility”) with a group of banks, which was scheduled to expire in October 2011. During October 2010, the Company exercised its one-year extension option and the U.S. Credit Facility is now scheduled to expire in October 2012. The U.S. Credit Facility has made available funds to finance general cor- porate purposes, including (i) property acquisitions, (ii) investments in the Company’s institutional real estate management programs, (iii) development and redevelopment costs and (iv) any short-term working capital requirements, including managing the Company’s debt maturities. Interest on borrowings under the U.S. Credit Facility accrues at LIBOR plus 0.425% and fluctuates in accordance with changes in the Company’s senior debt ratings. As part of this U.S. Credit Facility, the Company has a competitive bid option whereby the Company may auction up to $750.0 million of its requested borrowings to the bank group. This competitive bid option provides the Company the opportunity to obtain pricing below the currently stated spread. A facility fee of 0.15% per annum is payable quarterly in arrears. As part of the U.S. Credit Facility, the Company has a $200.0 million sub-limit which provides it the opportunity to borrow in alternative currencies such as Pounds Sterling, Japanese Yen or Euros. As of December 31, 2010, the U.S. Credit Facility had a balance of $123.2 million outstanding and approximately $23.7 million appropriated for letters of credit. Pursuant to the terms of the U.S. Credit Facility, the Company, among other things, is subject to maintenance of various covenants. The Company is currently not in violation of these covenants. The financial covenants for the U.S. Credit Facility are as follows: Covenant Total Indebtedness to Gross Asset value (“GAv”) Total Priority Indebtedness to GAv Unencumbered Asset Net Operating Income to Total Unsecured Interest Expense Fixed Charge Total Adjusted EBITDA to Total Debt Service Must Be As of 12/31/10 <60% <35% >1.75x >1.50x 44% 11% 2.98x 2.18x Limitation of Investments, Loans and Advances <30% of GAv 19% of GAv 25 For a full description of the U.S. Credit Facility’s covenants refer to the Credit Agreement dated as of October 25, 2007 filed in the Company’s Current Report on Form 8-K dated October 25, 2007. The Company also has a Canadian denominated (“CAD”) $250.0 million unsecured credit facility with a group of banks. This facility bears interest at a rate of CDOR plus 0.425%, subject to change in accordance with the Company’s senior debt ratings and was scheduled to mature March 2011. During September 2010, the Company exercised its one-year extension option and the credit facility is now scheduled to expire in March 2012. A facility fee of 0.15% per annum is payable quarterly in arrears. This facility also permits U.S. dollar denominated borrowings. Proceeds from this facility are used for general corporate purposes, including the funding of Canadian denominated investments. As of December 31, 2010, there was no outstanding balance under this credit facility. The Canadian facility covenants are the same as the U.S. Credit Facility covenants described above. During March 2008, the Company obtained a MXP 1.0 billion term loan, which bears interest at a rate of 8.58%, subject to change in accordance with the Company’s senior debt ratings, and is scheduled to mature in March 2013. The Company utilized proceeds from this term loan to fully repay the outstanding balance of a MXP 500.0 million unsecured revolving credit facility, which was terminated by the Company. Remaining proceeds from this term loan were used for funding MXP denominated investments. As of December 31, 2010, the outstanding balance on this term loan was MXP 1.0 billion (approximately USD $80.9 million). The Mexican term loan covenants are the same as the U.S. and Canadian Credit Facilities covenants described above. The Company has a Medium Term Notes (“MTNs”) program pursuant to which it may, from time-to-time, offer for sale its senior unsecured debt for any general corporate purposes, including (i) funding specific liquidity requirements in its business, including property acquisitions, development and redevelopment costs and (ii) managing the Company’s debt maturities. (See Note 13 of the Notes to Consolidated Financial Statements included in this annual report on Form 10-K.) The Company’s supplemental indenture governing its medium term notes and senior notes contains the following covenants, all of which the Company is compliant with: Covenant Must Be As of 12/31/10 Consolidated Indebtedness to Total Assets Consolidated Secured Indebtedness to Total Assets <60% <40% Consolidated Income Available for Debt Service to Maximum Annual Service Charge >1.50x Unencumbered Total Asset value to Consolidated Unsecured Indebtedness >1.50x 38% 9% 3.4x 2.9x For a full description of the various indenture covenants refer to the Indenture dated September 1, 1993, First Supplemental Indenture dated August 4, 1994, the Second Supplemental Indenture dated April 7, 1995, the Third Supplemental Indenture dated June 2, 2006, the Fifth Supplemental Indenture dated as of September 24, 2009, the Fifth Supplemental Indenture dated as of October 31, 2006 and First Supplemental Indenture dated October 31, 2006, as filed with the SEC. See Exhibits Index on page 35, for specific filing information. During 2010, the Company issued $300.0 million of unsecured MTNs which bear interest at a rate of 4.30% and are scheduled to mature on February 1, 2018. Proceeds from these MTNs were used to repay (i) the Company’s $100.0 million 5.304% MTNs which were scheduled to mature in February 2011 and (ii) the Company’s $150.0 million 7.95% MTNs which were scheduled to mature in April 2011. The remaining proceeds were used for general corporate purposes. In connection with the optional make-whole provisions relating to the prepayment of these notes, the Company incurred early extinguishment of debt charges aggregating approximately $6.5 million. During April 2010, the Company issued $150.0 million CAD (approximately USD $141.1 million) unsecured notes to a group of pri- vate investors at a rate of 5.99% scheduled to mature on April 13, 2018. Proceeds from these notes were used to repay the Company’s CAD $150.0 million 4.45% Series 1 unsecured notes which matured in April 2010. Additionally, during 2010, the Company repaid (i) the remaining $46.5 million balance on its 4.62% MTNs, which matured in May 2010 and (ii) its $25.0 million 7.30% MTNs, which matured in September 2010. During 2010, the Company (i) assumed approximately $144.8 million of individual non-recourse mortgage debt relating to the acquisition of eight operating properties, including a decrease of approximately $4.4 million associated with fair value debt adjustments, (ii) assigned approximately $159.9 million in non-recourse mortgage debt encumbering three operating properties that were sold to newly formed joint ventures in which the Company has noncontrolling interests, (iii) assigned approximately $81.0 million of non-recourse mortgage debt encumbering an operating property that was sold to a third party and (iv) paid off approximately $226.0 million of mortgage debt that encumbered 17 operating properties. In connection with the repayment of five of these mortgages, the Company incurred early extinguishment of debt charges aggregating approximately $4.3 million. 26 During April 2009, the Company filed a shelf registration statement on Form S-3ASR, which is effective for a term of three years, for the future unlimited offerings, from time-to-time, of debt securities, preferred stock, depositary shares, common stock and common stock warrants. During August 2010, the Company issued 7,000,000 Depositary Shares (the “Class H Depositary Shares”), each representing a one-hundredth fractional interest in a share of the Company’s 6.90% Class H Cumulative Redeemable Preferred Stock, $1.00 par value per share (the “Class H Preferred Stock”). Dividends on the Class H Depositary Shares are cumulative and payable quarterly in arrears at the rate of 6.90% per annum based on the $25.00 per share initial offering price, or $1.725 per annum. The Class H Depositary Shares are redeemable, in whole or part, for cash on or after August 30, 2015, at the option of the Company, at a redemption price of $25.00 per depositary share, plus any accrued and unpaid dividends thereon. The Class H Depositary Shares are not convertible or exchangeable for any other property or securities of the Company. The net proceeds received from this offering of approximately $169.2 million were used primarily to repay mortgage loans in the aggregate principal amount of approximately $150.0 million and for general corporate purposes. In addition to the public equity and debt markets as capital sources, the Company may, from time-to-time, obtain mortgage financ- ing on selected properties and construction loans to partially fund the capital needs of its ground-up development projects. As of December 31, 2010, the Company had over 430 unencumbered property interests in its portfolio. In connection with its intention to continue to qualify as a REIT for federal income tax purposes, the Company expects to continue paying regular dividends to its stockholders. These dividends will be paid from operating cash flows. The Company’s Board of Directors will continue to evaluate the Company’s dividend policy on a quarterly basis as they monitor sources of capital and evaluate the impact of the economy and capital markets availability on operating fundamentals. Since cash used to pay dividends reduces amounts available for capital investment, the Company generally intends to maintain a conservative dividend payout ratio, reserving such amounts as it considers necessary for the expansion and renovation of shopping centers in its portfolio, debt reduction, the acquisition of interests in new properties and other investments as suitable opportunities arise and such other factors as the Board of Directors considers appropriate. Cash dividends paid were $307.0 million in 2010, as compared to $331.0 million in 2009 and $469.0 million in 2008. Although the Company receives substantially all of its rental payments on a monthly basis, it generally intends to continue paying dividends quarterly. Amounts accumulated in advance of each quarterly distribution will be invested by the Company in short-term money market or other suitable instruments. The Company’s Board of Directors declared a quarterly cash dividend of $0.18 per common share payable to shareholders of record on January 3, 2011, which was paid on January 18, 2011. Additionally, the Company’s Board of Directors declared a quarterly cash dividend of $0.18 per common share payable to shareholders of record on April 5, 2011, which will be paid on April 15, 2011. CONTRACTUAL OBLIGATIONS AND OTHER COMMITMENTS The Company has debt obligations relating to its revolving credit facilities, MTNs, senior notes, mortgages and construction loans with maturities ranging from less than one year to 25 years. As of December 31, 2010, the Company’s total debt had a weighted average term to maturity of approximately 5.2 years. In addition, the Company has non-cancelable operating leases pertaining to its shopping center portfolio. As of December 31, 2010, the Company has 48 shopping center properties that are subject to long-term ground leases where a third party owns and has leased the underlying land to the Company to construct and/or operate a shopping center. In addi- tion, the Company has 14 non-cancelable operating leases pertaining to its retail store lease portfolio. The following table summarizes the Company’s debt maturities (excluding extension options and fair market value of debt adjustments aggregating approximately $3.2 million) and obligations under non-cancelable operating leases as of December 31, 2010 (in millions): 2011 2012 2013 2014 2015 Thereafter Total Long-Term Debt-Principal(1) $ 147.4 $ 565.8 $ 651.7 $ 521.4 $ 410.6 $ 1,758.9 $ 4,055.8 Long-Term Debt-Interest(2) $ 225.7 $ 215.8 $ 182.7 141.4 $ 123.5 $ 233.0 $ 1,122.1 Operating Leases Ground Leases $ 11.9 $ 11.1 $ 10.6 10.2 $ 9.2 $ 167.7 $ 220.7 Retail Store Leases $ 3.4 $ 2.6 $ 2.3 1.7 $ 1.3 $ 1.6 $ 12.9 (1) Maturities utilized do not reflect extension options, which range from one to two years. (2) For loans which have interest at floating rates, future interest expense was calculated using the rate as of December 31, 2010. The Company has $4.9 million of non-current uncertain tax benefits and related interest under the provisions of the authoritative guidance that addresses accounting for income taxes, which are included in other liabilities on the Company’s Consolidated Balance Sheets at December 31, 2010. These amounts are not included in the table above because a reasonably reliable estimate regarding the timing of settlements with the relevant tax authorities, if any, can not be made. 27 The Company has $88.0 million of medium term notes, $2.6 million of unsecured notes payable and $35.2 million of mortgage debt scheduled to mature in 2011. The Company anticipates satisfying these maturities with a combination of operating cash flows, its unsecured revolving credit facilities, refinancing of debt and new debt issuances, when available. The Company has issued letters of credit in connection with completion and repayment guarantees for construction loans encumber- ing certain of the Company’s ground-up development projects and guarantee of payment related to the Company’s insurance program. These letters of credit aggregate approximately $23.7 million. During August 2009, the Company was obligated to issue a letter of credit for approximately CAD $66.0 million (approximately USD $64.0 million) relating to a tax assessment dispute with the Canada Revenue Agency (“CRA”). The letter of credit had been issued under the Company’s CAD $250 million credit facility referred to above. The dispute was in regard to three of the Company’s wholly-owned subsidiaries which hold a 50% co-ownership interest in Canadian real estate. Applicable Canadian law requires that a non-resident corporation post sufficient collateral to cover a claim for taxes assessed. As such, the Company issued its letter of credit as required by the governing law. During November 2010, the Company was released from this tax assessment and as a result the letter of credit was returned to the Company. The Company holds a 15% noncontrolling ownership interest in each of three joint ventures, with three separate accounts man- aged by Prudential Real Estate Investors (“PREI”), collectively, KimPru. KimPru had a term loan facility which bore interest at a rate of LIBOR plus 1.25% and was scheduled to mature in August 2010. This facility was guaranteed by the Company with a guarantee from PREI to the Company for 85% of any guaranty payment the Company was obligated to make. During July 2010, KimPru fully repaid the $287.5 million outstanding balance on this facility primarily from capital contributions provided by the partners, at their respective ownership percentages of 85% from PREI and 15% from the Company. On a select basis, the Company provides guarantees on interest bearing debt held within real estate joint ventures in which the Company has noncontrolling ownership interests. The Company is often provided with a back-stop guarantee from its partners. The Company had the following outstanding guarantees as of December 31, 2010 (amounts in millions): Name of Joint Venture InTown Suites Management, Inc. Willowick Factoria Mall RioCan Cherokee Towson Hillsborough Derby(2) Sequoia East Northport Amount of Guarantee $ 147.5 $ 24.5 $ 52.3 $ 4.4 $ 45.1 $ 10.0 $ 3.1 $ 11.0 $ 5.8 $ 3.2 Interest rate LIBOR plus 0.375%(1) LIBOR plus 1.50% LIBOR plus 4.00% Prime plus 2.25% Floating Prime plus 1.9% LIBOR plus 3.50% LIBOR plus 1.50% LIBOR plus 2.75% LIBOR plus 0.75% LIBOR plus 1.50% Maturity, with extensions 2012 2012 2012 2011 2011 2014 2012 2011 2012 2012 Terms Type of debt 25% partner back-stop Unsecured credit facility 15% partner back-stop Unsecured credit facility Jointly and severally with partner Mortgage loan Jointly with 50% partner Letter of credit facility 50% partner back-stop Construction loan Jointly and severally with partner Mortgage loan Jointly and severally with partner Promissory note Jointly and severally with partner Promissory note Jointly and severally with partner Promissory note Jointly and severally with partner Promissory note (1) The joint venture obtained an interest rate swap at 5.37% on $128.0 million of this debt. The swap is designated as a cash flow hedge and is deemed highly effective; as such, adjustments to the swaps fair value are recorded at the joint venture level in other comprehensive income. (2) Subsequent to December 31, 2010, this property was sold to a third party, as such, the debt was repaid and the Company was relieved of this guarantee. In connection with the construction of its development projects and related infrastructure, certain public agencies require posting of performance and surety bonds to guarantee that the Company’s obligations are satisfied. These bonds expire upon the completion of the improvements and infrastructure. As of December 31, 2010, the Company had approximately $45.3 million in performance and surety bonds outstanding. OFF-BALANCE SHEET ARRANGEMENTS Unconsolidated Real Estate Joint Ventures The Company has investments in various unconsolidated real estate joint ventures with varying structures. These joint ventures primarily operate either shopping center properties or are established for development projects. Such arrangements are generally with third-party institutional investors, local developers and individuals. The properties owned by the joint ventures are primarily financed with individual non-recourse mortgage loans, however, the Company, on a selective basis, obtains unsecured financing for certain joint ventures. These unsecured financings are guaranteed by the Company with guarantees from the joint venture partners for their proportionate amounts of any guaranty payment the Company is obligated to make (see guarantee table above). Non-recourse 28 mortgage debt is generally defined as debt whereby the lenders’ sole recourse with respect to borrower defaults is limited to the value of the property collateralized by the mortgage. The lender generally does not have recourse against any other assets owned by the borrower or any of the constituent members of the borrower, except for certain specified exceptions listed in the particular loan documents (See Note 8 of the Notes to Consolidated Financial Statements included in this annual report on Form 10-K). These invest- ments include the following joint ventures: Venture KimPru(c) RioCan venture(k) KIR(d) KUBS(e) InTown Suites(j) BIG Shopping Centers(f) SEB Immobilien(h) CPP(g) Kimco Income Fund(i) Kimco Ownership Interest Number of Properties Total GLA (in thousands) Non-Recourse Mortgage Payable (in millions) Recourse Notes Payable (in millions) Number of Encumbered Properties Average Interest Rate Weighted Average Term (months) 15.0%(a) 50.00% 45.00% 17.9%(a) (l) 36.50% 15.00% 55.00% 15.20% 65 45 59 43 138 22 11 5 12 11,339 9,287 12,593 6,260 N/A 3,508 1,473 2,137 1,534 $ 1,388.00 $ 968.50 $ 954.70 $ 733.60 $ 480.50 $ 407.20 $ 193.50 $ 168.70 $ 167.80 $ — $ — $ — $ — $ 147.5(b) $ — $ — $ — $ — 59 45 50 43 135 17 10 3 12 5.56% 5.84% 6.54% 5.70% 5.19% 5.47% 5.67% 4.45% 5.45% 59.8 52.0 53.1 54.8 46.8 72.5 71.4 39.3 44.7 (a) Ownership % is a blended rate. (b) See Contractual Obligations and Other Commitments regarding guarantees by the Company and its joint venture partners. (c) Represents the Company’s joint ventures with Prudential Real Estate Investors. (d) Represents the Kimco Income Operating Partnership, L.P., formed in 1998. (e) Represents the Company’s joint ventures with UBS Wealth Management North American Property Fund Limited. (f ) Represents the Company’s joint ventures with BIG Shopping Centers (TLV:BIG), an Israeli public company. (g) Represents the Company’s joint ventures with Canadian Pension Plan Investment Board (CPPIB) (h) Represents the Company’s joint ventures with SEB Immobilien Investment GmbH. (i) Represents the Kimco Income Fund, formed in 2004. (j) Represents the Company’s joint ventures with Westmont Hospitality Group. (k) Represents the Company’s joint ventures with RioCan Real Estate Investment Trust. (l) The Company’s share of this investment is subject to fluctuation and is dependent upon property cash flows. The Company has various other unconsolidated real estate joint ventures with varying structures. As of December 31, 2010, these other unconsolidated joint ventures had individual non-recourse mortgage loans aggregating approximately $2.3 billion and unsecured notes payable aggregating approximately $41.8 million. The aggregate debt as of December 31, 2010 of all of the Company’s unconsoli- dated real estate joint ventures is approximately $8.0 billion, of which the Company’s share of this debt was approximately $3.0 billion. These loans have scheduled maturities ranging from one month to 24 years and bear interest at rates ranging from 1.01% to 10.50% at December 31, 2010. Approximately $685.2 million of the outstanding loan balance matures in 2011, of which the Company’s share is approximately $252.9 million. These maturing loans are anticipated to be repaid with operating cash flows, debt refinancing and partner capital contributions, as deemed appropriate. (See Note 8 of the Notes to Consolidated Financial Statements included in this annual report on Form 10-K.) Other Real Estate Investments The Company previously provided capital to owners and developers of real estate properties through its Preferred Equity pro- gram. The Company accounts for its preferred equity investments under the equity method of accounting. As of December 31, 2010, the Company’s net investment under the Preferred Equity Program was approximately $275.4 million relating to 171 properties. As of December 31, 2010, these preferred equity investment properties had individual non-recourse mortgage loans aggregating approxi- mately $1.2 billion. Due to the Company’s preferred position in these investments, the Company’s share of each investment is subject to fluctuation and is dependent upon property cash flows. The Company’s maximum exposure to losses associated with its preferred equity investments is primarily limited to its invested capital. Additionally, during July 2007, the Company invested approximately $81.7 million of preferred equity capital in a portfolio comprised of 403 net leased properties which are divided into 30 master leased pools with each pool leased to individual corporate operators. These properties consist of a diverse array of free-standing restaurants, fast food restaurants, convenience and auto parts stores. As of December 31, 2010, these properties were encumbered by third party loans aggregating approximately $403.2 million with interest rates ranging from 5.08% to 10.47% with a weighted average interest rate of 9.3% and maturities ranging from one year to 11 years. During June 2002, the Company acquired a 90% equity participation interest in an existing leveraged lease of 30 properties. The properties are leased under a long-term bond-type net lease whose primary term expires in 2016, with the lessee having certain renewal option rights. The Company’s cash equity investment was approximately $4.0 million. This equity investment is reported as 29 a net investment in leveraged lease in accordance with the FASB’s Lease guidance. The net investment in leveraged lease reflects the original cash investment adjusted by remaining net rentals, estimated unguaranteed residual value, unearned and deferred income and deferred taxes relating to the investment. As of December 31, 2010, 18 of these leveraged lease properties were sold, whereby the proceeds from the sales were used to pay down the mortgage debt by approximately $31.2 million. As of December 31, 2010, the remaining 12 properties were encumbered by third-party non-recourse debt of approximately $33.4 million that is scheduled to fully amortize during the primary term of the lease from a portion of the periodic net rents receivable under the net lease. As an equity participant in the leveraged lease, the Company has no recourse obligation for principal or interest payments on the debt, which is collateralized by a first mortgage lien on the properties and collateral assignment of the lease. Accordingly, this debt has been offset against the related net rental receivable under the lease. EFFECTS OF INFLATION Many of the Company’s leases contain provisions designed to mitigate the adverse impact of inflation. Such provisions include clauses enabling the Company to receive payment of additional rent calculated as a percentage of tenants’ gross sales above pre-determined thresholds, which generally increase as prices rise, and/or escalation clauses, which generally increase rental rates during the terms of the leases. Such escalation clauses often include increases based upon changes in the consumer price index or similar inflation indices. In addition, many of the Company’s leases are for terms of less than 10 years, which permits the Company to seek to increase rents to market rates upon renewal. Most of the Company’s leases require the tenant to pay an allocable share of operating expenses, including common area maintenance costs, real estate taxes and insurance, thereby reducing the Company’s exposure to increases in costs and operating expenses resulting from inflation. The Company periodically evaluates its exposure to short-term interest rates and foreign currency exchange rates and will, from time-to-time, enter into interest rate protection agreements and/or foreign currency hedge agreements which mitigate, but do not eliminate, the effect of changes in interest rates on its floating-rate debt and fluctuations in foreign currency exchange rates. MARKET AND ECONOMIC CONDITIONS; REAL ESTATE AND RETAIL SHOPPING SECTOR In the U.S., economic and market conditions have stabilized. Credit conditions have continued to improve from the prior year with increased access and availability to secured mortgage debt and the unsecured bond and equity markets. However, there remains concern over high unemployment rates and an uncertain economic recovery in Europe. These conditions have contributed to slow growth in the U.S. and international economies. Historically, real estate has been subject to a wide range of cyclical economic conditions that affect various real estate markets and geographic regions with differing intensities and at different times. Different regions of the United States have and may continue to experience varying degrees of economic growth or distress. Adverse changes in general or local economic conditions could result in the inability of some tenants of the Company to meet their lease obligations and could otherwise adversely affect the Company’s ability to attract or retain tenants. The Company’s shopping centers are typically anchored by two or more national tenants who generally offer day-to-day necessities, rather than high-priced luxury items. In addition, the Company seeks to reduce its operating and leasing risks through ownership of a portfolio of properties with a diverse geographic and tenant base. The Company monitors potential credit issues of its tenants, and analyzes the possible effects to the financial statements of the Company and its unconsolidated joint ventures. In addition to the collectability assessment of outstanding accounts receivable, the Company evaluates the related real estate for recoverability as well as any tenant related deferred charges for recoverability, which may include straight-line rents, deferred lease costs, tenant improvements, tenant inducements and intangible assets. The retail shopping sector has been negatively affected by recent economic conditions, particularly in the Western United States (primarily California). These conditions may result in the Company’s tenants delaying lease commencements or declining to extend or renew leases upon expiration. These conditions also have forced some weaker retailers, in some cases, to declare bankruptcy and/or close stores. Certain retailers have announced store closings even though they have not filed for bankruptcy protection. However, any of these particular store closings affecting the Company often represent a small percentage of the Company’s overall gross leasable area and the Company does not currently expect store closings to have a material adverse effect on the Company’s overall performance. NEW ACCOUNTING PRONOUNCEMENTS See Footnote 1 of the Company’s Consolidated Financial Statements included in this annual report on Form 10-K. ITEM 7A. qUANTITATIVE AND qUALITATIVE DISCLOSURES ABOUT MARKET RISK The Company’s primary market risk exposure is interest rate risk. The following table presents the Company’s aggregate fixed rate and variable rate domestic and foreign debt obligations outstanding as of December 31, 2010, with corresponding weighted-average 30 interest rates sorted by maturity date. The table does not include extension options where available. Amounts include fair value purchase price allocation adjustments for assumed debt. The information is presented in U.S. dollar equivalents, which is the Company’s reporting currency. The instruments’ actual cash flows are denominated in U.S. dollars, Canadian dollars (CAD), Chilean Pesos (CLP) and Mexican pesos (MXP) as indicated by geographic description ($USD equivalent in millions). 2011 2012 2013 2014 2015 Thereafter Total Fair value U.S. Dollar Denominated Secured Debt Fixed Rate $ 8.3 $ 125.2 $ 79.9 $ 199.0 $ 62.4 $ 457.1 $ 931.9 $ 1,000.5 Average Interest Rate 6.56% 6.25% 6.19% 6.44% 4.91% 6.46% 6.30% variable Rate $ 27.0 $ 75.5 $ 2.9 $ 20.9 $ 5.9 $ — $ 132.2 $ 138.2 Average Interest Rate 3.09% 3.94% 5.00% 2.17% 0.26% 0.00% 3.35% Unsecured Debt Fixed Rate $ 88.0 $ 215.9 $ 275.8 $ 295.2 $ 350.0 $ 1,190.9 $ 2,415.8 $ 2,571.1 Average Interest Rate 4.82% 6.00% 5.41% 5.22% 5.29% 5.66% 5.53% variable Rate $ 2.6 $ 132.4 $ — $ — $ — $ — $ 135.0 $ 134.5 Average Interest Rate 5.25% 1.02% 0.00% 0.00% 0.00% 0.00% 1.10% CAD Denominated Unsecured Debt Fixed Rate $ — $ — $ 200.4 $ — $ — $ 150.3 $ 350.7 $ 375.3 Average Interest Rate 0.00% 0.00% 5.18% 0.00% 0.00% 5.99% 5.53% MXP Denominated Unsecured Debt Fixed Rate $ — $ — $ 80.9 $ — $ — $ — $ 80.9 $ 81.3 Average Interest Rate 0.00% 0.00% 8.58% 0.00% 0.00% 0.00% 8.58% CLP Denominated Secured Debt variable Rate $ — $ — $ — $ — $ — $ 12.5 $ 12.5 $ 14.3 Average Interest Rate 0.00% 0.00% 0.00% 0.00% 0.00% 5.79% 5.79% Based on the Company’s variable-rate debt balances, interest expense would have increased by approximately $2.8 million in 2010 if short-term interest rates were 1.0% higher. The following table presents the Company’s foreign investments as of December 31, 2010. Investment amounts are shown in their respective local currencies and the U.S. dollar equivalents: Foreign Investment (in millions) Country Mexican real estate investments (MXP) Canadian real estate joint venture and marketable securities investments (CAD) Australian marketable securities investments (Australian Dollar) Chilean real estate investments (CLP) Brazilian real estate investments (Brazilian Real) Peruvian real estate investments (Peruvian Nuevo Sol) Local Currency US Dollars 8,715.0 391.6 196.0 18,178.1 55.7 7.1 $ 705.7 $ 392.5 $ 182.3 $ 27.7 $ 33.4 $ 2.5 The foreign currency exchange risk has been partially mitigated, but not eliminated, through the use of local currency denominated debt. The Company has not, and does not plan to, enter into any derivative financial instruments for trading or speculative purposes. As of December 31, 2010, the Company has no other material exposure to market risk. 31 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The response to this Item 8 is included in our audited Notes to Consolidated Financial Statements, which are contained in a separate section of this annual report on Form 10-K. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. ITEM 9A. CONTROLS AND PROCEDURES EvALUATION OF DISCLOSURE CONTROLS AND PROCEDURES The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evalu- ated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective. CHANGES IN INTERNAL CONTROL OvER FINANCIAL REPORTING There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth fiscal quarter ended December 31, 2010 to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. MANAGEMENT’S REPORT ON INTERNAL CONTROL OvER FINANCIAL REPORTING Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f) and 15d-15(f). Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation under the framework in Internal Control—Integrated Framework, our management concluded that our internal control over financial reporting was effective as of December 31, 2010. The effectiveness of our internal control over financial reporting as of December 31, 2010, has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which is included herein. ITEM 9B. OTHER INFORMATION None. 32 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE The information required by this item is incorporated by reference to “Proposal 1—Election of Directors,” “Corporate Governance,” “Committees of the Board of Directors” and “Section 16(a) Beneficial Ownership Reporting Compliance” in our Proxy Statement. ITEM 11. EXECUTIVE COMPENSATION The information required by this item is incorporated by reference to “Compensation Discussion and Analysis,” “Executive Compensation Committee Report,” “Compensation Tables” and “Compensation of Directors” in our Proxy Statement. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS The information required by this item is incorporated by reference to “Security Ownership of Certain Beneficial Owners and Management” and “Compensation Tables” in our Proxy Statement. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE The information required by this item is incorporated by reference to “Certain Relationships and Related Transactions” and “Corporate Governance” in our Proxy Statement. ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES The information required by this item is incorporated by reference to “Independent Registered Public Accountants” in our Proxy Statement. 33 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES PART IV 1. Financial Statements— The following consolidated financial information is included as a separate section of this annual report on Form 10-K. Report of Independent Registered Public Accounting Firm CONSOLIDATED FINANCIAL STATEMENTS Consolidated Balance Sheets as of December 31, 2010 and 2009 Consolidated Statements of Operations for the years ended December 31, 2010, 2009 and 2008 Consolidated Statements of Comprehensive Income for the years ended December 31, 2010, 2009 and 2008 Consolidated Statements of Changes in Equity for the years ended December 31, 2010, 2009 and 2008 Consolidated Statements of Cash Flows for the years ended December 31, 2010, 2009 and 2008 Notes to Consolidated Financial Statements 2. Financial Statement Schedules— Schedule II—valuation and Qualifying Accounts Schedule III—Real Estate and Accumulated Depreciation Schedule Iv—Mortgage Loans on Real Estate All other schedules are omitted since the required information is not present or is not present in amounts sufficient to require submission of the schedule. 3. Exhibits— The exhibits listed on the accompanying Index to Exhibits are filed as part of this report. Form 10-K Report Page 39 40 41 42 43 44 45 93 94 108 35 34 3.2 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 Exhibit Number Exhibit Description Form File No. Date of Filing Exhibit Number Filed Herewith Page Number INDEX TO EXHIBITS Incorporated by Reference 3.1(a) Articles of Restatement of the Company, dated January 14, 2011 3.1(b) Articles Supplementary of the Company dated November 8, 2010 Amended and Restated By-laws of the Company, dated February 25, 2009 Agreement of the Company pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K Form of Certificate of Designations for the Preferred Stock Indenture dated September 1, 1993, between Kimco Realty Corporation and Bank of New York (as successor to IBJ Schroder Bank and Trust Company) First Supplemental Indenture, dated as of August 4, 1994 Second Supplemental Indenture, dated as of April 7, 1995 Indenture dated April 1, 2005, between Kimco North Trust III, Kimco Realty Corporation, as guarantor and BNY Trust Company of Canada, as trustee Third Supplemental Indenture, dated as of June 2, 2006 Fifth Supplemental Indenture, dated as of October 31, 2006, among Kimco Realty Corporation, Pan Pacific Retail Properties, Inc. and Bank of New York Trust Company, N.A., as trustee First Supplemental Indenture, dated as of October 31, 2006, among Kimco Realty Corporation, Pan Pacific Retail Properties, Inc. and Bank of New York Trust Company, N.A., as trustee First Supplemental Indenture, dated as of June 2, 2006, among Kimco North Trust III, Kimco Realty Corporation, as guarantor and BNY Trust Company of Canada, as trustee Second Supplemental Indenture, dated as of August 16, 2006, among Kimco North Trust III, Kimco Realty Corporation, as guarantor and BNY Trust Company of Canada, as trustee Fifth Supplemental Indenture, dated September 24, 2009, between Kimco Realty Corporation and The Bank of New York Mellon, as trustee Amended and Restated Stock Option Plan $1.5 Billion Credit Agreement, dated as of October 25, 2007, among Kimco Realty Corporation and each of the parties named therein Employment Agreement between Kimco Realty Corporation and David B. Henry, dated March 8, 2007 CAD $250,000,000 Amended and Restated Credit Facility, dated January 11, 2008, with Royal Bank of Canada as issuing lender and administrative agent and various lenders * * — — 10-K S-11 S-3 S-3 10-K 8-K 8-K 8-K 8-K — — — — 1-10899 02/27/09 333-42588 09/11/91 333-67552 09/10/93 333-67552 09/10/93 1-10899 03/28/96 1-10899 04/07/95 1-10899 04/25/05 1-10899 06/05/06 1-10899 11/03/06 — — 3.2 4.1 4(d) 4(a) 4.6 4(a) 4.1 4.1 4.1 8-K 1-10899 11/03/06 4.2 10-K 1-10899 02/28/07 4.12 10-K 1-10899 02/28/07 4.13 8-K 1-10899 09/24/09 4.1 10-K 1-10899 03/28/95 10-K/A 1-10899 08/17/10 10.3 10.6 8-K 1-10899 03/21/07 10.1 10-K 1-10899 02/28/08 10.25 Second Amended and Restated 1998 Equity Participation Plan of Kimco Realty Corporation (restated February 25, 2009) 10-K 1-10899 02/27/09 10.9 Employment Agreement between Kimco Realty Corporation and Michael v. Pappagallo, dated November 3, 2008 Amendment to Employment Agreement between Kimco Realty Corporation and David B. Henry, dated December 17, 2008 Amendment to Employment Agreement between Kimco Realty Corporation and Michael v. Pappagallo, dated December 17, 2008 8-K 8-K 8-K 1-10899 11/10/08 10.1 1-10899 01/07/09 10.1 1-10899 01/07/09 10.2 Form of Indemnification Agreement Employment Agreement between Kimco Realty Corporation and Glenn G. Cohen, dated February 25, 2009 10-K 10-K 1-10899 02/27/09 1-10899 02/27/09 10.16 10.17 35 Exhibit Number 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 12.1 12.2 21.1 23.1 31.1 31.2 32.1 Exhibit Description Form File No. Date of Filing Exhibit Number Filed Herewith Page Number Incorporated by Reference $650 Million Credit Agreement, dated as of August 26, 2008, among PK Sale LLC, as borrower, PRK Holdings I LLC, PRK Holdings II LLC and PK Holdings III LLC, as guarantors, Kimco Realty Corporation as guarantor and each of the parties named therein 1 billion MXP Credit Agreement, dated as of March 3, 2008, among KRC Mexico Acquisition, LLC, as borrower, Kimco Realty Corporation, as guaran- tor and each of the parties named therein Second Amendment to Employment Agreement between Kimco Realty Corporation and David B. Henry, dated March 15, 2010 Second Amendment to Employment Agreement between Kimco Realty Corporation and Michael v. Pappagallo, dated March 15, 2010 Amendment to Employment Agreement between Kimco Realty Corporation and Glenn G. Cohen, dated March 15, 2010 Kimco Realty Corporation Executive Severance Plan, dated March 15, 2010 Letter Agreement between Kimco Realty Corporation and David B. Henry, dated March 15, 2010 Kimco Realty Corporation 2010 Equity Participation Plan Form of Performance Share Award Grant Notice and Performance Share Award Agreement Underwriting Agreement, dated April 6, 2010, by and among Kimco Realty Corporation, Kimco North Trust III, and each of the parties named therein Third Supplemental Indenture, dated as of April 13, 2010, among Kimco Realty Corporation, as guarantor, Kimco North Trust III, as issuer and BNY Trust Company of Canada, as trustee Credit Agreement, dated as of April 17, 2009, among Kimco Realty Corporation and each of the parties named therein 10-K/A 1-10899 08/17/10 10.17 10-K/A 1-10899 08/17/10 10.18 8-K 8-K 8-K 8-K 8-K 8-K 8-K 1-10899 03/19/10 10.1 1-10899 03/19/10 10.3 1-10899 03/19/10 10.4 1-10899 03/19/10 1-10899 03/19/10 1-10899 03/19/10 1-10899 03/19/10 10.5 10.6 10.7 10.8 10-Q 1-10899 05/07/10 99.1 10-Q 1-10899 05/07/10 99.2 10-K/A 1-10899 08/17/10 10.19 Underwriting Agreement, dated August 23, 2010, by and among Kimco Realty Corporation and each of the parties named therein 8-K 1-10899 08/24/10 1.1 Computation of Ratio of Earnings to Fixed Charges Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends Subsidiaries of the Company Consent of PricewaterhouseCoopers LLP Certification of the Company’s Chief Executive Officer, David B. Henry, pur- suant to Section 302 of the Sarbanes-Oxley Act of 2002 Certification of the Company’s Chief Financial Officer, Glenn G. Cohen, pur- suant to Section 302 of the Sarbanes-Oxley Act of 2002 Certification of the Company’s Chief Executive Officer, David B. Henry, and the Company’s Chief Financial Officer, Glenn G. Cohen, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 99.1 Property Chart 101.INS XBRL Instance Document 101.SCH XBRL Taxonomy Extension Schema 101.CAL XBRL Taxonomy Extension Calculation Linkbase 101.DEF XBRL Taxonomy Extension Definition Linkbase 101.LAB XBRL Taxonomy Extension Label Linkbase 101.PRE XBRL Taxonomy Extension Presentation Linkbase 109 110 111 112 113 114 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — × × * * × × × × * * * * * * * Incorporated by reference to the corresponding Exhibit to the Company’s annual report on Form 10-K filed on February 28, 2011. 36 Pursuant to the requirements o1f Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SIGNATURES KIMCO REALTY CORPORATION By: /s/ David B. Henry David B. Henry Chief Executive Officer Dated: February 25, 2011 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated. Signature /s/ Milton Cooper Milton Cooper /s/ David B. Henry David B. Henry /s/ Richard G. Dooley Richard G. Dooley /s/ Joe Grills Joe Grills /s/ F. Patrick Hughes F. Patrick Hughes /s/ Frank Lourenso Frank Lourenso /s/ Richard Saltzman Richard Saltzman /s/ Philip Coviello Philip Coviello /s/ Michael v. Pappagallo Michael v. Pappagallo /s/ Glenn G. Cohen Glenn G. Cohen Title Date Executive Chairman of the Board of Directors February 25, 2011 Chief Executive Officer and vice Chairman of the Board of Directors February 25, 2011 Director Director Director Director Director Director February 25, 2011 February 25, 2011 February 25, 2011 February 25, 2011 February 25, 2011 February 25, 2011 Executive vice President - Chief Operating Officer February 25, 2011 Executive vice President - Chief Financial Officer and Treasurer February 25, 2011 37 ANNUAL REPORT ON FORM 10-K ITEM 8, ITEM 15 (a) (1) and (2) INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES KIMCO REALTY CORPORATION AND SUBSIDIARIES Report of Independent Registered Public Accounting Firm Consolidated Financial Statements and Financial Statement Schedules: Consolidated Balance Sheets as of December 31, 2010 and 2009 Consolidated Statements of Operations for the years ended December 31, 2010, 2009 and 2008 Consolidated Statements of Comprehensive Income for the years ended December 31, 2010, 2009 and 2008 Consolidated Statements of Changes in Equity for the years ended December 31, 2010, 2009 and 2008 Consolidated Statements of Cash Flows for the years ended December 31, 2010, 2009 and 2008 Notes to Consolidated Financial Statements Financial Statement Schedules: II. III. valuation and Qualifying Accounts Real Estate and Accumulated Depreciation Iv. Mortgage Loans on Real Estate Form 10-K Page 39 40 41 42 43 44 45 93 94 108 38 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Kimco Realty Corporation: In our opinion, the consolidated financial statements listed in the index appearing under Item 15(a)(1) present fairly, in all material respects, the financial position of Kimco Realty Corporation and its subsidiaries (collectively, the “Company”) at December 31, 2010 and 2009, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2010 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedules listed in the index appearing under Item 15(a)(2) present fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company’s management is responsible for these financial statements and financial statement schedules, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control Over Financial Reporting under Item 9A. Our responsibility is to express opinions on these financial statements, on the financial statement schedules, and on the Company’s internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reli- ability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i)pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii)provide reasonable assurance regarding preven- tion or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projec- tions of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ PricewaterhouseCoopers LLP New York, New York February 28, 2011 39 KIMCO REALTY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share information) Assets: Real Estate Rental property Land Building and improvements Less, accumulated depreciation and amortization Real estate under development Real estate, net Investments and advances in real estate joint ventures Other real estate investments Mortgages and other financing receivables Cash and cash equivalents Marketable securities Accounts and notes receivable Deferred charges and prepaid expenses Other assets Total assets Liabilities & Stockholders’ Equity: Notes payable Mortgages payable Construction loans payable Accounts payable and accrued expenses Dividends payable Other liabilities Total liabilities Redeemable noncontrolling interests Commitments and contingencies Stockholders’ equity: Preferred Stock, $1.00 par value, authorized 3,092,000 and 3,232,000 shares, respectively Class F Preferred Stock, $1.00 par value, authorized 700,000 shares Issued and outstanding 700,000 shares Aggregate liquidation preference $175,000 Class G Preferred Stock, $1.00 par value, authorized 184,000 shares Issued and outstanding 184,000 shares Aggregate liquidation preference $460,000 Class H Preferred Stock, $1.00 par value, authorized 70,000 shares Issued and outstanding 70,000 shares Aggregate liquidation preference $175,000 Common stock, $.01 par value, authorized 750,000,000 shares Issued and outstanding 406,423,514, and 405,532,566, shares, respectively. Paid-in capital Cumulative distributions in excess of net income Accumulated other comprehensive income Total stockholders’ equity Noncontrolling interests Total equity Total liabilities and equity The accompanying notes are an integral part of these consolidated financial statements. 40 December 31, 2010 December 31, 2009 $ 1,837,348 $ 1,937,428 6,420,405 8,257,753 6,479,128 8,416,556 (1,549,380) (1,343,148) 6,708,373 335,007 7,043,380 1,382,749 418,564 108,493 125,154 223,991 130,536 147,048 253,960 7,073,408 465,785 7,539,193 1,103,625 553,244 131,332 122,058 209,593 113,610 160,995 249,429 $ 9,833,875 $ 10,183,079 $ 2,982,421 $ 3,000,303 1,046,313 1,388,259 30,253 154,482 89,037 275,023 4,577,529 95,060 45,821 142,670 76,707 311,037 4,964,797 100,304 700 184 70 4,064 5,469,841 (515,164) 4,959,695 (23,853) 4,935,842 225,444 5,161,286 700 184 — 4,055 5,283,204 (338,738) 4,949,405 (96,432) 4,852,973 265,005 5,117,978 $ 9,833,875 $ 10,183,079 KIMCO REALTY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Revenues from rental property Rental property expenses: Rent Real estate taxes Operating and maintenance Impairment of property carrying values Mortgage and other financing income Management and other fee income Depreciation and amortization General and administrative expenses Interest, dividends and other investment income Other (expense)/income, net Interest expense Early extinguishment of debt charges Income from other real estate investments Gain on sale of development properties Impairments: Real estate under development Investments in other real estate investments Marketable securities and other investments Investments in real estate joint ventures Income/(loss) from continuing operations before income taxes and equity in income of joint ventures (Provision)/benefit for income taxes, net Equity in income of joint ventures, net Income from continuing operations Discontinued operations: Income from discontinued operating properties, net of tax Loss/impairments on operating properties held for sale/sold, net of tax Gain on disposition of operating properties, net of tax Income/(loss) from discontinued operations, net of tax (Loss)/gain on transfer of operating properties Gain on sale of operating properties Total net gain on transfer or sale of operating properties Net income Net income attributable to noncontrolling interests Net income/(loss) attributable to the Company Preferred stock dividends Net income/(loss) available to common shareholders Per common share: Income/(loss) from continuing operations: —Basic —Diluted Net income/(loss) attributable to the Company: —Basic —Diluted Weighted average shares: —Basic —Diluted Amounts attributable to the Company’s common shareholders: Income/(loss) from continuing operations, net of tax Income/(loss) from discontinued operations Net Income/(loss) The accompanying notes are an integral part of these consolidated financial statements. Year EnÇded December 31, 2010 2009 2008 $ 849,549 $ 773,423 $ 751,196 (14,076) (13,874) (116,288) (110,432) (13,147) (96,856) (122,584) (108,518) (103,761) (3,502) (36,700) 9,405 39,922 14,956 42,452 - 18,333 47,627 (238,474) (226,608) (204,809) (109,201) (108,043) (114,941) 21,256 (4,277) 33,098 5,577 56,119 389 (226,388) (208,018) (212,198) (10,811) 43,345 2,130 (11,700) (13,442) (5,266) — 89,598 (3,415) 55,705 141,888 20,379 (4,925) 1,932 17,386 (57) 2,434 2,377 161,651 — 36,180 5,751 (2,100) (49,279) (30,050) (43,658) (25,843) 30,144 6,309 10,610 4,604 (13,441) 421 (8,416) 26 3,841 3,867 6,061 — 87,621 36,565 (13,613) - (118,416) (15,500) 104,609 11,645 132,208 248,462 6,740 (598) 20,018 26,160 1,195 587 1,782 276,404 (18,783) (10,003) (26,502) 142,868 (3,942) 249,902 (51,346) (47,288) (47,288) $ 91,522 $ (51,230) $ 202,614 $ $ $ $ 0.19 0.19 0.22 0.22 $ $ $ $ (0.12) (0.12) (0.15) (0.15) $ $ $ $ 0.69 0.69 0.79 0.78 405,827 406,201 350,077 350,077 257,811 258,843 $ 79,072 $ (42,655) $ 177,760 12,450 (8,575) 24,854 $ 91,522 $ (51,230) $ 202,614 41 KIMCO REALTY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) Net income Other comprehensive income: Change in unrealized gain/(loss) on marketable securities Change in unrealized loss on interest rate swaps Change in foreign currency translation adjustment Other comprehensive income/(loss) Comprehensive income Comprehensive (income)/loss attributable to noncontrolling interests Comprehensive income attributable to the Company The accompanying notes are an integral part of these consolidated financial statements. Year Ended December 31, 2010 2009 2008 $ 161,651 $ 6,061 $ 276,404 37,006 43,662 (71,535 ) (420) (233) (170 ) 52,849 20,658 (149,836 ) 89,435 64,087 (221,541 ) 251,086 70,148 54,863 (35,639) 9,019 (17,801 ) $ 215,447 $ 79,167 $ 37,062 42 KIMCO REALTY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EqUITY For the Years Ended December 31, 2010, 2009 and 2008 (in thousands) Balance, January 1, 2008 Contributions from non controlling interests Comprehensive income: Net income Other comprehensive income, net of tax: Change in unrealized loss on marketable securities Change in unrealized loss on interest rate swaps Change in foreign currency translation adjustment Comprehensive income Redeemable noncontrolling interest Dividends ($1.64 per common share; $1.6625 per Class F Depositary Share, and $1.9375 per Class G Depositary Share, respectively) Distributions to noncontrolling interests Unit redemptions Issuance of units Issuance of common stock Exercise of common stock options Amortization of equity awards Balance, December 31, 2008 Contributions from noncontrolling interests Comprehensive income: Net (loss)/income Other comprehensive income, net of tax: Change in unrealized gain on marketable securities Change in unrealized loss on interest rate swaps Change in foreign currency translation adjustment Comprehensive income Redeemable noncontrolling interest Dividends ($0.72 per common share; $1.6625 per Class F Depositary Share, and $1.9375 per Class G Depositary Share, respectively) Distributions to noncontrolling interests Issuance of units Unit redemptions Issuance of common stock Exercise of common stock options Transfers from noncontrolling interests Amortization of equity awards Balance, December 31, 2009 Contributions from noncontrolling interests Comprehensive income: Net income Other comprehensive income, net of tax: Change in unrealized gain on marketable securities Change in unrealized loss on interest rate swaps Change in foreign currency translation adjustment Comprehensive income Redeemable noncontrolling interests Dividends ($0.66 per common share; $1.6625 per Class F Depositary Share, $1.9375 per Class G Depositary share and $0.5798 per Class H Depositary share, respectively) Retained Earnings/ (Cumulative Distributions in Excess of Net Income) $ 180,005 — Accumulated Other Comprehensive Income $ 33,299 — Preferred Stock $ 884 — Paid-in Capital Common Stock $ 2,528 $ 3,677,509 — — Total Stockholders’ Equity $ 3,894,225 — Noncontrolling Interest $ 274,916 92,490 Total Equity $ 4,169,141 92,490 Comprehensive Income 249,902 — — — — — (488,069) — — — — — — (58,162) — (71,535) (170) (141,135) — — — — — — — — (179,541) — (3,942) — — — — — (276,634) — — — — — — (338,738) — 43,662 (233) 39,680 — — — — — — — — — (96,432) — 142,868 — — — — — 37,006 (420) 35,993 — — — — — — — — — — — — — 884 — — — — — — — — — — — — — — 884 — — — — — — — — — — — — — — — 164 19 — 2,711 — — — — — — — — — — 1,343 1 — — 4,055 — — — — — — — — — — — 249,902 26,502 276,404 $ 276,404 (71,535) (170) (141,135) — — (8,701) (71,535) (170) (149,836) (71,535) (170) (149,836) $ 54,863 — (7,906) (7,906) — - — — 486,709 41,330 12,258 4,217,806 — (488,069) — — — 486,873 41,349 12,258 3,983,698 — — (77,460) (80,000) 1,194 — — — 221,035 73,601 (488,069) (77,460) (80,000) 1,194 486,873 41,349 12,258 4,204,733 73,601 — — — — — (3,942) 10,003 6,061 $ 6,061 43,662 (233) 39,680 — — (19,022) 43,662 (233) 20,658 43,662 (233) 20,658 $ 70,148 — (6,429) (6,429) — — — — 1,064,919 1,234 (11,126) 10,371 5,283,204 — (276,634) — — — 1,066,262 1,235 (11,126) 10,371 4,852,973 — — (9,626) 126 (346) — — (4,337) — 265,005 2,721 (276,634) (9,626) 126 (346) 1,066,262 1,235 (15,463) 10,371 5,117,978 2,721 — — — — — 142,868 18,783 161,651 $ 161,651 37,006 (420) 35,993 — — 16,856 37,006 (420) 52,849 37,006 (420) 52,849 $ 251,086 — (6,500) (6,500) Distributions to noncontrolling interests Issuance of common stock Issuance of preferred stock Exercise of common stock options Acquisition of noncontrolling interests Amortization of equity awards Balance, December 31, 2010 The accompanying notes are an integral part of these consolidated financial statements. (319,294) — — — — — — $ (515,164) — — — — — — — $ (23,853) — — — 70 — — — $ 954 — — — — 3 4,426 — 169,114 8,561 6 (7,196) — 11,732 — $ 4,064 $ 5,469,841 (319,294) — 4,429 169,184 8,567 (7,196) 11,732 $ 4,935,842 — (64,658) — — — (6,763) — $ 225,444 (319,294) (64,658) 4,429 169,184 8,567 (13,959) 11,732 $ 5,161,286 43 KIMCO REALTY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Cash flow from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Loss on operating properties held for sale/sold/transferred Impairment charges Gain on sale of development properties Gain on sale/transfer of operating properties Equity in income of joint ventures, net Income from other real estate investments Distributions from joint ventures Cash retained from excess tax benefits Change in accounts and notes receivable Change in accounts payable and accrued expenses Change in other operating assets and liabilities Net cash flow provided by operating activities Cash flow from investing activities: Acquisition of and improvements to operating real estate Acquisition of and improvements to real estate under development Investment in marketable securities Proceeds from sale of marketable securities Proceeds from transferred operating/development properties Investments and advances to real estate joint ventures Reimbursements of advances to real estate joint ventures Other real estate investments Reimbursements of advances to other real estate investments Investment in mortgage loans receivable Collection of mortgage loans receivable Other investments Reimbursements of other investments Proceeds from sale of operating properties Proceeds from sale of development properties Net cash flow provided by (used for) investing activities Cash flow from financing activities: Principal payments on debt, excluding normal amortization of rental property debt Principal payments on rental property debt Principal payments on construction loan financings Proceeds from mortgage/construction loan financings Borrowings under revolving unsecured credit facilities Repayment of borrowings under unsecured revolving credit facilities Proceeds from issuance of unsecured term loan/notes Repayment of unsecured term loan/notes Financing origination costs Redemption of noncontrolling interests Dividends paid Cash retained from excess tax benefits Proceeds from issuance of stock Net cash flow (used for) provided by financing activities Change in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Interest paid during the period (net of capitalized interest of $14,730, $21,465, and $28,753, respectively) Income taxes paid during the period The accompanying notes are an integral part of these consolidated financial statements. 44 Year Ended December 31, 2010 2009 2008 $ 161,651 $ 6,061 $ 276,404 247,637 57 39,121 (2,130) (4,366) (55,705) (39,642) 162,860 (103) (17,388) 15,811 (27,868) 479,935 (182,482) (41,975) (9,041) 30,455 — (138,796) 85,205 (12,528) 30,861 (2,745) 27,587 (4,004) 8,792 238,746 7,829 227,776 285 175,087 (5,751) (4,666) (6,309) (30,039) 136,697 — (19,878) 4,101 (79,782) 403,582 206,518 598 147,529 (36,565) (21,800) (132,208) (79,099) 261,993 (1,958) (9,704) (1,983) (42,126) 567,599 (374,501) (143,283) (266,198) (388,991) — (263,985) 52,427 32,400 (219,913) 118,742 (77,455) 71,762 (68,908) 54,717 (25,466) 23,254 120,729 55,535 80,586 — (109,941) 99,573 (12,447) 18,232 (7,657) 48,403 (4,247) 4,935 34,825 22,286 37,904 (343,236) (781,350) (226,155) (23,645) (30,383) 13,960 42,390 (53,699) 449,720 (471,725) (5,330) (80,852) (306,964) 103 177,837 (514,743) 3,096 122,058 (437,710) (16,978) (255,512) 433,221 351,880 (928,572) 520,000 (428,701) (13,730) (31,783) (331,024) — 1,064,444 (74,465) (14,119) 136,177 (88,841) (14,047) (30,814) 76,025 812,329 (281,056) — (125,000) (3,300) (66,803) (469,024) 1,958 451,002 262,429 48,678 87,499 $ 125,154 $ 122,058 $ 136,177 $ 242,033 $ 204,672 $ 217,629 $ 2,596 $ 4,773 $ 29,652 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Amounts relating to the number of buildings, square footage, tenant and occupancy data, joint venture debt average interest rates and terms and estimated project costs are unaudited. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: BUSINESS Kimco Realty Corporation (the “Company” or “Kimco”), its subsidiaries, affiliates and related real estate joint ventures are engaged principally in the operation of neighborhood and community shopping centers which are anchored generally by discount department stores, supermarkets or drugstores. The Company also provides property management services for shopping centers owned by affili- ated entities, various real estate joint ventures and unaffiliated third parties. Additionally, in connection with the Tax Relief Extension Act of 1999 (the “RMA”), which became effective January 1, 2001, the Company is permitted to participate in activities which it was precluded from previously in order to maintain its qualification as a Real Estate Investment Trust (“REIT”), so long as these activities are conducted in entities which elect to be treated as taxable subsidiaries under the Internal Revenue Code, as amended (the “Code”), subject to certain limitations. As such, the Company, through its taxable REIT subsidiaries, has been engaged in various retail real estate related opportunities including (i) ground-up development projects through its wholly-owned taxable REIT subsidiaries (“TRS”), which were primarily engaged in the ground-up development of neighborhood and community shopping centers and the subsequent sale thereof upon completion, (ii) retail real estate management and disposition services which primarily focuses on leasing and disposition strategies of retail real estate controlled by both healthy and distressed and/ or bankrupt retailers and (iii) acting as an agent or principal in connection with tax deferred exchange transactions. The Company seeks to reduce its operating and leasing risks through diversification achieved by the geographic distribution of its properties, avoiding dependence on any single property and a large tenant base. At December 31, 2010, the Company’s single largest neighborhood and community shopping center accounted for only 0.8% of the Company’s annualized base rental revenues and only 1.0% of the Company’s total shopping center gross leasable area (“GLA”) including the proportionate share of base rental revenues from properties in which the Company has less than a 100% economic interest. At December 31, 2010, the Company’s five largest ten- ants were The Home Depot, TJX Companies, Wal-Mart, Sears Holdings and Best Buy which represented approximately 3.0%, 2.8%, 2.4%, 2.3% and 1.6%, respectively, of the Company’s annualized base rental revenues, including the proportionate share of base rental revenues from properties in which the Company has less than a 100% economic interest. The principal business of the Company and its consolidated subsidiaries is the ownership, management, development and operation of retail shopping centers, including complementary services that capitalize on the Company’s established retail real estate expertise. The Company does not distinguish its principal business or group its operations on a geographical basis for purposes of measuring per- formance. Accordingly, the Company believes it has a single reportable segment for disclosure purposes in accordance with accounting principles generally accepted in the United States of America (“GAAP”). PRINCIPLES OF CONSOLIDATION AND ESTIMATES The accompanying Consolidated Financial Statements include the accounts of Kimco Realty Corporation (the “Company”), its sub- sidiaries, all of which are wholly-owned, and all entities in which the Company has a controlling interest, including where the Company has been determined to be a primary beneficiary of a variable interest entity (“vIE”) or meets certain criteria of a sole general partner or managing member in accordance with the Consolidation guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). All inter-company balances and transactions have been eliminated in consolidation. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate and related intangible assets and liabilities, equity method investments, marketable securities and other investments, including the assessment of impairments, as well as, depreciable lives, revenue recognition, the collectability of trade accounts receivable, realizability of deferred tax assets and the assessment of uncertain tax positions. Application of these assumptions requires the exercise of judgment as to future uncertainties, and, as a result, actual results could differ from these estimates. 45 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued SUBSEQUENT EvENTS The Company has evaluated subsequent events and transactions for potential recognition or disclosure in its consolidated financial statements. REAL ESTATE Real estate assets are stated at cost, less accumulated depreciation and amortization. Upon acquisition of real estate operating properties, the Company estimates the fair value of acquired tangible assets (consisting of land, building, building improvements and tenant improvements) and identified intangible assets and liabilities (consisting of above and below-market leases, in-place leases and tenant relationships), assumed debt and redeemable units issued at the date of acquisition, based on evaluation of information and estimates available at that date. Based on these estimates, the Company allocates the estimated fair value to the applicable assets and liabilities. Fair value is determined based on an exit price approach, which contemplates the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. If, up to one year from the acquisition date, information regarding fair value of the assets acquired and liabilities assumed is received and estimates are refined, appropriate adjustments are made to the purchase price allocation on a retrospective basis. The Company expenses transaction costs associated with business combinations in the period incurred. In allocating the purchase price to identified intangible assets and liabilities of an acquired property, the value of above-market and below-market leases is estimated based on the present value of the difference between the contractual amounts to be paid pursuant to the leases and management’s estimate of the market lease rates and other lease provisions (i.e., expense recapture, base rental changes, etc.) measured over a period equal to the estimated remaining term of the lease. The capitalized above-market or below-market intan- gible is amortized to rental income over the estimated remaining term of the respective leases. Mortgage debt discounts or premiums are amortized into interest expense over the remaining term of the related debt instrument. Unit discounts and premiums are amor- tized into noncontrolling interest in income, net over the period from the date of issuance to the earliest redemption date of the units. In determining the value of in-place leases, management considers current market conditions and costs to execute similar leases in arriving at an estimate of the carrying costs during the expected lease-up period from vacant to existing occupancy. In estimating carrying costs, management includes real estate taxes, insurance, other operating expenses, estimates of lost rental revenue during the expected lease-up periods and costs to execute similar leases including leasing commissions, legal and other related costs based on current market demand. In estimating the value of tenant relationships, management considers the nature and extent of the existing tenant relationship, the expectation of lease renewals, growth prospects and tenant credit quality, among other factors. The value assigned to in-place leases and tenant relationships is amortized over the estimated remaining term of the leases. If a lease were to be terminated prior to its scheduled expiration, all unamortized costs relating to that lease would be written off. Depreciation and amortization are provided on the straight-line method over the estimated useful lives of the assets, as follows: Buildings and building improvements 15 to 50 years Fixtures, leasehold and tenant improvements Terms of leases or useful (including certain identified intangible assets) lives, whichever is shorter Expenditures for maintenance and repairs are charged to operations as incurred. Significant renovations and replacements, which improve and extend the life of the asset, are capitalized. The useful lives of amortizable intangible assets are evaluated each reporting period with any changes in estimated useful lives being accounted for over the revised remaining useful life. When a real estate asset is identified by management as held-for-sale, the Company ceases depreciation of the asset and estimates the sales price, net of selling costs. If, in management’s opinion, the net sales price of the asset is less than the net book value of the asset, an adjustment to the carrying value would be recorded to reflect the estimated fair value of the property. 46 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued On a continuous basis, management assesses whether there are any indicators, including property operating performance and general market conditions, that the value of the real estate properties (including any related amortizable intangible assets or liabilities) may be impaired. A property value is considered impaired only if management’s estimate of current and projected operating cash flows (undiscounted and unleveraged) of the property over its remaining useful life is less than the net carrying value of the property. Such cash flow projections consider factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors. To the extent impairment has occurred, the carrying value of the property would be adjusted to an amount to reflect the estimated fair value of the property. REAL ESTATE UNDER DEvELOPMENT Real estate under development represents both the ground-up development of neighborhood and community shopping center projects which may be subsequently sold upon completion and projects which the Company may hold as long-term investments. These properties are carried at cost. The cost of land and buildings under development includes specifically identifiable costs. The capitalized costs include pre-construction costs essential to the development of the property, development costs, construction costs, interest costs, real estate taxes, salaries and related costs of personnel directly involved and other costs incurred during the period of development. The Company ceases cost capitalization when the property is held available for occupancy upon substantial completion of tenant improve- ments, but no later than one year from the completion of major construction activity. If, in management’s opinion, the net sales price of assets held for resale or the current and projected undiscounted cash flows of these assets to be held as long-term investments is less than the net carrying value, the carrying value would be adjusted to an amount to reflect the estimated fair value of the property. INvESTMENTS IN UNCONSOLIDATED JOINT vENTURES The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting as the Company exercises significant influence, but does not control these entities. These investments are recorded initially at cost and subsequently adjusted for cash contributions and distributions. Earnings for each investment are recognized in accordance with each respective invest- ment agreement and where applicable, based upon an allocation of the investment’s net assets at book value as if the investment was hypothetically liquidated at the end of each reporting period. The Company’s joint ventures and other real estate investments primarily consist of co-investments with institutional and other joint venture partners in neighborhood and community shopping center properties, consistent with its core business. These joint ventures typically obtain non-recourse third-party financing on their property investments, thus contractually limiting the Company’s exposure to losses primarily to the amount of its equity investment; and due to the lender’s exposure to losses, a lender typically will require a minimum level of equity in order to mitigate its risk. The Company’s exposure to losses associated with its unconsolidated joint ventures is primarily limited to its carrying value in these investments. The Company, on a selective basis, obtains unsecured financing for certain joint ventures. These unsecured financings are guaranteed by the Company with guarantees from the joint venture partners for their proportionate amounts of any guaranty payment the Company is obligated to make. To recognize the character of distributions from equity investees the Company looks at the nature of the cash distribution to determine the proper character of cash flow distributions as either returns on investment, which would be included in operating activi- ties or returns of investment, which would be included in investing activities. On a continuous basis, management assesses whether there are any indicators, including the underlying investment property operat- ing performance and general market conditions, that the value of the Company’s investments in unconsolidated joint ventures may be impaired. An investment’s value is impaired only if management’s estimate of the fair value of the investment is less than the carrying value of the investment and such difference is deemed to be other-than-temporary. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the investment over the estimated fair value of the investment. 47 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued The Company’s estimated fair values are based upon a discounted cash flow model for each specific property that includes all estimated cash inflows and outflows over a specified holding period and, where applicable, any estimated debt premiums. Capitalization rates, discount rates and credit spreads utilized in these models are based upon rates that the Company believes to be within a reason- able range of current market rates for each respective property. OTHER REAL ESTATE INvESTMENTS Other real estate investments primarily consist of preferred equity investments for which the Company provides capital to owners and developers of real estate. The Company typically accounts for its preferred equity investments on the equity method of accounting, whereby earnings for each investment are recognized in accordance with each respective investment agreement and based upon an allo- cation of the investment’s net assets at book value as if the investment was hypothetically liquidated at the end of each reporting period. On a continuous basis, management assesses whether there are any indicators, including the underlying investment property oper- ating performance and general market conditions, that the value of the Company’s Other real estate investments may be impaired. An investment’s value is impaired only if management’s estimate of the fair value of the investment is less than the carrying value of the investment and such difference is deemed to be other-than-temporary. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the investment over the estimated fair value of the investment. The Company’s estimated fair values are based upon a discounted cash flow model for each specific property that includes all estimated cash inflows and outflows over a specified holding period and, where applicable, any estimated debt premiums. Capitalization rates, discount rates and credit spreads utilized in these models are based upon rates that the Company believes to be within a reason- able range of current market rates for each respective property. MORTGAGES AND OTHER FINANCING RECEIvABLES Mortgages and other financing receivables consist of loans acquired and loans originated by the Company. Borrowers of these loans are primarily experienced owners, operators or developers of commercial real estate. Loan receivables are recorded at stated principal amounts, net of any discount or premium or deferred loan origination costs or fees. The related discounts or premiums on mortgages and other loans purchased are amortized or accreted over the life of the related loan receivable. The Company defers certain loan origination and commitment fees, net of certain origination costs, and amortizes them as an adjustment of the loan’s yield over the term of the related loan. The Company evaluates the collectability of both interest and principal on each loan to determine whether it is impaired. A loan is considered to be impaired when, based upon current information and events, it is probable that the Company will be unable to collect all amounts due under the existing contractual terms. When a loan is considered to be impaired, the amount of loss is calculated by comparing the recorded investment to the value determined by discounting the expected future cash flows at the loan’s effective interest rate or to the value of the underlying collateral if the loan is collateralized. Interest income on performing loans is accrued as earned. Interest income on impaired loans is recognized on a cash basis. The Company does not provide for an additional allowance for loan losses based on the grouping of loans as the Company believes the characteristics of the loans are not sufficiently similar to allow an evaluation of these loans as a group for a possible loan loss allowance. As such, all of the Company’s loans are evaluated individually for this purpose. CASH AND CASH EQUIvALENTS Cash and cash equivalents (demand deposits in banks, commercial paper and certificates of deposit with original maturities of three months or less) includes tenants’ security deposits, escrowed funds and other restricted deposits approximating $3.9 million and $18.3 million as of December 31, 2010 and 2009, respectively. Cash and cash equivalent balances may, at a limited number of banks and financial institutions, exceed insurable amounts. The Company believes it mitigates risk by investing in or through major financial institutions and primarily in funds that are currently U.S. federal government insured. Recoverability of investments is dependent upon the performance of the issuers. 48 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued MARKETABLE SECURITIES The Company classifies its existing marketable equity securities as available-for-sale in accordance with the FASB’s Investments-Debt and Equity Securities guidance. These securities are carried at fair market value with unrealized gains and losses reported in stockhold- ers’ equity as a component of Accumulated other comprehensive income (“OCI”). Gains or losses on securities sold are based on the specific identification method. All debt securities are generally classified as held-to-maturity because the Company has the positive intent and ability to hold the securities to maturity. It is more likely than not that the Company will not be required to sell the debt security before its anticipated recovery and the Company expects to recover the security’s entire amortized cost basis even if the entity does not intend to sell. Held-to-maturity securities are stated at amortized cost, adjusted for amortization of premiums and accretion of discounts to maturity. Debt securities which contain conversion features generally are classified as available-for-sale. On a continuous basis, management assesses whether there are any indicators that the value of the Company’s marketable securi- ties may be impaired. A marketable security is impaired if the fair value of the security is less than the carrying value of the security and such difference is deemed to be other-than-temporary. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the security over the estimated fair value in the security. DEFERRED LEASING AND FINANCING COSTS Costs incurred in obtaining tenant leases and long-term financing, included in deferred charges and prepaid expenses in the accom- panying Consolidated Balance Sheets, are amortized on a straight-line basis, which approximates the effective interest method, over the terms of the related leases or debt agreements, as applicable. Such capitalized costs include salaries and related costs of personnel directly involved in successful leasing efforts. REvENUE RECOGNITION AND ACCOUNTS RECEIvABLE Base rental revenues from rental property are recognized on a straight-line basis over the terms of the related leases. Certain of these leases also provide for percentage rents based upon the level of sales achieved by the lessee. These percentage rents are recog- nized once the required sales level is achieved. Rental income may also include payments received in connection with lease termination agreements. In addition, leases typically provide for reimbursement to the Company of common area maintenance costs, real estate taxes and other operating expenses. Operating expense reimbursements are recognized as earned. Management and other fee income consists of property management fees, leasing fees, property acquisition and disposition fees, development fees and asset management fees. These fees arise from contractual agreements with third parties or with entities in which the Company has a noncontrolling interest. Management and other fee income, including acquisition and disposition fees, are recognized as earned under the respective agreements. Management and other fee income related to partially owned entities are recognized to the extent attributable to the unaffiliated interest. Gains and losses from the sale of depreciated operating property and ground-up development projects are generally recognized using the full accrual method in accordance with the FASB’s real estate sales guidance, provided that various criteria relating to the terms of sale and subsequent involvement by the Company with the properties are met. Gains and losses on transfers of operating properties result from the sale of a partial interest in properties to unconsolidated joint ventures and are recognized using the partial sale provisions of the FASB’s real estate sales guidance. The Company makes estimates of the uncollectability of its accounts receivable related to base rents, straight-line rent, expense reimbursements and other revenues. The Company analyzes accounts receivable and historical bad debt levels, customer credit worthiness and current economic trends when evaluating the adequacy of the allowance for doubtful accounts. In addition, tenants in bankruptcy are analyzed and estimates are made in connection with the expected recovery of pre-petition and post-petition claims. The Company’s reported net earnings is directly affected by management’s estimate of the collectability of accounts receivable. 49 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued INCOME TAXES The Company has made an election to qualify, and believes it is operating so as to qualify, as a REIT for federal income tax purposes. Accordingly, the Company generally will not be subject to federal income tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income as defined under Section 856 through 860 of the Code. In connection with the RMA, which became effective January 1, 2001, the Company is permitted to participate in certain activi- ties which it was previously precluded from in order to maintain its qualification as a REIT, so long as these activities are conducted in entities which elect to be treated as taxable REIT subsidiaries under the Code. As such, the Company is subject to federal and state income taxes on the income from these activities. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The Company provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not. The Company reviews the need to establish a valuation allowance against deferred tax assets on a quarterly basis. The review includes an analysis of various factors, such as future reversals of existing taxable temporary differences, the capacity for the carryback or carryforward of any losses, the expected occurrence of future income or loss and available tax planning strategies. The Company applies the FASB’s guidance relating to uncertainty in income taxes recognized in a company’s financial statements. Under this guidance the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty per- cent likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also provides guidance on de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods. FOREIGN CURRENCY TRANSLATION AND TRANSACTIONS Assets and liabilities of the Company’s foreign operations are translated using year-end exchange rates, and revenues and expenses are translated using exchange rates as determined throughout the year. Gains or losses resulting from translation are included in OCI, as a separate component of the Company’s stockholders’ equity. Gains or losses resulting from foreign currency transactions are trans- lated to local currency at the rates of exchange prevailing at the dates of the transactions. The effect of the transactions gain or loss is included in the caption Other (expense)/income, net in the Consolidated Statements of Operations. DERIvATIvE/FINANCIAL INSTRUMENTS The Company measures its derivative instruments at fair value and records them in the Consolidated Balance Sheet as an asset or liability, depending on the Company’s rights or obligations under the applicable derivative contract. The accounting for changes in the fair value of the derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted trans- actions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting under the Derivatives and Hedging guidance issued by the FASB. 50 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued NONCONTROLLING INTERESTS The Company accounts for noncontrolling interests in accordance with the Consolidation guidance and the Distinguishing Liabilities from Equity guidance issued by the FASB. Noncontrolling interests represent the portion of equity that the Company does not own in those entities it consolidates. The Company identifies its noncontrolling interests separately within the equity section on the Company’s Consolidated Balance Sheets. The amounts of consolidated net earnings attributable to the Company and to the noncontrolling interests are presented separately on the Company’s Consolidated Statements of Operations. Noncontrolling interests also includes amounts related to partnership units issued by consolidated subsidiaries of the Company in connection with certain property acquisitions. These units have a stated redemption value or a defined redemption amount based upon the trading price of the Company’s common stock and provides the unit holders various rates of return during the holding period. The unit holders generally have the right to redeem their units for cash at any time after one year from issuance. For convertible units, the Company typically has the option to settle redemption amounts in cash or common stock. The Company evaluates the terms of the partnership units issued in accordance with the FASB’s Distinguishing Liabilities from Equity guidance. Units which embody an unconditional obligation requiring the Company to redeem the units for cash at a specified or determinable date (or dates) or upon an event that is certain to occur are determined to be mandatorily redeemable under this guidance and are included as Redeemable noncontrolling interest and classified within the mezzanine section between Total liabilities and Stockholder’s equity on the Company’s Consolidated Balance Sheets. Convertible units for which the Company has the option to settle redemption amounts in cash or Common Stock are included in the caption Noncontrolling interest within the equity section on the Company’s Consolidated Balance Sheets. EARNINGS PER SHARE The following table sets forth the reconciliation of earnings and the weighted-average number of shares used in the calculation of basic and diluted earnings/(loss) per share (amounts presented in thousands, except per share data): Computation of Basic Earnings/(Loss) Per Share: Income from continuing operations Total net gain on transfer or sale of operating properties Net income attributable to noncontrolling interests Discontinued operations attributable to noncontrolling interests Preferred stock dividends 2010 2009 2008 $ 141,888 $ 10,610 $ 248,462 2,377 3,867 1,782 (18,783) (10,003) (26,502) 4,936 159 1,306 (51,346) (47,288) (47,288) Income/(loss) from continuing operations available to the common shareholders 79,072 (42,655) 177,760 Earnings attributable to unvested restricted shares Income/(loss) from continuing operations attributable to common shareholders Income/(loss) from discontinued operations attributable to the Company (375) (258) (143) 78,697 12,450 (42,913) 177,617 (8,575) 24,854 Net income/(loss) attributable to the Company’s common shareholders for basic earnings per share $ 91,147 $ (51,488) $ 202,471 Weighted average common shares Outstanding 405,827 350,077 257,811 51 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued Basic Earnings/(Loss) Per Share Attributable to the Company’s Common Shareholders: Income/(loss) from continuing operations Income/(loss) from discontinued operations Net income/(loss) Computation of Diluted Earnings/(Loss) Per Share: $ $ 0.19 0.03 0.22 $ (0.12) $ (0.03) $ (0.15) $ 0.69 0.10 0.79 Income/(loss) from continuing operations attributable to common shareholders $ 78,697 $ (42,913) $ 177,617 Distributions on convertible units (a) Income(loss) from continuing operations attributable to common shareholders for diluted earnings per share Income/(loss) from discontinued operations attributable to the Company — — 18 78,697 12,450 (42,913) 177,635 (8,575) 24,854 Net Income/(loss) attributable to common shareholders for diluted earnings per share $ 91,147 $ (51,488) $ 202,489 Weighted average common shares outstanding—basic 405,827 350,077 257,811 Effect of dilutive securities: Equity awards Assumed conversion of convertible units(a) Shares for diluted earnings per common share Diluted Earnings/(Loss) Per Share Attributable to the Company’s Common Shareholders: Income/(loss) from continuing operations Income/(loss) from discontinued operations Net income/(loss) 374 — — — 999 33 406,201 350,077 258,843 $ $ 0.19 0.03 0.22 $ (0.12) $ (0.03) $ (0.15) $ 0.69 0.09 0.78 (a) The effect of the assumed conversion of certain convertible units had an anti-dilutive effect upon the calculation of Income/(loss) from continuing operations per share. Accordingly, the impact of such conversions has not been included in the determination of diluted earnings per share calculations. In addition, there were 12,085,874, 15,870,967 and 13,731,767, stock options that were anti-dilutive as of December 31, 2010, 2009 and 2008, respectively. STOCK COMPENSATION The Company maintains two equity participation plans, the Second Amended and Restated 1998 Equity Participation Plan (the “Prior Plan”) and the 2010 Equity Participation Plan (the “2010 Plan”) (collectively, the “Plans”). The Prior Plan provides for a maximum of 47,000,000 shares of the Company’s common stock to be issued for qualified and non-qualified options and restricted stock grants. The 2010 Plan provides for a maximum of 5,000,000 shares of the Company’s common stock to be issued for qualified and non-qualified options, restricted stock, performance awards and other awards, plus the number of shares of common stock which are or become available for issuance under the Prior Plan and which are not thereafter issued under the Prior Plan, subject to certain conditions. Unless otherwise determined by the Board of Directors at its sole discretion, options granted under the Plans generally vest ratably over a range of three to five years, expire ten years from the date of grant and are exercisable at the market price on the date of grant. Restricted stock grants generally vest (i) 100% on the fourth or fifth anniversary of the grant, (ii) ratably over three or four years or (iii) over three years at 50% after two years and 50% after the third year. Performance share awards may provide a right to receive shares of restricted stock based on the Company’s performance relative to its peers, as defined, or based on other performance criteria as determined by the Board of Directors. In addition, the Plans provide for the granting of certain options and restricted stock to each of the Company’s non-employee directors (the “Independent Directors”) and permits such Independent Directors to elect to receive deferred stock awards in lieu of directors’ fees. 52 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued The Company accounts for equity awards in accordance with the FASB’s Stock Compensation guidance which requires that all share based payments to employees, be recognized in the statement of operations over the service period based on their fair values. Fair value is determined, depending on the type of award, using either the Black-Scholes option pricing formula or the Monte Carlo method, both of which are intended to estimate the fair value of the awards at the grant date. (See footnote 23 for additional disclosure on the assumptions and methodology.) NEW ACCOUNTING PRONOUNCEMENTS For the year ended December 31, 2009, four of the Company’s joint venture investments were considered significant subsidiaries of the Company based upon reaching certain income thresholds per the Securities and Exchange Commission (“SEC”) Regulation S-X Rule 3-09. The Company’s equity in income from these joint ventures for the year ended December 31, 2009, exceeded 20% of the Company’s income from continuing operations, based upon the calculations as then prescribed by the SEC, as such the Company had included audited financial statements of these four joint ventures as exhibits to the 2009 annual report on Form 10-K. During 2010, the SEC revised it’s guidance on the calculation of the income thresholds per the SEC Regulation S-X Rule 3-09. Such revisions, include, but are not limited to, excluding other-than-temporary impairments in the numerator and permitting averaging of the past five years even in a year of losses. The SEC stated that such revisions are to be applied retrospectively. Based on the recent revisions and retrospective application of the SEC guidance to the calculations surrounding SEC Regulation S-X Rule 3-09, the Company’s joint venture investments do not reach any of the thresholds per the SEC Regulation S-X Rule 3-09 for the years ended December 31, 2010, 2009 and 2008. As such the Company is not required to file audited financial statements of these four or any other joint ventures as exhibits to this annual report on Form 10-K. Furthermore, the Company is not required to provide summarized financial data on its investments due to these revisions prescribed for by the SEC for the years ended December 31, 2010, 2009 and 2008. In July 2010, FASB issued ASU2010-20, “Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses,” (“ASU2010-20”), which outlines specific disclosures that will be required for the allowance for credit losses and all finance receivables. Finance receivables includes loans, lease receivables and other arrangements with a contractual right to receive money on demand or on fixed or determinable dates that is recognized as an asset on an entity’s statement of financial position. ASU2010-20 will require companies to provide disaggregated levels of disclosure by portfolio segment and class to enable users of the financial statement to understand the nature of credit risk, how the risk is analyzed in determining the related allowance for credit losses and changes to the allowance during the reporting period. Required disclosures under ASU2010-20 as of the end of a reporting period are effective for the Company’s December31, 2010 reporting period and disclosures regarding activities during a reporting period are effective for the Company’s March31, 2011 interim reporting period. The Company has incorporated the required disclosures within this Annual Report on Form 10-K where deemed applicable. In June 2009, the FASB issued Transfers and Servicing guidance, which amends the previous derecognition guidance and eliminates the exemption from consolidation for qualifying special-purpose entities. This guidance is effective for financial asset transfers occurring after the beginning of an entity’s first fiscal year that begins after November 15, 2009. This guidance was effective for the Company beginning in the first quarter 2010. The Company’s adoption of this guidance did not have a material effect on the Company’s financial position or results of operations. In June 2009, the FASB issued Consolidation guidance, which amends the previous consolidation guidance applicable to variable interest entities. The amendments significantly affect the overall consolidation analysis previously required. This guidance was effective for the Company beginning in the first quarter 2010. The adoption of this guidance did not have a material effect on the Company’s financial position or results of operations. Reclassifications The following reclassifications have been made to the Company’s 2009 and 2008 Consolidated Statements of Operations and the 2009 Consolidated Balance Sheet to conform to the 2010 presentation: (i) a reclass of foreign taxes from other (expense)/income, net to the (provision)/benefit for income taxes, net, (ii) a reclass of land improvements from building and improvements to land and (iii) a partial reclass of a net foreign deferred tax asset, including a valuation allowance, from other assets to an uncertain tax position liability, which is classified within other liabilities (see Note 24). 53 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued 2. IMPAIRMENTS: On a continuous basis, management assesses whether there are any indicators, including property operating performance and general market conditions, that the value of the Company’s assets (including any related amortizable intangible assets or liabilities) may be impaired. To the extent impairment has occurred, the carrying value of the asset would be adjusted to an amount to reflect the estimated fair value of the asset. During 2008 and 2009, volatile economic conditions resulted in declines in the real estate and equity markets. Increases in capitaliza- tion rates, discount rates and vacancies as well as deterioration of real estate market fundamentals impacted net operating income and leasing which further contributed to declines in real estate markets in general. During 2010, the U.S. economic and market conditions stabilized and capitalization rates, discount rates and vacancies had improved; however remaining overall declines in market conditions continued to have a negative effect on certain transactional activity as it related to select real estate assets and certain marketable securities. As a result of the volatility and declining market conditions described above, as well as the Company’s strategy to dispose of cer- tain of its non-retail assets, the Company recognized impairment charges for the years ended December 31, 2010, 2009 and 2008 as follows (in millions): Impairment of property carrying values (including amounts within discontinued operations) $ 8.7 $ 50.0 $ — 2010 2009 2008 Real estate under development Investments in other real estate investments Marketable securities and other investments Investments in real estate joint ventures Total gross impairment charges Noncontrolling interests Income tax benefit Total net impairment charges 11.7 13.4 5.3 — 2.1 49.2 30.1 43.7 13.6 — 118.4 15.5 39.1 175.1 147.5 (0.1) (7.6) (1.2) (1.6) (22.5) (31.1) $ 31.4 $ 151.4 $ 114.8 In addition to the impairment charges above, the Company recognized impairment charges during 2010, 2009 and 2008 of approximately $28.3 million, before an income tax benefit of approximately $3.2 million, approximately $38.7 million, before an income tax benefit of approximately $11.0 million, and $11.2 million, before an income tax benefit of approximately $4.5 million, respectively, relating to certain properties held by various unconsolidated joint ventures in which the Company holds noncontrolling interests. These impairment charges are included in Equity in income of joint ventures, net in the Company’s Consolidated Statements of Operations. The Company will continue to assess the value of its assets on an on-going basis. Based on these assessments, the Company may determine that one or more of its assets may be impaired due to a decline in value and would therefore write-down its cost basis accordingly (see Notes 6, 8, 9, 11, and 12). 54 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued 3. REAL ESTATE: The Company’s components of Rental property consist of the following (in thousands): Land Undeveloped Land Buildings and improvements: Buildings Building improvements Tenant improvements Fixtures and leasehold improvements Other rental property(1) December 31, 2010 2009 $ 1,742,425 $ 1,831,374 94,923 106,054 4,387,144 4,411,565 972,086 699,242 1,103,798 669,540 55,611 306,322 48,008 246,217 8,257,753 8,416,556 Accumulated depreciation and amortization (1,549,380) (1,343,148) Total $ 6,708,373 $ 7,073,408 (1) At December 31, 2010 and 2009, Other rental property consisted of intangible assets including $196,124 and $162,477 respectively, of in-place leases, $21,704 and $21,851 respectively, of tenant relationships, and $88,494 and $61,889 respectively, of above-market leases. In addition, at December 31, 2010 and 2009, the Company had intangible liabilities relating to below-market leases from property acquisitions of approximately $164.9 million and $196.2 million, respectively. These amounts are included in the caption Other liabilities in the Company’s Consolidated Balance Sheets. The estimated net amortization expense associated with the Company’s intangible assets and liabilities for the next five years are as follows (in millions): 2011, $26.8; 2012, $21.3; 2013, $16.3; 2014, $6.4 and 2015, $2.6. 4. PROPERTY ACqUISITIONS, DEVELOPMENTS AND OTHER INVESTMENTS: Operating property acquisitions, ground-up development costs and other investments have been funded principally through the application of proceeds from the Company’s public equity and unsecured debt issuances, proceeds from mortgage and construction financings, availability under the Company’s revolving lines of credit and issuance of various partnership units. OPERATING PROPERTIES Acquisition of Operating Properties— During the year ended December 31, 2010, the Company acquired, in separate transactions, 10 operating properties, an additional joint venture interest and two land parcels comprising an aggregate 1.7 million square feet of a GLA, for an aggregate purchase price of approximately $251.3 million including the assumption of approximately $138.8 million of non-recourse mortgage debt encumbering seven of the properties. Details of these transactions are as follows (in thousands): Property Name Foothills Mall Kenneth Hahn Wexford Riverplace S.C. Cave Springs S.C.—land parcel Lemay, MI Woodruff S.C. Greenville, SC Location Tucson, AZ Month Acquired Jan-10(1) Los Angeles, CA Mar-10(2) Pittsburgh, PA June-10(3) Jacksonville, FL Aug-10 Sep-10(4) Nov-10 Purchase Price Cash/Net Assets and Liabilities Debt Assumed Total GLA $ 9,063 $ 77,162 $ 86,225 8,563 1,657 $ 35,560 510 18,380 — 12,500 8,563 14,157 — 35,560 — 510 — 18,380 515 165 142 257 — 116 55 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued Purchase Price Debt Assumed 7,099 — — 42,007 $ 138,768 Cash/Net Assets and Liabilities Month Acquired Nov-10(5) Dec-10 Dec-10(4) Dec-10(6) Total Property Name Haverhill Plaza Midtown Commons Chevron Parcel Dunhill—4 Properties GLA 63 137 2 328 1,725 (1) The Company acquired this property from a preferred equity investment in which the Company held a noncontrolling interest. There was no gain or loss recognized in connection with this change in control. The $77.2 million of assumed debt includes a decrease of approximately $3.8 million associated with a fair value debt adjustment relating to the property’s purchase price allocation. During August 2010, the Company sold all of its interest in this property, see disposition discussion below. Location Haverhill, MA Knightdale, NC Miami, FL various, LA Total 10,406 23,840 1,700 51,964 $ 251,305 3,307 23,840 1,700 9,957 $ 112,537 (2) The Company acquired this property through the purchase of an additional ownership interest in a joint venture in which the Company had previously held an 11.25% noncontrolling ownership interest. As a result of this transaction the Company now holds a 75% controlling interest and consolidates this entity. There was no gain or loss recognized in connection with this change in control. (3) The Company acquired this property from a joint venture in which the Company holds a 15% noncontrolling ownership interest. The debt assumed is a non-recourse mortgage which bears interest at a rate of 5.54% and is scheduled to mature in 2016. The mortgage also provides the lender with 50% of the excess cash flow, if any, up to $8.7 million after the Company receives its invested capital plus a stated return. There was no gain or loss recognized in connection with this change in control. (4) The Company purchased these adjacent land parcels next to existing properties that the Company currently owns. (5) The Company took over control of this property from a preferred equity investment in which the Company held a noncontrolling interest and therefore now consolidates this entity. There was no gain or loss recognized in connection with this change in control. (6) The Company acquired these properties from three preferred equity investments in which the Company held noncontrolling interests. The $42.0 million of assumed debt includes a decrease of approximately $0.6 million associated with a fair value debt adjustment relating to the property’s purchase price allocation. There were no gains or losses recognized in connection with these changes in control. During the year ended December 31, 2009, the Company acquired, in separate transactions, 33 operating properties, comprising an aggregate 6.8 million square feet of a GLA, for an aggregate purchase price of approximately $955.4 million including the assumption of approximately $577.6 million of non-recourse mortgage debt encumbering 21 of the properties and $50.0 million in preferred stock. Details of these transactions are as follows (in thousands): Property Name Novato Fair Canby Square Garrison Square Oregon Trail Center Pioneer Plaza Powell valley Junction Troutdale Market Angels Camp Albany Plaza Elverta Crossing Park Place Medford, Center PL Retail, LLC Acquisition Location Novato, CA Canby, OR vancouver, WA Gresham, OR Springfield, OR Gresham, OR Troutdale, OR Angels Camp, CA Albany, OR Antelope, CA vallejo, CA Medford, OR various Total Acquisitions Month Acquired Jul-09(1) Oct-09(2) Oct-09(2) Oct-09(2) Oct-09(2) Oct-09(2) Oct-09(2) Nov-09(2) Nov-09(2) Nov-09(2) Nov-09(2) Nov-09(2) Nov-09(2) Purchase Price Cash/Net Assets and Liabilities $ 9,902 7,052 3,535 18,135 9,823 5,062 4,809 6,801 6,075 8,765 15,655 21,158 210,994 $ 327,766 Debt/ Preferred Stock Assumed $ 13,524 — — — — — — — — — — — 614,081 $ 627,605 Total $ 23,426 7,052 3,535 18,135 9,823 5,062 4,809 6,801 6,075 8,765 15,655 21,158 825,075 $ 955,371 GLA 125 116 70 208 96 107 90 78 110 120 151 335 5,160 6,766 (1) The Company acquired this property from a joint venture in which the Company had a 10% noncontrolling ownership interest. This transaction resulted in a gain of approximately $0.3 million as a result of remeasuring the Company’s 10% noncontrolling equity interest to fair value. (2) The Company acquired these 11 properties from a joint venture in which the Company had a 15% noncontrolling ownership interest. These transactions resulted in an aggregate gain of approxi- mately $0.1 million as a result of remeasuring the Company’s 15% noncontrolling equity interest to fair value. (3) The Company purchased the remaining 85% interest in PL Retail LLC, an entity that indirectly owns through wholly-owned subsidiaries 21 shopping centers, in which the Company held a 15% noncontrolling interest prior to this transaction. The 21 shopping centers comprise approximately 5.2 million square feet of GLA are located in California (8 assets; 27% of GLA), Florida (6 assets; 42% of GLA), the Phoenix, Arizona metro area (2 assets; 7.3% of GLA), New Jersey (2), Long Island, New York (1), Arlington, Virginia, near metro Washington, D.C. (1) and Greenville, South Carolina (1). The Company paid a purchase price equal to approximately $175.0 million, after customary adjustments and closing prorations, which was equivalent to 85% of PL Retail LLC’s gross asset value, which equaled approximately $825 million, less the assumption of $564 million of non-recourse mortgage debt encumbering 20 properties and $50 million of perpetual preferred stock.The purchase price includes approximately $20 million for the purchase of development rights for one shopping center. Subsequent to the acquisition of these properties, the Company repaid an aggregate of approximately $269 million of the non-recourse mortgage debt which encumbered 10 properties. This transaction resulted in a gain of approximately $7.6 million as a result of remeasuring the Company’s 15% noncontrolling equity interest to fair value. 56 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued The aggregate purchase price of the above 2010 and 2009 property acquisitions have been allocated to the tangible and intangible assets and liabilities of the properties in accordance with the FASB’s Business Combinations guidance, at the date of acquisition, based on evaluation of information and estimates available at such date. The total aggregate fair value was allocated as follows (in thousands): Land Buildings Below Market Rents Above Market Rents In-Place Leases Other Intangibles Building Improvements Tenant Improvements Mortgage Fair value Adjustment Other Assets Other Liabilities Noncontrolling Interest 2010 2009 $ 62,475 $ 317,052 134,929 383,666 (8,615) (52,982) 7,613 15,473 22 38,681 34,042 12,602 36,161 182,318 9,712 (4,446) 2,123 (1,287) (2,855) 27,664 1,670 20,088 (9,430) — $ 251,305 $ 955,371 Ground-Up Development— The Company is engaged in ground-up development projects which consist of (i) U.S. ground-up development projects which will be held as long-term investments by the Company and (ii) various ground-up development projects located in Latin America for long- term investment. During 2009, the Company changed its merchant building business strategy from a sale upon completion strategy to a long-term hold strategy. Those properties previously considered merchant building have been either placed in service as long-term investment properties or included in U.S. ground-up development projects. The ground-up development projects generally have significant pre-leasing prior to the commencement of construction. As of December 31, 2010, the Company had in progress a total of six ground-up development projects, consisting of (i) two ground-up development projects located in the U.S., (ii) two ground-up development projects located in Mexico, (iii) one ground-up development project located in Chile and (iv) one ground-up development project located in Brazil. During the years ended December 31, 2010 and 2009, the Company expended approximately $13.2 million and $9.9 million, respec- tively, to purchase its partners noncontrolling partnership interests in four and five of its ground-up development projects, respectively. Since there was no change in control, these transactions resulted in an adjustment to the Company’s Paid-in capital of approximately $8.2 million and $7.2 million for the years ended December 31, 2010 and 2009, respectively. Long-term Investment Projects— During 2009, the Company acquired a land parcel located in Rio Claro, Brazil through a newly formed joint venture in which the Company has a 70% controlling ownership interest for a purchase price of 3.3 million Brazilian Reals (approximately USD $1.5 million). This parcel will be developed into a 48,000 square foot retail shopping center. Due to future commitments from the partners to fund construction costs throughout the construction period the Company has determined that this joint venture is a vIE and that the Company is the primary beneficiary. As such, the Company has consolidated this entity for accounting and reporting purposes. 57 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued Kimsouth— During 2009, the Company acquired the remaining 7.5% interest in Kimsouth Realty Inc. (“Kimsouth”) for approximately $5.5 million making Kimsouth a wholly-owned subsidiary of the Company. Since there was no change in control, this transaction resulted in an adjustment to the Company’s Paid-in capital of approximately $3.9 million. Kimsouth holds a 15% noncontrolling interest in a joint venture with an investment group which owns a portion of Albertson’s Inc. During 2010, the Albertson’s joint venture disposed of 23 operating properties for an aggregate sales price of $126.5 million, resulting in a gain of approximately $91.7 million. Kimsouth’s share was approximately $12.3 million and is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Operations. Additionally, during 2010, the Albertson’s joint venture sold 32 operating properties in a sales leaseback transaction for an aggregate sales price of approximately $266.0 million. The sales leaseback transaction resulted in a deferred gain of approximately $262.4 million which will be recognized over the 20-year lease term. Kimsouth’s share of this deferred gain is approximately $35.2 million. In connection with these transactions, Kimsouth received a total distribution of approximately $34.7 million. As a result of this distribution, the Company recognized additional income of approximately $1.3 million from cash received in excess of the Company’s investment. During 2008, the Albertson’s joint venture disposed of 121 operating properties for an aggregate sales price of approximately $564.0 million, resulting in a gain of approximately $552.3 million, of which Kimsouth’s share was approximately $73.1 million. During 2008, Kimsouth recognized equity in income from the Albertson’s joint venture of approximately $64.4 million before income taxes, including the $73.1 million of gain and $15.0 million from cash received in excess of the Company’s investment. As a result of these transactions, Kimsouth fully reduced its deferred tax asset valuation allowance and utilized all of its remaining NOL carryforwards, which provided a tax benefit of approximately $3.1 million. Kimco Income Fund II (“KIF II”)— During 2007, the Company transferred 11 operating properties to a wholly-owned consolidated entity, Kimco Income Fund II (“KIF II”), for an aggregate purchase price of approximately $278.2 million, including non-recourse mortgage debt of $180.9 million, encumbering 11 of the properties. During 2008, the Company transferred an additional three properties for $73.9 million, including $50.6 million in non-recourse mortgage debt. During 2008 the Company sold a 26.4% noncontrolling ownership interest in the entity to third parties for approximately $32.5 million, which approximated the Company’s cost. During the year ended December 31, 2010, the Company purchased an additional 1.62% partnership interest in KIF II from one of its investors for approximately $0.8 million. As a result of this transaction the Company now holds a 75.28% controlling interest in KIF II and continues to consolidate this entity. Since there was no change in control from this transaction, the purchase of the additional partnership interest resulted in an adjustment to the Company’s Paid-in capital of approximately $1.0 million. FNC Realty Corporation— During July 2010, the Company acquired an additional 3.6% interest in FNC Realty Corporation (“FNC”) for $3.5 million, which increased the Company’s total controlling ownership interest to approximately 56.6%. The Company had previously and continues to consolidate this entity. During the year ended December 30, 2010, FNC disposed of four properties, in separate transactions, for an aggregate sales price of approximately $6.5 million which resulted in a pre-tax profit of approximately $0.5 million, before noncontrolling interest. This income has been recorded as Income from other real estate investments in the Company’s Consolidated Statements of Operations. During 2009, FNC disposed of two properties, in separate transactions, for an aggregate sales price of approximately $2.4 million. These transactions resulted in an aggregate pre-tax profit of approximately $0.9 million, before noncontrolling interest of $0.5 million. This income has been recorded as Income from other real estate investments in the Company’s Consolidated Statements of Operations. During 2008, FNC disposed of a property for a sales price of approximately $3.3 million. This transaction resulted in a pre-tax profit of approximately $2.1 million, before noncontrolling interest of $1.0 million. This income has been recorded as Income from other real estate investments in the Company’s Consolidated Statements of Operations. 58 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued 5. DISPOSITIONS OF REAL ESTATE: OPERATING REAL ESTATE— During 2010, the Company (i) sold seven operating properties, which were previously consolidated, to two new joint ventures in which the Company holds noncontrolling equity interests for an aggregate sales price of approximately $438.1 million including the assignment of $159.9 million of non-recourse mortgage debt encumbering three of the properties and (ii) disposed of, in separate trans- actions, seven operating properties for an aggregate sales price of approximately $100.5 million including the assignment of $81.0 million of non-recourse mortgage debt encumbering one of the properties. These transactions resulted in aggregate gains of approximately $4.4 million and aggregate losses/impairments of approximately $5.0 million. Additionally, during 2010, the Company disposed of (i) three properties, in separate transactions, for an aggregate sales price of approximately $23.8 million and (ii) five properties from a consolidated joint venture in which the Company had a preferred equity investment for a sales price of approximately $40.8 million. These transactions resulted in an aggregate profit participation of approxi- mately $20.8 million, before income tax of approximately $1.0 million and noncontrolling interest of approximately $4.9 million. This profit participation has been recorded as Income from other real estate investments and is reflected in Income from discontinued operating properties, net of tax in the Company’s Consolidated Statements of Operations. During 2010, the Company also disposed of, in separate transactions, nine land parcels for an aggregate sales price of approximately $25.6 million which resulted in an aggregate gain of approximately $3.4 million. This gain is included in Other (expense)/income, net in the Company’s Consolidated Statements of Operations. During 2009, the Company disposed of, in separate transactions, portions of six operating properties and one land parcel for an aggregate sales price of approximately $28.9 million. The Company provided seller financing for two of these transactions aggregat- ing approximately $1.4 million, which bear interest at 9% per annum and are scheduled to mature in January and March of 2012. The Company evaluated these transactions pursuant to the FASB’s real estate sales guidance. These seven transactions resulted in the Company’s recognition of an aggregate net gain of approximately $4.1 million, net of income tax of $0.2 million. Also during 2009, a consolidated joint venture in which the Company has a controlling interest disposed of a parcel of land for approximately $4.8 million and recognized a gain of approximately $4.4 million, before income taxes and noncontrolling interest. This gain has been recorded as Other (expense)/income, net in the Company’s Consolidated Statements of Operations. During 2008, the Company disposed of seven operating properties and a portion of four operating properties, in separate transac- tions, for an aggregate sales price of approximately $73.0 million, which resulted in an aggregate gain of approximately $20.0 million. In addition, the Company partially recognized deferred gains of approximately $1.2 million on three properties relating to their transfer and partial sale in connection with the Kimco Income Fund II transaction described above. Additionally, during 2008, the Company disposed of an operating property for approximately $21.4 million. The Company provided seller financing for approximately $3.6 million, which bore interest at 10% per annum and was scheduled to mature on May 1, 2011. Due to the terms of this financing, the Company deferred its gain of $3.7 million from this sale. During 2010, the third party mortgage lender foreclosed on this property and the buyer paid the Company $0.3 million to settle the Company’s loan. As such, the Company wrote-off the remaining $3.8 million balance on the mortgage receivable and released the deferred gain of $3.7 million, which resulted in a net loss to the Company of approximately $0.1 million, which is included in Discontinued operations on the Company’s Consolidated Statements of Operations. Additionally, during 2008, a consolidated joint venture in which the Company had a preferred equity investment disposed of a property for a sales price of approximately $35.0 million. As a result of this capital transaction, the Company received approximately $3.5 million of profit participation, before noncontrolling interest of approximately $1.1 million. This profit participation has been recorded as income from other real estate investments and is reflected in Income from discontinued operating properties in the Company’s Consolidated Statements of Operations. 59 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued GROUND-UP DEvELOPMENT— During 2010, the Company disposed of a land parcel for a sales price of approximately $0.8 million resulting in a gain of approximately $0.4 million. Additionally, the Company recognized approximately $1.7 million in income on previously sold development properties during the year ended December 31, 2010. During 2009, the Company sold, in separate transactions, five out-parcels, four land parcels and three ground leases for aggregate proceeds of approximately $19.4 million. These transactions resulted in gains on sale of development properties of approximately $5.8 million, before income taxes of $2.3 million. During 2008, the Company sold, in separate transactions, (i) two completed merchant building projects, (ii) 21 out-parcels, (iii) a partial sale of one project and (iv) a partnership interest in one project for aggregate proceeds of approximately $73.5 million and received approximately $4.1 million of proceeds from completed earn-out requirements on three previously sold merchant building projects. These sales resulted in gains of approximately $36.6 million, before income taxes of $14.6 million. 6. ADJUSTMENT OF PROPERTY CARRYING VALUES AND REAL ESTATE UNDER DEVELOPMENT: IMPAIRMENTS— During 2010, the Company recognized aggregate impairment charges of approximately $8.7 million, of which approximately $5.2 million is classified as discontinued operations on the Company’s Consolidated Statement of Operations, relating to its investment in seven properties. Four of these properties were sold during 2010 and one of these properties is classified as held-for-sale as of December 31, 2010. The estimated individual fair value of these properties is based upon purchase prices and current purchase price offers. Additionally, during 2010, the Company had determined that one of its unconsolidated joint ventures’ ground-up development projects, located in Miramar, FL, estimated recoverable value will not exceed its estimated cost. As a result, the Company recorded an aggregate pre-tax other-than-temporary impairment on its investment of $11.7 million, representing the excess of the investment’s carrying value over its estimated fair value. During 2009, as part of the Company’s ongoing impairment assessment, the Company determined that there were certain redevel- opment mixed-use properties with estimated recoverable values that would not exceed their estimated costs. As a result, the Company recorded an aggregate impairment of property carrying values of approximately $50.0 million, representing the excess of the carrying values of 10 properties, primarily located in Philadelphia, Chicago, New York and Boston, over their estimated fair values. Additionally, during 2009, the Company determined that there was one ground-up development project with an estimated recover- able value that would not exceed its estimated cost. As a result, the Company recorded an impairment of approximately $2.1 million, representing the excess of the carrying value of the project over its estimated fair value. During 2008, the Company had determined that for two of its ground-up development projects, located in Middleburg, FL and Miramar, FL, the estimated recoverable value will not exceed their estimated cost. As a result, the Company recorded an aggregate pre-tax adjustment of property carrying value on these projects of $7.9 million, representing the excess of the carrying values of the projects over their estimated fair values. These impairments were primarily due to declines in real estate fundamentals along with adverse changes in local market conditions and the uncertainty of their recovery. The Company’s estimated fair values were based upon estimated sales prices or, where applicable, projected operating cash flows (discounted and unleveraged) of the property over its specified holding period. Such cash flow projections consider factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors. Capitalization rates and discount rates utilized in these models were based upon rates that the Company believes to be within a reasonable range of current market rates for the respective properties. 60 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued 7. DISCONTINUED OPERATIONS AND ASSETS HELD-FOR-SALE: The Company reports as discontinued operations assets held-for-sale as of the end of the current period and assets sold during the period. All results of these discontinued operations are included in a separate component of income on the Consolidated Statements of Operations under the caption Discontinued operations. This has resulted in certain reclassifications of 2010, 2009 and 2008 financial statement amounts. The components of Income from discontinued operations for each of the three years ended December 31, 2010, are shown below. These include the results of operations through the date of each respective sale for properties sold during 2010, 2009 and 2008 (in thousands): Discontinued operations: Revenues from rental property Rental property expenses Depreciation and amortization Interest expense Income from other real estate investments Other expense, net 2010 2009 2008 $ 23,487 $ 13,545 $ 13,863 (7,508) (9,163) (6,072) 20,809 (3,767) (3,336) (1,169) (3,402) (1,860) 10 (509) 2,472 (767) (2,159) (1,080) Income from discontinued operating properties, before income taxes 20,786 Loss on operating properties held-for-sale/sold, before income taxes (35) 4,600 (174) Impairment of property carrying value (5,211) (13,300) 8,008 (598) — Gain on disposition of operating properties, before income taxes 1,932 689 20,018 Provision for income taxes Income/(loss) from discontinued operating properties Net income attributable to noncontrolling interests (86) (231) (1,268) 17,386 (8,416) 26,160 (4,936) (159) (1,306) Income/(loss) from discontinued operations attributable to the Company $ 12,450 $ (8,575) $ 24,854 During 2010, the Company classified as held-for-sale 12 operating properties comprising approximately 0.5 million square feet of GLA. The book value of each of these properties aggregated approximately $40.5 million, net of accumulated depreciation of $11.9 million. The Company recognized impairment charges of approximately $5.2 million, before income tax benefit, on seven of these properties. The individual book value of the five remaining properties did not exceed each of their estimated fair values less costs to sell. The Company’s determination of the fair value of the 12 properties, aggregating approximately $66.1 million, was based upon executed contracts of sale with third parties. The Company completed the sale of eleven of these properties during 2010. The remaining property held-for- sale has a book value of approximately $4.4 million and is included in Other Assets on the Company’s Consolidated Balance Sheets. During 2008, the Company classified as held-for-sale four shopping center properties comprising approximately 0.2 million square feet of GLA. The book value of each of these properties, aggregating approximately $16.2 million, net of accumulated depreciation of approximately $11.3 million, did not exceed each of their estimated fair value. As a result, no adjustment of property carrying value had been recorded. The Company’s determination of the fair value for these properties, aggregating approximately $28.6 million, was based upon executed contracts of sale with third parties less estimated selling costs. During 2009 and 2008, the Company reclassified one property previously classified as held-for-sale into held-for-use and completed the sale of three of these properties. 61 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued 8. INVESTMENT AND ADVANCES IN REAL ESTATE JOINT VENTURES: The Company and its subsidiaries have investments in and advances to various real estate joint ventures. These joint ventures are engaged primarily in the operation of shopping centers which are either owned or held under long-term operating leases. The Company and the joint venture partners have joint approval rights for major decisions, including those regarding property operations. As such, the Company holds noncontrolling interests in these joint ventures and accounts for them under the equity method of accounting. The table below presents joint venture investments for which the Company held an ownership interest at December 31, 2010 and 2009 (in millions, except number of properties): As of and for the year ended December 31, 2010 Venture Prudential Investment Program (“KimPru” and “KimPru II”)(1)(3)(5) Kimco Income Opportunity Portfolio (“KIR”)(3) UBS Programs(3) BIG Shopping Centers(3)(5) Canadian Pension Plan(3) Kimco Income Fund(3) SEB Immobilien(3) Other Institutional Programs(3) RioCan Intown Latin America Other Joint venture Programs Total Average Ownership Interest Number of Properties Total GLA Gross Investment In Real Estate The Company’s Investment The Company’s Share of Income/(Loss) 15.00%* 45.00% 17.90%* 36.50%* 55.00% 15.20% 15.00% various 50.00% (4) various various 65 59 43 22 5 12 11 68 45 138 130 91 689 11.3 12.6 6.3 3.5 2.1 1.5 1.5 4.9 9.3 N/A 17.3 13.1 83.4 $ 2,915.1 1,546.6 1,366.6 507.2 378.1 281.7 300.1 838.1 1,380.7 820.1 1,191.1 2,029.3 $ 13,554.7 $ 145.3 156.1 68.3 42.4 115.1 12.4 3.4 35.1 61.5 99.4 344.8 299.0 $ 1,382.8 $ (18.4) 19.8 1.2 (1.2) 3.2 1.0 0.8 0.1 18.6 (6.0) 10.4 26.2 $ 55.7 As of and for the year ended December 31, 2009 Number of Properties Venture KimPru and KimPru II(1)(3) KIR(3) UBS Programs(3) PL Retail(2)(3) Kimco Income Fund(3) SEB Immobilien(3) Other Institutional Programs(3) RioCan Intown Latin America Other Joint venture Programs Total * Ownership % is a blended rate (1) This venture represents four separate joint ventures, with four separate accounts managed by Prudential Real Estate Investors (“PREI”), three of these ventures are collectively referred to as 97(5) 61 43 — 12 10 64 45 138 124 80 674 various various Total GLA 16.3 13.0 6.2 — 1.5 1.4 4.3 9.3 N/A 14.9 10.3 77.2 The Company’s Investment $ 135.8 164.8 71.3 — 12.2 — 35.3 78.4 111.8 327.7 166.3 $ 1,103.6 Average Ownership Interest 15.00%* 45.00% 17.90%* — 15.20% 15.00% various 50.00% (4) Gross Investment In Real Estate $ 3,848.5 1,573.3 1,366.5 — 280.6 275.7 726.2 1,299.4 814.0 992.2 1,691.9 $ 12,868.3 The Company’s Share of Income/(Loss) $ (36.1) 14.0 0.4 6.1 1.1 1.2 3.7 15.5 (9.2) 10.9 (1.3) $6.3 KimPru and the remaining venture is referred to as KimPru II. (2) During November 2009, the 85% owner in PL Retail sold its interest to the Company. At the time of the transaction, PL Retail indirectly owned through wholly-owned subsidiaries 21 shopping centers, comprising approximately 5.2 million square feet of GLA, in which the Company held a 15% noncontrolling interest just prior to this transaction. The Company paid a purchase price equal to approximately $175.0 million, after customary adjustments and closing prorations, which was equivalent to 85% of PL Retail LLC’s gross asset value, which equaled approximately $825 million, less the assumption of $564 million of non-recourse mortgage debt encumbering 20 properties and $50 million of perpetual preferred stock.This transfer resulted in an aggregate net gain of approximately $57.5 million of which the Company’s share was approximately $8.6 million. As a result of this transaction the Company now consolidates this entity. (3) The Company manages these portfolios and, where applicable, earns acquisition fees, leasing commissions, property management fees, assets management fees and construction management fees. (4) The Company’s share of this investment is subject to fluctuation and is dependent upon property cash flows. (5) During 2010 KimPru and KimPru II sold 24 properties to four new joint ventures, in which the Company has a noncontrolling ownership interest, including the BIG Shopping Centers joint venture. 62 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued The table below presents debt balances within the Company’s joint venture investments for which the Company held noncontrolling ownership interests at December 31, 2010 and 2009 (in millions, except average remaining term): As of December 31, 2010 As of December 31, 2009 Venture KimPru and KimPru II(1) KIR UBS Programs BIG Shopping Centers Canadian Pension Plan Kimco Income Fund SEB Immobilien RioCan Intown Other Institutional Programs Mortgages and Notes Payable $ 1,388.0 954.7 733.6 407.2 168.7 167.8 193.5 968.5 628.0 550.8 Other Joint venture Programs 1,801.8 Total $ 7,962.6 **Average Remaining term includes extensions PRUDENTIAL INvESTMENT PROGRAM— Average Interest Rate Average Remaining Term (months)** 5.56% 6.54% 5.70% 5.47% 4.45% 5.45% 5.67% 5.84% 5.19% 5.08% 5.08% 59.8 53.1 54.8 72.5 39.3 44.7 71.4 52.0 46.8 56.6 20.9 Mortgages and Notes Payable $ 2,287.0 991.5 746.4 — — 169.2 193.5 899.4 633.9 453.2 1,582.6 $ 7,956.7 Average Interest Rate Average Remaining Term (months)** 4.98% 6.80% 5.70% — — 5.47% 5.67% 5.94% 5.17% 5.63% 5.31% 63.3 51.4 66.8 — — 51.4 83.4 61.1 63.7 65.7 59.9 During 2010, KimPru recognized impairment charges of approximately $139.7 million relating to 17 properties that were classified as held-for-sale where the aggregate net book value of the properties exceeded the aggregate estimated selling price. The Company had previously taken other-than-temporary impairment charges on its investment in KimPru and had allocated these impairment charges to the underlying assets of the KimPru joint ventures including a portion to these operating properties. As a result, the Company’s share of the $139.7 million impairment loss was approximately $11.5 million which is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Operations. All 17 of these properties were sold during 2010. In addition to the impairment charges above, KimPru recognized impairment charges during 2010 of approximately $22.0 million, based on sales prices for nine properties that were classified as held-for-sale. The Company’s share of this impairment charge was approximately $3.3 million, excluding an income tax benefit of approximately $1.8 million. The $3.3 million impairment charge is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Operations. Eight of these properties were sold during 2010. During 2009 and 2008, the Company recognized impairment charges of $28.5 million and $15.5 million, respectively, against the carrying value of its investment in KimPru, reflecting an other-than-temporary decline in the fair value of its investment resulting from a further decline in the real estate markets. In addition to the impairment charges above, KimPru recognized impairment charges during 2009 and 2008 of approximately $223.1 million and $74.6 million, respectively, relating to (i) certain properties held by an unconsolidated joint venture within the KimPru joint venture based on estimated sales prices and (ii) a write-down against the carrying value of an unconsolidated joint venture, reflecting an other-than-temporary decline in the fair value of its investment resulting from a decline in the real estate markets. The Company’s share of these impairment charges were approximately $33.4 million, before income tax benefits of approximately $11.0 million, and approximately $11.2 million, before income tax benefit of approximately $4.5 million, during 2009 and 2008, respectively, which is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Operations. 63 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued During 2010, KimPru II sold an operating property, located in Pittsburgh, PA to the Company through the assumption and modi- fication of the mortgage debt encumbering the property. The property had a net book basis of approximately $32.2 million and non- recourse mortgage debt of approximately $22.7 million which bore interest at 5.54% and was scheduled to mature in 2016. As a result of this transaction, KimPru II recognized an impairment charge of approximately $10.1 million. The Company had previously taken an other-than-temporary impairment charge on its investment in KimPru II and had allocated this impairment charge to the underlying assets of the KimPru II joint venture including a portion to this operating property. As a result, the Company’s share of the $10.1 million impairment loss is approximately $1.3 million, excluding an income tax benefit of approximately $0.5 million and is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Operations. In addition to the impairment charge above, KimPru II recognized impairment charges during 2010, aggregating approximately $15.5 million for three properties that were classified as held-for-sale. KimPru II’s determination of the fair value for each of these prop- erties, aggregating approximately $32.4 million, was based upon executed contracts of sale with third parties. The Company’s share of the $15.5 million impairment loss is approximately $2.1 million, excluding an income tax benefit of approximately $1.3 million and is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Operations. During June 2009, the Company recognized an impairment charge of $4.0 million, against the carrying value of KimPru II. This impairment reflects an other-than-temporary decline in the fair value of its investment resulting from a decline in the real estate markets. In addition to the impairment charges above, during 2009, KimPru II recognized impairment charges relating to two proper- ties aggregating approximately $11.4 million based on estimated sales price. The Company’s share of these impairment charges were approximately $1.7 million, which is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Operations. These operating properties were sold, in separate transactions, during 2009 for an aggregate sales price of approximately $43.5 million, which resulted in no gain or loss. The Company’s estimated fair values relating to the impairment assessments above were based upon sales prices or, where applicable, discounted cash flow models that include all estimated cash inflows and outflows over a specified holding period and where applicable, any estimated debt premiums. Capitalization rates, discount rates and credit spreads utilized in these models are based upon rates that the Company believed to be within a reasonable range of current market rates for the respective properties. KIMCO INCOME OPERATING PARTNERSHIP, L.P. (“KIR”)— During 2010, KIR recognized an impairment charge relating to one operating property and one out-parcel aggregating approximately $6.7 million. The Company’s share of these impairment charges was approximately $3.0 million, which is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Operations. During 2010, the operating property was foreclosed on by the third party mortgage lender, at which time KIR recognized a gain on early extinguishment of debt of approximately $5.8 million, the Company’s share of which was $2.6 million which is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Operations. During 2009, KIR recognized an impairment charge relating to one property of approximately $5.0 million. The Company’s share of this impairment charge was approximately $2.3 million which is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Operations. During 2010 the third party mortgage lender foreclosed on this operating property, at which time KIR recognized a gain on early extinguishment of debt of approximately $4.3 million, the Company’s share of which was $2.0 million which is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Operations. KIR’s estimated fair value relating to the impairment assessments above were based upon discounted cash flow models that included all estimated cash inflows and outflows over a specified holding period. Capitalization rates and discount rates utilized in this model were based upon rates that the Company believed to be within a reasonable range of current market rates for the respec- tive property. 64 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued OTHER REAL ESTATE JOINT vENTURES— During 2010, the Company, in separate transactions, amended two of its Canadian preferred equity investment agreements to restructure the investments as pari passu joint ventures in which the Company holds noncontrolling interests. These investments hold retail operating properties which are encumbered by an aggregate Canadian denominated (“CAD”) $187.4 million (approximately USD $181.9 million) in mortgage debt which bear interest at rates ranging from Canadian LIBOR plus 4.0% (4.26% at December 31, 2010) to 6.15% and have scheduled maturities ranging from 2011 to 2014. As a result of these transactions, the Company continues to account for its aggregate net investment of CAD $76.6 million (approximately USD $74.3 million) in these joint ventures under the equity method of accounting and includes these investments in Investments and advances to real estate joint ventures within the Company’s Consolidated Balance Sheets (see Note 9). The Company recognized impairment charges of approximately $7.0 million and approximately $12.2 million, for the year ended December 31, 2010 and 2009, respectively, against the carrying value of its investments in various unconsolidated joint ventures. The impairment charges recognized in 2010 resulted from properties, within various unconsolidated joint ventures, being classified as held- for-sale. The fair values of these properties were based upon executed contracts of sale with third parties. The impairment charges recognized in 2009 reflect an other-than-temporary decline in the fair value of various investments resulting from declines in the real estate market. Estimated fair values were based upon discounted cash flow models that include all estimated cash inflows and outflows over a specified holding period and where applicable, any estimated fair value debt premiums. Capitalization rates, discount rates and credit spreads utilized in these models were based upon rates that the Company believes to be within a reasonable range of current market rates for the respective properties. Summarized financial information for the Company’s investment and advances to real estate joint ventures is as follows (in millions): Assets: Real estate, net Other assets Liabilities and Partners’/Members’ Capital: Notes payable Mortgages payable Construction loans Other liabilities Noncontrolling interests Partners’/Members’ capital Revenues from rental property Operating expenses Interest expense Depreciation and amortization Impairments Other expense, net (Loss)/income from continuing operations Discontinued Operations: Income/(loss) from discontinued operations Gain on dispositions of properties Net (loss)/income December 31, 2010 2009 $ 11,850.4 825.0 $ 12,675.4 $ 11,408.0 727.5 $ 12,135.5 $ (189.3) $ (517.1) (7,331.3) (108.3) (340.2) (35.3) (3,803.3) $ (12,675.4) $ (12,135.5) (7,683.5) (89.9) (390.3) (36.1) (4,286.3) Year Ended December 31, 2009 $ 1,420.4 (488.2) (447.2) (383.5) (86.0) (24.0) (1,428.9) (8.5) 2010 $ 1,427.6 (495.6) (440.6) (390.8) (204.1) (22.9) (1,554.0) (126.4) 2008 $ 1,497.1 (512.1) (481.2) (415.4) — (95.2) (1,503.9) (6.8) 1.2 8.8 (116.4) $ $ (172.6) 79.9 (101.2) $ 27.0 33.9 54.1 65 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued Other liabilities included in the Company’s accompanying Consolidated Balance Sheets include accounts with certain real estate joint ventures totaling approximately $24.7 million and $25.5 million at December 31, 2010 and 2009, respectively. The Company and its subsidiaries have varying equity interests in these real estate joint ventures, which may differ from their proportionate share of net income or loss recognized in accordance with GAAP. The Company’s maximum exposure to losses associated with its unconsolidated joint ventures is primarily limited to its carrying value in these investments. Generally such investments contain operating properties and the Company has determined these entities do not contain the characteristics of a vIE. As of December 31, 2010 and 2009, the Company’s carrying value in these investments approximated $1.4 billion and $1.1 billion, respectively. 9. OTHER REAL ESTATE INVESTMENTS: PREFERRED EQUITY CAPITAL— The Company previously provided capital to owners and developers of real estate properties through its Preferred Equity pro- gram. As of December 31, 2010, the Company’s net investment under the Preferred Equity program was approximately $387.7 million relating to 570 properties, including 399 net leased properties described below. For the year ended December 31, 2010, the Company earned approximately $37.6 million from its preferred equity investments, including $9.7 million in profit participation earned from nine capital transactions. For the year ended December 31, 2009, the Company earned approximately $30.4 million, including $2.5 million of profit participation earned from five capital transactions. For the year ended December 31, 2008, the Company earned approximately $66.8 million, including $24.6 million of profit participation earned from five capital transactions. Included in the capital transactions described above for the year ended December 31, 2010, was the sale of 50% of the Company’s pre- ferred equity investment in a Canadian retail operating property for approximately CAD $31.9 million (approximately USD $31.0 million). In connection with this sale the Company (i) recognized profit participation of approximately CAD $1.7 million (approximately USD $1.6 million) and (ii) amended its preferred equity agreement to restructure the Company’s remaining investment as a pari passu joint venture investment. Additionally, during 2010, the Company amended its preferred equity agreement to restructure another Canadian investment that holds investments in 12 retail properties as a pari passu joint venture investment. As a result of the amendments made to these preferred equity agreements, the Company continues to account for both of these investments under the equity method of accounting and includes these investments in Investments and advances to real estate joint ventures within the Company’s Consolidated Balance Sheets (see Note 8). Included in the capital transactions described above for the year ended December 31, 2008, was the sale of the Company’s preferred equity investment in an operating property to its partner for approximately $29.5 million. The Company provided seller financing to the partner for approximately CAD $24.0 million (approximately USD $23.5 million), which bears interest at a rate of 8.5% per annum and has a maturity date of June 2013. The Company evaluated this transaction pursuant to the provisions of the FASB’s real estate sales guidance and accordingly, recognized profit participation of approximately $10.8 million. During 2007, the Company invested approximately $81.7 million of preferred equity capital in an entity which was comprised of 403 net leased properties which consist of 30 master leased pools with each pool leased to individual corporate operators. Each master leased pool is accounted for as a direct financing lease. These properties consist of a diverse array of free-standing restaurants, fast food restaurants, convenience and auto parts stores. As of December 31, 2010, the remaining properties were encumbered by third party loans aggregating approximately $403.2 million with interest rates ranging from 5.08% to 10.47% with a weighted-average interest rate of 9.3% and maturities ranging from one year to 11 years. During the year ended December 31, 2010, the Company recognized an impairment charge of approximately $3.8 million against the carrying value of its preferred equity investment in an operating property located in Tucson, AZ based on its estimated sales price. During 2010, the Company acquired the remaining ownership interest in this operating property for a purchase price of approximately $90.0 million, including the assumption of $81.0 million in non-recourse mortgage debt, which bears interest at a rate of 6.08% and is scheduled to mature in 2016. During August 2010, this property was fully disposed of (see Note 5). 66 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued Additionally, during the year ended December 31, 2010, the Company recognized an impairment charge of approximately $5.0 million against the carrying value of two of its preferred equity investments, based on estimated sales prices. During 2010, the Company sold one of these preferred equity investments for a sales price of approximately $0.3 million. During 2009, the Company recognized impairment charges of $49.2 million, primarily against the carrying value of 16 preferred equity investments, which hold 29 properties, reflecting an other-than-temporary decline in the fair value of its investment resulting from a decline in the real estate markets. The Company’s estimated fair values relating to the impairment assessments above were based upon sales prices, where applicable, or discounted cash flow models that include all estimated cash inflows and outflows over a specified holding period and where applicable, any estimated debt premiums. Capitalization rates, discount rates and credit spreads utilized in these models were based upon rates that the Company believes to be within a reasonable range of current market rates for the respective properties. Summarized financial information relating to the Company’s preferred equity investments is as follows (in millions): Assets: Real estate, net Other assets December 31, 2010 2009 $ 1,406.7 $ 2,000.9 794.7 861.4 $ 2,201.4 $ 2,862.3 Liabilities and Partners’/Members’ Capital: Notes and mortgages payable $ 1,669.5 $ 2,121.3 Other liabilities Partners’/Members’ capital 61.2 470.7 68.1 672.9 $ 2,201.4 $ 2,862.3 Year Ended December 31, 2010 2009 2008 Revenues from rental property $ 278.4 $ 311.9 $ 313.3 Operating expenses Interest expense Depreciation and amortization Impairment(a) Other expense, net Gain on disposition of properties (73.2) (96.7) (100.1) (104.0) (112.5) (120.0) (52.3) — (6.3) 42.6 13.7 (67.7) (20.0) (9.7) 5.3 1.7 7.0 (63.7) — (1.7) 27.8 8.5 $ 36.3 Net income $ 56.3 $ (a) Represents impairments on two master leased pools due to a decline in fair market values. The Company’s maximum exposure to losses associated with its preferred equity investments is primarily limited to its invested capital. As of December 31, 2010 and 2009, the Company’s invested capital in its preferred equity investments approximated $387.7 million and $520.8 million, respectively. OTHER— During 2010, the Company recognized an other-than-temporary impairment charge of approximately $2.1 million against the carry- ing value of an investment which owns an operating property located in Manchester, NH and Nashua, NH. The Company determined the fair value of its investment based on an estimated sales price of the operating properties. 67 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued INvESTMENT IN RETAIL STORE LEASES— The Company has interests in various retail store leases relating to the anchor store premises in neighborhood and community shopping centers. These premises have been sublet to retailers who lease the stores pursuant to net lease agreements. Income from the investment in these retail store leases during the years ended December 31, 2010, 2009 and 2008, was approximately $1.6 million, $0.8 million and $2.7 million, respectively. These amounts represent sublease revenues during the years ended December 31, 2010, 2009 and 2008, of approximately $5.9 million, $5.2 million and $7.1 million, respectively, less related expenses of $4.3 million, $4.4 million and $4.4 million, respectively. The Company’s future minimum revenues under the terms of all non-cancelable tenant subleases and future minimum obligations through the remaining terms of its retail store leases, assuming no new or renegotiated leases are executed for such premises, for future years are as follows (in millions): 2011, $5.2 and $3.4; 2012, $4.1 and $2.6; 2013, $3.8 and $2.3; 2014, $2.9 and $1.7; 2015, $2.1 and $1.3, and thereafter, $2.8 and $1.6, respectively. Leveraged Lease— During June 2002, the Company acquired a 90% equity participation interest in an existing leveraged lease of 30 properties. The properties are leased under a long-term bond-type net lease whose primary term expires in 2016, with the lessee having certain renewal option rights. The Company’s cash equity investment was approximately $4.0 million. This equity investment is reported as a net investment in leveraged lease in accordance with the FASB’s Lease guidance. As of December 31, 2010, 18 of these properties were sold, whereby the proceeds from the sales were used to pay down the mortgage debt by approximately $31.2 million and the remaining 12 properties were encumbered by third-party non-recourse debt of approximately $33.4 million that is scheduled to fully amortize during the primary term of the lease from a portion of the periodic net rents receivable under the net lease. As an equity participant in the leveraged lease, the Company has no recourse obligation for principal or interest payments on the debt, which is collateralized by a first mortgage lien on the properties and collateral assignment of the lease. Accordingly, this obligation has been offset against the related net rental receivable under the lease. At December 31, 2010 and 2009, the Company’s net investment in the leveraged lease consisted of the following (in millions): Remaining net rentals Estimated unguaranteed residual value Non-recourse mortgage debt Unearned and deferred income 2010 2009 $ 37.6 $ 44.1 31.7 (30.1) (34.2) 31.7 (34.5) (37.0) Net investment in leveraged lease $ 5.0 $ 4.3 10. VARIABLE INTEREST ENTITIES: CONSOLIDATED OPERATING PROPERTIES— Included within the Company’s consolidated operating properties at December 31, 2010 are four consolidated entities that are vIEs and for which the Company is the primary beneficiary. All of these entities have been established to own and operate real estate property. The Company’s involvement with these entities is through its majority ownership of the properties. These entities were deemed vIEs primarily based on the fact that the voting rights of the equity investors are not proportional to their obligation to absorb expected losses or receive the expected residual returns of the entity and substantially all of the entity’s activities are conducted on behalf of the investor which has disproportionately fewer voting rights. The Company determined that it was the primary beneficiary of these vIEs as a result of its controlling financial interest. During 2010, the Company sold two consolidated vIE’s which the Company was the primary beneficiary. 68 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued At December 31, 2010, total assets of these vIEs were approximately $112.5 million and total liabilities were approximately $21.8 million, including $13.6 million of non-recourse mortgage debt. The classification of these assets is primarily within real estate and the classification of liabilities is primarily within mortgages payable and noncontrolling interests in the Company’s Consolidated Balance Sheets. The majority of the operations of these vIEs are funded with cash flows generated from the properties. One of the vIEs is encum- bered by third party non-recourse mortgage debt of approximately $13.6 million. The Company has not provided financial support to any of these vIEs that it was not previously contractually required to provide, which consists primarily of funding any capital expenditures, including tenant improvements, which are deemed necessary to continue to operate the entity and any operating cash shortfalls that the entity may experience. CONSOLIDATED GROUND-UP DEvELOPMENT PROJECTS— Included within the Company’s ground-up development projects at December 31, 2010 are four consolidated entities that are vIEs and for which the Company is the primary beneficiary. These entities were established to develop real estate property to hold as long-term investments. The Company’s involvement with these entities is through its majority ownership of the properties. These enti- ties were deemed vIEs primarily based on the fact that the equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support. The initial equity contributed to these entities was not sufficient to fully finance the real estate construction as development costs are funded by the partners throughout the construction period. The Company determined that it was the primary beneficiary of these vIEs as a result of its controlling financial interest. At December 31, 2010, total assets of these ground-up development vIEs were approximately $236.6 million and total liabilities were approximately $2.7 million. The classification of these assets is primarily within real estate under development and the classification of liabilities is primarily within accounts payable and accrued expenses in the Company’s Consolidated Balance Sheets. Substantially all of the projected development costs to be funded for these ground-up development vIEs, aggregating approximately $39.0 million, will be funded with capital contributions from the Company, when contractually obligated. The Company has not provided financial support to the vIE that it was not previously contractually required to provide. UNCONSOLIDATED GROUND-UP DEvELOPMENT— Also included within the Company’s ground-up development projects at December 31, 2010, is an unconsolidated joint venture, which is a vIE for which the Company is not the primary beneficiary. This joint venture was primarily established to develop real estate property for long-term investment and was deemed a vIE primarily based on the fact that the equity investment at risk was not suf- ficient to permit the entity to finance its activities without additional financial support as development costs are funded by the partners throughout the construction period. The Company determined that it was not the primary beneficiary of this vIE based on the fact that the Company has shared control of this entity along with the entity’s partners and therefore does not have a controlling financial interest in this vIE. The Company’s aggregate investment in this vIE was approximately $22.6 million as of December 31, 2010, which is included in Real estate under development in the Company’s Consolidated Balance Sheets. The Company’s maximum exposure to loss as a result of its involvement with this vIE is estimated to be $41.5 million, which primarily represents the Company’s current investment and estimated future funding commitments of approximately $18.9 million. The Company has not provided financial support to this vIE that it was not previously contractually required to provide. All future costs of development will be funded with capital contributions from the Company and the outside partner in accordance with their respective ownership percentages. PREFERRED EQUITY INvESTMENTS— Included in the Company’s preferred equity investments are two unconsolidated investments that are vIEs and for which the Company is not the primary beneficiary. These joint ventures were primarily established to develop real estate property for long-term investment and were deemed vIEs primarily based on the fact that the equity investment at risk was not sufficient to permit the entity to finance its activities without additional financial support. The initial equity contributed to these entities was not sufficient to fully finance the real estate construction as development costs are funded by the partners throughout the construction period. The Company determined that it was not the primary beneficiary of thesevIEs based on the fact that the Companydoes not have a controlling financial interest in these vIEs. 69 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued The Company’s aggregate investment in these preferred equity vIEs was approximately $5.5 million as of December 31, 2010, which is included in Other real estate investments in the Company’s Consolidated Balance Sheets. The Company’s maximum exposure to loss as a result of its involvement with these vIEs is estimated to be $9.2 million, which primarily represents the Company’s current investment and estimated future funding commitments. The Company has not provided financial support to these vIEs that it was not previously contractually required to provide. All future costs of development will be funded with capital contributions from the Company and the outside partners in accordance with their respective ownership percentages. 11. MORTGAGES AND OTHER FINANCING RECEIVABLES: The Company has various mortgages and other financing receivables which consist of loans acquired and loans originated by the Company. For a complete listing of the Company’s mortgages and other financing receivables at December 31, 2010, see Financial Statement Schedule Iv included in this annual report on Form 10-K. The following table reconciles mortgage loans and other financing receivables from January 1, 2008 to December 31, 2010 (in thousands) : Balance at January 1 Additions: New mortgage loans Additions under existing mortgage loans Foreign currency translation Capitalized loan costs Amortization of loan discounts Deductions: Loan repayments Loan foreclosures Loan impairments Charge off/foreign currency translation Collections of principal Amortization of loan costs 2010 2009 2008 $ 131,332 $ 181,992 $ 153,847 1,411 3,047 3,923 — 247 8,316 707 6,324 60 247 86,247 8,268 — 605 247 (24,860) (43,578) (48,633) — (17,312) (700) (3,800) — — (3,101) (2,726) — (15,630) (1,024) (2,279) (80) (600) (680) Balance at December 31 $ 108,493 $ 131,332 $ 181,992 The Company had three loans aggregating approximately $19.5 million which were in default as of December 31, 2010. The Company assessed these loans and determined that the estimated fair value of the underlying collateral exceeded the respective carrying values as of December 31, 2010. As noted in the table above, during 2010, the Company recognized an impairment charge of approximately $0.7 million, against the carrying value, including accrued interest, of a mortgage receivable that was in default. This impairment charge reflects a decrease in the estimated fair value of the underlying collateral. The remaining balance on this mortgage receivable as of December 31, 2010 was approximately $1.4 million. This impairment charge is reflected in Impairments—Marketable equity securities and other investments on the Company’s Consolidated Statements of Operations. During 2009, the Company recognized impairment charges of approximately $3.8 million, against the carrying value of two mortgage loans. Approximately $3.5 million of the $3.8 million of impairment charges was related to a mortgage receivable that was in default. As a result, the Company began foreclosure proceedings on the underlying property during June 2009 and the process was completed in the fourth quarter 2009. This impairment charge reflects the decrease in the estimated fair values of the real estate collateral. This impairment charge is reflected in Impairments—Marketable equity securities and other investments on the Company’s Consolidated Statements of Operations. 70 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued 12. MARKETABLE SECURITIES: The amortized cost and estimated fair values of securities available-for-sale and held-to-maturity at December 31, 2010 and 2009, are as follows (in thousands): December 31, 2010 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale: Equity and debt securities $ 182,817 $ 20,291 $ (17) $ 203,091 Held-to-maturity: Other debt securities 20,900 Total marketable securities $ 203,717 548 $ 20,839 (88) 21,360 $ (105) $ 224,451 December 31, 2009 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale: Equity and debt securities $ 182,826 $ 4,896 $ (21,629) $ 166,093 Held-to-maturity: Other debt securities 43,500 Total marketable securities $ 226,326 1,454 $ 6,350 (7,042) 37,912 $ (28,671) $ 204,005 During February 2008, the Company acquired an aggregate $190 million Australian denominated (“AUD”) (approximately $170.1 million USD) convertible notes issued by a subsidiary of valad Property Group (“valad”), a publicly traded Australian company listed on the Australian stock exchange that is a diversified, property fund manager, investor, developer and property investment banker with property investments in Australia, Europe and Asia. The notes are guaranteed by valad and bear interest at 9.5% payable semi- annually in arrears. The notes are repayable after five years with an option for valad to extend up to 18 months, subject to certain interest rate and conversion price resets. The notes are convertible any time into publicly traded valad securities at a price of AUD $26.60. During 2010, the Company acquired an additional $10 million AUD (approximately $9.3 million USD) of convertible notes. In accordance with the FASB’s Derivative and Hedging guidance, the Company has bifurcated the conversion option within the valad convertible notes and has separately accounted for this option as an embedded derivative. The original host instrument is classified as an available-for-sale security at fair value and is included in Marketable securities on the Company’s Consolidated Balance Sheets with changes in the fair value recorded through Stockholders’ equity as a component of other comprehensive income. At December 31, 2010, the Company had an unrealized gain, including foreign currency adjustments, associated with these notes of approximately $6.0 million and at December 31, 2009, the Company had an unrealized loss, including foreign currency adjustments, associated with these notes of approximately $21.6 million. Interest payments on the notes are current and all amounts due in accordance with contractual terms are considered probable by the Company. During 2010, valad made a principal payment of AUD $8.0 million (approximately USD $7.9 million) and subsequent to December 31, 2010, valad made additional principal payments aggregating approximately AUD $7.0 million (approximately USD $6.9 million). The Company has the intent and ability to hold the notes to recover its investment, which may be to its maturity. The embedded derivative is recorded at fair value and is included in Other assets on the Company’s Consolidated Balance Sheets with changes in fair value recognized in the Company’s Consolidated Statements of Operations. The value attributed to the embedded convertible option was approximately AUD $10.0 million, (approximately USD $10.2 million). As a result of the fair value remeasurement of this derivative instrument during 2010 and 2009, there was an AUD $0.2 million (approximately USD $0.2 million) unrealized decrease and an AUD $1.4 million (approximately USD $1.6 million) unrealized increase, respectively, in the fair value of the convertible option. This unrealized increase is included in Other (expense)/income, net on the Company’s Consolidated Statements of Operations. 71 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued During 2010, 2009 and 2008, the Company recorded impairment charges of approximately $4.6 million, $26.1 million and $118.4 million, respectively, before income tax benefits of approximately $0 million, $0 million and $25.7 million, respectively, due to the decline in value of certain marketable securities and other investments that were deemed to be other-than-temporary. These impair- ments were a result of the deterioration of the equity markets for these securities during their respective years and the uncertainty of their future recoverability. Market value for the equity securities represents the closing price of each security as it appears on their respective stock exchange at the end of the period. At December 31, 2010, the Company’s investment in marketable securities was approximately $224.0 million which includes an aggregate net unrealized gain of approximately $20.3 million relating to marketable equity and debt security investments. At December 31, 2009, the Company’s investment in marketable securities was approximately $209.6 million which includes an aggregate unrealized loss of approximately $21.6 million relating to the valad marketable debt securities. At December 31, 2009 there were no unrealized losses relating to marketable equity securities. For each of the equity securities in the Company’s portfolio with unrealized losses, the Company reviews the underlying cause of the decline in value and the estimated recovery period, as well as the severity and duration of the decline. In the Company’s evaluation, the Company considers its ability and intent to hold these investments for a reasonable period of time sufficient for the Company to recover its cost basis. During 2010, the Company received approximately $23.2 million in proceeds from the sale of certain marketable securities. The Company recognized gross realizable gains of approximately $2.6 million and gross realizable losses of approximately $1.9 million from sales of marketable securities during 2010. During 2009, the Company received approximately $79.8 million in proceeds from the sale of certain marketable securities. The Company recognized gross realizable gains of approximately $8.5 million and gross realizable losses of approximately $2.6 million from sales of marketable securities during 2009. During 2008, the Company received approximately $50.3 million in proceeds from the sale of certain marketable securities. The Company recognized gross realizable gains of approximately $15.9 million and gross realizable losses of approximately $1.9 million from its marketable securities during 2008. As of December 31, 2010, the contractual maturities of Other debt securities classified as held-to-maturity are as follows: within one year, $ 11.6 million; after one year through five years, $0.1 million; and after five years through 10 years, $9.2 million. Actual maturities may differ from contractual maturities as issuers may have the right to prepay debt obligations with or without prepayment penalties. 13. NOTES PAYABLE: MEDIUM TERM NOTES— The Company has implemented a medium-term notes (“MTN”) program pursuant to which it may, from time to time, offer for sale its senior unsecured debt for any general corporate purposes, including (i) funding specific liquidity requirements in its business, including property acquisitions, development and redevelopment costs and (ii) managing the Company’s debt maturities. As of December 31, 2010, a total principal amount of approximately $1.2 billion in senior fixed-rate MTNs was outstanding. These fixed-rate notes had maturities ranging from eight months to nine years as of December 31, 2010, and bear interest at rates ranging from 4.30% to 5.98%. Interest on these fixed-rate senior unsecured notes is payable semi-annually in arrears. Proceeds from these issuances were primarily used for the acquisition of neighborhood and community shopping centers, the expansion and improvement of properties in the Company’s portfolio and the repayment of certain debt obligations of the Company. During 2010, the Company issued $300.0 million of unsecured Medium Term Notes (“MTNs”) which bear interest at a rate of 4.30% and are scheduled to mature on February 1, 2018. Proceeds from these MTNs were used to repay (i) the Company’s $100.0 million 5.304% MTNs which were scheduled to mature in February 2011 and (ii) the Company’s $150.0 million 7.95% MTNs which were scheduled to mature in April 2011. The remaining proceeds were used for general corporate purposes. In connection with the optional make-whole provisions relating to the prepayment of these notes, the Company incurred early extinguishment of debt charges aggre- gating approximately $6.5 million. 72 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued During April 2010, the Company issued $150.0 million CAD unsecured notes to a group of private investors at a rate of 5.99% scheduled to mature in April 2018. Proceeds from these notes were used to repay the Company’s CAD $150.0 million 4.45% Series 1 unsecured notes which matured in April 2010. Additionally, during 2010, the Company repaid (i) the remaining $46.5 million balance on its 4.62% MTNs, which matured in May 2010 and (ii) its $25.0 million 7.30% MTNs, which matured in September 2010. As of December 31, 2009, a total principal amount of approximately $1.1 billion in senior fixed-rate MTNs was outstanding. These fixed-rate notes had maturities ranging from five months to six years as of December 31, 2009, and bear interest at rates ranging from 4.62% to 5.98%. Interest on these fixed-rate senior unsecured notes is payable semi-annually in arrears. Proceeds from these issuances were primarily used for the acquisition of neighborhood and community shopping centers, the expansion and improvement of proper- ties in the Company’s portfolio and the repayment of certain debt obligations of the Company. During the year ended December 31, 2009, the Company repaid (i) its $20.0 million 7.56% Medium Term Note, which matured in May 2009 and (ii) its $25.0 million 7.06% Medium Term Note, which matured in July 2009. Additionally during 2009, the Company repurchased in aggregate approximately $36.1 million in face value of its Medium Term Notes and Fixed Rate Bonds for an aggregate discounted purchase price of approximately $33.7 million. These transactions resulted in an aggregate gain of approximately $2.4 million. SENIOR UNSECURED NOTES— As of December 31, 2010, the Company had a total principal amount of approximately $1.2 billion in fixed-rate unsecured senior notes. These fixed-rate notes had maturities ranging from one year to seven years as of December 31, 2010, and bear interest at fixed rates ranging from 4.70% to 6.875%. Interest on these senior unsecured notes is payable semi-annually in arrears. As of December 31, 2009, the Company had a total principal amount of approximately $1.3 billion in fixed-rate unsecured senior notes. These fixed-rate notes had maturities ranging from nine months to nine years as of December 31, 2009, and bear interest at fixed rates ranging from 4.70% to 7.95%. Interest on these senior unsecured notes is payable semi-annually in arrears. During September 2009, the Company issued $300.0 million of 10-year Senior Unsecured Notes at an interest rate of 6.875% payable semi-annually in arrears. These notes were sold at 99.84% of par value. Net proceeds from the issuance were approximately $297.3 million, after related transaction costs of approximately $0.3 million. The proceeds from this issuance were primarily used to repay the Company’s $220.0 million unsecured term loan described below. The remaining proceeds were used to repay certain construction loans that were scheduled to mature in 2010. During 2009, the Company repaid its $130.0 million 6.875% senior notes, which matured on February 10, 2009. During September 2009, the Company entered into a fifth supplemental indenture, under the indenture governing its Medium Term Notes and Senior Notes, which included the financial covenants for future offerings under this indenture that were removed by the fourth supplemental indenture. In accordance with the terms of the Indenture, as amended, pursuant to which the Company’s Senior Unsecured Notes, except for the $300.0 million issued during April 2007 under the fourth supplemental indenture, have been issued, the Company is subject to maintaining (a) certain maximum leverage ratios on both unsecured senior corporate and secured debt, minimum debt service coverage ratios and minimum equity levels, (b) certain debt service ratios, (c) certain asset to debt ratios and (d) restricted from paying dividends in amounts that exceed by more than $26.0 million the funds from operations, as defined, generated through the end of the calendar quarter most recently completed prior to the declaration of such dividend; however, this dividend limitation does not apply to any distributions necessary to maintain the Company’s qualification as a REIT providing the Company is in compliance with its total leverage limitations. During April 2009, the Company obtained a two-year $220.0 million unsecured term loan with a consortium of banks, which accrued interest at a spread of 4.65% to LIBOR (subject to a 2% LIBOR floor) or at the Company’s option, at a spread of 3.65% to the “ABR,” as defined in the Credit Agreement. The term loan was scheduled to mature in April 2011. The Company utilized proceeds from this term loan to partially repay the outstanding balance under the Company’s U.S. revolving credit facility and for general corporate purposes. During September 2009, the Company fully repaid the $220.0 million outstanding balance and terminated this loan. 73 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued CREDIT FACILITIES— During October 2007, the Company established a new $1.5 billion unsecured U.S. revolving credit facility (the “U.S. Credit Facility”) with a group of banks, which was scheduled to expire in October 2011. During October 2010, the Company exercised its one-year extension option and the U.S. Credit Facility is now scheduled to expire in October 2012. The U.S. Credit Facility has made available funds to finance general corporate purposes, including (i) property acquisitions, (ii) investments in the Company’s institutional real estate management programs, (iii) development and redevelopment costs, and (iv) any short-term working capital requirements. Interest on borrowings under the U.S. Credit Facility accrues at LIBOR plus 0.425% and fluctuates in accordance with changes in the Company’s senior debt ratings. As part of this U.S. Credit Facility, the Company has a competitive bid option whereby the Company may auction up to $750.0 million of its requested borrowings to the bank group. This competitive bid option provides the Company the opportunity to obtain pricing below the currently stated spread. A facility fee of 0.15% per annum is payable quarterly in arrears. As part of the U.S. Credit Facility, the Company has a $200.0 million sub-limit which provides it the opportunity to borrow in alternative currencies such as Pounds Sterling, Japanese Yen or Euros. Pursuant to the terms of the U.S. Credit Facility, the Company, among other things, is subject to covenants requiring the maintenance of (i) maximum leverage ratios on both unsecured and secured debt, and (ii) minimum interest and fixed coverage ratios. As of December 31, 2010, the U.S. Credit Facility had a balance of $123.2 million outstanding and $23.7 million appropriated for letters of credit. The Company also has a CAD $250.0 million unsecured credit facility with a group of banks. This facility bears interest at a rate of CDOR plus 0.425%, subject to change in accordance with the Company’s senior debt ratings and was scheduled to mature March 2011. During September 2010, the Company exercised its one-year extension option and the credit facility is now scheduled to expire in March 2012. A facility fee of 0.15% per annum is payable quarterly in arrears. This facility also permits U.S. dollar denominated borrowings. Proceeds from this facility are used for general corporate purposes, including the funding of Canadian denominated investments. As of December 31, 2010, there was no outstanding balance under this credit facility. There are approximately CAD $1.4 million (approxi- mately USD $1.4 million) appropriated for letters of credit at December 31, 2010 (see Note 22, Commitments and Contingencies). The Canadian facility covenants are the same as the U.S. Credit Facility covenants described above. During March 2008, the Company obtained a MXP 1.0 billion term loan, which bears interest at a rate of 8.58%, subject to change in accordance with the Company’s senior debt ratings, and is scheduled to mature in March 2013. The Company utilized proceeds from this term loan to fully repay the outstanding balance of a MXP 500.0 million unsecured revolving credit facility, which had been terminated by the Company. Remaining proceeds from this term loan were used for funding MXP denominated investments. As of December 31, 2010, the outstanding balance on this term loan was MXP 1.0 billion (approximately USD $80.9 million). The covenants for this term loan are the same as the U.S. Credit Facility covenants described above The scheduled maturities of all unsecured notes payable as of December 31, 2010, were approximately as follows (in millions): 2011, $90.6; 2012, $348.3; 2013, $557.2; 2014, $295.2; 2015, $350.0; and thereafter, $1,341.1. 14. MORTGAGES PAYABLE: During 2010, the Company (i) assumed approximately $144.8 million of individual non-recourse mortgage debt relating to the acquisition of eight operating properties, including a decrease of approximately $4.4 million associated with fair value debt adjustments, (ii) assigned approximately $159.9 million in non-recourse mortgage debt encumbering three operating properties that were sold to newly formed joint ventures in which the Company has noncontrolling interests, (iii) assigned approximately $81.0 million of non-recourse mortgage debt encumbering an operating property that was sold to a third party and (iv) paid off approximately $226.0 million of mortgage debt that encumbered 17 operating properties. In connection with the repayment of five of these mortgages, the Company incurred early extinguishment of debt charges aggregating approximately $4.3 million. During 2009, the Company (i) obtained 21 new non-recourse mortgages aggregating approximately $400.2 million, which bear interest at rates ranging from 5.95% to 8.00% and have maturities ranging from five months to six years (ii) assumed approximately $579.2 million of individual non-recourse mortgage debt relating to the acquisition of 22 operating properties, including an increase of approximately $1.6 million of fair value debt adjustments and (iii) paid off approximately $437.7 million of individual non-recourse mortgage debt that encumbered 24 operating properties. 74 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued Mortgages payable, collateralized by certain shopping center properties and related tenants’ leases, are generally due in monthly installments of principal and/or interest which mature at various dates through 2031. Interest rates range from approximately LIBOR (0.26% as of December 31, 2010) to 9.75% (weighted-average interest rate of 6.13% as of December 31, 2010). The scheduled principal payments (excluding any extension options available to the Company) of all mortgages payable, excluding net unamortized fair value debt adjustments of approximately $1.8 million, as of December 31, 2010, were approximately as follows (in millions): 2011, $56.7; 2012, $204.6; 2013, $92.6; 2014, $224.8; 2015, $60.6 and thereafter, $405.2. 15. CONSTRUCTION LOANS PAYABLE: During 2010, the Company fully repaid two construction loans aggregating approximately $30.2 million and obtained a new 25-year construction loan on a development project located in Chile with a total loan commitment of $48.3 million and bears interest at 10 year-BCU, as defined, plus 2.87% with a floor of 5.22%. As of December 31, 2010, total loan commitments on the Company’s three construction loans aggregated approximately $82.5 million of which approximately $30.3 million has been funded. These loans have scheduled maturities ranging from 2012 to 2035 and bear interest at rates ranging from LIBOR plus 1.90% (2.16% at December 31, 2010) to 5.79%. These construction loans are collateralized by the respective projects and associated tenants’ leases. The scheduled maturities of all construction loans payable as of December 31, 2010, were approximately as follows (in millions): 2011, $0; 2012, $12.9; 2013, $2.9; 2014, $2.0; 2015, $0 and thereafter, $12.5. During 2009, the Company fully repaid nine construction loans aggregating approximately $212.2 million. As of December 31, 2009, total loan commitments on the Company’s four remaining construction loans aggregated approximately $69.7 million of which approximately $45.8 million has been funded. These loans have scheduled maturities ranging from 11 months to 56 months (excluding any extension options which may be available to the Company) and bear interest at rates ranging from 2.13% to 4.50% at December 31, 2009. These construction loans are collateralized by the respective projects and associated tenants’ leases. 16. NONCONTROLLING INTERESTS: Noncontrolling interests represent the portion of equity that the Company does not own in those entities it consolidates as a result of having a controlling interest or determined that the Company was the primary beneficiary of a vIE in accordance with the provisions of the FASB’s Consolidation guidance. The Company accounts and reports for noncontrolling interests in accordance with the Consolidation guidance and the Distinguishing Liabilities from Equity guidance issued by the FASB. The Company identifies its noncontrolling interests separately within the equity section on the Company’s Consolidated Balance Sheets. Units that are determined to be mandatorily redeemable are classified as Redeemable noncontrolling interests and presented in the mezzanine section between Total liabilities and Stockholder’s equity on the Company’s Consolidated Balance Sheets. The amounts of consolidated net income attributable to the Company and to the noncontrolling interests are presented separately on the Company’s Consolidated Statements of Operations. During 2006, the Company acquired seven shopping center properties located throughout Puerto Rico. These properties were acquired through the issuance of approximately $158.6 million of non-convertible units, approximately $45.8 million of convertible units, the assumption of approximately $131.2 million of non-recourse debt and $116.3 million in cash. Noncontrolling interests related to these acquisitions was approximately $233.0 million of units, including premiums of approximately $13.5 million and a fair market value adjustment of approximately $15.1 million (collectively, the “Units”). The Company is restricted from disposing of these assets, other than through a tax free transaction until November 2015. 75 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued The Units consisted of (i) approximately 81.8 million Preferred A Units par value $1.00 per unit, which pay the holder a return of 7.0% per annum on the Preferred A Par value and are redeemable for cash by the holder at any time after one year or callable by the Company any time after six months and contain a promote feature based upon an increase in net operating income of the properties capped at a 10.0% increase, (ii) 2,000 Class A Preferred Units, par value $10,000 per unit, which pay the holder a return equal to LIBOR plus 2.0% per annum on the Class A Preferred Par value and are redeemable for cash by the holder at any time after November 30, 2010, (iii) 2,627 Class B-1 Preferred Units, par value $10,000 per unit, which pay the holder a return equal to 7.0% per annum on the Class B-1 Preferred Par value and are redeemable by the holder at any time after November 30, 2010, for cash or at the Company’s option, shares of the Company’s common stock, equal to the Cash Redemption Amount, as defined, (iv) 5,673 Class B-2 Preferred Units, par value $10,000 per unit, which pay the holder a return equal to 7.0% per annum on the Class B-2 Preferred Par value and are redeemable for cash by the holder at any time after November 30, 2010, and (v) 640,001 Class C DownReit Units, valued at an issuance price of $30.52 per unit which pay the holder a return at a rate equal to the Company’s common stock dividend and are redeemable by the holder at any time after November 30, 2010, for cash or at the Company’s option, shares of the Company’s common stock equal to the Class C Cash Amount, as defined. The following units have been redeemed as of December 31, 2010: Type Preferred A Units Class A Preferred Units Class B-1 Preferred Units Class B-2 Preferred Units Units Redeemed 2,200,000 2,000 2,438 5,576 Class C DownReit Units 61,804 Par Value Redeemed (in millions) $ 2.2 $20.0 $24.4 $55.8 $ 1.9 Redemption Type Cash Cash Cash Cash/Charitable Contribution Cash Noncontrolling interest relating to the remaining units was $110.4 million and $113.1 million as of December 31, 2010 and 2009, respectively. During 2006, the Company acquired two shopping center properties located in Bay Shore and Centereach, NY. Included in Noncontrolling interests was approximately $41.6 million, including a discount of $0.3 million and a fair market value adjustment of $3.8 million, in redeemable units (the “Redeemable Units”), issued by the Company in connection with these transactions. The prop- erties were acquired through the issuance of $24.2 million of Redeemable Units, which are redeemable at the option of the holder; approximately $14.0 million of fixed rate Redeemable Units and the assumption of approximately $23.4 million of non-recourse debt. The Redeemable Units consist of (i) 13,963 Class A Units, par value $1,000 per unit, which pay the holder a return of 5% per annum of the Class A par value and are redeemable for cash by the holder at any time after April 3, 2011, or callable by the Company any time after April 3, 2016, and (ii) 647,758 Class B Units, valued at an issuance price of $37.24 per unit, which pay the holder a return at a rate equal to the Company’s common stock dividend and are redeemable by the holder at any time after April 3, 2007, for cash or at the option of the Company for Common Stock at a ratio of 1:1, or callable by the Company any time after April 3, 2026. The Company is restricted from disposing of these assets, other than through a tax free transaction, until April 2016 and April 2026 for the Centereach, NY, and Bay Shore, NY, assets, respectively. During 2007, 30,000 units, or $1.1 million par value, of theClass BUnits were redeemed by the holder in cash at the option of the Company. Noncontrolling interest relating to the units was $40.4 million and $40.3 million as of December 31, 2010 and 2009, respectively. Noncontrolling interests also includes 138,015 convertible units issued during 2006, by the Company, which were valued at approxi- mately $5.3 million, including a fair market value adjustment of $0.3 million, related to an interest acquired in an office building located in Albany, NY. These units are redeemable at the option of the holder after one year for cash or at the option of the Company for the Company’s common stock at a ratio of 1:1. The holder is entitled to a distribution equal to the dividend rate of the Company’s common stock. The Company is restricted from disposing of these assets, other than through a tax free transaction, until January 2017. 76 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued The following table presents the change in the redemption value of the Redeemable noncontrolling interests for the year ended December 31, 2010 and December 31, 2009 (amounts in thousands): Balance at January 1, Unit redemptions Fair market value amortization Other 2010 2009 $ 100,304 $ 115,853 (5,208) (14,889) 18 (54) (571) (89) Balance at December 31, $ 95,060 $ 100,304 17. FAIR VALUE DISCLOSURE OF FINANCIAL INSTRUMENTS: All financial instruments of the Company are reflected in the accompanying Consolidated Balance Sheets at amounts which, in management’s estimation based upon an interpretation of available market information and valuation methodologies, reasonably approxi- mate their fair values except those listed below, for which fair values are reflected. The valuation method used to estimate fair value for fixed-rate and variable-rate debt and noncontrolling interests relating to mandatorily redeemable noncontrolling interests associated with finite-lived subsidiaries of the Company is based on discounted cash flow analyses, with assumptions that include credit spreads, loan amounts and debt maturities. The fair values for marketable securities are based on published or securities dealers’ estimated market values. Such fair value estimates are not necessarily indicative of the amounts that would be realized upon disposition. The following are financial instruments for which the Company’s estimate of fair value differs from the carrying amounts (in thousands): Marketable Securities Notes Payable Mortgages Payable December 31, 2010 2009 Carrying Amounts Estimated Fair Value Carrying Amounts Estimated Fair Value $ 223,991 $ 224,451 $ 209,593 $ 204,006 $ 2,982,421 $ 3,162,183 $ 3,000,303 $ 3,099,139 $ 1,046,313 $ 1,120,797 $ 1,388,259 $ 1,377,224 Construction Loans Payable $ 30,253 $ 32,192 $ 45,821 $ 44,725 Mandatorily Redeemable Noncontrolling Interests (termination dates ranging from 2019–2027) $ 2,697 $ 5,462 $ 2,768 $ 5,256 The Company has certain financial instruments that must be measured under the FASB’s Fair value Measurements and Disclosures guidance, including: available for sale securities, convertible notes and derivatives. The Company currently does not have non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis. As a basis for considering market participant assumptions in fair value measurements, the FASB’s Fair value Measurements and Disclosures guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierar- chy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). 77 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hier- archy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. Available for sale securities are measured at fair value using quoted market prices and are classified within Level 1 of the valuation hierarchy. The Company has an investment in convertible notes for which it separately accounts for the conversion option as an embedded derivative. The convertible notes and conversion option are measured at fair value using widely accepted valuation techniques including pricing models. These models reflect the contractual terms of the convertible notes, including the term to maturity, and uses observable market-based inputs, including interest rate curves, implied volatilities, stock price, dividend yields and foreign exchange rates. Based on these inputs the Company has determined that its convertible notes and conversion option valuations are classified within Level 2 of the fair value hierarchy. The Company uses interest rate swaps to manage its interest rate risk. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected vari- able cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. Based on these inputs the Company has determined that its interest rate swap valuations are classified within Level 2 of the fair value hierarchy. To comply with the FASB’s Fair value Measurements and Disclosures guidance, the Company incorporates credit valuation adjust- ments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of December 31, 2010, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2010 and 2009, aggregated by the level in the fair value hierarchy within which those measurements fall. Assets and liabilities measured at fair value on a recurring basis at December 31, 2010 and 2009 (in thousands): Assets: Marketable equity securities Convertible notes Conversion option Liabilities: Balance at December 31, 2010 Level 1 Level 2 Level 3 $ 31,016 $ 172,075 $ 10,205 $ 31,016 $ — $ — $ — $ 172,075 $ — $ 10,205 $ — $ — Interest rate swaps $ 506 $ — $ 506 $ — Assets: Marketable equity securities Convertible notes Conversion option Liabilities: Balance at December 31, 2009 Level 1 Level 2 Level 3 $ 25,812 $ 140,281 $ 9,095 $ 25,812 $ — $ — $ — $ 140,281 $ — $ 9,095 $ — $ — Interest rate swaps $ 150 $ — $ 150 $ — 78 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued Assets and liabilities measured at fair value on a non-recurring basis at December 31, 2010 and 2009 are as follows (in thousands): Assets: Real estate Real estate under development Other real estate investments Mortgage and other financing receivables Balance at December 31, 2010 Level 1 Level 2 Level 3 $ 16,414 $ 22,626 $ 3,921 $ 1,405 $ — $ — $ — $ — $ — $ 16,414 $ — $ 22,626 $ — $ 3,921 $ — $ 1,405 Balance at December 31, 2009 Level 1 Level 2 Level 3 Assets: Investments and advances in real estate joint ventures Real estate under development/ redevelopment Other real estate investments $ 177,037 $ 89,939 $ 43,383 $ — $ — $ — $ — $ 177,037 $ — $ 89,939 $ — $ 43,383 During 2010, the Company recognized impairment charges of approximately $34.5 million relating to adjustments to property car- rying values, real estate under development, investments in other real estate investments and other investments. During 2009, the Company recognized impairment charges of approximately $145.0 million relating to adjustments to property carrying values, investments in other real estate joint investments and investments in real estate joint ventures. The Company’s estimated fair values relating to the above impairment assessments were based upon purchase price offers or dis- counted cash flow models that included all estimated cash inflows and outflows over a specified holding period and where applicable, any estimated debt premiums. These cash flows were comprised of unobservable inputs which included contractual rental revenues and forecasted rental revenues and expenses based upon market conditions and expectations for growth. Capitalization rates and discount rates utilized in these models were based upon observable rates that the Company believed to be within a reasonable range of current market rates for the respective properties. Based on these inputs the Company determined that its valuation in these investments was classified within Level 3 of the fair value hierarchy. 18. FINANCIAL INSTRUMENTS—DERIVATIVES AND HEDGING: The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risk through management of its core business activities. The company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company may use derivatives to manage exposures that arise from changes in interest rates, foreign currency exchange rate fluctuations and market value fluctuations of equity securities. The Company limits these risks by following established risk management policies and procedures including the use of derivatives. CASH FLOW HEDGES OF INTEREST RATE RISK— The Company, from time to time, hedges the future cash flows of its floating-rate debt instruments to reduce exposure to inter- est rate risk principally through interest rate swaps and interest rate caps with major financial institutions. The effective portion of the changes in fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Any ineffec- tive portion of the change in fair value of the derivatives is recognized directly in earnings. During the years ended December 31, 2010 and 2009, the Company had no hedge ineffectiveness. 79 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued Amounts reported in accumulated other comprehensive income related to cash flow hedges will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During 2011, the Company estimates that an additional $0.4 million will be reclassified as an increase to interest expense. As of December 31, 2010, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivatives Number of Instruments Notional (in millions) Interest Rate Caps Interest Rate Swaps 2 1 $81.9 $20.7 The fair value of these derivative financial instruments classified as asset derivatives was $0.0 million and $0.4 million for December 31, 2010 and 2009, respectively. The fair value of these derivative financial instruments classified as liability derivatives was $0.5 million as of December 31, 2010 and 2009. CREDIT-RISK-RELATED CONTINGENT FEATURES— The Company has agreements with one of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, includingdefault where repaymentof the indebtedness has not been accelerated by the lender,then the Company could also be declared in default on its derivative obligations. The Company has an agreement with a derivative counterparty that incorporates the loan covenant provisions of the Company’s indebtedness with a lender affiliate of the derivative counterparty. Failure to comply with the loan covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the agreement. 19. PREFERRED STOCK, COMMON STOCK AND CONVERTIBLE UNIT TRANSACTIONS: PREFERRED STOCK— During August 2010, the Company issued 7,000,000 Depositary Shares (the “Class H Depositary Shares”), each representing a one-hundredth fractional interest in a share of the Company’s 6.90% Class H Cumulative Redeemable Preferred Stock, $1.00 par value per share (the “Class H Preferred Stock”). Dividends on the Class H Depositary Shares are cumulative and payable quarterly in arrears at the rate of 6.90% per annum based on the $25.00 per share initial offering price, or $1.725 per annum. The Class H Depositary Shares are redeemable, in whole or part, for cash on or after August 30, 2015, at the option of the Company, at a redemption price of $25.00 per depositary share, plus any accrued and unpaid dividends thereon. The Class H Depositary Shares are not convertible or exchangeable for any other property or securities of the Company. The net proceeds received from this offering of approximately $169.2 million were used primarily to repay mortgage loans in the aggregate principal amount of approximately $150 million and for general corporate purposes. During October 2007, the Company issued 18,400,000 Depositary Shares (the “Class G Depositary Shares”), after the exercise of an over-allotment option, each representing a one-hundredth fractional interest in a share of the Company’s 7.75% Class G Cumulative Redeemable Preferred Stock, par value $1.00 per share (the “Class G Preferred Stock”). Dividends on the Class G Depositary Shares are cumulative and payable quarterly in arrears at the rate of 7.75% per annum based on the $25.00 per share initial offering price, or $1.9375 per annum. The Class G Depositary Shares are redeemable, in whole or part, for cash on or after October 10, 2012, at the option of the Company, at a redemption price of $25.00 per depositary share, plus any accrued and unpaid dividends thereon. The Class G Depositary Shares are not convertible or exchangeable for any other property or securities of the Company. The Class G Preferred Stock (represented by the Class G Depositary Shares outstanding) ranks pari passu with the Company’s Class F Preferred Stock as to voting rights, priority for receiving dividends and liquidation preference as set forth below. During June 2003, the Company issued 7,000,000 Depositary Shares (the “Class F Depositary Shares”), each such Class F Depositary Share representing a one-tenth fractional interest of a share of the Company’s 6.65% Class F Cumulative Redeemable Preferred Stock, par value $1.00 per share (the “Class F Preferred Stock”). Dividends on the Class F Depositary Shares are cumulative and payable quarterly in arrears at the rate of 6.65% per annum based on the $25.00 per share initial offering price, or $1.6625 per annum. The Class F Depositary Shares are redeemable, in whole or part, for cash on or after June 5, 2008, at the option of the Company, at a redemption price of $25.00 per Depositary Share, plus any accrued and unpaid dividends thereon. The Class F Depositary Shares are not convertible or exchangeable for any other property or securities of the Company. The Class F Preferred Stock (represented by the Class F Depositary Shares outstanding) ranks pari passu with the Company’s Class F Preferred Stock as to voting rights, priority for receiving dividends and liquidation preference as set forth below. 80 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued Voting Rights—As to any matter on which the Class F Preferred Stock may vote, including any action by written consent, each share of Class F Preferred Stock shall be entitled to 10 votes, each of which 10 votes may be directed separately by the holder thereof. With respect to each share of Preferred Stock, the holder thereof may designate up to 10 proxies, with each such proxy having the right to vote a whole number of votes (totaling 10 votes per share of Class F Preferred Stock). As a result, each Class F Depositary Share is entitled to one vote. As to any matter on which the Class G Preferred Stock may vote, including any actions by written consent, each share of the Class G Preferred Stock shall be entitled to 100 votes, each of which 100 votes may be directed separately by the holder thereof. With respect to each share of Class G Preferred Stock, the holder thereof may designate up to 100 proxies, with each such proxy having the right to vote a whole number of votes (totaling 100 votes per share of Class G Preferred Stock). As a result, each Class G Depositary Share is entitled to one vote. As to any matter on which the Class H Preferred Stock may vote, including any actions by written consent, each share of the Class H Preferred Stock shall be entitled to 100 votes, each of which 100 votes may be directed separately by the holder thereof. With respect to each share of Class H Preferred Stock, the holder thereof may designate up to 100 proxies, with each such proxy having the right to vote a whole number of votes (totaling 100 votes per share of Class G Preferred Stock). As a result, each Class H Depositary Share is entitled to one vote. Liquidation Rights—In the event of any liquidation, dissolution or winding up of the affairs of the Company, the Preferred Stock holders are entitled to be paid, out of the assets of the Company legally available for distribution to its stockholders, a liquidation preference of $250.00 Class F Preferred per share, $2,500.00 Class G Preferred per share and $2,500.00 Class H Preferred per share ($25.00 per Class F, Class G and Class H Depositary Share), plus an amount equal to any accrued and unpaid dividends to the date of payment, before any distribution of assets is made to holders of the Company’s common stock or any other capital stock that ranks junior to the Preferred Stock as to liquidation rights. COMMON STOCK— During December 2009, the Company completed a primary public stock offering of 28,750,000 shares of the Company’s com- mon stock. The net proceeds from this sale of common stock, totaling approximately $345.1 million (after related transaction costs of $0.75 million) were used to partially repay the outstanding balance under the Company’s U.S. revolving credit facility. During April 2009, the Company completed a primary public stock offering of 105,225,000 shares of the Company’s common stock. The net proceeds from this sale of common stock, totaling approximately $717.3 million (after related transaction costs of $0.7 million) were used to partially repay the outstanding balance under the Company’s U.S. revolving credit facility and for general corporate purposes. CONvERTIBLE UNITS— During 2006, the Company acquired interests in seven shopping center properties located throughout Puerto Rico. The properties were acquired through the issuance of approximately $158.6 million of non-convertible units, approximately $45.8 million of convertible units, approximately $131.2 million of non-recourse debt and $116.3 million in cash. The convertible units consist of 2,627 Class B-1 Preferred Units, par value $10,000 per unit and 640,001 Class C DownREIT Units, valued at an issuance price of $30.52 per unit. Both the Class B-1 Units and the Class C DownREIT Units are redeemable by the holder at any time after November 30, 2010, for cash, or at the Company’s option, shares of the Company’s common stock. During 2007 to 2010,2,438 units, or $24.4 million, of the Class B-1 Preferred Unitswere redeemed and 61,804 units, or $1.9 million, of the Class C DownREIT Units were redeemed under theLoan provisionof the Agreement. The Company opted to settle these units in cash. The number of shares of Common Stock issued upon conversion of the Class B-1 Preferred Units would be equal to the Class B-1 Cash Redemption Amount, as defined, which ranges from $6,000 to $14,000 per Class B-1 Preferred Unit depending on the Common Stock’s Adjusted Current Trading Price, as defined, divided by the average daily market price for the 20 consecutive trading days imme- diately preceding the redemption date. 81 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued After January 1, 2009, if the Adjusted Current Trading Price is greater than $36.62 then the Class C Cash Amount shall be an amount equal to the Adjusted Current Trading Price per Class C DownREIT Unit. If the Adjusted Current Trading Price is greater than $24.41 but less than $36.62, then the Class C Cash Amount shall be an amount equal to $30.51 per Class C DownREIT Unit, or is less than $24.41, then the Class C Cash Amount shall be an amount per Class C DownREIT Unit equal to the Adjusted Current Trading Price multiplied by 1.25. During April 2006, the Company acquired interests in two shopping center properties, located in Bay Shore and Centereach, NY, valued at an aggregate $61.6 million. The properties were acquired through the issuance of units from a consolidated subsidiary and consist of approximately $24.2 million of Redeemable Units, which are redeemable at the option of the holder, approximately $14.0 million of fixed rate Redeemable Units and the assumption of approximately $23.4 million of non-recourse mortgage debt. The Company has the option to settle the redemption of the $24.2 million redeemable units with Common Stock, at a ratio of 1:1 or in cash. From 2007 to 2010, 30,000 units, or $1.1 million par value, of theRedeemableUnits were redeemed by the holder. The Company opted to settle these units in cash. During June 2006, the Company acquired an interest in an office property, located in Albany, NY, valued at approximately $39.9 million. The property was acquired through the issuance of approximately $5.0 million of redeemable units from a consolidated subsidiary, which are redeemable at the option of the holder after one year, and the assumption of approximately $34.9 million of non-recourse mortgage debt. The Company has the option to settle the redemption with Common Stock, at a ratio of 1:1 or in cash. The amount of consideration that would be paid to unaffiliated holders of units issued from the Company’s consolidated subsidiar- ies which are not mandatorily redeemable, as if the termination of these consolidated subsidiaries occurred on December 31, 2010, is approximately $28.0 million. The Company has the option to settle such redemption in cash or shares of the Company’s common stock. If the Company exercised its right to settle in Common Stock, the unit holders would receive approximately 1.6 million shares of Common Stock. 20. SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING/FINANCING ACTIVITIES: The following schedule summarizes the non-cash investing and financing activities of the Company for the years ended December 31, 2010, 2009 and 2008 (in thousands): Acquisition of real estate interests by assumption of mortgage debt Exchange of DownREIT units for Common Stock Disposition/transfer of real estate interest by origination of mortgage debt Disposition of real estate interest by assignment of mortgage debt Issuance of Restricted Common Stock Proceeds held in escrow through sale of real estate interest Disposition of real estate through the issuance of an unsecured obligation 2010 2009 2008 $ 670 $ 577,604 $ 96,226 $ — $ — $ 80,000 $ — $ — $ 27,175 $ 81,000 $ — $ — $ 5,070 $ 3,415 $ 1,405 $ — $ — $ 11,195 $ 975 $ 1,366 $ 6,265 Investment in real estate joint venture by contribution of properties and assignment of debt $ 149,034 $ — $ — Deconsolidation of Joint venture: Decrease in real estate and other assets $ — $ — $ 55,453 Decrease in noncontrolling interest, construction loan and other liabilities $ — $ — $ 55,453 Declaration of dividends paid in succeeding period $ 89,037 $ 76,707 $ 131,097 Consolidation of Joint ventures: Increase in real estate and other assets Increase in mortgages payable $ 174,327 $ 47,368 $ 68,360 $ 144,803 $ 35,104 $ — 82 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued 21. TRANSACTIONS WITH RELATED PARTIES: The Company provides management services for shopping centers owned principally by affiliated entities and various real estate joint ventures in which certain stockholders of the Company have economic interests. Such services are performed pursuant to man- agement agreements which provide for fees based upon a percentage of gross revenues from the properties and other direct costs incurred in connection with management of the centers. Ripco Real Estate Corp. was formed in 1991 and employs approximately 40 professionals and serves numerous retailers, REITS and developers. Ripco’s business activities include serving as a leasing agent and representative for national and regional retailers including Target, Best Buy, Kohls and many others, providing real estate brokerage services and principal real estate investing. Mr. Todd Cooper, an officer and 50% shareholder of Ripco, is a son of Mr. Milton Cooper, Executive Chairman of the Board of Directors of the Company. During 2010 and 2009, the Company paid brokerage commissions of $0.7 million and $0.7 million, respectively, to Ripco for services rendered primarily as leasing agent for various national tenants in shopping center properties owned by the Company. The Company believes that the brokerage commissions paid were at or below the customary rates for such leasing services. Additionally, the Company has the following joint venture investments with Ripco. During 2005, the Company acquired three oper- ating properties and one land parcel, through joint ventures, in which the Company and Ripco each hold 50% noncontrolling interests. The Company accounts for its investment in these joint ventures under the equity method of accounting. As of December 31, 2010, these joint ventures hold three individual one-year loans aggregating $17.3 million which are scheduled to mature in 2011 and bear interest at rates ranging from LIBOR plus 1.50% to LIBOR plus 2.75% per annum. These loans are jointly and severally guaranteed by the Company and the joint venture partner. Subsequent to December 31, 2010, one of these properties, which was encumbered by an $11.0 million loan, was sold to a third party and the Company was relieved of the corresponding debt guarantee. Reference is made to Note 4, 5, 8 and 22 for additional information regarding transactions with related parties. 22 COMMITMENTS AND CONTINGENCIES: OPERATIONS— The Company and its subsidiaries are primarily engaged in the operation of shopping centers which are either owned or held under long-term leases which expire at various dates through 2095. The Company and its subsidiaries, in turn, lease premises in these centers to tenants pursuant to lease agreements which provide for terms ranging generally from 5 to 25 years and for annual minimum rentals plus incremental rents based on operating expense levels and tenants’ sales volumes. Annual minimum rentals plus incremental rents based on operating expense levels comprised approximately 99% of total revenues from rental property for each of the three years ended December 31, 2010, 2009 and 2008. The future minimum revenues from rental property under the terms of all non-cancelable tenant leases, assuming no new or rene- gotiated leases are executed for such premises, for future years are approximately as follows (in millions): 2011, $634.7; 2012, $589.8; 2013, $515.4; 2014, $439.8; 2015, $376.9; and thereafter; $1,771.5. Minimum rental payments under the terms of all non-cancelable operating leases pertaining to the Company’s shopping center portfolio for future years are approximately as follows (in millions): 2011, $11.9; 2012, $11.1; 2013, $10.6; 2014, $10.2; 2015, $9.2; and thereafter, $167.7. Captive Insurance— In October 2007, the Company formed a wholly-owned captive insurance company, Kimco Insurance Company, Inc., (“KIC”), which provides general liability insurance coverage for all losses below the deductible under our third-party policy. The Company entered into the Insurance Captive as part of its overall risk management program and to stabilize its insurance costs, manage exposure and recoup expenses through the functions of the captive program. The Company capitalized KIC in accordance with the applicable regula- tory requirements. KIC established annual premiums based on projections derived from the past loss experience of the Company’s properties. KIC has engaged an independent third party to perform an actuarial estimate of future projected claims, related deductibles and projected expenses necessary to fund associated risk management programs. Premiums paid to KIC may be adjusted based on this estimate, like premiums paid to third-party insurance companies, premiums paid to KIC may be reimbursed by tenants pursuant to specific lease terms. 83 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued Guarantees— On a select basis, the Company provides guarantees on interest bearing debt held within real estate joint ventures in which the Company has noncontrolling ownership interests. The Company is often provided with a back-stop guarantee from its partners. The Company had the following outstanding guarantees as of December 31, 2010 (amounts in millions): Name of Joint Venture InTown Suites Management, Inc. Willowick Factoria Mall RioCan Cherokee Towson Hillsborough Derby(2) Sequoia East Northport Amount of Guarantee Interest rate Maturity, with extensions Terms Type of debt $ 147.5 $ 24.5 $ 52.3 $ 4.4 $ 45.1 $ 10.0 $ 3.1 $ 11.0 $ 5.8 $ 3.2 LIBOR plus 0.375%(1) LIBOR plus 1.50% LIBOR plus 4.00% Prime plus 2.25% Floating Prime plus 1.9% LIBOR plus 3.50% LIBOR plus 1.50% LIBOR plus 2.75% LIBOR plus 0.75% LIBOR plus 1.50% 2012 2012 2012 2011 2011 2014 2012 2011 2012 2012 25% partner back-stop Unsecured credit facility 15% partner back-stop Unsecured credit facility Jointly and severally with partner Mortgage loan Jointly with 50% partner Letter of credit facility 50% partner back-stop Construction loan Jointly and severally with partner Mortgage loan Jointly and severally with partner Promissory note Jointly and severally with partner Promissory note Jointly and severally with partner Promissory note Jointly and severally with partner Promissory note (1) The joint venture obtained an interest rate swap at 5.37% on $128.0 million of this debt. The swap is designated as a cash flow hedge and is deemed highly effective; as such, adjustments to the swaps fair value are recorded at the joint venture level in other comprehensive income. (2) Subsequent to December 31, 2010, this property was sold to a third party, as such, the debt was repaid and the Company was relieved of this guarantee In addition to the guarantees above, KimPru had a term loan facility which bore interest at a rate of LIBOR plus 1.25% and was scheduled to mature in August 2010. This facility was guaranteed by the Company with a guarantee from PREI to the Company for 85% of any guaranty payment the Company was obligated to make. During July 2010, KimPru fully repaid the $287.5 million outstanding balance on this facility primarily from capital contributions provided by the partners, at their respective ownership percentages of 85% from PREI and 15% from the Company. The Company evaluated these guarantees in connection with the provisions of the FASB’s Guarantees guidance and determined that the impact did not have a material effect on the Company’s financial position or results of operations. Letters of Credit— The Company has issued letters of credit in connection with the completion and repayment guarantees for construction loans encumbering certain of the Company’s ground-up development projects and guaranty of payment related to the Company’s insurance program. These letters of credit aggregate approximately $23.9 million. During August 2009, the Company became obligated to issue a letter of credit for approximately CAD $66.0 million (approximately USD $62.7 million) relating to a tax assessment dispute with the Canada Revenue Agency (“CRA”). The letter of credit had been issued under the Company’s CAD $250 million credit facility. The dispute was in regards to three of the Company’s wholly-owned subsidiar- ies which hold a 50% co-ownership interest in Canadian real estate. However, applicable Canadian law requires that a non-resident corporation post sufficient collateral to cover a claim for taxes assessed. As such, the Company issued its letter of credit as required by the governing law. During November 2010, the Company was released from this tax assessment and as a result the letter of credit was returned to the Company. 84 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued Other— In connection with the construction of its development projects and related infrastructure, certain public agencies require posting of performance and surety bonds to guarantee that the Company’s obligations are satisfied. These bonds expire upon the completion of the improvements and infrastructure. As of December 31, 2010, there were approximately $45.3 million in performance and surety bonds outstanding. As of December 31, 2010, the Company had accrued $3.8 million in connection with a legal claim related to a previously sold ground-up development project. The Company is currently negotiating with the plaintiff to settle this claim and believes that the prob- able settlement amount will approximate the amount accrued. The Company is subject to various other legal proceedings and claims that arise in the ordinary course of business. Management believes that the final outcome of such matters will not have a material adverse effect on the financial position, results of operations or liquidity of the Company. 23. INCENTIVE PLANS: The Company maintains two equity participation plans, the Second Amended and Restated 1998 Equity Participation Plan (the “Prior Plan”) and the 2010 Equity Participation Plan (the “2010 Plan”) (collectively, the “Plans”). The Prior Plan provides for a maxi- mum of 47,000,000 shares of the Company’s common stock to be issued for qualified and non-qualified options and restricted stock grants. The 2010 Plan provides for a maximum of 5,000,000 shares of the Company’s common stock to be issued for qualified and non-qualified options, restricted stock, performance awards and other awards, plus the number of shares of common stock which are or become available for issuance under the Prior Plan and which are not thereafter issued under the Prior Plan, subject to certain conditions. Unless otherwise determined by the Board of Directors at its sole discretion, options granted under the Plans generally vest ratably over a range of three to five years, expire ten years from the date of grant and are exercisable at the market price on the date of grant. Restricted stock grants generally vest (i) 100% on the fourth or fifth anniversary of the grant, (ii) ratably over three or four years or (iii) over three years at 50% after two years and 50% after the third year. Performance share awards may provide a right to receive shares of restricted stock based on the Company’s performance relative to its peers, as defined, or based on other performance criteria as determined by the Board of Directors. In addition, the Plans provide for the granting of certain options and restricted stock to each of the Company’s non-employee directors (the “Independent Directors”) and permits such Independent Directors to elect to receive deferred stock awards in lieu of directors’ fees. The Company accounts for stock options in accordance with FASB’s Compensation—Stock Compensation guidance which requires that all share based payments to employees, including grants of employee stock options, be recognized in the statement of operations over the service period based on their fair values. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing formula. The assump- tion for expected volatility has a significant affect on the grant date fair value. volatility is determined based on the historical equity of common stock for the most recent historical period equal to the expected term of the options plus an implied volatility measure. The more significant assumptions underlying the determination of fair values for options granted during 2010, 2009 and 2008 were as follows: Weighted average fair value of options granted Weighted average risk-free interest rates Weighted average expected option lives (in years) Weighted average expected volatility Weighted average expected dividend yield Year Ended December 31, 2010 $3.82 2.40% 6.25 37.98% 4.21% 2009 $3.16 2.54% 6.25 45.81% 5.48% 2008 $5.73 3.13% 6.38 26.16% 4.33% 85 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued Information with respect to stock options under the Plan for the years ended December 31, 2010, 2009, and 2008 are as follows: Weighted-Average Exercise Price Per Share Aggregate Intrinsic value (in millions) Shares Options outstanding, January 1, 2008 15,623,454 Exercised Granted Forfeited (1,862,209) 2,903,475 (400,898) Options outstanding, December 31, 2008 16,263,822 Exercised Granted Forfeited (116,418) 1,746,000 (332,483) Options outstanding, December 31, 2009 17,560,921 Exercised Granted Forfeited (616,245) 1,776,175 (1,605,062) Options outstanding, December 31, 2010 17,115,789 Options exercisable (fully vested)— December 31, 2008 December 31, 2009 December 31, 2010 9,011,677 10,869,336 11,712,900 $ 29.39 $ 20.59 $ 37.29 $ 38.64 $ 31.58 $ 12.79 $ 11.58 $ 33.57 $ 29.69 $ 13.73 $ 15.63 $ 33.68 $ 28.32 $ 26.00 $ 28.36 $ 29.74 $ 133.7 $ 7.6 $ 3.4 $ 18.0 $ 7.6 $ 0.0 $ 5.8 The exercise prices for options outstanding as of December 31, 2010, range from $7.22 to $53.14 per share. The Company estimates forfeitures based on historical data. The weighted-average remaining contractual life for options outstanding as of December 31, 2010, was approximately 5.8 years. The weighted-average remaining contractual term of options currently exercisable as of December 31, 2010, was approximately 4.7 years. Options to purchase 5,874,704, 2,989,805 and 5,031,718, shares of the Company’s common stock were available for issuance under the Plan at December 31, 2010, 2009 and 2008, respectively. As of December 31, 2010, the Company had 5,402,889 options expected to vest, with a weighted-average exercise price per share of $25.61 and an aggregate intrinsic value of $7.4 million. Cash received from options exercised under the Plan was approximately $8.5 million, $1.5 million and $38.3 million, for the years ended December 31, 2010, 2009 and 2008, respectively. The total intrinsic value of options exercised during 2010, 2009 and 2008 was approximately $2.1 million, $0.2 million, and $35.0 million, respectively. The Company recognized expenses associated with its equity awards of approximately $14.2 million, $13.3 million, and $12.9 million, for the years ended December 31, 2010, 2009 and 2008, respectively. As of December 31, 2010, the Company had approximately $24.4 million of total unrecognized compensation cost related to unvested stock compensation granted under the Company’s Plan. That cost is expected to be recognized over a weighted-average period of approximately 1.8 years. The Company maintains a 401(k) retirement plan covering substantially all officers and employees, which permits participants to defer up to the maximum allowable amount determined by the Internal Revenue Service of their eligible compensation. This deferred compensation, together with Company matching contributions, which generally equal employee deferrals up to a maximum of 5% of their eligible compensation (capped at $170,000), is fully vested and funded as of December 31, 2010. The Company’s contributions to the plan were approximately $2.1 million, $1.8 million, and $1.5 million for the years ended December 31, 2010, 2009 and 2008, respectively. Due to declining economic conditions resulting in the lack of transactional activity within the real estate industry as a whole, the Company had accrued approximately $3.6 million at December 31, 2008, relating to severance costs associated with employees that had been terminated during January 2009. Also, as a result of continued economic decline, the Company recorded an additional accrual of approximately $3.6 million for severance costs associated with employee terminations during 2009. 86 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued 24. INCOME TAXES: The Company elected to qualify as a REIT in accordance with the Code commencing with its taxable year which began January 1, 1992. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its adjusted REIT taxable income to its stockholders. It is management’s intention to adhere to these requirements and maintain the Company’s REIT status. As a REIT, the Company generally will not be subject to corporate federal income tax, provided that distributions to its stockholders equal at least the amount of its REIT taxable income as defined under the Code. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal income taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for four subsequent taxable years. Even if the Company qualifies for taxation as a REIT, the Company is subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed taxable income. In addition, taxable income from non-REIT activities managed through taxable REIT subsidiaries is subject to federal, state and local income taxes. The Company is also subject to local taxes on certain Non-U.S. investments. RECONCILIATION BETWEEN GAAP NET INCOME AND FEDERAL TAXABLE INCOME: The following table reconciles GAAP net income/(loss) to taxable income for the years ended December 31, 2010, 2009 and 2008 (in thousands): 2010 (Estimated) 2009 (Actual) 2008 (Actual) GAAP net income/(loss) attributable to the Company $ 142,868 $ (3,942) $ 249,902 Less: GAAP net loss/(income) of taxable REIT subsidiaries GAAP net income from REIT operations(a) Net book depreciation in excess of tax depreciation Deferred/prepaid/above and below market rents, net Book/tax differences from non-qualified stock options Book/tax differences from investments in real estate joint ventures Book/tax difference on sale of property valuation adjustment of foreign currency contracts Book adjustment to property carrying values and marketable equity securities Other book/tax differences, net Adjusted REIT taxable income 13,920 156,788 20,577 67,844 (9,002) 63,902 240,900 25,145 19,249 (19,206) (21,863) (17,521) 9,853 51,448 11,128 53,152 (32,942) (18,666) (15,994) 55,047 5,617 — 28,843 (7,482) — (35) 107,468 (6,250) 71,638 10,769 $ 207,879 $ 214,016 $ 369,670 Certain amounts in the prior periods have been reclassified to conform to the current year presentation, in the table above. (a) All adjustments to “GAAP net income/(loss) from REIT operations” are net of amounts attributable to noncontrolling interest and taxable REIT subsidiaries. CASH DIvIDENDS PAID AND DIvIDENDS PAID DEDUCTIONS (in thousands): For the years ended December 31, 2010, 2009 and 2008 cash dividends paid exceeded the dividends paid deduction and amounted to $306,964, $331,024, and $469,024, respectively. 87 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued CHARACTERIZATION OF DISTRIBUTIONS: The following characterizes distributions paid for the years ended December 31, 2010, 2009 and 2008, (in thousands): 2010 2009 2008 Preferred F Dividends Ordinary income $ 11,638 100% $ 11,638 100% $ 9,079 Capital gain — —% — —% 2,559 78% 22% $ 11,638 100% $ 11,638 100% $ 11,638 100% Preferred G Dividends Ordinary income $ 35,650 100% $ 35,650 100% $ 28,197 Capital gain — —% — —% 7,948 78% 22% $ 35,650 100% $ 35,650 100% $ 36,145 100% Common Dividends Ordinary income $ 181,773 70% $ 204,291 72% $ 290,656 Capital gain — —% — —% Return of capital 77,903 30% 79,445 28% 80,036 50,549 69% 19% 12% $ 259,676 100% $ 283,736 100% $ 421,241 100% Total dividends distributed $ 306,964 $ 331,024 $ 469,024 TAXABLE REIT SUBSIDIARIES AND TAXABLE ENTITIES: The Company is subject to federal, state and local income taxes on the income from its TRS activities, which include Kimco Realty Services (“KRS”), a wholly owned subsidiary of the Company, and the consolidated entities of FNC, and Blue Ridge Real Estate Company/ Big Boulder Corporation. The Company is also subject to local taxes on certain Non-U.S investments. Income taxes have been provided for on the asset and liability method as required by the FASB’s Income Tax guidance. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and the tax basis of taxable assets and liabilities. The Company’s taxable income for book purposes and provision for income taxes relating to the Company’s TRS and taxable entities which have been consolidated for accounting reporting purposes, for the years ended December 31, 2010, 2009, and 2008, are summarized as follows (in thousands): Loss before income taxes—U.S. $ (23,658) $ (104,231) $ (3,972) 2010 2009 2008 Benefit for income taxes: Federal State and local Total tax benefit—U.S. 8,618 1,120 9,738 35,254 1,133 36,387 11,026 1,948 12,974 GAAP net (loss)/income from taxable REIT subsidiaries $ (13,920) $ (67,844) $ 9,002 Income/(loss) before taxes—Non-U.S. $ 102,426 $ 106,269 $ (28,169) Non-U.S. tax provision $ 13,241 $ 6,475 $ 2,597 88 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued The Company’s deferred tax assets and liabilities at December 31, 2010 and 2009, were as follows (in thousands): 2010 2009 Deferred tax assets: Tax/GAAP basis differences $ 80,539 $ 70,198 Net operating losses Related party deferred loss Tax credit carryforwards 43,700 55,613 7,275 5,240 — 6,319 Non-U.S. tax/GAAP basis differences 25,375 22,698 valuation allowance Total deferred tax assets Deferred tax liabilities—U.S. (33,783) (33,783) 128,346 121,045 (10,108) (14,005) Deferred tax liabilities—Non-U.S. (15,619) (13,521) Net deferred tax assets $ 102,619 $ 93,519 As of December 31, 2010, the Company had net deferred tax assets of approximately $102.6 million. This net deferred tax asset includes approximately $9.9 million for the tax effect of net operating losses, (“NOL”) after the impact of a valuation allowance of $33.8 million, relating to FNC. The partial valuation allowance on the FNC deferred tax asset reduces the deferred tax asset related to NOLs to the amount that is more likely than not realizable. The Company based the valuation allowance related to FNC on pro- jected taxable income and the expected utilization of remaining net operating loss carryforwards. Additionally, FNC has approximately $3.2 million of deferred tax assets relating to differences in GAAP book basis and tax basis of accounting. The Company has foreign net deferred tax assets of $9.8 million, relating to its operations in Canada and Mexico due to differences in GAAP book basis and tax basis of accounting. The Company’s remaining net deferred tax asset of approximately $79.7 million primarily relates to KRS and consists of (i) $10.1 million in deferred tax liabilities, (ii) $7.3 million related to partially deferred losses, (iii) $5.2 million in tax credit carryforwards, $3.9 million of which expire from 2027 through 2030 and $1.3 million that do not expire and (iv) $77.3 million primarily relating to differences in GAAP book basis and tax basis of accounting for (i) real estate assets, (ii) real estate joint ventures, (iii) other real estate investments, and (iv) asset impairments charges that have been recorded for book purposes but not yet recognized for tax purposes and (v) other miscellaneous deductible temporary differences. As of December 31, 2010, the Company determined that no valuation allowance was needed against the $79.7 million net deferred tax asset within KRS. This determination was based upon the Company’s analysis of both positive evidence, which includes future projected income for KRS and negative evidence, which consists of a three year cumulative pre-tax book loss of approximately $105.1 million for KRS. The cumulative loss was primarily the result of significant impairment charges taken by KRS during 2010 and 2009 of approximately $22.5 million and approximately $91.7 million, respectively. The Company believes, when evaluating KRS’s deferred tax assets, special consideration should be given to the unique relationship between the Company as a REIT and KRS as a taxable REIT subsidiary. This relationship exists primarily to protect the REIT’s qualifi- cation under the Code by permitting, within certain limits, the REIT to engage in certain business activities in which the REIT cannot directly participate. As such, the REIT controls which and when investments are held in, or distributed or sold from, KRS. This relation- ship distinguishes a REIT and taxable REIT subsidiary from an enterprise that operates as a single, consolidated corporate taxpayer. The Company will continue through this structure to operate certain business activities in KRS. KRS has a strong earnings history exclusive of the impairment charges. Since 2001, KRS has produced taxable income in each year through 2008. Over the three year period prior to its first tax loss year (2009), KRS generated approximately $59.4 million of taxable income cumulatively, before net operating loss carrybacks. KRS estimates that it will report taxable income for its 2010 tax year. KRS’s activities historically consisted of a merchant building business for the ground-up development of shopping center properties and subsequent sale upon completion. KRS also made investments which included redevelopment properties and joint venture invest- ments such as KRS’s investment in the Albertson’s joint venture. During 2009, the Company changed its merchant building strategy from a sale upon completion strategy to a long-term hold strategy for its remaining merchant building projects. In addition, KRS still holds its interest in the Albertson’s joint venture. 89 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued With the Company’s change in its merchant building strategy, future business operations at KRS do not support the previous capital structure. To that extent, the Company recapitalized and KRS paid down approximately $369 million of intercompany loans during 2010. As of December 31, 2010, KRS’s intercompany payable was approximately $195 million. KRS committed to maintain this reduced leverage at its current level. In addition, the Company committed to transfer a portion of the Company’s property management busi- ness to KRS, which is expected to generate approximately $2 million of income annually. To determine future projected income, the Company scheduled KRS’s pre-tax book income and taxable income over a twenty year period taking into account its continuing operations (“Core Earnings”). Core Earnings consist of estimated net operating income for properties currently in service and generating rental income from existing tenants. Major lease turnover is not expected in these prop- erties as these properties were generally constructed and leased within the past three years. To allow the forecast to remain objective and verifiable, no income growth was forecasted for any other aspect of KRS’s continuing business activities including its investment in the Albertson’s joint venture. The Company also included future known events in its projected income forecast, such as the maturity of certain mortgages and construction loans, the reduced level of intercompany debt, and future property management income, each of which will increase future book and taxable income. In addition, the Company can employ additional strategies to realize KRS’s deferred tax assets including transferring a greater portion of its property management business, sale of certain built-in gain assets, and further reducing intercompany debt. The Company’s projection of KRS’s future taxable income, utilizing the assumptions above with respect to Core Earnings, reduc- tions in interest expense and future management fee income, net of related expenses, generates approximately $66.0 million after the reversal of approximately $77.7 million of deductible temporary differences (tax effected). As a result of this analysis the Company has determined it is more likely than not that KRS’s net deferred tax asset of $79.7 million will be realized and therefore, no valuation allowance is needed at December 31, 2010. If future income projections do not occur as forecasted or the Company incurs additional impairment losses, the Company will reevaluate the need for a valuation allowance. Deferred tax assets and deferred tax liabilities are included in the caption Other assets and Other liabilities on the accompanying Consolidated Balance Sheets at December 31, 2010 and 2009. Operating losses and the valuation allowance are primarily due to the Company’s consolidation of FNC for accounting and reporting purposes. At December 31, 2010, FNC had approximately $112.1 million of NOL carryforwards that expire from 2022 through 2025, with a tax value of approximately $43.7 million. At December 31, 2009, FNC had approximately $117.5 million of NOL carryforwards, with a tax value of approximately $45.8 million. A valuation allowance of $33.8 million has been established for a portion of these deferred tax assets. The Company will continue to assess this valuation allowance to determine if adjustments are needed. (Benefit)/provision differ from the amount computed by applying the statutory federal income tax rate to taxable income before income taxes were as follows (in thousands): 2010 2009 2008 Federal benefit at statutory tax rate (35%) $ (8,280) $ (36,481) $ (1,390) State and local taxes, net of federal benefit Other valuation allowance decrease (728) (730) — (6,775) 6,869 — (258) (8,283) (3,043) $ (9,738) $ (36,387) $ (12,974) UNCERTAIN TAX POSITIONS: The Company is subject to income tax in certain jurisdictions outside the U.S., principally Canada and Mexico. The statute of limitations on assessment of tax varies from three to seven years depending on the jurisdiction and tax issue. Tax returns filed in each jurisdiction are subject to examination by local tax authorities. The Company is currently under audit by the Canadian Revenue Agency, Mexican Tax Authority and the IRS. Resolutions of these audits are not expected to be material to our financial statements. The Company does not believe that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months. 90 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued The liability for uncertain tax benefits principally consists of estimated foreign, federal and state income tax liabilities and includes accrued interest and penalties of less than $0.1 million at December 31, 2010 and 2009. The aggregate changes in the balance of unrec- ognized tax benefits were as follows (in thousands): Balance, beginning of year(1) 2010 $ 13,090 Increases for tax positions related to current year 2,638 Decrease for audit settlements Reductions due to lapsed statute of limitations Balance, end of year (93) (727) $ 14,908 (1) The Company partially reclassed a net foreign deferred tax asset, including a valuation allowance, from other assets to an uncertain tax position liability, which is classified within other liabilities. 25. SUPPLEMENTAL FINANCIAL INFORMATION: The following represents the results of operations, expressed in thousands except per share amounts, for each quarter during the years 2010 and 2009: Revenues from rental property(1) $ 213,492 $ 210,624 $ 210,227 $ 215,206 Net income attributable to the Company $ 50,836 $ 24,611 $ 30,333 $ 37,088 2010 (Unaudited) Mar. 31 June 30 Sept. 30 Dec. 31 Net income per common share: Basic Diluted $ $ 0.10 0.10 $ $ 0.03 0.03 $ $ 0.04 0.04 $ $ 0.05 0.05 2009 (Unaudited) Mar. 31 June 30 Sept. 30 Dec. 31 Revenues from rental property(1) $ 192,188 $ 187,815 $ 189,956 $ 203,464 Net income/(loss) attributable to the Company $ 38,424 $ (134,651) $ 40,108 $ 52,177 Net income/(loss) per common share: Basic Diluted $ $ 0.10 0.10 $ $ (0.40) $ (0.40) $ 0.07 0.07 $ $ 0.11 0.11 (1) All periods have been adjusted to reflect the impact of operating properties sold during 2010 and 2009 and properties classified as held- for-sale as of December 31, 2010, which are reflected in the caption Discontinued operations on the accompanying Consolidated Statements of Operations. Accounts and notes receivable in the accompanying Consolidated Balance Sheets are net of estimated unrecoverable amounts of approximately $15.7 million and $12.2 million of billed accounts receivable and $4.9 million and $10.1 million for accrued unbilled com- mon area maintenance and real estate recoveries at December 31, 2010 and 2009, respectively. 26. PRO FORMA FINANCIAL INFORMATION (UNAUDITED): As discussed in Notes 5, 6 and 7, the Company and certain of its subsidiaries acquired and disposed of interests in certain operat- ing properties during 2010. The pro forma financial information set forth below is based upon the Company’s historical Consolidated Statements of Operations for the years ended December 31, 2010 and 2009, adjusted to give effect to these transactions at the begin- ning of 2009. 91 KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued The pro forma financial information is presented for informational purposes only and may not be indicative of what actual results of operations would have been had the transactions occurred at the beginning of 2009, nor does it purport to represent the results of operations for future periods. (Amounts presented in millions, except per share figures.) Revenues from rental property Net income Net income/(loss) attributable to the Company’s common shareholders Net income/(loss) attributable to the Company’s common shareholders per common share: Basic Diluted Year ended December 31, 2010 2009 $ 863.1 $ 792.7 $ 144.0 $ 10.7 $ 73.7 $ (34.7) $ 0.18 $ (0.10) $ 0.18 $ (0.10) 92 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE II—VALUATION AND qUALIFYING ACCOUNTS For Years Ended December 31, 2010, 2009 and 2008 (in thousands) Year Ended December 31, 2010 Allowance for uncollectable accounts Allowance for deferred tax asset Year Ended December 31, 2009 Allowance for uncollectable accounts Allowance for deferred tax asset Year Ended December 31, 2008 Allowance for uncollectable accounts Allowance for deferred tax asset Balance at beginning of period Charged to expenses Adjustments to valuation accounts Deductions Balance at end of period $ 12,200 $ 33,783 $ 9,000 $ 33,783 $ 9,000 $ 36,826 $ 10,043 $ — $ 4,579 $ 34,800 $ 3,066 $ — $ — $ — $ — $ (34,800) $ — $ (3,043) $ (6,531) $ — $ (1,379) $ — $ (3,066) $ — $ 15,712 $ 33,783 $ 12,200 $ 33,783 $ 9,000 $ 33,783 93 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2010 PROPERTIES LAND BUILDING & IMPROVEMENT SUBSEqUENT TO ACqUISITION LAND BUILDING & IMPROVEMENT TOTAL ACCUMULATED DEPRECIATION INITIAL COST TOTAL COST, NET OF ACCUMULATED DEPRECIATION ENCUMBRANCES DATE OF CONSTRUCTION DATE OF ACqUISITION 2006 2007 2004 2008 2005 2006 2004 2008 KDI—GLENN SQUARE 3,306,779 — 43,544,452 3,306,779 43,544,452 46,851,231 1,153,962 45,697,269 KDI—THE GROvE 18,951,763 6,403,809 30,753,492 16,395,647 39,713,417 56,109,064 1,047,328 55,061,736 KDI—CHANDLER AUTO MALLS 9,318,595 — (4,371,892) 4,603,149 343,554 4,946,703 DEv—EL MIRAGE 6,786,441 503,987 130,064 6,786,441 634,051 7,420,492 — — 4,946,703 7,420,492 TALAvI TOWN CENTER 8,046,677 17,291,542 — 8,046,677 17,291,542 25,338,218 6,981,553 18,356,665 KIMCO MESA 679, INC. AZ 2,915,000 11,686,291 1,099,887 2,915,000 12,786,178 15,701,178 4,210,212 11,490,966 MESA PAvILLIONS 6,060,018 35,955,005 — 6,060,018 35,955,005 42,015,023 1,783,860 40,231,163 MESA RIvERvIEW 15,000,000 KDI-ANA MARIANA POWER CENTER 30,043,645 — — 135,411,005 307,992 150,103,013 150,411,005 17,566,385 132,844,620 3,090,052 30,131,356 3,002,341 33,133,697 — 33,133,697 METRO SQUARE 4,101,017 16,410,632 603,390 4,101,017 17,014,022 21,115,039 5,980,166 15,134,873 HAYDEN PLAZA NORTH 2,015,726 4,126,509 5,463,097 2,015,726 9,589,606 11,605,332 2,838,829 8,766,503 PHOENIX, COSTCO 5,324,501 21,269,943 1,199,155 4,577,869 23,215,730 27,793,599 4,899,172 22,894,428 PHOENIX 2,450,341 9,802,046 821,993 2,450,341 10,624,039 13,074,380 3,803,781 9,270,599 PINACLE PEAK— N. CANYON RANCH 1,228,000 8,774,694 — 1,228,000 8,774,694 10,002,694 683,801 9,318,894 3,849,728 KDI—ASANTE RETAIL CENTER 8,702,635 3,405,683 2,878,367 11,039,472 3,947,213 14,986,684 DEv—SURPRISE II 4,138,760 94,572 1,035 4,138,760 95,607 4,234,367 — — 14,986,684 4,234,367 ALHAMBRA, COSTCO 4,995,639 19,982,557 81,490 4,995,639 20,064,047 25,059,686 6,550,987 18,508,699 ANGEL’S CAMP TOWN CENTER 1,000,000 6,463,129 — 1,000,000 6,463,129 7,463,129 247,683 7,215,446 MADISON PLAZA 5,874,396 23,476,190 309,125 5,874,396 23,785,316 29,659,711 7,711,257 21,948,454 CHULA vISTA, COSTCO 6,460,743 25,863,153 11,674,917 6,460,743 37,538,070 43,998,813 10,054,791 33,944,023 CORONA HILLS, COSTCO 13,360,965 53,373,453 4,573,671 13,360,965 57,947,124 71,308,089 18,356,720 52,951,369 EAST AvENUE MARKET PLACE 1,360,457 3,055,127 258,550 1,360,457 3,313,677 4,674,134 1,809,982 2,864,152 1,900,737 LABAND vILLAGE SC 5,600,000 13,289,347 (21,602) 5,607,237 13,260,509 18,867,746 3,435,389 15,432,357 8,537,846 CUPERTINO vILLAGE 19,886,099 46,534,919 4,476,512 19,886,099 51,011,431 70,897,530 13,045,274 57,852,256 35,155,540 CHICO CROSSROADS 9,975,810 30,534,524 687,461 9,987,652 31,210,143 41,197,795 4,564,028 36,633,767 25,102,125 CORONA HILLS MARKETPLACE 9,727,446 24,778,390 51,708 9,727,446 24,830,098 34,557,544 4,750,202 29,807,342 ELK GROvE vILLAGE 1,770,000 7,470,136 667,860 1,770,000 8,137,995 9,907,995 3,969,202 5,938,792 2,006,542 WATERMAN PLAZA 784,851 1,762,508 (110,571) 784,851 1,651,937 2,436,788 802,787 1,634,001 1,373,091 RIvER PARK SHOPPING CENTER 4,324,000 18,018,653 — 4,324,000 18,018,653 22,342,653 845,116 21,497,537 GOLD COUNTRY CENTER 3,272,212 7,864,878 37,686 3,278,290 7,896,486 11,174,776 1,555,554 9,619,222 7,068,229 LA MIRADA THEATRE CENTER 8,816,741 35,259,965 (7,723,889) 6,888,680 29,464,137 36,352,817 9,436,120 26,916,697 KENNETH HAHN PLAZA 4,114,863 7,660,855 — 4,114,863 7,660,855 11,775,718 675,851 11,099,868 6,000,000 YOSEMITE NORTH SHOPPING CTR 2,120,247 4,761,355 564,711 2,120,247 5,326,066 7,446,312 2,878,043 4,568,269 RALEY’S UNION SQUARE 1,185,909 2,663,149 (135,873) 1,185,909 2,527,276 3,713,186 1,219,077 2,494,108 NOvATO FAIR S.C. 9,259,778 15,599,790 — 9,259,778 15,599,790 24,859,568 1,074,288 23,785,280 13,055,956 SOUTH NAPA MARKET PLACE 1,100,000 22,159,086 6,838,973 1,100,000 28,998,059 30,098,059 7,479,305 22,618,753 PLAZA DI NORTHRIDGE 12,900,000 40,574,842 2,813,099 12,900,000 43,387,941 56,287,941 10,099,626 46,188,315 26,524,059 POWAY CITY CENTRE 5,854,585 13,792,470 7,701,699 7,247,814 20,100,941 27,348,754 4,434,313 22,914,442 REDWOOD CITY 2,552,000 6,215,168 — 2,552,000 6,215,168 8,767,168 190,366 8,576,802 5,615,770 NORTH POINT PLAZA 1,299,733 2,918,760 246,929 1,299,733 3,165,689 4,465,422 1,720,819 2,744,603 RED BLUFF SHOPPING CTR 1,410,936 3,168,485 (125,876) 1,410,936 3,042,609 4,453,546 1,455,094 2,998,451 2007 1998 2009 1998 1998 1998 1997 2009 1998 2009 1998 1998 1998 2006 2008 2006 2008 2007 2006 2006 2009 2008 1998 2010 2006 2006 2009 2006 2005 2005 2009 2006 2006 94 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2010 INITIAL COST LAND BUILDING & IMPROVEMENT SUBSEqUENT TO ACqUISITION LAND BUILDING & IMPROVEMENT TOTAL ACCUMULATED DEPRECIATION TOTAL COST, NET OF ACCUMULATED DEPRECIATION ENCUMBRANCES DATE OF CONSTRUCTION DATE OF ACqUISITION 3,020,883 7,811,339 37,443 3,200,516 7,669,149 10,869,665 2,220,622 8,649,043 6,803,997 3,403,724 13,625,899 1,420,417 3,403,724 15,046,316 18,450,040 3,984,917 14,465,123 PROPERTIES TYLER STREET THE CENTRE SANTA ANA, HOME DEPOT 4,592,364 18,345,257 SAN/DIEGO CARMEL MOUNTAIN 5,322,600 8,873,991 — — 4,592,364 18,345,257 22,937,622 5,967,360 16,970,261 5,322,600 8,873,991 14,196,591 568,152 13,628,438 FULTON MARKET PLACE 2,966,018 6,920,710 906,604 2,966,018 7,827,313 10,793,332 2,056,203 8,737,129 MARIGOLD SC 15,300,000 25,563,978 3,382,398 15,300,000 28,946,376 44,246,376 9,613,151 34,633,225 ELvERTA CROSSING 3,520,333 6,715,076 (1,120,333) 2,400,000 6,715,076 9,115,076 1,710,117 7,404,959 BLACK MOUNTAIN vILLAGE 4,678,015 11,913,344 35,697 4,678,015 11,949,041 16,627,056 2,837,966 13,789,090 TRUCKEE CROSSROADS 2,140,000 8,255,753 477,340 2,140,000 8,733,093 10,873,093 4,590,249 6,282,844 3,651,341 PARK PLACE 7,871,396 7,763,171 — 7,871,396 7,763,171 15,634,567 1,518,628 14,115,939 WESTLAKE SHOPPING CENTER 16,174,307 64,818,562 92,157,277 16,174,307 156,975,839 173,150,145 21,191,508 151,958,638 vILLAGE ON THE PARK 2,194,463 8,885,987 5,565,248 2,194,463 14,451,235 16,645,698 3,667,360 12,978,338 AURORA QUINCY 1,148,317 4,608,249 865,714 1,148,317 5,473,963 6,622,280 1,610,037 5,012,244 AURORA EAST BANK 1,500,568 6,180,103 741,264 1,500,568 6,921,367 8,421,935 2,300,798 6,121,137 SPRING CREEK COLORADO 1,423,260 5,718,813 1,459,557 1,423,260 7,178,370 8,601,630 2,065,209 6,536,421 DENvER WEST 38TH STREET 161,167 646,983 — 161,167 646,983 808,150 214,258 593,892 ENGLEWOOD PHAR MOR 805,837 3,232,650 238,370 805,837 3,471,020 4,276,857 1,128,946 3,147,911 AURORA QUINCY 1,148,317 4,608,249 865,714 1,148,317 5,473,963 6,622,280 1,610,037 5,012,244 AURORA EAST BANK 1,500,568 6,180,103 741,264 1,500,568 6,921,367 8,421,935 2,300,798 6,121,137 SPRING CREEK COLORADO 1,423,260 5,718,813 1,459,557 1,423,260 7,178,370 8,601,630 2,065,209 6,536,421 DENvER WEST 38TH STREET 161,167 646,983 — 161,167 646,983 808,150 214,258 593,892 ENGLEWOOD PHAR MOR 805,837 3,232,650 238,370 805,837 3,471,020 4,276,857 1,128,946 3,147,911 FORT COLLINS 1,253,497 7,625,278 1,599,608 1,253,497 9,224,886 10,478,382 2,236,255 8,242,127 2,280,789 HERITAGE WEST 1,526,576 6,124,074 218,260 1,526,576 6,342,334 7,868,910 2,092,897 5,776,013 WEST FARM SHOPPING CENTER 5,805,969 23,348,024 661,091 5,805,969 24,009,115 29,815,084 7,687,627 22,127,457 N. HAvEN, HOME DEPOT 7,704,968 30,797,640 771,317 7,704,968 31,568,957 39,273,925 10,071,233 29,202,692 WATERBURY 2,253,078 9,017,012 705,284 2,253,078 9,722,296 11,975,374 4,116,147 7,859,227 DOvER ELSMERE 122,741 66,738 5,026,014 3,024,375 2,191,119 5,215,494 6,573 5,208,920 — 3,185,642 1,149,460 — 4,335,102 4,335,102 3,185,642 1,149,461 1979 ALTAMONTE SPRINGS 770,893 3,083,574 (1,231,524) 538,796 2,084,146 2,622,943 738,556 1,884,386 AUBURNDALE BOCA RATON BAYSHORE GARDENS, BRADENTON FL 751,315 — — 751,315 — 751,315 — 751,315 573,875 2,295,501 1,710,546 733,875 3,846,047 4,579,922 1,805,592 2,774,330 2,901,000 11,738,955 804,762 2,901,000 12,543,717 15,444,717 4,106,373 11,338,344 BRADENTON PLAZA 527,026 765,252 161,423 527,026 926,675 1,453,701 81,485 1,372,215 SHOPPES @ MT. CARMEL 204,432 937,457 — 204,432 937,457 1,141,890 16,355 1,125,535 CORAL SPRINGS 710,000 2,842,907 3,886,302 710,000 6,729,209 7,439,209 2,293,671 5,145,538 CORAL SPRINGS 1,649,000 6,626,301 425,546 1,649,000 7,051,847 8,700,847 2,373,534 6,327,312 CURLEW CROSSING S.C. 5,315,955 12,529,467 1,346,836 5,315,955 13,876,303 19,192,258 2,545,734 16,646,524 CLEARWATER FL 3,627,946 918,466 (269,494) 2,174,938 2,101,980 4,276,918 140,798 4,136,119 EAST ORLANDO 491,676 1,440,000 2,640,506 1,007,882 3,564,301 4,572,182 2,170,962 2,401,221 FERN PARK 225,000 902,000 6,066,629 225,000 6,968,629 7,193,629 2,681,695 4,511,934 1971 1968 2008 1999 1998 2009 2005 2005 2009 2007 2006 2009 2002 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 1998 2000 1998 1998 1998 1993 2003 1995 2009 1992 1998 2005 2009 1994 1997 2005 2007 FT.LAUDERDALE/CYPRESS CREEK 14,258,760 28,042,390 — 14,258,760 28,042,390 42,301,150 1,403,416 40,897,734 23,851,110 2009 95 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2010 INITIAL COST LAND BUILDING & IMPROVEMENT SUBSEqUENT TO ACqUISITION LAND BUILDING & IMPROVEMENT TOTAL ACCUMULATED DEPRECIATION TOTAL COST, NET OF ACCUMULATED DEPRECIATION ENCUMBRANCES DATE OF CONSTRUCTION DATE OF ACqUISITION PROPERTIES OAKWOOD BUSINESS CTR- BLDG 1 6,792,500 18,662,565 — 6,792,500 18,662,565 25,455,065 937,560 24,517,505 9,428,186 REGENCY PLAZA 2,410,000 9,671,160 508,023 2,410,000 10,179,183 12,589,183 3,003,922 9,585,260 SHOPPES AT AMELIA CONCOURSE AvENUES WALKS 7,600,000 26,984,546 — — 8,608,581 1,138,216 15,070,365 16,208,581 524,878 15,683,703 49,805,291 33,225,306 43,564,531 76,789,837 — 76,789,837 RIvERPLACE SHOPPING CTR. 7,503,282 31,011,027 — 7,503,282 31,011,027 38,514,309 394,591 38,119,718 BEACHES & HODGES 1,033,058 — (390,214) 642,844 — 642,844 — 642,844 KISSIMMEE 1,328,536 5,296,652 (3,901,409) 1,328,536 1,395,243 2,723,779 407,556 2,316,223 LAUDERDALE LAKES 342,420 2,416,645 3,330,621 342,420 5,747,266 6,089,686 4,032,407 2,057,280 MERCHANTS WALK 2,580,816 10,366,090 1,281,829 2,580,816 11,647,919 14,228,735 2,929,315 11,299,420 LARGO LEESBURG 293,686 792,119 1,620,990 293,686 2,413,109 2,706,795 1,864,006 842,789 — 171,636 193,651 — 365,287 365,287 299,578 65,709 LARGO EAST BAY 2,832,296 11,329,185 2,013,967 2,832,296 13,343,152 16,175,448 7,167,331 9,008,117 LAUDERHILL THE GROvES LAKE WALES MELBOURNE GROvE GATE 1,002,733 2,602,415 12,547,372 1,774,443 14,378,077 16,152,520 8,289,307 7,863,213 1,676,082 6,533,681 1,071,147 2,606,246 6,674,664 9,280,910 1,545,612 7,735,298 601,052 — — 601,052 — 601,052 — 601,052 — 1,754,000 2,672,044 — 4,426,044 4,426,044 2,600,136 1,825,908 365,893 1,049,172 1,207,100 365,893 2,256,272 2,622,165 1,824,704 797,462 CHEvRON OUTPARCEL 530,570 1,253,410 — 530,570 1,253,410 1,783,980 — 1,783,980 2003 2005 1968 1968 1969 1974 1968 1968 NORTH MIAMI MILLER ROAD MARGATE MT. DORA 732,914 4,080,460 10,942,858 732,914 15,023,319 15,756,232 7,261,199 8,495,034 6,377,402 1,138,082 4,552,327 1,892,708 1,138,082 6,445,036 7,583,117 5,283,284 2,299,833 2,948,530 11,754,120 7,910,575 2,948,530 19,664,695 22,613,225 6,474,007 16,139,218 1,011,000 4,062,890 423,237 1,011,000 4,486,127 5,497,127 1,460,830 4,036,297 KENDALE LAKES PLAZA 18,491,461 28,496,001 (3,129,234) 15,362,227 28,496,001 43,858,228 1,363,462 42,494,766 16,228,789 PLANTATION CROSSING 7,524,800 MILTON, FL 1,275,593 — — 10,778,436 7,153,784 11,149,452 18,303,236 543,827 17,759,409 2005 — 1,275,593 — 1,275,593 — 1,275,593 FLAGLER PARK 26,162,980 80,737,041 1,536,225 26,162,980 82,273,267 108,436,247 10,298,181 98,138,066 26,245,460 ORLANDO SODO S.C. 923,956 3,646,904 3,136,371 1,172,119 6,535,112 7,707,231 2,268,972 5,438,259 — 68,139,271 5,914,301 — 74,053,571 74,053,571 1,782,197 72,271,375 RENAISSANCE CENTER 9,104,379 36,540,873 5,059,585 9,122,758 41,582,080 50,704,837 14,958,358 35,746,479 SAND LAKE ORLANDO OCALA 3,092,706 12,370,824 1,799,593 3,092,706 14,170,417 17,263,123 5,847,933 11,415,189 560,800 2,268,112 3,203,429 580,030 5,452,310 6,032,341 1,833,076 4,199,265 1,980,000 7,927,484 8,601,388 1,980,000 16,528,872 18,508,872 4,805,244 13,703,628 MILLENIA PLAZA PHASE II 7,711,000 20,702,992 — 7,711,000 20,702,992 28,413,992 1,773,959 26,640,033 POMPANO BEACH 97,169 874,442 1,847,034 97,169 2,721,476 2,818,645 1,819,851 998,794 1968 GONZALEZ 1,620,203 — 40,689 954,876 706,016 1,660,892 — 1,660,892 PALM BEACH GARDENS 2,764,953 11,059,812 — 2,764,953 11,059,812 13,824,765 221,196 13,603,569 ST. PETERSBURG — 917,360 1,266,811 — 2,184,171 2,184,171 992,404 1,191,767 1968 TUTTLE BEE SARASOTA 254,961 828,465 1,781,105 254,961 2,609,570 2,864,531 1,963,794 900,737 SOUTH EAST SARASOTA 1,283,400 5,133,544 3,402,628 1,399,525 8,420,047 9,819,572 4,366,216 5,453,356 SANFORD STUART 1,832,732 9,523,261 6,047,782 1,832,732 15,571,043 17,403,775 8,631,150 8,772,625 2,109,677 8,415,323 991,970 2,109,677 9,407,293 11,516,970 3,898,693 7,618,277 SOUTH MIAMI 1,280,440 5,133,825 2,869,631 1,280,440 8,003,456 9,283,896 2,942,977 6,340,919 TAMPA 5,220,445 16,884,228 2,190,181 5,220,445 19,074,408 24,294,854 5,870,695 18,424,159 vILLAGE COMMONS S.C. 2,192,331 8,774,158 1,227,425 2,192,331 10,001,583 12,193,914 3,055,636 9,138,278 2009 1999 2010 2009 1996 2001 1992 2006 2009 2010 1985 1986 1993 1997 2009 2007 2007 1995 2008 1998 1994 1996 1997 2009 2007 2009 2008 1989 1989 1994 1995 1997 1998 96 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2010 INITIAL COST LAND BUILDING & IMPROVEMENT SUBSEqUENT TO ACqUISITION LAND BUILDING & IMPROVEMENT TOTAL ACCUMULATED DEPRECIATION TOTAL COST, NET OF ACCUMULATED DEPRECIATION ENCUMBRANCES DATE OF CONSTRUCTION DATE OF ACqUISITION PROPERTIES MISSION BELL SHOPPING CENTER 5,056,426 11,843,119 8,709,138 5,067,033 20,541,650 25,608,684 4,087,725 21,520,958 WEST PALM BEACH 550,896 2,298,964 1,402,799 550,896 3,701,763 4,252,659 1,259,136 2,993,524 THE SHOPS AT WEST MELBOURNE 2,200,000 8,829,541 5,210,796 2,200,000 14,040,337 16,240,337 4,418,693 11,821,644 CROSS COUNTRY PLAZA 16,510,000 18,264,427 — 16,510,000 18,264,427 34,774,427 816,977 33,957,450 AUGUSTA 1,482,564 5,928,122 2,441,895 1,482,564 8,370,017 9,852,581 2,949,329 6,903,252 MARKET AT HAYNES BRIDGE 4,880,659 21,549,424 567,717 4,889,862 22,107,939 26,997,801 3,502,179 23,495,621 15,718,903 EMBRY vILLAGE 18,147,054 33,009,514 313,855 18,160,524 33,309,899 51,470,423 4,687,316 46,783,107 30,750,103 SAvANNAH SAvANNAH 2,052,270 8,232,978 1,464,610 2,052,270 9,697,588 11,749,858 4,370,265 7,379,593 652,255 2,616,522 4,943,932 652,256 7,560,454 8,212,709 1,384,471 6,828,238 CHATHAM PLAZA 13,390,238 35,115,882 659,231 13,403,262 35,762,088 49,165,350 5,515,239 43,650,111 29,461,967 KIHEI CENTER 3,406,707 7,663,360 598,386 3,406,707 8,261,745 11,668,453 4,519,371 7,149,082 CLIvE 500,525 2,002,101 — 500,525 2,002,101 2,502,626 765,761 1,736,864 KDI-METRO CROSSING 3,013,647 — 27,283,953 2,004,297 28,293,303 30,297,600 738,941 29,558,659 2006 SOUTHDALE SHOPPING CENTER DES MOINES DUBUQUE WATERLOO NAMPA (HORSHAM) FUTURE 1,720,330 6,916,294 3,660,901 1,720,330 10,577,195 12,297,525 2,638,260 9,659,265 1,845,828 500,525 2,559,019 — 2,152,476 37,079 10,848 500,525 2,596,098 3,096,623 969,866 2,126,757 — 2,163,324 2,163,324 729,111 1,434,213 500,525 2,002,101 2,869,100 500,525 4,871,201 5,371,726 2,289,977 3,081,748 DEv. 6,501,240 — 12,463,995 10,729,939 8,235,296 18,965,235 — 18,965,235 AURORA, N. LAKE 2,059,908 9,531,721 308,208 2,059,908 9,839,929 11,899,837 3,090,769 8,809,068 BLOOMINGTON 805,521 2,222,353 4,241,061 805,521 6,463,414 7,268,935 3,770,654 3,498,281 2005 1972 — 5,372,253 1,249,862 1,161,195 5,460,920 6,622,115 1,715,525 4,906,590 500,422 2,001,687 424,877 500,422 2,426,564 2,926,986 900,451 2,026,535 1,479,217 8,815,760 13,317,758 1,479,216 22,133,519 23,612,735 4,804,755 18,807,980 — 4,770,671 (4,531,252) 95,647 143,772 239,419 70,540 168,879 CHAMPAIGN, NEIL ST. 230,519 1,285,460 — 2,687,046 684,690 725,493 — 3,371,736 3,371,736 1,140,788 2,230,947 230,519 2,010,953 2,241,472 576,659 1,664,813 1,010,374 5,692,212 — 1,010,374 5,692,212 6,702,586 1,800,033 4,902,553 CRYSTAL LAKE, NW HWY 179,964 1,025,811 — 1,541,560 149,202 299,796 — 1,690,762 1,690,762 1,607,563 83,199 180,269 1,325,302 1,505,571 366,641 1,138,931 108 WEST GERMANIA PLACE 2,393,894 7,366,681 881 2,393,894 7,367,562 9,761,455 168 NORTH MICHIGAN AvENUE 3,373,318 10,119,953 (5,877,491) 3,373,318 4,242,461 7,615,779 — — 9,761,455 7,615,779 BUTTERFIELD SQUARE 1,601,960 6,637,926 (3,588,725) 1,182,677 3,468,484 4,651,161 1,057,812 3,593,349 DOWNERS PARK PLAZA 2,510,455 10,164,494 3,177,621 2,510,455 13,342,115 15,852,570 3,579,541 12,273,030 DOWNER GROvE 811,778 4,322,956 2,113,742 811,778 6,436,698 7,248,476 1,962,607 5,285,870 BELLEvILLE S.C. BRADLEY CALUMET CITY COUNTRYSIDE CHICAGO ELSTON S. CICERO ELGIN FOREST PARK FAIRvIEW HTS, BELLvILLE RD. — 11,866,880 1,906,567 — 2,335,884 — — — 2,335,884 2,335,884 794,219 1,541,665 13,773,447 13,773,447 4,192,500 9,580,947 GENEvA 500,422 12,917,712 33,551 500,422 12,951,263 13,451,685 4,251,728 9,199,957 LAKE ZURICH PLAZA 1,890,319 2,649,381 — 1,890,319 2,649,381 4,539,700 126,804 4,412,896 MATTERSON MT. PROSPECT 950,515 6,292,319 10,598,286 950,514 16,890,606 17,841,120 4,952,043 12,889,077 1,017,345 6,572,176 3,925,140 1,017,345 10,497,316 11,514,661 3,482,914 8,031,747 MUNDELEIN, S. LAKE 1,127,720 5,826,129 77,350 1,129,634 5,901,565 7,031,199 1,895,400 5,135,799 842,555 2,108,674 1,531,314 527,168 3,955,374 4,482,543 2,790,797 1,691,746 1972 2004 1995 1998 2009 1995 2008 2008 1993 1995 2008 2006 1996 1999 1996 1997 1996 1998 1998 1996 1997 1997 1997 1998 1997 1997 1998 2008 2008 1998 1999 1997 1997 1998 1996 2005 1997 1997 1998 97 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2010 INITIAL COST LAND BUILDING & IMPROVEMENT SUBSEqUENT TO ACqUISITION LAND BUILDING & IMPROVEMENT TOTAL ACCUMULATED DEPRECIATION TOTAL COST, NET OF ACCUMULATED DEPRECIATION ENCUMBRANCES DATE OF CONSTRUCTION DATE OF ACqUISITION PROPERTIES NORRIDGE NAPERvILLE OTTAWA — 2,918,315 — — 2,918,315 2,918,315 986,656 1,931,659 669,483 4,464,998 80,672 669,483 4,545,670 5,215,153 1,496,996 3,718,157 137,775 784,269 700,540 137,775 1,484,809 1,622,584 1,023,929 598,655 MARKETPLACE OF OAKLAWN — 678,668 — — 678,668 678,668 132,783 545,885 ORLAND PARK, S. HARLEM 476,972 2,764,775 (2,694,903) 87,998 458,846 546,844 137,334 409,509 OAK LAWN 1,530,111 8,776,631 465,920 1,530,111 9,242,552 10,772,662 3,059,976 7,712,686 OAKBROOK TERRACE 1,527,188 8,679,108 3,298,212 1,527,188 11,977,320 13,504,508 3,466,074 10,038,433 PEORIA — 5,081,290 2,403,560 — 7,484,850 7,484,850 2,365,246 5,119,604 FREESTATE BOWL 252,723 998,099 — 252,723 998,099 1,250,822 586,194 664,627 ROCKFORD CROSSING 4,575,990 11,654,022 (525,684) 4,583,005 11,121,322 15,704,328 1,159,417 14,544,911 10,777,089 ROUND LAKE BEACH PLAZA 790,129 1,634,148 653,862 790,129 2,288,010 3,078,139 188,468 2,889,670 SKOKIE — 2,276,360 9,518,382 2,628,440 9,166,303 11,794,742 2,284,680 9,510,062 KRC STREAMWOOD 181,962 1,057,740 216,585 181,962 1,274,324 1,456,287 377,489 1,078,798 WOODGROvE FESTIvAL 5,049,149 20,822,993 2,561,466 4,805,866 23,627,742 28,433,608 7,469,330 20,964,278 WAUKEGAN PLAZA 349,409 883,975 2,276,671 349,409 3,160,646 3,510,055 97,670 3,412,385 PLAZA EAST GREENWOOD GRIFFITH LAFAYETTE LAFAYETTE 1,236,149 4,944,597 3,272,562 1,140,849 8,312,459 9,453,308 2,782,344 6,670,964 423,371 1,883,421 2,192,859 584,445 3,915,206 4,499,651 2,973,945 1,525,706 — 2,495,820 981,912 1,001,100 2,476,632 3,477,732 848,514 2,629,218 230,402 1,305,943 169,272 230,402 1,475,215 1,705,617 1,375,611 330,006 812,810 3,252,269 4,305,610 2,379,198 5,991,492 8,370,689 1,903,779 6,466,910 KRC MISHAWAKA 895 378,088 1,999,079 4,595,648 378,730 6,594,085 6,972,815 1,232,956 5,739,859 SOUTH BEND, S. HIGH ST. 183,463 1,070,401 196,857 183,463 1,267,258 1,450,721 380,968 1,069,754 OvERLAND PARK 1,183,911 6,335,308 142,374 1,185,906 6,475,686 7,661,593 2,024,058 5,637,535 BELLEvUE LEXINGTON 405,217 1,743,573 247,204 405,217 1,990,776 2,395,994 1,817,191 578,803 1,675,031 6,848,209 5,586,178 1,551,079 12,558,339 14,109,418 5,314,931 8,794,487 HAMMOND AIR PLAZA 3,813,873 15,260,609 6,923,873 3,813,873 22,184,482 25,998,355 6,024,374 19,973,981 KIMCO HOUMA 274, LLC 1,980,000 7,945,784 790,355 1,980,000 8,736,139 10,716,139 2,427,173 8,288,966 CENTRE AT WESTBANK 9,554,230 24,401,082 804,778 9,564,645 25,195,446 34,760,090 3,171,508 31,588,582 19,920,719 1970 1971 2,115,000 8,508,218 10,089,972 3,678,274 17,034,915 20,713,190 5,307,965 15,405,225 LAFAYETTE PRIEN LAKE 6,426,167 15,181,072 AMBASSADOR PLAZA 1,803,672 4,260,966 BAYOU WALK 4,586,895 10,836,007 EAST SIDE PLAZA 3,295,799 7,785,942 493-495 COMMONWEALTH — — — — 6,426,167 15,181,072 21,607,239 90,688 21,516,551 15,557,106 1,803,672 4,260,966 6,064,638 25,454 6,039,184 4,585,415 4,586,895 10,836,007 15,422,902 89,267 15,333,635 12,943,806 3,295,799 7,785,942 11,081,740 46,511 11,035,229 8,915,000 AvENUE 1,151,947 5,798,705 (5,624,239) 746,940 579,474 1,326,414 497 COMMONWEALTH AvE. 405,007 1,196,594 657,904 405,007 1,854,497 2,259,505 1,533 1,097 1,324,881 2,258,408 GREAT BARRINGTON 642,170 2,547,830 7,255,207 751,124 9,694,083 10,445,207 3,355,430 7,089,777 HAvERHILL PLAZA 3,281,768 7,752,796 — 3,281,768 7,752,796 11,034,565 92,626 10,941,939 7,089,821 SHREWSBURY SHOPPING CENTER WILDE LAKE LYNX LANE 1,284,168 5,284,853 4,625,463 1,284,168 9,910,316 11,194,483 2,479,409 8,715,074 1,468,038 5,869,862 172,856 1,468,038 6,042,718 7,510,755 1,380,729 6,130,026 1,019,035 4,091,894 76,423 1,019,035 4,168,317 5,187,352 971,521 4,215,831 CLINTON BANK BUILDING 82,967 362,371 CLINTON BOWL 39,779 130,716 — 4,247 82,967 362,371 445,338 228,188 38,779 135,963 174,742 69,610 217,150 105,132 vILLAGES AT URBANA 3,190,074 6,067 10,520,574 4,828,774 8,887,942 13,716,715 447,247 13,269,469 GAITHERSBURG 244,890 6,787,534 230,545 244,890 7,018,079 7,262,969 1,999,674 5,263,295 98 1997 1997 2008 1998 1998 1997 1997 1997 2003 2008 2005 1997 1998 1998 2005 1995 1997 1997 1998 1998 1998 1976 1993 1997 1999 2008 1997 2010 2010 2010 2010 2008 2008 1994 2010 2000 2002 2002 2003 2003 2003 1999 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2010 PROPERTIES LAND BUILDING & IMPROVEMENT SUBSEqUENT TO ACqUISITION LAND BUILDING & IMPROVEMENT TOTAL ACCUMULATED DEPRECIATION INITIAL COST TOTAL COST, NET OF ACCUMULATED DEPRECIATION ENCUMBRANCES DATE OF CONSTRUCTION DATE OF ACqUISITION HAGERSTOWN 541,389 2,165,555 3,333,011 541,389 5,498,566 6,039,955 2,985,907 3,054,048 1973 SHAWAN PLAZA 4,466,000 20,222,367 (408,572) 4,466,000 19,813,795 24,279,795 6,245,367 18,034,427 10,103,983 LAUREL LAUREL SOUTHWEST MIXED USE PROPERTY 349,562 1,398,250 1,030,202 349,562 2,428,452 2,778,014 1,165,558 1,612,456 274,580 1,100,968 283,421 274,580 1,384,389 1,658,969 1,383,200 275,769 1972 403,034 1,325,126 306,510 361,035 1,673,635 2,034,670 779,093 1,255,577 NORTH EAST STATION 869,385 — (869,343) 42 — 42 — 42 OWINGS MILLS PLAZA 303,911 1,370,221 (160,247) 303,911 1,209,973 1,513,885 35,693 1,478,191 PERRY HALL 3,339,309 12,377,339 792,309 3,339,309 13,169,648 16,508,957 4,177,200 12,331,757 TIMONIUM SHOPPING CENTER 6,000,000 24,282,998 16,235,286 7,331,195 39,187,088 46,518,284 13,699,291 32,818,993 WALDORF BOWL 225,099 739,362 84,327 235,099 813,688 1,048,787 339,010 709,777 WALDORF FIRESTONE 57,127 221,621 — 57,127 221,621 278,749 94,738 184,010 BANGOR, ME 403,833 1,622,331 93,752 403,833 1,716,083 2,119,916 395,444 1,724,472 MALLSIDE PLAZA 6,930,996 18,148,727 (231,616) 6,939,589 17,908,517 24,848,107 3,677,241 21,170,866 15,061,275 CLAWSON WHITE LAKE 1,624,771 6,578,142 8,584,479 1,624,771 15,162,621 16,787,392 4,342,473 12,444,919 2,300,050 9,249,607 1,976,664 2,300,050 11,226,271 13,526,321 4,105,522 9,420,799 CANTON TWP PLAZA 163,740 926,150 5,249,730 163,740 6,175,879 6,339,620 401,730 5,937,890 CLINTON TWP PLAZA 175,515 714,279 1,149,267 59,450 1,979,611 2,039,061 302,411 1,736,650 FARMINGTON 1,098,426 4,525,723 2,670,260 1,098,426 7,195,983 8,294,409 2,995,640 5,298,769 LIvONIA MUSKEGON 178,785 925,818 1,160,112 178,785 2,085,930 2,264,715 1,100,022 1,164,692 1968 391,500 958,500 884,339 391,500 1,842,839 2,234,339 1,591,280 643,059 OKEMOS PLAZA 166,706 591,193 2,001,146 166,706 2,592,339 2,759,045 68,762 2,690,283 279,280 TAYLOR WALKER 1,451,397 5,806,263 275,289 1,451,397 6,081,552 7,532,949 2,656,063 4,876,886 3,682,478 14,730,060 2,144,118 3,682,478 16,874,178 20,556,656 7,061,342 13,495,314 EDEN PRAIRIE PLAZA 882,596 911,373 570,450 882,596 1,481,823 2,364,419 111,772 2,252,647 FOUNTAINS AT ARBOR LAKES 28,585,296 66,699,024 7,490,487 28,585,296 74,189,511 102,774,807 9,256,538 93,518,269 ROSEvILLE PLAZA 132,842 957,340 4,741,603 132,842 5,698,943 5,831,785 390,771 5,441,014 ST. PAUL PLAZA 699,916 623,966 172,627 699,916 796,593 1,496,509 54,919 1,441,590 CREvE COEUR, WOODCREST/ OLIvE 1,044,598 5,475,623 615,905 960,814 6,175,312 7,136,126 1,968,114 5,168,012 CRYSTAL CITY, MI — 234,378 — — 234,378 234,378 73,317 161,062 INDEPENDENCE, NOLAND DR. 1,728,367 8,951,101 193,000 1,731,300 9,141,168 10,872,468 2,898,106 7,974,362 NORTH POINT SHOPPING CENTER KIRKWOOD KANSAS CITY LEMAY GRAvOIS ST. CHARLES- UNDERDEvELOPED LAND, MO SPRINGFIELD KMART PARCEL 1,935,380 7,800,746 563,794 1,935,380 8,364,540 10,299,920 2,502,700 7,797,220 — 9,704,005 11,444,242 — 21,148,247 21,148,247 9,086,211 12,062,036 574,777 2,971,191 274,976 574,777 3,246,167 3,820,944 1,088,085 2,732,858 125,879 503,510 3,828,858 451,155 4,007,092 4,458,247 1,028,519 3,429,728 1974 1,032,416 4,455,514 10,964,529 1,032,413 15,420,046 16,452,459 7,281,690 9,170,769 431,960 — 758,854 431,960 758,855 1,190,814 190,650 1,000,164 2,745,595 10,985,778 6,694,808 2,904,022 17,522,159 20,426,181 6,164,260 14,261,922 905,674 3,666,386 4,933,942 905,674 8,600,328 9,506,001 1,816,415 7,689,587 1,921,311 KRC ST. CHARLES — 550,204 — — 550,204 550,204 169,294 380,910 ST. LOUIS, CHRISTY BLvD. 809,087 4,430,514 2,715,164 809,087 7,145,678 7,954,765 1,916,888 6,037,877 OvERLAND — 4,928,677 822,197 — 5,750,874 5,750,874 1,949,558 3,801,316 2008 1995 2003 2008 2005 2003 2003 2003 2003 2001 2008 1993 1996 2005 2005 1993 1985 2005 1993 1993 2005 2006 2005 2005 1998 1997 1998 1998 1998 1997 2008 1998 1994 2002 1998 1998 1997 99 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2010 INITIAL COST LAND BUILDING & IMPROVEMENT SUBSEqUENT TO ACqUISITION LAND BUILDING & IMPROVEMENT TOTAL ACCUMULATED DEPRECIATION TOTAL COST, NET OF ACCUMULATED DEPRECIATION ENCUMBRANCES DATE OF CONSTRUCTION DATE OF ACqUISITION SHOPPES AT MIDWAY PLANTATION MIDTOWN CROSSING SHOPPING CTR. PROPERTIES ST. LOUIS ST. LOUIS ST. PETERS — 5,756,736 — 2,766,644 849,684 143,298 — — 6,606,420 6,606,420 2,287,292 4,319,128 2,909,942 2,909,942 2,909,942 0 1,182,194 7,423,459 7,227,838 1,563,694 14,269,797 15,833,491 8,657,072 7,176,419 SPRINGFIELD,GLENSTONE AvE. — 608,793 1,853,943 — 2,462,736 2,462,736 660,318 1,802,417 KDI-TURTLE CREEK 11,535,281 — 32,860,060 10,150,881 34,244,460 44,395,341 3,283,402 41,111,939 2004 CHARLOTTE CHARLOTTE TYvOLA RD. 919,251 3,570,981 1,108,884 919,251 4,679,865 5,599,116 1,819,773 3,779,343 1,783,400 7,139,131 2,890,477 1,783,400 10,029,608 11,813,008 3,562,263 8,250,744 — 4,736,345 5,081,319 — 9,817,664 9,817,664 6,685,189 3,132,475 CROSSROADS PLAZA 767,864 3,098,881 34,566 767,864 3,133,447 3,901,310 869,925 3,031,386 KIMCO CARY 696, INC. 2,180,000 8,756,865 448,592 2,256,799 9,128,659 11,385,457 2,932,184 8,453,273 LONG CREEK S.C. 4,475,000 — 13,190,510 6,718,573 10,946,937 17,665,510 571,294 17,094,216 15,827,111 DURHAM 1,882,800 7,551,576 1,685,996 1,882,800 9,237,572 11,120,372 3,435,032 7,685,340 HILLSBOROUGH CROSSING 519,395 — — — 519,395 — 519,395 — 519,395 18,567,825 5,403,673 19,845,364 25,249,037 1,774,867 23,474,170 2005 6,681,212 7,412,437 17,511,022 — 7,412,437 17,511,022 24,923,460 — 24,923,460 PARK PLACE 5,461,478 16,163,494 110,784 5,469,809 16,265,949 21,735,758 2,102,864 19,632,893 13,674,051 MOORESvILLE CROSSING 12,013,727 30,604,173 (149,311) 11,625,801 30,842,788 42,468,589 3,614,924 38,853,665 RALEIGH 5,208,885 20,885,792 11,983,872 5,208,885 32,869,664 38,078,549 12,036,512 26,042,037 WAKEFIELD COMMONS II 6,506,450 WAKEFIELD CROSSINGS EDGEWATER PLACE 3,413,932 3,150,000 — — — (2,733,980) 2,357,636 1,414,834 3,772,470 173,263 3,599,207 (3,017,960) 336,236 59,737 395,973 — 395,973 10,108,078 3,062,768 10,195,310 13,258,078 936,502 12,321,576 WINSTON-SALEM 540,667 719,655 5,193,233 540,667 5,912,888 6,453,555 2,809,714 3,643,841 4,954,750 SORENSON PARK PLAZA 5,104,294 — 31,790,968 4,145,628 32,749,634 36,895,262 1,203,339 35,691,923 LORDEN PLAZA 8,872,529 22,548,382 125,505 8,883,003 22,663,412 31,546,416 2,299,580 29,246,836 24,196,344 NEW LONDON CENTER 4,323,827 10,088,930 1,221,595 4,323,827 11,310,525 15,634,352 2,227,333 13,407,019 ROCKINGHAM 2,660,915 10,643,660 11,892,829 3,148,715 22,048,689 25,197,404 7,862,986 17,334,418 18,219,745 2001 2001 2003 1969 2005 BRIDGEWATER NJ 1,982,481 (3,666,959) 9,262,382 1,982,481 5,595,423 7,577,904 3,648,695 3,929,209 1998 BAYONNE BROADWAY 1,434,737 3,347,719 2,825,469 1,434,737 6,173,188 7,607,924 1,100,093 6,507,831 BRICKTOWN PLAZA 344,884 1,008,941 (307,857) 344,884 701,084 1,045,968 19,475 1,026,493 BRIDGEWATER PLAZA 350,705 1,361,524 5,944,259 350,705 7,305,783 7,656,488 26,673 7,629,815 CHERRY HILL MARLTON PIKE CINNAMINSON 2,417,583 6,364,094 1,581,275 2,417,583 7,945,370 10,362,952 5,651,412 4,711,540 1985 — 4,318,534 19,266 — 4,337,800 4,337,800 1,590,404 2,747,396 652,123 2,608,491 2,776,251 652,123 5,384,742 6,036,865 2,365,081 3,671,784 EASTWINDOR vILLAGE 9,335,011 23,777,978 — 9,335,011 23,777,978 33,112,989 1,823,910 31,289,079 18,856,668 HILLSBOROUGH 11,886,809 — (6,880,755) 5,006,054 — 5,006,054 — 5,006,054 2001 HOLMDEL TOWNE CENTER 10,824,624 43,301,494 4,586,700 10,824,624 47,888,194 58,712,817 9,735,392 48,977,426 26,721,718 HOLMDEL COMMONS 16,537,556 38,759,952 3,264,989 16,537,556 42,024,942 58,562,498 9,224,052 49,338,445 19,573,717 HOWELL PLAZA 311,384 1,143,159 4,733,041 311,384 5,876,200 6,187,584 289,163 5,898,421 KENvILLE PLAZA 385,907 1,209,864 94 385,907 1,209,958 1,595,865 120,810 1,475,055 STRAUSS DISCOUNT AUTO 1,225,294 91,203 1,552,740 1,228,794 1,640,443 2,869,237 334,090 2,535,147 MAPLE SHADE — 9,957,611 — — 9,957,611 9,957,611 224,040 9,733,570 NORTH BRUNSWICK 3,204,978 12,819,912 18,463,022 3,204,978 31,282,934 34,487,912 10,606,382 23,881,529 27,592,106 PISCATAWAY TOWN CENTER 3,851,839 15,410,851 612,255 3,851,839 16,023,106 19,874,945 5,171,938 14,703,007 11,086,867 RIDGEWOOD 450,000 2,106,566 1,015,675 450,000 3,122,241 3,572,241 1,161,702 2,410,539 100 1997 1997 1997 1998 2008 1993 1986 2000 1998 2008 1996 2003 2010 2008 2007 1993 2008 2005 2008 2004 2005 2005 1996 1996 2008 2002 2004 2005 2005 2002 2009 1994 1998 1993 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2010 PROPERTIES LAND BUILDING & IMPROVEMENT SUBSEqUENT TO ACqUISITION LAND BUILDING & IMPROVEMENT TOTAL ACCUMULATED DEPRECIATION INITIAL COST TOTAL COST, NET OF ACCUMULATED DEPRECIATION ENCUMBRANCES DATE OF CONSTRUCTION DATE OF ACqUISITION SEA GIRT PLAZA 457,039 1,308,010 1,521,600 457,039 2,829,610 3,286,649 98,678 3,187,972 UNION CRESCENT 7,895,483 3,010,640 25,425,192 8,696,579 27,634,737 36,331,316 2,978,444 33,352,872 WESTMONT 601,655 2,404,604 10,626,230 601,655 13,030,835 13,632,489 4,081,862 9,550,627 WILLOWBROOK PLAZA 15,320,436 40,996,874 — 15,320,436 40,996,874 56,317,310 2,888,481 53,428,829 SYCAMORE PLAZA 1,404,443 5,613,270 283,450 1,404,443 5,896,720 7,301,163 1,993,002 5,308,162 PLAZA PASEO DEL-NORTE 4,653,197 18,633,584 1,174,031 4,653,197 19,807,614 24,460,812 6,326,807 18,134,004 JUAN TABO, ALBUQUERQUE 1,141,200 4,566,817 328,487 1,141,200 4,895,304 6,036,504 1,584,305 4,452,199 DEv-WARM SPRINGS PROMENADE 7,226,363 19,109,946 — 7,226,363 19,109,946 26,336,309 3,074,797 23,261,512 13,615,013 COMP USA CENTER 2,581,908 5,798,092 (363,745) 2,581,908 5,434,347 8,016,255 2,640,914 5,375,342 3,075,858 DEL MONTE PLAZA 2,489,429 5,590,415 (125,171) 2,210,000 5,744,673 7,954,673 1,067,834 6,886,839 4,056,164 D’ANDREA MARKETPLACE 11,556,067 29,435,364 KEY BANK BUILDING 1,500,000 40,486,755 — — 11,556,067 29,435,364 40,991,432 2,789,155 38,202,276 15,407,784 1,500,000 40,486,755 41,986,755 8,018,079 33,968,676 22,303,664 BRIDGEHAMPTON 1,811,752 3,107,232 24,925,453 1,858,188 27,986,248 29,844,437 13,952,790 15,891,646 34,421,418 1972 TWO GUYS AUTO GLASS 105,497 436,714 GENOvESE DRUG STORE 564,097 2,268,768 — — 105,497 436,714 542,211 86,852 455,358 564,097 2,268,768 2,832,865 451,648 2,381,217 KINGS HIGHWAY 2,743,820 6,811,268 1,338,513 2,743,820 8,149,781 10,893,601 1,914,588 8,979,013 HOMEPORT-RALPH AvENUE 4,414,466 11,339,857 3,136,639 4,414,467 14,476,497 18,890,963 2,553,625 16,337,338 BELLMORE 1,272,269 3,183,547 381,803 1,272,269 3,565,350 4,837,619 756,155 4,081,464 429,412 STRAUSS CASTLE HILL PLAZA 310,864 725,350 241,828 310,864 967,178 1,278,042 173,320 1,104,722 MARKET AT BAY SHORE 12,359,621 30,707,802 81,921 12,359,621 30,789,723 43,149,344 7,194,769 35,954,575 231 STREET 5959 BROADWAY 3,565,239 6,035,726 — — — 3,565,239 — 3,565,239 — 3,565,239 1,056,651 6,035,726 1,056,651 7,092,377 11,840 7,080,537 4,792,159 KING KULLEN PLAZA 5,968,082 23,243,404 1,202,976 5,980,130 24,434,332 30,414,462 8,345,426 22,069,036 KDI-CENTRAL ISLIP TOWN CENTER 13,733,950 1,266,050 909,076 5,088,852 10,820,224 15,909,076 796,629 15,112,447 9,642,685 2004 PATHMARK SC 6,714,664 17,359,161 526,939 6,714,664 17,886,100 24,600,764 2,811,691 21,789,073 6,834,029 BIRCHWOOD PLAZA COMMACK 3,630,000 4,774,791 167,672 3,630,000 4,942,463 8,572,463 926,541 7,645,922 ELMONT 3,011,658 7,606,066 2,204,704 3,011,658 9,810,769 12,822,428 2,010,579 10,811,849 FRANKLIN SQUARE 1,078,541 2,516,581 3,380,386 1,078,541 5,896,967 6,975,507 893,615 6,081,893 KISSENA BOULEvARD SC 11,610,000 2,933,487 1,519 11,610,000 2,935,006 14,545,006 702,852 13,842,153 HAMPTON BAYS 1,495,105 5,979,320 3,382,736 1,495,105 9,362,056 10,857,161 4,309,086 6,548,074 HICKSvILLE 3,542,739 8,266,375 1,359,896 3,542,739 9,626,271 13,169,010 1,987,433 11,181,577 100 WALT WHITMAN ROAD 5,300,000 8,167,577 41,843 5,300,000 8,209,420 13,509,420 1,299,985 12,209,434 BP AMOCO GAS STATION 1,110,593 — 539 1,110,593 539 1,111,131 — 1,111,131 BIRCHWOOD PLAZA (NORTH & SOUTH) 12,368,330 33,071,495 174,943 12,368,330 33,246,439 45,614,769 4,072,638 41,542,131 13,650,202 501 NORTH BROADWAY — 1,175,543 MERRYLANE (P/L) 1,485,531 1,749 607 539 — 1,176,150 1,176,150 504,860 671,290 1,485,531 2,288 1,487,819 120 1,487,699 DOUGLASTON SHOPPING CENTER 3,277,254 13,161,218 3,597,984 3,277,253 16,759,202 20,036,455 2,886,667 17,149,789 STRAUSS MERRICK BLvD 450,582 1,051,359 351,513 450,582 1,402,872 1,853,454 251,397 1,602,057 MANHASSET vENTURE LLC 4,567,003 19,165,808 26,076,214 4,421,939 45,387,086 49,809,026 14,154,386 35,654,640 19,443,155 MASPETH QUEENS-DUANE READE 1,872,013 4,827,940 931,187 1,872,013 5,759,126 7,631,139 1,113,880 6,517,259 MASSAPEQUA 1,880,816 4,388,549 964,761 1,880,816 5,353,310 7,234,126 1,220,482 6,013,643 2005 2007 1994 2009 1998 1998 1998 2009 2006 2006 2007 2006 2003 2003 2004 2004 2004 2005 2006 2007 2008 1998 2006 2007 2004 2004 2007 1989 2004 2007 2007 2007 2007 2007 2003 2005 1999 2004 2004 101 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2010 INITIAL COST LAND BUILDING & IMPROVEMENT SUBSEqUENT TO ACqUISITION LAND BUILDING & IMPROVEMENT TOTAL ACCUMULATED DEPRECIATION TOTAL COST, NET OF ACCUMULATED DEPRECIATION ENCUMBRANCES DATE OF CONSTRUCTION DATE OF ACqUISITION 4,150,000 7,520,692 (426,144) 4,150,000 7,094,549 11,244,549 1,183,249 10,061,299 PROPERTIES MINEOLA SC BIRCHWOOD PARK DRIvE (LAND LOT) 3,507,162 4,126 SMITHTOWN PLAZA 3,528,000 7,364,098 782 — 3,507,406 4,665 3,512,071 282 3,511,789 3,528,000 7,364,098 10,892,098 279,191 10,612,907 6,679,564 4452 BROADWAY 12,412,724 — (1,900,000) 10,512,724 10,512,724 — 10,512,724 8,552,161 82 CHRISTOPHER STREET 972,813 2,974,676 452,183 925,000 3,474,671 4,399,671 419,464 3,980,207 2,912,575 PREF. EQUITY 100 vANDAM 5,125,000 16,143,321 1,160,884 6,468,478 15,960,728 22,429,205 1,730,514 20,698,691 PREF. EQUITY-30 WEST 21ST STREET 6,250,000 21,974,274 16,010,387 6,250,000 37,984,662 44,234,662 194,439 44,040,223 20,713,296 AMERICAN MUFFLER SHOP 76,056 325,567 28,980 76,056 354,547 430,604 64,948 365,655 PLAINvIEW 263,693 584,031 9,795,918 263,693 10,379,949 10,643,642 4,789,166 5,854,475 13,828,416 POUGHKEEPSIE 876,548 4,695,659 12,696,051 876,548 17,391,710 18,268,258 7,944,325 10,323,933 15,634,552 STRAUSS JAMAICA AvENUE 1,109,714 2,589,333 596,178 1,109,714 3,185,511 4,295,225 568,288 3,726,937 SYOSSET, NY 106,655 76,197 1,551,676 106,655 1,627,873 1,734,528 917,566 816,962 STATEN ISLAND 2,280,000 9,027,951 5,301,925 2,280,000 14,329,876 16,609,876 8,453,280 8,156,595 STATEN ISLAND 2,940,000 11,811,964 1,159,287 3,148,424 12,762,826 15,911,251 4,228,992 11,682,259 STATEN ISLAND PLAZA 5,600,744 6,788,460 (2,441,387) 5,600,744 4,347,074 9,947,817 111,125 9,836,692 HYLAN PLAZA 28,723,536 38,232,267 33,532,295 28,723,536 71,764,563 100,488,099 17,187,988 83,300,110 STOP N SHOP STATEN ISLAND 4,558,592 10,441,408 155,848 4,558,592 10,597,256 15,155,848 2,607,750 12,548,098 WEST GATES WHITE PLAINS YONKERS 1,784,718 9,721,970 (1,651,389) 1,784,718 8,070,581 9,855,299 4,532,099 5,323,200 1,777,775 4,453,894 2,010,606 1,777,775 6,464,500 8,242,274 1,518,023 6,724,251 3,168,332 871,977 3,487,909 — 871,977 3,487,909 4,359,886 1,588,293 2,771,593 STRAUSS ROMAINE AvENUE 782,459 1,825,737 616,623 782,459 2,442,360 3,224,819 436,563 2,788,256 AKRON WATERLOO 437,277 1,912,222 4,131,997 437,277 6,044,219 6,481,496 2,883,079 3,598,417 WEST MARKET ST. 560,255 3,909,430 379,484 560,255 4,288,914 4,849,169 2,831,913 2,017,256 — BARBERTON BRUNSWICK BEAvERCREEK CANTON CAMBRIDGE 505,590 1,948,135 3,445,702 505,590 5,393,837 5,899,427 3,772,876 2,126,551 771,765 6,058,560 2,120,508 771,765 8,179,068 8,950,833 6,373,502 2,577,331 635,228 3,024,722 3,833,453 635,228 6,858,175 7,493,403 4,382,825 3,110,579 792,985 1,459,031 4,721,075 792,985 6,180,106 6,973,091 4,852,270 2,120,821 — 1,848,195 1,016,068 473,060 2,391,204 2,864,263 2,090,501 773,763 OLENTANGY RIvER RD. 764,517 1,833,600 2,340,830 764,517 4,174,430 4,938,947 3,238,904 1,700,043 RIDGE ROAD SPRINGDALE 1,285,213 4,712,358 10,655,386 1,285,213 15,367,744 16,652,957 5,760,518 10,892,438 3,205,653 14,619,732 5,327,283 3,205,653 19,947,015 23,152,668 10,741,963 12,410,705 GLENWAY CROSSING 699,359 3,112,047 1,247,339 699,359 4,359,386 5,058,745 1,055,403 4,003,342 HIGHLAND RIDGE PLAZA 1,540,000 6,178,398 918,079 1,540,000 7,096,477 8,636,477 1,866,637 6,769,840 HIGHLAND PLAZA 702,074 667,463 76,380 702,074 743,843 1,445,917 55,957 1,389,961 MONTGOMERY PLAZA 530,893 1,302,656 3,226,699 530,893 4,529,354 5,060,248 219,869 4,840,379 1969 1972 1990 1975 1972 1975 1972 1973 SHILOH SPRING RD. — 1,735,836 3,599,501 1,105,183 4,230,155 5,335,337 2,795,328 2,540,009 1969 OAKCREEK SALEM AvE. KETTERING KENT, OH KENT MENTOR 1,245,870 4,339,637 4,293,158 1,149,622 8,729,043 9,878,665 5,977,922 3,900,743 665,314 347,818 5,599,522 665,314 5,947,341 6,612,654 3,426,124 3,186,530 1,190,496 4,761,984 (834,408) 1,190,496 3,927,576 5,118,072 3,662,034 1,456,038 6,254 3,028,914 2,261,530 — — — 6,254 3,028,914 3,035,168 1,772,423 1,262,745 2,261,530 — 2,261,530 — 2,261,530 503,981 2,455,926 2,258,691 371,295 4,847,303 5,218,598 2,923,552 2,295,046 MIDDLEBURG HEIGHTS 639,542 3,783,096 69,419 639,542 3,852,515 4,492,057 2,505,055 1,987,001 MENTOR ERIE COMMONS 2,234,474 9,648,000 5,483,290 2,234,474 15,131,290 17,365,764 7,972,142 9,393,623 102 2007 2007 2009 2007 2005 2006 2007 2003 2005 1989 1997 2005 2006 2005 1993 2004 1998 2005 1999 1986 1988 1992 1992 2000 1999 2005 2005 1984 1988 1988 1999 1995 1987 1999 1988 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2010 PROPERTIES LAND BUILDING & IMPROVEMENT SUBSEqUENT TO ACqUISITION LAND BUILDING & IMPROVEMENT TOTAL ACCUMULATED DEPRECIATION INITIAL COST TOTAL COST, NET OF ACCUMULATED DEPRECIATION ENCUMBRANCES DATE OF CONSTRUCTION DATE OF ACqUISITION MALLWOODS CENTER 294,232 — 1,184,543 294,232 1,184,543 1,478,775 248,515 1,230,260 NORTH OLMSTED 626,818 3,712,045 35,000 626,818 3,747,045 4,373,862 2,404,363 1,969,499 ORANGE OHIO 3,783,875 — (2,342,306) 921,704 519,865 1,441,569 — 1,441,569 UPPER ARLINGTON 504,256 2,198,476 9,018,396 1,255,544 10,465,583 11,721,128 6,937,958 4,783,170 WICKLIFFE 610,991 2,471,965 1,906,443 610,991 4,378,408 4,989,399 1,510,644 3,478,755 CHARDON ROAD 481,167 5,947,751 2,656,318 481,167 8,604,068 9,085,236 4,737,318 4,347,918 WESTERvILLE EDMOND 1,050,431 4,201,616 8,308,224 1,050,431 12,509,840 13,560,271 6,260,277 7,299,994 477,036 3,591,493 77,650 477,036 3,669,143 4,146,179 1,200,069 2,946,110 CENTENNIAL PLAZA 4,650,634 18,604,307 1,379,744 4,650,634 19,984,051 24,634,685 6,866,354 17,768,331 ALBANY PLAZA 2,654,000 4,445,112 CANBY SQUARE SHOPPING CENTER 2,727,000 4,347,500 OREGON TRAIL CENTER 5,802,422 12,622,879 — — — 2,654,000 4,445,112 7,099,112 321,039 6,778,073 2,727,000 4,347,500 7,074,500 411,128 6,663,372 5,802,422 12,622,879 18,425,301 1,506,077 16,919,224 POWELL vALLEY JUNCTION 5,062,500 3,152,982 (3,027,375) 2,035,125 3,152,982 5,188,107 347,548 4,840,559 MEDFORD CENTER 8,940,798 16,995,113 2,802 8,943,600 16,995,113 25,938,713 1,341,581 24,597,132 1999 2001 KDI-MCMINNvILLE 4,062,327 — 691,388 4,062,327 691,388 4,753,715 — 4,753,715 2006 PIONEER PLAZA 952,740 6,638,583 3,029,280 3,982,020 6,638,583 10,620,603 792,734 9,827,869 TROUTDALE MARKET 1,931,559 2,940,661 1,809 1,933,369 2,940,661 4,874,030 270,707 4,603,323 ALLEGHENY — 30,061,177 59,094 — 30,120,271 30,120,271 4,988,396 25,131,875 SUBURBAN SQUARE 70,679,871 166,351,381 4,144,853 71,279,871 169,896,234 241,176,105 23,755,770 217,420,336 CHIPPEWA 2,881,525 11,526,101 153,289 2,881,525 11,679,391 14,560,916 3,299,434 11,261,482 7,517,467 BROOKHAvEN PLAZA 254,694 973,318 (61,414) 254,694 911,903 1,166,598 31,503 1,135,094 CARNEGIE — 3,298,908 17,747 — 3,316,655 3,316,655 935,467 2,381,188 CENTER SQUARE 731,888 2,927,551 1,266,851 731,888 4,194,403 4,926,290 1,866,843 3,059,448 WAYNE PLAZA 6,127,623 15,605,012 275,243 6,135,670 15,872,209 22,007,878 1,261,935 20,745,944 14,136,460 CHAMBERSBURG CROSSING 9,090,288 — 26,060,360 8,790,288 26,360,360 35,150,649 2,197,789 32,952,859 EAST STROUDSBURG 1,050,000 2,372,628 1,243,804 1,050,000 3,616,432 4,666,432 2,909,367 1,757,065 2006 1973 RIDGE PIKE PLAZA 1,525,337 4,251,732 962,726 1,525,337 5,214,459 6,739,795 782,156 5,957,639 EXTON EXTON EASTWICK 176,666 4,895,360 731,888 2,927,551 — — 176,666 4,895,360 5,072,026 1,380,743 3,691,283 731,888 2,927,551 3,659,439 1,075,938 2,583,501 889,001 2,762,888 3,074,728 889,001 5,837,616 6,726,617 1,971,650 4,754,967 4,368,695 EXTON PLAZA 294,378 1,404,778 FEASTERvILLE GETTYSBURG 520,521 2,082,083 74,626 671,630 791,320 127,653 101,519 294,378 2,196,097 2,490,476 98,399 2,392,077 520,521 2,209,736 2,730,257 765,893 1,964,364 74,626 773,149 847,775 748,941 98,834 HARRISBURG, PA 452,888 6,665,238 3,968,043 452,888 10,633,280 11,086,168 6,607,635 4,478,533 HAMBURG HAvERTOWN NORRISTOWN 439,232 — 2,023,428 494,982 1,967,677 2,462,660 442,258 2,020,402 2,215,306 2000 731,888 2,927,551 — 731,888 2,927,551 3,659,439 1,075,938 2,583,501 686,134 2,664,535 3,478,760 774,084 6,055,345 6,829,429 4,015,603 2,813,826 NEW KENSINGTON 521,945 2,548,322 705,540 521,945 3,253,862 3,775,807 2,892,255 883,552 PHILADELPHIA 731,888 2,927,551 — 731,888 2,927,551 3,659,439 1,075,938 2,583,501 PHILADELPHIA PLAZA 209,197 1,373,843 16,952 209,197 1,390,795 1,599,992 51,329 1,548,663 STRAUSS WASHINGTON AvENUE 424,659 990,872 468,821 424,659 1,459,693 1,884,352 261,639 1,622,713 WEXFORD PLAZA 6,413,635 9,774,600 — 6,413,635 9,774,600 16,188,235 336,310 15,851,925 12,500,000 35 NORTH 3RD LLC 451,789 3,089,294 (1,144,319) 451,789 1,944,975 2,396,764 26,847 2,369,917 1628 WALNUT STREET 912,686 2,747,260 456,402 912,686 3,203,661 4,116,347 — 4,116,347 1999 2008 1995 1999 1988 1997 1998 2009 2009 2009 2009 2009 2009 2009 2004 2007 2000 2005 1999 1996 2008 2008 1999 1996 1997 2005 1996 1986 2002 1996 1984 1986 1996 2005 2005 2010 2007 2007 103 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2010 PROPERTIES LAND BUILDING & IMPROVEMENT SUBSEqUENT TO ACqUISITION LAND BUILDING & IMPROVEMENT TOTAL ACCUMULATED DEPRECIATION INITIAL COST TOTAL COST, NET OF ACCUMULATED DEPRECIATION ENCUMBRANCES DATE OF CONSTRUCTION DATE OF ACqUISITION 1701 WALNUT STREET 3,066,099 9,558,521 (4,157,273) 3,066,099 5,401,248 8,467,347 26,672 8,440,675 120-122 MARKET STREET 752,309 2,707,474 (1,863,790) 912,076 683,917 1,595,992 242-244 MARKET STREET 704,263 2,117,182 141,774 704,263 2,258,956 2,963,218 — — 1,595,992 2,963,218 1401 WALNUT ST LOWER ESTATE—UNIT A 1401 WALNUT ST LOWER ESTATE — 7,001,199 231,992 — 7,233,191 7,233,191 839,908 6,393,282 — 32,081,992 (199,854) — 31,882,139 31,882,139 2,135,555 29,746,584 1831-33 CHESTNUT STREET 1,982,143 5,982,231 (735,119) 1,740,416 5,488,839 7,229,255 5,922 7,223,333 1429 WALNUT STREET-COMMERCIAL 5,881,640 17,796,661 1,140,254 5,881,640 18,936,915 24,818,555 1,182,476 23,636,079 6,868,476 1805 WALNUT STREET UNIT A — 17,311,529 258,076 — 17,569,605 17,569,605 — 17,569,605 RICHBORO SPRINGFIELD UPPER DARBY WEST MIFFLIN WHITEHALL 788,761 3,155,044 12,213,938 976,439 15,181,304 16,157,743 7,905,355 8,252,388 9,654,405 919,998 4,981,589 10,222,590 920,000 15,204,177 16,124,177 5,599,905 10,524,272 231,821 927,286 5,779,270 231,821 6,706,556 6,938,377 2,076,190 4,862,186 3,432,546 1,468,342 — — 5,195,577 — — 1,468,342 — 1,468,342 — 1,468,342 — 5,195,577 5,195,577 1,909,486 3,286,091 E. PROSPECT ST. 604,826 2,755,314 1,038,043 604,826 3,793,357 4,398,183 3,165,645 1,232,539 W. MARKET ST. 188,562 1,158,307 — 188,562 1,158,307 1,346,869 1,158,307 188,562 REXvILLE TOWN CENTER 24,872,982 48,688,161 6,121,364 25,678,064 54,004,442 79,682,506 13,448,295 66,234,211 40,338,799 PLAZA CENTRO—COSTCO 3,627,973 10,752,213 1,565,029 3,866,206 12,079,009 15,945,215 4,391,936 11,553,279 PLAZA CENTRO—MALL 19,873,263 58,719,179 5,984,881 19,408,112 65,169,211 84,577,323 23,259,484 61,317,839 PLAZA CENTRO—RETAIL 5,935,566 16,509,748 2,511,621 6,026,070 18,930,865 24,956,935 6,775,400 18,181,535 PLAZA CENTRO—SAM’S CLUB 6,643,224 20,224,758 2,376,854 6,520,090 22,724,746 29,244,836 16,525,972 12,718,864 LOS COLOBOS—BUILDERS SQUARE 4,404,593 9,627,903 1,387,988 4,461,145 10,959,340 15,420,485 4,562,191 10,858,294 LOS COLOBOS—KMART 4,594,944 10,120,147 753,190 4,402,338 11,065,943 15,468,281 4,754,360 10,713,921 LOS COLOBOS I 12,890,882 26,046,669 3,170,127 13,613,375 28,494,303 42,107,678 9,299,488 32,808,190 LOS COLOBOS II 14,893,698 30,680,556 3,270,023 15,142,301 33,701,977 48,844,278 11,241,403 37,602,875 WESTERN PLAZA— MAYAQUEZ ONE WESTERN PLAZA— MAYAGUEZ TWO 10,857,773 12,252,522 1,308,413 11,241,993 13,176,716 24,418,708 4,239,721 20,178,987 16,874,345 19,911,045 1,708,837 16,872,647 21,621,579 38,494,227 6,982,415 31,511,812 MANATI vILLA MARIA SC 2,781,447 5,673,119 423,579 2,606,588 6,271,557 8,878,145 3,384,640 5,493,504 PONCE TOWN CENTER 14,432,778 28,448,754 3,559,102 14,903,024 31,537,610 46,440,634 6,105,421 40,335,214 23,506,981 TRUJILLO ALTO PLAZA 12,053,673 24,445,858 3,150,537 12,289,288 27,360,781 39,650,069 12,517,893 27,132,176 MARSHALL PLAZA, CRANSTON RI CHARLESTON CHARLESTON FLORENCE GREENvILLE 1,886,600 7,575,302 1,690,274 1,886,600 9,265,576 11,152,176 3,195,227 7,956,950 730,164 3,132,092 18,425,004 730,164 21,557,096 22,287,260 4,566,614 17,720,646 1978 1,744,430 6,986,094 4,219,443 1,744,430 11,205,537 12,949,967 4,046,538 8,903,429 1,465,661 6,011,013 249,832 1,465,661 6,260,845 7,726,506 2,108,201 5,618,305 2,209,812 8,850,864 865,822 2,209,811 9,716,687 11,926,498 3,234,865 8,691,633 CHERRYDALE POINT 5,801,948 32,055,019 WOODRUFF SHOPPING CENTER 3,110,439 15,501,117 — — 5,801,948 32,055,019 37,856,967 1,335,634 36,521,333 36,966,957 3,110,439 15,501,117 18,611,556 38,486 18,573,069 NORTH CHARLESTON 744,093 2,974,990 257,733 744,093 3,232,723 3,976,815 915,464 3,061,351 1,373,683 N. CHARLESTON 2,965,748 11,895,294 1,797,985 2,965,748 13,693,278 16,659,027 4,484,018 12,175,009 MADISON — 4,133,904 2,754,378 — 6,888,282 6,888,282 5,217,253 1,671,029 1978 HICKORY RIDGE COMMONS 596,347 2,545,033 95,097 596,347 2,640,130 3,236,477 686,088 2,550,389 2007 2007 2007 2008 2008 2007 2008 2008 1986 1983 1996 1986 1996 1986 1986 2006 2006 2006 2006 2006 2006 2006 2006 2006 2006 2006 2006 2006 2006 1998 1995 1997 1997 2009 2010 2000 1997 2000 104 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2010 PROPERTIES LAND BUILDING & IMPROVEMENT SUBSEqUENT TO ACqUISITION LAND BUILDING & IMPROVEMENT TOTAL ACCUMULATED DEPRECIATION INITIAL COST TOTAL COST, NET OF ACCUMULATED DEPRECIATION ENCUMBRANCES DATE OF CONSTRUCTION DATE OF ACqUISITION TROLLEY STATION 3,303,682 13,218,740 157,749 3,303,682 13,376,489 16,680,171 4,179,302 12,500,870 8,734,067 RIvERGATE STATION 7,135,070 19,091,078 1,904,861 7,135,070 20,995,939 28,131,009 5,570,018 22,560,991 MARKET PLACE AT RIvERGATE 2,574,635 10,339,449 1,179,393 2,574,635 11,518,842 14,093,477 3,825,883 10,267,594 RIvERGATE, TN 3,038,561 12,157,408 4,425,351 3,038,561 16,582,759 19,621,320 4,834,235 14,787,085 CENTER OF THE HILLS, TX 2,923,585 11,706,145 1,114,585 2,923,585 12,820,730 15,744,315 4,210,185 11,534,130 10,194,031 ARLINGTON 3,160,203 2,285,378 — 3,160,203 2,285,378 5,445,582 771,112 4,674,469 DOWLEN CENTER 2,244,581 — (722,251) 484,828 1,037,502 1,522,330 45,321 1,477,008 BURLESON BAYTOWN 9,974,390 810,314 (9,411,013) 1,373,692 — 1,373,692 — 1,373,692 500,422 2,431,651 681,655 500,422 3,113,306 3,613,728 1,025,939 2,587,789 LAS TIENDAS PLAZA 8,678,107 — 24,367,950 7,943,925 25,102,132 33,046,057 1,126,343 31,919,714 CORPUS CHRISTI, TX — 944,562 3,208,000 — 4,152,562 4,152,562 1,000,822 3,151,740 DALLAS 1,299,632 5,168,727 7,497,651 1,299,632 12,666,378 13,966,010 9,997,732 3,968,277 MONTGOMERY PLAZA 6,203,205 PRESTON LEBANON CROSSING KDI-LAKE PRAIRIE TOWN CROSSING 13,552,180 7,897,491 — — — 45,161,529 6,203,205 45,161,529 51,364,734 5,854,887 45,509,846 26,559,699 12,163,694 27,948,185 40,111,879 901,429 39,210,450 24,122,448 6,783,464 25,236,475 32,019,939 1,192,982 30,826,956 CENTER AT BAYBROOK 6,941,017 27,727,491 4,472,318 7,063,186 32,077,640 39,140,826 9,601,700 29,539,127 HARRIS COUNTY 1,843,000 7,372,420 1,425,477 2,003,260 8,637,637 10,640,897 2,876,942 7,763,956 2002 2000 2005 1969 2003 2006 2006 CYPRESS TOWNE CENTER 6,033,932 — (1,633,278) 2,251,666 2,148,988 4,400,654 70,029 4,330,626 2003 SHOPS AT vISTA RIDGE 3,257,199 13,029,416 373,296 3,257,199 13,402,711 16,659,911 4,440,964 12,218,947 vISTA RIDGE PLAZA 2,926,495 11,716,483 2,243,161 2,926,495 13,959,645 16,886,139 4,480,375 12,405,765 vISTA RIDGE PHASE II 2,276,575 9,106,300 557,650 2,276,575 9,663,950 11,940,525 2,931,492 9,009,034 SOUTH PLAINES PLAZA, TX 1,890,000 7,555,099 144,355 1,890,000 7,699,454 9,589,454 2,556,478 7,032,976 MESQUITE 520,340 2,081,356 943,427 520,340 3,024,783 3,545,123 1,162,385 2,382,738 MESQUITE TOWN CENTER 3,757,324 15,061,644 2,461,177 3,757,324 17,522,821 21,280,145 5,614,091 15,666,054 NEW BRAUNSFELS 840,000 3,360,000 PARKER PLAZA 7,846,946 — PLANO 500,414 2,830,835 — — — 840,000 3,360,000 4,200,000 647,462 3,552,538 7,846,946 — 7,846,946 — 7,846,946 2005 500,414 2,830,835 3,331,249 1,028,884 2,302,366 SOUTHLAKE OAKS 3,011,260 7,703,844 (102,882) 3,019,951 7,592,272 10,612,223 1,744,132 8,868,091 6,341,590 WEST OAKS OGDEN 500,422 2,001,687 26,291 500,422 2,027,978 2,528,400 770,439 1,757,961 213,818 855,275 4,084,007 850,699 4,302,401 5,153,100 1,787,467 3,365,633 1967 COLONIAL HEIGHTS 125,376 3,476,073 190,178 125,376 3,666,251 3,791,627 1,026,130 2,765,497 OLD TOWN vILLAGE 4,500,000 41,569,735 (1,894,259) 4,500,000 39,675,476 44,175,476 341,043 43,834,433 MANASSAS RICHMOND RICHMOND vALLEY vIEW SHOPPING CENTER 1,788,750 7,162,661 516,524 1,788,750 7,679,185 9,467,935 2,586,333 6,881,602 82,544 2,289,288 280,600 82,544 2,569,889 2,652,432 585,450 2,066,982 670,500 2,751,375 — 670,500 2,751,375 3,421,875 1,100,198 2,321,677 3,440,018 8,054,004 1,059,146 3,440,018 9,113,150 12,553,168 1,398,538 11,154,630 POTOMAC RUN PLAZA 27,369,515 48,451,209 (272,182) 27,369,515 48,179,027 75,548,542 6,281,483 69,267,059 43,032,435 MANCHESTER SHOPPING CENTER 2,722,461 6,403,866 639,555 2,722,461 7,043,421 9,765,882 2,021,791 7,744,092 AUBURN NORTH 7,785,841 18,157,625 60,221 7,785,841 18,217,846 26,003,688 4,001,576 22,002,112 GARRISON SQUARE 1,582,500 1,985,522 — 1,582,500 1,985,522 3,568,022 368,131 3,199,892 CHARLES TOWN 602,000 3,725,871 11,081,315 602,000 14,807,186 15,409,186 7,953,643 7,455,542 RIvERWALK PLAZA 2,708,290 10,841,674 327,099 2,708,290 11,168,773 13,877,063 3,409,932 10,467,131 BLUE RIDGE 12,346,900 71,529,796 (587,699) 19,618,371 63,670,626 83,288,997 14,257,622 69,031,375 17,069,987 1998 2004 1998 1998 2008 1997 1996 1997 1998 1997 1998 1998 1998 1998 1995 1998 2003 1996 2008 1996 1999 2007 1997 1999 1995 2004 2008 2004 2007 2009 1985 1999 2005 105 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE III—REAL ESTATE AND ACCUMULATED DEPRECIATION DECEMBER 31, 2010 PROPERTIES LAND BUILDING & IMPROVEMENT SUBSEqUENT TO ACqUISITION LAND BUILDING & IMPROVEMENT TOTAL ACCUMULATED DEPRECIATION INITIAL COST TOTAL COST, NET OF ACCUMULATED DEPRECIATION ENCUMBRANCES DATE OF CONSTRUCTION DATE OF ACqUISITION BRAZIL-HORTOLANDIA 2,281,541 BRAZIL-RIO CLARO 1,300,000 — — 2,497,022 3,035,796 1,742,767 4,778,563 — 4,778,563 4,794,214 1,797,434 4,296,780 6,094,214 100,697 5,993,517 BRAZIL-vALINHOS 5,204,507 14,997,200 19,557,228 3,440,765 36,318,170 39,758,935 1,110,689 38,648,246 CHILE-EKONO 414,730 — 703,593 465,070 653,253 1,118,323 21,289 1,097,034 CHILE-vICUNA MACKENA 362,556 5,205,439 (778,683) 2,028,066 2,761,246 4,789,312 75,767 4,713,545 12,462,220 CHILE-vINA DEL MAR 11,096,948 720,781 13,483,903 16,569,936 8,731,696 25,301,632 MEXICO—HERMOSILLO 11,424,531 — 33,639,841 12,518,642 32,545,730 45,064,372 — — 25,301,632 45,064,372 MEXICO-GIGANTE ACQ. 7,568,417 19,878,026 (2,438,163) 6,153,583 18,854,697 25,008,280 4,407,452 20,600,827 MEXICO-MOTOROLA 47,272,528 MEXICO-MULTIPLAZA OJO DE AGUA 4,089,067 — — MEXICO-NON ADM BT-LOS 60,416,004 41,122,929 66,565,603 107,688,532 — 107,688,532 11,989,329 4,452,807 11,625,589 16,078,396 445,319 15,633,077 CABOS 10,873,070 1,257,517 10,010,535 9,575,128 12,565,994 22,141,122 1,040,782 21,100,340 2008 2009 2008 2008 2008 2008 2008 2006 MEXICO-NON ADM—PLAZA SAN JUAN 9,631,035 — (212,031) 8,407,498 1,011,506 9,419,004 278,125 9,140,879 2006 MEXICO-NON ADM-GRAN PLZ CANCUN 13,976,402 30,219,719 (4,877,672) 3,642,766 35,675,683 39,318,449 4,619,234 34,699,215 MEXICO-NON ADM-PLAZA LAGO REAL 11,336,743 MEXICO-NON BUS ADM- MULT.CANCUN MEXICO-NON BUS ADM—LINDAvISTA MEXICO-NON ADM BUS- NUEvO LAREDO MEXICO-PACHUCA (WALMART) 4,471,987 19,352,453 10,627,540 3,621,985 MEXICO-PLAZA CENTENARIO 3,388,861 — — — — — — 9,167,520 9,987,880 10,516,382 20,504,262 12,275,835 4,878,420 11,869,402 16,747,822 — — 20,504,262 16,747,822 26,466,350 17,292,546 28,526,258 45,818,804 1,543,830 44,274,974 21,026,972 9,123,331 22,531,181 31,654,512 2,366,976 29,287,536 5,590,765 3,316,073 5,896,677 9,212,750 1,324,247 7,888,503 4,256,891 2,831,153 4,814,600 7,645,753 119,096 7,526,657 MEXICO-PLAZA SORIANA 2,639,975 346,945 399,560 2,491,473 895,007 3,386,480 — 3,386,480 MEXICO-RHODESIA 3,924,464 MEXICO-RIO BRAvO HEB 2,970,663 MEXICO-SALTILLO 2 11,150,023 — — — 9,811,252 4,735,184 9,000,532 13,735,716 68,753 13,666,963 12,535,278 3,452,867 12,053,074 15,505,941 — 15,505,941 17,503,997 9,887,530 18,766,490 28,654,020 3,429,328 25,224,692 MEXICO-SAN PEDRO 3,309,654 13,238,616 (2,521,206) 3,612,613 10,414,451 14,027,064 3,985,290 10,041,774 MEXICO-TAPACHULA 13,716,428 MEXICO-TIJUANA 2000 LAND PURCHASE 1,200,000 — — 20,903,845 11,884,663 22,735,609 34,620,272 128,692 34,491,580 124,720 1,324,720 — 1,324,720 — 1,324,720 MEXICO-WALDO ACQ. 8,929,278 16,888,627 (3,063,690) 7,485,678 15,268,537 22,754,215 2,120,747 20,633,468 2006 2006 2005 2009 2005 PERU-LIMA 811,916 — 1,962,321 933,511 1,840,726 2,774,237 39,155 2,735,082 2008 BALANCE OF PORTFOLIO 133,248,688 4,492,127 (58,642,772) 3,661,944 75,436,100 79,098,043 30,918,043 48,180,000 TOTALS 1,835,426,402 1,946,727,046 6,646,033,173 8,592,760,219 1,549,380,256 7,043,379,963 1,076,565,923 2007 2008 2007 2007 2007 2007 2007 2007 2008 2006 2007 2009 2007 106 Depreciation and amortization are provided on the straight-line method over the estimated useful lives of the assets as follows: Buildings 15 to 50 years Fixtures, building, leasehold and tenant improvements (including certain identified intangible assets) Terms of leases or useful lives, whichever is shorter The aggregate cost for Federal income tax purposes was approximately $7.4 billion at December 31, 2010. The changes in total real estate assets for the years ended December 31, 2010, 2009 and 2008, are as follows: 2010 2009 2008 Balance, beginning of period 8,882,341,499 7,818,916,120 7,325,034,819 Acquisitions Improvements 83,833,304 7,136,240 194,097,146 115,646,379 224,554,670 315,921,438 Transfers from (to) unconsolidated joint ventures 115,482,953 933,714,955 194,579,632 Sales Assets held for sale (603,652,663) (48,893,544) (123,943,216) (4,445,309) — (5,498,006) Adjustment of fully depreciated assets (15,047,644) (19,779,509) — Adjustment of property carrying values (17,601,053) (52,100,000) (7,900,000) Change in foreign exchange rates 36,202,753 18,792,567 (73,375,693) Balance, end of period 8,592,760,219 8,882,341,499 7,818,916,120 The changes in accumulated depreciation for the years ended December 31, 2010, 2009, 2008 are as follows: Balance, beginning of period Depreciation for year 2010 2009 2008 1,343,148,498 1,159,664,489 977,443,829 244,903,628 209,999,870 187,779,442 Transfers from (to) unconsolidated joint ventures — 1,727,895 2,899,587 Sales (23,610,893) (8,464,247) (7,595,547) Adjustment of fully depreciated assets (15,047,644) (19,779,509) — Assets held for sale Balance, end of period (13,333) — (862,822) 1,549,380,256 1,343,148,498 1,159,664,489 Reclassifications: Certain Amounts in the Prior Period Have Been Reclassified in Order to Conform with the Current Period’s Presentation. 107 KIMCO REALTY CORPORATION AND SUBSIDIARIES SCHEDULE IV—MORTGAGE LOANS ON REAL ESTATE AS OF DECEMBER 31, 2010 (in thousands) Type of Loan/Borrower Mortgage Loans: Description Location(3) Interest Accrual Rates Interest Payment Rates Final Maturity Date Periodic Payment Terms(1) Prior Liens Borrower A Apartments Montreal, Quebec Borrower B Retail Development Ontario, Canada New York, NY Guadalajara, Mexico various, Mexico Arboledas, Mexico various, Mexico Guadalajara, Mexico Miami, FL Borrower C Medical Center Borrower D Retail Borrower E Retail Borrower F Retail Borrower G Retail Borrower H Retail Borrower I Retail Individually < 3% Lines of Credit: Individually < 3% Other: Individually < 3% Capitalized loan costs Total 8.50% 8.50% 6/27/2013 8.50% 8.50% 4/13/2011 Libor + 3.25% or Prime +1.75% Libor + 3.25% or Prime +1.75% 10/19/2012 12.00% 12.00% 9/1/2016 10.00% 10.00% 12/31/2011 8.10% 8.10% 12/31/2012 10.00% 10.00% 12/31/2011 12.00% 12.00% 9/1/2016 7.57% 7.57% 6/1/2019 I I I I I I I I I — — — — — — — — — — — — Face Amount of Mortgages or Maximum Available Credit(2) Carrying Amount of Mortgages(2)(3) $ 23,800 $ 23,297 16,906 16,804 18,000 8,026 5,800 13,000 5,600 5,307 6,509 29,782 9,480 5,802 5,782 5,421 5,400 4,370 4,203 22,497 132,730 103,056 2,400 1,405 3,959 3,857 175 $ 139,089 $ 108,493 (1) I = Interest only (2) The instruments actual cash flows are denominated in U.S. dollars, Canadian dollars and Mexican pesos as indicated by the geographic location above (3) The aggregate cost for Federal income tax purposes is $108,493 The Company feels it is not practicable to estimate the fair value of each receivable as quoted market prices are not available. The cost of obtaining an independent valuation on these assets is deemed excessive considering the materiality of the total receivables. For a reconciliation of mortgage and other financing receivables from January 1, 2008 to December 31, 2010 see Note 11 of the Notes to Consolidated Financial Statements included in this annual report of Form 10K. 108 KIMCO REALTY CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES FOR THE TWELVE MONTHS ENDED, DECEMBER 31, 2010 Pretax earnings from continuing operations before adjustment for noncontrolling interests or income loss from equity investees $ 52,334,314 Add: Interest on indebtedness (excluding capitalized interest) 233,543,082 Amortization of debt related expenses Portion of rents representative of the interest factor Distributed income from equity investees 6,972,171 8,087,630 300,937,197 162,859,662 Pretax earnings from continuing operations, as adjusted $ 463,796,859 Fixed charges— Interest on indebtedness (including capitalized interest) $ 248,273,133 Amortization of debt related expenses Portion of rents representative of the interest factor Fixed charges Ratio of earnings to fixed charges 2,803,019 8,087,630 $ 259,163,782 1.79 Exhibit 12.1 109 KIMCO REALTY CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS FOR THE TWELVE MONTHS ENDED, DECEMBER 31, 2010 Exhibit 12.2 Pretax earnings from continuing operations before adjustment for noncontrolling interests or income loss from equity investees Add: Interest on indebtedness (excluding capitalized interest) Amortization of debt related expenses Portion of rents representative of the interest factor Distributed income from equity investees Pretax earnings from continuing operations, as adjusted Combined fixed charges and preferred stock dividends— Interest on indebtedness (including capitalized interest) Preferred dividend factor Amortization of debt related expenses Portion of rents representative of the interest factor Combined fixed charges and preferred stock dividends $ 52,334,314 233,543,082 6,972,171 8,087,630 300,937,197 162,859,662 $ 463,796,859 $ 248,273,133 52,561,623 2,803,019 8,087,630 $ 311,725,405 Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends 1.49 110 CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 Exhibit 31.1 I, David B. Henry, certify that: 1. I have reviewed this annual report on Form 10-K of Kimco Realty Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all mate- rial respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors: a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. Date: February 28, 2011 /s/ David B. Henry David B. Henry Chief Executive Officer 111 CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 Exhibit 31.2 I, Glenn G. Cohen, certify that: 1. I have reviewed this annual report on Form 10-K of Kimco Realty Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all mate- rial respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors: a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. Date: February 28, 2011 /s/ Glenn G. Cohen Glenn G. Cohen Chief Financial Officer 112 SECTION 906 CERTIFICATION Exhibit 32.1 Pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of Kimco Realty Corporation (the “Company”) hereby certifies, to such officer’s knowledge, that: (i) the accompanying Annual Report on Form 10-K of the Company for the year ended December 31, 2010 (the “Report”) fully complies with the requirements of Section 13 (a) or Section 15 (d) of the Securities Exchange Act of 1934, as amended; and (ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: February 28, 2011 Date: February 28, 2011 /s/ David B. Henry David B. Henry Chief Executive Officer /s/ Glenn G. Cohen Glenn G. Cohen Chief Financial Officer 113 Exhibit 99.1 LOCATION ALABAMA HOOvER MOBILE ALASKA ANCHORAGE KENAI ARIZONA GLENDALE GLENDALE GLENDALE MARANA MESA MESA MESA MESA YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) PORTFOLIO TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES OIP OJv KIR OJv 2007 2006 2006 2003 1998 2007 2009 2003 2005 2009 1998 2009 117,942 96.1 BOOKS-A-MILLION 15,530 PETCO 15,000 DOLLAR TREE 365,179 94.9 ACADEMY SPORTS 84,464 vIRGINIA COLLEGE 60,293 OFFICEMAX 10,000 32,363 162,793 60.0 MICHAELS 25,937 BED BATH & BEYOND 25,000 OLD NAvY 19,580 146,759 100.0 HOME DEPOT 146,759 221,388 77.3 FLOOR & DECOR 75,000 SPF FURNISHINGS 45,000 SALON BOUTIQUE 169,257 99.4 WAL-MART 81,535 MOR FURNITURE FOR LESS 40,000 MICHAELS 70,428 83.1 191,008 100.0 LOWE’S HOME CENTER 191,008 1,109,985 92.6 WAL-MART 208,000 BASS PRO SHOPS 170,000 HOME DEPOT 227,627 71.6 SPORTS AUTHORITY 51,154 PETSMART 25,339 STAPLES 151,965 25.9 WALGREENS 14,553 79,748 89.1 MOR FURNITURE FOR LESS 33,234 MICHAELS 25,520 11,000 17,500 102,589 23,942 NORTH PHOENIX 1998 230,164 93.5 BURLINGTON COAT FACTORY 98,054 MICHAELS 23,190 GUITAR CENTER 20,293 PRU OJv OJv PRU PRU PRU BIG BIG UBS PRU PRU UBS 1998 1998 1997 2006 1998 2003 1998 2006 2006 2006 1995 2006 2006 2006 2010 1998 2008 2007 2006 2006 2006 2008 1998 2006 1998 2007 229,707 94.7 FAMSA 28,419 DD’S DISCOUNT 21,406 153,180 80.3 HOME DEPOT 107,724 131,621 94.3 SAFEWAY 62,573 TRADER JOE’S 94,379 76.8 ROSS DRESS FOR LESS 29,765 DOLLAR TREE 11,145 11,450 16,410 100.0 CHAPMAN BMW 16,410 190,174 100.0 LOWE’S HOME CENTER 190,174 195,455 100.0 COSTCO 157,019 JO-ANN FABRICS 13,454 347,236 98.6 FOREvER 21 80,000 ROSS DRESS FOR LESS 27,200 TJ MAXX 26,000 185,247 88.7 RALPHS 45,000 RITE AID 18,235 TRISTONE CINEMA GROUP 11,880 105,082 96.5 15,396 100.0 NORTHGATE GONZALEZ MKT 15,396 77,967 90.6 SAvE MART 41,956 RITE AID 19,120 119,998 80.8 GOODWILL INDUSTRIES 20,000 113,511 100.0 STATER BROTHERS 64,039 160,928 84.3 MARSHALLS 27,000 DOLLAR TREE 16,610 KIDS ‘R’ US 15,062 199,404 76.5 HOME DEPOT 110,861 264,336 95.1 EvANS FURNITURE GALLERIES 57,635 FOOD MAXX 54,239 BED, BATH & BEYOND 25,002 69,812 100.0 RALEY’S 62,098 19,560 89.3 341,577 88.2 LA CURACAO 104,465 ROSS DRESS FOR LESS 30,730 DD’S DISCOUNT 168,264 94.4 DOLLAR TREE 25,060 PETSMART 24,225 RITE AID 73,352 93.5 STATER BROTHERS 43,235 356,335 100.0 COSTCO 154,569 WAL-MART 153,578 NAvCARE 213,532 98.9 MARSHALLS 32,000 NORDSTROM RACK 30,809 BED BATH & BEYOND 491,998 93.5 COSTCO 114,112 HOME DEPOT 100,000 UFC GYMS 148,805 97.0 vONS 55,650 PETSMART 24,515 ANNA’S LINENS 25,000 21,440 14,580 30,644 45,000 15,120 PHOENIX PHOENIX PHOENIX PHOENIX PHOENIX TUCSON CALIFORNIA ALHAMBRA ANAHEIM ANAHEIM ANAHEIM ANAHEIM ANGEL’S CAMP ANTELOPE BELLFLOWER CARLSBAD CARMICHAEL CHICO CHICO CHICO CHINO CHINO CHINO HILLS CHULA vISTA COLMA CORONA CORONA 114 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME MAJOR LEASES COvINA KIR 2000 278,562 88.8 LOWE’S HOME CENTER 111,348 MICHAELS 17,508 JO-ANN FABRICS GLA 13,000 Exhibit 99.1 CUPERTINO DALY CITY DUBLIN EL CAJON EL CAJON ELK GROvE ELK GROvE ELK GROvE ELK GROvE ENCINITAS ESCONDIDO FAIR OAKS FOLSOM FREMONT FREMONT FRESNO FRESNO FULLERTON GARDENA GRANITE BAY GRASS vALLEY HACIENDA HEIGHTS HAYWARD PRU OJv CPP PRU PRU PRU PRU PRU OJv PRU PRU BIG BIG PRU PRU PRU OIP PRU HUNTINGTON BEACH PRU JACKSON LA MIRADA LA vERNE LAGUNA HILLS LINCOLN LIvERMORE LOS ANGELES LOS ANGELES MANTECA MANTECA MERCED MONTEBELLO MORAGA MORGAN HILL NAPA NORTHRIDGE NOvATO BIG OJv UBS PRU PRU BIG KIR BIG OJv OCEANSIDE PRU 2006 2002 114,533 90.6 99 RANCH MARKET 29,657 608,320 98.7 HOME DEPOT 109,000 BURLINGTON COAT FACTORY 55,000 SAFEWAY 52,000 2006 154,470 100.0 ORCHARD SUPPLY HARDWARE 35,829 MARSHALLS 32,000 ROSS DRESS FOR LESS 31,060 2003 2010 2006 2006 2006 2006 2006 2006 2006 2003 2007 2006 2009 2006 2010 2006 2006 2006 2010 2006 2006 2008 1998 2010 2007 2007 2006 2006 2010 2006 2006 2006 2000 2010 2003 2006 2005 2009 2006 128,343 100.0 KOHL’S 94,926 MICHAELS 28,417 98,396 96.9 RITE AID 27,642 ROSS DRESS FOR LESS 24,000 PETCO 10,000 89,216 93.0 BEL AIR MARKET 56,435 34,015 30,130 83.4 91.5 7,800 100.0 124,457 85.1 TOTAL WOMAN GYM 13,000 231,157 87.0 LA FITNESS 40,000 vONS 40,000 CvS 22,880 104,866 92.4 108,255 100.0 KOHL’S 108,255 504,666 94.9 SAFEWAY 54,741 BED BATH & BEYOND 39,830 MARSHALLS 30,028 131,239 96.2 SAvE MART 48,000 BALLY TOTAL FITNESS 24,145 121,228 100.0 BED BATH & BEYOND 36,725 SPORTS AUTHORITY 35,868 ROSS DRESS FOR LESS 30,187 102,581 52.5 268,091 97.8 TOYS’R ‘US 66,960 AMC THEATRES 74,653 OFFICE DEPOT 30,000 65,987 98.0 99 RANCH MARKET 22,000 RITE AID 19,300 140,184 86.8 RALEY’S 60,114 217,461 91.9 RALEY’S 60,114 JCPENNEY 37,842 SOUTH YUBA CLUB 135,012 100.0 ALBERTSONS 44,128 SOFA ITALIA 12,000 vIvO DANCE 12,567 10,000 80,911 92.3 99 CENTS ONLY STORES 29,300 BIG LOTS 148,756 84.2 vONS 40,800 CvS 67,665 100.0 RALEY’S 62,625 23,334 20,120 261,782 95.1 TOYS “R” US 45,388 U.S. POSTAL SERvICE 26,577 MOvIES 7 DOLLAR THEATRE 24,900 227,575 93.5 TARGET 114,732 vONS 160,000 100.0 MACY’S 160,000 119,559 100.0 SAFEWAY 55,342 CvS 44,128 23,077 104,363 91.9 ROSS DRESS FOR LESS 24,000 RICHARD CRAFTS 12,061 BIG 5 SPORTING GOODS 10,000 169,689 100.0 KMART 82,504 SUPERIOR MARKETS 34,420 163,695 94.5 RALPHS/FOOD 4 LESS 38,950 RITE AID 18,160 GENERAL DISCOUNT 18,000 96,393 87.8 PAK ‘N SAvE 58,090 BIG 5 SPORTING GOODS 10,000 19,455 27,350 94.4 81.6 251,489 98.5 SEARS 105,000 TOYS “R” US 46,270 AMC THEATRES 39,263 163,630 84.4 CvS 25,844 U.S. POSTAL SERvICE 14,380 103,362 100.0 HOME DEPOT 103,362 349,530 100.0 TARGET 116,000 HOME DEPOT 100,238 RALEY’S 60,890 158,812 69.5 DSW SHOE WAREHOUSE 43,000 GELSON’S MARKET 36,815 133,828 94.6 SAFEWAY 51,199 RITE AID 24,769 DOLLAR TREE 366,775 81.6 ROSS DRESS FOR LESS 30,000 BARNES & NOBLE 25,000 MICHAELS 15,708 22,078 115 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES Exhibit 99.1 OCEANSIDE OCEANSIDE ORANGEvALE PACIFICA PACIFICA PLEASANTON POWAY RANCHO CUCAMONGA RANCHO MIRAGE RED BLUFF REDDING REDWOOD CITY RIvERSIDE ROSEvILLE ROSEvILLE SACRAMENTO SAN DIEGO SAN DIEGO SAN DIEGO SAN DIEGO SAN DIEGO SAN DIEGO SAN DIEGO SAN DIEGO SAN DIMAS SAN JOSE SAN LEANDRO SAN LUIS OBISPO SAN RAMON SANTA ANA PRU PRU BIG KIF PRU OJv PRU PRU BIG UBS PRU CPP OJv PRU KIR UBS UBS PRU PRU PRU KIR SANTA CLARITA PRU OJv BIG CPP KIR BIG KIR BIG UBS PRU OJv SANTA ROSA SANTEE SIGNAL HILL STOCKTON TEMECULA TEMECULA TEMECULA TORRANCE TORRANCE TRUCKEE TRUCKEE TURLOCK TUSTIN 116 2006 2006 2010 2004 2006 2007 2005 2006 2006 2006 2006 2009 2008 92,378 88.5 TRADER JOE’S 12,881 87,863 86.5 SMART & FINAL 25,000 USA DISCOUNTERS 23,800 160,811 168,871 87.3 93.1 SAvE MART 62,000 CvS 31,180 U.S. POSTAL SERvICE SAFEWAY 45,892 ROSS DRESS FOR LESS 24,246 RITE AID 15,771 19,085 104,281 92.4 RITE AID 175,000 100.0 MACY’S 23,064 175,000 121,594 93.1 STEIN MART 40,000 HOME GOODS 26,210 OFFICE DEPOT 21,912 56,019 80.0 165,156 63.0 CvS 25,100 23,200 21,876 67.9 41.9 49,429 100.0 ORCHARD SUPPLY HARDWARE 86,108 96.5 BURLINGTON COAT FACTORY 49,429 67,104 2009 188,493 96.3 SPORTS AUTHORITY 43,373 SPROUTS FARMERS MARKET 36,041 ROSS DRESS FOR LESS 27,471 2007 2006 2010 2007 2006 2000 2007 2007 2007 2009 2006 2006 2006 2005 1999 1998 2006 2005 2003 2009 1999 2010 1999 2010 2000 2010 2007 2006 2006 2005 81,171 93.7 SAFEWAY 55,146 188,874 86.3 SEAFOOD CITY 53,842 SD MART 51,639 BIG 5 SPORTING GOODS 10,000 411,375 100.0 COSTCO 203,095 PRICE SELF STORAGE 120,962 CHARLOTTE RUSSE 87,318 225,919 100.0 NORDSTROM 225,919 210,621 81.9 TJ MAXX 31,152 HOME GOODS 30,619 CvS 30,000 117,410 100.0 SPORTS AUTHORITY 38,359 59,414 57,406 49,080 86.7 93.8 98.4 35,000 100.0 CLAIM JUMPER 10,600 154,000 90.7 OFFICEMAX 30,000 ROSS DRESS FOR LESS 27,200 PETCO 15,000 183,180 90.0 WALGREENS 14,000 95,255 92.4 ROSS DRESS FOR LESS 26,706 MICHAELS 19,020 174,428 89.8 vON’S 52,071 MICHAELS 21,006 CvS 16,854 41,913 97.4 PETCO 134,400 100.0 HOME DEPOT 96,662 88.0 ALBERTSONS 41,565 100.0 ACE HARDWARE 10,000 134,400 40,751 12,100 311,498 97.5 24 HOUR FITNESS 36,000 BED BATH & BEYOND 30,000 TJ MAXX 28,000 154,750 97.4 HOME DEPOT 103,423 PETSMART 26,550 174,263 98.7 SUPER UNITED FURNITURE 100,000 COSTCO— FUEL STATION 21,344 GOLD’S GYM 417,202 100.0 WAL-MART 221,639 KOHL’S 88,728 ROSS DRESS FOR LESS 342,336 93.9 KMART 86,479 FOOD 4 LESS 52,640 TRISTONE THEATRES 139,130 89.6 ALBERTSONS 49,770 CvS 17,800 19,500 30,138 29,650 267,677 84.6 MARSHALLS 27,000 ROSS DRESS FOR LESS 25,830 OFFICE DEPOT 24,594 66,958 83.8 ACE HARDWARE 11,910 COOKIN’ STUFF 10,480 41,149 26,553 86.8 59.9 111,558 92.2 RALEY’S 60,114 DECHINA 1 BUFFET, INC. 10,625 685,330 96.3 TARGET 134,639 AMC THEATERS 68,159 WHOLE FOODS MARKET 60,550 Exhibit 99.1 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES PRU PRU OJv PRU PRU OJv PRU PRU PRU BIG BIG OIP OJv OJv KIR OJv KIR OJv TUSTIN TUSTIN TUSTIN UPLAND vALENCIA vALLEJO vISALIA vISTA WALNUT CREEK WESTMINSTER WINDSOR WINDSOR COLORADO AURORA AURORA AURORA COLORADO SPRINGS DENvER ENGLEWOOD FORT COLLINS GREELEY GREENWOOD vILLAGE LAKEWOOD PUEBLO CONNECTICUT BRANFORD DERBY ENFIELD FARMINGTON HAMDEN NORTH HAvEN WATERBURY DELAWARE ELSMERE 2006 2006 2003 2006 2006 2006 2007 2006 2006 2006 2010 2010 207,525 81.4 vONS 41,430 RITE AID 19,072 BIG 5 SPORTING GOODS 10,500 138,348 85.7 RALPHS 36,400 MICHAELS 22,364 108,413 100.0 KMART 108,413 272,626 80.1 HOME DEPOT 98,064 PAvILIONS 63,748 STAPLES 143,070 94.7 RALPHS 45,579 CvS 25,500 150,766 85.8 RALEY’S 60,114 24 HOUR FITNESS 22,000 AARON’S 246,634 53.5 REGAL SEQUOIA MALL 12 31,663 MARSHALLS 30,000 BORDERS BOOKS 24,133 11,200 22,464 122,563 89.7 ALBERTSONS 46,819 CvS 114,733 96.1 CENTURY THEATRES 57,017 COST PLUS 22,154 19,044 208,660 88.8 PAvILIONS 69,445 HOWARD’S APPLIANCES 17,962 127,687 92.0 SAFEWAY 52,610 CvS 107,769 92.2 RALEY’S 56,477 THE 24 HOUR CLUB 19,950 11,468 1998 154,055 86.4 ROSS DRESS FOR LESS 30,187 TJ MAXX 28,140 SPACE AGE FEDERAL CU 11,047 1998 1998 1998 1998 1998 2000 2005 149,882 72.5 ALBERTSONS 41,896 DOLLAR TREE 14,301 KEY BANK 11,250 44,174 62.5 107,310 88.0 RANCHO LIBORIO 65,280 DOLLAR TREE 12,000 18,405 100.0 SAvE-A-LOT 18,405 80,330 97.0 HOBBY LOBBY 50,690 OLD COUNTRY BUFFET 10,000 115,862 100.0 KOHL’S 105,862 GUITAR CENTER 138,818 98.8 BED BATH & BEYOND 27,974 MICHAELS 10,000 21,323 SPROUTS FARMERS MARKET 21,236 2003 196,726 100.0 HOME DEPOT 193,676 1998 2006 2000 2005 2000 1998 1973 1998 1993 82,581 96.3 SAFEWAY 30,809 100.0 GOODWILL INDUSTRIES 49,788 30,809 190,738 100.0 KOHL’S 86,830 BIG Y 46,669 141,258 100.0 LOWE’S HOME CENTER 124,051 148,517 100.0 KOHL’S 88,000 BEST BUY 30,048 184,572 76.4 SPORTS AUTHORITY 50,000 BORDERS BOOKS 34,180 TJ MAXX 345,196 90.6 WAL-MART 89,750 BON-TON 58,604 BOB’S STORES 331,919 96.7 HOME DEPOT 111,500 XPECT DISCOUNT 36,875 TJ MAXX 23,160 49,133 25,050 141,443 100.0 RAYMOUR & FLANIGAN 69,490 STOP & SHOP 66,663 1979 91,718 100.0 BJ’S WHOLESALE CLUB 85,188 WILMINGTON KIF 2004 165,805 100.0 SHOPRITE 58,236 SPORTS AUTHORITY 42,456 RAYMOUR & FLANIGAN 36,000 FLORIDA ALTAMONTE SPRINGS ALTAMONTE SPRINGS BOCA RATON BONITA SPRINGS BOYNTON BEACH BRADENTON UBS KIR 1998 1995 1967 2006 1999 1998 233,817 82.8 BAER’S FURNITURE 60,000 DSW SHOE WAREHOUSE 23,990 MICHAELS 22,000 60,191 44.8 THRIFTKO/THRIFT CENTER 26,953 73,549 86.5 79,676 84.1 PUBLIX 194,924 99.3 ALBERTSONS 54,376 51,195 162,997 88.5 PUBLIX 42,112 TJ MAXX 25,020 JO-ANN FABRICS 15,000 117 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES Exhibit 99.1 1968 2005 2001 2006 2006 2005 1997 1994 2003 1998 2006 1971 1968 2009 2006 1998 2010 2002 1972 2010 1999 2006 2002 2005 2006 1994 2000 1996 2001 2006 1992 1968 1968 1968 1978 1969 1993 1968 1998 2006 2007 2009 1968 1986 1965 30,938 66.7 GRAND CHINA BUFFET 10,500 18,000 100.0 BEALL’S OUTLET 18,000 143,785 84.0 BED BATH & BEYOND 40,000 ROSS DRESS FOR LESS 25,106 PARTY CITY 125,108 97.5 PUBLIX 44,684 ROSS DRESS FOR LESS 32,265 STAPLES 42,030 68.1 212,530 95.9 HOME DEPOT 100,200 JO-ANN FABRICS 49,865 STAPLES 86,342 100.0 TJ MAXX 29,500 ANNA’S LINENS 15,000 55,089 96.3 BIG LOTS 33,517 87,305 100.0 WINN DIXIE 55,944 STAPLES 24,202 12,300 20,347 17,055 37,640 100.0 50,906 131,981 97.6 61.7 PUBLIX C-TOWN 44,840 23,145 131,646 42.9 ALDI 17,000 DEAL$ 10,000 229,034 99.3 REGAL CINEMAS 51,415 L.A. FITNESS 48,479 OFFICE DEPOT 36,929 74,286 73.7 PUBLIX 44,271 23,625 100.0 871,723 99.0 HOME DEPOT 142,280 KMART 114,764 BJ’S 109,973 49,543 100.0 MICHAELS 25,104 HOME GOODS 24,439 209,214 100.0 PUBLIX 56,077 OFFICEMAX 23,500 CvS 257,020 95.6 STEIN MART 36,000 SEARS 28,020 TJ MAXX 205,696 84.0 BURLINGTON COAT FACTORY 77,421 OFFICEMAX 30,000 CHUCK E CHEESE 72,840 94.2 PUBLIX 44,840 51,002 100.0 MICHAELS 27,708 HOME GOODS 23,294 116,000 75.9 HHGREGG 30,030 205,534 76.0 HOME DEPOT 101,915 JO-ANN FABRICS 28,004 173,319 51.2 DOLLAR TREE 10,078 207,365 96.7 KMART 108,842 PUBLIX 48,555 120,699 88.0 WAL-MART 31,979 OFFICEMAX 23,500 DEAL$ 249,906 95.0 ROSS DRESS FOR LESS 30,846 MARSHALLS 27,054 PARTY CITY 86,022 100.0 CHUCK E CHEESE 10,440 14,000 25,200 12,160 10,500 13,200 215,916 92.0 PUBLIX 42,112 AMC THEATRES 30,267 DOLLAR TREE 12,000 149,472 100.0 WAL-MART 101,900 ALDI 108,240 100.0 SAvE-A-LOT 15,190 THINK THRIFT 20,800 13,935 7,101 100.0 181,576 79.3 BABIES R US 44,450 STAPLES 23,500 PARTY CITY 12,700 13,468 100.0 264,729 86.8 WINN DIXIE 56,000 SAM ASH MUSIC 25,460 OFFICE DEPOT 25,117 168,737 96.6 GSI COMMERCE CALL CENTER 81,550 WALGREENS 15,525 GOODWILL INDUSTRIES 12,430 144,399 93.6 JO-ANN FABRICS 35,759 BED BATH & BEYOND 26,274 PARTY CITY 21,000 60,103 91.1 PUBLIX 44,840 349,826 98.3 PUBLIX 56,000 BUY BUY BABY 29,953 OFFICE DEPOT 293,001 88.2 KMART 114,000 SYMS 40,000 MARSHALLS 24,840 27,808 107,000 100.0 HOME DEPOT 105,154 83,380 95.8 PUBLIX 31,200 WALGREENS 79,273 100.0 BABIES R US 40,214 FIRESTONE TIRE 11,880 12,063 KIR UBS UBS OJv OJv UBS UBS OJv CPP OJv OJv UBS OJv OIP KIR BRADENTON BRADENTON BRANDON CAPE CORAL CAPE CORAL CLEARWATER CORAL SPRINGS CORAL SPRINGS CORAL WAY CUTLER RIDGE DELRAY BEACH EAST ORLANDO FERN PARK FORT LAUDERDALE FORT MYERS HIALEAH HOLLYWOOD HOLLYWOOD HOMESTEAD JACKSONvILLE JACKSONvILLE JACKSONvILLE JACKSONvILLE JACKSONvILLE (2) JENSEN BEACH JENSEN BEACH KEY LARGO KISSIMMEE LAKELAND LAKELAND LARGO LARGO LAUDERDALE LAKES LAUDERDALE LAKES LAUDERHILL LEESBURG MARGATE MELBOURNE MELBOURNE MERRITT ISLAND UBS MIAMI MIAMI MIAMI MIAMI MIAMI 118 OJv LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES Exhibit 99.1 MIAMI MIAMI MIAMI MIAMI MIAMI MIDDLEBURG MIRAMAR(2) MOUNT DORA UBS UBS OJv OJv UJv NORTH LAUDERDALE PRU NORTH MIAMI BEACH OCALA ORANGE PARK ORLANDO ORLANDO ORLANDO ORLANDO ORLANDO ORLANDO OvIEDO PLANTATION POMPANO BEACH POMPANO BEACH POMPANO BEACH RIvIERA BEACH SANFORD SARASOTA SARASOTA SARASOTA ST. AUGUSTINE ST. PETERSBURG TALLAHASSEE TAMPA TAMPA TAMPA TAMPA OJv KIR UBS OJv OIP OJv UBS OJv KIR OIP WEST PALM BEACH WEST PALM BEACH OJv WEST PALM BEACH WEST PALM BEACH WINTER HAvEN OJv YULEE GEORGIA 1995 2006 2007 1998 1998 2005 2005 1997 2007 1985 1997 2003 1968 2000 2009 1996 1994 2006 1974 2004 2007 1968 1968 1989 1989 1970 2006 2005 1968 1998 2001 1997 63,604 100.0 PETCO 22,418 PARTY CITY 10,000 63,563 100.0 PUBLIX 60,280 98.3 PUBLIX 29,166 100.0 LEHMAN TOYOTA 17,117 100.0 LEHMAN TOYOTA 50,668 56.2 DOLLAR TREE 156,000 31.4 24 HOUR FITNESS 44,271 45,600 29,166 17,117 10,000 36,025 120,430 99.3 KMART 100,850 250,209 96.5 HOME DEPOT 110,410 CHANCELLOR ACADEMY 46,531 PUBLIX 39,795 108,795 100.0 PUBLIX 51,420 WALGREENS 15,930 260,419 90.8 BEST BUY 30,038 SERvICE MERCHANDI 29,618 JO-ANN FABRICS 25,304 50,299 100.0 BED BATH & BEYOND 25,978 MICHAELS 180,125 66.3 24 HOUR FITNESS 49,875 TJ MAXX 179,065 98.6 KMART 101,665 PUBLIX 24,321 26,843 55,000 154,356 92.8 MARSHALLS 30,027 OFF BROADWAY SHOES 24,991 GOLFSMITH GOLF CENTER 20,179 132,856 100.0 ROSS DRESS FOR LESS 43,611 BIG LOTS 25,375 ALDI 1968 113,262 94.4 THE FITNESS PROGRAM 31,000 HSN 17,500 PARADISE HALL 80,345 87.7 78,093 100.0 PUBLIX 60,414 100.0 WHOLE FOODS MARKET 44,270 41,440 140,312 85.1 WINN DIXIE 51,703 CvS 11,200 103,173 100.0 KMART 66,613 89.9 SAvE-A-LOT 97,425 16,605 46,107 92.2 DD’S DISCOUNT 20,707 GOODWILL INDUSTRIES 12,000 158,687 84.9 ROSS DRESS FOR LESS 30,165 ALDI 24,725 129,700 95.0 SWEETBAY 46,295 ACE HARDWARE 15,000 AARON’S 102,455 100.0 TJ MAXX 29,825 OFFICEMAX 23,800 DOLLAR TREE 65,320 81.9 PUBLIX 62,000 100.0 HOBBY LOBBY 44,840 57,000 118,574 100.0 KASH N’ KARRY 45,871 TJ MAXX 29,958 YOU FIT 105,655 77.8 STEIN MART 31,920 340,460 96.9 BEST BUY 46,121 JO-ANN FABRICS 45,965 BED BATH & BEYOND 24,700 15,000 10,000 19,700 15,595 40,852 26,250 205,634 100.0 2004 197,181 98.4 AMERICAN SIGNATURE LOWE’S HOME CENTER 49,106 STAPLES 27,000 ROSS DRESS FOR LESS 167,000 2007 2009 1967 1995 2009 1973 2003 100,200 84.2 357,537 86.2 KMART 123,011 WINN DIXIE 53,291 ROSS DRESS FOR LESS 28,102 81,073 41.4 79,904 86.4 BABIES R US 40,960 46,999 89.5 GARDENS CINEMAX 20,000 95,188 95.8 BIG LOTS 41,200 JO-ANN FABRICS 12,375 BUDDY’S HOME 10,225 FURNISHINGS 59,426 81.2 PETCO 15,335 ALPHARETTA 2008 130,515 89.2 KROGER 62,000 119 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME MAJOR LEASES Exhibit 99.1 GLA 19,838 2008 2007 2001 1995 2006 2008 1993 1995 2001 2004 315,525 92.6 DAYS INN 93,634 KROGER 56,647 CLASSY KLUTTER 175,835 82.7 MARSHALLS 36,598 BEST BUY 36,000 OFF BROADWAY SHOE 23,500 532,536 98.3 HOBBY LOBBY 65,864 SPORTS AUTHORITY 44,118 HHGREGG 44,000 112,537 98.8 TJ MAXX 35,200 ROSS DRESS FOR LESS 30,187 RUGGED WEARHOUSE 11,920 78,025 89.9 WHOLE FOODS MARKET 70,125 197,957 94.7 HHGREGG 32,026 ROSS DRESS FOR LESS 30,187 COST PLUS 187,076 93.6 BED BATH & BEYOND 35,005 TJ MAXX 33,067 MARSHALLS 84,628 92.6 PUBLIX 40,653 STAPLES 22,800 AUTOZONE 311,093 99.4 KOHL’S 86,584 BELK 58,416 HHGREGG 21,000 31,000 10,125 34,000 175,396 100.0 LOWE’S HOME CENTER 169,896 2006 17,897 69.9 2005 20,000 75.0 STEvENS-HENAGER COLLEGE 15,000 2005 1998 2002 1998 1972 2003 1996 1997 1998 2001 1997 1997 1997 1997 1998 1999 1997 1998 1972 1998 1997 1996 2006 2005 1997 1997 1998 361,991 67.1 BEST BUY 57,960 vALUE CITY 45,600 GOLFSMITH 25,000 89,138 100.0 CERMAK PRODUCE AURORA 89,138 274,282 97.8 KOHL’S 86,584 HOBBY LOBBY 51,214 BUY BUY BABY 34,624 98,860 85.1 KMART 81,490 188,250 99.2 SCHNUCK MARKETS 68,800 TOYS “R” US 46,070 BARNES & NOBLE 22,192 73,951 100.0 JEWEL-OSCO 80,535 100.0 CARSON PIRIE SCOTT 65,028 80,535 159,647 92.6 MARSHALLS 30,557 BEST BUY 28,400 BED BATH & BEYOND 25,280 111,985 100.0 HOBBY LOBBY 70,695 CARLE CLINIC 41,290 111,720 100.0 BEST BUY 45,350 DICK’S SPORTING GOODS 30,247 MICHAELS 102,011 100.0 BURLINGTON COAT FACTORY 75,623 RAINBOW SHOPS 13,770 BEAUTY ONE 86,894 100.0 KMART 86,894 3,500 100.0 79,903 100.0 80,624 100.0 HOBBY LOBBY 65,502 MONKEY JOE’S 15,122 145,153 88.5 MICHAEL’S FRESH MARKET 42,610 DOLLAR TREE 15,808 WALGREENS 141,906 100.0 TJ MAXX 54,850 BEST BUY 54,400 OLD NAvY 100,000 100.0 HOME DEPOT EXPO 100,000 24,123 12,618 12,000 28,500 186,432 100.0 ELGIN MALL 81,550 ELGIN FARMERS PRODUCTS 31,358 AARON SALES & LEASE 10,000 192,073 100.0 KMART 113,127 OFFICEMAX 27,932 PACE-159 ASSOCIATES, LLC 14,000 98,371 100.0 KMART 96,871 104,688 100.0 GANDER MOUNTAIN 104,688 167,477 79.7 BED BATH & BEYOND 35,000 COST PLUS 17,300 EARTHSPORT OUTFITTERS 12,279 9,029 100.0 157,885 97.8 SPORTS AUTHORITY 38,655 MARSHALLS 31,156 ROSS DRESS FOR LESS 192,547 100.0 KOHL’S 101,097 HOBBY LOBBY 56,596 TRUE vALUE 29,604 27,619 89,692 100.0 BURLINGTON COAT FACTORY 87,547 ATLANTA ATLANTA AUGUSTA AUGUSTA DULUTH SAvANNAH SAvANNAH SAvANNAH SNELLvILLE vALDOSTA HAWAII KIHEI IDAHO NAMPA ILLINOIS AURORA AURORA BATAvIA BELLEvILLE BLOOMINGTON OIP KIR UBS KIR OJv UBS KIR BLOOMINGTON OJv KIR UBS BRADLEY CALUMET CITY CHAMPAIGN CHAMPAIGN CHICAGO CHICAGO COUNTRYSIDE CRESTWOOD CRYSTAL LAKE DOWNERS GROvE DOWNERS GROvE DOWNERS GROvE ELGIN FAIRvIEW HEIGHTS FOREST PARK GENEvA KILDEER LAKE ZURICH MATTESON MOUNT PROSPECT MUNDELIEN 120 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES Exhibit 99.1 1997 102,327 100.0 BURLINGTON COAT FACTORY 100,200 1997 1997 2001 1997 1970 1997 2008 2003 2005 2003 1998 1997 1998 2005 1998 OJv OJv 116,914 100.0 KMART 116,914 183,893 100.0 KMART 140,580 CHUCK E CHEESE 176,263 100.0 HOME DEPOT 121,903 BIG LOTS 15,934 30,000 LOYOLA UNIv. MED CENTER 13,000 15,535 100.0 60,000 156,067 100.0 KMART 122,605 89,047 100.0 BEST BUY 45,760 ROSS DRESS FOR LESS 34,000 37,225 100.0 FAIR LANES RLG MEADOWS 37,225 27,947 100.0 GOODWILL RETAIL 21,000 629,532 97.6 DICK’S SPORTING GOODS 177,971 CARSON PIRIE SCOTT 144,426 LOEWS THEATRES 105,224 84,628 100.0 WHOLE FOODS 58,147 CRATE AND BARREL 58,455 100.0 MARSHALLS 30,406 OLD NAvY 81,000 100.0 vALUE CITY 81,000 26,481 28,049 5,883 100.0 144,868 93.0 HOLLYWOOD BLvD CINEMA 48,118 SHOE CARNIvAL 15,000 1986 192,377 85.5 BURLINGTON COAT FACTORY 80,027 1970 1997 1964 1997 1971 1998 2003 1998 1996 2006 1997 1999 1997 1996 168,577 96.0 BABY SUPERSTORE 49,426 TOYS “R” US 47,000 TJ MAXX 114,684 100.0 KMART 112,074 165,255 238,288 97.2 77.4 KROGER 63,468 AJ WRIGHT 29,404 CvS HOME DEPOT 133,868 JO-ANN FABRICS 18,728 PET SUPPLIES PLUS 20,830 12,800 12,979 90,500 92.9 KROGER 80,000 80,981 100.0 HHGREGG 42,280 BED BATH & BEYOND 38,701 271,335 88.2 BED BATH & BEYOND 28,000 TJ MAXX 28,000 DSW SHOE WAREHOUSE 26,069 81,668 100.0 MENARD 81,668 90,000 100.0 KMART 90,000 190,336 100.0 HOBBY LOBBY 55,000 TJ MAXX 25,160 BED BATH & BEYOND 20,400 91,035 100.0 KMART 91,035 149,059 83.4 BEST BUY 35,280 OFFICEMAX 24,428 PETSMART 22,751 82,979 100.0 SHOPKO 111,847 100.0 HOME DEPOT 82,979 111,847 1996 104,074 100.0 HOBBY LOBBY 65,045 TJ MAXX 29,029 SHOE CARNIvAL 10,000 NAPERvILLE NORRIDGE OAK LAWN OAKBROOK TERRACE ORLAND PARK OTTAWA PEORIA ROCKFORD ROLLING MEADOWS ROUND LAKE BEACH SCHAUMBURG SCHAUMBURG SKOKIE STREAMWOOD WAUKEGAN WOODRIDGE INDIANA EvANSvILLE GREENWOOD GRIFFITH SOUTH BEND IOWA CLIvE COUNCIL BLUFFS DAvENPORT DES MOINES DUBUQUE SOUTHEAST DES MOINES WATERLOO KANSAS EAST WICHITA OvERLAND PARK WICHITA KENTUCKY BELLEvUE FLORENCE INDIANAPOLIS OJv LAFAYETTE LAFAYETTE MISHAWAKA SOUTH BEND OJv KIR KIR KIF 1996 2006 1998 1976 2004 96,011 100.0 DICK’S SPORTING GOODS 48,933 GORDMANS 47,078 120,164 97.7 HOME DEPOT 113,969 133,771 100.0 BEST BUY 45,300 TJ MAXX 30,000 NORTHERN TOOL 18,040 53,695 100.0 KROGER 45,695 99,578 95.0 DICK’S SPORTING GOODS 60,250 CHRISTMAS TREE SHOPS 32,138 LEXINGTON 1993 234,943 93.6 BEST BUY 45,750 BED BATH & BEYOND 43,072 TOYS “R” US 41,900 121 LOCATION LOUISIANA YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) PORTFOLIO TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES BATON ROUGE 1997 349,857 96.1 BURLINGTON COAT FACTORY 80,450 STEIN MART 40,000 K&G MEN’S COMPANY 32,723 Exhibit 99.1 HARvEY HOUMA 2008 1999 174,362 96.8 BEST BUY 45,733 MICHAELS 24,626 BARNES & NOBLE 98,586 100.0 BURKE’S OUTLET STORE 23,500 MICHAELS 20,023 SHOE CARNIvAL LAFAYETTE 1997 244,768 100.0 STEIN MART 37,736 HOME FURNITURE COMPANY 36,000 TJ MAXX 23,000 11,500 32,556 20,000 15,000 29,405 92.1 126,601 100.0 MARSHALLS 30,000 ROSS DRESS FOR LESS 29,975 BED BATH & BEYOND 93,669 89.0 OFFICEMAX 23,500 BARNES & NOBLE 23,100 OLD NAvY 78,771 86.4 MICHAELS 23,885 DOLLAR TREE 12,000 86,422 100.0 BURLINGTON COAT FACTORY 86,422 98,401 86.6 DSW SHOE WAREHOUSE 29,892 DOLLAR TREE 15,450 GUITAR CENTER 12,236 152,834 100.0 KMART 95,932 SALvO AUTO PARTS 12,000 112,722 100.0 SAFEWAY 54,200 RITE AID 11,868 DOLLAR TREE 10,000 90,903 98.3 GIANT FOOD 56,892 90,830 95.0 77,287 100.0 SUPER FRESH 76,197 96.0 GIANT FOOD 58,879 88.8 CORT FURNITURE RENTAL 58,187 55,108 14,856 129,927 96.2 SAFEWAY 55,032 CvS 10,125 DOLLAR TREE 10,000 105,907 100.0 GIANT FOOD 62,943 26,412 2,544 100.0 100,803 92.4 GIANT FOOD 98,399 98.7 HARRIS TEETER 91,165 100.0 SAFEWAY 73,299 89.8 OLD NAvY 50,000 100.0 MICHAELS 57,994 56,905 55,164 16,000 26,706 32,075 23,835 84.5 64.5 6,780 100.0 DAvID’S NATURAL MARKET 11,627 90,929 91.9 GIANT FOOD 64,333 116,530 94.7 GIANT FOOD 64,885 DOLLAR TREE 10,000 433,467 100.0 TARGET 146,773 KOHL’S 106,889 SAFEWAY 55,164 143,548 95.9 SAFEWAY 50,093 PETCO 12,400 86,456 94.7 GIANT FOOD 86,968 98.5 GIANT FOOD 88,277 93.2 MATTRESS & FURNITURE MART 55,000 56,166 10,026 LAFAYETTE LAKE CHARLES SHREvEPORT SHREvEPORT MAINE BANGOR S. PORTLAND MARYLAND BALTIMORE BALTIMORE BALTIMORE BALTIMORE BALTIMORE BALTIMORE BALTIMORE BEL AIR CLARKSvILLE CLINTON CLINTON COLUMBIA COLUMBIA COLUMBIA COLUMBIA COLUMBIA COLUMBIA COLUMBIA COLUMBIA DISTRICT HEIGHTS EASTON ELLICOTT CITY ELLICOTT CITY ELLICOTT CITY FREDRICK COUNTY GAITHERSBURG GAITHERSBURG GLEN BURNIE SEB SEB OIP OIP SEB KIF UBS OIP SEB UBS SEB UBS UBS OJv OIP SEB KIF PRU KIF UBS BIG OIP 2010 2000 2010 2010 2001 2008 2007 2007 2004 2005 2007 2004 2005 2004 2007 2003 2003 2006 2007 2006 2006 2002 2002 2002 2005 2010 2004 2007 2004 2006 2003 1999 2010 71,329 98.7 2004 265,116 98.2 RUGGED WEARHOUSE LOWE’S HOME CENTER 12,000 HANCOCK FABRICS 11,950 OLD COUNTRY BUFFET 10,000 179,944 GIANT FOOD 51,976 HAGERSTOWN 1973 116,985 79.6 SUPER SHOE 19,422 ALDI 16,277 EQUIPPED FOR LIFE 13,687 122 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES Exhibit 99.1 HUNT vALLEY LAUREL LAUREL LINTHICUM NORTH EAST OWINGS MILLS OWINGS MILLS PASADENA PERRY HALL PERRY HALL TIMONIUM TIMONIUM TOWSON TOWSON WALDORF WALDORF MASSACHUSETTS GREAT BARRINGTON HAvERHILL HYANNIS MARLBOROUGH PITTSFIELD QUINCY SHREWSBURY STURBRIDGE MICHIGAN CANTON TWP. CLARKSTON CLAWSON CLINTON TWP. FARMINGTON SEB OIP OJv KIF SEB OIP KIF KIF OJv KIF OIP UBS KALAMAZOO OJv OJv OIP LIvONIA MUSKEGON NOvI OKEMOS TAYLOR TROY WALKER MINNESOTA ARBOR LAKES EDEN PRAIRIE MAPLE GROvE KIR 2008 1972 1964 2003 2007 2004 2005 2003 2003 2004 2003 2007 2004 2004 2003 2003 1994 2010 2004 2004 2004 2005 2000 2006 2005 1996 1993 2005 1993 2002 1968 1985 2003 2005 1993 2005 1993 94,653 95.0 GIANT FOOD 81,550 100.0 ROOMSTORE 55,330 81,550 75,924 97.7 vILLAGE THRIFT STORE 1,926 100.0 21,000 DOLLAR TREE 13,253 OLD COUNTRY BUFFET 10,155 80,190 100.0 FOOD LION 38,372 116,303 94.4 GIANT FOOD 60,985 MERRITT ATHLETIC CLUB 15,000 14,564 100.0 RITE AID 14,564 38,727 174,975 83.2 81.2 BRUNSWICK BOWLING 40,544 RITE AID 21,250 ACE HARDWARE 18,704 65,059 100.0 SUPER FRESH 56,848 189,211 86.9 GIANT FOOD 61,941 STAPLES 15,000 59,799 81.9 AMERICAN RADIOLOGY 17,734 679,926 94.1 WAL-MART 154,828 TARGET 132,608 SUPER FRESH 55,535 88,405 100.0 CvS 26,128 100.0 FAIR LANES WALDORF 4,500 100.0 131,235 96.5 PRICE CHOPPER 63,203 94.8 CvS 231,546 94.2 SHAW’S SUPERMARKET 10,125 26,128 44,667 10,773 54,712 TOYS “R” US 46,932 HOME GOODS 24,904 104,125 100.0 BEST BUY 45,000 DSW SHOE WAREHOUSE 22,362 BORDERS BOOKS 21,063 72,014 92.3 STOP & SHOP 61,935 80,510 93.8 HANNAFORD 55,087 RITE AID 108,418 100.0 BOB’S STORES 40,982 BED BATH & BEYOND 14,247 32,767 231,197 87.5 STOP & SHOP 57,769 STAPLES 23,942 OLD NAvY 19,925 36,601 100.0 BORDERS BOOKS 23,000 PETCO 148,973 48.1 OFFICE DEPOT 19,605 CvS 13,601 10,624 130,424 86.8 STAPLES 24,000 ALDI 16,498 RITE AID 14,564 19,042 100.0 GOLFSMITH 19,042 96,915 67.1 ACE HARDWARE 19,610 FITNESS 19 10,250 261,107 100.0 HOBBY LOBBY 56,455 vALUE CITY 46,549 MARSHALLS 34,151 33,121 100.0 CvS 79,215 58.0 PLUMB’S FOOD 60,000 100.0 MICHAELS 22,257 87.4 DOLLAR TREE 13,810 34,332 31,447 12,200 141,549 100.0 KOHL’S 93,310 BABIES R US 37,459 PARTY AMERICA 10,780 223,050 97.6 WAL-MART 136,847 MARSHALLS 30,000 387,210 100.0 RUBLOFF DEvELOPMENT 156,366 KOHL’S 104,508 LOEKS THEATRES 74,211 2006 474,062 91.1 LOWE’S HOME CENTER 137,933 DICK’S SPORTING GOODS 51,182 MARSHALLS 33,335 2005 2001 18,411 65.2 DOLLAR TREE 12,000 466,647 98.2 BYERLY’S 55,043 BEST BUY 45,953 JO-ANN FABRICS 45,940 123 Exhibit 99.1 LOCATION PORTFOLIO MINNETONKA KIR ROSEvILLE ST. PAUL MISSOURI CRYSTAL CITY ELLISvILLE INDEPENDENCE JOPLIN JOPLIN KANSAS CITY KIRKWOOD LEMAY KIR MANCHESTER KIR SPRINGFIELD SPRINGFIELD SPRINGFIELD ST. CHARLES ST. CHARLES ST. LOUIS ST. LOUIS ST. LOUIS ST. LOUIS ST. LOUIS ST. LOUIS ST. PETERS MISSISSIPPI HATTIESBURG JACKSON OJv YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES 1998 2005 2005 1997 1970 1998 1998 1998 1997 1990 1974 1998 1994 1998 2002 1998 1998 1998 1997 1997 1972 1997 1998 1997 2004 2002 120,231 100.0 TOYS “R” US 36,100 GOLFSMITH GOLF CENTER 25,775 28,148 100.0 GOLFSMITH 17,752 100.0 O’REILLY AUTOMOTIvE, INC. 18,480 17,752 100,724 100.0 KMART 100,724 118,080 100.0 SHOP N SAvE 80,000 EAGLE FLOORING 10,000 184,870 100.0 KMART 131,677 THE TILE SHOP 26,682 OFFICE DEPOT 155,416 97.7 ASHLEY FURNITURE 36,412 HASTINGS BOOKS 29,108 OFFICEMAX 24,075 23,500 80,524 100.0 150,381 100.0 HOME DEPOT 113,969 THE LEATHER COLLECTION 26,692 251,524 100.0 HOBBY LOBBY 64,876 SPORTS AUTHORITY 35,764 HANCOCK FABRICS 23,802 79,747 100.0 SHOP N SAvE 56,198 DOLLAR GENERAL 10,500 89,305 100.0 KOHL’S 89,305 282,619 100.0 BEST BUY 58,155 JCPENNEY 46,144 PETSMART 29,451 203,384 100.0 KMART 122,306 OFFICE DEPOT 28,000 PACE-BATTLEFIELD, LLC 26,000 84,916 100.0 BED BATH & BEYOND 30,050 MARSHALLS 29,400 BORDERS BOOKS 25,466 84,460 100.0 KOHL’S 84,460 8,000 100.0 176,273 100.0 BURLINGTON COAT FACTORY 80,000 BIG LOTS 35,040 ST. vINCENT DE PAUL 27,000 172,165 100.0 KMART 135,504 K&G MEN’S COMPANY 27,000 169,982 100.0 HOME DEPOT 122,540 OFFICE DEPOT 27,000 NAPA AUTO PARTS 18,442 129,093 94.4 SHOP N SAvE 128,765 100.0 KMART 68,307 128,765 113,781 100.0 KOHL’S 92,870 CLUB FITNESS 20,911 175,121 92.4 HOBBY LOBBY 57,028 SPORTS AUTHORITY 40,418 OFFICE DEPOT 24,500 295,848 93.5 ASHLEY FURNITURE 45,000 ROSS DRESS FOR LESS 30,187 BED BATH & BEYOND 23,065 50,000 100.0 MICHAELS 25,969 MARSHALLS 24,031 2005 178,686 82.2 MARSHALLS 33,000 BIG LOTS 28,760 OFFICEMAX 20,022 1999 176,081 78.6 COLLEEN’S CLASSIC CONS 40,745 BIG LOTS 30,000 SAvERS 25,000 2006 2010 130,773 74.3 ALBERTSONS 49,100 361,486 97.4 WAL-MART 114,513 COLLEENS CLASSICS 40,728 24 HOUR FITNESS 34,577 CONS 2007 333,234 80.8 2010 229,479 80.8 ROSS DRESS FOR LESS AMC RAINBOW PROMENADE 27,683 TJ MAXX 25,200 FITNESS FOR 10 25,042 40,013 OFFICEMAX 30,000 BARNES & NOBLE 24,900 2006 2007 2006 2006 2007 2007 166,632 81.3 FOOD 4 LESS 60,560 160,842 75.3 SAvERS 39,641 OFFICEMAX 21,050 DOLLAR DISCOUNT 17,325 CENTER 111,245 40.9 DOLLAR TREE 21,578 CYCLE GEAR 10,352 77,650 95.7 ALBERTSONS 58,050 146,501 98.3 BED BATH & BEYOND 35,185 BORDERS BOOKS 25,000 COST PLUS 18,665 120,004 95.0 RALEY’S 61,570 SHELL OIL 10,000 PRU BIG PRU BIG PRU BIG BIG PRU UBS UBS NEBRASKA OMAHA NEvADA HENDERSON HENDERSON LAS vEGAS LAS vEGAS LAS vEGAS LAS vEGAS LAS vEGAS LAS vEGAS LAS vEGAS RENO RENO 124 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES RENO RENO RENO RENO SPARKS SPARKS PRU UBS UBS 2006 2007 2006 2006 2007 2007 113,376 87.7 SCOLARI’S WAREHOUSE MKT 104,319 90.8 RALEY’S 36,627 90.3 PIER 1 IMPORTS 50,451 65,519 10,550 31,616 81.4 119,601 95.3 SAFEWAY 56,061 CvS 18,990 113,743 86.7 RALEY’S 63,476 Exhibit 99.1 NEW HAMPSHIRE MILFORD NASHUA KIF NEW LONDON SALEM NEW JERSEY BAYONNE BRICKTOWN BRIDGEWATER KIR SEB KIR KIR OJv PRU OJv BRIDGEWATER BRIDGEWATER CHERRY HILL CHERRY HILL CHERRY HILL CINNAMINSON DELRAN DELRAN DEPTFORD EAST WINDSOR EDGEWATER HILLSBOROUGH HOLMDEL HOLMDEL HOWELL KENvIL LINDEN LITTLE FERRY OJv MOORESTOWN NORTH BRUNSWICK PISCATAWAY RIDGEWOOD SEA GIRT UNION WAYNE WESTMONT NEW MEXICO 2008 148,802 92.2 SHAW’S SUPERMARKET 71,000 RITE AID 17,050 2004 2005 1994 2004 2005 2001 1998 2005 2007 1996 1985 1996 2000 2005 2008 2008 2007 2005 2007 2007 2005 2005 2002 2008 2009 1994 1998 1994 2005 2007 2009 1994 182,116 99.1 BED BATH & BEYOND 25,700 MICHAELS 24,300 MODELL’S 106,470 100.0 HANNAFORD BROS. 38,700 EPG COLONIAL 25,000 MACKENNA’S 344,069 100.0 KOHL’S 90,375 SHAW’S SUPERMARKET 51,507 BOB’S STORES 21,319 10,000 43,905 23,901 100.0 DOLLAR TREE 23,901 5,589 100.0 241,997 97.9 BED BATH & BEYOND 40,415 MARSHALLS 39,562 BABIES R US 37,355 136,570 100.0 COSTCO 136,570 21,555 100.0 CREME DE LA CREME 21,555 209,185 100.0 KOHL’S 86,770 SPORTS AUTHORITY 40,000 BABIES R US 37,491 131,537 100.0 KOHL’S 96,629 PLANET FITNESS 22,320 124,750 85.8 RETROFITNESS 10,366 123,388 100.0 HIBACHI GRILL 19,412 ACME MARKETS 77,583 100.0 PETSMART 20,443 SLEEPY’S 37,679 68.8 DOLLAR TREE 15,000 17,000 10,126 58,000 77.6 249,029 96.6 TARGET 126,200 TJ MAXX 30,000 423,315 100.0 TARGET 113,156 PATHMARK 63,966 TJ MAXX 35,000 55,552 100.0 KMART 55,552 303,223 87.9 A&P 56,021 MARSHALLS 48,833 LA FITNESS 234,557 100.0 HOLMDEL FARMERS MARKET 37,500 BEST BUY 30,109 MICHAELS 37,344 25,482 30,000 100.0 BEST BUY 30,000 44,583 100.0 RYAN AUTOMOTIvE 44,583 13,340 100.0 STRAUSS DISCOUNT AUTO 13,340 146,222 98.7 HAR SUPERMARKETS 38,000 201,351 97.7 LOWE’S HOME CENTER 135,198 BALLY TOTAL FITNESS 19,380 425,362 100.0 WAL-MART 134,202 BURLINGTON COAT 63,350 MARSHALLS 52,440 97,348 92.2 SHOPRITE 24,280 100.0 WHOLE FOODS MARKET 20,485 100.0 STAPLES 95,225 100.0 WHOLE FOODS MARKET FACTORY 54,100 24,280 16,285 60,000 BEST BUY 30,225 331,528 100.0 COSTCO 147,350 LACKLAND STORAGE 67,766 SPORTS AUTHORITY 173,259 92.4 SUPER FRESH 48,142 SUPER FITNESS 15,000 JO-ANN FABRICS 49,132 14,800 ALBUQUERQUE 1998 187,420 81.9 MOvIES WEST 27,883 ROSS DRESS FOR LESS 26,250 HANCOCK FABRICS 12,000 125 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES Exhibit 99.1 1998 1998 2006 1988 2006 2004 2009 1998 2005 2000 2004 2004 2003 2003 1988 1993 2006 2004 1998 2007 1998 2004 2005 2006 2007 2004 2000 2000 1989 2007 2000 2004 2007 2007 2007 2007 2007 2007 1999 2005 2006 2003 1999 2004 60,922 85.6 PAGE ONE 37,442 100.0 PETSMART 24,184 21,336 30,625 101,066 100.0 TOPS SUPERMARKET 101,066 176,622 98.6 BEST BUY 45,499 TOYS “R” US 43,123 HARBOR FREIGHT TOOLS 20,965 24,802 100.0 RITE AID 24,802 287,507 99.4 KMART 89,935 KING KULLEN 58,167 TJ MAXX 33,800 233,793 93.4 CvS 10,173 3,720 100.0 80,708 100.0 HOME DEPOT 58,200 WALGREENS 41,076 79.7 DUANE READE 21,432 PC RICHARD & SON 11,050 11,311 29,671 100.0 DUANE READE 10,000 100.0 RITE AID 7,500 100.0 10,300 10,000 141,466 100.0 TOPS SUPERMARKET 84,000 PETSMART 20,165 CITI TRENDS 379,937 99.3 WAL-MART 151,067 BIG LOTS 33,600 MODELL’S 11,186 20,315 105,851 95.1 PATHMARK 63,459 ACE HARDWARE 25,000 57,370 265,409 24,617 93.2 79.1 91.3 KING KULLEN 60,216 SPORTS AUTHORITY 42,970 BABIES R US 40,332 DOLLAR TREE DEAL$ 14,137 163,999 100.0 HOME DEPOT 112,000 BALLY TOTAL FITNESS 35,492 27,078 100.0 DUANE READE 12,900 100.0 CvS 14,028 12,900 437,105 100.0 HOME DEPOT 116,790 DAvE & BUSTER’S 60,000 SUNRISE CREDIT SERvICES 34,821 22,416 100.0 FRUIT vALLEY PRODUCE 17,789 100.0 PETCO 15,200 11,857 173,031 100.0 STOP & SHOP 46,753 TOYS “R” US 37,328 MARSHALLS 27,540 49,059 95.7 STAPLES 24,880 ANNIE SEZ 70,990 100.0 MACY’S 50,000 PETCO 13,360 11,890 227,939 85.8 KOHL’S 86,584 STAPLES 24,106 MICHAELS 24,008 13,905 100.0 WALGREENS 13,905 35,581 100.0 DUANE READE 18,300 DOLLAR TREE 10,481 1,595 100.0 9,900 100.0 105,851 100.0 MILLERIDGE INN 105,851 63,998 96.2 WHOLE FOODS MARKET 36,504 57,013 94.7 W.R. GRACE 33,600 2,085 100.0 616,130 99.1 SAM’S CLUB 134,900 WAL-MART 116,097 HOME DEPOT 115,436 7,435 100.0 47,199 36.1 48,275 100.0 DSW SHOE WAREHOUSE 17,035 188,608 100.0 MARSHALLS 40,114 KING KULLEN 37,570 MICHAELS 25,567 22,500 100.0 DUANE READE 22,500 OJv OJv OJv KIR OJv OJv KIR OJv UBS KIR KIR UBS KIR KIR OJv ALBUQUERQUE ALBUQUERQUE LAS CRUCES NEW YORK AMHERST BAYSHORE BELLMORE BRIDGEHAMPTON BRONX BRONX BROOKLYN BROOKLYN BROOKLYN BROOKLYN BROOKLYN BUFFALO CENTEREACH CENTEREACH CENTRAL ISLIP COMMACK COMMACK COPIAGUE ELMONT ELMONT FARMINGDALE FLUSHING FRANKLIN SQUARE FREEPORT GLEN COvE HAMPTON BAYS HARRIMAN HEMPSTEAD HICKSvILLE HOLTSvILLE HUNTINGTON JERICHO JERICHO JERICHO JERICHO LATHAM LAURELTON LEvITTOWN LITTLE NECK MANHASSET MASPETH 126 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME MAJOR LEASES KIR KIR KIR MERRICK MIDDLETOWN MINEOLA MUNSEY PARK NESCONSET NORTH MASSAPEQUA OCEANSIDE PLAINvIEW POUGHKEEPSIE QUEENS vILLAGE ROCHESTER STATEN ISLAND STATEN ISLAND STATEN ISLAND KIR STATEN ISLAND STATEN ISLAND STATEN ISLAND SYOSSET WHITE PLAINS YONKERS YONKERS NORTH CAROLINA CARY CARY CARY CHARLOTTE CHARLOTTE CHARLOTTE DURHAM DURHAM FRANKLIN KNIGHTDALE KNIGHTDALE MOORESvILLE MORRISvILLE PINEvILLE RALEIGH RALEIGH RALEIGH WINSTON-SALEM OHIO AKRON AKRON KIR KIR OJv OIP Exhibit 99.1 GLA 15,038 2000 2000 2007 2000 2009 2004 2003 1969 1972 2005 1993 2006 1989 2000 1997 2005 2005 1967 2004 1995 2005 2001 1998 2000 1986 1993 1968 2002 1996 1998 2005 2007 2008 2003 1993 2003 2006 1969 1988 1975 108,296 100.0 WALDBAUMS 44,478 HOME GOODS 24,836 ANNIE SEZ 80,000 56.3 BEST BUY 45,000 26,780 97.6 FRESHWAY MARKET 10,000 72,748 100.0 BED BATH & BEYOND 41,393 WHOLE FOODS MARKET 20,000 55,970 100.0 PETSMART 28,918 BOB’S DISCOUNT FURNITURE 27,052 29,610 100.0 DUANE READE 17,943 1,856 — 88,222 100.0 FAIRWAY STORES 55,162 167,668 95.6 STOP & SHOP 69,449 BIG LOTS 32,640 14,649 100.0 STRAUSS DISCOUNT AUTO 14,649 104,870 56.8 TOPS SUPERMARKET 53,800 356,267 96.5 KMART 103,823 PATHMARK 59,809 TOYS “R” US 42,025 214,625 96.2 KMART 101,915 PATHMARK 48,377 190,131 69.8 TJ MAXX 34,798 MICHAELS 17,573 CvS 13,013 101,337 96.7 KING KULLEN 100,641 100.0 KOHL’S 47,270 100.0 STAPLES 32,124 96.3 NEW YORK SPORTS CLUB 22,220 100.0 DUANE READE 43,560 100.0 SHOPRITE 10,329 100.0 STRAUSS DISCOUNT AUTO 33,540 100,641 47,270 16,664 14,450 43,560 10,329 315,797 97.6 BJ’S 108,532 KOHL’S 86,584 PETSMART 26,040 102,787 80.7 LOWES FOOD 48,214 86,015 100.0 BED BATH & BEYOND 43,015 DICK’S SPORTING GOODS 43,000 233,812 76.7 ROSS DRESS FOR LESS 32,003 K&G MEN’S COMPANY 31,577 SPORTS & FITNESS 24,928 139,361 93.5 SUPER GLOBAL MART 51,216 RUGGED WEARHOUSE 13,932 HARBOR FREIGHT TOOLS 11,830 110,300 50.8 TJ MAXX 31,954 CvS 10,722 408,292 100.0 WAL-MART 149,929 BEST BUY 45,000 BUY BUY BABY 116,186 86.6 TJ MAXX 31,303 JO-ANN FABRICS 16,051 HIBACHI GRILL 26,326 100.0 BILL HOLT FORD 26,326 186,058 100.0 2010 136,955 95.1 ROSS DRESS FOR LESS DICK’S SPORTING GOODS 30,144 BED BATH & BEYOND 22,941 MICHAELS 45,000 BEST BUY 30,000 TJ MAXX 165,798 96.9 BEST BUY 30,000 BED BATH & BEYOND 28,000 STAPLES 169,901 98.5 CARMIKE CINEMAS 60,124 FOOD LION 36,427 STEIN MART 270,494 94.5 KMART 105,015 STEIN MART 36,000 TJ MAXX 362,945 88.2 GOLFSMITH GOLF & TENNIS 59,719 BED BATH & BEYOND 35,335 ROSS DRESS FOR LESS 97,103 90.7 FOOD LION 38,273 ACE HARDWARE 16,593 9,800 100.0 132,190 94.5 HARRIS TEETER 60,279 DOLLAR TREE 14,849 31,999 11,200 21,545 26,297 20,388 36,000 30,000 30,187 138,491 100.0 GABRIEL BROTHERS 66,167 PAT CATANS CRAFTS 32,024 BIG LOTS 30,000 75,866 100.0 GIANT EAGLE 61,866 127 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES Exhibit 99.1 1972 1986 1975 1997 1972 1988 2000 1988 1988 1999 2000 2005 2005 2002 1988 1998 1984 1969 1988 1999 1988 1988 1987 1999 1988 1988 1977 2000 1988 1969 1993 1995 1988 1998 1997 101,688 100.0 GIANT EAGLE 140,791 97.4 KROGER 87,738 122,697 171,223 95.6 KMART 84,180 MARC’S 42,130 78,065 88.7 TRACTOR SUPPLY CO. 52,687 172,419 83.8 BURLINGTON COAT FACTORY 67,000 TJ MAXX 34,952 HOMETOWN BUFFET 11,500 125,058 100.0 BED BATH & BEYOND 28,440 THE TILE SHOP 28,440 HOME 2 HOME 22,321 409,960 98.5 WAL-MART 180,879 HOBBY LOBBY 58,835 DICK’S SPORTING GOODS 33,160 308,277 71.9 HOBBY LOBBY 59,650 TOYS “R” US 45,888 HAvERTY’S 223,731 99.3 LOWE’S HOME CENTER 89,742 98.5 BIGGS FOODS 88,317 100.0 16,000 100.0 URBAN ACTIvE FITNESS HIGHLAND KENNEDY DEv 138,445 BIG LOTS 29,563 AJ WRIGHT 64,700 33,148 16,000 43,412 25,489 10,900 100.0 EDDIE MERLOT’S 10,900 269,201 98.3 LOWE’S HOME CENTER 131,644 KROGER 78,314 129,008 100.0 KOHL’S 99,408 112,862 96.3 BORDERS BOOKS 27,500 PIER 1 IMPORTS 12,015 PATEL BROS INDIAN 11,060 GROCERS 206,031 88.7 vICTORIA’S SECRET 94,350 KROGER 50,545 CARDINAL FITNESS 163,131 87.6 BEST BUY 55,350 BIG LOTS 44,650 JO-ANN FABRICS 14,862 18,172 116,374 7.3 318,468 96.1 ELDER BEERMAN 101,840 KOHL’S 80,731 MARSHALLS 29,500 106,500 237,327 97.2 97.7 GIANT EAGLE 69,490 BURLINGTON COAT 68,000 JO-ANN FABRICS 43,500 FACTORY 103,910 97.6 GABRIEL BROTHERS 51,703 BIG LOTS 43,227 6,000 57.5 104,342 51.5 GABRIEL BROTHERS 53,716 99,862 100.0 TOPS SUPERMARKET 99,862 121,105 100.0 GABRIEL BROTHERS 55,103 KROGER 30,975 UNITED ART AND EDUCATION 19,467 252,110 77.8 HHGREGG 31,968 GUITAR CENTER 15,750 DAvID’S BRIDAL 10,000 141,616 100.0 BURLINGTON COAT 99,294 DOLLAR GENERAL 14,528 160,702 68.5 TJ MAXX 48,399 HONG KONG BUFFET 14,666 CvS 222,077 95.8 KOHL’S 99,380 MARC’S 69,784 OFFICEMAX 128,180 97.4 GABRIEL BROTHERS 65,130 BIG LOTS 24,405 FITNESS 19 10,125 30,614 10,395 157,424 98.5 MARCS DRUGS 34,070 233,797 98.9 HOME DEPOT 102,962 GORDMANS 50,000 BEST BUY 45,753 103,027 100.0 ACADEMY SPORTS 97,527 2006 109,891 70.6 RITE AID 29,545 DOLLAR TREE 14,800 AARON’S SALES & LEASING 13,600 OJv PRU 2006 2009 2007 22,700 100.0 GROCERY OUTLET 22,700 115,701 93.1 SAFEWAY 46,293 CANBY ACE HARDWARE 14,785 236,672 98.2 SPORTS AUTHORITY 45,121 NORDSTROM RACK 27,766 OLD NAvY 20,400 BARBERTON BEAvERCREEK BRUNSWICK CAMBRIDGE CANTON CENTERvILLE CINCINNATI CINCINNATI CINCINNATI CINCINNATI CINCINNATI CINCINNATI CINCINNATI COLUMBUS COLUMBUS COLUMBUS DAYTON DAYTON DAYTON KIR KIR KIR HUBER HEIGHTS KIR OJv KIR KENT MENTOR MENTOR MIAMISBURG MIDDLEBURG HEIGHTS NORTH OLMSTED SHARONvILLE SPRINGDALE TROTWOOD UPPER ARLINGTON WESTERvILLE WICKLIFFE WILLOUGHBY HILLS OKLAHOMA OKLAHOMA CITY OKLAHOMA CITY OREGON ALBANY ALBANY CANBY CLACKAMAS 128 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES GRESHAM PRU 2006 264,765 95.0 MADRONA WATUMULL 55,120 NW INvESTORS 42,420 ROSS DRESS FOR LESS 26,832 Exhibit 99.1 BIG PRU PRU PRU GRESHAM GRESHAM HILLSBORO HILLSBORO MEDFORD MILWAUKIE PORTLAND SPRINGFIELD TROUTDALE PENNSYLvANIA ARDMORE BLUE BELL BROOKHAvEN CARLISLE UBS CHAMBERSBURG CHAMBERSBURG CHIPPEWA EAGLEvILLE EAST NORRITON EAST STROUDSBURG EASTWICK EXTON EXTON EXTON FEASTERvILLE GETTYSBURG GREENSBURG OJv HAMBURG HARRISBURG HAvERTOWN HORSHAM LANDSDALE MONROEvILLE MONTGOMERY MORRISvILLE NEW KENSINGTON PHILADELPHIA PHILADELPHIA PHILADELPHIA PHILADELPHIA PHILADELPHIA PHILADELPHIA PHILADELPHIA UBS UBS KIR OJv OJv OJv OJv PITTSBURGH OIP 2009 2009 2010 2008 2009 2007 2006 2009 2009 2007 1996 2005 2005 2006 2008 2000 2008 1984 1973 1997 1996 1999 2005 1996 1986 2002 2000 1972 1996 2005 1996 2005 2002 1996 1986 1995 2006 1983 1996 1998 2005 2005 2007 208,276 89.7 OFFICE DEPOT 26,706 BIG LOTS 25,000 MICHAELS 18,000 107,583 44.2 CASCADE ATHLETIC CLUB 21,633 260,954 92.4 SAFEWAY 46,114 STAPLES 24,500 RITE AID 210,941 96.2 SAFEWAY 53,000 RITE AID 27,465 DSW SHOES 335,043 81.8 SEARS 77,347 TINSELTOWN 57,273 THE MEDFORD CLUB 185,760 94.7 ALBERTSONS 42,630 RITE AID 31,472 JO-ANN FABRICS 115,673 96.4 SAFEWAY 48,000 DOLLAR TREE 11,660 23,714 19,949 34,749 13,775 96,027 93.0 SAFEWAY 90,137 55.2 UWG 47,019 38,000 321,751 97.0 MACY’S 99,725 BANANA REPUBLIC 120,211 100.0 KOHL’S 93,444 HOME GOODS 10,180 26,767 6,300 100.0 90,289 95.0 GIANT FOOD 71,441 271,411 97.3 KOHL’S 88,782 GIANT FOOD 68,000 MICHAELS 21,479 131,623 93.8 GIANT FOOD 67,521 215,206 100.0 KMART 107,806 HOME DEPOT 107,400 82,636 70.1 DOLLAR TREE 10,263 131,794 85.8 SHOPRITE 66,506 RETRO FITNESS 18,025 JO-ANN FABRICS 12,250 168,218 98.1 KMART 102,763 36,511 100.0 MERCY HOSPITAL 33,000 85,184 100.0 KOHL’S 60,685 100.0 ACME MARKETS 3,600 100.0 87,160 23.7 STAPLES 14,584 100.0 RITE AID 85,184 60,685 20,675 14,584 50,000 100.0 TJ MAXX 26,775 MICHAELS 23,225 15,400 100.0 LEHIGH vALLEY HEALTH 15,400 175,917 100.0 GANDER MOUNTAIN 83,777 AMERICAN SIGNATURE 48,884 SUPERPETZ 32,056 80,938 100.0 KOHL’S 75,206 88.8 GIANT FOOD 84,470 100.0 KOHL’S 80,938 48,820 84,470 143,200 90.1 PETSMART 29,650 BED BATH & BEYOND 25,312 MICHAELS 257,565 100.0 GIANT FOOD 67,179 BED BATH & BEYOND 32,037 HHGREGG 23,629 28,892 2,437 - 108,950 100.0 GIANT EAGLE 101,750 332,583 98.3 TARGET 137,000 PATHMARK 66,703 PEP BOYS 20,800 292,657 96.1 SEARS 213,444 87.5 TOYS “R” US 82,345 100.0 KOHL’S 75,303 100.0 NORTHEAST AUTO OUTLET 19,137 100.0 CvS 9,343 100.0 237,151 33,000 82,345 75,303 12,900 166,786 98.6 H.H. GREGG 31,296 TJ MAXX 30,000 STAPLES 23,884 129 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME MAJOR LEASES PITTSBURGH 2010 148,497 81.1 WHOLE FOODS MARKET 33,000 ECKERD TENANT NAME GLA GLA 15,000 Exhibit 99.1 1986 1999 2004 1983 1996 1986 2005 1996 1986 1986 107,432 100.0 SUPER FRESH 69,288 100.0 WAL-MART 94,706 98.3 GIANT FOOD 55,537 69,288 54,785 165,480 91.1 GIANT FOOD 66,825 STAPLES 26,535 EMPIRE BEAUTY SCHOOL 11,472 28,102 100.0 PRISM CAREER INSTITUTE 84,279 100.0 BIG LOTS 23,294 84,279 151,418 97.6 GIANT FOOD 48,800 JO-ANN FABRICS 31,000 MAX & JILL 19,937 84,524 100.0 KOHL’S 84,524 58,244 95.2 SAvE-A-LOT 15,422 ADvANCE AUTO PARTS 12,629 YALE ELECTRIC 12,206 35,500 100.0 GIANT FOOD 30,500 2006 186,434 100.0 AMIGO SUPERMARKET 35,588 OFFICEMAX 18,100 CHUCK E CHEESE 13,600 2006 2006 2006 2006 2006 2006 1998 2003 1978 1995 1997 2009 1997 2010 2000 1973 2002 2004 1999 1978 1998 2007 2001 1998 1998 601,429 22.4 SAM’S CLUB 138,622 COSTCO 134,881 JCPENNEY 98,348 570,610 96.0 HOME DEPOT 109,800 KMART 118,242 PUEBLO INTERNATIONAL 56,372 69,640 63.6 354,830 100.0 HOME DEPOT 109,800 SAM’S CLUB 100,408 CARIBBEAN CINEMA 45,126 191,701 92.9 2000 CINEMA CORP 60,000 SUPERMERCADOS MAXIMO 35,651 199,513 100.0 KMART 80,100 PUEBLO SUPERMARKET 26,869 FARMACIAS EL AMAL 11,895 129,907 98.4 BOB’S STORES 41,114 MARSHALLS 28,000 DOLLAR TREE 10,013 71,735 95.5 189,744 92.8 HARRIS TEETER 52,334 PETCO 15,314 WEST MARINE 186,740 97.1 TJ MAXX 31,220 OFFICE DEPOT 29,096 BARNES & NOBLE 113,922 78.2 HIBACHI GRILL 17,568 DOLLAR TREE 10,150 295,928 95.8 INGLES MARKETS 65,000 THE RUSH FITNESS COMPLEX 35,000 TJ MAXX 148,532 60.7 BABIES R US 35,621 115,626 96.9 ACADEMY SPORTS 89,510 TRADER JOE’S 12,836 15,063 25,389 30,300 266,588 75.9 SPORTS AUTHORITY 45,540 OMNI HEALTH & FITNESS 15,456 BURKE’S OUTLET 27,000 50,588 65.8 SAvE-A-LOT 25,168 50,000 100.0 HOME GOODS 26,355 MICHAELS 23,645 240,318 86.7 JO-ANN FABRICS 45,900 SAM ASH MUSICAL INSTRUMENT 34,700 TJ MAXX 30,000 189,401 74.8 DICK’S SPORTING GOODS 42,980 BEST BUY 175,593 98.8 OLD TIME POTTERY 99,400 WAL-MART 42,840 39,687 167,243 69.5 FAMILY DOLLAR 14,976 55,373 71.7 40,000 100.0 BED BATH & BEYOND 40,000 172,078 78.0 HHGREGG 40,075 ASHLEY FURNITURE 26,952 BED BATH & BEYOND 109,012 90.1 TREES N TRENDS 26,000 OAK FACTORY OUTLET 23,500 OLD COUNTRY BUFFET 25,715 10,161 OJv 2006 21,162 100.0 CREME DE LA CREME 21,162 RICHBORO SCOTT TOWNSHIP SHREWSBURY OIP OJv SPRINGFIELD UPPER DARBY WEST MIFFLIN WHITEHALL WHITEHALL YORK YORK PUERTO RICO BAYAMON CAGUAS CAROLINA MANATI MAYAGUEZ PONCE TRUJILLO ALTO RHODE ISLAND CRANSTON PROvIDENCE OJv SOUTH CAROLINA CHARLESTON CHARLESTON FLORENCE GREENvILLE GREENvILLE GREENvILLE NORTH CHARLESTON TENNESSEE CHATTANOOGA CHATTANOOGA OJv MADISON MADISON KIR PRU KIR MADISON MEMPHIS MEMPHIS MEMPHIS NASHvILLE NASHvILLE TEXAS ALLEN 130 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES Exhibit 99.1 AMARILLO AMARILLO ARLINGTON AUSTIN AUSTIN AUSTIN AUSTIN BAYTOWN BEAUMONT BROWNSvILLE COLLEYvILLE COPPELL CORPUS CHRISTI DALLAS DALLAS DALLAS EAST PLANO EL PASO FORT WORTH FRISCO GRAND PRAIRIE HARRIS COUNTY HOUSTON HOUSTON HOUSTON HOUSTON LEWISvILLE LEWISvILLE LEWISvILLE LUBBOCK MESQUITE MESQUITE N. BRAUNFELS NORTH CONROE PASADENA PASADENA PLANO RICHARDSON SOUTHLAKE TEMPLE WEBSTER UTAH OGDEN KIR KIR PRU KIR OJv OJv OJv PRU KIR OJv UBS UBS OIP OIP KIR KIR KIR UBS 1997 2003 1997 2007 1998 1998 2003 1996 2005 2005 2006 2006 1997 2007 1998 1969 1996 1998 2003 2006 2006 2005 2006 2006 2004 1996 1998 1998 1998 1998 2006 1974 2003 2006 2001 1999 2005 1998 2008 2005 2006 343,875 89.5 HOME DEPOT 109,800 KOHL’S 94,680 PETSMART 142,647 97.8 ROSS DRESS FOR LESS 30,187 BED BATH & BEYOND 30,000 JO-ANN FABRICS 96,127 100.0 HOBBY LOBBY 96,127 213,768 98.8 BED BATH & BEYOND 42,098 BUY BUY BABY 28,730 ROSS DRESS FOR LESS 191,760 71.1 BED BATH & BEYOND 44,846 BABIES R US 40,000 MATTRESS FIRM 25,416 30,000 26,250 15,675 157,852 95.7 HEB GROCERY 64,310 BROKERS NATIONAL LIFE 20,337 108,028 100.0 FRY’S ELECTRONICS 108,028 98,623 100.0 HOBBY LOBBY 63,328 ROSS DRESS FOR LESS 30,108 9,600 84.0 225,959 58.7 TJ MAXX 28,460 MICHAELS 21,447 PETSMART 19,981 20,188 100.0 CREME DE LA CREME 20,188 20,425 100.0 CREME DE LA CREME 20,425 125,454 100.0 BEST BUY 47,616 ROSS DRESS FOR LESS 34,000 BED BATH & BEYOND 171,143 93.3 CvS PHARMACY, INC. 16,799 vITAMIN COTTAGE 11,110 ULTA 3 83,867 100.0 ROSS DRESS FOR LESS 28,160 OFFICEMAX 23,500 BIG LOTS 26,300 10,800 18,007 — — 100,598 100.0 637,969 97.9 LOWE’S HOME CENTER 179,421 KOHL’S 86,800 ROSS DRESS FOR LESS 33,419 293,702 87.7 MARSHALLS 38,032 ROSS DRESS FOR LESS 30,079 OFFICE DEPOT 230,710 79.7 HOBBY LOBBY 81,392 HEMISPHERES 50,000 SPROUTS FARMERS MARKET 214,164 87.6 24 HOUR FITNESS 30,000 ROSS DRESS FOR LESS 29,931 MARSHALLS 144,055 100.0 BEST BUY 45,614 HOME GOODS 31,620 BARNES & NOBLE 350,836 96.9 MARSHALLS 30,382 BED BATH & BEYOND 26,535 OFFICEMAX 247,159 98.8 TJ MAXX 32,000 ROSS DRESS FOR LESS 30,187 BED BATH & BEYOND 20,000 26,043 28,000 25,001 23,500 30,049 113,831 76.7 DD’S DISCOUNT 27,865 PALAIS ROYAL 24,500 96,500 100.0 BURLINGTON COAT FACTORY 96,500 123,560 96.3 BABIES R US 42,420 BED BATH & BEYOND 34,030 BROYHILL HOME 19,865 COLLECTIONS 93,668 82.2 FACTORY DIRECT FURNITURE 24,974 DSW SHOE WAREHOUSE 20,000 74,837 62.8 TALBOTS OUTLET 12,000 $6 FASHION OUTLETS 10,150 108,326 100.0 PETSMART 25,448 OFFICEMAX 23,500 CITY OF LUBBOCK 209,766 86.8 BURLINGTON COAT FACTORY 75,953 ASHLEY FURNITURE 52,984 HANCOCK FABRICS 79,550 92.6 KROGER 86,479 100.0 KOHL’S 51,000 86,479 289,378 97.5 ASHLEY FURNITURE 48,000 TJ MAXX 32,000 ROSS DRESS FOR LESS 240,907 99.2 BEST BUY 46,960 ROSS DRESS FOR LESS 30,213 MARSHALLS 169,190 100.0 PETSMART 26,027 OFFICEMAX 23,500 MICHAELS 149,343 100.0 HOME DEPOT 115,579 54.1 FOX & HOUND 149,343 20,000 37,447 76.0 274,799 81.2 HOBBY LOBBY 56,125 ROSS DRESS FOR LESS 30,187 BED BATH & BEYOND 408,899 94.0 HOBBY LOBBY 100,086 BEL FURNITURE 58,842 BED BATH & BEYOND 1967 142,628 100.0 COSTCO 142,628 18,000 15,000 30,183 30,000 22,491 24,920 53,829 131 LOCATION vERMONT YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) PORTFOLIO TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES MANCHESTER 2004 54,322 81.6 PRICE CHOPPERS 15,686 Exhibit 99.1 vIRGINIA ALEXANDRIA BURKE COLONIAL HEIGHTS DUMFRIES FAIRFAX FAIRFAX FAIRFAX FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG FREDERICKSBURG 132 KIF OIP KIR PRU OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP OIP 2005 2004 1999 2005 1998 2007 2007 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 2005 28,800 100.0 THE ROOF CENTER 28,800 124,148 99.0 SAFEWAY 53,495 CvS 12,380 60,909 100.0 ASHLEY HOME STORES 39,903 1,702 100.0 343,180 97.6 HOME DEPOT 126,290 SPORTS AUTHORITY 44,209 OFFICE DEPOT 19,703 101,332 100.0 WALGREENS 40,000 TJ MAXX 27,888 51,808 71.4 33,179 100.0 HHGREGG 33,179 32,000 100.0 BASSETT FURNITURE 32,000 11,097 100.0 NTB TIRES 10,578 100.0 CHUCK E CHEESE 10,125 100.0 CvS 10,125 100.0 CvS 10,125 100.0 SHONEY’S 11,097 10,578 10,125 10,125 10,125 10,002 100.0 CRACKER BARREL 10,002 8,027 100.0 8,000 100.0 7,993 100.0 7,256 100.0 7,241 100.0 7,200 100.0 7,200 100.0 7,000 100.0 6,818 100.0 6,100 100.0 6,000 100.0 5,892 100.0 5,540 100.0 5,126 100.0 5,020 100.0 4,842 100.0 4,828 100.0 4,800 100.0 4,352 100.0 4,261 100.0 3,822 100.0 3,650 100.0 3,076 100.0 3,028 100.0 3,000 100.0 3,000 100.0 2,909 100.0 2,454 100.0 2,170 100.0 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES Exhibit 99.1 OIP SEB PRU UBS CPP OIP SEB UBS OIP OIP OIP OIP UBS KIR OJv OJv PRU KIR KIR PRU BIG OIP OIP BIG PRU PRU OIP PRU UBS PRU KIR FREDERICKSBURG HARRISONBURG LEESBURG MANASSAS MANASSAS PENTAGON CITY RICHMOND RICHMOND RICHMOND ROANOKE ROANOKE STAFFORD STAFFORD STAFFORD STAFFORD STAFFORD STERLING STERLING WOODBRIDGE WOODBRIDGE WASHINGTON AUBURN BELLEvUE BELLINGHAM BELLINGHAM FEDERAL WAY KENT KENT LAKE STEvENS MILL CREEK OLYMPIA OLYMPIA SEATTLE SILvERDALE SILvERDALE SPOKANE TACOMA TUKWILA vANCOUvER WEST vIRGINIA CHARLES TOWN SOUTH CHARLESTON 2005 2007 2007 1997 2005 2010 1995 1999 2005 2007 2004 2005 2005 2005 2005 2005 2006 2008 1998 1973 2007 2004 2007 1998 2000 2006 2010 2010 2010 2010 2006 2006 2010 2006 2005 2006 2003 2009 1985 1999 1,762 100.0 187,534 95.4 KOHL’S 88,248 MARTIN’S 73,396 316,586 97.2 SHOPPERS FOOD 63,168 ROSS DRESS FOR LESS 25,994 ROOMSTORE 25,192 117,565 107,233 96.7 94.7 BURLINGTON COAT FACTORY 69,960 AUTOZONE 10,852 337,812 97.9 COSTCO 169,452 MARSHALLS 42,142 BEST BUY 36,532 128,612 100.0 BURLINGTON COAT FACTORY 121,550 84,683 100.0 ROOMSTORE 84,683 3,060 100.0 298,162 92.4 MICHAELS 40,002 MARSHALLS 35,134 ROSS DRESS FOR LESS 29,826 81,789 100.0 DICK’S SPORTING GOODS 47,700 HHGREGG 34,089 331,730 100.0 SHOPPERS FOOD 67,995 TJ MAXX 30,545 ROSS DRESS FOR LESS 101,042 100.0 GIANT FOOD 61,500 PETCO SUPPLIES & FISH 12,000 STAPLES 7,310 100.0 4,400 100.0 4,211 100.0 799,459 99.4 WAL-MART 209,613 LOWE’S HOME CENTER 135,197 SAM’S CLUB 361,043 98.9 TOYS “R” US 45,210 MICHAELS 35,333 HHGREGG 493,193 96.2 SHOPPERS FOOD 63,971 DICK’S SPORTING GOODS 57,437 LA FITNESS 186,079 96.9 REGENCY FURNITURE 73,882 THE SALvATION ARMY 17,070 ALDI 173,746 94.9 ALBERTSONS 51,696 OFFICE DEPOT 23,070 RITE AID 512,149 93.2 TARGET 101,495 WAL-MART 76,207 NORDSTROM RACK 376,023 93.6 KMART 103,950 COST CUTTER 67,070 JO-ANN FABRICS 188,885 99.2 MACY’S 40,000 BEST BUY 30,000 BED BATH & BEYOND 200,126 86.3 QFC 55,069 JO-ANN FABRICS 43,506 BARNES & NOBLE 30,179 23,942 135,193 33,000 47,328 16,530 21,875 41,258 28,000 28,000 24,987 86,909 86.6 ROSS DRESS FOR LESS 67,468 195,475 87.0 95.1 RITE AID SAFEWAY 27,200 23,380 61,000 SPORTS AUTHORITY 45,364 BARTELL DRUGS 17,622 95,657 86.4 SAFEWAY 55,275 167,117 83.1 ALBERTSONS 54,736 ROSS DRESS FOR LESS 21,287 69,212 94.8 BARNES & NOBLE 20,779 PETCO 16,459 TRADER JOE’S 140,591 89.0 SAFEWAY 39,556 PRUDENTIAL NORTHWEST 14,755 BARTELL DRUGS 170,406 93.3 SAFEWAY 55,003 JO-ANN FABRICS 29,903 RITE AID 67,287 94.8 ROSS DRESS FOR LESS 29,020 129,785 100.0 BED BATH & BEYOND 36,692 ROSS DRESS FOR LESS 25,000 RITE AID 134,839 99.3 TJ MAXX 25,160 DESTINY CITY CHURCH 23,228 OFFICE DEPOT 458,752 99.6 THE BON MARCHE 48,670 BEST BUY 45,884 SPORTS AUTHORITY 69,790 78.7 PLANET FITNESS 24,000 ACE HARDWARE 15,714 208,888 99.2 WAL-MART 144,298 STAPLES 15,642 148,059 99.1 TJ MAXX 33,845 12,593 13,327 23,470 23,293 22,880 40,000 133 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES Exhibit 99.1 CANADA ALBERTA BRENTWOOD CALGARY CALGARY CALGARY CALGARY EDMONTON GRANDE PRAIRIE HINTON BRITISH COLUMBIA 100 MILE HOUSE ABBOTSFORD CLEARBROOK GIBSONS LANGLEY LANGLEY LANGLEY MISSION NORTH vANCOUvER PORT ALBERNI PRINCE GEORGE PRINCE GEORGE PRINCE GEORGE SURREY SURREY SURREY TILLICUM TRAIL WESTBANK NOvA SCOTIA DARTMOUTH HALIFAX ONTARIO BELLEvILLE BROCKvILLE BURLINGTON CHATHAM FERGUS HAWKESBURY HAWKESBURY LONDON MISSISSAUGA 134 UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv 2002 274,010 99.9 SEARS WHOLE HOME 46,043 BED BATH & BEYOND 37,809 LONDON DRUGS 25,250 2002 306,010 100.0 WINNERS 34,740 SPORT CHEK 33,265 BUSINESS DEPOT (STAPLES) 25,914 2002 2005 2005 2002 2002 2005 2005 2002 2001 2005 2003 2002 2005 2001 2005 2005 2001 2005 2008 2002 2001 2005 2002 2005 2005 2008 2008 2008 2010 2002 2008 2008 2008 2008 2008 162,988 100.0 ZELLERS 122,616 128,632 71.2 WINNERS APPAREL 34,227 DOLLAR GIANT 10,913 127,777 94.5 FUTURE SHOP (BEST BUY) 36,726 WINNERS MERCHANTS 26,792 PETSMART 428,746 100.0 THE BRICK 45,803 HOME OUTFITTERS 40,539 LONDON DRUGS 63,413 100.0 MICHAELS 24,180 WINNERS (TJ MAXX) 23,505 JYSK LINEN 137,962 95.0 WAL-MART CANADA 60,346 CANADA SAFEWAY 29,586 DOLLARAMA 69,051 97.7 OvERWAITEA (SAvEON) 31,420 COUNTRYWIDE HOME 13,164 219,688 99.0 ZELLERS 115,407 WINNERS (TJ MAXX) 51,982 PETSMART 188,271 99.4 SAFEWAY 55,724 GOODLIFE FITNESS 25,359 STAPLES 102,730 96.3 LONDON DRUGS 26,422 SUPER vALU 23,420 CHEvRON 16,602 32,787 15,728 9,119 22,583 24,688 16,694 228,314 100.0 WINNERS (TJ MAXX) 34,175 MICHAELS 23,754 FUTURE SHOP (BEST BUY) 23,559 151,802 100.0 SEARS 34,983 WINNERS (TJ MAXX) 24,986 CHAPTERS 23,782 34,832 100.0 271,462 98.6 SAvE ON FOODS 58,179 FAMOUS PLAYERS 57,802 LONDON DRUGS 31,743 36,000 94.5 34,518 100.0 BUY-LOW FOODS 22,834 372,725 93.2 THE BAY 111,500 SAvE ON FOODS 42,137 LONDON DRUGS 32,428 77,932 95.1 SAvEON DRUGS 39,068 SHOPPER’S DRUG MART 15,898 70,406 100.0 BRICK WAREHOUSE 29,808 337,931 99.1 HOME DEPOT 103,879 CINEPLEX ODEON 52,000 WINNERS (TJ MAXX) 30,927 174,362 95.8 CANADA SAFEWAY 52,174 LONDON DRUGS 104,198 95.0 SAFEWAY STORE 38,843 NEW HOLLYWOOD THEATRE 25,286 11,806 472,600 99.7 ZELLERS 120,684 SAFEWAY 55,720 FAMOUS PLAYERS 55,568 192,590 95.2 HUDSON (ZELLER’S) 66,740 LOBLAWS (EXTRA FOODS) 40,709 111,610 97.5 OvERWAITEA (SAvEON) 38,874 SHOPPER’S DRUG MART 16,679 G&G HARDWARE 10,035 182,024 96.0 SOBEY’S 75,694 SHOPPER’S DRUG 17,400 DOLLARAMA 12,818 138,094 98.9 WAL-MART 132,192 71,985 94.9 A&P 45,485 276,026 91.9 SEARS 88,898 GALAXY (PAD) 20,000 SHOPPER’S DRUG 18,040 69,857 100.0 PRICE CHOPPER 71,423 93.7 FOOD BASICS 105,955 98.1 ZELLERS 54,950 76.3 PRICE CHOPPER 17,032 100.0 PHARMAPRIX 28,848 36,484 90,340 29,950 17,032 90,131 92.2 TALIZE 26,851 SHOPPERS DRUG MART 18,163 HURON HOUSE 10,029 RESTAURANT 2004 213,051 100.0 CANADIAN TIRE 60,872 DOMINION 53,768 Exhibit 99.1 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES MISSISSAUGA NEW MARKET NEW MARKET OTTAWA OTTAWA OTTAWA OTTAWA OTTAWA SUDBURY SUDBURY TORONTO TORONTO TORONTO TORONTO TORONTO WHITBY WHITBY WINDSOR UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv 2003 2002 2003 2002 2008 2002 2002 2004 2002 2004 2002 2002 118,637 100.0 WINNERS (TJ MAXX) 27,308 BUSINESS DEPOT 20,038 SHOPPERS DRUG MART 16,339 244,198 99.0 ZELLERS 67,604 A & P 49,112 NATIONAL GYM CLOTHING 160,195 94.0 BED BATH & BEYOND 27,937 MICHAELS 21,563 PETSMART 288,867 86.9 WAL MART 116,649 LOEB 28,430 TRILLIUM COLLEGE 127,270 100.0 METRO 40,265 FUTURE SHOP (BEST BUY) 37,076 HOMESENSE 125,969 100.0 ZELLERS 86,121 LOEB 27,170 17,018 15,332 10,657 28,604 91,409 100.0 WINNERS (TJ MAXX) 29,609 BOUCLAIR 14,644 DOLLARAMA 10,558 82,883 96.3 FOOD BASICS 35,134 MARK’S WORK 11,439 WEARHOUSE 256,355 95.8 SEARS 43,000 WINNERS 32,447 MICHAELS 152,175 100.0 FAMOUS PLAYERS 58,099 BUSINESS DEPOT 27,391 CHAPTERS 385,204 100.0 CANADIAN TIRE 114,577 FORTINO’S 51,965 I.C.U. THEATERS 325,798 100.0 ZELLERS 134,845 DOMINION 53,008 BUSINESS DEPOT (STAPLES) 21,421 24,532 16,774 25,500 2002 171,088 98.0 WINNERS (TJ MAXX) 31,896 MARK’S WORK 13,984 SEARS APPLIANCE 11,589 WEARHOUSE 2002 2007 2002 2002 2007 133,035 100.0 CANADIAN TIRE 46,771 FUTURE SHOP (BEST BUY) 38,310 PETSTUFF 23,767 58,147 100.0 TRANSWORLD FINE CARS 58,147 391,261 100.0 SEARS WHOLE HOME 60,444 HOME OUTFITTERS 42,632 WINNERS (TJ MAXX) 35,094 158,852 99.4 PRICE CHOPPER 33,441 vALUE vILLAGE 23,685 SHOPPERS DRUG MART 23,789 46,986 100.0 PERFORMANCE FORD SALES 46,986 PRINCE EDWARD ISLAND CHARLOTTETOWN UJv 2002 393,456 98.2 ZELLERS 107,806 WEST ROYALTY FITNESS 60,157 IGA QUEBEC BOISBRIAND CHATEAUGUAY GATINEAU GREENFIELD PARK LAvAL LONGUEUIL BRAZIL HORTOLANDIA(2) RIO CLARO vALINHOS CHILE QUILICURA SANTIAGO SANTIAGO SANTIAGO SANTIAGO SANTIAGO SANTIAGO SANTIAGO SANTIAGO SANTIAGO(3) UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv UJv 2006 2002 2008 2002 2008 2002 2008 2008 2008 2008 2008 2007 2008 2008 2007 2007 2008 2007 2008 35,513 41,352 46,300 44,732 687,896 91.4 ZELLER’S 114,753 THE BRICK 45,860 TOYS R US 211,143 89.8 SUPER C 48,198 HART 20,296 283,565 100.0 WAL-MART 125,719 CANADIAN TIRE 88,640 SUPER C 369,102 96.7 GUZZO CINEMA 91,000 H&C 70,700 MAXI 116,147 100.0 ZELLERS 116,147 216,039 92.1 GUZZO CINEMA 47,732 IGA 31,848 vALUE vILLAGE 23,747 166,000 47.0 MAGAZINE LUIZA 48,266 48,000 100.0 WAL-MART 147,948 90.5 RUSSI GROCERY 48,000 45,208 7,707 93.7 66,866 90.9 SAITEC S.A. 38,757 BODY LINE 14,078 55,333 90.8 CENCOSUD SUPERMERCADOS SA 33,144 96.9 CENCOSUD S.A. 27,697 87.1 RENDIC HERMANOS S.A. 21,467 24,757 21,474 27,632 90.9 13,595 100.0 9,045 84.8 6,652 100.0 27,000 18.5 135 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME GLA MAJOR LEASES vINA DEL MAR(2) 2008 268,000 78.0 LIDER 81,688 SODIMAC 25,000 Exhibit 99.1 UJv UJv UJv UJv 2006 2006 2007 2005 2007 2007 383,302 91.3 WAL-MART 106,441 CINEPOLIS 46,801 vIPS 121,284 100.0 CINEPOLIS 46,208 PETER PIPER PIZZA 12,912 OFFICE DEPOT 496,000 77.3 HOME DEPOT 95,183 CINEPOLIS 40,135 WAL-MART 592,373 88.8 WAL-MART 96,678 CINEMEX 55,142 SAM’S 518,000 68.5 WAL-MART 124,343 CINEPOLIS 40,097 HOME DEPOT 20,945 17,582 109,403 96,180 95,334 185,000 80.5 COMERCIAL MEXICANA 78,752 COPPEL 16,142 SERvICIO EL TRIÁNGULO 11,836 UJv 2007 297,000 83.7 CHEDRAUI GROCERY 79,646 CINEMEX 38,951 SPORT BOOK Y YAK 19,486 2007 365,000 78.4 WAL-MART 123,674 CINEPOLIS 41,469 CASINO MAGIC O CENTRAL 21,838 2003 2006 2007 2007 2005 2002 240,986 85.1 SORIANA 150,532 ELEKTRA 10,760 175,000 84.6 WAL-MART 109,386 31,699 95.6 COPPEL 10,147 100.0 WALDO’S 14,279 10,147 443,000 86.0 HEB 96,678 HOME DEPOT 116,216 CINEPOLIS 173,308 95.8 HEB 74,115 CINEMARK 23,919 DEL SOL 55,517 17,332 2007 11,911 100.0 202,000 72.1 HOME DEPOT 118,360 OFFICE MAX 19,357 196,000 77.1 WAL-MART 71,339 COPPEL 13,719 FAMSA 16,184 2005 2005 2005 2006 2005 2007 2006 2004 2008 2006 129,705 85.8 WAL-MART 68,993 FAMSA 15,912 755,000 63.7 WAL-MART 129,163 CINEPOLIS 52,479 BEST BUY 654,000 79.1 WAL-MART 130,457 CINEPOLIS 57,060 SUBURBIA 15,645 100.0 87,689 99.1 SORIANA 75,159 172,827 90.6 WAL-MART 67,627 FAMSA 25,848 POCKET 230,000 84.0 CHEDRAUI GROCERY 123,452 CINEMEX 33,227 198,000 78.9 WAL-MART 67,321 FAMSA 15,111 ELEKTRA 2007 246,479 94.2 COMERCIAL MEXICANA 29,313 CINEMEX 51,390 ZARA 2007 2005 13,702 100.0 398,911 81.6 WAL-MART 121,639 CINEPOLIS 63,060 SUBURBIA 54,363 2006 595,000 59.4 WAL-MART 124,810 CINEMEX 45,590 SAM´S 98,740 61,840 56,029 10,545 11,427 17,599 MEXICO BAJA CALIFORNIA MEXICALI MEXICALI ROSARITO(3) TIJUANA TIJUANA(3) TIJUANA(3) CAMPECHE CIUDAD DEL CARMEN(3) CHIAPAS TAPACHULA(3) CHIHUAHUA JUAREZ JUAREZ(3) COAHUILA UJv UJv CIUDAD ACUNA SABINAS SALTILLO(3) SALTILLO PLAZA UJv DURANGO DURANGO HIDALGO PACHUCA(3) PACHUCA(3) JALISCO GUADALAJARA GUADALAJARA(2) GUADALAJARA(3) LAGOS DE MORENO UJv UJv UJv UJv PUERTO vALLARTA UJv MEXICO HUEHUETOCA OJO DE AUGUA(3) TECAMAC(3) MEXICO CITY INTERLOMAS IXTAPALUCA TLALNEPANTLA MORELOS CUAUTLA(3) NAYARIT UJv UJv UJv UJv UJv UJv NEUvO vALLARTA(2) UJv 2007 269,000 72.3 WAL-MART 124,318 CINEPOLIS 27,108 NUEvO LEON 136 Exhibit 99.1 GLA 54,238 14,865 26,321 LOCATION PORTFOLIO YEAR DEVELOPED OR ACqUIRED LEASABLE AREA (Sq. FT.) PERCENT LEASED(1) TENANT NAME GLA TENANT NAME GLA TENANT NAME MAJOR LEASES UJv UJv UJv UJv UJv UJv UJv ESCOBEDO(3) MONTERREY MONTERREY(3) MONTERREY(3) OAXACA TUXTEPEC TUXTEPEC(3) QUINTANA ROO CANCUN CANCUN(2) SONORA HERMOSILLO(2) LOS MOCHIS(3) TAMAULIPAS ALTAMIRA MATAMOROS MATAMOROS MATAMOROS MATAMOROS NUEvO LAREDO NUEvO LAREDO NUEvO LAREDO(3) REYNOSA REYNOSA REYNOSA RIO BRAvO RIO BRAvO(2) TAMPICO vERACRUZ MINATITLAN PERU LIMA 347,000 70.7 HEB 96,045 CINEMEX 32,639 SUBURBIA 272,519 97.5 HEB 98,142 CINEMEX 46,440 COPPEL 381,000 76.5 HEB 109,967 CINEMEX 44,152 PLAY CITY 183,000 43.8 HEB 96,919 96.4 WAL-MART 137,000 66.5 CINEMAX 69,449 63,164 30,128 2006 2002 2006 2008 2005 2007 2007 2008 286,287 96.2 SUBURBIA 53,572 CINEPOLIS 47,909 SANBORNS 18,652 263,000 75.3 CHEDRAUI GROCERY 127,596 CINEMEX 31,492 2008 415,000 66.6 SEARS 71,662 CINEPOLIS 52,078 CASINO CENTRAL O 20,293 CASINO MAGICO 2007 152,000 71.4 WAL-MART 88,654 2007 2007 2007 2007 2007 2007 2007 2006 2004 2007 2007 2007 2008 2007 24,479 100.0 FAMSA 10,276 153,774 100.0 CINEPOLIS 40,296 SORIANA 39,554 OFFICE DEPOT 18,141 17,872 100.0 WALDOS 10,900 100.0 WALDOS 10,835 100.0 WALDOS 10,760 100.0 WALDOS 8,565 100.0 11,782 10,900 10,835 10,760 442,000 81.5 WAL-MART 110,225 HOME DEPOT 93,036 CINEPOLIS 374,562 96.7 HEB 79,839 HOME DEPOT 95,118 CINEMEX 49,132 73,168 115,093 100.0 SORIANA 92,076 9,684 100.0 9,673 100.0 226,000 41.6 HEB 69,265 FAMSA 16,086 16,162 100.0 2007 19,847 100.0 WALDOS 10,717 2008 13,000 53.8 TOTAL 951 SHOPPING CENTER PROPERTY INTERESTS(4) 138,057,817 (1) Percent leased information as of December 31, 2010. (2) Denotes ground-up development project. This includes properties that are currently under construction and completed projects awaiting stabilization. The square footage shown represents the completed leaseable area. (3) Denotes operating property not yet in occupancy. (4) Does not include 906 properties, primarily through the Company’s preferred equity investments, other real estate investments and non-retail properties, totaling 34.4 million square feet of GLA. BIG Denotes property interest in BIG Shopping Centers. CPP Denotes property interest in Canada Pension Plan. KIF Denotes property interest in Kimco Income Fund. KIR Denotes property interest in Kimco Income REIT. OIP Denotes property interest in Other Institutional Programs. OJV Denotes property interest in Other US Joint Ventures. PRU Denotes property interest in Prudential Investment Program. SEB Denotes property interest in SEB Immobilien. UBS Denotes property interest in UBS Programs. UJV Denotes property interest in Unconsolidated Joint Venture. 137 Shareholder Information Kimco Realty Corporation and Subsidiaries Counsel Latham & Watkins New York, NY Auditors PricewaterhouseCoopers LLP New York, NY Registrar and Transfer Agent The Bank of New York Mellon P.O. Box 358015 Pittsburgh, PA 15252-8015 1-866-557-8695 Website: www.bnymellon/shareowner/isd Email: shrrelations@bnymellon.com Offices Executive Offices 3333 New Hyde Park Road New Hyde Park, NY 11042 516-869-9000 www.kimcorealty.com 138 Stock Listings NYSE—Symbols KIM, KIMprF, KIMprG, KIMprH On June 4, 2010, the Company’s Chief Executive Officer submitted to the New York Stock Exchange the annual certification required by Section 303A.12(a) of the NYSE Company Manual. In addition, the Company has filed with the Securities and Exchange Commission as exhibits to its Form 10-K for the fiscal year ended December 31, 2010, the certifications, required pursuant to Section 302 of the Sarbanes-Oxley Act, of its Chief Executive Officer and Chief Financial Officer relating to the quality of its public disclosure. Investor Relations A copy of the Company’s Annual Report to the U.S. Securities and Exchange Commission on Form 10-K may be obtained at no cost to stockholders by writing to: David F. Bujnicki Senior Director, Investor Relations Kimco Realty Corporation 3333 New Hyde Park Road New Hyde Park, NY 11042 1-866-831-4297 E-mail: ir@kimcorealty.com Annual Meeting of Stockholders Stockholders of Kimco Realty Corporation are cordially invited to attend the Annual Meeting of Stockholders scheduled to be held on May 4, 2011, at 277 Park Avenue, New York, NY, Floor 17, at 10:00 a.m. Dividend Reinvestment and Common Stock Purchase Plan The Company’s Dividend Reinvestment and Common Stock Purchase Plan provides common and preferred stockholders with an opportunity to conveniently and economically acquire Kimco common stock. Stockholders may have their dividends automatically directed to our transfer agent to purchase common shares without paying any brokerage com- missions. Requests for booklets describing the Plan, enrollment forms and any corre- spondence or questions regarding the Plan should be directed to: The Bank of New York Mellon P.O. Box 358015 Pittsburgh, PA 15252-8015 1-866-557-8695 Holders of Record Holders of record of the Company’s common stock, par value $.01 per share, totaled 3,126 as of March 7, 2011. Regional Offices Mesa, AZ 480-461-0050 Daly City, CA 650-756-2162 Granite Bay, CA 916-791-0600 Irvine, CA 949-252-3880 Los Angeles, CA 310-284-6000 Vista, CA 760-727-1002 Hartford, CT 860-561-0545 Hollywood, FL 954-923-8444 Largo, FL 727-536-3287 Sanford, FL 407-302-4400 Rosemont, IL 847-299-1160 Columbia, MD 443-367-0110 Walnut Creek, CA 925-977-9011 Lutherville, MD 410-684-2000 Charlotte, NC 704-367-0131 Raleigh, NC 919-791-3650 Las Vegas, NV 702-258-4330 New York, NY 212-972-7456 Canfield, OH 330-702-8000 Dayton, OH 937-434-5421 Portland, OR 503-574-3329 Ardmore, PA 610-896-7560 Dallas, TX 214-692-3581 Houston, TX 832-242-6913 San Antonio, TX 210-566-7610 Bellevue, WA 425-373-3500 Corporate Directory Board of Directors Milton Cooper Executive Chairman Kimco Realty Corporation Joe Grills (1)(2v)(3) Chief Investment Officer * IBM Retirement Fund Frank Lourenso Executive Vice President JPMorgan Chase & Co. Executive Management Milton Cooper Executive Chairman Glenn G. Cohen Executive Vice President, Chief Financial Officer & Treasurer Corporate Management Scott G. Onufrey Senior Vice President & Managing Director, Investment Management Raymond Edwards Vice President, Retail Services U.S. Regional Management Philip E. Coviello (1)(2)(3) Partner * Latham & Watkins LLP David B. Henry Vice Chairman, President & Chief Executive Officer Kimco Realty Corporation Richard Saltzman (2)(3) President Colony Capital LLC David B. Henry Vice Chairman, President & Chief Executive Officer Barbara M. Pooley Executive Vice President & Chief Administrative Officer Bruce Rubenstein Senior Vice President, General Counsel & Secretary Fredrick Kurz Vice President & General Manager Risk Management Richard G. Dooley (1)(2)(3v) Executive Vice President & Chief Investment Officer * Massachusetts Mutual Life Insurance F. Patrick Hughes (1v)(2)(3) President Hughes & Associates, LLC. * Retired (1) Audit Committee (2) Executive Compensation Committee (3) Nominating and Corporate Governance Committee v Chairman Michael V. Pappagallo Executive Vice President & Chief Operating Officer Leah Landro Vice President, Human Resources Thomas Taddeo Vice President, Chief Information Officer Conor Flynn President, Northwest Region Robert Nadler President, Central Region Paul D. Puma President, Florida/Southeast Regions Wilbur “Tom” Simmons III President, Mid-Atlantic/Northeast Region John Visconsi President, Pacific Southwest Region International Management Michael Melson Managing Director, Latin America Kelly Smith Managing Director, Canada REALTYREALTYREALTYPM S 2945REALTYRGBCMYK K i m c o R e a l t y • 2 0 1 0 a n n u a l R e p o R t PM S 2945 RGB CMYK R E A L T Y R E A L T Y 3333 New Hyde Park Road, Suite 100 New Hyde Park, NY 11042 Tel: 516-869-9000 Fax: 516-869-9001 R E A L T Y www.kimcorealty.com R E A L T Y
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