Kimco Realty reported last week that it received $156 million as part of Apollo Global Management’s $1.75 billion purchase of Albertsons convertible preferred stock, a transaction that took place in May. As a result, Kimco’s interest in Albertsons decreased from 9.29% to 7.5%.
Kimco also reported that Albertsons used $1.68 billion in net proceeds from the sale to Apollo to repurchase about 17.5% of the common stock from current shareholders, based on the preferred stock conversion level.
Kimco has held an interest in Albertsons (Albertsons, Safeway, Vons, etc.) since 2006, when an investment group led by Cerberus Capital Management acquired 661 supermarkets from Albertsons Inc. Kimco invested about $51 million in the transaction.
In 2013, the investment group purchased the remaining Albertsons stores, plus the Acme, Jewel-Osco, Shaws and Star Markets banners, from Supervalu for $3.3 billion. Kimco’s investment was about $37 million. At the time, Kimco bought $33.6 million of Supervalu common stock, which it later sold for $74 million.
Two years later in 2015, the investment group acquired Safeway, with Kimco investing about $85 million. The company said it received more than $300 million in cash distributions from those investments in Albertsons, including proceeds from the Supervalu stock sale.
As of March 31, Kimco owned interests in 401 U.S. shopping centers and mixed-use properties.
As of February 29, Albertsons had 2,252 food stores in 34 states and the District of Columbia. It also operates 1,726 pharmacies, 402 fuel centers, 23 distribution centers and 20 manufacturing plants.