Kimco Realty OP, LLC, the operating subsidiary of Kimco Realty Corporation (NYSE: KIM), priced $525 million of 3.50% exchangeable senior notes due 2031 in a private offering to qualified institutional buyers. The offering was increased from the previously announced $500 million.

The notes will mature on June 15, 2031, and accrue interest at 3.50% per annum, payable semi-annually. The initial exchange rate is set at 30.9028 shares of Kimco common stock per $1,000 principal amount of notes, representing an exchange price of approximately $32.36 per share. This reflects a 27.5% premium over the $25.38 closing price of Kimco stock on June 10, 2026.

Kimco OP granted initial purchasers an option to purchase up to an additional $75 million of notes within 13 days of issuance. The company estimates net proceeds of approximately $513.5 million after fees and expenses, or $587 million if the full overallotment is exercised.

The company plans to use approximately $104.7 million of proceeds to repurchase 4,125,900 shares of Kimco common stock through privately negotiated transactions. The remainder will fund general corporate purposes, including debt repayment and potential acquisitions, investments, and redevelopment opportunities.

The notes will be redeemable at Kimco OP's option starting June 20, 2029, if Kimco's stock price exceeds 130% of the exchange price for a specified period. Noteholders may require repurchase upon certain fundamental changes.

The offering is scheduled to settle June 15, 2026, subject to customary closing conditions. Kimco Realty is a real estate investment trust that owns interests in 565 U.S. shopping centers and mixed-use assets comprising 100 million square feet of gross leasable space as of March 31, 2026.