Further Reduction in Non-Retail Holdings

With just under $800 million of investment in non-retail properties remaining, we will aggressively pursue creative approaches to dispose of these non-core assets. A substantial amount of these investments involve other partners or investors, and creating an alignment of interests 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.

Liquidity and Conservative Capital Structure

Kimco’s significant success over the past two years in reducing 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 markets 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, including more than $1.5 billion in credit line availability, narrowing spreads on our unsecured bonds, and access to institutional and public market equity capital. However, we also acknowledge that a strong capital position is characterized by ample liquidity, manageable debt loads with staggered maturities, and strong debt and fixed-charge coverage ratios—all of which are fundamental to managing through the ups and downs of the business and real estate cycles.

We intend to meet our stated objectives of reducing 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 operating climates.