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R E A LT Y2012 Annua l Repo r t

A bout the CompanyL etter from the Chairman22012 Operating Review14Form 10-K21Shareholder Information 119Corporate DirectoryIBCKimco Realty Corporation (NYSE: KIM) is a real estate investmenttrust (REIT) headquartered in New Hyde Park, N.Y., that ownsand operates North America’s largest portfolio of neighborhoodand community shopping centers. As of December 31, 2012,the company owned interests in 896 shopping centers comprising131 million square feet of leasable space across 44 U.S. states,Puerto Rico, Canada, Mexico and South America.

FOCUSEDFrom our first shopping center in Miami in 1958, to our nearly 900 shopping centers acrossNorth America today, growth has always been a part of Kimco’s DNA.It still is. But as we enter the next chapter in our history, our path to growth is becoming evenmore focused – on top markets, quality and value, serving retailers and, as always, on results.We’re paying close attention to what really matters, with one goal in mind: to be the bestneighborhood and community shopping center company in North America.We will achieve that goal by staying FOCUSED. ON TOP MARKETS . 6ON QUALITY AND VALUE .8ON RETAILERS . 10ON RESULTS . 12

CH AIRMAN’S LETTERDear Fellow Shareholders and Associates:When Marty Kimmel and I developed our firstshopping center in 1958, our primary focus was on thecash flow that could be generated from tenant leases;this would amortize the mortgage loan and provide ourinvestors with stable and predictable cash distributions.The investment thesis was simple: Construct abuilding where a retailer wanted to serve its customersand lease it at a rate that would pay the investors a safeand reasonable return over the life of the lease. Wecould earn money while we slept.During the ’70s and ’80s, we shifted to acquiringproperties with the same characteristics – low rentrelative to the anchor tenant’s sales, strong locationsin densely populated markets and a steady cash flowproviding distributions to the investors.In 1991, when we completed our initial publicoffering, we provided investors access to ownership ofshopping centers in a new public vehicle for the firsttime in a very long time. Our shareholders enjoyeda safe and growing dividend and growth in cashflow from retail real estate, along with a vehicle toopportunistically capitalize on the needs of distressed,real-estate rich retailers.Fast forward to Kimco’s Investor Day in September2010 when, after the worst recession since theGreat Depression, we made a commitment to our2shareholders to simplify our strategy and once againfocus on recurring cash flow from high-qualityshopping centers. We are making excellent progressfulfilling that commitment. To put our transformationin perspective, in 2008 our non-retail investmentbalance was 1.1 billion. After the impending sale ofthe InTown Suites extended-stay portfolio, that balanceis expected to be below 300 million.Since our Investor Day, we’ve also shed shoppingcenters that didn’t fit our criteria, generating proceedsto Kimco of more than 500 million.We have used these proceeds, together with thosegenerated from our non-retail dispositions, to reducedebt and acquire higher-quality shopping centers inwell-located areas.The table on the next page illustrates our transformation.Today, the demand for space for our type of retailproperty continues to improve. Absorptions areforecast to outpace completions of new constructionfor the foreseeable future. Despite prevailingeconomic uncertainties, planned store openings are ata multiyear high.Our tenants are generally strong credits, includingdiscounters, off-price retailers, drugstores, supermarkets and warehouse clubs, supplying everyday

Our Quality Trade-Up: U.S. Shopping Center Acquisitions & DispositionsSince Investor Day 2010 (as of 12/31/12)AcquiredDisposedSitesSitesVarianceNumber of properties59108-45.4% 1,290,868 825,25056.4%Gross Leaseable Area in square feet %Average Base Rent per square foot* 13.92 8.7559.1%Estimated Population91,62176,32920.0%1,2731,06419.6%Median Household Income† 74,390 58,45827.3%Average Household Income† 88,935 65,32836.1%Gross Price (000’s)†Household Density per square mile†* Represents Kimco’s pro-rata interest†Within a three-mile radiusnecessities. Many of our leases were entered intodecades ago, and contain very low contract rents. Veryfew public companies have entered into leases 40 yearsago; these legacy contract rents are obviously belowmarket, and they form a basis for future rental growthas the leases expire. A recent illustration of this was a41-year-old lease with a major retailer that provided uswith annual rental revenues of 315,000. When thelease expired in the first quarter of 2012, we enteredinto a new ground lease with a credit tenant for oversix times that rent. There are more such leases in ourportfolio, which should result in additional rentalgrowth as the leases expire.Like other retail property owners, we are still navigatingthrough some headwinds. Many consumers are feelingthe impact from the end of the payroll tax holiday, andgasoline prices are up. And yet some major economicindicators are pointing in the right direction.The unemployment rate, while still too high, is slowlyimproving, and home prices continue to recover.Interest rates remain low. We remain focused on leasingour space to smart retailers who will benefit from bettereconomic conditions in the years ahead.3

Having evolved from that first shopping center manyyears ago, there are three aspects of Kimco’s business thatdistinguish us today.1. We have a very large operating platform – 896shopping centers with approximately 8,400 tenants –that enables us to service the needs of major nationaland regional retailers. Having this breadth oflocations provides us with access to most, if not all,of the retailers that are experiencing the most rapidgrowth today. Among our peers, we are the largestlandlord to Costco, TJX Companies (T.J. Maxx,Marshalls, etc.), Royal Ahold (Stop & Shop, Giant,etc.) and others. Home Depot and Walmart, two ofthe most creditworthy companies in America today,are among our largest tenants. Given our scale,we are afforded a seat at the table when a retailer islooking to expand or open a new store. In the retailreal estate industry, size matters.2. We are a manager and owner in joint ventures thathold approximately 10 billion of retail real estate.This platform has enabled us to acquire interests innumerous high-quality properties and to generatehigh returns on our shareholders’ equity due to ourmanagement role. Recently, an added benefit ofthis business has been the opportunity to increaseour investment in select assets when some of ourpartners have expressed a desire to monetize theirinvestments or modify their investment allocations.Since our Investor Day in 2010, we have disposedof 55 joint venture properties that were not strategic4to our portfolio and acquired 10 properties frompartners in which we had a minority interest stakeand a management role. For example, duringthe year, we acquired Towson Marketplace inTowson, Maryland. This is a wonderful shoppingcenter anchored by both Target and Walmart,with a full-line Weis Market on site. This propertyshould provide stable and growing cash flows toour shareholders for many years to come. Anotherrecent example is Santee Trolley Square in Santee,California, where we increased our ownership from45 percent to 100 percent. This 98-percent-occupied,311,000-square-foot shopping center is anchoredby several prominent national retailers such as T.J.Maxx, PetSmart, Party City, Bed Bath & Beyond, 24Hour Fitness and Old Navy, and shadow-anchoredby Target.3. We have a long-term track record of capturing retailrelated opportunities. Our history is illuminatedby profitable transactions with Venture Stores,Gold Circle, Hechinger’s, Montgomery Ward,Service Merchandise, Kmart, Ames, Albertsons,Woolworth, Frank’s Nursery, Strawbridge &Clothier, Strauss Discount Auto, Penn Traffic, SaveMart and Shopko. While committed to our stableand growing base of recurring income, Kimco hasalways had an opportunistic culture, which is the“plus” in our “Income Plus” strategy. Our trackrecord of generating profits from transactions withretailers that are real-estate rich has proven timeand again that if you are fast with your footwork,

and well-known, reliable and trusted in the retailindustry, you can generate outsized returns foryour shareholders. Our most recent example ofan opportunistic investment is our participation ina consortium to restructure Supervalu. This is thesame group we partnered with in the Albertsonstransaction, which made Kimco shareholders fivetimes their initial investment – and we still maintaina valuable position in this investment. Kimco willcontinue to provide real estate advisory services tothe new Supervalu venture.In closing, please permit me to express a few thoughtsabout today’s retail real estate market prices. Theprices of high-quality shopping centers today appear“expensive” compared with long-term historicalaverages for market cap rates, which are the initialunleveraged yields available to property buyers.However, let’s dig a little deeper. When compared withthe risk-free interest rate available on the 10-year U.S.Treasury note, investment yields available on qualityretail real estate may be at historically attractive levels.Let me explain. The interest rate on 10-year Treasurieswas, as of this writing, approximately two percent.Treasury Inflation-Protected Securities (TIPS) for thesame duration show negative yields. An argument canbe made that real estate returns should be comparedwith TIPS, because the residual value of real estateoften increases in value with inflation, in some wayssimilar to the increasing yield on a TIPS bond.Clearly, by these measures, quality real estate bearingcap rates in the 5 to 6 percent range looks attractivelypriced. A similar conclusion might be reached if onecompares real estate cap rates with yields presentlyavailable on investment-grade corporate bonds. All thisconsidered, I’ll put my money in shopping centers attoday’s cap rates any day.Our goal at Kimco is to continue to be the premierowner of retail properties in North America; thisshould enable us to deliver safe and growing cash flowsfrom our investment portfolio, as well as increasingdistributions to our shareholders. In addition, we seekto continue generating profits and create value fromour retail-related opportunistic activities. In otherwords, “Income Plus.” We continue to work very hardto achieve these objectives.I want to thank all of our associates for the wonderfuljob they are doing executing our business plan; I’mquite proud of their achievements on behalf of Kimcoshareholders and stakeholders. I am very excited by thefuture opportunities I see ahead. It’s indeed a greattime to own high-quality, income-producing retailreal estate and I’m as proud as ever of our position inthe industry.Milton CooperExecutive Chairman5