Kimco Realty will acquire RPT in an all-stock transaction valued at approximately $2 billion, including the assumption of debt and preferred stock. When the deal closes in early 2024, Kimco expects to have a pro forma equity market capitalization of $13 billion and a total enterprise value of $22 billion.

The transaction will add 56 open-air shopping centers — 43 wholly owned and 13 joint-venture assets — comprising 13.3 million square feet of gross leasable area to Kimco’s portfolio of 528 properties. About 90% of the RPT properties are anchored by supermarkets, and most are in East Coast and Sun Belt markets, which Kimco CEO Conor Flynn said will enhance Kimco’s presence in markets that benefit from positive demographic and migration trends. Sun Belt exposure was a big factor in Kimco’s 2021 acquisition of Weingarten.

Kimco plans to boost the RPT portfolio’s profitability by redeveloping some properties, raising rents as much as 20% in some and cutting the time between lease signing and move-in for tenants. Kimco has marked a small group of RPT’s Midwest properties for later divestiture.

Kimco also will acquire RPT’s 6% stake in a 49-property net lease joint venture with Singaporean sovereign wealth fund GIC.

The trophy property in the deal is Miami’s Mary Brickell Village, pictured at top, which Kimco plans to develop further with mixed uses and new tenants.