PenEquity Realty Corporation and Kimco Realty Corporation Announce a Strategic Partnership

PenEquity Realty Corporation (“PenEquity”) has recently completed an investment transaction with Kimco Realty Corporation (“Kimco”). In addition, Kimco has agreed to contribute a further $75 million to invest with PenEquity (which may include co-investments with PenEquity’s pension fund clients) in development or redevelopment of a real estate portfolio of high-quality core properties. All future transactions will be approved by each of PenEquity and Kimco.

“We are very pleased to be recognized as one of Kimco’s strategic Canadian Partners. This represents an exciting opportunity for PenEquity to combine it’s comprehensive real estate skill set with Kimco’s financial strength and extensive shopping centre experience”, said David Johnston, President & C.E.O. of PenEquity”

PenEquity is a private Canadian company which focuses on institutional quality real estate asset/property management and specializes in large-scale retail/entertainment projects on behalf of its pension fund clients, institutional investors and on its own account. PenEquity has undertaken retail and entertainment development projects in excess of 4.2 million square feet.

Kimco (KIM:NYSE) is a publicly traded real estate investment trust that has specialized in shopping centre acquisitions, development and management for more than 45 years. The Company owns and operates neighbourhood and community shopping centres with interests in 1,046 properties comprising approximately 132.0 million square feet of leasable space located throughout the United States, Canada and Mexico.

For further information, please contact David V. Johnston, C.A., President & C.E.O., PenEquity Realty Corporation, 370 King Street West, Suite 400, Box 25, Toronto, Ontario, Canada, M5V 1J9, Main telephone: (416) 408-3080, Facsimile: (416) 408-1688