Kimco Realty Reports Record Fourth Quarter and Full Year Operating Results.

NEW HYDE PARK, N.Y. -- Kimco Realty Corporation (NYSE: KIM)

Highlights:

* Net Income Increased 22.5% for the Quarter and 17.8% for the Year

* Funds From Operations Increased 16.0% for the Quarter and 17.1% for the Year

* Net Income Per Share Increased 13.3% for the Quarter and 11.8% for the Year

* Funds From Operations Per Share Increased 5.5% for the Quarter and 10.5% for the Year

* Assets Under Management Increased to $14.0 Billion

* Portfolio Occupancy Increased 50 Basis Points During the Quarter to 95.5%

* Investments for 2006 Exceeded $7.1 Billion in Total Value; $1.0 Billion in First Month of 2007

* Establishes Joint Venture in Chile

Kimco Realty Corporation (NYSE: KIM) today announced that net income for the quarter ended December 31, 2006 increased 22.5 percent to $131.9 million compared to $107.7 million a year earlier. On a per diluted share basis, net income increased 13.3 percent to $0.51 from $0.45 reported for the fourth quarter last year. Funds from operations ("FFO"), a widely accepted supplemental measure of REIT performance, rose 16.0 percent to $147.8 million during the quarter from $127.5 million for the same period last year. On a per diluted share basis, fourth quarter FFO increased 5.5 percent to $0.58 from $0.55 a year ago. Funds from operations excludes gains on dispositions of operating properties net of minority interests and joint venture properties of approximately $44.8 million, or $0.17 per diluted common share in 2006 and $19.0 million, or approximately $0.08 per share in 2005.

For the year ended December 31, 2006, net income increased to 17.8 percent to $428.3 million from $363.6 million. On a diluted common share basis, net income for the year increased 11.8 percent to $1.70 compared to $1.52 per diluted share a year earlier. Funds from operations rose 17.1 percent to $544.3 million from $464.7 million in the year earlier period. On a diluted per common share basis, FFO increased 10.5 percent to $2.21 from $2.00 a year ago. Funds from operations for the current year excludes gains on dispositions of operating properties net of minority interests and joint venture properties of $88.3 million or approximately $0.35 per diluted common share and $45.4 million or approximately $0.19 per diluted common share for the same period last year.

These operating results are consistent with the Company's objective of generating a high level of income and FFO growth over time. Kimco's compound annual growth rate in FFO per share is 10.6 percent in the 15 year period since its initial public offering in 1991.

Funds from operations (FFO) is a supplemental non-GAAP financial measure used as a standard in the real estate industry to measure and compare the operating performance of real estate companies. A complete reconciliation containing adjustments from GAAP net income to FFO is included in this release.

During the quarter, Kimco's parent portfolio occupancy increased to 95.5 percent from 95.0 percent at September 30, 2006 and 94.6 percent a year earlier. Kimco's occupancy is the highest level in Company history. For the quarter, Kimco signed 107 new leases in the portfolio totaling 515,000 square feet and 105 lease renewals totaling 627,000 square feet. For the year, the Company signed 468 new leases in this portfolio totaling approximately 1.8 million square feet and 420 lease renewals totaling 1.9 million square feet. The average increase in base rent for new leases signed for same space leases was 18.2 percent and 20.0 percent for the quarter and year ended December 31, 2006, respectively. Occupancy in the Company's combined operating portfolio encompassing approximately 138.0 million square feet of gross leasable area was 95.8 percent, 70 basis points higher than a year ago.

Investment Activity

During the year, Kimco acquired properties and investments for the Company's core holdings portfolio, the investment management programs and its operating businesses totaling in excess of $7.1 billion. The Company's balance sheet continues to be one of the strongest in the real estate industry. At year end, the Company had $345.0 million in cash and unused credit facilities with capacity in excess of $1.1 billion.

U.S. Investments

Kimco acquired interests in 166 properties totaling 28.1 million square feet during the fourth quarter of 2006 and the first month of 2007. In aggregate, the value of these acquisitions exceeded $5.4 billion, including the previously announced acquisitions of Pan Pacific Retail Properties Inc. for $4.1 billion and the Crow Holdings portfolio for $920 million. Additional significant shopping center acquisitions during this period included the following:

* The Company acquired two shopping centers for its co-investment program with UBS Wealth Management. Woodbury Centre located in Harriman, New York, is a 228,000 square foot Kohl's anchored Shopping center that was acquired by the venture in January for $43.6 million. In addition, Riverwalk Marketplace located Duluth, Georgia, was acquired for $20.4 million. Riverwalk Marketplace is a recently constructed 78,000 square foot shopping center anchored by Whole Foods.

* In the Company's co-investment program with G.E. Pension Trust, the Company acquired Conroe Marketplace, a 244,000 square foot shopping center located in Conroe, Texas. Anchor tenants at this property include TJ Maxx, Ross Stores, Bed Bath & Beyond and Petsmart. The property was purchased for $60.5 million.

* Kimco also acquired Fountains at Arbor Lakes, a 407,000 square foot recently completed shopping center located in Maple Grove, Minnesota. Fountains at Arbor Lakes is anchored by a Lowe's home improvement center and several other national tenants. The property was purchased for approximately $95.0 million.

* During the fourth quarter, Kimco completed the previously announced acquisition of three properties located in Puerto Rico. Ponce Town Center, Villa Maria Shopping Center and Rexville Towne Center were acquired, completing the acquisition of a $451.9 million portfolio of seven shopping centers totaling 2.2 million square feet.

As a result of the Company's successful shopping center acquisition program for the investment management business, Kimco now manages assets with an approximate value of $14.0 billion. Kimco's investment management business contributed approximately $44.4 million to FFO during the quarter and $131.1 million for the year. These amounts represent increases of 84 percent and 50 percent for the quarter and full year, respectively.

U.S. Preferred Equity Investments

Kimco invested approximately $35.7 million in seven U.S. preferred equity transactions during the quarter, for a total of 30 transactions encompassing 73 properties and totaling $181.5 million for the full year. During the quarter, the Company received payment of two preferred equity investments resulting in proceeds of $11.6 million for the quarter. In addition, Kimco invested $16.3 million in five transactions during January 2007. The Company currently owns interests in 133 properties in the U.S. preferred equity portfolio.

Canada

Kimco invested $10.0 million in three preferred equity transactions in Canada during the quarter, and made an additional $8.2 million investment subsequent to quarter end. During the quarter, Kimco completed its fourth preferred equity investment with Sandalwood Management in Canada, investing $7.1 million in a portfolio of three properties totaling 312,000 square feet. In addition, Kimco funded a $2.5 million preferred equity investment in a portfolio of three shopping centers with Abacus Capital in Canada. The three shopping centers total approximately 120,000 square feet and are located in suburban Toronto, Ontario. Subsequent to quarter end, Kimco funded an additional $8.2 million investment with Abacus in a nine property portfolio located in Ottawa, Ontario. Kimco has also completed four investment transactions with Abacus. In aggregate, Kimco currently owns interests in 104 properties in its Canadian preferred equity portfolio.

Mexico

In Mexico, Kimco commenced six new shopping center developments, acquired one stabilized Walmart and Office Depot anchored shopping center in Mexicali, Baja California, and acquired three net leased industrial properties for an aggregate investment of approximately $78.5 million for the quarter. For the full year, Kimco commenced 11 new retail developments in Mexico with a total estimated project cost of $342.8 million upon completion.

The new developments closed in the fourth quarter included:

* Miguel Aleman Shopping Center, located in Monterrey, Mexico, is a 386,000 square foot development project anchored by an HEB grocery store. The property is located in a densely populated section of the city where there are more than 255,000 people living within two miles. Total anticipated costs to complete the project are approximately $41.1 million.

* Walmart Plaza, located in Juarez, Mexico, is a ground up development of a 154,000 square foot center anchored by a Walmart Super Center. Total anticipated costs to complete this development project are approximately $19.2 million.

* Plaza Nuevo Laredo, located on the border between Texas and Mexico in Nuevo Laredo, Mexico, is a 420,000 square foot development project anchored by Home Depot and Walmart. Completion of the development is expected in September 2007 at a gross cost of approximately $30.8 million.

* Plaza Mexiquense is a 161,000 square foot development located in Tecamac, a city north east of Mexico City, Mexico. The project is anchored by Bodega Aurrera, a neighborhood grocery chain owned by Walmart. Total anticipated costs to complete the project are expected to be approximately $13.2 million.

* Plaza Cuautla, is a 566,000 square foot development located in Cuautla a south east suburb of Mexico City, Mexico. The development project is anchored by a Walmart Super Center, Sam's Club, Suburbia and Cinepolis movie theatre. Total anticipated costs to complete are expected to be approximately $32.0 million.

* Subsequent to quarter end, Kimco commenced a ground up development on a 126,000 square foot shopping center located in Huehuetoca, a suburb of Mexico City. The development is expected to be completed in June 2007 at a cost of approximately $10.3 million.

Chile

Kimco formed a joint venture with PATIO Gestion Inmobilaria, S.A., an established retail developer in Chile, to acquire and develop shopping centers in major markets throughout the country. In its first transaction, the venture will acquire a 50 percent interest in four existing properties located in Chile's densely populated capital city of Santiago. The properties being acquired have an acquisition value of $16.2 million and they total 153,600 square feet, including expansion space. The largest tenants include Farmacias Ahumada and Farmacias Cruz Verde, leading Chilean pharmacy chains and leading supermarket retailers, Cencosud and D&S.

Kimco has targeted Chile for expansion based on the Country's superior investment returns, established retail real estate market, consistent retail sales growth, strong and growing economy, and stable government. In addition, Chile has an "A" investment rating from Standard & Poor's and there is a vibrant mortgage market for financing real estate investments.

Kimco Developers, Inc.

Kimco's merchant building business, Kimco Developers, Inc. (KDI) sold three recently completed shopping center developments and seven additional pad sites during the quarter. The development sales and two earn- out payments generated proceeds of approximately $115.8 million and gains on sales, net of taxes in the amount of $10.3 million for the quarter. For the full year, KDI had proceeds from sales of approximately $260.0 million and gains on sales, net of taxes in the amount of $25.1 million.

During the quarter, KDI acquired a 160 acre land parcel for future development in Marana, Arizona for approximately $30.0 million and an additional parcel for KDI's existing Avenues Walk development project in Jacksonville, Florida for approximately $4.5 million. In addition, KDI purchased an interest in a 90 acre parcel in McMinnville, Oregon, a suburb of Portland, for future development for approximately $4.1 million. Overall, KDI is currently developing 28 projects comprised of 11.6 million square feet.

Disposition Activity

Kimco continued to sell properties in non-strategic markets, with weak demographics or limited prospects for growth. During the quarter the Company sold 15 properties from the Company's core holdings portfolio. In aggregate, these sales generated proceeds of $156.3 million and net gains on sales of approximately $40.7 million. For the year, Kimco sold or disposed of 36 properties from this portfolio totaling $294.2 million and generated gains on sales of $72.0 million from this portfolio.

Earnings Guidance

As a result of the Company's continued strong investment and operating performance, management increased its previously issued range of FFO guidance to $2.39 - $2.49 from a range of $2.37-$2.47 per share for the year ending December 31, 2007. A reconciliation of management's projections from earnings per diluted common share to FFO per diluted common share is included in this release.

Kimco Realty Corporation is a publicly traded real estate investment trust that has specialized in shopping center acquisitions, development and management for more than 45 years. The Company owns and operates the nation's largest portfolio of neighborhood and community shopping centers with interests in 1,348 properties comprising approximately 175.4 million square feet of leasable space located throughout 45 states, Canada, Mexico and Puerto Rico. For further information refer to the Company's web site at www.kimcorealty.com.

Safe Harbor Statement: The statements in this release state the Company's and management's hopes, intentions, beliefs, expectations or projections of the future and are forward-looking statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from current expectations include, but are not limited to, (i) general economic conditions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or general downturn in their business, (iii) local real estate conditions, (iv) increases in interest rates, (v) increases in operating costs and real estate taxes. Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to the Company's report on Form 10-K for the year ended December 31, 2005. Copies of each filing may be obtained from the Company or the SEC.

[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]

Note: Reclassifications: Certain amounts in the prior period have been reclassified in order to conform with the current period's presentation.

(1) Included in the calculation of income from continuing operations per share in accordance with SEC guidelines.

(2) Reflects the potential impact if certain units were converted to common stock at the beginning of the period. The impact of the conversion would have an anti-dilutive effect on net income and therefore have not been included.

(3) Reflects the potential impact if certain units were converted to common stock at the beginning of the period. Net income would be increased by $1,739 for the three months ended December 31, 2005.

[TABLE OMITTED]
[TABLE OMITTED]

(1) Most industry analysts and equity REITs, including the Company, generally consider funds from operations ("FFO") to be an appropriate supplemental measure of the performance of an equity REIT. FFO is defined as net income applicable to common shares before depreciation and amortization, extraordinary items, cumulative effect of accounting changes, gains on sales of operating real estate, plus the pro-rata amount of depreciation and amortization of unconsolidated joint ventures, net of minority interests, determined on a consistent basis. Given the nature of the Company's business as a real estate owner and operator, the Company believes that FFO is helpful to investors as a measure of its operational performance. FFO does not represent cash generated from operating activities in accordance with generally accepted accounting principles and therefore should not be considered an alternative for net income as a measure of liquidity. In addition, the comparability of the Company's FFO with the FFO reported by other REITs may be affected by the differences that exist regarding certain accounting policies relating to expenditures for repairs and other recurring items.

(2) Reflects the potential impact if certain units were converted to common stock at the beginning of the period. Funds from operations would be increased by $2,410 and $1,739 for the three months ended December 31, 2006 and 2005, respectively, and $8,587 and $6,693 for the year ended December 31, 2006 and 2005, respectively, reflecting the distributions associated with these units.

[TABLE OMITTED]

Reclassifications:

Certain amounts in the prior period have been reclassified in order to conform with the current period's presentation.

[TABLE OMITTED]

Projections involve numerous assumptions such as rental income (including assumptions on percentage rent), interest rates, tenant defaults, occupancy rates, foreign currency exchange rates (such as the US-Canadian rate), selling prices of properties held for disposition, expenses (including salaries and employee costs), insurance costs and numerous other factors. Not all of these factors are determinable at this time and actual results may vary from the projected results, and may be above or below the range indicated. The above range represents management's estimate of results based upon these assumptions as of the date of this press release.