Kimco Realty Corp. KIM, -1.96% said Friday that it sold off more than a quarter of its stake in Alberstons Companies Inc. ACI, -8.45%, after Albertsons announced the deal to be acquired by Kroger Co. KR, -7.32% in a deal valued at $24.6 billion. Kimco said it sold 11.5 million Albertsons shares to generate proceeds of about $301.1 million, which implies a sale price of roughly $26.18. Albertsons’ stock fell 7.6% in afternoon trading, while Kimco shares shed 1.1%. The real estate investment trust, which owns open-air, grocery-anchored shopping centers, said it still owned 28.3 million shares of Albertsons, or about 5.3% of the shares outstanding, which is enough to make Kimco the fifth largest shareholder. “The proposed merger of Kroger and Albertsons implies a significant increase in the value of our stake and is further validation of our long term and profitable investment in Albertsons,” said Kimco Chief Executive Conor Flynn. “Our sale of a portion of our investment is consistent with our stated goal to monetize our stake at the right time, and also provides a meaningful source of capital at a time when capital is at a premium for the industry.” Kimco’s stock has slipped 1.8% over the past three months, while the SPDR Real Estate Select Sector ETF XLRE, -2.51% has dropped 15.8% and the S&P 500 SPX, -2.37% has lost 4.9%.
