Commercial, Energy Efficiency, GHG Emissions, Commercial, Finance, Sourcing Renewables  -  August 21, 2023

Kimco Realty’s Green Bond Finances Renewable Projects

Kimco Realty, an owner and operator of open-air, grocery-anchored shopping centers and a growing portfolio of mixed-use assets, announced that out of the $493.7 million in net proceeds from its inaugural green bond issuance, $373.8 million, or over 75%, was allocated to finance eligible green projects.

According to the company’s Green Bond Framework, the eligible green projects include renewable energy projects, defined as the development, construction, installation, operation, maintenance and/or acquisition of renewable energy projects including solar, wind and energy storage, according to a statement. 

Kimco used green bond proceeds for the acquisition of a 988.8 kW Solar Renewable Energy Project at Carmans Plaza in Massapequa, New York. This system is estimated to produce approximately 1.2 gigawatt hours of renewable energy annually, with an estimated annual GHG emissions savings of 678 metric tons of carbon dioxide equivalent (MTCO2e).

The projects also include green buildings, defined in part as the new development, maintenance, operation and acquisition of buildings that have received LEED Silver certifications or the acquisition of buildings with tenant spaces that have previously received an ENERGY STAR rating of 75 or higher. 

Kimco also used the green bond proceeds to fund and/or acquire LEED Silver certified projects, including The Witmer® residential tower at Pentagon Centre in Arlington, Virginia; the Array residential building at West Alex in Alexandria, Virginia; and an office building also at West Alex. Green bond proceeds were also allocated toward the acquisition of 12 ENERGY STAR Certified tenant spaces.

The bond was also used to finance energy efficiency projects at 129 properties and sustainable water and wastewater management projects at 46 properties, including the installation of a stormwater management system for flood protection and mitigation. The energy efficiency projects resulted in an estimated total GHG savings of 7,500 MTCO2e (based on estimated emissions associated with usage one year after project completion compared to one year prior), and sustainable water and wastewater management projects resulted in an estimated average water efficiency gain of more than 35%. A stormwater management system for flood protection and mitigation at Dania Pointe in Dania Beach, Florida, exceeded requirements for the LEED Rainwater Management Standard and is designed to withstand a 100-year, 72-hour storm event.

Details were announced in the publication of Kimco's third Green Bond Report, outlining the use of the net proceeds and the associated estimated environmental impact of the company’s inaugural green bond issued in July of 2020.