10-Q 1 b406750_10q.txt FORM 10Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2005 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ___________ TO __________ COMMISSION FILE NUMBER: 000-23463 PHILIPS INTERNATIONAL REALTY CORP. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) MARYLAND 13-3963667 (STATE OR OTHER JURISDICTION OF (IRS EMPLOYER INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.) 295 MADISON AVENUE, 2ND FLOOR, NEW YORK, NY 10017 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES - ZIP CODE) (212) 545-1100 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES |X| NO |_| Indicateby check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act) YES |_| NO |X| Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date: 7,340,474 shares outstanding as of April 30, 2005. PHILIPS INTERNATIONAL REALTY CORP. FORM 10-Q INDEX

2 PART I FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Philips International Realty Corp. (In Process of Liquidation) Consolidated Statements of Net Assets in Liquidation (Unaudited)

SEE ACCOMPANYING NOTES. 3 Philips International Realty Corp. (In Process of Liquidation) Consolidated Statements of Changes in Net Assets in Liquidation (Unaudited)

SEE ACCOMPANYING NOTES. 4 Philips International Realty Corp. (In process of Liquidation) Notes to the Consolidated Financial Statements 1. BUSINESS -------- Philips International Realty Corp. (the "Company") is a real estate investment trust ("REIT") originally formed to continue and expand the shopping center business of certain affiliated companies owned or controlled by Philip Pilevsky (the "Philips Group"). The Philips Group had been engaged for many years in the ownership, development and acquisition for redevelopment of neighborhood and community shopping centers predominantly concentrated in the greater New York and Miami metropolitan areas. On October 13, 1999, the Board of Directors of the Company announced that it had retained a financial advisor to assist the Company in examining strategic alternatives to maximize shareholder value. The Board of Directors believed that the Company's then current stock price did not reflect the underlying value of its assets. Given the changing dynamics of the REIT market place and consistent with its commitment to realize shareholder value for all investors, the Board believed that it was prudent to explore the strategic alternatives for the Company. At a Special Meeting of Stockholders held on October 10, 2000, approximately 80% of the Company's 7,340,474 common shares outstanding were voted, with 99.7% of these votes cast, in favor of a plan of liquidation. The plan of liquidation approved by stockholders generally provided for (i) the disposition of the Company's real estate properties for cash, the assumption of indebtedness and/or the redemption of certain equity interests in the Company, (ii) payment or provision for the Company's liabilities, (iii) distribution of the net cash proceeds, then estimated at $18.25 per share of common stock, to stockholders in two or more liquidating distributions, and (iv) the wind-up of operations and dissolution of the Company. The Company completed the disposition of the last of its real estate properties on December 12, 2003, and has distributed to date $18.10 per share in cash to its stockholders. This has been achieved through a series of ten property sales and/or redemption transactions, and ten liquidating distributions as more fully described in Note 2 below. The Company filed a Current Report on Form 8-K, dated January 7, 2004, to report that notwithstanding (i) the weak economic environment since adoption of the Plan of Liquidation in October 2000 had depressed retail rents and real property values, and (ii) the Company had to contend with the Kmart Chapter 11 bankruptcy proceedings in seeking to divest many of its shopping center properties in which this troubled retailer was the anchor tenant, the Company expected total distributions to shareholders would be within 1% of the originally projected total $18.25 per share. On December 17, 2004, the Company announced that the amount and timing of any future distributions to shareholders, which in the aggregate are unlikely to exceed $0.05 per share, remain subject to (i) the Company's realization of certain claims for refund of real estate and transfer taxes paid, and (ii) the costs incurred to complete all wind-down activities and dissolve the corporation. Assuming the prompt receipt of these refunds, the Board of Directors anticipates that it may commence the winding-down and dissolution of the corporation and a final liquidating distribution within the next several months. 5 2. PLAN OF LIQUIDATION ------------------- The following is a chronology of the events, which have transpired to date pursuant to the plan of liquidation approved by stockholders on October 10, 2000. In November 2000, the Company completed the distribution of its interest in four shopping center properties in Hialeah, Florida and the sale of its interest in one redevelopment site (1517-25 Third Avenue, New York City) for total consideration of approximately $123 million to former unit holders in the Operating Partnership, including Philip Pilevsky, the Company's Chairman and Chief Executive Officer, (collectively, the "Related Limited Partners") ("The Hialeah Agreements"). The total consideration was comprised of $3.3 million in cash, $85.3 million in mortgage debt assumption and $34.1 million in redemption of the Related Limited Partners' entire equity interest in the Operating Partnership (1,870,873 Units valued at $18.25 per Unit). These transactions resulted in a gain of approximately $24.4 million, net of $9.3 million of minority interest. On December 4, 2000, certain affiliates of the Company disposed of interests in eight properties aggregating approximately 1,178,000 square feet to Kimco Income Operating Partnership, L.P. ("Kimco") for a total consideration of $137 million pursuant to an Asset Contribution, Purchase and Sale Agreement dated as of April 28, 2000. The purchase price was comprised of approximately $71.1 million in cash, $55.4 million in mortgage debt assumption and $10.5 million of equity redemption (576,326 Operating Partnership Units valued at $18.25 per Unit). The properties included four New York shopping centers (Forest Avenue Shoppers Town, Meadowbrook Commons, Merrick Commons and Mill Basin Plaza), two Connecticut shopping centers (Branhaven Plaza and Elm Plaza), one shopping center property in New Jersey (Millside Plaza) and one shopping center property in Massachusetts (Foxboro Plaza). The disposition of these properties resulted in a gain of approximately $17.4 million net of $6.6 million in minority interest. On June 14, 2001, the Company completed the sale of its redevelopment site located in Lake Worth, Florida (the "Lake Worth Property") to the Related Limited Partners, for approximately $7.6 million in cash, pursuant to an Amended and Restated Purchase and Sale Agreement dated as of June 20, 2000 (the "Lake Worth Agreement"). The sale of this property resulted in a gain of approximately $.3 million. The purchase price paid by the Related Limited Partners under the Lake Worth Agreement will be adjusted, up or down, so that the aggregate value per Unit received by them in connection with the distribution to the Related Limited Partners of the Company's four shopping center properties located in Hialeah, Florida and the sale to the Related Limited Partners in December 2000 of the Company's redevelopment property located on Third Avenue in New York, New York ($18.25 per share), and the total per share value received by the Company's stockholders in the liquidation, will be the same. The Related Limited Partners have paid $243,000 to the Company to date in respect of this purchase price adjustment obligation. On August 31, 2001, the Company completed the sale of its North Star Shopping Center in Alexandria, Minnesota for approximately $4.5 million pursuant to the Sale and Purchase Agreement dated July 16, 2001 by Philips Shopping Center Fund L.P., a Delaware limited partnership, as Seller, and Repco LLP, as successor to Kordel, Inc., a Minnesota corporation, as Buyer. The sale resulted in a gain of approximately $4,000. On October 31, 2001, the Company completed the sale of its Highway 101 Shopping Center in Port Angeles, Washington for approximately $4.5 million in cash, pursuant to the Sale and Purchase Agreement dated June 14, 2001 by Philips Shopping Center Fund L.P., a Delaware limited partnership, as Seller, and BDG LLC, as successor to 3 Puyallup Associates, LLC, a Washington limited liability company, as Buyer. This sale resulted in a gain of approximately $39,000. 6 On January 29, 2002, the Company announced that Kmart Corporation's ("Kmart") Chapter 11 bankruptcy filing was likely to delay the sales of the Company's then five remaining properties pursuant to the Company's plan of liquidation, and might result in a reduction of the remaining projected liquidating distributions of $3.00 per common share. Further, the Company reported that Kmart leased a significant portion of the space in each of the Company's then five remaining shopping center properties, of which four stores were currently operating and one Kmart store in Reedley, California was closed. While operating in bankruptcy, Kmart announced that it would seek immediate cancellation of leases at closed locations. As a result of the uncertainty pertaining to the ultimate status of the Kmart leases, the Company expected a delay in the completion of its plan of liquidation. Also, the potential impact on the proceeds from sales of the then remaining five properties could not then be evaluated. On February 19, 2002, the Company announced that the New York Stock Exchange (the "NYSE") had advised the Company that it may be subject to NYSE trading suspension and delisting if the Company's average market capitalization fell below $15 million ($2.05 per common share) over a 30-day trading period. On March 13, 2002, the Company announced that its four properties with operating Kmart stores (Sacramento, CA, Atwater, CA, McHenry, IL and Hopkinsville, KY) were not affected by Kmart's recent announcement of store closings. Kmart had been operating under the protection of Chapter 11 of the Bankruptcy Code, and the Court approved the cancellation of the Kmart lease at the Company's then fifth remaining property, located in Reedley, California, in January. Although none of the Company's remaining Kmart stores was targeted for closure at such time, there could be no assurance that Kmart would not seek to cancel additional leases while it was in bankruptcy. Further, the Company objected to Kmart's request for an extension of the 60-day period in which the debtor must assume or reject the Company's leases under the Bankruptcy Code. Kmart was seeking an extension on all remaining leases through July 2003, and the Courts generally grant such significant extensions. As to the Company's Kmart leases, the Court approved an agreement with Kmart whereby all leases which had not been assumed or rejected on or before September 30, 2002 would be subject to certain protections from October 1, 2002 through January 15, 2003, which, among other things, precluded store closings during this period. In addition, the Court set March 31, 2003 as the deadline for Kmart to assume or reject the Company's leases without prejudice to Kmart's right to seek further extension. On April 16, 2002, the Company completed the sale of its McHenry Commons shopping center property in McHenry, Illinois for approximately $3.9 million in cash, pursuant to a Sale and Purchase Agreement dated November 29, 2001 by and between Philips Shopping Center Fund, L.P., a Delaware limited partnership, as Seller, and GK Development, Inc., an Illinois corporation, and Star Realty Investors, LLC, an Illinois limited liability company, jointly and severally as Purchaser. This sale resulted in a gain of approximately $102,000. On October 3, 2002, the Company completed the sale of its Kmart Shopping Center in Sacramento, California for approximately $5.9 million in cash, pursuant to a Purchase and Sale Agreement dated September 24, 2002 by and between Philips Shopping Center Fund, L.P., a Delaware limited partnership, as Seller, and M&A Gabaee L.P., a California limited partnership, Mirasa L.L.C., a California limited liability company, and Corsair L.L.C., a Nevada limited liability company, jointly and severally as Buyer. This transaction resulted in a gain of approximately $118,000. On October 8, 2002, the Company announced that it expected the New York Stock Exchange would commence action to suspend trading and apply to delist the Company's shares of common stock on the NYSE concurrent with payment of the fifth liquidating distribution scheduled to be paid on October 22, 2002. If the Company's shares ceased to be traded on the NYSE, the Company indicated it believed that an alternative trading venue may be available; however, there could be no assurance that such an alternative market would develop. If the Company was delisted from the NYSE, the Company further noted that it had no current intention to seek listing of its common shares on any other securities exchange or on NASDAQ. 7 On October 28, 2002, the Company reported that the NYSE had delivered notice to the Company and issued a press release to advise that it had determined the common stock of the Company, trading symbol PHR, should be removed from the list of companies traded on the NYSE. This decision was reached in view of the fact that the Company had fallen below the NYSE's continued listing standards, as its average global market capitalization over a consecutive 30-day period was less than $15,000,000. Furthermore, the NYSE noted that the Company has been operating pursuant to a plan of liquidation approved by its shareholders on October 10, 2000 and has made four liquidating distributions totaling $15.25 as of such date, with a fifth liquidating distribution of $0.50 to be paid on October 22, 2002. The NYSE indicated it intended to (and did, in fact) suspend trading in the Company's common stock prior to the opening on October 23, 2002 in connection with this distribution. Action by the NYSE with the Securities and Exchange Commission delisting the Company's shares followed the completion of applicable procedures. The Company did not request a review of this NYSE determination. Upon completion of all prescribed delisting procedures, the Company automatically became a Section 12(g) reporting company, pursuant to the Securities and Exchange Act, and was no longer a Section 12(b) reporting company. On January 24, 2003, Kmart filed a plan of reorganization and related disclosure statement with the bankruptcy court. Confirmation hearings were scheduled for April 14 and 15, 2003. Assuming the court approved the disclosure statement and the plan was confirmed, Kmart's filings indicated it would emerge from Chapter 11 on or about April 30, 2003. In connection therewith, Kmart filed a motion dated February 5, 2003 with the court seeking to extend the deadline by which it must assume or reject certain "go-forward" leases of real property from March 31, 2003 to the effective date of a plan reorganization, but no later than May 31, 2003. The Company did not object to this motion as it pertained to its leases with Kmart at its Atwater, California and Hopkinsville, Kentucky shopping centers. On February 28, 2003, the Company completed the sale of its shopping center property in Reedley, California for approximately $2.6 million in cash, pursuant to a Purchase and Sale Agreement dated January 29, 2003 by and between Philips Shopping Center Fund, L.P., a Delaware limited partnership, as Seller, and D&L Lowe L.P., a California limited partnership, as Buyer. This transaction resulted in a gain of approximately $133,000. On April 22, 2003, Kmart announced that the bankruptcy court had approved its plan of reorganization. Kmart subsequently emerged from Chapter 11 on May 6, 2003. The Company's leases with Kmart at its Atwater, California and Hopkinsville, Kentucky shopping centers were assumed in connection with this restructuring. On August 26, 2003, the Company completed the sale of its shopping center on Bellevue Road in Atwater, California for the price of $6.0 million in cash, pursuant to a Purchase and Sale Agreement dated June 23, 2003 by and between Philips Shopping Center Fund, L.P., a Delaware limited partnership, as Seller, and Nationwide Properties, LLC, a California limited liability company, as Buyer. This transaction resulted in a gain of approximately $549,000. On December 12, 2003, the Company completed the sale of its shopping center on Fort Campbell Boulevard in Hopkinsville, Kentucky for the price of $2.875 million in cash, pursuant to a Purchase and Sale Agreement dated December 4, 2003 by and between Philips Shopping Center Fund, L.P., a Delaware limited partnership, as Seller, and Kmart Express LLC, a Michigan limited liability company, as Buyer. This transaction resulted in a loss of approximately $44,000. With the completion of such sale, the Company ceased all active business operations and now exists solely to complete its liquidation. 8 The Board of Directors of the Company authorized liquidating distributions generally following each of the foregoing asset dispositions as follows: PER SHARE DATE PAID AMOUNT December 22, 2000 $13.00 July 9, 2001 1.00 September 24, 2001 0.75 November 19, 2001 0.50 October 22, 2002 0.50 March 18, 2003 0.50 September 16, 2003 1.00 January 6, 2004 .50 August 27, 2004 .25 December 30, 2004 .10 ------ $18.10 ====== The Board of Directors of the Company is currently seeking to recover certain real estate and transfer tax refunds totaling (as of December 31, 2004) $175,000 due from two governmental agencies. Upon collection of these tax refunds, the Board of Directors currently intends to declare a final liquidating distribution and then will act to dissolve the corporation. The Company collected $150,000 in transfer tax refunds in May 2005. 3. SIGNIFICANT ACCOUNTING POLICIES ------------------------------- BASIS OF PRESENTATION: The Company adopted the liquidation basis of accounting as of December 31, 2003. The liquidation basis of accounting is appropriate when liquidation appears imminent, a company can no longer be classified as a going concern, and the net realizable values of a company's assets are reasonably determinable. Under this method of accounting, assets and liabilities are stated at their estimated realizable value (on an undiscounted basis) and estimated costs of liquidating the Company are provided to the extent reasonably determinable. In adopting the liquidation basis of accounting, the Company has accrued what it believes are reasonable estimates of costs to liquidate its assets. The actual costs to liquidate the Company may differ significantly depending on a number of factors, including the length of time it takes to realize its remaining assets. Estimated costs to liquidate the Company are reflected in the Consolidated Statements of Net Assets in Liquidation as "Accrual for liquidation expenses." It is not presently determinable whether, upon completion of the liquidation, the net assets available for distribution to shareholders will differ materially from the amount shown in the accompanying financial statements as "Net Assets in Liquidation." INTERIM FINANCIAL STATEMENTS: The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All significant intercompany accounts and balances have been eliminated in consolidation. The information furnished is unaudited and reflects all adjustments, which are, in the opinion of management, necessary to reflect a fair presentation of the results for the interim periods presented, and all such adjustments are of a normal recurring nature. These consolidated financial statements should be read in conjunction with the financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2004. 9 USE OF ESTIMATES: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. MINORITY INTERESTS: The Company historically conducted substantially all of its business and held its real estate interests through Philips International Realty, L.P., a Delaware limited partnership (the "Operating Partnership"). This Operating Partnership was owned 74.8% by the Company, as General Partner, and 25.2% by unit holders, as limited partners. The minority interests of these limited partners were substantially eliminated in conjunction with the disposition of properties pursuant to the plan of liquidation. (See Note 2.) 4. OTHER ASSETS ------------ Other assets in the Consolidated Statement of Net Assets in Liquidation as of March 31, 2005 and December 31, 2004 were comprised of certain real estate and transfer tax refunds due from two governmental agencies. The Company collected $150,000 in transfer tax refunds in May 2005. 5. COMMITMENTS AND CONTINGENCIES ----------------------------- LEGAL PROCEEDINGS: The Company has historically been subject to various legal proceedings and claims that arose in the ordinary course of business. These matters are generally covered by insurance. Management believes that the final outcome of such matters will not have a material adverse effect on the financial position or liquidity of the Company. 6. CONTRACT RIGHTS AGREEMENTS -------------------------- The Company had maintained a stock option plan pursuant to which a maximum 852,550 shares of the Company's Common Stock could be issued for qualified and non-qualified options. Options granted under the Plan generally vested ratably over a three-year term, expired ten years from the date of grant and were exercisable at the market price on the date of grant, unless otherwise determined by the Board of Directors in its sole discretion. In conjunction with the Company's adoption of the plan of liquidation and the disposal of substantially all of its shopping center properties, all options outstanding at December 31, 2000 (705,500 shares at a weighted average exercise price per share of $17.43) became fully vested and replaced one-for-one by a contractual right (a "Contract Right") to receive a cash distribution on the same basis and at the same time as liquidating distributions are made to shareholders. The total amount to be paid on each Contract Right will equal the total per share proceeds distributed to shareholders less the original stock option exercise price. Contract Rights are retained after termination of employment. The Company believes it has adequately accrued for amounts, which may become due and payable pursuant to such Contract Rights. 10 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with the accompanying consolidated financial statements and notes thereto, and the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2004. These financial statements include all adjustments, which are, in the opinion of management, necessary to reflect a fair presentation of the results for the interim periods presented. When used in this Quarterly Report on Form 10-Q, the words "may", "will", "expect", "anticipate", "continue", "estimate", "project", "intend" and similar expressions are intended to identify forward-looking statements regarding events, conditions and financial trends that may affect the Company's future plans of operations, business strategy, results of operations and financial position. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially from those included within the forward-looking statements as a result of various factors. RESULTS OF OPERATIONS: The Company adopted the liquidation basis of accounting as of December 31, 2003. The accompanying interim Consolidated Statements of Changes in Net Assets in liquidation for the three month periods ended March 31, 2005 and 2004 do not reflect any significant adjustments in net asets during the respective periods. LIQUIDITY AND CAPITAL RESOURCES: The Company expects to invest temporarily available cash in short-term, investment-grade interest bearing securities, such as securities of the United States government or its agencies, high-grade commercial paper and bank deposits. The Company believes that its net cash reserves will be sufficient to (i) make distributions necessary to enable the Company to continue to qualify as a REIT, and (ii) to fund the wind-down of operations and dissolution of the Company. There can be no assurances, however, whether the total distributions to stockholders will differ materially from the amount shown in the accompanying Consolidated Statements of Net Assets in Liquidation. OFF-BALANCE SHEET ARRANGEMENTS: The Company has no off-balance sheet arrangements. CONTRACTUAL OBLIGATIONS: None. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK None. ITEM 4. CONTROLS AND PROCEDURES DISCLOSURE CONTROLS AND PROCEDURES. The Company's management, with the participation of the Company's chief executive officer/principal financial officer, has evaluated the effectiveness of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 Act, as amended (the "Exchange Act")) as of the end of the period covered by this report. Based on such evaluation, the Company's chief executive officer/principal financial 11 officer has concluded that, as of the end of such period, the Company's disclosure controls and procedures are effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act. INTERNAL CONTROL OVER FINANCIAL REPORTING. There have not been any changes in the Company's internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS ----------------- The Company has historically been subject to various legal proceedings and claims that arose in the ordinary course of business. These matters are generally covered by insurance. Management believes that the final outcome of such matters will not have a material adverse effect on the financial position or liquidity of the Company. ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS None. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None. ITEM 5. OTHER INFORMATION None. ITEM 6. EXHIBITS The exhibits required by this item are set forth on the Exhibit Index attached hereto. 12 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Philips International Realty Corp. Date: May 16, 2005 By: /s/ Philip Pilevsky ---------------------------------------- Philip Pilevsky Chairman of the Board and Chief Executive Officer 13 EXHIBIT INDEX EXHIBIT NUMBER EXHIBIT TITLE 2.1 Plan of Liquidation and Dissolution of the Company (filed as Exhibit 2.1 to the Company's Current Report on Form 8-K dated April 28, 2000, and incorporated herein by reference). 3.1 Amended and Restated Articles of Incorporation of the Company (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K dated December 31,1997, and incorporated herein by reference). 3.2 Articles Supplementary of Series A Preferred Stock (filed as Exhibit 3.2 to the Company's Form 8-K dated December 31, 1997 and incorporated herein by reference). 3.3 Articles Supplementary dated July 27, 1999, (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K dated July 15, 1999, and incorporated herein by reference). 3.4 Third Amended and Restated By-Laws of the Company dated July 27, 1999, (filed as Exhibit 3.2 to the Company's Current Report on Form 8-K dated July 15, 1999, and incorporated herein by reference). 3.5 Form of Certificate of Common Stock (filed as Exhibit 3.4 to the Company's Registration Statement on Form S-11, Registration No. 333-47975, and incorporated herein by reference). 4.1 Shareholder Rights Agreement, dated as of March 31, 1999, between the Company and Bank Boston, N.A. (filed as Exhibit 4.1 to the Company's Quarterly Report on Form 10-Q for the year ended December 31, 1998, and incorporated herein by reference). 4.2 Amendment No. 1 dated July 27, 1999, to Shareholder Rights Agreement dated as of March 31, 1999 between the Company and Bank Boston N.A., as Rights Agent (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K dated July 15, 1999, and incorporated herein by reference). 4.3 Articles Supplementary for Series A Junior Participating Preferred Stock (filed as Exhibit 4.2 to the Company's Quarterly Report on Form 10-Q for the year ended December 31, 1998, and incorporated herein by reference). 10.1 Amended and Restated Agreement of Limited Partnership of the Operating Partnership (filed as Exhibit 10.1 to the Company's Registration Statement on Form S-11, Registration No. 333- 47975, and incorporated herein by reference). 10.2 First Amendment to the Amended and Restated Agreement of Limited Partnership of the Operating Partnership (filed as Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the year ended December 31, 1998, and incorporated herein by reference). 10.3 Form of 1997 Stock Option and Long-Term Incentive Plan of the Company (filed as Exhibit 10.2 to the Company's Registration Statement on Form S-4, Registration No. 333-41431, and incorporated herein by reference). 14 10.4 Contribution and Exchange Agreement, dated August 11, 1997, among National Properties Investment Trust, the Board of Trustees, the Company, the Operating Partnership and certain contributing partnerships or limited liability companies associated with a private real estate firm controlled by Philip Pilevsky and certain partners and members thereof (filed as Exhibit 10.6 to the Company's Registration Statement on Form S-4, Registration No. 333-41431, and incorporated herein by reference). 10.5 Amended and Restated Management Agreement, dated as of March 30, 1998, among the Company, the Operating Partnership and Philips International Management Corp. (Filed as Exhibit 10-8 to the Company's Form 10-Q for the year ended December 31, 1997, and incorporated herein by reference). 10.6 Amended and Restated Non-Competition Agreement, dated as of March 30, 1998, among the Company, the Operating Partnership, Philip Pilevsky and Sheila Levine (filed as Exhibit 10.9 to the Company's Form 10-Q for the year ended December 31, 1997, and incorporated herein by reference). 10.7 Amendment No. 1 to Contribution and Exchange Agreement, dated as of December 29, 1997 (filed as Exhibit 10.13 to the Company's Form 8-K dated December 31, 1997, and incorporated herein by reference). 10.8 Employment Agreement between the Company and Louis J. Petra (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K dated December 31, 1997 and incorporated herein by reference). 10.9 Employment Agreement between the Company and Sheila Levine (filed as Exhibit 10.2 to the Company's Current Report on Form 8-K dated December 31, 1997 and incorporated herein by reference). 10.10 Employment Agreement between the Company and Carl Kraus (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K dated July 15, 1999 and Incorporated herein by reference). 10.11 Credit Agreement among the Operating Partnership and Prudential Securities Credit Corporation (filed as Exhibit 10.18 to the Company's Report on Form 10-Q for the period ended March 31, 1998 and incorporated herein by reference). 10.12 Purchase and Sale Agreement dated as of April 28, 2000, by and among Munsey Park Associates, LLC, a New York limited liability company, North Shore Triangle, LLC, a New York limited liability company, Philips Yonkers, LLC, a New York limited liability company, Philips Henry, LLC, a New York limited liability company, Philips Shopping Center Fund, L.P., a Delaware limited partnership, and Philips Lake Mary Associates, L.P., a Delaware limited partnership, and Kimco Income Operating Partnership, L.P., a Delaware limited partnership (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K dated April 28, 2000, and incorporated herein by reference). 10.13 Redemption Agreement dated as of April 27, 2000, by and among the Operating Partnership and Philip Pilevsky (filed as Exhibit 10.2 to the Company's Current Report on Form 8-K dated April 28, 2000, and incorporated herein by reference). 10.14 Asset Contribution, Purchase and Sale Agreement dated as of April 28, 2000, by and among the Company, the Operating Partnership, Certain Affiliated Parties signatory thereto, KIR Acquisition, LLC, a Delaware limited liability company and Kimco Income Operating Partnership, L.P., a Delaware limited partnership (filed as Exhibit 10.3 to the Company's Current Report on Form 8-K dated April 28, 2000, and incorporated herein by reference). 15 10.15 Amended and Restated Redemption Agreement dated as of April 27, 2000, by and among Philips International Realty, L.P., a Delaware limited partnership, and Philip Pilevsky (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K dated April 28, 2000, and incorporated herein by reference). 10.16 Redemption Agreement dated as of April 28, 2000, by and among Philips International Realty, L.P., a Delaware limited partnership, and Allen Pilevsky (filed as Exhibit 10.2 to the Company's Current Report on Form 8-K dated April 28, 2000, and incorporated herein by reference). 10.17 Redemption Agreement dated as of April 28, 2000, by and among Philips International Realty, L.P., a Delaware limited partnership, and Fred Pilevsky (filed as Exhibit 10.3 to the Company's Current Report on Form 8-K dated April 28, 2000, and incorporated herein by reference). 10.18 Redemption Agreement dated as of April 28, 2000, by and among Philips International Realty, L.P., a Delaware limited partnership, and SL Florida LLC, a Delaware limited liability company (filed as Exhibit 10.4 to the Company's Current Report on Form 8-K dated April 28, 2000, and incorporated herein by reference). 10.19 First Amendment to Asset Contribution, Purchase and Sale Agreement dated as of May 31, 2000, by and among Philips International Realty, L.P., a Delaware limited partnership, the Company, certain Affiliated Parties signatory thereto, KIR Acquisition, LLC, a Delaware limited liability company, and Kimco Income Operating Partnership, L.P., a Delaware limited partnership (filed as Exhibit 10.5 to the Company's Current Report on Form 8-K dated April 28, 2000, and incorporated herein by reference). 10.20 Second Amendment to Asset Contribution, Purchase and Sale Agreement dated as of June 15, 2000, by and among Philips International Realty, L.P., a Delaware limited partnership, the Company, certain Affiliated Parties signatory thereto, KIR Acquisition, LLC, a Delaware limited liability company, and Kimco Income Operating Partnership, L.P., a Delaware limited partnership (filed as Exhibit 10.6 to the Company's Current Report on Form 8-K dated April 28, 2000, and incorporated herein by reference). 10.21 Third Amendment to Asset Contribution, Purchase and Sale Agreement dated as of June 20, 2000, by and among Philips International Realty, L.P., a Delaware limited partnership, the Company, certain Affiliated Parties signatory thereto, KIR Acquisition, LLC, a Delaware limited liability company, and Kimco Income Operating Partnership, L.P., a Delaware limited partnership (filed as Exhibit 10.7 to the Company's Current Report on Form 8-K dated April 28, 2000, and incorporated herein by reference). 10.22 Amended and Restated Purchase and Sale Agreement dated as of June 20, 2000, by 1517-25 Third, L.P., a New York limited partnership, Philip Pilevsky, SL Florida LLC, a Delaware limited liability company, Allen Pilevsky and Fred Pilevsky (filed as Exhibit 10.8 to the Company's Current Report on Form 8-K dated April 28, 2000, and incorporated herein by reference). 10.23 Amended and Restated Purchase and Sale Agreement dated as of June 20, 2000, by Philips International Realty, L.P., a Delaware limited partnership, Philips Lake Worth Corp., a New York corporation, and Philip Pilevsky (filed as Exhibit 10.9 to the Company's Current Report on Form 8-K dated April 28, 2000, and incorporated herein by reference). 16 10.24 Amendment to Amended and Restated Purchase and Sale Agreement dated as of April 4, 2001, by and between the Company, Philips Lake Worth Corp., a New York corporation, and Philip Pilevsky filed as Exhibit 10.24 to the Company's Annual Report on Form 10-K for the year ended December 31, 2000, and incorporated herein by reference). 10.25 Stipulation and Order Providing For Voluntary Dismissal dated July 22, 2004 in the matter of the Zemel Family Trust on behalf of itself, and a class of persons similarly situated against the Company and its directors (filed as Exhibit 10.25 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2004, and incorporated herein by reference). 16.1 Letter from Ernst & Young LLP to the Company dated July 20, 2004 (filed as Exhibit 16.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2004 and incorporated herein by reference). 31.1* Certification of the Company's Chief Executive Officer and principal financial officer, Philip Pilevsky, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32.1* Certification of the Company's Chief Executive Officer and principal financial officer, Philip Pilevsky, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *FILED HEREWITH 17

PHILIPS INTERNATIONAL REALTY CORP 10-Q