Kimco Realty Corp. (KIM) says for now it will avoid using equity markets as a capital-raising tool.

"I'm not going to look to the equity market to bail us out. I don't think our investors are going to keep buying into massively dilutive equity issuances solely to pay down debt," said Michael Pappagallo, the shopping center operator's chief financial officer during the company's second-quarter earnings call Thursday.

"Down the road, there will be circumstances where value-creating shopping center opportunities will be available. Issuing equity at that point would make sense if our price and" returns supported such a transaction, he said.

The real-estate investment trust issued $750 million shares during the second quarter, according to RBC Capital Markets.

REITs had been hammered amid concerns about the financial services industry as well as the commercial real estate malaise, as a continuing credit crunch made it difficult to refinance coming debt maturities. Since March, the industry's saving grace has been massive amounts of equity issuance allowing REITs more flexibility to reduce debt. REITs executed over 50 common stock offerings during the first half of the year, raising roughly $15 billion in capital, according to the National Association of Real Estate Investment Trusts.

-By A.D. Pruitt, Dow Jones Newswires, 212-416-2197,angela.pruitt@dowjones.com