Operating Property Activities

Acquisitions

and Dispositions

–

During

January 2018,

the Company acquired a land parcel adjacent to an existing shopping center located in Ardmore, PA for a purchase price of

$3.4

million.

The table below summarizes the Company’s disposition activity relating to consolidated operating properties and parcels (dollars in millions):

	Six Months Ended June 30 ,
	2018		2017
Aggregate sales price	$	833.1	$	157.3
Gain on sale of operating properties/change in control of interests	$	152.2	$	21.6
Impairment charges	$	9.9	$	2.4
Number of operating properties sold/deconsolidated		35		11
Number of out-parcels sold		2		5

Included in the table above, during the

six

months ended

June 30, 2018,

the Company sold a portion of its investment in a consolidated operating property to its partner based on a gross fair value of

$320.0

million, including

$206.0

million of non-recourse mortgage debt, and amended the partnership agreement to provide for joint control of the entity. As a result of the amendment, the Company

longer consolidates the entity and as such, reduced noncontrolling interests by

$43.8

million and recognized a gain on change in control of

$6.8

million, in accordance with the adoption of ASU

2017

effective as of

January 1, 2018 (

See Footnote

to the Notes to the Company’s Condensed Consolidated Financial Statements for additional discussion). The Company now has an investment in this unconsolidated property (

$62.4

million as of the date of deconsolidation), included in Investments in and advances to real estate joint ventures on the Company’s Condensed Consolidated Balance Sheets. The Company’s share of this investment is subject to change and is based upon a cash flow waterfall provision within the partnership agreement (

54.8%

as of the date of deconsolidation).

During the

six

months ended

June 30, 2018,

the Company disposed of

five

land parcels, in separate transactions, for an aggregate sales price of

$4.7

million, which resulted in an aggregate gain of

$2.1

million, included in Other income, net on the Company’s Condensed Consolidated Statements of Income.

Held-for-Sale

June 30, 2018,

the Company had

three

consolidated properties classified as held-for-sale at an aggregate carrying amount of

$10.2

million (including accumulated depreciation of

$4.8

million), which are included in Other assets on the Company’s Condensed Consolidated Balance Sheets. The Company’s determination of the fair value of the properties was based upon executed contracts of sale with

third

parties. The book value of

one

of these properties exceeded its estimated fair value, less costs to sell, and as such an impairment charge of

$0.3

million was recognized. Additionally, the Company reclassified

$3.1

million in mortgage debt related to

one

of these properties to Other liabilities on the Company’s Condensed Consolidated Balance Sheets.

Impairments

–

During the

six

months ended

June 30, 2018,

the Company recognized aggregate impairment charges of

$30.5

million. These impairment charges consist of (i)

$20.6

million related to adjustments to property carrying values for properties which the Company has marketed for sale as part of its active capital recycling program and as such has adjusted the anticipated hold period for such properties and (ii)

$9.9

million related to the sale of certain operating properties, as discussed above. The Company’s estimated fair values of these properties were primarily based upon estimated sales prices from (i) signed contracts or letters of intent from

third

party offers or (ii) discounted cash flow models. See Footnote

to the Notes to the Company’s Condensed Consolidated Financial Statements for fair value disclosure.