Investments

and Advances

Real Estate Joint Ventures

The Company has investments in and advances to various real estate joint ventures. These joint ventures are engaged primarily in the operation of shopping centers which are either owned or held under long-term operating leases. The Company and the joint venture partners have joint approval rights for major decisions, including those regarding property operations. As such, the Company holds noncontrolling interests in these joint ventures and accounts for them under the equity method of accounting.

The table below presents joint venture investments for which the Company held an ownership interest at

June 30, 2018

and

December 31, 2017 (

in millions, except number of properties):

	Ownership		The Company's Investment
Joint Venture	Interest		June 30, 2018		December 31, 2017
Prudential Investment Program (“KimPru” and “KimPru II”) (1) (2) (3)		15.0%	$	183.9	$	179.5
Kimco Income Opportunity Portfolio (“KIR”) (2)		48.6%		160.2		154.1
Canada Pension Plan Investment Board (“CPP”) (2)		55.0%		117.4		105.0
Other Joint Venture Programs (3) (4)		Various		107.2		45.3
Total*			$	568.7	$	483.9

* Representing

116

property interests and

23.9

million square feet of GLA, as of

June 30, 2018,

and

118

property interests and

23.5

million square feet of GLA, as of

December 31, 2017.

(

)

Represents

four

separate joint ventures, with

four

separate accounts managed by Prudential Global Investment Management (“PGIM”),

three

of these ventures are collectively referred to as KimPru and the remaining venture is referred to as KimPru II.

(

)

The Company manages these joint venture investments and, where applicable, earns property management fees, construction management fees, property acquisition and disposition fees, leasing management fees and asset management fees.

(

)

As of

December 31, 2017,

the Company had aggregate net deferred gains of

$6.9

million relating to the disposal of operating properties prior to the adoption of ASU

2017

05.

These deferred gains were included in the Company’s investment above, of which

$5.1

million related to KimPru II and

$1.8

million related to Other Joint Venture Programs. Upon adoption, the Company recorded a cumulative-effect adjustment of

$6.9

million to its beginning retained earnings as of

January 1, 2018

on the Company’s Condensed Consolidated Statements of Changes in Equity. See Footnote

to the Notes to the Company’s Condensed Consolidated Financial Statements for further detail and discussion.

(

)

During

March 2018,

the Company sold a portion of its investment in a consolidated operating property to its partner 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. As of the date of deconsolidation, the Company had an investment in this unconsolidated property of

$62.4

million. See Footnotes

and

to the Notes to the Company’s Condensed Consolidated Financial Statements for further detail and discussion.

The table below presents the Company’s share of net income for the above investments which is included in Equity in income of joint ventures, net on the Company’s Condensed Consolidated Statements of Income for the

three

and

six

months ended

June 30, 2018

and

2017

(in millions):

	Three Months Ended June 30,				Six Months Ended June 30 ,
Joint Venture	2018		2017		2018		2017
KimPru and KimPru II	$	2.7	$	3.2	$	5.6	$	6.5
KIR		9.9		7.2		18.9		16.6
CPP		1.3		1.3		2.5		2.9
Other Joint Venture Programs (1)		5.1		1.5		9.0		1.9
Total	$	19.0	$	13.2	$	36.0	$	27.9

(

)

During the

three

months ended

June 30, 2018,

a joint venture investment distributed cash proceeds resulting from the refinancing of an existing loan of which the Company’s share was

$3.6

million. This distribution was in excess of the Company’s carrying basis in this joint venture investment and as such was recognized as income.

During the

six

months ended

June 30, 2018,

certain of the Company’s real estate joint ventures disposed of

four

operating properties, in separate transactions, for an aggregate sales price of

$37.9

million. These transactions resulted in an aggregate net gain to the Company of

$3.5

million for the

six

months ended

June 30, 2018.

During the

six

months ended

June 30, 2017,

certain of the Company’s real estate joint ventures disposed of

six

operating properties and a portion of

one

property, in separate transactions, for an aggregate sales price of

$49.3

million. These transactions resulted in an aggregate net gain to the Company of

$0.1

million, before income taxes, for the

six

months ended

June 30, 2017.

In addition, during the

six

months ended

June 30, 2017,

the Company acquired a controlling interest in

three

operating properties from certain joint ventures, in separate transactions, for an aggregate sales price of

$320.1

million.

The table below presents debt balances within the Company’s unconsolidated joint venture investments for which the Company held noncontrolling ownership interests at

June 30, 2018

and

December 31, 2017 (

dollars in millions):

	As of June 30 , 2018							As of December 31, 2017
Joint Venture	Mortgages and Notes Payable , Net		Weighted Average Interest Rate			Weighted Average Remaining Term (months)*		Mortgages and Notes Payable , Net		Weighted Average Interest Rate			Weighted Average Remaining Term (months)*
KimPru and KimPru II	$	623.1		3.96	%		53.8	$	625.7		3.59	%		59.8
KIR		686.6		4.63	%		41.8		702.0		4.60	%		47.5
CPP		84.3		3.64	%		60.1		84.9		2.91	%		4.0
Other Joint Venture Programs		487.1		4.18	%		82.8		287.6		4.41	%		27.2
Total	$	1,881.1						$	1,700.2

* Includes extension options