7.	Investment in and Advances to Real Estate Joint Ventures :

The Company and its subsidiaries have 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 unconsolidated joint venture investments for which the Company held an ownership interest at

December 31, 2018

and

2017

(in millions, except number of properties):

			The Company's Investment
	Ownership		As of December 31,
Joint Venture	Interest		2018		2017
Prudential Investment Program (“KimPru” and “KimPru II”) (1) (2) (3)		15.0%	$	175.2	$	179.5
Kimco Income Opportunity Portfolio (“KIR”) (2)		48.6%		167.2		154.1
Canada Pension Plan Investment Board (“CPP”) (2)		55.0%		135.0		105.0
Other Joint Venture Programs (3) (4)		Various		93.5		45.3
Total*			$	570.9	$	483.9

* Representing

109

property interests and

23.2

million square feet of GLA, as of

December 31, 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,

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 acquisition fees, leasing commissions, property management fees, asset management fees and construction 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 Consolidated Statements of Changes in Equity. See Footnote

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

KIMCO REALTY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

(

)

During

March 2018,

the Company sold a portion of its investment in an 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 Footnote

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

The table below presents the Company’s share of net income for these investments which is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Income (in millions):

	Year Ended December 31,
	201 8		201 7		2016
KimPru and KimPru II	$	15.2	$	13.0	$	16.4
KIR		38.7		36.7		44.0
CPP		5.1		7.2		7.7
Other Joint Venture Programs (1) (2) (3) (4)		12.6		3.9		150.6
Total	$	71.6	$	60.8	$	218.7

(

)

During the year ended

December 31, 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 to that extent was recognized as income.

(

)

During the year ended

December 31, 2018,

a joint venture recognized an impairment charge related to the pending foreclosure of a property, of which the Company’s share was

$5.2

million.

(

)

During the year ended

December 31, 2017,

the Company recognized a cumulative foreign currency translation loss of

$4.8

million due to the substantial liquidation of the Company’s investments in Canada during

2017.

(

)

During the year ended

December 31, 2017,

a joint venture recognized an impairment charge related to the pending sale of a property, of which the Company’s share was

$3.4

million.

During

2018,

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

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

$213.5

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

$18.5

million, for the year ended

December 31, 2018.

During

2017,

certain of the Company’s real estate joint ventures disposed of or transferred interest to joint venture partners in

operating properties and a portion of

one

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

$180.8

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

$7.5

million, for the year ended

December 31, 2017.

In addition, during

2017,

the Company acquired a controlling interest in

three

operating properties from certain joint ventures, in separate transactions, with an aggregate gross fair value of

$320.1

million. See Footnote

of the Notes to Consolidated Financial Statements for the operating properties acquired by the Company.

During

2016,

certain of the Company’s real estate joint ventures disposed of or transferred interest to joint venture partners in

operating properties and

one

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

$1.1

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

$151.2

million, before income taxes, for the year ended

December 31, 2016.

In addition, during

2016,

the Company acquired a controlling interest in

nine

operating properties and

one

development project from certain joint ventures, in separate transactions, with an aggregate gross fair value of

$590.1

million.

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

December 31, 2018

and

2017

(dollars in millions):

	December 31, 2018							December 31, 2017
Joint Venture	Mortgages and Notes Payable, Net		Weighted Average Interest Rate			Weighted Average Remaining Term (months)*		Mortgages and Notes Payable , N et		Weighted Average Interest Rate			Weighted Average Remaining Term (months)*
KimPru and KimPru II	$	572.6		4.29	%		49.0	$	625.7		3.59	%		59.8
KIR		651.4		4.43	%		40.4		702.0		4.60	%		47.5
CPP		84.4		3.85	%		54.0		84.9		2.91	%		4.0
Other Joint Venture Programs		474.2		4.26	%		78.6		287.6		4.41	%		27.2
Total	$	1,782.6						$	1,700.2

* Average remaining term includes extensions

KIMCO REALTY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued

Summarized financial information for the Company’s investment in and advances to real estate joint ventures is as follows (in millions):

	December 31,
	201 8		201 7
Assets:
Real estate, net	$	3,574.1	$	3,402.1
Other assets		227.0		208.9
	$	3,801.1	$	3,611.0
Liabilities and Partners’/Members’ Capital:
Notes payable, net	$	272.7	$	233.1
Mortgages payable, net		1,509.9		1,467.1
Other liabilities		62.4		52.5
Noncontrolling interests		16.8		15.5
Partners’/Members’ capital		1,939.3		1,842.8
	$	3,801.1	$	3,611.0

	Year Ended December 31,
	201 8			201 7			201 6
Revenues	$	506.3		$	516.0		$	597.5
Operating expenses		(146.1	)		(150.7	)		(178.1	)
Impairment charges		(20.7	)		(12.9	)		(38.6	)
Depreciation and amortization		(122.5	)		(116.1	)		(138.1	)
Gain on sale of operating properties		60.3			26.0			296.2
Interest expense		(80.1	)		(81.9	)		(117.3	)
Other (expense)/income, net		(4.4	)		(3.0	)		20.1
Net income	$	192.8		$	177.4		$	441.7

Other liabilities included in the Company’s accompanying Consolidated Balance Sheets include accounts with certain real estate joint ventures totaling

$2.5

million and

$2.1

million at

December 31, 2018

and

2017,

respectively. The Company and its subsidiaries have varying equity interests in these real estate joint ventures, which

may

differ from their proportionate share of net income or loss recognized in accordance with GAAP.

The Company’s maximum exposure to losses associated with its unconsolidated joint ventures is primarily limited to its carrying value in these investments. Generally, such investments contain operating properties and the Company has determined these entities do

not

contain the characteristics of a VIE. As of

December 31, 2018

and

2017,

the Company’s carrying value in these investments was

$570.9

million and

$483.9

million, respectively.