14.	Noncontrolling Interests :

Noncontrolling interests represent the portion of equity that the Company does

not

own in those entities it consolidates as a result of having a controlling interest or determined that the Company was the primary beneficiary of a VIE in accordance with the provisions of the FASB’s Consolidation guidance. The Company accounts and reports for noncontrolling interests in accordance with the Consolidation guidance and the Distinguishing Liabilities from Equity guidance issued by the FASB. The Company identifies its noncontrolling interests separately within the equity section on the Company’s Consolidated Balance Sheets. The amounts of consolidated net income attributable to the Company and to the noncontrolling interests are presented separately on the Company’s Consolidated Statements of Income. During the year ended

December 31, 2018,

there were various acquisitions and dispositions/liquidations of entities that had an impact on noncontrolling interest. See Footnotes

and

of the Notes to Consolidated Financial Statements for additional information regarding specific transactions.

Included within noncontrolling interests are units that were determined to be contingently redeemable that are classified as Redeemable noncontrolling interests and presented in the mezzanine section between Total liabilities and Stockholder’s equity on the Company’s Consolidated Balance Sheets.

The following table presents the change in the redemption value of the Redeemable noncontrolling interests for the years ended

December 31, 2018

and

2017

(in thousands):

	20 18			201 7
Balance at January 1,	$	16,143		$	86,953
Issuance of redeemable partnership interests (1)		-			10,000
Income		373			1,297
Distributions		(355	)		(2,538	)
Redemption/conversion of redeemable units (2)		-			(79,569	)
Adjustment to estimated redemption value (1)		7,521			-
Balance at December 31,	$	23,682		$	16,143

(

)

During

2017,

KIM Lincoln, a wholly owned subsidiary of the Company, and Lincoln Member entered into a joint venture agreement wherein KIM Lincoln has a

90%

controlling interest and Lincoln Member has a

10%

noncontrolling interest (See Footnote

of the Notes to Consolidated Financial Statements). During the year ended

December 31, 2018,

the Company recorded an adjustment of

$7.5

million to the estimated redemption fair market value of this noncontrolling interest in accordance with the provisions of the joint venture agreement and ASC

480

– Accounting for Redeemable Equity Instruments. The Company revalues the fair market value of this noncontrolling interest on a recurring basis and determined that its valuation was classified within Level

of the fair value hierarchy. The estimated fair market value of this noncontrolling interest was based upon a discounted cash flow model, for which a capitalization rate of

5.00%

and discount rate of

6.00%

were utilized in the model based upon unobservable rates that the Company believes to be within a reasonable range of current market rates.

(

)

During

2017,

the Company redeemed the remaining

79,642,697

Preferred A Units for a total redemption price of

$79.9

million, including an accrued preferred return of

$0.4

million. These units, which had a par value of

$1.00

and return per annum of

5.0%,

were issued in connection with the Puerto Rico shopping center acquisitions discussed below.

The Company owns

seven

shopping center properties located throughout Puerto Rico. These properties were acquired partially through the issuance of

$158.6

million of non-convertible units and

$45.8

million of convertible units. Noncontrolling interests related to these acquisitions totaled

$233.0

million of units, including premiums of

$13.5

million and a fair market value adjustment of

$15.1

million (collectively, the "Units"). Since the acquisition date the Company has redeemed a substantial portion of these units. As of

December 31, 2018

and

2017,

noncontrolling interests relating to the remaining units were

$5.2

million. The Units related annual cash distribution rates and related conversion features consisted of the following as of

December 31, 2018:

Type	Par Value Per Unit		Number of Units Remaining		Return Per Annum
Class B-1 Preferred Units (1)	$	10,000		189		7.0%
Class B-2 Preferred Units (2)	$	10,000		42		7.0%
Class C DownReit Units (1)	$	30.52		52,797	Equal to the Company’s common stock dividend

(

)

These units are redeemable for cash by the holder or at the Company’s option, shares of the Company’s common stock, based upon the conversion calculation as defined in the agreement. These units are included in Noncontrolling interests on the Company’s Consolidated Balance Sheets.

(

)

These units are redeemable for cash by the holder or callable by the Company and are included in Redeemable noncontrolling interests on the Company’s Consolidated Balance Sheets.

The Company owns a shopping center located in Bay Shore, NY, which was acquired in

2006

with the issuance of

647,758

redeemable Class B Units at a par value of

$37.24

per unit. The units accrue a return equal to the Company’s common stock dividend and are redeemable for cash by the holder or at the Company’s option, shares of the Company’s common stock at a ratio of

1:1.

These units are callable by the Company any time after

April 3, 2026,

and are included in Noncontrolling interests on the Company’s Consolidated Balance Sheets. During

2007,

30,000

units, or

$1.1

million par value, of the Class B Units were redeemed and at the Company’s option settled in cash. In addition, during

2018

and

2017,

25,970

and

25,000

units, or

$1.1

million and

$0.9

million par value, respectively, of the Class B Units were redeemed and at the Company’s option settled in cash. As of

December 31, 2018

and

2017,

noncontrolling interest relating to the remaining Class B Units was

$24.3

million and

$25.4

million, respectively.

Noncontrolling interests also includes

138,015

convertible units issued during

2006

by the Company, which were valued at

$5.3

million, including a fair market value adjustment of

$0.3

million, related to an interest acquired in an office building located in Albany, NY. These units are currently redeemable at the option of the holder for cash or at the option of the Company for the Company’s common stock at a ratio of

1:1.

The holder is entitled to a distribution equal to the dividend rate of the Company’s common stock. The Company was restricted from disposing of these assets, other than through a tax-free transaction, through

January 2017.