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Note 5 - Investments In and Advances to Real Estate Joint Ventures

9 Months Ended

Sep. 30, 2019

Investments and Advances In Real Estate Joint Ventures [Text Block]

5. Investments in and Advances to 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 September 30, 2019 and December 31, 2018 (dollars in millions):

	Ownership	The Company's Investment
Joint Venture	Interest	September 30, 2019		December 31, 2018
Prudential Investment Program (1)	15.0%	$	172.5	$	175.2
Kimco Income Opportunity Portfolio (“KIR”) (1)	48.6%		172.4		167.2
Canada Pension Plan Investment Board (“CPP”) (1)	55.0%		151.3		135.0
Other Joint Venture Programs	Various		89.3		93.5
Total*		$	585.5	$	570.9

* Representing 101 property interests and 21.6 million square feet of GLA, as of September 30, 2019, and 109 property interests and 23.2 million square feet of GLA, as of December 31, 2018.

(1)	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.

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 nine months ended September 30, 2019 and 2018 (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
Joint Venture	2019		2018		2019		2018
Prudential Investment Program	$	5.6	$	3.0	$	11.3	$	8.5
KIR		8.8		8.0		40.6		26.9
CPP		1.1		1.2		4.2		3.7
Other Joint Venture Programs (1)		2.2		4.3		2.9		13.4
Total	$	17.7	$	16.5	$	59.0	$	52.5

(1)

During the nine months ended September 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. The distribution was in excess of the Company’s carrying basis in this joint venture investment and as such the excess was recognized as income.

During the nine months ended September 30, 2019, certain of the Company’s real estate joint ventures disposed of eight operating properties, in separate transactions, for an aggregate sales price of $240.9 million. These transactions resulted in an aggregate net gain to the Company of $13.7 million for the nine months ended September 30, 2019.

During the nine months ended September 30, 2018, certain of the Company’s real estate joint ventures disposed of five operating properties, in separate transactions, for an aggregate sales price of $48.4 million. These transactions resulted in an aggregate net gain to the Company of $6.1 million for the nine months ended September 30, 2018.

The table below presents debt balances within the Company’s unconsolidated joint venture investments for which the Company held noncontrolling ownership interests at September 30, 2019 and December 31, 2018 (dollars in millions):

	As of September 30, 2019							As of December 31, 2018
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)***
Prudential Investment Program	$	539.3		3.64	%		49.8	$	572.6		4.29	%		49.0
KIR		568.8		4.46	%		30.9		651.4		4.43	%		40.4
CPP		84.7		3.25	%		45.0		84.4		3.85	%		54.0
Other Joint Venture Programs		420.4		3.93	%		83.3		474.2		4.26	%		78.6
Total	$	1,613.2						$	1,782.6

* Includes extension options