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Note 4 - Investment and Advances in Real Estate Joint Ventures | 9 Months Ended
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Sep. 30, 2015
Investments And Advances In Real Estate Joint Ventures [Abstract] |
Investments And Advances In Real Estate Joint Ventures [Text Block] | 4. Investments and Advances in 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 joint venture investments for which the Company held an ownership interest at September 30, 2015 and December 31, 2014 (in millions, except number of properties):
|  | As of September 30, 2015 |  |  | As of December 31, 2014 |
Venture |  | Ownership Interest |  |  | Number of Properties |  |  | GLA |  |  | Gross Real Estate |  |  | The Company's Investment |  |  | Ownership Interest |  |  | Number of Properties |  |  | GLA |  |  | Gross Real Estate |  |  | The Company's Investment |
Prudential Investment Program (“KimPru” and “KimPru II”) (1) (2) |  |  | 15.0 | % |  |  | 55 |  |  |  | 9.9 |  |  | $ | 2,596.9 |  |  | $ | 176.4 |  |  |  | 15.0 | % |  |  | 60 |  |  |  | 10.6 |  |  | $ | 2,728.9 |  |  | $ | 178.6 |
Kimco Income Opportunity Portfolio (“KIR”) (2) |  |  | 48.6 | % |  |  | 50 |  |  |  | 10.9 |  |  |  | 1,428.5 |  |  |  | 135.5 |  |  |  | 48.6 | % |  |  | 54 |  |  |  | 11.5 |  |  |  | 1,488.2 |  |  |  | 152.1 |
Kimstone (2) (3) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 33.3 | % |  |  | 39 |  |  |  | 5.6 |  |  |  | 1,098.7 |  |  |  | 98.1 |
BIG Shopping Centers (2) |  |  | 50.1 | % |  |  | 5 |  |  |  | 0.9 |  |  |  | 121.9 |  |  |  | - |  |  |  | 50.1 | % |  |  | 6 |  |  |  | 1.0 |  |  |  | 151.6 |  |  |  | - |
The Canada Pension Plan Investment Board (“CPP”) (2) |  |  | 55.0 | % |  |  | 7 |  |  |  | 2.4 |  |  |  | 518.8 |  |  |  | 194.4 |  |  |  | 55.0 | % |  |  | 7 |  |  |  | 2.4 |  |  |  | 504.0 |  |  |  | 188.9 |
Other Institutional Programs (2) |  |  | Various |  |  |  | 53 |  |  |  | 1.8 |  |  |  | 414.2 |  |  |  | 18.9 |  |  |  | Various |  |  |  | 53 |  |  |  | 1.8 |  |  |  | 413.8 |  |  |  | 11.0 |
RioCan |  |  | 50.0 | % |  |  | 41 |  |  |  | 8.5 |  |  |  | 955.2 |  |  |  | 121.3 |  |  |  | 50.0 | % |  |  | 45 |  |  |  | 9.3 |  |  |  | 1,205.8 |  |  |  | 159.8 |
Latin America |  |  | Various |  |  |  | 9 |  |  |  | - |  |  |  | 57.7 |  |  |  | 15.3 |  |  |  | Various |  |  |  | 13 |  |  |  | 0.1 |  |  |  | 91.2 |  |  |  | 24.4 |
Other Joint Venture Programs |  |  | Various |  |  |  | 53 |  |  |  | 8.7 |  |  |  | 1,180.6 |  |  |  | 171.9 |  |  |  | Various |  |  |  | 60 |  |  |  | 9.5 |  |  |  | 1,401.2 |  |  |  | 224.3 |
Total |  |  |  |  |  |  | 273 |  |  |  | 43.1 |  |  | $ | 7,273.8 |  |  | $ | 833.7 |  |  |  |  |  |  |  | 337 |  |  |  | 51.8 |  |  | $ | 9,083.4 |  |  | $ | 1,037.2 |
| (1) | This venture represents four separate joint ventures, with four separate accounts managed by Prudential Real Estate Investors (“PREI”), three of these ventures are collectively referred to as KimPru and the remaining venture is referred to as KimPru II.
| (2) | 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.
| (3) | During the nine months ended September 30, 2015, the Company purchased the remaining 66.7% interest in the 39-property Kimstone portfolio from Blackstone for a gross purchase price of $1.4 billion, including the assumption of $638.0 million in mortgage debt.
The table below presents the Company’s share of net income/(loss) for the above investments which is included in the Company’s Condensed Consolidated Statements of Income in Equity in income of joint ventures, net for the three and nine months ended September 30, 2015 and 2014 (in millions):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
KimPru and KimPru II (1) |  | $ | (0.2 | ) |  | $ | 2.6 |  |  | $ | 3.3 |  |  | $ | 7.7 |
KIR (4) |  |  | 8.5 |  |  |  | 6.5 |  |  |  | 31.6 |  |  |  | 19.4 |
Kimstone |  |  | - |  |  |  | 1.3 |  |  |  | 0.7 |  |  |  | 0.6 |
BIG Shopping Centers |  |  | 0.2 |  |  |  | 1.0 |  |  |  | 0.4 |  |  |  | 2.6 |
CPP |  |  | 2.2 |  |  |  | 2.1 |  |  |  | 7.1 |  |  |  | 5.2 |
Other Institutional Programs |  |  | 0.1 |  |  |  | 2.6 |  |  |  | 0.4 |  |  |  | 4.0 |
RioCan |  |  | 5.8 |  |  |  | 7.7 |  |  |  | 72.7 |  |  |  | 23.0 |
Latin America |  |  | (0.2 | ) |  |  | 0.8 |  |  |  | (1.3 | ) |  |  | 35.3 |
Other Joint Venture Programs (2) (3) (5) |  |  | (5.5 | ) |  |  | 27.2 |  |  |  | 15.9 |  |  |  | 52.3 |
Total |  | $ | 10.9 |  |  | $ | 51.8 |  |  | $ | 130.8 |  |  | $ | 150.1 |
| (1) | During the nine months ended September 30, 2015, KimPru recognized aggregate impairment charges related to three properties which KimPru anticipates selling or being foreclosed on within the next year, therefore effectively shortening its anticipated hold period for these assets which resulted in the expected future cash flows being less than the carrying value. The Company’s share of these impairment charges was $2.8 million.
| (2) | During September 2013, the Intown portfolio was sold and the Company maintained its guarantee on a portion of debt that was assumed by the buyer at closing. The transaction resulted in a deferred gain to the Company of $21.7 million due to the Company’s continued involvement through its guarantee of the debt. On February 24, 2015, the outstanding debt balance was fully repaid by the buyer and as such, the Company was relieved of its related commitments and guarantee. As a result, the Company recognized the deferred gain of $21.7 million during the nine months ended September 30, 2015.
| (3) | During the nine months ended September 30, 2015, three joint ventures in which the Company holds noncontrolling interests recognized impairment charges relating to the pending sale of two properties and the pending foreclosure of one property. The Company’s share of these impairment charges was $9.8 million, before income tax benefit.
| (4) | During the nine months ended September 30, 2014, KIR recognized aggregate impairment charges of $5.0 million, of which the Company’s share was $2.8 million, related to two properties which KIR anticipates selling within the next year, therefore effectively shortening its anticipated hold period for these assets which resulted in the expected future cash flows being less than the carrying value.
| (5) | During the nine months ended September 30, 2014, the Company received a distribution of $15.4 million from a joint venture that was in excess of its carrying value and as such, the Company recognized this amount as equity in income.
The following table provides a summary of properties and land parcels disposed of through the Company’s real estate joint ventures or transferred to joint venture partners during the nine months ended September 30, 2015 and 2014. These transactions resulted in an aggregate net gain to the Company of $61.7 million and $59.5 million, before income taxes, for the nine months ended September 30, 2015 and 2014, respectively, and is included in Equity in income of joint ventures, net on the Company’s Condensed Consolidated Statements of Income:
|  | Nine Months Ended September 30, 2015 |
|  | Number of properties |  |  | Number of land parcels |  |  | Aggregate sales price (in millions) |
KimPru and KimPru II |  |  | 5 |  |  |  | 1 |  |  | $ | 84.0 |
KIR |  |  | 4 |  |  |  | - |  |  | $ | 72.6 |
RioCan |  |  | 4 |  |  |  | - |  |  | $ | 204.2 |
Latin America |  |  | 4 |  |  |  | 9 |  |  | $ | 16.2 |
Other Joint Venture Programs (1) |  |  | 6 |  |  |  | - |  |  | $ | 123.7 |
| (1) | The Company acquired the remaining interest in two of these properties. See Footnote 2 for the operating properties acquired by the Company during the nine months ended September 30, 2015.
|  | Nine Months Ended September 30, 2014 |
|  | Number of properties |  |  | Number of land parcels |  |  | Aggregate sales price (in millions) |
KIR |  |  | 2 |  |  |  | - |  |  | $ | 17.7 |
Other Institutional Programs (1) |  |  | 27 |  |  |  | - |  |  | $ | 823.6 |
Latin America |  |  | 10 |  |  |  | - |  |  | $ | 202.1 |
Other Joint Venture Programs |  |  | 14 |  |  |  | - |  |  | $ | 158.5 |
| (1) | The Company acquired the remaining interest in 25 of these properties during the nine months ended September 30, 2014.
Additionally, on October 6, 2015, the Company sold its ownership interests in 19 Canadian properties to its partner, RioCan, for a gross sales price of Canadian dollars (“CAD”) $477.3 million ($366.1 million U.S. dollars (“USD”)), including the assumption of CAD $126.5 million (USD $97.0 million) of mortgage debt, which was in excess of the carrying value at September 30, 2015. The Company received CAD $291.9 million (USD $224.0 million) in proceeds, net of its share of debt and withholding taxes. 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, 2015 and December 31, 2014 (dollars in millions):
|  | As of September 30, 2015 |  |  | As of December 31, 201 4 |
Venture |  | Mortgages and Notes Payable |  |  | Weighted Average Interest Rate |  |  | Weighted Average Remaining Term (months)* |  |  | Mortgages and Notes Payable |  |  | Weighted Average Interest Rate |  |  | Weighted Average Remaining Term (months)* |
KimPru and KimPru II |  | $ | 822.1 |  |  |  | 5.54 | % |  |  | 15.5 |  |  | $ | 920.0 |  |  |  | 5.53 | % |  |  | 23.0 |
KIR |  |  | 815.4 |  |  |  | 4.62 | % |  |  | 65.3 |  |  |  | 860.7 |  |  |  | 5.04 | % |  |  | 61.9 |
Kimstone |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 701.3 |  |  |  | 4.45 | % |  |  | 28.7 |
BIG Shopping Centers |  |  | 119.9 |  |  |  | 5.45 | % |  |  | 13.1 |  |  |  | 144.6 |  |  |  | 5.52 | % |  |  | 22.0 |
CPP |  |  | 110.5 |  |  |  | 5.15 | % |  |  | 6.5 |  |  |  | 112.0 |  |  |  | 5.05 | % |  |  | 10.1 |
Other Institutional Programs |  |  | 216.8 |  |  |  | 5.28 | % |  |  | 18.5 |  |  |  | 272.9 |  |  |  | 5.21 | % |  |  | 23.5 |
RioCan |  |  | 499.1 |  |  |  | 4.09 | % |  |  | 37.0 |  |  |  | 640.5 |  |  |  | 4.29 | % |  |  | 39.9 |
Other Joint Venture Programs |  |  | 808.1 |  |  |  | 5.30 | % |  |  | 49.0 |  |  |  | 921.9 |  |  |  | 5.31 | % |  |  | 58.6 |
Total |  | $ | 3,391.9 |  |  |  |  |  |  |  |  |  |  | $ | 4,573.9 |  |  |  |  |  |  |  |  |
* Average Remaining Term includes extension options.

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