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Note 7 - Investment and Advances in Real Estate Joint Ventures | 12 Months Ended
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Dec. 31, 2015
Investments And Advances In Real Estate Joint Ventures [Abstract] |
Investments And Advances In Real Estate Joint Ventures [Text Block] |
7. | Investment and Advances in Real Estate Joint Ventures:
The Company and its subsidiaries have investments and advances in 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 December 31, 2015 and 2014 (in millions, except number of properties):
|  | As of December 31, 201 5 |  |  | As of December 31, 201 4 |
Venture |  | Average Ownership Interest |  |  | Number of Properties |  |  | GLA |  |  | Gross Real Estate |  |  | The Company's Investment |  |  | Average Ownership Interest |  |  | Number of Properties |  |  | GLA |  |  | Gross Real Estate |  |  | The Company's Investment |
Prudential Investment Program (“KimPru” and “KimPru II”) (1) (2) |  |  | 15.0% |  |  |  | 53 |  |  |  | 9.6 |  |  | $ | 2,531.6 |  |  | $ | 175.5 |  |  |  | 15.0% |  |  |  | 60 |  |  |  | 10.6 |  |  | $ | 2,728.9 |  |  | $ | 178.6 |
Kimco Income Opportunity Portfolio (“KIR”) (2) |  |  | 48.6% |  |  |  | 47 |  |  |  | 10.8 |  |  |  | 1,422.8 |  |  |  | 131.0 |  |  |  | 48.6% |  |  |  | 54 |  |  |  | 11.5 |  |  |  | 1,488.2 |  |  |  | 152.1 |
Kimstone (2) (3) |  |  | 33.3% |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 33.3% |  |  |  | 39 |  |  |  | 5.6 |  |  |  | 1,098.7 |  |  |  | 98.1 |
BIG Shopping Centers (2) |  |  | 50.1% |  |  |  | 1 |  |  |  | 0.4 |  |  |  | 53.5 |  |  |  | - |  |  |  | 50.1% |  |  |  | 6 |  |  |  | 1.0 |  |  |  | 151.6 |  |  |  | - |
Canada Pension Plan Investment Board(“CPP”) (2) (4) |  |  | 55.0% |  |  |  | 7 |  |  |  | 2.4 |  |  |  | 524.1 |  |  |  | 195.6 |  |  |  | 55.0% |  |  |  | 7 |  |  |  | 2.4 |  |  |  | 504.0 |  |  |  | 188.9 |
Other Institutional Programs (2) |  |  | Various |  |  |  | 8 |  |  |  | 1.1 |  |  |  | 248.0 |  |  |  | 5.2 |  |  |  | Various |  |  |  | 53 |  |  |  | 1.8 |  |  |  | 413.8 |  |  |  | 11.0 |
RioCan |  |  | 50.0% |  |  |  | 13 |  |  |  | 2.4 |  |  |  | 259.3 |  |  |  | 53.3 |  |  |  | 50.0% |  |  |  | 45 |  |  |  | 9.3 |  |  |  | 1,205.8 |  |  |  | 159.8 |
Latin America (5) |  |  | Various |  |  |  | 9 |  |  |  | - |  |  |  | 53.2 |  |  |  | 15.0 |  |  |  | Various |  |  |  | 13 |  |  |  | 0.1 |  |  |  | 91.2 |  |  |  | 24.4 |
Other Joint Venture Programs |  |  | Various |  |  |  | 53 |  |  |  | 8.7 |  |  |  | 1,165.6 |  |  |  | 167.0 |  |  |  | Various |  |  |  | 60 |  |  |  | 9.5 |  |  |  | 1,401.2 |  |  |  | 224.3 |
Total |  |  |  |  |  |  | 191 |  |  |  | 35.4 |  |  | $ | 6,258.1 |  |  | $ | 742.6 |  |  |  |  |  |  |  | 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 year ended December 31, 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.
(4) | During the years ended December 31, 2015 and 2014, CPP acquired land parcels for future development in Dania, FL, for $3.6 million and $62.8 million, respectively.
(5) | Includes eight land parcels and one self-storage facility.
The table below presents the Company’s share of net income/(loss) for these investments which is included in the Company’s Consolidated Statements of Income under Equity in income of joint ventures, net for the years ended December 31, 2015, 2014 and 2013 (in millions):
|  | Year E nded December 31, |
|  | 201 5 |  |  | 201 4 |  |  | 201 3 |
KimPru and KimPru II (1) (4) |  | $ | 7.1 |  |  | $ | 8.1 |  |  | $ | 9.1 |
KIR (5) |  |  | 41.0 |  |  |  | 26.5 |  |  |  | 25.3 |
Kimstone |  |  | 0.7 |  |  |  | 2.0 |  |  |  | 3.6 |
BIG Shopping Centers (9) |  |  | 2.4 |  |  |  | 22.5 |  |  |  | 3.0 |
CPP |  |  | 9.6 |  |  |  | 7.1 |  |  |  | 5.8 |
Other Institutional Programs |  |  | 1.6 |  |  |  | 4.3 |  |  |  | 7.6 |
RioCan |  |  | 399.4 |  |  |  | 30.6 |  |  |  | 27.6 |
Latin America (6) (8) |  |  | (0.7 | ) |  |  | (3.8 | ) |  |  | 103.1 |
Other Joint Venture Programs (2) (3) (7) |  |  | 19.3 |  |  |  | 62.3 |  |  |  | 23.6 |
Total |  | $ | 480.4 |  |  | $ | 159.6 |  |  | $ | 208.7 |
| (1) | During the year ended December 31, 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 year ended December 31, 2015.
| (3) | During the year ended December 31, 2015, four joint ventures in which the Company holds noncontrolling interests recognized impairment charges relating to the pending sale of three properties and the pending foreclosure of one property. The Company’s share of these impairment charges was $10.9 million, before income tax benefit.
| (4) | During the year ended December 31, 2014, KimPru recognized impairment charges of $21.4 million related to the decline in value of two operating properties. The Company had previously taken other-than-temporary impairment charges on its investment in KimPru and had allocated these impairment charges to the underlying assets of the KimPru joint ventures including a portion to these operating properties. As such, the Company’s share of these impairment charges was $2.4 million.
| (5) | During the year ended December 31, 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 subsequently sold.
| (6) | During the fourth quarter 2015, the Company liquidated its investment in Chile, which resulted in the release of a cumulative foreign currency translation gain of $0.8 million. Also, during the fourth quarter 2014, the Company substantially liquidated its investment in Mexico, which resulted in the release of a cumulative foreign currency translation loss of $47.3 million.
| (7) | During the year ended December 31, 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.
| (8) | During the year ended December 31, 2013, the Company was in advanced negotiations to sell 10 operating properties located throughout Mexico, which were held in unconsolidated joint ventures in which the Company held noncontrolling interests. Based upon the allocation of the selling price, the Company recorded its share of impairment charges of $9.4 million on six of these properties.
| (9) | During the year ended December 31, 2013, BIG recognized a gain on early extinguishment of debt of $13.7 million related to a property that was foreclosed on by a third party lender. The Company’s share of this gain was $2.4 million.
The following tables provide a summary of properties and land parcels disposed of through the Company’s real estate joint ventures or transferred interest to joint venture partners during the years ended December 31, 2015, 2014 and 2013. These transactions resulted in an aggregate net gain to the Company of $380.6 million, $96.0 million and $108.7 million, before income taxes, for the years ended December 31, 2015, 2014 and 2013, respectively, and which are included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Income:
|  | Year Ended December 31, 2015 |
|  | Number of properties |  |  | Number of land parcels |  |  | Aggregate sales price (in millions) |
KimPru and KimPru II |  |  | 7 |  |  |  | 1 |  |  | $ | 143.5 |
KIR |  |  | 5 |  |  |  | - |  |  | $ | 84.6 |
BIG Shopping Centers |  |  | 4 |  |  |  | - |  |  | $ | 75.0 |
Other Institutional Programs (1) |  |  | 44 |  |  |  | - |  |  | $ | 171.5 |
RioCan (3) |  |  | 32 |  |  |  | 1 |  |  | $ | 1,390.4 |
Latin America |  |  | 4 |  |  |  | 9 |  |  | $ | 16.2 |
Other Joint Venture Programs (2) |  |  | 6 |  |  |  | - |  |  | $ | 123.7 |
| (1) | The Company acquired the remaining interest in two of these properties. See Footnote 3 for the operating properties acquired by the Company.
| (2) | The Company acquired the remaining interest in two of these properties and entered into an agreement to acquire the remaining interest in one of these properties. See Footnote 3 for the operating properties acquired by the Company.
| (3) | The Company sold its interest in 32 operating properties and one land parcel which resulted in an aggregate gain to the Company of $373.8 million (CAD $493.9 million). The aggregate sales price does not reflect the consideration received, but rather represents the full implied fair value of the assets sold determined by the proportionate share of the interest acquired.
|  | Year Ended December 31, 2014 |
|  | Number of properties |  |  | Number of land parcels |  |  | Aggregate sales price (in millions) |
KIR |  |  | 3 |  |  |  | - |  |  | $ | 19.7 |
BIG Shopping Centers (1) |  |  | 15 |  |  |  | - |  |  | $ | 166.6 |
Other Institutional Programs (2) |  |  | 28 |  |  |  | - |  |  | $ | 846.6 |
Latin America |  |  | 14 |  |  |  | - |  |  | $ | 324.5 |
Other Joint Venture Programs (3) |  |  | 19 |  |  |  | - |  |  | $ | 252.0 |
| (1) | The Company acquired the remaining interest in seven of these properties. See Footnote 3 for the operating properties acquired by the Company.
| (2) | The Company acquired the remaining interest in 26 of these properties. See Footnote 3 for the operating properties acquired by the Company.
| (3) | The Company acquired the remaining interest in one of these properties. See Footnote 3 for the operating properties acquired by the Company.
|  | Year Ended December 31, 2013 |
|  | Number of properties |  |  | Number of land parcels |  |  | Aggregate sales price (in millions) |
KimPru and KimPru II (1) |  |  | 1 |  |  |  | - |  |  | $ | 15.8 |
KIR |  |  | 1 |  |  |  | - |  |  | $ | 30.0 |
Other Institutional Programs (2) |  |  | 2 |  |  |  | - |  |  | $ | 46.9 |
Latin America |  |  | 104 |  |  |  | - |  |  | $ | 945.4 |
Other Joint Venture Programs (3) |  |  | 9 |  |  |  | - |  |  | $ | 1,095.9 |
| (1) | The Company acquired the remaining interest in this property.
| (2) | The Company acquired the remaining interest in these two properties.
| (3) | The Company acquired the remaining interest in two of these properties.
The table below presents debt balances within the Company’s joint venture investments for which the Company held noncontrolling ownership interests at December 31, 2015 and 2014 (dollars in millions):
|  | As of December 31, 2015 |  |  | As of December 31, 2014 |
Venture |  | Mortgages and Notes Payable |  |  | Average Interest Rate |  |  | Average Remaining Term (months)** |  |  | Mortgages a nd Notes Payable |  |  | Average Interest Rate |  |  | Average Remaining Term (months)** |
KimPru and KimPru II |  | $ | 777.1 |  |  |  | 5.54 | % |  |  | 12.6 |  |  | $ | 920.0 |  |  |  | 5.53 | % |  |  | 23.0 |
KIR |  |  | 811.6 |  |  |  | 4.64 | % |  |  | 62.3 |  |  |  | 860.7 |  |  |  | 5.04 | % |  |  | 61.9 |
Kimstone |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 701.3 |  |  |  | 4.45 | % |  |  | 28.7 |
BIG Shopping Centers |  |  | 54.5 |  |  |  | 5.45 | % |  |  | 10.1 |  |  |  | 144.6 |  |  |  | 5.52 | % |  |  | 22.0 |
CPP |  |  | 109.9 |  |  |  | 5.25 | % |  |  | 3.5 |  |  |  | 112.0 |  |  |  | 5.05 | % |  |  | 10.1 |
Other Institutional Programs |  |  | 163.9 |  |  |  | 4.74 | % |  |  | 24.0 |  |  |  | 272.9 |  |  |  | 5.21 | % |  |  | 23.5 |
RioCan |  |  | 87.5 |  |  |  | 5.02 | % |  |  | 11.0 |  |  |  | 640.5 |  |  |  | 4.29 | % |  |  | 39.9 |
Other Joint Venture Programs |  |  | 794.6 |  |  |  | 5.26 | % |  |  | 47.6 |  |  |  | 921.9 |  |  |  | 5.31 | % |  |  | 58.6 |
Total |  | $ | 2,799.1 |  |  |  |  |  |  |  |  |  |  | $ | 4,573.9 |  |  |  |  |  |  |  |  |
** Average remaining term includes extensions Summarized financial information for the Company’s investment and advances in real estate joint ventures is as follows (in millions):
|  | December 31, |
|  | 2015 |  |  | 2014 |
Assets: |  |  |  |  |  |  |  |
Real estate, net |  | $ | 4,855.5 |  |  | $ | 7,422.0 |
Other assets |  |  | 252.2 |  |  |  | 312.6 |
|  | $ | 5,107.7 |  |  | $ | 7,734.6 |
Liabilities and Partners’/Members’ Capital: |  |  |  |  |  |  |  |
Notes and mortgages payable |  | $ | 2,770.1 |  |  | $ | 4,553.1 |
Construction loans |  |  | 29.0 |  |  |  | 21.0 |
Other liabilities |  |  | 16.2 |  |  |  | 120.5 |
Noncontrolling interests |  |  | 92.5 |  |  |  | 21.4 |
Partners’/Members’ capital |  |  | 2,199.9 |  |  |  | 3,018.6 |
|  | $ | 5,107.7 |  |  | $ | 7,734.6 |
|  | Year Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Revenues from rental property |  | $ | 842.5 |  |  | $ | 1,059.9 |  |  | $ | 1,280.2 |
Operating expenses |  |  | (265.9 | ) |  |  | (333.5 | ) |  |  | (410.3 | )
Interest expense |  |  | (202.8 | ) |  |  | (247.3 | ) |  |  | (316.4 | )
Depreciation and amortization |  |  | (191.9 | ) |  |  | (260.0 | ) |  |  | (298.8 | )
Impairment charges |  |  | (63.4 | ) |  |  | (23.1 | ) |  |  | (32.3 | )
Other income/(expense), net |  |  | 4.4 |  |  |  | (14.4 | ) |  |  | (16.2 | )
|  |  | (719.6 | ) |  |  | (878.3 | ) |  |  | (1,074.0 | )
Income from continuing operations |  |  | 122.9 |  |  |  | 181.6 |  |  |  | 206.2 |
Discontinued Operations: |  |  |  |  |  |  |  |  |  |  |  |
Income from discontinued operations |  |  | - |  |  |  | 2.8 |  |  |  | 14.1 |
Impairment on dispositions of properties |  |  | - |  |  |  | (3.8 | ) |  |  | (14.8 | )
Gain on dispositions of properties |  |  | - |  |  |  | 471.1 |  |  |  | 229.5 |
|  |  | - |  |  |  | 470.1 |  |  |  | 228.8 |
Gain on sale of operating properties |  |  | 1,166.7 |  |  |  | - |  |  |  | - |
Net income |  | $ | 1,289.6 |  |  | $ | 651.7 |  |  | $ | 435.0 |
Other liabilities included in the Company’s accompanying Consolidated Balance Sheets include accounts with certain real estate joint ventures totaling $12.6 million and $40.3 million at December 31, 2015 and 2014, 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, 2015 and 2014, the Company’s carrying value in these investments is $742.6 million and $1.04 billion, respectively.

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