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Note 8 - Investment and Advances in Real Estate Joint Ventures | 12 Months Ended
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Dec. 31, 2016
Notes to Financial Statements |
Investments and Advances In Real Estate Joint Ventures [Text Block] | 8. 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. As of December 31, 2016 and 2015, the Company’s had interests in 135 and 191 shopping center properties, respectively, aggregating 26.2 million and 35.4 million square feet of GLA, respectively, held in joint venture investments. The table below presents joint venture investments for which the Company held an ownership interest at December 31, 2016 and 2015 (in millions, except number of properties):
|  | As of December 31 , 2016 |  |  | As of December 31 , 2015 |
Venture |  | Ownership Interest |  |  | Number of Properties |  |  | The Company's Investment |  |  | Ownership Interest |  |  | Number of Properties |  |  | The Company's Investment |
Prudential Investment Program (“KimPru” and “KimPru II”) (1) (2) |  |  | 15.0% |  |  |  | 48 |  |  | $ | 182.5 |  |  |  | 15.0% |  |  |  | 53 |  |  | $ | 175.5 |
Kimco Income Opportunity Portfolio (“KIR”) (2) |  |  | 48.6% |  |  |  | 45 |  |  |  | 145.2 |  |  |  | 48.6% |  |  |  | 47 |  |  |  | 131.0 |
Canada Pension Plan Investment Board (“CPP”) (2) (3) |  |  | 55.0% |  |  |  | 5 |  |  |  | 111.8 |  |  |  | 55.0% |  |  |  | 7 |  |  |  | 195.6 |
Other Institutional Programs (2) |  |  | Various |  |  |  | 2 |  |  |  | 0.4 |  |  |  | Various |  |  |  | 9 |  |  |  | 5.2 |
Other Joint Venture Programs (4) |  |  | Various |  |  |  | 34 |  |  |  | 60.4 |  |  |  | Various |  |  |  | 40 |  |  |  | 64.0 |
Canadian Properties |  |  | 50.0% |  |  |  | 1 |  |  |  | 3.9 |  |  |  | Various |  |  |  | 35 |  |  |  | 171.3 |
Total |  |  |  |  |  |  | 135 |  |  | $ | 504.2 |  |  |  |  |  |  |  | 191 |  |  | $ | 742.6 |
(1) | Represents four separate joint ventures, with four separate accounts managed by Prudential Global Investment Management (“PGIM”), 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, 2016, the CPP joint venture acquired a property interest adjacent to an existing operating property in Temecula, CA for a gross purchase price of $27.5 million.
(4) | Includes five land parcels located in Mexico.
The table below presents the Company’s share of net income 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, 2016, 2015 and 2014 (in millions):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
KimPru and KimPru II |  | $ | 16.4 |  |  | $ | 7.1 |  |  | $ | 8.1 |
KIR |  |  | 44.0 |  |  |  | 41.0 |  |  |  | 26.5 |
CPP |  |  | 7.7 |  |  |  | 9.6 |  |  |  | 7.1 |
Other Institutional Programs |  |  | 1.1 |  |  |  | 4.7 |  |  |  | 28.8 |
Other Joint Venture Programs |  |  | 3.9 |  |  |  | 14.2 |  |  |  | 49.7 |
Canadian Properties |  |  | 145.6 |  |  |  | 403.8 |  |  |  | 39.4 |
Total |  | $ | 218.7 |  |  | $ | 480.4 |  |  | $ | 159.6 |
During 2016, the Company’s real estate joint ventures disposed of or transferred interest to joint venture partners 45 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 the remaining interest in nine operating properties and one development project from various joint ventures, in separate transactions, for a gross purchase price of $590.1 million. See Footnotes 3 and 4 of the Notes to Consolidated Financial Statements for the operating properties and development projects acquired by the Company. During 2015, the Company’s real estate joint ventures disposed of or transferred interest to joint venture partners 98 operating properties and 11 land parcels, in separate transactions, for an aggregate sales price of $1.8 billion. These transactions resulted in an aggregate net gain to the Company of $380.6 million, before income taxes, for the year ended December 31, 2015. In addition, during 2015, the Company acquired the remaining interest in 43 operating properties from various joint ventures, in separate transactions for a gross purchase price of $1.6 billion. See Footnote 3 of the Notes to Consolidated Financial Statements for the operating properties acquired by the Company. During 2014, the Company’s real estate joint ventures disposed of or transferred interest to joint venture partners 37 operating properties, in separate transactions, for an aggregate sales price of $811.7 million. These transactions resulted in an aggregate net gain to the Company of $96.0 million, before income taxes, for the year ended December 31, 2014. In addition, during 2014, the Company acquired the remaining interest in 34 operating properties from various joint ventures, in separate transactions for a gross purchase price of $1.0 billion. The table below presents debt balances within the Company’s joint venture investments for which the Company held noncontrolling ownership interests at December 31, 2016 and 2015 (dollars in millions):
|  |  | As of December 31 , 2016 |  |  | As of December 31, 2015 |
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 |  |  | $ | 647.4 |  |  |  | 3.07 | % |  |  | 67.5 |  |  | $ | 777.1 |  |  |  | 5.54 | % |  |  | 12.6 |
KIR |  |  |  | 746.5 |  |  |  | 4.64 | % |  |  | 54.9 |  |  |  | 811.6 |  |  |  | 4.64 | % |  |  | 62.3 |
CPP |  |  |  | 84.8 |  |  |  | 2.17 | % |  |  | 16.0 |  |  |  | 109.9 |  |  |  | 5.25 | % |  |  | 3.5 |
Other Institutional Programs |  |  |  | 94.7 |  |  |  | 4.09 | % |  |  | 19.0 |  |  |  | 218.5 |  |  |  | 4.92 | % |  |  | 20.5 |
Other Joint Venture Programs |  |  |  | 482.1 |  |  |  | 5.67 | % |  |  | 24.5 |  |  |  | 540.7 |  |  |  | 5.61 | % |  |  | 36.1 |
Canadian Properties |  |  |  | 7.5 |  |  |  | 4.70 | % |  |  | 9.1 |  |  |  | 341.3 |  |  |  | 4.64 | % |  |  | 56.4 |
Total |  |  | $ | 2,063.0 |  |  |  |  |  |  |  |  |  |  | $ | 2,799.1 |  |  |  |  |  |  |  |  |
* 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, |
|  | 201 6 |  |  | 2015 |
Assets: |  |  |  |  |  |  |  |
Real estate, net |  | $ | 3,741.9 |  |  | $ | 4,855.5 |
Other assets |  |  | 224.6 |  |  |  | 279.3 |
|  | $ | 3,966.5 |  |  | $ | 5,134.8 |
Liabilities and Partners’/Members’ Capital: |  |  |  |  |  |  |  |
Notes payable |  | $ | 214.5 |  |  | $ | 29.7 |
Mortgages payable and construction loans |  |  | 1,848.5 |  |  |  | 2,769.4 |
Other liabilities |  |  | 82.3 |  |  |  | 119.6 |
Noncontrolling interests |  |  | 15.9 |  |  |  | 16.2 |
Partners’/Members’ capital |  |  | 1,805.3 |  |  |  | 2,199.9 |
|  | $ | 3,966.5 |  |  | $ | 5,134.8 |
|  | Year Ended December 31, |
|  | 201 6 |  |  | 2015 |  |  | 2014 |
Revenues from rental properties |  | $ | 597.5 |  |  | $ | 842.5 |  |  | $ | 1,059.9 |
Operating expenses |  |  | (178.1 | ) |  |  | (265.9 | ) |  |  | (333.5 | )
Interest expense |  |  | (117.3 | ) |  |  | (202.8 | ) |  |  | (247.3 | )
Depreciation and amortization |  |  | (138.1 | ) |  |  | (191.9 | ) |  |  | (260.0 | )
Impairment charges |  |  | (38.6 | ) |  |  | (63.4 | ) |  |  | (23.1 | )
Other income/(expense), net |  | 20.1 |  |  |  | 4.4 |  |  |  | (14.4 | )
|  |  | (452.0 | ) |  |  | (719.6 | ) |  |  | (878.3 | )
Income from continuing operations |  |  | 145.5 |  |  |  | 122.9 |  |  |  | 181.6 |
Discontinued Operations: |  |  |  |  |  |  |  |  |  |  |  |
Income from discontinued operations |  |  | - |  |  |  | - |  |  |  | 2.8 |
Impairment on dispositions of properties |  |  | - |  |  |  | - |  |  |  | (3.8 | )
Gain on dispositions of properties |  |  | - |  |  |  | - |  |  |  | 471.1 |
|  |  | - |  |  |  | - |  |  |  | 470.1 |
Gain on sale of operating properties |  |  | 296.2 |  |  |  | 1,166.7 |  |  |  | - |
Net income |  | $ | 441.7 |  |  | $ | 1,289.6 |  |  | $ | 651.7 |
Other liabilities included in the Company’s accompanying Consolidated Balance Sheets include accounts with certain real estate joint ventures totaling $11.0 million and $12.6 million at December 31, 2016 and 2015, 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, 2016 and 2015, the Company’s carrying value in these investments is $504.2 million and $742.6 million, respectively.

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