XML 30 R15.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Note 7 - Investment In and Advances to Real Estate Joint Ventures | 12 Months Ended
--- | ---
Dec. 31, 2018
Notes to Financial Statements |
Investments and Advances In Real Estate Joint Ventures [Text Block] |
7. | Investment in and Advances to 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 unconsolidated joint venture investments for which the Company held an ownership interest at December 31, 2018 and 2017 (in millions, except number of properties):
|  |  |  |  |  | The Company's Investment |
|  | Ownership |  |  | As of December 31, |
Joint Venture |  | Interest |  |  | 2018 |  |  | 2017 |
Prudential Investment Program (“KimPru” and “KimPru II”) (1) (2) (3) |  |  | 15.0% |  |  | $ | 175.2 |  |  | $ | 179.5 |
Kimco Income Opportunity Portfolio (“KIR”) (2) |  |  | 48.6% |  |  |  | 167.2 |  |  |  | 154.1 |
Canada Pension Plan Investment Board (“CPP”) (2) |  |  | 55.0% |  |  |  | 135.0 |  |  |  | 105.0 |
Other Joint Venture Programs (3) (4) |  |  | Various |  |  |  | 93.5 |  |  |  | 45.3 |
Total* |  |  |  |  |  | $ | 570.9 |  |  | $ | 483.9 |
* Representing 109 property interests and 23.2 million square feet of GLA, as of December 31, 2018, and 118 property interests and 23.5 million square feet of GLA, as of December 31, 2017.
( 1 ) | Represents four separate joint ventures, with four separate accounts managed by Prudential Global Investment Management, 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 ) | As of December 31, 2017, the Company had aggregate net deferred gains of $6.9 million relating to the disposal of operating properties prior to the adoption of ASU 2017 - 05. These deferred gains were included in the Company’s investment above, of which $5.1 million related to KimPru II and $1.8 million related to Other Joint Venture Programs. Upon adoption, the Company recorded a cumulative-effect adjustment of $6.9 million to its beginning retained earnings as of January 1, 2018 on the Company’s Consolidated Statements of Changes in Equity. See Footnote 1 to the Notes to the Company’s Consolidated Financial Statements for further detail and discussion.
KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued
( 4 ) | During March 2018, the Company sold a portion of its investment in an operating property to its partner and amended the partnership agreement to provide for joint control of the entity. As a result of the amendment, the Company no longer consolidates the entity. As of the date of deconsolidation, the Company had an investment in this unconsolidated property of $62.4 million. See Footnote 5 to the Notes to the Company’s Consolidated Financial Statements for further detail and discussion.
The table below presents the Company’s share of net income for these investments which is included in Equity in income of joint ventures, net on the Company’s Consolidated Statements of Income (in millions):
|  | Year Ended December 31, |
|  | 201 8 |  |  | 201 7 |  |  | 2016 |
KimPru and KimPru II |  | $ | 15.2 |  |  | $ | 13.0 |  |  | $ | 16.4 |
KIR |  |  | 38.7 |  |  |  | 36.7 |  |  |  | 44.0 |
CPP |  |  | 5.1 |  |  |  | 7.2 |  |  |  | 7.7 |
Other Joint Venture Programs (1) (2) (3) (4) |  |  | 12.6 |  |  |  | 3.9 |  |  |  | 150.6 |
Total |  | $ | 71.6 |  |  | $ | 60.8 |  |  | $ | 218.7 |
( 1 ) | During the year ended December 31, 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. This distribution was in excess of the Company’s carrying basis in this joint venture investment and to that extent was recognized as income.
( 2 ) | During the year ended December 31, 2018, a joint venture recognized an impairment charge related to the pending foreclosure of a property, of which the Company’s share was $5.2 million.
( 3 ) | During the year ended December 31, 2017, the Company recognized a cumulative foreign currency translation loss of $4.8 million due to the substantial liquidation of the Company’s investments in Canada during 2017.
( 4 ) | During the year ended December 31, 2017, a joint venture recognized an impairment charge related to the pending sale of a property, of which the Company’s share was $3.4 million.
During 2018, certain of the Company’s real estate joint ventures disposed of 11 operating properties, in separate transactions, for an aggregate sales price of $213.5 million. These transactions resulted in an aggregate net gain to the Company of $18.5 million, for the year ended December 31, 2018. During 2017, certain of the Company’s real estate joint ventures disposed of or transferred interest to joint venture partners in 13 operating properties and a portion of one property, in separate transactions, for an aggregate sales price of $180.8 million. These transactions resulted in an aggregate net gain to the Company of $7.5 million, for the year ended December 31, 2017. In addition, during 2017, the Company acquired a controlling interest in three operating properties from certain joint ventures, in separate transactions, with an aggregate gross fair value of $320.1 million. See Footnote 3 of the Notes to Consolidated Financial Statements for the operating properties acquired by the Company. During 2016, certain of the Company’s real estate joint ventures disposed of or transferred interest to joint venture partners in 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 a controlling interest in nine operating properties and one development project from certain joint ventures, in separate transactions, with an aggregate gross fair value of $590.1 million. The table below presents debt balances within the Company’s unconsolidated joint venture investments for which the Company held noncontrolling ownership interests at December 31, 2018 and 2017 (dollars in millions):
|  | December 31, 2018 |  |  | December 31, 2017 |
Joint Venture |  | Mortgages and Notes Payable, Net |  |  | Weighted Average Interest Rate |  |  | Weighted Average Remaining Term (months)* |  |  | Mortgages and Notes Payable , N et |  |  | Weighted Average Interest Rate |  |  | Weighted Average Remaining Term (months)* |
KimPru and KimPru II |  | $ | 572.6 |  |  |  | 4.29 | % |  |  | 49.0 |  |  | $ | 625.7 |  |  |  | 3.59 | % |  |  | 59.8 |
KIR |  |  | 651.4 |  |  |  | 4.43 | % |  |  | 40.4 |  |  |  | 702.0 |  |  |  | 4.60 | % |  |  | 47.5 |
CPP |  |  | 84.4 |  |  |  | 3.85 | % |  |  | 54.0 |  |  |  | 84.9 |  |  |  | 2.91 | % |  |  | 4.0 |
Other Joint Venture Programs |  |  | 474.2 |  |  |  | 4.26 | % |  |  | 78.6 |  |  |  | 287.6 |  |  |  | 4.41 | % |  |  | 27.2 |
Total |  | $ | 1,782.6 |  |  |  |  |  |  |  |  |  |  | $ | 1,700.2 |  |  |  |  |  |  |  |  |
* Average remaining term includes extensions KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, continued Summarized financial information for the Company’s investment in and advances to real estate joint ventures is as follows (in millions):
|  | December 31, |
|  | 201 8 |  |  | 201 7 |
Assets: |  |  |  |  |  |  |  |
Real estate, net |  | $ | 3,574.1 |  |  | $ | 3,402.1 |
Other assets |  |  | 227.0 |  |  |  | 208.9 |
|  | $ | 3,801.1 |  |  | $ | 3,611.0 |
Liabilities and Partners’/Members’ Capital: |  |  |  |  |  |  |  |
Notes payable, net |  | $ | 272.7 |  |  | $ | 233.1 |
Mortgages payable, net |  |  | 1,509.9 |  |  |  | 1,467.1 |
Other liabilities |  |  | 62.4 |  |  |  | 52.5 |
Noncontrolling interests |  |  | 16.8 |  |  |  | 15.5 |
Partners’/Members’ capital |  |  | 1,939.3 |  |  |  | 1,842.8 |
|  | $ | 3,801.1 |  |  | $ | 3,611.0 |
|  | Year Ended December 31, |
|  | 201 8 |  |  | 201 7 |  |  | 201 6 |
Revenues |  | $ | 506.3 |  |  | $ | 516.0 |  |  | $ | 597.5 |
Operating expenses |  |  | (146.1 | ) |  |  | (150.7 | ) |  |  | (178.1 | )
Impairment charges |  |  | (20.7 | ) |  |  | (12.9 | ) |  |  | (38.6 | )
Depreciation and amortization |  |  | (122.5 | ) |  |  | (116.1 | ) |  |  | (138.1 | )
Gain on sale of operating properties |  |  | 60.3 |  |  |  | 26.0 |  |  |  | 296.2 |
Interest expense |  |  | (80.1 | ) |  |  | (81.9 | ) |  |  | (117.3 | )
Other (expense)/income, net |  |  | (4.4 | ) |  |  | (3.0 | ) |  |  | 20.1 |
Net income |  | $ | 192.8 |  |  | $ | 177.4 |  |  | $ | 441.7 |
Other liabilities included in the Company’s accompanying Consolidated Balance Sheets include accounts with certain real estate joint ventures totaling $2.5 million and $2.1 million at December 31, 2018 and 2017, 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, 2018 and 2017, the Company’s carrying value in these investments was $570.9 million and $483.9 million, respectively.

X
- Definition Disclosure about investments and advances in real estate joint ventures. + References No definition available. + Details
Name: | kim_InvestmentsAndAdvancesInRealEstateJointVenturesTextBlock
Namespace Prefix: | kim_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration