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Investments in and Advances to Real Estate Joint Ventures
 6 Months Ended
Jun. 30, 2024
Notes To Financial Statements [Abstract]  
Investments and Advances In Real Estate Joint Ventures

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 Company manages certain of these joint venture investments and, where applicable, earns acquisition fees, leasing commissions, property management fees, asset management fees and construction management fees. The table below presents unconsolidated joint venture investments for which the Company held an ownership interest at June 30, 2024 and December 31, 2023 (dollars in millions):

 

 

Noncontrolling
Ownership Interest

 

The Company’s Investment

 

Joint Venture

 

As of June 30, 2024

 

June 30, 2024

 

 

December 31, 2023

 

Prudential Investment Program

 

15.0%

 

$

133.7

 

 

$

138.7

 

Kimco Income Opportunity Portfolio (“KIR”)

 

52.1%

 

 

287.1

 

 

 

286.3

 

R2G Venture LLC (“R2G”) (1)

 

51.5%

 

 

418.2

 

 

 

-

 

Canada Pension Plan Investment Board (“CPP”)

 

55.0%

 

 

203.9

 

 

 

204.6

 

Other Institutional Joint Ventures

 

Various

 

 

242.6

 

 

 

247.5

 

Other Joint Venture Programs (2)

 

Various

 

 

215.8

 

 

 

210.7

 

Total*

 

 

 

$

1,501.3

 

 

$

1,087.8

 

 

* Represents 116 property interests, 48 other property interests and 24.8 million square feet of GLA, as of June 30, 2024, and 104 property interests and 21.1 million square feet of GLA, as of December 31, 2023.

(1)
In connection with the RPT Merger, the Company acquired ownership in an unconsolidated joint venture with an affiliate of GIC Private Limited, which has a provisional fair market value of $425.9 million at the time of Merger, representing 13 property interests.
(2)
In connection with the RPT Merger, the Company acquired ownership in an unconsolidated joint venture, which has a provisional fair market value of $7.4 million at the time of Merger, representing 49 other property interests.

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 six months ended June 30, 2024 and 2023 (in millions):

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

Joint Venture

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Prudential Investment Program

 

$

4.1

 

 

$

2.2

 

 

$

6.4

 

 

$

12.1

 

KIR

 

 

8.7

 

 

 

8.5

 

 

 

18.4

 

 

 

17.8

 

R2G

 

2.5

 

 

 

-

 

 

4.2

 

 

 

-

 

CPP

 

 

2.4

 

 

 

2.7

 

 

 

4.6

 

 

 

5.4

 

Other Institutional Joint Ventures

 

 

1.0

 

 

 

0.8

 

 

 

2.4

 

 

 

1.5

 

Other Joint Venture Programs

 

 

2.8

 

 

 

2.9

 

 

 

6.4

 

 

 

4.5

 

Total

 

$

21.5

 

 

$

17.1

 

 

$

42.4

 

 

$

41.3

 

 

During the six months ended June 30, 2024, certain of the Company’s real estate joint ventures disposed of an operating property and other property interest, in separate transactions, for an aggregate sales price of $19.2 million. These transactions resulted in an aggregate net gain to the Company of $1.4 million for the six months ended June 30, 2024.

During the six months ended June 30, 2023, the Company acquired the remaining 85% interest in three operating properties from Prudential Investment Program, in separate transactions, with an aggregate gross fair value of $150.7 million. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and, as a result, recognized net gains on change in control of interests of $7.7 million, in aggregate, resulting from the fair value adjustments associated with the Company’s previously held equity interests. See Footnote 4 of the Notes to Condensed Consolidated Financial Statements for the operating properties acquired by the Company.

 

The table below presents debt balances within the Company’s unconsolidated joint venture investments for which the Company held noncontrolling ownership interests at June 30, 2024 and December 31, 2023 (dollars in millions):

 

 

As of June 30, 2024

 

 

As of December 31, 2023

 

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

 

$

269.9

 

 

 

6.01

%

 

 

25.7

 

 

$

291.6

 

 

 

6.00

%

 

 

24.6

 

KIR

 

 

273.6

 

 

 

5.82

%

 

 

33.2

 

 

 

273.4

 

 

 

5.82

%

 

 

39.2

 

R2G (1)

 

 

67.7

 

 

 

2.90

%

 

 

80.7

 

 

 

-

 

 

 

-

 

 

 

-

 

CPP

 

 

81.3

 

 

 

5.12

%

 

 

25.1

 

 

 

81.9

 

 

 

5.12

%

 

 

31.0

 

Other Institutional Joint Ventures

 

 

234.4

 

 

 

5.76

%

 

 

29.7

 

 

 

234.1

 

 

 

5.76

%

 

 

35.7

 

Other Joint Venture Programs (2)

 

 

550.0

 

 

 

5.07

%

 

 

45.5

 

 

 

367.9

 

 

 

4.44

%

 

 

59.6

 

Total

 

$

1,476.9

 

 

 

 

 

 

 

 

$

1,248.9

 

 

 

 

 

 

 

 

* Includes extension options

(1)
In connection with the RPT Merger, the Company acquired an ownership interest in this joint venture, which had aggregate secured debt of $66.7 million (including a fair market value adjustment of $14.4 million).
(2)
In connection with the RPT Merger, the Company acquired an ownership interest in a joint venture, which had aggregate secured debt of $187.1 million (including a fair market value adjustment of $3.2 million).