Investment In and Advances to Real Estate Joint Ventures

12 Months Ended

Dec. 31, 2024

Notes To Financial Statements [Abstract]

Investment in and Advances to Real Estate Joint Ventures

Investment 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 December 31, 2024 and 2023 (in millions, except number of properties):


	Noncontrolling	The Company's Investment
	Ownership Interest	December 31,
Joint Venture	December 31, 2024	2024		2023
Prudential Investment Program	15.0%	$	133.3	$	138.7
Kimco Income Opportunity Portfolio (“KIR”)	52.1%		289.1		286.3
R2G Venture LLC (“R2G”) (1)	51.5%		411.8		-
Canada Pension Plan Investment Board (“CPP”)	55.0%		202.8		204.6
Other Institutional Joint Ventures	Various		237.7		247.5
Other Joint Venture Programs (2)	Various		213.0		210.7
Total*		$	1,487.7	$	1,087.8

* Representing 116 property interests, 48 other property interests and 25.1 million square feet of GLA, as of December 31, 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 had a 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 had a 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 Consolidated Statements of Income (in millions):


	Year Ended December 31,
	2024		2023		2022
Prudential Investment Program (1)	$	11.9	$	16.4	$	9.6
KIR		36.6		34.7		70.3
R2G		9.0		-		-
CPP		9.9		8.7		10.6
Other Institutional Joint Ventures		3.7		2.6		7.0
Other Joint Venture Programs		12.7		9.9		12.0
Total	$	83.8	$	72.3	$	109.5

(1)

During 2022, the Prudential Investment Program recognized an impairment charge on a property of $15.1 million, of which the Company’s share was $2.3 million.

During 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 year ended December 31, 2024.

During 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 Consolidated Financial Statements for the operating properties acquired by the Company.

In addition, during 2023, certain of the Company’s real estate joint ventures disposed of four properties and a parcel, in separate transactions, for an aggregate sales price of $132.3 million. These transactions resulted in an aggregate net gain to the Company of $0.3 million for the year ended December 31, 2023.

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, 2024 and 2023 (dollars in millions):


	December 31, 2024							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	$	268.5		5.47	%		19.6	$	291.6		6.00	%		24.6
KIR		273.9		5.82	%		27.2		273.4		5.82	%		39.2
R2G (1)		68.7		2.90	%		74.6		-		-			-
CPP		80.6		4.88	%		19.0		81.9		5.12	%		31.0
Other Institutional Joint Ventures		234.7		5.76	%		23.7		234.1		5.76	%		35.7
Other Joint Venture Programs (2)		547.3		4.98	%		40.8		367.9		4.44	%		59.6
Total	$	1,473.7						$	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).

Unconsolidated Significant Subsidiaries

The Company holds a 52.1% noncontrolling limited partnership interest in KIR, which the Company determined under Rule 4-08(g) of Regulation S-X was significant under the income and revenue tests for the year ended December 31, 2022 and requires summarized financial information. The Company has a master management agreement whereby the Company performs services for fees relating to the management, operation, supervision and maintenance of the KIR joint venture properties. The following table shows summarized financial information for KIR, as follows (in millions):


	December 31,
	2024		2023
Assets:
Real estate, net	$	659.3	$	669.2
Other assets, net		90.8		67.5
Total Assets	$	750.1	$	736.7
Liabilities and Members’ Capital:
Notes payable, net	$	273.9	$	273.4
Other liabilities		14.1		15.9
Accumulated other comprehensive income		4.2		0.6
Members’ capital		457.9		446.8
Total Liabilities and Members’ Capital	$	750.1	$	736.7


	Year Ended December 31,
	2024			2023			2022
Revenues, net	$	179.3		$	174.1		$	182.5
Operating expenses		(47.2	)		(46.7	)		(48.2	)
Depreciation and amortization		(40.3	)		(38.5	)		(39.4	)
Gain on sale of properties		-			-			76.2
Interest expense		(16.8	)		(16.8	)		(15.5	)
Other expense, net		-			(0.6	)		(1.2	)
Net income	$	75.0		$	71.5		$	154.4

Summarized financial information for the Company’s investment in and advances to all other real estate joint ventures is as follows (in millions):


	December 31,
	2024		2023
Assets:
Real estate, net	$	4,260.0	$	3,156.2
Other assets, net		231.4		251.6
Total Assets	$	4,491.4	$	3,407.8

Liabilities and Members’ Capital:
Notes payable, net	$	309.2	$	159.9
Mortgages payable, net		890.6		815.6
Other liabilities		119.4		70.9
Accumulated other comprehensive income		2.4		5.1
Noncontrolling interests		-		34.4
Members’ capital		3,169.8		2,321.9
Total Liabilities and Members’ Capital	$	4,491.4	$	3,407.8


	Year Ended December 31,
	2024			2023			2022
Revenues, net	$	498.2		$	378.4		$	395.2
Operating expenses		(161.2	)		(126.6	)		(126.9	)
Impairment charges		(0.1	)		(17.8	)		(21.1	)
Depreciation and amortization		(163.2	)		(108.2	)		(119.0	)
Gain on sale of properties		7.7			48.0			24.7
Interest expense		(70.7	)		(55.4	)		(38.6	)
Other income/(expense), net		3.3			(6.4	)		(6.2	)
Net income	$	114.0		$	112.0		$	108.1

Other liabilities included in the Company’s accompanying Consolidated Balance Sheets include investments in certain real estate joint ventures totaling $5.1 million at December 31, 2024 and 2023. The Company has 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, 2024 and 2023, the Company’s carrying value in these investments was $1.5 billion and $1.1 billion, respectively.