Investments 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 September 30, 2016 and December 31, 2015 (in millions, except number of properties):

	As of September 30, 2016											As of December 31, 2015
Venture	Ownership Interest			Number of Properties		GLA		Gross Real Estate		The Company's Investment		Ownership Interest			Number of Properties		GLA		Gross Real Estate		The Company's Investment
Prudential Investment Program (“KimPru” and “KimPru II”) (1) (2)		15.0	%		50		9.2	$	2,482.5	$	163.5		15.0	%		53		9.6	$	2,531.6	$	175.5
Kimco Income Opportunity Portfolio (“KIR”) (2)		48.6	%		46		10.6		1,421.6		136.0		48.6	%		47		10.8		1,422.8		131.0
Canada Pension Plan Investment Board (“CPP”) (2)		55.0	%		5		1.5		306.3		95.8		55.0	%		7		2.4		524.1		195.6
Other Institutional Programs (2)		Various			2		0.3		117.9		0.4		Various			9		1.5		301.5		5.2
Other Joint Venture Programs		Various			38		5.3		765.7		77.9		Various			40		5.2		782.8		64.0
Canadian Properties		50	%		1		0.3		17.6		4.2		Various			35		5.9		695.3		171.3
Total					142		27.2	$	5,111.6	$	477.8					191		35.4	$	6,258.1	$	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.

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 Operations for the three and nine months ended September 30, 2016 and 2015 (in millions):

	Three Months Ended September 30,						Nine Months Ended September 30,

	201 6			2015			2016		2015
KimPru and KimPru II (1) (2)	$	2.2		$	(0.2	)	$	7.5	$	3.3
KIR (1)		7.9			8.5			27.4		31.6
CPP (1)		1.3			2.2			6.2		7.1
Other Institutional Programs (1)		0.3			0.3			0.9		1.5
Other Joint Venture Programs (1) (3) (4) (5)		(1.6	)		(4.7	)		2.7		12.2
Canadian Properties (1)		1.4			4.8			145.5		75.1
Total	$	11.5		$	10.9		$	190.2	$	130.8

(1)

Amounts include impairments and gains on sale of real estate properties and ownership interests in joint ventures, see table below.

(2)

During the nine months ended September 30, 2016 and 2015, KimPru recognized impairment charges related to the pending disposition of one and three operating properties, respectively, of which the Company’s share of these impairment charges were $0.8 million and $2.8 million, respectively.

(3)

During the nine months ended September 30, 2016, a joint venture recognized an impairment charge related to the pending sale of a property, of which the Company’s share was $2.4 million.

(4)

During 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 nine months ended September 30, 2015.

(5)

During the nine months ended September 30, 2015, three joint ventures in which the Company holds noncontrolling interests recognized impairment charges relating to the pending sale of two properties and the pending foreclosure of one property. The Company’s share of these impairment charges was $9.8 million, before income tax benefit.

The following tables provide a summary of properties and land parcels disposed of through the Company’s real estate joint ventures during the nine months ended September 30, 2016 and 2015. These transactions resulted in an aggregate net gain to the Company of $143.3 million and $61.7 million, before income taxes, for the nine months ended September 30, 2016 and 2015, respectively, and are included in Equity in income of joint ventures, net on the Company’s Condensed Consolidated Statements of Operations:

	Nine Months Ended September 30, 2016
	Number of properties		Number of land parcels		Aggregate sales price (in millions)		Net gain, before income taxes (in millions)
KimPru and KimPru II		1		-	$	16.5	$	0.4
KIR		1		-		23.6		4.6
CPP (1)		2		-		299.2		-
Other Institutional Programs (2)		6		-		189.8		0.4
Other Joint Venture Programs		2		-		21.6		2.4
Canadian Properties		34		-		894.7		135.5
Total		46		-	$	1,445.4	$	143.3

(1)

In April 2016, the Company acquired its partner’s interest in an operating property and a development project for a gross purchase price of $299.2 million, including the assumption of $100.0 million in mortgage debt, which encumbered the operating property.

(2)

The Company acquired the remaining interest in five of these properties during the nine months ended September 30, 2016 (see Footnote 2).

	Nine Months Ended September 30, 2015
	Number of properties		Number of land parcels		Aggregate sales price (in millions)		Net gain /(impairment) , before income taxes (in millions)
KimPru and KimPru II		5		1	$	84.0	$	(0.8	)
KIR		4		-		72.6		9.0
Other Joint Venture Programs (1)		10		9		139.9		(1.1	)
Canadian Properties		4		1		204.2		54.6
Total		23		11	$	500.7	$	61.7

(1)

The Company acquired the remaining interest in two of these properties during the nine months ended September 30, 2015.

The table below presents debt balances within the Company’s unconsolidated joint venture investments for which the Company held noncontrolling ownership interests at September 30, 2016 and December 31, 2015 (dollars in millions):

	As of September 30 , 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	$	791.5		3.36	%		56.4	$	777.1		5.54	%		12.6
KIR		776.2		4.69	%		55.4		811.6		4.64	%		62.3
CPP		84.5		2.08	%		19.0		109.9		5.25	%		3.5
Other Institutional Programs		94.6		4.07	%		24.3		218.5		4.92	%		20.5
Other Joint Venture Programs		535.3		5.56	%		28.0		540.7		5.61	%		36.1
Canadian Properties		7.8		4.70	%		12.2		341.3		4.64	%		56.4
Total	$	2,289.9						$	2,799.1

* Average Remaining Term includes extension options.