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Note 5 - Investments in and Advances to Real Estate Joint Ventures

3 Months Ended

Mar. 31, 2024

Investments and Advances In Real Estate Joint Ventures [Text Block]

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 March 31, 2024 and December 31, 2023 (dollars in millions):

	Noncontrolling Ownership Interest		The Company’s Investment
Joint Venture	As of March 31, 2024		March 31, 2024		December 31, 2023
Prudential Investment Program		15.0%	$	134.7	$	138.7
Kimco Income Opportunity Portfolio (“KIR”)		52.1%		287.4		286.3
R2G Venture LLC (“R2G”) (1)		51.5%		425.6		-
Canada Pension Plan Investment Board (“CPP”)		55.0%		205.5		204.6
Other Institutional Joint Ventures	Various			245.0		247.5
Other Joint Venture Programs (2)	Various			218.7		210.7
Total*			$	1,516.9	$	1,087.8

* Representing 117 property interests, 48 other property interests and 25.0 million square feet of GLA, as of March 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 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 Operations for the three months ended March 31, 2024 and 2023 (in millions):

	Three Months Ended March 31,
Joint Venture	2024		2023
Prudential Investment Program	$	2.3	$	9.8
KIR		9.7		9.3
R2G		1.7		-
CPP		2.1		2.7
Other Institutional Joint Ventures		1.4		0.7
Other Joint Venture Programs		3.7		1.7
Total	$	20.9	$	24.2

During the three months ended March 31, 2024, a real estate joint venture disposed of an other property interest for a sales price of $1.8 million. This transaction resulted in no gain or loss to the Company during the three months ended March 31, 2024.

During the three months ended March 31, 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 March 31, 2024 and December 31, 2023 (dollars in millions):

	As of March 31, 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	$	270.9		5.91	%		21.4	$	291.6		6.00	%		24.6
KIR		273.5		5.82	%		36.2		273.4		5.82	%		39.2
R2G (1)		67.2		2.90	%		83.7		-		-			-
CPP		81.6		5.12	%		28.0		81.9		5.12	%		31.0
Other Institutional Joint Ventures		234.3		5.76	%		32.7		234.1		5.76	%		35.7
Other Joint Venture Programs (2)		552.9		5.01	%		47.9		367.9		4.44	%		59.6
Total	$	1,480.4						$	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).