Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 19, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | KIMCO REALTY CORP | |
Entity Central Index Key | 879,101 | |
Trading Symbol | kim | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 425,025,868 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Operating real estate, net of accumulated depreciation of $2,220,455 and $2,115,320, respectively | $ 9,392,984 | $ 9,274,299 |
Investments and advances in real estate joint ventures | 477,800 | 742,559 |
Real estate under development | 289,101 | 179,190 |
Other real estate investments | 205,552 | 215,836 |
Mortgages and other financing receivables | 23,537 | 23,824 |
Cash and cash equivalents | 170,545 | 189,534 |
Marketable securities | 8,141 | 7,565 |
Accounts and notes receivable, net | 171,474 | 175,252 |
Other assets | 466,968 | 536,112 |
Total assets | 11,206,102 | 11,344,171 |
Liabilities: | ||
Notes payable | 3,786,921 | 3,761,328 |
Mortgages payable | 1,213,120 | 1,614,982 |
Declaration of dividends paid in succeeding period | 118,136 | 115,182 |
Other liabilities | 569,107 | 584,019 |
Total liabilities | 5,687,284 | 6,075,511 |
Redeemable noncontrolling interests | 86,856 | 86,709 |
Stockholders' equity: | ||
Preferred stock, $1.00 par value, authorized 6,029,100 shares 32,000 shares issued and outstanding (in series) Aggregate liquidation preference $800,000 | 32 | 32 |
Common stock, $.01 par value, authorized 750,000,000 shares issued and outstanding 425,013,233 and 413,430,756 shares, respectively | 4,250 | 4,134 |
Paid-in capital | 5,919,856 | 5,608,881 |
Cumulative distributions in excess of net income | (628,826) | (572,335) |
Accumulated other comprehensive income | 6,145 | 5,588 |
Total stockholders' equity | 5,301,457 | 5,046,300 |
Noncontrolling interests | 130,505 | 135,651 |
Total equity | 5,431,962 | 5,181,951 |
Total liabilities and equity | $ 11,206,102 | $ 11,344,171 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Operating real estate, accumulated depreciation | $ 2,220,455 | $ 2,115,320 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 6,029,100 | 6,029,100 |
Preferred stock, shares issued (in shares) | 32,000 | 32,000 |
Preferred stock, shares outstanding (in shares) | 32,000 | 32,000 |
Preferred stock, aggregate liquidation preference | $ 800,000 | $ 800,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock,shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 425,013,233 | 413,430,756 |
Common stock,shares outstanding (in shares) | 425,013,233 | 413,430,756 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Continuing Operations [Member] | ||||
Operating expenses | ||||
Impairment charges | $ 10,073 | $ 6,058 | $ 68,126 | $ 27,908 |
Joint Ventures [Member] | ||||
Other income/(expense) | ||||
Equity in income of joint ventures, net | 11,537 | 10,894 | 190,155 | 130,808 |
Other Real Estate Investments [Member] | ||||
Operating expenses | ||||
Impairment charges | 5,300 | |||
Other income/(expense) | ||||
Equity in income of joint ventures, net | 3,774 | 11,319 | 22,532 | 31,236 |
Revenues from rental properties | 279,286 | 283,387 | 859,492 | 847,973 |
Management and other fee income | 5,790 | 4,995 | 14,274 | 17,926 |
Total revenues | 285,076 | 288,382 | 873,766 | 865,899 |
Rent | 2,728 | 2,913 | 8,274 | 9,479 |
Real estate taxes | 37,703 | 36,571 | 107,966 | 109,343 |
Operating and maintenance | 32,590 | 34,915 | 100,366 | 104,926 |
General and administrative expenses | 27,983 | 27,310 | 89,840 | 89,322 |
Provision for doubtful accounts | 1,092 | 1,920 | 5,752 | 5,324 |
Impairment charges | 68,126 | 27,989 | ||
Depreciation and amortization | 96,827 | 103,708 | 264,436 | 258,432 |
Total operating expenses | 208,996 | 213,395 | 644,760 | 604,734 |
Operating income | 76,080 | 74,987 | 229,006 | 261,165 |
Mortgage financing income | 408 | 445 | 1,232 | 2,497 |
Interest, dividends and other investment income | 477 | 5,692 | 827 | 38,011 |
Other income, net | 3,473 | 615 | 1,117 | 100 |
Interest expense | (46,552) | (54,031) | (149,482) | (162,739) |
Early extinguishment of debt charges | (45,674) | (45,674) | ||
Income/(loss) from continuing operations before income taxes, equity in income of joint ventures, gain on change in control of interests and equity in income of other real estate investments | (11,788) | 27,708 | 37,026 | 139,034 |
Provision for income taxes, net | (61,426) | (2,844) | (73,292) | (11,933) |
Equity in income of joint ventures, net | 11,500 | 10,900 | 190,155 | 130,808 |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | 6,584 | 6,342 | 53,096 | 146,143 |
Income/(loss) from continuing operations | (51,319) | 53,419 | 229,517 | 435,288 |
Discontinued operations | ||||
Loss from discontinued operating properties, net of tax | (15) | |||
Impairment/loss on operating properties, net of tax | (60) | |||
Loss from discontinued operations | (75) | |||
Gain on sale of operating properties, net of tax | 9,771 | 27,665 | 75,935 | 86,219 |
Net income/(loss) | (41,548) | 81,084 | 305,452 | 521,432 |
Net income attributable to noncontrolling interests | (1,997) | (3,512) | (4,875) | (6,518) |
Net income/(loss) attributable to the Company | (43,545) | 77,572 | 300,577 | 514,914 |
Preferred dividends | (11,555) | (14,573) | (34,665) | (43,719) |
Net income/(loss) available to the Company's common shareholders | $ (55,100) | $ 62,999 | $ 265,912 | $ 471,195 |
-Basic (in dollars per share) | $ (0.13) | $ 0.15 | $ 0.63 | $ 1.14 |
-Diluted (in dollars per share) | (0.13) | 0.15 | 0.63 | 1.14 |
Net income/(loss) attributable to the Company: | ||||
-Basic (in dollars per share) | (0.13) | 0.15 | 0.63 | 1.14 |
-Diluted (in dollars per share) | $ (0.13) | $ 0.15 | $ 0.63 | $ 1.14 |
Weighted average shares: | ||||
-Basic (in shares) | 420,073 | 411,487 | 416,829 | 411,202 |
-Diluted (in shares) | 420,073 | 412,686 | 418,234 | 413,262 |
Income/(loss) from continuing operations | $ (55,100) | $ 62,999 | $ 265,912 | $ 471,270 |
Loss from discontinued operations | (75) | |||
Net income/(loss) | $ (55,100) | $ 62,999 | $ 265,912 | $ 471,195 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest Rate Swap [Member] | ||||
Other comprehensive income: | ||||
Change in unrealized loss on interest rate swaps | $ 327 | $ (530) | $ (432) | $ (475) |
Net income | (41,548) | 81,084 | 305,452 | 521,432 |
Change in unrealized gain on marketable securities | 51 | (5,871) | 18 | (44,418) |
Change in unrealized loss on interest rate swaps | (432) | (475) | ||
Change in foreign currency translation adjustment, net | (1,383) | (6,437) | 971 | (14,973) |
Other comprehensive income/(loss): | (1,005) | (12,838) | 557 | (59,866) |
Comprehensive income/(loss) | (42,553) | 68,246 | 306,009 | 461,566 |
Comprehensive income attributable to noncontrolling interests | (1,997) | (3,512) | (4,875) | (6,518) |
Comprehensive income/(loss) attributable to the Company | $ (44,550) | $ 64,734 | $ 301,134 | $ 455,048 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at Dec. 31, 2014 | $ (1,006,578) | $ 45,122 | $ 102 | $ 4,118 | $ 5,732,021 | $ 4,774,785 | $ 126,980 | $ 4,901,765 |
Balance (in shares) at Dec. 31, 2014 | 102 | 411,820 | ||||||
Contributions from noncontrolling interests | 66,163 | 66,163 | ||||||
Net income | 514,914 | 514,914 | 6,518 | 521,432 | ||||
Change in unrealized gain on marketable securities | (44,418) | (44,418) | (44,418) | |||||
Change in unrealized loss on interest rate swaps | (475) | (475) | (475) | |||||
Change in foreign currency translation adjustment, net | (14,973) | (14,973) | (14,973) | |||||
Redeemable noncontrolling interests income | (5,822) | (5,822) | ||||||
Dividends | (341,082) | (341,082) | (341,082) | |||||
Distributions to noncontrolling interests | (6,706) | (6,706) | ||||||
Issuance of common stock, net (in shares) | 784 | |||||||
Issuance of common stock, net | $ 8 | 480 | 488 | 488 | ||||
Surrender of restricted stock (in shares) | (227) | |||||||
Surrender of restricted stock | $ (2) | (5,602) | (5,604) | (5,604) | ||||
Exercise of common stock options (in shares) | 846 | |||||||
Exercise of common stock options | $ 8 | 15,559 | 15,567 | 15,567 | ||||
Sale of interests in investments, net of tax of $16.0 million | 23,993 | 23,993 | 23,993 | |||||
Acquisition of noncontrolling interests | (6,437) | (6,437) | (25,189) | (31,626) | ||||
Amortization of equity awards | 10,956 | 10,956 | 10,956 | |||||
Balance at Sep. 30, 2015 | (832,746) | (14,744) | $ 102 | $ 4,132 | 5,770,970 | 4,927,714 | 161,944 | 5,089,658 |
Balance (in shares) at Sep. 30, 2015 | 102 | 413,223 | ||||||
Balance at Dec. 31, 2015 | (572,335) | 5,588 | $ 32 | $ 4,134 | 5,608,881 | 5,046,300 | 135,651 | 5,181,951 |
Balance (in shares) at Dec. 31, 2015 | 32 | 413,431 | ||||||
Contributions from noncontrolling interests | 507 | 507 | ||||||
Net income | 300,577 | 300,577 | 4,875 | 305,452 | ||||
Change in unrealized gain on marketable securities | 18 | 18 | 18 | |||||
Change in unrealized loss on interest rate swaps | (432) | (432) | (432) | |||||
Change in foreign currency translation adjustment, net | 971 | 971 | 971 | |||||
Redeemable noncontrolling interests income | (3,240) | (3,240) | ||||||
Dividends | (357,068) | (357,068) | (357,068) | |||||
Distributions to noncontrolling interests | (7,288) | (7,288) | ||||||
Issuance of common stock, net (in shares) | 10,701 | |||||||
Issuance of common stock, net | $ 107 | 285,757 | 285,864 | 285,864 | ||||
Surrender of restricted stock (in shares) | (270) | |||||||
Surrender of restricted stock | $ (3) | (6,901) | (6,904) | (6,904) | ||||
Exercise of common stock options (in shares) | 1,151 | |||||||
Exercise of common stock options | $ 12 | 20,732 | 20,744 | 20,744 | ||||
Amortization of equity awards | 11,387 | 11,387 | 11,387 | |||||
Balance at Sep. 30, 2016 | $ (628,826) | $ 6,145 | $ 32 | $ 4,250 | $ 5,919,856 | $ 5,301,457 | $ 130,505 | $ 5,431,962 |
Balance (in shares) at Sep. 30, 2016 | 32 | 425,013 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parentheticals) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Common Stock [Member] | ||
Dividends per common share (in dollars per share) | $ 0.765 | $ 0.72 |
Preferred Stock [Member] | Series H Preferred Stock [Member] | ||
Dividends per depository share (in dollars per share) | 1.2938 | |
Preferred Stock [Member] | Series I Preferred Stock [Member] | ||
Dividends per depository share (in dollars per share) | 1.125 | 1.125 |
Preferred Stock [Member] | Series J Preferred Stock [Member] | ||
Dividends per depository share (in dollars per share) | 1.0313 | 1.0313 |
Preferred Stock [Member] | Series K Preferred Stock [Member] | ||
Dividends per depository share (in dollars per share) | $ 1.0547 | $ 1.0547 |
Additional Paid-in Capital [Member] | ||
Sale of interests in investments, tax | $ 16 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flow from operating activities: | ||
Net income | $ 305,452,000 | $ 521,432,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 264,436,000 | 258,432,000 |
Asset Impairment Charges | 68,126,000 | 27,989,000 |
Deferred taxes | 56,143,000 | 4,716,000 |
Early extinguishment of debt charges | 45,674,000 | |
Equity award expense | 15,292,000 | 15,312,000 |
Gain on sale of operating properties | (81,873,000) | (88,497,000) |
Gain on sale of marketable securities | (38,488,000) | |
Gain on change in control of interests, net | (53,096,000) | (146,143,000) |
Equity in income of joint ventures, net | (190,155,000) | (130,808,000) |
Equity in income from other real estate investments, net | (22,532,000) | (31,236,000) |
Distributions from joint ventures and other real estate investments | 70,043,000 | 94,499,000 |
Change in accounts and notes receivable | 3,779,000 | (372,000) |
Change in accounts payable and accrued expenses | 23,931,000 | 38,703,000 |
Change in Canadian withholding tax receivable | (5,257,000) | (6,919,000) |
Change in other operating assets and liabilities | (55,437,000) | (55,978,000) |
Net cash flow provided by operating activities | 444,526,000 | 462,642,000 |
Cash flow from investing activities: | ||
Acquisition of operating real estate and other related net assets | (181,548,000) | (619,622,000) |
Improvements to operating real estate | (102,084,000) | (111,740,000) |
Acquisition of real estate under development | (51,588,000) | (3,074,000) |
Improvements to real estate under development | (42,042,000) | (8,922,000) |
Investment in marketable securities | (2,466,000) | (257,000) |
Proceeds from sale/repayments of marketable securities | 1,907,000 | 71,562,000 |
Investments and advances to real estate joint ventures | (50,058,000) | (87,953,000) |
Reimbursements of investments and advances to real estate joint ventures | 70,669,000 | 98,741,000 |
Distributions from liquidation of real estate joint ventures | 135,648,000 | 54,642,000 |
Return of investment from liquidation of real estate joint ventures | 190,102,000 | 26,114,000 |
Investment in other real estate investments | (233,000) | (545,000) |
Reimbursements of investments and advances to other real estate investments | 11,489,000 | 14,442,000 |
Collection of mortgage loans receivable | 688,000 | 52,963,000 |
Investment in other investments | (190,278,000) | |
Reimbursements of other investments | 500,000 | |
Proceeds from sale of operating properties | 262,708,000 | 238,444,000 |
Proceeds from sale of development properties | 4,551,000 | |
Net cash flow provided by/(used for) investing activities | 248,243,000 | (465,483,000) |
Cash flow from financing activities: | ||
Principal payments on debt, excluding normal amortization of rental property debt | (602,079,000) | (444,150,000) |
Principal payments on rental property debt | (15,316,000) | (22,452,000) |
Proceeds from unsecured revolving credit facility, net | 226,447,000 | 325,000,000 |
Proceeds from issuance of unsecured term loan/notes | 650,000,000 | 1,000,000,000 |
Repayments under unsecured term loan/notes | (861,850,000) | (600,000,000) |
Financing origination costs | (14,033,000) | (11,137,000) |
Payment of early extinguishment of debt charges | (45,674,000) | 0 |
Change in tenants' security deposits | 1,240,000 | 2,005,000 |
Contributions from noncontrolling interests | 106,154,000 | |
Redemption of noncontrolling interests | (3,190,000) | (33,810,000) |
Dividends paid | (354,112,000) | (340,745,000) |
Proceeds from issuance of stock, net | 306,809,000 | 15,567,000 |
Net cash flow used for financing activities | (711,758,000) | (3,568,000) |
Change in cash and cash equivalents | (18,989,000) | (6,409,000) |
Cash and cash equivalents, beginning of period | 189,534,000 | 187,322,000 |
Cash and cash equivalents, end of period | 170,545,000 | 180,913,000 |
Interest paid during the period including payment of early extinguishment of debt charges of $45,674 and $0, respectively (net of capitalized interest of $6,783, and $3,784, respectively) | 194,234,000 | 150,625,000 |
Income taxes paid during the period (net of refunds received of $86,100, and $0, respectively) | $ 34,296,000 | $ 21,681,000 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash paid for capitalized interest | $ 6,783,000 | $ 3,784,000 |
Debt charges, early extinguishment | 45,674,000 | 0 |
Refunds received | $ 86,100,000 | $ 0 |
Note 1 - Interim Financial Stat
Note 1 - Interim Financial Statements | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. Interim Financial Statements Principles of Consolidation - The accompanying Condensed Consolidated Financial Statements include the accounts of Kimco Realty Corporation and subsidiaries, (the “Company”). The Company’s subsidiaries include subsidiaries which are wholly-owned and all entities in which the Company has a controlling financial interest, including where the Company has been determined to be a primary beneficiary of a variable interest entity (“VIE”) in accordance with the Consolidation guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). All inter-company balances and transactions have been eliminated in consolidation. The information presented in the accompanying Condensed Consolidated Financial Statements is unaudited and reflects all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature. These Condensed Consolidated Financial Statements should be read in conjunction with the Company's 2015 Annual Report on Form 10-K for the year ended December 31, 2015 (the “10-K”), as certain disclosures in this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016, that would duplicate those included in the 10-K are not included in these Condensed Consolidated Financial Statements. Subsequent Events - The Company has evaluated subsequent events and transactions for potential recognition or disclosure in the condensed consolidated financial statements. Income Taxes - The Company elected status as a Real Estate Investment Trust (a “REIT”) for federal income tax purposes beginning in its taxable year ended December 31, 1991 and operates in a manner that enables the Company to maintain its status as a REIT. As a REIT, with respect to each taxable year, the Company must distribute at least 90 percent of its taxable income (excluding capital gain) and will not pay federal income taxes on the amount distributed to its shareholders. The Company is not generally subject to federal income taxes if it distributes 100 percent of its taxable income. Most states, where the Company holds investments in real estate, conform to the federal rules recognizing REITs. Certain subsidiaries have made a joint election with the Company to be treated as taxable REIT subsidiaries (“TRSs”), which permit the Company to engage in certain business activities which the REIT may not conduct directly. A TRS is subject to federal and state income taxes on its income, and the Company includes a provision for taxes in its condensed consolidated financial statements. The Company is subject to and also includes in its tax provision non-U.S. income taxes on certain investments located in jurisdictions outside the U.S. These investments are held by the Company at the REIT level and not in the Company’s taxable REIT subsidiaries. Accordingly, the Company does not expect a U.S. income tax impact associated with the repatriation of undistributed earnings from the Company’s foreign subsidiaries. Effective August 1, 2016, the Company merged Kimco Realty Services Inc. ("KRS"), a TRS, into a wholly-owned Limited Liability Company (“LLC”) of the Company and no longer operates as a TRS (the “Merger”). The Company analyzed the individual assets of KRS and determined that substantially all of KRS’s assets constitute real estate assets and investments that can be directly owned by the Company without adversely affecting the Company’s status as a REIT. Any non-REIT qualifying assets or activities were transferred to a newly formed TRS (see Footnote 15). Earnings Per Share - The following table sets forth the reconciliation of earnings and the weighted average number of shares used in the calculation of basic and diluted earnings per share (amounts presented in thousands except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Computation of Basic Earnings Per Share: Income/(loss) from continuing operations $ (51,319 ) $ 53,419 $ 229,517 $ 435,288 Gain on sale of operating properties, net of tax 9,771 27,665 75,935 86,219 Net income attributable to noncontrolling interests (1,997 ) (3,512 ) (4,875 ) (6,518 ) Preferred stock dividends (11,555 ) (14,573 ) (34,665 ) (43,719 ) Income/(loss) from continuing operations available to the common shareholders (55,100 ) 62,999 265,912 471,270 Earnings attributable to participating securities (502 ) (405 ) (1,493 ) (2,178 ) Income/(loss) from continuing operations attributable to common shareholders (55,602 ) 62,594 264,419 469,092 Loss from discontinued operations attributable to the Company - - - (75 ) Net income/(loss) attributable to the Company’s common shareholders for basic earnings per share $ (55,602 ) $ 62,594 $ 264,419 $ 469,017 Weighted average common shares outstanding – basic 420,073 411,487 416,829 411,202 Basic Earnings Per Share Attributable to the Company’s Common Shareholders: Income/(loss) from continuing operations $ (0.13 ) $ 0.15 $ 0.63 $ 1.14 Loss from discontinued operations - - - - Net income/(loss) $ (0.13 ) $ 0.15 $ 0.63 $ 1.14 Computation of Diluted Earnings Per Share: Income/(loss) from continuing operations attributable to common shareholders $ (55,602 ) $ 62,594 $ 264,419 $ 469,092 Loss from discontinued operations attributable to the Company - - - (75 ) Distributions on convertible units - - - 446 Net income/(loss) attributable to the Company’s common shareholders for diluted earnings per share $ (55,602 ) $ 62,594 $ 264,419 $ 469,463 Weighted average common shares outstanding – basic 420,073 411,487 416,829 411,202 Effect of dilutive securities (a): Equity awards - 1,199 1,405 1,337 Assumed conversion of convertible units - - - 723 Shares for diluted earnings per common share 420,073 412,686 418,234 413,262 Diluted Earnings Per Share Attributable to the Company’s Common Shareholders: Income/(loss) from continuing operations $ (0.13 ) $ 0.15 $ 0.63 $ 1.14 Loss from discontinued operations - - - - Net income/(loss) attributable to the Company $ (0.13 ) $ 0.15 $ 0.63 $ 1.14 (a) For the three and nine months ended September 30, 2016 and 2015, the effect of certain convertible units would have an anti-dilutive effect upon the calculation of Income/(loss) from continuing operations per share. Accordingly, the impact of such conversion has not been included in the determination of diluted earnings per share calculations. At September 30, 2016 and 2015, the Company had outstanding stock options that were not dilutive of 3,545,000 and 5,963,010, respectively. The Company's unvested restricted share awards and convertible units (the “Participating securities”) contain non-forfeitable rights to distributions or distribution equivalents. The impact of the Participating securities on earnings per share has been calculated using the two-class method whereby earnings are allocated to the Participating securities based on dividends declared and the Participating securities rights in undistributed earnings. New Accounting Pronouncements – In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), a consensus of the FASB’s Emerging Issues Task Force (“ASU 2016-15”). The new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. One identified cash flow issue relates to distributions received from equity method investees whereby the reporting entity should make an accounting policy election to classify distributions received from equity method investees using either the cumulative earnings approach or the nature of the distribution approach. Another issue relates to the classification of cash payments for debt prepayment or debt extinguishment costs. The standard is retrospectively effective for public companies on January 1, 2018, with early adoption permitted. The Company elected to early adopt ASU 2016-15 beginning in its quarter ended September 30, 2016. In connection with the adoption of ASU 2016-15 the Company made a policy election to classify distributions received from equity method investees using the cumulative earnings approach. This election did not have a material impact on the presentation in the Company’s Condensed Consolidated Statements of Cash Flows. During the quarter ended September 30, 2016, the Company incurred early extinguishment of debt charges and in accordance with the adoption of ASU 2016-15 has included these charges in cash flows used for financing activities on the Company’s Condensed Consolidated Statements of Cash Flows. The adoption of the remaining cash flow issues addressed in ASU 2016-15 did not have a material impact on the Company’s Condensed Consolidated Statements of Cash Flows. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). The update simplifies several aspects of accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods, early adoption is permitted. The adoption of ASU 2016-09 is not expected to have a material effect on the Company’s financial position and/or results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 supersedes the previous leases standard, Leases (Topic 840). The standard is effective for the Company on January 1, 2019, with early adoption permitted. The Company is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on the Company’s financial position and/or results of operations. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 focuses to minimize situations under previously existing guidance in which a reporting entity was required to consolidate another legal entity in which that reporting entity did not have: (1) the ability through contractual rights to act primarily on its own behalf; (2) ownership of the majority of the legal entity's voting rights; or (3) the exposure to a majority of the legal entity's economic benefits. ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Legal entities are subject to reevaluation under the revised consolidation model. ASU 2015-02 is effective for periods beginning after December 15, 2015. The adoption of ASU 2015-02 did not have a material effect on the Company’s financial position or results of operations. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter, early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. ASU 2014-09 was anticipated to be effective for the first interim period within annual reporting periods beginning after December 15, 2016, and early adoption was not permitted. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”), which delayed the effective date of ASU 2014-09 by one year making it effective for the first interim period within annual reporting periods beginning after December 15, 2017. Subsequently, in March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations”, which further clarifies the implementation guidance on principal versus agent considerations”, and in April 2016, the FASB issued ASU 2016-10, “Revenue from contracts with customers (Topic 606): Identifying performance obligations and licensing”, an update on identifying performance obligations and accounting for licenses of intellectual property. Additionally, in May 2016, the FASB issued ASU 2016-12, “Revenue from contracts with customers (Topic 606): Narrow-scope improvements and practical expedients”, which includes amendments for enhanced clarification of the guidance. Early adoption is permitted as of the original effective date. The Company is currently in the process of evaluating the impact the adoption of ASU 2014-09 will have on the Company’s financial position and/or results of operations. Re visions – In the fourth quarter of 2015, the Company changed the classification within the Company’s cash flow statement for certain transactions that occurred in the nine months ended September 30, 2015, involving the sale of equity interests in entities owning real estate. This change of $54.6 million was reclassified for the nine months ended September 30, 2015, for purposes of reflecting comparative periods. The Company believes the new classification is a more meaningful reflection of these transactions and changed the Company’s cash flow from the initially reported amounts to reduce Distributions from joint ventures and other real estate investments within its cash flow from operating activities and increase Distributions from liquidation of real estate joint ventures within its cash flow from investing activities by $54.6 million for the nine months ended September 30, 2015. |
Note 2 - Operating Property Act
Note 2 - Operating Property Activities | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 2. Operating Property Activities Acquisitions of Operating Real Estate - During the nine months ended September 30, 2016, the Company acquired the following properties, in separate transactions (in thousands): Purchase Price Property Name Location Month Acquired Cash * Debt Assumed Other ** Total GLA* ** Jericho Atrium Jericho, NY Apr-16 $ 29,750 $ - $ - $ 29,750 147 Oakwood Plaza Hollywood, FL (1) Apr-16 53,412 100,000 61,588 215,000 899 Webster Square North Nashua, NH Jul-16 8,200 - - 8,200 21 Gateway Plaza Mill Creek, WA (1) Jul-16 493 17,500 - 17,993 97 Kentlands Market Square Gaithersburg, MD Aug-16 61,826 33,174 - 95,000 221 GEPT Portfolio (4 properties) Various (1) Sep-16 79,974 76,989 10,882 167,845 681 $ 233,655 $ 227,663 $ 72,470 $ 533,788 2,066 * The Company utilized $66.0 million associated with Internal Revenue Code §1031 sales proceeds. ** Includes the Company’s previously held equity interest investment. *** Gross leasable area ("GLA") (1) The Company acquired from its partners their ownership interest in these properties that were held in joint ventures in which the Company had noncontrolling interests. The Company evaluated these transactions pursuant to the FASB’s Consolidation guidance and as a result, recognized gains on change in control of interests resulting from the fair value adjustments associated with the Company’s previously held equity interests, which are included in the purchase price above in Other. The Company’s previous ownership interests and gains on change in control of interests recognized as a result of these transactions are as follows (in millions): Property Name Previous Ownership Interest Gain on change in control of interests, net Oakwood Plaza 55.0 % $ 46.5 Gateway Plaza 15.0 % - GEPT Portfolio (4 properties) 15.0 % 6.6 $ 53.1 The purchase price for these acquisitions has been preliminarily allocated to real estate and related intangible assets acquired and liabilities assumed, as applicable, in accordance with our accounting policies for business combinations. The purchase price allocations and related accounting will be finalized upon completion of the Company’s valuation studies. Accordingly, the fair values allocated to these assets and liabilities are subject to revision. The Company records allocation adjustments, where applicable, when purchase price allocations are finalized. The preliminary allocations, allocation adjustments and revised allocations for properties acquired during the nine months ended September 30, 2016, are as follows (in thousands): Preliminary Allocation Allocation Adjustments (1) Revised Allocation a s of September 30, 2016 Land $ 144,368 $ (10,056 ) $ 134,312 Buildings 257,967 40,123 298,090 Above market leases 10,005 (2,254 ) 7,751 Below market leases (26,399 ) (2,705 ) (29,104 ) In-place leases 37,145 (1,490 ) 35,655 Building improvements 102,853 (21,200 ) 81,653 Tenant improvements 10,758 (1,724 ) 9,034 Mortgage fair value adjustment (3,143 ) (694 ) (3,837 ) Other assets 234 - 234 Net assets acquired $ 533,788 $ - $ 533,788 (1) In accordance with ASU 2015-16, which eliminated the requirement to restate prior period financial statements for measurement period adjustments relating to purchase price allocations, the Company adjusted the preliminary allocation amounts recorded for properties acquired during 2016. The impact of these allocation adjustments on the Company’s tangible and intangible assets and liabilities are reflected in the table above. The pro forma financial information set forth below is based upon the Company’s historical Condensed Consolidated Statements of Operations for the nine months ended September 30, 2016 and 2015, adjusted to give effect to properties acquired during the nine months ended September 30, 2016 and 2015, as if they were acquired at the beginning of 2015 and 2014, respectively. The pro forma financial information is presented for informational purposes only and may not be indicative of what actual results of income would have been, nor does it purport to represent the results of income for future periods. (Amounts presented in millions, except per share figures). Nine Months Ended September 30, 201 6 201 5 Revenues from rental property $ 878.2 $ 886.5 Net income $ 313.0 $ 538.2 Net income available to the Company’s common shareholders $ 273.5 $ 488.0 Net income available to the Company’s common shareholders per common share: Basic $ 0.65 $ 1.19 Diluted $ 0.65 $ 1.18 Revenues from rental properties and net income in the Company’s Condensed Consolidated Statements of Operations includes $12.1 million and $1.8 million of revenues and net income, respectively, from properties acquired during the nine months ended September 30, 2016. Dispositions and Assets Held for Sale – During the nine months ended September 30, 2016, the Company disposed of 26 consolidated operating properties and one out-parcel, in separate transactions, for an aggregate sales price of $334.9 million. These transactions resulted in (i) an aggregate gain of $75.9 million, after income tax expense, and (ii) aggregate impairment charges of $7.8 million, before noncontrolling interest expense of $0.2 million. At September 30, 2016, the Company had three properties classified as held-for-sale at a carrying amount of $13.4 million, net of accumulated depreciation of $11.8 million, which are included in Other assets on the Company’s Condensed Consolidated Balance Sheets. The Company’s determination of the fair value of the properties was based upon executed contracts of sale with third parties. The book value of one of these properties exceeded its estimated fair value, less costs to sell, and as such an impairment charge of $4.7 million was recognized. Impairments – During the nine months ended September 30, 2016, the Company recognized aggregate impairment charges of $68.1 million. These impairment charges consist of (i) $50.7 million related to certain properties maintained in the Company’s TRS for which the hold period was re-evaluated in connection with the Merger (see Footnote 15), (ii) $7.8 million related to the sale of certain operating properties, as discussed above, (iii) $4.9 million related to adjustments to property carrying values for which the Company has marketed for sale as part of its active capital recycling program and as such has adjusted the anticipated hold periods for such properties and (iv) $4.7 million related to one property classified as held-for-sale for which the book value exceeded its estimated fair value, as discussed above. The Company’s estimated fair values for these properties were based on third party offers through signed contracts, third party appraisals or discounted cash flow models. (See Footnote 10 for fair value disclosure). |
Note 3 - Real Estate Under Deve
Note 3 - Real Estate Under Development | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Real Estate Under Development [Text Block] | 3. Real Estate Under Development During the nine months ended September 30, 2016, the Company acquired from its partner the remaining ownership interest in a property that was held in a joint venture in which the Company has a 55.0% noncontrolling interest for a gross purchase price of $84.2 million. The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance and as a result, no gain on change in control of interest was recognized as there was no fair value adjustment associated with the Company’s previously held equity interest. Based upon the Company’s intent to develop the property, the Company allocated the gross purchase price to Real estate under development on the Company’s Condensed Consolidated Balance Sheets. During the nine months ended September 30, 2016, the Company acquired, in separate transactions, three additional land parcels adjacent to two existing development projects for an aggregate purchase price of $13.8 million. Additionally, during the nine months ended September 30, 2016, one development project located in Lower Merion, PA, aggregating $27.0 million, was completed and reclassified into Operating real estate on the Company’s Condensed Consolidated Balance Sheets. |
Note 4 - Investments and Advanc
Note 4 - Investments and Advances in Real Estate Joint Ventures | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Investments and Advances In Real Estate Joint Ventures [Text Block] | 4. 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 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 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. |
Note 5 - Other Real Estate Inve
Note 5 - Other Real Estate Investments and Other Assets | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Other Real Estate Investments and Other Assets [Text Block] | 5. Other Real Estate Investments and Other Assets Preferred Equity Capital - The Company previously provided capital to owners and developers of real estate properties through its Preferred Equity Program. As of September 30, 2016, the Company’s net investment under the Preferred Equity Program was $190.0 million relating to 373 properties, including 350 net leased properties. During the nine months ended September 30, 2016, the Company earned $22.3 million from its preferred equity investments, including $10.1 million in profit participation earned from four capital transactions. During the nine months ended September 30, 2015, the Company earned $16.5 million from its preferred equity investments, including $9.2 million in profit participation earned from seven capital transactions. These amounts are included in Equity in income of other real estate investments, net on the Company’s Condensed Consolidated Statements of Operations. |
Note 6 - Variable Interest Enti
Note 6 - Variable Interest Entities ("VIE") | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 6. Variable Interest Entities (“VIE”) Consolidated Operating Properties Included within the Company’s consolidated operating properties at September 30, 2016, are 19 consolidated entities that are VIEs, for which the Company is the primary beneficiary. These entities have been established to own and operate real estate property. The Company’s involvement with these entities is through its majority ownership and management of the properties. The entities were deemed VIEs primarily based on the fact that the unrelated investors do not have substantial kick-out rights to remove the general or managing partner by a vote of a simple majority or less and their participating rights are not substantive. The Company determined that it was the primary beneficiary of these VIEs as a result of its controlling financial interest. At September 30, 2016, total assets of these VIEs were $640.8 million and total liabilities were $36.8 million. The classification of these assets are primarily within operating real estate and accounts and notes receivable and the classification of these liabilities are primarily within other liabilities and mortgages payable. The majority of the operations of these VIEs are funded with cash flows generated from the properties. The Company has not provided financial support to any of these VIEs that it was not previously contractually required to provide, which consists primarily of funding any capital expenditures, including tenant improvements, which are deemed necessary to continue to operate the entity and any operating cash shortfalls that the entity may experience. Consolidated Real Estate Under Development Projects Included within the Company’s real estate under development projects at September 30, 2016, are two consolidated entities that are VIEs, for which the Company is the primary beneficiary. These entities have been established to develop real estate properties to hold as long-term investments. The Company’s involvement with these entities is through its majority ownership and management of the properties. These entities were deemed VIEs primarily based on the fact that the equity investments at risk are not sufficient to permit the entities to finance their activities without additional financial support. The initial equity contributed to these entities was not sufficient to fully finance the real estate construction as development costs are funded by the partners throughout the construction period. The Company determined that it was the primary beneficiary of these VIEs as a result of its controlling financial interest. At September 30, 2016, total assets of these real estate under development VIEs were $173.7 million and total liabilities were $3.9 million. The classification of these assets is primarily within Real estate under development and the classification of the liabilities is primarily within accounts payable and accrued expenses, which is included in Other liabilities in the Company’s Condensed Consolidated Balance Sheets. Substantially all of the projected development costs to be funded for these development projects, aggregating $77.6 million, will be funded with capital contributions from the Company, when contractually obligated. The Company has not provided financial support to these VIEs that it was not previously contractually required to provide. Unconsolidated Redevelopment Investment Included in the Company’s joint venture investments at September 30, 2016, is an unconsolidated joint venture, which is a VIE for which the Company is not the primary beneficiary. This joint venture was primarily established to develop real estate property for long-term investment and was deemed a VIE primarily based on the fact that the equity investment at risk was not sufficient to permit the entity to finance its activities without additional financial support. The initial equity contributed to this entity was not sufficient to fully finance the real estate construction as development costs are funded by the partners throughout the construction period. The Company determined that it was not the primary beneficiary of this VIE based on the fact that the Company has shared control of this entity along with the entity’s partners and therefore does not have a controlling financial interest. As of September 30, 2016, the Company’s investment in this VIE was a negative $7.4 million, due to the fact that the Company had a remaining capital commitment obligation, which is included in Other liabilities in the Company’s Condensed Consolidated Balance Sheets. The Company’s maximum exposure to loss as a result of its involvement with this VIE is estimated to be $7.4 million, which is the remaining capital commitment obligation. The Company has not provided financial support to this VIE that it was not previously contractually required to provide. All future costs of development will be funded with capital contributions from the Company and the outside partner in accordance with their respective ownership percentages. |
Note 7 - Mortgages and Other Fi
Note 7 - Mortgages and Other Financing Receivables | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 7. Mortgages and Other Financing Receivables The Company has various mortgages and other financing receivables which consist of loans acquired and loans originated by the Company. The Company reviews payment status to identify performing versus non-performing loans. As of September 30, 2016, the Company had a total of 12 loans aggregating $23.5 million, of which all were identified as performing loans. |
Note 8 - Notes and Mortgages Pa
Note 8 - Notes and Mortgages Payable | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 8. Notes and Mortgages Payable Notes Payable - During May 2016, the Company issued $150.0 million of Senior Unsecured Notes at an interest rate of 4.25% payable semi-annually in arrears, which are scheduled to mature in April 2045. These notes are an additional issuance of and form a single series with the $350.0 million of 4.25% Senior Unsecured Notes which were issued in March 2015. The Company used the net proceeds from the issuance of $145.4 million, after the underwriting discount and related offering costs, for general corporate purposes including to pre-fund near-term debt maturities. During August 2016, the Company issued $500.0 million of Senior Unsecured Notes at an interest rate of 2.8% payable semi-annually in arrears, which are scheduled to mature in October 2026. The Company used the net proceeds from the issuance of $492.2 million, after the underwriting discount and related offering costs, to fund the redemption of its $290.9 million 5.70% Senior Notes due in May 2017, with the remainder used for general corporate purposes including to pre-fund near-term debt maturities. During the nine months ended September 30, 2016, the Company repaid the following notes (dollars in millions): Type Date Paid Amount Repaid (USD) Interest Rate Maturity Date Canadian Notes Payable (1) Aug-16 $ 270.9 (1) (1) Senior Unsecured Note (2) Aug-16 $ 290.9 5.70% May-17 Medium Term Note Mar-16 $ 300.0 5.783% Mar-16 (1) On August 26, 2016, the redemption date, the Company repaid (i) its Canadian denominated (“CAD”) $150.0 million 5.99% notes, which were scheduled to mature in April 2018 and (ii) its CAD $200.0 million 3.855% notes, which were scheduled to mature in August 2020. The Company recorded aggregate early extinguishment of debt charges of CAD $34.1 million (USD $26.3 million) resulting from the early repayment of these notes. (2) The Company recorded an early extinguishment of debt charge of $10.2 million resulting from the early repayment of this note. Mortgages Payable - During the nine months ended September 30, 2016, the Company (i) assumed $231.5 million of individual non-recourse mortgage debt relating to the acquisition of seven properties, including $3.8 million associated with fair value debt adjustments and (ii) paid off $603.7 million of mortgage debt (including fair market value adjustment of $1.6 million) that encumbered 41 operating properties. In connection with the early prepayment of certain of these mortgage debts, the Company recorded an early extinguishment of debt charge of $9.2 million. |
Note 9 - Redeemable Noncontroll
Note 9 - Redeemable Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Noncontrolling Interest Disclosure [Text Block] | 9. Redeemable Noncontrolling Interests Redeemable noncontrolling interests includes amounts related to partnership units issued by consolidated subsidiaries of the Company in connection with certain property acquisitions. Partnership units which are determined to be mandatorily redeemable under the FASB’s Distinguishing Liabilities from Equity guidance are classified as Redeemable noncontrolling interests and presented in the mezzanine section between Total liabilities and Stockholder’s equity on the Company’s Condensed Consolidated Balance Sheets. The amounts of consolidated net income attributable to the Company and to the noncontrolling interests are presented on the Company’s Condensed Consolidated Statements of Operations. The following table presents the change in the redemption value of the Redeemable noncontrolling interests for the nine months ended September 30, 2016 and 2015 (amounts in thousands): 201 6 201 5 Balance at January 1, $ 86,709 $ 91,480 Income (1) 3,240 5,822 Distributions (3,093 ) (4,563 ) Balance at September 30, $ 86,856 $ 92,739 (1) Includes $1.2 million in fair market value remeasurement for the nine months ended September 30, 2015. |
Note 10 - Fair Value Measuremen
Note 10 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 10. Fair Value Measurements All financial instruments of the Company are reflected in the accompanying Condensed Consolidated Balance Sheets at amounts which, in management’s estimation, based upon an interpretation of available market information and valuation methodologies, reasonably approximate their fair values except those listed below, for which fair values are disclosed. The valuation method used to estimate fair value for fixed-rate and variable-rate debt is based on discounted cash flow analyses, with assumptions that include credit spreads, market yield curves, trading activity, loan amounts and debt maturities. The fair values for marketable securities are based on published values, securities dealers’ estimated market values or comparable market sales. Such fair value estimates are not necessarily indicative of the amounts that would be realized upon disposition. As a basis for considering market participant assumptions in fair value measurements, the FASB’s Fair Value Measurements and Disclosures guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The following are financial instruments for which the Company’s estimate of fair value differs from the carrying amounts (in thousands): September 30 , 201 6 December 31, 201 5 Carrying Amounts Estimated Fair Value Carrying Amounts Estimated Fair Value Marketable securities (1) $ 8,141 $ 8,141 $ 7,565 $ 7,564 Notes payable (2) $ 3,786,921 $ 3,922,026 $ 3,761,328 $ 3,820,205 Mortgages payable (3) $ 1,213,120 $ 1,229,655 $ 1,614,982 $ 1,629,760 (1) As of September 30, 2016 and December 31, 2015, the Company determined that $6.5 million and $5.9 million, respectively, of the Marketable securities estimated fair value were classified within Level 1 of the fair value hierarchy and the remaining $1.6 million and $1.7 million, respectively, were classified within Level 3 of the fair value hierarchy. (2) The Company determined that its valuation of Notes payable was classified within Level 2 of the fair value hierarchy. (3) The Company determined that its valuation of Mortgages payable was classified within Level 3 of the fair value hierarchy. The Company has certain financial instruments that must be measured under the FASB’s Fair Value Measurements and Disclosures guidance, including available for sale securities. The Company currently does not have non-financial assets and non-financial liabilities that are required to be measured at fair value on a recurring basis. The tables below present the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2015, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands): Balance at September 30, 2016 Level 1 Level 2 Level 3 Assets: Marketable equity securities $ 6,542 $ 6,542 $ - $ - Liabilities: Interest rate swaps (1) $ 1,858 $ - $ 1,858 $ - Balance at December 31, 201 5 Level 1 Level 2 Level 3 Assets: Marketable equity securities $ 5,909 $ 5,909 $ - $ - Liabilities: Interest rate swaps (1) $ 1,426 $ - $ 1,426 $ - (1) Included in Other liabilities on the Company’s Condensed Consolidated Balance Sheets Assets measured at fair value on a non-recurring basis at September 30, 2016 and December 31, 2015, are as follows (in thousands): Balance at September 30, 2016 Level 1 Level 2 Level 3 Real estate $ 93,030 $ - $ - $ 93,030 Balance at December 31, 201 5 Level 1 Level 2 Level 3 Real estate $ 52,439 $ - $ - $ 52,439 During the nine months ended September 30, 2016, the Company recognized impairment charges related to adjustments to property carrying values of $68.1 million. During the nine months ended September 30, 2015, the Company recognized impairment charges of $28.0 million of which $0.1 million, before noncontrolling interests and income taxes, is included in discontinued operations, and of which, (i) $21.9 million is related to adjustments to property carrying values, (ii) $5.3 million is related to certain investments in other real estate investments and (iii) $0.8 million is related to marketable debt securities investment. The Company’s estimated fair values were primarily based upon estimated sales prices from third party offers that were based on signed contracts, appraisals or letters of intent for which the Company does not have access to the unobservable inputs used to determine these estimated fair values. For the appraisals, the capitalization rates primarily range from 6.50% to 7.75% and discount rates primarily range from 9.25% to 10.80% which were utilized in the models were based upon observable rates that the Company believes to be within a reasonable range of current market rates for each respective investment. Based on these inputs the Company determined that its valuation of these investments was classified within Level 3 of the fair value hierarchy. (See Footnote 2 for additional discussion regarding impairment charges). |
Note 11 - Preferred Stock and C
Note 11 - Preferred Stock and Common Stock | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 11. Preferred Stock and Common Stock The Company’s outstanding Preferred Stock is detailed below: As of September 30, 2016 and December 31, 201 5 Series of Preferred Stock Shares Authorized Shares Issued and Outstanding Liquidation Preference (in thousands) Dividend Rate Annual Dividend per Depositary Share Par Value Optional Redemption Date Series I 18,400 16,000 $ 400,000 6.00 % $ 1.50000 $ 1.00 3/20/2017 Series J 9,000 9,000 225,000 5.50 % $ 1.37500 $ 1.00 7/25/2017 Series K 8,050 7,000 175,000 5.625 % $ 1.40625 $ 1.00 12/7/2017 35,450 32,000 $ 800,000 During February 2015, the Company established an at the market continuous offering program (the “ATM program”), pursuant to which the Company may offer and sell shares of its common stock, par value $0.01 per share, with an aggregate gross sales price of up to $500.0 million through a consortium of banks acting as sales agents. Sales of the shares of common stock may be made, as needed, from time to time in “at the market” offerings as defined in Rule 415 of the Securities Act of 1933, including by means of ordinary brokers’ transactions on the New York Stock Exchange (the “NYSE”) or otherwise (i) at market prices prevailing at the time of sale, (ii) at prices related to prevailing market prices or (iii) as otherwise agreed to with the applicable sales agent. During the nine months ended September 30, 2016, the Company issued 9,806,377 shares and received proceeds of $285.2 million, net of commissions and fees of $2.9 million. |
Note 12 - Supplemental Schedule
Note 12 - Supplemental Schedule of Non-cash Investing / Financing Activities | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 12. Supplemental Schedule of Non-Cash Investing / Financing Activities The following schedule summarizes the non-cash investing and financing activities of the Company for the nine months ended September 30, 2016 and 2015 (in thousands): 201 6 201 5 Acquisition of real estate interests by assumption of mortgage debt $ 33,174 $ 20,800 Acquisition of real estate interests through proceeds held in escrow $ 66,044 $ 39,849 Proceeds held in escrow through sale of real estate interests $ 66,431 $ 36,733 Disposition of real estate interests by assignment of debt $ - $ 15,744 Disposition of real estate interests through the issuance of mortgage receivable $ - $ 5,730 Issuance of common stock $ 85 $ 488 Surrender of restricted common stock $ (6,904 ) $ (5,604 ) Declaration of dividends paid in succeeding period $ 118,136 $ 111,480 (Decrease)/increase in capital expenditures accrual $ (5,582 ) $ 11,700 Consolidation of Joint Ventures: Increase in real estate and other assets $ 316,772 $ 977,807 Increase in mortgages payable, other liabilities and non-controlling interests $ 194,964 $ 694,530 |
Note 13 - Incentive Plans
Note 13 - Incentive Plans | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 13. Incentive Plans The Company maintains two equity participation plans, the Second Amended and Restated 1998 Equity Participation Plan (the “Prior Plan”) and the 2010 Equity Participation Plan (the “2010 Plan”) (collectively, the “Plans”). The Prior Plan provides for a maximum of 47,000,000 shares of the Company’s common stock to be issued for qualified and non-qualified stock options and restricted stock grants. Effective May 1, 2012, the 2010 Plan provides for a maximum of 10,000,000 shares of the Company’s common stock to be issued for qualified and non-qualified stock options and other awards, plus the number of shares of common stock which are or become available for issuance under the Prior Plan and which are not thereafter issued under the Prior Plan, subject to certain conditions. Unless otherwise determined by the Board of Directors at its sole discretion, stock options granted under the Plans generally vest ratably over a range of three to five years, expire ten years from the date of grant and are exercisable at the market price on the date of grant. Restricted stock grants generally vest (i) 100% on the fourth or fifth anniversary of the grant, (ii) ratably over three, four and five years or (iii) over ten years at 20% per year commencing after the fifth year. Performance share awards, which vest over a period of one to three years, may provide a right to receive shares of the Company’s common stock or restricted stock based on the Company’s performance relative to its peers, as defined, or based on other performance criteria as determined by the Board of Directors. In addition, the Plans provide for the granting of certain stock options and restricted stock to each of the Company’s non-employee directors (the “Independent Directors”) and permit such Independent Directors to elect to receive deferred stock awards in lieu of directors’ fees. The Company recognized expenses associated with its equity awards of $15.3 million for the nine months ended September 30, 2016 and 2015. As of September 30, 2016, the Company had $34.9 million of total unrecognized compensation cost related to unvested stock compensation granted under the Plans. That cost is expected to be recognized over a weighted average period of approximately 3.4 years. |
Note 14 - Accumulated Other Com
Note 14 - Accumulated Other Comprehensive Income ("AOCI") | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Accumulated Other Comprehensive Income (Loss) Disclosure [Text Block] | 14. Accumulated Other Comprehensive Income (“AOCI”) The following tables display the change in the components of accumulated other comprehensive income for the nine months ended September 30, 2016 and 2015: Foreign Currency Translation Adjustments Unrealized Gains on Available-for- Sale Investments Unrealized Loss on Interest Rate Swaps Total Balance as of January 1, 2016 $ 6,616 $ 398 $ (1,426 ) $ 5,588 Other comprehensive income before reclassifications 971 18 (432 ) 557 Amounts reclassified from AOCI - - - - Net current-period other comprehensive income 971 18 (432 ) 557 Balance as of September 30, 2016 $ 7,587 $ 416 $ (1,858 ) $ 6,145 Foreign Currency Translation Adjustments Unrealized Gains on Available-for- Sale Investments Unrealized Loss on Interest Rate Swaps Total Balance as of January 1, 2015 $ 329 $ 46,197 $ (1,404 ) $ 45,122 Other comprehensive income before reclassifications (14,973 ) (5,930 ) (475 ) (21,378 ) Amounts reclassified from AOCI (1) - (38,488 ) - (38,488 ) Net current-period other comprehensive income (14,973 ) (44,418 ) (475 ) (59,866 ) Balance as of September 30, 2015 $ (14,644 ) $ 1,779 $ (1,879 ) $ (14,744 ) (1) Amounts reclassified to Interest, dividends and other investment income on the Company’s Condensed Consolidated Statements of Operations. At September 30, 2016, the Company had a net $7.6 million of unrealized cumulative foreign currency translation adjustment (“CTA”) gains relating to its foreign entity investments in Canada. CTA results from currency fluctuations between local currency and the U.S. dollar during the period in which the Company held its investment. CTA amounts are subject to future changes resulting from ongoing fluctuations in the respective foreign currency exchange rates. Under generally accepted accounting principles in the United States (“GAAP”), the Company is required to release CTA balances into earnings when the Company has substantially liquidated its investment in a foreign entity. During 2015, the Company began selling properties within its Canadian portfolio and as such, the Company may, in the near term, substantially liquidate its remaining investment in Canada, which will require the then unrealized gain on foreign currency translation to be recognized as a benefit to earnings. |
Note 15 - Income Taxes
Note 15 - Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. Income Taxes The Merger - Prior to the Merger, the Company’s TRSs included KRS, FNC Realty Corporation, Kimco Insurance Company and the consolidated entity, Blue Ridge Real Estate Company/Big Boulder Corporation. As part of the Company’s overall strategy to simplify its business model and transfer ownership of desirable long-term shopping center assets as well as the Company’s investment in Albertsons to the REIT, the Company, effective August 1, 2016, completed the Merger, whereby KRS was merged into a wholly-owned Limited Liability Company (“LLC”) of the Company and no longer operates as a TRS. Additionally, the Company established a new TRS, Kimco Realty Services II. Under GAAP a reduction of the carrying amounts of deferred tax assets by a valuation allowance is required, if, based on the evidence available, it is more likely than not (a likelihood of more than 50 percent) that some portion or all of the deferred tax assets will not be realized. The valuation allowance should be sufficient to reduce the deferred tax asset to the amount that is more likely than not to be realized. As a result of the Merger, the Company determined that the realization of $63.5 million of its net deferred tax assets was not deemed likely and as such, the Company recorded a valuation allowance against these net deferred tax assets that existed at the time of the Merger. In connection with the Merger, the Company prepared an analysis of the estimated built-in tax gains and built-in tax losses inherent in each asset. Property that becomes REIT property in a merger transaction is subject to tax during a recognition period, and, as a result, the Company is subject to corporate-level taxation up to the net built-in gain amount resulting from the sale of KRS investments within five years from the merger date (the recognition period). The Company compared estimated fair values to tax basis for each property to determine the built-in tax gain (value over basis) or the built-in tax loss (basis over value) and determined KRS’s share based on its ownership percentage, which could be subject to corporate level taxes if the Company disposes of any assets previously held by KRS during the five years following the Merger date. Uncertain Tax Positions - The Company is subject to income tax in certain jurisdictions outside the U.S., principally Canada and Mexico. The statute of limitations on assessment of tax varies from three to seven years depending on the jurisdiction and tax issue. Tax returns filed in each jurisdiction are subject to examination by local tax authorities. The Company is currently under audit by the Canadian Revenue Agency and Mexican Tax Authority. The Company and its subsidiaries had been under audit by the U.S. Internal Revenue Service (“IRS”) with respect to taxable years 2004-2009. The IRS proposed, pursuant to Section 482 of the Code, to disallow a capital loss claimed by KRS on the disposition of common shares of Valad Property Ltd., an Australian publicly listed company, and to assert a 100 percent “penalty” tax on the Company pursuant to Section 857(b)(7) of the Code in the amount of $40.9 million with respect to its 2009 taxable year. The Company has favorably settled all matters relating to the audit, agreeing to a net refund of $0.1 million. In connection with this favorable settlement, the Company released its uncertain tax position liability of $2.0 million. In August 2016, the Mexican Tax Authority issued tax assessments for various wholly-owned entities of the Company that had previously held interests in operating properties in Mexico. These assessments relate to certain interest expense and withholding tax items under the Mexico – U.S. Tax Treaty (the “Treaty”). The assessments are for the 2010 tax year and include amounts for taxes aggregating $33.7 million, interest aggregating $16.6 million and penalties aggregating $11.4 million. The Company believes that it has operated in accordance with the Treaty provisions and has therefore concluded that no amounts are payable with respect to this matter. The Company has submitted appeals for these assessments and the U.S. Treasury’s Office of Competent Authority is representing the Company regarding this matter. The Company intends to vigorously defend its position and believes it will prevail, however this outcome cannot be assured. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation - The accompanying Condensed Consolidated Financial Statements include the accounts of Kimco Realty Corporation and subsidiaries, (the “Company”). The Company’s subsidiaries include subsidiaries which are wholly-owned and all entities in which the Company has a controlling financial interest, including where the Company has been determined to be a primary beneficiary of a variable interest entity (“VIE”) in accordance with the Consolidation guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). All inter-company balances and transactions have been eliminated in consolidation. The information presented in the accompanying Condensed Consolidated Financial Statements is unaudited and reflects all adjustments which are, in the opinion of management, necessary to reflect a fair statement of the results for the interim periods presented, and all such adjustments are of a normal recurring nature. These Condensed Consolidated Financial Statements should be read in conjunction with the Company's 2015 Annual Report on Form 10-K for the year ended December 31, 2015 (the “10-K”), as certain disclosures in this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016, that would duplicate those included in the 10-K are not included in these Condensed Consolidated Financial Statements. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events - The Company has evaluated subsequent events and transactions for potential recognition or disclosure in the condensed consolidated financial statements. |
Income Tax, Policy [Policy Text Block] | Income Taxes - The Company elected status as a Real Estate Investment Trust (a “REIT”) for federal income tax purposes beginning in its taxable year ended December 31, 1991 and operates in a manner that enables the Company to maintain its status as a REIT. As a REIT, with respect to each taxable year, the Company must distribute at least 90 percent of its taxable income (excluding capital gain) and will not pay federal income taxes on the amount distributed to its shareholders. The Company is not generally subject to federal income taxes if it distributes 100 percent of its taxable income. Most states, where the Company holds investments in real estate, conform to the federal rules recognizing REITs. Certain subsidiaries have made a joint election with the Company to be treated as taxable REIT subsidiaries (“TRSs”), which permit the Company to engage in certain business activities which the REIT may not conduct directly. A TRS is subject to federal and state income taxes on its income, and the Company includes a provision for taxes in its condensed consolidated financial statements. The Company is subject to and also includes in its tax provision non-U.S. income taxes on certain investments located in jurisdictions outside the U.S. These investments are held by the Company at the REIT level and not in the Company’s taxable REIT subsidiaries. Accordingly, the Company does not expect a U.S. income tax impact associated with the repatriation of undistributed earnings from the Company’s foreign subsidiaries. Effective August 1, 2016, the Company merged Kimco Realty Services Inc. ("KRS"), a TRS, into a wholly-owned Limited Liability Company (“LLC”) of the Company and no longer operates as a TRS (the “Merger”). The Company analyzed the individual assets of KRS and determined that substantially all of KRS’s assets constitute real estate assets and investments that can be directly owned by the Company without adversely affecting the Company’s status as a REIT. Any non-REIT qualifying assets or activities were transferred to a newly formed TRS (see Footnote 15). |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share - The following table sets forth the reconciliation of earnings and the weighted average number of shares used in the calculation of basic and diluted earnings per share (amounts presented in thousands except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Computation of Basic Earnings Per Share: Income/(loss) from continuing operations $ (51,319 ) $ 53,419 $ 229,517 $ 435,288 Gain on sale of operating properties, net of tax 9,771 27,665 75,935 86,219 Net income attributable to noncontrolling interests (1,997 ) (3,512 ) (4,875 ) (6,518 ) Preferred stock dividends (11,555 ) (14,573 ) (34,665 ) (43,719 ) Income/(loss) from continuing operations available to the common shareholders (55,100 ) 62,999 265,912 471,270 Earnings attributable to participating securities (502 ) (405 ) (1,493 ) (2,178 ) Income/(loss) from continuing operations attributable to common shareholders (55,602 ) 62,594 264,419 469,092 Loss from discontinued operations attributable to the Company - - - (75 ) Net income/(loss) attributable to the Company’s common shareholders for basic earnings per share $ (55,602 ) $ 62,594 $ 264,419 $ 469,017 Weighted average common shares outstanding – basic 420,073 411,487 416,829 411,202 Basic Earnings Per Share Attributable to the Company’s Common Shareholders: Income/(loss) from continuing operations $ (0.13 ) $ 0.15 $ 0.63 $ 1.14 Loss from discontinued operations - - - - Net income/(loss) $ (0.13 ) $ 0.15 $ 0.63 $ 1.14 Computation of Diluted Earnings Per Share: Income/(loss) from continuing operations attributable to common shareholders $ (55,602 ) $ 62,594 $ 264,419 $ 469,092 Loss from discontinued operations attributable to the Company - - - (75 ) Distributions on convertible units - - - 446 Net income/(loss) attributable to the Company’s common shareholders for diluted earnings per share $ (55,602 ) $ 62,594 $ 264,419 $ 469,463 Weighted average common shares outstanding – basic 420,073 411,487 416,829 411,202 Effect of dilutive securities (a): Equity awards - 1,199 1,405 1,337 Assumed conversion of convertible units - - - 723 Shares for diluted earnings per common share 420,073 412,686 418,234 413,262 Diluted Earnings Per Share Attributable to the Company’s Common Shareholders: Income/(loss) from continuing operations $ (0.13 ) $ 0.15 $ 0.63 $ 1.14 Loss from discontinued operations - - - - Net income/(loss) attributable to the Company $ (0.13 ) $ 0.15 $ 0.63 $ 1.14 (a) For the three and nine months ended September 30, 2016 and 2015, the effect of certain convertible units would have an anti-dilutive effect upon the calculation of Income/(loss) from continuing operations per share. Accordingly, the impact of such conversion has not been included in the determination of diluted earnings per share calculations. At September 30, 2016 and 2015, the Company had outstanding stock options that were not dilutive of 3,545,000 and 5,963,010, respectively. The Company's unvested restricted share awards and convertible units (the “Participating securities”) contain non-forfeitable rights to distributions or distribution equivalents. The impact of the Participating securities on earnings per share has been calculated using the two-class method whereby earnings are allocated to the Participating securities based on dividends declared and the Participating securities rights in undistributed earnings. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements – In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), a consensus of the FASB’s Emerging Issues Task Force (“ASU 2016-15”). The new guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. One identified cash flow issue relates to distributions received from equity method investees whereby the reporting entity should make an accounting policy election to classify distributions received from equity method investees using either the cumulative earnings approach or the nature of the distribution approach. Another issue relates to the classification of cash payments for debt prepayment or debt extinguishment costs. The standard is retrospectively effective for public companies on January 1, 2018, with early adoption permitted. The Company elected to early adopt ASU 2016-15 beginning in its quarter ended September 30, 2016. In connection with the adoption of ASU 2016-15 the Company made a policy election to classify distributions received from equity method investees using the cumulative earnings approach. This election did not have a material impact on the presentation in the Company’s Condensed Consolidated Statements of Cash Flows. During the quarter ended September 30, 2016, the Company incurred early extinguishment of debt charges and in accordance with the adoption of ASU 2016-15 has included these charges in cash flows used for financing activities on the Company’s Condensed Consolidated Statements of Cash Flows. The adoption of the remaining cash flow issues addressed in ASU 2016-15 did not have a material impact on the Company’s Condensed Consolidated Statements of Cash Flows. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). The update simplifies several aspects of accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods, early adoption is permitted. The adoption of ASU 2016-09 is not expected to have a material effect on the Company’s financial position and/or results of operations. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. ASU 2016-02 supersedes the previous leases standard, Leases (Topic 840). The standard is effective for the Company on January 1, 2019, with early adoption permitted. The Company is currently in the process of evaluating the impact the adoption of ASU 2016-02 will have on the Company’s financial position and/or results of operations. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 focuses to minimize situations under previously existing guidance in which a reporting entity was required to consolidate another legal entity in which that reporting entity did not have: (1) the ability through contractual rights to act primarily on its own behalf; (2) ownership of the majority of the legal entity's voting rights; or (3) the exposure to a majority of the legal entity's economic benefits. ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Legal entities are subject to reevaluation under the revised consolidation model. ASU 2015-02 is effective for periods beginning after December 15, 2015. The adoption of ASU 2015-02 did not have a material effect on the Company’s financial position or results of operations. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016 and interim periods thereafter, early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. ASU 2014-09 was anticipated to be effective for the first interim period within annual reporting periods beginning after December 15, 2016, and early adoption was not permitted. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”), which delayed the effective date of ASU 2014-09 by one year making it effective for the first interim period within annual reporting periods beginning after December 15, 2017. Subsequently, in March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations”, which further clarifies the implementation guidance on principal versus agent considerations”, and in April 2016, the FASB issued ASU 2016-10, “Revenue from contracts with customers (Topic 606): Identifying performance obligations and licensing”, an update on identifying performance obligations and accounting for licenses of intellectual property. Additionally, in May 2016, the FASB issued ASU 2016-12, “Revenue from contracts with customers (Topic 606): Narrow-scope improvements and practical expedients”, which includes amendments for enhanced clarification of the guidance. Early adoption is permitted as of the original effective date. The Company is currently in the process of evaluating the impact the adoption of ASU 2014-09 will have on the Company’s financial position and/or results of operations. |
Reclassification, Policy [Policy Text Block] | Re visions – In the fourth quarter of 2015, the Company changed the classification within the Company’s cash flow statement for certain transactions that occurred in the nine months ended September 30, 2015, involving the sale of equity interests in entities owning real estate. This change of $54.6 million was reclassified for the nine months ended September 30, 2015, for purposes of reflecting comparative periods. The Company believes the new classification is a more meaningful reflection of these transactions and changed the Company’s cash flow from the initially reported amounts to reduce Distributions from joint ventures and other real estate investments within its cash flow from operating activities and increase Distributions from liquidation of real estate joint ventures within its cash flow from investing activities by $54.6 million for the nine months ended September 30, 2015. |
Note 1 - Interim Financial St26
Note 1 - Interim Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Computation of Basic Earnings Per Share: Income/(loss) from continuing operations $ (51,319 ) $ 53,419 $ 229,517 $ 435,288 Gain on sale of operating properties, net of tax 9,771 27,665 75,935 86,219 Net income attributable to noncontrolling interests (1,997 ) (3,512 ) (4,875 ) (6,518 ) Preferred stock dividends (11,555 ) (14,573 ) (34,665 ) (43,719 ) Income/(loss) from continuing operations available to the common shareholders (55,100 ) 62,999 265,912 471,270 Earnings attributable to participating securities (502 ) (405 ) (1,493 ) (2,178 ) Income/(loss) from continuing operations attributable to common shareholders (55,602 ) 62,594 264,419 469,092 Loss from discontinued operations attributable to the Company - - - (75 ) Net income/(loss) attributable to the Company’s common shareholders for basic earnings per share $ (55,602 ) $ 62,594 $ 264,419 $ 469,017 Weighted average common shares outstanding – basic 420,073 411,487 416,829 411,202 Basic Earnings Per Share Attributable to the Company’s Common Shareholders: Income/(loss) from continuing operations $ (0.13 ) $ 0.15 $ 0.63 $ 1.14 Loss from discontinued operations - - - - Net income/(loss) $ (0.13 ) $ 0.15 $ 0.63 $ 1.14 Computation of Diluted Earnings Per Share: Income/(loss) from continuing operations attributable to common shareholders $ (55,602 ) $ 62,594 $ 264,419 $ 469,092 Loss from discontinued operations attributable to the Company - - - (75 ) Distributions on convertible units - - - 446 Net income/(loss) attributable to the Company’s common shareholders for diluted earnings per share $ (55,602 ) $ 62,594 $ 264,419 $ 469,463 Weighted average common shares outstanding – basic 420,073 411,487 416,829 411,202 Effect of dilutive securities (a): Equity awards - 1,199 1,405 1,337 Assumed conversion of convertible units - - - 723 Shares for diluted earnings per common share 420,073 412,686 418,234 413,262 Diluted Earnings Per Share Attributable to the Company’s Common Shareholders: Income/(loss) from continuing operations $ (0.13 ) $ 0.15 $ 0.63 $ 1.14 Loss from discontinued operations - - - - Net income/(loss) attributable to the Company $ (0.13 ) $ 0.15 $ 0.63 $ 1.14 |
Note 2 - Operating Property A27
Note 2 - Operating Property Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Purchase Price Property Name Location Month Acquired Cash * Debt Assumed Other ** Total GLA* ** Jericho Atrium Jericho, NY Apr-16 $ 29,750 $ - $ - $ 29,750 147 Oakwood Plaza Hollywood, FL (1) Apr-16 53,412 100,000 61,588 215,000 899 Webster Square North Nashua, NH Jul-16 8,200 - - 8,200 21 Gateway Plaza Mill Creek, WA (1) Jul-16 493 17,500 - 17,993 97 Kentlands Market Square Gaithersburg, MD Aug-16 61,826 33,174 - 95,000 221 GEPT Portfolio (4 properties) Various (1) Sep-16 79,974 76,989 10,882 167,845 681 $ 233,655 $ 227,663 $ 72,470 $ 533,788 2,066 |
Previous Ownership Interest [Table Text Block] | Property Name Previous Ownership Interest Gain on change in control of interests, net Oakwood Plaza 55.0 % $ 46.5 Gateway Plaza 15.0 % - GEPT Portfolio (4 properties) 15.0 % 6.6 $ 53.1 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Preliminary Allocation Allocation Adjustments (1) Revised Allocation a s of September 30, 2016 Land $ 144,368 $ (10,056 ) $ 134,312 Buildings 257,967 40,123 298,090 Above market leases 10,005 (2,254 ) 7,751 Below market leases (26,399 ) (2,705 ) (29,104 ) In-place leases 37,145 (1,490 ) 35,655 Building improvements 102,853 (21,200 ) 81,653 Tenant improvements 10,758 (1,724 ) 9,034 Mortgage fair value adjustment (3,143 ) (694 ) (3,837 ) Other assets 234 - 234 Net assets acquired $ 533,788 $ - $ 533,788 |
Business Acquisition, Pro Forma Information [Table Text Block] | Nine Months Ended September 30, 201 6 201 5 Revenues from rental property $ 878.2 $ 886.5 Net income $ 313.0 $ 538.2 Net income available to the Company’s common shareholders $ 273.5 $ 488.0 Net income available to the Company’s common shareholders per common share: Basic $ 0.65 $ 1.19 Diluted $ 0.65 $ 1.18 |
Note 4 - Investments and Adva28
Note 4 - Investments and Advances in Real Estate Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income [Member] | |
Notes Tables | |
Equity Method Investments [Table Text Block] | 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 |
Equity Method Investments [Table Text Block] | 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 |
Summary of Properties and Land Parcel Disposed of [Table Text Block] | Nine Months Ended September 30, 2016 Number of properties Number of land parcels Aggregate sales price (in millions) Net gain, before income taxes 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 Nine Months Ended September 30, 2015 Number of properties Number of land parcels Aggregate sales price (in millions) Net gain /(impairment) , before income taxes 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 |
Joint Venture Investments Accounted For Under The Equity Method Debt Details [Table Text Block] | 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 |
Note 8 - Notes and Mortgages 29
Note 8 - Notes and Mortgages Payable (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | Type Date Paid Amount Repaid (USD) Interest Rate Maturity Date Canadian Notes Payable (1) Aug-16 $ 270.9 (1) (1) Senior Unsecured Note (2) Aug-16 $ 290.9 5.70% May-17 Medium Term Note Mar-16 $ 300.0 5.783% Mar-16 |
Note 9 - Redeemable Noncontro30
Note 9 - Redeemable Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Redeemable Noncontrolling Interest [Table Text Block] | 201 6 201 5 Balance at January 1, $ 86,709 $ 91,480 Income (1) 3,240 5,822 Distributions (3,093 ) (4,563 ) Balance at September 30, $ 86,856 $ 92,739 |
Note 10 - Fair Value Measurem31
Note 10 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | September 30 , 201 6 December 31, 201 5 Carrying Amounts Estimated Fair Value Carrying Amounts Estimated Fair Value Marketable securities (1) $ 8,141 $ 8,141 $ 7,565 $ 7,564 Notes payable (2) $ 3,786,921 $ 3,922,026 $ 3,761,328 $ 3,820,205 Mortgages payable (3) $ 1,213,120 $ 1,229,655 $ 1,614,982 $ 1,629,760 |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Balance at September 30, 2016 Level 1 Level 2 Level 3 Assets: Marketable equity securities $ 6,542 $ 6,542 $ - $ - Liabilities: Interest rate swaps (1) $ 1,858 $ - $ 1,858 $ - Balance at December 31, 201 5 Level 1 Level 2 Level 3 Assets: Marketable equity securities $ 5,909 $ 5,909 $ - $ - Liabilities: Interest rate swaps (1) $ 1,426 $ - $ 1,426 $ - Balance at September 30, 2016 Level 1 Level 2 Level 3 Real estate $ 93,030 $ - $ - $ 93,030 Balance at December 31, 201 5 Level 1 Level 2 Level 3 Real estate $ 52,439 $ - $ - $ 52,439 |
Note 11 - Preferred Stock and32
Note 11 - Preferred Stock and Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Stockholders Equity [Table Text Block] | As of September 30, 2016 and December 31, 201 5 Series of Preferred Stock Shares Authorized Shares Issued and Outstanding Liquidation Preference (in thousands) Dividend Rate Annual Dividend per Depositary Share Par Value Optional Redemption Date Series I 18,400 16,000 $ 400,000 6.00 % $ 1.50000 $ 1.00 3/20/2017 Series J 9,000 9,000 225,000 5.50 % $ 1.37500 $ 1.00 7/25/2017 Series K 8,050 7,000 175,000 5.625 % $ 1.40625 $ 1.00 12/7/2017 35,450 32,000 $ 800,000 |
Note 12 - Supplemental Schedu33
Note 12 - Supplemental Schedule of Non-cash Investing / Financing Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | 201 6 201 5 Acquisition of real estate interests by assumption of mortgage debt $ 33,174 $ 20,800 Acquisition of real estate interests through proceeds held in escrow $ 66,044 $ 39,849 Proceeds held in escrow through sale of real estate interests $ 66,431 $ 36,733 Disposition of real estate interests by assignment of debt $ - $ 15,744 Disposition of real estate interests through the issuance of mortgage receivable $ - $ 5,730 Issuance of common stock $ 85 $ 488 Surrender of restricted common stock $ (6,904 ) $ (5,604 ) Declaration of dividends paid in succeeding period $ 118,136 $ 111,480 (Decrease)/increase in capital expenditures accrual $ (5,582 ) $ 11,700 Consolidation of Joint Ventures: Increase in real estate and other assets $ 316,772 $ 977,807 Increase in mortgages payable, other liabilities and non-controlling interests $ 194,964 $ 694,530 |
Note 14 - Accumulated Other C34
Note 14 - Accumulated Other Comprehensive Income ("AOCI") (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustments Unrealized Gains on Available-for- Sale Investments Unrealized Loss on Interest Rate Swaps Total Balance as of January 1, 2016 $ 6,616 $ 398 $ (1,426 ) $ 5,588 Other comprehensive income before reclassifications 971 18 (432 ) 557 Amounts reclassified from AOCI - - - - Net current-period other comprehensive income 971 18 (432 ) 557 Balance as of September 30, 2016 $ 7,587 $ 416 $ (1,858 ) $ 6,145 Foreign Currency Translation Adjustments Unrealized Gains on Available-for- Sale Investments Unrealized Loss on Interest Rate Swaps Total Balance as of January 1, 2015 $ 329 $ 46,197 $ (1,404 ) $ 45,122 Other comprehensive income before reclassifications (14,973 ) (5,930 ) (475 ) (21,378 ) Amounts reclassified from AOCI (1) - (38,488 ) - (38,488 ) Net current-period other comprehensive income (14,973 ) (44,418 ) (475 ) (59,866 ) Balance as of September 30, 2015 $ (14,644 ) $ 1,779 $ (1,879 ) $ (14,744 ) |
Note 1 - Interim Financial St35
Note 1 - Interim Financial Statements (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Nine Months Ended September 30, 2015 [Member] | Distributions Reclassification From Joint Ventures and Other Real Estate Investments in Operating Activities To Liquidation of Real Estate of Joint Ventures in Investing Activities [Member] | |||
Prior Period Reclassification Adjustment | $ 54.6 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,545,000 | 5,963,010 |
Note 1 - Interim Financial St36
Note 1 - Interim Financial Statements - Reconciliation of Earnings (Loss) and the Weighted Average Number of Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Income/(loss) from continuing operations | $ (51,319) | $ 53,419 | $ 229,517 | $ 435,288 | |
Gain on sale of operating properties, net of tax | 9,771 | 27,665 | 75,935 | 86,219 | |
Net income attributable to noncontrolling interests | (1,997) | (3,512) | (4,875) | (6,518) | |
Preferred stock dividends | (11,555) | (14,573) | (34,665) | (43,719) | |
Income/(loss) from continuing operations available to the common shareholders | (55,100) | 62,999 | 265,912 | 471,270 | |
Earnings attributable to participating securities | (502) | (405) | (1,493) | (2,178) | |
Income/(loss) from continuing operations attributable to common shareholders | (55,602) | 62,594 | 264,419 | 469,092 | |
Loss from discontinued operations attributable to the Company | (75) | ||||
Net income/(loss) attributable to the Company’s common shareholders for basic earnings per share | $ (55,602) | $ 62,594 | $ 264,419 | $ 469,017 | |
Weighted average common shares outstanding – basic (in shares) | 420,073 | 411,487 | 416,829 | 411,202 | |
Income/(loss) from continuing operations (in dollars per share) | $ (0.13) | $ 0.15 | $ 0.63 | $ 1.14 | |
Loss from discontinued operations (in dollars per share) | |||||
-Basic (in dollars per share) | $ (0.13) | $ 0.15 | $ 0.63 | $ 1.14 | |
Distributions on convertible units | $ 446 | ||||
Net income/(loss) attributable to the Company’s common shareholders for diluted earnings per share | $ (55,602) | $ 62,594 | $ 264,419 | $ 469,463 | |
Equity awards (in shares) | [1] | 1,199 | 1,405 | 1,337 | |
Assumed conversion of convertible units (in shares) | [1] | 723 | |||
Shares for diluted earnings per common share (in shares) | 420,073 | 412,686 | 418,234 | 413,262 | |
Income/(loss) from continuing operations (in dollars per share) | $ (0.13) | $ 0.15 | $ 0.63 | $ 1.14 | |
Loss from discontinued operations (in dollars per share) | |||||
-Diluted (in dollars per share) | $ (0.13) | $ 0.15 | $ 0.63 | $ 1.14 | |
[1] | For the three and nine months ended September 30, 2016 and 2015, the effect of certain convertible units would have an anti-dilutive effect upon the calculation of Income/(loss) from continuing operations per share. Accordingly, the impact of such conversion has not been included in the determination of diluted earnings per share calculations. At September 30, 2016 and 2015, the Company had outstanding stock options that were not dilutive of 3,545,000 and 5,963,010, respectively. |
Note 2 - Operating Property A37
Note 2 - Operating Property Activities (Details Textual) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Out-Parcel Properties [Member] | |||
Number of Properties Disposed of | 1 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Consolidated Operating Properties [Member] | |||
Number of Properties Disposed of | 26 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Noncontrolling Interest [Member] | |||
Proceeds from Sale of Real Estate | $ 200 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||
Proceeds from Sale of Real Estate | 334,900 | ||
Gains (Losses) on Sales of Investment Real Estate | 75,900 | ||
Asset Impairment Charges | $ 7,800 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||
Number of Real Estate Properties | 3 | ||
Asset Impairment Charges | $ 4,700 | ||
Real Estate Held-for-sale | 13,400 | ||
Real Estate Investment Property, Accumulated Depreciation | 11,800 | ||
Taxible REIT Subsidiary [Member] | |||
Asset Impairment Charges | 50,700 | ||
Disposal Group, Expected to Market for Sale, Not Discontinued Operations [Member] | |||
Asset Impairment Charges | 4,900 | ||
Revenues from Rental Property [Member] | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 12,100 | ||
Net Income from Rental Properties [Member] | |||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 1,800 | ||
Number of Real Estate Properties | 46 | 23 | |
Proceeds from Delayed Tax Exempt Exchange | $ 66,000 | ||
Gains (Losses) on Sales of Investment Real Estate | 143,300 | $ 61,700 | |
Asset Impairment Charges | 68,126 | $ 27,989 | |
Real Estate Investment Property, Accumulated Depreciation | $ 2,220,455 | $ 2,115,320 |
Note 2 - Operating Property A38
Note 2 - Operating Property Activities - Acquisition of Operating Properties (Details) ft² in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($)ft² | ||
Jericho Atrium [Member] | ||
Purchase Price Cash | $ 29,750 | [1] |
Purchase Price Debt Assumed | ||
Purchase Price Other | [2] | |
Total | $ 29,750 | |
Total GLA | ft² | 147 | [3] |
Oakwood Plaza [Member] | ||
Purchase Price Cash | $ 53,412 | [1],[4] |
Purchase Price Debt Assumed | 100,000 | [4] |
Purchase Price Other | 61,588 | [2],[4] |
Total | $ 215,000 | [4] |
Total GLA | ft² | 899 | [3],[4] |
Webster Square North [Member] | ||
Purchase Price Cash | $ 8,200 | [1] |
Purchase Price Debt Assumed | ||
Purchase Price Other | [2] | |
Total | $ 8,200 | |
Total GLA | ft² | 21 | [3] |
Gateway Plaza [Member] | ||
Purchase Price Cash | $ 493 | [1],[4] |
Purchase Price Debt Assumed | 17,500 | [4] |
Purchase Price Other | [2],[4] | |
Total | $ 17,993 | [4] |
Total GLA | ft² | 97 | [3],[4] |
Kentlands Market Square [Member] | ||
Purchase Price Cash | $ 61,826 | [1] |
Purchase Price Debt Assumed | 33,174 | |
Purchase Price Other | [2] | |
Total | $ 95,000 | |
Total GLA | ft² | 221 | [3] |
GEPT Portfolio [Member] | ||
Purchase Price Cash | $ 79,974 | [1],[4] |
Purchase Price Debt Assumed | 76,989 | [4] |
Purchase Price Other | 10,882 | [2],[4] |
Total | $ 167,845 | [4] |
Total GLA | ft² | 681 | [3],[4] |
Purchase Price Cash | $ 233,655 | [1] |
Purchase Price Debt Assumed | 227,663 | |
Purchase Price Other | 72,470 | [2] |
Total | $ 533,788 | |
Total GLA | ft² | 2,066 | [3] |
[1] | The Company utilized $66.0 million associated with Internal Revenue Code 1031 sales proceeds. | |
[2] | Includes the Company's previously held equity interest investment. | |
[3] | Gross leasable area ("GLA") | |
[4] | The Company acquired from its partners their ownership interest in these properties that were held in joint ventures in which the Company had noncontrolling interests. The Company evaluated these transactions pursuant to the FASB's Consolidation guidance and as a result, recognized gains on change in control of interests resulting from the fair value adjustments associated with the Company's previously held equity interests, which are included in the purchase price above in Other. The Company's previous ownership interests and gains on change in control of interests recognized as a result of these transactions are as follows (in millions): |
Note 2 - Operating Property A39
Note 2 - Operating Property Activities - Previous Ownership Interest and Gain on Change of Interest (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Oakwood Plaza [Member] | |
Previous ownership interest | 55.00% |
Gain on change in control of interests, net | $ 46.5 |
Gateway Plaza [Member] | |
Previous ownership interest | 15.00% |
Gain on change in control of interests, net | |
GEPT Portfolio [Member] | |
Previous ownership interest | 15.00% |
Gain on change in control of interests, net | $ 6.6 |
Gain on change in control of interests, net | $ 53.1 |
Note 2 - Operating Property A40
Note 2 - Operating Property Activities - Purchase Price Allocation (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Preliminary Allocation [Member] | Land [Member] | |
Allocation | $ 144,368 |
Preliminary Allocation [Member] | Building [Member] | |
Allocation | 257,967 |
Preliminary Allocation [Member] | Building Improvements [Member] | |
Allocation | 102,853 |
Preliminary Allocation [Member] | Leasehold Improvements [Member] | |
Allocation | 10,758 |
Preliminary Allocation [Member] | Above Market Leases [Member] | |
Allocation | 10,005 |
Preliminary Allocation [Member] | The Below Market Lease [Member] | |
Allocation | (26,399) |
Preliminary Allocation [Member] | Leases, Acquired-in-Place [Member] | |
Allocation | 37,145 |
Preliminary Allocation [Member] | |
Allocation | (3,143) |
Allocation | 234 |
Allocation | 533,788 |
Allocation Adjustments [Member] | Land [Member] | |
Allocation | (10,056) |
Allocation Adjustments [Member] | Building [Member] | |
Allocation adjustments | 40,123 |
Allocation Adjustments [Member] | Building Improvements [Member] | |
Allocation adjustments | (21,200) |
Allocation Adjustments [Member] | Leasehold Improvements [Member] | |
Allocation adjustments | (1,724) |
Allocation Adjustments [Member] | Above Market Leases [Member] | |
Allocation adjustments | (2,254) |
Allocation Adjustments [Member] | The Below Market Lease [Member] | |
Allocation adjustments | (2,705) |
Allocation Adjustments [Member] | Leases, Acquired-in-Place [Member] | |
Allocation adjustments | (1,490) |
Allocation Adjustments [Member] | |
Allocation adjustments | (694) |
Land [Member] | |
Allocation | 134,312 |
Building [Member] | |
Allocation | 298,090 |
Building Improvements [Member] | |
Allocation | 81,653 |
Leasehold Improvements [Member] | |
Allocation | 9,034 |
Above Market Leases [Member] | |
Allocation | 7,751 |
The Below Market Lease [Member] | |
Allocation | (29,104) |
Leases, Acquired-in-Place [Member] | |
Allocation | 35,655 |
Allocation | (3,837) |
Allocation | 234 |
Allocation | $ 533,788 |
Note 2 - Operating Property A41
Note 2 - Operating Property Activities - Pro Forma Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues from rental property | $ 878,200 | $ 886,500 |
Net income | 313,000 | 538,200 |
Net income available to the Company’s common shareholders | $ 273,500 | $ 488,000 |
Basic (in dollars per share) | $ 0.65 | $ 1.19 |
Diluted (in dollars per share) | $ 0.65 | $ 1.18 |
Note 3 - Real Estate Under De42
Note 3 - Real Estate Under Development (Details Textual) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | ||
Real Estate Under Development [Member] | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 0 | |||||
Number of Real Estate Properties | 2 | 2 | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 55.00% | 55.00% | ||||
Payments to Acquire Businesses, Gross | $ 84,200,000 | |||||
Real Estate Investment Property, Net | $ 27,000,000 | $ 27,000,000 | ||||
Real Estate Under Development, Completed [Member] | ||||||
Number of Real Estate Properties | 1 | 1 | ||||
Acquired Land [Member] | ||||||
Number of Real Estate Properties | 3 | 3 | ||||
Payments to Acquire Real Estate | $ 13,800,000 | |||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 6,584,000 | $ 6,342,000 | $ 53,096,000 | $ 146,143,000 | ||
Number of Real Estate Properties | 46 | 23 | 46 | 23 | ||
Payments to Acquire Businesses, Gross | [1] | $ 233,655,000 | ||||
Payments to Acquire Real Estate | 181,548,000 | $ 619,622,000 | ||||
Real Estate Investment Property, Net | $ 9,392,984,000 | $ 9,392,984,000 | $ 9,274,299,000 | |||
[1] | The Company utilized $66.0 million associated with Internal Revenue Code 1031 sales proceeds. |
Note 4 - Investments and Adva43
Note 4 - Investments and Advances in Real Estate Joint Ventures (Details Textual) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||
Apr. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015 | Dec. 31, 2013USD ($) | ||
Kim Pru and Kim Pru II [Member] | ||||||
Number of Joint Ventures | 4 | |||||
Number Of Accounts | 4 | |||||
Number of Real Estate Properties | [1],[2] | 50 | 53 | |||
Kim Pru [Member] | ||||||
Number of Joint Ventures | 3 | |||||
Number of Real Estate Properties | 1 | 3 | ||||
Impairment of Real Estate | $ 800 | $ 2,800 | ||||
Other Joint Venture Programs [Member] | ||||||
Number of Real Estate Properties | 38 | 40 | ||||
Impairment of Real Estate | $ 2,400 | |||||
Intown [Member] | ||||||
Deferred Gain on Sale of Property | $ 21,700 | |||||
Gains (Losses) on Sales of Investment Real Estate | $ 21,700 | |||||
Noncontrolling Interest [Member] | Pending Sale [Member] | ||||||
Number of Real Estate Properties | 2 | |||||
Noncontrolling Interest [Member] | Potential Foreclosure [Member] | ||||||
Number of Real Estate Properties | 1 | |||||
Noncontrolling Interest [Member] | ||||||
Number of Joint Ventures | 3 | |||||
Impairment of Real Estate | $ 9,800 | |||||
Equity in Income of Joint Ventures, Net [Member] | ||||||
Gains (Losses) on Sales of Investment Real Estate | $ 143,300 | $ 61,700 | ||||
CPP [Member] | ||||||
Business Combination, Consideration Transferred | $ 299,200 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | $ 100,000 | |||||
Number of Real Estate Properties | 46 | 23 | ||||
Gains (Losses) on Sales of Investment Real Estate | $ 143,300 | $ 61,700 | ||||
Business Combination, Consideration Transferred | $ 533,788 | |||||
[1] | Represents four separate joint ventures, with four separate accounts managed by Prudential Real Estate Investors ("PREI"), 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. |
Note 4 - Investments and Adva44
Note 4 - Investments and Advances in Real Estate Joint Ventures - Investment Details (Details) ft² in Thousands, $ in Millions | Sep. 30, 2016USD ($)ft² | Dec. 31, 2015USD ($)ft² | Sep. 30, 2015 | ||
Kim Pru and Kim Pru II [Member] | |||||
Average ownership interest | [1],[2] | 15.00% | 15.00% | ||
Number of properties | [1],[2] | 50 | 53 | ||
Total GLA | ft² | [1],[2] | 9,200 | 9,600 | ||
Gross investment in real estate | [1],[2] | $ 2,482.5 | $ 2,531.6 | ||
The company's investment | [1],[2] | $ 163.5 | $ 175.5 | ||
Kimco Income Fund [Member] | |||||
Average ownership interest | [2] | 48.60% | 48.60% | ||
Number of properties | [2] | 46 | 47 | ||
Total GLA | ft² | [2] | 10,600 | 10,800 | ||
Gross investment in real estate | [2] | $ 1,421.6 | $ 1,422.8 | ||
The company's investment | [2] | $ 136 | $ 131 | ||
CPP [Member] | |||||
Average ownership interest | [2] | 55.00% | 55.00% | ||
Number of properties | [2] | 5 | 7 | ||
Total GLA | ft² | [2] | 1,500 | 2,400 | ||
Gross investment in real estate | [2] | $ 306.3 | $ 524.1 | ||
The company's investment | $ 95.8 | [2] | $ 195.6 | ||
Other Institutional Programs [Member] | |||||
Number of properties | [2] | 2 | 9 | ||
Total GLA | ft² | [2] | 300 | 1,500 | ||
Gross investment in real estate | [2] | $ 117.9 | $ 301.5 | ||
The company's investment | [2] | $ 0.4 | $ 5.2 | ||
Other Joint Venture Programs [Member] | |||||
Number of properties | 38 | 40 | |||
Total GLA | ft² | 5,300 | 5,200 | |||
Gross investment in real estate | $ 765.7 | $ 782.8 | |||
The company's investment | $ 77.9 | $ 64 | |||
Canadian Properties [Member] | |||||
Average ownership interest | 50.00% | ||||
Number of properties | 1 | 35 | |||
Total GLA | ft² | 300 | 5,900 | |||
Gross investment in real estate | $ 17.6 | $ 695.3 | |||
The company's investment | $ 4.2 | $ 171.3 | |||
All Equity Method Investments [Member] | |||||
Number of properties | 142 | 191 | |||
Total GLA | ft² | 27,200 | 35,400 | |||
Gross investment in real estate | $ 5,111.6 | $ 6,258.1 | |||
The company's investment | $ 477.8 | $ 742.6 | |||
Number of properties | 46 | 23 | |||
Total GLA | ft² | [3] | 2,066 | |||
[1] | Represents four separate joint ventures, with four separate accounts managed by Prudential Real Estate Investors ("PREI"), 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] | Gross leasable area ("GLA") |
Note 4 - Investments and Adva45
Note 4 - Investments and Advances in Real Estate Joint Ventures - The Company's Share of Net Income/(Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Kim Pru and Kim Pru II [Member] | |||||
Equity in income of joint ventures, net | [1],[2] | $ 2,200 | $ (200) | $ 7,500 | $ 3,300 |
KIR [Member] | |||||
Equity in income of joint ventures, net | [1] | 7,900 | 8,500 | 27,400 | 31,600 |
CPP [Member] | |||||
Equity in income of joint ventures, net | [1] | 1,300 | 2,200 | 6,200 | 7,100 |
Other Institutional Programs [Member] | |||||
Equity in income of joint ventures, net | [1] | 300 | 300 | 900 | 1,500 |
Other Joint Venture Programs [Member] | |||||
Equity in income of joint ventures, net | [1],[3],[4],[5] | (1,600) | (4,700) | 2,700 | 12,200 |
Canadian Properties [Member] | |||||
Equity in income of joint ventures, net | [1] | 1,400 | 4,800 | 145,500 | 75,100 |
Equity in income of joint ventures, net | $ 11,500 | $ 10,900 | $ 190,155 | $ 130,808 | |
[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 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. | ||||
[4] | 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. | ||||
[5] | 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. |
Note 4 - Investments and Adva46
Note 4 - Investments and Advances in Real Estate Joint Ventures - Summary of Properties and Land Parcels Disposed of (Details) $ in Millions | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |||
Kim Pru and Kim Pru II [Member] | ||||
Number of properties | 1 | 5 | ||
Number of Land Parcels | 1 | |||
Aggregate Sales Price | $ 16.5 | $ 84 | ||
Net gain, before income taxes | $ 0.4 | $ (0.8) | ||
KIR [Member] | ||||
Number of properties | 1 | 4 | ||
Number of Land Parcels | ||||
Aggregate Sales Price | $ 23.6 | $ 72.6 | ||
Net gain, before income taxes | $ 4.6 | $ 9 | ||
CPP [Member] | ||||
Number of properties | [1] | 2 | ||
Number of Land Parcels | [1] | |||
Aggregate Sales Price | [1] | $ 299.2 | ||
Net gain, before income taxes | [1] | |||
Other Joint Venture Programs [Member] | ||||
Number of properties | 2 | 10 | [2] | |
Number of Land Parcels | 9 | [2] | ||
Aggregate Sales Price | $ 21.6 | $ 139.9 | [2] | |
Net gain, before income taxes | $ 2.4 | $ (1.1) | [2] | |
Other Institutional Programs [Member] | ||||
Number of properties | [3] | 6 | ||
Number of Land Parcels | [3] | |||
Aggregate Sales Price | [3] | $ 189.8 | ||
Net gain, before income taxes | [3] | $ 0.4 | ||
Canadian Properties [Member] | ||||
Number of properties | 34 | 4 | ||
Number of Land Parcels | 1 | |||
Aggregate Sales Price | $ 894.7 | $ 204.2 | ||
Net gain, before income taxes | $ 135.5 | $ 54.6 | ||
Number of properties | 46 | 23 | ||
Number of Land Parcels | 11 | |||
Aggregate Sales Price | $ 1,445.4 | $ 500.7 | ||
Net gain, before income taxes | $ 143.3 | $ 61.7 | ||
[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 $100.0 million in mortgage debt, which encumbered the operating property. | |||
[2] | The Company acquired the remaining interest in two of these properties during the nine months ended September 30, 2015. | |||
[3] | The Company acquired the remaining interest in five of these properties during the nine months ended September 30, 2016 (see Footnote 2). |
Note 4 - Investments and Adva47
Note 4 - Investments and Advances in Real Estate Joint Ventures - Joint Venture Investments Accounted for under the Equity Method, Debt Details (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Kim Pru and Kim Pru II [Member] | |||
Mortgage and notes payable | $ 791.5 | $ 777.1 | |
Weighted average interest rate | 3.36% | 5.54% | |
Weighted average remaining term | [1] | 4 years 252 days | 1 year 18 days |
KIR [Member] | |||
Mortgage and notes payable | $ 776.2 | $ 811.6 | |
Weighted average interest rate | 4.69% | 4.64% | |
Weighted average remaining term | [1] | 4 years 222 days | 5 years 69 days |
CPP [Member] | |||
Mortgage and notes payable | $ 84.5 | $ 109.9 | |
Weighted average interest rate | 2.08% | 5.25% | |
Weighted average remaining term | [1] | 1 year 210 days | 105 days |
Other Institutional Programs [Member] | |||
Mortgage and notes payable | $ 94.6 | $ 218.5 | |
Weighted average interest rate | 4.07% | 4.92% | |
Weighted average remaining term | [1] | 2 years 9 days | 1 year 255 days |
Other Joint Venture Programs [Member] | |||
Mortgage and notes payable | $ 535.3 | $ 540.7 | |
Weighted average interest rate | 5.56% | 5.61% | |
Weighted average remaining term | [1] | 2 years 120 days | 3 years 3 days |
Canadian Properties [Member] | |||
Mortgage and notes payable | $ 7.8 | $ 341.3 | |
Weighted average interest rate | 4.70% | 4.64% | |
Weighted average remaining term | 1 year 6 days | 4 years 252 days | |
Mortgage and notes payable | $ 2,289.9 | $ 2,799.1 | |
[1] | Average Remaining Term includes extension options. |
Note 5 - Other Real Estate In48
Note 5 - Other Real Estate Investments and Other Assets (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Maximum Exposure [Member] | Preferred Equity Investments [Member] | |||||
Equity Method Investments | $ 190,000 | $ 190,000 | |||
Preferred Equity Investments [Member] | Leased Properties [Member] | |||||
Number of Real Estate Properties | 350 | 350 | |||
Preferred Equity Investments [Member] | |||||
Number of Real Estate Properties | 373 | 373 | |||
Income (Loss) from Equity Method Investments | $ 22,300 | $ 16,500 | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 10,100 | $ 9,200 | |||
Number of Capital Transactions | 4 | 7 | 4 | 7 | |
Equity Method Investments | $ 477,800 | $ 477,800 | $ 742,559 | ||
Number of Real Estate Properties | 46 | 23 | 46 | 23 | |
Income (Loss) from Equity Method Investments | $ 11,500 | $ 10,900 | $ 190,155 | $ 130,808 |
Note 6 - Variable Interest En49
Note 6 - Variable Interest Entities ("VIE") (Details Textual) - Variable Interest Entity, Primary Beneficiary [Member] | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Redevelopment [Member] | |
Number of Consolidated Entities | 1 |
Variable Interest Entity, Financial or Other Support, Amount | $ (7,400,000) |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 7,400,000 |
Consolidated Operating Properties [Member] | |
Variable Interest Entity, Number of Entities | 19 |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | $ 640,800,000 |
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | $ 36,800,000 |
Consolidated Real Estate Under Development Project [Member] | |
Number of Consolidated Entities | 2 |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | $ 173,700,000 |
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | 3,900,000 |
Variable Interest Entity, Financial or Other Support, Amount | $ 77,600,000 |
Note 7 - Mortgages and Other 50
Note 7 - Mortgages and Other Financing Receivables (Details Textual) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Mortgage Loans on Real Estate, Number of Loans | 12 |
Mortgage Loans on Real Estate | $ 23.5 |
Note 8 - Notes and Mortgages 51
Note 8 - Notes and Mortgages Payable (Details Textual) $ in Thousands, CAD in Millions | Aug. 26, 2016CAD | Aug. 26, 2016USD ($) | Aug. 31, 2016USD ($) | May 31, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | |||
Mortgages [Member] | Acquired [Member] | ||||||||||||
Number of Real Estate Properties | 7 | 7 | ||||||||||
Mortgages [Member] | Aggregate Prepayment Charges [Member] | ||||||||||||
Interest Expense | $ 9,200 | |||||||||||
Mortgages [Member] | Operating Properties [Member] | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | $ 231,500 | 231,500 | ||||||||||
Mortgages [Member] | Fair Market Value Adjustment Amount [Member] | ||||||||||||
Long-term Debt, Fair Value | $ 3,800 | $ 3,800 | ||||||||||
Mortgages [Member] | ||||||||||||
Number of Real Estate Properties | 41 | 41 | ||||||||||
Long-term Debt, Fair Value | $ 1,600 | $ 1,600 | ||||||||||
Repayments of Long-term Debt | $ 603,700 | |||||||||||
Unsecured Debt [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 500,000 | $ 150,000 | $ 350,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.80% | 4.25% | 5.70% | [1] | 5.70% | [1] | ||||||
Proceeds from Issuance of Senior Long-term Debt | $ 492,200 | $ 145,400 | ||||||||||
Repayments of Long-term Debt | [1] | $ 290,900 | ||||||||||
Notes, Mature in May 2017 [Member] | Aggregate Prepayment Charges [Member] | ||||||||||||
Interest Expense | $ 10,200 | |||||||||||
Notes, Mature in May 2017 [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.70% | |||||||||||
Repayments of Unsecured Debt | $ 290,900 | |||||||||||
Notes, Mature in April 2018 [Member] | Kimco North Trust III [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.99% | |||||||||||
Debt Instrument, Repurchased Face Amount | CAD | CAD 150 | |||||||||||
Notes, Mature in August 2020 [Member] | Kimco North Trust III [Member] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.855% | |||||||||||
Debt Instrument, Repurchased Face Amount | CAD | CAD 200 | |||||||||||
Kimco North Trust III [Member] | Aggregate Prepayment Charges [Member] | ||||||||||||
Interest Expense | CAD 34.1 | $ 26,300 | ||||||||||
Number of Real Estate Properties | 46 | 23 | 46 | 23 | ||||||||
Repayments of Unsecured Debt | $ 861,850 | $ 600,000 | ||||||||||
Interest Expense | $ 46,552 | $ 54,031 | $ 149,482 | $ 162,739 | ||||||||
[1] | The Company recorded a prepayment charge of $10.2 million resulting from the early repayment of this note. |
Note 8 - Notes and Mortgage Pay
Note 8 - Notes and Mortgage Payable - Medium Term Note Repayments (Details) - USD ($) $ in Millions | 9 Months Ended | ||||
Sep. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | |||
Canadian Notes Payable [Member] | |||||
Repayments of Long-term Debt | [1] | $ 270.9 | |||
Unsecured Debt [Member] | |||||
Repayments of Long-term Debt | [2] | $ 290.9 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.70% | [2] | 2.80% | 4.25% | |
Medium-term Notes [Member] | |||||
Repayments of Long-term Debt | $ 300 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.783% | ||||
[1] | On August 26, 2016, the redemption date, the Company repaid (i) its Canadian denominated (“CAD”) $150.0 million 5.99% notes, which were scheduled to mature in April 2018 and (ii) its CAD $200.0 million 3.855% notes, which were scheduled to mature in August 2020. The Company recorded aggregate early extinguishment of debt charges of CAD $34.1 million (USD $26.3 million) resulting from the early repayment of these notes. | ||||
[2] | The Company recorded a prepayment charge of $10.2 million resulting from the early repayment of this note. |
Note 9 - Redeemable Noncontro53
Note 9 - Redeemable Noncontrolling Interests (Details Textual) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Noncontrolling Interest, Change in Redemption Value | $ 1.2 |
Note 9 - Redeemable Noncontro54
Note 9 - Redeemable Noncontrolling Interests - Redemption Value of the Redeemable Noncontrolling Interests (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Balance | $ 86,709 | $ 91,480 | |
Income (1) | [1] | 3,240 | 5,822 |
Distributions | (3,093) | (4,563) | |
Balance | $ 86,856 | $ 92,739 | |
[1] | Includes $1.2 million in fair market value remeasurement for the nine months ended September 30, 2015. |
Note 10 - Fair Value Measurem55
Note 10 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Fair Value, Inputs, Level 1 [Member] | |||
Marketable Securities | $ 6,500 | $ 5,900 | |
Fair Value, Inputs, Level 3 [Member] | |||
Marketable Securities | $ 1,600 | 1,700 | |
Discontinued Operations [Member] | |||
Asset Impairment Charges | $ 100 | ||
Operating Properties [Member] | |||
Asset Impairment Charges | 21,900 | ||
Other Real Estate Investments [Member] | |||
Asset Impairment Charges | 5,300 | ||
Debt Securities [Member] | |||
Asset Impairment Charges | 800 | ||
Minimum [Member] | |||
Fair Value Inputs, Cap Rate | 6.50% | ||
Fair Value Inputs, Discount Rate | 9.25% | ||
Maximum [Member] | |||
Fair Value Inputs, Cap Rate | 7.75% | ||
Fair Value Inputs, Discount Rate | 10.80% | ||
Marketable Securities | $ 8,141 | $ 7,565 | |
Asset Impairment Charges | $ 68,126 | $ 27,989 |
Note 10 - Fair Value Measurem56
Note 10 - Fair Value Measurements - Estimate of Fair Value Differs from Carrying Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Reported Value Measurement [Member] | Marketable Securities [Member] | |||
Marketable securities (1) | [1] | $ 8,141 | $ 7,565 |
Reported Value Measurement [Member] | Mortgages [Member] | |||
Mortgages payable (3) | [2] | 1,213,120 | 1,614,982 |
Reported Value Measurement [Member] | |||
Notes payable (2) | [3] | 3,786,921 | 3,761,328 |
Estimate of Fair Value Measurement [Member] | Marketable Securities [Member] | |||
Marketable securities (1) | [1] | 8,141 | 7,564 |
Estimate of Fair Value Measurement [Member] | Mortgages [Member] | |||
Mortgages payable (3) | [2] | 1,229,655 | 1,629,760 |
Estimate of Fair Value Measurement [Member] | |||
Notes payable (2) | [3] | 3,922,026 | $ 3,820,205 |
Mortgages [Member] | |||
Mortgages payable (3) | $ 1,600 | ||
[1] | As of September 30, 2016 and December 31, 2015, the Company determined that $6.5 million and $5.9 million, respectively, of the Marketable securities estimated fair value were classified within Level 1 of the fair value hierarchy and the remaining $1.6 million and $1.7 million, respectively, were classified within Level 3 of the fair value hierarchy. | ||
[2] | The Company determined that its valuation of Mortgages payable was classified within Level 3 of the fair value hierarchy. | ||
[3] | The Company determined that its valuation of Notes payable was classified within Level 2 of the fair value hierarchy. |
Note 10 - Fair Value Measurem57
Note 10 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Real estate | |||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Real estate | |||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Real estate | 93,030 | 52,439 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Real estate | 93,030 | 52,439 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Marketable equity securities | 6,542 | 5,909 | |
Interest rate swaps (1) | [1] | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Marketable equity securities | |||
Interest rate swaps (1) | [1] | 1,858 | 1,426 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Marketable equity securities | |||
Interest rate swaps (1) | [1] | ||
Fair Value, Measurements, Recurring [Member] | |||
Marketable equity securities | 6,542 | 5,909 | |
Interest rate swaps (1) | [1] | $ 1,858 | $ 1,426 |
[1] | Included in Other liabilities on the Company's Condensed Consolidated Balance Sheets. |
Note 11 - Preferred Stock and58
Note 11 - Preferred Stock and Common Stock (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended | |
Feb. 28, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | |
ATM Program [Member] | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||
Maximum Aggregate Sales Price | $ 500 | ||
Stock Issued During Period, Shares, New Issues | 9,806,377 | ||
Proceeds from Issuance of Common Stock | $ 285.2 | ||
Payments of Stock Issuance Costs | $ 2.9 | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Note 11 - Preferred Stock and59
Note 11 - Preferred Stock and Common Stock - Outstanding Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Series I Preferred Stock [Member] | ||
Shares authorized (in shares) | 18,400 | |
Shares issued and outstanding (in shares) | 16,000 | |
Liquidation preference | $ 400,000 | |
Dividend rate | 6.00% | |
Annual dividend per depository share (in dollars per share) | $ 1.50 | |
Par value (in dollars per share) | $ 1 | |
Series J Preferred Stock [Member] | ||
Shares authorized (in shares) | 9,000 | |
Shares issued and outstanding (in shares) | 9,000 | |
Liquidation preference | $ 225,000 | |
Dividend rate | 5.50% | |
Annual dividend per depository share (in dollars per share) | $ 1.375 | |
Par value (in dollars per share) | $ 1 | |
Series K Preferred Stock [Member] | ||
Shares authorized (in shares) | 8,050 | |
Shares issued and outstanding (in shares) | 7,000 | |
Liquidation preference | $ 175,000 | |
Dividend rate | 5.625% | |
Annual dividend per depository share (in dollars per share) | $ 1.40625 | |
Par value (in dollars per share) | $ 1 | |
Total [Member] | ||
Shares authorized (in shares) | 35,450 | |
Shares issued and outstanding (in shares) | 32,000 | |
Liquidation preference | $ 800,000 | |
Shares authorized (in shares) | 6,029,100 | 6,029,100 |
Liquidation preference | $ 800,000 | $ 800,000 |
Par value (in dollars per share) | $ 1 | $ 1 |
Note 12 - Supplemental Schedu60
Note 12 - Supplemental Schedule of Non-cash Investing / Financing Activities - Non-Cash Investing and Financing Activities (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Acquisition of real estate interests by assumption of mortgage debt | $ 33,174 | $ 20,800 | |
Acquisition of real estate interests through proceeds held in escrow | 66,044 | 39,849 | |
Proceeds held in escrow through sale of real estate interests | 66,431 | 36,733 | |
Disposition of real estate interests by assignment of debt | 15,744 | ||
Disposition of real estate interests through the issuance of mortgage receivable | 5,730 | ||
Issuance of common stock | 85 | 488 | |
Surrender of restricted common stock | (6,904) | (5,604) | |
Declaration of dividends paid in succeeding period | 118,136 | 111,480 | $ 115,182 |
(Decrease)/increase in capital expenditures accrual | (5,582) | 11,700 | |
Increase in real estate and other assets | 316,772 | 977,807 | |
Increase in mortgages payable, other liabilities and non-controlling interests | $ 194,964 | $ 694,530 |
Note 13 - Incentive Plans (Deta
Note 13 - Incentive Plans (Details Textual) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | May 01, 2012 | |
Prior Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 47,000,000 | ||
The 2010 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 10,000,000 | ||
Employee Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Employee Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Restricted Stock [Member] | i [Member] | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Percent Vested | 100.00% | ||
Restricted Stock [Member] | Vesting Ratably First Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Restricted Stock [Member] | Vesting Ratably Third Vesting [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Restricted Stock [Member] | IV [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | ||
Share-Based Compensation Arrangement By Share-Based Payment Award, Percent Vested | 20.00% | ||
Performance Shares [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Performance Shares [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Allocated Share-based Compensation Expense | $ 15.3 | $ 15.3 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 34.9 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 146 days |
Note 14 - Accumulated Other C62
Note 14 - Accumulated Other Comprehensive Income ("AOCI") (Details Textual) $ in Millions | Sep. 30, 2016USD ($) |
CANADA | |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ 7.6 |
Note 14 - Accumulated Other C63
Note 14 - Accumulated Other Comprehensive Income ("AOCI") - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Balance | $ 6,616 | $ 329 | |
Other comprehensive income before reclassifications | 971 | (14,973) | |
Amounts reclassified from AOCI | [1] | ||
Net current-period other comprehensive income | 971 | (14,973) | |
Balance | 7,587 | (14,644) | |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Balance | 398 | 46,197 | |
Other comprehensive income before reclassifications | 18 | (5,930) | |
Amounts reclassified from AOCI | (38,488) | [1] | |
Net current-period other comprehensive income | 18 | (44,418) | |
Balance | 416 | 1,779 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Balance | (1,426) | (1,404) | |
Other comprehensive income before reclassifications | (432) | (475) | |
Amounts reclassified from AOCI | [1] | ||
Net current-period other comprehensive income | (432) | (475) | |
Balance | (1,858) | (1,879) | |
Balance | 5,588 | 45,122 | |
Other comprehensive income before reclassifications | 557 | (21,378) | |
Amounts reclassified from AOCI | (38,488) | [1] | |
Net current-period other comprehensive income | 557 | (59,866) | |
Balance | $ 6,145 | $ (14,744) | |
[1] | Amounts reclassified to Interest, dividends and other investment income on the Company's Condensed Consolidated Statements of Income. |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended |
Aug. 31, 2016 | Sep. 30, 2016 | |
Minimum [Member] | Statute of Limitations [Member] | ||
Number of Years | 3 years | |
Maximum [Member] | Statute of Limitations [Member] | ||
Number of Years | 7 years | |
Internal Revenue Service (IRS) [Member] | Earliest Tax Year [Member] | ||
Income Tax Examination, Year under Examination | 2,004 | |
Internal Revenue Service (IRS) [Member] | Latest Tax Year [Member] | ||
Income Tax Examination, Year under Examination | 2,009 | |
Internal Revenue Service (IRS) [Member] | Tax Year 2009 [Member] | ||
Income Tax Examination, Potential Penalty, Percent | 100.00% | |
Income Tax Examination, Penalties Expense | $ 40,900,000 | |
Income Tax Examination, Liability (Refund) Adjustment from Settlement with Taxing Authority | (100,000) | |
Unrecognized Tax Benefits, Increase Resulting from Settlements with Taxing Authorities | 2,000,000 | |
Mexican Tax Authority [Member] | Tax Year 2010 [Member] | ||
Income Tax Examination, Year under Examination | 2,010 | |
Tax Assessment Estimated Tax Expense | $ 33,700,000 | |
Tax Assessment Estimated Interest Expense | 16,600,000 | |
Tax Assessment Estimated Penalties Expense | 11,400,000 | |
Taxes Payable | $ 0 | |
Deferred Tax Assets, Valuation Allowance | $ 63,500,000 |