Kimco Realty Corporation and Subsidiaries
## Table 0 ##
9.
Mortgages and Other Financing Receivables: During January 2006, the Company provided approximately $16.0 million as its share of a $50.0 million junior participation in a $700.0 million first mortgage loan, in connection with a private investment firm’s acquisition of a retailer.
This loan participation bore interest at LIBOR plus 7.75% per annum and had a two-year term with a one-year extension option and was collateralized by certain real estate interests of the retailer.
During June 2006, the borrower elected to pre-pay the outstanding loan balance of approximately $16.0 million in full satisfaction of this loan.
Additionally, during January 2006, the Company provided approximately $5.2 million as its share of an $11.5 million term loan to a real estate developer for the acquisition of a 59 acre land parcel located in San Antonio, TX.
This loan is interest only at a fixed rate of 11.0% for a term of two years payable monthly and collateralized by a first mortgage on the subject property.
As of December 31, 2006, the outstanding balance on this loan was approximately $5.2 million.
During February 2006, the Company committed to provide a one year $17.2 million credit facility at a fixed rate of 8.0% for a term of nine months and 9.0% for the remaining term to a real estate investor for the recapitalization of a discount and entertainment mall that it currently owns.
During 2006, this facility was fully paid and was terminated.
During April 2006, the Company provided two separate mortgages aggregating $14.5 million on a property owned by a real estate investor.
Proceeds were used to payoff the existing first mortgage, buyout the existing partner and for redevelopment of the property.
The mortgages bear interest at 8.0% per annum and mature in 2008 and 2013.
These mortgages are collateralized by the subject property.
As of December 31, 2006, the aggregate outstanding balance on these mortgages was approximately $15.0 million, including $0.5 million of accrued interest.
During May 2006, the Company provided a CAD $23.5 million collateralized credit facility at a fixed rate of 8.5% per annum for a term of two years to a real estate company for the execution of its property acquisitions program.
The credit facility is guaranteed by the real estate company.
The Company was issued 9,811 units, valued at approximately USD $0.1 million, and warrants to purchase up to 0.1 million shares of the real estate company as a loan origination fee.
During August 2006, the Company increased the credit facility to CAD $45.0 million and received an additional 9,811 units, valued at approximately USD $0.1 million, and warrants to purchase up to 0.1 million shares of the real estate company.
As of December 31, 2006, the outstanding balance on this credit facility was approximately CAD $3.6 million (approximately USD $3.1 million).
During September 2005, a newly formed joint venture, in which the Company had an 80% interest, acquired a 90% interest in a $48.4 million mortgage receivable for a purchase price of approximately $34.2 million.
This loan bore interest at a rate of three-month LIBOR plus 2.75% per annum and was scheduled to mature on January 12, 2010.
A 626-room hotel located in Lake Buena Vista, FL collateralized the loan.
The Company had determined that this joint venture entity was a VIE and had further determined that the Company was the primary beneficiary of this VIE and had therefore consolidated it for financial reporting purposes.
During March 2006, the joint venture acquired the remaining 10% of this mortgage receivable for a purchase price of approximately $3.8 million.
During June 2006, the joint venture accepted a pre-payment of approximately $45.2 million from the borrower as full satisfaction of this loan.
During August 2006, the Company provided $8.8 million as its share of a $13.2 million 12-month term loan to a retailer for general corporate purposes.
This loan bears interest at a fixed rate of 12.50% with interest payable monthly and a balloon payment for the principal balance at maturity.
The loan is collateralized by the underlying real estate of the retailer.
Additionally, the Company funded $13.3 million as its share of a $20.0 million revolving Debtor-in-Possession facility to this retailer.
The facility bears interest at LIBOR plus 3.00% and has an unused line fee of 0.375%.
This credit facility is collateralized by a first priority lien on all the retailer’s assets.
As of December 31, 2006, the Company’s share of the outstanding balance on this loan and credit facility was approximately $7.6 million and $4.9 million, respectively.
During September 2006, the Company provided a MXP 57.3 million (approximately USD $5.3 million) loan to an owner of an operating property in Mexico.
The loan, which is collateralized by the property, bears interest at 12.0% per annum and matures in 2016.
The Company is entitled to a participation feature of 25% of annual cash flows after debt service and 20% of the gain on sale of the property.
As of December 31, 2006, the outstanding balance on this loan was approximately MXP 57.8 million (approximately USD $5.3 million).
During November 2006, the Company committed to provide a MXP 124.8 million (approximately USD $11.5 million) loan to an owner of a land parcel in Acapulco, Mexico.
The loan, which is collateralized with an operating property owned by the borrower, bears interest at 10% per annum and matures in 2016.
The Company is entitled to a participation feature of 20% of excess cash flows and gains on sale of the property.
As of December 31, 2006, the outstanding balance on this loan was MXP 12.8 million (approximately USD $1.2 million).
Table of Contents requiring more management judgment to estimate the appropriate fair value measurement.
Accordingly, the degree of judgment exercised by management in determining fair value is greater for financial assets and liabilities categorized as Level 3.
Our valuation processes include a number of key controls that are designed to ensure that fair value is measured appropriately.
The following table summarizes our financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2011 and 2010:
## Table 1 ##
As of December 31, 2011, our available-for-sale securities portfolio, consisting of agency-issued mortgage-backed securities, agency-issued collateralized mortgage obligations, U. S.  agency debentures, U. S.  treasury securities and municipal bonds and notes, represented $10.5 billion, or 92.6 percent of our portfolio of assets measured at fair value on a recurring basis, compared to $7.9 billion, or 92.6 percent, as of December 31, 2010.
These instruments were classified as Level 2 because their valuations were based on indicative prices corroborated by observable market quotes or valuation techniques with all significant inputs derived from or corroborated by observable market data.
The fair value of our available-for-sale securities portfolio is sensitive to changes in levels of market interest rates and market perceptions of credit quality of the underlying securities.
Market valuations and impairment analyses on assets in the available-for-sale securities portfolio are reviewed and monitored on a quarterly basis.
Assets valued using Level 2 measurements also include equity warrant assets in shares of public company capital stock, marketable securities, interest rate swaps, foreign exchange forward and option contracts, loan conversion options and client interest rate derivatives.
To the extent available-for-sale securities are used to secure borrowings, changes in the fair value of those securities could have an impact on the total amount of secured financing available.
We pledge securities to the Federal Home Loan Bank of San Francisco and the discount window at the Federal Reserve Bank.
The market value of collateral pledged to the Federal Home Loan Bank of San Francisco (comprised entirely of U. S.  agency debentures) at December 31, 2011 totaled $1.5 billion, all of which was unused and available to support additional borrowings.
The market value of collateral pledged at the discount window of the Federal Reserve Bank in accordance with our liquidity risk management practices at December 31, 2011 totaled $100.5 million, all of which was unused and available to support additional borrowings.
We have repurchase agreements in place with multiple securities dealers, which allow us to access short-term borrowings by using available-for-sale securities as collateral.
At December 31, 2011, we had not utilized any of our repurchase lines to secure borrowed funds.
Financial assets valued using Level 3 measurements consist primarily of our investments in venture capital and private equity funds and direct equity investments in privately held companies.
Our managed funds and debt fund that hold these investments qualify as investment companies under the American Institute of Certified Public Accountants (“AICPA”) Audit and Accounting Guide for Investment Companies and accordingly, these funds report their investments at estimated fair value, with unrealized gains and losses resulting from changes in fair value reflected as investment gains or losses in our consolidated statements of income.
Assets valued using Level 3 measurements also include equity warrant assets in shares of private company capital stock.
Table of Contents Average Balances, Yields and Rates Paid (Fully Taxable Equivalent Basis) The average yield earned on interest-earning assets is the amount of annualized fully taxable equivalent interest income expressed as a percentage of average interest-earning assets.
The average rate paid on funding sources is the amount of annualized interest expense expressed as a percentage of average funding sources.
The following tables set forth average assets, liabilities, noncontrolling interests and SVBFG stockholders’ equity, interest income, interest expense, annualized yields and rates, and the composition of our annualized net interest margin in 2011, 2010 and 2009.
## Table 2 ##
(1) Includes average interest-earning deposits in other financial institutions of $324.2 million, $217.4 million and $176.5 million in 2011, 2010 and 2009, respectively.
For 2011, 2010 and 2009, balances also include $1.4 billion, $3.5 billion and $3.1 billion, respectively, deposited at the Federal Reserve Bank, earning interest at the Federal Funds target rate.

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2006	2005
Remaining net rentals	$62.3	$68.9
Estimated unguaranteed residual value	40.5	43.8
Non-recourse mortgage debt	-48.4	-52.8
Unearned and deferred income	-50.7	-55.9
Net investment in leveraged lease	$3.7	$4.0

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December 31,
2011	2010
(Dollars in thousands)	Total Balance	Level 3	Total Balance	Level 3
Assets carried at fair value	$11,372,081	$799,962	$8,546,528	$547,608
As a percentage of total assets	56.9%	4.0%	48.8%	3.1%
Liabilities carried at fair value	$16,868	$—	$10,267	$—
As a percentage of total liabilities	0.1%	—%	0.1%	—%
Level 1 and 2	Level 3	Level 1 and 2	Level 3
Percentage of assets measured at fair value	93.0%	7.0%	93.6%	6.4%

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Year ended December 31,
2011	2010	2009
(Dollars in thousands)	Average Balance	Interest Income/ Expense	Yield/ Rate	Average Balance	Interest Income/ Expense	Yield/ Rate	Average Balance	Interest Income/ Expense	Yield/ Rate
Interest-earning assets:
Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities-1	$1,974,001	$6,486	0.33%	$3,869,781	$10,960	0.28%	$3,333,182	$9,790	0.29%
Available-for-sale securities: -2
Taxable	9,256,688	165,449	1.79	5,249,884	127,422	2.43	2,179,181	81,536	3.74
Non-taxable -3	93,693	5,574	5.95	97,443	5,860	6.01	103,150	6,298	6.11
Total loans, net of unearned income -4	5,815,071	389,830	6.70	4,435,911	319,540	7.20	4,699,696	335,806	7.15
Total interest-earning assets	17,139,453	567,339	3.31	13,653,019	463,782	3.40	10,315,209	433,430	4.20
Cash and due from banks	283,596	232,058	238,911
Allowance for loan losses	-88,104	-77,999	-107,512
Goodwill	—	—	1,000
Other assets -5	1,335,554	1,051,158	878,733
Total assets	$18,670,499	$14,858,236	$11,326,341
Funding sources:
Interest-bearing liabilities:
NOW deposits	$87,099	$270	0.31%	$51,423	$208	0.40%	$42,022	$160	0.38%
Money market deposits	2,508,279	5,131	0.20	1,818,113	5,308	0.29	1,183,848	6,152	0.52
Money market deposits in foreign offices	130,693	294	0.22	83,253	272	0.33	62,440	416	0.67
Time deposits	258,810	1,102	0.43	361,921	1,786	0.49	355,602	2,445	0.69
Sweep deposits in foreign offices	2,346,076	2,065	0.09	2,496,649	7,204	0.29	1,860,899	12,173	0.65
Total interest-bearing deposits	5,330,957	8,862	0.17	4,811,359	14,778	0.31	3,504,811	21,346	0.61
Short-term borrowings	16,994	25	0.15	49,972	92	0.18	46,133	72	0.16
5.375% Senior Notes	347,689	19,244	5.53	98,081	5,345	5.45	—	—	—
3.875% Convertible Notes	71,108	4,210	5.92	248,056	14,147	5.70	245,756	14,043	5.71
Junior Subordinated Debentures	55,467	3,325	5.99	55,706	3,061	5.49	55,948	3,465	6.19
5.70% Senior Note and 6.05% Subordinated Notes	317,855	3,151	0.99	559,915	5,895	1.05	560,398	9,166	1.64
Other long-term debt	4,704	294	6.25	6,620	278	4.20	61,752	984	1.59
Total interest-bearing liabilities	6,144,774	39,111	0.64	5,829,709	43,596	0.75	4,474,798	49,076	1.10
Portion of noninterest-bearing funding sources	10,994,679	7,823,310	5,840,411
Total funding sources	17,139,453	39,111	0.23	13,653,019	43,596	0.32	10,315,209	49,076	0.47
Noninterest-bearing funding sources:
Demand deposits	10,237,844	7,216,968	5,289,288
Other liabilities	268,721	189,475	179,795
SVBFG stockholders’ equity	1,448,398	1,230,569	1,063,175
Noncontrolling interests	570,762	391,515	319,285
Portion used to fund interest-earning assets	-10,994,679	-7,823,310	-5,840,411
Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity stockholders’ equity	$18,670,499	$14,858,236	$11,326,341
Net interest income and margin	$528,228	3.08%	$420,186	3.08%	$384,354	3.73%
Total deposits	$15,568,801	$12,028,327	$8,794,099
Reconciliation to reported net interest income:
Adjustment for tax-equivalent basis	-1,951	-2,051	-2,204
Net interest income, as reported	$526,277	$418,135	$382,150

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Question: what is the yearly interest income generated by the collateralized credit facility provided to the real estate company for the execution of its property acquisitions program , in million cad?
Answer: 1.9975