☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-32268 Kite Realty Group Trust UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q 30 S. Meridian Street, Suite 1100, Indianapolis, Indiana 46204 (Address of principal executive offices) (Zip ...

Financial Data and Key Metrics Changes - Kite Realty Group Trust reported NAREIT FFO per share of $0.51 and core FFO per share of $0.50 for Q2 2025, reflecting strong operational performance [14] - Same property NOI grew by 3.3%, driven by a 250 basis point contribution from higher minimum rents and a 50 basis point improvement in net recoveries [15] - The company increased its NAREIT and core FFO per share guidance by $0.01 each, primarily due to lower than anticipated bad debt and higher than anticipated overage rent [15] Business Line Data and Key Metrics Changes - Blended cash leasing spreads in Q2 were 17%, the highest quarterly blended spread in the past five years [5] - Leasing spreads for non-option renewals were nearly 20% in Q2 and 16% over the last twelve months [6] - New leasing volume more than doubled sequentially, driven by 11 new anchor leases executed in Q2 [6] Market Data and Key Metrics Changes - Over 80% of the boxes recaptured due to recent bankruptcies are leased or in active negotiations, indicating strong demand in the market [11] - The small shop lease rate increased by 30 basis points sequentially and 80 basis points year over year, reflecting a disciplined approach to leasing [8] Company Strategy and Development Direction - The company is focused on capital recycling efforts to reshape its portfolio and reduce exposure to at-risk tenants, with significant steps taken in executing its long-term portfolio vision [10] - Strategic partnerships with GIC now comprise over $1 billion of gross asset value, indicating a strong focus on lifestyle and mixed-use assets [11] - The company aims to enhance its long-term growth profile by prioritizing credit quality and strong starting rents in its leasing strategy [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the leasing momentum and the potential for significant occupancy gains in the coming quarters [14][45] - The company is focused on delivering strong results and creating long-term value, despite short-term disruptions from anchor bankruptcies [12][18] - Management believes that the current market conditions present a great opportunity for growth and investment in the stock [49] Other Important Information - The company has comprehensive flood insurance for Eastgate Crossing, which suffered flooding due to Tropical Storm Chantal [12] - The company opportunistically returned to the public debt market by issuing a seven-year $300 million bond at a coupon of 5.2% [17] Q&A Session Summary Question: Have you seen any meaningful changes in lease gestation periods? - Management noted that leasing activity has picked up substantially, indicating strong demand across the board [20] Question: What are you hearing from prospective tenants regarding higher embedded escalators? - Management reported success in generating higher growth, with embedded growth in the overall portfolio at 3.4% for the first half of the year [23][24] Question: Can you comment on the forward leasing pipeline and July activity? - Management expressed confidence in the strong demand and the quality of opportunities available for retailers [27] Question: What is the latest on the sale of City Center? - The property is still being marketed for sale, with new leasing activity providing some positive momentum [37] Question: How are you seeing investor interest in larger community centers? - Management indicated strong demand for larger format centers, with institutional investors showing renewed interest [43] Question: What is the appetite for share buybacks today? - Management stated that they are always considering buybacks but are currently focused on capital investments with high returns [102]

Financial Data and Key Metrics Changes - Kite Realty Group Trust reported NAREIT FFO per share of $0.51 and core FFO per share of $0.50 for Q2 2025, reflecting a year-over-year growth despite temporary disruptions from anchor bankruptcies [15][16] - Same property NOI grew by 3.3%, driven by a 250 basis point contribution from higher minimum rents and a 50 basis point improvement in net recoveries [16] - The company increased its NAREIT and core FFO per share guidance by $0.01 each, primarily due to lower than anticipated bad debt and higher than anticipated overage rent [16] Business Line Data and Key Metrics Changes - Blended cash leasing spreads in Q2 were 17%, the highest quarterly blended spread in the past five years, with non-option renewals showing almost 20% leasing spreads [6][7] - New leasing volume more than doubled sequentially, driven by 11 new anchor leases executed in the quarter, including grocery leases with Whole Foods and Trader Joe's [7][8] - Small shop lease rates increased by 30 basis points sequentially and 80 basis points year-over-year, with embedded escalators on new and non-option renewal small shop leases at 3.4% for 2025 [8][9] Market Data and Key Metrics Changes - The company reported that over 80% of the boxes recaptured due to recent bankruptcies are leased or in active negotiations, indicating strong demand in the leasing pipeline [8][12] - The strategic partnership with GIC now comprises over $1 billion in gross asset value, reflecting strong investor interest in lifestyle and mixed-use assets [11][12] Company Strategy and Development Direction - The company is focused on capital recycling efforts to reshape its portfolio and reduce exposure to at-risk tenants, with a strategy to increase focus on smaller format grocery-anchored centers and select lifestyle and mixed-use assets [11][12] - The management emphasized the importance of upgrading tenancy to bolster the durability of cash flows, trading short-term earnings disruption for long-term growth potential [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the leasing momentum and the potential for significant occupancy gains in the coming quarters, despite the challenges posed by recent bankruptcies [15][46] - The company is confident in its ability to accelerate rent commencement timelines through proactive engagement with tenants and efficient permitting processes [32][46] - Management believes that the current market conditions present a great opportunity for growth, positioning the company well for the next few years [46][50] Other Important Information - The company has comprehensive flood insurance for Eastgate Crossing, which suffered flooding due to Tropical Storm Chantal, ensuring coverage well in excess of estimated damages [13] - The company opportunistically returned to the public debt market by issuing a seven-year $300 million bond at a coupon of 5.2% [18] Q&A Session Summary Question: Have you seen any meaningful changes in lease gestation periods? - Management noted that leasing activity has picked up substantially, indicating strong demand across the board [21] Question: What are you hearing from prospective tenants regarding higher embedded escalators? - Management reported success in generating higher growth, with average escalators for anchor tenants improving from around 1% to 1.5% [23][24] Question: Can you comment on the forward leasing pipeline and July activity? - Management expressed confidence in the strong demand and the quality of opportunities available, indicating a significant increase in new lease volume [27][28] Question: What is the latest on the sale of City Center? - The property is still being marketed for sale, with recent leasing activity providing some positive momentum [37] Question: How are you seeing investor interest in larger community centers? - Management indicated strong demand for larger format centers, with institutional investors showing renewed interest in the retail space [44][66] Question: What is the appetite for share buybacks today? - Management stated that they are always considering buybacks but are currently focused on capital investments that yield high returns [100] Question: Can you provide guidance on the equity and JV line for the rest of the year? - Management explained that the JV activities will be reflected in the income statement under unconsolidated subsidiaries, with detailed information available in the supplemental materials [93][94]

Financial Performance - Same Property NOI increased by 33% for the three months ended June 30, 2025, reaching $144104 million, compared to $139512 million in 2024[88] - Same Property NOI increased by 32% for the six months ended June 30, 2025, reaching $287903 million, compared to $279038 million in 2024[88] - Net income attributable to common shareholders was $110318 million for the three months ended June 30, 2025, compared to a loss of $48638 million in 2024[88] - Net income attributable to common shareholders was $134048 million for the six months ended June 30, 2025, compared to a loss of $34482 million in 2024[88] - NAREIT FFO attributable to common shareholders was $111499 million for the three months ended June 30, 2025, compared to $115541 million in 2024[90] - NAREIT FFO attributable to common shareholders was $231816 million for the six months ended June 30, 2025, compared to $226559 million in 2024[90] - Adjusted EBITDA annualized reached $590690 million[93] Portfolio and Transactions - YTD 2025 transaction activity shows acquisitions of $4766 million at a 65% effective yield and dispositions of $2584 million at a 65% yield, resulting in net transaction activity of +$2182 million[35] - The signed-not-open (SNO) pipeline increased to $316 million, with 37% from anchor tenants and 63% from shop tenants[21] - 88% of the SNO pipeline is from the same property NOI pool, and 12% is from the non-same property NOI pool[21]

分组1 - Kite Realty Group (KRG) reported quarterly funds from operations (FFO) of $0.51 per share, matching the Zacks Consensus Estimate, but down from $0.53 per share a year ago [1] - The company posted revenues of $213.4 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 0.12% and up from $212.43 million year-over-year [2] - Kite Realty Group shares have declined approximately 8.6% since the beginning of the year, contrasting with the S&P 500's gain of 8.3% [3] 分组2 - The future performance of Kite Realty Group's stock will largely depend on management's commentary during the earnings call and the outlook for FFO [3][4] - The current consensus FFO estimate for the upcoming quarter is $0.50 on revenues of $211.98 million, and for the current fiscal year, it is $2.07 on revenues of $864.59 million [7] - The Zacks Industry Rank places the REIT and Equity Trust - Retail sector in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

[Earnings Press Release](index=3&type=section&id=Earnings%20Press%20Release) Provides a comprehensive overview of Kite Realty Group's strong second-quarter 2025 financial and operational performance, including key highlights, strategic initiatives, and updated guidance [Second Quarter 2025 Highlights](index=3&type=section&id=Second%20Quarter%202025%20Highlights) Kite Realty Group reported strong second-quarter 2025 results, highlighted by a significant turnaround in net income to $110.3 million from a net loss of $48.6 million year-over-year, raising its 2025 guidance driven by robust operational performance and strategic capital moves Q2 2025 vs Q2 2024 Net Income | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income (Loss) Attributable to Common Shareholders | $110.3 million | ($48.6 million) | | Net Income (Loss) per Diluted Share | $0.50 | ($0.22) | - Key strategic and operational achievements for Q2 2025 include: - Raised full-year 2025 guidance[8](index=8&type=chunk) - Leased approximately **1.2 million square feet** with **17.0% comparable blended cash leasing spreads**[9](index=9&type=chunk) - Formed a second Joint Venture (JV) with GIC, generating **$112.1 million in gross proceeds**[9](index=9&type=chunk) - Sold Fullerton Metrocenter for gross proceeds of **$118.5 million**[9](index=9&type=chunk) - Issued **$300 million** of 5.20% senior unsecured notes due 2032[9](index=9&type=chunk) - CEO John A. Kite attributed the strong quarter to persistent tenant demand, leading to higher starting rents and an improved merchandising mix, with the company's capital allocation strategy involving acquiring a majority stake in Legacy West while monetizing minority interests and selling non-core assets[9](index=9&type=chunk) [Second Quarter 2025 Financial and Operational Results](index=3&type=section&id=Second%20Quarter%202025%20Financial%20and%20Operational%20Results) The company generated NAREIT FFO of $0.51 per share and Core FFO of $0.50 per share, with Same Property NOI increasing by 3.3%, executing 170 leases totaling 1.2 million square feet at 17.0% blended cash leasing spreads, and retail portfolio ABR per square foot growing 5.4% year-over-year to $22.02 despite a 150 basis point decrease in leased percentage to 93.3% due to anchor bankruptcies Q2 2025 Key Financial Metrics | Metric | Value | Per Diluted Share | | :--- | :--- | :--- | | NAREIT FFO of the Operating Partnership | $114.0 million | $0.51 | | Core FFO of the Operating Partnership | $113.2 million | $0.50 | - Same Property Net Operating Income (NOI) increased by **3.3%**[10](index=10&type=chunk) - Executed **170 new and renewal leases** for approximately **1.2 million square feet**[10](index=10&type=chunk) - Blended cash leasing spreads were **17.0%**, with new leases at **31.3%** and non-option renewals at **19.7%**[10](index=10&type=chunk) - Operating retail portfolio ABR per square foot increased **5.4% YoY** to **$22.02**[10](index=10&type=chunk) - Retail portfolio leased percentage was **93.3%**, a **150 bps decrease YoY**, mainly due to anchor bankruptcies[10](index=10&type=chunk) [Second Quarter 2025 Capital Allocation and Balance Sheet](index=4&type=section&id=Second%20Quarter%202025%20Capital%20Allocation%20and%20Balance%20Sheet) KRG was active in capital allocation, acquiring a majority stake in Legacy West while monetizing minority interests and selling non-core assets, and issuing $300 million in senior unsecured notes to repay existing debt, resulting in a net debt to Adjusted EBITDA of 5.1x - Acquired a **52.0% interest** in Legacy West (Dallas/Fort Worth MSA) for **$785 million** (**$408 million** at KRG's share) through a JV with GIC[14](index=14&type=chunk) - Formed a second JV with GIC by contributing three shopping centers, generating gross proceeds of **$112.1 million** while retaining a **52.0% ownership interest**[14](index=14&type=chunk) - Sold Fullerton Metrocenter (Los Angeles MSA) for **$118.5 million** and two other properties for a combined **$27.8 million**[14](index=14&type=chunk) - Issued **$300 million** of 5.20% senior unsecured notes due 2032, using proceeds to repay a term loan and other borrowings[14](index=14&type=chunk) - Net debt to Adjusted EBITDA was **5.1x** as of June 30, 2025[14](index=14&type=chunk) [Dividend](index=4&type=section&id=Dividend) The Board of Trustees declared a third-quarter 2025 dividend of $0.27 per common share, marking a 3.8% increase compared to the previous year, payable on October 16, 2025 - A Q3 2025 dividend of **$0.27 per common share** was declared, a **3.8% year-over-year increase**[13](index=13&type=chunk) - The dividend will be paid on or about October 16, 2025, to shareholders of record as of October 9, 2025[13](index=13&type=chunk) [2025 Earnings Guidance](index=4&type=section&id=2025%20Earnings%20Guidance) Kite Realty Group raised its full-year 2025 guidance, now expecting NAREIT FFO per diluted share between $2.06 and $2.10 and Core FFO between $2.02 and $2.06, based on assumptions including 1.50% to 2.50% Same Property NOI growth Updated 2025 Guidance (per diluted share) | Metric | Low | High | | :--- | :--- | :--- | | Net Income | $0.75 | $0.79 | | NAREIT FFO | $2.06 | $2.10 | | Core FFO | $2.02 | $2.06 | - Key assumptions for the 2025 guidance include: - Same Property NOI growth between **1.50% and 2.50%**[15](index=15&type=chunk) - Full-year credit disruption of **1.85% of total revenues** at the midpoint[15](index=15&type=chunk) - Interest expense, net of interest income, of **$124.75 million** at the midpoint[15](index=15&type=chunk) [Company and Risk Overview](index=5&type=section&id=Company%20and%20Risk%20Overview) Kite Realty Group is a REIT specializing in open-air, grocery-anchored shopping centers and mixed-use assets, primarily in high-growth Sun Belt markets, facing risks including economic conditions, financing, tenant stability, and geographical concentration - KRG is a REIT owning and operating **181 U.S. open-air shopping centers and mixed-use assets**, totaling **~29.8 million sq. ft. of GLA** as of June 30, 2025[18](index=18&type=chunk) - The portfolio is primarily grocery-anchored and located in high-growth Sun Belt and strategic gateway markets[18](index=18&type=chunk) - Key risk factors include: - Economic slowdowns, rising interest rates, and inflation[20](index=20&type=chunk) - Financing risks, including availability and cost of liquidity[20](index=20&type=chunk) - Financial stability of tenants and the competitive retail environment[20](index=20&type=chunk) - Geographical concentration of properties in Texas, Florida, and North Carolina[20](index=20&type=chunk) [Financial and Operating Data](index=8&type=section&id=Financial%20and%20Operating%20Data) Presents detailed financial statements and key operating metrics for Kite Realty Group, offering a comprehensive view of its performance and balance sheet position [Results Overview](index=8&type=section&id=Results%20Overview) This section provides a comprehensive summary of KRG's financial results and operating statistics, with Q2 2025 total revenue at $213.4 million, net income at $110.3 million, and a Same Property NOI increase of 3.3% Q2 2025 Financial Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total revenue | $213,395 | $212,434 | | Net income (loss) | $110,318 | $(48,638) | | NAREIT FFO | $113,965 | $117,487 | | Core FFO | $113,160 | $111,605 | Q2 2025 Operating Ratios and Statistics | Metric | Q2 2025 | | :--- | :--- | | Same Property NOI performance | 3.3% | | Net debt to Adjusted EBITDA | 5.1x | | Percent leased – retail | 93.3% | | Retail ABR per square foot | $22.02 | | Total new and renewal lease cash rent spread | 17.0% | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Kite Realty Group reported total assets of $6.86 billion, a decrease from $7.09 billion at year-end 2024, with total liabilities decreasing to $3.44 billion and total equity remaining stable at $3.32 billion Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net investment properties | $5,761,745 | $6,046,530 | | Total assets | $6,858,340 | $7,091,767 | | Mortgage and other indebtedness, net | $3,022,496 | $3,226,930 | | Total liabilities | $3,435,816 | $3,679,690 | | Total equity | $3,319,633 | $3,314,003 | [Consolidated Statements of Operations](index=10&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, KRG's total revenue was $213.4 million, and net income significantly improved to $112.6 million, driven by a $103.0 million gain on property sales, contrasting with a $49.3 million net loss in Q2 2024 Q2 Statement of Operations Summary (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenue | $213,395 | $212,434 | | Total expenses | $166,809 | $233,515 | | Impairment charges | $— | $66,201 | | Gain (loss) on sales of operating properties, net | $103,022 | $(1,230) | | Net income (loss) | $112,599 | $(49,303) | | Net income (loss) attributable to common shareholders | $110,318 | $(48,638) | [Same Property Net Operating Income (NOI)](index=11&type=section&id=Same%20Property%20Net%20Operating%20Income) For Q2 2025, Same Property NOI for the 175-property pool increased by 3.3% to $144.1 million, driven by higher minimum rent and tenant recoveries, with total property NOI growing by 2.0% for the quarter Same Property NOI Growth (in thousands) | Period | 2025 Same Property NOI | 2024 Same Property NOI | Change | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $144,104 | $139,512 | 3.3% | | Six Months Ended June 30 | $287,903 | $279,038 | 3.2% | - The Same Property Pool consists of **175 properties**[35](index=35&type=chunk)[37](index=37&type=chunk) - It excludes properties acquired, sold, or in development/redevelopment during 2024 and 2025, as well as standalone office properties[35](index=35&type=chunk)[37](index=37&type=chunk) [Net Operating Income and Adjusted EBITDA by Quarter](index=12&type=section&id=Net%20Operating%20Income%20and%20Adjusted%20EBITDA%20by%20Quarter) In Q2 2025, KRG generated Net Operating Income (NOI) of $157.0 million and Adjusted EBITDA of $144.5 million, with a consolidated NOI margin of 74.0% and a retail recovery ratio of 92.0% Quarterly NOI and Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q2 2024 | | :--- | :--- | :--- | :--- | :--- | | NOI | $157,010 | $163,750 | $159,429 | $153,925 | | Adjusted EBITDA | $144,473 | $151,917 | $146,321 | $144,411 | | NOI/Revenue – Retail | 74.4% | 74.7% | 75.1% | 74.3% | | Recovery Ratio – Retail | 92.0% | 91.4% | 92.1% | 91.6% | [NAREIT Funds From Operations (FFO)](index=13&type=section&id=NAREIT%20Funds%20From%20Operations) For Q2 2025, NAREIT FFO was $114.0 million ($0.51 per diluted share), and Core FFO was $113.2 million ($0.50 per share), with Adjusted Funds From Operations (AFFO) at $81.7 million FFO Reconciliation Summary - Q2 2025 (in thousands) | Metric | Amount | | :--- | :--- | | Net income | $112,599 | | Adjustments (Depreciation, Gain on Sale, etc.) | $1,366 | | **NAREIT FFO of the Operating Partnership** | **$113,965** | | Non-cash adjustments | $(805) | | **Core FFO of the Operating Partnership** | **$113,160** | FFO Per Diluted Share | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | NAREIT FFO per share | $0.51 | $0.53 | | Core FFO per share | $0.50 | $0.50 | [Portfolio and Capital Structure](index=14&type=section&id=Portfolio%20and%20Capital%20Structure) Details Kite Realty Group's joint ventures, debt profile, capital allocation activities including acquisitions and dispositions, and ongoing development projects [Joint Venture Summary](index=14&type=section&id=Joint%20Venture%20Summary) As of June 30, 2025, KRG's total investment in unconsolidated joint ventures was $390.8 million, including key interests in Legacy West and the GIC Portfolio, resulting in a Q2 2025 net loss of $3.2 million for KRG - KRG's total investment in unconsolidated JVs was **$390.8 million** as of June 30, 2025[48](index=48&type=chunk) - Key unconsolidated JVs include: - Legacy West (**52% economic interest**) - GIC Portfolio (**52% economic interest**) - Nuveen Portfolio (**20% economic interest**) [Debt Profile](index=15&type=section&id=Debt%20Profile) KRG maintains a strong debt profile with investment-grade ratings, $1.28 billion in liquidity, a net debt to Adjusted EBITDA ratio of 5.1x, and $3.21 billion in total debt with 89% fixed-rate [Key Debt Metrics](index=15&type=section&id=Key%20Debt%20Metrics) As of Q2 2025, KRG reported a net debt to Adjusted EBITDA ratio of 5.1x, total liquidity of $1.28 billion, investment-grade credit ratings, and 95% unencumbered consolidated NOI - **Net Debt to Adjusted EBITDA:** **5.1x**[52](index=52&type=chunk) - **Total Liquidity:** **$1,277.5 million**[51](index=51&type=chunk) - **Senior Unsecured Debt Ratings:** BBB/Positive (Fitch), Baa2/Stable (Moody's), BBB/Stable (S&P)[51](index=51&type=chunk) - **Unencumbered Consolidated NOI:** **95% of Total Consolidated NOI**[51](index=51&type=chunk) [Summary of Outstanding Debt](index=16&type=section&id=Summary%20of%20Outstanding%20Debt) As of June 30, 2025, KRG's total outstanding debt was $3.21 billion, with a weighted average interest rate of 4.46% and a 4.7-year maturity, with 89% of the debt being fixed-rate Total Outstanding Debt Summary | Debt Type | Amount Outstanding (in thousands) | Ratio | Weighted Avg. Interest Rate | Weighted Avg. Years to Maturity | | :--- | :--- | :--- | :--- | :--- | | Fixed rate debt | $2,857,178 | 89% | 4.28% | 4.9 | | Variable rate debt | $168,400 | 5% | 7.63% | 1.2 | | **Total** | **$3,213,337** | **100%** | **4.46%** | **4.7** | [Maturity Schedule of Outstanding Debt](index=17&type=section&id=Maturity%20Schedule%20of%20Outstanding%20Debt) KRG's debt maturity schedule is staggered, with significant maturities in 2026 ($400 million) and 2027 ($284.7 million), and the company utilizes interest rate swaps to manage exposure - Upcoming significant debt maturities include: - **2025:** **$80.0 million** - **2026:** **$400.0 million** - **2027:** **$284.7 million** - **2028:** **$350.0 million**[59](index=59&type=chunk) - The company uses interest rate swaps to manage exposure, with an aggregate notional value of **$700 million** to fix variable-rate debt and **$155 million** to float fixed-rate debt as of June 30, 2025[59](index=59&type=chunk) [Acquisitions and Dispositions](index=19&type=section&id=Acquisitions%20and%20Dispositions) During 2025, KRG acquired Village Commons and a 52% share in Legacy West for a total of $476.6 million, while disposing of six properties/interests, including Fullerton Metrocenter, generating $258.4 million in proceeds 2025 Acquisitions (at KRG's share, in thousands) | Property Name | MSA | Acquisition Price | | :--- | :--- | :--- | | Village Commons | Miami | $68,400 | | Legacy West | Dallas/Ft. Worth | $408,200 | | **Total** | | **$476,600** | 2025 Dispositions (in thousands) | Property Name | MSA | Sales Price | | :--- | :--- | :--- | | Stoney Creek Commons | Indianapolis | $9,500 | | Fullerton Metrocenter | Los Angeles | $118,500 | | GIC Portfolio Contribution (48% interest) | Various | $112,120 | | Humblewood Shopping Center | Houston | $18,250 | | **Total** | | **$258,370** | [Development and Redevelopment Projects](index=20&type=section&id=Development%20and%20Redevelopment%20Projects) KRG has one active development project, the One Loudoun Expansion, with an estimated cost of $81.0M–$91.0M, and several future opportunities for expansion and redevelopment at existing properties - The primary active project is the One Loudoun Expansion (Washington, D.C. MSA), with a total project cost at KRG's share of **$81.0M–$91.0M** and an estimated remaining spend of **$58.0M–$68.0M**[66](index=66&type=chunk) - Future opportunities include potential expansions and redevelopments at properties like Carillon, One Loudoun (hotel and residential), and Glendale Town Center, among others[67](index=67&type=chunk) [Portfolio Characteristics](index=21&type=section&id=Portfolio%20Characteristics) Describes the geographic diversification of Kite Realty Group's properties, its top tenants, retail leasing trends, and the schedule of upcoming lease expirations [Geographic Diversification](index=21&type=section&id=Geographic%20Diversification) KRG's portfolio is heavily concentrated in the South (65.4% of ABR), with Texas as the largest state (29.2%), followed by Florida (11.2%), demonstrating regional focus ABR by Region | Region | % of Weighted ABR | | :--- | :--- | | South | 65.4% | | West | 14.1% | | Midwest | 12.6% | | Northeast | 7.9% | Top 5 States by ABR | State | % of Weighted ABR | | :--- | :--- | | Texas | 29.2% | | Florida | 11.2% | | Indiana | 6.2% | | Virginia | 5.9% | | Maryland | 5.5% | [Top 25 Tenants by ABR](index=22&type=section&id=Top%2025%20Tenants%20by%20ABR) KRG's tenant base is diversified, with the top 25 tenants accounting for 26.1% of total ABR, led by The TJX Companies (2.6%), Ross Stores (1.8%), and PetSmart (1.7%) - The top 25 tenants represent **26.1% of total weighted ABR**[74](index=74&type=chunk) Top 5 Tenants by % of Weighted ABR | Rank | Tenant | % of Weighted ABR | | :--- | :--- | :--- | | 1 | The TJX Companies, Inc. | 2.6% | | 2 | Ross Stores, Inc. | 1.8% | | 3 | PetSmart, Inc. | 1.7% | | 4 | Best Buy Co., Inc. | 1.4% | | 5 | Dick's Sporting Goods, Inc. | 1.3% | [Retail Leasing Spreads](index=23&type=section&id=Retail%20Leasing%20Spreads) In Q2 2025, KRG achieved a strong blended cash rent spread of 17.0% on over 1 million square feet of comparable leases, with new leases showing a 31.3% increase and non-option renewals up 19.7% Q2 2025 Comparable Cash Rent Spreads | Category | Leases | Sq. Ft. | Cash Rent Spread | | :--- | :--- | :--- | :--- | | New Leases | 38 | 219,271 | 31.3% | | Non-Option Renewals | 52 | 159,247 | 19.7% | | Option Renewals | 43 | 648,679 | 8.2% | | **Total** | **133** | **1,027,197** | **17.0%** | [Lease Expirations](index=24&type=section&id=Lease%20Expirations) KRG has a well-staggered lease expiration schedule, with only 3.0% of pro-rata ABR expiring in the remainder of 2025, and the highest concentrations in 2027 (12.8%) and 2028 (15.4%) Lease Expirations by % of Pro Rata ABR | Year | % of Total ABR Expiring | | :--- | :--- | | 2025 | 3.0% | | 2026 | 10.6% | | 2027 | 12.8% | | 2028 | 15.4% | | 2029 | 14.9% | | 2030 and Beyond | 32.4% | [Supplemental Information](index=25&type=section&id=Supplemental%20Information) Offers additional context through components of Net Asset Value, definitions of non-GAAP financial measures, and essential contact information for investors and analysts [Components of Net Asset Value](index=25&type=section&id=Components%20of%20Net%20Asset%20Value) This section details the components for estimating Net Asset Value (NAV), including an annualized normalized portfolio cash NOI of $585.4 million and total annualized portfolio cash NOI of $627.2 million, alongside net debt and other assets/liabilities Key NAV Components (in thousands) | Component | Value | | :--- | :--- | | Annualized Normalized Portfolio Cash NOI (excl. ground leases) | $585,390 | | Annualized ground lease NOI | $41,800 | | **Total Annualized Portfolio Cash NOI** | **$627,190** | | Mortgage and other indebtedness, net | $(3,025,578) | | Pro rata adjustment for joint venture debt | $(181,064) | [Non-GAAP Financial Measures](index=26&type=section&id=Non-GAAP%20Financial%20Measures) This section defines key non-GAAP financial measures such as NAREIT FFO, Core FFO, AFFO, NOI, Same Property NOI, and Adjusted EBITDA, explaining their relevance for evaluating operating performance - **NAREIT FFO:** Defined as net income excluding real estate depreciation, gains/losses from property sales, and impairment write-downs[93](index=93&type=chunk) - **Core FFO:** Modifies FFO to exclude certain non-cash items like amortization of financing costs, non-cash compensation, and straight-line rent adjustments[96](index=96&type=chunk) - **Same Property NOI:** Measures NOI for a consistent pool of properties owned for the full periods presented to eliminate the impact of acquisitions and dispositions[100](index=100&type=chunk)[101](index=101&type=chunk) - **Adjusted EBITDA:** Defined as EBITDA adjusted for items like gains on sales, merger costs, and other non-recurring activities to provide a measure of core operational earnings[104](index=104&type=chunk) [Contact Information](index=7&type=section&id=Contact%20Information) This section provides contact details for Kite Realty Group's corporate office and investor relations personnel, along with a list of covering analysts from various investment banks - Investor Relations Contact: - Tyler Henshaw, SVP, Capital Markets & Investor Relations - Phone: **317.713.7780** - Email: **thenshaw@kiterealty.com**[7](index=7&type=chunk)[25](index=25&type=chunk)

Core Insights - Kite Realty Group reported a significant turnaround in net income for Q2 2025, achieving $110.3 million or $0.50 per diluted share, compared to a net loss of $48.6 million or $0.22 per diluted share in Q2 2024 [1][4][21] - The company raised its 2025 earnings guidance, expecting net income attributable to common shareholders to be between $0.75 and $0.79 per diluted share, and increased its NAREIT FFO guidance range to $2.06 to $2.10 per diluted share [2][9] Financial Performance - For the six months ended June 30, 2025, net income attributable to common shareholders was $134.0 million or $0.61 per diluted share, compared to a net loss of $34.5 million or $0.16 per diluted share in the same period of 2024 [1][21] - The company generated NAREIT FFO of $114.0 million or $0.51 per diluted share for Q2 2025, and Core FFO of $113.2 million or $0.50 per diluted share [6][24] - Same Property Net Operating Income (NOI) increased by 3.3% [6][31] Leasing and Portfolio Activity - Kite Realty executed approximately 1.2 million square feet in new and renewal leases with a comparable blended cash leasing spread of 17.0% [3][6] - The retail portfolio's leased percentage was 93.3% as of June 30, 2025, reflecting a 150-basis point decrease year-over-year, primarily due to recent anchor bankruptcies [6][31] - The company entered into a joint venture with GIC, contributing three larger-format shopping centers, generating gross proceeds of $112.1 million while maintaining a 52.0% ownership interest [3][6] Capital Allocation and Debt Management - Kite Realty sold Fullerton Metrocenter for gross proceeds of $118.5 million and issued $300 million of senior unsecured notes due August 2032 at a fixed interest rate of 5.20% [3][10] - The company’s net debt to Adjusted EBITDA ratio was 5.1x as of June 30, 2025 [10] - The Board of Trustees declared a third quarter 2025 dividend of $0.27 per common share, representing a 3.8% year-over-year increase [8] Market Position and Strategy - The company focuses on high-quality, open-air grocery-anchored centers and mixed-use assets, primarily located in high-growth Sun Belt and strategic gateway markets [13] - Kite Realty's operational performance is driven by strong tenant demand, leading to higher starting rents and improved merchandising mix [3][6]

Group 1 - The investment group High Yield Landlord, led by Jussi Askola, provides real-time updates on REIT portfolio and transactions, featuring three portfolios: core, retirement, and international [2] - Jussi Askola is the President of Leonberg Capital, a value-oriented investment boutique that consults hedge funds, family offices, and private equity firms on REIT investing, and has authored award-winning academic papers on the subject [2] - The group offers buy/sell alerts and a chat room for direct access to Jussi and his team of analysts, enhancing member engagement and investment decision-making [2] Group 2 - The company invests significant resources, including thousands of hours and over $100,000 annually, into researching profitable investment opportunities, particularly in real estate strategies [1] - The approach has garnered over 500 five-star reviews from satisfied members, indicating a strong level of member satisfaction and perceived value [1]

Summary of Key Points Core Viewpoint - The author has over 10 years of experience researching a wide range of companies across various industries, including commodities and technology, and has transitioned from blogging to a value investing-focused YouTube channel to share insights on these companies [1]. Group 1: Company Research Experience - The author has researched over 1000 companies in depth, covering sectors such as oil, natural gas, gold, copper, and technology companies like Google and Nokia [1]. - The focus has shifted to a YouTube channel dedicated to value investing, where hundreds of companies have been analyzed [1]. - The author expresses a particular interest in metals and mining stocks, while also being knowledgeable in consumer discretionary/staples, REITs, and utilities [1].

Group 1 - The REIT market is experiencing significant volatility, leading to frequent changes in the "best REITs to buy" from month to month [1] - The investment group High Yield Landlord, led by Jussi Askola, provides real-time updates on REIT portfolio transactions and offers features such as buy/sell alerts and direct access to analysts [2] - Jussi Askola is the President of Leonberg Capital, a value-oriented investment firm that consults on REIT investing and has established relationships with top REIT executives [2] Group 2 - The company invests over $100,000 annually and dedicates thousands of hours to researching profitable investment opportunities, particularly in real estate strategies [1]