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]

Core Viewpoint - Kite Realty Group (KRG) is set to release its financial results for Q2 2025 on July 30, 2025, followed by a conference call on July 31, 2025, to discuss these results [1][2]. Company Overview - Kite Realty Group (NYSE: KRG) is a real estate investment trust (REIT) specializing in open-air shopping centers and mixed-use assets, primarily grocery-anchored, located in high-growth Sun Belt and strategic gateway markets [3]. - The company has nearly 60 years of experience in real estate development, construction, and operation, optimizing its portfolio to maximize shareholder value [3]. - As of March 31, 2025, KRG owns interests in 180 U.S. open-air shopping centers and mixed-use assets, totaling approximately 27.8 million square feet of gross leasable space [3].

Core Insights - Kite Realty Group (KRG) released its annual Corporate Responsibility Report, highlighting its strategy and initiatives in corporate responsibility practices and policies [1][2] - The report showcases progress, measurements, and case studies related to the company's goals and operations [1] Corporate Responsibility Initiatives - KRG emphasizes its commitment to sustainability, aiming to enhance long-term performance and create value for stakeholders [2] - Key highlights from the 2024 report include a 13.7% reduction in Scope 1 and 2 greenhouse gas emissions year-over-year and a cumulative reduction of 31.5% from the 2019 baseline [6] - Energy usage decreased by 11.5% and water consumption by 7.1% year-over-year, with a total elimination of 3,993 metric tons of CO2e [6] - The company has planted over 50,000 trees as part of its Project Green reforestation effort [6] - KRG increased its IREM certified property count to 99, representing 55% of its retail operating properties, and achieved Gold Level Green Lease Leader recognition for five consecutive years [6] - Approximately 3,600 team member hours were dedicated to the Volunteer Time Off program, and 185 community events were hosted throughout the KRG portfolio [6] Company Overview - Kite Realty Group is a real estate investment trust (REIT) focused on owning and operating open-air shopping centers and mixed-use assets, primarily grocery-anchored [4] - The portfolio consists of 180 U.S. open-air shopping centers and mixed-use assets, totaling approximately 27.8 million square feet of gross leasable space as of March 31, 2025 [4] - KRG has over 60 years of experience in real estate development, construction, and operation, continuously optimizing its portfolio to maximize shareholder value [4]

Core Viewpoint - Kite Realty Group Trust announced a public offering of $300 million in Senior Notes with a 5.200% interest rate, due in 2032, aimed at repaying debt and for general corporate purposes [1][2]. Group 1: Offering Details - The offering consists of $300 million aggregate principal amount of 5.200% Senior Notes due 2032, priced at 99.513% of par value, yielding 5.281% to maturity [1]. - Interest on the Notes will be paid semi-annually starting February 15, 2026, with the offering expected to close on June 27, 2025, pending customary closing conditions [1][2]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized to repay outstanding indebtedness and for general corporate purposes [2]. Group 3: Underwriters - The offering is managed by several financial institutions, including Wells Fargo Securities, PNC Capital Markets LLC, TD Securities, BofA Securities, Goldman Sachs & Co. LLC, J.P. Morgan, KeyBanc Capital Markets, and Regions Securities LLC as joint book-running managers [3]. Group 4: Company Overview - Kite Realty Group is a real estate investment trust (REIT) focused on owning and operating open-air shopping centers and mixed-use assets, primarily grocery-anchored, located in high-growth Sun Belt and strategic gateway markets [7]. - As of March 31, 2025, the company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, totaling approximately 27.8 million square feet of gross leasable space [7].

Core Insights - The article emphasizes the importance of thorough research and analysis in identifying undervalued investment opportunities, particularly in the Real Estate Investment Trusts (REITs) sector [1] Group 1: Investment Philosophy - The company adheres to a fundamental investment philosophy that focuses on rigorous analysis and a long-term perspective [1] - Key factors in the investment approach include financial health, competitive positioning, and management quality [1] - The goal is to uncover opportunities where intrinsic value diverges from market price, especially in undervalued companies [1] Group 2: Sector Focus - There is a specialized interest in the REIT sector, which is viewed as presenting abundant opportunities for investors [1] - The unique dynamics of the REIT sector are highlighted as a potential for long-term growth [1] - The analysis aims to identify undervalued REITs that are poised for substantial appreciation [1]

[Explanatory Note](index=3&type=section&id=Explanatory%20Note) This report combines the quarterly filings for Kite Realty Group Trust (the Parent Company) and Kite Realty Group, L.P., providing a clearer overview of the business as viewed by management - The report is a combined Form 10-Q for Kite Realty Group Trust and Kite Realty Group, L.P[7](index=7&type=chunk) - Kite Realty Group Trust (Parent Company) is the sole general partner of the Operating Partnership and owned approximately **97.8%** of its common partnership interests as of March 31, 2025[8](index=8&type=chunk) - The primary business is owning, operating, and developing high-quality, grocery-anchored open-air shopping centers and mixed-use assets, mainly in Sun Belt and strategic gateway markets[8](index=8&type=chunk) - The main differences in the financial statements between the Parent Company and the Operating Partnership relate to shareholders' equity versus partners' capital, with the Parent Company holding no material assets other than its investment in the Operating Partnership and carrying no debt directly[9](index=9&type=chunk)[10](index=10&type=chunk) [PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for both Kite Realty Group Trust and Kite Realty Group, L.P. for the period ended March 31, 2025, including Balance Sheets, Statements of Operations, Statements of Equity, and Statements of Cash Flows [KITE REALTY GROUP TRUST Financial Statements](index=5&type=section&id=KITE%20REALTY%20GROUP%20TRUST%20Financial%20Statements) For Q1 2025, Kite Realty Group Trust reported total revenues of **$221.8 million** and net income of **$23.7 million**, or **$0.11 per diluted share**, with total assets decreasing to **$6.68 billion** from **$7.09 billion** at year-end 2024 due to debt reduction Kite Realty Group Trust - Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $6,682,508 | $7,091,767 | | Mortgage and other indebtedness, net | $2,910,057 | $3,226,930 | | Total Liabilities | $3,311,035 | $3,679,690 | | Total Shareholders' Equity | $3,267,953 | $3,312,110 | Kite Realty Group Trust - Consolidated Statement of Operations Highlights (in thousands) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Total Revenue | $221,762 | $207,439 | | Operating Income | $53,777 | $39,425 | | Net Income Attributable to Common Shareholders | $23,730 | $14,156 | | Net Income per Share (Diluted) | $0.11 | $0.06 | Kite Realty Group Trust - Consolidated Cash Flow Highlights (in thousands) | Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $74,060 | $53,581 | | Net cash provided by (used in) investing activities | $227,837 | $(289,338) | | Net cash (used in) provided by financing activities | $(380,317) | $283,291 | [KITE REALTY GROUP, L.P. AND SUBSIDIARIES Financial Statements](index=8&type=section&id=KITE%20REALTY%20GROUP,%20L.P.%20AND%20SUBSIDIARIES%20Financial%20Statements) Kite Realty Group, L.P. reported Q1 2025 net income attributable to common unitholders of **$24.2 million**, with revenue and operating income mirroring the Parent Company, and balance sheet and cash flow statements identical except for partners' equity presentation Kite Realty Group, L.P. - Consolidated Statement of Operations Highlights (in thousands) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Total Revenue | $221,762 | $207,439 | | Operating Income | $53,777 | $39,425 | | Net Income Attributable to Common Unitholders | $24,194 | $14,369 | | Net Income per Common Unit (Diluted) | $0.11 | $0.06 | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's organization, accounting policies, recent acquisitions, debt structure, and derivative instruments, highlighting the acquisition of Village Commons, the Legacy West joint venture, and properties held for sale - As of March 31, 2025, the company's portfolio consisted of **180 operating retail properties** (**27.8 million sq. ft.**), 2 office properties, and several development/redevelopment projects[39](index=39&type=chunk) - In January 2025, the company acquired Village Commons, a multi-tenant retail property in Miami, for **$68.4 million**[62](index=62&type=chunk) - Subsequent to quarter-end, a joint venture with GIC acquired Legacy West in Dallas/Ft. Worth for a gross price of **$785.0 million**, with the company owning **52%** of the JV and acting as the operating member[64](index=64&type=chunk) - Two properties, Stoney Creek Commons and City Center, were classified as held for sale as of March 31, 2025, with Stoney Creek Commons sold on April 4, 2025, for **$9.5 million**[66](index=66&type=chunk)[67](index=67&type=chunk) Consolidated Indebtedness as of March 31, 2025 (in thousands) | Debt Type | Amount Outstanding | Ratio | Weighted Avg. Interest Rate | Weighted Avg. Years to Maturity | | :--- | :--- | :--- | :--- | :--- | | Fixed rate debt | $2,707,885 | 93% | 4.09% | 4.6 | | Variable rate debt | $203,000 | 7% | 7.27% | 1.8 | | **Total** | **$2,910,057** | **100%** | **4.31%** | **4.4** | - During Q1 2025, the company repaid the **$350.0 million** principal balance of its **4.00%** senior unsecured notes due 2025[79](index=79&type=chunk) - The Board of Trustees declared a cash distribution of **$0.27 per common share** for Q1 2025, an increase from **$0.25** in Q1 2024[107](index=107&type=chunk)[108](index=108&type=chunk) - The company has a **$300.0 million** share repurchase program, extended to February 28, 2026, with no shares repurchased under this program as of March 31, 2025[109](index=109&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's business, operating results, liquidity, and capital resources, highlighting increased revenue and net income driven by acquisitions and strong operational performance, with **Same Property NOI growing by 3.1%** and a **Core FFO per share of $0.53** [Overview](index=30&type=section&id=Overview) The company operates as a REIT focused on high-quality, grocery-anchored shopping centers and mixed-use assets in high-growth Sun Belt and strategic gateway markets, mitigating inflation risks through lease structures - The company's business model focuses on owning and operating grocery-anchored and mixed-use retail assets in high-growth U.S. markets[121](index=121&type=chunk) - Management notes that while inflation has moderated, potential future tariffs could impact tenant sales and rent growth, with the company utilizing lease structures with rent escalations and expense reimbursements to mitigate inflation risk[123](index=123&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Operating results for Q1 2025 improved significantly, with total revenue increasing by **$14.3 million (6.9%)** to **$221.8 million** and operating income rising by **$14.4 million** to **$53.8 million**, driven by acquisitions and a **3.1%** increase in Same Property NOI - In Q1 2025, the company executed **182 new and renewal leases** totaling **843,829 square feet**, achieving a **13.7% cash leasing spread** on comparable leases[126](index=126&type=chunk) Comparison of Operating Results (in thousands) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $221,762 | $207,439 | $14,323 | | Total Expenses | $168,076 | $167,778 | $298 | | Operating Income | $53,777 | $39,425 | $14,352 | | Net Income Attributable to Common Shareholders | $23,730 | $14,156 | $9,574 | - Rental income increased by **$13.4 million**, with **$11.4 million** of the increase coming from properties fully operational in both periods, driven by higher base rent, lease termination income, and tenant reimbursements[134](index=134&type=chunk) - Same Property NOI for the **177 properties** in the pool increased by **3.1%** to **$147.9 million** in Q1 2025 from **$143.5 million** in Q1 2024, primarily due to contractual rent growth[147](index=147&type=chunk)[148](index=148&type=chunk) FFO and Core FFO Reconciliation (in thousands) | Measure | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | FFO attributable to common shareholders | $120,317 | $111,018 | | FFO per share – diluted | $0.55 | $0.50 | | Core FFO of the Operating Partnership | $118,064 | $107,343 | | Core FFO per share – diluted | $0.53 | $0.48 | - The company's Net Debt to Annualized Adjusted EBITDA ratio was **4.7x** as of March 31, 2025[158](index=158&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$49.1 million** in cash and **$1.1 billion** availability on its revolving credit facility, with cash from operations increasing to **$74.1 million** in Q1 2025 - As of March 31, 2025, the company had **$49.1 million** in cash and **$1.1 billion** of availability under its unsecured revolving credit facility[161](index=161&type=chunk)[164](index=164&type=chunk) - Short-term liquidity needs include operating expenses, debt service, dividends, and capital expenditures, with approximately **$130 million** in major tenant improvement costs anticipated over the next 12-24 months for executed leases[168](index=168&type=chunk)[170](index=170&type=chunk) - The company's share of remaining costs for the One Loudoun Expansion project is estimated at **$65.0 million to $75.0 million**, to be incurred over the next 12-24 months[171](index=171&type=chunk) Cash Flow Summary (in thousands) | Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $74,060 | $53,581 | | Net cash provided by (used in) investing activities | $227,837 | $(289,338) | | Net cash (used in) provided by financing activities | $(380,317) | $283,291 | [Quantitative and Qualitative Disclosure about Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company is exposed to market risk primarily from interest rate changes on its debt, with **93%** of its **$2.9 billion** consolidated debt fixed-rate after hedges as of March 31, 2025 - As of March 31, 2025, after the effect of hedges, **93% ($2.7 billion)** of the company's debt was fixed-rate and **7% ($203.0 million)** was variable-rate[186](index=186&type=chunk) - A **100-basis point** change in interest rates on the **$203.0 million** of unhedged variable-rate debt would change annual cash flow by **$2.0 million**[187](index=187&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures for both the Parent Company and Operating Partnership were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures for both the Parent Company and the Operating Partnership were effective as of March 31, 2025[189](index=189&type=chunk)[191](index=191&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended March 31, 2025[190](index=190&type=chunk)[192](index=192&type=chunk) [PART II — OTHER INFORMATION](index=44&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to any material litigation, nor is any material litigation currently threatened, with routine claims arising in the ordinary course of business not expected to have a material adverse impact - The company reports no material litigation as of the filing date[194](index=194&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes from the risk factors disclosed in the 2024 Form 10-K[195](index=195&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter, the company repurchased **51,057 common shares** at an average price of **$23.30 per share** from employees to satisfy tax obligations, separate from its **$300 million** authorized share repurchase program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | — | $— | | Feb 2025 | — | $— | | Mar 2025 | 51,057 | $23.30 | | **Total** | **51,057** | **$23.30** | - The shares were repurchased from employees to satisfy tax obligations upon vesting of restricted shares, not under the public repurchase plan[196](index=196&type=chunk) - The company has a **$300 million** authorized share repurchase program, which was extended to February 28, 2026[197](index=197&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) During the first quarter of 2025, none of the company's officers or trustees adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements - No officers or trustees adopted or terminated Rule 10b5-1 trading plans during Q1 2025[200](index=200&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the principal executive and financial officers as required by the Sarbanes-Oxley Act of 2002, and the Inline XBRL documents

Kite Realty Group Trust (KRG) Q1 2025 Earnings Call April 30, 2025 01:00 PM ET Company Participants Bryan McCarthy - Senior Vice President of Corporate Marketing & CommunicationsJohn Kite - Chairman and Chief Executive OfficerHeath Fear - Executive VP & CFOThomas McGowan - President & COOFloris van Dijkum - Managing DirectorRJ Milligan - Managing DirectorDaniel Purpura - Senior Associate - Equity ResearchHongliang Zhang - Vice PresidentDori Kesten - Director Conference Call Participants Todd Thomas - Managi ...

Financial Data and Key Metrics Changes - Kite Realty Group reported NAREIT FFO per share of $0.55 and core FFO per share of $0.53 for Q1 2025, benefiting from a $0.03 contribution from a large termination fee [14][15] - Same property NOI grew by 3.1%, driven by a 350 basis point increase from minimum rent and a 90 basis point increase in net recoveries [15] - The company raised its 2025 NAREIT and core FFO per share guidance by $0.02 each at the midpoints [9][15] Business Line Data and Key Metrics Changes - Blended cash leasing spreads in Q1 were just under 14%, with non-option renewal spreads at 20% [7] - Starting rents for comparable new shop leases were nearly $41 per square foot, approximately 20% higher than the current portfolio average [7] - New and non-option renewal shop leases signed in Q1 had weighted average rent bumps of 360 basis points, nearly 100 basis points higher than three years ago [8] Market Data and Key Metrics Changes - Demand for anchor spaces remains strong, with significant interest from larger format tenants [8] - The office component of Legacy West is 98.7% leased, while the retail component is 95% leased [23] Company Strategy and Development Direction - The acquisition of Legacy West in a joint venture with GIC is seen as a pivotal step forward, enhancing portfolio quality and solidifying the company's position in the market [10][11] - The company aims to pivot towards mixed-use properties while still maintaining a diverse portfolio that includes grocery-anchored centers [60][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to produce strong results in 2025 and deliver long-term value for stakeholders [12] - The company is optimistic about the mark-to-market opportunities within the Legacy West acquisition, expecting significant rent growth over the next three years [22][44] Other Important Information - The company has increased its general bad debt reserve midpoint by 15 basis points to 100 basis points of total revenues, reflecting increased economic uncertainty [16] - The acquisition of Legacy West is expected to be immediately accretive to FFO per share while modestly increasing pro forma leverage [12][19] Q&A Session Summary Question: Expected NOI growth rate for Legacy West and current occupancy rates - The embedded rent bumps for Legacy West are 2.6%, above the portfolio average of 1.7%, with office occupancy at 98.7% and retail at 95% [22][23] Question: Office demand and recent leasing activity - The office product is strong, with high tenant satisfaction and a sub-market lease percentage of 95% [24][26] Question: Relationship with GIC and future investment opportunities - The company is actively working on a second joint venture with GIC and sees potential for further investments [30] Question: Changes in bad debt reserve and tenant conversations - The shift in reserves reflects general market uncertainty rather than specific tenant issues, with no increase in aged accounts receivable [35][38] Question: Transaction environment and pricing sensitivity - The market remains healthy with competitive cap rates, and there is good demand for larger format deals [39] Question: Sales productivity comparison among Legacy properties - Legacy West is expected to have similar or slightly better sales productivity compared to Southlake, with a higher concentration of luxury retail [110][113]

Note: Unless otherwise indicated, the source of all Company data is publicly available information that has been or will be filed with the Securities and Exchange Commission for the period ending March 31, 2025. Founded / IPO NYSE Market Cap1 Enterprise Value1 Operating Retail Properties Total Owned Retail GLA (SF) Retail Portfolio Percent Leased Annualized Base Rent (ABR) per SF Net Debt to Adjusted EBITDA ABR from Assets with a Grocery Component2 ABR in Sun Belt Markets3 ABR from Community & Neighborhood ...

Core Insights - Kite Realty Group (KRG) reported revenue of $221.76 million for the quarter ended March 2025, reflecting a year-over-year increase of 6.9% [1] - The earnings per share (EPS) for the quarter was $0.53, significantly higher than $0.06 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $212.14 million by 4.54%, while the EPS also surpassed the consensus estimate of $0.51 by 3.92% [1] Revenue Breakdown - Rental income was reported at $219.17 million, exceeding the average estimate of $209.02 million from three analysts, marking a 6.5% year-over-year increase [4] - Tenant recoveries amounted to $44.64 million, slightly above the two-analyst average estimate of $44.48 million [4] - Minimum rent revenue was reported at $155.17 million, which fell short of the two-analyst average estimate of $164.33 million [4] Stock Performance - Over the past month, shares of Kite Realty Group have returned -2.3%, compared to a -0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]