[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]

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