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Core Points - Kite Realty Group Trust announced the closing of an amended $1.1 billion unsecured revolving credit facility and a $250 million unsecured term loan facility on October 3, 2024 [1] - The term of the Revolving Credit Facility was extended by three years, maturing on October 3, 2028, with options for further extensions [2] - The Term Loan Facility's interest rate margin was reduced, now ranging from 0.75% to 1.60%, down from 2.00% to 2.50% previously [3] Company Overview - Kite Realty Group Trust is a real estate investment trust (REIT) based in Indianapolis, IN, focusing on open-air shopping centers and mixed-use assets [4] - The company primarily operates grocery-anchored properties located in high-growth Sun Belt and strategic gateway markets, owning interests in 178 U.S. properties with approximately 27.6 million square feet of gross leasable space as of June 30, 2024 [4] - Established in 2004, Kite Realty has over 60 years of experience in real estate development, construction, and operation, continuously optimizing its portfolio to maximize shareholder value [4]

Company Overview - Kite Realty Group (NYSE: KRG) is a leading real estate investment trust (REIT) focused on owning and operating open-air shopping centers and mixed-use assets, primarily grocery-anchored [3] - The company's portfolio includes 178 U.S. open-air shopping centers and mixed-use assets, totaling approximately 27.6 million square feet of gross leasable space as of June 30, 2024 [3] - KRG has over 60 years of experience in real estate development, construction, and operation, optimizing its portfolio to maximize value and returns to shareholders [3] Upcoming Financial Events - Kite Realty Group will release its financial results for the quarter ending September 30, 2024, after market close on October 30, 2024 [1] - A conference call to discuss these financial results is scheduled for October 31, 2024, at 11:00 a.m. Eastern Time [1][2] - A live webcast of the conference call will be available on the company's website, with a replay accessible afterward [2]

Economic Overview - The Federal Reserve is expected to cut interest rates in September, with the market debating the extent of the cut, likely between 0.25% and 0.50% [1][2] - Revised jobs data indicates a slowing economy, while Consumer Price Index (CPI) data shows cooling inflation, meaning prices are still rising but at a slower rate [2] Real Estate Investment Trusts (REITs) Performance - REITs have been performing well, with the Vanguard Real Estate Index Fund ETF Shares (VNQ) up 11.2% year-to-date, compared to the S&P 500's 17.6% [4] - The current market conditions present a favorable opportunity for investing in REITs, particularly for those with a long-term investment horizon [4][6] NETSTREIT Corp. (NTST) - NTST specializes in single-tenant, freestanding retail properties with a market cap of approximately $1.3 billion and a portfolio of 649 investments across 45 states [9] - The company boasts a 100% occupancy rate and a weighted average lease term (WALT) of 9.5 years, with 68.9% of its annualized base rent (ABR) coming from investment-grade tenants [9][10] - Despite challenges faced by some top tenants like Dollar General and Walgreens, NTST's long lease terms and high-quality tenant base provide resilience [11][12] Kite Realty Group Trust (KRG) - KRG focuses on developing and operating open-air shopping centers, primarily in the Sunbelt region, with a market cap of approximately $5.8 billion [15] - The company derives nearly 70% of its ABR from the Sunbelt, with 79% of its properties being grocery-anchored [16] - KRG has reported strong leasing spreads, with comparable new cash leasing spreads of 41.3% in 2023, indicating robust demand for retail space [19] VICI Properties Inc. (VICI) - VICI is an experiential REIT with a market cap of approximately $35.2 billion, owning a portfolio of iconic gaming and entertainment properties [26][28] - The company has a WALT of 41.2 years and has maintained a 100% occupancy rate and rent collection since its formation [30][33] - VICI's strong balance sheet includes a BBB- credit rating, with solid debt metrics and no debt maturities due in 2024 [35] Plymouth Industrial REIT, Inc. (PLYM) - PLYM specializes in industrial properties with a market cap of approximately $1.1 billion and a portfolio that is 97% occupied [38] - The company is strategically positioned in the "Golden Triangle" region, which is attractive for industrial growth due to its economic significance and infrastructure [38][41] - Analysts expect PLYM's AFFO per share to increase by 6% in 2024, with a current P/AFFO of 12.75x, indicating potential for growth [46]

INDIANAPOLIS, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Kite Realty Group Trust (NYSE: KRG) (the "Company") announced today that, on August 13, 2024, its operating partnership, Kite Realty Group, L.P. (the "Operating Partnership"), priced an offering of $350 million aggregate principal amount of 4.950% Senior Notes due 2031 (the "Notes") in an underwritten public offering. The Notes will be issued at 99.328% of par value with a yield to maturity of 5.062%. Interest on the Notes is payable semi-annually on June 15 a ...

Revenue- Tenant recoveries View all Key Company Metrics for Kite Realty Group here>>> For the quarter ended June 2024, Kite Realty Group (KRG) reported revenue of $212.43 million, up 1.8% over the same period last year. EPS came in at $0.53, compared to $0.15 in the year-ago quarter. Revenue- Rental income : $150.01 million compared to the $162.06 million average estimate based on two analysts. The reported number represents a change of +1.8% year over year. While investors closely watch year-over-year chan ...

This quarterly report represents an FFO surprise of 3.92%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.50 per share when it actually produced FFO of $0.50, delivering no surprise. Kite Realty Group, which belongs to the Zacks REIT and Equity Trust - Retail industry, posted revenues of $212.43 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.83%. This compares to year-ago revenues of $208.76 million. The company has topped co ...

[Earnings Press Release](index=3&type=section&id=Earnings%20Press%20Release) The company reported a Q2 2024 net loss due to a significant impairment charge but raised full-year guidance on strong operational performance Q2 2024 Key Financial Results vs Q2 2023 | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net (Loss) Income Attributable to Common Shareholders | $(48.6) million | $32.1 million | | Diluted (Loss) Income Per Share | $(0.22) | $0.15 | | NAREIT FFO per Diluted Share | $0.53 | $0.51 | | Same Property NOI Increase | 1.8% | 5.7% | - The net loss in Q2 2024 was driven by a significant **$66.2 million impairment charge** related to an asset classified as held for sale[4](index=4&type=chunk) - The company raised its quarterly dividend by **8.3% year-over-year** to $0.26 per common share, payable in Q3 2024[16](index=16&type=chunk)[43](index=43&type=chunk) Updated 2024 Full-Year Guidance | Metric | Previous Guidance (as of 4/30/24) | Updated Guidance (as of 7/30/24) | | :--- | :--- | :--- | | NAREIT FFO per Diluted Share | $2.02 - $2.08 | $2.04 - $2.08 | | Same Property NOI Growth | 1.5% - 2.5% (implied) | 2.0% - 3.0% | - Achieved an all-time low **Net Debt to Adjusted EBITDA ratio of 4.8x** and received a corporate credit rating upgrade to **BBB from S&P Ratings**[16](index=16&type=chunk)[18](index=18&type=chunk) [Contact Information](index=6&type=section&id=Contact%20Information) This section provides key contact details for the company, investor relations, and a list of covering analysts - Investor Relations contact is **Tyler Henshaw, SVP, Capital Markets & IR**[12](index=12&type=chunk) - The corporate office is located in **Indianapolis, IN**[49](index=49&type=chunk) [Results Overview](index=7&type=section&id=Results%20Overview) This section presents key Q2 2024 financial and operational metrics, including FFO, NOI, and credit ratings Q2 2024 Financial & Operational Highlights | Metric | Q2 2024 Value | | :--- | :--- | | NAREIT FFO per diluted share | $0.53 | | Same property NOI performance | 1.8% | | Net debt to Adjusted EBITDA | 4.8x | | Retail portfolio percent leased | 94.8% | | Total new and renewal lease cash rent spread | 15.6% | Credit Ratings as of June 30, 2024 | Rating Agency | Rating / Outlook | | :--- | :--- | | Fitch Ratings | BBB / Positive | | Moody's Investors Services | Baa2 / Stable | | Standard & Poor's Rating Services | BBB / Stable | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) The company's total assets were $6.96 billion and total liabilities were $3.46 billion as of June 30, 2024 Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Net investment properties | $6,098,567 | $6,358,291 | | Cash and cash equivalents | $153,835 | $36,413 | | **Total Assets** | **$6,958,920** | **$6,944,078** | | **Liabilities & Equity** | | | | Mortgage and other indebtedness, net | $3,015,626 | $2,829,202 | | **Total Liabilities** | **$3,459,347** | **$3,300,223** | | **Total Equity** | **$3,423,480** | **$3,570,568** | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) A $66.2 million impairment charge drove a net loss of $48.6 million in Q2 2024, despite a slight increase in total revenues Statement of Operations Summary (in thousands) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Total Revenue | $212,434 | $208,759 | | Total Expenses | $233,515 | $177,890 | | Impairment Charges | $66,201 | $0 | | Net (Loss) Income Attributable to Common Shareholders | $(48,638) | $32,058 | [Same Property Net Operating Income](index=10&type=section&id=Same%20Property%20Net%20Operating%20Income) The Same Property portfolio of 177 properties generated a 1.8% year-over-year increase in Net Operating Income for Q2 2024 Same Property NOI Performance (in thousands) | Period | Same Property NOI | % Change YoY | | :--- | :--- | :--- | | Three Months Ended June 30, 2024 | $142,528 | 1.8% | | Six Months Ended June 30, 2024 | $284,801 | 2.2% | - The same property pool consisted of **177 properties**, with a leased percentage of **94.8%** and an economic occupancy of **91.6%** at the end of Q2 2024[28](index=28&type=chunk)[29](index=29&type=chunk) [Net Operating Income and Adjusted EBITDA by Quarter](index=11&type=section&id=Net%20Operating%20Income%20and%20Adjusted%20EBITDA%20by%20Quarter) The company generated $153.9 million in NOI and $144.4 million in Adjusted EBITDA in Q2 2024, showing stable quarterly performance Quarterly NOI and Adjusted EBITDA (in thousands) | Metric | June 30, 2024 | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | :--- | | NOI | $153,925 | $152,509 | $151,917 | | Adjusted EBITDA | $144,411 | $140,040 | $138,073 | - A **$66.2 million impairment charge** was recorded in Q2 2024, which significantly affected the net loss for the period[33](index=33&type=chunk) [Funds From Operations (FFO)](index=12&type=section&id=Funds%20From%20Operations) FFO per diluted share increased to $0.53 in Q2 2024 from $0.51 in the prior-year quarter, driven by core operational growth FFO Performance (in thousands, except per share data) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | FFO of the Operating Partnership | $117,487 | $113,747 | | FFO per diluted share/unit | $0.53 | $0.51 | | Total Recurring AFFO | $79,452 | $77,131 | - The reconciliation from net loss to FFO highlights significant add-backs for **depreciation and amortization ($99.4 million)** and **impairment charges ($66.2 million)** in Q2 2024[35](index=35&type=chunk) [Joint Venture Summary](index=13&type=section&id=Joint%20Venture%20Summary) The company's share of debt from unconsolidated joint ventures totaled $56.8 million as of June 30, 2024 KRG's Share in Unconsolidated JVs (in thousands) | Metric | Amount | | :--- | :--- | | Total KRG Share of Debt | $56,759 | | Total KRG Investment | $9,970 | | KRG Share of Quarterly Adjusted EBITDA | $611 | - On January 31, 2024, a joint venture sold the Glendale Center Apartments, resulting in a **$2.3 million gain on sale for KRG**[65](index=65&type=chunk) [Key Debt Metrics](index=14&type=section&id=Key%20Debt%20Metrics) The company maintained a strong balance sheet with a Net Debt to Adjusted EBITDA ratio of 4.8x and total liquidity of $1.37 billion - The ratio of Company share of **Net Debt to Annualized Adjusted EBITDA was 4.8x** as of June 30, 2024[71](index=71&type=chunk) Key Covenant Compliance | Covenant | Actual | Threshold | | :--- | :--- | :--- | | Total debt to undepreciated assets | 36% | <60% | | Undepreciated unencumbered assets to unsecured debt | 287% | >150% | | Debt service coverage | 4.9x | >1.5x | Liquidity (in thousands) | Source | Amount | | :--- | :--- | | Cash, cash equivalents and short-term deposits | $273,835 | | Availability under unsecured credit facility | $1,100,000 | | **Total Liquidity** | **$1,373,835** | [Summary of Outstanding Debt](index=15&type=section&id=Summary%20of%20Outstanding%20Debt) Total outstanding debt was $3.07 billion with a 4.35% weighted average interest rate and 93% of the portfolio at a fixed rate Total Outstanding Debt Summary | Metric | Value | | :--- | :--- | | Total Debt (incl. KRG share of unconsolidated) | $3,072,385 thousand | | Fixed Rate Debt Ratio | 93% | | Weighted Average Interest Rate | 4.35% | | Weighted Average Years to Maturity | 4.2 years | - As of June 30, 2024, **$820.0 million in variable rate debt is hedged to a fixed rate**, while $155.0 million in fixed rate debt is hedged to a floating rate[41](index=41&type=chunk) [Maturity Schedule of Outstanding Debt](index=16&type=section&id=Maturity%20Schedule%20of%20Outstanding%20Debt) The company has a well-staggered debt maturity profile with no consolidated debt maturing for the remainder of 2024 - The company repaid its **$120.0 million unsecured term loan** that matured on July 17, 2024, leaving no further debt maturities in 2024[18](index=18&type=chunk)[76](index=76&type=chunk) Upcoming Debt Maturities (Consolidated) | Year | Amount Maturing | | :--- | :--- | | 2024 (remainder) | $0 | | 2025 | $430,000 thousand | | 2026 | $550,000 thousand | | 2027 | $287,825 thousand | [Acquisitions and Dispositions](index=17&type=section&id=Acquisitions%20and%20Dispositions) The company disposed of one retail center in Chicago for $30.6 million and made no acquisitions in the first half of 2024 - The company **did not acquire any properties** during the six months ended June 30, 2024[79](index=79&type=chunk) Dispositions in H1 2024 | Property Name | MSA | GLA | Sales Price | | :--- | :--- | :--- | :--- | | Ashland & Roosevelt | Chicago | 104,176 sq. ft. | $30,600 thousand | [Development and Redevelopment Projects](index=18&type=section&id=Development%20and%20Redevelopment%20Projects) Two active projects are underway with a total estimated cost of $91.6 million and projected annual NOI of up to $5.9 million Active Development Projects | Project | MSA | Total KRG Costs | KRG Remaining Spend | Projected Stabilized NOI (KRG Share) | | :--- | :--- | :--- | :--- | :--- | | Carillon MOB | Washington, D.C. | $59.7M | $26.6M | $3.5M - $4.0M | | The Corner - IN | Indianapolis, IN | $31.9M | $0 | $1.7M - $1.9M | - The company has identified **six potential future opportunities** for development or redevelopment, including projects in Indianapolis, Washington D.C., Chicago, and Los Angeles[105](index=105&type=chunk) [Geographic Diversification – Retail ABR by Region and State](index=19&type=section&id=Geographic%20Diversification%20%E2%80%93%20Retail%20ABR%20by%20Region%20and%20State) The portfolio is concentrated in the Sun Belt, with the South region accounting for 63.9% of total retail Annualized Base Rent Top Regions by % of Weighted Retail ABR | Region | % of ABR | | :--- | :--- | | South | 63.9% | | West | 16.6% | | Midwest | 11.5% | | Northeast | 8.0% | Top 5 States by % of Weighted Retail ABR | State | % of ABR | | :--- | :--- | | Texas | 26.8% | | Florida | 11.8% | | Maryland | 5.9% | | North Carolina | 5.8% | | Virginia | 5.5% | [Top 25 Tenants by ABR](index=20&type=section&id=Top%2025%20Tenants%20by%20ABR) The tenant base is diversified among national retailers, with the top 25 tenants accounting for 28.7% of total ABR - The **top 25 tenants represent 28.7%** of the total weighted ABR[86](index=86&type=chunk) Top 5 Tenants by % of Weighted ABR | Rank | Tenant | % of Weighted ABR | | :--- | :--- | :--- | | 1 | The TJX Companies, Inc. | 2.8% | | 2 | Best Buy Co., Inc. | 2.0% | | 3 | Ross Stores, Inc. | 2.0% | | 4 | PetSmart, Inc. | 1.9% | | 5 | Michaels Stores, Inc. | 1.4% | [Retail Leasing Spreads](index=21&type=section&id=Retail%20Leasing%20Spreads) The company achieved a strong blended cash rent spread of 15.6% on 1.2 million square feet of leasing activity in Q2 2024 Q2 2024 Comparable Lease Cash Rent Spreads | Lease Type | Cash Rent Spread | | :--- | :--- | | New Leases | 34.8% | | Non-Option Renewals | 14.3% | | Option Renewals | 6.0% | | **Total** | **15.6%** | - The company signed a total of **160 leases** in Q2 2024, covering **1,153,766 square feet**[88](index=88&type=chunk) [Lease Expirations](index=22&type=section&id=Lease%20Expirations) The lease expiration schedule is well-staggered, with only 3.8% of total Annualized Base Rent expiring in the remainder of 2024 Lease Expirations by % of Total ABR | Year | % of Total ABR Expiring | | :--- | :--- | | 2024 (remainder) | 3.8% | | 2025 | 11.5% | | 2026 | 12.0% | | 2027 | 13.1% | | 2028 | 15.7% | - The 2024 expirations include **56 month-to-month retail tenants**[91](index=91&type=chunk) [Components of Net Asset Value](index=23&type=section&id=Components%20of%20Net%20Asset%20Value) This section details the components used to calculate Net Asset Value, arriving at a total annualized portfolio cash NOI of $603.4 million Key NAV Components (in thousands) | Component | Value | | :--- | :--- | | Annualized Consolidated Cash Property NOI (excl. ground leases) | $538,764 | | Total Annualized Portfolio Cash NOI | $603,426 | | Mortgage and other indebtedness, net | $(3,000,761) | | Common shares and Units outstanding | 223,361,957 | - The NAV calculation **excludes NOI from tenants that have signed leases** but have not yet commenced paying rent as of June 30, 2024[93](index=93&type=chunk) [Non-GAAP Financial Measures](index=24&type=section&id=Non-GAAP%20Financial%20Measures) This section defines key non-GAAP measures like FFO, NOI, and EBITDA used to evaluate core operational performance - **FFO** is defined according to NAREIT standards and excludes depreciation, amortization, and gains/losses from property sales to measure core operating performance[95](index=95&type=chunk)[118](index=118&type=chunk) - **NOI** is defined as income from real estate less property operating expenses, and is used to evaluate the performance of individual properties[98](index=98&type=chunk) - **EBITDA** and the ratio of **Net Debt to Adjusted EBITDA** are used to measure operational performance and leverage, excluding items like interest, taxes, and depreciation[123](index=123&type=chunk)[126](index=126&type=chunk)

"The KRG team delivered another exceptional quarter with approximately 1.2 million square feet of total leasing volume, while generating 15.6% blended cash spreads," said John A. Kite, Chairman and CEO. "The combination of our superior operating platform and premier open-air portfolio has enabled our team to enhance the quality of our merchandising mix and drive higher embedded rent bumps. S&P and Moody's recent upgrades reflect the strength of our credit metrics and our commitment to maintaining a formidab ...

INDIANAPOLIS, June 28, 2024 (GLOBE NEWSWIRE) -- Kite Realty Group Trust (NYSE:KRG) announced today that S&P Ratings ("S&P") upgraded its issuer credit rating for Kite Realty Group Trust and the Company's Operating Partnership, Kite Realty Group L.P., to 'BBB' from 'BBB-', with a stable outlook. About Kite Realty Group Trust Connect with KRG: LinkedIn | Twitter | Instagram | Facebook Safe Harbor This release, together with other statements and information publicly disseminated by us, contains certain forward ...