Financial Data and Key Metrics Changes - Kite Realty Group Trust (KRG) reported NAREIT FFO per share of $0.50 for Q1 2024, slightly higher than anticipated due to outperformance in same property NOI and an unbudgeted termination fee [43] - Same property NOI grew by 1.8%, supported by increases in minimum rent and lower bad debt, offset by a decrease in net recoveries [43][44] - The company increased the midpoint of its 2024 FFO guidance by $0.02, now ranging from $2.02 to $2.08 [24][21] Business Line Data and Key Metrics Changes - KRG executed 53 anchor leases to 36 different brands since the beginning of 2022, with over 90% being national tenants [20] - The average annual growth for new and non-option renewal shop leases signed in Q1 2024 was 3.4%, with 70% of these leases having fixed rent bumps of 4% or greater [39][82] - The company’s grocery exposure increased by 400 basis points to nearly 80% [20] Market Data and Key Metrics Changes - The company noted that the majority of its revenue comes from the Sun Belt, with attractive gateway markets like New York, D.C., and Seattle also contributing [4] - KRG's properties are highly sought after in the private market, despite the stock trading at a discount [33] Company Strategy and Development Direction - KRG is focused on maintaining a disciplined leasing approach, prioritizing quality and growth to strengthen cash flow and generate strong returns [21] - The company plans to spend over $200 million in tenant improvements and leasing commissions over the next two years, which is expected to generate significant free cash flow [74] - KRG aims to improve its credit profile and reduce its cost of debt, with recent upgrades from Moody's and Fitch [45][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market's activity and liquidity, particularly in open-air retail, which is experiencing strong demand [33] - The company anticipates same property NOI growth to accelerate in the latter half of 2024, providing a solid foundation for growth into 2025 and 2026 [25][63] - Management highlighted the importance of focusing on internal value creation and executing leasing strategies rather than engaging in stock buybacks at this time [78] Other Important Information - KRG's current stock price is viewed as an attractive entry point for investors, with significant occupancy gains expected over the next two years [46] - The company has 26 boxes in its inventory, with a focus on leasing to high-quality tenants [114] Q&A Session Summary Question: Can you provide details on the lease termination fee in the quarter? - Management confirmed that the lease termination fee was unanticipated and discussed its positive impact on the financials [73] Question: What is the company's appetite for acquisitions given the current market? - Management indicated that while they are looking for opportunities, the focus remains on internal leasing strategies that yield high returns [51][75] Question: How does the company view the current leasing environment and rent negotiations? - Management noted that they are seeing strong demand and are focused on negotiating favorable terms, including fixed CAM and rent bumps [119][80] Question: What percentage of existing in-place rents have fixed rent bumps? - Approximately 50% of the leases have fixed rent bumps, with a goal to increase this percentage over time [80] Question: How does the company plan to manage its inventory of boxes? - Management stated that they are actively negotiating leases and have a positive sentiment regarding demand across various segments [91][114]

For the quarter ended March 2024, Kite Realty Group (KRG) reported revenue of $207.44 million, up 0.3% over the same period last year. EPS came in at $0.50, compared to $0.02 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $207.86 million, representing a surprise of -0.20%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.50.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Kite Realty Group (KRG) came out with quarterly funds from operations (FFO) of $0.50 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.51 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this real estate investment trust would post FFO of $0.49 per share when it actually produced FFO of $0.50, delivering a surprise of 2.04%.Over the last four quarters, the company has surpassed consensus FFO estimates three times.Kite ...

[Earnings Press Release](index=3&type=section&id=Earnings%20Press%20Release) [First Quarter 2024 Operating Results](index=3&type=section&id=First%20Quarter%202024%20Operating%20Results) Kite Realty Group Trust reported strong Q1 2024 results, with net income increasing to $14.2 million and FFO at $0.50 per diluted share, raising full-year guidance Q1 2024 Key Financial Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income Attributable to Common Shareholders | $14.2 million | $5.4 million | | Net Income per Diluted Share | $0.06 | $0.02 | | NAREIT FFO of the Operating Partnership | $112.8 million | - | | NAREIT FFO per Diluted Share | $0.50 | - | | Same Property NOI Increase | 1.8% | - | - Executed **185** new and renewal leases totaling approximately **1.0 million square feet**[8](index=8&type=chunk) - Achieved blended cash leasing spreads of **12.8%** on comparable leases, with new leases at **48.1%**[8](index=8&type=chunk) - The retail portfolio's leased percentage increased by **10 basis points** sequentially to **94.0%**[8](index=8&type=chunk) - Received a corporate credit rating upgrade to **Baa2** from Baa3 by Moody's Investors Service and a 'Positive' outlook revision from Fitch Ratings[8](index=8&type=chunk)[9](index=9&type=chunk) - Net debt to Adjusted EBITDA stood at **5.1x** as of March 31, 2024[8](index=8&type=chunk) [Dividend](index=4&type=section&id=Dividend) The Board of Trustees declared a Q2 2024 dividend of $0.25 per common share, a 4.2% increase year-over-year, payable July 16, 2024 - Declared a Q2 2024 dividend of **$0.25 per common share**, a **4.2%** year-over-year increase[10](index=10&type=chunk) [2024 Earnings Guidance](index=4&type=section&id=2024%20Earnings%20Guidance) The company raised its 2024 NAREIT FFO guidance to $2.02-$2.08 per diluted share, based on improved Same Property NOI growth and lower bad debt assumption Updated 2024 NAREIT FFO Guidance (per diluted share) | Guidance | Low | High | | :--- | :--- | :--- | | Net income | $0.30 | $0.36 | | Depreciation and amortization | $1.73 | $1.73 | | Realized gains/losses on sales, net | ($0.01) | ($0.01) | | **NAREIT FFO** | **$2.02** | **$2.08** | - Raised 2024 Same Property NOI growth guidance to a range of **1.5% to 2.5%**, a **50-basis point** increase at the midpoint[14](index=14&type=chunk) - Decreased full-year bad debt assumption to **0.55% to 1.05%** of total revenues, a **20-basis point** decrease at the midpoint[14](index=14&type=chunk) [Results Overview](index=7&type=section&id=Results%20Overview) This section provides a comprehensive snapshot of KRG's financial and operational performance for Q1 2024, highlighting key metrics and updated guidance [Summary Financial Results and Ratios](index=7&type=section&id=Summary%20Financial%20Results%20and%20Ratios) In Q1 2024, KRG generated $207.4 million in revenue and $14.2 million net income, with NAREIT FFO at $0.50 per diluted share and Same Property NOI growth of 1.8% Q1 2024 Financial Highlights | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenue | $207,439 thousand | $206,750 thousand | | Net Income Attributable to Common Shareholders | $14,156 thousand | $5,391 thousand | | NAREIT FFO per Diluted Share | $0.50 | $0.51 | | Same Property NOI Performance | 1.8% | 6.5% | - Net debt to Adjusted EBITDA was **5.1x**, consistent with the previous two quarters but down from **5.3x** in Q1 2023[21](index=21&type=chunk) [Summary Portfolio Statistics](index=7&type=section&id=Summary%20Portfolio%20Statistics) As of Q1 2024, KRG's portfolio comprised 180 retail properties, 94.0% leased, with ABR per square foot at $20.84 and a 12.8% blended cash rent spread Q1 2024 Portfolio and Leasing Metrics | Metric | Q1 2024 | | :--- | :--- | | Operating Retail Properties | 180 | | Owned Retail Operating GLA | 28.1 M sq. ft. | | Percent Leased – Retail | 94.0% | | ABR per Square Foot | $20.84 | | Total New and Renewal Lease Cash Rent Spread | 12.8% | - On January 31, 2024, a joint venture sold the **267-unit Glendale Center Apartments** property[22](index=22&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, KRG's total assets increased to $7.2 billion, primarily due to higher indebtedness, while total equity slightly decreased to $3.53 billion Balance Sheet Summary (in thousands) | Account | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Net Investment Properties | $6,305,657 | $6,358,291 | | Cash and Cash Equivalents | $83,579 | $36,413 | | Total Assets | $7,204,494 | $6,944,078 | | Mortgage and Other Indebtedness, net | $3,167,513 | $2,829,202 | | Total Liabilities | $3,598,072 | $3,300,223 | | Total Equity | $3,532,709 | $3,570,568 | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2024, KRG reported total revenues of $207.4 million, with net income attributable to common shareholders significantly rising to $14.2 million ($0.06 per share) Statement of Operations Summary (in thousands) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenue | $207,439 | $206,750 | | Operating Income | $39,425 | $30,798 | | Interest Expense | ($30,364) | ($25,425) | | Gain on sale of unconsolidated property, net | $2,325 | $— | | Net Income Attributable to Common Shareholders | $14,156 | $5,391 | | Net Income per Diluted Share | $0.06 | $0.02 | [NOI and EBITDA Analysis](index=10&type=section&id=NOI%20and%20EBITDA%20Analysis) [Same Property Net Operating Income (NOI)](index=10&type=section&id=Same%20Property%20Net%20Operating%20Income) For Q1 2024, Same Property NOI increased by 1.8% to $143.8 million, driven by higher minimum rent, tenant recoveries, and reduced bad debt reserve Same Property NOI Growth (in thousands) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $196,372 | $192,018 | - | | Total Expenses | ($52,576) | ($50,816) | - | | **Same Property NOI** | **$143,796** | **$141,202** | **1.8%** | - The same property pool for the period consisted of **179 properties**[28](index=28&type=chunk) [Net Operating Income and Adjusted EBITDA by Quarter](index=11&type=section&id=Net%20Operating%20Income%20and%20Adjusted%20EBITDA%20by%20Quarter) In Q1 2024, KRG's total property NOI was $152.5 million and Adjusted EBITDA was $140.0 million, both showing stability with a 73.8% NOI margin Quarterly NOI and Adjusted EBITDA (in thousands) | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | NOI | $152,509 | $151,917 | $150,482 | | Adjusted EBITDA | $140,040 | $138,073 | $138,869 | | NOI Margin - Retail | 74.4% | 76.5% | 74.4% | | Recovery Ratio - Retail | 91.6% | 92.2% | 87.2% | - Minimum rent in Q1 2024 included **$2.0 million** of lease termination income[31](index=31&type=chunk) [Funds From Operations (FFO)](index=12&type=section&id=Funds%20From%20Operations) For Q1 2024, KRG reported FFO of $112.8 million ($0.50 per diluted share), slightly down from Q1 2023, with Total Recurring Adjusted FFO at $83.2 million [Joint Venture Summary](index=13&type=section&id=Joint%20Venture%20Summary) As of March 31, 2024, KRG holds interests in consolidated and unconsolidated joint ventures, with a $2.3 million gain from a recent property sale [Debt Profile and Liquidity](index=14&type=section&id=Debt%20Profile%20and%20Liquidity) [Key Debt Metrics](index=14&type=section&id=Key%20Debt%20Metrics) As of Q1 2024, KRG maintained a strong balance sheet with a Net Debt to Adjusted EBITDA ratio of 5.1x and total liquidity of approximately $1.45 billion - The ratio of Company share of Net Debt to Annualized Adjusted EBITDA was **5.1x**[46](index=46&type=chunk) - Total liquidity was **$1.45 billion**, including **$1.1 billion** available under the unsecured credit facility[45](index=45&type=chunk) - The company is in compliance with all major debt covenants, such as total debt to undepreciated assets at **36%** (vs. <60% limit)[44](index=44&type=chunk) - **95%** of the company's Total NOI is unencumbered[45](index=45&type=chunk) [Summary of Outstanding Debt](index=15&type=section&id=Summary%20of%20Outstanding%20Debt) KRG's total outstanding debt was $3.22 billion with a 4.37% weighted average interest rate and 4.3 years to maturity, with 93% fixed-rate debt Total Outstanding Debt Overview | Debt Type | Amount Outstanding (in thousands) | Ratio | Weighted Avg. Interest Rate | Weighted Avg. Years to Maturity | | :--- | :--- | :--- | :--- | :--- | | Fixed Rate Debt | $2,980,273 | 93% | 4.05% | 4.4 | | Variable Rate Debt | $171,400 | 5% | 9.09% | 2.5 | | **Total** | **$3,222,086** | **100%** | **4.37%** | **4.3** | - Proceeds from the January 2024 issuance of **$350.0 million** in senior unsecured notes are expected to satisfy all 2024 debt maturities[51](index=51&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 $269.6 million maturing in 2024 and larger maturities in 2025 and 2026 Upcoming Debt Maturities (Unsecured) | Year | Amount Maturing (in thousands) | | :--- | :--- | | 2024 | $269,635 | | 2025 | $430,000 | | 2026 | $550,000 | | 2027 | $250,000 | - The company utilizes interest rate swaps to manage interest rate risk, with **$820.0 million** of variable rate debt hedged to fixed rates and **$155.0 million** of fixed rate debt hedged to floating rates[49](index=49&type=chunk)[50](index=50&type=chunk) [Development and Redevelopment Projects](index=17&type=section&id=Development%20and%20Redevelopment%20Projects) KRG has two active development projects, Carillon and The Corner, expected to complete in Q4 2024 and add $5.2-$5.9 million in stabilized NOI [Portfolio Diversification](index=18&type=section&id=Portfolio%20Diversification) [Geographic Diversification](index=18&type=section&id=Geographic%20Diversification) KRG's retail portfolio is heavily concentrated in the Southern U.S., accounting for 62.8% of ABR, with Texas as the largest single state at 26.3% Retail ABR by Region | Region | % of Weighted Retail ABR | | :--- | :--- | | South | 62.8% | | West | 16.5% | | Midwest | 11.8% | | Northeast | 8.9% | - Texas is the most significant state, representing **26.3%** of total retail ABR from **44 properties**[68](index=68&type=chunk) [Top 25 Tenants by ABR](index=19&type=section&id=Top%2025%20Tenants%20by%20ABR) KRG's tenant base is diversified, with the top 25 tenants representing 28.7% of total ABR, and The TJX Companies as the top tenant at 2.7% - The top 25 tenants represent **28.7%** of the total weighted ABR[71](index=71&type=chunk) Top 5 Tenants by ABR | Rank | Tenant | % of Weighted ABR | S&P Rating | | :--- | :--- | :--- | :--- | | 1 | The TJX Companies, Inc. | 2.7% | A | | 2 | Best Buy Co., Inc. | 2.0% | BBB+ | | 3 | Ross Stores, Inc. | 1.9% | BBB+ | | 4 | PetSmart, Inc. | 1.8% | B+ | | 5 | Michaels Stores, Inc. | 1.4% | N/A | [Leasing Activity](index=20&type=section&id=Leasing%20Activity) [Retail Leasing Spreads](index=20&type=section&id=Retail%20Leasing%20Spreads) In Q1 2024, KRG executed 185 leases for 968,681 square feet, achieving a 12.8% blended cash rent spread, with new leases at 48.1% Q1 2024 Comparable Cash Rent Spreads | Category | Leases | Sq. Ft. | Cash Rent Spread | | :--- | :--- | :--- | :--- | | New Leases | 19 | 115,295 | 48.1% | | Non-Option Renewals | 57 | 174,284 | 12.2% | | Option Renewals | 54 | 462,628 | 5.3% | | **Total** | **130** | **752,207** | **12.8%** | [Lease Expirations](index=21&type=section&id=Lease%20Expirations) KRG has a manageable lease expiration schedule, with 5.5% of ABR expiring in 2024 and larger maturities in 2025 and 2028 Lease Expiration Schedule by ABR | Year | % of Total ABR Expiring | | :--- | :--- | | 2024 | 5.5% | | 2025 | 12.3% | | 2026 | 11.9% | | 2027 | 13.2% | | 2028 | 15.6% | - The expiring ABR per square foot for leases maturing in 2024 is **$23.98**, which is above the portfolio average of **$20.84**, suggesting potential for positive re-leasing spreads[79](index=79&type=chunk) [Components of Net Asset Value](index=22&type=section&id=Components%20of%20Net%20Asset%20Value) This section details the calculation of Annualized Normalized Portfolio Cash NOI, a key input for NAV, reaching $603.6 million including ground leases [Non-GAAP Financial Measures](index=23&type=section&id=Non-GAAP%20Financial%20Measures) This section defines non-GAAP financial measures like FFO, AFFO, NOI, Same Property NOI, and EBITDA, provided to help investors assess operating performance

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a m ...

Vertigo3d Income investing can be a lot like building real estate. Similar to how a building is put together brick by brick (or steel frame by frame), a sizable income stream can be accumulated over time so long as one is willing to be patient and make opportunistic purchases when the chips are down. Such may be the case with Kite Realty Group Trust (NYSE:KRG), which, as shown below, now sits near lows last reached in October of last year. At the current price of $20, and the dividend yield is now back to 5 ...

Portfolio and Properties - As of December 31, 2023, Kite Realty Group Trust owned interests in 180 operating retail properties totaling approximately 28.1 million square feet and one office property with 0.3 million square feet [186]. - Kite Realty's portfolio includes a refined mix of prominent grocers and expanding retailers, enhancing tenant demand [190]. - Kite Realty's development and redevelopment projects include properties like Hamilton Crossing Centre and Edwards Multiplex, with ongoing transitions to mixed-use developments [198]. - The company is obligated under 12 ground leases for approximately 98 acres of land, with expiration dates ranging from 2025 to 2092 [247]. Financial Performance - Total revenue for the year ended December 31, 2023, was $823.0 million, an increase of $21.0 million or 2.6% compared to $802.0 million in 2022 [201]. - Net income attributable to common shareholders for 2023 was $47.5 million, a substantial increase of $60.1 million compared to a net loss of $12.6 million in 2022 [201]. - FFO attributable to common shareholders rose to $446,890 in 2023, up from $425,845 in 2022, with FFO per share increasing to $2.03 from $1.94 [224]. - Same Property NOI increased by 4.8% in 2023 to $555,396 compared to $530,021 in 2022, driven by contractual rent growth and lower bad debt expense [219]. - Total property NOI for 2023 was $608,254, reflecting a 4.6% increase from $581,651 in 2022 [218]. Leasing and Occupancy - In Q4 2023, Kite Realty experienced its highest quarterly new leasing activity in the company's history with over 380,000 square feet of new leasing volume [188]. - The average base rent for new comparable leases signed in 2023 was $27.53 per square foot, compared to $19.48 per square foot for expiring leases, indicating a significant increase in leasing rates [202]. - The occupancy rate of fully operational properties increased from 91.8% in 2022 to 92.0% in 2023, reflecting improved property performance [201]. - The leased percentage at period end decreased to 94.0% from 95.4% in 2022, attributed to tenant bankruptcies [218][223]. - Economic occupancy percentage at period end was 91.2%, down from 92.5% in 2022 [218]. Expenses and Costs - Property operating expenses decreased as a percentage of total revenue from 13.4% in 2022 to 13.1% in 2023, despite a nominal increase in expenses [205]. - Depreciation and amortization expenses decreased by $43.4 million, or 9.2%, primarily due to certain assets becoming fully depreciated [209]. - General, administrative, and other expenses increased by $1.3 million, or 2.3%, mainly due to higher transportation expenses and consulting fees [207]. - Capital expenditures decreased by $16.0 million in 2023, primarily due to timing of capital projects [257]. Debt and Liquidity - Kite Realty ended 2023 with approximately $1.1 billion of combined cash and borrowing capacity on the Revolving Facility [191]. - The company had $269.6 million of debt principal scheduled to mature through December 31, 2024, expected to be satisfied with proceeds from the Notes Due 2034 issued in January 2024 [191]. - The company had $269.6 million of unsecured debt scheduled to mature in 2024, with sufficient liquidity to repay these obligations [238]. - Net Debt to Adjusted EBITDA ratio stood at 5.1x as of December 31, 2023 [227]. - The company expects adequate liquidity over the next 12 months to meet its cash requirements [230]. Investments and Distributions - The company incurred $142.6 million in total capital expenditures for the year ended December 31, 2023, including $28.1 million for active development and redevelopment projects and $114.5 million for recurring operating capital expenditures [248]. - Cash used in investing activities was $81.7 million for the year ended December 31, 2023, compared to $45.1 million in 2022, reflecting increased investment activity [253]. - The company made distributions to common shareholders totaling $213.5 million in 2023, compared to $182.2 million in 2022 [257]. - The company declared a cash distribution of $0.25 per common share for the first quarter of 2024, expected to be paid on April 12, 2024 [240]. Interest Rates and Debt Structure - Fixed rate debt constituted 94% of total consolidated indebtedness, with a weighted average interest rate of 4.30% [259][276]. - A 100-basis point change in interest rates on fixed rate debt scheduled to mature in 2024 would change annual cash flow by $2.7 million [277]. - As of December 31, 2023, the one-month Bloomberg Short Term Bank Yield Index (BSBY) interest rate was 5.44% [261].

Q4 2023 INVESTOR UPDATE Balance Sheet Snapshot NYSE Well-Staggered Maturity Ladder ■ Unsecured Debt ■Line of Credit Top 15 Population Growth States1 22% Strategic Gateway Markets (DC, Seattle and NYC) | --- | --- | |----------------------------|-------| | TOP 5 STATES (ABR) \nTexas | 26% | | Florida | 11% | | Maryland | 6% | | North Carolina | 6% | | | | KRG LISTED Debt Maturity Profile as of December 31, 2023 ($ in M) We intend to use proceeds from our January 2024 $350.0 million senior unsecured notes iss ...

Kite Realty Group Trust (NYSE:KRG) Q4 2023 Earnings Conference Call February 14, 2024 1:00 PM ET Company Participants Bryan McCarthy – Senior Vice President-Corporate Marketing and Communications John Kite – Chairman and Chief Executive Officer Heath Fear – Executive Vice President and Chief Financial Officer Tom McGowan – President and Chief Operating Officer Conference Call Participants Todd Thomas – KeyBanc Capital Markets Floris van Dijkum – Compass Point Craig Mailman – Citi Alex Goldfarb – Piper Sandl ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 (Exact name of registrant as specified in its charter) Delaware Kite Realty Group, L.P. 20-1453863 (State or other jurisdiction of incorporation or organization) 30 S. Meridian Street, Suite 1100, Indianapolis, Indiana 46204 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SEC ...