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 ...

Core Viewpoint - Kite Realty Group Trust has received an upgrade in its issuer credit rating from S&P Ratings, reflecting improved financial stability and outlook for the company [3][4]. Company Overview - Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) based in Indianapolis, IN, specializing in open-air shopping centers and mixed-use assets [4]. - The company primarily focuses on grocery-anchored properties located in high-growth Sun Belt regions and strategic gateway markets [4]. - As of March 31, 2024, Kite Realty owned interests in 180 U.S. open-air shopping centers and mixed-use assets, totaling approximately 28.1 million square feet of gross leasable space [4]. Financial Performance - The upgrade to a 'BBB' rating from S&P is attributed to the company's successful deleveraging of its balance sheet following its merger with RPAI [4]. - S&P anticipates that Kite Realty will likely enhance its leased occupancy and rental income over the next few years due to sustained demand for its well-located properties amid limited supply in certain markets [4].

"KRG's corporate responsibility initiatives demonstrate our ongoing commitment to drive sustainable operations and deliver on our long-term goals and strategies," said John A. Kite, Chairman and CEO. "Our efforts enhance our portfolio's performance and enable our team to serve as the most compelling, flexible, and effective link between retailers and consumers, delivering meaningful experiences and longterm value." Reduced Scope 1 and 2 greenhouse gas (GHG) emissions by 7.9% on a year-over-year basis Cumula ...

For more information, please visit KRG's Corporate Responsibility webpage to access the 2023 Corporate Responsibility Report. About Kite Realty Group Trust INDIANAPOLIS, June 27, 2024 (GLOBE NEWSWIRE) -- Kite Realty Group Trust (NYSE: KRG) announced today the release of its annual Corporate Responsibility Report, which provides a comprehensive overview of the Company's strategy and initiatives regarding environmental, social, and governance (ESG) practices and policies. The report also details progress, mea ...

KRG Q2 2024 Earnings Conference Call Webcast Link: KRG Second Quarter 2024 Webcast About Kite Realty Group Trust Connect with KRG: LinkedIn | Twitter | Instagram | Facebook This release, together with other statements and information publicly disseminated by us, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934. Such statements are based on assumptions and expectations that ...

INDIANAPOLIS, June 18, 2024 (GLOBE NEWSWIRE) -- Kite Realty Group Trust (NYSE: KRG) announced today that it will release financial results for the quarter ending June 30, 2024, after the market closes on Tuesday, July 30, 2024. KRG will conduct a conference call to discuss its financial results on Wednesday, July 31, 2024 at 1:00 p.m. Eastern Time. Dial-In Registration: KRG Second Quarter 2024 Teleconference Registration A live webcast of the conference call will also be available at kiterealty.com. A repla ...