Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. Based in Indianapolis, Kite Realty Group (KRG) is in the Finance sector, and so far this year, shares have seen a price change of -2.58%. The real estate investment trust is paying out a dividend of $0.25 per share at the moment, wit ...

SolStock/E+ via Getty Images For some time now we have been enthused about the investment prospects in retail real estate. Shopping center occupancy rates are near a historic high, rents are rising, and new supply isn't being developed to meet demand. We find many of the retail REITs compelling, but today we will focus on Kite Realty Group Trust (NYSE: KRG) because so many of its financial metrics define its shares as being cheap and dramatically undervalued in the market. Shopping Centers As a peer set, re ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed b ...

PART I — FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for Kite Realty Group Trust and its Operating Partnership for the quarter ended March 31, 2024, including comparative balance sheets, statements of operations, statements of equity, and cash flows, along with detailed notes explaining accounting policies for key financial items [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Presents the unaudited consolidated balance sheets, statements of operations and comprehensive income, statements of shareholders' equity, and statements of cash flows for both Kite Realty Group Trust (Parent Company) and Kite Realty Group, L.P. (Operating Partnership) for the three months ended March 31, 2024, with comparative data for 2023 Kite Realty Group Trust - Consolidated Statements of Operations (Q1 2024 vs Q1 2023) | Metric | Three Months Ended March 31, 2024 (Million USD) | Three Months Ended March 31, 2023 (Million USD) | | :--- | :--- | :--- | | **Total Revenue** | $207.4 million | $206.8 million | | **Operating Income** | $39.4 million | $30.8 million | | **Net Income** | $14.4 million | $5.6 million | | **Net Income Attributable to Common Shareholders** | $14.2 million | $5.4 million | | **Net Income per Common Share (basic and diluted)** | $0.06 | $0.02 | Kite Realty Group Trust - Consolidated Balance Sheet Highlights | Metric | March 31, 2024 (Million USD) | December 31, 2023 (Million USD) | | :--- | :--- | :--- | | **Total Assets** | $7,204.5 million | $6,944.1 million | | **Mortgage and Other Indebtedness, net** | $3,167.5 million | $2,829.2 million | | **Total Liabilities** | $3,598.1 million | $3,300.2 million | | **Total Shareholders' Equity** | $3,530.8 million | $3,568.1 million | - Net cash provided by operating activities decreased to **$53.6 million** from **$63.6 million** in the prior year period. Net cash used in investing activities increased significantly to **$289.3 million**, primarily due to a **$265.0 million** investment in short-term deposits. Net cash provided by financing activities was **$283.3 million**, driven by **$385.3 million** in loan proceeds[23](index=23&type=chunk) [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations of the company's organization, accounting policies, and specific financial statement items, covering its portfolio of **180** operating retail properties, debt structure including a new **$350 million** senior notes offering, derivative instruments used for hedging, and shareholder equity activities such as a **$0.25** per share Q1 dividend - As of March 31, 2024, the company's portfolio consisted of **180** operating retail properties totaling **28.1 million** square feet and one office property[40](index=40&type=chunk) - In Q1 2024, the company completed a public offering of **$350.0 million** in **5.50%** senior unsecured notes due 2034. The proceeds will be used to satisfy the **$269.6 million** of debt maturities due in 2024[71](index=71&type=chunk) - The Board of Trustees declared a cash distribution of **$0.25** per common share for the first quarter of 2024, an increase from **$0.24** in Q1 2023[96](index=96&type=chunk)[97](index=97&type=chunk) - The company has a **$300 million** share repurchase program, extended to February 28, 2025. As of March 31, 2024, no shares have been repurchased under this program[99](index=99&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations for Q1 2024, covering operating activities, a detailed comparison of operating results versus the prior year, and an analysis of non-GAAP measures like Same Property NOI (up **1.8%**) and FFO, also detailing the company's liquidity position and capital expenditure plans [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Compares Q1 2024 to Q1 2023, showing a **$2.8 million** increase in rental income and a **$7.7 million** decrease in depreciation and amortization expense, breaking down changes by property type and presenting key non-GAAP metrics, including a **1.8%** increase in Same Property NOI, FFO of **$0.50** per diluted share, and a Net Debt to Adjusted EBITDA ratio of **5.1x** - In Q1 2024, the company executed **185** new and renewal leases totaling **968,681** square feet, achieving a **12.8%** cash leasing spread on comparable leases. New and non-option renewal leases had a blended cash spread of **23.3%**[117](index=117&type=chunk) Q1 2024 vs Q1 2023 Operating Results Comparison | Metric | Q1 2024 (Million USD) | Q1 2023 (Million USD) | Change (Million USD) | | :--- | :--- | :--- | :--- | | **Rental Income** | $205.8M | $203.1M | +$2.7M | | **Total Revenue** | $207.4M | $206.8M | +$0.7M | | **Depreciation and Amortization** | $100.4M | $108.1M | -$7.7M | | **Operating Income** | $39.4M | $30.8M | +$8.6M | | **Interest Expense** | ($30.4M) | ($25.4M) | -$4.9M | | **Net Income Attributable to Common Shareholders** | $14.2M | $5.4M | +$8.8M | - Same Property NOI increased by **1.8%** for Q1 2024 compared to Q1 2023, primarily due to contractual rent growth and lower bad debt expense. The same property pool consisted of **179** properties with a leased percentage of **94.0%** at period end[137](index=137&type=chunk)[138](index=138&type=chunk) Funds From Operations (FFO) Reconciliation | Metric | Three Months Ended March 31, 2024 (Million USD) | Three Months Ended March 31, 2023 (Million USD) | | :--- | :--- | :--- | | **FFO attributable to common shareholders** | $111.0 million | $112.3 million | | **FFO per share of the Operating Partnership – diluted** | $0.50 | $0.51 | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Details the company's strong liquidity position, with **$83.6 million** in cash, **$265.0 million** in short-term deposits, and **$1.1 billion** available under its revolving facility as of March 31, 2024, indicating adequate liquidity for the next 12 months and beyond, with proceeds from a recent note offering set to cover all 2024 debt maturities, and outlining future capital needs including tenant improvements, development projects, and potential acquisitions - As of March 31, 2024, the company had **$83.6 million** in cash, **$265.0 million** in short-term deposits, and **$1.1 billion** of availability under its revolving facility[150](index=150&type=chunk) - The company has **$619.6 million** of unsecured debt maturing before March 31, 2025, which it plans to repay using proceeds from the Notes Due 2034, cash on hand, and borrowings on the Revolving Facility[158](index=158&type=chunk) - The company anticipates incurring approximately **$100 million** of additional major tenant improvement costs over the next 12 to 24 months for currently vacant space[162](index=162&type=chunk) [Quantitative and Qualitative Disclosure about Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) The company's primary market risk is interest rate volatility affecting its debt, with **95%** of its **$3.2 billion** in consolidated debt fixed-rate as of March 31, 2024, after accounting for interest rate hedges, and estimates that a **100-basis point** change in interest rates would change its annual cash flow by **$1.7 million** on its unhedged variable-rate debt - As of March 31, 2024, the company had **$3.2 billion** of outstanding consolidated indebtedness. After the effects of hedge agreements, **95%** of this debt was fixed-rate[179](index=179&type=chunk) - A **100-basis point** change in interest rates on the company's unhedged variable rate debt would change annual cash flow by **$1.7 million**[180](index=180&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the disclosure controls and procedures for both Kite Realty Group Trust and Kite Realty Group, L.P. as of March 31, 2024, concluding that these controls were effective and noting no material changes in internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer of both the Parent Company and the Operating Partnership concluded that disclosure controls and procedures were effective as of the end of the period[181](index=181&type=chunk)[183](index=183&type=chunk) - No change in internal control over financial reporting was identified during the quarter that has materially affected, or is reasonably likely to materially affect, internal controls[182](index=182&type=chunk)[184](index=184&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not subject to any material litigation, nor is any material litigation currently threatened against it, and any ongoing legal matters are considered routine and not expected to have a material adverse impact on the company's financial condition or results - The company is not subject to any material litigation and does not expect routine claims to have a material adverse impact on its consolidated financial condition, results of operations, or cash flows[187](index=187&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes from the risk factors that were previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - There have been no material changes from the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[188](index=188&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2024, the company repurchased **42,845** of its common shares at an average price of **$21.28** per share, which were surrendered by employees to satisfy tax obligations related to the vesting of restricted stock and were not part of the company's publicly announced **$300 million** share repurchase program Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Number of Shares Purchased | Average Price Paid per Share (USD) | | :--- | :--- | :--- | | Jan 2024 | — | $— | | Feb 2024 | 1,544 | $21.28 | | Mar 2024 | 41,301 | $21.28 | | **Total** | **42,845** | **$21.28** | - The repurchases were made from employees to satisfy tax obligations on vested restricted shares and were not part of the publicly announced **$300 million** Share Repurchase Program[189](index=189&type=chunk)[190](index=190&type=chunk) [Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company for the reporting period - Not applicable[191](index=191&type=chunk) [Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company for the reporting period - Not applicable[192](index=192&type=chunk) [Other Information](index=41&type=section&id=Item%205.%20Other%20Information) The company reports that during the first quarter of 2024, none of its officers or trustees adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements - During Q1 2024, no officers or trustees adopted or terminated any Rule 10b5-1(c) trading plans[193](index=193&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications by the principal executive and financial officers, and interactive data files (XBRL) - The report includes filed exhibits such as officer certifications (31.1-31.4, 32.1-32.2) and Inline XBRL documents (101 series)[194](index=194&type=chunk) [Signatures](index=43&type=section&id=SIGNATURES) - The report was duly signed on May 7, 2024, by John A. Kite, Chairman and Chief Executive Officer, and Heath R. Fear, Executive Vice President and Chief Financial Officer, on behalf of both Kite Realty Group Trust and Kite Realty Group, L.P[197](index=197&type=chunk)

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.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by it ...

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 ...