Financial Data and Key Metrics Changes - The company generated FFO per share of $0.51 for Q3, with same-property NOI growing by 4.7% year-over-year, driven by minimum rent growth, lower bad debt, and overage rent [39][68] - Year-to-date, the company has earned $1.54 of NAREIT FFO per share and increased same-property NOI by 5.5% year-over-year [47][68] - The company raised its NAREIT FFO guidance to a range of $1.99 to $2.03 per share, reflecting a $0.03 increase at the midpoint [47][62] Business Line Data and Key Metrics Changes - The company signed 214 leases in Q3, representing approximately 1.4 million square feet, with blended cash spreads of 14.2% on comparable new and renewal leases [40] - Non-option renewal spreads for the quarter were 17.8%, indicating strong performance in lease renewals [40] - Average annual fixed rent increases for new and non-option renewals year-to-date was 2.5%, which is 100 basis points higher than the portfolio average [41] Market Data and Key Metrics Changes - The company reported a predictable step backward in lease rates due to the Bed Bath & Beyond situation, but has seen a flurry of activity on empty boxes, signing five box deals at 53% comparable cash spreads [42] - The company is negotiating leases with 16 boxes, including eight related to Bed Bath & Beyond, indicating strong leasing activity [22] Company Strategy and Development Direction - The company aims to drive value by leasing space and commencing rent, with a focus on organic growth opportunities in open-air retail environments [43] - The company is committed to maintaining a strong balance sheet while being opportunistic in the unsecured bond market [48] - The company is focused on enhancing its merchandising mix and operational efficiencies to further drive demand for its properties [44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the retail environment, noting that retailers recognize the benefits of opening stores quickly [17][18] - The company believes that supply and demand dynamics are favorable, with limited high-quality space available [31][32] - Management anticipates that the current favorable conditions will continue in the medium term [33] Other Important Information - The company reported a bad debt reserve assumption of 45 basis points for the full year, which is below the typical run rate of 75 to 100 basis points [13][14] - The company has a limited active development pipeline but is working on several projects, including Hamilton Crossing and Carillon [70][92] Q&A Session Summary Question: How did the rents stack up versus original pro forma on backfilling boxes? - Management indicated that they are focused on the right tenant mix and are pleased with the current leasing activity [8] Question: Can you provide more color around the dispositions that closed during the quarter? - Management noted that the pricing for disposed assets was attractive, with a cap rate in the high five range [9][10] Question: What is the bad debt reserve assumption for the full year? - The bad debt reserve was reaffirmed at 45 basis points, which is lower than the typical run rate [13][14] Question: Are there any markets that are slower in the approval process? - Management acknowledged that the approval process has been slow but emphasized their success in pushing for timely approvals [17][54] Question: What is the outlook for fee income trends over the next few quarters? - Management indicated that fee income from the Hamilton Crossing project will wind down, but there are potential new projects that could generate fee income [106]

PART I — FINANCIAL INFORMATION Presents unaudited consolidated financial statements for Kite Realty Group Trust and its Operating Partnership, including notes [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited consolidated financial statements for Kite Realty Group Trust and its Operating Partnership, including notes [Kite Realty Group Trust Financial Statements](index=5&type=section&id=Kite%20Realty%20Group%20Trust%20Financial%20Statements) Kite Realty Group Trust reports increased net income for Q2 and H1 2023, with slight asset and liability decreases Kite Realty Group Trust - Key Financial Highlights (in thousands) | Metric | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Balance Sheet** | | | | Total Assets | $7,165,099 | $7,341,982 | | Total Liabilities | $3,405,861 | $3,516,130 | | Total Shareholders' Equity | $3,692,807 | $3,766,515 | | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | **Income Statement (3 Months)** | | | | Total Revenue | $208,759 | $202,605 | | Net Income Attributable to Common Shareholders | $32,058 | $13,131 | | EPS (basic and diluted) | $0.15 | $0.06 | | Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | | **Income Statement (6 Months)** | | | | Total Revenue | $415,509 | $396,996 | | Net Income (Loss) Attributable to Common Shareholders | $37,449 | $(3,673) | | EPS (basic and diluted) | $0.17 | $(0.02) | - Net cash provided by operating activities for the six months ended June 30, 2023, was **$180.4 million**, an increase from **$154.3 million** in the prior-year period[24](index=24&type=chunk) - Net cash used in financing activities decreased to **$175.5 million** from **$224.2 million** year-over-year[24](index=24&type=chunk) [Kite Realty Group, L.P. and subsidiaries Financial Statements](index=9&type=section&id=Kite%20Realty%20Group%2C%20L.P.%20and%20subsidiaries%20Financial%20Statements) Operating Partnership financials mirror the Parent Company, differing primarily in the equity section Kite Realty Group, L.P. - Key Financial Highlights (in thousands) | Metric | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Balance Sheet** | | | | Total Assets | $7,165,099 | $7,341,982 | | Total Liabilities | $3,405,861 | $3,516,130 | | Total Partners' Equity | $3,692,807 | $3,766,515 | | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | **Income Statement (3 Months)** | | | | Total Revenue | $208,759 | $202,605 | | Net Income Attributable to Common Unitholders | $32,451 | $13,263 | | Net Income per Common Unit | $0.15 | $0.06 | [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, property portfolio, debt, and equity programs, with 181 retail properties Property Portfolio as of June 30, 2023 | Property Type | Properties | Square Footage | | :--- | :--- | :--- | | Operating retail properties | 181 | 28,590,350 | | Office properties | 1 | 287,291 | | Development/redevelopment projects | 2 | 150,000 | - During the first six months of 2023, the company sold two properties for a total of **$79.4 million**, recognizing a gain of **$28.4 million**[68](index=68&type=chunk) - No properties were acquired during this period[68](index=68&type=chunk) Consolidated Indebtedness as of June 30, 2023 (in thousands) | Debt Type | Amount Outstanding | Weighted Avg. Interest Rate | Weighted Avg. Years to Maturity | | :--- | :--- | :--- | :--- | | Fixed rate debt | $2,727,256 | 4.02% | 4.3 | | Variable rate debt | $182,933 | 8.87% | 2.7 | | **Total** | **$2,910,189** | **4.32%** | **4.2** | - The company has a **$300 million** Share Repurchase Program, extended through February 28, 2024[107](index=107&type=chunk) - No shares have been repurchased under this program as of June 30, 2023[107](index=107&type=chunk) - The company also has a **$150 million** At-The-Market (ATM) offering program, under which no shares have been sold[108](index=108&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2023 operations, financial results, non-GAAP measures, liquidity, and critical accounting estimates [Overview and Operating Activity](index=29&type=section&id=Overview%20and%20Operating%20Activity) Overview of REIT operations, portfolio of 181 retail properties, and Q2 2023 leasing activity - In Q2 2023, the company signed **190 leases** for **1,331,056 sq. ft.** with a blended cash leasing spread of **24.0%** for comparable new and non-option renewal leases[127](index=127&type=chunk) - Management notes that while most leases have provisions to mitigate inflation, the high inflation environment and rising interest rates have increased borrowing costs[125](index=125&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Detailed comparison of Q2 and H1 2023 operating results, including non-GAAP measures like Same Property NOI and FFO Comparison of Operating Results (Three Months Ended June 30, in thousands) | Line Item | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Rental income | $205,836 | $196,205 | $9,631 | | Total revenue | $208,759 | $202,605 | $6,154 | | Total expenses | $177,890 | $187,549 | $(9,659) | | Operating income | $59,309 | $39,014 | $20,295 | | Net income attributable to common shareholders | $32,058 | $13,131 | $18,927 | Same Property NOI Growth (in thousands) | Period | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $140,434 | $132,852 | 5.7% | | Six Months Ended June 30 | $279,442 | $263,328 | 6.1% | FFO, as adjusted, per Share (Diluted) | Period | 2023 | 2022 | | :--- | :--- | :--- | | Three Months Ended June 30 | $0.51 | $0.49 | | Six Months Ended June 30 | $1.02 | $0.94 | - The company's Net Debt to Annualized Adjusted EBITDA ratio was **5.0x** as of June 30, 2023[168](index=168&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Strong liquidity with $129.3 million cash and $1.1 billion available on credit facility as of June 30, 2023 - As of June 30, 2023, liquidity consisted of **$129.3 million** in cash and **$1.1 billion** of availability under the unsecured revolving credit facility[171](index=171&type=chunk) - The company anticipates incurring approximately **$100 million** in major tenant improvement costs over the next 12-18 months, largely related to re-leasing vacant space, including former Bed Bath & Beyond locations[182](index=182&type=chunk) Debt Maturities as of June 30, 2023 (in thousands) | Year | Total Debt Maturing | | :--- | :--- | | 2023 (remainder) | $124,246 | | 2024 | $272,356 | | 2025 | $682,848 | | 2026 | $552,981 | | 2027 | $253,120 | | Thereafter | $1,024,638 | Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $180,425 | $154,322 | | Net cash provided by investing activities | $8,013 | $68,646 | | Net cash used in financing activities | $(175,454) | $(224,179) | [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) Discusses market risk, primarily interest rate risk, with 94% of debt fixed-rate as of June 30, 2023 - As of June 30, 2023, after considering interest rate hedges, **94%** (**$2.7 billion**) of the company's debt was fixed-rate and **6%** (**$182.9 million**) was variable-rate[197](index=197&type=chunk) - A **100-basis point** change in interest rates on unhedged variable-rate debt would change annual cash flow by **$1.8 million**[198](index=198&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirms effective disclosure controls and procedures with no material changes in internal controls - The CEO and CFO of both the Parent Company and the Operating Partnership concluded that disclosure controls and procedures were effective as of June 30, 2023[199](index=199&type=chunk)[201](index=201&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[200](index=200&type=chunk)[202](index=202&type=chunk) PART II — OTHER INFORMATION Covers legal proceedings, risk factors, equity sales, related-party transactions, and exhibits [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to any material litigation or threatened legal proceedings - The company is not subject to any material litigation, nor is any material litigation currently threatened against it[205](index=205&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the 2022 Annual Report on Form 10-K - There have been no material changes from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022[206](index=206&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No share repurchases in Q2 2023; $300 million remains available under repurchase program - No shares of common stock were repurchased during the three months ended June 30, 2023[207](index=207&type=chunk) - As of June 30, 2023, **$300.0 million** remained available under the Share Repurchase Program, which now terminates on February 28, 2024[208](index=208&type=chunk) [Other Information](index=48&type=section&id=Item%205.%20Other%20Information) Discloses a related-party transaction involving assignment of development rights for Pan Am Plaza site - On August 7, 2023, a company subsidiary assigned development rights for the Pan Am Plaza site to Pan Am Development Partners, LLC, an entity affiliated with Chairman Emeritus Alvin E. Kite, CEO John A. Kite, and COO Thomas K. McGowan[117](index=117&type=chunk)[211](index=211&type=chunk) - In exchange for the rights, the assignee will pay an assignment fee of up to **$3.5 million**, payable upon completion of certain development activities expected in 2024[117](index=117&type=chunk)[212](index=212&type=chunk) - The transaction was approved by a special committee of independent trustees[117](index=117&type=chunk)[212](index=212&type=chunk) [Exhibits](index=49&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including certifications and XBRL financial data - Exhibits filed include certifications from the CEO and CFO (Exhibits 31.1-31.4, 32.1-32.2) and Inline XBRL documents (Exhibits 101, 104)[213](index=213&type=chunk)

Financial Data and Key Metrics Changes - The company generated NAREIT FFO per share of $0.51 during Q2 2023, exceeding consensus estimates by $0.03 per share [58] - Same-property NOI growth for the quarter was 5.7%, compared to the same period in 2022 [58] - The company raised its NAREIT FFO per share guidance range to $1.96 to $2, reflecting a $0.03 increase at the midpoint [48] Business Line Data and Key Metrics Changes - The average annual fixed rent increases for new and non-option renewals in the first half of 2023 was 2.4%, which is 90 basis points higher than the portfolio average [42] - The company signed 190 leases, representing over 1.3 million square feet, producing a sector-leading 14.8% blended cash spread on comparable new and renewal leases [59] - The company experienced a 32% return on capital for new leases [59] Market Data and Key Metrics Changes - The company is seeing strong demand for open-air retail, with a focus on enhancing the merchandising mix [63] - The company has opened two grocery stores in its portfolio year-to-date and has four more in the pipeline [44] - The company is negotiating with 15 different brands across various retail sectors, indicating a broad interest in its properties [43] Company Strategy and Development Direction - The company is focused on enhancing its merchandising mix and driving pricing power to improve its long-term growth profile [41] - The company is not actively seeking new land acquisitions but is concentrating on densifying and redeveloping existing projects [10] - The company aims to capitalize on the demand for open-air retail and the resiliency of its cash flows [63] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic environment is uncertain, leading to a conservative approach to bad debt assumptions [1][2] - The company anticipates a continued low supply environment for new retail construction, making existing centers more attractive [9] - Management expressed confidence in the ability to backfill spaces vacated by Bed Bath & Beyond with better tenants at higher rents [60] Other Important Information - The company has an enviable balance sheet with a net debt-to-EBITDA ratio of 5 times and over $1.2 billion in liquidity [50] - The company is not modeling any additional rent from Bed Bath & Beyond for the second half of 2023, expecting a decrease in gross rent from those locations [49] Q&A Session Summary Question: What is the impact of initiatives on the long-term growth of the portfolio? - Management indicated that the embedded rent growth achieved in 2023 is significantly above historical averages, with a focus on annual bumps and CPI adjustments [71][72] Question: Are there successes in driving annual escalators with anchor tenants? - Management confirmed that they are having success in discussions with tenants, although it is more challenging with anchor tenants due to less turnover [74][75] Question: What is the expected trajectory for occupancy rates moving into the second half of the year? - Management expects occupancy rates to decline initially due to the impact of Bed Bath & Beyond but anticipates recovery as new leases are signed [92][93] Question: What is the company's approach to acquisitions in the current market? - Management stated that while the acquisition environment is tepid, they are actively reviewing opportunities and remain selective [144][146]

KÍTE® Founded / IPO NYSE Market Cap1 Enterprise Value1 LISTED KRG Annualized Base Rent (ABR) per SF Operating Retail Properties SOUTHLAKE TOWN SQUARE Dallas / Fort Worth, TX MSA NYSE INVESTOR UPDATE KRG Overview Retail Portfolio Percent Leased 76% Q2 2023 INVESTOR UPDATE ▪ Declining retail supply in the U.S. following the Great Financial Crisis has been a driver for retail leased rates and the · pandemic amplified the trend as retailers realized the importance of their brick-and-mortar footprint Total Annua ...

Kite Realty Group Trust (NYSE:KRG) Q1 2023 Earnings Conference Call May 2, 2023 1:00 PM ET Company Participants Bryan McCarthy - Senior Vice President, Corporate Marketing & Communications John Kite - Chairman & Chief Executive Officer Heath Fear - Executive Vice President & Chief Financial Officer Tom McGowan - President & Chief Operating Officer Conference Call Participants Craig Mailman - Citi Todd Thomas - KeyBanc Floris Van Dijkum - Compass Point Alex Goldfarb - Piper Sandler Michael Mueller - JPMorgan ...

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 March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-32268 Kite Realty Group Trust Commission File Number: 333-202666-01 Kite Realty Group, L.P. KITE REALTY GROUP TRUST KITE REALTY GROUP, L.P ...

KÍTE® Q1 2023 LISTED NYSE 1960 / 2004 Founded / IPO $7.6B Enterprise Value1 29M Total Owned Retail GLA (SF) 5.3x Net Debt to Adjusted EBITDA 67% ABR in Sun Belt Markets SOUTHLAKE TOWN SQUARE Dallas / Fort Worth, TX MSA Best-in-Class Operating Platform Over $1.0B of available liquidity and minimal near- term capital commitments Q1 2023 INVESTOR UPDATE 3 | --- | |-----------------------------------------------------| | Key assumptions at the midpoint: | | | | Same property NOI growth range of 2.25% - | | 3.25 ...

PART I [Business](index=4&type=section&id=Item%201.%20Business) Kite Realty Group Trust is a REIT specializing in grocery-anchored shopping centers, focused on maximizing property value and cash flow through strategic leasing and redevelopment Portfolio Overview as of December 31, 2022 | Metric | Value | | :--- | :--- | | Operating Retail Properties | 183 | | Total Square Feet | ~28.8 million | | Retail Leased Percentage | 94.6% | | ABR per Square Foot | $20.02 | | Largest Tenant Concentration (by ABR) | < 2.5% | - The company's primary business objectives are to increase **cash flow** and **property value**, achieve **long-term growth**, and maximize **shareholder value** through the ownership, operation, and development of its retail assets[30](index=30&type=chunk) - Key strategies include maximizing **internal growth** via leasing and redevelopment, maintaining a **strong balance sheet** with **flexible funding sources**, and prudently pursuing selective acquisitions and renovations[33](index=33&type=chunk) Key 2022 Financial & Operating Highlights | Metric | Value | | :--- | :--- | | Net Loss Attributable to Common Shareholders | ($12.6 million) | | Funds From Operations (FFO) | $431.2 million | | Same Property NOI Growth (YoY) | 5.1% | | New & Renewal Leases Executed | 782 leases (~4.9M sq. ft.) | | Blended Cash Leasing Spread | 12.6% | | Dividends Declared per Share | $0.87 | - As of December 31, 2022, the company had **236 full-time employees** and demonstrated a commitment to diversity, with a workforce that was approximately **48% female** and **20% minority**[49](index=49&type=chunk)[51](index=51&type=chunk) - The company has established an **ESG Task Force** and published its **inaugural Corporate Responsibility Report**, with goals to **improve energy efficiency**, **water conservation**, and **expand EV charging stations** across its portfolio by 2026[56](index=56&type=chunk)[57](index=57&type=chunk) [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks including operational challenges, significant indebtedness, anti-takeover provisions, and critical tax risks related to maintaining REIT qualification - Operational risks include **inflation** impacting consumer spending and tenant health, potential **tenant bankruptcies** (noting Party City, Bed Bath & Beyond, and Regal Cinemas), and **e-commerce competition**[64](index=64&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk) - The company has **significant geographic concentration**, with **Texas (25.7%)**, **Florida (10.9%)**, **Maryland (6.8%)**, **New York (6.0%)**, and **North Carolina (5.4%)** representing a substantial portion of its base rent, exposing it to regional economic downturns[72](index=72&type=chunk) - Financial risks are significant, with **$3.0 billion** in consolidated indebtedness as of year-end 2022, and **rising interest rates** could materially increase borrowing costs and adversely affect financial results[84](index=84&type=chunk) - Organizational risks include **anti-takeover provisions** in the company's declaration of trust, such as a **7% ownership limit** for most shareholders, which may deter potential changes in control[109](index=109&type=chunk)[110](index=110&type=chunk) - A primary tax risk is the potential **failure to qualify as a REIT**, which would result in **corporate-level income tax** and **substantially reduce cash available for distribution** to shareholders[127](index=127&type=chunk)[128](index=128&type=chunk) [Unresolved Staff Comments](index=26&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[141](index=141&type=chunk) [Properties](index=27&type=section&id=Item%202.%20Properties) As of December 31, 2022, the company's portfolio comprised 183 operating retail properties and three development projects, featuring geographic and tenant diversification, with **9.3%** of retail ABR expiring in 2023 Geographic Diversity by % of Weighted Retail ABR (Top 5 States) | State | % of Weighted Retail ABR | | :--- | :--- | | Texas | 25.7% | | Florida | 10.9% | | Maryland | 6.8% | | New York | 6.0% | | Washington | 5.4% | Top 5 Tenants by % of Weighted ABR | Tenant | % of Weighted ABR | | :--- | :--- | | The TJX Companies, Inc. | 2.5% | | Best Buy Co., Inc. | 1.9% | | Ross Stores, Inc. | 1.8% | | PetSmart, Inc. | 1.8% | | Gap Inc. | 1.4% | - The company has **three active development projects** under construction: The Landing at Tradition - Phase II (FL), Carillon MOB (DC/Baltimore), and The Corner (IN), with a total estimated remaining NOI of **$4.2 million - $5.1 million** to come online[146](index=146&type=chunk) - In 2023, leases representing **9.3% of total retail Annualized Base Rent (ABR)** are scheduled to expire[152](index=152&type=chunk) - During 2022, the company executed **782** new and renewal leases totaling **4.9 million** square feet, achieving a blended cash leasing spread of **12.6%** on comparable leases[154](index=154&type=chunk) [Legal Proceedings](index=30&type=section&id=Item%203.%20Legal%20Proceedings) The company is not subject to any material litigation, and existing routine legal matters are not expected to have a material adverse impact - The company is **not subject to any material litigation** and does **not expect current routine litigation to have a material adverse impact** on its financial condition or results[155](index=155&type=chunk) [Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[156](index=156&type=chunk) PART II [Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=31&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common shares trade on the NYSE under 'KRG', with a **$300 million** share repurchase program in place, and **18,521** shares repurchased in Q4 2022 for employee tax obligations - The company's common shares are traded on the **New York Stock Exchange (NYSE)** under the ticker symbol **'KRG'**[159](index=159&type=chunk) - For the taxable year ended December 31, 2022, approximately **86.1%** of distributions were taxable ordinary income dividends and **13.9%** were taxable capital gains dividends[162](index=162&type=chunk) - The company has a Share Repurchase Program, increased to **$300 million** in April 2022 and extended through **February 2024**, with no shares repurchased under this specific program during the quarter[166](index=166&type=chunk) Share Repurchases (Q4 2022) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 2022 | — | $ — | | Nov 2022 | 18,521 | $21.11 | | Dec 2022 | — | $ — | | **Total** | **18,521** | **$21.11** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company's 2022 financial results show significant revenue growth to **$802.0 million** and improved net loss due to the RPAI merger, with **5.1%** Same Property NOI growth and **$1.2 billion** in liquidity Comparison of Operating Results (Years Ended Dec 31) | (in thousands) | 2022 | 2021 | | :--- | :--- | :--- | | **Total revenue** | **$801,996** | **$373,324** | | Rental income | $782,349 | $367,399 | | **Total expenses** | **$737,396** | **$426,057** | | Merger and acquisition costs | $925 | $86,522 | | Depreciation and amortization | $469,805 | $200,460 | | **Operating income (loss)** | **$91,669** | **($21,524)** | | Interest expense | ($104,276) | ($60,447) | | **Net loss attributable to common shareholders** | **($12,636)** | **($80,806)** | - The **significant increase in revenue and expenses** in 2022 compared to 2021 is primarily due to the full-year impact of the **100** operating properties acquired in the **merger with RPAI**, which closed on October 22, 2021[185](index=185&type=chunk)[192](index=192&type=chunk) Non-GAAP Performance Measures (Year Ended Dec 31, 2022) | Metric | Value | | :--- | :--- | | Same Property NOI Growth | 5.1% | | FFO of the Operating Partnership | $431.2 million | | FFO, as adjusted, of the Operating Partnership | $429.6 million | | Net Debt to Adjusted EBITDA | 5.2x | - The company enhanced its liquidity in 2022 by increasing its unsecured revolving credit facility to **$1.1 billion** and entering into a new seven-year **$300.0 million** unsecured term loan, with total liquidity approximately **$1.2 billion** as of year-end[182](index=182&type=chunk)[220](index=220&type=chunk) - As of December 31, 2022, the company had **$284.4 million of debt maturing in 2023**, which it expects to repay using cash on hand and its revolving credit facility[221](index=221&type=chunk)[230](index=230&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=50&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate exposure on its **$3.0 billion** consolidated indebtedness, with **94%** effectively fixed-rate, and a **100-basis point** rate increase impacting cash flow by **$1.8 million** - The company's main market risk exposure is from changes in **interest rates** on its **variable-rate debt**[269](index=269&type=chunk) - As of December 31, 2022, total consolidated indebtedness was **$3.0 billion**, with **94% ($2.8 billion)** of the debt fixed-rate and **6% ($183.3 million)** variable-rate after accounting for interest rate hedges[270](index=270&type=chunk) - A hypothetical **100-basis point** increase in interest rates on the company's unhedged variable-rate debt would decrease future annual cash flows by approximately **$1.8 million**[271](index=271&type=chunk) [Financial Statements and Supplementary Data](index=50&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section refers to the consolidated financial statements of the company, which are listed in Part IV, Item 15(a) of the report - This item indicates that the company's **consolidated financial statements** are included in **Part IV, Item 15(a)** of the **Form 10-K**[272](index=272&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=50&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[273](index=273&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of December 31, 2022, with no material changes to internal control over financial reporting, and KPMG LLP issued an unqualified opinion - Management concluded that the disclosure controls and procedures for both Kite Realty Group Trust and Kite Realty Group, L.P. were **effective** as of December 31, 2022[274](index=274&type=chunk)[278](index=278&type=chunk) - There were **no changes to internal control over financial reporting** during the fourth quarter of 2022 that materially affected, or are reasonably likely to materially affect, internal controls[275](index=275&type=chunk)[279](index=279&type=chunk) - Management's report on internal control over financial reporting concluded that controls were **effective**, and this assessment was attested to by the independent registered public accounting firm, **KPMG LLP**[276](index=276&type=chunk)[280](index=280&type=chunk) [Other Information](index=54&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[299](index=299&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=54&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[300](index=300&type=chunk) PART III [Directors, Executive Officers, Corporate Governance, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=54&type=section&id=Items%2010-14) Information for Items 10 through 14, covering directors, executive officers, corporate governance, executive compensation, security ownership, and principal accountant fees, is incorporated by reference from the company's 2023 Annual Meeting Proxy Statement - Information for Item 10 (Directors, Executive Officers and Corporate Governance) is **incorporated by reference** from the **2023 Annual Meeting Proxy Statement**[302](index=302&type=chunk) - Information for Item 11 (Executive Compensation) is **incorporated by reference** from the **Proxy Statement**[303](index=303&type=chunk) - Information for Items 12, 13, and 14 (Security Ownership, Certain Relationships, and Principal Accountant Fees) is **incorporated by reference** from the **Proxy Statement**[304](index=304&type=chunk)[305](index=305&type=chunk)[306](index=306&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=55&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides a comprehensive index of all documents filed as part of the Form 10-K report, including consolidated financial statements, schedules, and various exhibits - This item lists all **financial statements, schedules, and exhibits** filed as part of the **Form 10-K report**[309](index=309&type=chunk) [Form 10-K Summary](index=62&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable - Not applicable[320](index=320&type=chunk)

Kite Realty Group Trust (NYSE:KRG) Q4 2022 Earnings Conference Call February 14, 2023 1:00 PM ET Company Participants Bryan McCarthy - Senior Vice President, Corporate Marketing and Communications John Kite - Chairman and Chief Executive Officer Tom McGowan - President and Chief Operating Officer Heath Fear - Executive Vice President and Chief Financial Officer Dave Buell - Senior Vice President and Chief Accounting Officer Tyler Henshaw - Senior Vice President, Capital Markets and Investor Relations Confer ...

TRIANGULATING VALUE KRG 4Q 2022 NAV Page Cap Rate: 5.75% - 6.75% NAV: $25 - $32 Cap Rate: 6.7% NAV: $26.70 Analyst Consensus Stock Price at Peer Average FFO Multiple: $26.03 Implied Cap Rate: 6.6% KITE REALTY GROUP POTENTIAL NAV | --- | --- | --- | |---------------------------------------|-------------------------------------------------------|---------------------------| | | NAV COMPONENTS AS OF 4Q'22 \nIN-PLACE NAV COMPONENTS | POTENTIAL NAV COMPONENTS | | Annualized Portfolio Cash NOI | $586M | $609M | | ...