Kite Realty Trust(KRG)2024-02-20 21:16Portfolio 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 21.0 million or 2.6% compared to 47.5 million, a substantial increase of 12.6 million in 2022 [201]. - FFO attributable to common shareholders rose to 425,845 in 2022, with FFO per share increasing to 1.94 [224]. - Same Property NOI increased by 4.8% in 2023 to 530,021 in 2022, driven by contractual rent growth and lower bad debt expense [219]. - Total property NOI for 2023 was 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 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 1.3 million, or 2.3%, mainly due to higher transportation expenses and consulting fees [207]. - Capital expenditures decreased by 1.1 billion of combined cash and borrowing capacity on the Revolving Facility [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 28.1 million for active development and redevelopment projects and 81.7 million for the year ended December 31, 2023, compared to 213.5 million in 2023, compared to 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].