Kite Realty Group Reports Fourth Quarter and Full Year 2024 Operating Results and Provides 2025 Guidance

Core Insights - Kite Realty Group Trust reported a significant increase in net income attributable to common shareholders for Q4 2024, reaching $21.8 million or $0.10 per diluted share, compared to $8.0 million or $0.04 per diluted share in Q4 2023 [1] - For the full year 2024, net income attributable to common shareholders was $4.1 million or $0.02 per diluted share, a decrease from $47.5 million or $0.22 per diluted share in 2023, primarily due to a $66.2 million impairment charge [1][5] - The company achieved all-time high leasing volumes in 2024, with a leased percentage of 95.0% at year-end, reflecting a 110-basis point increase year-over-year [2][5] Financial Performance - The company generated NAREIT FFO of $119.5 million or $0.53 per diluted share for Q4 2024, and $463.7 million or $2.07 per diluted share for the full year, representing a 2.0% year-over-year increase [5][24] - Core FFO for Q4 2024 was $115.8 million or $0.52 per diluted share, and for the full year, it was $443.9 million or $1.99 per diluted share, marking a 4.7% year-over-year increase [5][24] - Same Property NOI increased by 4.8% in Q4 2024 and 3.0% for the full year [2][5] Leasing and Portfolio Management - The company executed approximately 720 new and renewal leases representing about 5.0 million square feet in 2024, with comparable cash leasing spreads of 12.8% [2][5] - The annualized base rent (ABR) per square foot increased to $21.15, a 2.2% increase year-over-year [2][5] - The company executed 22 new anchor leases at a blended comparable cash leasing spread of 36.7%, increasing the percentage of ABR from grocery-anchored properties to 80.0% [5] Capital Allocation and Balance Sheet - The company acquired Village Commons, a Publix-anchored center, for $68.4 million subsequent to the quarter-end [6] - As of December 31, 2024, the net debt to Adjusted EBITDA ratio was 4.7x, indicating a strong balance sheet [11][39] - The company closed on an amended $1.1 billion unsecured revolving credit facility, extending the term to October 3, 2028, with improved pricing conditions [11] Dividend and Outlook - The Board of Trustees declared a first quarter 2025 dividend of $0.27 per common share, representing an 8.0% year-over-year increase [8] - The company expects to generate net income attributable to common shareholders of $0.45 to $0.51 per diluted share in 2025, with NAREIT FFO projected between $2.02 and $2.08 per diluted share [9]