0001286043-17-000102.txt : 20171026 0001286043-17-000102.hdr.sgml : 20171026 20171026161554 ACCESSION NUMBER: 0001286043-17-000102 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20171026 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20171026 DATE AS OF CHANGE: 20171026 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KITE REALTY GROUP TRUST CENTRAL INDEX KEY: 0001286043 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 113715772 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32268 FILM NUMBER: 171156481 BUSINESS ADDRESS: STREET 1: 30 S MERIDIAN STREET STREET 2: SUITE 1100 CITY: INDIANAPOLIS STATE: IN ZIP: 46204 BUSINESS PHONE: 3175775600 MAIL ADDRESS: STREET 1: 30 S MERIDIAN STREET STREET 2: SUITE 1100 CITY: INDIANAPOLIS STATE: IN ZIP: 46204 8-K 1 form8k_q32017.htm FORM 8-K Q3 2017 Document


 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): October 26, 2017
 
KITE REALTY GROUP TRUST
(Exact name of registrant as specified in its charter)
 
Maryland
1-32268
11-3715772
(State or other jurisdiction
(Commission
(IRS Employer
of incorporation)
File Number)
Identification Number)
 
 
 
30 S. Meridian Street
Suite 1100
Indianapolis, IN 46204
(Address of principal executive offices) (Zip Code)
 
 
(317) 577-5600
(Registrant’s telephone number, including area code)
 
 
Not applicable
(Former name or former address, if changed since last report)
      
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o






Item 2.02. Results of Operations and Financial Condition.
 
On October 26, 2017, Kite Realty Group Trust (the “Company”) announced its consolidated financial results for the quarter ended September 30, 2017. A copy of the Company’s press release is furnished as Exhibit 99.1 to this current report on Form 8-K. A copy of the Company’s Third Quarter 2017 Supplemental Disclosure is furnished as Exhibit 99.2 to this current report on Form 8-K. The information contained in Item 2.02 of this current report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.
 
Item 9.01. Financial Statements and Exhibits.
 
(a) Not applicable.

(b) Not applicable.

(c) Not applicable.

(d) Exhibits.
 
Exhibit No.
 
Description
99.1
 
Kite Realty Group Trust Press Release dated October 26, 2017
99.2
 
Kite Realty Group Trust Third Quarter 2017 Supplemental Disclosure























SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
KITE REALTY GROUP TRUST
 
 
Date: October 26, 2017
By:
/s/ Daniel R. Sink
 
 
Daniel R. Sink
 
 
Executive Vice President and
 
 
Chief Financial Officer































EXHIBIT INDEX



EX-99.1 2 exhibit99_1xq32017.htm EXHIBIT 99.1 EARNINGS RELEASE Exhibit


 
Exhibit 99.1

pressrellogo10.jpg


PRESS RELEASE

Contact Information: 
Dan Sink
EVP & CFO
(317) 577-5609 
dsink@kiterealty.com


Kite Realty Group Trust Reports Third Quarter 2017 Operating Results

Indianapolis, Ind., October 26, 2017 - Kite Realty Group Trust (NYSE: KRG) (the “Company”) announced today its operating results for the third quarter ended September 30, 2017. Financial statements, exhibits, and reconciliations of non-GAAP measures attached to this release include the details of the Company’s results.
Third Quarter Highlights
Net loss attributable to common shareholders was $0.6 million, or $0.01 per diluted common share.
Funds From Operations of the Operating Partnership (“FFO”), as defined by NAREIT, was $41.8 million, or $0.49 per diluted share.
Same-Property Net Operating Income (“NOI”) increased 3.6% for the comparable operating portfolio, or 3.9% excluding the impact of the Company’s Redevelopment, Repurpose and Reposition (“3-R”) initiative, in each case compared to the same period in the prior year.
Small shop leased percentage increased 100 basis points to 89.7% from the same period in the prior year.
The aggregate rent spread on comparable new and renewal leases was 11.1% on a cash basis and 17.0% on a GAAP basis.
Construction commenced on Phase II of Eddy Street Commons at the University of Notre Dame.

“Our portfolio and operating results continue to be strong, as evidenced by another excellent quarter,” said John Kite, Chief Executive Officer. “We remain committed to our long-term strategic goals, which we are demonstrating by continuing to execute on high-quality projects in our 3-R initiative, driving strong same-store results, and increasing small shop leasing, which increased by another 100 basis points compared to last year to reach 89.7%.”

Financial & Portfolio Results
Financial Results
Net loss attributable to common shareholders for the three months ended September 30, 2017, was $0.6 million, compared to a net loss of $1.7 million for the same period in 2016.

1


For the three months ended September 30, 2017, FFO, as defined by NAREIT, was $41.8 million, or $0.49 per diluted share, compared to $43.6 million, or $0.51 per diluted share, for the same period in the prior year. For the three months ended September 30, 2017, FFO, as adjusted, was $41.8 million, or $0.49 per diluted share, compared to $44.7 million, or $0.52 per diluted share, for the same period in the prior year. The year-over-year decline in FFO was primarily due to the sale of four operating properties and the use of the resulting proceeds to pay down debt.
Portfolio Operations
As of September 30, 2017, the Company owned interests in 117 operating and redevelopment properties totaling approximately 23.1 million square feet and two development projects currently under construction. The owned gross leasable area in the Company’s retail operating portfolio was 94.5% leased as of September 30, 2017, and the Company’s total portfolio was 94.6% leased. We continue to increase our small-shop leased percentage, and hit a new high of 89.7% leased in the third quarter, an increase of 100 basis points year over year.
Same-property NOI, which includes 104 operating properties, increased 3.6% in the third quarter compared to the same period in the prior year, or 3.9% excluding the impact of the Company’s 3-R initiative. The leased percentage of properties included in the same-property pool was 94.4% at September 30, 2017, compared to 95.1% at September 30, 2016, while the economic occupancy percentage increased to 93.5% from 92.8% year over year.
The Company executed 86 leases totaling 432,814 square feet during the third quarter of 2017, including 65 comparable new and renewal leases for 384,816 square feet. Cash rent spreads on comparable new and renewal leases executed in the quarter were 18.9% and 9.7%, respectively, for a blended cash rent spread of 11.1%. The blended leasing spread on a straight-line basis, which includes periodic contractual rent increases over the term of the lease, was 17.0%.
The majority of the 35 tenants opening for business in the third quarter were in the food, fitness, entertainment, and service sectors. Openings this quarter included a new Publix Supermarket at Burnt Store Promenade (one of our 3-R projects), Ulta Salon, Pet Supermarket, Tuesday Morning, and Le Creuset.
Development and Redevelopment
As of September 30, 2017, we had two development projects under construction. The expansion of Phase II of Holly Springs is 100% pre-leased or committed, with projected costs of $2.7 million. Phase II of Eddy Street Commons is a mixed-use development at the University of Notre Dame that will include a retail component, apartments, townhomes, and a community center. The total projected costs for the project are currently $89.2 million. We are in the final stages of entering into a ground sublease with a multi-family developer who will fund the majority of these costs, leaving our share of the projected costs at $8.5 million. The Company has also begun construction of a full-service hotel in Phase I of Eddy Street Commons, which we project will cost $46.0 million to construct. We are in the final stages of negotiating to form and retain a minority interest in an unconsolidated joint venture that will complete and own this hotel. Funding for both Eddy Street Commons projects will include a total of $22.1 million in net tax increment financing proceeds.
The Company’s 3-R program currently includes eight projects under various stages of construction, with estimated combined costs ranging from $72.5 to $79.0 million and an estimated combined annualized return ranging from 8.0% to 9.0%. During the quarter, the Company commenced construction on one new project at Centennial Center (Las Vegas, NV).

2


2017 Earnings Guidance
The Company is updating its guidance for 2017 FFO, as defined by NAREIT, to a range of $2.03 to $2.05 from $2.01 to $2.05 per diluted share. Please refer to the full list of guidance assumptions on page 38 of the Company’s third quarter supplemental.
Guidance Range For Full Year 2017
Low
High
Consolidated net income per diluted common share 
$
0.16

$
0.18

Add: Depreciation, amortization and other
1.96

1.96

Less: Gain on sale of operating property
(0.18
)
(0.18
)
Add: Impairment of operating property
0.09

0.09

FFO, as defined by NAREIT, per diluted share
$
2.03

$
2.05

Earnings Conference Call

The Company will conduct a conference call to discuss its financial results on Friday, October 27, 2017, at 11:00 a.m. Eastern Time. A live webcast of the conference call will be available online on the Company’s corporate website at www.kiterealty.com. The dial-in numbers are (844) 309-0605 for domestic callers and (574) 990-9933 for international callers (passcode 93988642). In addition, a webcast replay link will be available on the corporate website.
About Kite Realty Group Trust

Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust (REIT) engaged primarily in the ownership and operation, acquisition, development and redevelopment of high-quality neighborhood and community shopping centers in select markets in the United States. As of September 30, 2017, we owned interests in 117 operating and redevelopment properties totaling approximately 23.1 million square feet and two development projects currently under construction.
Our strategy is to maximize the cash flow of our operating properties, successfully complete the construction and lease-up of our redevelopment and development portfolio, and identify additional opportunities to acquire or dispose of properties to further strengthen the Company. New investments are focused in the shopping center sector primarily in markets where we believe we can leverage our existing infrastructure and relationships to generate attractive risk-adjusted returns or otherwise in desirable trade areas. Dispositions are generally designed to increase the quality of our portfolio and to strengthen the Company’s balance sheet.
Safe Harbor

Certain statements in this document that are not historical fact may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, performance, transactions or achievements, financial or otherwise, may differ materially from the results, performance, transactions or achievements, financial or otherwise, expressed or implied by the forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include, but are not limited to: national and local economic, business, real estate and other market conditions, particularly in light of low growth in the U.S. economy as well as economic uncertainty caused by fluctuations in the prices of oil and other energy sources; financing risks, including the availability of, and costs associated with, sources of liquidity; the Company’s ability to refinance, or extend the maturity dates of, its indebtedness;

3


the level and volatility of interest rates; the financial stability of tenants, including their ability to pay rent and the risk of tenant bankruptcies; the competitive environment in which the Company operates; acquisition, disposition, development and joint venture risks; property ownership and management risks; the Company’s ability to maintain its status as a real estate investment trust for federal income tax purposes; potential environmental and other liabilities; impairment in the value of real estate property the Company owns; the impact of online retail and the perception that such retail has on the value of shopping center assets; risks related to the geographical concentration of the Company’s properties in Florida, Indiana and Texas; insurance costs and coverage; risks associated with cybersecurity attacks and the loss of confidential information and other business interruptions; and other factors affecting the real estate industry generally. The Company refers you to the documents filed by the Company from time to time with the SEC, specifically the section titled “Risk Factors” in the Company’s and the Operating Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, which discuss these and other factors that could adversely affect the Company’s results. The Company undertakes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.


4


Kite Realty Group Trust
Consolidated Balance Sheets
(Unaudited)

($ in thousands)
 
 
 
 
 
 
September 30,
2017
 
December 31,
2016
Assets:
 
 
 
 
Investment properties, at cost
 
$
3,955,928

 
$
3,996,065

Less: accumulated depreciation
 
(635,583
)
 
(560,683
)
 
 
3,320,345

 
3,435,382

 
 
 
 
 
Cash and cash equivalents
 
32,465

 
19,874

Tenant and other receivables, including accrued straight-line rent of $30,956 and $28,703 respectively, net of allowance for uncollectible accounts
 
53,271

 
53,087

Restricted cash and escrow deposits
 
8,878

 
9,037

Deferred costs and intangibles, net
 
115,623

 
129,264

Prepaid and other assets
 
12,810

 
9,727

Total Assets
 
$
3,543,392

 
$
3,656,371

Liabilities and Shareholders’ Equity:
 
 
 
 

Mortgage and other indebtedness, net
 
$
1,681,676

 
$
1,731,074

Accounts payable and accrued expenses
 
101,574

 
80,664

Deferred revenue and other liabilities
 
101,066

 
112,202

Total Liabilities
 
1,884,316

 
1,923,940

Commitments and contingencies
 
 
 
 

Limited Partners’ interests in the Operating Partnership and other redeemable noncontrolling interests
 
73,454

 
88,165

Shareholders’ Equity:
 
 
 
 

Kite Realty Group Trust Shareholders’ Equity:
 
 
 
 

Common Shares, $.01 par value, 225,000,000 shares authorized, 83,594,068 and 83,545,398 shares issued and outstanding at September 30, 2017 and
December 31, 2016, respectively
 
836

 
835

Additional paid in capital
 
2,068,636

 
2,062,360

Accumulated other comprehensive loss
 
1,050

 
(316
)
Accumulated deficit
 
(485,598
)
 
(419,305
)
Total Kite Realty Group Trust Shareholders’ Equity
 
1,584,924

 
1,643,574

Noncontrolling Interests
 
698

 
692

Total Equity
 
1,585,622

 
1,644,266

Total Liabilities and Shareholders' Equity
 
$
3,543,392

 
$
3,656,371



5


Kite Realty Group Trust
Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2017 and 2016
(Unaudited)

($ in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Revenue:
 
 
 
 
 
 
 
 
  Minimum rent
 
$
67,585

 
$
69,518

 
$
204,926

 
$
205,436

  Tenant reimbursements
 
17,657

 
17,531

 
54,748

 
52,691

  Other property related revenue
 
1,896

 
2,073

 
10,226

 
7,120

Total revenue
 
87,138

 
89,122

 
269,900

 
265,247

Expenses:
 
 
 
 
 
 

 
 

  Property operating
 
11,859

 
11,916

 
36,950

 
35,454

  Real estate taxes
 
10,826

 
10,690

 
32,384

 
32,327

  General, administrative, and other
 
5,431

 
5,081

 
16,389

 
15,228

  Transaction costs
 

 

 

 
2,771

  Impairment charge
 

 

 
7,411

 

  Depreciation and amortization
 
42,793

 
45,543

 
131,333

 
131,625

Total expenses
 
70,909

 
73,230

 
224,467

 
217,405

Operating income
 
16,229

 
15,892

 
45,433

 
47,842

  Interest expense
 
(16,372
)
 
(17,139
)
 
(49,250
)
 
(47,964
)
  Income tax benefit (expense) of taxable REIT subsidiary
 
33

 
(15
)
 
64

 
(763
)
  Other expense, net
 
(94
)
 

 
(314
)
 
(94
)
Loss from continuing operations
 
(204
)
 
(1,262
)
 
(4,067
)
 
(979
)
  Gains on sales of operating properties
 

 

 
15,160

 
194

Net (loss) income
 
(204
)
 
(1,262
)
 
11,093

 
(785
)
  Net income attributable to noncontrolling interests
 
(418
)
 
(420
)
 
(1,528
)
 
(1,391
)
Net (loss) income attributable to Kite Realty Group Trust common shareholders
 
$
(622
)
 
$
(1,682
)
 
$
9,565

 
$
(2,176
)
 
 
 
 
 
 
 
 
 
(Loss) income per common share - basic
 
$
(0.01
)
 
(0.02
)
 
0.11

 
(0.03
)
(Loss) income per common share - diluted
 
$
(0.01
)
 
$
(0.02
)
 
$
0.11

 
$
(0.03
)
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - basic
 
83,594,163

 
83,474,348

 
83,581,847

 
83,399,813

Weighted average common shares outstanding - diluted
 
83,594,163

 
83,474,348

 
83,689,590

 
83,399,813

Cash dividends declared per common share
 
$
0.3025

 
$
0.2875

 
$
0.9075

 
$
0.8625

 
 
 
 
 
 
 
 
 

6


Kite Realty Group Trust
Funds From Operations
For the Three and Nine Months Ended September 30, 2017 and 2016
(Unaudited)
($ in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Funds From Operations
 
 
 
 
 
 
 
 
Consolidated net (loss) income
 
$
(204
)
 
$
(1,262
)
 
$
11,093

 
$
(785
)
Less: net income attributable to noncontrolling interests in properties
 
(432
)
 
(461
)
 
(1,302
)
 
(1,383
)
Less: gains on sales of operating properties
 

 

 
(15,160
)
 
(194
)
Add: impairment charge
 

 

 
7,411

 

Add: depreciation and amortization of consolidated entities, net of noncontrolling interests
 
42,474

 
45,310

 
129,890

 
130,909

   FFO of the Operating Partnership1
 
41,838

 
43,587

 
131,932

 
128,547

Less: Limited Partners' interests in FFO
 
(949
)
 
(918
)
 
(2,995
)
 
(2,708
)
   FFO attributable to Kite Realty Group Trust common shareholders1
 
$
40,889

 
$
42,669

 
$
128,937

 
$
125,839

FFO, as defined by NAREIT, per share of the Operating Partnership - basic
 
$
0.49

 
$
0.51

 
$
1.54

 
$
1.51

FFO, as defined by NAREIT, per share of the Operating Partnership - diluted
 
$
0.49

 
$
0.51

 
$
1.54

 
$
1.50

 
 
 
 
 
 
 
 
 
FFO of the Operating Partnership1
 
$
41,838

 
$
43,587

 
$
131,932

 
$
128,547

Add: accelerated amortization of debt issuance costs (non-cash)
 

 
1,121

 

 
1,121

Add: transaction costs
 

 

 

 
2,771

Add: severance charge
 

 

 

 
500

FFO, as adjusted, of the Operating Partnership
 
$
41,838

 
$
44,708

 
$
131,932

 
$
132,939

FFO, as adjusted, per share of the Operating Partnership - basic
 
$
0.49

 
$
0.52

 
$
1.54

 
$
1.56

FFO, as adjusted, per share of the Operating Partnership - diluted
 
$
0.49

 
$
0.52

 
$
1.54

 
$
1.56

 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - basic
 
83,594,163

 
83,474,348

 
83,581,847

 
83,399,813

Weighted average common shares outstanding - diluted
 
83,708,719

 
83,565,227

 
83,689,590

 
83,488,618

Weighted average common shares and units outstanding - basic
 
85,580,993

 
85,417,753

 
85,561,343

 
85,336,859

Weighted average common shares and units outstanding - diluted
 
85,695,549

 
85,580,632

 
85,669,087

 
85,425,664

 
 
 
 
 
 
 
 
 
FFO, as defined by NAREIT, per diluted share
 
 
 
 
 
 
 
 
Consolidated net (loss) income
 
$

 
$
(0.01
)
 
$
0.13

 
$
(0.01
)
Less: net income attributable to noncontrolling interests in properties
 
(0.01
)
 
(0.01
)
 
(0.02
)
 
(0.02
)
Less: gains on sales of operating properties
 

 

 
(0.18
)
 

Add: impairment charge
 

 

 
0.09

 

Add: depreciation and amortization of consolidated entities, net of noncontrolling interests
 
0.50

 
0.53

 
1.52

 
1.53

FFO, as defined by NAREIT, of the Operating Partnership per diluted share1
 
$
0.49

 
$
0.51

 
$
1.54

 
$
1.50

 
 
 
 
 
 
 
 
 
Add: accelerated amortization of debt issuance costs
 

 
0.01

 

 
0.01

Add: transaction costs
 

 

 

 
0.04

Add: severance charge
 

 

 

 
0.01

FFO, as adjusted, of the Operating Partnership per diluted share
 
$
0.49

 
$
0.52

 
$
1.54

 
$
1.56

____________________
1
“FFO of the Operating Partnership" measures 100% of the operating performance of the Operating Partnership’s real estate properties. “FFO attributable to Kite Realty Group Trust common shareholders” reflects a reduction for the redeemable noncontrolling weighted average diluted interest in the Operating Partnership.
Funds from Operations (FFO) is a widely used performance measure for real estate companies and is provided here as a supplemental measure of operating performance. The Company calculates FFO, a non-GAAP financial measure, in accordance with the best practices described in the April 2002 National Policy Bulletin of the National Association of Real Estate Investment Trusts ("NAREIT"). The NAREIT white paper defines FFO as net income (determined in accordance with GAAP), excluding gains (or losses) from sales and impairments of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.  
Considering the nature of our business as a real estate owner and operator, the Company believes that FFO is helpful to investors in measuring our operational performance because it excludes various items included in net income that do not relate to or are not indicative of our operating performance, such as gains or losses from sales of depreciated property and depreciation and amortization, which can make periodic and peer analyses of operating performance more difficult. For informational purposes, the Company has also provided FFO adjusted for accelerated amortization of debt issuance costs, transaction costs and a severance charge in 2016. The Company believes this supplemental information provides a meaningful measure of our operating performance. The Company believes our presentation of FFO, as adjusted, provides investors with another financial measure that may facilitate comparison of operating performance between periods and among our peer companies. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of our financial performance, is not an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, and is not indicative of funds available to satisfy our cash needs, including our ability to make distributions. Our computation of FFO may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do.

7


Kite Realty Group Trust
Same Property Net Operating Income
For the Three and Nine Months Ended September 30, 2017 and 2016
(Unaudited)
($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
% Change
 
2017
 
2016
 
% Change
Number of properties for the quarter
104

 
104

 
 
 


 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leased percentage at period end
94.4
%
 
95.1
%
 
 
 
94.4
%
 
95.1
%
 
 
Economic Occupancy percentage2
93.5
%
 
92.8
%
 
 
 
93.7
%
 
92.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum rent
$
58,806

 
$
56,997

 
 
 
$
175,615

 
$
170,713

 
 
Tenant recoveries 
16,014

 
15,320

 
 
 
49,073

 
46,961

 
 
Other income
385

 
457

 
 
 
839

 
721

 
 
 
75,205

 
72,774

 
 
 
225,527

 
218,395

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating expenses 
(10,136
)
 
(10,041
)
 
 
 
(29,883
)
 
(28,956
)
 
 
Real estate taxes 
(9,820
)
 
(9,413
)
 
 
 
(29,808
)
 
(28,923
)
 
 
 
(19,956
)
 
(19,454
)
 
 
 
(59,691
)
 
(57,879
)
 
 
Same Property NOI3
$
55,249

 
$
53,320

 
3.6%
 
$
165,836

 
$
160,516

 
3.3%
Same Property NOI - excluding the impact of the 3-R initiative4
 
 
 
 
3.9%
 
 
 
 
 
3.9%
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Same Property NOI to Most Directly Comparable GAAP Measure: 
 
 
 
 
 
 
 
 
 
 
 
Net operating income - same properties
$
55,249

 
$
53,320

 
 
 
$
165,836

 
$
160,516

 
 
Net operating income - non-same activity5
9,614

 
13,561

 
 
 
36,611

 
38,191

 
 
Provision for bad debts - same properties
(410
)
 
(365
)
 
 
 
(1,881
)
 
(1,241
)
 
 
Other expense, net
(61
)
 
(15
)
 
 
 
(250
)
 
(857
)
 
 
General, administrative and other
(5,431
)
 
(5,081
)
 
 
 
(16,389
)
 
(15,228
)
 
 
Transaction costs

 

 
 
 

 
(2,771
)
 
 
Impairment charge

 

 
 
 
(7,411
)
 

 
 
Depreciation and amortization expense
(42,793
)
 
(45,543
)
 
 
 
(131,333
)
 
(131,625
)
 
 
Interest expense
(16,372
)
 
(17,139
)
 
 
 
(49,250
)
 
(47,964
)
 
 
Gains on sales of operating properties

 

 
 
 
15,160

 
194

 
 
Net income attributable to noncontrolling interests
(418
)
 
(420
)
 
 
 
(1,528
)
 
(1,391
)
 
 
Net (loss) income attributable to common shareholders
$
(622
)
 
$
(1,682
)
 
 
 
$
9,565

 
$
(2,176
)
 
 
____________________
1
Same Property NOI excludes eight properties in redevelopment, the recently completed Northdale Promenade redevelopment as well as office properties (Thirty South Meridian and Eddy Street Commons).
2
Excludes leases that are signed but for which tenants have not yet commenced the payment of cash rent. Calculated as a weighted average based on the timing of cash rent commencement and expiration during the period.
3
Same Property NOI excludes net gains from outlot sales, straight-line rent revenue, bad debt expense and recoveries, lease termination fees, amortization of lease intangibles and significant prior period expense recoveries and adjustments, if any.
4
See pages 27 and 28 of Q3 2017 supplemental for further detail of the properties included in the 3-R initiative.
5
Includes non-cash activity across the portfolio as well as net operating income from properties not included in the same property pool.
The Company uses same property NOI ("Same Property NOI"), a non-GAAP financial measure, to evaluate the performance of our properties. Same Property NOI excludes properties that have not been owned for the full period presented. It also excludes net gains from outlot sales, straight-line rent revenue, bad debt expense and recoveries, lease termination fees, amortization of lease intangibles and significant prior period expense recoveries and adjustments, if any. The Company believes that Same Property NOI is helpful to investors as a measure of our operating performance because it includes only the NOI of properties that have been owned for the full period presented, which eliminates disparities in net income due to the acquisition or disposition of properties during the particular period presented and thus provides a more consistent metric for the comparison of our properties. The year to date results represent the sum of the individual quarters, as reported.
NOI and Same Property NOI should not, however, be considered as alternatives to net income (calculated in accordance with GAAP) as indicators of our financial performance. Our computation of NOI and Same Property NOI may differ from the methodology used by other REITs, and therefore may not be comparable to such other REITs.
When evaluating the properties that are included in the same property pool, the Company has established specific criteria for determining the inclusion of properties acquired or those recently under development. An acquired property is included in the same property pool when there is a full quarter of operations in both years subsequent to the acquisition date. Development and redevelopment properties are included in the same property pool four full quarters after the properties have been transferred to the operating portfolio. A redevelopment property is first excluded from the same property pool when the execution of a redevelopment plan is likely and the Company begins recapturing space from tenants. For the quarter ended September 30, 2017, the Company excluded eight redevelopment properties and the recently completed Northdale Promenade redevelopment from the same property pool that met these criteria and were owned in both comparable periods.

8
EX-99.2 3 exhibit99_2xq32017.htm EXHIBIT 99.2 Q3 2017 SUPPLEMENTAL Exhibit
 
 
Exhibit 99.2

q32017quarterlysupplemental.jpg



QUARTERLY FINANCIAL SUPPLEMENTAL – SEPTEMBER 30, 2017
image44.jpg


 
PAGE NO.
 
TABLE OF CONTENTS
 
 
 
3
 
Corporate Profile 
4
 
Contact Information 
5
 
Important Notes Including Non-GAAP Disclosures
7
 
Consolidated Balance Sheets 
8
 
Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2017
9
 
Funds from Operations for the Three and Nine Months Ended September 30, 2017
10
 
Adjusted Funds From Operations and Other Financial Information for the Three and Nine Months Ended September 30, 2017
11
 
Market Capitalization as of September 30, 2017
11
 
Ratio of Debt to Total Undepreciated Assets as of September 30, 2017
11
 
Ratio of Company Share of Net Debt to EBITDA as of September 30, 2017
12
 
Same Property Net Operating Income for the Three and Nine Months Ended September 30, 2017
13
 
Net Operating Income by Quarter 
14
 
Consolidated Joint Venture Summary as of September 30, 2017
15
 
Summary of Outstanding Debt as of September 30, 2017
16
 
Maturity Schedule of Outstanding Debt as of September 30, 2017
18
 
Unsecured Public Debt Covenants
19
 
Top 10 Retail Tenants by Total Gross Leasable Area 
20
 
Top 25 Tenants by Annualized Base Rent 
21
 
Retail Leasing Spreads
22
 
Lease Expirations – Operating Portfolio 
23
 
Lease Expirations – Retail Anchor Tenants 
24
 
Lease Expirations – Retail Shops 
25
 
Lease Expirations – Office Tenants and Other
26
 
Development Projects Under Construction
27
 
Under Construction Redevelopment, Reposition, and Repurpose Projects
28
 
Redevelopment, Reposition, and Repurpose Opportunities
29
 
2017 Property Dispositions
30
 
Geographic Diversification – Annualized Base Rent by Region and State
31
 
Operating Retail Portfolio Summary Report
36
 
Operating Office Properties and Other
37
 
Components of Net Asset Value
38
 
Earnings Guidance – 2017


p. 2
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

CORPORATE PROFILE
 
image44.jpg


 
General Description
 
Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust (REIT) engaged primarily in the ownership and operation, acquisition, development and redevelopment of high-quality neighborhood and community shopping centers in select markets in the United States. As of September 30, 2017, we owned interests in 117 operating and redevelopment properties totaling approximately 23.1 million square feet and two development projects currently under construction.
 
Our strategy is to maximize the cash flow of our operating properties, successfully complete the construction and lease-up of our redevelopment and development portfolio, and identify additional opportunities to acquire or dispose of properties to further strengthen the Company. New investments are focused in the shopping center sector primarily in markets where we believe we can leverage our existing infrastructure and relationships to generate attractive risk-adjusted returns or otherwise in desirable trade areas. Dispositions are generally designed to increase the quality of our portfolio and to strengthen the Company’s balance sheet.  

Company Highlights as of September 30, 2017  
 
 
# of Properties
Total
GLA /NRA1
Owned
 GLA /NRA1
Operating Retail Properties
 
105

21,185,634

14,965,403

Operating Office Properties and Other
 
4

501,162

501,162

Redevelopment Properties
 
8

1,412,060

1,303,759

Total Operating and Redevelopment Properties
 
117

23,098,856

16,770,324

Development Projects
 
2

553,000

31,500

Total All Properties
 
119

23,651,856

16,801,824

 
 
Retail
Office & Other
Total
Operating Properties –  Leased Percentage1
 
94.5%
98.8%
94.6%
States
 
 
 
20


Stock Listing: New York Stock Exchange symbol: KRG
  
____________________
1
Excludes square footage of structures located on land owned by the company and ground leased to tenants.




p. 3
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

CONTACT INFORMATION    
 
image44.jpg
                                



 
Corporate Office
30 South Meridian Street, Suite 1100
Indianapolis, IN 46204
(888) 577-5600
(317) 577-5600
www.kiterealty.com
 
Investor Relations Contact:
 
Analyst Coverage:
 
Analyst Coverage:
 
 
 
 
 
Daniel R. Sink
 
Robert W. Baird & Co.
 
DA Davidson
EVP & CFO
 
Mr. RJ Milligan
 
Mr. James O. Lykins
Kite Realty Group Trust 
(813) 273-8252
(503) 603-3041
30 South Meridian Street, Suite 1100 
 
rjmilligan@rwbaird.com
 
jlykins@dadco.com
Indianapolis, IN 46204 
 
 
 
 
(317) 577-5609
 
Bank of America/Merrill Lynch
 
Hilliard Lyons
dsink@kiterealty.com
 
Mr. Jeffrey Spector/Mr. Craig Schmidt
 
Ms. Carol L. Kemple
 
 
(646) 855-1363/(646) 855-3640
 
(502) 588-1839
Transfer Agent:
 
jeff.spector@baml.com
 
ckemple@hilliard.com
 
 
craig.schmidt@baml.com
 
 
Broadridge Financial Solutions
 
 
 
KeyBanc Capital Markets
Ms. Kristen Tartaglione
 
Barclays
 
Mr. Jordan Sadler/Mr. Todd Thomas
2 Journal Square, 7th Floor
 
Mr. Ross Smotrich/Ms. Linda Tsai
 
(917) 368-2280/(917) 368-2286
Jersey City, NJ  07306
 
(212) 526-2306/(212) 526-9937
 
tthomas@keybanccm.com
(201) 714-8094
 
ross.smotrich@barclays.com
 
jsadler@keybanccm.com
 
 
linda.tsai@barclays.com
 
 
Stock Specialist:
 
 
 
Raymond James 
 
 
BTIG
 
Mr. Paul Puryear/Mr. Collin Mings
GTS
 
Mr. Michael Gorman
 
(727) 567-2253/(727) 567-2585
545 Madison Avenue
 
(212) 738-6138
 
paul.puryear@raymondjames.com 
15th Floor 
 
mgorman@btig.com
 
collin.mings@raymondjames.com
New York, NY 10022 
 
 
 
 
(212) 715-2830
 
Capital One Securities, Inc.
 
Sandler O’Neill
 
 
Mr. Christopher Lucas
 
Mr. Alexander Goldfarb
 
 
(571) 633-8151
 
(212) 466-7937
 
 
christopher.lucas@capitalone.com
 
agoldfarb@sandleroneill.com
 
 
 
 
 
 
 
Citigroup Global Markets 
 
Wells Fargo Securities, LLC
 
 
Mr. Michael Bilerman/Ms. Christy McElroy
 
Mr. Jeffrey J. Donnelly, CFA /Ms. Tamara Fique
 
 
(212) 816-1383/(212) 816-6981
 
(617) 603-4262/(443) 263-6568
 
 
michael.bilerman@citigroup.com 
 
jeff.donnelly@wellsfargo.com 
 
 
christy.mcelroy@citigroup.com
 
tamara.fique@wellsfargo.com
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




p. 4
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

IMPORTANT NOTES INCLUDING NON-GAAP DISCLOSURES    
image44.jpg
                                


Interim Information 
This Quarterly Financial Supplemental contains historical information of Kite Realty Group Trust (“the Company” or “KRG”) and is intended to supplement the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 to be filed on or about November 3, 2017, which should be read in conjunction with this supplement. The supplemental information is unaudited, although it reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of operating results for the interim periods.
 
Forward-Looking Statements 
This supplemental information package, 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 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, performance, transactions or achievements, financial or otherwise, may differ materially from the results, performance, transactions or achievements, financial or otherwise, expressed or implied by the forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to:
 
national and local economic, business, real estate and other market conditions, particularly in light of low growth in the U.S. economy as well as economic uncertainty caused by fluctuations in the prices of oil and other energy sources;
financing risks, including the availability of, and costs associated with, sources of liquidity;
our ability to refinance, or extend the maturity dates of, our indebtedness;
the level and volatility of interest rates;
the financial stability of tenants, including their ability to pay rent and the risk of tenant bankruptcies;
the competitive environment in which the Company operates;
acquisition, disposition, development and joint venture risks;
property ownership and management risks;
our ability to maintain our status as a real estate investment trust for federal income tax purposes;
potential environmental and other liabilities;
impairment in the value of real estate property the Company owns;
the impact of online retail and the perception that such retail has on the value of shopping center assets;
risks related to the geographical concentration of our properties in Florida, Indiana and Texas;
insurance costs and coverage;
risks associated with cybersecurity attacks and the loss of confidential information and other business disruptions;
other factors affecting the real estate industry generally; and
other risks identified in reports the Company files with the Securities and Exchange Commission (“the SEC”) or in other documents that it publicly disseminates, including, in particular, the section titled “Risk Factors” in our Annual Report on Form
10-K for the fiscal year ended December 31, 2016, and in our quarterly reports on Form 10-Q.
 
The Company undertakes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Disclosures
 
Funds from Operations 
Funds from Operations (FFO) is a widely used performance measure for real estate companies and is provided here as a supplemental measure of operating performance. The Company calculates FFO, a non-GAAP financial measure, in accordance with the best practices described in the April 2002 National Policy Bulletin of the National Association of Real Estate Investment Trusts ("NAREIT"). The NAREIT white paper defines FFO as net income (determined in accordance with GAAP), excluding gains (or losses) from sales and impairments of depreciated property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.
 
Considering the nature of our business as a real estate owner and operator, the Company believes that FFO is helpful to investors in measuring our operational performance because it excludes various items included in net income that do not relate to or are not indicative of our operating performance, such as gains or losses from sales of depreciated property and depreciation and amortization, which can make periodic and peer analyses of operating performance more difficult. For informational purposes, the Company has also provided FFO adjusted for accelerated amortization of debt issuance costs, transaction costs and a severance charge in 2016. The Company believes this supplemental information provides a meaningful measure of our operating performance. The Company believes our presentation of FFO, as adjusted, provides investors with another financial measure that may facilitate comparison of operating performance between periods and among our peer companies. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of our financial performance, is not an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, and is not indicative of funds available to satisfy our cash needs, including our ability to make distributions. Our computation of FFO may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do. A reconciliation of net income (computed in accordance with GAAP) to FFO is included elsewhere in this Financial Supplement.
 






p. 5
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

IMPORTANT NOTES INCLUDING NON-GAAP DISCLOSURES (CONTINUED)
image44.jpg




Adjusted Funds from Operations
Adjusted Funds From Operations (“AFFO”) is a non-GAAP financial measure of operating performance used by many companies in the REIT industry. AFFO modifies FFO, as adjusted for certain cash and non-cash transactions not included in FFO, as adjusted. AFFO should not be considered an alternative to net income as an indication of the company's performance or as an alternative to cash flow as a measure of liquidity or ability to make distributions. Management considers AFFO a useful supplemental measure of the company’s performance. The Company’s computation of AFFO may differ from the methodology for calculating AFFO used by other REITs, and therefore, may not be comparable to such other REITs. A reconciliation of net income (computed in accordance with GAAP) to AFFO is included elsewhere in this Financial Supplement.

Net Operating Income and Same Property Net Operating Income
The Company uses property net operating income (“NOI”), a non-GAAP financial measure, to evaluate the performance of our properties. The Company defines NOI as income from our real estate, including lease termination fees received from tenants, less our property operating expenses. NOI excludes amortization of capitalized tenant improvement costs and leasing commissions and certain corporate level expenses. The Company believes that NOI is helpful to investors as a measure of our operating performance because it excludes various items included in net income that do not relate to or are not indicative of our operating performance, such as depreciation and amortization, interest expense, and impairment, if any.

The Company also uses same property NOI ("Same Property NOI"), a non-GAAP financial measure, to evaluate the performance of our properties. Same Property NOI excludes properties that have not been owned for the full period presented. It also excludes net gains from outlot sales, straight-line rent revenue, bad debt expense and recoveries, lease termination fees, amortization of lease intangibles and significant prior period expense recoveries and adjustments, if any. The Company believes that Same Property NOI is helpful to investors as a measure of our operating performance because it includes only the NOI of properties that have been owned for the full period presented, which eliminates disparities in net income due to the acquisition or disposition of properties during the particular period presented and thus provides a more consistent metric for the comparison of our properties. The year to date results represent the sum of the individual quarters, as reported.

NOI and Same Property NOI should not, however, be considered as alternatives to net income (calculated in accordance with GAAP) as indicators of our financial performance. Our computation of NOI and Same Property NOI may differ from the methodology used by other REITs, and therefore may not be comparable to such other REITs.

When evaluating the properties that are included in the same property pool, the Company has established specific criteria for determining the inclusion of properties acquired or those recently under development. An acquired property is included in the same property pool when there is a full quarter of operations in both years subsequent to the acquisition date. Development and redevelopment properties are included in the same property pool four full quarters after the properties have been transferred to the operating portfolio. A redevelopment property is first excluded from the same property pool when the execution of a redevelopment plan is likely and the Company begins recapturing space from tenants. For the quarter ended September 30, 2017, the Company excluded eight redevelopment properties and the recently completed Northdale Promenade redevelopment from the same property pool that met these criteria and were owned in both comparable periods.

Earnings Before Interest Expense, Income Tax Expense, Depreciation and Amortization (EBITDA)
The Company defines EBITDA, a non-GAAP financial measure, as net income before depreciation and amortization, interest expense and income tax expense of taxable REIT subsidiary. For informational purposes, the Company has also provided Adjusted EBITDA, which the Company defines as EBITDA less (i) EBITDA from unconsolidated entities, (ii) gains on sales of operating properties or impairment charges, (iii) other income and expense, (iv) noncontrolling interest EBITDA and (v) other non-recurring activity or items impacting comparability from period to period. Annualized Adjusted EBITDA is Adjusted EBITDA for the most recent quarter multiplied by four. Net Debt to Adjusted EBITDA is the Company's share of net debt divided by Annualized Adjusted EBITDA. EBITDA, Adjusted EBITDA, Annualized Adjusted EBITDA and Net Debt to Adjusted EBITDA, as calculated by us, are not comparable to EBITDA and EBITDA-related measures reported by other REITs that do not define EBITDA and EBITDA-related measures exactly as we do. EBITDA, Adjusted EBITDA and Annualized Adjusted EBITDA do not represent cash generated from operating activities in accordance with GAAP, and should not be considered alternatives to net income as an indicator of performance or as alternatives to cash flows from operating activities as an indicator of liquidity.

Considering the nature of our business as a real estate owner and operator, the Company believes that EBITDA, Adjusted EBITDA and the ratio of Net Debt to Adjusted EBITDA are helpful to investors in measuring our operational performance because they exclude various items included in net income that do not relate to or are not indicative of our operating performance, such as gains or losses from sales of depreciated property and depreciation and amortization, which can make periodic and peer analyses of operating performance more difficult. For informational purposes, the Company has also provided Annualized Adjusted EBITDA, adjusted as described above. The Company believes this supplemental information provides a meaningful measure of our operating performance. The Company believes presenting EBITDA and the related measures in this manner allows investors and other interested parties to form a more meaningful assessment of our operating results.


p. 6
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
image44.jpg


($ in thousands)
 
 
 
 
 
 
September 30,
2017
 
December 31,
2016
Assets:
 
 
 
 
Investment properties, at cost
 
$
3,955,928

 
$
3,996,065

Less: accumulated depreciation
 
(635,583
)
 
(560,683
)
 
 
3,320,345

 
3,435,382

Cash and cash equivalents
 
32,465

 
19,874

Tenant and other receivables, including accrued straight-line rent of $30,956 and $28,703 respectively, net of allowance for uncollectible accounts
 
53,271

 
53,087

Restricted cash and escrow deposits
 
8,878

 
9,037

Deferred costs and intangibles, net
 
115,623

 
129,264

Prepaid and other assets
 
12,810

 
9,727

Total Assets
 
$
3,543,392

 
$
3,656,371

Liabilities and Shareholders’ Equity:
 
 
 
 

Mortgage and other indebtedness, net
 
$
1,681,676

 
$
1,731,074

Accounts payable and accrued expenses
 
101,574

 
80,664

Deferred revenue and other liabilities
 
101,066

 
112,202

Total Liabilities
 
1,884,316

 
1,923,940

Commitments and contingencies
 
 
 
 

Limited Partners’ interests in the Operating Partnership and other redeemable noncontrolling interests
 
73,454

 
88,165

Shareholders’ Equity:
 
 
 
 

Kite Realty Group Trust Shareholders’ Equity:
 
 
 
 

Common Shares, $.01 par value, 225,000,000 shares authorized, 83,594,068 and 83,545,398 shares issued and outstanding at September 30, 2017 and
December 31, 2016, respectively
 
836

 
835

Additional paid in capital
 
2,068,636

 
2,062,360

Accumulated other comprehensive income (loss)
 
1,050

 
(316
)
Accumulated deficit
 
(485,598
)
 
(419,305
)
Total Kite Realty Group Trust Shareholders’ Equity
 
1,584,924

 
1,643,574

Noncontrolling Interests
 
698

 
692

Total Equity
 
1,585,622

 
1,644,266

Total Liabilities and Equity
 
$
3,543,392

 
$
3,656,371















p. 7
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
image44.jpg
     


($ in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Revenue:
 
 
 
 
 
 
 
 
  Minimum rent
 
$
67,585

 
$
69,518

 
$
204,926

 
$
205,436

  Tenant reimbursements
 
17,657

 
17,531

 
54,748

 
52,691

  Other property related revenue
 
1,896

 
2,073

 
10,226

 
7,120

Total revenue
 
87,138

 
89,122

 
269,900

 
265,247

Expenses:
 
 

 
 

 
 
 
 
  Property operating
 
11,859

 
11,916

 
36,950

 
35,454

  Real estate taxes
 
10,826

 
10,690

 
32,384

 
32,327

  General, administrative, and other
 
5,431

 
5,081

 
16,389

 
15,228

  Transaction costs
 

 

 

 
2,771

  Impairment charge
 

 

 
7,411

 

  Depreciation and amortization
 
42,793

 
45,543

 
131,333

 
131,625

Total expenses
 
70,909

 
73,230

 
224,467

 
217,405

Operating income
 
16,229

 
15,892

 
45,433

 
47,842

  Interest expense
 
(16,372
)
 
(17,139
)
 
(49,250
)
 
(47,964
)
  Income tax benefit (expense) of taxable REIT subsidiary
 
33

 
(15
)
 
64

 
(763
)
  Other expense, net
 
(94
)
 

 
(314
)
 
(94
)
Loss from continuing operations
 
(204
)
 
(1,262
)
 
(4,067
)
 
(979
)
  Gains on sales of operating properties
 

 

 
15,160

 
194

Net (loss) income
 
(204
)
 
(1,262
)
 
11,093

 
(785
)
  Net income attributable to noncontrolling interests
 
(418
)
 
(420
)
 
(1,528
)
 
(1,391
)
Net (loss) income attributable to Kite Realty Group Trust common shareholders
 
$
(622
)
 
$
(1,682
)
 
$
9,565

 
$
(2,176
)
 
 
 
 
 
 
 
 
 
(Loss) income per common share - basic
 
$
(0.01
)
 
$
(0.02
)
 
$
0.11

 
$
(0.03
)
(Loss) income per common share - diluted
 
$
(0.01
)
 
$
(0.02
)
 
$
0.11

 
$
(0.03
)
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - basic
 
83,594,163

 
83,474,348

 
83,581,847

 
83,399,813

Weighted average common shares outstanding - diluted
 
83,594,163

 
83,474,348

 
83,689,590

 
83,399,813

Cash dividends declared per common share
 
$
0.3025

 
$
0.2875

 
$
0.9075

 
$
0.8625

  


p. 8
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

FUNDS FROM OPERATIONS1
image44.jpg



($ in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Funds From Operations ("FFO")
 
 
 
 
 
 
 
 
Consolidated net (loss) income
 
$
(204
)
 
$
(1,262
)
 
$
11,093

 
$
(785
)
Less: net income attributable to noncontrolling interests in properties
 
(432
)
 
(461
)
 
(1,302
)
 
(1,383
)
Less: gains on sales of operating properties
 

 

 
(15,160
)
 
(194
)
Add: impairment charge
 

 

 
7,411

 

Add: depreciation and amortization of consolidated entities, net of noncontrolling interests
 
42,474

 
45,310

 
129,890

 
130,909

   FFO of the Operating Partnership1
 
41,838

 
43,587

 
131,932

 
128,547

Less: Limited Partners' interests in FFO
 
(949
)
 
(918
)
 
(2,995
)
 
(2,708
)
   FFO attributable to Kite Realty Group Trust common shareholders1
 
$
40,889

 
$
42,669

 
$
128,937

 
$
125,839

FFO, as defined by NAREIT, per share of the Operating Partnership - basic
 
$
0.49

 
$
0.51

 
$
1.54

 
$
1.51

FFO, as defined by NAREIT, per share of the Operating Partnership - diluted
 
$
0.49

 
$
0.51

 
$
1.54

 
$
1.50

 
 
 
 
 
 
 
 
 
FFO of the Operating Partnership1
 
$
41,838

 
$
43,587

 
$
131,932

 
$
128,547

Add: accelerated amortization of debt issuance costs (non-cash)
 

 
1,121

 

 
1,121

Add: transaction costs
 

 

 

 
2,771

Add: severance charge
 

 

 

 
500

FFO, as adjusted, of the Operating Partnership
 
$
41,838

 
$
44,708

 
$
131,932

 
$
132,939

FFO, as adjusted, per share of the Operating Partnership - basic
 
$
0.49

 
$
0.52

 
$
1.54

 
$
1.56

FFO, as adjusted, per share of the Operating Partnership - diluted
 
$
0.49

 
$
0.52

 
$
1.54

 
$
1.56

 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - basic
 
83,594,163

 
83,474,348

 
83,581,847

 
83,399,813

Weighted average common shares outstanding - diluted
 
83,708,719

 
83,565,227

 
83,689,590

 
83,488,618

Weighted average common shares and units outstanding - basic
 
85,580,993

 
85,417,753

 
85,561,343

 
85,336,859

Weighted average common shares and units outstanding - diluted
 
85,695,549

 
85,580,632

 
85,669,087

 
85,425,664

 
 
 
 
 
 
 
 
 
FFO, as defined by NAREIT, per diluted share
 
 
 
 
 
 
 
 
Consolidated net (loss) income
 
$

 
$
(0.01
)
 
$
0.13

 
$
(0.01
)
Less: net income attributable to noncontrolling interests in properties
 
(0.01
)
 
(0.01
)
 
(0.02
)
 
(0.02
)
Less: gains on sales of operating properties
 

 

 
(0.18
)
 

Add: impairment charge
 

 

 
0.09

 

Add: depreciation and amortization of consolidated entities, net of noncontrolling interests
 
0.50

 
0.53

 
1.52

 
1.53

FFO, as defined by NAREIT, of the Operating Partnership per diluted share1
 
$
0.49

 
$
0.51

 
$
1.54

 
$
1.50

 
 
 
 
 
 
 
 
 
Add: accelerated amortization of debt issuance costs
 

 
0.01

 

 
0.01

Add: transaction costs
 

 

 

 
0.04

Add: severance charge
 

 

 

 
0.01

FFO, as adjusted, of the Operating Partnership per diluted share
 
$
0.49

 
$
0.52

 
$
1.54

 
$
1.56

____________________
1
“FFO of the Operating Partnership" measures 100% of the operating performance of the Operating Partnership’s real estate properties. “FFO attributable to Kite Realty Group Trust common shareholders” reflects a reduction for the redeemable noncontrolling weighted average diluted interest in the Operating Partnership.

p. 9
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

ADJUSTED FUNDS FROM OPERATIONS AND OTHER FINANCIAL INFORMATION
image44.jpg

 
($ in thousands)
 
 
 
 
 
 
 
 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2017
 
2016
 
2017
 
2016
Reconciliation of FFO, as adjusted, to Adjusted Funds from Operations (AFFO)
 
 

 
 

 
 

 
 

FFO, as adjusted, of the Operating Partnership
 
$
41,838

 
$
44,708

 
$
131,932

 
$
132,939

Add:
 
 

 
 

 
 

 
 

Depreciation of non-real estate assets
 
319

 
233

 
1,450

 
763

Amortization of deferred financing costs
 
664

 
992

 
2,014

 
2,624

Non-cash compensation expense
 
1,253

 
1,126

 
3,732

 
3,340

Less:
 
 

 
 

 
 

 
 

Straight-line rent
 
1,173

 
1,477

 
3,593

 
4,312

Market rent amortization income
 
715

 
2,569

 
2,515

 
5,821

Amortization of debt premium
 
713

 
880

 
2,200

 
3,008

Other cash and non-cash adjustments1
 

 

 
866

 
3,271

Capital expenditures2:
 
 
 
 
 
 
 
 
Maintenance capital expenditures3
 
983

 
468

 
2,224

 
1,002

Revenue enhancing tenant improvements – retail
 
1,825

 
1,930

 
11,554

 
6,132

Revenue enhancing tenant improvements – office
 
144

 

 
461

 

External lease commissions
 
327

 
486

 
1,426

 
1,455

Total AFFO of the Operating Partnership
 
$
38,194

 
$
39,249

 
$
114,289

 
$
114,665

 
 
 
 
 
 
 
 
 
Other Financial Information:
 
 
 
 
 
 
 
 
Scheduled debt principal payments 
 
$
1,320

 
$
1,297

 
$
3,709

 
$
2,990

Capitalized interest cost
 
787

 
865

 
2,320

 
2,396

Mark to market lease amount in Deferred revenue and other liabilities on consolidated balance sheet
 
85,163

 
100,972

 


 


Acreage of undeveloped, vacant land in the operating portfolio4
 
46.9

 
 
 
 
 
 


 
 
September 30,
2017
 
December 31,
2016
Investment properties, at cost:
 
 

 
 

Land, building and improvements4
 
$
3,838,665

 
$
3,885,223

Furniture, equipment and other
 
7,890

 
7,246

Land held for development
 
31,142

 
34,171

Construction in progress
 
78,231

 
69,425

Total
 
$
3,955,928

 
$
3,996,065

 
____________________
1
Reflects a non-cash termination fee for the quarter ended March 31, 2017 and terminated transaction costs and a severance charge for the nine months ended September 30, 2016.
2
Excludes landlord work, tenant improvements and leasing commissions relating to development and redevelopment projects.
3
A portion of these capital improvements are reimbursed by tenants and are revenue producing.
4
Includes undeveloped vacant land with a book value of $21.0 million at September 30, 2017.
 


p. 10
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

MARKET CAPITALIZATION AS OF SEPTEMBER 30, 2017    
image44.jpg

($ in thousands)
 
 
 
 
 
 
Percent of
Total Equity
 
Total
Market
Capitalization
 
Percent of
Total Market
Capitalization
Equity Capitalization:
 
 
 
 
 
Total Common Shares Outstanding
97.7
%
 
83,594,068

 
 
Operating Partnership ("OP") Units Outstanding
2.3
%
 
1,986,830

 
 
Combined Common Shares and OP Units
100.0
%
 
85,580,898

 
 
Market Price of Common Shares
 
 
$
20.25

 
 
Total Equity Capitalization
 
 
1,733,013

 
52
%
Debt Capitalization:
 
 
 

 
 
Company Consolidated Outstanding Debt
 
 
1,681,676

 
 
Plus: Debt Premium and Issuance Costs, net
 
 
1,214

 
 
Less: Partner Share of Consolidated Joint Venture Debt1
 
 
(13,373
)
 
 
Company Share of Outstanding Debt
 
 
1,669,517

 
 
Less: Cash, Cash Equivalents, and Restricted Cash
 
 
(41,343
)
 
 
Total Net Debt Capitalization
 
 
1,628,174

 
48
%
Total Enterprise Value
 
 
$
3,361,187

 
100
%
 
 
 
 
 
 
RATIO OF DEBT TO TOTAL UNDEPRECIATED ASSETS AS OF SEPTEMBER 30, 2017
Consolidated Undepreciated Real Estate Assets
 
 
$
3,955,928

 
 
Company Share of Unconsolidated Real Estate Assets2
 
 
2,500

 
 
 
 
 
3,958,428

 
 
Total Consolidated Debt
 
 
1,681,676

 
 
Less: Debt Premium and Issuance Costs, net
 
 
1,214

 
 
Less: Cash, Cash Equivalents, and Restricted Cash
 
 
(41,343
)
 
 
 
 
 
$
1,641,547

 
 
Ratio of Debt to Total Undepreciated Real Estate Assets
 
 
41.5
%
 
 
 
 
 
 
 
 
RATIO OF COMPANY SHARE OF NET DEBT TO EBITDA AS OF SEPTEMBER 30, 2017
Company Share of Consolidated Debt
 
 
$
1,669,517

 
 
Less: Cash, Cash Equivalents, and Restricted Cash
 
(41,343
)
 
 
 
 
 
1,628,174

 
 
Q3 2017 EBITDA, Annualized:
 
 
 
 
 
        -  Consolidated EBITDA
$
236,088

 
 
 
 
        -  Unconsolidated EBITDA
137

 
 
 
 
        -  Minority Interest EBITDA1
(1,728
)
 
234,497

 
 
Ratio of Company Share of Net Debt to EBITDA
 

 
6.9x

 
 
 

____________________
 
 
 
 
1
See page 14 for details.
2
Included in Prepaid and other assets on Consolidated Balance Sheets.
 


p. 11
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

SAME PROPERTY NET OPERATING INCOME (NOI)
image44.jpg




($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
% Change
 
2017
 
2016
 
% Change
Number of properties for the quarter
104

 
104

 
 
 


 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
Leased percentage at period end
94.4
%
 
95.1
%
 
 
 
94.4
%
 
95.1
%
 
 
Economic Occupancy percentage2
93.5
%
 
92.8
%
 
 
 
93.7
%
 
92.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum rent
$
58,806

 
$
56,997

 
 
 
$
175,615

 
$
170,713

 
 
Tenant recoveries 
16,014

 
15,320

 
 
 
49,073

 
46,961

 
 
Other income
385

 
457

 
 
 
839

 
721

 
 
 
75,205

 
72,774

 
 
 
225,527

 
218,395

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property operating expenses 
(10,136
)
 
(10,041
)
 
 
 
(29,883
)
 
(28,956
)
 
 
Real estate taxes 
(9,820
)
 
(9,413
)
 
 
 
(29,808
)
 
(28,923
)
 
 
 
(19,956
)
 
(19,454
)
 
 
 
(59,691
)
 
(57,879
)
 
 
Same Property NOI3
$
55,249

 
$
53,320

 
3.6%
 
$
165,836

 
$
160,516

 
3.3%
Same Property NOI - excluding the impact of the 3-R initiative4
 
 
 
 
3.9%
 
 
 
 
 
3.9%
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Same Property NOI to Most Directly Comparable GAAP Measure: 
 
 
 
 
 
 
 
 
 
 
 
Net operating income - same properties
$
55,249

 
$
53,320

 
 
 
$
165,836

 
$
160,516

 
 
Net operating income - non-same activity5
9,614

 
13,561

 
 
 
36,611

 
38,191

 
 
Provision for bad debts - same properties
(410
)
 
(365
)
 
 
 
(1,881
)
 
(1,241
)
 
 
Other expense, net
(61
)
 
(15
)
 
 
 
(250
)
 
(857
)
 
 
General, administrative and other
(5,431
)
 
(5,081
)
 
 
 
(16,389
)
 
(15,228
)
 
 
Transaction costs

 

 
 
 

 
(2,771
)
 
 
Impairment charge

 

 
 
 
(7,411
)
 

 
 
Depreciation and amortization expense
(42,793
)
 
(45,543
)
 
 
 
(131,333
)
 
(131,625
)
 
 
Interest expense
(16,372
)
 
(17,139
)
 
 
 
(49,250
)
 
(47,964
)
 
 
Gains on sales of operating properties

 

 
 
 
15,160

 
194

 
 
Net income attributable to noncontrolling interests
(418
)
 
(420
)
 
 
 
(1,528
)
 
(1,391
)
 
 
Net (loss) income attributable to common shareholders
$
(622
)
 
$
(1,682
)
 
 
 
$
9,565

 
$
(2,176
)
 
 
 
____________________
1
Same Property NOI excludes eight properties in redevelopment, the recently completed Northdale Promenade redevelopment as well as office properties (Thirty South Meridian and Eddy Street Commons).
2
Excludes leases that are signed but for which tenants have not yet commenced the payment of cash rent. Calculated as a weighted average based on the timing of cash rent commencement and expiration during the period.
3
Same Property NOI excludes net gains from outlot sales, straight-line rent revenue, bad debt expense and recoveries, lease termination fees, amortization of lease intangibles and significant prior period expense recoveries and adjustments, if any.
4
See pages 27 and 28 for further detail of the properties included in the 3-R initiative.
5
Includes non-cash activity across the portfolio as well as net operating income from properties not included in the same property pool.
 


p. 12
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

NET OPERATING INCOME BY QUARTER
image44.jpg



($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
September 30,
2017
 
June 30,
2017
 
March 31,
2017
 
December 31,
2016
 
September 30,
2016
Revenue: 
 
 
 
 
 
 
 
 
 
 
Minimum rent1
 
$
67,585

 
$
68,395

 
$
68,946

 
$
68,622

 
$
69,518

Tenant reimbursements 
 
17,657

 
18,521

 
18,570

 
17,791

 
17,531

Other property related revenue2 
 
1,252

 
5,267

 
1,858

 
1,016

 
1,198

Overage rent
 
82

 
16

 
266

 
904

 
315

Parking revenue, net3
 
138

 
137

 
81

 
188

 
159

 
 
86,714

 
92,336

 
89,721

 
88,521

 
88,721

Expenses: 
 
 
 
 
 
 
 
 
 
 
Property operating  - Recoverable4
 
9,533

 
9,386

 
10,376

 
9,986

 
9,599

Property operating - Non-Recoverable4
 
2,053

 
2,573

 
2,318

 
2,172

 
2,091

Real estate taxes 
 
10,675

 
11,095

 
10,198

 
10,469

 
10,515

 
 
22,261

 
23,054

 
22,892

 
22,627

 
22,205

Net Operating Income - Properties 
 
64,453

 
69,282

 
66,829

 
65,894

 
66,516

Other Expenses: 
 
 
 
 
 
 
 
 
 
 
General, administrative, and other 
 
(5,431
)
 
(5,488
)
 
(5,470
)
 
(5,375
)
 
(5,081
)
Impairment charge
 

 

 
(7,411
)
 

 

 
 
(5,431
)
 
(5,488
)
 
(12,881
)
 
(5,375
)
 
(5,081
)
Earnings Before Interest, Taxes, Depreciation and Amortization
 
59,022

 
63,794

 
53,948

 
60,519

 
61,435

Depreciation and amortization 
 
(42,793
)
 
(42,710
)
 
(45,830
)
 
(42,939
)
 
(45,543
)
Interest expense
 
(16,372
)
 
(16,433
)
 
(16,445
)
 
(17,613
)
 
(17,139
)
Income tax benefit (expense) of taxable REIT subsidiary 
 
33

 
(3
)
 
33

 
(51
)
 
(15
)
Other expense, net
 
(94
)
 
(80
)
 
(139
)
 
(75
)
 

(Loss) Income From Continuing Operations
 
(204
)
 
4,568

 
(8,433
)
 
(159
)
 
(1,262
)
Gains on sales of operating properties
 

 
6,290

 
8,870

 
4,059

 

Net (loss) income
 
(204
)
 
10,858

 
437

 
3,900

 
(1,262
)
Less: Net income attributable to noncontrolling interests
 
(418
)
 
(678
)
 
(432
)
 
(541
)
 
(420
)
Net (loss) income attributable to Kite Realty Group Trust
 
$
(622
)
 
$
10,180

 
$
5

 
$
3,359

 
$
(1,682
)
NOI/Revenue
 
74.3
%
 
75.0
%
 
74.5
%
 
74.4
%
 
75.0
%
Recovery Ratios5
 
 
 
 
 
 
 
 
 
 
       - Retail Properties
 
89.9
%
 
93.1
%
 
92.0
%
 
89.2
%
 
89.4
%
       - Consolidated
 
87.4
%
 
90.4
%
 
90.3
%
 
87.0
%
 
87.2
%
 
____________________
1
Minimum rent includes $5.0 million in ground lease-related revenue for the three months ended September 30, 2017.
2
Other property related revenue for the three months ended September 30, 2017 includes $0.6 million of lease termination income and a $0.4 million gain on the sale of a land parcel.
3
Parking revenue, net represents the net operating results of the Eddy Street Parking Garage and the Union Station Parking Garage. In the three months ended September 30, 2017, this amount was calculated as revenue of $499,000 less real estate taxes and property operating expenses of $209,000 and $152,000, respectively.
4
Recoverable expenses include total management fee expense (or recurring G&A expense of $1.3 million) allocable to the property operations in the three months ended September 30, 2017, a portion of which is recoverable. Non-recoverable expenses primarily include bad debt provision, ground rent, and professional fees.
5
“Recovery Ratio” is computed by dividing tenant reimbursements by the sum of recoverable property operating expense and real estate tax expense.

p. 13
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

CONSOLIDATED JOINT VENTURE SUMMARY - SEPTEMBER 30, 2017
image44.jpg



($ in thousands)

Ownership
 
 
 
 
 
 
 
 
 
Joint Venture Entity
Location (MSA)
Owned GLA
 
KRG
Ownership %
 
Current
KRG
Economic
Ownership%1
 
 
Delray Marketplace
Delray, FL

260,255

50%
 
98%
 
 
Pan Am Plaza
Indianapolis, IN


85%
 
85%
 
 
Crossing at Killingly Commons
Killingly, CT

208,929

55%
 
90%
 
 
Territory Portfolio2
Las Vegas, NV

847,690

78%
 
94%
 
 
Balance Sheet
 
Current
Partner
Economic
Ownership %
 
 
 
 
 
Joint Venture Entity
Debt Balance
Partner Share
of Debt
 
Redeemable
Noncontrolling Interest
 
 
Delray Marketplace
$
56,850

2%
$
1,138

 
$

 
 
Pan Am Plaza

15%

 

 
 
Crossing at Killingly Commons
33,000

10%
3,300

 
10,070

 
 
Territory Portfolio2
148,940

6%
8,935

 
22,461

 
 
Total
$
238,790

 
$
13,373

 
$
32,531

 
 
Income Statement
 
 
 
 
 
Joint Venture Entity
Quarterly
Minority Interest
 
Annualized Minority
Interest
 
Delray Marketplace
 
 
$

 
$

 
KRG has an 8% cumulative preferred return
Pan Am Plaza
 
 

 

 
Project currently in Land Held For Development
Crossing at Killingly Commons
 
 
132

 
528

 
Partner receives a fixed annual preferred payment of 5.5% on $9.6 million
Territory Portfolio2
 
 
300

 
1,200

 
Partner receives a fixed annual preferred payment of 4% on $30 million
Total
 
 
$
432

 
$
1,728

 
 
 
____________________
1
Economic ownership % represents the Company's share of cash flow.
2
Joint Venture includes six operating properties located in Las Vegas, Nevada. During the quarter, our partner exercised its option to have the Company redeem a portion of its ownership interest in the joint venture. Our partner has elected to redeem $8.1 million of its interest for cash. The Company can determine the timing of closing, but it must occur before December 27, 2017.




p. 14
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

SUMMARY OF OUTSTANDING DEBT AS OF SEPTEMBER 30, 2017
image44.jpg

($ in thousands)
 
 
 
 
 
 
 
TOTAL OUTSTANDING DEBT1
 
 
 
 
 
 
 
Outstanding Amount
 
Ratio
 
Weighted Average
Interest Rate
 
Weighted Average
Maturity (in years)
Fixed Rate Debt
$
1,588,505

 
94
%
 
4.08
%
 
5.8

Variable Rate Debt
94,385

 
6
%
 
2.73
%
 
4.4

Net Debt Premiums and Issuance Costs, Net
(1,214
)
 
N/A

 
N/A

 
N/A

Total
$
1,681,676

 
100
%
 
4.00
%
 
5.7

SCHEDULE OF MATURITIES BY YEAR
 
 
 
 
 
 
Secured Debt
 
 
 
 
Scheduled Principal
Payments
 
Term
Maturities
 
Unsecured
Debt
2
 
Total Outstanding Debt
2017
 
$
1,241

 
$

 
$

 
$
1,241

2018
 
5,635

 
37,584

 

 
43,219

2019
 
5,975

 

 

 
5,975

2020
 
5,920

 
42,339

 

 
48,259

2021
 
4,624

 
159,875

 
241,100

 
405,599

2022
 
1,113

 
205,208

 
200,000

 
406,321

2023
 
806

 
214,940

 
95,000

 
310,746

2024
 
854

 

 

 
854,000

2025
 
904

 

 
80,000

 
80,904

2026 And Beyond
 
4,672

 
100

 
375,000

 
379,772

Net Debt Premiums and Issuance Costs, Net
 
(1,214
)
 

 

 
(1,214
)
Total
 
$
30,530

 
$
660,046

 
$
991,100

 
$
1,681,676

____________________
1
Fixed rate debt includes, and variable rate date excludes, the portion of such debt that has been hedged by interest rate derivatives. As of September 30, 2017, $460.5 million in variable rate debt is hedged for a weighted average 2.0 years.
2
This presentation reflects the Company's exercise of its option to extend the maturity date by one year to July 28, 2021 for the Company's unsecured credit facility.
q3debtgraph2.jpg
____________________
1
Chart excludes annual principal payments and net premiums on fixed rate debt.

p. 15
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

MATURITY SCHEDULE OF OUTSTANDING DEBT AS OF SEPTEMBER 30, 2017
image44.jpg


($ in thousands)
 
 
 
 
 
 
 
 
 
Property
Lender
 
Interest Rate1
 
Maturity Date
 
Balance as of
June 30, 2017
 
% of
 Total Outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Whitehall Pike
CMBS
 
6.71
%
 
7/5/2018
 
$
4,723

 
 
Perimeter Woods
Jackson National Life Insurance
 
6.02
%
 
9/1/2018
 
33,330

 
 
2018 Debt Maturities
 
 
 
 
 
 
38,053

 
2.3
%
 
 
 
 
 
 
 
 
 
 


 


 

 


 
 
2019 Debt Maturities
 
 
 
 
 
 

 
%
 
 
 
 
 
 
 
 
 
 
Fishers Station
Old National Bank
 
LIBOR + 225

 
1/4/2020
 
6,633

 
 
Lake City Commons/12th Street Plaza/University Town Center II
CMBS
 
5.70
%
 
9/1/2020
 
20,700

 
 
Thirty South
Associated Bank
 
LIBOR + 205

 
12/31/2020
 
17,331

 
 
2020 Debt Maturities
 
 
 
 
 
 
44,664

 
2.7
%
 
 
 
 
 
 
 
 
 
 
Waxahachie Crossing
CMBS
 
5.55
%
 
3/1/2021
 
7,750

 
 
International Speedway Square
CMBS
 
5.77
%
 
4/1/2021
 
19,107

 
 
Lima Marketplace
CMBS
 
5.80
%
 
4/1/2021
 
8,383

 
 
Bell Oaks Centre
CMBS
 
5.59
%
 
4/1/2021
 
6,548

 
 
Northcrest Shopping Center
CMBS
 
5.48
%
 
5/1/2021
 
15,780

 
 
University Town Center
CMBS
 
5.48
%
 
6/1/2021
 
18,690

 
 
Village at Bay Park
CMBS
 
5.58
%
 
6/1/2021
 
9,183

 
 
Silver Springs Pointe
CMBS
 
5.03
%
 
7/1/2021
 
8,800

 
 
Lake Mary Plaza
CMBS
 
5.10
%
 
7/1/2021
 
5,080

 
 
Unsecured Credit Facility3,4
KeyBank (Admin. Agent)
 
LIBOR + 135

 
7/28/2021
 
41,100

 
 
Unsecured Term Loan4
KeyBank (Admin. Agent)
 
LIBOR + 130

 
7/28/2021
 
200,000

 
 
Bayport Commons
CMBS
 
5.44
%
 
9/1/2021
 
11,963

 
 
Eddy Street Commons
CMBS
 
5.44
%
 
9/1/2021
 
23,205

 
 
Four Property Pool Loan
CMBS
 
5.44
%
 
9/1/2021
 
34,143

 
 
2021 Debt Maturities
 
 
 
 
 
 
409,732

 
24.3
%
 
 
 
 
 
 
 
 
 
 
Centre at Panola, Phase I
CMBS
 
6.78
%
 
1/1/2022
 
1,747

 
 
Delray Marketplace2
Bank of America
 
LIBOR + 160

 
2/5/2022
 
56,850

 
 
Palm Coast Landing
CMBS
 
5.00
%
 
3/1/2022
 
22,358

 
 
Bayonne Crossing
CMBS
 
4.33
%
 
4/1/2022
 
44,692

 
 
Saxon Crossing
CMBS
 
4.65
%
 
7/1/2022
 
11,400

 
 
Merrimack Village Center
CMBS
 
4.36
%
 
7/6/2022
 
5,445

 
 
Shops at Moore
CMBS
 
4.29
%
 
9/1/2022
 
21,300

 
 
Shops at Julington Creek
CMBS
 
4.60
%
 
9/1/2022
 
4,785

 
 
Centre Point Commons
CMBS
 
4.34
%
 
10/1/2022
 
14,410

 
 
Unsecured Term Loan4
KeyBank (Admin. Agent)
 
LIBOR + 160

 
10/26/2022
 
200,000

 
 
Miramar Square
CMBS
 
4.16
%
 
12/1/2022
 
31,625

 
 
2022 Debt Maturities
 
 
 
 
 
 
414,612

 
24.6
%
See footnotes on next page
 
 
 
 
 
 
 
 
 

p. 16
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

MATURITY SCHEDULE OF OUTSTANDING DEBT AS OF SEPTEMBER 30, 2017 (CONTINUED)
image44.jpg


($ in thousands)
 
 
 
 
 
 
 
 
 
Property
Lender
 
Interest Rate1
 
Maturity Date
 
Balance as of
June 30, 2017
 
%  of
 Total Outstanding
 
 
 
 
 
 
 
 
 
 
Centennial Gateway / Eastgate 5
CMBS
 
3.81
%
 
1/1/2023
 
$
44,385

 
 
Crossing at Killingly Commons 5
Huntington Bank
 
LIBOR + 170

 
1/1/2023
 
33,000

 
 
Centennial Center 5
CMBS
 
3.83
%
 
1/6/2023
 
70,455

 
 
Eastern Beltway 5
CMBS
 
3.83
%
 
1/6/2023
 
34,100

 
 
The Corner
CMBS
 
4.10
%
 
3/1/2023
 
14,750

 
 
Chapel Hill
CMBS
 
3.78
%
 
4/1/2023
 
18,250

 
 
Senior Unsecured Note
Various
 
4.23
%
 
9/10/2023
 
95,000

 
 
2023 Debt Maturities
 
 
 
 
 
 
309,940

 
18.4
%
 
 
 
 
 
 
 
 
 
 
Senior Unsecured Note
Various
 
4.47
%
 
9/10/2025
 
80,000

 
 
Senior Unsecured Note
Various
 
4.00
%
 
10/1/2026
 
300,000

 
 
Senior Unsecured Note
Various
 
4.57
%
 
9/10/2027
 
75,000

 
 
Rampart Commons
CMBS
 
5.73
%
 
6/10/2030
 
10,889

 
 
2024 And Beyond Debt Maturities
 
 
 
 
 
 
465,889

 
27.7
%
NET PREMIUMS ON ACQUIRED DEBT & ISSUANCE COSTS
 
 
 
 
 
(1,214
)
 
 
TOTAL DEBT PER CONSOLIDATED BALANCE SHEET
 
 
 
$
1,681,676

 
 
 

____________________
1
At September 29, 2017, one-month LIBOR was 1.23%.
2
Property is held in a joint venture. The loan is guaranteed by Kite Realty Group, LP. See Joint Venture Summary on page 14 for additional detail.
3
Assumes Company exercises its option to extend the maturity date by one year
4
The Company has 100 unencumbered properties of which 93 are wholly owned and included in the unencumbered property pool of our unsecured facilities.
5
Property is held in a joint venture. See Joint Venture Summary on page 14 for additional detail.


p. 17
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

UNSECURED PUBLIC DEBT COVENANTS
image44.jpg




 
September 30, 2017
 
Threshold1
 
 
 
 
 
Total Debt to Undepreciated Assets
41.0%
 
<60%
 
 
 
 
 
Secured Debt to Undepreciated Assets
16.8%
 
<40%
 
 
 
 
 
Undepreciated Unencumbered Assets to Unsecured Debt
266.1%
 
>150%
 
 
 
 
 
Debt Service Coverage
3.4x
 
>1.5x
 
 
 
 
 
 
 
 
 
 
Senior Unsecured Debt Ratings:
 
 
 
 
Moody's Investors Service
Baa3/Stable
 
 
Standard & Poor's Rating Services
BBB-/Stable
 
 
 
 
 
 
 
 
 
 
 
 
Liquidity ($ in thousands)
 
 
 
 
Cash and cash equivalents
 
$
32,465

 
 
Availability under unsecured credit facility
 
394,083

 
 
 
 
$
426,548

 
 
 
 
 
 
 
____________________
1
For a complete listing of all Debt Covenants related to the Company's Senior Unsecured Notes, as well as definitions of the terms, refer to the Company's filings with the SEC.



p. 18
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

TOP 10 RETAIL TENANTS BY TOTAL GROSS LEASABLE AREA (GLA)
image44.jpg

 

As of September 30, 2017

This table includes the following:
Operating retail properties;
Operating office properties; and
Development/Redevelopment property tenants open for business or ground lease tenants who commenced paying rent as of September 30, 2017.

Tenant
 
Number of
Locations
 
Total GLA
 
Number of
Leases
 
Company
Owned GLA
 
Ground Lease GLA
 
Number of Anchor
Owned Locations
 
Anchor
Owned GLA
Wal-Mart Stores, Inc.1
 
15

 
2,578,323

 
6

 
203,742

 
811,956

 
9

 
1,562,625

Target Corporation
 
15

 
2,175,101

 

 

 

 
15

 
2,175,101

Lowe's Companies, Inc.
 
14

 
2,072,666

 
5

 
128,997

 
650,161

 
9

 
1,293,508

Home Depot Inc.
 
6

 
788,167

 
1

 

 
131,858

 
5

 
656,309

Kohl's Corporation
 
9

 
782,386

 
5

 
184,516

 
244,010

 
4

 
353,860

Publix Super Markets, Inc.
 
14

 
670,665

 
14

 
670,665

 

 

 

The TJX Companies, Inc.2
 
22

 
656,931

 
22

 
656,931

 

 

 

Ross Stores, Inc.
 
18

 
510,707

 
18

 
510,707

 

 

 

Bed Bath & Beyond, Inc.3
 
19

 
493,719

 
19

 
493,719

 

 

 

Petsmart, Inc.
 
19

 
390,843

 
19

 
390,843

 

 

 

Total
 
151

 
11,119,508

 
109

 
3,240,120

 
1,837,985

 
42

 
6,041,403



____________________
1
Includes Sam's Club, which is owned by the same parent company.
2
Includes TJ Maxx (13), Home Goods (2) and Marshalls (7), all of which are owned by the same parent company.
3
Includes Buy Buy Baby (4), Christmas Tree Shops (1) and Cost Plus (3), all of which are owned by the same parent company.
 

 


p. 19
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

TOP 25 TENANTS BY ANNUALIZED BASE RENT
image44.jpg


As of September 30, 2017

($ in thousands, except per square foot data)

This table includes the following:
Operating retail properties;
Operating office properties; and
Development/Redevelopment property tenants open for business or ground lease tenants who commenced paying rent as of September 30, 2017.

Tenant
 
Number
of
Stores
 
Leased GLA/NRA1
 
% of Owned
GLA/NRA
of the
Portfolio
 
Annualized
Base Rent
2,3
 
Annualized
Base Rent
per Sq. Ft.
3
 
% of Total
Portfolio
Annualized
Base Rent
3
The TJX Companies, Inc.4
 
22
 
656,931

 
2.7
%
 
$
6,820

 
$
10.38

 
2.5
%
Publix Super Markets, Inc.
 
14
 
670,665

 
2.7
%
 
6,739

 
10.05

 
2.5
%
Petsmart, Inc.
 
19
 
390,843

 
1.6
%
 
6,152

 
15.74

 
2.2
%
Bed Bath & Beyond, Inc.5
 
19
 
493,719

 
2.0
%
 
6,050

 
12.25

 
2.2
%
Ross Stores, Inc.
 
18
 
510,707

 
2.1
%
 
5,791

 
11.34

 
2.1
%
Lowe's Companies, Inc.
 
5
 
128,997

 
0.5
%
 
5,039

 
6.47

 
1.8
%
Office Depot (9) / Office Max (6)
 
15
 
307,788

 
1.3
%
 
4,242

 
13.78

 
1.6
%
Dick's Sporting Goods, Inc.6
 
8
 
390,502

 
1.6
%
 
4,167

 
10.67

 
1.5
%
Ascena Retail Group7
 
34
 
206,082

 
0.8
%
 
4,140

 
20.09

 
1.5
%
Nordstrom, Inc.
 
6
 
197,845

 
0.8
%
 
3,918

 
19.80

 
1.4
%
Michaels Stores, Inc.
 
14
 
295,066

 
1.2
%
 
3,884

 
13.16

 
1.4
%
Wal-Mart Stores, Inc.8
 
6
 
203,742

 
0.8
%
 
3,655

 
3.60

 
1.3
%
LA Fitness
 
5
 
208,209

 
0.8
%
 
3,447

 
16.56

 
1.3
%
Best Buy Co., Inc.
 
6
 
213,604

 
0.9
%
 
3,069

 
14.37

 
1.1
%
Kohl's Corporation
 
5
 
184,516

 
0.8
%
 
2,927

 
6.83

 
1.1
%
Toys "R" Us, Inc.9
 
6
 
179,316

 
0.7
%
 
2,924

 
11.82

 
1.1
%
Mattress Firm Holdings Corp (18) / Sleepy's (5)
 
23
 
105,001

 
0.4
%
 
2,903

 
27.65

 
1.1
%
National Amusements
 
1
 
80,000

 
0.3
%
 
2,898

 
36.22

 
1.1
%
Petco Animal Supplies, Inc.
 
12
 
167,455

 
0.7
%
 
2,804

 
16.74

 
1.0
%
DSW Inc.
 
9
 
175,133

 
0.7
%
 
2,491

 
14.22

 
0.9
%
Stein Mart, Inc.
 
9
 
307,222

 
1.3
%
 
2,378

 
7.74

 
0.9
%
Ulta Beauty, Inc.
 
11
 
117,451

 
0.5
%
 
2,317

 
19.73

 
0.8
%
Frank Theatres
 
2
 
122,224

 
0.5
%
 
2,311

 
18.91

 
0.8
%
Walgreens Boots Alliance, Inc.
 
4
 
67,212

 
0.3
%
 
2,099

 
31.23

 
0.8
%
The Gap, Inc. / Old Navy (9)
 
9
 
148,401

 
0.6
%
 
2,079

 
14.01

 
0.8
%
TOTAL
 
282
 
6,528,631

 
26.6
%
 
$
95,245

 
$
11.52

 
34.8
%
____________________
1
Excludes the estimated size of the structures located on land owned by the Company and ground leased to tenants.
2
Annualized base rent represents the monthly contractual rent for September 30, 2017 for each applicable tenant multiplied by 12. Annualized base rent does not include tenant reimbursements.
3
Annualized base rent and percent of total portfolio includes ground lease rent.
4
Includes TJ Maxx (13), Marshalls (7) and HomeGoods (2), all of which are owned by the same parent company.
5
Includes Bed Bath and Beyond (11), Buy Buy Baby (4) Christmas Tree Shops (1) and Cost Plus (3), all of which are owned by the same parent company.
6
Includes Dick's Sporting Goods (7) and Golf Galaxy (1), both of which are owned by the same parent company.
7
Includes Ann Taylor (5), Catherine's (2), Dress Barn (11), Lane Bryant (7), Justice Stores (5) and Maurices (4), all of which are owned by the same parent company.
8
Includes Sam's Club, which is owned by the same parent company.
9
Includes Babies "R" Us (3), and Toys "R" Us/Babies "R" Us combination stores (3), both of which are owned by the same parent company.

p. 20
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

RETAIL LEASING SPREADS
image44.jpg


 
 
 
 
 
 
Comparable Space1,2
 
 
Category
 
Total Leases
Total
Sq. Ft.
 
Leases
 
Sq. Ft.
 
Prior Rent PSF3
 
New Rent PSF4,5
 
Cash Rent Spread
 
TI, LL Work, Lease Commissions PSF6
New Leases - Q3, 2017
 
39

 
92,089

 
18
 
44,091

 
$
23.58

 
$
28.04

 
18.9
%
 
 
$
49.06

 
New Leases - Q2, 2017
 
51

 
164,214

 
23
 
71,828

 
$
21.52

 
$
25.27

 
17.4
%
 
 
$
58.67

 
New Leases - Q1, 20177
 
32

 
109,513

 
15
 
74,122

 
$
10.20

 
$
14.85

 
45.5
%
 
 
$
34.37

 
New Leases - Q4, 2016
 
49

 
218,329

 
25
 
137,028

 
$
14.84

 
$
18.74

 
26.3
%
 
 
$
52.03

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Renewals - Q3, 2017
 
47

 
340,725

 
47
 
340,725

 
$
16.40

 
$
17.99

 
9.7
%
 
 
$
1.63

 
Renewals - Q2, 2017
 
45

 
460,103

 
45
 
460,103

 
$
14.07

 
$
15.20

 
8.0
%
 
 
$
2.42

 
Renewals - Q1, 20178
 
48

 
399,851

 
48
 
399,851

 
$
16.13

 
$
16.89

 
4.7
%
 
 
$
2.34

 
Renewals - Q4, 2016
 
43

 
352,761

 
43
 
352,761

 
$
13.98

 
$
14.75

 
5.5
%
 
 
$
1.11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total - Q3, 20179
 
86

 
432,814

 
65
 
384,816

 
$
17.22

 
$
19.14

 
11.1
%
 
 
$
7.06

 
Total - Q2, 2017
 
96

 
624,317

 
68
 
531,931

 
$
15.08

 
$
16.56

 
9.8
%
 
 
$
10.02

 
Total - Q1, 20178
 
80

 
509,364

 
63
 
473,973

 
$
15.20

 
$
16.57

 
9.0
%
 
 
$
7.34

 
Total - Q4, 2016
 
92

 
571,090

 
68
 
489,789

 
$
14.22

 
$
15.87

 
11.5
%
 
 
$
15.36

 

________________
1
Comparable space leases on this report are included for retail properties only. Leases at our two office properties, Thirty South Meridian and Eddy Street, are included in the totals and ground leases are excluded.
2
Comparable leases represent those leases signed for which there was a former tenant within the last 12 months.
3
Prior rent represents minimum rent, if any, paid by the prior tenant in the final 12 months of the term.
4
All amounts reported at lease execution.
5
Contractual rent represents contractual minimum rent per square foot for the first 12 months of the lease.
6
Includes redevelopment costs for tenant specific landlord work and tenant allowances provided to tenants at properties in the 3-R pipeline.
7
Cash rent spread on comparable new leases for Q1, 2017, excluding one anchor lease, was 14.3%.
8
Cash renewal spread on comparable leases for Q1, 2017, excluding one strategic anchor renewal, was 5.5%. The aggregate spread excluding the one anchor renewal was 10.3%.
9
The aggregate spread on a straight-line basis over the contractual life of the lease to the comparable lease was 17.0% for Q3, 2017, 13.9% for Q2, 2017 and 13.7% for Q1, 2017.



p. 21
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

LEASE EXPIRATIONS – OPERATING PORTFOLIO
image44.jpg



As of September 30, 2017

($ in thousands, except per square foot data)



This table includes the following:
Operating retail properties;
Operating office properties; and
Development/Redevelopment property tenants open for business or ground lease tenants who commenced paying rent as of September 30, 2017.


 
 
 
 
 
 
 
 
 
 
 
 
Number of Expiring Leases1
 
Expiring GLA/NRA2
 
% of Total GLA/NRA Expiring
 
Expiring Annualized
Base Rent
3
 
% of Total Annualized Base Rent
 
Expiring Annualized Base Rent per Sq. Ft.
 
Expiring Ground Lease Revenue
2017
 
44

 
178,949

 
1.2
%
 
$
3,527

 
1.4
%
 
$
19.71

 
$

2018
 
260

 
1,362,250

 
8.8
%
 
24,115

 
9.6
%
 
17.70

 
234

2019
 
256

 
1,698,997

 
11.0
%
 
25,329

 
10.1
%
 
14.91

 
653

2020
 
253

 
2,077,957

 
13.5
%
 
28,659

 
11.4
%
 
13.79

 
1,592

2021
 
299

 
1,763,875

 
11.4
%
 
29,563

 
11.8
%
 
16.76

 
911

2022
 
297

 
2,132,844

 
13.8
%
 
35,810

 
14.3
%
 
16.79

 
1,217

2023
 
176

 
1,496,195

 
9.8
%
 
23,569

 
9.4
%
 
15.75

 
1,813

2024
 
99

 
946,120

 
6.1
%
 
18,910

 
7.5
%
 
19.99

 
288

2025
 
80

 
744,548

 
4.8
%
 
12,987

 
5.2
%
 
17.44

 
806

2026
 
80

 
767,131

 
5.0
%
 
11,259

 
4.5
%
 
14.68

 
1,320

Beyond
 
151

 
2,244,623

 
14.5
%
 
37,458

 
14.9
%
 
16.69

 
11,012

 
 
1,995

 
15,413,489

 
100.0
%
 
$
251,187

 
100.0
%
 
$
16.30

 
$
19,846



____________________
1
Lease expiration table reflects rents in place as of September 30, 2017 and does not include option periods; 2017 expirations include 13 month-to-month tenants. This column also excludes ground leases.
2
Expiring GLA excludes estimated square footage attributable to non-owned structures on land owned by the Company and ground leased to tenants.
3
Annualized base rent represents the monthly contractual rent for September 2017 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue.



p. 22
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

LEASE EXPIRATIONS – RETAIL ANCHOR TENANTS1
image44.jpg
     



As of September 30, 2017

($ in thousands, except per square foot data)



This table includes the following:
Operating retail properties; and
Development/Redevelopment property tenants open for business or ground lease tenants who commenced paying rent as of September 30, 2017.


 
 
 
 
 
 
 
 
 
 
 
 
Number of Expiring Leases2
 
Expiring GLA/NRA3
 
% of Total GLA/NRA Expiring
 
Expiring Annualized Base Rent4
 
% of Total Annualized Base Rent
 
Expiring Annualized Base Rent per Sq. Ft.
 
Expiring Ground Lease Revenue
2017
 

 

 
%
 
$

 
%
 
$

 
$

2018
 
33

 
815,526

 
5.3
%
 
9,884

 
3.9
%
 
12.12

 

2019
 
34

 
1,105,131

 
7.2
%
 
10,693

 
4.3
%
 
9.68

 

2020
 
39

 
1,543,517

 
10.0
%
 
15,698

 
6.2
%
 
10.17

 
1,111

2021
 
42

 
1,091,651

 
7.1
%
 
12,688

 
5.1
%
 
11.62

 
318

2022
 
53

 
1,434,297

 
9.3
%
 
18,099

 
7.2
%
 
12.62

 
745

2023
 
34

 
901,424

 
5.9
%
 
11,123

 
4.4
%
 
12.34

 
1,454

2024
 
21

 
655,301

 
4.3
%
 
11,950

 
4.8
%
 
18.24

 

2025
 
19

 
485,641

 
3.2
%
 
6,728

 
2.7
%
 
13.85

 
381

2026
 
16

 
512,101

 
3.3
%
 
4,972

 
2.0
%
 
9.71

 
750

Beyond
 
55

 
1,886,231

 
12.2
%
 
27,938

 
11.1
%
 
14.81

 
6,373

 
 
346

 
10,430,820

 
67.7
%
 
$
129,773

 
51.7
%
 
$
12.44

 
$
11,131



____________________
1
Retail anchor tenants are defined as tenants that occupy 10,000 square feet or more.
2
Lease expiration table reflects rents in place as of September 30, 2017 and does not include option periods.
3
Expiring GLA excludes square footage for non-owned ground lease structures on land we own and ground leased to tenants.
4
Annualized base rent represents the monthly contractual rent for September 2017 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue.



p. 23
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

LEASE EXPIRATIONS – RETAIL SHOPS
image44.jpg



As of September 30, 2017

($ in thousands, except per square foot data)



This table includes the following:
Operating retail properties; and
Development/Redevelopment property tenants open for business as of September 30, 2017.


 
 
 
 
 
 
 
 
 
 
 
 
Number of Expiring Leases1
 
Expiring GLA/NRA2
 
% of Total GLA/NRA Expiring
 
Expiring Annualized Base Rent3
 
% of Total Annualized Base Rent
 
Expiring Annualized Base Rent per Sq. Ft.
 
Expiring Ground Lease Revenue
2017
 
42
 
96,432

 
0.6%
 
$
2,050

 
0.8%
 
$
21.25

 
$

2018
 
225
 
532,870

 
3.4%
 
13,949

 
5.6%
 
26.18

 
234

2019
 
221
 
588,613

 
3.8%
 
14,535

 
5.8%
 
24.69

 
653

2020
 
212
 
521,129

 
3.4%
 
12,705

 
5.1%
 
24.38

 
481

2021
 
254
 
663,225

 
4.3%
 
16,647

 
6.6%
 
25.10

 
593

2022
 
239
 
633,527

 
4.1%
 
16,450

 
6.5%
 
25.97

 
473

2023
 
136
 
439,423

 
2.9%
 
10,877

 
4.3%
 
24.75

 
359

2024
 
75
 
216,593

 
1.4%
 
5,759

 
2.3%
 
26.59

 
288

2025
 
57
 
172,228

 
1.1%
 
4,841

 
1.9%
 
28.11

 
425

2026
 
64
 
255,030

 
1.7%
 
6,287

 
2.5%
 
24.65

 
570

Beyond
 
95
 
349,238

 
2.2%
 
9,250

 
3.7%
 
26.48

 
4,639

 
 
1,620
 
4,468,308

 
28.8%
 
$
113,349

 
45.1%
 
$
25.37

 
$
8,715



____________________
1
Lease expiration table reflects rents in place as of September 30, 2017, and does not include option periods; 2017 expirations include 13 month-to-month tenants. This column also excludes ground leases.
2
Expiring GLA excludes estimated square footage attributable to non-owned structures on land we own and ground leased to tenants.
3
Annualized base rent represents the monthly contractual rent for September 2017 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue.

p. 24
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

LEASE EXPIRATIONS – OFFICE TENANTS AND OTHER
image44.jpg



As of September 30, 2017

($ in thousands, except per square foot data)



 
 
 
 
 
 
 
 
 
 
Number of Expiring Leases1
 
Expiring GLA/NRA2
 
% of Total GLA/NRA Expiring
 
Expiring Annualized Base Rent3
 
% of Total Annualized Base Rent
 
Expiring Annualized Base Rent per Sq. Ft.
2017
 
2
 
82,517

 
0.5%
 
$
1,477

 
0.6%
 
$
17.90

2018
 
2
 
13,854

 
0.1%
 
282

 
0.1%
 
20.38

2019
 
1
 
5,253

 
0.0%
 
101

 
0.0%
 
19.25

2020
 
2
 
13,311

 
0.1%
 
256

 
0.1%
 
19.25

2021
 
3
 
8,999

 
0.1%
 
228

 
0.1%
 
25.38

2022
 
5
 
65,020

 
0.4%
 
1,261

 
0.5%
 
19.39

2023
 
6
 
155,348

 
1.0%
 
1,569

 
0.6%
 
10.10

2024
 
3
 
74,226

 
0.5%
 
1,201

 
0.5%
 
16.19

2025
 
4
 
86,679

 
0.6%
 
1,418

 
0.6%
 
16.36

2026
 
 

 
0.0%
 

 
0.0%
 

Beyond
 
1
 
9,154

 
0.1%
 
270

 
0.1%
 
29.50

 
 
29
 
514,361

 
3.5%
 
$
8,065

 
3.2%
 
$
15.68



____________________
1
Lease expiration table reflects rents in place as of September 30, 2017 and does not include option periods. This column also excludes ground leases.
2
Lease expiration table reflects rents in place as of September 30, 2017 and does not include option periods. This column also excludes ground leases.
3
Annualized base rent represents the monthly contractual rent for September 2017 for each applicable tenant multiplied by 12. Excludes tenant reimbursements.





p. 25
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

DEVELOPMENT PROJECTS UNDER CONSTRUCTION
image44.jpg
    


As of September 30, 2017

($ in thousands)


Project
Company Ownership %
MSA
Projected
Stabilization
Date
1
Projected
Owned
GLA
2
Projected
Total
GLA
3
Percent
of Owned
GLA
Occupied
4
Percent
of Owned
GLA
Pre-Leased/
Committed
Total
Estimated
Project
Cost
Cost Incurred as of September 30, 2017
 
Major Tenants and
Non-owned Anchors
Holly Springs Towne Center, NC - Phase II Expansion
100%
Raleigh
Mid 2018
23,000

23,000

%
100.0
%
$
2,700

$
1,555

 
O2 Fitness
Eddy Street Commons at Notre Dame, IN - Phase II 5
100%
South Bend
Q4 2020
8,500

530,000

%
%
$
8,447

$
501


Ground lease with multi-family developer on 450 units; 8,500 square feet of owned retail.
Total
 
31,500

553,000

%
73.0
%
$
11,147

$
2,056

 
 


Projected Annualized Development / Redevelopment Cash NOI Summary


Remaining Under Construction Development / Redevelopment Cash NOI
$
6,020

Remaining Transitional Development / Redevelopment Cash NOI
2,151

Total Remaining Annual Cash NOI
$
8,171





Summary of Construction In Progress on Consolidated Balance Sheet:
Under Construction Development / Redevelopment CIP
$
18,402

Transitional Development / Redevelopment CIP
9,513

Lake Lofts at Deerwood - Jacksonville, FL
20,405

Holly Springs Towne Center - Phase III
5,771

Eddy Street Hotel 6
8,966

Various tenant improvements and small projects
15,174

Construction In Progress on Consolidated Balance Sheet
$
78,231



____________________
1
Stabilization date represents near completion of project construction and substantial occupancy of the property.
2
Projected Owned GLA represents gross leasable area we project we will own. It excludes square footage that we project will be attributable to non-owned outlot structures on land owned by us and expected to be ground leased to tenants. It also excludes non-owned anchor space.
3
Projected Total GLA includes Projected Owned GLA, projected square footage attributable to non-owned outlot structures on land that we own, and non-owned anchor space that currently exists or is under construction.
4
Includes tenants that have taken possession of their space or have begun paying rent.
5
Total estimated cost of all components of Eddy Street Phase II equals $89.2 million. This consists of KRG estimated project cost ($8.4 million), Tax Increment Financing ($16.1 million), and residential apartments and townhomes to be ground subleased to unrelated third party ($64.7 million).
6
The Company began construction of a hotel at Eddy Street Commons at the University of Notre Dame. Projected cost is $40 million, net of Tax Increment Financing of $6.0 million, and the Company is in negotiations to form and retain a minority interest in an unconsolidated joint venture to complete and own the hotel.


p. 26
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

UNDER CONSTRUCTION  REDEVELOPMENT, REPOSITION, AND REPURPOSE PROJECTS
image44.jpg


($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Property
Location (MSA)
Description
Projected ROI
Projected Cost
Percentage of Cost Spent
Est. Stabilized Period
Bolton Plaza, Phase II
Jacksonville
Replacing existing vacant shop space with Marshalls and a ground lease with Aldi; additionally undergoing center upgrades.
9.5% - 10.5%
 $5,000 - $5,500
96%
2H 2017
Burnt Store Promenade*
Punta Gorda
New building construction of Publix into 45,000 square foot space. New 20 year lease and center upgrades.
10.5% - 11.5%
 $9,000 - $10,000
83%
1H 2018
Centennial Center A
Las Vegas
Reposition of 2 retail buildings totaling 14,000 square feet, as well as Panera Bread outlot. Scope including addition of traffic signal and other significant building/site enhancements.
10.0% - 11.0%
 $4,000 - $5,000
38%
2H 2018
City Center*
White Plains
Reactivating street-level retail components and enhancing overall shopping experience within multilevel project.
6.5% - 7.0%
 $17,000 - $17,500
87%
1H 2018
Fishers Station*
Indianapolis
Demolition, expansion, and replacement of previous anchor with a Kroger ground lease. Center upgrades and new shop space.
9.5% - 10.5%
 $10,500 - $11,500
73%
2H 2018
Portofino Shopping Center, Phase II
Houston
Demolition and expansion of existing vacant space to accommodate Nordstrom Rack; rightsizing of existing Old Navy, and relocation of shop tenants.
8.0% - 8.5%
 $6,500 - $7,000
64%
2H 2018
Rampart Commons*
Las Vegas
Relocating, re-tenanting, and renegotiating leases as a part of new development plan. Upgrades to building façades and hardscape throughout the center.
7.0% - 7.5%
 $16,000 - $17,000
19%
2H 2018
Trussville Promenade1
Birmingham
Replacing existing vacant small shops with 22,000 square foot junior anchor.
6.5% - 7.5%
 $4,500 - $5,500
74%
2H 2017
 
 
 
 
 
 
 
UNDER CONSTRUCTION REDEVELOPMENT, REPOSITION, REPURPOSE TOTALS
8.0% - 9.0%
$72,500 - $79,000
65%
 

____________________
1
Refers to Trussville I
*
Asterisk represents assets removed from the operating portfolio.

p. 27
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

REDEVELOPMENT, REPOSITION, AND REPURPOSE OPPORTUNITIES
image44.jpg


($ in thousands)




REDEVELOPMENT
Location (MSA)
Description
Beechwood Promenade*
Athens
Remerchandising opportunity across vacant shop space via new fitness facility, fast casual dining, and other shops; also considering self storage opportunities.
Courthouse Shadows*
Naples
Recapture of natural lease expiration; demolition of the site to add mixed use format and outparcel development.
Hamilton Crossing Centre*
Indianapolis
Recapture of lease expiration; substantially enhancing merchandising mix and replacing available anchor tenant.
Targeted Return

9.5% - 10.5%
Expected Cost

$25,000 - $35,000





REPOSITION1
Location (MSA)
Description
Centennial Center B
Las Vegas
General building enhancements to 5 remaining outparcels. Addition of two restaurants to anchor the small shop building.
Targeted Return

9.5% - 10.5%
Expected Cost

$5,000 - $6,000





REPURPOSE
Location (MSA)
Description
The Corner*
Indianapolis
Creation of a mixed use (retail and multi-family) development replacing an unanchored small shop center.
Targeted Return

9.0% - 9.5%
Expected Cost

$15,000 - $20,000






Total Targeted Return
 9.0% - 11.0%
Total Expected Cost

$45,000 - $61,000

____________________
1
Reposition refers to less substantial asset enhancements based on internal costs.
*
Asterisk represents assets removed from the operating portfolio.
Note:
These opportunities are merely potential at this time and are subject to various contingencies, many of which are beyond the Company's control. Targeted return is based upon our current expectations of capital expenditures, budgets, anticipated leases and certain other factors relating to such opportunities. The actual return on these investments may not meet our expectations.


p. 28
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

2017 PROPERTY DISPOSITIONS
image44.jpg
    


($ in thousands)

DISPOSITIONS
 
Property Name
MSA


Date
Sold
 
Sales
Price
Cove Center
Stuart, FL
3/31/2017
 
 
Clay Marketplace
Birmingham, AL
5/25/2017
 
 
The Shops at Village Walk
Fort Myers, FL
5/25/2017
 
 
Wheatland Towne Crossing
Dallas, TX
6/27/2017
 
 
Total


 
$
77,742




















p. 29
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

GEOGRAPHIC DIVERSIFICATION  ANNUALIZED BASE RENT BY REGION AND STATE
image44.jpg


As of September 30, 2017


($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Total Operating Portfolio Excluding Developments and Redevelopments
 
Developments and Redevelopments2
 
Total Operating Portfolio Including
Developments and Redevelopments
Region/State
 
Owned
GLA/NRA
1
 
Annualized
Base Rent
 
Owned
GLA/NRA
1
 
Annualized
Base Rent
 
Number of Properties
 
Owned
GLA/NRA
1
 
Annualized Base Rent - Ground Leases
 
Total Annualized
Base Rent
 
Percent of
Annualized
Base Rent
Florida
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Florida
 
4,212,464

 
$
60,850

 
220,597

 
$
1,172

 
37
 
4,433,061

 
$
3,885

 
$
65,907

 
24.3%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Southeast
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North Carolina
 
1,153,396

 
21,271

 
23,000

 

 
10
 
1,176,396

 
3,735

 
25,006

 
9.2%
Georgia
 
394,464

 
4,917

 
348,815

 
3,305

 
4
 
743,279

 
511

 
8,733

 
3.2%
Tennessee
 
406,444

 
6,132

 

 

 
2
 
406,444

 

 
6,132

 
2.3%
South Carolina
 
515,232

 
5,601

 

 

 
3
 
515,232

 

 
5,601

 
2.1%
Alabama
 
458,763

 
4,240

 

 

 
1
 
458,763

 
151

 
4,391

 
1.6%
Total Southeast
 
2,928,299

 
42,161

 
371,815

 
3,305

 
20
 
3,300,114

 
4,397

 
49,863

 
18.4%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midwest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indiana - Retail
 
2,168,139

 
28,690

 
302,512

 
1,731

 
23
 
2,470,651

 
1,168

 
31,589

 
11.7%
Indiana - Office
 
369,556

 
6,473

 

 

 
2
 
369,556

 

 
6,473

 
2.4%
Illinois
 
310,875

 
4,181

 

 

 
3
 
310,875

 

 
4,181

 
1.5%
Ohio
 
236,230

 
2,162

 

 

 
1
 
236,230

 

 
2,162

 
0.8%
Wisconsin
 
82,238

 
1,167

 

 

 
1
 
82,238

 
381

 
1,548

 
0.6%
Total Midwest
 
3,167,038

 
42,673

 
302,512

 
1,731

 
30
 
3,469,550

 
1,549

 
45,953

 
17.0%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mid-Central
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Texas
 
1,981,242

 
31,306

 

 

 
10
 
1,981,242

 
1,082

 
32,388

 
11.9%
Oklahoma
 
822,335

 
11,379

 

 

 
5
 
822,335

 
1,188

 
12,567

 
4.6%
Texas - Other
 
107,400

 
591

 

 

 
1
 
107,400

 

 
591

 
0.2%
Total Mid-Central
 
2,910,977

 
43,276

 

 

 
16
 
2,910,977

 
2,270

 
45,546

 
16.7%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
West
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nevada
 
847,468

 
18,908

 
79,455

 
1,623

 
7
 
926,923

 
3,930

 
24,461

 
9.0%
Utah
 
391,644

 
6,665

 

 

 
2
 
391,644

 
68

 
6,733

 
2.5%
Arizona
 
79,902

 
2,343

 

 

 
1
 
79,902

 

 
2,343

 
0.9%
Total West
 
1,319,014

 
27,916

 
79,455

 
1,623

 
10
 
1,398,469

 
3,998

 
33,537

 
12.4%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Northeast
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York
 

 

 
360,880

 
9,338

 
1
 
360,880

 

 
9,338

 
3.4%
New Jersey
 
245,803

 
5,543

 

 

 
2
 
245,803

 
2,251

 
7,794

 
2.9%
Virginia
 
398,349

 
7,211

 

 

 
1
 
398,349

 
294

 
7,505

 
2.8%
Connecticut
 
205,729

 
3,247

 

 

 
1
 
205,729

 
1,034

 
4,281

 
1.6%
New Hampshire
 
78,892

 
1,141

 

 

 
1
 
78,892

 
168

 
1,309

 
0.5%
Total Northeast
 
928,773

 
17,142

 
360,880

 
9,338

 
6
 
1,289,653

 
3,747

 
30,227

 
11.2%
 
 
15,466,565

 
$
234,018

 
1,335,259

 
$
17,169

 
119
 
16,801,824

 
$
19,846

 
$
271,033

 
100.0%
____________________
1
Owned GLA/NRA represents gross leasable area or net leasable area owned by the Company. It also excludes the square footage of Union Station Parking Garage.
2
Represents the eight redevelopment and two development projects not in the retail operating portfolio.


p. 30
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

OPERATING RETAIL PORTFOLIO SUMMARY REPORT
image44.jpg



As of September 30, 2017
Property1
Location (MSA)
Year
Built/
Renovated
Owned GLA2
 
Leased %
ABR
per SqFt
Major Owned Tenants
Major
Non-owned Tenants
Total
Anchors
Shops
 
Total
Anchors
Shops
Alabama
 
 
 
 
 
 
 
 
 
 
 
 
Trussville Promenade
Birmingham
1999
458,763

376,010

82,753

 
95.4
%
100.0
%
74.3
%
$
9.69

Wal-Mart, Regal Cinemas, Marshalls, Big Lots, PetSmart, Dollar Tree, Ross Dress for Less
Kohl's, Sam's Club
Arizona
 
 
 
 
 
 
 
 
 
 
 
 
The Corner
Tucson
2008
79,902

55,883

24,019

 
100.0
%
100.0
%
100.0
%
29.32

Nordstrom Rack, Total Wine & More
Home Depot
Connecticut
 
 
 
 
 
 
 
 
 
 
 
 
Killingly Commons3
Killingly
2010
205,729

148,250

57,479

 
96.9
%
100.0
%
88.9
%
16.28

TJ Maxx, Bed Bath & Beyond, Michaels, Petco, Staples, Stop & Shop Supermarket, Lowe's Home Improvement Center
Target
Florida
 
 
 
 
 
 
 
 
 
 
 
 
12th Street Plaza
Vero Beach
1978/2003
135,016

121,376

13,640

 
100.0
%
100.0
%
100.0
%
10.01

Publix, Stein Mart, Tuesday Morning, Sunshine Furniture, Planet Fitness
 
Bayport Commons
Tampa
2008
97,163

71,540

25,623

 
62.8
%
58.0
%
76.3
%
18.39

PetSmart, Michaels
Target
Bolton Plaza
Jacksonville
1986/2014
154,555

136,195

18,360

 
100.0
%
100.0
%
100.0
%
9.76

LA Fitness, Academy Sports, Marshalls, Aldi
 
Centre Point Commons
Bradenton
2007
119,275

93,574

25,701

 
100.0
%
100.0
%
100.0
%
17.49

Best Buy, Dick's Sporting Goods, Office Depot
Lowe's Home Improvement Center
Cobblestone Plaza
Ft. Lauderdale
2011
133,220

68,169

65,051

 
84.0
%
70.4
%
98.3
%
30.47

Whole Foods, Party City
 
Colonial Square
Fort Myers
2010
186,609

150,505

36,104

 
69.7
%
71.9
%
60.6
%
13.04

Around the Clock Fitness, Dollar Tree, Hobby Lobby, PetSmart, Kohl's

Delray Marketplace3
Miami
2013
260,146

118,136

142,010

 
96.6
%
100.0
%
93.7
%
26.17

Frank Theatres, Publix, Jos. A. Bank, Carl's Patio, Chicos, Charming Charlie, Ann Taylor, Burt & Max's
 
Estero Town Commons
Naples
2006
25,696


25,696

 
80.4
%
%
80.4
%
14.68

Lowe's Home Improvement Center, Dollar Tree
 
Gainesville Plaza
Gainesville
1970/2015
162,243

125,162

37,081

 
92.3
%
100.0
%
66.3
%
9.45

Ross Dress for Less, Burlington, 2nd and Charles, Save a Lot
 
Hunter's Creek Promenade
Orlando
1994
119,729

55,999

63,730

 
100.0
%
100.0
%
100.0
%
14.55

Publix
 
Indian River Square
Vero Beach
1997/2004
142,592

109,000

33,592

 
92.5
%
100.0
%
68.2
%
11.40

Beall's, Office Depot, Dollar Tree
Target
International Speedway Square
Daytona
1999/2013
233,424

203,405

30,019

 
98.3
%
100.0
%
86.7
%
11.45

Bed, Bath & Beyond, Stein Mart, Old Navy, Staples, Michaels, Dick’s Sporting Goods, Total Wine & More, Shoe Carnival
 
Kings Lake Square
Naples
1986/2014
88,690

45,600

43,090

 
94.0
%
100.0
%
87.7
%
18.33

Publix
 
Lake City Commons
Lake City
2008
65,723

45,600

20,123

 
100.0
%
100.0
%
100.0
%
14.69

Publix
 
Lake City Commons - Phase II
Lake City
2011
16,291

12,131

4,160

 
100.0
%
100.0
%
100.0
%
15.62

PetSmart
 
Lake Mary Plaza
Orlando
2009
21,370

14,880

6,490

 
100.0
%
100.0
%
100.0
%
37.38

Walgreens
 
Lakewood Promenade
Jacksonville
1948/1998
196,654

77,840

118,814

 
85.9
%
100.0
%
76.6
%
12.34

SteinMart, Winn Dixie
 
Lithia Crossing
Tampa
2003/2013
90,505

53,547

36,958

 
100.0
%
100.0
%
100.0
%
15.23

Stein Mart, The Fresh Market
 
Miramar Square
Ft. Lauderdale
2008
224,737

137,505

87,232

 
84.8
%
85.5
%
83.9
%
16.09

Kohl's, Miami Children's Hospital, Dollar General
 
Northdale Promenade
Tampa
1985/2017
173,862

118,269

55,593


99.4
%
100.0
%
98.1
%
12.76

TJ Maxx, Tuesday Morning, Ulta Beauty
Winn Dixie
Palm Coast Landing at Town Square
Palm Coast
2010
168,352

100,822

67,530

 
98.6
%
100.0
%
96.6
%
18.87

Michaels, PetSmart, Ross Dress for Less, TJ Maxx, Ulta Beauty
Target
Pine Ridge Crossing
Naples
1993
105,962

66,435

39,527

 
98.0
%
100.0
%
94.5
%
17.64

Publix, Ulta Beauty
Beall's, Target

See footnotes on page 35





p. 31
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

OPERATING RETAIL PORTFOLIO SUMMARY REPORT (CONTINUED)
image44.jpg



As of September 30, 2017
Property1
Location (MSA)
Year
Built/
Renovated
Owned GLA2
 
Leased %
ABR
per
Sq. ft.
Major Owned Tenants
Major
Non-owned Tenants
Total
Anchors
Shops
 
Total
Anchors
Shops
Pleasant Hill Commons
Orlando
2008
70,643

45,600

25,043

 
98.3
%
100.0
%
95.2
%
$
15.11

Publix
 
Riverchase Plaza
Naples
1991/2001
78,291

48,890

29,401

 
100.0
%
100.0
%
100.0
%
16.24

Publix
 
Saxon Crossing
Orange City
2009
119,894

95,304

24,590

 
94.2
%
100.0
%
71.9
%
14.98

Hobby Lobby, LA Fitness
Lowe's Home Improvement Center, Target
Shoppes of Eastwood
Orlando
1997
69,062

51,512

17,550

 
100.0
%
100.0
%
100.0
%
13.60

Publix
 
Shops at Eagle Creek
Naples
1983/2013
70,768

50,187

20,581

 
98.4
%
100.0
%
94.3
%
15.73

The Fresh Market, Staples
Lowe's Home Improvement Center
Tamiami Crossing
Naples
2016
121,705

121,705


 
100.0
%
100.0
%
%
12.51

Aldi, Marshalls, Michaels, PetSmart, Ross Dress for Less, Stein Mart, Ulta Beauty
Wal-Mart
Tarpon Bay Plaza
Naples
2007
82,528

60,139

22,389

 
96.6
%
100.0
%
87.5
%
17.79

World Market, Staples, PetSmart
Target
Temple Terrace
Temple Terrace
2012
90,328

58,798

31,530

 
92.9
%
100.0
%
79.6
%
10.53

Winn-Dixie, United Parcel Service
 
The Landing at Tradition
Port St. Lucie
2007
360,974

290,396

70,578

 
82.0
%
86.1
%
64.8
%
15.73

TJ Maxx, Ulta Salon, Babies "R" Us, Bed Bath & Beyond, LA Fitness, Michaels, Office Max, Old Navy, PetSmart, Pier 1, DSW
Target
The Shops at Julington Creek
Jacksonville
2011
40,219

21,038

19,181

 
100.0
%
100.0
%
100.0
%
19.43

The Fresh Market
 
Tradition Village Center
Port St. Lucie
2006
84,084

45,600

38,484

 
95.5
%
100.0
%
90.2
%
16.99

Publix
 
Waterford Lakes Village
Orlando
1997
77,948

51,703

26,245

 
98.4
%
100.0
%
95.2
%
13.04

Winn-Dixie
 
Georgia
 
 
 
 
 
 
 
 
 
 
 
 
Mullins Crossing
Evans
2005
251,757

205,716

46,041

 
98.1
%
100.0
%
89.5
%
12.61

Ross Dress for Less, Babies "R" Us, Kohls, La-Z Boy, Marshalls, Office Max, Petco
Target
Publix at Acworth
Atlanta
1996
69,628

37,888

31,740

 
98.3
%
100.0
%
96.2
%
12.45

Publix
 
The Centre at Panola
Atlanta
2001
73,079

51,674

21,405

 
100.0
%
100.0
%
100.0
%
13.02

Publix
 
Illinois
 
 
 
 
 
 
 
 
 
 
 
 
Fox Lake Crossing
Chicago
2002
99,132

65,977

33,155

 
90.7
%
100.0
%
72.5
%
13.34

Dominick's Finer Foods, Dollar Tree
 
Naperville Marketplace
Chicago
2008
83,743

61,683

22,060

 
98.1
%
100.0
%
92.6
%
13.63

TJ Maxx, PetSmart,
Caputo's
South Elgin Commons
Chicago
2011
128,000

128,000


 
100.0
%
100.0
%
%
14.55

LA Fitness, Ross Dress for Less, Toys "R" Us/Babies "R" Us
Target
Indiana
 
 
 
 
 
 
 
 
 
 
 
 
54th & College
Indianapolis
2008



 
%
%
%
0.00

The Fresh Market (ground lease)
 
Beacon Hill
Crown Point
2006
56,820

11,043

45,777

 
98.0
%
100.0
%
97.5
%
16.00

Anytime Fitness
Strack & Van Till, Walgreens
Bell Oaks Centre
Newburgh
2008
94,958

74,122

20,836

 
100.0
%
100.0
%
100.0
%
12.03

Schnuck's Market
 
Boulevard Crossing
Kokomo
2004
124,631

74,440

50,191

 
95.7
%
100.0
%
89.4
%
14.89

Petco, TJ Maxx, Ulta Beauty, Shoe Carnival
Kohl's
Bridgewater Marketplace
Indianapolis
2008
25,975


25,975

 
86.8
%
%
86.8
%
20.58


Walgreens
Castleton Crossing
Indianapolis
1975/2012
286,377

247,710

38,667

 
100.0
%
100.0
%
100.0
%
11.85

K&G Menswear, Value City, TJ Maxx/Home Goods, Shoe Carnival, Dollar Tree, Burlington
 
Cool Creek Commons
Indianapolis
2005
124,272

53,600

70,672

 
93.0
%
100.0
%
87.8
%
18.07

The Fresh Market, Stein Mart
 
Depauw University Bookstore and Café
Greencastle
2012
11,974


11,974

 
100.0
%
%
100.0
%
9.17

Folletts, Starbucks
 
Eddy Street Commons at Notre Dame
South Bend
2009
87,991

20,154

67,837

 
96.0
%
100.0
%
94.8
%
25.29

Hammes Bookstore, Urban Outfitters
 
Geist Pavilion
Indianapolis
2006
63,910

29,700

34,210

 
96.2
%
100.0
%
92.8
%
16.90

Goodwill, Ace Hardware
 
Glendale Town Center
Indianapolis
1958/2008
393,002

329,546

63,456

 
97.8
%
100.0
%
86.6
%
7.30

Macy’s, Landmark Theaters, Staples, Indianapolis Library, Nexus Academy of Indianapolis
Lowe's Home Improvement Center, Target, Walgreens
Greyhound Commons
Indianapolis
2005
9,152


9,152

 
100.0
%
%
100.0
%
13.60

 
Lowe's Home Improvement Center
Lima Marketplace
Fort Wayne
2008
100,461

71,521

28,940

 
91.3
%
100.0
%
69.8
%
14.42

Aldi, Dollar Tree, Office Depot, PetSmart
Wal-Mart
See footnotes on page 35

p. 32
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

OPERATING RETAIL PORTFOLIO SUMMARY REPORT (CONTINUED)
image44.jpg



As of September 30, 2017
Property1
Location (MSA)
Year
Built/
Renovated
Owned GLA2
 
Leased %
ABR
per Sqft
Major Owned Tenants
Major
Non-owned Tenants
Total
Anchors
Shops
 
Total
Anchors
Shops
Rangeline Crossing
Indianapolis
1986/2013
99,238

47,962

51,276

 
100.0
%
100.0
%
100.0
%
$
21.97

Earth Fare, Walgreens
 
Rivers Edge
Indianapolis
2011
150,428

117,890

32,538

 
100.0
%
100.0
%
100.0
%
21.77

Nordstrom Rack, The Container Store, Arhaus Furniture, Bicycle Garage of Indy, Buy Buy Baby, J Crew Mercantile
 
Stoney Creek Commons
Indianapolis
2000/2013
84,330

84,330


 
64.1
%
64.1
%
%
13.44

Goodwill, LA Fitness
Lowe's Home Improvement Center
Traders Point I
Indianapolis
2005
279,646

238,721

40,925

 
74.7
%
71.6
%
93.0
%
14.99

Dick's Sporting Goods, AMC Theatre, Bed, Bath & Beyond, Michaels, Old Navy, PetSmart, Books-A-Million
 
Traders Point II
Indianapolis
2005
45,977


45,977

 
92.2
%
%
92.2
%
26.38

 
 
Whitehall Pike
Bloomington
1999
128,997

128,997


 
100.0
%
100.0
%
%
7.86

Lowe's Home Improvement Center
 
Nevada
 
 
 
 
 
 
 
 
 
 
 
 
Cannery Corner3
Las Vegas
2008
30,738


30,738

 
94.4
%
%
94.4
%
36.14

Chipotle, Five Guys
Lowe's Home Improvement Center, Sam's Club
Centennial Center3
Las Vegas
2002
334,396

158,196

176,200

 
88.3
%
85.2
%
91.0
%
25.05

Wal-Mart, Sam's Club, Ross Dress for Less, Big Lots, Famous Footwear, Michaels, Party City, Petco, Rhapsodielle, Home Depot
 
Centennial Gateway3
Las Vegas
2005
193,085

139,913

53,172

 
94.3
%
92.1
%
100.0
%
24.18

24 Hour Fitness, Sportsman's Warehouse, Walgreens, Trader Joe's
 
Eastern Beltway Center3
Las Vegas
1998/2006
162,456

83,982

78,474

 
97.4
%
100.0
%
94.6
%
23.93

Office Max, Petco, Ross Dress for Less, Sam's Club, Skechers, Wal-Mart
Home Depot
Eastgate Plaza3
Las Vegas
2002
96,583

53,019

43,564

 
70.2
%
61.3
%
81.1
%
25.44

99 Cent Only Store, Party City
Wal-Mart
Lowe's Plaza3
Las Vegas
2007
30,210


30,210

 
60.0
%
%
60.0
%
30.19

Anytime Fitness, Starbucks
Lowe's Home Improvement Center
New Hampshire
 
 
 
 
 
 
 
 
 
 
 
 
Merrimack Village Center
Merrimack
2007
78,892

54,000

24,892

 
100.0
%
100.0
%
100.0
%
14.46

Supervalue (Shaw's)
 
New Jersey
 
 
 
 
 
 
 
 
 
 
 
 
Bayonne Crossing
Bayonne
2011
106,198

52,219

53,979

 
95.8
%
100.0
%
91.8
%
28.60

Michaels, New York Sports Club, Lowe's Home Improvement Center, Wal-Mart
 
Livingston Shopping Center
Newark
1997
139,605

133,125

6,480

 
95.4
%
100.0
%
%
19.77

Cost Plus, Buy Buy Baby, Nordstrom Rack, DSW, TJ Maxx, Ulta
 
North Carolina
 
 
 
 
 
 
 
 
 
 
 
 
Holly Springs Towne Center - Phase I
Raleigh
2013
207,527

109,233

98,294

 
92.2
%
100.0
%
83.5
%
16.61

Dick's Sporting Goods, Marshalls, Petco, Ulta Beauty, Michaels
Target
Holly Springs Towne Center - Phase II
Raleigh
2016
122,009

88,843

33,166

 
100.0
%
100.0
%
100.0
%
18.99

Bed Bath & Beyond, DSW, AMC Theatre (Carmike)
 
Memorial Commons
Goldsboro
2008
111,022

73,876

37,146

 
100.0
%
100.0
%
100.0
%
13.25

Kroger (Harris Teeter), Office Depot
 
Northcrest Shopping Center
Charlotte
2008
133,674

65,576

68,098

 
95.1
%
100.0
%
90.5
%
22.45

REI Co-Op, David's Bridal, Dollar Tree, Old Navy, Five Below
Target
Oleander Place
Wilmington
2012
45,530

30,144

15,386

 
100.0
%
100.0
%
100.0
%
17.03

Whole Foods
 
Parkside Town Commons - Phase I
Raleigh
2015
55,390

22,500

32,890

 
100.0
%
100.0
%
100.0
%
24.24

Kroger (Harris Teeter), Petco, Guitar Center
Target
Parkside Town Commons - Phase II
Raleigh
2017
291,682

191,988

99,694


95.4
%
100.0
%
86.5
%
19.40

Frank Theatres, Golf Galaxy, Hobby Lobby, Stein Mart, Chuy's, Starbucks, Panera Bread

Perimeter Woods
Charlotte
2008
126,155

105,262

20,893


100.0
%
100.0
%
100.0
%
20.97

Best Buy, Off Broadway Shoes, Office Max, PetSmart, Lowe's Home Improvement Center

Toringdon Market
Charlotte
2004
60,407

26,072

34,335

 
100.0
%
100.0
%
100.0
%
21.37

Earth Fare
 
See footnotes on page 35

p. 33
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

OPERATING RETAIL PORTFOLIO SUMMARY REPORT (CONTINUED)
image44.jpg



As of September 30, 2017
Property1
Location (MSA)
Year
Built/
Renovated
Owned GLA2
 
Leased %
Major Owned Tenants
Major
Non-owned Tenants
Total
Anchors
Shops
 
Total
Anchors
Shops
ABR
per Sqft
Ohio
 
 
 
 
 
 
 
 
 
 
 
 
Eastgate Pavilion
Cincinnati
1995
236,230

231,730

4,500

 
100.0
%
100.0
%
100.0
%
$
9.15

Best Buy, Dick's Sporting Goods, Value City Furniture, Petsmart, DSW, Bed Bath & Beyond
 
Oklahoma
 
 
 
 
 
 
 
 
 
 
 
 
Belle Isle Station
Oklahoma City
2000
164,407

92,783

71,624

 
98.5
%
100.0
%
96.5
%
17.50

Shoe Carnival, Old Navy, Ross Stores, Nordstrom Rack, Babies "R" Us, Ulta Salon
Wal-Mart
Shops at Moore
Moore
2010
260,592

187,916

72,676

 
96.0
%
100.0
%
85.5
%
12.15

Bed Bath and Beyond, Best Buy, Hobby Lobby, Office Depot, PetSmart, Ross Dress for Less
JC Penney
Silver Springs Pointe
Oklahoma City
2001
48,474

20,515

27,959

 
74.9
%
100.0
%
56.6
%
15.94

Kohls, Office Depot
Wal-Mart, Sam's Club, Home Depot
University Town Center
Norman
2009
158,375

77,097

81,278

 
93.8
%
100.0
%
87.9
%
18.04

Office Depot, Petco, TJ Maxx, Ulta Beauty
Target
University Town Center
Phase II
Norman
2012
190,487

133,546

56,941

 
93.0
%
100.0
%
76.7
%
12.68

Academy Sports, DSW, Home Goods, Michaels, Kohls, Guitar Center
 
South Carolina
 
 
 
 
 
 
 
 
 
 
 
 
Hitchcock Plaza
Augusta-Aiken
2006
252,370

214,480

37,890

 
90.8
%
89.7
%
97.4
%
10.47

TJ Maxx, Ross Dress for Less, Academy Sports, Bed Bath and Beyond, Farmers Home Furniture, Old Navy, Petco
 
Publix at Woodruff
Greenville
1997
68,055

47,955

20,100

 
100.0
%
100.0
%
100.0
%
11.15

Publix
 
Shoppes at Plaza Green
Greenville
2000
194,807

172,136

22,671

 
94.7
%
94.1
%
100.0
%
13.23

Bed Bath & Beyond, Christmas Tree Shops, Sears, Party City, Shoe Carnival, AC Moore, Old Navy
 
Tennessee
 
 
 
 
 
 
 
 
 
 
 
 
Cool Springs Market
Nashville
1995
230,980

172,712

58,268

 
100.0
%
100.0
%
100.0
%
15.71

Dick's Sporting Goods, Marshalls, Buy Buy Baby, DSW, Staples, Jo-Ann Fabric
Kroger
Hamilton Crossing - Phase II & III
Alcoa
2008
175,464

135,737

39,727

 
95.4
%
100.0
%
79.9
%
14.95

Dicks Sporting Goods, Michaels, Old Navy, PetSmart, Ross Dress for Less
 
Texas4
 
 
 
 
 
 
 
 
 
 
 
 
Chapel Hill Shopping Center
Fort Worth
2001
126,989

43,450

83,539

 
94.6
%
100.0
%
91.7
%
25.05

H-E-B Grocery, The Container Store, Cost Plus World Market
 
Colleyville Downs
Dallas
2014
190,895

142,073

48,822

 
99.3
%
100.0
%
97.1
%
13.11

Whole Foods, Westlake Hardware, Vineyard's Antique Mall, Goody Goody Liquor, Petco
 
Kingwood Commons
Houston
1999
164,366

74,836

89,530

 
100.0
%
100.0
%
100.0
%
19.89

Randall's Food and Drug, Petco, Chico's, Talbots, Ann Taylor, Jos. A. Bank
 
Market Street Village/
Pipeline Point
Fort Worth
1970/2011
156,621

136,742

19,879

 
100.0
%
100.0
%
100.0
%
13.06

Jo-Ann Fabric, Ross, Office Depot, Buy Buy Baby, Party City
 
Plaza at Cedar Hill
Dallas
2000/2010
302,458

244,065

58,393

 
99.6
%
100.0
%
98.1
%
13.28

Sprouts Farmers Market, DSW, Ross Dress for Less, Hobby Lobby, Office Max, Marshalls, Toys “R” Us/Babies “R” Us, Home Goods
 
Plaza Volente
Austin
2004
156,308

105,000

51,308

 
98.3
%
100.0
%
94.9
%
17.30

H-E-B Grocery
 
Portofino Shopping Center
Houston
1999/2010
386,647

218,909

167,738

 
95.5
%
100.0
%
82.0
%
19.68

DSW, Michaels, PGA Superstore, SteinMart, PetSmart, Old Navy, TJ Maxx, Nordstrom Rack
Sam's Club
Sunland Towne Centre
El Paso
1996/2014
306,454

265,037

41,417

 
98.9
%
100.0
%
91.7
%
11.99

Sprouts Farmers Market, PetSmart, Ross, Kmart, Bed Bath & Beyond, Specs Fine Wines
 

See footnotes on page 35

p. 34
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

OPERATING RETAIL PORTFOLIO SUMMARY REPORT (CONTINUED)
image44.jpg



As of September 30, 2017
Property1
Location (MSA)
Year
Built/
Renovated
Owned GLA2
 
Leased %
ABR
per Sqft
 Major Owned Tenants
Major
Non-owned Tenants
Total
Anchors
Shops
 
Total
Anchors
Shops
Waxahachie Crossing
Waxahachie
2010
97,127

72,191

24,936

 
100.0
%
100.0
%
100.0
%
$
14.76

Best Buy, PetSmart, Ross Dress for Less
Home Depot, JC Penney
Westside Market
Dallas
2013
93,377

70,000

23,377

 
100.0
%
100.0
%
100.0
%
16.13

Randall's Tom Thumb
 
Utah
 
 
 
 
 
 
 
 
 
 
 
 
Draper Crossing
Salt Lake City
2012
164,150

115,916

48,234

 
95.0
%
100.0
%
82.8
%
15.14

TJ Maxx, Dollar Tree, Downeast Home, Kroger (Smith's)
 
Draper Peaks
Salt Lake City
2012
227,494

101,464

126,030

 
95.2
%
100.0
%
91.4
%
19.88

Michaels, Office Depot, Petco, Quilted Bear, Ross Dress for Less
Kohl's
Virginia
 
 
 
 
 
 
 
 
 
 
Landstown Commons
Virginia Beach
2007
398,349

207,300

191,049

 
94.2
%
100.0
%
88.0
%
19.21

Bed Bath & Beyond, Best Buy, Books-A-Million, Five Below, Office Max, Pestmart, Rack Room, Ulta, Walgreens, Kirkland's, AC Moore, Ross Dress for Less
Kohl's
Wisconsin
 
 
 
 
 
 
 
 
 
 
 
 
Village at Bay Park
Ashwaubenon
2005
82,238

23,878

58,360

 
88.5
%
100.0
%
83.7
%
16.05

DSW, JC Penney
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Total
 
 
14,965,403

10,222,795

4,742,608

 
94.5
%
96.7
%
89.7
%
$
16.01

 
 
 Total Including Development and 3-R Properties not in the Operating Portfolio - see pages 26-28
 
 
$
16.32

 
 


____________________
1
All properties are wholly owned, except as indicated. Unless otherwise noted, each property is owned in fee simple by the Company.
2
Percentage of Owned GLA Leased reflects Owned GLA/NRA leased as of September 30, 2017, except for Greyhound Commons and 54th & College.
3
See Joint Venture Summary on page 14.
4
Burlington has been removed from the operating portfolio as it is a non-core asset expected to be held through term of the ground lease of the land underlying the property.






p. 35
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

OPERATING OFFICE PROPERTIES AND OTHER
image44.jpg



As of September 30, 2017

($ in thousands, except per square foot data)



Property
MSA
Year Built/
Renovated
Acquired,
Redeveloped
or Developed
Owned
NRA
Percentage
Of Owned
NRA
Leased
Annualized
Base Rent
1
Percentage
of
Annualized
Office and Other
Base Rent
Base Rent
Per Leased
Sq. Ft.
 
Major Tenants
Office Properties
 
 
 
 
 
 
 
 
 
 
Thirty South Meridian2
Indianapolis
1905/2002
Redeveloped
287,928

99.0
%
$
5,218

68.2
%
$
18.31

 
Indiana Supreme Court, Stifel, Kite Realty Group, Lumina Foundation
Union Station Parking Garage3
Indianapolis
1986
Acquired
N/A

N/A

N/A

N/A

N/A

 
Denison Parking
Stand-alone Office Components of Retail Properties
 
 
 
 
 
 
 
Eddy Street Office (part of Eddy Street Commons)4
South Bend
2009
Developed
81,628

100.0
%
1,256

16.4
%
15.38

 
University of Notre Dame Offices
Tradition Village Office (part of Tradition Village Square)
Port St. Lucie
2006
Acquired
24,206

87.4
%
593
7.7
%
28.01

 
 
Total Office Properties
 
 
 
393,762

98.5
%
$
7,066

92.3
%
$
18.22

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lessee of Land on Short Term Renewal
 
 
 
 
 
 
 
 
 
Burlington
San Antonio
1992/2000
Acquired
107,400

100.0
%
$
591

7.7
%
$
5.50

 
Burlington
 
 
 
 
107,400

100.0
%
$
591

7.7
%
$
5.50

 
 
 
 
 
 
 
 
 
 
 
 
 
Total Office and Other
 
 
 
501,162

98.8
%
$
7,657

100.0
%
$
15.46

 
 
 
 
 
 
 
 
 
 
 
 
 
Multi-Family
 
 
 
 
 
 
 
 
 
 
Lake Lofts at Deerwood5
Jacksonville
2017
Developed




 
 
130 Apartment Units

____________________
1
Annualized Base Rent represents the monthly contractual rent for September 2017 for each applicable property, multiplied by 12.
2
Annualized Base Rent includes $793,117 from the Company and subsidiaries as of September 30, 2017, which is eliminated for purposes of our consolidated financial statement presentation.
3
The garage is managed by a third party.
4
The Company also owns the Eddy Street Commons retail shopping center in South Bend, Indiana, along with a parking garage that serves a hotel and the office and retail components of the property.
5
Lake Lofts at Deerwood has 32 leases executed as of September 30, 2017.

p. 36
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

COMPONENTS OF NET ASSET VALUE
pressrellogo10.jpg



As of September 30, 2017

($ in thousands)


 
 
 
 
 
 
 
Cash Net Operating Income (NOI)
 
Supplemental Page No.:
 
Other Assets
 
Supplemental Page No.:
GAAP property NOI (incl. Ground Lease Revenue)
$
64,453

13
 
Cash and cash equivalents
$
32,465

7
Below-market lease intangibles, net
(715
)
10
 
Tenant and other receivables (net of SLR)
22,315

7
Straight-line rent
(1,173
)
10
 
Restricted cash and escrow deposits
8,878

7
Other property related revenue
(1,252
)
13
 
Prepaid and other assets1
10,310

7
Ground lease ("GL") revenue
(4,962
)
13, footnote 1
 
Undeveloped land in operating portfolio
21,000

10, footnote 4
Consolidated Cash Property NOI (excl. GL)
$
56,352

 
 
Land held for development
31,142

10
Annualized Consolidated Cash Property NOI (excl. ground leases)
$
225,406

 
 
CIP not in under construction development/redevelopment2
50,316

26
 
 
 
 
Total Other Asset Value
$
176,426

 
 
 
 
 
 
 
 
Adjustments To Normalize Annualized Cash NOI
 
 
 
Liabilities
 
 
Total projected remaining development / transitional redevelopment cash NOI 3
8,171

26
 
Mortgage and other indebtedness
$
(1,681,676
)
7
Unconsolidated EBITDA
137

11
 
Accounts payable and accrued expenses
(101,574
)
7
Pro forma adjustments4


 
Other liabilities5
(15,903
)
7, 10
General and administrative expense allocable to property management activities included in property expenses ($1,300 in Q3)
5,200

13, footnote 4
 
Debt premium and issuance costs, net
(1,214
)
11
Total Adjustments
13,508

 
 
Non-controlling redeemable joint venture interest
(32,531
)
14
 
 
 
 
Projected remaining under construction development/redevelopment6
(35,604
)
26, 27
Annualized Normalized Portfolio Cash NOI (excl. Ground Leases)
$
238,914

 
 
Total Liabilities
$
(1,868,502
)
 
Annualized Ground Lease NOI
19,846

 
 
 
 
 
Total Annualized Portfolio Cash NOI
$
258,760

 
 
Common shares and units outstanding
85,580,898

11
 
 
 
 
 
 
 

____________________
1
Excludes the Company's $2.5 million investment in an unconsolidated joint venture.
2
Includes CIP amounts for Lake Lofts at Deerwood, Holly Springs Town Center - Phase III, Eddy Street Hotel and miscellaneous tenant improvements and small projects.
3
Excludes the projected cash NOI and related cost from the 3-R opportunities outlined on page 28.
4
Current quarter cash NOI, annualized, for properties sold during the quarter.
5
Deferred revenue and other liabilities of $101 million less mark-to-market lease liability of $85 million.
6
Assumes mid-point of projected cost range ($75.8 million) for 3-R projects under construction.








p. 37
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17

EARNINGS GUIDANCE - 2017
image44.jpg



 
 
Original 2017
Guidance1
Updated Q2 2017
Guidance
Updated Q3 2017
Guidance
FFO per diluted share, as defined by NAREIT
$2.00 - $2.06
$2.01 - $2.05
$2.03 - $2.05
 
 
 
 
Key Assumptions
 
 
 
Disposition of operating properties
$45 million - $55 million
$78 million
$78 million
Same property NOI growth2
2.0% - 3.0%
2.5% - 3.0%
2.8% - 3.0%
Percent leased at year-end - Retail Portfolio
95.0% - 96.0%
95.0% - 95.5%
94.5% - 95.0%
General and administrative expenses
$20 million - $22 million
$21 million - $22 million
$21 million - $22 million
GAAP interest expense
$66 million - $68 million
$66 million - $67 million
$66 million - $67 million
Gain on sale of non-depreciable assets included in other property related revenue
$1 million - $3 million
$5 million - $5.5 million
$5 million - $5.5 million
Non-cash below market lease amortization
$2.5 million - $3.5 million
$2.5 million - $3.5 million
$2.5 million - $3.5 million

____________________
1
The Company’s 2017 guidance is based on a number of factors, many of which are outside the Company’s control and all of which are subject to change.  The Company may change its guidance during the year if actual or anticipated results vary from these assumptions, although the Company undertakes no obligation to do so.
2
As defined on same property net operating income table on page 12.
 
 



p. 38
Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/17
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%%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !111 M0 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% M!1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 % M%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 44 M44 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !111 M0 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% M!1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 % M%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 44 M44 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !111 L0 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 ?_]D! end