8-K

 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): February 18, 2020

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):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol
Common Shares, $0.01 par value per share	KRG	New York Stock Exchange

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 ☐

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. ☐

Item 2.02. Results of Operations and Financial Condition.

On February 18, 2020, Kite Realty Group Trust (the “Company”) announced its consolidated financial results for the quarter ended December 31, 2019. 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 Fourth Quarter 2019 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 February 18, 2020
99.2	Kite Realty Group Trust Fourth Quarter 2019 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: February 18, 2020	By:	/s/ Heath R. Fear
		Heath R. Fear
		Executive Vice President and
		Chief Financial Officer

EXHIBIT INDEX

Exhibit	Document
99.1	Kite Realty Group Trust Press Release dated February 18, 2020
99.2	Kite Realty Group Trust Fourth Quarter 2019 Supplemental Disclosure

EX-99.1

Exhibit 99.1

PRESS RELEASE

Contact Information: Kite Realty Group Trust

Jason Colton

SVP, Capital Markets & Investor Relations

317.713.2762

jcolton@kiterealty.com

Kite Realty Group Trust Reports Strong 2019 Operating Results and Provides 2020 Guidance

Indianapolis, Indiana, February 18, 2020 - Kite Realty Group Trust (NYSE:KRG) (“KRG”) reported today its operating results for the fourth quarter ended December 31, 2019.

“2019 was a transformative year for KRG. We enhanced the quality of our portfolio and reduced leverage to an all-time low,” said John A. Kite, Chairman and CEO. “KRG remains a top-tier operator by delivering strong leasing results, with a sector-leading small shop leased percentage of 92.5% in the fourth quarter. As we embark on a new decade with an improved portfolio, we are focused on capitalizing on growth opportunities and maximizing FFO.”

Fourth Quarter Financial Results

▪ Realized net income attributable to common shareholders of $15.3 million, or $0.18 per common share, compared to net loss of $31.2 million, or $0.37 per common share, for the same period in 2018.

▪ Generated NAREIT Funds From Operations of the Operating Partnership (FFO) of $32.8 million, or $0.38 per diluted common share, and FFO as adjusted of $34.7 million, or $0.40 per diluted common share.

▪ Increased Same-Property Net Operating Income (NOI) by 3.2%.

Fourth Quarter Portfolio Operations

▪ Executed 56 new and renewal leases representing 301,711 square feet.

▪ GAAP leasing spreads of 52.6% (41.4% cash basis) on 16 comparable new leases, 13.4% (8.0% cash basis) on 29 comparable renewals, and 27.1% (19.4% cash basis) on a blended basis.

▪ Annualized base rent (ABR) for the operating retail portfolio was $17.83, a 6% increase year-over-year.

▪ Retail leased percentage was 96.1%, an increase of 150 basis points year-over-year.

▪ Anchor leased percentage was 97.8%, an increase of 160 basis points year-over-year.

▪ Small shop leased percentage was 92.5%, an increase of 130 basis points year-over-year.

Full Year Highlights

▪ Realized net loss attributable to common shareholders of $0.5 million, or $0.01 per common share, compared to net loss of $46.6 million for 2018. Results for 2019 included a $37.7 million impairment charge related to certain properties.

▪ Generated NAREIT FFO of $131.4 million, or $1.52 per diluted common share, and FFO as adjusted of $143.0 million, or $1.66 per diluted common share.

▪ Increased Same-Property NOI by 2.2%.

▪ Executed 302 new and renewal leases representing over 2 million square feet.

▪ GAAP leasing spreads of 44.8% (35.5% cash basis) on 64 comparable new leases, 7.5% (3.3% cash basis) on 178 comparable renewals, and 14.5% (9.2% cash basis) on a blended basis.

1

2019 Transactional Activity

▪ Sold twenty-three non-core assets for a total of $544 million during 2019.

▪ Acquired two assets for a combined $59 million during 2019.

2019 Capital Markets Activity

▪ Paid down $391 million in loans at a weighted average interest rate of 4.48%.

Balance Sheet

As of December 31, 2019, KRG’s net-debt-to-EBITDA ratio was 5.9x, down from 6.7x as of December 31, 2018. KRG has zero debt maturing through 2021 and zero drawn on its $600 million line of credit.

Dividends

On February 12^th, KRG’s Board of Trustees declared a dividend of $0.3175 per common share. The dividend will be payable on or about April 3, 2020, to shareholders of record as of March 27, 2020.

ESG Initiatives

KRG recognizes the importance that Environmental, Social, and Governance (ESG) initiatives play in generating sustainable long-term returns. To assist in the Company’s efforts to enhance its ESG disclosure and to better incorporate ESG considerations into its operations, KRG announces the creation of an ESG Task Force headed by CEO John A. Kite. The Task Force includes representatives of the Company’s asset management, human capital, legal, marketing, and investor relations groups and will report regularly to the Board of Trustees on its activities. The Company expects to publish more information on the Task Force’s efforts shortly.

2020 Earnings Guidance

KRG is providing 2020 guidance for net income of $0.13 to $0.17 per share and NAREIT FFO $1.48 to $1.52 per share. The components of the FFO guidance are as follows:

	2020 Guidance
Net Income		$0.13 - $0.17
NAREIT FFO	$1.48 - $1.52
Same-Property NOI Growth (excluding redevelopments)	1.00% - 2.00%
Bad Debt Assumption (in addition to known vacancies and any declared or imminent bankruptcies)	90bps of Same-Property Revenues

Net Income to NAREIT FFO Reconciliation
	Low End	High End
Net Income Guidance	$0.13	$0.17
Depreciation	1.35	1.35
NAREIT FFO Guidance	$1.48	$1.52

2020 Estimated FFO Per Share Bridge
	Low End	High End
2019 NAREIT FFO	$1.53	$1.53
Loss on debt extinguishment	0.13	0.13
2019 FFO (as adjusted)	$1.66	$1.66
Impact of 2019 Transactions	(0.20)	(0.20)
Term fee related to office building	(0.02)	(0.02)
2020 Same-Property NOI	0.02	0.04
2020 Other Items	0.02	0.04
2020 Estimated NAREIT FFO	$1.48	$1.52
Estimated adjustments	0.00	0.00
2020 Estimated FFO (as adjusted)	$1.48	$1.52

2

Earnings Conference Call

Kite Realty Group Trust will conduct a conference call to discuss its financial results on Wednesday, February 19, 2020, at 10:00 a.m. Eastern Time. A live webcast of the conference call will be available on KRG’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 3793609). 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) that provides communities with convenient and beneficial shopping experiences. We connect consumers to retailers in desirable markets through our portfolio of neighborhood, community, and lifestyle centers. Using operational, development, and redevelopment expertise, we continuously optimize our portfolio to maximize value and return to our shareholders. For more information, please visit our website at kiterealty.com.

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 or negative growth in the U.S. economy as well as economic uncertainty; the risk that KRG may not be able to successfully complete the planned dispositions on favorable terms - or at all; financing risks, including the availability of, and costs associated with, sources of liquidity; KRG’s ability to refinance, or extend the maturity dates of, its indebtedness; the level and volatility of interest rates; the financial stability of tenants, including their ability to pay rent and the risk of tenant insolvency or bankruptcies; the competitive environment in which KRG operates; acquisition, disposition, development and joint venture risks; property ownership and management risks; KRG’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 KRG owns; the actual and perceived impact of e-commerce on the value of shopping center assets; risks related to the geographical concentration of KRG’s properties in Florida, Indiana, Texas, Nevada, and North Carolina; 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. KRG refers you to the documents filed by KRG from time to time with the SEC, specifically the section titled “Risk Factors” in KRG’s and the Operating Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, which discuss these and other factors that could adversely affect KRG’s results. KRG undertakes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

3

Kite Realty Group Trust

Consolidated Balance Sheets

(Unaudited)

($ in thousands)
	December 31, 2019			December 31, 2018
Assets:
Investment properties, at cost	$	3,087,391		$	3,641,120
Less: accumulated depreciation	(666,952		)	(699,927		)
	2,420,439			2,941,193
Cash and cash equivalents	31,336			35,376
Tenant and other receivables, including accrued straight-line rent of $27,256 and $31,347, respectively	55,286			58,059
Restricted cash and escrow deposits	21,477			10,130
Deferred costs and intangibles, net	73,157			95,264
Prepaid and other assets	34,548			12,764
Investments in unconsolidated subsidiaries	12,644			13,496
Assets held for sale	—			5,731
Total Assets	$	2,648,887		$	3,172,013
Liabilities and Shareholders’ Equity:
Mortgage and other indebtedness, net	$	1,146,580		$	1,543,301
Accounts payable and accrued expenses	69,817			85,934
Deferred revenue and other liabilities	90,180			83,632
Total Liabilities	1,306,577			1,712,867
Commitments and contingencies
Limited Partners’ interests in the Operating Partnership and other redeemable noncontrolling interests	52,574			45,743
Shareholders’ Equity:
Kite Realty Group Trust Shareholders’ Equity:
Common Shares, $.01 par value, 225,000,000 shares authorized, 83,963,369 and 83,800,886 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively	840			838
Additional paid in capital	2,074,436			2,078,099
Accumulated other comprehensive loss	(16,283		)	(3,497		)
Accumulated deficit	(769,955		)	(662,735		)
Total Kite Realty Group Trust Shareholders’ Equity	1,289,038			1,412,705
Noncontrolling Interests	698			698
Total Equity	1,289,736			1,413,403
Total Liabilities and Shareholders' Equity	$	2,648,887		$	3,172,013

4

Kite Realty Group Trust

Consolidated Statements of Operations

For the Three and Twelve Months Ended December 31, 2019 and 2018

(Unaudited)

($ in thousands, except per share data)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2019			2018			2019			2018
Revenue:
Rental income	$	73,705		$	81,826		$	308,399		$	338,523
Other property related revenue	1,416			5,018			6,326			13,138
Fee income	144			93			448			2,523
Total revenue	75,265			86,937			315,173			354,184
Expenses:
Property operating	11,636			13,172			45,575			50,356
Real estate taxes	8,992			10,028			38,777			42,378
General, administrative, and other	7,691			4,957			28,214			21,320
Depreciation and amortization	30,765			36,299			132,098			152,163
Impairment charges	—			31,513			37,723			70,360
Total expenses	59,084			95,969			282,387			336,577
Gain (loss) on sale of operating properties, net	14,005			(4,725		)	38,971			3,424
Operating income	30,186			(13,757		)	71,757			21,031
Interest expense	(12,383		)	(17,643		)	(59,268		)	(66,785		)
Income tax benefit of taxable REIT subsidiary	94			150			282			227
Loss on debt extinguishment	(1,950		)	—			(11,572		)	—
Equity in earnings (loss) of unconsolidated subsidiary	49			(303		)	(628		)	(278		)
Other expense, net	(141		)	(156		)	(573		)	(646		)
Net income (loss)	15,855			(31,709		)	(2		)	(46,451		)
Net (income) loss attributable to noncontrolling interests	(541		)	488			(532		)	(116		)
Net income (loss) attributable to Kite Realty Group Trust common shareholders	$	15,314		$	(31,221	)	$	(534	)	$	(46,567	)
Income (loss) per common share - basic and diluted	$	0.18		$	(0.37	)	(0.01		)	(0.56		)
Weighted average common shares outstanding - basic	83,960,045			83,762,664			83,926,296			83,693,385
Weighted average common shares outstanding - diluted	84,478,245			83,762,664			83,926,296			83,693,385
Cash dividends declared per common share	$	0.3175		$	0.3175		$	1.2700		$	1.2700

5

Kite Realty Group Trust

Funds From Operations

For the Three and Twelve Months Ended December 31, 2019 and 2018

(Unaudited)

($ in thousands, except per share data)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2019			2018			2019			2018
Funds From Operations
Consolidated net income (loss)	$	15,855		$	(31,709	)	$	(2	)	$	(46,451	)
Less: net income attributable to noncontrolling interests in properties	(132		)	(172		)	(528		)	(1,151		)
Less: (Gain) loss on sales of operating properties	(14,005		)	4,725			(38,971		)	(3,424		)
Add: impairment charges	—			31,513			37,723			70,360
Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	31,065			36,534			133,184			151,856
FFO of the Operating Partnership1	32,783			40,891			131,406			171,190
Less: Limited Partners' interests in FFO	(785		)	(982		)	(3,153		)	(4,109		)
FFO attributable to Kite Realty Group Trust common shareholders1	$	31,998		$	39,909		$	128,253		$	167,081
FFO, as defined by NAREIT, per share of the Operating Partnership - basic	$	0.38		$	0.48		$	1.53		$	2.00
FFO, as defined by NAREIT, per share of the Operating Partnership - diluted	$	0.38		$	0.48		$	1.52		$	2.00
FFO of the Operating Partnership1	$	32,783		$	40,891		$	131,406		$	171,190
Add: loss on debt extinguishment	1,950			—			11,572			—
FFO, as adjusted, of the Operating Partnership	$	34,733		$	40,891		$	142,978		$	171,190
FFO, as adjusted, per share of the Operating Partnership - basic and diluted	$	0.40		$	0.48		$	1.66		$	2.00
Weighted average common shares outstanding - basic	83,960,045			83,762,664			83,926,296			83,693,385
Weighted average common shares outstanding - diluted	84,478,245			83,822,752			84,214,079			83,744,896
Weighted average common shares and units outstanding - basic	86,070,082			85,808,725			86,027,409			85,740,449
Weighted average common shares and units outstanding - diluted	86,588,282			85,868,813			86,315,191			85,791,961
FFO, as defined by NAREIT, per diluted share/unit
Consolidated net income (loss)	$	0.18		$	(0.37	)	$	0.00		$	(0.54	)
Less: net income attributable to noncontrolling interests in properties	—			—			(0.01		)	(0.01		)
Less: Loss (gain) on sales of operating properties	(0.16		)	0.05			(0.45		)	(0.04		)
Add: impairment charges	—			0.37			0.44			0.82
Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	0.36			0.43			1.54			1.77
FFO, as defined by NAREIT, of the Operating Partnership per diluted share/unit1	$	0.38		$	0.48		$	1.52		$	2.00
Add: loss on debt extinguishment	0.02			—			0.13			—
FFO, as adjusted, of the Operating Partnership per diluted share/unit 2	$	0.40		$	0.48		$	1.66		$	2.00

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.
2	Per share/unit amounts of components will not necessarily sum to the total due to rounding to the nearest cent.

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"), as restated in 2018. The NAREIT white paper defines FFO as net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

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. FFO (a) should not be considered as an alternative to net income (calculated in accordance with GAAP) for the purpose of measuring our financial performance, (b) is not an alternative to cash flow from operating activities (calculated in accordance with GAAP) as a measure of our liquidity, and (c) 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. For informational purposes, we have also provided FFO adjusted for loss on debt extinguishment.

From time to time, the Company may report or provide guidance with respect to “NAREIT FFO as adjusted” which removes the impact of certain non-recurring and non-operating transactions or other items the Company does not consider to be representative of its core operating results including without limitation, gains or losses associated with the early extinguishment of debt, gains or losses associated with litigation involving the Company that is not in the normal course of business, the impact on earnings from executive separation, and the excess of redemption value over carrying value of preferred stock redemption, which are not otherwise adjusted in the Company’s calculation of FFO.

6

Kite Realty Group Trust

Same Property Net Operating Income

For the Three and Twelve Months Ended December 31, 2019 and 2018

(Unaudited)

($ in thousands)
	Three Months Ended December 31,							Twelve Months Ended December 31,
	2019			2018			% Change	2019			2018			% Change
Number of properties for the quarter1	81			81
Leased percentage at period end	96.0		%	95.0		%		96.0		%	95.0		%
Economic Occupancy percentage2	93.7		%	92.1		%		92.6		%	92.6		%
Minimum rent	$	50,343		$	49,123			$	212,243		$	209,304
Tenant recoveries	15,276			14,899				62,588			61,343
Bad debt	(488		)	(947		)		(2,043		)	(2,208		)
Other income	1,027			1,069				2,115			2,016
	66,158			64,144				274,903			270,455
Property operating expenses	(8,551		)	(8,454		)		(34,514		)	(34,760		)
Real estate taxes	(8,522		)	(8,105		)		(35,803		)	(35,584		)
	(17,073		)	(16,559		)		(70,317		)	(70,344		)
Same Property NOI3	$	49,085		$	47,585		3.2%	$	204,586		$	200,111		2.2%
Reconciliation of Same Property NOI to Most Directly Comparable GAAP Measure:
Net operating income - same properties	$	49,085		$	47,585			$	204,586		$	200,111
Net operating income - non-same activity4	5,408			16,059				25,787			58,816
Other income (expense), net	146			(216		)		(471		)	1,826
General, administrative and other	(7,691		)	(4,957		)		(28,214		)	(21,320		)
Loss on debt extinguishment	(1,950		)	—				(11,572		)	—
Impairment charges	—			(31,513		)		(37,723		)	(70,360		)
Depreciation and amortization expense	(30,765		)	(36,299		)		(132,098		)	(152,163		)
Interest expense	(12,383		)	(17,643		)		(59,268		)	(66,785		)
Gain (loss) on sales of operating properties	14,005			(4,725		)		38,971			3,424
Net (income) loss attributable to noncontrolling interests	(541		)	488				(532		)	(116		)
Net income (loss) attributable to common shareholders	$	15,314		$	(31,221	)		$	(534	)	$	(46,567	)

1	Same Property NOI excludes (i) The Corner, Courthouse Shadows, Glendale Town Center, and Hamilton Crossing redevelopments, (ii) the recently completed Rampart Commons redevelopment, (iii) the recently acquired Nora Plaza, and (iv) office properties.
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, lease termination fees, amortization of lease intangibles, fee income and significant prior period expense recoveries and adjustments, if any.
4	Includes non-cash activity across the portfolio as well as net operating income from properties not included in the same property pool including properties sold during both periods.

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, 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 and fully operational for the full quarters presented. The Company believes such presentation eliminates disparities in net income due to the acquisition or disposition of properties during the particular quarters presented and thus provides a more consistent 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 a) begins recapturing space from tenants or b) the contemplated plan significantly impacts the operations of the property. For the quarter ended December 31, 2019, the Company excluded four redevelopment properties and one recently completed redevelopment from the same property pool that met these criteria and were owned in both comparable periods. In addition, the Company excluded one recently acquired property from the same property pool.

7

Kite Realty Group Trust

Earnings Before Interest, Tax, Depreciation, and Amortization

For the Three Months Ended December 31, 2019

(Unaudited)

($ in thousands)
	Three Months Ended December 31, 2019
Consolidated net income	$	15,855
Adjustments to net income:
Depreciation and amortization	30,765
Interest expense	12,383
Income tax benefit of taxable REIT subsidiary	(94		)
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)	58,909
Adjustments to EBITDA:
Unconsolidated EBITDA	774
Gain on sales of operating properties	(14,005		)
Loss on debt extinguishment	(1,519		)
Other income and expense, net	1,950
Noncontrolling interest	92
Pro-forma adjustments 1	(132		)
Adjusted EBITDA	46,069
Annualized Adjusted EBITDA1	184,276
Company share of net debt:
Mortgage and other indebtedness	$	1,146,580
Less: Partner share of consolidated joint venture debt	22,148
Less: Cash, cash equivalents, and restricted cash	6,722
Plus: Company share of unconsolidated joint venture debt	(1,117		)
Plus: Debt Premium	(53,464		)
Less: Pro-forma adjustment 3	(27,200		)
Company Share of Net Debt	$	1,093,669
Net Debt to Adjusted EBITDA	5.9x

1	Represents Adjusted EBITDA for the three months ended December 31, 2019 (as shown in the table above) multiplied by four.
2	Partner share of consolidated joint venture debt is calculated based upon the partner's pro-rata ownership of the joint venture, multiplied by the related secured debt balance. In all cases, this debt is the responsibility of the consolidated joint venture.
3	Relates to annualized EBITDA for properties sold during the quarter and non-recurring non-cash adjustments.
4	Relates to timing of quarterly dividend payment being made prior to quarter-end resulting in five payments year to date.

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.

8

EX-99.2

Exhibit 99.2

QUARTERLY FINANCIAL SUPPLEMENTAL – DECEMBER 31, 2019

PAGE NO.	TABLE OF CONTENTS
3	Earnings Press Release
6	Corporate Profile
7	Contact Information
8	Important Notes Including Non-GAAP Disclosures
10	Consolidated Balance Sheets
11	Consolidated Statements of Operations for the Three and Twelve Months Ended December 31, 2019
12	Same Property Net Operating Income
13	Net Operating Income and EBITDA by Quarter
14	Funds from Operations for the Three and Twelve Months Ended December 31, 2019
15	Adjusted Funds From Operations and Other Financial Information for the Three and Twelve Months Ended December 31, 2019
16	Summary Income Statement
17	Joint Venture Summary as of December 31, 2019
18	Summary of Outstanding Debt as of December 31, 2019
19	Maturity Schedule of Outstanding Debt as of December 31, 2019
20	Key Debt Metrics
21	Top 25 Tenants by Annualized Base Rent
22	Retail Leasing Spreads
23	Lease Expirations
24	Development and Redevelopment Projects
25	2019 Transactions
26	Geographic Diversification – Annualized Base Rent by Region and State
27	Operating Retail Portfolio Summary Report
31	Operating Office Properties and Other
32	Components of Net Asset Value
33	Earnings Guidance – 2020

p. 2 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

PRESS RELEASE

Contact Information: Kite Realty Group Trust

Jason Colton

SVP, Capital Markets & Investor Relations

317.713.2762

jcolton@kiterealty.com

Kite Realty Group Trust Reports Strong 2019 Operating Results and Provides 2020 Guidance

Indianapolis, Indiana, February 18, 2020 - Kite Realty Group Trust (NYSE:KRG) (“KRG”) reported today its operating results for the fourth quarter ended December 31, 2019.

“2019 was a transformative year for KRG. We enhanced the quality of our portfolio and reduced leverage to an all-time low,” said John A. Kite, Chairman and CEO. “KRG remains a top-tier operator by delivering strong leasing results, with a sector-leading small shop leased percentage of 92.5% in the fourth quarter. As we embark on a new decade with an improved portfolio, we are focused on capitalizing on growth opportunities and maximizing FFO.”

Fourth Quarter Financial Results

▪ Realized net income attributable to common shareholders of $15.3 million, or $0.18 per common share, compared to net loss of $31.2 million, or $0.37 per common share, for the same period in 2018.

▪ Generated NAREIT Funds From Operations of the Operating Partnership (FFO) of $32.8 million, or $0.38 per diluted common share, and FFO as adjusted of $34.7 million, or $0.40 per diluted common share.

▪ Increased Same-Property Net Operating Income (NOI) by 3.2%.

Fourth Quarter Portfolio Operations

▪ Executed 56 new and renewal leases representing 301,711 square feet.

▪ GAAP leasing spreads of 52.6% (41.4% cash basis) on 16 comparable new leases, 13.4% (8.0% cash basis) on 29 comparable renewals, and 27.1% (19.4% cash basis) on a blended basis.

▪ Annualized base rent (ABR) for the operating retail portfolio was $17.83, a 6% increase year-over-year.

▪ Retail leased percentage was 96.1%, an increase of 150 basis points year-over-year.

▪ Anchor leased percentage was 97.8%, an increase of 160 basis points year-over-year.

▪ Small shop leased percentage was 92.5%, an increase of 130 basis points year-over-year.

Full Year Highlights

▪ Realized net loss attributable to common shareholders of $0.5 million, or $0.01 per common share, compared to net loss of $46.6 million for 2018. Results for 2019 included a $37.7 million impairment charge related to certain properties.

▪ Generated NAREIT FFO of $131.4 million, or $1.52 per diluted common share, and FFO as adjusted of $143.0 million, or $1.66 per diluted common share.

▪ Increased Same-Property NOI by 2.2%.

▪ Executed 302 new and renewal leases representing over 2 million square feet.

▪ GAAP leasing spreads of 44.8% (35.5% cash basis) on 64 comparable new leases, 7.5% (3.3% cash basis) on 178 comparable renewals, and 14.5% (9.2% cash basis) on a blended basis.

p. 3 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

2019 Transactional Activity

▪ Sold twenty-three non-core assets for a total of $544 million during 2019.

▪ Acquired two assets for a combined $59 million during 2019.

2019 Capital Markets Activity

▪ Paid down $391 million in loans at a weighted average interest rate of 4.48%.

Balance Sheet

As of December 31, 2019, KRG’s net-debt-to-EBITDA ratio was 5.9x, down from 6.7x as of December 31, 2018. KRG has zero debt maturing through 2021 and zero drawn on its $600 million line of credit.

Dividends

On February 12^th, KRG’s Board of Trustees declared a dividend of $0.3175 per common share. The dividend will be payable on or about April 3, 2020, to shareholders of record as of March 27, 2020.

ESG Initiatives

KRG recognizes the importance that Environmental, Social, and Governance (ESG) initiatives play in generating sustainable long-term returns. To assist in the Company’s efforts to enhance its ESG disclosure and to better incorporate ESG considerations into its operations, KRG announces the creation of an ESG Task Force headed by CEO John A. Kite. The Task Force includes representatives of the Company’s asset management, human capital, legal, marketing, and investor relations groups and will report regularly to the Board of Trustees on its activities. The Company expects to publish more information on the Task Force’s efforts shortly.

2020 Earnings Guidance

KRG is providing 2020 guidance for net income of $0.13 to $0.17 per share and NAREIT FFO $1.48 to $1.52 per share. The components of the FFO guidance are as follows:

	2020 Guidance
Net Income		$0.13 - $0.17
NAREIT FFO	$1.48 - $1.52
Same-Property NOI Growth (excluding redevelopments)	1.00% - 2.00%
Bad Debt Assumption (in addition to known vacancies and any declared or imminent bankruptcies)	90bps of Same-Property Revenues

Net Income to NAREIT FFO Reconciliation
	Low End	High End
Net Income Guidance	$0.13	$0.17
Depreciation	1.35	1.35
NAREIT FFO Guidance	$1.48	$1.52

2020 Estimated FFO Per Share Bridge
	Low End	High End
2019 NAREIT FFO	$1.53	$1.53
Loss on debt extinguishment	0.13	0.13
2019 FFO (as adjusted)	$1.66	$1.66
Impact of 2019 Transactions	(0.20)	(0.20)
Term fee related to office building	(0.02)	(0.02)
2020 Same-Property NOI	0.02	0.04
2020 Other Items	0.02	0.04
2020 Estimated NAREIT FFO	$1.48	$1.52
Estimated adjustments	0.00	0.00
2020 Estimated FFO (as adjusted)	$1.48	$1.52

p. 4 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

Earnings Conference Call

Kite Realty Group Trust will conduct a conference call to discuss its financial results on Wednesday, February 19, 2020, at 10:00 a.m. Eastern Time. A live webcast of the conference call will be available on KRG’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 3793609). 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) that provides communities with convenient and beneficial shopping experiences. We connect consumers to retailers in desirable markets through our portfolio of neighborhood, community, and lifestyle centers. Using operational, development, and redevelopment expertise, we continuously optimize our portfolio to maximize value and return to our shareholders. For more information, please visit our website at kiterealty.com.

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 or negative growth in the U.S. economy as well as economic uncertainty; the risk that KRG may not be able to successfully complete the planned dispositions on favorable terms - or at all; financing risks, including the availability of, and costs associated with, sources of liquidity; KRG’s ability to refinance, or extend the maturity dates of, its indebtedness; the level and volatility of interest rates; the financial stability of tenants, including their ability to pay rent and the risk of tenant insolvency or bankruptcies; the competitive environment in which KRG operates; acquisition, disposition, development and joint venture risks; property ownership and management risks; KRG’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 KRG owns; the actual and perceived impact of e-commerce on the value of shopping center assets; risks related to the geographical concentration of KRG’s properties in Florida, Indiana, Texas, Nevada, and North Carolina; 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. KRG refers you to the documents filed by KRG from time to time with the SEC, specifically the section titled “Risk Factors” in KRG’s and the Operating Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, which discuss these and other factors that could adversely affect KRG’s results. KRG undertakes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

p. 5 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

CORPORATE PROFILE

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 certain select markets in the United States. As of December 31, 2019, we owned interests in 90 operating and redevelopment properties totaling approximately 17.4 million square feet and one development project 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 continue to gain scale in our target markets. New investments are focused in the shopping center sector primarily in markets that are benefiting from existing and accelerating migration patters and where we believe we can leverage our existing infrastructure and relationships to generate attractive risk-adjusted returns. Dispositions are generally designed to increase the quality of our portfolio and exit non-target markets. The proceeds of dispositions will generally be used to acquire assets in our target markets or strengthen the Company’s balance sheet.  

Company Highlights as of December 31, 2019

	# of Properties	Total GLA /NRA	Owned  GLA /NRA1
Operating Retail Properties	82	16,034,796	11,554,229
Operating Office Properties and Other	4	498,242	498,242
Redevelopment Properties	4	900,221	635,518
Total Operating and Redevelopment Properties	90	17,433,259	12,687,989
Development Projects	1	530,000	8,500
Total All Properties	91	17,963,259	12,696,489
	Retail	Non-Retail	Total
Operating Properties –  Leased Percentage	96.1%	97.7%	96.1%
States			16

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 and adjacent non-owned anchors.

p. 6 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

CONTACT INFORMATION    

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:
Jason Colton	Robert W. Baird & Co.	Compass Point Research & Trading, LLC
Senior Vice President, Capital Markets and IR	Mr. RJ Milligan	Mr. Floris van Dijkum
Kite Realty Group Trust	(813) 273-8252	(646) 757-2621
30 South Meridian Street, Suite 1100	rjmilligan@rwbaird.com	fvandijkum@compasspointllc.com
Indianapolis, IN 46204
(317) 713-2762	Bank of America/Merrill Lynch	DA Davidson
jcolton@kiterealty.com	Mr. Jeffrey Spector/Mr. Craig Schmidt	Mr. Barry Oxford
	(646) 855-1363/(646) 855-3640	(212) 240-9871
Transfer Agent:	jeff.spector@baml.com	boxford@dadco.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	(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
Stock Specialist:	BTIG	Raymond James
	Mr. Michael Gorman	Mr. Paul Puryear/Mr. Collin Mings
GTS	(212) 738-6138	(727) 567-2253/(727) 567-2585
545 Madison Avenue	mgorman@btig.com	paul.puryear@raymondjames.com
15th Floor		collin.mings@raymondjames.com
New York, NY 10022	Capital One Securities, Inc.
(212) 715-2830	Mr. Christopher Lucas	Piper Sandler
	(571) 633-8151	Mr. Alexander Goldfarb
	christopher.lucas@capitalone.com	(212) 466-7937
		alexander.goldfarb@psc.com
	Citigroup Global Markets
	Mr. Michael Bilerman/Ms. Christy McElroy	Wells Fargo Securities, LLC
	(212) 816-1383/(212) 816-6981	Ms. Tamara Fique
	michael.bilerman@citigroup.com	(617) 603-4262/(443) 263-6568
	christy.mcelroy@citigroup.com	tamara.fique@wellsfargo.com

p. 7 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

IMPORTANT NOTES INCLUDING NON-GAAPDISCLOSURES    

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 Annual Report on Form 10-K for the quarter ended December 31, 2019, to be filed on or about February 19, 2020, which should be read in conjunction with this supplement. The supplemental information is unaudited, although it reflects all adjustments that, 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 connection with low or negative growth in the U.S. economy as well as economic uncertainty;

• 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 insolvency and bankruptcy;

• 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 actual and perceived impact of e-commerce 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, 2018, 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"), as restated in 2018. The NAREIT white paper defines FFO as net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

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. FFO (a) should not be considered as an alternative to net income (calculated in accordance with GAAP) for the purpose of measuring our financial performance, (b) is not an alternative to cash flow from operating activities (calculated in accordance with GAAP) as a measure of our liquidity, and (c) 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. For informational purposes, we have also provided FFO adjusted for loss on debt extinguishment. A reconciliation of net income (calculated in accordance with GAAP) to FFO is included elsewhere in this Financial Supplement.

From time to time, the Company may report or provide guidance with respect to “NAREIT FFO as adjusted” which removes the impact of certain non-recurring and non-operating transactions or other items the Company does not consider to be representative of its core operating results including without limitation, gains or losses associated with the early extinguishment of debt, gains or losses associated with litigation involving the Company that is not in the normal course of business, the impact on earnings from executive separation, and the excess of redemption value over carrying value of preferred stock redemption, which are not otherwise adjusted in the Company’s calculation of FFO.

p. 8 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

IMPORTANT NOTES INCLUDING NON-GAAPDISCLOSURES (CONTINUED)

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. 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 (calculcated 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, 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 and fully operational for the full quarters presented. The Company believes such presentation eliminates disparities in net income due to the acquisition or disposition of properties during the particular quarters presented and thus provides a more consistent 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 a) begins recapturing space from tenants or b) the contemplated plan significantly impacts the operations of the property. For the quarter ended December 31, 2019, the Company excluded four redevelopment properties and one recently completed redevelopment from the same property pool that met these criteria and were owned in both comparable periods. In addition, the Company excluded one recently acquired property from the same property pool.

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. 9 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

CONSOLIDATEDBALANCESHEETS(UNAUDITED)

($ in thousands)
	December 31, 2019			December 31, 2018
Assets:
Investment properties, at cost	$	3,087,391		$	3,641,120
Less: accumulated depreciation	(666,952		)	(699,927		)
	2,420,439			2,941,193
Cash and cash equivalents	31,336			35,376
Tenant and other receivables, including accrued straight-line rent of $27,256 and $31,347, respectively	55,286			58,059
Restricted cash and escrow deposits	21,477			10,130
Deferred costs and intangibles, net	73,157			95,264
Prepaid and other assets	34,548			12,764
Investments in unconsolidated subsidiaries	12,644			13,496
Assets held for sale	—			5,731
Total Assets	$	2,648,887		$	3,172,013
Liabilities and Shareholders’ Equity:
Mortgage and other indebtedness, net	$	1,146,580		$	1,543,301
Accounts payable and accrued expenses	69,817			85,934
Deferred revenue and other liabilities	90,180			83,632
Total Liabilities	1,306,577			1,712,867
Commitments and contingencies
Limited Partners’ interests in the Operating Partnership and other redeemable noncontrolling interests	52,574			45,743
Shareholders’ Equity:
Kite Realty Group Trust Shareholders’ Equity:
Common Shares, $.01 par value, 225,000,000 shares authorized, 83,963,369 and 83,800,886 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively	840			838
Additional paid in capital	2,074,436			2,078,099
Accumulated other comprehensive loss	(16,283		)	(3,497		)
Accumulated deficit	(769,955		)	(662,735		)
Total Kite Realty Group Trust Shareholders’ Equity	1,289,038			1,412,705
Noncontrolling Interests	698			698
Total Equity	1,289,736			1,413,403
Total Liabilities and Equity	$	2,648,887		$	3,172,013

p. 10 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)

($ in thousands, except per share data)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2019			2018			2019			2018
Revenue:
Rental income	$	73,705		$	81,826		$	308,399		$	338,523
Other property related revenue	1,416			5,018			6,326			13,138
Fee income	144			93			448			2,523
Total revenue	75,265			86,937			315,173			354,184
Expenses:
Property operating	11,636			13,172			45,575			50,356
Real estate taxes	8,992			10,028			38,777			42,378
General, administrative, and other	7,691			4,957			28,214			21,320
Depreciation and amortization	30,765			36,299			132,098			152,163
Impairment charges	—			31,513			37,723			70,360
Total expenses	59,084			95,969			282,387			336,577
Gain (loss) on sale of operating properties, net	14,005			(4,725		)	38,971			3,424
Operating income	30,186			(13,757		)	71,757			21,031
Interest expense	(12,383		)	(17,643		)	(59,268		)	(66,785		)
Income tax benefit of taxable REIT subsidiary	94			150			282			227
Loss on debt extinguishment	(1,950		)	—			(11,572		)	—
Equity in earnings (loss) of unconsolidated subsidiary	49			(303		)	(628		)	(278		)
Other expense, net	(141		)	(156		)	(573		)	(646		)
Net income (loss)	15,855			(31,709		)	(2		)	(46,451		)
Net (income) loss attributable to noncontrolling interests	(541		)	488			(532		)	(116		)
Net income (loss) attributable to Kite Realty Group Trust common shareholders	$	15,314		$	(31,221	)	$	(534	)	$	(46,567	)
Income (loss) per common share - basic and diluted	$	0.18		$	(0.37	)	$	(0.01	)	$	(0.56	)
Weighted average common shares outstanding - basic	83,960,045			83,762,664			83,926,296			83,693,385
Weighted average common shares outstanding - diluted	84,478,245			83,762,664			83,926,296			83,693,385
Cash dividends declared per common share	$	0.3175		$	0.3175		$	1.2700		$	1.2700

p. 11 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

SAME PROPERTY NET OPERATING INCOME (NOI)

($ in thousands)
	Three Months Ended December 31,							Twelve Months Ended December 31,
	2019			2018			% Change	2019			2018			% Change
Number of properties for the quarter1	81			81
Leased percentage at period end	96.0		%	95.0		%		96.0		%	95.0		%
Economic Occupancy percentage2	93.7		%	92.1		%		92.6		%	92.6		%
Minimum rent	$	50,343		$	49,123			$	212,243		$	209,304
Tenant recoveries	15,276			14,899				62,588			61,343
Bad debt	(488		)	(947		)		(2,043		)	(2,208		)
Other income	1,027			1,069				2,115			2,016
	66,158			64,144				274,903			270,455
Property operating expenses	(8,551		)	(8,454		)		(34,514		)	(34,760		)
Real estate taxes	(8,522		)	(8,105		)		(35,803		)	(35,584		)
	(17,073		)	(16,559		)		(70,317		)	(70,344		)
Same Property NOI3	$	49,085		$	47,585		3.2%	$	204,586		$	200,111		2.2%
Reconciliation of Same Property NOI to Most Directly Comparable GAAP Measure:
Net operating income - same properties	$	49,085		$	47,585			$	204,586		$	200,111
Net operating income - non-same activity4	5,408			16,059				25,787			58,816
Other income (expense), net	146			(216		)		(471		)	1,826
General, administrative and other	(7,691		)	(4,957		)		(28,214		)	(21,320		)
Impairment charges	—			(31,513		)		(37,723		)	(70,360		)
Depreciation and amortization expense	(30,765		)	(36,299		)		(132,098		)	(152,163		)
Interest expense	(12,383		)	(17,643		)		(59,268		)	(66,785		)
Loss on debt extinguishment	(1,950		)	—				(11,572		)	—
Gain (loss) on sales of operating properties	14,005			(4,725		)		38,971			3,424
Net (income) loss attributable to noncontrolling interests	(541		)	488				(532		)	(116		)
Net income (loss) attributable to common shareholders	$	15,314		$	(31,221	)		$	(534	)	$	(46,567	)

____________________
1	Same Property NOI excludes (i) The Corner, Courthouse Shadows, Glendale Town Center, and Hamilton Crossing redevelopments, (ii) the recently completed Rampart Commons redevelopment, (iii) the recently acquired Nora Plaza, and (iv) office properties.
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, lease termination fees, amortization of lease intangibles, fee income and significant prior period expense recoveries and adjustments, if any.
4	Includes non-cash activity across the portfolio as well as net operating income from properties not included in the same property pool including properties sold during both periods.

p. 12 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

NET OPERATINGINCOME AND EBITDA BYQUARTER

($ in thousands)
	Three Months Ended
	December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018
Revenue:
Minimum rent1	$	56,674		$	56,012		$	62,047		$	63,999		$	64,764
Tenant reimbursements	16,161			16,504			17,573			18,142			17,558
Other property related revenue	254			1,100			492			359			3,091
Overage rent	870			57			174			217			830
Parking revenue, net2	514			583			518			243			170
	74,473			74,256			80,804			82,960			86,413
Expenses:
Property operating  - Recoverable3	9,721			9,207			9,594			9,764			10,018
Property operating - Non-Recoverable3	1,468			1,467			1,491			1,426			2,888
Real estate taxes	8,793			9,430			9,727			10,032			9,861
	19,982			20,104			20,812			21,222			22,767
Net Operating Income - Properties	54,491			54,152			59,992			61,738			63,646
Other (Expenses) Income:
General, administrative, and other	(7,691		)	(6,709		)	(7,037		)	(6,777		)	(4,957		)
Fee income	144			110			91			102			93
	(7,547		)	(6,599		)	(6,946		)	(6,675		)	(4,864		)
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization	46,944			47,553			53,046			55,063			58,782
Impairment charge	—			(8,538		)	(25,107		)	(4,077		)	(31,513		)
Depreciation and amortization	(30,765		)	(31,985		)	(34,713		)	(34,635		)	(36,299		)
Interest expense	(12,383		)	(14,302		)	(16,124		)	(16,459		)	(17,643		)
Equity in earnings (loss) of unconsolidated subsidiaries	49			(11		)	(238		)	(427		)	(303		)
Income tax benefit of taxable REIT subsidiary	94			41			66			82			150
Loss on debt extinguishment	(1,950		)	(7,045		)	(2,577		)	—			—
Other expense, net	(141		)	(116		)	(142		)	(176		)	(158		)
Gain (loss) on sales of operating properties	14,005			(5,714		)	24,092			6,587			(4,725		)
Net income (loss)	15,855			(20,117		)	(1,697		)	5,958			(31,709		)
Less: Net (income) loss attributable to noncontrolling interests	(541		)	382			(99		)	(273		)	488
Net income (loss) attributable to Kite Realty Group Trust	$	15,314		$	(19,735	)	$	(1,796	)	$	5,685		$	(31,221	)
NOI/Revenue	73.2		%	72.9		%	74.2		%	74.4		%	73.7		%
Recovery Ratios4
- Retail Properties	90.7		%	91.6		%	94.3		%	93.9		%	90.7		%
- Consolidated	87.3		%	88.6		%	91.0		%	91.6		%	88.3		%

____________________
1	Minimum rent includes $4.2 million in ground lease-related revenue for the three months ended December 31, 2019. In addition, minimum rent includes $2.1 million, $0.4 million, $0.2 million, $0.1 million, and $0.5 million of lease termination income for the three months ended December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively.
2	Parking revenue, net represents the net operating results of the Eddy Street Parking Garage, the Union Station Parking Garage, and the Pan Am Plaza Parking Garage.
3	Recoverable expenses include total management fee expense (or recurring G&A expense of $1.5 million) allocable to the property operations in the three months ended December 31, 2019, a portion of which is recoverable. Non-recoverable expenses primarily include ground rent, professional fees, and marketing costs.
4	“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 –12/31/2019

FUNDS FROM OPERATIONS^{1, 2}

($ in thousands, except per share data)
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2019			2018			2019			2018
Funds From Operations ("FFO")
Consolidated net income (loss)	$	15,855		$	(31,709	)	$	(2	)	$	(46,451	)
Less: net income attributable to noncontrolling interests in properties	(132		)	(172		)	(528		)	(1,151		)
Less: (Gain) loss on sales of operating properties	(14,005		)	4,725			(38,971		)	(3,424		)
Add: impairment charges	—			31,513			37,723			70,360
Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	31,065			36,534			133,184			151,856
FFO of the Operating Partnership1	32,783			40,891			131,406			171,190
Less: Limited Partners' interests in FFO	(785		)	(982		)	(3,153		)	(4,109		)
FFO attributable to Kite Realty Group Trust common shareholders1	$	31,998		$	39,909		$	128,253		$	167,081
FFO, as defined by NAREIT, per share of the Operating Partnership - basic	$	0.38		$	0.48		$	1.53		$	2.00
FFO, as defined by NAREIT, per share of the Operating Partnership - diluted	$	0.38		$	0.48		$	1.52		$	2.00
FFO of the Operating Partnership1	$	32,783		$	40,891		$	131,406		$	171,190
Add: loss on debt extinguishment	1,950			—			11,572			—
FFO, as adjusted, of the Operating Partnership	$	34,733		$	40,891		$	142,978		$	171,190
FFO, as adjusted, per share of the Operating Partnership - basic and diluted	$	0.40		$	0.48		$	1.66		$	2.00
Weighted average common shares outstanding - basic	83,960,045			83,762,664			83,926,296			83,693,385
Weighted average common shares outstanding - diluted	84,478,245			83,822,752			84,214,079			83,744,896
Weighted average common shares and units outstanding - basic	86,070,082			85,808,725			86,027,409			85,740,449
Weighted average common shares and units outstanding - diluted	86,588,282			85,868,813			86,315,191			85,791,961
FFO, as defined by NAREIT, per diluted share/unit
Consolidated net income (loss)	$	0.18		$	(0.37	)	$	—		$	(0.54	)
Less: net income attributable to noncontrolling interests in properties	—			—			(0.01		)	(0.01		)
Less: Loss (gain) on sales of operating properties	(0.16		)	0.05			(0.45		)	(0.04		)
Add: impairment charges	—			0.37			0.44			0.82
Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests	0.36			0.43			1.54			1.77
FFO, as defined by NAREIT, of the Operating Partnership per diluted share/unit1	$	0.38		$	0.48		$	1.52		$	2.00
Add: loss on debt extinguishment	0.02			—			0.13			—
FFO, as adjusted, of the Operating Partnership per diluted share/unit 2	$	0.40		$	0.48		$	1.66		$	2.00

____________________
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.
2	Per share/unit amounts of components will not necessarily sum to the total due to rounding to the nearest cent.

p. 14 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

ADJUSTED FUNDS FROM OPERATIONS AND OTHER FINANCIAL INFORMATION

($ in thousands)
	Three Months Ended December 31,					Twelve Months Ended December 31,
	2019		2018			2019		2018
Reconciliation of FFO, as adjusted, to Adjusted Funds from Operations (AFFO)
FFO, as defined by NAREIT, as adjusted, of the Operating Partnership	$	34,733	$	40,891		$	142,978	$	171,190
Add:
Depreciation of non-real estate assets	139		195			672		1,035
Amortization of deferred financing costs	633		1,724			2,762		3,944
Non-cash compensation expense	1,335		931			5,361		4,087
Less:
Straight-line rent - minimum rent	538		739			1,175		3,061
Straight-line rent - common area maintenance	246		—			1,030		—
Market rent amortization income	795		872			3,780		6,360
Amortization of debt premium	137		547			1,467		2,630
Other cash and non-cash adjustments	—		(1,551		)	—		(287		)
Capital expenditures1:
Maintenance capital expenditures	1,654		1,156			4,276		4,469
Revenue enhancing tenant improvements	2,219		4,198			8,584		13,722
External lease commissions	525		596			1,764		2,398
Total Recurring AFFO of the Operating Partnership	30,726		$	37,184		$	129,697	$	147,903
Other Financial Information:
Scheduled debt principal payments	$	579	$	1,388		$	4,071	$	5,349

____________________
1	Excludes landlord work, tenant improvements and leasing commissions relating to development, redevelopment, and Big Box Surge projects.

p. 15 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

SUMMARY INCOME STATEMENT AND LEASE ACCOUNTING IMPACT

($ in thousands)
	Three Months Ended December 31,
	2019			2018			% Change
Same Property Revenue	$	66,158		$	64,144		3.1	%
Same Property Expenses	(17,073		)	(16,559		)	(3.1	)%
Same Property Net Operating Income	49,085			47,585			3.2	%
Sold Assets Net Operating Income	671			11,421			(94.1	)%
Non-Same Property Net Operating Income	4,735			4,640			2.0	%
Net Operating Income	54,491			63,646			(14.4	)%
General and Administrative Expense	(7,691		)	(4,957		)	(55.2	)%
Fee income	144			93			54.8	%
EBITDA	46,944			58,782			(20.1	)%
Interest Expense	(12,067		)	(13,319		)	9.4	%
Interest Related to Retired Debt	(316		)	(4,324		)	92.7	%
Other income (expense), net	172			(248		)	169.4	%
Funds From Operations, as adjusted	34,733			40,891			(15.1	)%
Non-Cash Items	391			2,243			82.6	%
Capital Expenditures	(4,398		)	(5,950		)	26.1	%
Recurring Adjusted Funds From Operations	30,726			37,184			(17.4	)%
FFO, as adjusted, per share of the Operating Partnership - diluted	$	0.40		$	0.48		(16.7	)%

Impact of New Lease Guidance Implementation
Balance Sheet Impact	Amount		Account
Right of Use Asset	$	26,728	Prepaid and Other Assets
Lease Liabilities	$	27,015	Deferred Revenue and Other Liabilities
Income Statement Impact	Amount		Account
Internal and third party leasing and legal costs not directly incremental to a lease execution - Q4 2019	$	1,414	General & Administrative Expense
Straight-line rent - common area maintenance	$	246	Rental Income
Revenues deemed uncollectible - Q4 2019	$	654	Rental Income
Bad debt expense - Q4 2018	$	1,237	Property Operating Expense

p. 16 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

JOINT VENTURE SUMMARY - DECEMBER 31, 2019

($ in thousands)

CONSOLIDATED INVESTMENTS
Investment Partner	Total GLA	Total Assets		Total Debt		Partner Economic Ownership Interest 1		Partner Share of Debt		Partner Share of Annual Income
Individual Investors	465,981	$	145,078	$	55,830	2.0% - 15.0%		$	1,117	$	528
UNCONSOLIDATED INVESTMENTS
Investment Partner	Total GLA	Total Assets		Total Debt		KRG Economic Ownership Interest		KRG Share of Debt		KRG Investment		KRG Share of Quarterly EBITDA		KRG Share of Quarterly EBITDA Annualized
Nuveen	416,877	$	103,632	$	51,890	20	%	$	10,378	$	9,501	$	313	$	1,253
Individual Investors	152,460	46,069		33,634		35	%	11,770		3,143		461		1,844
Total	569,337	$	149,701	$	85,524			$	22,148	$	12,644	$	774	$	3,097

____________________
1	Economic ownership % represents the partner's share of cash flow.

p. 17 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

SUMMARY OFOUTSTANDINGDEBT AS OF DECEMBER 31, 2019

($ in thousands)
TOTAL OUTSTANDING DEBT 1
	Outstanding Amount			Ratio		Weighted Average Interest Rate		Weighted Average Maturity (in years)
Fixed Rate Debt	$	1,113,672		95	%	3.94	%	5.7
Variable Rate Debt	39,630			3	%	3.68	%	7.6
Net Debt Premiums and Issuance Costs, Net	(6,722		)			N/A		N/A
Total Consolidated Debt	1,146,580			98	%	3.93	%	5.8
KRG Share of Unconsolidated Debt	22,148			2	%	4.18	%	6.4
Total	$	1,168,728		100	%	3.94	%	5.8

SCHEDULE OF MATURITIES BY YEAR
	Secured Debt
	Scheduled Principal Payments			Term Maturities		Unsecured Debt 2		Total Consolidated Debt			Total Unconsolidated Debt		Total Outstanding Debt
2020	2,226			—		—		2,226			100		2,326
2021	2,303			—		—		2,303			245		2,548
2022	1,043			178,877		—		179,920			258		180,178
2023	806			161,517		95,000		257,323			270		257,593
2024	854			—		—		854			10,897		11,751
2025	904			—		80,000		80,904			—		80,904
2026 And Beyond	4,672			100		625,000		629,772			10,378		640,150
Net Debt Premiums and Issuance Cost, Net	(6,722		)	—		—		(6,722		)	—		(6,722		)
Total	$	6,086		$	340,494	$	800,000	$	1,146,580		$	22,148	$	1,168,728

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 December 31, 2019, $266.2 million in variable rate debt is hedged for a weighted average of 3.0 years.
2	This presentation reflects the Company's exercise of its option to extend the maturity date by one year to April 22, 2023 for the Company's unsecured credit facility.The ability to exercise this option is subject to certain conditions, which the Company does not unilaterally control.

p. 18 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

MATURITYSCHEDULE OFOUTSTANDINGDEBT AS OF DECEMBER 31, 2019

($ in thousands)
Property	Interest Rate1		Maturity Date	Balance as of December 31, 2019			% of  Total Outstanding
2020 Debt Maturities				—			—	%
2021 Debt Maturities				—			—	%
Delray Marketplace 2	LIBOR + 160		2/5/2022	55,830
Bayonne Crossing	4.43	%	4/1/2022	42,940
Saxon Crossing	4.65	%	7/1/2022	11,400
Shops at Moore	4.29	%	9/1/2022	21,300
Shops at Julington Creek	4.60	%	9/1/2022	4,785
Centre Point Commons	4.34	%	10/1/2022	14,410
Miramar Square	4.16	%	12/1/2022	31,625
2022 Debt Maturities				182,290			15.6	%
Centennial Gateway	3.81	%	1/1/2023	23,962
Centennial Center	3.83	%	1/6/2023	70,455
Eastern Beltway	3.83	%	1/6/2023	34,100
The Corner (AZ)	4.10	%	3/1/2023	14,750
Chapel Hill	3.78	%	4/1/2023	18,250
Unsecured Credit Facility 3	LIBOR + 115		4/22/2023	—
Senior Unsecured Note	4.23	%	9/10/2023	95,000
2023 Debt Maturities				256,517			21.9	%
2024 Debt Maturities				—			—	%
Senior Unsecured Note	4.47	%	9/10/2025	80,000
2025 Debt Maturities				80,000			6.8	%
Senior Unsecured Note	4.00	%	10/1/2026	300,000
Senior Unsecured Note	4.57	%	9/10/2027	75,000
Unsecured Term Loan 4	LIBOR + 200		10/24/2028	250,000
Rampart Commons	5.73	%	6/10/2030	9,495
2026 And Beyond Debt Maturities				634,495			54.3	%
NET PREMIUMS ON ACQUIRED DEBT & ISSUANCE COSTS				(6,722		)
TOTAL DEBT PER CONSOLIDATED BALANCE SHEET				$	1,146,580		98.1	%
KRG Share of Unconsolidated Debt
Embassy Suites at University of Notre Dame	LIBOR + 250		7/1/2024	11,770
Nuveen 5	4.09%		7/1/2028	10,378
TOTAL KRG SHARE OF UNCONSOLIDATED DEBT				22,148			1.9	%
TOTAL CONSOLIDATED AND KRG SHARE OF UNCONSOLIDATED DEBT				$	1,168,728

1	At December 31, 2019, one-month LIBOR was 1.76%.
2	Property is held in a joint venture. The loan is guaranteed by Kite Realty Group, LP. See Joint Venture Summary on page 17 for additional detail.
3	Assumes Company exercises its option to extend the maturity date by one year.
4	Assumes Company exercises three one-year options to extend the maturity date by three years.
5	Properties are held in joint ventures. See Joint Venture Summary on page 17 for additional detail.

p. 19 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

KEY DEBT METRICS

UNSECURED PUBLIC DEBT COVENANTS
	December 31, 2019				Debt Covenant Threshold1
Total Debt to Undepreciated Assets	35.8%				<60%
Secured Debt to Undepreciated Assets	11.2%				<40%
Undepreciated Unencumbered Assets to Unsecured Debt	309%				>150%
Debt Service Coverage	3.6x				>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		$	31,336
Availability under unsecured credit facility		583,439
		$	614,775
Unencumbered NOI as a % of Total NOI		74		%

____________________
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.

NET DEBT TO EBITDA
Company's Consolidated Debt & Share of Unconsolidated Debt				$	1,174,333
Less: Cash, Cash Equivalents, and Restricted Cash				(53,464		)
Less: Pro-forma adjustment 1				(27,200		)
				$	1,093,669
Q4 2019 EBITDA, Annualized:
-  Consolidated EBITDA	$	187,776
-  Unconsolidated EBITDA	3,097
- Pro-forma adjustments 2	(6,071		)
- Minority Interest EBITDA 3	(528		)	184,274
Ratio of Company Share of Net Debt to EBITDA				5.9x

____________________
1	Relates to timing of quarterly dividend payment being made prior to quarter-end resulting in five payments year to date.
2	Relates to annualized EBITDA for properties sold during the quarter and timing of overage rent and lease termination income.
3	See page 17 for details

p. 20 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

TOP 25 TENANTS BY ANNUALIZED BASE RENT

As of December 31, 2019

($ 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 December 31, 2019.

	Number of Stores									Credit Ratings
Tenant (# Stores)	Wholly Owned	JV1	Total Leased GLA/NRA2	Annualized Base Rent3,4		Annualized Base Rent per Sq. Ft.4		% of Total Portfolio Annualized Base Rent4		S&P	Moody's
Publix Super Markets, Inc.	11	—	535,466	$	5,454	$	10.19	2.5	%	N/A	N/A
The TJX Companies, Inc.5	14	2	471,798	4,749		11.00		2.2	%	A+	A2
Bed Bath & Beyond, Inc.6	14	2	422,348	4,281		11.04		1.9	%	BB	Baa3
PetSmart, Inc.	13	1	291,389	4,077		14.59		1.8	%	B-	B3
Ross Stores, Inc.	12	1	364,476	3,986		11.57		1.8	%	A-	A2
Dick's Sporting Goods, Inc.7	7	—	340,502	3,647		10.71		1.7	%	N/A	N/A
Nordstrom Rack	5	1	197,797	3,571		20.75		1.6	%	BBB+	Baa2
Michaels Stores, Inc.	11	1	253,936	3,222		13.41		1.5	%	B+	Ba2
National Amusements	1	—	80,000	2,953		36.92		1.3	%	B+	N/A
Kohl's Corporation	4	—	184,516	2,832		7.87		1.3	%	BBB	Baa2
Walmart Stores, Inc.8	5	—	—	2,652		3.27		1.2	%	AA	Aa2
Best Buy Co., Inc.	5	—	183,604	2,612		14.22		1.2	%	BBB	Baa1
The Gap9	11	—	162,773	2,588		15.90		1.2	%	BB	Baa2
Lowe's Companies, Inc.	3	—	—	2,375		4.91		1.1	%	BBB+	Baa1
LA Fitness	3	—	125,209	2,292		18.31		1.0	%	N/A	N/A
Burlington Stores, Inc.	3	—	238,400	2,226		9.34		1.0	%	BB+	N/A
Hobby Lobby Stores, Inc.	5	—	271,254	2,190		8.07		1.0	%	N/A	N/A
Petco Animal Supplies, Inc.	9	—	125,897	2,188		17.38		1.0	%	CCC+	B3
Whole Foods Market, Inc.	4	—	139,781	2,130		15.24		0.8	%	A+	A3
The Kroger Co.10	3	—	60,268	2,099		9.19		1.0	%	BBB	Baa1
Mattress Firm Holdings Corp (12) / Sleepy's (4)	16	—	76,408	2,069		27.08		0.9	%	N/A	N/A
Office Depot (6) / Office Max (2)	8	—	167,606	1,957		11.67		0.9	%	B	Ba3
New York Sports Club	2	—	86,717	1,921		22.16		0.9	%	N/A	N/A
Randall's Food and Drugs	2	—	133,990	1,754		13.09		0.8	%	N/A	N/A
Walgreens	3	—	52,662	1,726		32.78		0.8	%	BBB	Baa2
TOTAL	174	8	4,966,797	$	71,553	$	11.18	32.1	%

1	JV Stores represent stores at unconsolidated properties.
2	Excludes the estimated size of the structures located on land owned by the Company and ground leased to tenants.
3	Annualized base rent represents the monthly contractual rent for December 31, 2019, for each applicable tenant multiplied by 12. Annualized base rent does not include tenant reimbursements. Annualized base rent represents 100% of the annualized base rent at consolidated properties and our share of the annualized base rent at unconsolidated properties.
4	Annualized base rent and percent of total portfolio includes ground lease rent.
5	Includes TJ Maxx (9), Marshalls (5) and HomeGoods (2).
6	Includes Bed Bath and Beyond (8), Buy Buy Baby (4) Christmas Tree Shops,(1), and Cost Plus World Market (3).
7	Includes Dick's Sporting Goods (6) and Golf Galaxy (1).
8	Includes Sam's Club.
9	Includes Old Navy (10) and Athleta (1).
10	Includes Kroger (1), Harris Teeter (1), and Smith's (1).
	Ascena Retail Group announced plans to commence a wind down of Dressbarn's operations. Excluding Dressbarn stores, Ascena Retail Group accounts for 0.6% of total portfolio annualized base rent.

p. 21 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

RETAIL LEASING SPREADS

			Comparable Space1, 2
Category	Total Leases	Total Sq. Ft.	Leases	Sq. Ft.	Prior Rent PSF3		New Rent PSF4		Cash Rent Spread		GAAP Rent Spread5		TI, LL Work, Lease Commissions PSF6
New Leases - Q4, 2019	26	111,552	16	86,085	$	16.36	$	23.13	41.4	%	52.6	%
New Leases - Q3, 2019	22	71,241	10	25,428	21.98		27.33		24.3	%	42.4	%
New Leases - Q2, 2019	33	121,100	21	87,514	18.37		21.70		18.2	%	25.4	%
New Leases - Q1, 2019	33	166,518	17	96,698	11.83		18.71		58.2	%	63.3	%
Total	114	470,411	64	295,725	$	15.96	$	21.62	35.5	%	44.8	%		$	75.90
Renewals - Q4, 2019	30	190,159	29	187,790	$	14.40	$	15.55	8.0	%	13.4	%
Renewals - Q3, 2019	48	490,983	44	444,065	13.26		14.10		6.3	%	9.5	%
Renewals - Q2, 2019	48	379,892	48	379,892	14.26		15.11		5.9	%	10.5	%
Renewals - Q1, 2019	62	475,587	57	455,410	15.10		14.62		(3.2	)%	1.0	%
Total	188	1,536,621	178	1,467,157	$	14.24	$	14.71	3.3	%	7.5	%		$	0.33
Total - Q4, 2019	56	301,711	45	273,875	$	15.02	$	17.94	19.4	%	27.1	%
Total - Q3, 2019	70	562,224	54	469,493	13.74		14.82		7.9	%	12.3	%
Total - Q2, 2019	81	500,992	69	467,406	15.03		16.34		8.7	%	14	%
Total - Q1, 2019	95	642,105	74	552,108	14.53		15.34		5.6	%	10.2	%
Total	302	2,007,032	242	1,762,882	$	14.53	$	15.87	9.2	%	14.5	%		$	13.00

________________
1	Comparable space leases on this report are included for second generation retail spaces. Comparable leases represent those leases for which there was a former tenant within the last 12 months. Leases at our two office properties, Thirty South Meridian and Eddy Street Commons, and ground leases are excluded.
2	Comparable renewals exclude terms shorter than two years.
3	Prior rent represents minimum rent, if any, paid by the prior tenant in the final 12 months of the term. All amounts reported at lease execution.
4	Contractual rent represents contractual minimum rent per square foot for the first 12 months of the lease.
5	The aggregate spread on a straight-line basis over the contractual life of the lease to the comparable lease.
6	Includes redevelopment costs for tenant specific landlord work and tenant allowances provided to tenants at properties in the redevelopment pipeline.

p. 22 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

LEASE EXPIRATIONS

As of December 31, 2019

($ 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 December 31, 2019.

		Expiring GLA2							Expiring Annualized Base Rent per Sq. Ft.3
	Number of Expiring Leases1	Shop Tenants	Anchor Tenants	Office and Other Tenants	Expiring Annualized Base Rent (Pro-rata)		% of Total Annualized Base Rent (Pro-rata)		Shop Tenants		Anchor Tenants		Office and Other Tenants		Total
2020	154	332,585	534,529	3,242	$	14,567	7.2	%	$	25.24	$	11.83	$	19.25	$	16.90
2021	212	451,708	865,234	17,868	22,455		11.0	%	27.19		11.65		21.97		16.96
2022	256	535,220	1,078,093	65,020	29,813		14.6	%	26.94		13.17		19.67		17.80
2023	252	536,662	1,125,475	129,935	33,020		16.2	%	28.29		14.86		9.15		18.45
2024	210	458,244	868,181	33,827	24,609		12.1	%	29.30		15.08		13.96		20.38
2025	149	310,145	1,015,606	116,988	21,270		10.5	%	29.05		10.77		16.20		15.24
2026	78	212,668	496,033	—	10,007		4.9	%	26.49		9.85		—		15.23
2027	70	192,682	365,093	9,154	9,875		4.9	%	28.23		12.99		31.29		18.94
2028	70	163,274	371,802	61,747	11,524		5.7	%	30.71		14.02		21.75		19.36
2029	54	128,882	243,700	2,200	7,186		3.5	%	29.90		13.11		62.73		19.17
Beyond	67	159,699	820,149	54,721	19,192		9.4	%	28.73		16.70		21.59		18.72
	1,572	3,481,769	7,783,895	494,702	$	203,520	100.0	%	$	27.93	$	13.25	$	16.66	$	17.81

____________________
1	Lease expiration table reflects rents in place as of December 31, 2019 and does not include option periods; 2020 expirations include 8 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 as of December 31, 2019 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 –12/31/2019

DEVELOPMENT AND REDEVELOPMENT PROJECTS

($ in thousands)

Project	MSA	KRG Ownership %	Anticipated Start Date	Projected Stabilization Date1	Projected New Total GLA	Projected New Owned GLA	KRG Share of Estimated Project Cost		KRG Share of Cost Incurred		Estimated Return on Investment3	Description
Active Developments
Eddy Street Commons at Notre Dame, IN - Phase II 2	South Bend, IN	100%	N/A	Q4 2020	530,000	8,500	$	10,000	$	6,286	11.0% - 13.0%
Total					530,000	8,500	$	10,000	$	6,286	11.0% - 13.0%

Future Opportunities4
Hamilton Crossing Centre	Indianapolis, IN	Creation of a mixed use (office, retail, and multi-family) development.
The Corner	Indianapolis, IN	Creation of a mixed use (retail and multi-family) development to replace an unanchored small shop center.
Glendale Town Center	Indianapolis, IN	Repositioning vacant anchor box with several national tenants. Addition of multi-family development.

Summary of Construction in Progress on Consolidated Balance Sheet
Under Construction Development / Redevelopment CIP	$	4,485
Big Box Retenanting	11,498
Holly Springs Towne Center - Phase III	5,913
Various tenant improvements and small projects	19,308
Construction in Progress on Consolidated Balance Sheet	$	41,204

Big Box Surge
Leases Signed	22
Tenants Open and Paying Rent	17
Capital Spent (cumulative)	26,700
Estimated Capital Remaining	16,200
Total Estimated Capital	42,900
Estimated Return on Costs	16	%

Projected Annualized Development / Redevelopment Cash NOI Summary
Remaining Under Construction Development / Redevelopment Cash NOI 5	$	1,256
Total Remaining Annual Cash NOI	$	1,256

____________________
1	Stabilization date represents near completion of project construction and substantial occupancy of the property.
2	Total estimated cost of all components of Eddy Street Phase II equals $90.8 million, consisting of KRG estimated project cost ($10.0 million), TIF ($16.1 million), and residential apartments and townhomes to be ground subleased to unrelated third party ($64.7 million).
3	Projected ROI for redevelopments is an estimate of the expected incremental stabilized annual operating cash flows to be generated divided by the estimated project costs, including construction, development, financing, and other soft costs, when applicable to the project.
4	These opportunities are deemed potential at this time and are subject to various contingencies, many of which could be beyond the Company's control.
5	Does not include NOI associated with Big Box Surge.

p. 24 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

2019 TRANSACTIONS

PROPERTY DISPOSITIONS
Property Name	MSA	Quarter Sold	Sales Price
Whitehall Pike	Bloomington, IN	Q1
Beechwood Promenade	Athens, GA	Q2
Village at Bay Park	Green Bay, WI	Q2
Lakewood Promenade	Jacksonville, FL	Q2
Palm Coast Landing	Palm Coast, FL	Q2
Lowe's - Perimeter Woods	Charlotte, NC	Q2
Cannery Corner	Las Vegas, NV	Q2
Temple Terrace	Tampa, FL	Q2
University Town Center	Oklahoma City, OK	Q2
Gainesville Plaza	Gainesville, FL	Q3
Bolton Plaza	Jacksonville, FL	Q3
Eastgate Plaza	Las Vegas, NV	Q3
Burnt Store	Punta Gorda, FL	Q3
Landstown Commons	Virginia Beach, VA	Q3
Lima Marketplace	Fort Wayne, IN	Q3
Hitchcock Plaza	Aiken, SC	Q3
Merrimack Village Center	Manchester, NH	Q3
Publix at Acworth	Atlanta, GA	Q4
The Center at Panola	Atlanta, GA	Q4
Beacon Hill	Crown Point, IN	Q4
Bell Oaks Centre	Evansville, IN	Q4
Boulevard Crossing	Kokomo, IN	Q4
South Elgin Commons	Chicago, IL	Q4
Total			$	543,799

PROPERTY ACQUISITIONS
Property Name	MSA	Quarter Acquired	Acquisition Price
Pan Am Plaza Garage	Indianapolis, IN	Q1
Nora Plaza	Indianapolis, IN	Q3
Total			$	58,500

p. 25 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

GEOGRAPHIC DIVERSIFICATION –ANNUALIZED BASE RENT BYREGION ANDSTATE

As of December 31, 2019

($ in thousands)

	Total Operating Portfolio Excluding Developments and Redevelopments			Developments and Redevelopments2			Joint Ventures3			Total Operating Portfolio Including Developments and Redevelopments
Region/State	Owned GLA/NRA1	Annualized Base Rent		Owned GLA/NRA1	Annualized Base Rent		Owned GLA/NRA1	Annualized Base Rent		Number of Properties	Owned GLA/NRA1	Annualized Base Rent - Ground Leases		Total Annualized Base Rent		Percent of Annualized Base Rent
South
Florida	3,323,004	$	53,003	124,802	$	251	121,705	$	1,528	30	3,569,511	$	3,845	$	58,627	25.9%
Texas	1,798,944	28,690		—	—		156,150	2,801		10	1,955,094	1,351		32,842		14.5%
North Carolina	1,072,354	20,596		—	—		—	—		8	1,072,354	2,004		22,600		10.0%
Oklahoma	505,220	7,044		—	—		—	—		3	505,220	850		7,894		3.5%
Georgia	276,318	3,664		—	—		—	—		1	276,318	336		4,000		1.8%
Tennessee	230,980	3,808		—	—		—	—		1	230,980	—		3,808		1.7%
South Carolina	257,683	3,245		—	—		—	—		2	257,683	—		3,245		1.4%
Texas - Other	107,400	591		—	—		—	—		1	107,400	—		591		0.3%
Total South	7,571,903	120,641		124,802	251		277,855	4,329		56	7,974,560	8,386		133,607		59.1%
Midwest
Indiana - Retail	1,461,464	23,634		519,216	3,071		—	—		19	1,980,680	1,626		28,331		12.5%
Indiana - Other	366,502	6,684		—	—		—	—		3	366,502	—		6,684		3.0%
Illinois	83,759	1,138		—	—		—	—		1	83,759	—		1,138		0.5%
Ohio	236,230	2,155		—	—		—	—		1	236,230	—		2,155		1.0%
Total Midwest	2,147,955	33,611		519,216	3,071		—	—		24	2,667,171	1,626		38,308		17.0%
West
Nevada	768,745	19,791		—	—		—	—		4	768,745	3,592		23,383		10.3%
Utah	392,157	7,263		—	—		—	—		2	392,157	—		7,263		3.2%
Arizona	79,902	2,467		—	—		—	—		1	79,902	—		2,467		1.1%
Total West	1,240,804	29,521		—	—		—	—		7	1,240,804	3,592		33,113		14.6%
Northeast
New York	363,103	9,302		—	—		—	—		1	363,103	—		9,302		4.1%
New Jersey	106,146	3,127		—	—		139,022	2,817		2	245,168	2,263		8,207		3.6%
Connecticut	205,683	2,566		—	—		—	—		1	205,683	1,061		3,627		1.6%
Total Northeast	674,932	14,995		—	—		139,022	2,817		4	813,954	3,324		21,136		9.3%
	11,635,594	$	198,768	644,018	$	3,322	416,877	$	7,146	91	12,696,489	$	16,928	$	226,164	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 and Pan Am Plaza Parking Garage.
2	Represents the four redevelopment and one development project not in the retail operating portfolio.
3	Represents the three operating properties owned in unconsolidated joint ventures.

p. 26 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

OPERATING RETAIL PORTFOLIO SUMMARY REPORT

As of December 31, 2019

Property	Location (MSA)	Year Built/ Renovated	Owner-ship %	Owned GLA1			Leased %						ABR per SqFt		Grocery Anchors2	Other Retailers2
				Total	Anchors	Shops	Total		Anchors		Shops
Arizona
The Corner	Tucson	2008	100%	79,902	55,883	24,019	100.0	%	100.0	%	100.0	%	$	30.87	Total Wine & More	Nordstrom Rack, Panera Bread, (Home Depot)
Connecticut
Crossing at Killingly Commons	Willimantic, CT	2010	85%	205,683	148,250	57,433	86.0	%	86.2	%	85.5	%	14.50		Stop & Shop Supermarket, (Target)	TJ Maxx, Michaels, Petco, Staples, Lowe's Home Improvement Center
Florida
12th Street Plaza	Vero Beach	1978/2003	100%	135,016	121,376	13,640	100.0	%	100.0	%	100.0	%	10.32		Publix	Stein Mart, Tuesday Morning
Bayport Commons	Tampa	2008	100%	97,163	71,540	25,623	100.0	%	100.0	%	100.0	%	15.38		(Target)	PetSmart, Michaels
Centre Point Commons	Sarasota	2007	100%	119,320	93,574	25,746	98.7	%	100.0	%	93.8	%	17.74			Best Buy, Dick's Sporting Goods, Office Depot, Panera Bread, (Lowe's Home Improvement Center)
Cobblestone Plaza	Miami	2011	100%	133,259	68,219	65,040	96.7	%	100.0	%	93.2	%	28.16		Whole Foods	Party City, Planet Fitness
Colonial Square	Fort Myers	2010	100%	186,517	150,505	36,012	92.4	%	100.0	%	60.7	%	11.94			Kohl's, Hobby Lobby, PetSmart,
Delray Marketplace	Miami	2013	98%	260,298	118,136	142,162	91.6	%	100.0	%	84.6	%	26.42		Publix	Frank Theatres, Burt & Max's, Ann Taylor Loft, Chico's, White House Black Market
Estero Town Commons	Fort Meyers	2006	100%	25,696	—	25,696	94.7	%	—	%	94.7	%	15.23			Lowe's Home Improvement Center, Dollar Tree
Hunter's Creek Promenade	Orlando	1994	100%	119,759	55,999	63,760	100.0	%	100.0	%	100.0	%	15.60		Publix
Indian River Square	Vero Beach	1997/2004	100%	142,592	109,000	33,592	95.9	%	100.0	%	82.7	%	12.17		(Target)	Beall's, Office Depot, Dollar Tree, Panera
International Speedway Square	Daytona Beach	1999/2013	100%	233,424	203,405	30,019	94.6	%	100.0	%	57.9	%	11.23		Total Wine & More	Bed Bath & Beyond, Stein Mart, Old Navy, Staples, Michaels, Dick’s Sporting Goods, Shoe Carnival
Kings Lake Square	Naples	1986/2014	100%	88,611	45,600	43,011	100.0	%	100.0	%	100.0	%	19.30		Publix
Lake City Commons	Lake City	2008	100%	65,746	45,600	20,146	100.0	%	100.0	%	100.0	%	15.58		Publix
Lake City Commons - Phase II	Lake City	2011	100%	16,291	12,131	4,160	100.0	%	100.0	%	100.0	%	15.80		Publix	PetSmart
Lake Mary Plaza	Orlando	2009	100%	21,385	14,880	6,505	100.0	%	100.0	%	100.0	%	38.00			Walgreens
Lithia Crossing	Tampa	2003/2013	100%	90,515	53,547	36,968	100.0	%	100.0	%	100.0	%	16.06		The Fresh Market	Stein Mart, Chili's, Panera Bread
Miramar Square	Miami	2008	100%	225,205	147,505	77,700	99.5	%	100.0	%	98.5	%	17.53		Sprouts Farmers Market	Kohl's, Miami Children's Hospital
Northdale Promenade	Tampa	1985/2017	100%	179,602	130,269	49,333	96.6	%	100.0	%	87.5	%	13.00		(Winn Dixie)	TJ Maxx, Ulta Beauty, Beall's, Crunch Fitness, Tuesday Morning
Pine Ridge Crossing	Naples	1993	100%	105,962	66,435	39,527	96.3	%	100.0	%	90.0	%	18.06		Publix, (Target)	Ulta Beauty, (Beall's)
Pleasant Hill Commons	Orlando	2008	100%	70,645	45,600	25,045	100.0	%	100.0	%	100.0	%	15.86		Publix
Riverchase Plaza	Naples	1991/2001	100%	78,291	48,890	29,401	96.3	%	100.0	%	90.3	%	16.77		Publix
Saxon Crossing	Daytona Beach	2009	100%	119,907	95,304	24,603	97.2	%	100.0	%	86.2	%	15.39		(Target)	Hobby Lobby, LA Fitness, (Lowe's Home Improvement Center)
Shoppes of Eastwood	Orlando	1997	100%	69,076	51,512	17,564	98.1	%	100.0	%	92.5	%	13.87		Publix
Shops at Eagle Creek	Naples	1983/2013	100%	70,731	50,187	20,544	100.0	%	100.0	%	100.0	%	16.53		The Fresh Market	Staples, Panera Bread, (Lowe's Home Improvement Center)
Tamiami Crossing	Naples	2016	20%	121,705	121,705	—	100.0	%	100.0	%	—	%	12.55		Aldi, (Walmart)	Marshalls, Michaels, PetSmart, Ross Stores, Stein Mart, Ulta Beauty
Tarpon Bay Plaza	Naples	2007	100%	81,864	59,442	22,422	97.4	%	100.0	%	90.6	%	17.43		(Target)	PetSmart, Cost Plus World Market, Ross Stores, Panera Bread

See footnotes on page 30

p. 27 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

OPERATING RETAIL PORTFOLIO SUMMARY REPORT (CONTINUED)

As of December 31, 2019

Property1	Location (MSA)	Year Built/ Renovated	Owner-ship %	Owned GLA2			Leased %						ABR per Sq. ft.	Grocery Anchors4	Other Retailers4
				Total	Anchors	Shops	Total		Anchors		Shops
The Landing at Tradition	Port St. Lucie	2007	100%	359,474	283,064	76,410	78.7	%	79.4	%	76.2	%	16.33	(Target)	TJ Maxx, Ulta Beauty, Bed Bath & Beyond, LA Fitness, Michaels, Old Navy, PetSmart, Pier 1, DSW, Five Below, Ross Stores
The Shops at Julington Creek	Jacksonville	2011	100%	40,254	21,038	19,216	100.0	%	100.0	%	100.0	%	20.48	The Fresh Market
Tradition Village Center	Port St. Lucie	2006	100%	84,086	45,600	38,486	98.6	%	100.0	%	97.0	%	18.55	Publix
Waterford Lakes Village	Orlando	1997	100%	77,975	51,703	26,272	96.7	%	100.0	%	90.2	%	13.20	Winn Dixie
Georgia
Mullins Crossing	Augusta	2005	100%	276,318	228,224	48,094	99.3	%	100.0	%	96.1	%	13.35	(Target)	Ross Stores, Old Navy, Five Below, Kohls, La-Z-Boy, Marshalls, Office Max, Petco, Ulta Beauty, Panera Bread
Illinois
Naperville Marketplace	Chicago	2008	100%	83,759	61,683	22,076	97.7	%	100.0	%	91.1	%	13.91	(Caputo's Fresh Market)	TJ Maxx, PetSmart
Indiana
54th & College	Indianapolis	2008	100%	—	—	—	—	%	—	%	—	%	0.00	The Fresh Market
Bridgewater Marketplace	Westfield	2008	100%	25,975	—	25,975	100.0	%	—	%	100.0	%	21.49		(Walgreens), The Local Eatery, Original Pancake House
Castleton Crossing	Indianapolis	1975/2012	100%	286,377	247,710	38,667	100.0	%	100.0	%	100.0	%	12.30		TJ Maxx/HomeGoods, Burlington, Shoe Carnival, Value City Furniture, K&G Menswear, Chipotle, Verizon, Five Below
Cool Creek Commons	Westfield	2005	100%	124,303	53,600	70,703	96.4	%	100.0	%	93.7	%	19.30	The Fresh Market	Stein Mart, McAlister's Deli, Buffalo Wild Wings, Pet People
Depauw University Bookstore and Café	Indianapolis	2012	100%	11,974	—	11,974	100.0	%	—	%	100.0	%	9.17		Follett's, Starbucks
Eddy Street Commons at Notre Dame	South Bend	2009	100%	87,987	20,154	67,833	98.8	%	100.0	%	98.4	%	26.66		Hammes Bookstore & Cafe, Chipotle, Urban Outfitters, Five Guys, Kilwins, Blaze Pizza
Fishers Station	Fishers	1989/2018	100%	52,400	15,441	36,959	97.8	%	100.0	%	96.9	%	17.72		Dollar Tree, Goodwill
Geist Pavilion	Fishers	2006	100%	63,910	29,700	34,210	100.0	%	100.0	%	100.0	%	17.43		Ace Hardware, Goodwill, Ale Emporium, Pure Barre
Greyhound Commons	Carmel	2005	100%	9,152	—	9,152	100.0	%	—	%	100.0	%	14.74		(Lowe's Home Improvement Center), Abuelo's Mexican, Koto Japenese Steakhouse
Nora Plaza	Indianapolis	2004	100%	139,743	73,589	66,154	100.0	%	100.0	%	100.0	%	15.17	Whole Foods, (Target)	Marshalls
Rangeline Crossing	Carmel	1986/2013	100%	99,226	47,962	51,264	97.2	%	100.0	%	94.5	%	22.94		Walgreens, Panera Bread, Pet Valu, City BBQ
Rivers Edge	Indianapolis	2011	100%	150,428	117,890	32,538	100.0	%	100.0	%	100.0	%	22.20		Nordstrom Rack, The Container Store, Arhaus Furniture, Bicycle Garage of Indy, Buy Buy Baby, J Crew Mercantile
Stoney Creek Commons	Noblesville	2000/2013	100%	84,226	84,226	—	64.1	%	64.1	%	—	%	14.38		LA Fitness, Goodwill, (Lowe's Home Improvement Center)
Traders Point I	Indianapolis	2005	100%	279,786	238,721	41,065	73.9	%	71.6	%	87.5	%	14.69		Dick's Sporting Goods, AMC Theatres, Bed Bath & Beyond, Michaels, Old Navy, PetSmart, Books-A-Million
Traders Point II	Indianapolis	2005	100%	45,977	—	45,977	92.2	%	—	%	92.2	%	27.59		Starbucks, Noodles & Company, Qdoba

See footnotes on page 30

p. 28 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

OPERATING RETAIL PORTFOLIO SUMMARY REPORT (CONTINUED)

As of December 31, 2019

Property1	Location (MSA)	Year Built/ Renovated	Owner-ship %	Owned GLA2			Leased %						ABR per Sqft	Grocery Anchors4	Other Retailers4
				Total	Anchors	Shops	Total		Anchors		Shops
Nevada
Centennial Center	Las Vegas	2002	100%	334,042	147,824	186,218	96.5	%	100.0	%	93.7	%	25.45	Sam's Club, Walmart	Ross Stores, Big Lots, Famous Footwear, Michaels, Petco, Home Depot, HomeGoods, Skechers, Five Below, Sephora
Centennial Gateway	Las Vegas	2005	100%	193,072	139,913	53,159	99.4	%	100.0	%	97.8	%	25.55	Trader Joe's	24 Hour Fitness, Party City, Sportsman's Warehouse, Walgreens
Eastern Beltway Center	Las Vegas	1998/2006	100%	162,317	77,436	84,881	90.9	%	100.0	%	82.5	%	27.36	Sam's Club, Walmart	Petco, Ross Stores, Skechers, Old Navy, (Home Depot)
Rampart Commons	Las Vegas	2002/2018	100%	79,314	11,965	67,349	100.0	%	100.0	%	100.0	%	33.45		Athleta, North Italia, Pottery Barn, Williams Sonoma, Flower Child, Crunch Fitness
New Jersey
Bayonne Crossing	New York / Northern New Jersey	2011	100%	106,146	52,219	53,927	100.0	%	100.0	%	100.0	%	29.46	Walmart	Michaels, New York Sports Club, Lowe's Home Improvement Center
Livingston Shopping Center	New York / Northern New Jersey	1997	20%	139,022	133,125	5,897	100.0	%	100.0	%	100.0	%	20.26		Cost Plus World Market, Buy Buy Baby, Nordstrom Rack, DSW, TJ Maxx, Ulta Beauty
New York
City Center	New York / Northern New Jersey	2004/2018	100%	363,103	325,139	37,964	96.9	%	100.0	%	70.7	%	26.43	ShopRite	Nordstrom Rack, New York Sports Club, Burlington, Club Champion Golf, National Amusements
North Carolina
Holly Springs Towne Center - Phase I	Raleigh	2013	100%	209,852	121,761	88,091	95.9	%	100.0	%	90.2	%	18.04	(Target)	Dick's Sporting Goods, Marshalls, Petco, Ulta Beauty, Michaels, Old Navy, Five Below
Holly Springs Towne Center - Phase II	Raleigh	2016	100%	144,995	111,843	33,152	100.0	%	100.0	%	100.0	%	17.83	(Target)	Bed Bath & Beyond, DSW, AMC Theatres, 02 Fitness
Northcrest Shopping Center	Charlotte	2008	100%	133,627	65,576	68,051	97.0	%	100.0	%	94.1	%	23.77	(Target)	REI Co-Op, David's Bridal, Old Navy, Five Below
Oleander Place	Wilmington	2012	100%	45,524	30,144	15,380	100.0	%	100.0	%	100.0	%	17.91	Whole Foods
Parkside Town Commons - Phase I	Raleigh	2015	100%	55,368	22,500	32,868	100.0	%	100.0	%	100.0	%	25.61	Harris Teeter/Kroger, (Target)	Petco, Guitar Center
Parkside Town Commons - Phase II	Raleigh	2017	100%	296,715	187,406	109,309	99.5	%	100.0	%	98.6	%	17.33	(Target)	Frank Theatres, Golf Galaxy, Hobby Lobby, Stein Mart, Chuy's, Starbucks, Panera Bread, Levity Live
Perimeter Woods	Charlotte	2008	100%	125,646	105,262	20,384	100.0	%	100.0	%	100.0	%	20.71		Best Buy, Off Broadway Shoes, PetSmart, Michaels, (Lowe's Home Improvement Center)
Toringdon Market	Charlotte	2004	100%	60,627	26,072	34,555	97.9	%	100.0	%	96.3	%	22.71	Earth Fare
Ohio
Eastgate Pavilion	Cincinnati	1995	100%	236,230	231,730	4,500	100.0	%	100.0	%	100.0	%	9.12		Best Buy, Dick's Sporting Goods, Value City Furniture, Petsmart, DSW, Bed Bath & Beyond
Oklahoma
Belle Isle Station	Oklahoma City	2000	100%	196,298	115,783	80,515	96.9	%	100.0	%	92.4	%	17.92	(Walmart)	REI, Shoe Carnival, Old Navy, Ross Stores, Nordstrom Rack, Ulta Beauty, Five Below
Shops at Moore	Oklahoma City	2010	100%	260,482	187,916	72,566	97.2	%	100.0	%	90.0	%	12.25		Bed Bath & Beyond, Best Buy, Hobby Lobby, Office Depot, PetSmart, Ross Stores, (J.C. Penney)
Silver Springs Pointe	Oklahoma City	2001	100%	48,440	20,515	27,925	83.0	%	100.0	%	70.4	%	13.28	(Sam's Club), (Walmart)	Kohls, Office Depot, (Home Depot)

See footnotes on page 30

p. 29 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

OPERATING RETAIL PORTFOLIO SUMMARY REPORT (CONTINUED)

As of December 31, 2019

Property1	Location (MSA)	Year Built/ Renovated	Owner-ship %	Owned GLA2			Leased %						ABR per Sqft		Other Retailers4
				Total	Anchors	Shops	Total		Anchors		Shops			Grocery Anchor4
South Carolina
Publix at Woodruff	Greenville	1997	100%	68,119	47,955	20,164	96.8	%	100.0	%	89.3	%	11.06	Publix
Shoppes at Plaza Green	Greenville	2000	100%	189,564	161,900	27,664	98.2	%	100.0	%	87.6	%	13.51		Bed Bath & Beyond, Christmas Tree Shops, Sears, Party City, Shoe Carnival, AC Moore, Old Navy
Tennessee
Cool Springs Market	Nashville	1995	100%	230,980	172,712	58,268	100.0	%	100.0	%	100.0	%	16.48	(Kroger)	Dick's Sporting Goods, Marshalls, Buy Buy Baby, DSW, Staples, Jo-Ann Fabric, Panera Bread
Texas
Chapel Hill Shopping Center	Dallas/Ft. Worth	2001	100%	126,986	43,450	83,536	97.2	%	100.0	%	95.8	%	26.28	H-E-B Grocery	The Container Store, Cost Plus World Market
Colleyville Downs	Dallas/Ft. Worth	2014	100%	194,666	139,219	55,447	97.3	%	100.0	%	90.4	%	15.45	Whole Foods	Westlake Hardware, Goody Goody Liquor, Petco, Fit Factory
Kingwood Commons	Houston	1999	100%	158,109	74,836	83,273	94.3	%	100.0	%	89.2	%	21.24	Randall's Food and Drug	Petco, Chico's, Talbots, Ann Taylor
Market Street Village/ Pipeline Point	Dallas/Ft. Worth	1970/2011	100%	156,621	136,742	19,879	100.0	%	100.0	%	100.0	%	13.20		Jo-Ann Fabric, Ross Stores, Office Depot, Buy Buy Baby, Party City
Plaza at Cedar Hill	Dallas/Ft. Worth	2000/2010	100%	295,758	234,358	61,400	98.5	%	100.0	%	92.6	%	13.75	Sprouts Farmers Market, Total Wine	DSW, Ross Stores, Hobby Lobby, Office Max, Marshalls, Home Goods
Plaza Volente	Austin	2004	20%	156,150	105,000	51,150	100.0	%	100.0	%	100.0	%	17.94	H-E-B Grocery
Portofino Shopping Center	Houston	1999/2010	100%	369,846	218,861	150,985	94.0	%	100.0	%	85.2	%	19.72	(Sam's Club)	DSW, Michaels, PGA Superstore, SteinMart, PetSmart, Old Navy, TJ Maxx, Nordstrom Rack, Five Below
Sunland Towne Centre	El Paso	1996/2014	100%	306,454	265,037	41,417	98.9	%	100.0	%	91.7	%	11.26	Sprouts Farmers Market	PetSmart, Ross Stores, Bed Bath & Beyond, Spec's Fine Wines, At Home
Waxahachie Crossing	Dallas/Ft. Worth	2010	100%	97,127	72,191	24,936	100.0	%	100.0	%	100.0	%	15.07		Best Buy, PetSmart, Ross Stores, (Home Depot), (J.C. Penney)
Westside Market	Dallas/Ft. Worth	2013	100%	93,377	70,000	23,377	100.0	%	100.0	%	100.0	%	16.61	Randalls Tom Thumb
Utah
Draper Crossing	Salt Lake City	2012	100%	164,657	115,916	48,741	100.0	%	100.0	%	100.0	%	16.97	Kroger/Smith's	TJ Maxx, Dollar Tree, Downeast Home
Draper Peaks	Salt Lake City	2012	100%	227,500	101,464	126,036	95.2	%	100.0	%	91.3	%	20.64		Michaels, Office Depot, Petco, Quilted Bear, Ross Stores, (Kohl's)
Total				11,554,229	7,878,569	3,675,660	96.1	%	97.8	%	92.5	%	17.83
Total at Pro-Rata Share				11,220,882	7,590,705	3,630,177	96.0	%	97.7	%	92.4	%	17.85

____________________
1	Percentage of Owned GLA Leased reflects Owned GLA/NRA leased as of December 31, 2019, except for Greyhound Commons and 54th & College.
2	Tenants within parentheses are non-owned.

p. 30 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

NON-RETAIL OPERATING PROPERTIES

As of December 31, 2019

($ in thousands, except per square foot data)

Property	MSA	Year Built/ Renovated	Owned NRA	Percentage Of Owned NRA Leased		Annualized Base Rent1		Percentage of Annualized Office and Other Base Rent		Base Rent Per Leased Sq. Ft.		Major Tenants
Commercial Properties
Thirty South Meridian2	Indianapolis	1905/2002	284,874	95.9	%	$	5,392	67.5	%	$	19.74	Carrier, Kite Realty Group, Lumina Foundation
Union Station Parking Garage3	Indianapolis	1986	N/A	N/A		N/A		N/A		N/A		Denison Parking (manager)
Pan Am Plaza Parking Garage3	Indianapolis		N/A	N/A		N/A		N/A		N/A		Denison Parking (manager)
Stand-alone Office Components of Retail Properties
Eddy Street Office (part of Eddy Street Commons)4	South Bend	2009	81,628	100.0	%	1,292		16.2	%	15.82		University of Notre Dame Offices
Tradition Village Office (part of Tradition Village Square)	Port St. Lucie	2006	24,340	100.0	%	713		8.9	%	29.30
Total Commercial Properties			390,842	96.2	%	$	7,397	92.6	%	$	19.51
Other Properties
Burlington	San Antonio	1992/2000	107,400	100.0	%	$	591	7.4	%	$	5.50	Burlington
			107,400	100.0	%	$	591	7.4	%	$	5.50
Total Commercial and Other			498,242	97.7	%	$	7,988	100.0	%	$	16.42
Multi-Family/Lodging
Embassy Suites South Bend at Notre Dame5	South Bend	2018	—	N/A		—		—		—		Full service hotel with 164 rooms
The Foundry Lofts and Apartments at Eddy Street	South Bend	2009	—	100.0	%	—		—		—		Air rights lease for apartment complex with 266 units
Summit at City Center Apartments	New York / Northern New Jersey	2004	—	100.0	%	—		—		—		Apartment complex with 26 units.

____________________
1	Annualized Base Rent represents the monthly contractual rent as of December 31, 2019 for each applicable property, multiplied by 12.
2	Annualized Base Rent includes $929,157 from the Company and subsidiaries as of December 31, 2019, 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	Property owned in an unconsolidated joint venture.

p. 31 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

COMPONENTS OF NET ASSET VALUE

As of December 31, 2019

($ in thousands)

Cash Net Operating Income (NOI)				Supplemental Page No.:	Other Assets				Supplemental Page No.:
GAAP property NOI (incl. Ground Lease Revenue)	$	54,491		13	Cash and cash equivalents	$	31,336		10
Below-market lease intangibles, net	(795		)	15	Tenant and other receivables (net of SLR)	28,030			10
Straight-line rent	(784		)	15	Restricted cash and escrow deposits	21,477			10
Other property related revenue	(254		)	13	Prepaid and other assets	34,548			10
Ground lease ("GL") revenue	(4,232		)		Undeveloped land in operating portfolio 1	13,000
Consolidated Cash Property NOI (excl. GL)	$	48,426			Land held for development	15,215
Annualized Consolidated Cash Property NOI (excl. ground leases)	$	193,704			CIP not in under construction development/redevelopment2	19,308			24
					Total Other Asset Value	$	162,914
Adjustments To Normalize Annualized Cash NOI					Liabilities
Total projected remaining development / transitional redevelopment cash NOI 3	$	1,256		24	Mortgage and other indebtedness	$	(1,146,580	)	10
Unconsolidated EBITDA	3,097			17	KRG share of unconsolidated debt	(22,148		)	17
Pro-forma adjustments 4	(6,071		)	20	Partner share of consolidated joint venture debt	1,117			17
					Accounts payable and accrued expenses	(69,817		)	11
General and administrative expense allocable to property management activities included in property expenses ($1,500 in Q4)	6,000			13, footnote 3	Other liabilities5	(40,108		)	10
Total Adjustments	4,282				Debt premium and issuance costs, net	(6,722		)	18
					Non-controlling redeemable joint venture interest	(10,070		)
					Projected remaining under construction development/redevelopment6	(3,714		)
Annualized Normalized Portfolio Cash NOI (excl. Ground Leases)	$	197,986			Total Liabilities	$	(1,298,042	)
Annualized Ground Lease NOI	16,928
Total Annualized Portfolio Cash NOI	$	214,914			Common Shares and Units Outstanding	86,073,406

____________________
1	Undeveloped land with a book value of $13.0 million at December 31, 2019.
2	Includes CIP amounts for Holly Springs Town Center - Phase III, miscellaneous tenant improvements and small projects.
3	Excludes the projected cash NOI and related cost from the redevelopment opportunities outlined on page 24.
4	Annualized cash NOI for properties sold and acquired during the quarter.
5	Deferred revenue and other liabilities of $90.2 million less mark-to-market lease liability of $50.1 million.
6	Remaining cost on page 24 for development project.

p. 32 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

EARNINGS GUIDANCE - 2020

	2020 Guidance 1
Net Income	$0.13 - $0.17
NAREIT FFO	$1.48 - $1.52
Same Property NOI Growth (excluding redevelopments)	1.00% - 2.00%
Bad Debt Assumption (in addition to known vacancies and any declared or imminent bankruptcies)	90 bps of Same-Property Revenues

Net Income to NAREIT FFO Reconciliation	Low		High
Net Income Guidance	$	0.13	$	0.17
Depreciation and Amortization	1.35		1.35
NAREIT FFO Guidance	$	1.48	$	1.52

2020 Estimated FFO Per Share Bridge
	Low End	High End
2019 NAREIT FFO	$1.53	$1.53
Loss on debt extinguishment	0.13	0.13
2019 FFO (as adjusted)	1.66	1.66
Impact of 2019 Transactions	(0.20)	(0.20)
Term fee related to office building	(0.02)	(0.02)
2020 Same-Property NOI	0.02	0.04
2020 Other Items	0.02	0.04
2020 Estimated NAREIT FFO	1.48	1.52
Estimated adjustments	0.00	0.00
2020 Estimated FFO (as adjusted)	$1.48	$1.52

_________
1	The Company’s 2020 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.

p. 33 Kite Realty Group Trust Supplemental Financial and Operating Statistics –12/31/2019

XML

COVER PAGE COVER PAGE	Feb. 18, 2020
Cover page.
Document Type	8-K
Document Period End Date	Feb. 18, 2020
Entity Registrant Name	KITE REALTY GROUP TRUST
Entity Incorporation, State or Country Code	MD
Entity File Number	1-32268
Entity Tax Identification Number	11-3715772
Entity Address, Address Line One	30 S. Meridian Street
Entity Address, Address Line Two	Suite 1100
Entity Address, City or Town	Indianapolis
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46204
City Area Code	(317)
Local Phone Number	577-5600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Shares, $0.01 par value per share
Trading Symbol	KRG
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0001286043
Amendment Flag	false