KRG 8-K
Kite Realty Group Trust (KRG)
8-K
2021-10-28
For: 2021-10-28
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Added on
July 04, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 28, 2021
(Exact name of registrant as specified in its charter)
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| of incorporation) | File Number) | Identification Number) | ||||||
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(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):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | |||||||
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 October 28, 2021, Kite Realty Group Trust (the “Company”) announced its consolidated financial results for the quarter ended September 30, 2021. A copy of the Company’s press release is furnished as Exhibit 99.1 to this current report on Form 8-K. A copy of the Company’s Third Quarter 2021 Supplemental Disclosure is furnished as Exhibit 99.2 to this current report on Form 8-K. The information contained in Item 2.02 of this current report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.
Item 9.01. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Kite Realty Group Trust Press Release dated October 28, 2021 | |||||||
| 99.2 | Kite Realty Group Trust Third Quarter 2021 Supplemental Disclosure | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KITE REALTY GROUP TRUST | ||||||||
| Date: October 28, 2021 | By: | /s/ Heath R. Fear | ||||||
| Heath R. Fear | ||||||||
| Executive Vice President and | ||||||||
| Chief Financial Officer | ||||||||
EXHIBIT INDEX
| Exhibit | Document | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| Exhibit 99.1 | ||||||||
 | ||
PRESS RELEASE
Contact Information: Kite Realty Group Trust
Jason Colton
SVP, Capital Markets & Investor Relations
317.713.2762
Kite Realty Group Trust Reports Third Quarter 2021 Operating Results
Indianapolis, Indiana, October 28, 2021 - Kite Realty Group Trust (NYSE: KRG), a premier owner and operator of high-quality, open-air grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets, reported today its operating results for the third quarter ended September 30, 2021.
“I could not be more impressed with how the KRG team produced tremendous third quarter results while simultaneously pursuing a transformative merger with RPAI,” said John A. Kite, Chairman and CEO. “Demand for high-quality open-air retail remains robust, and we continue to capitalize on a favorable leasing environment. With the merger complete we expect the momentum to continue. KRG’s open-air portfolio has a productive mix of properties predominantly located in high-growth warmer and cheaper markets, with an increased presence in strategic gateway markets. I am excited to welcome our new colleagues – together we have a stronger team, a best-in-class platform, and a dynamic portfolio. I cannot thank the entire team enough. I know we will all continue our tireless work to drive long-term value to our stakeholders.”
Third Quarter Financial Results
•Realized net loss attributable to common shareholders of $7.0 million, or $0.08 per common share, compared to net loss of $4.6 million, or $0.05 per common share, for the three months ending September 30, 2021 and 2020, respectively.
•Generated NAREIT Funds From Operations of the Operating Partnership (FFO) of $22.3 million, or $0.25 per diluted common share.
•Generated Funds From Operations, as adjusted, of the Operating Partnership (FFO) of $29.5 million, or $0.33 per diluted common share.
◦Excludes a positive impact of $2.1 million of 2020 Collection Impact, which is related to the recovery of 2020 cash and non-cash bad debt and accounts receivable.
◦Excludes the impact of $9.2 million of merger and acquisition costs.
•Same-Property Net Operating Income (NOI) increased by 10.8%.
Third Quarter Portfolio Operations
•Executed 82 new and renewal leases representing over 584,000 square feet.
◦GAAP leasing spreads of 32.5% (20.6% cash basis) on 17 comparable new leases, 16.1% (10.4% cash basis) on 33 comparable renewals, and 20.7% (13.4% cash basis) on a blended basis.
•Signed 7 new anchor leases, including 3 grocery leases.
◦Brings signed Anchor Acceleration leases to 12 since the program’s inception, generating an average 26% cash yield and a 14% comparable cash leasing spread on 8 comparable leases.
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•Annualized base rent (ABR) per square foot for the operating retail portfolio was $18.54, a 3% increase year-over-year.
•Retail leased percentage was 92.8%, a sequential increase of 130 basis points.
◦Portfolio leased-to-occupied spread is 400 basis points, which equates to $14 million of signed-not-open NOI.
Third Quarter Development Activity
•Entered into a joint venture with a local developer for the construction of 285 multi-family units and 24,000 square feet of ground floor retail at The Corner in Carmel, IN. KRG sold the land to the venture and retained a 50% interest in the venture.
•Commenced development activities on a vacant parcel for a new Fresh Market and additional shop space at The Landing at Tradition in Port St. Lucie, FL.
Transaction Activity
•Subsequent to quarter end, KRG sold Westside Market for $24.8 million.
Balance Sheet Overview
•As of September 30, 2021, KRG’s net-debt-to-Adjusted EBITDA was 6.1x.
•Pro forma for $14 million of signed-not-open NOI, net-debt-to-adjusted EBITDA would be 5.7x.
•Subsequent to quarter end, received inaugural credit rating of BBB with a stable outlook from Fitch Ratings.
Merger Completion
•Subsequent to quarter end, on October 22, 2021, KRG completed the transformative merger with RPAI.
•Strategic merits of the transaction can be found in KRG’s third quarter investor update posted on the company website and include, but are not limited to, the following:
◦Immediate accretion to FFO and NAV.
◦Created a top 5 shopping center REIT, which will provide capital market benefits and deepen tenant relationships by offering a broader mix of open-air retail formats.
◦Increased geographic footprint in high-growth warmer and cheaper markets and added a meaningful presence in select strategic gateway markets.
◦Enhanced growth opportunities through several strong active development projects and numerous entitled land sites to be used for additional value creation.
◦Strengthened KRG’s balance sheet, with no material debt maturities until 2023.
•KRG estimates stabilized GAAP synergies of approximately $34 – $36 million, of which $21 million has been realized as of the closing and the balance is anticipated to be realized over the next 12 – 18 months.
2021 Earnings Guidance
•Due to the timing of the merger, which closed in the fourth quarter, KRG is withdrawing 2021 guidance. The Company will issue 2022 earnings guidance, as a combined company, in conjunction with KRG’s fourth quarter earnings release.
Earnings Conference Call
Kite Realty Group Trust will conduct a conference call to discuss its financial results on Friday, October 29, 2021, at 11:00 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 (Conference ID: 4559979). In addition, a webcast replay link will be available on the corporate website.
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About Kite Realty Group Trust
Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The company’s primarily grocery-anchored portfolio is located in high-growth warmer and cheaper markets and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of September 30, 2021, proforma for the merger, the company owned interests in 185 U.S. open-air shopping centers and mixed-use assets, comprising over 30 million square feet of gross leasable space. For more information, please visit kiterealty.com.
Connect with KRG: LinkedIn | Twitter | Instagram | Facebook
Safe Harbor
This release, 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 (the “Securities Act”) 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.
Currently, one of the most significant factors that could cause actual outcomes to differ significantly from our forward-looking statements is the potential adverse effect of the current pandemic of the novel coronavirus, or COVID-19, including possible resurgences and mutations, on the financial condition, results of operations, cash flows and performance of the Company and its tenants, the real estate market and the global economy and financial markets. The effects of COVID-19 have caused and may continue to cause many of our tenants to close stores, reduce hours or significantly limit service, making it difficult for them to meet their rent obligations, and therefore has and will continue to impact us significantly for the foreseeable future. COVID-19 has impacted us significantly, and the extent to which it will continue to impact us and our tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the continued speed of the vaccine distribution, the efficacy of vaccines, including against variants of COVID-19, acceptance and availability of vaccines, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic.
Additional risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to: the risks associated with the merger with RPAI, including the integration of the businesses of the combined company, the ability to achieve expected synergies or costs savings and potential disruptions to the Company’s plans and operations; 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; the Company’s ability to refinance, or extend the maturity dates of, the Company’s indebtedness; the level and volatility of interest rates; the financial stability of tenants, including their ability to pay rent or request rent concessions, and the risk of tenant insolvency and bankruptcy; the competitive environment in which the Company operates, including potential oversupplies of and reduction in demand for rental space; acquisition, disposition, development and joint venture risks; property ownership and management risks, including the relative illiquidity of real estate investments, periodic costs to repair, renovate and re-lease spaces, operating costs and expenses, vacancies or the inability to rent space on favorable terms or at all; the Company’s ability to maintain the Company’s status as a real estate investment trust for U.S. federal income tax purposes; potential environmental and other liabilities;
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impairment in the value of real estate property the Company owns; the attractiveness of our properties to tenants, the actual and perceived impact of e-commerce on the value of shopping center assets and changing demographics and customer traffic patterns; risks related to our current geographical concentration of the Company’s properties in Texas, Florida, New York, Maryland, Virginia and North Carolina; civil unrest, acts of terrorism or war, acts of God, climate change, epidemics, pandemics (including COVID-19), natural disasters and severe weather conditions such as hurricanes, tropical storms, tornadoes, earthquakes, droughts, floods and fires, including such events or conditions that may result in underinsured or uninsured losses or other increased costs and expenses; changes in laws and government regulations including governmental orders affecting the use of the Company’s properties or the ability of its tenants to operate, and the costs of complying with such changed laws and government regulations; possible short-term or long-term changes in consumer behavior due to COVID-19 and the fear of future pandemics; 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 the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in the Company’s 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.
This Earnings Release also includes certain forward-looking non-GAAP information. Due to high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these estimates, together with some of the excluded information not being ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable efforts.
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Kite Realty Group Trust
Consolidated Balance Sheets
(Unaudited)
| ($ in thousands) | ||||||||||||||
| September 30, 2021 | December 31, 2020 | |||||||||||||
| Assets: | ||||||||||||||
| Investment properties at cost: | $ | 3,124,987 | $ | 3,143,961 | ||||||||||
| Less: accumulated depreciation | (816,993) | (755,100) | ||||||||||||
| 2,307,994 | 2,388,861 | |||||||||||||
| Cash and cash equivalents | 99,514 | 43,648 | ||||||||||||
| Tenant and other receivables, including accrued straight-line rent of $25,143 and $24,783, respectively | 45,873 | 57,154 | ||||||||||||
| Restricted cash and escrow deposits | 4,285 | 2,938 | ||||||||||||
| Deferred costs, net | 54,231 | 63,171 | ||||||||||||
| Short-term deposits | 125,000 | — | ||||||||||||
| Prepaid and other assets | 39,165 | 39,975 | ||||||||||||
| Investments in unconsolidated subsidiaries | 12,956 | 12,792 | ||||||||||||
| Assets held for sale | 19,866 | — | ||||||||||||
| Total Assets | $ | 2,708,884 | $ | 2,608,539 | ||||||||||
| Liabilities and Shareholders' Equity: | ||||||||||||||
| Mortgage and other indebtedness, net | $ | 1,288,994 | $ | 1,170,794 | ||||||||||
| Accounts payable and accrued expenses | 85,721 | 77,469 | ||||||||||||
| Deferred revenue and other liabilities | 81,344 | 85,649 | ||||||||||||
| Total Liabilities | 1,456,059 | 1,333,912 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Limited Partners' interests in Operating Partnership and other | 53,281 | 43,275 | ||||||||||||
| Equity: | ||||||||||||||
| Kite Realty Group Trust Shareholders' Equity: | ||||||||||||||
| Common Shares, $.01 par value, 225,000,000 shares authorized, 84,575,441 and 84,187,999 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 846 | 842 | ||||||||||||
| Additional paid in capital | 2,069,983 | 2,085,003 | ||||||||||||
| Accumulated other comprehensive loss | (22,476) | (30,885) | ||||||||||||
| Accumulated deficit | (849,507) | (824,306) | ||||||||||||
| Total Kite Realty Group Trust Shareholders' Equity | 1,198,846 | 1,230,654 | ||||||||||||
| Noncontrolling Interest | 698 | 698 | ||||||||||||
| Total Equity | 1,199,544 | 1,231,352 | ||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 2,708,884 | $ | 2,608,539 | ||||||||||
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Kite Realty Group Trust
Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2021 and 2020
(Unaudited)
| ($ in thousands, except per share data) | ||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||
| Rental income | $ | 70,216 | $ | 64,293 | $ | 206,097 | $ | 191,359 | ||||||||||||||||||
| Other property related revenue | 1,054 | 670 | 3,133 | 6,626 | ||||||||||||||||||||||
| Fee income | 195 | 104 | 1,144 | 299 | ||||||||||||||||||||||
| Total revenue | 71,465 | 65,067 | 210,374 | 198,284 | ||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||
| Property operating | 10,482 | 10,330 | 30,978 | 30,450 | ||||||||||||||||||||||
| Real estate taxes | 8,624 | 9,362 | 26,574 | 26,551 | ||||||||||||||||||||||
| General, administrative, and other | 8,241 | 6,482 | 23,676 | 19,986 | ||||||||||||||||||||||
| Merger and acquisition costs | 9,198 | — | 9,958 | — | ||||||||||||||||||||||
| Depreciation and amortization | 30,193 | 33,953 | 90,625 | 96,830 | ||||||||||||||||||||||
| Total expenses | 66,738 | 60,127 | 181,811 | 173,817 | ||||||||||||||||||||||
| Gain on sale of properties, net | 1,260 | 3,226 | 27,517 | 4,893 | ||||||||||||||||||||||
| Operating income | 5,987 | 8,166 | 56,080 | 29,360 | ||||||||||||||||||||||
| Interest expense | (12,878) | (12,550) | (37,386) | (38,115) | ||||||||||||||||||||||
| Income tax benefit of taxable REIT subsidiary | 91 | 190 | 308 | 496 | ||||||||||||||||||||||
| Equity in loss of unconsolidated subsidiaries | (196) | (417) | (758) | (1,256) | ||||||||||||||||||||||
| Other income, net | 168 | (16) | 189 | 234 | ||||||||||||||||||||||
| Net (loss) income | (6,828) | (4,627) | 18,433 | (9,281) | ||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (132) | 40 | (1,058) | (148) | ||||||||||||||||||||||
| Net (loss) income attributable to Kite Realty Group Trust common shareholders | $ | (6,960) | $ | (4,587) | $ | 17,375 | $ | (9,429) | ||||||||||||||||||
| Net (loss) income per common share - basic | $ | (0.08) | $ | (0.05) | $ | 0.21 | $ | (0.11) | ||||||||||||||||||
| Net (loss) income per common share - diluted | $ | (0.08) | $ | (0.05) | $ | 0.20 | $ | (0.11) | ||||||||||||||||||
| Weighted average common shares outstanding - basic | 84,556,689 | 84,194,821 | 84,468,519 | 84,125,405 | ||||||||||||||||||||||
| Weighted average common shares outstanding - diluted | 84,556,689 | 84,194,821 | 85,383,849 | 84,125,405 | ||||||||||||||||||||||
| Dividends per common share | $ | 0.1800 | $ | 0.0520 | $ | 0.5000 | $ | 0.3695 | ||||||||||||||||||
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Kite Realty Group Trust
Funds From Operations
For the Three and Nine Months Ended September 30, 2021 and 2020
(Unaudited)
| ($ in thousands, except per share data) | ||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| Funds From Operations | ||||||||||||||||||||||||||
| Consolidated net (loss) income | $ | (6,828) | $ | (4,627) | $ | 18,433 | $ | (9,281) | ||||||||||||||||||
| Less: net income attributable to noncontrolling interests in properties | (132) | (132) | (396) | (396) | ||||||||||||||||||||||
| Less: Gain on sales of properties | (1,260) | (3,226) | (27,517) | (4,893) | ||||||||||||||||||||||
| Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests | 30,537 | 34,295 | 91,650 | 97,827 | ||||||||||||||||||||||
FFO of the Operating Partnership1 | 22,317 | 26,310 | 82,170 | 83,257 | ||||||||||||||||||||||
| Less: Limited Partners' interests in FFO | (543) | (657) | (2,301) | (2,165) | ||||||||||||||||||||||
FFO attributable to Kite Realty Group Trust common shareholders1 | $ | 21,774 | $ | 25,653 | $ | 79,869 | $ | 81,092 | ||||||||||||||||||
| FFO, as defined by NAREIT, per share of the Operating Partnership - basic | $ | 0.26 | $ | 0.30 | $ | 0.95 | $ | 0.96 | ||||||||||||||||||
| FFO, as defined by NAREIT, per share of the Operating Partnership - diluted | $ | 0.25 | $ | 0.30 | $ | 0.94 | $ | 0.96 | ||||||||||||||||||
FFO of the Operating Partnership1 | $ | 22,317 | $ | 26,310 | $ | 82,170 | $ | 83,257 | ||||||||||||||||||
| Add: merger and acquisition costs | 9,198 | — | 9,958 | — | ||||||||||||||||||||||
| Less: 2020 Collection Impact | (2,063) | — | (3,329) | — | ||||||||||||||||||||||
| FFO, as adjusted, of the Operating Partnership | $ | 29,452 | $ | 26,310 | $ | 88,799 | $ | 83,257 | ||||||||||||||||||
| FFO, as adjusted, per share of the Operating Partnership - basic | $ | 0.34 | $ | 0.30 | $ | 1.02 | $ | 0.96 | ||||||||||||||||||
| FFO, as adjusted, per share of the Operating Partnership - diluted | $ | 0.33 | $ | 0.30 | $ | 1.01 | $ | 0.96 | ||||||||||||||||||
| Weighted average common shares outstanding - basic | 84,556,689 | 84,194,821 | 84,468,519 | 84,125,405 | ||||||||||||||||||||||
| Weighted average common shares outstanding - diluted | 85,582,358 | 84,384,457 | 85,383,849 | 84,300,979 | ||||||||||||||||||||||
| Weighted average common shares and units outstanding - basic | 87,003,748 | 86,429,812 | 86,951,170 | 86,341,243 | ||||||||||||||||||||||
| Weighted average common shares and units outstanding - diluted | 88,029,417 | 86,619,448 | 87,866,501 | 86,516,817 | ||||||||||||||||||||||
| FFO, as defined by NAREIT, per diluted share/unit | ||||||||||||||||||||||||||
| Consolidated net income (loss) | $ | (0.08) | $ | (0.05) | $ | 0.21 | $ | (0.11) | ||||||||||||||||||
| Less: net income attributable to noncontrolling interests in properties | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||
| Less: Gain on sales of properties | (0.01) | (0.04) | (0.31) | (0.06) | ||||||||||||||||||||||
| Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests | 0.35 | 0.39 | 1.04 | 1.13 | ||||||||||||||||||||||
FFO, as defined by NAREIT, of the Operating Partnership per diluted share/unit1, 2 | $ | 0.25 | $ | 0.30 | $ | 0.94 | $ | 0.96 | ||||||||||||||||||
| Add: merger and acquisition costs | 0.10 | — | 0.11 | — | ||||||||||||||||||||||
| Less: 2020 Collection Impact | (0.02) | — | (0.04) | — | ||||||||||||||||||||||
FFO, as adjusted, of the Operating Partnership per diluted share/unit 2 | $ | 0.33 | $ | 0.30 | $ | 1.01 | $ | 0.96 | ||||||||||||||||||
| 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 excludes the gain on the sale of the ground lease portfolio as this sale was part of our capital strategy distinct from our ongoing operating strategy of selling individual land parcels, from time to time. 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.
From time to time, the Company may report or provide guidance with respect to “FFO as adjusted” which starts with FFO, as defined by NAREIT, and then 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, merger and acquisitin costs, the impact on
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earnings from employee severance, the excess of redemption value over carrying value of preferred stock redemption, and the impact of 2020 bad debt or 2020 accounts receivable ("2020 Collection Impact"), which are not otherwise adjusted in the Company’s calculation of FFO.
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Kite Realty Group Trust
Same Property Net Operating Income
For the Three and Nine Months Ended September 30, 2021 and 2020
(Unaudited)
| ($ in thousands) | |||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||||||||||||||||||
Number of properties for the period1 | 83 | 83 | |||||||||||||||||||||||||||||||||
| Leased percentage at period end | 92.8 | % | 93.3 | % | 92.8 | % | 93.3 | % | |||||||||||||||||||||||||||
Economic Occupancy percentage2 | 89.3 | % | 92.0 | % | 89.1 | % | 92.5 | % | |||||||||||||||||||||||||||
| Minimum rent | $ | 50,107 | $ | 50,071 | $ | 149,385 | $ | 150,806 | |||||||||||||||||||||||||||
| Tenant recoveries | 14,927 | 14,899 | 44,791 | 45,600 | |||||||||||||||||||||||||||||||
| Bad debt recovery (provision) | 1,775 | (3,095) | 1,207 | (9,185) | |||||||||||||||||||||||||||||||
| Other income | 320 | 135 | 834 | 457 | |||||||||||||||||||||||||||||||
| 67,129 | 62,010 | 196,217 | 187,678 | ||||||||||||||||||||||||||||||||
| Property operating expenses | (9,129) | (8,695) | (26,540) | (25,537) | |||||||||||||||||||||||||||||||
| Real estate taxes | (8,574) | (8,719) | (26,071) | (26,329) | |||||||||||||||||||||||||||||||
| (17,703) | (17,414) | (52,611) | (51,866) | ||||||||||||||||||||||||||||||||
| Same Property NOI | $ | 49,426 | $ | 44,596 | 10.8% | $ | 143,606 | $ | 135,812 | 5.7% | |||||||||||||||||||||||||
| Reconciliation of Same Property NOI to Most Directly Comparable GAAP Measure: | |||||||||||||||||||||||||||||||||||
| Net operating income - same properties | $ | 49,426 | $ | 44,596 | $ | 143,606 | $ | 135,812 | |||||||||||||||||||||||||||
Net operating income - non-same activity3 | 2,738 | 675 | 8,072 | 5,172 | |||||||||||||||||||||||||||||||
| Other income (expense), net | 258 | (139) | 883 | (227) | |||||||||||||||||||||||||||||||
| General, administrative and other | (8,241) | (6,482) | (23,676) | (19,986) | |||||||||||||||||||||||||||||||
| Merger and acquisition costs | (9,198) | — | (9,958) | — | |||||||||||||||||||||||||||||||
| Depreciation and amortization expense | (30,193) | (33,953) | (90,625) | (96,830) | |||||||||||||||||||||||||||||||
| Interest expense | (12,878) | (12,550) | (37,386) | (38,115) | |||||||||||||||||||||||||||||||
| Gain on sales of properties | 1,260 | 3,226 | 27,517 | 4,893 | |||||||||||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (132) | 40 | (1,058) | (148) | |||||||||||||||||||||||||||||||
| Net (loss) income attributable to common shareholders | $ | (6,960) | $ | (4,587) | $ | 17,375 | $ | (9,429) | |||||||||||||||||||||||||||
| 1 | Same Property NOI excludes (i) The Corner, Glendale Town Center, and Hamilton Crossing redevelopments, (ii) Eddy Street Commons - Phases II and III, and The Landing at Tradition - Phase II developments, (iii) the recently acquired Eastgate Crossing, 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 | 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 income in excess of lost rent, amortization of lease intangibles and significant prior period expense recoveries and adjustments, if any. When the Company receives payments in excess of any accounts receivable for terminating a lease, Same Property NOI will include such excess payments as monthly rent until the earlier of the following: the expiration of 12 months or the start date of a replacement tenant. The Company believes that Same Property NOI is helpful to investors as a measure of our operating performance because it includes only the NOI of properties that have been owned for the full quarters presented. The Company believes such presentation eliminates disparities in net income due to the acquisition or disposition of properties during the particular periods presented and thus provides a more consistent metric for the comparison of our properties. Same Property NOI includes the results of properties that have been owned for the entire current and prior year reporting periods.
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 September 30, 2021, the Company excluded three redevelopment properties 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.
9
Kite Realty Group Trust
Earnings Before Interest, Tax, Depreciation, and Amortization
For the Three Months Ended September 30, 2021
(Unaudited)
| ($ in thousands) | ||||||||
| Three Months Ended September 30, 2021 | ||||||||
| Consolidated net loss | $ | (6,828) | ||||||
| Adjustments to net loss: | ||||||||
| Depreciation and amortization | 30,193 | |||||||
| Interest expense | 12,878 | |||||||
| Income tax benefit of taxable REIT subsidiary | (91) | |||||||
| Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) | 36,152 | |||||||
| Adjustments to EBITDA: | ||||||||
| Unconsolidated EBITDA | 403 | |||||||
| Merger and acquisition costs | 9,198 | |||||||
| Gain on sales of properties | (1,260) | |||||||
| Other income and expense, net | 28 | |||||||
| Noncontrolling interest | (132) | |||||||
| Adjusted EBITDA | 44,389 | |||||||
Annualized Adjusted EBITDA1 | $ | 177,556 | ||||||
| Company Share of Net Debt: | ||||||||
| Mortgage and other indebtedness | $ | 1,288,994 | ||||||
Less: Partner share of consolidated joint venture debt 2 | (584) | |||||||
| Less: Cash, cash equivalents, restricted cash, and short-term deposits | (230,921) | |||||||
| Plus: Company share of unconsolidated joint venture debt | 23,810 | |||||||
| Plus: Debt Premium | 9,986 | |||||||
| Company Share of Net Debt | $ | 1,091,285 | ||||||
| Net Debt to Adjusted EBITDA | 6.1x | |||||||
| 1 | Represents Adjusted EBITDA for the three months ended September 30, 2021 (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. | ||||
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) merger and acquisition costs, (iv) other income and expense, (v) noncontrolling interest EBITDA and (vi) 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.
10
| Exhibit 99.2 | ||||||||
QUARTERLY FINANCIAL SUPPLEMENTAL – SEPTEMBER 30, 2021 |  | |||||||
| PAGE NO. | TABLE OF CONTENTS | |||||||
| 3 | Earnings Press Release | |||||||
| 7 | Corporate Profile | |||||||
| 8 | Contact Information | |||||||
| 9 | Important Notes Including Non-GAAP Disclosures | |||||||
| 12 | Consolidated Balance Sheets | |||||||
| 13 | Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2021 and 2020 | |||||||
| 14 | Same Property Net Operating Income | |||||||
| 15 | Net Operating Income and EBITDA by Quarter | |||||||
| 16 | Funds from Operations for the Three and Nine Months Ended September 30, 2021 and 2020 | |||||||
| 17 | Adjusted Funds From Operations and Other Financial Information for the Three and Nine Months Ended September 30, 2021 and 2020 | |||||||
| 18 | Summary Income Statement | |||||||
| 19 | Accounts Receivable Impact of COVID-19 | |||||||
| 20 | Joint Venture Summary as of September 30, 2021 | |||||||
| 21 | Summary of Outstanding Debt as of September 30, 2021 | |||||||
| 22 | Maturity Schedule of Outstanding Debt as of September 30, 2021 | |||||||
| 23 | Key Debt Metrics | |||||||
| 24 | Top 25 Tenants by Annualized Base Rent | |||||||
| 25 | Retail Leasing Spreads | |||||||
| 26 | Lease Expirations | |||||||
| 27 | Development and Redevelopment Projects | |||||||
| 28 | Geographic Diversification – Annualized Base Rent by Region and State | |||||||
| 29 | Operating Retail Portfolio Summary Report | |||||||
| 33 | Operating Office Properties and Other | |||||||
| 34 | Components of Net Asset Value | |||||||
 | ||
PRESS RELEASE
Contact Information: Kite Realty Group Trust
Jason Colton
SVP, Capital Markets & Investor Relations
317.713.2762
Kite Realty Group Trust Reports Third Quarter 2021 Operating Results
Indianapolis, Indiana, October 28, 2021 - Kite Realty Group Trust (NYSE: KRG), a premier owner and operator of high-quality, open-air grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets, reported today its operating results for the third quarter ended September 30, 2021.
“I could not be more impressed with how the KRG team produced tremendous third quarter results while simultaneously pursuing a transformative merger with RPAI,” said John A. Kite, Chairman and CEO. “Demand for high-quality open-air retail remains robust, and we continue to capitalize on a favorable leasing environment. With the merger complete we expect the momentum to continue. KRG’s open-air portfolio has a productive mix of properties predominantly located in high-growth warmer and cheaper markets, with an increased presence in strategic gateway markets. I am excited to welcome our new colleagues – together we have a stronger team, a best-in-class platform, and a dynamic portfolio. I cannot thank the entire team enough. I know we will all continue our tireless work to drive long-term value to our stakeholders.”
Third Quarter Financial Results
•Realized net loss attributable to common shareholders of $7.0 million, or $0.08 per common share, compared to net loss of $4.6 million, or $0.05 per common share, for the three months ending September 30, 2021 and 2020, respectively.
•Generated NAREIT Funds From Operations of the Operating Partnership (FFO) of $22.3 million, or $0.25 per diluted common share.
•Generated Funds From Operations, as adjusted, of the Operating Partnership (FFO) of $29.5 million, or $0.33 per diluted common share.
◦Excludes a positive impact of $2.1 million of 2020 Collection Impact, which is related to the recovery of 2020 cash and non-cash bad debt and accounts receivable.
◦Excludes the impact of $9.2 million of merger and acquisition costs.
•Same-Property Net Operating Income (NOI) increased by 10.8%.
Third Quarter Portfolio Operations
•Executed 82 new and renewal leases representing over 584,000 square feet.
◦GAAP leasing spreads of 32.5% (20.6% cash basis) on 17 comparable new leases, 16.1% (10.4% cash basis) on 33 comparable renewals, and 20.7% (13.4% cash basis) on a blended basis.
•Signed 7 new anchor leases, including 3 grocery leases.
◦Brings signed Anchor Acceleration leases to 12 since the program’s inception, generating an average 26% cash yield and a 14% comparable cash leasing spread on 8 comparable leases.
p. 3 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
•Annualized base rent (ABR) per square foot for the operating retail portfolio was $18.54, a 3% increase year-over-year.
•Retail leased percentage was 92.8%, a sequential increase of 130 basis points.
◦Portfolio leased-to-occupied spread is 400 basis points, which equates to $14 million of signed-not-open NOI.
Third Quarter Development Activity
•Entered into a joint venture with a local developer for the construction of 285 multi-family units and 24,000 square feet of ground floor retail at The Corner in Carmel, IN. KRG sold the land to the venture and retained a 50% interest in the venture.
•Commenced development activities on a vacant parcel for a new Fresh Market and additional shop space at The Landing at Tradition in Port St. Lucie, FL.
Transaction Activity
•Subsequent to quarter end, KRG sold Westside Market for $24.8 million.
Balance Sheet Overview
•As of September 30, 2021, KRG’s net-debt-to-Adjusted EBITDA was 6.1x.
•Pro forma for $14 million of signed-not-open NOI, net-debt-to-adjusted EBITDA would be 5.7x.
•Subsequent to quarter end, received inaugural credit rating of BBB with a stable outlook from Fitch Ratings.
Merger Completion
•Subsequent to quarter end, on October 22, 2021, KRG completed the transformative merger with RPAI.
•Strategic merits of the transaction can be found in KRG’s third quarter investor update posted on the company website and include, but are not limited to, the following:
◦Immediate accretion to FFO and NAV.
◦Created a top 5 shopping center REIT, which will provide capital market benefits and deepen tenant relationships by offering a broader mix of open-air retail formats.
◦Increased geographic footprint in high-growth warmer and cheaper markets and added a meaningful presence in select strategic gateway markets.
◦Enhanced growth opportunities through several strong active development projects and numerous entitled land sites to be used for additional value creation.
◦Strengthened KRG’s balance sheet, with no material debt maturities until 2023.
•KRG estimates stabilized GAAP synergies of approximately $34 – $36 million, of which $21 million has been realized as of the closing and the balance is anticipated to be realized over the next 12 – 18 months.
2021 Earnings Guidance
•Due to the timing of the merger, which closed in the fourth quarter, KRG is withdrawing 2021 guidance. The Company will issue 2022 earnings guidance, as a combined company, in conjunction with KRG’s fourth quarter earnings release.
Earnings Conference Call
Kite Realty Group Trust will conduct a conference call to discuss its financial results on Friday, October 29, 2021, at 11:00 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 (Conference ID: 4559979). In addition, a webcast replay link will be available on the corporate website.
p. 4 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
About Kite Realty Group Trust
Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The company’s primarily grocery-anchored portfolio is located in high-growth warmer and cheaper markets and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of September 30, 2021, proforma for the merger, the company owned interests in 185 U.S. open-air shopping centers and mixed-use assets, comprising over 30 million square feet of gross leasable space. For more information, please visit kiterealty.com.
Connect with KRG: LinkedIn | Twitter | Instagram | Facebook
Safe Harbor
This release, 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 (the “Securities Act”) 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.
Currently, one of the most significant factors that could cause actual outcomes to differ significantly from our forward-looking statements is the potential adverse effect of the current pandemic of the novel coronavirus, or COVID-19, including possible resurgences and mutations, on the financial condition, results of operations, cash flows and performance of the Company and its tenants, the real estate market and the global economy and financial markets. The effects of COVID-19 have caused and may continue to cause many of our tenants to close stores, reduce hours or significantly limit service, making it difficult for them to meet their rent obligations, and therefore has and will continue to impact us significantly for the foreseeable future. COVID-19 has impacted us significantly, and the extent to which it will continue to impact us and our tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the continued speed of the vaccine distribution, the efficacy of vaccines, including against variants of COVID-19, acceptance and availability of vaccines, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic.
Additional risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to: the risks associated with the merger with RPAI, including the integration of the businesses of the combined company, the ability to achieve expected synergies or costs savings and potential disruptions to the Company’s plans and operations; 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; the Company’s ability to refinance, or extend the maturity dates of, the Company’s indebtedness; the level and volatility of interest rates; the financial stability of tenants, including their ability to pay rent or request rent concessions, and the risk of tenant insolvency and bankruptcy; the competitive environment in which the Company operates, including potential oversupplies of and reduction in demand for rental space; acquisition, disposition, development and joint venture risks; property ownership and management risks, including the relative illiquidity of real estate investments, periodic costs to repair, renovate and re-lease spaces, operating costs and expenses, vacancies or the inability to rent space on favorable terms or at all; the Company’s ability to maintain the Company’s status as a real
p. 5 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
estate investment trust for U.S. federal income tax purposes; potential environmental and other liabilities; impairment in the value of real estate property the Company owns; the attractiveness of our properties to tenants, the actual and perceived impact of e-commerce on the value of shopping center assets and changing demographics and customer traffic patterns; risks related to our current geographical concentration of the Company’s properties in Texas, Florida, New York, Maryland, Virginia and North Carolina; civil unrest, acts of terrorism or war, acts of God, climate change, epidemics, pandemics (including COVID-19), natural disasters and severe weather conditions such as hurricanes, tropical storms, tornadoes, earthquakes, droughts, floods and fires, including such events or conditions that may result in underinsured or uninsured losses or other increased costs and expenses; changes in laws and government regulations including governmental orders affecting the use of the Company’s properties or the ability of its tenants to operate, and the costs of complying with such changed laws and government regulations; possible short-term or long-term changes in consumer behavior due to COVID-19 and the fear of future pandemics; 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 the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, and in the Company’s 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.
This Earnings Release also includes certain forward-looking non-GAAP information. Due to high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these estimates, together with some of the excluded information not being ascertainable or accessible, the Company is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable efforts
p. 6 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
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 September 30, 2021, we owned interests in 87 operating properties totaling approximately 16.8 million square feet and five development and redevelopment projects.
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 patterns 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, strengthen the Company’s balance sheet, or otherwise allocated so as to generate attractive risk-adjusted returns.
Company Highlights as of September 30, 2021
| # of Properties | Total GLA /NRA | Owned GLA /NRA1 | ||||||||||||
| Operating Retail Properties | 83 | 16,261,307 | 11,657,803 | |||||||||||
| Operating Office Properties and Other | 4 | 497,576 | 497,576 | |||||||||||
| Total Operating Properties | 87 | 16,758,883 | 12,155,379 | |||||||||||
Development and Redevelopment Projects2 | 6 | 905,893 | 408,290 | |||||||||||
| Total All Properties | 93 | 17,664,776 | 12,563,669 | |||||||||||
| Retail | Non-Retail | Total | ||||||||||||
| Operating Properties – Leased Percentage | 92.8% | 97.6% | 93.0% | |||||||||||
| 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. | ||||
| 2 | Includes square footage of planned space upon completion. | ||||
p. 7 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
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. | Green Street Advisors, Inc. | ||||||||||||
| Senior Vice President, Capital Markets and IR | Mr. Wes Golladay | Mr. Vince Tibone | ||||||||||||
| Kite Realty Group Trust | (216) 737-7510 | (949) 640-8780 | ||||||||||||
| 30 South Meridian Street, Suite 1100 | [email protected] | [email protected] | ||||||||||||
| Indianapolis, IN 46204 | ||||||||||||||
| (317) 713-2762 | Bank of America/Merrill Lynch | Jefferies LLC | ||||||||||||
| [email protected] | Mr. Jeffrey Spector/Mr. Craig Schmidt | Ms. Linda Tsai | ||||||||||||
| (646) 855-1363/(646) 855-3640 | (212) 778-8011 | |||||||||||||
| Transfer Agent: | [email protected] | [email protected] | ||||||||||||
| [email protected] | ||||||||||||||
| Broadridge Financial Solutions | KeyBanc Capital Markets | |||||||||||||
| Ms. Kristen Tartaglione | Barclays | Mr. Jordan Sadler/Mr. Todd Thomas | ||||||||||||
2 Journal Square, 7th Floor | Mr. Anthony F. Powell | (917) 368-2280/(917) 368-2286 | ||||||||||||
| Jersey City, NJ 07306 | (212) 526-8768 | [email protected] | ||||||||||||
| (201) 714-8094 | [email protected] | [email protected] | ||||||||||||
| Stock Specialist: | BTIG | Raymond James | ||||||||||||
| Mr. Michael Gorman | Mr. RJ Milligan | |||||||||||||
| GTS | (212) 738-6138 | (727) 567-2585 | ||||||||||||
| 545 Madison Avenue | [email protected] | [email protected] | ||||||||||||
| 15th Floor | ||||||||||||||
| New York, NY 10022 | Capital One Securities, Inc. | Piper Sandler | ||||||||||||
| (212) 715-2830 | Mr. Christopher Lucas | Mr. Alexander Goldfarb | ||||||||||||
| (571) 633-8151 | (212) 466-7937 | |||||||||||||
| [email protected] | [email protected] | |||||||||||||
| Citigroup Global Markets | Wells Fargo Securities, LLC | |||||||||||||
| Mr. Michael Bilerman/Ms. Katy McConnell | Ms. Tamara Fique | |||||||||||||
| (212) 816-1383/(212) 816-6981 | (617) 603-4262/(443) 263-6568 | |||||||||||||
| [email protected] | [email protected] | |||||||||||||
| [email protected] | ||||||||||||||
| Compass Point Research & Trading, LLC | ||||||||||||||
| Mr. Floris van Dijkum | ||||||||||||||
| (646) 757-2621 | ||||||||||||||
| [email protected] | ||||||||||||||
p. 8 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
IMPORTANT NOTES INCLUDING NON-GAAP DISCLOSURES | | |||||||
Interim Information
This Quarterly Financial Supplemental contains historical information of Kite Realty Group Trust (“the Company” or “KRG”) and is intended to supplement the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, to be filed on or about November 5, 2021, 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.
Currently, one of the most significant factors that could cause actual outcomes to differ materially from the forward-looking statements is the potential adverse effect of the current pandemic of the novel coronavirus ("COVID-19"), including possible resurgences and mutations, on the financial condition, results of operations, cash flows and performance of the Company and its tenants, the real estate market and the global economy and financial markets. The effects of COVID-19 have caused and may continue to cause many of the Company’s tenants to close stores, reduce hours or significantly limit service, making it difficult for them to meet their rental obligations, and therefore has and will continue to impact us significantly for the foreseeable future. COVID-19 has impacted the Company significantly, and the extent to which it will continue to impact the Company and its tenants will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the continued speed of the vaccine distribution, the efficacy of vaccines, including against variants of COVID-19, acceptance and availability of vaccines, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, and possible short-term and long-term effects of the pandemic on consumer behavior, among others.
In addition, risks, uncertainties and factors that might cause such differences from the results, performance, transactions or achievements, financial or otherwise, expressed or implied by the forward-looking statements, some of which could be material, include but are not limited to:
•The risk associated with the Merger with RPAI, including the integration of the businesses of the combined company, the ability to achieve expected synergies or cost savings, and potential disruptions to the Company’s plans and operations;
•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 or request rent concessions, and the risk of tenant insolvency and bankruptcy;
•the competitive environment in which the Company operates, including potential oversupplies of and reduction in demand for rental space;
•acquisition, disposition, development and joint venture risks;
•property ownership and management risks, including the relative illiquidity of real estate investments, period costs to repair, renovate and re-lease spaces, oeprating costs and expense, vacancies or the inability to rent space on favorable terms or at all;
•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 attractiveness of our properties to tenants, the actual and perceived impact of e-commerce on the value of shopping center assets and changing demographics and customer traffic patterns;
•risks related to our current geographical concentration of our properties in Texas, Florida, New York, Maryland, Virginia and North Carolina;
•civil unrest, acts of terrorism or water, acts of God, climate change, epidemics, pandemics (including COVID-19), natural disasters and severe weather conditions such as hurricanes, tropical storms, tornadoes, earthquakes, droughts, floods and fires, including such events or conditions that may result in underinsured or uninsured losses, or other increased costs and expenses;
•changes in laws and government regulations including governmental orders affecting the use of our properties or the ability of our tenants to operate, and the costs of complying with such changed laws and government regulations;
•possible short-term or long-term changes in consumer behavior due to COVID-19 and the fear of future pandemics;
•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, 2020, and in our quarterly reports on Form 10-Q.
p. 9 | Kite Realty Group Trust Supplemental Financial and Operating Statistics 9/30/2021 | ||||
IMPORTANT NOTES INCLUDING NON-GAAP DISCLOSURES (CONTINUED) | | |||||||
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 excludes the gain on the sale of the ground lease portfolios as these sales were part of our capital strategy distinct from our ongoing operating strategy of selling individual land parcels, from time to time. 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. 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 “FFO as adjusted” which starts with FFO, as defined by NAREIT, and then 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, merger and acquisition costs, the impact on earnings from employee severance, the excess of redemption value over carrying value of preferred stock redemption, and the impact of 2020 bad debt or 2020 accounts receivable ("2020 Collection Impact"), which are not otherwise adjusted in the Company’s calculation of FFO.
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, including merger and acquisition costs. 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 income in excess of lost rent, amortization of lease intangibles and significant prior period expense recoveries and adjustments, if any. When the Company receives payments in excess of any accounts receivable for terminating a lease, Same Property NOI will include such excess payments as monthly rent until the earlier of the following: the expiration of 12 months or the start date of a replacement tenant. The Company believes that Same Property NOI is helpful to investors as a measure of our operating performance because it includes only the NOI of properties that have been owned for the full quarters presented. The Company believes such presentation eliminates disparities in net income due to the acquisition or disposition of properties during the particular periods presented and thus provides a more consistent metric for the comparison of our properties. Same Property NOI includes the results of properties that have been owned for the entire current and prior year reporting periods.
p. 10 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
IMPORTANT NOTES INCLUDING NON-GAAP DISCLOSURES (CONTINUED) | | |||||||
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 September 30, 2021, the Company excluded three redevelopment properties 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) and Net Debt to 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 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. 11 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) | | |||||||
| ($ in thousands) | ||||||||||||||
| September 30, 2021 | December 31, 2020 | |||||||||||||
| Assets: | ||||||||||||||
| Investment properties, at cost | $ | 3,124,987 | $ | 3,143,961 | ||||||||||
| Less: accumulated depreciation | (816,993) | (755,100) | ||||||||||||
| 2,307,994 | 2,388,861 | |||||||||||||
| Cash and cash equivalents | 99,514 | 43,648 | ||||||||||||
| Tenant and other receivables, including accrued straight-line rent of $25,143 and $24,783, respectively | 45,873 | 57,154 | ||||||||||||
| Restricted cash and escrow deposits | 4,285 | 2,938 | ||||||||||||
| Deferred costs and intangibles, net | 54,231 | 63,171 | ||||||||||||
| Short-term deposits | 125,000 | — | ||||||||||||
| Prepaid and other assets | 39,165 | 39,975 | ||||||||||||
| Investments in unconsolidated subsidiaries | 12,956 | 12,792 | ||||||||||||
| Assets held for sale | 19,866 | — | ||||||||||||
| Total Assets | $ | 2,708,884 | $ | 2,608,539 | ||||||||||
| Liabilities and Shareholders’ Equity: | ||||||||||||||
| Mortgage and other indebtedness, net | $ | 1,288,994 | $ | 1,170,794 | ||||||||||
| Accounts payable and accrued expenses | 85,721 | 77,469 | ||||||||||||
| Deferred revenue and other liabilities | 81,344 | 85,649 | ||||||||||||
| Total Liabilities | 1,456,059 | 1,333,912 | ||||||||||||
| Commitments and contingencies | ||||||||||||||
| Limited Partners’ interests in the Operating Partnership and other redeemable noncontrolling interests | 53,281 | 43,275 | ||||||||||||
| Shareholders’ Equity: | ||||||||||||||
| Kite Realty Group Trust Shareholders’ Equity: | ||||||||||||||
| Common Shares, $.01 par value, 225,000,000 shares authorized, 84,575,441 and 84,187,999 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 846 | 842 | ||||||||||||
| Additional paid in capital | 2,069,983 | 2,085,003 | ||||||||||||
| Accumulated other comprehensive loss | (22,476) | (30,885) | ||||||||||||
| Accumulated deficit | (849,507) | (824,306) | ||||||||||||
| Total Kite Realty Group Trust Shareholders’ Equity | 1,198,846 | 1,230,654 | ||||||||||||
| Noncontrolling Interests | 698 | 698 | ||||||||||||
| Total Equity | 1,199,544 | 1,231,352 | ||||||||||||
| Total Liabilities and Equity | $ | 2,708,884 | $ | 2,608,539 | ||||||||||
p. 12 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | | |||||||
| ($ in thousands, except per share data) | ||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||
| Rental income | $ | 70,216 | $ | 64,293 | $ | 206,097 | $ | 191,359 | ||||||||||||||||||
| Other property related revenue | 1,054 | 670 | 3,133 | 6,626 | ||||||||||||||||||||||
| Fee income | 195 | 104 | 1,144 | 299 | ||||||||||||||||||||||
| Total revenue | 71,465 | 65,067 | 210,374 | 198,284 | ||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||
| Property operating | 10,482 | 10,330 | 30,978 | 30,450 | ||||||||||||||||||||||
| Real estate taxes | 8,624 | 9,362 | 26,574 | 26,551 | ||||||||||||||||||||||
| General, administrative, and other | 8,241 | 6,482 | 23,676 | 19,986 | ||||||||||||||||||||||
| Merger and acquisition costs | 9,198 | — | 9,958 | — | ||||||||||||||||||||||
| Depreciation and amortization | 30,193 | 33,953 | 90,625 | 96,830 | ||||||||||||||||||||||
| Total expenses | 66,738 | 60,127 | 181,811 | 173,817 | ||||||||||||||||||||||
| Gain on sale of properties, net | 1,260 | 3,226 | 27,517 | 4,893 | ||||||||||||||||||||||
| Operating income | 5,987 | 8,166 | 56,080 | 29,360 | ||||||||||||||||||||||
| Interest expense | (12,878) | (12,550) | (37,386) | (38,115) | ||||||||||||||||||||||
| Income tax benefit of taxable REIT subsidiary | 91 | 190 | 308 | 496 | ||||||||||||||||||||||
| Equity in loss of unconsolidated subsidiaries | (196) | (417) | (758) | (1,256) | ||||||||||||||||||||||
| Other income, net | 168 | (16) | 189 | 234 | ||||||||||||||||||||||
| Net (loss) income | (6,828) | (4,627) | 18,433 | (9,281) | ||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (132) | 40 | (1,058) | (148) | ||||||||||||||||||||||
| Net (loss) income attributable to Kite Realty Group Trust common shareholders | $ | (6,960) | $ | (4,587) | $ | 17,375 | $ | (9,429) | ||||||||||||||||||
| Net (loss) income per common share - basic | $ | (0.08) | $ | (0.05) | $ | 0.21 | $ | (0.11) | ||||||||||||||||||
| Net (loss) income per common share - diluted | $ | (0.08) | $ | (0.05) | $ | 0.20 | $ | (0.11) | ||||||||||||||||||
| Weighted average common shares outstanding - basic | 84,556,689 | 84,194,821 | 84,468,519 | 84,125,405 | ||||||||||||||||||||||
| Weighted average common shares outstanding - diluted | 84,556,689 | 84,194,821 | 85,383,849 | 84,125,405 | ||||||||||||||||||||||
| Dividends per common share | $ | 0.1800 | $ | 0.0520 | $ | 0.5000 | $ | 0.3695 | ||||||||||||||||||
p. 13 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
SAME PROPERTY NET OPERATING INCOME (NOI) | | |||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||||||||||||||||||
Number of properties for the period1 | 83 | 83 | |||||||||||||||||||||||||||||||||
| Leased percentage at period end | 92.8 | % | 93.3 | % | 92.8 | % | 93.3 | % | |||||||||||||||||||||||||||
Economic Occupancy percentage2 | 89.3 | % | 92.0 | % | 89.1 | % | 92.5 | % | |||||||||||||||||||||||||||
| Minimum rent | $ | 50,107 | $ | 50,071 | $ | 149,385 | $ | 150,806 | |||||||||||||||||||||||||||
| Tenant recoveries | 14,927 | 14,899 | 44,791 | 45,600 | |||||||||||||||||||||||||||||||
| Bad debt recovery (provision) | 1,775 | (3,095) | 1,207 | (9,185) | |||||||||||||||||||||||||||||||
| Other income | 320 | 135 | 834 | 457 | |||||||||||||||||||||||||||||||
| 67,129 | 62,010 | 196,217 | 187,678 | ||||||||||||||||||||||||||||||||
| Property operating expenses | (9,129) | (8,695) | (26,540) | (25,537) | |||||||||||||||||||||||||||||||
| Real estate taxes | (8,574) | (8,719) | (26,071) | (26,329) | |||||||||||||||||||||||||||||||
| (17,703) | (17,414) | (52,611) | (51,866) | ||||||||||||||||||||||||||||||||
| Same Property NOI | $ | 49,426 | $ | 44,596 | 10.8% | $ | 143,606 | $ | 135,812 | 5.7% | |||||||||||||||||||||||||
| Reconciliation of Same Property NOI to Most Directly Comparable GAAP Measure: | |||||||||||||||||||||||||||||||||||
| Net operating income - same properties | $ | 49,426 | $ | 44,596 | $ | 143,606 | $ | 135,812 | |||||||||||||||||||||||||||
Net operating income - non-same activity3 | 2,738 | 675 | 8,072 | 5,172 | |||||||||||||||||||||||||||||||
| Other income (expense), net | 258 | (139) | 883 | (227) | |||||||||||||||||||||||||||||||
| General, administrative and other | (8,241) | (6,482) | (23,676) | (19,986) | |||||||||||||||||||||||||||||||
| Merger and acquisition costs | (9,198) | — | (9,958) | — | |||||||||||||||||||||||||||||||
| Depreciation and amortization expense | (30,193) | (33,953) | (90,625) | (96,830) | |||||||||||||||||||||||||||||||
| Interest expense | (12,878) | (12,550) | (37,386) | (38,115) | |||||||||||||||||||||||||||||||
| Gain on sales of properties | 1,260 | 3,226 | 27,517 | 4,893 | |||||||||||||||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (132) | 40 | (1,058) | (148) | |||||||||||||||||||||||||||||||
| Net (loss) income attributable to common shareholders | $ | (6,960) | $ | (4,587) | $ | 17,375 | $ | (9,429) | |||||||||||||||||||||||||||
| ____________________ | |||||
| 1 | Same Property NOI excludes (i) The Corner, Glendale Town Center, and Hamilton Crossing redevelopments, (ii) Eddy Street Commons - Phases II and III, and The Landing at Tradition - Phase II developments, (iii) the recently acquired Eastgate Crossing, 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 | 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. 14 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
NET OPERATING INCOME AND EBITDA BY QUARTER | | |||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | ||||||||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||||||||||
Minimum rent1 | $ | 49,497 | $ | 49,097 | $ | 49,801 | $ | 49,506 | $ | 48,669 | ||||||||||||||||||||||
| Minimum rent - ground leases | 3,663 | 3,656 | 4,038 | 4,190 | 4,152 | |||||||||||||||||||||||||||
| Tenant reimbursements | 15,186 | 14,308 | 15,389 | 15,863 | 15,134 | |||||||||||||||||||||||||||
| Bad debt recovery (expense) | 1,709 | 597 | (1,420) | (3,412) | (3,643) | |||||||||||||||||||||||||||
| Other property related revenue | 258 | 336 | 549 | 1,675 | 201 | |||||||||||||||||||||||||||
| Overage rent | 161 | 332 | 82 | 164 | — | |||||||||||||||||||||||||||
Parking revenue, net2 | 320 | 152 | (1) | (257) | (32) | |||||||||||||||||||||||||||
| 70,794 | 68,478 | 68,438 | 67,729 | 64,481 | ||||||||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||||||||
Property operating - Recoverable3 | 9,185 | 8,666 | 8,407 | 8,688 | 8,700 | |||||||||||||||||||||||||||
Property operating - Non-Recoverable3 | 1,001 | 1,229 | 1,547 | 1,516 | 1,342 | |||||||||||||||||||||||||||
| Real estate taxes | 8,444 | 8,343 | 9,212 | 9,122 | 9,168 | |||||||||||||||||||||||||||
| 18,630 | 18,238 | 19,166 | 19,326 | 19,210 | ||||||||||||||||||||||||||||
| Net Operating Income - Properties | 52,164 | 50,240 | 49,272 | 48,403 | 45,271 | |||||||||||||||||||||||||||
| Other (Expenses) Income: | ||||||||||||||||||||||||||||||||
| General, administrative, and other | (8,241) | (8,159) | (7,276) | (7,602) | (6,482) | |||||||||||||||||||||||||||
| Severance charges | — | — | — | (3,253) | — | |||||||||||||||||||||||||||
| Fee income | 195 | 515 | 434 | 79 | 104 | |||||||||||||||||||||||||||
| (8,046) | (7,644) | (6,842) | (10,776) | (6,378) | ||||||||||||||||||||||||||||
| Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization | 44,118 | 42,596 | 42,430 | 37,627 | 38,893 | |||||||||||||||||||||||||||
| Depreciation and amortization | (30,193) | (29,798) | (30,634) | (31,818) | (33,953) | |||||||||||||||||||||||||||
| Merger and acquisition costs | (9,198) | (760) | — | — | — | |||||||||||||||||||||||||||
| Interest expense | (12,878) | (12,266) | (12,242) | (12,284) | (12,550) | |||||||||||||||||||||||||||
| Equity in loss of unconsolidated subsidiaries | (196) | (244) | (318) | (429) | (417) | |||||||||||||||||||||||||||
| Income tax benefit of taxable REIT subsidiary | 91 | 100 | 118 | 200 | 190 | |||||||||||||||||||||||||||
| Other income (expense), net | 168 | 227 | (206) | 21 | (16) | |||||||||||||||||||||||||||
| Gain (loss) on sales of properties | 1,260 | 50 | 26,207 | (159) | 3,226 | |||||||||||||||||||||||||||
| Net income (loss) | (6,828) | (95) | 25,355 | (6,842) | (4,627) | |||||||||||||||||||||||||||
| Less: Net (income) loss attributable to noncontrolling interests | (132) | (147) | (778) | 48 | 40 | |||||||||||||||||||||||||||
| Net (loss) income attributable to Kite Realty Group Trust | $ | (6,960) | $ | (242) | $ | 24,577 | $ | (6,794) | $ | (4,587) | ||||||||||||||||||||||
| NOI/Revenue | 73.7 | % | 73.4 | % | 72.0 | % | 71.5 | % | 70.2 | % | ||||||||||||||||||||||
Recovery Ratios4 | ||||||||||||||||||||||||||||||||
| - Retail Properties | 89.4 | % | 88.1 | % | 90.6 | % | 92.8 | % | 87.8 | % | ||||||||||||||||||||||
| - Consolidated | 86.1 | % | 84.1 | % | 87.3 | % | 89.1 | % | 84.7 | % | ||||||||||||||||||||||
| ____________________ | |||||
| 1 | Minimum rent includes $33,000, $0.3 million, $1.2 million, $0.6 million, and $0.3 million of lease termination income for the three months ended September 30, 2021, June 30, 2021, March 31, 2021, December, 31, 2020, and September 30, 2020, 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 recurring G&A expense of $1.4 million allocable to the property operations in the three months ended September 30, 2021, a portion of which is recoverable. Non-recoverable expenses primarily include ground rent, professional fees, and marketing costs. | ||||
| 4 | “Recovery Ratio” is computed by dividing tenant reimbursements by the sum of recoverable property operating expense and real estate tax expense. | ||||
p. 15 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
FUNDS FROM OPERATIONS1, 2 | | |||||||
| ($ in thousands, except per share data) | ||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| Funds From Operations ("FFO") | ||||||||||||||||||||||||||
| Consolidated net (loss) income | $ | (6,828) | $ | (4,627) | $ | 18,433 | $ | (9,281) | ||||||||||||||||||
| Less: net income attributable to noncontrolling interests in properties | (132) | (132) | (396) | (396) | ||||||||||||||||||||||
| Less: Gain on sales of properties | (1,260) | (3,226) | (27,517) | (4,893) | ||||||||||||||||||||||
| Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests | 30,537 | 34,295 | 91,650 | 97,827 | ||||||||||||||||||||||
FFO of the Operating Partnership1 | 22,317 | 26,310 | 82,170 | 83,257 | ||||||||||||||||||||||
| Less: Limited Partners' interests in FFO | (543) | (657) | (2,301) | (2,165) | ||||||||||||||||||||||
FFO attributable to Kite Realty Group Trust common shareholders1 | $ | 21,774 | $ | 25,653 | $ | 79,869 | $ | 81,092 | ||||||||||||||||||
| FFO, as defined by NAREIT, per share of the Operating Partnership - basic | $ | 0.26 | $ | 0.30 | $ | 0.95 | $ | 0.96 | ||||||||||||||||||
| FFO, as defined by NAREIT, per share of the Operating Partnership - diluted | $ | 0.25 | $ | 0.30 | $ | 0.94 | $ | 0.96 | ||||||||||||||||||
| Add: merger and acquisition costs | 9,198 | — | 9,958 | — | ||||||||||||||||||||||
| Less: 2020 Collection Impact | (2,063) | — | (3,329) | — | ||||||||||||||||||||||
| FFO, as adjusted, of the Operating Partnership | $ | 29,452 | $ | 26,310 | $ | 88,799 | $ | 83,257 | ||||||||||||||||||
| FFO, as adjusted, per share of the Operating Partnership - basic | $ | 0.34 | $ | 0.30 | $ | 1.02 | $ | 0.96 | ||||||||||||||||||
| FFO, as adjusted, per share of the Operating Partnership - diluted | $ | 0.33 | $ | 0.30 | $ | 1.01 | $ | 0.96 | ||||||||||||||||||
| Weighted average common shares outstanding - basic | 84,556,689 | 84,194,821 | 84,468,519 | 84,125,405 | ||||||||||||||||||||||
| Weighted average common shares outstanding - diluted | 85,582,358 | 84,384,457 | 85,383,849 | 84,300,979 | ||||||||||||||||||||||
| Weighted average common shares and units outstanding - basic | 87,003,748 | 86,429,812 | 86,951,170 | 86,341,243 | ||||||||||||||||||||||
| Weighted average common shares and units outstanding - diluted | 88,029,417 | 86,619,448 | 87,866,501 | 86,516,817 | ||||||||||||||||||||||
| FFO, as defined by NAREIT, per diluted share/unit | ||||||||||||||||||||||||||
| Consolidated net income (loss) | $ | (0.08) | $ | (0.05) | $ | 0.21 | $ | (0.11) | ||||||||||||||||||
| Less: net income attributable to noncontrolling interests in properties | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||||||||||||
| Less: Gain on sales of properties | (0.01) | (0.04) | (0.31) | (0.06) | ||||||||||||||||||||||
| Add: depreciation and amortization of consolidated and unconsolidated entities, net of noncontrolling interests | 0.35 | 0.39 | 1.04 | 1.13 | ||||||||||||||||||||||
FFO, as defined by NAREIT, of the Operating Partnership per diluted share/unit1, 2 | $ | 0.25 | $ | 0.30 | $ | 0.94 | $ | 0.96 | ||||||||||||||||||
| Add: merger and acquisition costs | 0.10 | — | 0.11 | — | ||||||||||||||||||||||
| Less: 2020 Collection Impact | (0.02) | — | (0.04) | — | ||||||||||||||||||||||
FFO, as adjusted, of the Operating Partnership per diluted share/unit 2 | $ | 0.33 | $ | 0.30 | $ | 1.01 | $ | 0.96 | ||||||||||||||||||
| ____________________ | |||||
| 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. 16 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
ADJUSTED FUNDS FROM OPERATIONS AND OTHER FINANCIAL INFORMATION | | |||||||
| ($ in thousands) | ||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| Reconciliation of FFO, as adjusted, to Adjusted Funds from Operations (AFFO) | ||||||||||||||||||||||||||
| FFO, as adjusted, of the Operating Partnership | $ | 29,452 | $ | 26,310 | $ | 88,799 | $ | 83,257 | ||||||||||||||||||
| Add: | ||||||||||||||||||||||||||
| Depreciation of non-real estate assets | 100 | 114 | 302 | 365 | ||||||||||||||||||||||
| Amortization of deferred financing costs | 683 | 467 | 1,963 | 1,640 | ||||||||||||||||||||||
| Non-cash compensation expense | 1,821 | 1,460 | 5,329 | 3,873 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Straight-line rent - minimum rent | 461 | 118 | 780 | 489 | ||||||||||||||||||||||
| Straight-line rent - common area maintenance | 163 | 146 | 480 | 504 | ||||||||||||||||||||||
| Straight-line rent - reserve for uncollectability | — | (507) | (110) | (4,264) | ||||||||||||||||||||||
| Market rent amortization income | 530 | 555 | 1,432 | 1,922 | ||||||||||||||||||||||
| Amortization of debt premium | 111 | 111 | 333 | 333 | ||||||||||||||||||||||
Capital expenditures1: | ||||||||||||||||||||||||||
| Maintenance capital expenditures | 446 | 304 | 807 | 1,285 | ||||||||||||||||||||||
| Revenue enhancing tenant improvements | 1,949 | 3,490 | 4,306 | 6,938 | ||||||||||||||||||||||
| External lease commissions | 400 | 187 | 1,018 | 551 | ||||||||||||||||||||||
| Total Recurring AFFO of the Operating Partnership | 27,996 | $ | 23,947 | $ | 87,347 | $ | 81,377 | |||||||||||||||||||
| Other Financial Information: | ||||||||||||||||||||||||||
| Scheduled debt principal payments | $ | 578 | $ | 559 | $ | 1,720 | $ | 1,662 | ||||||||||||||||||
| ____________________ | |||||
| 1 | Excludes landlord work, tenant improvements and leasing commissions relating to development, redevelopment, and Anchor Acceleration projects. | ||||
p. 17 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
SUMMARY INCOME STATEMENT | | |||||||
| ($ in thousands) | |||||||||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||||||||
| 2021 | 2020 | % Change | |||||||||||||||||||||
| Same Property Revenue | $ | 67,129 | $ | 62,010 | 8.3 | % | |||||||||||||||||
| Same Property Expenses | (17,703) | (17,414) | (1.7) | % | |||||||||||||||||||
Same Property Net Operating Income | 49,426 | 44,596 | 10.8 | % | |||||||||||||||||||
| Sold Assets Net Operating Income | — | 573 | |||||||||||||||||||||
| Non-Same Property Net Operating Income | 2,738 | 102 | |||||||||||||||||||||
Net Operating Income | 52,164 | 45,271 | 15.2 | % | |||||||||||||||||||
| General and Administrative Expense | (8,241) | (6,482) | (27.1) | % | |||||||||||||||||||
| Fee income | 195 | 104 | 87.5 | % | |||||||||||||||||||
| EBITDA | 44,118 | 38,893 | 13.4 | % | |||||||||||||||||||
| Merger and acquisition costs | (9,198) | — | (100.0) | % | |||||||||||||||||||
| Interest Expense | (12,878) | (12,550) | (2.6) | % | |||||||||||||||||||
| Other income (expense), net | 275 | (33) | 933.3 | % | |||||||||||||||||||
| Funds From Operations | 22,317 | 26,310 | (15.2) | % | |||||||||||||||||||
| 2020 Collection Impact | (2,063) | — | 100.0 | % | |||||||||||||||||||
| Merger and Acquisition Costs | 9,198 | — | 100.0 | % | |||||||||||||||||||
| Funds From Operations, as adjusted | 29,452 | 26,310 | 11.9 | % | |||||||||||||||||||
| Non-Cash Items | 1,339 | 1,618 | 17.2 | % | |||||||||||||||||||
| Capital Expenditures | (2,795) | (3,981) | 29.8 | % | |||||||||||||||||||
| Recurring Adjusted Funds From Operations | 27,996 | 23,947 | 16.9 | % | |||||||||||||||||||
| FFO per share of the Operating Partnership, as adjusted - diluted | $ | 0.33 | $ | 0.30 | 10.1 | % | |||||||||||||||||
p. 18 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
IMPACT OF COVID-19 | | |||||||
| ($ in thousands) | ||||||||
| Bad Debt Breakout | ||||||||
| Amount | Supplemental Page No.: | |||||||
| Bad Debt Type | ||||||||
| 3rd Quarter Billed Rent Deemed Uncollectible - Operating Tenants | $ | 566 | ||||||
| 3rd Quarter Cash Impact | 566 | |||||||
| Recovery of Bad Debt Incurred in 1st and 2nd Quarters of 2021 | (159) | |||||||
| Straight-Line Rent Recovery from 1st and 2nd Quarters of 2021 | (53) | |||||||
| 2021 Impact | 354 | |||||||
| Previous Accounts Receivable Balance Accrued in 2020 Now Deemed Uncollectible | 270 | |||||||
| Recovery of Bad Debt Incurred in 2020 | (2,413) | |||||||
| Straight-Line Rent Expense from 2020 | 80 | |||||||
| Total 3rd Quarter Bad Debt Expense (Recovery) | $ | (1,709) | 15 | |||||
| Accounts Receivable Impact | ||||||||
| Amount | Supplemental Page No.: | |||||||
| Balance as of June 30, 2021 | $ | 46,678 | ||||||
| Small Business Loans | (170) | |||||||
| Other Activity | 5 | |||||||
| 3rd Quarter Billed Rent Outstanding | 1,592 | |||||||
| 3rd Quarter Billed Rent Deemed Uncollectible | (566) | |||||||
| Accounts Receivable Balances Prior to 1st Quarter Deemed Uncollectible | (270) | |||||||
| Amounts Collected Outstanding as of December 31 | (1,396) | |||||||
| Balance as of September 30, 2021 | $ | 45,873 | 12 | |||||
| Revenue Breakdown | ||||||||
| Amount | Supplemental Page No.: | |||||||
| 3rd Quarter Billed Rent | $ | 65,057 | ||||||
| 3rd Quarter Billed Rent Deemed Uncollectible | (566) | |||||||
| Previous Billed Rent Deemed Uncollectible | (270) | |||||||
| Reserved in Previous Quarter, Paid in 3rd Quarter | 2,413 | |||||||
| Other Revenues | 4,160 | |||||||
| 3rd Quarter Total Revenues | $ | 70,794 | 15 | |||||
| 3rd Quarter Total Revenues | 70,794 | |||||||
| Previous Accounts Receivable Balance Now Deemed Uncollectible | 270 | |||||||
| Recovery of Previous Bad Debt | (2,413) | |||||||
| Other Revenues | (4,160) | |||||||
| 3rd Quarter Net Recurring Revenue | $ | 64,491 | ||||||
| Comparison to Q1 2020 | ||||||||
| 1st Quarter 2020 Billed Rent | $ | 67,400 | ||||||
| Difference from 1st Quarter 2020 to 3rd Quarter 2021 in Billed Rent | (3.5) | % | ||||||
| 1st Quarter 2020 Net Recurring Revenues | $ | 68,020 | ||||||
| Difference from 1st Quarter 2020 to 3rd Quarter 2021 in Net Recurring Revenues | (5.2) | % | ||||||
p. 19 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
JOINT VENTURE SUMMARY - SEPTEMBER 30, 2021 | | |||||||
($ 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 | 466,907 | $ | 139,774 | $ | 29,193 | 2% - 15% | $ | 584 | $ | 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 | $ | 100,688 | $ | 51,890 | 20% | $ | 10,378 | $ | 9,010 | $ | 298 | $ | 1,193 | ||||||||||||
| Individual Investors | 359,460 | 88,265 | 48,560 | 12% - 35% | 13,431 | 4,013 | 105 | 421 | ||||||||||||||||||
| Total | 776,337 | $ | 188,953 | $ | 100,450 | $ | 23,809 | $ | 13,023 | $ | 403 | $ | 1,614 | |||||||||||||
| ____________________ | |||||||||||||||||||||||
| 1 | Economic ownership % represents the partner's share of cash flow. | ||||||||||||||||||||||
p. 20 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
SUMMARY OF OUTSTANDING DEBT AS OF SEPTEMBER 30, 2021 | | |||||||
| ($ in thousands) | |||||||||||||||||||||||
TOTAL OUTSTANDING DEBT 1 | |||||||||||||||||||||||
| Outstanding Amount | Ratio | Weighted Average Interest Rate | Weighted Average Maturity (in years) | ||||||||||||||||||||
| Fixed Rate Debt | 1,114,787 | 84 | % | 3.78 | % | 4.3 | |||||||||||||||||
| Variable Rate Debt | 184,193 | 14 | % | 3.48 | % | 4.2 | |||||||||||||||||
| Net Debt Premiums and Issuance Costs, Net | (9,986) | N/A | N/A | N/A | |||||||||||||||||||
| Total Consolidated Debt | 1,288,994 | 98 | % | 3.74 | % | 4.3 | |||||||||||||||||
| KRG Share of Unconsolidated Debt | 23,810 | 2 | % | 4.46 | % | 5.0 | |||||||||||||||||
| Total | 1,312,804 | 100 | % | 3.75 | % | 4.3 | |||||||||||||||||
| SCHEDULE OF MATURITIES BY YEAR | ||||||||||||||||||||||||||||||||||||||
| Secured Debt | ||||||||||||||||||||||||||||||||||||||
| Scheduled Principal Payments | Term Maturities | Unsecured Debt 2 | Total Consolidated Debt | Total Unconsolidated Debt | Total Outstanding Debt | |||||||||||||||||||||||||||||||||
| 2021 | 584 | — | — | 584 | 89 | 673 | ||||||||||||||||||||||||||||||||
| 2022 | 1,043 | 153,500 | — | 154,543 | 341 | 154,884 | ||||||||||||||||||||||||||||||||
| 2023 | 806 | 161,517 | 95,000 | 257,323 | 270 | 257,593 | ||||||||||||||||||||||||||||||||
| 2024 | 854 | — | — | 854 | 1,998 | 2,852 | ||||||||||||||||||||||||||||||||
| 2025 | 904 | — | 80,000 | 80,904 | 10,734 | 91,638 | ||||||||||||||||||||||||||||||||
| 2026 | 957 | — | 300,000 | 300,957 | — | 300,957 | ||||||||||||||||||||||||||||||||
| 2027 And Beyond | 3,715 | 100 | 500,000 | 503,815 | 10,378 | 514,193 | ||||||||||||||||||||||||||||||||
| Net Debt Premiums and Issuance Cost, Net | (9,986) | — | — | (9,986) | — | (9,986) | ||||||||||||||||||||||||||||||||
| Total | $ | (1,123) | $ | 315,117 | $ | 975,000 | $ | 1,288,994 | $ | 23,810 | $ | 1,312,804 | ||||||||||||||||||||||||||
| 1 | Fixed rate debt includes, and variable rate debt excludes, the portion of such debt that has been hedged by interest rate derivatives. As of September 30, 2021, $250 million in variable rate debt is hedged for a weighted average of 4.1 years and $155 million in fixed rate debt is hedged to floating rate for a weighted average of 3.9 years. | ||||
| 2 | This presentation reflects the Company's exercise of its option to extend the maturity date by one year to April 22, 2023 for the Company's unsecured credit facility.The ability to exercise this option is subject to certain customary conditions, which the Company does not unilaterally control. | ||||
p. 21 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
MATURITY SCHEDULE OF OUTSTANDING DEBT AS OF SEPTEMBER 30, 2021 | | |||||||
| ($ in thousands) | |||||||||||||||||||||||||||||
| Property | Interest Rate1 | Maturity Date | Balance as of September 30, 2021 | % of Total Outstanding | |||||||||||||||||||||||||
| 2021 Debt Maturities | — | — | % | ||||||||||||||||||||||||||
Delray Marketplace 2 | LIBOR + 160 | 2/5/2022 | 29,193 | ||||||||||||||||||||||||||
| Bayonne Crossing | 4.43 | % | 4/1/2022 | 41,469 | |||||||||||||||||||||||||
| 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 | 154,182 | 12 | % | ||||||||||||||||||||||||||
| 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 | 20 | % | ||||||||||||||||||||||||||
| 2024 Debt Maturities | — | — | % | ||||||||||||||||||||||||||
Senior Unsecured Note 6 | LIBOR + 365 | 9/10/2025 | 80,000 | ||||||||||||||||||||||||||
| 2025 Debt Maturities | 80,000 | 6 | % | ||||||||||||||||||||||||||
| Senior Unsecured Note | 4.00 | % | 10/1/2026 | 300,000 | |||||||||||||||||||||||||
| 2026 Debt Maturities | 300,000 | 23 | % | ||||||||||||||||||||||||||
| Senior Unsecured Exchangeable Note | 0.75 | % | 4/1/2027 | 175,000 | |||||||||||||||||||||||||
Senior Unsecured Note 6 | LIBOR + 375 | 9/10/2027 | 75,000 | ||||||||||||||||||||||||||
Unsecured Term Loan 4 | LIBOR + 200 | 10/24/2028 | 250,000 | ||||||||||||||||||||||||||
| Rampart Commons | 5.73 | % | 6/10/2030 | 8,281 | |||||||||||||||||||||||||
| 2027 And Beyond Debt Maturities | 508,281 | 39 | % | ||||||||||||||||||||||||||
| NET PREMIUMS ON ACQUIRED DEBT & ISSUANCE COSTS | (9,986) | ||||||||||||||||||||||||||||
| TOTAL DEBT PER CONSOLIDATED BALANCE SHEET | $ | 1,288,994 | 98 | % | |||||||||||||||||||||||||
| KRG Share of Unconsolidated Debt | |||||||||||||||||||||||||||||
Embassy Suites at University of Notre Dame 5 | LIBOR + 250 | 7/1/2025 | 11,715 | ||||||||||||||||||||||||||
Glendale Center Apartments 5 | LIBOR + 280 | 5/31/2024 | 1,717 | ||||||||||||||||||||||||||
Nuveen 5 | 4.09% | 7/1/2028 | 10,378 | ||||||||||||||||||||||||||
| TOTAL KRG SHARE OF UNCONSOLIDATED DEBT | 23,810 | 2 | % | ||||||||||||||||||||||||||
| TOTAL CONSOLIDATED AND KRG SHARE OF UNCONSOLIDATED DEBT | $ | 1,312,804 | |||||||||||||||||||||||||||
| 1 | At September 30 2021, one-month LIBOR was 0.13%. | ||||||||||||||||||||||||||||
| 2 | Property is held in a joint venture. The loan is guaranteed by Kite Realty Group, LP. | ||||||||||||||||||||||||||||
| 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. Term loan is hedged to a fixed rate of 5.09% until initial maturity of 2025. | ||||||||||||||||||||||||||||
| 5 | Properties are held in joint ventures. See Joint Venture Summary on page 20 for additional detail. | ||||||||||||||||||||||||||||
| 6 | Notes are hedged to floating rate until 9/10/2025. | ||||||||||||||||||||||||||||
p. 22 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
KEY DEBT METRICS | | ||||
| UNSECURED PUBLIC DEBT COVENANTS | ||||||||||||||
| September 30, 2021 | Debt Covenant Threshold1 | |||||||||||||
| Total Debt to Undepreciated Assets | 38% | <60% | ||||||||||||
| Secured Debt to Undepreciated Assets | 10% | <40% | ||||||||||||
| Undepreciated Unencumbered Assets to Unsecured Debt | 277% | >150% | ||||||||||||
| Debt Service Coverage | 3.3x | >1.5x | ||||||||||||
| UNSECURED CREDIT FACILITY COVENANTS | ||||||||||||||
| September 30, 2021 | Debt Covenant Threshold | |||||||||||||
| Maximum Leverage | 39% | <60% | ||||||||||||
| Minimum Fixed Charge Coverage | 3.3x | >1.50x | ||||||||||||
| Secured Indebtedness | 10.2% | <45% | ||||||||||||
| Unsecured Debt Interest Coverage | 3.8 | >1.75x | ||||||||||||
| Unsecured Leverage | 42% | <60% | ||||||||||||
| Senior Unsecured Debt Ratings: | ||||||||||||||
| Moody's Investors Service | Baa3/Stable | |||||||||||||
| Standard & Poor's Rating Services | BBB-/Stable | |||||||||||||
| Fitch Ratings | BBB/Stable | |||||||||||||
| Liquidity ($ in thousands) | ||||||||||||||
| Cash, cash equivalents, and short-term deposits | $ | 224,514 | ||||||||||||
| Availability under unsecured credit facility | 416,103 | |||||||||||||
| $ | 640,617 | |||||||||||||
| Unencumbered NOI as a % of Total NOI | 73 | % | ||||||||||||
| 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 | $ | 1,322,205 | |||||||||
| Less: Cash, Cash Equivalents, Restricted Cash, and Short-Term Deposits | (230,926) | ||||||||||
| $ | 1,091,279 | ||||||||||
| Q3 2021 EBITDA, Annualized: | |||||||||||
| - Consolidated EBITDA | $ | 176,472 | |||||||||
- Unconsolidated EBITDA 1 | 1,614 | ||||||||||
- Minority Interest EBITDA 1 | (528) | 177,556 | |||||||||
| Ratio of Company Share of Net Debt to EBITDA | 6.1x | ||||||||||
| ____________________ | |||||||||||||||||||||||
| 1 | See page 20 for details | ||||||||||||||||||||||
p. 23 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
TOP 25 TENANTS BY ANNUALIZED BASE RENT | | |||||||
As of September 30, 2021
($ in thousands, except per square foot data)
This table includes the following:
•Operating retail properties;
•Operating office properties; and
•Development/Redevelopment property tenants open for business or ground lease tenants who commenced paying rent as of September 30, 2021.
| Number of Stores | Credit Ratings | |||||||||||||||||||||||||||||||||||||||||||||||||
| Tenant | 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 | $ | 5,455 | $ | 10.19 | 2.5 | % | N/A | N/A | |||||||||||||||||||||||||||||||||||||||
The TJX Companies, Inc.5 | 14 | 2 | 471,684 | 4,879 | 11.30 | 2.2 | % | A | A2 | |||||||||||||||||||||||||||||||||||||||||
| PetSmart, Inc. | 13 | 1 | 291,379 | 4,101 | 14.68 | 1.9 | % | B | B2 | |||||||||||||||||||||||||||||||||||||||||
| Ross Stores, Inc. | 12 | 1 | 364,442 | 4,067 | 11.81 | 1.8 | % | BBB+ | A2 | |||||||||||||||||||||||||||||||||||||||||
Dick's Sporting Goods, Inc.6 | 7 | — | 340,502 | 3,764 | 11.05 | 1.7 | % | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
| Nordstrom Rack | 5 | 1 | 197,797 | 3,571 | 20.73 | 1.6 | % | BB+ | Ba1 | |||||||||||||||||||||||||||||||||||||||||
| Michaels Stores, Inc. | 11 | 1 | 253,849 | 3,323 | 13.83 | 1.5 | % | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
| Burlington Stores, Inc. | 5 | — | 310,238 | 3,092 | 9.97 | 1.4 | % | BB+ | N/A | |||||||||||||||||||||||||||||||||||||||||
| National Amusements | 1 | — | 80,000 | 2,953 | 36.92 | 1.4 | % | B | N/A | |||||||||||||||||||||||||||||||||||||||||
| Old Navy (11) / Athleta (1) | 12 | — | 188,548 | 2,906 | 15.41 | 1.3 | % | BB | Ba2 | |||||||||||||||||||||||||||||||||||||||||
| Kohl's Corporation | 4 | — | 184,516 | 2,832 | 7.87 | 1.3 | % | BBB- | Baa2 | |||||||||||||||||||||||||||||||||||||||||
Walmart Stores, Inc.7 | 5 | — | — | 2,776 | 3.42 | 1.3 | % | AA | Aa2 | |||||||||||||||||||||||||||||||||||||||||
| Best Buy Co., Inc. | 5 | — | 183,604 | 2,661 | 14.49 | 1.2 | % | BBB+ | A3 | |||||||||||||||||||||||||||||||||||||||||
| Petco Animal Supplies, Inc. | 10 | — | 136,669 | 2,465 | 18.03 | 1.1 | % | B | B2 | |||||||||||||||||||||||||||||||||||||||||
| Lowe's Companies, Inc. | 3 | — | — | 2,375 | 4.91 | 1.1 | % | BBB+ | Baa1 | |||||||||||||||||||||||||||||||||||||||||
Bed Bath & Beyond, Inc.8 | 9 | 1 | 251,060 | 2,348 | 10.18 | 1.1 | % | B+ | Ba3 | |||||||||||||||||||||||||||||||||||||||||
| LA Fitness | 3 | — | 125,209 | 2,292 | 18.31 | 1.0 | % | CCC+ | Caa1 | |||||||||||||||||||||||||||||||||||||||||
| Hobby Lobby Stores, Inc. | 5 | — | 271,254 | 2,276 | 8.39 | 1.0 | % | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
Mattress Firm, Inc.9 | 16 | — | 76,408 | 2,142 | 28.04 | 0.9 | % | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
| Whole Foods Market, Inc. | 4 | — | 139,781 | 2,130 | 15.24 | 0.9 | % | AA | A1 | |||||||||||||||||||||||||||||||||||||||||
| Walgreens | 4 | — | 63,462 | 2,104 | 33.15 | 0.9 | % | BBB | Baa2 | |||||||||||||||||||||||||||||||||||||||||
| Sprouts Farmers Market | 4 | — | 107,241 | 2,101 | 19.59 | 0.9 | % | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
The Kroger Co.10 | 3 | — | 60,268 | 2,099 | 9.19 | 0.9 | % | BBB | Baa1 | |||||||||||||||||||||||||||||||||||||||||
| Total Wine & More | 4 | — | 105,684 | 2,013 | 19.05 | 0.9 | % | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
| Five Below, Inc. | 12 | — | 105,471 | 1,909 | 18.10 | 0.8 | % | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
| TOTAL | 182 | 7 | 4,844,532 | $ | 72,636 | $ | 11.54 | 33.1 | % | |||||||||||||||||||||||||||||||||||||||||
| 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 September 30, 2021, 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 Dick's Sporting Goods (6) and Golf Galaxy (1). | ||||
| 7 | Includes Walmart (3) and Sam's Club (2). | ||||
| 8 | Includes Bed Bath and Beyond (5) and Buy Buy Baby (5). | ||||
| 9 | Includes Mattress Firm (12) and Sleepy's (4). | ||||
| 10 | Includes Kroger (1), Harris Teeter (1), and Smith's (1). | ||||
p. 24 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
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 - Q3, 2021 | 38 | 239,157 | 17 | 124,864 | $ | 13.47 | $ | 16.23 | 20.6 | % | 32.5 | % | ||||||||||||||||||||||||||||||||||||||||||||
| New Leases - Q2, 2021 | 27 | 159,497 | 11 | 35,612 | 25.86 | 30.95 | 19.7 | % | 31.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| New Leases - Q1, 2021 | 20 | 100,604 | 16 | 89,791 | 15.20 | 19.06 | 25.3 | % | 34.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| New Leases - Q4, 2020 | 18 | 170,711 | 11 | 91,576 | 24.40 | 23.41 | (4.1) | % | 9.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Total | 103 | 669,969 | 55 | 341,843 | $ | 18.14 | $ | 20.43 | 12.6 | % | 25.1 | % | $ | 55.98 | ||||||||||||||||||||||||||||||||||||||||||
| Renewals - Q3, 2021 | 44 | 345,663 | 33 | 220,843 | $ | 18.68 | $ | 20.63 | 10.4 | % | 16.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Renewals - Q2, 2021 | 46 | 478,498 | 39 | 395,202 | 14.93 | 16.05 | 7.5 | % | 12.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Renewals - Q1, 2021 | 56 | 326,333 | 46 | 300,894 | 19.67 | 20.06 | 2.0 | % | 6.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Renewals - Q4, 2020 | 42 | 362,858 | 26 | 254,752 | 17.22 | 17.40 | 1.0 | % | 7.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Total | 188 | 1,513,352 | 144 | 1,171,691 | $ | 17.35 | $ | 18.24 | 5.1 | % | 10.5 | % | $ | 0.76 | ||||||||||||||||||||||||||||||||||||||||||
| Total - Q3, 2021 | 82 | 584,820 | 50 | 345,707 | $ | 16.79 | $ | 19.04 | 13.4 | % | 20.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Total - Q2, 2021 | 73 | 637,995 | 50 | 430,814 | 15.83 | 17.28 | 9.2 | % | 14.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Total - Q1, 2021 | 76 | 426,937 | 62 | 390,685 | 18.64 | 19.83 | 6.4 | % | 12.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Total - Q4, 2020 | 60 | 533,569 | 37 | 346,328 | 19.12 | 18.99 | (0.7) | % | 8.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||
| Total | 291 | 2,183,321 | 199 | 1,513,534 | $ | 17.53 | $ | 18.73 | 6.8 | % | 13.8 | % | $ | 13.23 | ||||||||||||||||||||||||||||||||||||||||||
| ________________ | |||||
| 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 leases with terms twenty-four months or shorter. | ||||
| 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. | ||||
p. 25 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
LEASE EXPIRATIONS | | |||||||
As of September 30, 2021
($ in thousands, except per square foot data)
This table includes the following:
•Operating retail properties;
•Operating office properties; and
•Development/Redevelopment property tenants open for business or ground lease tenants who commenced paying rent as of September 30, 2021.
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 55 | 105,920 | 44,000 | 14,054 | $ | 3,760 | 1.8 | % | $ | 29.88 | $ | 11.27 | $ | 21.34 | $ | 23.91 | |||||||||||||||||||||||||||||||||||||||||||
| 2022 | 207 | 461,667 | 518,559 | 33,241 | 20,398 | 9.9 | % | 27.70 | 13.43 | 20.82 | 20.16 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2023 | 241 | 493,148 | 1,058,836 | 113,177 | 31,711 | 15.4 | % | 29.49 | 15.47 | 7.64 | 19.08 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 212 | 465,554 | 778,424 | 66,498 | 23,295 | 11.3 | % | 29.81 | 13.61 | 14.92 | 20.12 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 196 | 400,185 | 1,199,389 | 124,107 | 27,431 | 13.4 | % | 30.19 | 11.49 | 17.16 | 16.34 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 194 | 441,101 | 1,143,370 | — | 24,897 | 12.1 | % | 28.08 | 11.49 | — | 16.25 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2027 | 137 | 303,158 | 795,669 | 18,331 | 19,856 | 9.7 | % | 30.12 | 13.17 | 32.40 | 18.14 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2028 | 72 | 181,606 | 272,757 | 61,747 | 11,145 | 5.4 | % | 31.17 | 15.15 | 22.63 | 21.65 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2029 | 52 | 139,674 | 177,159 | — | 6,522 | 3.2 | % | 31.21 | 12.21 | — | 20.59 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2030 | 45 | 146,781 | 266,032 | — | 7,675 | 3.7 | % | 27.28 | 14.51 | — | 18.91 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Beyond | 120 | 266,732 | 1,289,665 | 54,721 | 28,761 | 14.0 | % | 29.09 | 15.78 | 23.56 | 18.23 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 1,531 | 3,405,526 | 7,543,860 | 485,876 | $ | 205,453 | 100.0 | % | $ | 29.29 | $ | 13.58 | $ | 17.00 | $ | 18.49 | ||||||||||||||||||||||||||||||||||||||||||||
| ____________________ | |||||
| 1 | Lease expiration table reflects rents in place as of September 30, 2021 and does not include option periods; 2021 expirations include 18 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 September 30, 2021 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue. | ||||
p. 26 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
DEVELOPMENT AND REDEVELOPMENT PROJECTS | | |||||||
($ in thousands)
| Project | MSA | KRG Ownership % | Anticipated Start Date | Projected Stabilization Date1 | Projected New Total GLA | Projected New Owned GLA | Total Project Cost | KRG Equity Requirement | KRG Remaining Spend | Estimated Return on Project2 | ||||||||||||||||||||||
| Active Projects | ||||||||||||||||||||||||||||||||
| Glendale Town Center Apartments | Indianapolis, IN | 12% | Q2 2020 | Q2 2022 | 207,000 | 24,000 | $ | 38,400 | $ | 1,300 | $ | — | 7.0% - 8.0% | |||||||||||||||||||
| Eddy Street Commons at Notre Dame, IN - Phase III | South Bend, IN | 100% | Q3 2020 | Q1 2022 | 68,500 | 18,600 | 7,500 | 7,500 | 2,700 | 8.5% - 9.5% | ||||||||||||||||||||||
Glendale Town Center Retail3 | Indianapolis, IN | 100% | Q1 2021 | Q1 2022 | 54,500 | 54,500 | 11,000 | 3,900 | 1,600 | 27.0% - 28.0% | ||||||||||||||||||||||
| The Landing at Tradition - Phase II | Port St. Lucie, FL | 100% | Q2 2022 | Q2 2023 | 39,900 | 39,900 | 10,100 | 10,100 | 10,100 | 10.0% - 11.0% | ||||||||||||||||||||||
The Corner4 | Indianapolis, IN | 50% | Q4 2021 | Q4 2024 | 319,400 | 159,700 | 77,400 | — | — | N/A | ||||||||||||||||||||||
| Total | 689,300 | 296,700 | $ | 144,400 | $ | 22,800 | $ | 14,400 | 14.0% - 15.0% | |||||||||||||||||||||||
Future Opportunities5 | ||||||||
| Hamilton Crossing Centre - Phase II | Indianapolis, IN | Addition of mixed-use (multi-family and retail) components to complement the relocation of the Republic Airways headquarters. | ||||||
| Anchor Acceleration | |||||
| Leases Signed | 12 | ||||
| Tenants Open and Paying Rent | 1 | ||||
| Capital Spent (cumulative) | $ | 900 | |||
| Estimated Capital Remaining | 16,400 | ||||
| Total Estimated Capital | $ | 17,300 | |||
| Estimated Return on Costs | 26 | % | |||
| Projected Annualized Development / Redevelopment Cash NOI Summary | |||||
Remaining Under Construction Development / Redevelopment Cash NOI6 | $ | 3,129 | |||
| Total Remaining Annual Cash NOI | $ | 3,129 | |||
| ____________________ | ||||||||||||||||||||||||||||||||
| 1 | Stabilization date represents near completion of project construction and substantial occupancy of the property. | |||||||||||||||||||||||||||||||
| 2 | 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. | |||||||||||||||||||||||||||||||
| 3 | Equity requirement is lower than total project cost due to a $7.1 million TIF received from the City of Indianapolis. | |||||||||||||||||||||||||||||||
| 4 | KRG does not have any equity requirements related to this development. | |||||||||||||||||||||||||||||||
| 5 | These opportunities are deemed potential at this time and are subject to various contingencies, many of which could be beyond the Company's control. | |||||||||||||||||||||||||||||||
| 6 | Does not include NOI associated with the Anchor Acceleration. | |||||||||||||||||||||||||||||||
p. 27 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
GEOGRAPHIC DIVERSIFICATION – ANNUALIZED BASE RENT BY REGION AND STATE | | |||||||
As of September 30, 2021
($ 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 | 3,331,845 | $ | 53,964 | 39,400 | $ | — | 121,468 | $ | 1,582 | 29 | 3,492,713 | $ | 2,801 | $ | 58,347 | 25.8% | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas | 1,795,531 | 27,691 | — | — | 156,082 | 2,725 | 10 | 1,951,613 | 1,377 | 31,793 | 14.1% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| North Carolina | 1,233,213 | 24,819 | — | — | — | — | 9 | 1,233,213 | 817 | 25,636 | 11.4% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Oklahoma | 505,275 | 6,576 | — | — | — | — | 3 | 505,275 | 861 | 7,437 | 3.3% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Georgia | 276,318 | 3,782 | — | — | — | — | 1 | 276,318 | 357 | 4,139 | 1.8% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tennessee | 230,981 | 3,798 | — | — | — | — | 1 | 230,981 | — | 3,798 | 1.7% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| South Carolina | 257,833 | 3,106 | — | — | — | — | 2 | 257,833 | — | 3,106 | 1.4% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Texas - Other | 107,400 | 644 | — | — | — | — | 1 | 107,400 | — | 644 | 0.3% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total South | 7,738,396 | 124,380 | 39,400 | — | 277,550 | 4,307 | 56 | 8,055,346 | 6,213 | 134,900 | 59.9% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Midwest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Indiana - Retail | 1,395,530 | 23,188 | 344,890 | 2,231 | — | — | 19 | 1,740,420 | 1,519 | 26,938 | 11.9% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Indiana - Other | 365,836 | 6,859 | 24,000 | — | — | — | 4 | 389,836 | — | 6,859 | 3.0% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ohio | 236,230 | 1,899 | — | — | — | — | 1 | 236,230 | — | 1,899 | 0.8% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Illinois | 83,759 | 1,170 | — | — | — | — | 1 | 83,759 | — | 1,170 | 0.5% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Midwest | 2,081,355 | 33,116 | 368,890 | 2,231 | — | — | 25 | 2,450,245 | 1,519 | 36,866 | 16.1% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| West | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nevada | 766,084 | 19,903 | — | — | — | — | 4 | 766,084 | 3,788 | 23,691 | 10.5% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Utah | 392,288 | 7,382 | — | — | — | — | 2 | 392,288 | — | 7,382 | 3.3% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Arizona | 79,902 | 2,473 | — | — | — | — | 1 | 79,902 | — | 2,473 | 1.1% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total West | 1,238,274 | 29,758 | — | — | — | — | 7 | 1,238,274 | 3,788 | 33,546 | 14.9% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Northeast | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New York | 363,023 | 9,086 | — | — | — | — | 1 | 363,023 | — | 9,086 | 4.0% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| New Jersey | 112,140 | 2,889 | — | — | 139,022 | 2,849 | 2 | 251,162 | 2,072 | 7,810 | 3.5% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Connecticut | 205,619 | 2,561 | — | — | — | — | 1 | 205,619 | 1,061 | 3,622 | 1.6% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Northeast | 680,782 | 14,536 | — | — | 139,022 | 2,849 | 4 | 819,804 | 3,133 | 20,518 | 9.1% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11,738,807 | $ | 201,790 | 408,290 | $ | 2,231 | 416,572 | $ | 7,156 | 92 | 12,563,669 | $ | 14,653 | $ | 225,830 | 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 three redevelopment and two development projects not in the retail operating portfolio. | ||||||||||||||||||||||||||||||||||||||||
| 3 | Represents the three operating properties owned in unconsolidated joint ventures. | ||||||||||||||||||||||||||||||||||||||||
p. 28 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
OPERATING RETAIL PORTFOLIO SUMMARY REPORT | | |||||||
As of September 30, 2021
| 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 % | $ | 30.96 | Total Wine & More | Nordstrom Rack, (Home Depot) | ||||||||||||||||||||||||||||
| Connecticut | |||||||||||||||||||||||||||||||||||||||||
Crossing at Killingly Commons | Willimantic, CT | 2010 | 85% | 205,619 | 148,261 | 57,358 | 89.3 % | 100.0 % | 61.7 % | 13.95 | Stop & Shop Supermarket, (Target) | TJ Maxx, Michaels, Petco, Staples, Lowe's Home Improvement Center, Old Navy | |||||||||||||||||||||||||||||
| Florida | |||||||||||||||||||||||||||||||||||||||||
| 12th Street Plaza | Vero Beach | 1978/2003 | 100% | 135,016 | 121,376 | 13,640 | 75.7 % | 73.0 % | 100.0 % | 11.55 | Publix | Tuesday Morning | |||||||||||||||||||||||||||||
| Bayport Commons | Tampa | 2008 | 100% | 98,668 | 73,045 | 25,623 | 100.0 % | 100.0 % | 100.0 % | 17.98 | (Target) | Burlington, PetSmart, Michaels | |||||||||||||||||||||||||||||
| Centre Point Commons | Sarasota | 2007 | 100% | 119,366 | 93,574 | 25,792 | 98.7 % | 100.0 % | 93.8 % | 17.97 | Best Buy, Dick's Sporting Goods, Office Depot, Panera Bread, (Lowe's Home Improvement Center) | ||||||||||||||||||||||||||||||
| Cobblestone Plaza | Miami | 2011 | 100% | 133,251 | 68,219 | 65,032 | 96.7 % | 100.0 % | 93.2 % | 29.13 | Whole Foods | Party City, Planet Fitness | |||||||||||||||||||||||||||||
| Colonial Square | Fort Myers | 2010 | 100% | 186,517 | 150,505 | 36,012 | 98.5 % | 100.0 % | 92.3 % | 12.97 | Kohl's, Hobby Lobby, PetSmart | ||||||||||||||||||||||||||||||
| Delray Marketplace | Miami | 2013 | 98% | 260,396 | 118,136 | 142,260 | 94.3 % | 100.0 % | 89.6 % | 26.71 | Publix | Paragon 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 % | 15.82 | Lowe's Home Improvement Center, Dollar Tree | |||||||||||||||||||||||||||||
| Hunter's Creek Promenade | Orlando | 1994 | 100% | 119,765 | 55,999 | 63,766 | 98.0 % | 100.0 % | 96.3 % | 16.03 | Publix | ||||||||||||||||||||||||||||||
| Indian River Square | Vero Beach | 1997/2004 | 100% | 142,622 | 109,000 | 33,622 | 93.6 % | 100.0 % | 73.0 % | 12.51 | (Target) | Beall's, Office Depot, Dollar Tree, (Panera Bread) | |||||||||||||||||||||||||||||
| International Speedway Square | Daytona Beach | 1999/2013 | 100% | 233,424 | 203,405 | 30,019 | 86.9 % | 92.4 % | 49.6 % | 11.70 | Total Wine & More | Bed Bath & Beyond, Staples, Michaels, Dick’s Sporting Goods, Shoe Carnival, Conn's HomePlus | |||||||||||||||||||||||||||||
| Kings Lake Square | Naples | 1986/2014 | 100% | 88,616 | 45,600 | 43,016 | 98.0 % | 100.0 % | 95.8 % | 19.18 | Publix | ||||||||||||||||||||||||||||||
| Lake City Commons | Lake City | 2008 | 100% | 65,723 | 45,600 | 20,123 | 96.4 % | 100.0 % | 88.2 % | 15.75 | Publix | ||||||||||||||||||||||||||||||
| Lake City Commons - Phase II | Lake City | 2011 | 100% | 16,291 | 12,131 | 4,160 | 100.0 % | 100.0 % | 100.0 % | 15.98 | Publix | PetSmart | |||||||||||||||||||||||||||||
| Lake Mary Plaza | Orlando | 2009 | 100% | 21,385 | 14,880 | 6,505 | 100.0 % | 100.0 % | 100.0 % | 38.30 | Walgreens | ||||||||||||||||||||||||||||||
| Lithia Crossing | Tampa | 2003/2013 | 100% | 90,722 | 53,747 | 36,975 | 58.2 % | 32.6 % | 95.4 % | 23.59 | The Fresh Market | Chili's, Panera Bread | |||||||||||||||||||||||||||||
| Miramar Square | Miami | 2008 | 100% | 231,709 | 147,505 | 84,204 | 94.7 % | 100.0 % | 85.4 % | 18.27 | Sprouts Farmers Market | Kohl's, Miami Children's Hospital | |||||||||||||||||||||||||||||
| Northdale Promenade | Tampa | 1985/2017 | 100% | 179,572 | 130,269 | 49,303 | 95.0 % | 100.0 % | 81.9 % | 12.98 | (Winn Dixie) | TJ Maxx, Ulta Beauty, Beall's, Crunch Fitness, Tuesday Morning | |||||||||||||||||||||||||||||
| Pine Ridge Crossing | Naples | 1993 | 100% | 105,945 | 66,435 | 39,510 | 94.2 % | 100.0 % | 84.5 % | 18.26 | Publix, (Target) | Ulta Beauty, (Beall's) | |||||||||||||||||||||||||||||
| Pleasant Hill Commons | Orlando | 2008 | 100% | 70,645 | 45,600 | 25,045 | 100.0 % | 100.0 % | 100.0 % | 16.02 | Publix | ||||||||||||||||||||||||||||||
| Riverchase Plaza | Naples | 1991/2001 | 100% | 78,291 | 48,890 | 29,401 | 94.8 % | 100.0 % | 86.2 % | 17.13 | Publix | ||||||||||||||||||||||||||||||
| Saxon Crossing | Daytona Beach | 2009 | 100% | 119,923 | 95,304 | 24,619 | 96.8 % | 100.0 % | 84.5 % | 15.65 | (Target) | Hobby Lobby, LA Fitness, (Lowe's Home Improvement Center) | |||||||||||||||||||||||||||||
| Shoppes of Eastwood | Orlando | 1997 | 100% | 69,083 | 51,512 | 17,571 | 98.1 % | 100.0 % | 92.6 % | 14.01 | Publix | ||||||||||||||||||||||||||||||
| Shops at Eagle Creek | Naples | 1983/2013 | 100% | 70,731 | 50,187 | 20,544 | 95.8 % | 100.0 % | 85.7 % | 16.38 | The Fresh Market | Staples, (Panera Bread), (Lowe's Home Improvement Center) | |||||||||||||||||||||||||||||
| Tamiami Crossing | Naples | 2016 | 20% | 121,468 | 121,468 | — | 100.0 % | 100.0 % | — | % | 13.02 | Aldi, (Walmart) | Marshalls, Michaels, PetSmart, Ross Stores, Ulta Beauty, Beall's Outlot/Home Centric | ||||||||||||||||||||||||||||
| Tarpon Bay Plaza | Naples | 2007 | 100% | 81,864 | 59,442 | 22,422 | 98.5 % | 100.0 % | 94.6 % | 17.74 | (Target) | PetSmart, Cost Plus World Market, Ross Stores, Panera Bread | |||||||||||||||||||||||||||||
See footnotes on page 32
p. 29 | Kite Realty Group Trust Supplemental Financial and Operating Statistics - 9/30/2021 | ||||
OPERATING RETAIL PORTFOLIO SUMMARY REPORT (CONTINUED) | | |||||||
As of September 30, 2021
Property1 | Location (MSA) | Year Built/ Renovated | Owner-ship % | Owned GLA1 | Leased % | ABR per Sq. ft. | Grocery Anchors2 | Other Retailers2 | |||||||||||||||||||||||||||||||||
| Total | Anchors | Shops | Total | Anchors | Shops | ||||||||||||||||||||||||||||||||||||
| The Landing at Tradition | Port St. Lucie | 2007 | 100% | 359,025 | 283,006 | 76,019 | 80.1 % | 78.8 % | 84.7 % | 15.80 | (Target) | TJ Maxx, Ulta Beauty, Burlington, LA Fitness, Michaels, Old Navy, PetSmart, 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 % | 21.33 | The Fresh Market | ||||||||||||||||||||||||||||||
| Tradition Village Center | Port St. Lucie | 2006 | 100% | 84,998 | 45,600 | 39,398 | 97.7 % | 100.0 % | 95.0 % | 19.07 | Publix | ||||||||||||||||||||||||||||||
| Waterford Lakes Village | Orlando | 1997 | 100% | 78,007 | 51,703 | 26,304 | 98.4 % | 100.0 % | 95.2 % | 18.25 | Sprouts Farmers Market | ||||||||||||||||||||||||||||||
| Georgia | |||||||||||||||||||||||||||||||||||||||||
| Mullins Crossing | Augusta | 2005 | 100% | 276,318 | 228,224 | 48,094 | 99.3 % | 100.0 % | 96.1 % | 13.78 | (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 % | 14.30 | (Caputo's Fresh Market) | TJ Maxx, PetSmart | |||||||||||||||||||||||||||||
| Indiana | |||||||||||||||||||||||||||||||||||||||||
| 54th & College | Indianapolis | 2008 | 100% | — | — | — | — | % | — | % | — | % | — | The Fresh Market | |||||||||||||||||||||||||||
| Bridgewater Marketplace | Westfield | 2008 | 100% | 25,975 | — | 25,975 | 100.0 % | — | % | 100.0 % | 23.66 | (Walgreens), The Local Eatery, Original Pancake House | |||||||||||||||||||||||||||||
| Castleton Crossing | Indianapolis | 1975/2012 | 100% | 286,377 | 247,710 | 38,667 | 97.4 % | 100.0 % | 80.6 % | 12.26 | TJ Maxx/HomeGoods, Burlington, Shoe Carnival, Value City Furniture, K&G Menswear, Chipotle, Verizon, Five Below | ||||||||||||||||||||||||||||||
| Cool Creek Commons | Westfield | 2005 | 100% | 126,688 | 54,401 | 72,287 | 96.9 % | 100.0 % | 94.6 % | 21.18 | The Fresh Market, Total Wine & More | 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 % | 27.43 | Hammes Bookstore & Cafe, Chipotle, Urban Outfitters, Five Guys, Kilwins, Blaze Pizza | ||||||||||||||||||||||||||||||
| Fishers Station | Fishers | 1989/2018 | 100% | 52,395 | 15,441 | 36,954 | 78.8 % | 100.0 % | 70.0 % | 17.89 | Dollar Tree, Goodwill | ||||||||||||||||||||||||||||||
| Geist Pavilion | Fishers | 2006 | 100% | 63,910 | 29,700 | 34,210 | 97.6 % | 100.0 % | 95.6 % | 18.79 | Ace Hardware, Goodwill, Ale Emporium, Pure Barre | ||||||||||||||||||||||||||||||
| Greyhound Commons | Carmel | 2005 | 100% | 9,152 | — | 9,152 | 100.0 % | — | % | 100.0 % | 15.95 | (Lowe's Home Improvement Center), Koto Japenese Steakhouse | |||||||||||||||||||||||||||||
| Nora Plaza | Indianapolis | 2004 | 100% | 139,633 | 73,589 | 66,044 | 92.1 % | 100.0 % | 83.3 % | 15.30 | Whole Foods, (Target) | Marshalls | |||||||||||||||||||||||||||||
| Rangeline Crossing | Carmel | 1986/2013 | 100% | 99,483 | 48,171 | 51,312 | 91.7 % | 100.0 % | 84.0 % | 21.74 | The Fresh Market | Walgreens, Panera Bread, City BBQ | |||||||||||||||||||||||||||||
| Rivers Edge | Indianapolis | 2011 | 100% | 150,207 | 117,890 | 32,317 | 98.9 % | 100.0 % | 95.0 % | 22.80 | Nordstrom Rack, The Container Store, Arhaus Furniture, Bicycle Garage of Indy, Buy Buy Baby | ||||||||||||||||||||||||||||||
| 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% | 211,545 | 170,809 | 40,736 | 82.6 % | 85.4 % | 70.9 % | 15.51 | Dick's Sporting Goods, AMC Theatres, Michaels, Old Navy, PetSmart, Books-A-Million | ||||||||||||||||||||||||||||||
| Traders Point II | Indianapolis | 2005 | 100% | 45,978 | — | 45,978 | 90.4 % | — | % | 90.4 % | 28.38 | Starbucks, Noodles & Company, Qdoba | |||||||||||||||||||||||||||||
See footnotes on page 32
p. 30 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
OPERATING RETAIL PORTFOLIO SUMMARY REPORT (CONTINUED) | | |||||||
As of September 30, 2021
Property1 | Location (MSA) | Year Built/ Renovated | Owner-ship % | Owned GLA1 | Leased % | ABR per Sqft | Grocery Anchors2 | Other Retailers2 | |||||||||||||||||||||||||||||||||
| Total | Anchors | Shops | Total | Anchors | Shops | ||||||||||||||||||||||||||||||||||||
| Nevada | |||||||||||||||||||||||||||||||||||||||||
| Centennial Center | Las Vegas | 2002 | 100% | 334,038 | 147,824 | 186,214 | 100.0 % | 100.0 % | 100.0 % | 26.36 | Sam's Club, Walmart | Ross Stores, Big Lots, Famous Footwear, Michaels, Petco, Home Depot, HomeGoods, Skechers, Five Below, Sephora, Tillys | |||||||||||||||||||||||||||||
| Centennial Gateway | Las Vegas | 2005 | 100% | 193,049 | 139,913 | 53,136 | 100.0 % | 100.0 % | 100.0 % | 22.47 | Trader Joe's | Party City, Sportsman's Warehouse, Walgreens, UFC Fit | |||||||||||||||||||||||||||||
| Eastern Beltway Center | Las Vegas | 1998/2006 | 100% | 162,326 | 77,436 | 84,890 | 93.9 % | 100.0 % | 88.3 % | 27.15 | Sam's Club, Walmart | Petco, Ross Stores, Skechers, Old Navy, (Home Depot) | |||||||||||||||||||||||||||||
| Rampart Commons | Las Vegas | 2002/2018 | 100% | 76,671 | 11,965 | 64,706 | 100.0 % | 100.0 % | 100.0 % | 34.22 | Athleta, North Italia, Pottery Barn, Williams Sonoma, Flower Child | ||||||||||||||||||||||||||||||
| New Jersey | |||||||||||||||||||||||||||||||||||||||||
| Bayonne Crossing | New York / Northern New Jersey | 2011 | 100% | 112,140 | 51,488 | 60,652 | 73.3 % | 41.8 % | 100.0 % | 35.17 | Walmart | Michaels, Lowe's Home Improvement Center | |||||||||||||||||||||||||||||
| Livingston Shopping Center | New York / Northern New Jersey | 1997 | 20% | 139,022 | 133,125 | 5,897 | 97.9 % | 100.0 % | 50.8 % | 20.93 | 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% | 363,023 | 325,139 | 37,884 | 96.2 % | 100.0 % | 63.7 % | 26.01 | ShopRite | Nordstrom Rack, New York Sports Club, Burlington, Club Champion Golf, National Amusements | |||||||||||||||||||||||||||||
| North Carolina | |||||||||||||||||||||||||||||||||||||||||
| Eastgate Crossing | Raleigh | 1958/2007 | 100% | 158,724 | 59,456 | 99,268 | 90.7 % | 100.0 % | 85.2 % | 29.90 | Trader Joe's, Aldi | Chipotle, Petco, Starbucks, Ulta Beauty | |||||||||||||||||||||||||||||
| Holly Springs Towne Center - Phase I | Raleigh | 2013 | 100% | 209,811 | 121,761 | 88,050 | 92.6 % | 100.0 % | 82.4 % | 18.37 | (Target) | Dick's Sporting Goods, Marshalls, Petco, Ulta Beauty, Michaels, Old Navy, Five Below | |||||||||||||||||||||||||||||
| Holly Springs Towne Center - Phase II | Raleigh | 2016 | 100% | 145,043 | 111,843 | 33,200 | 100.0 % | 100.0 % | 100.0 % | 19.06 | (Target) | Bed Bath & Beyond, DSW, AMC Theatres, 02 Fitness | |||||||||||||||||||||||||||||
| Northcrest Shopping Center | Charlotte | 2008 | 100% | 133,633 | 65,576 | 68,057 | 91.8 % | 100.0 % | 83.9 % | 23.80 | (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 % | 18.12 | Whole Foods | ||||||||||||||||||||||||||||||
| Parkside Town Commons - Phase I | Raleigh | 2015 | 100% | 55,368 | 22,500 | 32,868 | 100.0 % | 100.0 % | 100.0 % | 26.87 | Harris Teeter/Kroger, (Target) | Petco, Guitar Center | |||||||||||||||||||||||||||||
| Parkside Town Commons - Phase II | Raleigh | 2017 | 100% | 298,402 | 188,785 | 109,617 | 83.8 % | 82.3 % | 86.2 % | 19.61 | (Target) | Golf Galaxy, Hobby Lobby, (Chuy's), Starbucks, Panera Bread, Levity Live, Paragon Theatres | |||||||||||||||||||||||||||||
| Perimeter Woods | Charlotte | 2008 | 100% | 125,579 | 105,175 | 20,404 | 100.0 % | 100.0 % | 100.0 % | 20.89 | Best Buy, Off Broadway Shoes, PetSmart, Michaels, (Lowe's Home Improvement Center) | ||||||||||||||||||||||||||||||
| Toringdon Market | Charlotte | 2004 | 100% | 61,129 | 26,546 | 34,583 | 97.9 % | 100.0 % | 96.3 % | 23.78 | Earth Fare | ||||||||||||||||||||||||||||||
| Ohio | |||||||||||||||||||||||||||||||||||||||||
| Eastgate Pavilion | Cincinnati | 1995 | 100% | 236,230 | 231,730 | 4,500 | 89.0 % | 88.8 % | 100.0 % | 9.03 | Best Buy, Dick's Sporting Goods, Value City Furniture, Petsmart, DSW | ||||||||||||||||||||||||||||||
| Oklahoma | |||||||||||||||||||||||||||||||||||||||||
| Belle Isle Station | Oklahoma City | 2000 | 100% | 196,210 | 115,783 | 80,427 | 86.7 % | 100.0 % | 67.5 % | 17.97 | (Walmart) | REI, Shoe Carnival, Old Navy, Ross Stores, Nordstrom Rack, Ulta Beauty, Five Below | |||||||||||||||||||||||||||||
| Shops at Moore | Oklahoma City | 2010 | 100% | 260,625 | 188,037 | 72,588 | 90.8 % | 94.6 % | 81.1 % | 12.39 | Bed Bath & Beyond, Best Buy, Hobby Lobby, Old Navy, PetSmart, Ross Stores | ||||||||||||||||||||||||||||||
| Silver Springs Pointe | Oklahoma City | 2001 | 100% | 48,440 | 20,515 | 27,925 | 83.0 % | 100.0 % | 70.4 % | 14.55 | (Sam's Club), (Walmart) | Kohls, Office Depot, (Home Depot) | |||||||||||||||||||||||||||||
See footnotes on page 32
p. 31 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
OPERATING RETAIL PORTFOLIO SUMMARY REPORT (CONTINUED) | | |||||||
As of September 30, 2021
Property1 | Location (MSA) | Year Built/ Renovated | Owner-ship % | Owned GLA1 | Leased % | ABR per Sqft | Other Retailers 2 | ||||||||||||||||||||||||||||||||||
| Total | Anchors | Shops | Total | Anchors | Shops | Grocery Anchor 2 | |||||||||||||||||||||||||||||||||||
| South Carolina | |||||||||||||||||||||||||||||||||||||||||
| Publix at Woodruff | Greenville | 1997 | 100% | 68,103 | 47,955 | 20,148 | 100.0 % | 100.0 % | 100.0 % | 11.77 | Publix | ||||||||||||||||||||||||||||||
| Shoppes at Plaza Green | Greenville | 2000 | 100% | 189,730 | 162,068 | 27,662 | 93.7 % | 100.0 % | 56.8 % | 12.96 | Bed Bath & Beyond, Christmas Tree Shops, American Freight, Party City, Shoe Carnival, Old Navy, Buy Buy Baby | ||||||||||||||||||||||||||||||
| Tennessee | |||||||||||||||||||||||||||||||||||||||||
| Cool Springs Market | Nashville | 1995 | 100% | 230,981 | 172,712 | 58,269 | 97.8 % | 100.0 % | 91.4 % | 16.81 | (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% | 126,812 | 43,450 | 83,362 | 100.0 % | 100.0 % | 100.0 % | 26.86 | H-E-B Grocery | The Container Store, Cost Plus World Market | |||||||||||||||||||||||||||||
| Colleyville Downs | Dallas/Ft. Worth | 2014 | 100% | 194,744 | 139,219 | 55,525 | 98.7 % | 100.0 % | 95.3 % | 15.90 | Whole Foods | Westlake Hardware, Goody Goody Liquor, Petco, Fit Factory | |||||||||||||||||||||||||||||
| Kingwood Commons | Houston | 1999 | 100% | 158,117 | 74,836 | 83,281 | 46.1 % | 14.5 % | 74.5 % | 25.96 | Petco, Chico's, Talbots, Ann Taylor | ||||||||||||||||||||||||||||||
| Market Street Village/ Pipeline Point | Dallas/Ft. Worth | 1970/2011 | 100% | 156,616 | 136,737 | 19,879 | 100.0 % | 100.0 % | 100.0 % | 13.59 | Spec's Wine Spirits & Finer Foods | Jo-Ann Fabric, Ross Stores, Buy Buy Baby, Party City | |||||||||||||||||||||||||||||
| Plaza at Cedar Hill | Dallas/Ft. Worth | 2000/2010 | 100% | 295,665 | 234,358 | 61,307 | 91.1 % | 90.0 % | 95.2 % | 14.28 | Sprouts Farmers Market, Total Wine & More | DSW, Ross Stores, Hobby Lobby, Marshalls, Home Goods, Ulta Beauty | |||||||||||||||||||||||||||||
| Plaza Volente | Austin | 2004 | 20% | 156,082 | 105,000 | 51,082 | 96.4 % | 100.0 % | 89.0 % | 18.11 | H-E-B Grocery | ||||||||||||||||||||||||||||||
| Portofino Shopping Center | Houston | 1999/2010 | 100% | 366,619 | 216,034 | 150,585 | 86.9 % | 89.5 % | 83.1 % | 21.50 | (Sam's Club) | DSW, Michaels, PGA Superstore, PetSmart, Old Navy, TJ Maxx, Nordstrom Rack, Five Below, Adidas | |||||||||||||||||||||||||||||
| Sunland Towne Centre | El Paso | 1996/2014 | 100% | 306,454 | 265,037 | 41,417 | 98.9 % | 100.0 % | 91.7 % | 11.37 | Sprouts Farmers Market, Spec's Wine Spirts & Finer Foods | PetSmart, Ross Stores, Bed Bath & Beyond, At Home, Five Below | |||||||||||||||||||||||||||||
| Waxahachie Crossing | Dallas/Ft. Worth | 2010 | 100% | 97,127 | 72,191 | 24,936 | 100.0 % | 100.0 % | 100.0 % | 15.57 | Best Buy, PetSmart, Ross Stores, (Home Depot) | ||||||||||||||||||||||||||||||
Westside Market (3) | Dallas/Ft. Worth | 2013 | 100% | 93,377 | 70,000 | 23,377 | 100.0 % | 100.0 % | 100.0 % | 16.70 | Randalls Tom Thumb | ||||||||||||||||||||||||||||||
| Utah | |||||||||||||||||||||||||||||||||||||||||
| Draper Crossing | Salt Lake City | 2012 | 100% | 164,657 | 115,916 | 48,741 | 100.0 % | 100.0 % | 100.0 % | 17.28 | Kroger/Smith's | TJ Maxx, Dollar Tree, Downeast Home | |||||||||||||||||||||||||||||
| Draper Peaks | Salt Lake City | 2012 | 100% | 227,631 | 101,464 | 126,167 | 93.5 % | 100.0 % | 88.3 % | 21.31 | Michaels, Office Depot, Petco, Quilted Bear, Ross Stores, (Kohl's) | ||||||||||||||||||||||||||||||
| Total | 11,657,803 | 7,871,036 | 3,786,767 | 92.8 % | 94.8 % | 88.7 % | $ | 18.54 | |||||||||||||||||||||||||||||||||
| Total at Pro-Rata Share | 11,324,545 | 7,583,362 | 3,741,184 | 92.7 | % | 94.6 | % | 88.8 | % | $ | 18.58 | ||||||||||||||||||||||||||||||
| ____________________ | |||||||||||||||||||||||||||||||||||
| 1 | Percentage of Owned GLA Leased reflects Owned GLA/NRA leased as of September 30, 2021, except for Greyhound Commons and 54th & College. | ||||||||||||||||||||||||||||||||||
| 2 | Tenants within parentheses are non-owned. | ||||||||||||||||||||||||||||||||||
| 3 | Property is held for sale. | ||||||||||||||||||||||||||||||||||
p. 32 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
NON-RETAIL OPERATING PROPERTIES | | |||||||
As of September 30, 2021
($ 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 | 284,208 | 95.9 | % | $ | 5,528 | 66.8 | % | $ | 20.37 | 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 | % | 1,331 | 16.2 | % | 16.31 | University of Notre Dame Offices | |||||||||||||||||||
| Tradition Village Office (part of Tradition Village Square) | Port St. Lucie | 2006 | 24,340 | 100.0 | % | 756 | 9.2 | % | 31.05 | ||||||||||||||||||||
| Total Commercial Properties | 390,176 | 97.0 | % | $ | 7,615 | 92.2 | % | $ | 20.12 | ||||||||||||||||||||
| Other Properties | |||||||||||||||||||||||||||||
| Burlington | San Antonio | 1992/2000 | 107,400 | 100.0 | % | $ | 644 | 7.8 | % | $ | 6.00 | Burlington | |||||||||||||||||
| 107,400 | 100.0 | % | $ | 644 | 7.8 | % | $ | 6.00 | |||||||||||||||||||||
| Total Commercial and Other | 497,576 | 97.6 | % | $ | 8,259 | 100.0 | % | $ | 17.00 | ||||||||||||||||||||
| 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 | ||||||||||||||||||||
| The Foundry Lofts and Apartments at Eddy Street Phase II | South Bend | 2020 | — | 100.0 | % | — | — | — | Air rights lease for apartment complex with 453 units | ||||||||||||||||||||
| Summit at City Center Apartments | New York / Northern New Jersey | 2004 | — | 100.0 | % | — | — | — | Apartment complex with 24 units. | ||||||||||||||||||||
| ____________________ | |||||
| 1 | Annualized Base Rent represents the monthly contractual rent as of September 30, 2021 for each applicable property, multiplied by 12. | ||||
| 2 | Annualized Base Rent includes $859,256 from the Company and subsidiaries as of September 30, 2021, which is eliminated for purposes of our consolidated financial statement presentation. | ||||
| 3 | The garage is managed by a third party. | ||||
| 4 | The Company also owns the Eddy Street Commons retail shopping center in South Bend, Indiana, along with a parking garage that serves a hotel and the office and retail components of the property. | ||||
| 5 | Property owned in an unconsolidated joint venture. | ||||
p. 33 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||
COMPONENTS OF NET ASSET VALUE | | |||||||
As of September 30, 2021
($ in thousands)
| Cash Net Operating Income (NOI) | Supplemental Page No.: | Other Assets | Supplemental Page No.: | |||||||||||||||||
| GAAP property NOI (incl. Ground Lease Revenue) | $ | 52,164 | 15 | Cash and cash equivalents | $ | 99,514 | 12 | |||||||||||||
| Below-market lease intangibles, net | (530) | 17 | Short-term deposits | 125,000 | 12 | |||||||||||||||
| Straight-line rent | (624) | 17 | Tenant and other receivables (net of SLR) | 20,730 | 12 | |||||||||||||||
| Other property related revenue | (258) | 15 | Restricted cash and escrow deposits | 4,285 | 12 | |||||||||||||||
| Ground lease ("GL") revenue | (3,663) | 15 | Short-term deposits and other assets | 39,165 | 12 | |||||||||||||||
| Consolidated Cash Property NOI (excl. GL) | $ | 47,089 | Undeveloped land in operating portfolio 1 | 13,000 | ||||||||||||||||
| Annualized Consolidated Cash Property NOI (excl. ground leases) | $ | 188,356 | Land held for development | 11,742 | ||||||||||||||||
| Total Other Asset Value | $ | 313,436 | ||||||||||||||||||
| Adjustments To Normalize Annualized Cash NOI | Liabilities | |||||||||||||||||||
Total projected remaining development / transitional redevelopment cash NOI 2 | $ | 3,129 | 27 | Mortgage and other indebtedness | $ | (1,288,994) | 12 | |||||||||||||
| Unconsolidated EBITDA | 1,614 | 20 | KRG share of unconsolidated debt | (23,810) | 20 | |||||||||||||||
| Partner share of consolidated joint venture debt | 584 | 20 | ||||||||||||||||||
| Accounts payable and accrued expenses | (85,721) | 12 | ||||||||||||||||||
| General and administrative expense allocable to property management activities included in property expenses ($1,400 in Q3) | 5,600 | 15, footnote 4 | Other liabilities3 | (38,243) | 12 | |||||||||||||||
| Total Adjustments | 10,343 | Debt premium and issuance costs, net | 9,986 | 21 | ||||||||||||||||
| Non-controlling redeemable joint venture interest | (10,070) | |||||||||||||||||||
Projected remaining under construction development/redevelopment 4 | (30,800) | 27 | ||||||||||||||||||
| Annualized Normalized Portfolio Cash NOI (excl. Ground Leases) | $ | 198,699 | Total Liabilities | $ | (1,467,068) | |||||||||||||||
| Annualized Ground Lease NOI | 14,624 | |||||||||||||||||||
| Total Annualized Portfolio Cash NOI | $ | 213,323 | Common Shares and Units Outstanding | 87,004,756 | ||||||||||||||||
| ____________________ | |||||
| 1 | Undeveloped land with a book value of $13.0 million at September 30, 2021. | ||||
| 2 | Excludes the projected cash NOI and related cost from the redevelopment opportunities outlined on page 27. | ||||
| 3 | Deferred revenue and other liabilities of $81.3 million less mark-to-market lease liability of $43.1 million. | ||||
| 4 | Remaining costs on page 27 for development projects and Anchor Acceleration. | ||||
p. 34 | Kite Realty Group Trust Supplemental Financial and Operating Statistics –9/30/2021 | ||||