Attached files
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| 8-K - FORM 8-K 11/15/10 - KITE REALTY GROUP TRUST | form8k111510.htm |
EXHIBIT 99.1
Kite Realty Group Trust
Investor Presentation
Information as of September 30, 2010
Investor Presentation
Information as of September 30, 2010
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§ Stable Operating Portfolio
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§ 60 Properties in 9 states
§ 51 Properties in the Retail Operating Portfolio 92.2% leased - 120 bps increase from Q2;
220 bps from Q1
§ Diverse tenant base: Largest tenant represents only 3.3% of annualized base rent
§ 5 mile demographics: Population 120,000; Average HHI $83,000
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§ Increased Leasing Productivity
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§ Over 910,000 square feet of leasing production in Q1-Q3 2010
§ 160,000 square feet of new and renewal leases in various stages of negotiation
§ On pace for approximately 1 million square feet in 2010 - highest level in company history
§ 28 new and renewal anchor leases for 1 million square feet completed since Q1 2009
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§ Redevelopment Progress
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§ Toy R Us / Babies R Us opened in October 2010 to occupy a 100% leased redevelopment of a
former Circuit City in Coral Springs, FL § Rivers Edge redevelopment in Indianapolis is under construction and 95% pre-leased including
anchors Nordstrom Rack, The Container Store, and BuyBuy Baby § Academy Sports at Bolton Plaza in Jacksonville opened in September and the Company is in
negotiations with another 47,000 square foot anchor to complete the Wal-Mart backfill |
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§ NOI Upside
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§ $4.5 million of annualized rent from 11 recently executed anchor tenant leases anticipated to
commence over the next 12-15 months |
Information as of September 30, 2010
COMPANY OVERVIEW
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§ Rent commencement on executed Jr anchor leases
§ $4.5 million in annualized rent anticipated to commence over the next 12-15 months
§ Increase small shop occupancy
§ From current 78% to historical 85%
§ Execute on redevelopments
§ Complete tenant construction and interior build-outs at current developments
§ 88% leased but only 55% occupied
§ Future development potential
GROWTH SOURCES
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§ We have been successful in improving the quality and predictability of our
FFO stream.
FFO stream.
Real Estate Rental Operations as a Percent of FFO
(1) 2010 projection is based on the Company’s previously released earnings guidance.
(1)
IMPROVING FFO QUALITY
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§ Improved leasing production has become a company-wide focus
§ We are on pace to achieve approximately 1 million square feet of production for
2010, the highest level in company history
2010, the highest level in company history
§ 28 new and renewal anchor leases for 1,000,000 square feet completed over the
last 5 quarters
last 5 quarters
Total Leasing Production - New and Renewal Leases
LEASING PRODUCTION
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(1) Annualized base rent represents the monthly contractual rent for September 2010 for each applicable tenant multiplied by 12.
(2) S&P credit ratings for parent company as of 11/5/10.
§ Largest single retail tenant comprises only 3.3% of total annualized base rent
§ Top 10 retail tenants account for only 22.7% of total annualized base rent
Information as of September 30, 2010
(unless otherwise noted)
DIVERSE TENANT BASE
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Peer Group Assessment:
Top Tenant as a Percent of Annualized Base Rent
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Kroger
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Bed Bath
Beyond |
Home
Depot |
Publix
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TJ Maxx
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Wal-Mart/
Sam’s |
Kroger
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A&P
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Supervalu
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Publix
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Giant
Foods |
Source: Company SEC filings.
Information as of September 30, 2010
DIVERSE TENANT BASE
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Source: Applied Geographic Solutions.
§ High quality assets with an average age of only eight years
§ Approximately half of the current portfolio was developed by KRG
§ Portfolio benefits from 100% non-owned anchor occupancy
§ Strong household incomes surrounding operating portfolio and development pipelines
Portfolio Demographics Comparison
Operating Portfolio vs. Development Pipelines
STRONG DEMOGRAPHICS
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Source: Applied Geographic Solutions.
§ We have a history of selecting strong markets for investment
§ Incomes in our Florida, Texas and Indiana portfolio incomes are significantly higher
than statewide levels
than statewide levels
STRONG DEMOGRAPHICS
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(1) Lease expirations of operating portfolio and excludes option periods and ground leases. Annualized base rent represents the monthly contractual rent
for September 2010 for each applicable property multiplied by 12.
for September 2010 for each applicable property multiplied by 12.
§ Average 8.4% of total annualized rent is expected to roll each year from 2011
through 2019
through 2019
§ Higher 2012-2015 rollover defers renewal negotiations to a potentially stronger
leasing environment
leasing environment
Information as of September 30, 2010
WELL-STAGGERED LEASE EXPIRATIONS
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§ Eddy Street Commons at Notre Dame
§ 96% pre-leased or committed
§ 97% of projected costs incurred
§ Fully operational by 12/31/10
§ Cobblestone Plaza, Ft. Lauderdale, FL
§ 78% pre-leased or committed with Whole Foods
executed lease
executed lease
§ 90% of projected costs incurred
§ Construction of Whole Foods to commence November
2010
2010
Information as of September 30, 2010
IN-PROCESS DEVELOPMENT STATUS
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§ Coral Springs Plaza - Coral Springs, FL
§ 100% leased
§ Toys R Us / Babies R Us replaced Circuit
City and opened October 2010
City and opened October 2010
§ Rivers Edge - Indianapolis, IN
§ 95% pre-leased
§ Recently signed anchors include Nordstrom Rack, The
Container Store, and BuyBuy Baby
Container Store, and BuyBuy Baby
§ Construction commenced October 2010
Information as of September 30, 2010
§ Bolton Plaza - Jacksonville, FL
§ Academy Sports opened in 65,000 square feet in
September
September
§ In negotiation with 47,000 square foot anchor for
remainder of former Wal-Mart box
remainder of former Wal-Mart box
REDEVELOPMENT STATUS
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BEFORE
§ The vacant Circuit City box
was expanded to 46,747 SF
and leased to Toys R
Us/Babies R Us.
was expanded to 46,747 SF
and leased to Toys R
Us/Babies R Us.
§ The store opened on
November 3, 2010.
November 3, 2010.
AFTER
CORAL SPRINGS REDEVELOPMENT
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BEFORE
AFTER
BEFORE
§ Demolition of the phase one
area is under way. Vertical
construction commences in
mid November.
area is under way. Vertical
construction commences in
mid November.
§ Anchor leases are fully
executed with Nordstrom
Rack, Buy Buy Baby and
Container Store. Final lease
negotiations are concluding
with various tenants.
executed with Nordstrom
Rack, Buy Buy Baby and
Container Store. Final lease
negotiations are concluding
with various tenants.
§ Rivers Edge is expected to
be one of the finest open air
shopping centers in the City
following the redevelopment.
be one of the finest open air
shopping centers in the City
following the redevelopment.
RIVERS EDGE REDEVELOPMENT
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BEFORE
AFTER
§ The former Wal-Mart box
was partially converted into
a 65,000 square foot
Academy Sports. The
tenant opened for business
in September of 2010.
was partially converted into
a 65,000 square foot
Academy Sports. The
tenant opened for business
in September of 2010.
§ We have a fully executed
LOI with a national retailer to
occupy the remaining 47,000
square feet of the building.
LOI with a national retailer to
occupy the remaining 47,000
square feet of the building.
BOLTON PLAZA REDEVELOPMENT
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Scheduled Debt Maturities (1)(2)(3)
(1) Dollars in thousands..
(2) Maturities exclude annual principal amortization.
(3) Amount due in 2012 includes the outstanding balance on our unsecured revolving credit facility reflecting exercise of maturity extension option to February 2012.
§ 2011 maturities are in process:
§ Only 2 CMBS loans totaling $20 million
§ 5 of 7 property loans held on balance sheet were underwritten with more stringent 2008-09
standards
standards
§ Approximately 83% of debt maturities through 2012 are held on balance sheet by relationship
banks including unsecured term loan
banks including unsecured term loan
MANAGING LEVERAGE
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Debt Plus Preferred as a Percent of Gross Assets(1)(2)
2010 Estimated AFFO Payout Ratio (2)(3)
(1) Source: KeyBanc Capital Markets Leaderboard 11/5/10 & Company filings.
(2) Peer Group: AKR, CDR, DDR, EQY, FRT, IRC, KIM, REG, RPT, WRI
(3) Source: SNL Financial. Based on most recently announced quarterly dividend annualized
PEER GROUP ANALYSIS
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DISCLAIMER
This presentation contains certain statements that are not historical fact and may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-
looking statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results of the Company to differ materially from historical results or from any results expressed or
implied by such forward-looking statements, including, without limitation: national and local economic,
business, real estate and other market conditions, particularly in light of the current challenging economic
conditions; financing risks, including the availability of and costs associated with sources of liquidity; the
Company’s ability to refinance, or extend the maturity dates of, its indebtedness; the level and volatility of
interest rates; the financial stability of tenants, including their ability to pay rent and the risk of tenant
bankruptcies; the competitive environment in which the Company operates; acquisition, disposition,
development and joint venture risks; property ownership and management risks; the Company’s ability to
maintain its status as a real estate investment trust (“REIT”) for federal income tax purposes; potential
environmental and other liabilities; impairment in the value of real estate property the Company owns; risks
related to the geographical concentration of our properties in Indiana, Florida and Texas; assumptions
underlying our anticipated growth sources; and other factors affecting the real estate industry generally.
The Company refers you the documents filed by the Company from time to time with the Securities and
Exchange Commission, specifically the section titled “Business Risk Factors” in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2009, which discuss these and other factors that
could adversely affect the Company’s results. The Company undertakes no obligation to publicly update
or revise these forward-looking statements (including the FFO and net income estimates), whether as a
result of new information, future events or otherwise.
statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-
looking statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results of the Company to differ materially from historical results or from any results expressed or
implied by such forward-looking statements, including, without limitation: national and local economic,
business, real estate and other market conditions, particularly in light of the current challenging economic
conditions; financing risks, including the availability of and costs associated with sources of liquidity; the
Company’s ability to refinance, or extend the maturity dates of, its indebtedness; the level and volatility of
interest rates; the financial stability of tenants, including their ability to pay rent and the risk of tenant
bankruptcies; the competitive environment in which the Company operates; acquisition, disposition,
development and joint venture risks; property ownership and management risks; the Company’s ability to
maintain its status as a real estate investment trust (“REIT”) for federal income tax purposes; potential
environmental and other liabilities; impairment in the value of real estate property the Company owns; risks
related to the geographical concentration of our properties in Indiana, Florida and Texas; assumptions
underlying our anticipated growth sources; and other factors affecting the real estate industry generally.
The Company refers you the documents filed by the Company from time to time with the Securities and
Exchange Commission, specifically the section titled “Business Risk Factors” in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2009, which discuss these and other factors that
could adversely affect the Company’s results. The Company undertakes no obligation to publicly update
or revise these forward-looking statements (including the FFO and net income estimates), whether as a
result of new information, future events or otherwise.