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EX-99.1 - EXHIBIT 99.1 EARNINGS RELEASE - KITE REALTY GROUP TRUSTexhibit99_1xq12017.htm
8-K - FORM 8-K Q1 2017 - KITE REALTY GROUP TRUSTform8k_q12017.htm
 
 
Exhibit 99.2

q12017quarterlysupplemental.jpg



QUARTERLY FINANCIAL SUPPLEMENTAL – MARCH 31, 2017
image42.jpg


 
PAGE NO.
 
TABLE OF CONTENTS
 
 
 
3
 
Corporate Profile 
4
 
Contact Information 
5
 
Important Notes Including Non-GAAP Disclosures
7
 
Consolidated Balance Sheets 
8
 
Consolidated Statements of Operations for the Three Months Ended March 31, 2017
9
 
Funds from Operations for the Three Months Ended March 31, 2017
10
 
Adjusted Funds From Operations and Other Financial Information for the Three Months Ended March 31, 2017
11
 
Market Capitalization as of March 31, 2017
11
 
Ratio of Debt to Total Undepreciated Assets as of March 31, 2017
11
 
Ratio of Company Share of Net Debt to EBITDA as of March 31, 2017
12
 
Same Property Net Operating Income for the Three Months Ended March 31, 2017
13
 
Net Operating Income by Quarter 
14
 
Consolidated Joint Venture Summary as of March 31, 2017
15
 
Summary of Outstanding Debt as of March 31, 2017
16
 
Maturity Schedule of Outstanding Debt as of March 31, 2017
18
 
Unsecured Public Debt Covenants
19
 
Top 10 Retail Tenants by Total Gross Leasable Area 
20
 
Top 25 Tenants by Annualized Base Rent 
21
 
Retail Leasing Spreads
22
 
Lease Expirations – Operating Portfolio 
23
 
Lease Expirations – Retail Anchor Tenants 
24
 
Lease Expirations – Retail Shops 
25
 
Lease Expirations – Office Tenants 
26
 
Development Projects Under Construction
27
 
Under Construction Redevelopment, Reposition, and Repurpose Projects
28
 
Redevelopment, Reposition, and Repurpose Opportunities
29
 
Geographic Diversification – Annualized Base Rent by Region and State
30
 
Operating Retail Portfolio Summary Report
35
 
Operating Office Properties
36
 
Components of Net Asset Value
37
 
Earnings Guidance – 2017



CORPORATE PROFILE
 
image42.jpg


 
General Description
 
Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust (REIT) engaged primarily in the ownership and operation, acquisition, development and redevelopment of high-quality neighborhood and community shopping centers in select markets in the United States. As of March 31, 2017, we owned interests in 118 properties totaling approximately 23.2 million square feet and two development projects currently under construction.
 
Our strategy is to maximize the cash flow of our operating properties, successfully complete the construction and lease-up of our redevelopment and development portfolio and identify additional growth opportunities in the form of acquisitions. New investments are focused in the shopping center sector primarily in markets where we believe we can leverage our existing infrastructure and relationships to generate attractive risk-adjusted returns.
  

Company Highlights as of March 31, 2017  
 
 
# of Properties
Total
GLA /NRA1
Owned
 GLA /NRA1
Operating Retail Properties
 
107

21,235,944

14,944,445

Operating Office Properties
 
2

393,803

393,803

Redevelopment Properties
 
9

1,617,498

1,326,042

Total Operating and Redevelopment Properties
 
118

23,247,245

16,664,290

Development Projects
 
2

360,642

310,277

Total All Properties
 
120

23,607,887

16,974,567

 
 
Retail
Office
Total
Operating Properties –  Leased Percentage1
 
95.2%
98.5%
95.3%
States
 
 
 
20


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




p. 3
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

CONTACT INFORMATION    
 
image42.jpg
                                



 
Corporate Office
30 South Meridian Street, Suite 1100
Indianapolis, IN 46204
(888) 577-5600
(317) 577-5600
www.kiterealty.com
 
Investor Relations Contact:
 
Analyst Coverage:
 
Analyst Coverage:
 
 
 
 
 
Daniel R. Sink
 
Robert W. Baird & Co.
 
DA Davidson
EVP & CFO
 
Mr. RJ Milligan
 
Mr. James O. Lykins
Kite Realty Group Trust 
(813) 273-8252
(503) 603-3041
30 South Meridian Street, Suite 1100 
 
rjmilligan@rwbaird.com
 
jlykins@dadco.com
Indianapolis, IN 46204 
 
 
 
 
(317) 577-5609
 
Bank of America/Merrill Lynch
 
Hilliard Lyons
dsink@kiterealty.com
 
Mr. Jeffrey Spector/Mr. Craig Schmidt
 
Ms. Carol L. Kemple
 
 
(646) 855-1363/(646) 855-3640
 
(502) 588-1839
Transfer Agent:
 
jeff.spector@baml.com
 
ckemple@hilliard.com
 
 
craig.schmidt@baml.com
 
 
Broadridge Financial Solutions
 
 
 
 
Ms. Kristen Tartaglione
 
Barclays
 
KeyBanc Capital Markets
2 Journal Square, 7th Floor
 
Mr. Ross Smotrich/Ms. Linda Tsai
 
Mr. Jordan Sadler/Mr. Todd Thomas
Jersey City, NJ  07306
 
(212) 526-2306/(212) 526-9937
 
(917) 368-2280/(917) 368-2286
(201) 714-8094
 
ross.smotrich@barclays.com
 
tthomas@keybanccm.com
 
 
linda.tsai@barclays.com
 
jsadler@keybanccm.com
Stock Specialist:
 
 
 
 
 
 
BTIG
 
Raymond James 
GTS
 
Mr. Michael Gorman
 
Mr. Paul Puryear/Mr. Collin Mings
545 Madison Avenue
 
(212) 738-6138
 
(727) 567-2253/(727) 567-2585
15th Floor 
 
mgorman@btig.com
 
paul.puryear@raymondjames.com 
New York, NY 10022 
 
 
 
collin.mings@raymondjames.com
(212) 715-2830
 
Capital One Securities, Inc.
 
 
 
 
Mr. Christopher Lucas/Mr. Vineet Khanna
 
Sandler O’Neill
 
 
(571) 633-8151/(571) 835-7013
 
Mr. Alexander Goldfarb
 
 
christopher.lucas@capitalone.com
 
(212) 466-7937
 
 
vineet.khanna@capitalone.com
 
agoldfarb@sandleroneill.com
 
 
 
 
 
 
 
Citigroup Global Markets 
 
Wells Fargo Securities, LLC
 
 
Mr. Michael Bilerman/Ms. Christy McElroy
 
Mr. Jeffrey J. Donnelly, CFA /Ms. Tamara Fique
 
 
(212) 816-1383/(212) 816-6981
 
(617) 603-4262/(443) 263-6568
 
 
michael.bilerman@citigroup.com 
 
jeff.donnelly@wellsfargo.com 
 
 
christy.mcelroy@citigroup.com
 
tamara.fique@wellsfargo.com
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




p. 4
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

IMPORTANT NOTES INCLUDING NON-GAAP DISCLOSURES    
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Interim Information 
This Quarterly Financial Supplement contains historical information of Kite Realty Group Trust (“the Company” or “KRG”) and is intended to supplement the Company’s Annual Report on Form 10-Q for the year ended March 31, 2017 to be filed on or about May 5, 2017, which should be read in conjunction with this supplement. The supplemental information is unaudited, although it reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of operating results for the interim periods.
 
Forward-Looking Statements 
This supplemental information package, together with other statements and information publicly disseminated by us, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, performance, transactions or achievements, financial or otherwise, may differ materially from the results, performance, transactions or achievements, financial or otherwise, expressed or implied by the forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include but are not limited to:
 
national and local economic, business, real estate and other market conditions, particularly in light of low growth in the U.S. economy as well as economic uncertainty caused by fluctuations in the prices of oil and other energy sources;
financing risks, including the availability of, and costs associated with, sources of liquidity;
our ability to refinance, or extend the maturity dates of, our indebtedness;
the level and volatility of interest rates;
the financial stability of tenants, including their ability to pay rent and the risk of tenant bankruptcies;
the competitive environment in which the Company operates;
acquisition, disposition, development and joint venture risks;
property ownership and management risks;
our ability to maintain our status as a real estate investment trust for federal income tax purposes;
potential environmental and other liabilities;
impairment in the value of real estate property the Company owns;
the impact of online retail and the perception that such retail has on the value of shopping center assets;
risks related to the geographical concentration of our properties in Florida, Indiana and Texas;
insurance costs and coverage;
risks associated with cybersecurity attacks and the loss of confidential information and other business disruptions;
other factors affecting the real estate industry generally; and
other risks identified in reports the Company files with the Securities and Exchange Commission (“the SEC”) or in other documents that it publicly disseminates, including, in particular, the section titled “Risk Factors” in our Annual Report on Form
10-K for the fiscal year ended December 31, 2016, and in our quarterly reports on Form 10-Q.
 
The Company undertakes no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

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






p. 5
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

IMPORTANT NOTES INCLUDING NON-GAAP DISCLOSURES (CONTINUED)
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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 should not be considered an alternative to net earnings, as an indication of the company's performance or 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 earnings (computed in accordance with GAAP) to AFFO is included elsewhere in this Financial Supplement.

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

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

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 12 months after construction is substantially complete and the properties have been transferred to the operating portfolio. A redevelopment property is first excluded from the same property pool when the execution of a redevelopment plan is likely and the Company begins recapturing space from tenants. For the quarter ended March 31, 2017, the Company excluded nine redevelopment properties from the same property pool that met these criteria and were owned in both comparable periods.

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

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


p. 6
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
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($ in thousands)
 
 
 
 
 
 
March 31,
2017
 
December 31,
2016
Assets:
 
 
 
 
Investment properties, at cost
 
$
3,984,170

 
$
3,996,065

Less: accumulated depreciation
 
(584,512
)
 
(560,683
)
 
 
3,399,658

 
3,435,382

Cash and cash equivalents
 
22,641

 
19,874

Tenant and other receivables, including accrued straight-line rent of $28,968 and $28,703 respectively, net of allowance for uncollectible accounts
 
52,334

 
53,087

Restricted cash and escrow deposits
 
9,609

 
9,037

Deferred costs and intangibles, net
 
126,407

 
129,264

Prepaid and other assets
 
12,816

 
9,727

Total Assets
 
$
3,623,465

 
$
3,656,371

Liabilities and Shareholders’ Equity:
 
 
 
 

Mortgage and other indebtedness, net
 
$
1,726,873

 
$
1,731,074

Accounts payable and accrued expenses
 
88,847

 
80,664

Deferred revenue and other liabilities
 
110,316

 
112,202

Total Liabilities
 
1,926,036

 
1,923,940

Commitments and contingencies
 
 
 
 

Limited Partners’ interests in the Operating Partnership and other redeemable noncontrolling interests
 
77,255

 
88,165

Shareholders’ Equity:
 
 
 
 

Kite Realty Group Trust Shareholders’ Equity:
 
 
 
 

Common Shares, $.01 par value, 225,000,000 shares authorized, 83,573,250 and 83,545,398 shares issued and outstanding at March 31, 2017 and
December 31, 2016, respectively
 
836

 
835

Additional paid in capital
 
2,062,081

 
2,062,360

Accumulated other comprehensive income (loss)
 
1,146

 
(316
)
Accumulated deficit
 
(444,582
)
 
(419,305
)
Total Kite Realty Group Trust Shareholders’ Equity
 
1,619,481

 
1,643,574

Noncontrolling Interests
 
693

 
692

Total Equity
 
1,620,174

 
1,644,266

Total Liabilities and Equity
 
$
3,623,465

 
$
3,656,371















p. 7
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
image42.jpg
     


($ in thousands, except per share data)
 
 
 
 
 
 
Three Months Ended
March 31,
 
 
2017
 
2016
Revenue:
 
 
 
 
  Minimum rent
 
$
68,946

 
$
67,463

  Tenant reimbursements
 
18,570

 
18,155

  Other property related revenue
 
2,596

 
2,932

Total revenue
 
90,112

 
88,550

Expenses:
 
 

 
 

  Property operating
 
12,953

 
12,192

  Real estate taxes
 
10,330

 
11,135

  General, administrative, and other
 
5,470

 
5,291

  Impairment charge
 
7,411

 

  Depreciation and amortization
 
45,830

 
42,240

Total expenses
 
81,994

 
70,858

Operating income
 
8,118

 
17,692

  Interest expense
 
(16,445
)
 
(15,325
)
  Income tax benefit (expense) of taxable REIT subsidiary
 
33

 
(410
)
  Other (expense) income, net
 
(139
)
 
18

(Loss) income from continuing operations
 
(8,433
)
 
1,975

  Gain on sale of operating property
 
8,870

 

Net income
 
437

 
1,975

  Net income attributable to noncontrolling interests
 
(432
)
 
(573
)
Net income attributable to Kite Realty Group Trust common shareholders
 
$
5

 
$
1,402

 
 
 
 
 
Income per common share - basic
 
$
0.00

 
$
0.02

Income per common share - diluted
 
$
0.00

 
$
0.02

 
 
 
 
 
Weighted average common shares outstanding - basic
 
83,565,325

 
83,348,507

Weighted average common shares outstanding - diluted
 
83,643,608

 
83,490,979

Cash dividends declared per common share
 
$
0.3025

 
$
0.2875

  


p. 8
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

FUNDS FROM OPERATIONS1
image42.jpg



($ in thousands, except per share data)
 
 
 
 
 
 
Three Months Ended
March 31,
 
 
2017
 
2016
Funds From Operations ("FFO")
 
 
 
 
Consolidated net income
 
$
437

 
$
1,975

Less: net income attributable to noncontrolling interests in properties
 
(432
)
 
(461
)
Less: gain on sale of operating property
 
(8,870
)
 

Add: impairment charge
 
7,411

 

Add: depreciation and amortization of consolidated entities, net of noncontrolling interests
 
45,366

 
42,052

   FFO of the Operating Partnership1
 
43,912

 
43,566

Less: Limited Partners' interests in FFO
 
(989
)
 
(981
)
   FFO attributable to Kite Realty Group Trust common shareholders1
 
$
42,923

 
$
42,585

FFO, as defined by NAREIT, per share of the Operating Partnership - basic
 
$
0.51

 
$
0.51

FFO, as defined by NAREIT, per share of the Operating Partnership - diluted
 
$
0.51

 
$
0.51

 
 
 
 
 
FFO of the Operating Partnership1
 
$
43,912

 
$
43,566

Add: severance charge
 

 
500

FFO, as adjusted, of the Operating Partnership
 
$
43,912

 
$
44,066

FFO, as adjusted, per share of the Operating Partnership - basic
 
$
0.51

 
$
0.52

FFO, as adjusted, per share of the Operating Partnership - diluted
 
$
0.51

 
$
0.52

 
 
 
 
 
Weighted average common shares outstanding - basic
 
83,565,325

 
83,348,507

Weighted average common shares outstanding - diluted
 
83,643,608

 
83,490,979

Weighted average common shares and units outstanding - basic
 
85,529,910

 
85,271,012

Weighted average common shares and units outstanding - diluted
 
85,608,193

 
85,413,485

 
 
 
 
 
FFO, as defined by NAREIT, per diluted share
 
 
 
 
Consolidated net income
 
$
0.01

 
$
0.02

Less: net income attributable to noncontrolling interests in properties
 
(0.01
)
 
(0.01
)
Less: gains on sales of operating properties
 
(0.10
)
 

Add: impairment charge
 
0.08

 

Add: depreciation and amortization of consolidated entities, net of noncontrolling interests
 
0.53

 
0.50

FFO, as defined by NAREIT, of the Operating Partnership per diluted share1
 
$
0.51

 
$
0.51

 
 
 
 
 
Add: severance charge
 

 
0.01

FFO, as adjusted, of the Operating Partnership per diluted share
 
$
0.51

 
$
0.52

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

p. 9
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

ADJUSTED FUNDS FROM OPERATIONS AND OTHER FINANCIAL INFORMATION
image42.jpg

 
($ in thousands)
 
 
 
 
 
 
Three Months Ended
March 31,
 
 
2017
 
2016
Reconciliation of FFO, as adjusted, to Adjusted Funds from Operations (AFFO)
 
 

 
 

FFO, as adjusted, of the Operating Partnership
 
$
43,912

 
$
44,066

Add:
 
 

 
 

Depreciation of non-real estate assets
 
471

 
233

Amortization of deferred financing costs
 
682

 
835

Non-cash compensation expense
 
1,195

 
1,050

Less:
 
 

 
 

Straight-line rent
 
1,321

 
1,443

Market rent amortization income
 
850

 
1,208

Amortization of debt premium
 
773

 
1,015

Other cash and non-cash adjustments1
 
866

 
500

Capital expenditures2:
 
 
 
 
   Maintenance capital expenditures3
 
873

 
171

   Revenue enhancing tenant improvements – retail4
 
6,554

 
2,098

   Revenue enhancing tenant improvements – office
 

 

   External lease commissions
 
620

 
494

Total AFFO of the Operating Partnership
 
$
34,403

 
$
39,255

 
 
 
 
 
Other Financial Information:
 
 
 
 
Scheduled debt principal payments 
 
$
1,115

 
$
1,065

Capitalized interest cost
 
742

 
800

Mark to market lease amount in Deferred revenue and other liabilities on consolidated balance sheet
 
93,290

 
95,360

Acreage of undeveloped, vacant land in the operating portfolio5
 
40.8

 
 


 
 
March 31,
2017
 
December 31,
2016
Investment properties, at cost:
 
 

 
 

Land, building and improvements5
 
$
3,874,343

 
$
3,885,223

Furniture, equipment and other
 
7,456

 
7,246

Land held for development
 
31,981

 
34,171

Construction in progress
 
70,390

 
69,425

Total
 
$
3,984,170

 
$
3,996,065

 
____________________
1
Reflects a non-cash termination fee for the quarter ended March 31, 2017 and a severance charge for the quarter ended March 31, 2016.
2
Excludes landlord work, tenant improvements and leasing commissions relating to development and redevelopment projects and first-generation space.
3
A portion of these capital improvements are reimbursed by tenants and are revenue producing.
4
Tenant improvement payments for 43 new tenants.
5
Includes undeveloped vacant land with a book value $15.1 million at March 31, 2017.
 


p. 10
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

MARKET CAPITALIZATION AS OF MARCH 31, 2017    
image42.jpg

($ in thousands)
 
 
 
 
 
 
Percent of
Total Equity
 
Total
Market
Capitalization
 
Percent of
Total Market
Capitalization
Equity Capitalization:
 
 
 
 
 
Total Common Shares Outstanding
97.7
%
 
83,573,250

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

 
 
Combined Common Shares and OP Units
100.0
%
 
85,560,080

 
 
Market Price of Common Shares
 
 
$
21.50

 
 
Total Equity Capitalization
 
 
1,839,542

 
52
%
Debt Capitalization:
 
 
 

 
 
Company Consolidated Outstanding Debt
 
 
1,726,873

 
 
Plus: Debt Premium and Issuance Costs, net
 
 
910

 
 
Less: Partner Share of Consolidated Joint Venture Debt1
 
 
(13,373
)
 
 
Company Share of Outstanding Debt
 
 
1,714,410

 
 
Less: Cash, Cash Equivalents, and Restricted Cash
 
 
(32,250
)
 
 
Total Net Debt Capitalization
 
 
1,682,160

 
48
%
Total Enterprise Value
 
 
$
3,521,702

 
100
%
 
 
 
 
 
 
RATIO OF DEBT TO TOTAL UNDEPRECIATED ASSETS AS OF MARCH 31, 2017
Consolidated Undepreciated Real Estate Assets
 
 
$
3,984,170

 
 
Company Share of Unconsolidated Real Estate Assets2
 
 
2,500

 
 
 
 
 
3,998,192

 
 
Total Consolidated Debt
 
 
1,726,873

 
 
Less: Debt Premium and Issuance Costs, net
 
 
910

 
 
Less: Cash, Cash Equivalents, and Restricted Cash
 
 
(32,250
)
 
 
 
 
 
$
1,695,533

 
 
Ratio of Debt to Total Undepreciated Real Estate Assets
 
 
42.4
%
 
 
 
 
 
 
 
 
RATIO OF COMPANY SHARE OF NET DEBT TO EBITDA AS OF MARCH 31, 2017
Company Share of Consolidated Debt
 
 
$
1,714,410

 
 
Less: Cash, Cash Equivalents, and Restricted Cash
 
(32,250
)
 
 
 
 
 
1,682,160

 
 
Q1 2017 EBITDA, Annualized:
 
 
 
 
 
        -  Consolidated EBITDA 3 
$
245,436

 
 
 
 
        -  Unconsolidated EBITDA
137

 
 
 
 
        - Pro-forma adjustments4
(1,233
)
 
 
 
 
        -  Minority Interest EBITDA1
(1,728
)
 
242,612

 
 
Ratio of Company Share of Net Debt to EBITDA
 

 
6.9x

 
 
 

____________________
 
 
 
 
1
See page 14 for details.
2
Included in Prepaid and other assets on Consolidated Balance Sheets.
3
Excludes impairment charge
4
Relates to current quarter GAAP operating income for Cove Center operating property that was sold during the quarter.


p. 11
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

SAME PROPERTY NET OPERATING INCOME (NOI)
image42.jpg


($ in thousands)
 
 
 
 
 
 
Three Months Ended March 31,
 
2017
 
2016
 
% Change
Number of properties for the quarter
105

 
105

 
 
 
 
 
 
 
 
Leased percentage
95.1
%
 
95.5
%
 
 
Economic Occupancy percentage2
93.9
%
 
93.3
%
 
 
 
 
 
 
 
 
Minimum rent
$
58,781

 
$
57,358

 
 
Tenant recoveries 
16,826

 
16,410

 
 
Other income
285

 
142

 
 
 
75,892

 
73,910

 
 
 
 
 
 
 
 
Property operating expenses 
(9,754
)
 
(9,367
)
 
 
Real estate taxes 
(10,043
)
 
(10,128
)
 
 
 
(19,797
)
 
(19,495
)
 
 
Net operating income - same properties3
$
56,095

 
$
54,415

 
3.1%
Net operating income - same properties excluding the impact of the 3-R initiative4
 
 
 
 
4.0%
 
 
 
 
 
 
Reconciliation of Same Property NOI to Most Directly Comparable GAAP Measure: 
 
 
 
 
 
Net operating income - same properties
$
56,095

 
$
54,415

 
 
Net operating income - non-same activity5
10,734

 
10,808

 
 
Other expense, net
(106
)
 
(392
)
 
 
General, administrative and other
(5,470
)
 
(5,291
)
 
 
Impairment charge
(7,411
)
 

 
 
Depreciation expense
(45,830
)
 
(42,240
)
 
 
Interest expense
(16,445
)
 
(15,325
)
 
 
Gain on sale of operating property
8,870

 

 
 
Net income attributable to noncontrolling interests
(432
)
 
(573
)
 
 
Net income attributable to common shareholders
$
5

 
$
1,402

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


p. 12
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

NET OPERATING INCOME BY QUARTER
image42.jpg



($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31,
2017
 
December 31,
2016
 
September 30,
2016
 
June 30,
2016
 
March 31,
2016
Revenue: 
 
 
 
 
 
 
 
 
 
 
Minimum rent1
 
$
68,946

 
$
68,622

 
$
69,518

 
$
68,455

 
$
67,463

Tenant reimbursements 
 
18,570

 
17,791

 
17,531

 
17,006

 
18,155

Other property related revenue2 
 
1,858

 
1,016

 
1,198

 
1,548

 
2,300

Overage rent
 
266

 
904

 
315

 
162

 
164

Parking revenue, net3
 
81

 
188

 
159

 
50

 
45

 
 
89,721

 
88,521

 
88,721

 
87,221

 
88,127

Expenses: 
 
 
 
 
 
 
 
 
 
 
Property operating  - Recoverable4
 
10,376

 
9,986

 
9,599

 
9,058

 
9,764

Property operating - Non-Recoverable4
 
2,318

 
2,172

 
2,091

 
2,062

 
2,181

Real estate taxes 
 
10,198

 
10,469

 
10,515

 
10,375

 
10,959

 
 
22,892

 
22,627

 
22,205

 
21,495

 
22,904

Net Operating Income - Properties 
 
66,829

 
65,894

 
66,516

 
65,726

 
65,223

Other Expenses: 
 
 
 
 
 
 
 
 
 
 
General, administrative, and other 
 
(5,470
)
 
(5,375
)
 
(5,081
)
 
(4,856
)
 
(4,791
)
Severance charge
 

 

 

 

 
(500
)
Transaction costs
 

 

 

 
(2,771
)
 

Impairment charge
 
(7,411
)
 

 

 

 

 
 
(12,881
)
 
(5,375
)
 
(5,081
)
 
(7,627
)
 
(5,291
)
Earnings Before Interest, Taxes, Depreciation and Amortization
 
53,948

 
60,519

 
61,435

 
58,099

 
59,932

Depreciation and amortization 
 
(45,830
)
 
(42,939
)
 
(45,543
)
 
(43,841
)
 
(42,240
)
Interest expense
 
(16,445
)
 
(17,613
)
 
(17,139
)
 
(15,500
)
 
(15,325
)
Income tax benefit (expense) of taxable REIT subsidiary 
 
33

 
(51
)
 
(15
)
 
(338
)
 
(410
)
Other (expense) income, net
 
(139
)
 
(75
)
 

 
(110
)
 
18

(Loss) Income From Continuing Operations
 
(8,433
)
 
(159
)
 
(1,262
)
 
(1,690
)
 
1,975

Gain on sales of operating properties
 
8,870

 
4,059

 

 
194

 

Net income (loss)
 
437

 
3,900

 
(1,262
)
 
(1,496
)
 
1,975

Less: Net income attributable to noncontrolling interests
 
(432
)
 
(541
)
 
(420
)
 
(399
)
 
(573
)
Net income (loss) attributable to Kite Realty Group Trust
 
$
5

 
$
3,359

 
$
(1,682
)
 
$
(1,895
)
 
$
1,402

NOI/Revenue
 
74.5
%
 
74.4
%
 
75.0
%
 
75.4
%
 
74.0
%
Recovery Ratios5
 
 
 
 
 
 
 
 
 
 
       - Retail Properties
 
92.0
%
 
89.2
%
 
89.4
%
 
90.1
%
 
89.2
%
       - Consolidated
 
90.3
%
 
87.0
%
 
87.2
%
 
87.5
%
 
87.6
%
 
____________________
1
Minimum rent includes $4.8 million in ground lease-related revenue for the three months ended March 31, 2017.
2
Other property related revenue for the three months ended March 31, 2017 includes $1.6 million of lease termination income.
3
Parking revenue, net represents the net operating results of the Eddy Street Parking Garage and the Union Station Parking Garage. In the three months ended March 31, 2017, this amount was calculated as revenue of $473,000 less real estate taxes and property operating expenses of $134,000 and $258,000, respectively.
4
Recoverable expenses include total management fee expense (or recurring G&A expense of $1.3 million) allocable to the property operations in the three months ended March 31, 2017, a portion of which is recoverable. Non-recoverable expenses primarily include bad debt provision, ground rent, and professional fees.
5
“Recovery Ratio” is computed by dividing tenant reimbursements by the sum of recoverable property operating expense and real estate tax expense.

p. 13
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

CONSOLIDATED JOINT VENTURE SUMMARY - MARCH 31, 2017
image42.jpg



($ in thousands)

Ownership1
 
 
 
 
 
 
 
 
 
Joint Venture Entity
Location (MSA)
Owned GLA
 
KRG
Ownership %
 
Current
KRG
Economic
Ownership%2
 
 
Delray Marketplace
Delray, FL

260,255

50%
 
98%
 
 
Pan Am Plaza
Indianapolis, IN


85%
 
85%
 
 
Crossing at Killingly Commons
Killingly, CT

208,929

55%
 
90%
 
 
Territory Portfolio3
Las Vegas, NV

847,690

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

2%
$
1,138

 
$

 
 
Pan Am Plaza

15%

 

 
 
Crossing at Killingly Commons
33,000

10%
3,300

 
10,070

 
 
Territory Portfolio3
148,940

6%
8,935

 
22,655

 
 
Total
$
238,790

 
$
13,373

 
$
32,725

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

 
$

 
KRG has an 8% cumulative preferred return
Pan Am Plaza
 
 

 

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

 
528

 
Partner receives a fixed annual preferred payment of 5.5% on $9.6 million
Territory Portfolio3
 
 
300

 
1,200

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

 
$
1,728

 
 
 
____________________
1
Separate from our redevelopment project, the Company acquired its partner's 75% interest in the Fishers Station joint venture during the first quarter for $3.8 million.
2
Economic ownership % represents the Company's share of cash flow.
3
Joint Venture includes six operating properties located in Las Vegas. During the quarter, our partner exercised its option to have the Company redeem a portion of its ownership interest in the joint venture. Our partner has elected to redeem $8.1 million of its interest for cash. The Company can determine the timing of closing, but it must occur before December 31, 2017.




p. 14
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

SUMMARY OF OUTSTANDING DEBT AS OF MARCH 31, 2017
image42.jpg

($ in thousands)
 
 
 
 
 
 
 
TOTAL OUTSTANDING DEBT1
 
 
 
 
 
 
 
Outstanding Amount
 
Ratio
 
Weighted Average
Interest Rate
 
Weighted Average
Maturity (in years)
Fixed Rate Debt
$
1,591,259

 
93
%
 
4.08
%
 
6.3

Variable Rate Debt
136,524

 
7
%
 
2.47
%
 
4.8

Net Debt Premiums and Issuance Cost, Net
(910
)
 
N/A

 
N/A

 
N/A

Total
$
1,726,873

 
100
%
 
3.95
%
 
6.2


SCHEDULE OF MATURITIES BY YEAR
 
 
 
 
 
 
Secured Debt
 
 
 
 
Scheduled Principal
Payments
 
Term
Maturities
 
Unsecured
Debt
2
 
Total Outstanding Debt
2017
 
$
3,831

 
$

 
$

 
$
3,831

2018
 
5,635

 
37,584

 

 
43,219

2019
 
5,975

 

 

 
5,975

2020
 
5,920

 
42,339

 

 
48,259

2021
 
4,627

 
159,875

 
283,400

 
447,902

2022
 
1,113

 
205,208

 
200,000

 
406,321

2023
 
806

 
214,940

 
95,000

 
310,746

2024 And Beyond
 
6,430

 
100

 
455,000

 
461,530

Net Debt Premiums and Issuance Cost, Net
 
(910
)
 

 

 
(910
)
Total
 
$
33,427

 
$
660,046

 
$
1,033,400

 
$
1,726,873

____________________
1
Fixed rate debt includes, and variable rate date excludes, the portion of such debt that has been hedged by interest rate derivatives. As of March 31, 2017, $461.1 million in variable rate debt is hedged for a weighted average 2.5 years.
2
This presentation reflects the Company's exercise of its option to extend the maturity date by one year to July 28, 2021 for the Company's unsecured credit facility.
debtgraphq1.jpg

p. 15
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

MATURITY SCHEDULE OF OUTSTANDING DEBT AS OF MARCH 31, 2017
image42.jpg


($ in thousands)
 
 
 
 
 
 
 
 
 
Property
Lender
 
Interest Rate1
 
Maturity Date
 
Balance as of
March 31, 2017
 
% of
 Total Outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Whitehall Pike
CMBS
 
6.71
%
 
7/5/2018
 
$
5,023

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

 
 
2018 Debt Maturities
 
 
 
 
 
 
38,353

 
2.2
%
 
 
 
 
 
 
 
 
 
 


 


 

 


 
 
2019 Debt Maturities
 
 
 
 
 
 

 
%
 
 
 
 
 
 
 
 
 
 
Fishers Station 2
Old National Bank
 
LIBOR + 225

 
1/4/2020
 
6,789

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

 
 
Thirty South
Associated Bank
 
LIBOR + 205

 
12/31/2020
 
17,557

 
 
2020 Debt Maturities
 
 
 
 
 
 
45,046

 
2.6
%
 
 
 
 
 
 
 
 
 
 
Waxahachie Crossing
CMBS
 
5.55
%
 
3/1/2021
 
7,750

 
 
International Speedway Square
CMBS
 
5.77
%
 
4/1/2021
 
19,278

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

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

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

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

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

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

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

 
 
Unsecured Credit Facility 3,4
KeyBank (Admin. Agent)
 
LIBOR + 135

 
7/28/2021
 
83,400

 
 
Unsecured Term Loan 4
KeyBank (Admin. Agent)
 
LIBOR + 130

 
7/28/2021
 
200,000

 
 
Bayport Commons
CMBS
 
5.44
%
 
9/1/2021
 
12,056

 
 
Eddy Street Commons
CMBS
 
5.44
%
 
9/1/2021
 
23,421

 
 
Four Property Pool Loan
CMBS
 
5.44
%
 
9/1/2021
 
34,659

 
 
2021 Debt Maturities
 
 
 
 
 
 
453,028

 
26.2
%
 
 
 
 
 
 
 
 
 
 
Centre at Panola, Phase I
CMBS
 
6.78
%
 
1/1/2022
 
1,903

 
 
Delray Marketplace 2
Bank of America
 
LIBOR + 160

 
2/5/2022
 
56,850

 
 
Palm Coast Landing
CMBS
 
5.00
%
 
3/1/2022
 
22,523

 
 
Bayonne Crossing
CMBS
 
4.33
%
 
4/1/2022
 
45,000

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

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

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

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

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

 
 
Unsecured Term Loan 4
KeyBank (Admin. Agent)
 
LIBOR + 160

 
10/26/2022
 
200,000

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

 
 
2022 Debt Maturities
 
 
 
 
 
 
415,241

 
24.0
%
See footnotes on next page
 
 
 
 
 
 
 
 
 

p. 16
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

MATURITY SCHEDULE OF OUTSTANDING DEBT AS OF MARCH 31, 2017 (CONTINUED)
image42.jpg


($ in thousands)
 
 
 
 
 
 
 
 
 
Property
Lender
 
Interest Rate1
 
Maturity Date
 
Balance as of
March 31, 2017
 
%  of
 Total Outstanding
 
 
 
 
 
 
 
 
 
 
Centennial Gateway / Eastgate 5
CMBS
 
3.81
%
 
1/1/2023
 
$
44,385

 
 
Crossing at Killingly Commons 5
Huntington Bank
 
LIBOR + 170

 
1/1/2023
 
33,000

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

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

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

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

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

 
 
2023 Debt Maturities
 
 
 
 
 
 
309,940

 
17.9
%
 
 
 
 
 
 
 
 
 
 
Senior Unsecured Note
Various
 
4.47
%
 
9/10/2025
 
80,000

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

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

 
 
Rampart Commons
CMBS
 
5.73
%
 
6/10/2030
 
11,175

 
 
2024 And Beyond Debt Maturities
 
 
 
 
 
 
466,175

 
27.0
%
NET PREMIUMS ON ACQUIRED DEBT & ISSUANCE COSTS
 
 
 
 
 
(910
)
 
 
TOTAL DEBT PER CONSOLIDATED BALANCE SHEET
 
 
 
$
1,726,873

 
 
 

____________________
1
At March 31, 2017, one-month LIBOR was 0.98%.
2
Property is held in a joint venture. The loan is guaranteed by Kite Realty Group, LP. See Joint Venture Summary on page 14 for additional detail.
3
Assumes Company exercises its option to extend the maturity date by one year
4
The Company has 104 unencumbered properties of which 97 are wholly owned and included in the unencumbered property pool of our unsecured facilities.
5
Property is held in a joint venture. See Joint Venture Summary on page 14 for additional detail.


p. 17
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

UNSECURED PUBLIC DEBT COVENANTS
image42.jpg




 
March 31, 2017
Threshold1
 
 
 
Total Debt to Undepreciated Assets
41.7%
<60%
 
 
 
Secured Debt to Undepreciated Assets
16.7%
<40%
 
 
 
Undepreciated Unencumbered Assets to Unsecured Debt
259.5%
>150%
 
 
 
Debt Service Coverage
3.5x
>1.5x
 
 
 
 
 
 
Senior Unsecured Debt Ratings:
 
 
Moody's Investors Service
Baa3/Stable
 
Standard & Poor's Rating Services
BBB-/Stable
 
 
 
 
 
 
 
Liquidity
 
 
Cash and cash equivalents
$
22,641

 
Availability under unsecured credit facility
409,987

 
 
$
432,628

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



p. 18
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

TOP 10 RETAIL TENANTS BY TOTAL GROSS LEASABLE AREA (GLA)
image42.jpg

 

As of March 31, 2017

This table includes the following:
Operating retail properties;
Operating office properties; and
Development/Redevelopment property tenants open for business or ground lease tenants who commenced paying rent as of March 31, 2017.

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

 
2,578,323

 
6

 
203,742

 
811,956

 
9

 
1,562,625

Target Corporation
 
16

 
2,301,943

 

 

 

 
16

 
2,301,943

Lowe's Companies, Inc.
 
14

 
2,072,666

 
5

 
128,997

 
650,161

 
9

 
1,293,508

Home Depot Inc.
 
6

 
788,167

 
1

 

 
131,858

 
5

 
656,309

Kohl's Corporation
 
9

 
782,386

 
5

 
184,516

 
244,010

 
4

 
353,860

Publix Super Markets, Inc.
 
15

 
722,768

 
15

 
722,768

 

 

 

The TJX Companies, Inc.2
 
22

 
656,931

 
22

 
656,931

 

 

 

Ross Stores, Inc.
 
19

 
532,707

 
19

 
532,707

 

 

 

Bed Bath & Beyond, Inc.3
 
19

 
493,719

 
19

 
493,719

 

 

 

Petsmart, Inc.
 
20

 
410,725

 
20

 
410,725

 

 

 

Total
 
155

 
11,340,335

 
112

 
3,334,105

 
1,837,985

 
43

 
6,168,245



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

 


p. 19
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

TOP 25 TENANTS BY ANNUALIZED BASE RENT
image42.jpg


As of March 31, 2017

($ in thousands, except per square foot data)

This table includes the following:
Operating retail properties;
Operating office properties; and
Development/Redevelopment property tenants open for business or ground lease tenants who commenced paying rent as of March 31, 2017.

Tenant
 
Number
of
Stores
 
Leased GLA/NRA1
 
% of Owned
GLA/NRA
of the
Portfolio
 
Annualized
Base Rent
2,3
 
Annualized
Base Rent
per Sq. Ft.
3
 
% of Total
Portfolio
Annualized
Base Rent
3
Publix Super Markets, Inc.
 
15
 
722,768

 
2.9
%
 
$
7,480

 
$
10.35

 
2.7
%
The TJX Companies, Inc.4
 
22
 
656,931

 
2.6
%
 
6,770

 
10.32

 
2.5
%
Petsmart, Inc.
 
20
 
410,725

 
1.6
%
 
6,173

 
15.03

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

 
2.0
%
 
6,050

 
12.25

 
2.2
%
Ross Stores, Inc.
 
19
 
532,707

 
2.1
%
 
5,999

 
11.24

 
2.2
%
Lowe's Companies, Inc.
 
5
 
128,997

 
0.5
%
 
5,039

 
6.47

 
1.8
%
Office Depot (10) / Office Max (6)
 
16
 
324,588

 
1.3
%
 
4,473

 
13.78

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

 
1.6
%
 
4,167

 
10.67

 
1.5
%
Ascena Retail Group7
 
34
 
206,082

 
0.8
%
 
4,119

 
19.99

 
1.5
%
Michaels Stores, Inc.
 
14
 
295,066

 
1.2
%
 
3,927

 
13.31

 
1.4
%
Nordstrom, Inc.
 
6
 
197,845

 
0.8
%
 
3,918

 
19.80

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

 
0.8
%
 
3,655

 
3.60

 
1.3
%
LA Fitness
 
5
 
208,209

 
0.8
%
 
3,447

 
16.56

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

 
0.9
%
 
3,069

 
14.37

 
1.1
%
Kohl's Corporation
 
5
 
184,516

 
0.7
%
 
2,927

 
6.83

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

 
0.7
%
 
2,924

 
11.82

 
1.1
%
National Amusements
 
1
 
80,000

 
0.3
%
 
2,898

 
36.22

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

 
0.4
%
 
2,851

 
27.15

 
1.0
%
Petco Animal Supplies, Inc.
 
12
 
167,455

 
0.7
%
 
2,804

 
16.74

 
1.0
%
The Gap, Inc.9
 
11
 
172,701

 
0.7
%
 
2,664

 
15.43

 
1.0
%
DSW Inc.
 
9
 
175,133

 
0.7
%
 
2,491

 
14.22

 
0.9
%
Frank Theatres
 
2
 
122,224

 
0.5
%
 
2,274

 
18.60

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

 
0.3
%
 
2,099

 
31.23

 
0.8
%
Ulta Salon Cosmetics & Fragrance, Inc.
 
10
 
107,015

 
0.4
%
 
2,098

 
19.60

 
0.8
%
Stein Mart, Inc.
 
8
 
275,222

 
1.1
%
 
2,072

 
7.53

 
0.8
%
TOTAL
 
286
 
6,621,280

 
26.4
%
 
$
96,388

 
$
11.53

 
35.1
%
____________________
1
Excludes the estimated size of the structures located on land owned by the Company and ground leased to tenants.
2
Annualized base rent represents the monthly contractual rent for March 31, 2017 for each applicable tenant multiplied by 12. Annualized base rent does not include tenant reimbursements.
3
Annualized base rent and percent of total portfolio includes ground lease rent.
4
Includes TJ Maxx (13), Marshalls (7) and HomeGoods (2), all of which are owned by the same parent company.
5
Includes Bed Bath and Beyond (11), Buy Buy Baby (4) Christmas Tree Shops (1) and Cost Plus (3), all of which are owned by the same parent company.
6
Includes Dick's Sporting Goods (7) and Golf Galaxy (1), both of which are owned by the same parent company.
7
Includes Ann Taylor (5), Catherine's (2), Dress Barn (11), Lane Bryant (7), Justice Stores (5) and Maurices (4), all of which are owned by the same parent company.
8
Includes Sam's Club, which is owned by the same parent company.
9
Includes Banana Republic (1), Gap (1) and Old Navy (9), all of which are owned by the same parent company.

p. 20
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

RETAIL LEASING SPREADS
image42.jpg


 
 
 
 
 
 
Comparable Space1,2
 
 
Category
 
Total Leases
Total
Sq. Ft.
 
Leases
 
Sq. Ft.
 
Prior Rent PSF3
 
New Rent PSF4,5
 
Cash Rent Spread
 
TI, LL Work, Lease Commissions PSF 6
New Leases - Q1, 20177
 
32

 
109,513

 
15
 
74,122

 
$
10.20

 
$
14.85

 
45.5
%
 
 
$
34.37

 
New Leases - Q4, 2016
 
49

 
218,329

 
25
 
137,028

 
$
14.84

 
$
18.74

 
26.3
%
 
 
$
52.03

 
New Leases - Q3, 2016
 
49

 
208,320

 
23
 
99,666

 
$
21.17

 
$
23.95

 
13.1
%
 
 
$
89.27

 
New Leases - Q2, 2016
 
45

 
125,804

 
18
 
65,877

 
$
16.72

 
$
19.98

 
19.5
%
 
 
$
33.69

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Renewals - Q1, 20178
 
48

 
399,851

 
48
 
399,851

 
$
16.13

 
$
16.89

 
4.7
%
 
 
$
2.34

 
Renewals - Q4, 2016
 
43

 
352,761

 
43
 
352,761

 
$
13.98

 
$
14.75

 
5.5
%
 
 
$
1.10

 
Renewals - Q3, 2016
 
61

 
419,605

 
61
 
419,605

 
$
15.72

 
$
17.08

 
8.7
%
 
 
$
1.12

 
Renewals - Q2, 2016
 
53

 
297,542

 
53
 
297,542

 
$
13.93

 
$
14.87

 
6.7
%
 
 
$
0.49

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total - Q1, 20178,9
 
80

 
509,364

 
63
 
473,973

 
$
15.20

 
$
16.57

 
9.0
%
 
 
$
7.34

 
Total - Q4, 2016
 
92

 
571,090

 
68
 
489,789

 
$
14.22

 
$
15.87

 
11.5
%
 
 
$
15.36

 
Total - Q3, 2016
 
110

 
627,925

 
84
 
519,271

 
$
16.77

 
$
18.40

 
9.7
%
 
 
$
18.05

 
Total - Q2, 2016
 
98

 
423,346

 
71
 
363,419

 
$
14.43

 
$
15.79

 
9.4
%
 
 
$
6.50

 

________________
1
Comparable space leases on this report are included for retail properties only. Leases at our two office properties, Thirty South Meridian and Eddy Street, are included in the totals and ground leases are excluded.
2
Comparable leases represent those leases signed for which there was a former tenant within the last 12 months.
3
Prior rent represents minimum rent, if any, paid by the prior tenant in the final 12 months of the term.
4
All amounts reported at lease execution.
5
Contractual rent represents contractual minimum rent per square foot for the first 12 months of the lease.
6
Includes redevelopment costs for tenant specific landlord work and tenant allowances provided to tenants at properties in the 3-R pipeline. Excluding the costs associated with three anchor leases the Q3, 2016 new lease amount would have been $47.53 psf.
7
Cash rent spread on comparable new leases for Q1, 2017, excluding one anchor lease, was 14.3%.
8
Cash renewal spread on comparable leases for Q1, 2017, excluding one strategic anchor renewal, was 5.5%. The aggregate spread excluding the one anchor renewal was 10.3%.
9
The aggregate spread on a straight-line basis over the contractual life of the lease to the comparable lease was 13.7%.



p. 21
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

LEASE EXPIRATIONS – OPERATING PORTFOLIO
image42.jpg



As of March 31, 2017

($ in thousands, except per square foot data)



This table includes the following:
Operating retail properties;
Operating office properties; and
Development/Redevelopment property tenants open for business or ground lease tenants who commenced paying rent as of March 31, 2017.


 
 
 
 
 
 
 
 
 
 
 
 
Number of Expiring Leases1
 
Expiring GLA/NRA2
 
% of Total GLA/NRA Expiring
 
Expiring Annualized
Base Rent
3
 
% of Total Annualized Base Rent
 
Expiring Annualized Base Rent per Sq. Ft.
 
Expiring Ground Lease Revenue
2017
 
138

 
497,926

 
3.2
%
 
$
10,317

 
4.1
%
 
$
20.72

 
$

2018
 
319

 
1,983,672

 
12.6
%
 
33,105

 
13.1
%
 
16.69

 
1,588

2019
 
267

 
1,726,487

 
11.0
%
 
25,580

 
10.1
%
 
14.82

 
652

2020
 
248

 
2,056,220

 
13.1
%
 
28,164

 
11.2
%
 
13.70

 
1,592

2021
 
311

 
1,831,942

 
11.6
%
 
30,519

 
12.1
%
 
16.66

 
905

2022
 
230

 
1,940,453

 
12.3
%
 
30,343

 
12.0
%
 
15.64

 
1,191

2023
 
130

 
1,075,038

 
6.9
%
 
17,017

 
6.7
%
 
15.83

 
360

2024
 
94

 
1,022,296

 
6.5
%
 
19,775

 
7.8
%
 
19.34

 
288

2025
 
74

 
727,687

 
4.6
%
 
12,493

 
5.0
%
 
17.17

 
806

2026
 
83

 
794,156

 
5.0
%
 
11,758

 
4.7
%
 
14.81

 
1,320

Beyond
 
121

 
2,078,680

 
13.2
%
 
33,237

 
13.2
%
 
15.99

 
10,545

 
 
2,015

 
15,734,557

 
100.0
%
 
$
252,309

 
100.0
%
 
$
16.04

 
$
19,246



____________________
1
Lease expiration table reflects rents in place as of March 31, 2017 and does not include option periods; 2017 expirations include 19 month-to-month tenants. This column also excludes ground leases.
2
Expiring GLA excludes estimated square footage attributable to non-owned structures on land owned by the Company and ground leased to tenants.
3
Annualized base rent represents the monthly contractual rent for March 2017 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue.



p. 22
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

LEASE EXPIRATIONS – RETAIL ANCHOR TENANTS1
image42.jpg
     



As of March 31, 2017

($ in thousands, except per square foot data)



This table includes the following:
Operating retail properties; and
Development/Redevelopment property tenants open for business or ground lease tenants who commenced paying rent as of March 31, 2017.


 
 
 
 
 
 
 
 
 
 
 
 
Number of Expiring Leases2
 
Expiring GLA/NRA3
 
% of Total GLA/NRA Expiring
 
Expiring Annualized Base Rent4
 
% of Total Annualized Base Rent
 
Expiring Annualized Base Rent per Sq. Ft.
 
Expiring Ground Lease Revenue
2017
 
6

 
105,273

 
0.7
%
 
$
1,543

 
0.6
%
 
$
14.66

 
$

2018
 
48

 
1,278,267

 
8.1
%
 
15,194

 
6.0
%
 
11.89

 
1,194

2019
 
35

 
1,135,043

 
7.2
%
 
11,073

 
4.4
%
 
9.76

 

2020
 
39

 
1,543,517

 
9.8
%
 
15,695

 
6.2
%
 
10.17

 
1,111

2021
 
43

 
1,120,968

 
7.1
%
 
12,991

 
5.1
%
 
11.59

 
318

2022
 
53

 
1,383,490

 
8.8
%
 
17,148

 
6.8
%
 
12.39

 
745

2023
 
27

 
705,607

 
4.5
%
 
8,363

 
3.3
%
 
11.85

 
260

2024
 
22

 
738,131

 
4.7
%
 
13,173

 
5.2
%
 
17.85

 

2025
 
19

 
485,641

 
3.1
%
 
6,719

 
2.7
%
 
13.83

 
381

2026
 
18

 
537,582

 
3.4
%
 
5,432

 
2.2
%
 
10.10

 
750

Beyond
 
50

 
1,830,902

 
11.6
%
 
26,642

 
10.6
%
 
14.55

 
6,373

 
 
360

 
10,864,421

 
69.1
%
 
$
133,973

 
53.1
%
 
$
12.33

 
$
11,131



____________________
1
Retail anchor tenants are defined as tenants that occupy 10,000 square feet or more.
2
Lease expiration table reflects rents in place as of March 31, 2017 and does not include option periods.
3
Expiring GLA excludes square footage for non-owned ground lease structures on land we own and ground leased to tenants.
4
Annualized base rent represents the monthly contractual rent for March 2017 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue.



p. 23
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

LEASE EXPIRATIONS – RETAIL SHOPS
image42.jpg



As of March 31, 2017

($ in thousands, except per square foot data)



This table includes the following:
Operating retail properties; and
Development/Redevelopment property tenants open for business as of March 31, 2017.


 
 
 
 
 
 
 
 
 
 
 
 
Number of Expiring Leases1
 
Expiring GLA/NRA2
 
% of Total GLA/NRA Expiring
 
Expiring Annualized Base Rent3
 
% of Total Annualized Base Rent
 
Expiring Annualized Base Rent per Sq. Ft.
 
Expiring Ground Lease Revenue
2017
 
131
 
321,669

 
2.0%
 
$
7,461

 
3.0%
 
$
23.20

 
$

2018
 
270
 
694,607

 
4.3%
 
17,665

 
7.0%
 
25.43

 
394

2019
 
231
 
586,191

 
3.7%
 
14,407

 
5.7%
 
24.58

 
652

2020
 
207
 
499,392

 
3.2%
 
12,212

 
4.8%
 
24.45

 
481

2021
 
265
 
701,975

 
4.5%
 
17,300

 
6.9%
 
24.65

 
587

2022
 
173
 
490,811

 
3.1%
 
12,050

 
4.8%
 
24.55

 
447

2023
 
101
 
336,443

 
2.1%
 
8,029

 
3.2%
 
23.86

 
100

2024
 
69
 
209,939

 
1.3%
 
5,403

 
2.1%
 
25.73

 
288

2025
 
51
 
155,367

 
1.0%
 
4,357

 
1.7%
 
28.04

 
425

2026
 
65
 
256,574

 
1.6%
 
6,326

 
2.5%
 
24.66

 
570

Beyond
 
69
 
229,447

 
1.4%
 
6,208

 
2.4%
 
27.06

 
4,172

 
 
1,632
 
4,482,415

 
28.3%
 
$
111,418

 
44.1%
 
$
24.86

 
$
8,115



____________________
1
Lease expiration table reflects rents in place as of March 31, 2017, and does not include option periods; 2017 expirations include 19 month-to-month tenants. This column also excludes ground leases.
2
Expiring GLA excludes estimated square footage attributable to non-owned structures on land we own and ground leased to tenants.
3
Annualized base rent represents the monthly contractual rent for March 2017 for each applicable tenant multiplied by 12. Excludes tenant reimbursements and ground lease revenue.

p. 24
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

LEASE EXPIRATIONS – OFFICE TENANTS
image42.jpg



As of March 31, 2017

($ in thousands, except per square foot data)



 
 
 
 
 
 
 
 
 
 
Number of Expiring Leases1
 
Expiring GLA/NRA2
 
% of Total GLA/NRA Expiring
 
Expiring Annualized Base Rent3
 
% of Total Annualized Base Rent
 
Expiring Annualized Base Rent per Sq. Ft.
2017
 
2
 
86,090

 
0.5%
 
$
1,554

 
0.6%
 
$
18.05

2018
 
1
 
10,798

 
0.1%
 
246

 
0.1%
 
22.81

2019
 
1
 
5,253

 
0.0%
 
101

 
0.0%
 
19.25

2020
 
2
 
13,311

 
0.1%
 
256

 
0.1%
 
19.25

2021
 
3
 
8,999

 
0.1%
 
227

 
0.1%
 
25.28

2022
 
3
 
51,046

 
0.3%
 
903

 
0.4%
 
17.69

2023
 
2
 
32,988

 
0.2%
 
625

 
0.2%
 
18.96

2024
 
3
 
74,226

 
0.5%
 
1,200

 
0.5%
 
16.16

2025
 
4
 
86,679

 
0.6%
 
1,418

 
0.6%
 
16.36

2026
 
 

 
0.0%
 

 
0.0%
 

Beyond
 
2
 
18,331

 
0.1%
 
388

 
0.2%
 
21.14

 
 
23
 
387,721

 
2.5%
 
$
6,918

 
2.8%
 
$
17.84



____________________
1
Lease expiration table reflects rents in place as of March 31, 2017 and does not include option periods. This column also excludes ground leases.
2
Lease expiration table reflects rents in place as of March 31, 2017 and does not include option periods. This column also excludes ground leases.
3
Annualized base rent represents the monthly contractual rent for March 2017 for each applicable tenant multiplied by 12. Excludes tenant reimbursements.





p. 25
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

DEVELOPMENT PROJECTS UNDER CONSTRUCTION
image42.jpg
    


As of March 31, 2017

($ in thousands)


Project
Company Ownership %
MSA
Projected
Stabilization
Date
1
Projected
Owned
GLA
2
Projected
Total
GLA
3
Percent
of Owned
GLA
Occupied
4
Percent
of Owned
GLA
Pre-Leased/
Committed
5
Total
Estimated
Project
Cost
Cost Incurred as of March 31, 2017
 
Major Tenants and
Non-owned Anchors
Parkside Town Commons, NC - Phase II
100%
Raleigh
Mid 2017
287,277

337,642

66.1
%
95.2
%
$
88,100

$
85,775

 
Frank Theatres, Hobby Lobby, Golf Galaxy, Stein Mart, Chuy's, Starbucks, Panera Bread
Holly Springs Towne Center, NC - Phase II Expansion
100%
Raleigh
Mid 2018
23,000

23,000

%
100.0
%
2,700

164

 
O2 Fitness
Total
 
310,277

360,642

61.2
%
95.6
%
$
90,800

$
85,939

 
 


Projected Annualized Development / Redevelopment Cash NOI Summary


Remaining Under Construction Development / Redevelopment Cash NOI
$
7,942

Remaining Transitional Development / Redevelopment Cash NOI
797

Total Remaining Annual Cash NOI
$
8,739





Summary of Construction In Progress on Consolidated Balance Sheet:
Under Construction Development / Redevelopment CIP
$
10,406

Transitional Development / Redevelopment CIP
9,108

Deerwood Lakes - Jacksonville, FL
25,618

Holly Springs Towne Center - Phase III
5,730

Various tenant improvements and small projects
19,528

Construction In Progress on Consolidated Balance Sheet
$
70,390



____________________
1
Stabilization date represents near completion of project construction and substantial occupancy of the property.
2
Projected Owned GLA represents gross leasable area we project we will own. It excludes square footage that we project will be attributable to non-owned outlot structures on land owned by us and expected to be ground leased to tenants. It also excludes non-owned anchor space.
3
Projected Total GLA includes Projected Owned GLA, projected square footage attributable to non-owned outlot structures on land that we own, and non-owned anchor space that currently exists or is under construction.
4
Includes tenants that have taken possession of their space or have begun paying rent.
5
Excludes outlot land parcels owned by the Company and ground leased to tenants. Includes leases under negotiation for approximately 6,832 square feet for which the Company has signed non-binding letters of intent.
 



p. 26
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

UNDER CONSTRUCTION  REDEVELOPMENT, REPOSITION, AND REPURPOSE PROJECTS
image42.jpg


($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
Property
Location (MSA)
Description
Projected ROI
Projected Cost
Percentage of Cost Spent
Est. Stabilized Period
Bolton Plaza, Phase II
Jacksonville
Replacing existing vacant shop space with Marshalls and a ground lease with Aldi; additionally undergoing center upgrades.
9.0% - 9.5%
 $6,000 - $7,000
81%
2H 2017
Burnt Store Promenade*
Punta Gorda
New building construction of Publix into 45,000 square foot space. New 20 year lease and center upgrades.
10.5% - 11.5%
 $9,000 - $10,000
67%
1H 2018
City Center*
White Plains
Reactivating street-level retail components and enhancing overall shopping experience within multilevel project.
6.5% - 7.0%
 $17,000 - $17,500
84%
1H 2018
Centennial Gateway
Las Vegas
Retenanting 13,950 square foot anchor location to Trader Joe's to enhance overall quality of the center; also includes additional structural improvements and building upgrades.
29% - 30%
 $1,000 - $1,500
5%
1H 2017
Fishers Station*
Indianapolis
Demolition, expansion, and replacement of previous anchor with a Kroger ground lease. Center upgrades and new shop space.
9.5% - 10.5%
 $10,500 - $11,500
12%
2H 2018
Market Street Village
Fort Worth
Retenanting 15,000 square foot anchor space with Party City.
25.5% - 26.5%
 $1,000 - $1,500
62%
1H 2017
Northdale Promenade*
Tampa
Multi-phase project involving rightsizing of an existing shop tenant to accommodate construction of new junior anchor, and the demolition of shop space to add another junior anchor, enhance space visibility, and improve overall small shop mix.
11.0% - 11.5%
 $5,000 - $6,000
63%
1H 2017
Portofino Shopping Center, Phase II
Houston
Demolition and expansion of existing vacant space to accommodate Nordstrom Rack; rightsizing of existing Old Navy, and relocation of shop tenants.
8.0% - 8.5%
 $6,500 - $7,500
25%
2H 2018
Trussville Promenade1
Birmingham
Replacing existing vacant small shops with 22,000 square foot junior anchor.
6.5% - 7.5%
 $4,500 - $5,500
13%
2H 2017
 
 
 
 
 
 
 
UNDER CONSTRUCTION REDEVELOPMENT, REPOSITION, REPURPOSE TOTALS
9.0% - 10.0%
$60,500 - $68,000
53%
 

COMPLETED PROJECTS DURING Q1 2017
 
 
 
 
 
 
 
 
 
 
Property
Location (MSA)
Description
Annual Projected ROI
Cost
 
 
Castleton Crossing
Indianapolis
Demolition of existing structure to create new outparcel small shop building.
11.8%
$3,300
 
 
Portofino Shopping Center, Phase I
Houston
Addition of two small shop buildings on outparcels.
9.1%
$5,100
 
 
 
 
 
 
 
 
 
COMPLETED PROJECTS TOTALS
10.2%
$8,400
 
 

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

p. 27
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

REDEVELOPMENT, REPOSITION, AND REPURPOSE OPPORTUNITIES
image42.jpg

($ in thousands)




REDEVELOPMENT
Location (MSA)
Description
Beechwood Promenade*
Athens
Remerchandising opportunity across vacant shop space via new fitness facility, fast casual dining, and other shops; also considering self storage opportunities.
Courthouse Shadows*
Naples
Recapture of natural lease expiration; re-tenanting center to add a large format tenant / grocer, as well as, additional junior box opportunities and outparcel development.
Hamilton Crossing Centre*
Indianapolis
Recapture of lease expiration; substantially enhancing merchandising mix and replacing available anchor tenant.
Rampart Commons*
Las Vegas
Addition of new tenants replacing expiring leases. Upgrades to building façades and hardscape through the center.
The Landing at Tradition
Port St. Lucie
Retenanting of 40,295 square feet, as well as, relocation of an additional existing 7,500 sf tenant within the center to allow for the construction of a new 60,628 sf new anchor tenant. Also, the construction of a new 10,000 sf small shop building on an outparcel currently owned by the Company.
Targeted Return

9.0% - 10.0%
Expected Cost

$45,000 - $55,000





REPOSITION1
Location (MSA)
Description
Centennial Center
Las Vegas
General building enhancements including improved access of main entry point. Addition of two restaurants to anchor the small shop building.
Landstown Commons
Virginia Beach
Relocation of Starbucks to create drive through. General improvement of the main street area, including façade improvements and addition of pedestrian elements.
Miramar Square
Ft. Lauderdale
Remerchandising existing 20,000 square foot anchor space to enhance tenant mix; additional asset upgrades to improve position in market.
Targeted Return

9.0% - 10.0%
Expected Cost

$15,000 - $20,000





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

9.0% - 9.5%
Expected Cost

$15,000 - $20,000






Total Targeted Return
 9.0% - 11.0%
Total Expected Cost

$75,000 - $95,000


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


p. 28
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

GEOGRAPHIC DIVERSIFICATION  ANNUALIZED BASE RENT BY REGION AND STATE
image42.jpg


As of March 31, 2017


($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Region/State
 
Total Operating Portfolio Excluding Developments and Redevelopments
 
Developments and Redevelopments2
 
Total Operating Portfolio Including
Developments and Redevelopments
 
 
Owned
GLA/NRA
1
 
Annualized
Base Rent
 
Owned
GLA/NRA
1
 
Annualized
Base Rent
 
Number of Properties
 
Owned
GLA/NRA
1
 
Annualized Base Rent - Ground Leases
 
Total Annualized
Base Rent
 
Percent of
Annualized
Base Rent
Florida
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Florida
 
4,112,863

 
$
59,541

 
283,627

 
$
2,330

 
37
 
4,396,490

 
$
3,595

 
$
65,466

 
24.1%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Southeast
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North Carolina
 
861,714

 
15,785

 
329,077

 
3,563

 
10
 
1,190,791

 
3,507

 
22,855

 
8.4%
Georgia
 
394,419

 
4,941

 
353,970

 
3,300

 
4
 
748,389

 
500

 
8,741

 
3.2%
Tennessee
 
406,444

 
6,189

 

 

 
2
 
406,444

 

 
6,189

 
2.3%
South Carolina
 
515,232

 
5,483

 

 

 
3
 
515,232

 

 
5,483

 
2.0%
Alabama
 
526,724

 
4,912

 

 

 
2
 
526,724

 
201

 
5,113

 
1.9%
Total Southeast
 
2,704,533

 
37,310

 
683,047

 
6,863

 
21
 
3,387,580

 
4,208

 
48,381

 
17.8%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mid-Central
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Texas
 
2,282,934

 
33,938

 

 

 
12
 
2,282,934

 
1,082

 
35,020

 
12.9%
Oklahoma
 
822,297

 
11,537

 

 

 
5
 
822,297

 
1,188

 
12,725

 
4.7%
Total Mid-Central
 
3,105,231

 
45,475

 

 

 
17
 
3,105,231

 
2,270

 
47,745

 
17.6%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Midwest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indiana
 
2,168,235

 
29,627

 
294,014

 
1,806

 
22
 
2,462,249

 
1,167

 
32,600

 
12.0%
Indiana - Office
 
369,556

 
6,467

 

 

 
2
 
369,556

 

 
6,467

 
2.4%
Illinois
 
310,865

 
4,212

 

 

 
3
 
310,865

 

 
4,212

 
1.6%
Ohio
 
236,230

 
2,162

 

 

 
1
 
236,230

 

 
2,162

 
0.8%
Wisconsin
 
82,254

 
1,157

 

 

 
1
 
82,254

 
381

 
1,538

 
0.6%
Total Midwest
 
3,167,140

 
43,625

 
294,014

 
1,806

 
29
 
3,461,154

 
1,548

 
46,979

 
17.4%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
West
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nevada
 
847,224

 
18,308

 
81,292

 
2,070

 
7
 
928,516

 
3,819

 
24,197

 
8.9%
Utah
 
392,397

 
6,391

 

 

 
2
 
392,397

 
68

 
6,459

 
2.4%
Arizona
 
79,902

 
2,343

 

 

 
1
 
79,902

 

 
2,343

 
0.9%
Total West
 
1,319,523

 
27,042

 
81,292

 
2,070

 
10
 
1,400,815

 
3,887

 
32,999

 
12.2%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Northeast
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New York
 

 

 
313,139

 
8,994

 
1
 
313,139

 

 
8,994

 
3.3%
New Jersey
 
245,988

 
5,784

 

 

 
2
 
245,988

 
2,251

 
8,035

 
3.0%
Virginia
 
398,349

 
7,086

 

 

 
1
 
398,349

 
294

 
7,380

 
2.7%
Connecticut
 
205,729

 
3,246

 

 

 
1
 
205,729

 
1,033

 
4,279

 
1.6%
New Hampshire
 
78,892

 
1,137

 

 

 
1
 
78,892

 
160

 
1,297

 
0.5%
Total Northeast
 
928,958

 
17,253

 
313,139

 
8,994

 
6
 
1,242,097

 
3,738

 
29,985

 
11.1%
 
 
15,338,248

 
$
230,246

 
1,655,119

 
$
22,063

 
120
 
16,993,367

 
$
19,246

 
$
271,555

 
100.0%

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


p. 29
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

OPERATING RETAIL PORTFOLIO SUMMARY REPORT
image42.jpg



As of March 31, 2017
Property1
Location (MSA)
Year
Built/
Renovated
Owned GLA2
 
Leased %
ABR
per SqFt
Major Owned Tenants
Major
Non-owned Tenants
Total
Anchors
Shops
 
Total
Anchors
Shops
Alabama
 
 
 
 
 
 
 
 
 
 
 
 
Clay Marketplace
Birmingham
1966/2003
63,107

44,840

18,267

 
97.6
%
100.0
%
91.5
%
$
12.51

Publix
 
Trussville Promenade
Birmingham
1999
463,617

376,010

87,607

 
94.0
%
100.0
%
68.0
%
9.51

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

55,883

24,019

 
100.0
%
100.0
%
100.0
%
29.32

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

148,250

57,479

 
96.9
%
100.0
%
88.9
%
16.28

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

121,376

13,640

 
97.9
%
100.0
%
79.2
%
9.64

Publix, Stein Mart, Tuesday Morning, Sunshine Furniture, Planet Fitness
 
Bayport Commons
Tampa
2008
97,193

71,540

25,653

 
93.7
%
100.0
%
76.2
%
15.90

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

136,195

18,360

 
100.0
%
100.0
%
100.0
%
9.77

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

93,574

25,701

 
100.0
%
100.0
%
100.0
%
17.32

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

68,169

65,051

 
100.0
%
100.0
%
100.0
%
27.98

Whole Foods, Party City
 
Colonial Square
Fort Myers
2010
182,358

146,283

36,075

 
69.2
%
71.4
%
60.6
%
12.88

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

Delray Marketplace3
Delray
2013
260,138

118,136

142,002

 
95.7
%
100.0
%
92.1
%
25.96

Frank Theatres, Publix, Jos. A. Bank, Carl's Patio, Chicos, Charming Charlie, Ann Taylor, Burt & Max's
 
Estero Town Commons
Naples
2006
25,631


25,631

 
80.6
%

80.6
%
14.54

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

125,162

37,081

 
86.4
%
100.0
%
40.4
%
9.45

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

55,999

63,730

 
100.0
%
100.0
%
100.0
%
14.42

Publix
 
Indian River Square
Vero Beach
1997/2004
142,706

109,000

33,706

 
92.4
%
100.0
%
68.0
%
11.33

Beall's, Office Depot, Dollar Tree
Target
International Speedway Square
Daytona
1999/2013
233,443

203,405

30,038

 
98.3
%
100.0
%
86.7
%
11.41

Bed, Bath & Beyond, Stein Mart, Old Navy, Staples, Michaels, Dick’s Sporting Goods, Total Wine & More, Shoe Carnival
 
Kings Lake Square
Naples
1986/2014
88,314

57,131

31,183

 
96.2
%
100.0
%
89.3
%
17.36

Publix
 
Lake City Commons
Lake City
2008
65,723

45,600

20,123

 
100.0
%
100.0
%
100.0
%
14.63

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

12,131

4,160

 
100.0
%
100.0
%
100.0
%
15.57

PetSmart
 
Lake Mary Plaza
Orlando
2009
21,370

14,880

6,490

 
100.0
%
100.0
%
100.0
%
37.31

Walgreens
 
Lakewood Promenade
Jacksonville
1948/1998
196,833

77,840

118,993

 
82.8
%
100.0
%
71.6
%
11.92

SteinMart, Winn Dixie
 
Lithia Crossing
Tampa
2003/2013
90,499

53,547

36,952

 
100.0
%
100.0
%
100.0
%
15.07

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

137,505

87,232

 
83.6
%
85.5
%
80.6
%
15.66

Kohl's, Miami Children's Hospital, Dollar General
 
Palm Coast Landing at Town Square
Palm Coast
2010
168,352

100,822

67,530

 
98.6
%
100.0
%
96.6
%
18.82

Michaels, PetSmart, Ross Dress for Less, TJ Maxx, Ulta Salon
Target
Pine Ridge Crossing
Naples
1993
105,867

66,351

39,516

 
100.0
%
100.0
%
100.0
%
17.68

Publix, Ulta
Beall's, Target

See footnotes on page 34




p. 30
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

OPERATING RETAIL PORTFOLIO SUMMARY REPORT (CONTINUED)
image42.jpg



As of March 31, 2017
Property1
Location (MSA)
Year
Built/
Renovated
Owned GLA2
 
Leased %
ABR
per
Sq. ft.
Major Owned Tenants
Major
Non-owned Tenants
Total
Anchors
Shops
 
Total
Anchors
Shops
Pleasant Hill Commons
Orlando
2008
70,642

45,600

25,042

 
97.2
%
100.0
%
92.2
%
$
14.93

Publix
 
Riverchase Plaza
Naples
1991/2001
78,291

48,890

29,401

 
100.0
%
100.0
%
100.0
%
16.00

Publix
 
Saxon Crossing
Orange City
2009
119,894

95,304

24,590

 
97.9
%
100.0
%
89.8
%
14.10

Hobby Lobby, LA Fitness
Lowe's Home Improvement Center, Target
Shoppes of Eastwood
Orlando
1997
69,037

51,512

17,525

 
100.0
%
100.0
%
100.0
%
13.52

Publix
 
Shops at Eagle Creek
Naples
1983/2013
70,805

50,187

20,618

 
94.7
%
100.0
%
81.8
%
15.51

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

121,705


 
100.0
%
100.0
%
%
12.49

Marshalls, Michaels, PetSmart, Ross Dress for Less, Stein Mart, Ulta
Wal-Mart
Tarpon Bay Plaza
Naples
2007
82,535

60,139

22,396

 
96.6
%
100.0
%
87.5
%
21.33

World Market, Staples, PetSmart
Target
Temple Terrace
Temple Terrace
2012
90,377

58,798

31,579

 
98.1
%
100.0
%
94.5
%
10.89

Sweetbay, United Parcel Service
 
The Landing at Tradition
Port St. Lucie
2007
360,974

290,396

70,578

 
82.3
%
86.1
%
66.7
%
15.11

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

21,038

19,181

 
100.0
%
100.0
%
100.0
%
19.25

The Fresh Market
 
The Shops at Village Walk
Fort Myers
2009
78,533

54,340

24,193

 
95.9
%
100.0
%
86.8
%
16.15

Publix
 
Tradition Village Center
Port St. Lucie
2006
84,163

45,600

38,563

 
87.6
%
100.0
%
73.0
%
16.06

Publix
 
Waterford Lakes Village
Orlando
1997
77,948

51,703

26,245

 
100.0
%
100.0
%
100.0
%
13.07

Winn-Dixie
 
Georgia
 
 
 
 
 
 
 
 
 
 
 
 
Mullins Crossing
Evans
2005
251,712

205,716

45,996

 
98.9
%
100.0
%
93.9
%
12.64

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

37,888

31,740

 
98.3
%
100.0
%
96.2
%
12.50

Publix
 
The Centre at Panola
Atlanta
2001
73,079

51,674

21,405

 
100.0
%
100.0
%
100.0
%
12.86

Publix
 
Illinois
 
 
 
 
 
 
 
 
 
 
 
 
Fox Lake Crossing
Chicago
2002
99,072

65,977

33,095

 
91.9
%
100.0
%
75.8
%
13.51

Dominick's Finer Foods, Dollar Tree
 
Naperville Marketplace
Chicago
2008
83,793

61,683

22,110

 
98.1
%
100.0
%
92.6
%
13.62

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

128,000


 
100.0
%
100.0
%
%
14.55

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



 
%
%
%
0.00

The Fresh Market (ground lease)
 
Beacon Hill
Crown Point
2006
56,897

11,043

45,854

 
94.4
%
100.0
%
93.0
%
15.90

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

74,122

20,836

 
98.3
%
100.0
%
92.3
%
11.91

Schnuck's Market
 
Boulevard Crossing
Kokomo
2004
124,631

74,440

50,191

 
95.7
%
100.0
%
89.4
%
14.78

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


25,975

 
74.9
%
%
74.9
%
20.19


Walgreens
Castleton Crossing
Indianapolis
1975/2012
286,377

247,710

38,667

 
100.0
%
100.0
%
100.0
%
11.85

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

53,600

70,672

 
93.0
%
100.0
%
87.8
%
18.01

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


11,974

 
100.0
%
%
100.0
%
8.36

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

20,154

67,837

 
96.0
%
100.0
%
94.8
%
25.11

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

29,700

34,210

 
96.2
%
100.0
%
92.8
%
16.63

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

329,546

63,456

 
97.8
%
100.0
%
86.6
%
7.14

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


9,152

 
100.0
%
%
100.0
%
13.05

 
Lowe's Home Improvement Center

See footnotes on page 34

p. 31
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

OPERATING RETAIL PORTFOLIO SUMMARY REPORT (CONTINUED)
image42.jpg


As of March 31, 2017
Property1
Location (MSA)
Year
Built/
Renovated
Owned GLA2
 
Leased %
ABR
per Sqft
Major Owned Tenants
Major
Non-owned Tenants
Total
Anchors
Shops
 
Total
Anchors
Shops
Lima Marketplace
Fort Wayne
2008
100,461

71,521

28,940

 
91.3
%
100.0
%
69.8
%
$
14.42

Aldi, Dollar Tree, Office Depot, PetSmart
Wal-Mart
Rangeline Crossing
Indianapolis
1986/2013
99,257

47,962

51,295

 
100.0
%
100.0
%
100.0
%
21.88

Earth Fare, Walgreens
 
Rivers Edge
Indianapolis
2011
150,428

117,890

32,538

 
95.5
%
100.0
%
79.2
%
21.26

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

84,330


 
100.0
%
100.0
%
%
12.57

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

238,721

40,925

 
98.1
%
100.0
%
87.2
%
15.17

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


45,977

 
96.5
%
%
96.5
%
25.70

 
 
Whitehall Pike
Bloomington
1999
128,997

128,997


 
100.0
%
100.0
%
%
7.86

Lowe's Home Improvement Center
 
Nevada
 
 
 
 
 
 
 
 
 
 
 
 
Cannery Corner3
Las Vegas
2008
30,745


30,745

 
94.3
%
%
94.3
%
35.81

 
Lowe's Home Improvement Center, Sam's Club
Centennial Center3
Las Vegas
2002
334,205

158,335

175,870

 
86.7
%
85.2
%
88.1
%
24.64

Wal-Mart, Sam's Club, Ross Dress for Less, Big Lots, Famous Footwear, Michaels, Party City, Petco, Rhapsodielle, Home Depot
 
Centennial Gateway3
Las Vegas
2005
193,033

139,861

53,172

 
93.6
%
92.1
%
97.7
%
23.96

24 Hour Fitness, Sportsman's Warehouse, Walgreens, Trader Joe's
 
Eastern Beltway Center3
Las Vegas
1998/2006
162,444

83,982

78,462

 
93.4
%
100.0
%
86.4
%
23.88

Home Consignment Center, Office Max, Petco, Ross Dress for Less, Sam's Club, Wal-Mart
Home Depot
Eastgate Plaza3
Las Vegas
2002
96,589

53,030

43,559

 
70.2
%
61.3
%
81.1
%
25.18

99 Cent Only Store, Party City
Wal-Mart
Lowe's Plaza3
Las Vegas
2007
30,208


30,208

 
48.3
%
%
48.3
%
31.79

 
Lowe's Home Improvement Center, Sam's Club
New Hampshire
 
 
 
 
 
 
 
 
 
 
 
 
Merrimack Village Center
Merrimack
2007
78,892

54,000

24,892

 
100.0
%
100.0
%
100.0
%
14.41

Supervalue (Shaw's)
 
New Jersey
 
 
 
 
 
 
 
 
 
 
 
 
Bayonne Crossing
Bayonne
2011
106,383

52,219

54,164

 
100.0
%
100.0
%
100.0
%
29.63

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

133,125

6,480

 
95.4
%
100.0
%
%
19.77

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

109,233

98,294

 
95.7
%
100.0
%
91.0
%
16.49

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

88,843

33,166

 
98.7
%
100.0
%
95.1
%
19.74

Bed Bath & Beyond, DSW, Carmike Cinemas
 
Memorial Commons
Goldsboro
2008
111,022

73,876

37,146

 
98.5
%
100.0
%
95.6
%
12.74

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

65,576

68,098

 
96.2
%
100.0
%
92.5
%
22.29

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

30,144

15,386

 
100.0
%
100.0
%
100.0
%
16.13

Whole Foods
 
Perimeter Woods
Charlotte
2008
126,155

105,262

20,893

 
100.0
%
100.0
%
100.0
%
20.82

Best Buy, Off Broadway Shoes, Office Max, PetSmart, Lowe's Home Improvement Center
 
Parkside Town Commons - Phase I
Cary
2015
55,390

22,500

32,890

 
100.0
%
100.0
%
100.0
%
23.96

Harris Teeter, Petco, Guitar Center
Target
Toringdon Market
Charlotte
2004
60,407

26,072

34,335

 
94.9
%
100.0
%
91.0
%
20.66

Earth Fare
 
See footnotes on page 34

p. 32
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

OPERATING RETAIL PORTFOLIO SUMMARY REPORT (CONTINUED)
image42.jpg


As of March 31, 2017
Property1
Location (MSA)
Year
Built/
Renovated
Owned GLA2
 
Leased %
Major Owned Tenants
Major
Non-owned Tenants
Total
Anchors
Shops
 
Total
Anchors
Shops
ABR
per Sqft
Ohio
 
 
 
 
 
 
 
 
 
 
 
 
Eastgate Pavilion
Cincinnati
1995
236,230

231,730

4,500

 
100.0
%
100.0
%
100.0
%
$
9.15

Best Buy, Dick's Sporting Goods, Value City Furniture, Petsmart, DSW, Bed Bath & Beyond
 
Oklahoma
 
 
 
 
 
 
 
 
 
 
 
 
Belle Isle Station
Oklahoma City
2000
164,334

92,783

71,551

 
97.1
%
100.0
%
93.2
%
17.33

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

187,916

72,676

 
100.0
%
100.0
%
100.0
%
12.46

Bed Bath and Beyond, Best Buy, Hobby Lobby, Office Depot, PetSmart, Ross Dress for Less
JC Penney
Silver Springs Pointe
Oklahoma City
2001
48,444

20,515

27,929

 
72.9
%
100.0
%
53.0
%
15.99

Kohls, Office Depot
Wal-Mart, Sam's Club, Home Depot
University Town Center
Norman
2009
158,440

77,097

81,343

 
94.6
%
100.0
%
89.6
%
18.10

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

133,546

56,941

 
93.0
%
100.0
%
76.7
%
12.67

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

214,480

37,890

 
90.8
%
89.7
%
97.4
%
10.36

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

47,955

20,100

 
100.0
%
100.0
%
100.0
%
10.85

Publix
 
Shoppes at Plaza Green
Greenville
2000
194,807

172,136

22,671

 
93.0
%
94.1
%
84.8
%
13.08

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

172,712

58,268

 
100.0
%
100.0
%
100.0
%
15.64

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

135,737

39,727

 
100.0
%
100.0
%
100.0
%
14.68

Dicks Sporting Goods, Michaels, Old Navy, PetSmart, Ross Dress for Less
 
Texas
 
 
 
 
 
 
 
 
 
 
 
 
Burlington Coat Factory
San Antonio
1992/2000
107,400

107,400


 
100.0
%
100.0
%
%
5.50

Burlington Coat Factory
 
Chapel Hill Shopping Center
Fort Worth
2001
126,755

43,450

83,305

 
92.5
%
100.0
%
88.6
%
24.81

H-E-B Grocery, The Container Store, Cost Plus World Market
 
Colleyville Downs
Dallas
2014
190,940

142,073

48,867

 
100.0
%
100.0
%
100.0
%
12.99

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

74,836

89,530

 
100.0
%
100.0
%
100.0
%
19.83

Randall's Food and Drug, Petco, Chico's, Talbots, Ann Taylor, Jos. A. Bank
 
Market Street Village/
Pipeline Point
Fort Worth
1970/2011
156,625

136,746

19,879

 
100.0
%
100.0
%
100.0
%
12.92

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

244,065

58,393

 
100.0
%
100.0
%
100.0
%
13.19

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

105,000

51,308

 
96.8
%
100.0
%
90.2
%
17.34

H-E-B Grocery
 
Portofino Shopping Center
Houston
1999/2010
386,414

218,909

167,505

 
92.3
%
100.0
%
82.2
%
19.58

DSW, Michaels, PGA Superstore, SteinMart, PetSmart, Old Navy, TJ Maxx, Nordstrom Rack
Sam's Club
Sunland Towne Centre
El Paso
1996/2014
306,437

265,037

41,400

 
98.9
%
100.0
%
91.7
%
11.89

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

See footnotes on page 34

p. 33
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

OPERATING RETAIL PORTFOLIO SUMMARY REPORT (CONTINUED)
image42.jpg



As of March 31, 2017
Property1
Location (MSA)
Year
Built/
Renovated
Owned GLA2
 
Leased %
ABR
per Sqft
 Major Owned Tenants
Major
Non-owned Tenants
Total
Anchors
Shops
 
Total
Anchors
Shops
Waxahachie Crossing
Waxahachie
2010
97,127

72,191

24,936

 
100.0
%
100.0
%
100.0
%
$
14.71

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

70,000

23,377

 
100.0
%
100.0
%
100.0
%
16.17

Randall's Tom Thumb
 
Wheatland Towne Crossing
Dallas
2012
194,727

142,302

52,425

 
100.0
%
100.0
%
100.0
%
13.02

Conn's, Dollar Tree, Office Depot, Party City, PetSmart, Ross Dress for Less, Shoe Carnival
Target, Aldi
Utah
 
 
 
 
 
 
 
 
 
 
 
 
Draper Crossing
Draper
2012
164,098

115,916

48,182

 
95.0
%
100.0
%
82.8
%
14.81

TJ Maxx, Dollar Tree, Downeast Home, Smith's
 
Draper Peaks
Draper
2012
228,299

101,464

126,835

 
92.2
%
100.0
%
85.9
%
19.41

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

207,300

191,049

 
93.1
%
100.0
%
85.6
%
19.11

Bed Bath & Beyond, Best Buy, Books-A-Million, Five Below, Office Max, Pestmart, Rack Room, Ulta, Walgreens, Kirkland, AC Moore, Ross Dress for Less
Kohl's
Wisconsin
 
 
 
 
 
 
 
 
 
 
 
 
Village at Bay Park
Ashwaubenon
2005
82,254

23,878

58,376

 
90.3
%
100.0
%
86.3
%
15.58

DSW, JC Penney
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Total
 
 
14,944,445

10,268,747

4,675,698

 
95.2
%
98.2
%
88.6
%
$
15.70

 
 
 Total Including Development and 3-R Properties not in the Operating Portfolio - see pages 26-28
 
 
$
15.99

 
 


____________________
1
All properties are wholly owned, except as indicated. Unless otherwise noted, each property is owned in fee simple by the Company.
2
Percentage of Owned GLA Leased reflects Owned GLA/NRA leased as of March 31, 2017, except for Greyhound Commons and 54th & College.
3
See Joint Venture Summary on page 14.





















p. 34
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

OPERATING OFFICE PROPERTIES
image42.jpg



As of March 31, 2017

($ in thousands, except per square foot data)



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

99.0
%
$
5,216

75.4
%
$
18.31

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

N/A

N/A

N/A

N/A

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

100.0
%
1,251

18.1
%
15.32

 
University of Notre Dame Offices
Tradition Village Office (part of Tradition Village Square)
Port St. Lucie
2006
Acquired
24,247

87.3
%
452
6.5
%
21.34

 
 
Total
 
 
 
393,803

98.5
%
$
6,918

100.0
%
$
17.84

 
 


____________________
1
Annualized Base Rent represents the monthly contractual rent for March 2017 for each applicable property, multiplied by 12.
2
Annualized Base Rent includes $793,117 from the Company and subsidiaries as of March 31, 2017, which is eliminated for purposes of our consolidated financial statement presentation.
3
The garage is managed by a third party.
4
The Company also owns the Eddy Street Commons retail shopping center in South Bend, Indiana, along with a parking garage that serves a hotel and the office and retail components of the property.





















p. 35
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

COMPONENTS OF NET ASSET VALUE
pressrellogo08.jpg



As of March 31, 2017

($ in thousands)


 
 
 
 
 
 
 
Cash Net Operating Income (NOI)
 
Supplemental Page No.:
 
Other Assets
 
Supplemental Page No.:
GAAP property NOI (incl. Ground Lease Revenue)
$
66,829

13
 
Cash and cash equivalents
$
22,641

7
Below-market lease intangibles, net
(850
)
10
 
Tenant and other receivables (net of SLR)
23,366

7
Straight-line rent
(1,321
)
10
 
Restricted cash and escrow deposits
9,609

7
Other property related revenue
(1,858
)
13
 
Prepaid and other assets2
10,316

7
Ground lease ("GL") revenue
(4,812
)
13, footnote 5
 
Undeveloped land in operating portfolio
15,100

10, footnote 3
Consolidated Cash Property NOI (excl. GL)
$
57,988

 
 
Land held for development
31,981

10
Annualized Consolidated Cash Property NOI (excl. ground leases)
$
231,952

 
 
CIP not in under construction development/redevelopment3
50,876

26
 
 
 
 
Total Other Asset Value
$
163,889

 
Adjustments To Normalize Annualized Cash NOI
 
 
 
 
 
 
Total projected remaining development / transitional redevelopment cash NOI 5
8,739

26
 
Liabilities
 
 
Unconsolidated EBITDA
137

11
 
Mortgage and other indebtedness
$
(1,726,873
)
7
 
 
 
 
Accounts payable and accrued expenses
(88,847
)
7
Pro forma adjustments


 
Other liabilities4
(17,026
)
7, 10
General and administrative expense allocable to property management activities included in property expenses ($1,300 in Q1)
5,200

13, footnote 3
 
Debt premium and issuance costs, net
(910
)
11
Total Adjustments
14,076

 
 
Non-controlling redeemable joint venture interest
(32,725
)
14
 
 
 
 
Projected remaining under construction development/redevelopment6
(35,059
)
26, 27
Annualized Normalized Portfolio Cash NOI (excl. Ground Leases)
$
246,028

 
 
Total Liabilities
$
(1,901,440
)
 
Annualized Ground Lease NOI
19,248

 
 
 
 
 
Total Annualized Portfolio Cash NOI
$
265,276

 
 
Common shares and units outstanding
85,560,080

11
 
 
 
 
 
 
 

____________________
1
Excludes Crossing at Killingly Commons and Territory Portfolio as they're included in non-controlling redeemable joint venture interest in liabilities.
2
Excludes the Company's $2.5 million investment in an unconsolidated joint venture.
3
Includes CIP amounts for Deerwood Lakes, Holly Springs Town Center - Phase III and miscellaneous tenant improvements and small projects.
4
Deferred revenue and other liabilities of $110 million less mark-to-market lease liability of $93 million.
5
Excludes the projected cash NOI and related cost from the 3-R opportunities outlined on page 28.
6
Assumes mid-point of projected cost range ($64.3 million) for 3-R projects under construction.




p. 36
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17

EARNINGS GUIDANCE - 2017
image42.jpg



 
 
2017
Guidance1
FFO per diluted share, as defined by NAREIT
$2.00 - $2.06
 
 
Key Assumptions
 
Disposition of operating properties
$45 million - $55 million
Same property NOI growth (excluding redevelopments)
2.0% - 3.0%
Percent leased at year-end - Retail Portfolio
95.0% - 96.0%
General and administrative expenses
$20 million - $22 million
GAAP interest expense
$66 million - $68 million
Gain on sale of non-depreciable assets included in other property related revenue
$1 million - $3 million
Non-cash below market lease amortization
$2.5 million - $3.5 million

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



p. 37
Kite Realty Group Trust Supplemental Financial and Operating Statistics –3/31/17