Kite Realty Group Reports First Quarter 2026 Operating Results

Low

High

Net income

$0.33

$0.39

Impairment charges

0.03

0.03

Depreciation and amortization

1.70

1.70

NAREIT FFO

$2.06

$2.12

Non-cash items

0.00

0.00

Core FFO

$2.06

$2.12

Kite Realty Group
Consolidated Balance Sheets
(dollars in thousands)
(unaudited)

March 31,
2026

December 31,
2025

Assets:

Investment properties, at cost

$

7,029,261

$

7,003,479

Less: accumulated depreciation

(1,717,404

)

(1,656,191

)

Net investment properties

5,311,857

5,347,288

Cash and cash equivalents

32,539

36,761

Tenant and other receivables, including accrued straight-line rent of $72,548 and $70,940, respectively

133,290

127,865

Restricted cash and escrow deposits

190,581

441,605

Deferred costs, net

172,805

181,553

Prepaid and other assets

98,560

93,913

Investments in unconsolidated joint ventures

356,555

364,407

Assets associated with investment properties held for sale

54,073

71,105

Total assets

$

6,350,260

$

6,664,497

Liabilities and Equity:

Liabilities:

Mortgage and other indebtedness, net

$

2,992,389

$

3,025,478

Accounts payable and accrued expenses

156,908

221,118

Deferred revenue and other liabilities

207,603

221,813

Liabilities associated with investment properties held for sale

3,754

4,314

Total liabilities

3,360,654

3,472,723

Commitments and contingencies

Limited Partners’ interests in the Operating Partnership

130,306

116,245

Equity:

Common shares, $0.01 par value, 490,000,000 shares authorized, 203,058,977 and 208,979,900 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

2,031

2,090

Additional paid-in capital

4,445,350

4,612,280

Accumulated other comprehensive income

21,352

23,079

Accumulated deficit

(1,611,337

)

(1,563,840

)

Total shareholders’ equity

2,857,396

3,073,609

Noncontrolling interests

1,904

1,920

Total equity

2,859,300

3,075,529

Total liabilities and equity

$

6,350,260

$

6,664,497

Kite Realty Group
Consolidated Statements of Operations
(dollars in thousands, except per share amounts)
(unaudited)

Three Months Ended March 31,

2026

2025

Revenue:

Rental income

$

198,042

$

219,172

Other property-related revenue

1,359

1,480

Fee income

1,296

425

Total revenue

200,697

221,077

Expenses:

Property operating

31,116

29,826

Real estate taxes

24,824

27,761

General, administrative and other

13,950

12,258

Depreciation and amortization

82,491

98,231

Impairment charges

5,888

—

Total expenses

158,269

168,076

Other (expense) income:

Interest expense

(31,696

)

(32,954

)

Income tax expense of taxable REIT subsidiaries

(395

)

(10

)

Gain on sales of operating properties, net

—

91

Net gains from outlot sales

1,039

—

Equity in loss of unconsolidated joint ventures

(2,216

)

(607

)

Other income, net

2,572

4,743

Net income

11,732

24,264

Net income attributable to noncontrolling interests

(338

)

(534

)

Net income attributable to common shareholders

$

11,394

$

23,730

Net income per common share – basic and diluted

$

0.06

$

0.11

Weighted average common shares outstanding – basic

205,686,342

219,715,674

Weighted average common shares outstanding – diluted

206,063,468

219,827,298

Kite Realty Group
NAREIT Funds From Operations (“FFO”)⁽¹⁾
(dollars in thousands, except per share amounts)
(unaudited)

Three Months Ended March 31,

2026

2025

Net income

$

11,732

$

24,264

Less: net income attributable to noncontrolling interests in properties

(70

)

(70

)

Less: gain on sales of operating properties, net

—

(91

)

Add: impairment charges

5,888

—

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

91,824

98,677

NAREIT FFO of the Operating Partnership⁽¹⁾

109,374

122,780

Less: Limited Partners’ interests in FFO

(2,623

)

(2,463

)

FFO attributable to common shareholders⁽¹⁾

$

106,751

$

120,317

FFO, as defined by NAREIT, per share of the Operating Partnership – basic

$

0.52

$

0.55

FFO, as defined by NAREIT, per share of the Operating Partnership – diluted

$

0.52

$

0.55

Weighted average common shares outstanding – basic

205,686,342

219,715,674

Weighted average common shares outstanding – diluted

205,775,355

219,827,298

Weighted average common shares and units outstanding – basic

210,742,420

224,214,867

Weighted average common shares and units outstanding – diluted

210,831,433

224,326,491

Reconciliation of NAREIT FFO to Core FFO⁽²⁾

NAREIT FFO of the Operating Partnership⁽¹⁾

$

109,374

$

122,780

Add:

Amortization of deferred financing costs

1,807

1,644

Non-cash compensation expense and other

3,215

2,660

Less:

Straight-line rent – minimum rent and common area maintenance

2,141

2,578

Market rent amortization income

2,089

3,542

Amortization of debt discounts, premiums and hedge instruments

1,029

2,756

Core FFO of the Operating Partnership

$

109,137

$

118,208

Core FFO per share of the Operating Partnership – diluted

$

0.52

$

0.53

<sup>(1) “NAREIT FFO of the Operating Partnership” measures 100% of the operating performance of the Operating Partnership’s real estate properties. “FFO attributable to common shareholders” reflects a reduction for the redeemable noncontrolling weighted average diluted interest in the Operating Partnership.
(2) Includes the Company’s pro rata share from unconsolidated joint ventures.

NAREIT Funds From Operations (“FFO”) is a widely used performance measure for real estate companies and is provided here as a supplemental measure of our operating performance. The Company calculates FFO, a non-GAAP financial measure, in accordance with the best practices described in the April 2002 National Policy Bulletin of the National Association of Real Estate Investment Trusts (“NAREIT”), as restated in 2018. The NAREIT white paper defines FFO as net income (calculated in accordance with GAAP), excluding (i) depreciation and amortization related to real estate, (ii) gains and losses from the sale of certain real estate assets, (iii) gains and losses from change in control, and (iv) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity.

Considering the nature of our business as a real estate owner and operator, the Company believes that FFO is helpful to investors in measuring our operational performance because it excludes various items included in net income that do not relate to or are not indicative of our operating performance, such as gains or losses from sales of depreciated property and depreciation and amortization, which can make periodic and peer analyses of operating performance more difficult. FFO (a) should not be considered as an alternative to net income (calculated in accordance with GAAP) for the purpose of measuring our financial performance, (b) is not an alternative to cash flows from operating activities (calculated in accordance with GAAP) as a measure of our liquidity, and (c) is not indicative of funds available to satisfy our cash needs, including our ability to make distributions. The Company’s computation of FFO may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do.

From time to time, the Company may report or provide guidance with respect to “FFO, as adjusted,” which removes the impact of certain non-recurring and non-operating transactions or other items the Company does not consider to be representative of its core operating results including, without limitation, (i) gains or losses associated with the early extinguishment of debt, (ii) gains or losses associated with litigation involving the Company that is not in the normal course of business, (iii) merger and acquisition costs, (iv) the impact on earnings from significant and non-recurring employee severance costs and recruiting expenses, including sign-on bonuses and search fees, (v) the excess of redemption value over carrying value of preferred stock redemption, and (vi) the impact of prior period bad debt or the collection of accounts receivable previously written off (“prior period collection impact”), which are not otherwise adjusted in the Company’s calculation of FFO.

Core Funds From Operations (“Core FFO”) is a non-GAAP financial measure of operating performance that modifies FFO for certain non-cash transactions that result in recording income or expense and impact the Company’s period-over-period performance, including (i) amortization of deferred financing costs, (ii) non-cash compensation expense and other, (iii) straight-line rent related to minimum rent and common area maintenance, (iv) market rent amortization income, and (v) amortization of debt discounts, premiums and hedge instruments, and include adjustments related to our pro rata share from unconsolidated joint ventures for these categories as applicable. The Company believes that Core FFO is useful to investors in evaluating the core cash flow-generating operations of the Company by adjusting for items that we do not consider to be part of our core business operations, allowing for comparison of core operating performance of the Company between periods. Core FFO should not be considered as an alternative to net income as an indicator of the Company’s performance or as an alternative to cash flow as a measure of liquidity or the Company’s ability to make distributions. The Company’s computation of Core FFO may differ from the methodology for calculating Core FFO used by other REITs, and therefore, may not be comparable to such other REITs.</sup>

Kite Realty Group
Same Property Net Operating Income (“NOI”)
(dollars in thousands)
(unaudited)

Three Months Ended March 31,

2026

2025

Change

Number of properties in Same Property Pool for the period⁽¹⁾

164

164

Leased percentage at period end

94.6

%

94.3

%

Economic occupancy percentage at period end

91.1

%

91.8

%

Economic occupancy percentage⁽²⁾

91.1

%

92.2

%

Minimum rent

$

144,188

$

140,903

Tenant recoveries

44,054

40,641

Bad debt reserve

(1,499

)

(1,887

)

Other income, net

2,458

2,140

Total revenue

189,201

181,797

Property operating

(28,105

)

(25,899

)

Real estate taxes

(24,098

)

(23,606

)

Total expenses

(52,203

)

(49,505

)

Same Property NOI⁽³⁾

$

136,998

$

132,292

3.6

%

Reconciliation of Same Property NOI to mostdirectly comparable GAAP measure:

Net operating income – same properties

$

136,998

$

132,292

Net operating income – sold properties

(215

)

20,470

Net operating income – non-same activity⁽⁴⁾

9,306

10,607

Less: KRG share of unconsolidated joint ventures included in Same Property NOI above

(2,628

)

(304

)

Net gains from outlot sales

1,039

—

Total property NOI

144,500

163,065

(11.4

%)

Other income, net

1,257

4,551

General, administrative and other

(13,950

)

(12,258

)

Impairment charges

(5,888

)

—

Depreciation and amortization

(82,491

)

(98,231

)

Interest expense

(31,696

)

(32,954

)

Gain on sales of operating properties, net

—

91

Net income attributable to noncontrolling interests

(338

)

(534

)

Net income attributable to common shareholders

$

11,394

$

23,730

<sup>(1) Same Property NOI excludes the following: (i) Village Commons and Legacy West, which were acquired in 2025; (ii) The Corner – IN, which was reclassified from active development into our operating portfolio in March 2025; (iii) Eastgate Crossing, which was reclassified from our operating portfolio in September 2025 due to significant disruption caused by severe flooding as a result of Tropical Storm Chantal; (iv) our active development project at One Loudoun Expansion; (v) Hamilton Crossing Centre and Edwards Multiplex – Ontario, which were reclassified from our operating portfolio into redevelopment in June 2014 and March 2023, respectively; (vi) properties sold or classified as held for sale during 2025 and 2026; and (vii) standalone office properties, including the Carillon medical office building.
(2) Excludes leases that are signed but for which tenants have not yet commenced the payment of cash rent. Calculated as a weighted average based on the timing of cash rent commencement and expiration during the period.
(3) Same Property NOI for all periods presented includes 52% of the NOI from three previously wholly owned properties that were contributed to the Seed Asset Joint Venture in June 2025 and excludes the results of the Company’s insurance captive.
(4) Includes non-cash activity as well as NOI from properties not included in the Same Property Pool.

The Company uses NOI, a non-GAAP financial measure, to evaluate the performance of our properties. The Company also uses total property NOI, which is defined as NOI plus net gains from outlot sales. The Company defines NOI as income from our real estate, including lease termination fees received from tenants, less our property operating expenses. NOI excludes amortization of capitalized tenant improvement costs and leasing commissions and certain corporate-level expenses, including merger and acquisition costs. The Company believes that NOI is helpful to investors as a measure of our operating performance because it excludes various items included in net income that do not relate to or are not indicative of our operating performance, such as depreciation and amortization, interest expense, and impairment, if any.

The Company also uses same property NOI (“Same Property NOI”), a non-GAAP financial measure, to evaluate the performance of our properties. Same Property NOI is net income excluding properties that have not been owned for the full periods presented. Beginning in 2026, the Company revised its Same Property NOI definition to exclude the results of the Company’s insurance captive to more clearly reflect the performance of our core real estate portfolio. Same Property NOI also excludes (i) net gains from outlot sales, (ii) straight-line rent revenue, (iii) lease termination income in excess of lost rent, (iv) amortization of lease intangibles, (v) significant prior period expense recoveries and adjustments, if any, and (vi) income or expense associated with the Company’s captive insurance company. When the Company receives payments in excess of any accounts receivable for terminating a lease, Same Property NOI will include such excess payments as monthly rent until the earlier of the expiration of 12 months or the start date of a replacement tenant.

The Company believes that Same Property NOI is helpful to investors as a measure of our operating performance because it includes only the NOI of properties that have been owned for the full periods presented. The Company believes such presentation eliminates disparities in net income due to the acquisition or disposition of properties during the particular periods presented and thus provides a more consistent metric for the comparison of our properties. Additionally, because results from the Company’s insurance captive are driven by insurance underwriting, loss experience, and actuarial assumptions and therefore do not reflect the operating performance of our real estate properties, management believes excluding the impacts of the insurance captive improves transparency and comparability for the Company’s investors. Same Property NOI includes the results of properties that have been owned for the entire current and prior year reporting periods. Same Property NOI for all periods presented includes 52% of the NOI from three previously wholly owned properties that were contributed to the Seed Asset Joint Venture in June 2025 and excludes the results of the Company’s insurance captive.

NOI and Same Property NOI should not, however, be considered as an alternative to net income (calculated in accordance with GAAP) as an indicator of our financial performance. The Company’s 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, we have established specific criteria for determining the inclusion of properties acquired or those recently under development. An acquired property is included in the Same Property Pool when there is a full quarter of operations in both years subsequent to the acquisition date. Development and redevelopment properties are included in the Same Property Pool four full quarters after the properties have been transferred to the operating portfolio. A redevelopment property is first excluded from the Same Property Pool when the execution of a redevelopment plan is likely, and we (a) begin recapturing space from tenants or (b) the contemplated plan significantly impacts the operations of the property. For the three months ended March 31, 2026, the Same Property Pool excludes the following: (i) Village Commons and Legacy West, which were acquired in 2025; (ii) The Corner – IN, which was reclassified from active development into our operating portfolio in March 2025; (iii) Eastgate Crossing, which was reclassified from our operating portfolio in September 2025 due to significant disruption caused by severe flooding as a result of Tropical Storm Chantal; (iv) our active development project at One Loudoun Expansion; (v) Hamilton Crossing Centre and Edwards Multiplex – Ontario, which were reclassified from our operating portfolio into redevelopment in June 2014 and March 2023, respectively; (vi) properties sold or classified as held for sale during 2025 and 2026; and (vii) standalone office properties, including the Carillon medical office building.</sup>

Kite Realty Group
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)
(dollars in thousands)
(unaudited)

Three Months Ended
March 31, 2026

Net income

$

11,732

Depreciation and amortization

82,491

Interest expense

31,696

Income tax expense of taxable REIT subsidiaries

395

EBITDA

126,314

Unconsolidated EBITDA, as adjusted

9,978

Impairment charges

5,888

Other income and expense, net

(356

)

Noncontrolling interests

(197

)

Adjusted EBITDA

$

141,627

Annualized Adjusted EBITDA⁽¹⁾

$

566,508

Company share of Net Debt:

Mortgage and other indebtedness, net

$

2,992,389

Add: Company share of unconsolidated joint venture debt

203,315

Add: debt discounts, premiums and issuance costs, net

2,216

Less: Partner share of consolidated joint venture debt⁽²⁾

(9,741

)

Company’s consolidated debt and share of unconsolidated debt

3,188,179

Less: cash and cash equivalents

(32,539

)

Less: restricted cash and escrow deposits

(190,581

)

Less: Company share of unconsolidated joint venture cash and cash equivalents

(13,816

)

Company share of Net Debt

$

2,951,243

Net Debt to Adjusted EBITDA

5.2

x

<sup>(1) Represents Adjusted EBITDA for the three months ended March 31, 2026 (as shown in the table above) multiplied by four.
(2) Partner share of consolidated joint venture debt is calculated based upon the partner’s pro rata ownership of the joint venture, multiplied by the related secured debt balance.

The Company defines EBITDA, a non-GAAP financial measure, as net income before interest expense, income tax expense of the taxable REIT subsidiaries, and depreciation and amortization. For informational purposes, the Company also provides Adjusted EBITDA, which it defines as EBITDA less (i) EBITDA from unconsolidated entities, as adjusted, (ii) gains on sales of operating properties or impairment charges, (iii) merger and acquisition costs, (iv) other income and expense, (v) noncontrolling interest Adjusted EBITDA, and (vi) other non-recurring activity or items impacting comparability from period to period. Annualized Adjusted EBITDA is Adjusted EBITDA for the most recent quarter multiplied by four. Net Debt to Adjusted EBITDA is the Company’s share of net debt divided by Annualized Adjusted EBITDA. EBITDA, Adjusted EBITDA, Annualized Adjusted EBITDA and Net Debt to Adjusted EBITDA, as calculated by the Company, 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 also provides Annualized Adjusted EBITDA, adjusted as described above. The Company believes this supplemental information provides a meaningful measure of its 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 the Company’s operating results.</sup>