Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Investor Presentation (August 2009)
18 slides from Kite Realty Group Trust's investor presentation, Aug 31, 2009
Slide 1: Kite Realty Group Trust Investor Presentation
EXHIBIT 99.1 Kite Realty Group Trust Investor Presentation Information as of June, 30 2009
Slide 2: Company Overview
COMPANY OVERVIEW Information as of June 30, 2009 55 Operating Properties in 9 states 91.1% leased Stable Operating Portfolio Diverse tenant base Strong demographics 265,000 square feet of productivity in 2Q 2009 Second highest quarterly production since IPO Increased Leasing Productivity Strengthene
Slide 3: Diverse Tenant Base
DIVERSE TENANT BASE Information as of June 30, 2009 Largest single retail tenant comprises only 3.3% of total annualized base rent Top 10 retail tenants account for only 21.8% of total annualized base rent Top 10 Retail Tenants Number % of % of Portfolio Of Owned Annualized S&P (1) (2) Tenant Locati
Slide 4: Diverse Tenant Base: Peer Group Assessment
DIVERSE TENANT BASE Information as of June 30, 2009 Peer Group Assessment: Top Tenant as a Percent of Annualized Base Rent Bed Bath Home Wal-Mart/ Giant Kroger Beyond Depot Publix TJ Maxx Sam’s Kroger Supervalu A&P Publix Foods Source: Company filings. 3
Slide 5: Strong Demographics
STRONG DEMOGRAPHICS High quality assets with an average age of only eight years Approximately half of the current portfolio was developed by KRG Portfolio benefits from 100% non-owned anchor occupancy Strong household incomes surrounding operating portfolio and development pipelines Portfolio Demogr
Slide 6: Well-Staggered Lease Expirations
WELL-STAGGERED LEASE EXPIRATIONS Information as of June 30, 2009 No more than 10.9% of total annualized rent is expected to rollover in any one year Higher 2011-2014 rollover defers renewal negotiations to a potentially stronger leasing environment Percentage of Lease Expiration by Total Annualized
Slide 7: Proven Access to Capital
PROVEN ACCESS TO CAPITAL $88 million - May 2009 offering net proceeds Equity Capital Markets $48 million - October 2008 offering net proceeds Unsecured Term Loan $55 million – August 2008 unsecured 3 year term loan Only $78 million outstanding as of June 30, 2009 Line of Credit 2012 maturity date in
Slide 8: Managing Leverage
MANAGING LEVERAGE Peer Group Assessment: Debt Plus Preferred as a Percent of Gross Assets (1) Source: KeyBanc Capital Markets Leaderboard, 8/21/09. 7
Slide 9: Managing Leverage: Scheduled Debt Maturities
MANAGING LEVERAGE Scheduled Debt Maturities Extended or refinanced over $200 million in maturing debt since Q3 2008 Only $32 million of CMBS debt maturing through 2011 $16 million average loan balance maturing 2009 – 2010 Approximately 86% of debt maturities through 2012 are held on balance sheet by
Slide 10: Reducing Development: Current Development Pipeline
REDUCING DEVELOPMENT Information as of June 30, 2009 Current Development Pipeline Only 2 projects in the Current Development Pipeline Eddy Street Commons at Notre Dame 70% pre-leased or committed 54% of projected costs incurred Initial tenant rent commencement is anticipated for September 2009 Cobbl
Slide 11: Reducing Development: Shadow Pipeline
REDUCING DEVELOPMENT Information as of June 30, 2009 Shadow Pipeline Reduced the estimated costs of the Shadow Pipeline by over $100 million Capital Summary (Dollars in thousands) KRG Share of Projected Total Costs as of 12/31/08: $293,800 KRG Share of Projected Total Costs as of 6/30/09: $185,300 E
Slide 12: Reducing Development
REDUCING DEVELOPMENT Ongoing effort to reduce the size of our development pipeline. Total Development Pipeline as a Percent of Gross Real Estate Assets (1,2) (1) (2) Development Pipeline includes Current Developments, Redevelopments and Shadow Pipeline with the Company’s share of Parkside Town Commo
Slide 13: Peer Group Analysis: FFO Multiple
PEER GROUP ANALYSIS Peer Group Assessment: FFO Multiple Price Consensus 1 Company 8/27/2009 Estimate Multiple Assuming a peer group average Federal Realty $61.83 $3.45 17.9x multiple of 10.8x, our stock is Acadia Realty Trust $15.41 $1.14 13.5x trading at a 41% discount Regency Centers Corp $33.21 $
Slide 14: Peer Group Analysis: 2009 AFFO Payout Ratio
PEER GROUP ANALYSIS Peer Group Assessment: 2009 AFFO PAYOUT RATIO (1) Source: KeyBanc Capital Markets Leaderboard, 8/21/09. 13
Slide 15: Peer Group Analysis: Current Dividend Yield
PEER GROUP ANALYSIS Peer Group Assessment: Current Dividend Yield Current AFFO Price Annual Payout 1 2 Company 8/27/2009 Dividend Yield Ratio Developers Diversified $8.39 $0.80 9.5% n/a KRG’s current dividend is fully Ramco Gershenson $10.81 $0.93 8.6% 47.7% funded by free cash flow Equity One, Inc
Slide 16: Peer Group Analysis: Implied Cap Rate
PEER GROUP ANALYSIS Peer Group Analysis: Implied Cap Rate Using the peer group average implied cap rate of 8.1%, KRG is trading at a 48% discount KRG Share Price 8/27/09: $3.71 KRG Share Price using 8.1% implied cap rate: $7.20 (1) Source: Citigroup Investment Research, August 27, 2009. 15
Slide 17: Growth Strategy
GROWTH STRATEGY Off Balance Sheet JV Capital Redeploy Land Sale Proceeds Lease-Up of Vacant Junior Boxes Complete Current Development and Redevelopment Pipelines Utilize Lender Relationships for First Look at Distressed Opportunities 16
Slide 18: Disclaimer
DISCLAIMER This presentation may include certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements containe
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