Kite Realty Group Trust · NYSE:KRG

Kite Realty Group Trust — Investor Presentation (June 2015)

28 slides from Kite Realty Group Trust's investor presentation, Jun 8, 2015

  1. Slide 1: Investor Update June 2015

    INVESTOR UPDATE June 2015 Delray Marketplace (Delray, FL) Beechwood Promenade (Athens, GA) City Center (White Plains, NY)

  2. Slide 2: Company Snapshot

    © 2015 Kite Realty Group kiterealty.com Investor Update | 2 COMPANY SNAPSHOT KITE REALTY GROUP TRUST FL, 26% IN, 16% TX, 12% NV, 9% TRI-ST, 7% NC, 6% OK, 4% GA, 4% VA, 3% UT, 3% TN, 2% SC, 2% AL, 2% Other, 4% Note: All data as of 03/31/15 unless otherwise noted. 1. ABR excludes ground lease revenue

  3. Slide 3: What Differentiates Kite?

    © 2015 Kite Realty Group kiterealty.com Investor Update | 3 Long-standing management team & strong corporate governance 13% dividend growth over the last 12 months Robust platform results in top tier operational efficiencies Simple corporate structure allows for nimble execution Diverse, high-q

  4. Slide 4: Proven Track Record

    © 2015 Kite Realty Group kiterealty.com Investor Update | 4 PROVEN TRACK RECORD 1. Source; Bloomberg; as of 03/31/15. Peers include BRX, DDR, EQY, EXL, FRT, KIM, REG, ROIC, RPAI, RPT and WRI. 3.4% 3.6% 3.6% 3.7% Peer Median Q1'13 2014 YE Q1'15  LONG-STANDING MANAGEMENT TEAM, AVERAGING OVER 25 YEARS

  5. Slide 5: Achieving Peak Operating Performance

    © 2015 Kite Realty Group kiterealty.com Investor Update | 5 ACHIEVING PEAK OPERATING PERFORMANCE Updated and integrated top tier operating systems Lean corporate structure that is simple and nimble In-house tax effort focused on maximizing efficiencies Direct-to-tenant waste removal platform E

  6. Slide 6: Top Tier Operating Efficiency

    © 2015 Kite Realty Group kiterealty.com Investor Update | 6 TOP TIER OPERATING EFFICIENCY 4.8% 5.3% 5.8% 5.9% 6.9% 7.2% 7.9% 8.4% 9.1% 9.7% 9.7% FRT WRI KRG ROIC DDR RPAI RPT EQY KIM REG BRX G&A / Revenues (%) 74.2% 74.0% 73.8% 73.3% 72.3% 71.4% 71.1% 70.4% 69.8% 69.2% 66.2% ROIC BRX KRG EQY REG KI

  7. Slide 7: Simple Corporate Structure

    © 2015 Kite Realty Group kiterealty.com Investor Update | 7 SIMPLE CORPORATE STRUCTURE 0.0% 0.2% 0.5% 11.0% 16.0% 16.8% 17.1% 27.8% 41.6% 44.7% 45.8% ROIC BRX RPAI KRG RPT FRT EQY WRI REG KIM DDR Joint Venture Properties / Total Properties Simple structure versus peer group <1% of EBITDA attributab

  8. Slide 8: Portfolio Overview

    PORTFOLIO OVERVIEW KITE

  9. Slide 9: Over 70% of ABR from Top MSAs

    © 2015 Kite Realty Group kiterealty.com Investor Update | 9 OVER 70% OF ABR FROM TOP 50 MSAs 45% of FL’s ABR from Top 50 MSA 64% of the SE’s ABR from Top 50 MSA 73% of the NE’s ABR from Top 50 MSA 77% of the Midwest’s ABR from Top 50 MSA 90% of TX/OK’s ABR from Top 50 MSA 94% of the West’s ABR from

  10. Slide 10: Portfolio Overview

    © 2015 Kite Realty Group kiterealty.com Investor Update | 10 Grocery Anchored, 14% Hybrid (Power W/ Grocery), 52% Power / Regional Center, 32% Other, 2% PORTFOLIO OVERVIEW ABR INCREASED TO $15.20 AND MORE THAN 66% OF ASSETS INCLUDE A GROCERY COMPONENT 1. As of 03/31/15. 2. Other includes office, un

  11. Slide 11: Top Tier Grocers Anchor Our Portfolio

    © 2015 Kite Realty Group kiterealty.com Investor Update | 11 Other 17% Target 22% Walmart / Sam's Club 21% Publix 14% Shop Rite 5% Fresh Market 5% Sprouts 4% Kroger 4% Marsh 3% Whole Foods 3% Earth Fare 2% TOP TIER GROCERS ANCHOR OUR PORTFOLIO 1. As of 03/31/15 per the Company financials. Grocery B

  12. Slide 12: Good Real Estate Wins

    © 2015 Kite Realty Group kiterealty.com Investor Update | 12 GOOD REAL ESTATE WINS  Tenants’ transient nature has limited impact given our best in class real estate  Only 2 tenants remain in our top 10 since our IPO in 2004 (Lowes and Publix) HIGH QUALITY & DIVERSE TENANT BASE  No single tenant o

  13. Slide 13: Key Submarkets Drive Future Growth

    © 2015 Kite Realty Group kiterealty.com Investor Update | 13 KEY SUBMARKETS DRIVE FUTURE GROWTH PORTFOLIO QUALITY SUPPORTED BY STRONGEST SUBMARKETS WITHIN TOP 5 STATES Kite’s centers well positioned for growth due to demographic profile and affluent consumer base across the portfolio’s largest 5 ma

  14. Slide 14: Diverse Development Capabilities

    © 2015 Kite Realty Group kiterealty.com Investor Update | 14 DIVERSE DEVELOPMENT CAPABILITIES Incremental Return Via Mixed-Use Opportunities Eddy Street Commons (South Bend, IN) Development Background & Expertise Parkside Town Commons (Cary, NC) Lifestyle Center on Notre Dame campus containing offi

  15. Slide 15: Maximizing Incremental Return

    © 2015 Kite Realty Group kiterealty.com Investor Update | 15 MAXIMIZING INCREMENTAL RETURN RISK MITIGATING FACTORS FACILITATE MIXED-USE RETURNS  Ability to develop profitable real estate despite challenging environments and rising land costs  Maintained control and upside potential while developi

  16. Slide 16: Consistent Operators of Quality Assets

    © 2015 Kite Realty Group kiterealty.com Investor Update | 16 CONSISTENT OPERATORS OF QUALITY ASSETS Same-Property NOI Growth > 4% For Over 2 Years 5.2 4.4 4.9 4.9 4.7 4.4 4.7 4.8 4.4 2.0 3.0 4.0 5.0 6.0 Same-Property NOI Growth (%) Growing ABR Through High Quality Assets $12.80 $13.26 $12.95 $13.18

  17. Slide 17: Future Growth Initiatives

    FUTURE GROWTH INITIATIVES KITE

  18. Slide 18: Portfolio NOI Growth Composition

    © 2015 Kite Realty Group kiterealty.com Investor Update | 18 PORTFOLIO NOI GROWTH COMPOSITION  Revised 2015 guidance increased acquisition opportunities from $80mm to $125mm  Additional investments will grow NOI further  Contractual rent bumps to add ~1.25% of NOI growth annually (2015-2016)  T

  19. Slide 19: The R's: Redevelopment, Reposition, Repurpose

    © 2015 Kite Realty Group kiterealty.com Investor Update | 19 REDEVELOPMENT COMPOSITION BY TYPE THE 3 R’S: REDEVELOPMENT, REPOSITION, REPURPOSE The $100mm in redevelopment estimated over the next 18-24 months can be broken down into the 3 categories: redevelopment, repositioning and repurposing Rede

  20. Slide 20: Acquisition Case Study: Colleyville Downs

    © 2015 Kite Realty Group kiterealty.com Investor Update | 20 ACQUISITION CASE STUDY: COLLEYVILLE DOWNS  Overview: Large shopping center located in the MSA of Dallas, TX; specifically, in Colleyville, an affluent suburb between Dallas and Ft. Worth Texas  GLA: 201,000 SF  Leased: 92% leased at tim

  21. Slide 21: Balance Sheet

    BALANCE SHEET KITE

  22. Slide 22: Strong Balance Sheet & Capital Allocation

    © 2015 Kite Realty Group kiterealty.com Investor Update | 22 STRONG BALANCE SHEET & CAPITAL ALLOCATION 9.1x 9.7x 8.6x 7.4x 6.5x 6.2x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 2010 2011 2012 2013 2014 Current Net Debt / EBITDA Multiple Balance Sheet Metrics Fixed Charge: ~3.0x Avg. Maturity: ~5 years Current Ba

  23. Slide 23: Well-Staggered Debt Maturity Profile

    © 2015 Kite Realty Group kiterealty.com Investor Update | 23 WELL-STAGGERED DEBT MATURITY PROFILE $500 $74 $261 $50 $71 $276 $178 $249 $164 $12 0 100 200 300 400 500 Revolver 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026+ Mortgage Debt Corporate Debt Construction Debt Capacity Drawn ($

  24. Slide 24: Industry Update

    INDUSTRY UPDATE KITE

  25. Slide 25: Record Impact at 2015 ICSC Conference

    © 2015 Kite Realty Group kiterealty.com Investor Update | 25 RECORD IMPACT AT 2015 ICSC CONFERENCE  More than 240 total meetings with key retailers  Increased scale resulted in 40% more retailer meetings and 5x the number of portfolio discussions  Over 75% of the presentations included more than

  26. Slide 26: Real Estate Returns to Remain Attractive

    © 2015 Kite Realty Group kiterealty.com Investor Update | 26 REAL ESTATE RETURNS TO REMAIN ATTRACTIVE REAL ESTATE RETURNS ABLE TO WITHSTAND A POTENTIAL RISE IN RATES The spread between strip REIT implied cap rates and triple-B corporate bond yields remains elevated to the industry’s peak, providing

  27. Slide 27: Retailer Openings

    © 2015 Kite Realty Group kiterealty.com Investor Update | 27 RETAILER OPENINGS DESPITE MODEST IMPROVEMENT, SUPPLY / DEMAND DYNAMIC REMAINS Demand for retail continues to be attractive as retail supply remains 65% below 15-year average; industry data supports non-mall retail markets as evidenced by r

  28. Slide 28: Forward-Looking Statements

    © 2015 Kite Realty Group kiterealty.com Investor Update | 28 This presentation, 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 Ex

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