Kite Realty Group Trust · NYSE:KRG

Kite Realty Group Trust — Conference Presentation (February 2016)

20 slides from Kite Realty Group Trust's conference presentation, Feb 23, 2016

  1. Slide 1: Investor Update February 2016

    INVESTOR UPDATE February 2016 Chapel Hill (Dallas, TX) Livingston Center (Livingston, NJ)

  2. Slide 2: Company Snapshot: Kite Realty Group Trust

    © 2016 Kite Realty Group kiterealty.com Investor Update | 2 COMPANY SNAPSHOT KITE REALTY GROUP TRUST Note: All data as of 12/31/15 unless otherwise noted. 1. Source: Bloomberg, as of 02/16/16. Dividend yield calculated as “Indicated Yield” per Bloomberg definition. 2. ABR excludes ground lease reven

  3. Slide 3: Unlocking the Value in 2016 and Beyond

    © 2016 Kite Realty Group kiterealty.com Investor Update | 3 UNLOCKING THE VALUE IN 2016 AND BEYOND KITE’S CORPORATE STRATEGY FOCUSES ON THE “CORE” OF THE BUSINESS C ULTURE & PASSION O PERATIONAL EXCELLENCE R ESILIENT BALANCE SHEET E XECUTION KITE’S 3-YEAR ROADMAP OUTLINES THE STRATEGY TO UNLOCK THE

  4. Slide 4: Kite's 3-Year CORE Roadmap to Unlock Value

    © 2016 Kite Realty Group kiterealty.com Investor Update | 4 KITE’S 3-YEAR CORE ROADMAP TO UNLOCK VALUE FFO, as Adjusted AFFO Net Debt + Preferred / EBITDA Floating Rate Debt Shops Leased Dividend 2017 2018YE Goal 2015YE 2016 $1.99 6.98x 12% 87.6% $1.79 12% – 16% Growth 15% – 20% Growth ~5% Dividend

  5. Slide 5: Culture & Passion

    CULTURE & PASSION

  6. Slide 6: Culture & Passion

    © 2016 Kite Realty Group kiterealty.com Investor Update | 6  MANAGEMENT TEAM CONSISTENCY FOR ~12+ YEARS  INDUSTRY-LEADING SYSTEMS  CUSTOMER-FOCUSED MENTALITY  TOP-TIER OPERATING EFFICIENCY METRICS CULTURE & PASSION UNLOCK THE VALUE ROADMAP GOALS:  MAINTAIN TENANT RETENTION OF >85%  TOP-TIER IN

  7. Slide 7: Top-Tier Operating Efficiency

    © 2016 Kite Realty Group kiterealty.com Investor Update | 7 TOP-TIER OPERATING EFFICIENCY 4.8% 4.8% 5.4% 6.6% 6.8% 7.6% 7.8% 8.4% 8.5% 8.9% 9.9% FRT WRI KRG ROIC DDR RPT BRX RPAI KIM EQY REG G&A / Revenues (%) 75.1% 75.0% 73.8% 73.5% 73.1% 71.9% 71.3% 70.6% 70.1% 69.8% 68.4% BRX ROIC KRG EQY REG KIM

  8. Slide 8: Culture & Passion: Tenant Focused

    © 2016 Kite Realty Group kiterealty.com Investor Update | 8 CULTURE & PASSION: TENANT FOCUSED Top Tenants By ABR # Stores % ABR 1 Publix 18 3.4% 2 TJ Maxx 21 2.6% 3 PetSmart 18 2.2% 4 Bed Bath & Beyond 18 2.2% 5 Ross Dress For Less 17 2.1% 6 Lowe’s 5 2.1% 7 Office Depot / Max 18 2.0% 8 Dick’s Sporti

  9. Slide 9: Operational Excellence

    OPERATIONAL EXCELLENCE

  10. Slide 10: Operational Excellence

    © 2016 Kite Realty Group kiterealty.com Investor Update | 10  TOP-TIER FINANCIAL RESULTS  STRONG LEASE SPREADS  HIGH-QUALITY MANAGED PORTFOLIO OPERATIONAL EXCELLENCE 2010 2015 ABR Per SF UNLOCK THE VALUE ROADMAP GOALS:  FFO GROWTH OF 12-16%  AFFO GROWTH OF 15-20%  SMALL SHOPS LEASED TO 90% $12

  11. Slide 11: Historical NOI Growth Outperforms Sector

    © 2016 Kite Realty Group kiterealty.com Investor Update | 11 HISTORICAL NOI GROWTH OUTPERFORMS SECTOR 4.4% 4.9% 4.9% 4.7% 4.4% 4.7% 4.8% 4.4% 3.7% 3.1% 3.4% Q2'13 Q4'13 Q2'14 Q4'14 Q2'15 Q4'15 Same-Property NOI Growth (%) KRG Historical avg. 4.3% Peer avg.⁽¹⁾ ~3.2% 1. Peers include AKR, BRX, CDR, DD

  12. Slide 12: Asset Quality Supported by Top Sub-Markets

    © 2016 Kite Realty Group kiterealty.com Investor Update | 12 ASSET QUALITY SUPPORTED BY TOP SUB-MARKETS ASSETS ACROSS THE TOP 5 MARKETS SUPERIORLY POSITIONED $46K $48K $54K $50K $47K $54K $68K $66K $61K $66K Florida Indiana Texas Nevada North Carolina State Median KRG Portfolio Median Household Inco

  13. Slide 13: Resilient Balance Sheet

    RESILIENT BALANCE SHEET

  14. Slide 14: Resilient Balance Sheet

    © 2016 Kite Realty Group kiterealty.com Investor Update | 14  INVESTMENT GRADE RATED: Baa3 / BBB-  WELL-STAGGERED MATURITIES  AMPLE LIQUIDITY; FREE CASH FLOW OF $50MM RESILIENT BALANCE SHEET UNLOCK THE VALUE ROADMAP GOALS:  REDUCE LEVERAGE TO 6.0x-6.25x  MAINTAIN / IMPROVE RATINGS PROFILE  MAI

  15. Slide 15: Well-Staggered Debt Maturity Profile

    © 2016 Kite Realty Group kiterealty.com Investor Update | 15 2016 2017 2018 2019 2020 2021 2022 2023 2024+ $163 $17 $64 $20 $446 $172 $359 $310 $167 Secured Debt Unsecured Debt Revolver Construction Loan $100mm new unsecured term loan debt due 2022 will be funded in 2016 Existing 2016 secured debt t

  16. Slide 16: Execution

    EXECUTION

  17. Slide 17: Execution

    © 2016 Kite Realty Group kiterealty.com Investor Update | 17  SEAMLESS INTEGRATION OF MERGER ASSETS  SWIFT DISPOSITION PLAN FOR NON-CORE ASSETS  3-R INITIATIVE IMPLEMENTED EXECUTION ABR PER SF AVG. HOUSEHOLD INCOME POPULATION UNLOCK THE VALUE ROADMAP GOALS:  MAINTAIN ≥ $100mm 3-R PROJECTS  CONT

  18. Slide 18: The 3-R Initiative Drives NAV and FFO Growth

    © 2016 Kite Realty Group kiterealty.com Investor Update | 18 THE 3-R INITIATIVE DRIVES NAV AND FFO GROWTH THE 3 RS: REDEVELOPMENT, REPOSITION, REPURPOSE The $130-145mm in redevelopment estimated to commence over the next 18 months can be broken down into the 3 categories: redevelopment, repositionin

  19. Slide 19: 3-Year Roadmap to Grow FFO, as Adjusted, by 12-16%

    © 2016 Kite Realty Group kiterealty.com Investor Update | 19 2015 3-Year Roadmap Rent Bumps + Other Income 90% Shops Leased Development Completion / Stabilization 3-R Initiative Dispositions G&A Interest Expense $1.99 FFO, as adjusted, target growth of 12-16% by YE 2018 3-YEAR ROADMAP TO GROW FFO, A

  20. Slide 20: | This presentation, together with other statements and information publicly disseminated by us, contains

    © 2016 Kite Realty Group kiterealty.com Investor Update | 20 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 E

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