Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Investor Presentation (March 2018)
20 slides from Kite Realty Group Trust's investor presentation, Mar 2, 2018
Slide 1: Kite Realty Group Investor Update March 2018
KITE March 2018 INVESTOR UPDATE KRG 8885775600 _kiterealty.com EE NYSE
Slide 2: Portfolio Facts and Company Snapshot
2 March 2018 INVESTOR UPDATE PORTFOLIO FACTS Number of Properties 119 Total GLA (SF) 23.9mm Total Retail Operating Portfolio Leased 94.8% Percent Leased Anchors 96.7% Percent Leased Shops 90.5% Annualized Base Rent (ABR) Per SF, Including 3-R Properties1 $16.32 Average Center Size (SF) ~200,000 Divi
Slide 3: Core Strategy: Gearing Up Shareholder Value the Kite Way
3 March 2018 INVESTOR UPDATE $82mm limited debt maturities through 2020 8% floating rate debt exposure 3.5x debt service coverage Focused on free cash flow growth 76% of ABR derived from top 50 MSAs and destination locations1 93% of tenants are internet resistant / multi-channel 80% of ABR derived f
Slide 4: Strategic Dispositions
4 March 2018 INVESTOR UPDATE STRATEGIC DISPOSITIONS Capital Recycling Efforts Strengthen Portfolio Note: Demographic data source: STI: Popstats based on estimated 2017 data on a 5-mile radius from the US Census Bureau. Dispositions during this period were Publix at St. Cloud, Cove Center, Clay Marke
Slide 5: Geographic Diversity: Focus on Portfolio Optimization
5 March 2018 INVESTOR UPDATE Note: Demographic data source: STI: Popstats based on estimated 2017 data on a 5-mile radius from the US Census Bureau. (1) Projected Annual Population Growth 2017-2022. GEOGRAPHIC DIVERSITY Focus on Portfolio Optimization LAS VEGAS AVERAGE HOUSEHOLD INCOME: $74,400 PROJ
Slide 6: Top MSA Case Study: Dallas / Fort Worth / Houston
6 March 2018 INVESTOR UPDATE TOP MSA CASE STUDY Dallas / Fort Worth / Houston PROJECTED ANNUAL POPULATION GROWTH 2017-2022 7.6%• The Dallas MSA has been one of the nation’s leaders in economic growth over the past 24 months. The region boasts 18 Fortune 500 companies and has averaged 1.1% employment
Slide 7: Top MSA Case Study: Indianapolis / Northern Suburbs
7 March 2018 INVESTOR UPDATE TOP MSA CASE STUDY Indianapolis / Northern Suburbs • Hamilton County, the state’s fastest growing and most affluent metropolitan area, is frequently recognized for its exceptional standard of living. The county has distinguished itself through its considerable investment
Slide 8: Top MSA Case Study: Raleigh / Cary / Charlotte
8 March 2018 INVESTOR UPDATE TOP MSA CASE STUDY Raleigh / Cary / Charlotte • Raleigh is ranked #4 on the Realtor.com list of “Next Top Tech Cities” and #3 on USA Today’s list of “Best Cities for Job Seekers” in 2017. Both lists analyzed a number of critical factors, including job market favor- abili
Slide 9: Strategic Asset Mix: Well-Balanced Portfolio
9 March 2018 INVESTOR UPDATE (1) STI: Popstats based on 2017 data on a 5-mile radius from the U.S. Census Bureau. Property classification based on definition by the International Council of Shopping Centers (ICSC). In summary: Neighborhood Center: Convenience-oriented center often anchored by a groc
Slide 10: Diverse Tenant Base: Strong Mix of High-Quality Tenants
10 March 2018 INVESTOR UPDATE Top 10 Tenants by ABR Credit Rating # Stores % ABR 1 The TJX Companies, Inc. A+ 22 2.5% 2 Publix Supermarkets, Inc. A 14 2.5% 3 Petsmart, Inc. B+ 19 2.2% 4 Bed Bath & Beyond, Inc. BBB+ 19 2.2% 5 Ross Stores, Inc. A- 18 2.1% 6 Lowe's Companies, Inc. A- 5 1.8% 7 Office De
Slide 11: Internet-Resistant Retail Base
11 March 2018 INVESTOR UPDATE INTERNET-RESISTANT 54.0% Services, Entertainment 22.4% Restaurants 16.5% Grocer, Specialty Stores 15.1% MULTI-CHANNEL 39.1% Soft Goods 13.7% Home Improvement Goods 11.7% Discount Retailers 10.5% Sporting Goods 3.2% INTERNET RISK 6.9% Electronic / Books 4.8% Office Suppl
Slide 12: Operations and Growth Opportunities
12 March 2018 INVESTOR UPDATE • Attractive NOI Margin: 74.4%, trailing twelve months • Efficient G&A / Revenues: 6.1%, trailing twelve months • Opportunity Areas: Operating expense savings, overage rent, and ancillary income • ABR of leases executed in 2017 is 12.2% higher than the ABR for the opera
Slide 13: 3-R Overview: Redevelopment Execution and Opportunity
13 March 2018 INVESTOR UPDATE REDEVELOP REPURPOSE REPOSITION Substantial renovations, including teardowns, remerchandising, and exterior/interior improvements Significant property alterations, including product-type changes Less substantial asset enhancements, generally $5mm or less investment COMPL
Slide 14: 3-R Completions: Successful Redevelopment Examples
14 March 2018 INVESTOR UPDATE 3-R COMPLETIONS Successful Redevelopment Examples ACHIEVED AN OVERALL RETURN ON INVESTMENT OF 12% ON COMPLETED 3-Rs WITH THE ADDITION OF NEW, HIGH-QUALITY TENANTS Property Former Tenant(s)/Space(s) Replacement Tenant(s) Bolton Plaza Vacant Shops Castleton Crossing Small
Slide 15: Strong Balance Sheet: Well-Staggered Debt Maturity Profile
15 March 2018 INVESTOR UPDATE (1) Excludes annual principal payments and net premiums on fixed rate. ONLY $82mm THROUGH 2020 SCHEDULE OF DEBT MATURITIES ($ IN MILLIONS)1 2017 2018 2019 2020 2021 2022 2023 20252024 2027+2026 MORTGAGE DEBT LINE OF CREDIT TERM LOAN PRIVATE PLACEMENT SENIOR UNSECURED NO
Slide 16: Forward-Looking Statements
16 March 2018 INVESTOR UPDATE FORWARD-LOOKING STATEMENTS Certain statements in this document that are not historical fact may constitute 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
Slide 17: Funds From Operations
17 March 2018 INVESTOR UPDATE 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 bes
Slide 18: Net Operating Income and Same Property Net Operating Income
18 March 2018 INVESTOR UPDATE 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 termi
Slide 19: (1) Same Property NOI excludes eight properties in redevelopment, the recently completed Northdale Promenade
19 March 2018 INVESTOR UPDATE (1) Same Property NOI excludes eight properties in redevelopment, the recently completed Northdale Promenade 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 ye
Slide 20: Kite Realty Group contact details
888 577 5600 kiterealty.com 30 S MERIDIAN STREET SUITE 1100 INDIANAPOLIS, IN 46204
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