Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Q1 2025 Earnings Presentation
33 slides from Kite Realty Group Trust's earnings presentation, May 2025
Slide 1: Investor Update Q1 2025
INVESTOR UPDATE Q1 2025 usted © 2025 Kite Realty Group | kiterealty.com Fort Evans Plaza II Washington, D.C. MSA.
Slide 2: Company Overview
Enterprise Founded / IPO NYSE Market Cap1 Value1 Operating Retail Total Owned Retail Portfolio Annualized Base Net Debt to Properties Retail GLA (SF) Percent Leased Rent (ABR) per SF Adjusted EBITDA ABR from ABR from Assets ABR in Sun Community & S&P / Moody’s / with a Grocery Belt Markets3 Neighbor
Slide 3: Investment Highlights
✓ Operating margins and metrics are among the best in the open-air retail sector ✓ Management team has deep experience operating open- air real estate ✓ Low leverage with manageable near-term maturities ✓ Investment-grade balance sheet with a BBB rating from S&P and a Baa2 rating from Moody’s ✓ Appr
Slide 4: Q1 2025 Results Highlights
2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025 Year-over-year growth of $0.05 includes $0.03 of termination fees and $0.005 of accelerated below-market rent amortization related to anchor bankruptcies Year-over-year growth tracks NAREIT FFO
Slide 5: 2025 Guidance
• Same property NOI growth range of 1.25% to 2.25% Net income • Full-year credit disruption of 1.95% of total revenues at the Depreciation and amortization midpoint, inclusive of a 1.00% general bad debt reserve and a 0.95% impact from anchor bankruptcies NAREIT FFO • Interest expense, net of intere
Slide 6: Signed-Not-Open Pipeline
• – The signed-not-open (SNO) pipeline increased $0.2M quarter-over-quarter to $27.5M as a result of new leases signed in the first quarter of 2025, net of tenants that commenced rent in the first quarter of 2025 – Of the $27.5M SNO pipeline, 38% is from anchor tenants and 62% is from shop tenants –
Slide 7: Peer Operating Comparison
Peer Average KRG - 1Q'25 Peer Average KRG - 1Q'25 Peer Average KRG - 1Q'25 Peer Average KRG - 1Q'25 Note: Peer group includes AKR, BRX, FRT, KIM, PECO, and REG. Note: Source of all peer data is from 1Q 2025 supplemental disclosures, except AKR, FRT, KIM, and REG data is from 4Q 2024 supplemental dis
Slide 8: Open-Air Supply Growth and Leased Percentage
• • Open-Air Supply Growth % Open-Air REIT Leased % 3.0% 97% 96% 2.5% 95% 2.0% 94% 93% 1.5% 92% 1.0% 91% 90% 0.5% 89% 0.0% 88% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 Source: Green Street and open-air REIT company filings from 2005 – 2024 including AKR, BRX, C
Slide 9: Embedded Rent Bumps and Fixed CAM
• • Shops (< 10K Square Feet) Anchors (> 10K Square Feet) Total Fixed Rent Bumps Greater Than or Equal to 3% (% of Lease Count) Fixed CAM (% of Lease Count) Greater Than or Equal to 3.0% Greater Than or Equal to 3.5% Greater Than or Equal to 4.0%
Slide 10: Leasing Spreads by Center Type
• • Community / Neighborhood Centers 19.5% 35.3% 33.9% 22.8% 15.9% 5.4% 30.2% 6.4% Power Centers 12.8% 28.1% 31.6% 79.4% 33.0% (8.7%) 25.7% 49.4% Lifestyle / Mixed-Use Centers 8.3% 26.1% 72.4% 58.3% 27.1% 6.5% 18.4% 18.4% Community / Neighborhood Centers 10.2% 12.6% 12.6% 10.4% 4.2% 2.2% 2.1% 1.3% P
Slide 11: Balance Sheet Metrics
Net Debt + Preferred / Adjusted EBITDA Debt Service Coverage Ratio Available Liquidity Weighted Average Interest Rate1 Unencumbered NOI as a % of Total NOI Fixed Rate Debt Fitch S&P Moody’s 6.0x 5.6x 5.7x 5.5x 5.2x 5.0x KRG PECO REG BRX KIM FRT AKR Note: Source of all peer data is from 1Q 2025 suppl
Slide 12: Debt Maturity Profile
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034+ Mortgage Debt Unsecured Debt Unsecured Term Loans Line of Credit JV Debt Note: Maturity profile assumes that all loan extension options are exercised by the Company.
Slide 13: Legacy West - An Iconic Acquisition
Legacy West - An Iconic Acquisition i 4| LEGACY WEST DALLAS / FORT WORTH, TX MSA re] : \
Slide 14: Generational Mixed-Use Asset
Generational Mixed-Use Asset ia ~\ Legacy West is a highly amenitized, mixed-use asset in the heart of Plano, which is the Dallas MSA’s leading submarket for job and population growth over the past decade The 35-acre site currently includes 344K square feet of retail (48% of total NOI), 444K square
Slide 15: Legacy West - Checking All The Boxes
rh —— Legacy West - Checking All The Boxes HITE ce aa * Immediately accretive to FFO per share + Enhances the portfolio’s cruising speed with 260 basis points of embedded rent bumps compared to the portfolio average of 168 basis points * Poised for long-term outperformance based on significant mark-
Slide 16: Legacy West
LEGACY WEST 9 A ICME’ CENTER
Slide 17: Contemplated JV Seeding
• • • • • • • • 1. There can be no assurance that we will seed the contemplated JV on the price, terms, and timing anticipated or at all.
Slide 18: GIC Overview and Partnership Benefits
Ph KITE —— GIC Overview Partnership Benefits * GIC is a leading global investment firm V KRG had an existing relationship with GIC, and established in 1981 to secure Singapore’s proactively approached them to explore forming a financial future joint venture + As the manager of Singapore’s foreign v
Slide 19: Legacy West Sources and Uses
• • • • • Village Commons Purchase Price Legacy West Purchase Price (At KRG’s Share)1 Assumed Legacy West Mortgage (3.80% Coupon) Projected Contributed Seed Asset Equity (At KRG’s Share)2 Projected Proceeds from Asset Sales (Stoney Creek Commons, Fullerton Metrocenter, and City Center)3 Borrowings o
Slide 20: High-Quality Portfolio
Slide 21: Population Growth in Sun Belt States
1. Source: US Census Bureau, Vintage 2024 Population Estimates from July 1, 2023 to July 1, 2024. Top 10 states include FL, TX, UT, SC, NV, IA, NC, DE, AZ, and DC.
Slide 22: Portfolio Demographics
• • • • • Note: 3-mile demographic statistics are weighted by 1Q 2025 ABR and sourced from PopStats. Remaining 1% of KRG’s portfolio is unanchored or single-tenant assets.
Slide 23: Leasing Activity and Returns on Capital
• • • Count Square feet Capital / SF (TI / LL Work / Lease Commissions) Total capital ($, M) Previous tenants’ ABR New tenants’ ABR Cash lease spread Return on capital New NOI incl. NNN ($, M) For 72 Spaces National Tenants 1. Includes only comparable leases (37 of 72). 2. Represents the estimated t
Slide 24: Development and Redevelopment Activity
• • • • • • 1. KRG’s equity requirement is shown net of 2 over 2 land sale net proceeds of $15.9M.
Slide 25: Top Tenants by ABR
Grocery / Big Box Wine & Spirits 1 The TJX Companies, Inc. Office Supply / Electronics 2 Ross Stores, Inc. Medical Pet Stores 3 Best Buy Co., Inc. Hardware / Auto 4 PetSmart, Inc. Banks 5 Michaels Stores, Inc. Pharmacy / Drug 6 Gap Inc. Quick Service Restaurants 7 Dick’s Sporting Goods, Inc. Full Se
Slide 26: Anchor and Shop Tenant Exposure
rh —— Anchor and Shop Tenant Exposure KITE + Diverse and balanced tenant mix provides strong durability in KRG’s cash flow + Anchor revenue stream predominantly composed of grocers and discount retailers * Shop composition includes a strong mix of restaurants, apparel, and service tenants TOTAL PORT
Slide 27: Big Names. Small Spaces.
—— Big Names. Small Spaces. Pi KITE ~ Top 50 Small Shop Tenants 98% ~7710 30% 16% (< 10K Square Feet) National Brands Stores Of Small Shop ABR Of Portfolio ABR JS ~ Pairing Established Small Shop Tenants With Newer Retail Concepts KEY TOP 50 SHOP TENANTS (by ABR) S AT&T ER verizon’ ‘TF Mobile Bath &
Slide 28: Forward-Looking Statements
Forward-Looking Statements This Investor Update, 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 Exchange Act of 1934. Such statem
Slide 29: Net Operating Income and Same Property NOI
NET OPERATING INCOME AND SAME PROPERTY NET OPERATING INCOME The Company uses property net operating income (“NOI”) and cash NOI, which are non-GAAP financial measures, to evaluate the performance of our properties. The Company defines NOI and cash NOI as income from our real estate, including lease
Slide 30: Funds From Operations
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 our operating performance. The Company calculates FFO, a non-GAAP financial measure, in accordance with the best practices described in
Slide 31: Same Property Net Operating Income
KRG NYSE Kite Realty Group Trust ‘Same Property Net Operating Income (“NO! (dollars in thousands) (unaudited) Three Months Ended March 31, 2035 2028 ‘Number of properties in Same Property Pool for the period” 17 177 Leased percentage at period end 938% 94.4% Economic occupancy percentage at period e
Slide 32: Appendix: Funds from Operations
KRG NYSE Appendix: Funds from Operations Kite Realty Group Trust Funds From Operations (“FFO”) (dollars in thousands, except per share amounts) (unaudited) Net income Less: net income attributable to noncontrolling interests in properties Less/add: (gain) loss on sales of operating properties, net L
Slide 33: Appendix: Reconciliation of EBITDA to Net Income
—— Appendix: Reconciliation of EBITDA to Net Income KRG NYSE Kite Realty Group Trust Pi KITE Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) (dollars in thousands) (unaudited) Net income Depreciation and amortization Interest expense Income tax expense of taxable REIT subsi
Kite Realty Group Trust — Q1 2025 Earnings Presentation on 6ix