Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Investor Presentation (November 2018)
19 slides from Kite Realty Group Trust's investor presentation, Nov 7, 2018
Slide 1: investor-presentation-11-5-18B.indd
investor-presentation-11-5-18B.indd 1 11/5/18 1:18 PM
Slide 2: Kite Realty Group Trust company overview
Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust (REIT) that provides communities with convenient and beneficial shopping experiences. We connect consumers to tenants in desirable markets through our portfolio of open-air shopping centers. Using operation
Slide 3: Why Kite? KRG Facts and Company Snapshot
WHY KITE? KRG FACTS • High-quality, geographically Number of Properties 115 November 2018 balanced portfolio with Total GLA (SF) 22.4mm INVESTOR UPDATE diverse tenant base Total Retail Operating Portfolio Leased 93.5% • Self-funded redevelopment, Percent Leased Anchors 94.7% Percent Leased Shops r
Slide 4: Building Value and Critical Mass Around Regional Footprints
BUILDING VALUE AND CRITICAL MASS AROUND REGIONAL FOOTPRINTS November 2018 INVESTOR UPDATE Focused on experiential and diverse tenant offerings % of ABR derived from top 50 MSAs HIGH-QUALITY 76 and destination locations1 PORTFOLIO 93% of tenants are service/specialty/multi-channel % of ABR derived fr
Slide 5: High-Quality Strategic Portfolio Dispositions
HIGH-QUALITY STRATEGIC PORTFOLIO DISPOSITIONS $155 MILLION IN DISPOSITIONS OVER THE LAST EIGHT QUARTERS IMPROVED ABR IMPROVED HOUSEHOLD INCOME IMPROVED POPULATION DENSITY $88,772 174,263 $16.77 $64,430 114,530 $11.78 DISPOSITIONS KRG Q3’18 OPERATING DISPOSITIONS KRG Q3’18 OPERATING DISPOSITIONS KRG
Slide 6: High-Quality Geographic Portfolio Diversity
HIGH-QUALITY GEOGRAPHIC PORTFOLIO DIVERSITY 76% OF ABR FROM TOP 50 MSAs AND DESTINATION LOCATIONS, INCLUDING HIGH-GROWTH MARKETS NEW YORK AVERAGE PROJECTED HOUSEHOLD INCOME: POPULATION GROWTH: $139,240 1.5% INDIANAPOLIS AVERAGE PROJECTED HOUSEHOLD INCOME: POPULATION GROWTH: $99,094 6.0% CHARLOTTE/RA
Slide 7: High-Quality Strategic Portfolio Asset Mix
HIGH-QUALITY STRATEGIC PORTFOLIO ASSET MIX PROPERTY CLASSIFICATION BY ABR1 COMMUNITY % NEIGHBORHOOD CENTER/ % POWER CENTER % 57 LIFESTYLE CENTER/ 24 19 CENTER PORTFOLIO OF ABR OTHER PORTFOLIO OF ABR PORTFOLIO OF ABR Average 2018 Average 2018 Average 2018 Household Income $90,101 Household Income $89
Slide 8: High-Quality Diverse Portfolio Tenant Base
HIGH-QUALITY DIVERSE PORTFOLIO TENANT BASE Top 10 Tenants by ABR1 Credit Rating2 # Stores1 % ABR1 RECENT LEASE ACTIVITY EXAMPLES 1 The TJX Companies, Inc. A+ 22 2.6% 2 Publix Supermarkets, Inc. NR 14 2.5% 3 Bed Bath & Beyond, Inc. BB+ 19 2.3% 4 Petsmart, Inc. CCC 18 2.1% 5 Ross Stores, Inc. A- 17 2.
Slide 9: Tenant Base Well-Positioned for Evolving Consumer Preferences
HIGH-QUALITY DIVERSE PORTFOLIO TENANT BASE WELL-POSITIONED TO MANAGE EVOLVING CONSUMER PREFERENCES % 17.2 RESTAURANTS % SERVICES, ENTERTAINMENT 21.6 % 15.8 GROCER, SPECIALTY STORES TENANT TYPE % OFFICE SUPPLIES 1.9 COMPOSITION BY ABR % SPORTING GOODS 3.4 % ELECTRONICS & BOOKS 5.0 % 12.9 SOFT GOODS %
Slide 10: Embedded NOI Growth Opportunities in Portfolio
EMBEDDED NOI GROWTH OPPORTUNITIES IN PORTFOLIO November 2018 INVESTOR UPDATE • $3.1mm of additional cash NOI from in-process 3-R 3-R INITIATIVE / and transitional projects DEVELOPMENT / ACQUISITIONS • Identified 3-R opportunities with a total cost of $40mm - $56mm and projected returns of 9-11% OP
Slide 11: Kite's 3-R Platform Generated Attractive Risk-Adjusted Returns
KITE'S 3-R PLATFORM HAS GENERATED ATTRACTIVE RISK-ADJUSTED RETURNS, IMPROVING CASH FLOW AND ASSET QUALITY November 2018 REDEVELOP REPURPOSE REPOSITION INVESTOR UPDATE Substantial renovations, Significant property Less substantial asset including teardowns, alterations, including enhancements, genera
Slide 12: 3-R Return on Investment Supported by New, High-Quality Tenants
3-R RETURN ON INVESTMENT SUPPORTED BY NEW, HIGH-QUALITY TENANTS November 2018 INVESTOR UPDATE Property Former Tenants/Spaces Replacement Tenants Beechwood Promenade Underutilized Shop Space MSA: Athens, GA Bolton Plaza Vacant Shops OPERATIONS MSA: Jacksonville, FL AND GROWTH OPPORTUNITIES Burnt Stor
Slide 13: Investment Grade Balance Sheet: Debt Maturity Profile
INVESTMENT STRONG GRADE BALANCE Well-Staggered Debt Maturity Profile SHEET BALANCE SHEET SCHEDULE OF DEBT MATURITIES ($ IN MILLIONS)1 20% of total company debt 250 150.0 95.0 300 212.9 24.3 181.9 Only $20.7mm of debt 166.4 maturing through 2020 80.0 75 10.3 10.4 20.7 16.9 10.2 2018 2019 2020 2021 20
Slide 14: Disclaimer: Forward-Looking Statements
DISCLAIMER FORWARD-LOOKING STATEMENTS This supplemental information package, together with other statements and information publicly disseminated by us, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Excha
Slide 15: Non-GAAP Financial Measures: Funds From Operations
NON-GAAP FINANCIAL MEASURES FUNDS FROM OPERATIONS Funds from Operations (FFO) is a widely used performance measure for real estate companies and is provided here as a supplemental measure of operating performance. The Company calculates FFO, a non-GAAP financial measure, in accordance with the best
Slide 16: Non-GAAP Financial Measures: NOI and Same Property NOI
NON-GAAP FINANCIAL MEASURES NET OPERATING INCOME AND SAME PROPERTY NET OPERATING INCOME The Company uses property net operating income (“NOI”), a non-GAAP financial measure, to evaluate the performance of our properties. The Company defines NOI as income from our real estate, including lease termina
Slide 17: Appendix – Reconciliation of Same Property NOI to Net Income
APPENDIX – RECONCILIATION OF SAME PROPERTY NOI TO NET INCOME SAME PROPERTY NET OPERATING INCOME (NOI) ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, % % 2018 2017 Change 2018 2017 Change Number of properties for the quarter1 104 104 Leased percentage at period end
Slide 18: S MERIDIAN STREET SUITE 1100 INDIANAPOLIS, IN 46204 77 5600 kiterealty.com investor-presentation-11-5-18B.indd 18
30 S MERIDIAN STREET SUITE 1100 INDIANAPOLIS, IN 46204 888 577 5600 kiterealty.com investor-presentation-11-5-18B.indd 18 11/5/18 1:18 PM
Slide 19: 2018 Full Year FFO Guidance: $1.98 - $2.01
2018 FULL YEAR FFO GUIDANCE: $1.98 - $2.01 November 2018 INVESTOR UPDATE Year over Year Impact 2019 Eddy Street Commons Development Fee ($0.03) TH Real Estate Joint Venture ($0.02) OPERATIONS 2018 Transactional Activity (excluding TH) ($0.01) AND GROWTH OPPORTUNITIES Toys Impact ($0.03) New Lease Ac
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