Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — 12th Annual Wachovia Global Real Estate Securities Conference (December 2008)
19 slides from Kite Realty Group Trust's conference presentation, Dec 9, 2008
Slide 1: 12th Annual Wachovia Global Real Estate Securities Conference
12th Annual Wachovia Global Real Estate Securities Conference December 9, 2008
Slide 2: Disclaimer
DISCLAIMER This presentation may include certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements containe
Slide 3: Company Overview: Primary Objectives for the Company
COMPANY OVERVIEW PRIMARY OBJECTIVES FOR THE COMPANY Balance Sheet Management Continue to Manage Debt Maturities Execute Capital Plan Development Complete Current Development Pipeline $105 million total cost with approximately $60 million spent 75% Pre-leased or Committed Delay visible shadow pipelin
Slide 4: Company Overview: Consumer Behavior and Property Type Allocation
COMPANY OVERVIEW Information as of September 30, 2008 Consumer Behavior Nationwide consumption levels will fluctuate, but a portion of the consumer’s behavior is derived from necessity. Grocery-anchored centers and value-oriented retailers such as Target and Wal-Mart will continue to create shopping
Slide 5: Company Overview: Geographic Diversification
COMPANY OVERVIEW Information as of September 30, 2008 GEOGRAPHIC DIVERSIFICATION Projected Total GLA Including Pipelines 1,2 (1) Total GLA includes owned GLA, square footage attributable to non-owned outlot structures on land that the Company owns and non-owned anchor space that currently exists or
Slide 6: Strong Tenant Diversity
COMPANY OVERVIEW Information as of September 30, 2008 except as noted STRONG TENANT DIVERSITY Top 10 Retail Tenants by Base Rent % of Portfolio S&P 1 Annualized Base Rent Credit Rating 1 Lowe's Home Improvement 3.4% A+ 2 PetSmart 2.7% BB 3 Publix 2.4% n/a 4 Marsh Supermarkets 2.1% n/a 5 Bed Bath & B
Slide 7: Growth Strategy: Embedded Growth: Current Developments
GROWTH STRATEGY Information as of September 30, 2008 EMBEDDED GROWTH: CURRENT DEVELOPMENTS STRONG UPSIDE Only 2% occupied Growth source throughout 2009 LOW RISK PROFILE 75% leased or committed 55% funded Entitlement and major construction risk has been removed – focus is on executing small shop leas
Slide 8: Growth Strategy: Emphasizing Internal Growth
GROWTH STRATEGY Information as of September 30, 2008 EMPHASIZING INTERNAL GROWTH Existing Vacancy Operating retail portfolio is 91.9% leased Negotiating lease for 23,000 square foot junior anchor space vacated in early 2008 - represents 0.5% increase in occupancy Operational Efficiencies Leveraging
Slide 9: Development & Redevelopment Pipeline
DEVELOPMENT & REDEVELOPMENT PIPELINE Information as of September 30, 2008 Projected % Leased / Total Est. Cost 1 3 Project MSA Total GLA Committed (000s) Anchor Tenants Whole Foods Market, Staples, Party 2 Cobblestone Plaza Ft. Lauderdale, FL 163,600 79.7% $47,000 City South Elgin Commons I Chicago,
Slide 10: Visible Shadow Pipeline
VISIBLE SHADOW PIPELINE Information as of September 30, 2008 KRG % Est. Total Est. Total Project Owned MSA GLA 1 Cost (000s)1 Potential Tenancy Unconsolidated: 2 Frank Theatres, Discount Dept. Stores, Jr. Boxes, Parkside Town Commons 40% Raleigh, NC 1,500,000 $148,000 Restaurants KRG Current Share $
Slide 11: A Case Study in Risk Mitigation: Eddy Street Commons
DEVELOPMENT PIPELINE A CASE STUDY IN RISK MITIGATION: EDDY STREET COMMONS 11
Slide 12: A Case Study in Risk Mitigation: Eddy Street Commons
DEVELOPMENT PIPELINE Information as of September 30, 2008 A CASE STUDY IN RISK MITIGATION: EDDY STREET COMMONS $200 million mixed-use development next to the University of Notre Dame in South Bend, IN will be completed in phases $35 million Phase I, which will include retail and office, was recently
Slide 13: Eddy Street Commons Phase I
DEVELOPMENT PIPELINE A CASE STUDY IN RISK MITIGATION: EDDY STREET COMMONS Phase I – Retail, Office, Multi-family, Parking Garage 13
Slide 14: Strong Demographics
STRONG DEMOGRAPHICS SUCCESS NOT DEPENDENT ON GROWTH Portfolio Demographic Comparison Operating Portfolio vs. Development Pipeline Radius Radius Operating Portfolio 3 Mile 5 Mile Development Pipeline 3 Mile 5 Mile 2007 Est. Population 49,691 124,977 2007 Est. Population 44,549 118,951 2012 Est. Popul
Slide 15: Capital Plan
CAPITAL PLAN Information as of September 30, 2008 except as noted EXECUTE ON STRATEGY TO ENSURE CAPITAL AVAILABILITY Credit Facility and Cash 1 : $100 million Potential Asset Sales: $20 to 25 million Targeted Asset Transfer to JVs: $25 to $30 million Targeted Liquidity Level: $75 to $100 million (1)
Slide 16: Managing Debt Maturities
MANAGING DEBT MATURITIES Information as of September 30, 2008 AGGRESSIVE REFINANCING, SOLID EXECUTION Including As of % of Q4 2008 % of 9/30/08 Total Refinancings 1, 2 Total 2008 $18,684 3% $0 0% 2009 $190,284 26% $107,770 15% 2010 $13,373 2% $74,238 10% 20113 $229,798 32% $270,131 37% 2012 $38,905
Slide 17: Committed Management
COMMITTED MANAGEMENT Senior management owns approximately 21 percent of the Company and has acquired over 400,000 shares and 800,000 units since the IPO at a cost of approximately $21M Tenure with Company Ownership 1 Al Kite Chairman Emeritus 48 years 9.5% John Kite Chairman & CEO 18 years 7.3% Tom
Slide 18: Operating Metrics
OPERATING METRICS For the Three Months Ended September 30, 2008 Selected Peer Group KRG Average 1 NOI / Revenue 72.8% 70.8% G&A / Revenue from Rental 5.3% 5.3% Properties Fixed Charge Coverage 2 2.6x 2.5x FFO Payout % 64% 71% Portfolio % Leased 92.5% 94.8% (1) Peer Group consists of KIM, DDR, AKR, R
Slide 19: Corporate Profile
CORPORATE PROFILE Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust engaged primarily in the ownership, operation, management, leasing, acquisition, construction, expansion, and development of high quality neighborhood and community shopping centers in sel