Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Q1 2025 Earnings Presentation
33 slides from Kite Realty Group Trust's earnings presentation, Apr 29, 2025
Slide 1: Investor Update Q1 2025
KITE INVESTOR UPDATE Q1 2025 KRG UstED © 2025 Kite Realty Group | kiterealty.cam NYSE Fort Evans Plaza Il ~ Washington, D.C. MSA.
Slide 2: Company overview and key portfolio metrics
Note: Unless otherwise indicated, the source of all Company data is publicly available information that has been or will be filed with the Securities and Exchange Commission for the period ending March 31, 2025. 1. As of April 28, 2025. 2. Assets with a grocery component include centers with a big b
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
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 excluding the below-market rent amortization benefit Driven by improvements in base rent and embedded rent
Slide 5: 2025 guidance
• Same property NOI growth range of 1.25% to 2.25% • Full-year credit disruption of 1.95% of total revenues at the midpoint, inclusive of a 1.00% general bad debt reserve and a 0.95% impact from anchor bankruptcies • Interest expense, net of interest income, excluding unconsolidated joint ventures,
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 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 disclosures. 1. “Recovery Ratios” are computed by dividing tenant reimbursemen
Slide 8: Open-air supply growth and leased percentage
• • 88% 89% 90% 91% 92% 93% 94% 95% 96% 97% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 Open-Air Supply Growth % Open-Air REIT Leased % 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% Power
Slide 11: Balance sheet strength and leverage
Note: Source of all peer data is from 1Q 2025 supplemental disclosures, except AKR, FRT, KIM, and REG data is from 4Q 2024 supplemental disclosures. 1. Includes $44.6 million of the Company’s unconsolidated JV debt. Net Debt + Preferred / Adjusted EBITDA Debt Service Coverage Ratio Available Liquidi
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: An Iconic Acquisition
An Iconic Acquisition est - Legacy W oA Pe g x x bE 35 cae ge $8 ge 3 g | Fi a
Slide 14: Generational Mixed-Use Asset
Generational Mixed-Use Asset Va 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 fee
Slide 15: Legacy West - Checking All The Boxes
—— Legacy West - Checking All The Boxes KRG NYSE 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-to-market o
Slide 16: Legacy West
LEGACY WEST re A IRIE’ CENTER
Slide 17: • • • • • • • • 1. There can be no assurance
• • • • • • • • 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
KRG NYSE GIC Overview * GIC is a leading global investment firm established in 1981 to secure Singapore’s financial future + As the manager of Singapore’s foreign reserves, GIC takes a long-term, disciplined approach to investing and is uniquely positioned across a wide range of asset classes and ac
Slide 19: Acquisition 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 on KRG’s Re
Slide 20: Slide 20
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
1. Includes only comparable leases (37 of 72). 2. Represents the estimated total potential new NOI divided by the cost of executing such leases. These numbers are based on Management's estimates and assumptions, and there can be no assurance that such estimates and assumptions will be accurate or re
Slide 24: Development and redevelopment
• • • • • • 1. KRG’s equity requirement is shown net of 2 over 2 land sale net proceeds of $15.9M.
Slide 25: Top tenants
1. Number of stores represents stores at consolidated and unconsolidated properties. 2. Percent of weighted ABR includes ground lease rent and represents the Company’s share of the ABR at consolidated and unconsolidated properties. 1 The TJX Companies, Inc. 2 Ross Stores, Inc. 3 Best Buy Co., Inc. 4
Slide 26: Anchor and Shop Tenant Exposure
—— Anchor and Shop Tenant Exposure 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 Ph KITE TOTAL PORTFOLIO
Slide 27: Big Names. Small Spaces.
—— Big Names. Small Spaces. Top 50 Small Shop Tenants (< 10K Square Feet) 98% National Brands PA KITE 30% Of Small Shop ABR 16% Stores Of Portfolio ABR 4 KEY TOP 50 SHOP TENANTS (by ABR) SATET ERX verizon’ ‘TF Mobile Bath & Body Works BANK OF AMERICA SEPHORA Pairing Established Small Shop Tenants Wi
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: Reconciliation of Same Property NOI to Net Income
Appendix: Reconciliation of Same Property NOI to Net Income KITE Kite Realty Group Trust ‘Same Property Net Operating Income ("NOI") (Gollarsin thousands) (unaudited) Three Months Ended March 33. 2035 72024 ‘Change ‘Number of properties in Same Property Pool forthe period 7 7 Leased percentage at pe
Slide 32: Funds from Operations
Pi Appendix: Funds from Operations mCITE Kite Realty Group Trust Funds From Operations (“FFO")') (dollars in thousands, except per share amounts) (unaudited) Three Months Ended March 31. 2025 Netincome $ 2426 $14,436 Less: net income attributable to noncontrolling interests in properties (70) 67) Le
Slide 33: Reconciliation of EBITDA to Net Income
—— Appendix: Reconciliation of EBITDA to Net Income KRG NYSE Kite Realty Group Trust Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) Net income Depreciation and amortization Interest expense Income tax expense of taxable REIT subsidiaries EBITDA Unconsolidated EBITDA, as ad
Kite Realty Group Trust — Q1 2025 Earnings Presentation on 6ix