Kite Realty Group Trust · NYSE:KRG

Kite Realty Group Trust — Q4 2020 Earnings Presentation

43 slides from Kite Realty Group Trust's earnings presentation, Feb 12, 2021

1. Slide 1: Investor Update Q4 2020

   KITE "| il KITE REALTY GROUP INVESTOR UPDATE Q4 2020 KRG ist © 2021 Kite Realty Group | kiterealty.com NYSE

2. Slide 2: Number of Operating Retail Properties and company highlights

   Number of Operating Retail Properties • High-quality portfolio with diverse tenant base Total Retail GLA (SF) • Southern and Western US (aka “Warmer & Cheaper”) focus (78% of ABR) benefits from current and projected Operating Portfolio Percent Leased demographic trends • Strong balance sheet with ov

3. Slide 3: Portfolio markets and demographics

   Las Vegas Indianapolis ABR PSF Raleigh Population1 New York Households1 Dallas / Ft. Worth Average HH Income1 Houston % of College Graduates1 Naples % of ABR with Grocer Fort Lauderdale % of ABR in Top 50 MSAs Oklahoma City Charlotte Salt Lake City Miami Port St. Lucie Orlando Tampa Note: Portfolio

4. Slide 4: Q4 2020 results highlights

   One-time severance charge impacted NAREIT FFO by $0.04 Negatively impacted by COVID-19 Strong leasing volume continues Negatively impacted by COVID-19 Sector-leading collection % throughout 2020 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

5. Slide 5: FFO, as adjusted guidance

   FFO, as adjusted • – Should there be previous bad debt collected (recognized as revenue) or accounts receivable written off (recognized as expense) related to 2020 billings, KRG will disclose the impact, but exclude it from FFO, as adjusted – Will continue to report NAREIT FFO, which will be Net Inc

6. Slide 6: COVID-19 Update

   KITE COVID-19 UPDATE STRONG REAL ESTATE /S THE SHIP THAT SURVIVES THE STORM @Q4 2020 INVESTOR UPDATE KRG ust © 2021 Kite Realty Group | kiterealty.com NYSE

7. Slide 7: Portfolio quality and gateway market research

   • • – Research over the past decade shows rent growth in gateway markets is only marginally higher than other markets1 – Portfolios with high ABR have not necessarily had higher collection rates on rents during the COVID-19 crisis • • – Project Focus, completed in 2019, improved the portfolio, remov

8. Slide 8: Portfolio transformation since 2004

   # of Operating Retail Properties # of States # of Markets South and West ABR Top Region (% of ABR) Top State (% of ABR) Top MSA (% of ABR) ABR Top Tenant (% of ABR) Net-debt-to-EBITDA Note: Based on retail operating portfolio in supplemental disclosures for YE 2004, 2015, and Q4 2020. 1. Net debt to

9. Slide 9: Tenant mix by category

   Grocery / Drug Office / Communication Pet Stores Medical Hardware / Auto Banks Quick Service Restaurants Full Service Restaurants Soft Goods Discount Retailers Personal Service Fitness Sporting Goods Theaters Other Non-essential Professional Service Note: As of February 10, 2021.

10. Slide 10: Sector-leading collections

    Quality of portfolio is evidenced through sector-leading collections. Note: As of February 10, 2021.

11. Slide 11: Liquidity and debt position

    • – $44M of cash on hand – $523M of revolver availability – NDE = 6.8x1 with no outstanding preferred shares • – ‘21 and ’22 debt maturities = $181M – Outstanding big box = $1.0M – Potential Anchor Acceleration = $67M • – Glendale apartments = $0.9M – Eddy Street Phase III = $6.1M – Glendale retail

12. Slide 12: Implied cap rate and NOI dislocation

    • • – Assuming zero NOI erosion from 20191, implied cap rate = ~7.7% – Assuming pre-COVID consensus cap rate of 6.80%, implied permanent NOI dislocation = ~11% – Disconnect between implied dislocation and actual rent collection • – Historically, when debt markets stabilize, debt spreads, and in turn

13. Slide 13: Moving Forward

    KITE MOVING FORWARD EXPERIENCED TEAM + STRONG OPEN-AIR REAL ESTATE + LEADING BALANCE SHEET = POTENTIAL FOR OPPORTUNITIES KRG USTED © 2021 Kite Realty Group | kiterealty.com NYSE

14. Slide 14: Leasing and redevelopment priorities

    • • – Leasing of pandemic dislocation is already under way • – BOPIS and curbside pick-up are here to stay and will continue to drive brick-and-mortar sales – Will benefit from expected tenant demand for open-air space • – Pursuing select redevelopments that will deliver appropriate risk- adjusted r

15. Slide 15: 2021 guidance and collected revenues

    • • – Collected revenues decreased ~7% (compared to peak decrease of 15% in Q2), but stabilized in Q4 • 1. Midpoint of 2021 guidance excluding the impact of the recent Eastgate acquisition and any other transactions. Guidance is based on current environment stabilizing and no additional closures.

16. Slide 16: Leasing activity and Big Box Surge

    # of Leases Signed • # of Different Tenants Signed Square Feet of New Leases Total Expected Cost • Return on Capital Comparable Cash Lease Spread1 • Comparable GAAP Lease Spread1 – Over 80% of the bankruptcy dislocation, shown on the next slide, has been addressed or is in discussions • 93.0% 91.0%

17. Slide 17: Tenant bankruptcy exposure

    1 Guitar Center 2 Francesca’s 3 Rubio’s Restaurant 4 New York Sports Club 5 Stein Mart 6 It’s Sugar 7 Ruby Tuesday 8 Ascena 9 Tailored Brands 10 24 Hour Fitness 11 GNC 12 Tuesday Morning 13 J Crew 14 Hair Cuttery 15 Earth Fare 16 Pier 1 Imports 17 AC Moore 18 Bar Louie 19 Destination Maternity 1. KR

18. Slide 18: Vacated space and mark-to-market potential

    • • # of spaces vacant SF lost ABR of space lost Average ABR of in-place leases Potential mark-to-market spread

19. Slide 19: Project Anchor Acceleration leasing capex

    • • – In a typical year, leasing capex can range from $10 - $15 million – 2021 and 2022 leasing capex can potentially be $25 - $30 million higher annually • • # of vacancies Square feet Capital / SF Total capital ($, M) Previous tenants ABR 4Q ’20 In Place Avg. ABR Cash lease spread Return on capita

20. Slide 20: Glendale Town Center Visionary Redevelopment

    G GLENDALE TOWN CENTER VISIONARY REDEVELOPMENT KRG USTED © 2021 Kite Realty Group | kiterealty.com NYSE bs, em

21. Slide 21: Glendale redevelopment cost and yield

    • • Cost KRG Ownership % KRG Capital Required Est. Project Cash Yield Est. Incremental NOI @ share

22. Slide 22: Redevelopment cost and yield

    Cost • KRG Ownership % KRG Capital Required • Est. Project Cash Yield Est. Incremental NOI @ share

23. Slide 23: Eddy Street Commons Phase III Development

    EDDY STREET COMMONS AT NOTRE DAME KRG UsTeD NYSE © 2021 Kite Realty Group | kiterealty.com PHASE Ill DEVELOPMENT

24. Slide 24: Eddy Street Phase III cost and yield

    Cost • KRG Ownership % KRG Capital Required • Est. Project Cash Yield Est. Incremental NOI @ share

25. Slide 25: Market Thesis: Warmer & Cheaper

    KITE MARKET THESIS WARMER & CHEAPER KRG USTED © 2021 Kite Realty Group | kiterealty.com NYSE

26. Slide 26: Migration trends toward warmer and cheaper states

    • • – Florida had the largest AGI increase (20.3%) and Nevada had the third largest increase (15.7%) – New Jersey, Connecticut, New York and Illinois were 4 of the bottom 5 in terms of AGI reduction • – States listed in the bottom 10 were New Jersey, Illinois, New York, Connecticut and California •

27. Slide 27: Income and discretionary income comparison

    • • Income Discretionary Income1 Income Discretionary Income1 Source: Smart Asset 2021 Cost of Living Calculator 1. Discretionary income is net of tax burden, housing and food costs.

28. Slide 28: Population growth by region

    Florida Texas North Carolina Indiana Nevada South West Midwest Northeast Source: Synergos Technologies. Pre pandemic analysis.

29. Slide 29: KRG Difference: Strong Open-Air Real Estate

    KITE KRG DIFFERENCE STRONG OPEN-AIR REAL ESTATE KRG ust © 2021 Kite Realty Group | kiterealty.com NYSE

30. Slide 30: Retailer omnichannel and pickup growth

    • Curbside pickup at ~3,600 locations Drive-up pick up has increased 500% and same-day delivery from ~2,900 year-over-year stores Greater than Comp sales were up 35.1% in 2Q in Q3 Brick-and-mortar SSS increased double- Have physical pickup in locations that digits in Q3, the best performance within

31. Slide 31: Retailer operating cost advantages of shopping centers

    • • • • • • • – 30% lower gross rent charges – Sales expected increase to $1.27M from $977k in other – Other property types operating costs can range from $20 - $70 psf location – Shopping center operating costs can range from $5 - $10 psf • – Lower operating costs equate to retailer savings

32. Slide 32: Essential and service-oriented tenants

    44% of ABR is deemed essential 41% of ABR service-oriented tenants offer necessary daily trips post-COVID 15% of ABR from primarily full-service restaurants creates additional traffic Essential shadow anchors Target and Bank of America drive daily trips Sufficient access points to the shopping cente

33. Slide 33: Community center demographics

    • • • – Population 76,400 • – Average Household Income: $100,800 – Est. Annual 5-year Population Growth: 1.4% 1. Per Green Street Advisors. 2. Based on ABR. Remaining 6% of portfolio are Lifestyle Centers or other assets.

34. Slide 34: High-Quality Properties

    Sl HIGH-QUALITY PROPERTIES KRG LISTED © 2021 Kite Realty Group | kiterealty.com NYSE

35. Slide 35: Well-balanced offerings: tenant size composition

    Ph KEITE KRG DIFFERENCE WELL-BALANCED OFFERINGS PORTFOLIO COMPOSITION: TENANT SIZE NATIONAL TENANTS: 67% OF ABR WHOLE PETsMART Walmart >\< crown ise 0 REGIONAL TENANTS NOTA Publix. — National Tenants: Nationwide presence Esq banays ALT REDROCK % of ABR ooo @ DRINK RUNNING COMPANY Regional Tenants: —

36. Slide 36: Top tenants by ABR

    1 Publix Supermarkets, Inc. 2 The TJX Companies, Inc. 3 PetSmart, Inc. 4 Ross Stores, Inc. 5 Dick’s Sporting Goods, Inc. 6 Bed Bath & Beyond, Inc. 7 Nordstrom Rack 8 Michaels Stores, Inc. 9 Burlington Stores, Inc. 10 National Amusements 1. Credit rating from S&P as of February 10, 2021.

37. Slide 37: ESG initiatives

    • – Created an ESG Task Force – Publicly disclosed KRG’s ESG policy – Published an ESG brochure highlighting key stats and initiatives for each category – Filed inaugural GRESB report – Planted 5,100 trees in partnership with One Tree Planted and donating 51 additional trees in KRG’s local communiti

38. Slide 38: Forward-Looking Statements

    • 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 Exchange Act

39. Slide 39: Net Operating Income and Same Property NOI

    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 termination fees received from tena

40. Slide 40: EBITDA definitions

    EBITDA The Company defines EBITDA, a non-GAAP financial measure, as net income before depreciation and amortization, interest expense and income tax expense of taxable REIT subsidiary. For informational purposes, the Company has also provided Adjusted EBITDA, which the Company defines as EBITDA less

41. Slide 41: Appendix: Reconciliation of Same-Property NOI to Net Income

    APPENDIX: RECONCILIATION OF SAME-PROPERTY NOI TO NET INCOME PA KITE KRG LisTeD NYSE Kite Realty Group Trust Same Property Net Operating Income For the Three and Twelve Months Ended December 31, 2020 and 2019 (Unaudited) (Sin thousands) Three Months Ended December 31, Twelve Months Ended December 31,

42. Slide 42: Appendix: Funds From Operations

    APPENDIX: FUNDS FROM OPERATIONS af KITE KRG LisTeD NYSE © 2021 kite Realty Group | kiterealty.com Kite Realty Group Trust Funds From Operation: For the Three and Twelve Months Ended December 31, 2020 and 2019 (Unaudited) (S in thousands. exceot ver share data) ‘Three Months Ended ‘Twelve Months Ende

43. Slide 43: Appendix: Reconciliation of EBITDA to Net Income

    APPENDIX: RECONCILIATION OF EBITDA TO NET INCOME PA KITE KRG LisTeD NYSE Kite Realty Group Trust Earnings Before Interest, Tax, Depreciation, and Amortization For the Three Months Ended December 31, 2020 (Unaudited) (Sin thousands) Consolidated net loss Adjustments to net income: Depreciation and am

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