Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Investor Presentation (September 2007)
24 slides from Kite Realty Group Trust's investor presentation, Sep 11, 2007
Slide 1: Kite Realty Group Trust September 2007
Kite Realty Group Trust September 2007
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 contain
Slide 3: Three Year Progress
THREE YEAR PROGRESS $1.3B Enterprise Value $1B Enterprise Value $748M 55 Enterprise Operating Value Properties 51 $584M Operating Enterprise 45 Properties Value Operating Properties 39 Operating 5% 32 Properties Dividend Operating Increase Properties 4% Dividend Increase Formation of Announcement $1
Slide 4: Peer Group Performance
PEER GROUP PERFORMANCE Peer Group One Year Total Return Summary (August 31, 2006 – July 31, 2007) Source: National Association of Real Estate Investment Trusts, Inc. 4
Slide 5: Peer Group Performance
PEER GROUP PERFORMANCE Quarter over Quarter FFO Growth (Q2 2006 vs. Q2 2007) 5
Slide 6: Southeast Strategy - Florida
SOUTHEAST STRATEGY - FLORIDA Information as of June 30, 2007 First Florida development was over 10 years ago Current portfolio includes 13 operating properties and four development projects Florida comprises 21% of the operating portfolio’s annualized base rent and 34% of the operating portfolio’s t
Slide 7: Southeast Strategy – North Carolina
SOUTHEAST STRATEGY – NORTH CAROLINA Information as of June 30, 2007 Acquired 126 acres in Cary, North Carolina for a proposed 1,500,000 square foot mixed-use development Acquired 105 acres in Apex, North Carolina for a proposed 345,000 square foot mixed-use development Together, these projects compr
Slide 8: Committed Management
COMMITTED MANAGEMENT Senior management owns 22 percent of the Company and has acquired over 380,000 shares and 800,000 units since the IPO Tenure with Company Ownership 1 Al Kite Executive Chairman 47 years 10.6% John Kite President & CEO 16 years 7.1% Tom McGowan Sr. EVP & COO 12 years 4.1% Dan Sin
Slide 9: Glendale Town Center
GLENDALE TOWN CENTER REALTY GROUP ma An kite Realty Group Trust September 2007 9
Slide 10: Glendale Town Center Redevelopment Success Story
GLENDALE TOWN CENTER REDEVELOPMENT SUCCESS STORY The property will consist of approximately 685,000 square feet of total GLA and approximately 405,000 square feet of owned GLA upon completion Target Corporation will anchor the redevelopment with a projected store opening in summer 2008 Secured $5.7
Slide 11: Development Process
DEVELOPMENT PROCESS FULLY INTEGRATED DEVELOPMENT PROCESS JV Land Market Pre- Asset Structures Procurement Leasing Construction Research Development Management & & Development Financing Mark John Doug Gregg Todd Dan George Jenkins Fox Pedersen Poetz Oswald Meador McMannis FULLY INTEGRATED TEAM 11
Slide 12: Development Pipeline
DEVELOPMENT PIPELINE VALUE CREATION EMBEDDED IN CURRENT DEVELOPMENT PIPELINE Current Development Pipeline 1 $127M Visible Shadow Pipeline 1,2 $133M Total Pipeline Cost - KRG Share $260M Projected Yield 9.0% Projected NOI $23.4M Value at 6.25% Cap Rate $374M Less Cost (260M) Estimated Value Creation
Slide 13: Development Pipeline
DEVELOPMENT PIPELINE Information as of June 30, 2007 Construction in Progress Assets Ratio REG $ 929,425 $ 3,989,812 23.3% KRG $ 200,553 $ 1,019,167 19.7% KIM $ 1,116,000 $ 8,625,250 12.9% AKR $ 91,441 $ 897,694 10.2% DDR $ 508,341 $ 8,948,544 5.7% FRT $ 109,215 $ 2,901,155 3.8% EQY $ 77,273 $ 2,181
Slide 14: Development & Redevelopment Pipeline
DEVELOPMENT & REDEVELOPMENT PIPELINE Information as of June 30, 2007 KRG Projected Percent Total Est. Project MSA Anchor Tenants % Owned Total GLA1 Committed Cost (000s) Target (non-owned), Staples, Tarpon Springs Plaza 100% Naples, FL 276,350 89.2% $28,000 Cost Plus, AC Moore Target (non-owned), Mi
Slide 15: Visible Shadow Pipeline
VISIBLE SHADOW PIPELINE Information as of June 30, 2007 Estimated Est. Total KRG Start Est. Total Cost 1 Project % Owned MSA Date GLA 1 (000s) Potential Tenancy Parkside Town 40% Raleigh, NC TBD 1,500,000 $134,000 TBD Commons 2 Grocery, Theater Delray 50% Delray Beach, FL TBD 318,000 $90,000 Jr. Box
Slide 16: Mixed-Use Demand
MIXED-USE DEMAND Land use planners are driven by “Smart Growth” and “New Urbanism” approaches to development Requires developers to create plans for combined uses – retail, hotel, residential, and office Internal experience across product types is a strong advantage Conrad Hilton - $100 million hote
Slide 17: Mixed-Use Demand: Parkside Town Commons
MIXED-USE DEMAND Parkside Town Commons - Cary, NC 100 acres adjacent to the Research Triangle Park First project in Prudential JV 1.5 million SF of Estimated Total GLA1 (1) Estimated Total GLA based on preliminary site plans. 17
Slide 18: Mixed-Use Demand: Peakway at 55
MIXED-USE DEMAND Peakway at 55 - Apex, NC Continuation of North Carolina growth strategy 105 acres acquired 1st Quarter 2007 345,000 SF of Estimated Total GLA1 (1) Estimated Total GLA based on preliminary site plans. 18
Slide 19: Mixed-Use Demand: Delray Marketplace
MIXED-USE DEMAND Delray Marketplace – Delray Beach, FL Potential retail tenants include grocery, theater, jr. boxes, restaurants and shops 318,000 SF of Estimated Total GLA1 $90,000,000 Total Estimated Cost1 (1) Total Estimated Cost and Estimated Total GLA based on preliminary site plans. 19
Slide 20: Mixed-Use Demand: Eddy Street Commons
MIXED-USE DEMAND Eddy Street Commons – South Bend, IN (University of Notre Dame) Received final zoning approval July 16, 2007 Continue to work with City on required tax increment financing package 20
Slide 21: Prudential Joint Venture
PRUDENTIAL JOINT VENTURE Efficient Capitalization – PREI’s balance sheet is expected to allow the joint venture to achieve 100 percent financing on land acquisition and construction costs Development Accretion – KRG’s capital outflows are expected to be aligned with FFO inflows Risk Management – Enc
Slide 22: Funding the Pipeline
FUNDING THE PIPELINE Prudential Joint Venture Unsecured Credit Facility Disposition of non-core, low growth assets Approximately 125 acres of land held for future development on balance sheet in excess of current and visible shadow pipeline As of June 30, 2007, 73% of the current pipeline and 34% of
Slide 23: Operating Metrics
OPERATING METRICS For the Three Months Ended June 30, 2007 Selected Peer Group KRG Average 1 NOI / Revenue 74.3% 72.0% G&A / Revenue from Rental 6.8% 7.8% Properties Fixed Charge Coverage 2 2.6x 2.7x FFO Payout % 62% 67% Portfolio % Leased 95.5% 94.6% (1) Peer Group consists of KIM, DDR, AKR, REG an
Slide 24: 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
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