Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Q4 2024 Earnings Presentation
30 slides from Kite Realty Group Trust's earnings presentation, Feb 12, 2025
Slide 1: Investor Update Q4 2024
KGTE: INVESTOR UPDATE @Q4 2024 KRG USTED NYSE © 2025 Kite Realty Group | kiterealty.com Tradition Village Center - Port St. Lucie, FL MSA’
Slide 2: Company overview at a glance
Enterprise Founded / IPO NYSE Market Cap1 Value1 Operating Retail Total Owned Retail Portfolio Annualized Base Net Debt to Properties Retail GLA (SF) Percent Leased Rent (ABR) per SF Adjusted EBITDA ABR from ABR from Assets ABR in Sun Community & S&P / Moody’s / with a Grocery Belt Markets3 Neighbor
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 ✓ In 2024, received credit rating upgrades from S&P to BBB and Moody’s to Baa2, and an outlook up
Slide 4: 2024 operating and leasing results
2016 2017 2018 2019 2020 2021 2022 2023 2024 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year-over-year growth of 2.0% driven by base rent growth and lower than expected bad debt Year-over-year growth of 4.7% driven by occupancy gains Driven by improvements in occupancy and net tenant recoveries Al
Slide 5: 2025 guidance and FFO bridge
▪ Same property NOI growth range of 1.25% to 2.25% Net income ▪ Full-year credit disruption of 1.95% of total revenues at the Depreciation and amortization midpoint, inclusive of a 0.85% general bad debt reserve and a NAREIT FFO 1.10% impact from anchor bankruptcies Non-cash items ▪ Interest expense
Slide 6: Signed-not-open pipeline
• – The signed-not-open (SNO) pipeline decreased $5.3M quarter-over-quarter to $27.3M as a result of new leases signed in the fourth quarter of 2024, net of tenants that commenced rent in the fourth quarter of 2024 – Of the $27.3M signed-not-open pipeline, 42% is from anchor tenants and 58% is from
Slide 7: Peer comparison since 2019
ABR per SF Net Debt to Adjusted EBITDA 3-Mile Population1 3-Mile Average Household Income1 % of ABR from Assets with a Grocery Component (Since 2019) (Since 2019) (Since 2019) 19.8% 12.1% 3.4% 14.1% 8.7% 2.3% 2.1% 11.2% 7.5% 7.2% 1.5% 9.0% FRT REG KIM KRG BRX REG FRT KIM BRX KRG FRT BRX KIM REG KRG
Slide 8: Peer average comparison Q4 2024
Peer Average KRG - 4Q'24 Peer Average KRG - 4Q'24 Peer Average KRG - 4Q'24 Peer Average KRG - 4Q'24 [Note: Peer group includes AKR, BRX, FRT, KIM, PECO, REG, and ROIC. Source of all peer data is from 4Q 2024 supplemental disclosures, except AKR, FRT, and ROIC data is from 3Q 2024 supplemental disclo
Slide 9: Multi-tenant retail occupancy trends
• • 120 96% 95% 100 94% 80 93% 60 92% 91% 40 90% 20 89% 0 88% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Note: Data pertains to multi-tenant retail, excluding single-tenant and net lease retail. Source: CBRE Research
Slide 10: Lease structure: 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 11: Leasing spreads by center type
• • Community / Neighborhood Centers 35.3% 33.9% 22.8% 15.9% 5.4% 30.2% 6.4% Power Centers 28.1% 31.6% 79.4% 33.0% (8.7%) 25.7% 49.4% Lifestyle / Mixed-Use Centers 26.1% 72.4% 58.3% 27.1% 6.5% 18.4% 18.4% Community / Neighborhood Centers 12.6% 12.6% 10.4% 4.2% 2.2% 2.1% 1.3% Power Centers 15.3% 11.7
Slide 12: Balance sheet strength and credit metrics
Net Debt + Preferred / Adjusted EBITDA Debt Service Coverage Ratio Available Liquidity Weighted Average Interest Rate1 Unencumbered NOI as a % of Total NOI Fixed Rate Debt Fitch S&P Moody’s 6.3x 6.0x 5.7x 5.8x 5.6x 5.2x 5.0x KRG PECO REG KIM BRX FRT AKR ROIC Note: Source of all peer data is from 4Q
Slide 13: Debt maturity profile
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034+ Note: Maturity profile assumes that all loan extension options are exercised by the Company.
Slide 14: An Evolving Portfolio
An Evolving Portfolio CHAPEL HILL SHOPPING CENTER DALLAS / FORT WORTH, TX MSA
Slide 15: Population growth in top 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, and AZ.
Slide 16: Portfolio composition and demographics
• • • • • Note: 3-mile demographic statistics are weighted by 4Q 2024 ABR and sourced from PopStats. Remaining 1% of KRG’s portfolio is unanchored or single-tenant assets.
Slide 17: Mixed-use asset metrics
% of Q4 2024 Annualized Total Portfolio NOI % of Retail Square Footage % of Office Square Footage % of 2024 SPNOI Growth of 3.0% Embedded Rent Escalators % of 2024 Total Overage Rent % of 2024 Specialty Leasing Income Number of Visitors in 2024 Number of Retail and Office Tenants Residential Units H
Slide 18: Four-part investor day series
✓ Reimagine the traditional investor day into four installments in KRG’s markets ✓ Showcase the quality of our diverse open- air retail portfolio ✓ Gain a deeper understanding of KRG’s platform through four themes: operate, lease, develop, and allocate ✓ Highlight the KRG team’s wealth of industry k
Slide 19: Leasing and redevelopment returns
• • Count Square feet Capital / SF (TI / LL Work / Lease Commissions) Total capital ($, M) Previous tenants’ ABR New tenants’ ABR Cash lease spread Return on capital New NOI incl. NNN ($, M) For 71 Spaces National Tenants 1. Includes only comparable leases (36 of 71). 2. Represents the estimated tot
Slide 20: Development and redevelopment activity
• • • • • • 1. Includes leases that were signed subsequent to quarter end. 2. KRG’s equity requirement is shown net of 2 over 2 land sale net proceeds of $15.9M.
Slide 21: Our Newest Additions
Our Newest Additions PARKSIDE WEST COBB MSA Atlanta Center Type Community Center Date Acquired Q3 2024 Total Owned GLA 142K SF Current Leased Rate 100.0% ABR psf $20.64 Grocery Anchor Sprouts MSA West Palm Beach Center Type Community Center Date Acquired Q12025 Total Owned GLA 171K SF Current Leased
Slide 22: Top tenants and tenant categories
Grocery / Big Box Wine & Spirits 1 The TJX Companies, Inc. Office Supply / Electronics 2 Best Buy Co., Inc. Medical Pet Stores 3 Ross Stores, Inc. Hardware / Auto 4 PetSmart, Inc. Banks 5 Michaels Stores, Inc. Pharmacy / Drug 6 Gap Inc. Quick Service Restaurants 7 Dick’s Sporting Goods, Inc. Full Se
Slide 23: Anchor and Shop Tenant Exposure
rh —— Anchor and Shop Tenant Exposure KITE + 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 TOTAL PORT
Slide 24: Big Names. Small Spaces.
—— Big Names. Small Spaces. Pi KITE ~ Top 50 Small Shop Tenants 98% ~7710 30% 16% (< 10K Square Feet) National Brands Stores Of Small Shop ABR Of Portfolio ABR JS ~ Pairing Established Small Shop Tenants With Newer Retail Concepts KEY TOP 50 SHOP TENANTS (by ABR) S AT&T ER verizon’ ‘TF Mobile Bath &
Slide 25: 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 26: 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 27: 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 28: 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 (*NO!”) (collars in thousands) (unaudited) Three Months Ended December 31, Year Ended December 31, 2024 2023 ‘Change 2024 2023 ‘Change ‘Number of properties in Same Property P
Slide 29: Funds from Operations
PA Appendix: Funds from Operations KITE Kite Realty Group Trust Funds From Operations (“FFO")™ (dollars in thousands, except per share amounts) (unaudited) ‘Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 Net income $ 22230 $ 8164 $ 4416 $ 48,383 Less: net income attribut
Slide 30: Reconciliation of EBITDA to Net Income
PA —— Appendix: Reconciliation of EBITDA to Net Income KITE Kite Realty Group Trust Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) (dollars in thousands) (unaudited) Three Months Ended December 31,2024 Net income $ 22,230 Depreciation and amortization 97,009 Interest expen
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