Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Merger or Acquisition (July 2021)
17 slides from Kite Realty Group Trust's merger presentation, Jul 19, 2021
Slide 1: Kite Realty Group + RPAI Strategic Merger
© 2021 Kite Realty Group | kiterealty.com Investor Presentation © 2021 Kite Realty Group | kiterealty.com KITE REALTY GROUP + RPAI STRATEGIC MERGER
Slide 2: Forward Looking Statements
© 2021 Kite Realty Group | kiterealty.com Forward Looking Statements This release contains certain forward - looking statements within the meaning of Section 27A of the Securities Act of 1933, as ame nded (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, wit
Slide 3: Transaction Overview
© 2021 Kite Realty Group | kiterealty.com • Transaction expected to be immediately accretive to earnings per share upon realizing expected synergies • Expected synergies will reduce (Net Debt + Preferred) / EBITDA and strengthen the balance sheet • KRG intends to maintain its current dividend policy
Slide 4: Strategic Rationale
© 2021 Kite Realty Group | kiterealty.com STRATEGIC RATIONALE KITE REALTY GROUP 4 1. KRG ABR PSF and leased rate definitions excludes rent and square footage from ground leases. RPAI metrics have been adjusted to conform to the KRG definition. 2. Warmer and Cheaper states include AL, AZ, CO, FL, GA,
Slide 5: Strategic Rationale (Cont'd)
© 2021 Kite Realty Group | kiterealty.com STRATEGIC RATIONALE (CONT’D) KITE REALTY GROUP 5 1. Pro forma for assumption of RPAI debt. 2. Pro forma combined total enterprise value, assuming a KRG stock price of $20.83, which was the closing price on July 16, 2021 . • Creates a top 5 shopping center RE
Slide 6: Optimized Real Estate Portfolios
© 2021 Kite Realty Group | kiterealty.com Note: Based on public filings from IPO documents, YE 2004, 2012, 2015, 2016 and 1Q’2021 supplemental disclosures. 1. KRG ABR PSF and leased rate definitions excludes rent and square footage from ground leases. RPAI metrics have been adjusted to conform to th
Slide 7: Combination Creates a Top 5 Owner of Open-Air Real Estate
© 2021 Kite Realty Group | kiterealty.com 1. KRG ABR PSF and leased rate definitions excludes rent and square footage from ground leases. RPAI metrics have been adjusted to conform to the KRG definition. 2. RPAI metric excludes two single - user retail centers. 3. Warmer and Cheaper states include A
Slide 8: Increases Presence in Strategic Markets
© 2021 Kite Realty Group | kiterealty.com 1414971_1.wor INCREASES PRESENCE IN STRATEGIC MARKETS KITE REALTY GROUP 8 RPAI KRG TOP 5 STATES (ABR) 2 Texas 27% Florida 10% New York 7% Maryland 6% Virginia 5% Las Vegas – 4% Seattle – 4% Dallas / Fort Worth – 17% Houston – 4% Naples – 2% Miami / Fort Laud
Slide 9: Merger Creates Top 5 Shopping Center REIT by Value
© 2021 Kite Realty Group | kiterealty.com $20.5 $15.2 $13.1 $11.6 $7.5 $5.9 $5.2 $3.7 $3.7 $3.6 $3.5 $1.9 $1.4 $1.0 $1.0 KIM + WRI REG FRT BRX KRG + RPAI PECO SITC AKR UE ROIC AAT RPT UBA CDR WSR Note: Market data as of July 16, 2021. Source of peer data is FactSet. MERGER CREATES TOP 5 SHOPPING CEN
Slide 10: Peer Comparison of Top 5 Shopping Center REITs
© 2021 Kite Realty Group | kiterealty.com $29.95 $22.97 $19.29 $18.79 $15.05 FRT REG KRG + RPAI KIM + WRI BRX ABR PSF 1 Note: Comparison to only top 5 shopping center REITs by total enterprise value. Source of all company data is from supplemen tal disclosures from 1Q 2021. 1. KRG ABR PSF and leased
Slide 11: Diversified Asset Mix Creates New Growth Opportunities
© 2021 Kite Realty Group | kiterealty.com Note: Percentages are based on pro forma for the combined company as of March 30, 2021. Remaining 2% of portfolio are unanch ore d or single - tenant assets. DIVERSIFIED ASSET MIX CREATES NEW GROWTH OPPORTUNITIES WHILE MAINTAINING DURABLE CASH FLOW KITE REAL
Slide 12: Diverse Tenant Base
© 2021 Kite Realty Group | kiterealty.com Note: Pro forma for combined company as of March 31, 2021. 1. Credit rating from S&P as of July 9, 2021. TOP 15 TENANTS BY ABR CREDIT RATING 1 % OF ABR 1 The TJX Companies, Inc. A 2.4% 2 Best Buy Co., Inc. BBB+ 2.0% 3 Ross Stores, Inc. BBB+ 1.8% 4 PetSmart,
Slide 13: Value Creation: Active Developments
© 2021 Kite Realty Group | kiterealty.com Note: Based on active developments listed in 1Q 2021 supplemental reporting materials. 1. Commercial GLA only. 2. Projected ROI for developments is an estimate of the expected stabilized annual operating cash flows to be generated divided by the estimated pr
Slide 14: Active Developments
© 2021 Kite Realty Group | kiterealty.com 14 CIRCLE EAST MSA: WASHINGTON, DC / BALTIMORE GLENDALE TOWN CENTER MSA: INDIANAPOLIS, IN EDDY STREET COMMONS AT NOTRE DAME: PHASE III MSA: SOUTH BEND, IN ACTIVE DEVELOPMENTS ONE LOUDOUN DOWNTOWN MSA: WASHINGTON, DC / BALTIMORE
Slide 15: Prudent Pro Forma Balance Sheet Composition
© 2021 Kite Realty Group | kiterealty.com PRUDENT PRO FORMA BALANCE SHEET COMPOSITION 1 KITE REALTY GROUP 15 • The combined company will have a strong capital structure with increased liquidity and an investment grade rating • Well - laddered debt maturity schedule with a weighted average maturity p
Slide 16: Pro Forma Well-Staggered Maturity Ladder
© 2021 Kite Realty Group | kiterealty.com Note: Pro forma for combined company, assuming assumption of all outstanding debt of RPAI. Assumes KRG’s 2022 maturities ar e r etired using cash on hand. Dollar figures in millions. 1. Fixed rate debt includes floating rate debt that is swapped to a fixed r
Slide 17: Transaction Creates a Virtuous Circle of Benefits
© 2021 Kite Realty Group | kiterealty.com KITE REALTY GROUP 17 TOP 5 SHOPPING CENTER REIT Pro forma total enterprise value results in $7.5B company ENHANCED PORTFOLIO QUALITY Entry into strategic markets and bolstered presence in existing markets POSITIVE FINANCIAL IMPACT Immediately accretive to ea
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