Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Debt Investor Presentation (November 2024)
17 slides from Kite Realty Group Trust's debt investor presentation, November 2024
Slide 1: Q3 2024 Fixed Income Investor Update
KITE: Waterford Lakes Village ~ Orlando, FL MSA | N Cc oO | E Centennial Gateway -Las Vegas, NV MSA. Q@3 2024 KRG UstED NYSE © 2024 Kite Realty Group | kiterealty.com Lincoln Park - Dallas / Fort Worth, TX MSA. Draper Peaks ~ Salt Lake City, UT MSA
Slide 2: Company Overview
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 for Fixed Income Investors
✓ 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: Operating Performance and Leasing Metrics
2016 2017 2018 2019 2020 2021 2022 2023 Q3 2024 2016 2017 2018 2019 2020 2021 2022 2023 Q3 2024 Driven by base rent growth and lower than expected bad debt Driven by improvements in occupancy and net tenant recoveries All-time high leasing volume at strong spreads Anchor and shop leased percentages
Slide 5: Balance Sheet Philosophy
Balance Sheet Philosophy No more than 15% of debt to come due ina single calendar year A well laddered maturity schedule is the best hedge against interest rates Respect your Net debt to Adjusted EBTIDA in Fund the business in a way that is transparent to operations (unencumbered NOI of at least 95%
Slide 6: Leverage, Coverage and Liquidity vs Peers
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 6.0x 5.6x 5.7x 5.1x 5.2x KRG PECO REG KIM BRX FRT AKR ROIC Note: Source of all peer data is from 3Q
Slide 7: Capitalization and Debt Summary
(% of Total Capitalization) Equity 2 Unsecured Debt - Public Bonds Unsecured Term Loans Unsecured Debt Fixed Rate Debt Variable Rate Debt Mortgage Debt JV Debt Unsecured Credit Facility Balance Outstanding Undrawn Portion of Credit Facility Cash and Cash Equivalents4 Total Liquidity Unsecured Debt S
Slide 8: Debt Covenants and Credit Ratings
Total Debt to Undepreciated Assets < 60% 36% 36% 36% 35% 36% Secured Debt to Undepreciated Assets < 40% 2% 2% 2% 2% 2% Undepreciated Unencumbered Assets to > 150% 287% 287% 290% 297% 294% Unsecured Debt Debt Service Coverage > 1.5x 4.7x 4.9x 5.1x 5.2x 5.3x Agency Credit Rating Outlook Last Review Da
Slide 9: Debt Maturity Profile
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033+ Note: Maturity profile assumes that all loan extension options are exercised by the Company.
Slide 10: Peer Credit Ratings Comparison
BBB / Baa2 / BBB NR / A3 / BBB+ A- / Baa1 / BBB+ NR / Baa1 / BBB+ Note: Company information is based on filings and supplementals as of September 30, 2024, for KRG, and REG and as of June 30, 2024 for FRT and KIM. 1. Source: FactSet market data as of October 28, 2024. 2. Uses most comparable metric
Slide 11: Key Takeaways
▪ ✓ Open-air retail is resilient and experiencing strong tailwinds ▪ ✓ KRG is one of the most efficient and effective operators in the space ▪ ✓ “Real estate first” Management team with 75+ years of collective experience in retail real estate ▪ ✓ One of the lowest net debt to EBITDA and highest debt
Slide 12: 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 (the “Securities Act”) and Section 21E of the Securities Exchange A
Slide 13: 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 14: EBITDA Definitions
EBITDA The Company defines EBITDA, a non-GAAP financial measure, as net income before interest expense, income tax expense of the taxable REIT subsidiaries, and depreciation and amortization. For informational purposes, the Company also provides Adjusted EBITDA, which it defines as EBITDA less (i) E
Slide 15: 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") (dollars in thousands) (unaudited) “Three Months Ended September 30. Nine Months Ended Seotember 30. 2024 2023 _ Change 2024 2023 _ Change Numbes of properties in same
Slide 16: Funds from Operations
KRG NYSE Appendix: Funds from Operations Kite Realty Group Trust Funds From Operations (“FFO”)'%™ (dollars in thousands, except per share amounts) (unaudited) ‘Three Months Ended Nine Months Ended ‘September 30, ‘September 30. 2024 2023 2024 2023 Net income (loss) $ 17053 $ 2177 $ = «(17,814) $ 40,2
Slide 17: 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”) (dollars in thousands) (unaudited) ‘Three Months Ended September 30,2024 Net income $ 17,053 Depreciation and amortization 96,656 Interest ex
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