Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Investor Presentation (May 2015)
27 slides from Kite Realty Group Trust's investor presentation, May 15, 2015
Slide 1: Investor Update May 2015
Pi KITE INVESTOR UPDATE May 2015, KRG 8885775600 _kiterealty.com NYSE.
Slide 2: Company Snapshot
COMPANY SNAPSHOT KITE 4 KITE REALTY GROUP TRUST 4. Headquarters Indianapolis, IN NYSE Ticker KRG Share Price $28.53 Las Voom Market Capitalization $2.5bn Enterprise Value $3.9bn Dividend Yield @ 3.9% ote Cees referenced denote repana! office locations 3-YEAR TOTAL RETURNAS OF 12/31/14 ABR BY GEOGRAP
Slide 3: What Differentiates Kite?
4 WHAT DIFFERENTIATES KITE? KITE *% 1) Long di team & strong corporate governance @ 13% dividend growth over the last 12 months 3) Robust platform results in top tier operational efficiencies Osimpie corporate structure allows for nimble execution 5) Diverse, high-quality portfolio; ABR: $15.20 Osst
Slide 4: Proven Track Record
, PROVEN TRACK RECORD KITE = v 31-year v 3.7% S Gonrd slacteid srnuelly ford. yeurtarm ¥ Majority voting for director elections v Y sof strustees (89%) are independent v 100% board committee independence v v No poison pill v No stockholder rights plan Peer Median aris 2014 YE Qi'15 2 ©2015 kixeReaty
Slide 5: Achieving Peak Operating Performance
@achievine PEAK OPERATING PERFORMANCE mare & W indie and integrated top tier operating systems # tivan corporate structure that is simple and nimble a icieint tax effort focused on maximizing efficiencies re waste removal platform ¥" tceenpcananmmton itiati ding th h portfolio v Tenant mentorship in
Slide 6: Top Tier Operating Efficiency
@rt0P TIER OPERATING EFFICIENCY KITE 4 Kite efficiency metrics are among - Pi G&A / Revenues (% the best in the industry ps a 7 i 94% 9.9% = 9.9% L f : DDR KIM REG)—sRPT.-—s EQY—EXL NOI Margin (%) 71.0% 70.9% 70.8% 3 70.2% 9.7% € 68.9% RPT KIM RPAI DDR WRI FRT Sure: A of E2024 par campary fi © 2015k
Slide 7: Simple Corporate Structure
Q@simpte CORPORATE STRUCTURE KITE = Overview of Joint Venture Exposure ingoing Strategy And Rationale v Simple structure versus peer group ¥ Maintain simplicity for greatest flexibility v <1% of EBITDA attributable to JV exposure v Ability to improve health and quality of assets v <$45mm in JV expos
Slide 8: Portfolio Overview
PORTFOLIO OVERVIEW
Slide 9: Over 70% of ABR from Top MSAs
@over 70% OF ABR FROM TOP 50 MSAs KITE = Regional Approach Proves Impactful As Majority Of Portfolio Income From Top Markets 77% of the 4 ‘Midwest's ABR from ~ 94% of the West's ABR from Top 50 MSA 90% of TX/OK’s ABR 2 R 73% of the NE’s from Top 50 MSA ABR from Top 50 MSA 64% of the SE’s ABR from To
Slide 10: Portfolio Overview
© portFOLio OVERVIEW KITE % ABR INCREASED TO $15.20 AND MORE THAN 66% OF ASSETS INCLUDE A GROCERY ENT COMPON! Summary Statistics ) ication By ABR () Number of Properties 117 By Property Type Number of States 22 Total GLA (SF) 23.3mm Owned GLA (SF) 16.2mm Total Leased (Owned SF) 94.8% Shop Leased (Ow
Slide 11: Top Tier Grocers Anchor Our Portfolio
@ Top TIERGROCERS ANCHOR OUR PORTFOLIO s«iFE # Earth Fare 2% Whole Foods 3% Marsh 3% g Target 22% Publix 14% Walmart / Sam's Club 21% kiterealty.com
Slide 12: Credit Strength of Portfolio
@creDIT STRENGTH OF PORTFOLIO 4 TOP 10 TENANTS BY ABR STRONG MIX OF TENANTS ACROSS OUR DIVERSIFIED PORTFOLIO Continued support of strong tenants further enhances the quality and strength of our assets; limited exposure to any single tenant provides additional insulation from the retail industry cycl
Slide 13: Key Submarkets Drive Future Growth
Okey SUBMARKETS DRIVE FUTURE GROWTH KITE = WITHIN TOP 5 STATES Kite’s centers well peaitlonei for growth due to demographic profile and affluent consumer base across the portfolio’s largest 5 markets Average Household Income ($000s) aldal Florida Indiana Texas North Carolina ™ State Average = KRG cc
Slide 14: Development Expertise Enhances Core Retail Focus
© DIveRSE DEVELOPMENT CAPABILITIES DEVELOPMENT EXPERTISE ENHANCES CORE RETAILFOCUS KITE = incremental returns and insulates profit from economic cycl 4 Development background and expertise in mixed-use products provides opportunity for Kite to produce Development Background & Expertise Incremental R
Slide 15: Maximizing Incremental Return
4 xxo © maximizinG INCREMENTAL RETURN KiTE # RISK MITIGATING FACTORS FACILITATE MIXED-USE RETURNS ® Ability to develop profitable real estate despite challenging environments and rising land costs = : Maintained control and upside potential while developing partnerships in non-retail components ® Fo
Slide 16: Consistent Operators of Quality Assets
@consisTENT OPERATORS OF QUALITY ASSETS KITE # Same-Property NOI Growth > 4% For Over 2 Years Growing ABR Through High Quality Assets 6.0 2 ey » 5 2.0 Same-Property NOI Growth (%) sa 4. 4a7 47 : &, %, %® %,. Ye ae Me 49 4.9 Q, % %® %, %. Ne, es, ~ MWe, Base Rent Per Owned GLA $15.50 $15.15 $15.20 $1
Slide 17: Future Growth Initiatives
FUTURE GROWTH INITIATIVES
Slide 18: Portfolio NOI Growth Composition
© PORTFOLIO NOI GROWTH COMPOSITION KITE 4% ANNUAL NOI GROWTH FACTORS Expect average annual NOI growth to stem from a number of factors over the next 24 months; additional growth to come from external opportunities. = aa F a be opportunities from $80mm to $125mm Gaeredcnal "Contractual rent bumps to
Slide 19: Redevelopment Composition by Type
REDEVELOPMENT COMPOSITION BY TYPE P| kro MITE = THE 3 R’S: The $100mm in redevelopment estimated over the next 18-24 months can be broken down into the 3 categories: redevelopment, repositioning and repurposing. a Restlege Nashville Houston Gptimittag et tenant hiss minor asset enhar Reposition Rede
Slide 20: Acquisition Case Study: Colleyville Downs
ACQUISITION CASE STUDY: COLLEYVILLE DOWNS aTE % ® Overview: Large shopping center located in the MSA of Dallas, TX specifically, in Colleyville, an affluent suburb between Dallas and Ft. Worth Texas ® GLA: 201,000 SF Leased: 92% leased at time of closing Opportunity: Newly-opened Whole Foods and bel
Slide 21: Balance Sheet
BALANCE SHEET
Slide 22: Strong Balance Sheet & Capital Allocation
STRONG BALANCE SHEET & CAPITALALLOCATION «mE = Net Debt/ EBITDA Muttiple BALANCE SHEET OBJECTIVES 10.0x = Maintain and improve investment grade ratings over the medium to long-term 9.0x = Maintain net debt / EBITDA around6.0x = Maintain fixed charge above 2.5x 8.0x = Reduce floating rate exposure to
Slide 23: Well-Staggered Debt Maturity Profile
WELL-STAGGERED DEBT MATURITY PROFILE KITE 4 KRG’s Debt Maturity Schedule () ($mm) ($500) <— Another $147mm of additional line expansion capacity available 500 $200 300 76 $261 $2 ms 200 $178 $164 100 $74 71 $50 . Baal = o = Revolver 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026+ ™ Mort
Slide 24: Industry Update
INDUSTRY UPDATE
Slide 25: Real Estate Returns to Remain Attractive
REAL ESTATE RETURNS TO REMAIN ATTRACTIVE KITE 4 REAL ESTATE RETURNS ABLE TO WITHSTAND A POTENTIAL RISE IN RATES The spread between strip REIT implied cap rates and triple-8 corporate bond yields remains elevated to the industry’s peak, providing meaningful cushion for any potential rate increase ove
Slide 26: Retailer Openings
RETAILER OPENINGS DESPITE MODEST P| Ro KITE = SUPPLY / EMAINS Demand for retail continues to be attractive as retail supply remains 65% below 15-year average; industry data supports non-mall retail markets as evidenced by recent openings in the secto Wea SESS FROM NON-MALL RETAIL TENANTS 1,500 lt at
Slide 27: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS KITE = This resentation, together wh ter statements and information publicly disseminated by us, contin cetsin fewardiookng statements within the 1933 and Section 21E 1934. . many of which cannot be be anticipated. Future events and actual results, performance, transaction
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