Kite Realty Group Trust · NYSE:KRG

Kite Realty Group Trust — Investor Presentation (November 2015)

19 slides from Kite Realty Group Trust's investor presentation, Nov 16, 2015

  1. Slide 1: Investor Update November 2015

    INVESTOR UPDATE November 2015 Chapel Hill (Dallas, TX) Livingston Center (Livingston, NJ)

  2. Slide 2: Kite Realty's Strategic Priorities

    © 2015 Kite Realty Group kiterealty.com Investor Update | 2 KITE REALTY’S STRATEGIC PRIORITIES OPERATIONAL EXCELLENCE HIGH‐QUALITY PORTFOLIO PORTFOLIO UPGRADE FINANCIAL FLEXIBILITY  Long‐standing, experienced management team  Industry‐leading operating metrics  ~4.4% same‐store NOI growth over la

  3. Slide 3: Operational Excellence

    OPERATIONAL EXCELLENCE

  4. Slide 4: Top Tier Operating Efficiency

    © 2015 Kite Realty Group kiterealty.com Investor Update | 4 TOP TIER OPERATING EFFICIENCY 4.3% 5.1% 5.2% 6.2% 6.2% 6.6% 7.0% 7.2% 7.6% 9.7% 9.8% WRI FRT KRG ROIC RPT DDR BRX RPAI KIM REG EQY G&A / Revenues (%) 75.9% 75.6% 74.7% 73.2% 72.9% 72.1% 71.5% 71.0% 70.1% 69.5% 69.4% BRX ROIC KRG REG EQY KIM

  5. Slide 5: Historical NOI Growth Outperforms Sector

    © 2015 Kite Realty Group kiterealty.com Investor Update | 5 HISTORICAL NOI GROWTH OUTPERFORMS SECTOR 4.4% 4.9% 4.9% 4.7% 4.4% 4.7% 4.8% 4.4% 3.7% 3.1% 0.0 1.0 2.0 3.0 4.0 5.0 Same‐Property NOI Growth (%) KRG Historical avg. 4.4% Peer avg.⁽¹⁾ ~3.2% 1. Peers include AKR, BRX, CDR, DDR, EQY, FRT, KIM,

  6. Slide 6: High-Quality Portfolio

    HIGH‐QUALITY PORTFOLIO

  7. Slide 7: High-Quality Portfolio Improves Further

    © 2015 Kite Realty Group kiterealty.com Investor Update | 7 Grocery Anchored, 14% Hybrid (Power W/ Grocery), 53% Power / Regional Center, 31% Other, 2%⁽²⁾ HIGH‐QUALITY PORTFOLIO IMPROVES FURTHER 1. As of 09/30/15. Includes operating retail portfolio. 2. Other includes office, unanchored strip center

  8. Slide 8: Over 70% of ABR from Top MSAs

    © 2015 Kite Realty Group kiterealty.com Investor Update | 8 OVER 70% OF ABR FROM TOP 50 MSAs 46% of FL’s ABR from Top 50 MSA 60% of the SE’s ABR from Top 50 MSA 82% of the NE’s ABR from Top 50 MSA 77% of the Midwest’s ABR from Top 50 MSA 92% of TX/OK’s ABR from Top 50 MSA 94% of the West’s ABR from

  9. Slide 9: Diverse, High-Quality Revenue Stream

    © 2015 Kite Realty Group kiterealty.com Investor Update | 9 DIVERSE, HIGH‐QUALITY REVENUE STREAM Top Tenants By ABR # Stores % ABR 1 Publix 18 3.2% 2 TJ Maxx 21 2.4% 3 PetSmart 18 2.1% 4 Bed Bath & Beyond 17 2.0% 5 Ross Dress For Less 17 2.0% 6 Lowe’s 5 1.9% 7 Office Depot / Max 18 1.9% 8 Dick’s Spo

  10. Slide 10: In-Process Projects & the 3-R's Redevelopment Pipeline

    © 2015 Kite Realty Group kiterealty.com Investor Update | 10 IN‐PROCESS PROJECTS & THE 3‐R’S REDEVELOPMENT PIPELINE: THE 3 R’S Financial FlexibilityPortfolio UpgradeOperational Excellence High‐Quality Portfolio Parkside Town Commons – Phase II (Raleigh, NC)  Redevelop: substantial renovations; e.g.

  11. Slide 11: Efficient Capital Allocation to Benefit NAV

    © 2015 Kite Realty Group kiterealty.com Investor Update | 11 EFFICIENT CAPITAL ALLOCATION TO BENEFIT NAV Using free cash flow to fund redevelopment pipeline yields high return on capital and boosts portfolio NAV ~$50mm in free cash flow for 2015FY ~$120mm of 3 R’s; with ~10% average return Portfolio

  12. Slide 12: Portfolio Upgrade

    PORTFOLIO UPGRADE

  13. Slide 13: Recap of Transformation and 2016 Outlook

    © 2015 Kite Realty Group kiterealty.com Investor Update | 13 RECAP OF TRANSFORMATION AND 2016 OUTLOOK Parkside Town Commons – Phase II (Raleigh, NC) Financial FlexibilityPortfolio UpgradeOperational Excellence High‐Quality Portfolio ACTIONS TAKEN TO‐DATE  Completed $320mm 15‐asset disposition in De

  14. Slide 14: Strategic Initiative Results

    © 2015 Kite Realty Group kiterealty.com Investor Update | 14 STRATEGIC INTIATIVE RESULTS $13.02 $19.71 Dispositions Acquisitions 50% Improvement In ABR per SF 50% Increase $74K $107K Dispositions Acquisitions 45% Increase In Household Income Note: Dispositions include the 15‐ asset disposition which

  15. Slide 15: Balance Sheet

    BALANCE SHEET

  16. Slide 16: Strong Balance Sheet & Capital Position

    © 2015 Kite Realty Group kiterealty.com Investor Update | 16 STRONG BALANCE SHEET & CAPITAL POSITION 9.7x 8.6x 7.4x 6.5x ~6.0x-6.5x 2011 2012 2013 2014 Long-Term Objective ~$9mm ~$50mm 2013 2015E >4.5x Free Cash Flow Growth ANNUAL FREE CASH FLOW GROWTH Financial FlexibilityPortfolio UpgradeOperation

  17. Slide 17: Well-Staggered Debt Maturity Profile

    © 2015 Kite Realty Group kiterealty.com Investor Update | 17 WELL‐STAGGERED DEBT MATURITY PROFILE $132 $17 $64 $0 $446 $173 $359 $277 $167 0 100 200 300 400 500 600 700 2016 2017 2018 2019 2020 2021 2022 2023 2024+ Mortgage Debt Term Loan Construction Debt Senior Unsecured Notes ($mm) 1. Chart exclu

  18. Slide 18: Key Investor Takeaways from the Kite Team

    © 2015 Kite Realty Group kiterealty.com Investor Update | 18 KEY INVESTOR TAKEAWAYS FROM THE KITE TEAM Redeeming $102.5mm 8.25% Preferred On Dec. 7, 2015  Lowers average debt cost by ~25 bps; improves financial flexibility Free Cash Flow To Fund Redevelopments  Highest‐returning investment for our

  19. Slide 19: Forward-Looking Statements

    © 2015 Kite Realty Group kiterealty.com Investor Update | 19 This presentation, 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 Ex

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