Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Investor Presentation (September 2018)
18 slides from Kite Realty Group Trust's investor presentation, Sep 24, 2018
Slide 1: Investor Update September 2018
September 2018. 5) INVESTOR UPDATE KRG 8885775600 _kiterealty.com NYSE
Slide 2: Kite Realty Group Trust company overview
Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust (REIT) that provides communities with convenient and beneficial shopping experiences. We connect consumers to tenants in desirable markets through our portfolio of open-air shopping centers. Using operation
Slide 3: Why Kite? Company snapshot and KRG facts
WHY KITE? KRG FACTS • High-quality, geographically Number of Properties 115 September 2018 balanced portfolio with Total GLA (SF) 22.5mm INVESTOR UPDATE diverse tenant base Total Retail Operating Portfolio Leased 93.6% • Self-funded redevelopment, Percent Leased Anchors 95.0% Percent Leased Shops
Slide 4: Building value and critical mass around regional footprints
BUILDING VALUE AND CRITICAL MASS AROUND REGIONAL FOOTPRINTS September 2018 INVESTOR UPDATE Focused on experiential and diverse tenant offerings % of ABR derived from top 50 MSAs HIGH-QUALITY 75 and destination locations1 PORTFOLIO 93% of tenants are service/specialty/multi-channel % of ABR derived f
Slide 5: High-quality strategic portfolio dispositions
HIGH-QUALITY STRATEGIC PORTFOLIO DISPOSITIONS $155 MILLION IN DISPOSITIONS OVER THE LAST SEVEN QUARTERS IMPROVED ABR IMPROVED HOUSEHOLD INCOME IMPROVED POPULATION DENSITY $89,325 164,932 $16.66 $64,430 114,530 $11.78 DISPOSITIONS KRG Q2’18 OPERATING DISPOSITIONS KRG Q2’18 OPERATING DISPOSITIONS KRG
Slide 6: High-quality geographic portfolio diversity
HIGH-QUALITY GEOGRAPHIC PORTFOLIO DIVERSITY 75% OF ABR FROM TOP 50 MSAs AND DESTINATION LOCATIONS, INCLUDING HIGH-GROWTH MARKETS NEW YORK AVERAGE PROJECTED HOUSEHOLD INCOME: POPULATION GROWTH: $153,291 1.5% INDIANAPOLIS AVERAGE PROJECTED HOUSEHOLD INCOME: POPULATION GROWTH: $99,357 6.0% CHARLOTTE/RA
Slide 7: High-quality strategic portfolio asset mix
HIGH-QUALITY STRATEGIC PORTFOLIO ASSET MIX PROPERTY CLASSIFICATION BY ABR1 COMMUNITY % NEIGHBORHOOD CENTER/ % POWER CENTER % 57 LIFESTYLE CENTER/ 24 19 CENTER PORTFOLIO OF ABR OTHER PORTFOLIO OF ABR PORTFOLIO OF ABR Average 2018 Average 2018 Average 2018 Household Income $90,918 Household Income $88
Slide 8: High-quality diverse portfolio tenant base
HIGH-QUALITY DIVERSE PORTFOLIO TENANT BASE Top 10 Tenants by ABR1 Credit Rating2 # Stores1 % ABR1 RECENT LEASE ACTIVITY EXAMPLES 1 Publix Supermarkets, Inc. NR 14 2.5% 2 The TJX Companies, Inc. A+ 21 2.5% 3 Bed Bath & Beyond, Inc. BBB- 19 2.3% 4 Petsmart, Inc. CCC 18 2.1% 5 Ross Stores, Inc. A- 17 2
Slide 9: Tenant base positioned for evolving consumer preferences
HIGH-QUALITY DIVERSE PORTFOLIO TENANT BASE WELL-POSITIONED TO MANAGE EVOLVING CONSUMER PREFERENCES % 17.3 RESTAURANTS % SERVICES, ENTERTAINMENT 21.6 % 15.5 GROCER, SPECIALTY STORES TENANT TYPE % OFFICE SUPPLIES 1.9 COMPOSITION BY ABR % SPORTING GOODS 3.4 % ELECTRONICS / BOOKS 5.0 % 12.9 SOFT GOODS %
Slide 10: Embedded NOI growth opportunities in portfolio
EMBEDDED NOI GROWTH OPPORTUNITIES IN PORTFOLIO September 2018 INVESTOR UPDATE • $3.9mm of additional cash NOI from in-process 3-R 3-R INITIATIVE / and transitional projects DEVELOPMENT / ACQUISITIONS • Identified 3-R opportunities with a total cost of$40mm - $56mm and projected returns of 9-11% OP
Slide 11: Kite's 3-R platform returns and overview
KITE'S 3-R PLATFORM HAS GENERATED ATTRACTIVE RISK-ADJUSTED RETURNS, IMPROVING CASH FLOW AND ASSET QUALITY. September 2018 REDEVELOP REPURPOSE REPOSITION INVESTOR UPDATE Substantial renovations, Significant property Less substantial asset including teardowns, alterations, including enhancements, gene
Slide 12: 3-R return on investment supported by new tenants
3-R RETURN ON INVESTMENT SUPPORTED BY NEW, HIGH-QUALITY TENANTS September 2018 INVESTOR UPDATE Property Former Tenants/Spaces Replacement Tenants Beechwood Promenade Underutilized Shop Space MSA: Athens, GA Bolton Plaza Vacant Shops OPERATIONS MSA: Jacksonville, FL AND GROWTH OPPORTUNITIES Burnt Sto
Slide 13: Investment grade balance sheet debt maturity profile
INVESTMENT STRONG GRADE BALANCE Well-Staggered Debt Maturity Profile SHEET BALANCE SHEET SCHEDULE OF DEBT MATURITIES ($ IN MILLIONS)1 200.0 375.0 200.0 95.0 213.5 9.1 181.9 Only $37.7mm of debt 167.0 maturing through 2020 80.0 37.7 7.8 10.4 10.4 2018 2019 2020 2021 2022 2023 2024 2025 2026+ MORTGAGE
Slide 14: Disclaimer: forward-looking statements
DISCLAIMER FORWARD-LOOKING STATEMENTS This supplemental information package, together with other statements and information publicly disseminated by us, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Excha
Slide 15: Non-GAAP financial measures: Funds from Operations
NON-GAAP FINANCIAL MEASURES FUNDS FROM OPERATIONS Funds from Operations (FFO) is a widely used performance measure for real estate companies and is provided here as a supplemental measure of operating performance. The Company calculates FFO, a non-GAAP financial measure, in accordance with the best
Slide 16: Non-GAAP financial measures: NOI and Same Property NOI
NON-GAAP FINANCIAL MEASURES NET OPERATING INCOME AND SAME PROPERTY NET OPERATING INCOME The Company uses property net operating income (“NOI”), a non-GAAP financial measure, to evaluate the performance of our properties. The Company defines NOI as income from our real estate, including lease termina
Slide 17: Appendix – Reconciliation of Same Property NOI to Net Income
APPENDIX – RECONCILIATION OF SAME PROPERTY NOI TO NET INCOME SAME PROPERTY NET OPERATING INCOME (NOI) ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, % % 2018 2017 Change 2018 2017 Change Number of properties for the quarter1 102 102 Leased percentage at period end 93.7% 94.7%
Slide 18: Contact details
30 S MERIDIAN STREET SUITE 1100 INDIANAPOLIS, IN 46204 888 577 5600 kiterealty.com
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