Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Investor Presentation (December 2013)
33 slides from Kite Realty Group Trust's investor presentation, Dec 9, 2013
Slide 1: Rivers Edge, Indianapolis, IN
RIVERS EDGE Indianapolis, IN
Slide 2: Kite Realty Group
ri MITE REALTY GROUP
Slide 3: Kite Realty Group Trust
KITE REALTY GROUP * KITE REALTY GROUP TRUST TICKER SYMBOL :: KRG (NYSE since 2004) FOUNDED :: 1971 HEADQUARTERS :: Indianapolis, Indiana PORTFOLIO :: (1) 64 OPERATING RETAIL 2 OPERATING COMMERCIAL 5 REDEVELOPMENT 4 DEVELOPMENT 75 PROPERTIES SQUARE FOOTAGE :: (1) (MILLIONS) 11.4 OPERATING PROPERTIES
Slide 4: Retail Landscape
RETAIL LANDSCAPE Landlords with premium space are regaining leasing leverage as low supply growth is expected for several years. Capital recycling to enhance portfolio will continue. Debt market volatility has not shifted cap rates as expected. Retail store openings continue to increase. Heightened
Slide 5: 2013 Kite Strategy
KITE REALTY GROUP * 2013 KITE STRATEGY Executing our Strategic Objectives Stabilizing Delray Marketplace, Holly Springs Towne Center, Four Corner Square, and Parkside Town Commons. Holly Springs Phase I and Four Corner Square to be moved to operating portfolio in the fourth quarter. Leasing progress
Slide 6: Company Highlights
KITE REALTY GROUP * COMPANY HIGHLIGHTS As of September 30, 2013 (1) Including recent portfolio acquisition
Slide 7: Company Highlights
KITE REALTY GROUP * COMPANY HIGHLIGHTS FPO
Slide 8: Portfolio Dynamics
PORTFOLIO DYNAMICS
Slide 9: Meet Our Customers: Demographic Profile
KITE REALTY GROUP * MEET OUR CUSTOMERS DEMOGRAPHIC PROFILE – As of 9.30.13
Slide 10: Quality Retail Tenant Base
QUALITY RETAIL TENANT BASE * Annualized base rent represents the monthly contractual rent as of 9/30/2013 for each applicable tenant multiplied by 12. Annualized base rent does not include tenant reimbursements. Reflects Kite Standalone plus the Portfolio Acquisition’s annualized base rent (the mont
Slide 11: Development/Redevelopment Summary
KITE REALTY GROUP * DEVELOPMENT/REDEVELOPMENT SUMMARY PROPERTY PROPERTY STATE MAJOR TENANTS/ANCHORS PROJECTED COST COST TO DATE % LEASED / COMMITTED ACTUAL / PROJECTED OPENING DEVELOPMENT PROJECTS UNDER CONSTRUCTION DEVELOPMENT PROJECTS UNDER CONSTRUCTION DEVELOPMENT PROJECTS UNDER CONSTRUCTION DELR
Slide 12: Delray Marketplace
KITE REALTY GROUP * DELRAY MARKETPLACE DELRAY BEACH, FLORIDA KEY STATS OPENED : : Q4 2012 / Q1 2013 PROJECTED OWNED GLA : : 255,554 PROJECT COST : : $97.5M ANCHORED : : Publix, Frank Theatres/IMAX Cinebowl & Grille SHOPS : : Chico’s, White House | Black Market, Charming Charlie, JoS. A Bank, Apricot
Slide 13: Holly Springs Towne Center
KITE REALTY GROUP * HOLLY SPRINGS TOWNE CENTER HOLLY SPRINGS, NORTH CAROLINA KEY STATS OPENING : : Q1 2013 PROJECTED OWNED GLA : : 204,936 PROJECT COST : : $57M PRE-LEASED/COMMITTED : : 91.8% ANCHORED : : Target, Dick’s Sporting Goods, Marshall’s, Michael’s, PETCO SHOPS : : Charming Charlie, ULTA, P
Slide 14: Parkside Town Commons
KITE REALTY GROUP * PARKSIDE TOWN COMMONS RALEIGH, NORTH CAROLINA KEY STATS NEW DEVELOPMENT : : Phase I and II PROJECTED OWNED GLA : : 384,203 PROJECT COST : : $109M PRE-LEASED/COMMITTED : : 66.6% ANCHORED : : Target (non-owned), and Harris Teeter, PETCO, Frank Theatres, Golf Galaxy, Field & Stream
Slide 15: Parkside Town Commons Phase I and II
KITE REALTY GROUP * PARKSIDE TOWN COMMONS RALEIGH, NORTH CAROLINA PHASE I PHASE II
Slide 16: Four Corner Square
KITE REALTY GROUP * FOUR CORNER SQUARE MAPLE VALLEY, WASHINGTON KEY STATS REDEVELOPMENT : : Opened Q1 2013 PROJECTED OWNED GLA : : 108,523 PROJECT COST : : $27.5M PRE-LEASED/COMMITTED : : 90.8% ANCHORED : : Do It Best Hardware, Walgreens, Grocery Outlet
Slide 17: Recently Completed: Rangeline Crossing
KITE REALTY GROUP * RECENTLY COMPLETED RANGELINE CROSSING – Indianapolis, IN SUCCESSFULLY REDEVELOPED OWNED GLA : : 74,583 LEASED : : 91.8% ANCHORED : : Earth Fare, Walgreens, Old National Bank, Panera Bread
Slide 18: Capital Recycling Strategy: Acquisition/Disposition 2012-2013 Summary
QUALITATIVE CAPITAL RECYCLING STRATEGY:: KITE REALTY GROUP * ACQUISITION/DISPOSITION 2012-2013 SUMMARY Continue to dispose of lower tier or un-anchored assets while recycling the capital into quality operating assets with strong tenancy, credit stability, and growth prospects. (1) Approximate Purcha
Slide 19: Recent Acquisition Activity: Toringdon and Castleton Crossing
KITE REALTY GROUP * RECENT ACQUISITION ACTIVITY TORINGDON AND CASTLETON CROSSING– NORTH CAROLINA AND INDIANA TORINGDON MARKET LOCATION :: Charlotte, NC ACQUIRED :: August, 2013 PURCHASE PRICE :: $15.8M TOTAL GLA :: 60,000 OWNED GLA :: 60,000 ANCHOR :: EarthFare CASTLETON CROSSING LOCATION :: Indiana
Slide 20: Recent Acquisition Activity: Shoppes at Eastwood and Cool Springs Market
KITE REALTY GROUP * RECENT ACQUISITION ACTIVITY SHOPPES AT EASTWOOD AND COOL SPRINGS MARKET– FLORIDA AND TENNESSEE SHOPPES OF EASTWOOD LOCATION :: Orlando, FL ACQUIRED :: January, 2013 PURCHASE PRICE :: $11.6M TOTAL GLA :: 69,000 OWNED GLA :: 69,000 ANCHOR :: Publix COOL SPRINGS MARKET LOCATION :: N
Slide 21: Portfolio Acquisition Details
Portfolio Acquisition Details
Slide 22: Transaction Overview
TRANSACTION OVERVIEW * 9 shopping center portfolio encompassing approximately 2.5 million square feet of Total GLA Assets unencumbered 93.2% leased Located in Texas, Florida, Alabama and Georgia Approximately 38% of ABR is derived from two assets in Houston, Texas Accretive upon closing of the acqui
Slide 23: Investment Highlights: Transaction Merits
INVESTMENT HIGHLIGHTS Transaction Merits Enterprise Value ($bn) (1) Calculated per supplemental definition. The acquisition of the portfolio by Kite presents an attractive off-market investment. Complementary to Kite in terms of asset quality, tenant base and geographic distribution Substantial disc
Slide 24: Portfolio Geography
PORTFOLIO GEOGRAPHY 6 9 2 4 3 1 8 7 5 PORTOFINO Houston MSA 372,506 SF KINGWOOD COMMONS Houston MSA 164,366 SF COLONIAL SHOPPES AT CLAY Birmingham MSA 66,165 SF BURNT STORE Punta Gorda 95,023 SF HUNTER'S CREEK Orlando 119,729 SF BEECHWOOD Athens 342,217 SF LAKEWOOD Jacksonville 196,870 SF TRUSSVILLE
Slide 25: Operational Metrics/NOI Growth
OPERATIONAL METRICS/NOI GROWTH
Slide 26: Portfolio Operating Metrics
KITE REALTY GROUP * PORTFOLIO OPERATING METRICS FOCUS ON GROWING SMALL SHOP OCCUPANCY :: 7 Straight Quarters of Increased Small Shop Occupancy FOCUS ON OVERALL LEASING % GAINS :: 5 Consecutive Quarters of Total Leased % Growth RESULT :: REVENUE GROWTH
Slide 27: Property Operating Income, SS NOI Growth
KITE REALTY GROUP * PROPERTY OPERATING INCOME SS NOI GROWTH THE QUALITY OF OUR PORTFOLIO AND ASSET LOCATIONS ALLOWS US TO GENERATE SIGNIFICANT SAME PROPERTY NOI GROWTH.
Slide 28: Balance Sheet Activity
BALANCE SHEET ACTIVITY
Slide 29: Debt & Capital Market Updates
KITE REALTY GROUP * DEBT & CAPITAL MARKET UPDATES PRIMARY BALANCE SHEET INITIATIVES Manage floating rate debt to a target of less than 15% of total debt. De-levering in process to pro-forma of 7.3x net debt to EBITDA and additional progress via NOI growth, match funding acquisitions with equity, dev
Slide 30: Schedule of Debt Maturities
KITE REALTY GROUP * SCHEDULE OF DEBT MATURITIES(1) Chart excludes annual principal payments and net premiums on fixed rate debt. Reflects the Company’s exercise of its option to extend the maturity date of the Company’s revolving line of credit by one year to February 26, 2018.
Slide 31: Shareholder Objectives / Returns
SHAREHOLDER OBJECTIVES / RETURNS
Slide 32: Total Returns vs. Peer Group
TOTAL RETURNS VS. PEER GROUP Source: FactSet as of November 8, 2013. Note: Large Cap peers include: KIM, FRT, DDR, REG, WRI, RPAI and EQY. Small Cap peers include: AAT, AKR, BFS, ROIC, IRC, RPT, UBA, EXL and CDR. * S&P 500: 128.5% Large Cap Peers: 112.0% Small Cap Peers: 117.6% Kite: 119.8% MSCI US
Slide 33: Forward-Looking Statements
KITE REALTY GROUP * This presentation contains certain statements that are not historical fact and may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and
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