Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — NAREIT 2007 REITweek
24 slides from Kite Realty Group Trust's conference presentation, Jun 5, 2007
Slide 1: NAREIT 2007 REITweek
NAREIT 2007 REITWEEK June 5-7, 2007
Slide 2: Disclaimer
DISCLAIMER This presentation may include certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements containe
Slide 3: Growth Metrics
GROWTH METRICS At IPO (8/11/04) As of 5/31/07 % Growth Share Price $13.00 $21.26 64% Enterprise Value $552M $1,414M 156% Total Return Since IPO 85% 1 (1) Assuming reinvestment of cash dividends. 3
Slide 4: Growth Metrics: Peer Group One Year Total Return
GROWTH METRICS Peer Group One Year Total Return Summary (April 1, 2006 – March 31, 2007) Source: National Association of Real Estate Investment Trusts, Inc. 4
Slide 5: Growth Metrics
GROWTH METRICS At IPO (8/11/04) As of 3/31/07 % Growth Current Development $130M $201M 55% Pipeline Visible Shadow Pipeline n/a $270M n/a Total Number of Properties 43 65 51% Total GLA1 6.1M 9.8M 61% Owned GLA1 4.2M 6.3M 50% Maintained focus on growing development pipeline to complement development
Slide 6: Southeast Strategy - Florida
SOUTHEAST STRATEGY - FLORIDA Information as of March 31, 2007 First Florida development was over 10 years ago Current portfolio includes 12 operating properties and 5 development projects in 9 Florida markets Florida comprises 22% of the operating portfolio annualized base rent and 32% of the operat
Slide 7: Southeast Strategy – North Carolina
SOUTHEAST STRATEGY – NORTH CAROLINA Information as of March 31, 2007 Acquired 100 acres in Cary, North Carolina for 750,000 square foot mixed- use development Acquired 105 acres in Apex, North Carolina for 345,000 square foot mixed- use development Together, these projects comprise 53% of the $270 m
Slide 8: Experienced Management
EXPERIENCED MANAGEMENT Proven Track Record: Timely resolution of issues with Ultimate Electronics, Winn-Dixie, and Marsh Supermarkets Dominick’s: Pursued early lease termination agreement followed by new lease execution with Caputo’s at Silver Glen Crossing Eli Lilly Early Lease Termination: Overcam
Slide 9: Glendale Town Center
GLENDALE TOWN CENTER Demolition of the enclosed mall area has commenced Target Corporation purchased 10.5 acres in April and will anchor the redevelopment with a projected store opening in summer 2008 Lowe’s Home Improvement, Macy’s, Kerasotes Theaters, Staples, and Indianapolis-Marion County Public
Slide 10: Glendale Town Center
r GLENDALE TOWN CENTER REALTY GROUP 38: STILL OPEN AT GLENDALE 2007 NAREIT Investor Forum June 5-7, 2007 10
Slide 11: Glendale Town Center
GLENDALE TOWN CENTER NORTH ELEVATION WEST ELEVATION 11
Slide 12: Development Process
DEVELOPMENT PROCESS FULLY INTEGRATED DEVELOPMENT PROCESS Land Procurement JV Market Pre- Asset Structures Leasing Construction & Research Development Management Development & Financing Mark John Gregg Todd Oswald Dan Doug George & Jeff Jenkins Fox Pedersen Poetz Meador McMannis Schroeder FULLY INTEG
Slide 13: Development Pipeline
DEVELOPMENT PIPELINE VALUE CREATION EMBEDDED IN CURRENT DEVELOPMENT PIPELINE Current Development Pipeline 1 $134M Visible Shadow Pipeline 1,2 $131M Total Pipeline Cost – KRG Share $265M Projected Yield 9.0% Projected NOI $23.9M Value at 6.25% Cap Rate $382M Less Cost (265M) Estimated Value Creation
Slide 14: Development Pipeline
DEVELOPMENT PIPELINE Information as of March 31, 2007 KRG Projected Total Estimated Project % Owned MSA 1 Cost (000s) Anchor Tenants Total GLA Target (non-owned), Staples, Tarpon Springs Plaza 100% Naples, FL 276,350 $28,000 Cost Plus, AC Moore Estero Town 40% Naples, FL 206,600 $20,000 Lowe's Home
Slide 15: Visible Shadow Pipeline
VISIBLE SHADOW PIPELINE Information as of March 31, 2007 Est. Total KRG % Estimated Est. Total Cost 1 Project Owned MSA Start Date 1 (000s) Potential Tenancy GLA Parkside Town 40% Raleigh, NC TBD 750,000 $118,000 TBD Commons 2 Grocery, Theater Delray Delray Beach, 50% TBD 318,000 $90,000 Jr. Boxes,
Slide 16: Mixed-Use Demand
MIXED-USE DEMAND Land use planners are driven by “Smart Growth” and “New Urbanism” approaches to development Requires developers to create plans for combined uses – retail, hotel, residential, and office Internal experience across products types is a strong advantage Kite Realty Group Mixed-Used Pro
Slide 17: Mixed-Use Demand: Parkside Town Commons
MIXED-USE DEMAND Parkside Town Commons - Cary, NC 100 acres adjacent to the Research Triangle Park First project in Prudential JV 750,000 SF of Estimated Total GLA1 (1) Total Estimated Cost and Estimated Total GLA based on preliminary site plans. 17
Slide 18: Mixed-Use Demand: Peakway at 55
MIXED-USE DEMAND Peakway at 55 - Apex, NC Continuation of North Carolina growth strategy 105 acres acquired 1st Quarter 2007 345,000 SF of Estimated Total GLA1 (1) Estimated Total GLA based on preliminary site plans. 18
Slide 19: Mixed-Use Demand: Delray Marketplace
MIXED-USE DEMAND Delray Marketplace – Delray Beach, FL Potential retail tenants include grocery, theater, jr. boxes, restaurants, and shops 318,000 SF of Estimated Total GLA1 $90,000,000 Total Estimated Cost1 (1) Total Estimated Cost and Estimated Total GLA based on preliminary site plans. 19
Slide 20: Mixed-Use Demand: Eddy Street Commons
MIXED-USE DEMAND Eddy Street Commons – South Bend, IN (Notre Dame) 20
Slide 21: Prudential Joint Venture
PRUDENTIAL JOINT VENTURE Efficient Capitalization – PREI’s balance sheet is expected to allow the joint venture to achieve 100 percent financing on land acquisition and construction costs Development Accretion – KRG’s capital outflows are expected to be aligned with FFO inflows Risk Management – Enc
Slide 22: Balance Sheet
BALANCE SHEET Information as of March 31, 2007 Fixed charge coverage – 2.8x Debt coverage ratio – 2.5x Debt to total market capitalization – 46% Approximately 126 acres of land held for future development in excess of current and visible shadow pipelines New $200 million unsecured line of credit wit
Slide 23: Operating Metrics
OPERATING METRICS For the Three Months Ended March 31, 2007 Selected Peer Group KRG Average 1 NOI / Revenue 72.6% 71.3% G&A / Revenue from Rental 6.3% 7.3% Properties Fixed Charge Coverage 2 2.8x 3.2x FFO Payout % 67% 64% Portfolio % Leased 94.9% 94.7% (1) Peer Group consists of KIM, DDR, AKR, REG a
Slide 24: Corporate Profile
CORPORATE PROFILE Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust engaged primarily in the ownership, operation, management, leasing, acquisition, construction, expansion, and development of high quality neighborhood and community shopping centers in sel