Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Investor Presentation (November 2016)
26 slides from Kite Realty Group Trust's investor presentation, Nov 15, 2016
Slide 1: Investor Update Q3 2016
INVESTOR UPDATE Q3 2016 City Center (White Plains, NY) Eddy Street Commons (South Bend, IN)
Slide 2: Company Snapshot
© 2016 Kite Realty Group kiterealty.com Investor Update | 2 COMPANY SNAPSHOT KITE REALTY GROUP TRUST Note: All data as of 09/30/16 unless otherwise noted. 1.) Source: SNL; Dividend yield calculated as most recent dividend, annualized and expressed as a percent of the security price. 2.) Demographic
Slide 3: KRG Provides Attractive Investment Opportunity
© 2016 Kite Realty Group kiterealty.com Investor Update | 3 KRG PROVIDES ATTRACTIVE INVESTMENT OPPORTUNITY 1.) Source: SNL Financial; Total Return (RMS Index) and implied dividend contribution (estimated as RMS less RMZ index) from December 2009 – October 2016. 2.) 2016E FFO per share refers to cons
Slide 4: Corporate Identity & Operations
CORPORATE IDENTITY & OPERATIONS
Slide 5: Company and Portfolio Transformation Since 2010
© 2016 Kite Realty Group kiterealty.com Investor Update | 5 $1.70 $2.06 2010 2016E Transformed 86% of portfolio into higher-quality assets since 2010 (1) Obtained investment grade rating by Moody’s and S&P (Baa3 / BBB-) Executed inaugural private placement bond deal in 2015 Increased free ca
Slide 6: Kite Consistently Maintains Top-Tier SSNOI Growth
© 2016 Kite Realty Group kiterealty.com Investor Update | 6 KITE CONSISTENTLY MAINTAINS TOP-TIER SSNOI GROWTH 4.8% 4.3% 3.9% 3.7% 3.4% 3.2% 3.2% 3.1% 2.7% 2.6% 2.9% 2.6% 1.8% ROIC AKR KRG EQY BRX REG WRI DDR RPT FRT RPAI KIM CDR QUARTERLY AVERAGE SSNOI GROWTH FROM Q3’14-Q3’16 (1) Peer average ~3.2%
Slide 7: Continued Operational Efficiencies Within Portfolio
© 2016 Kite Realty Group kiterealty.com Investor Update | 7 CONTINUED OPERATIONAL EFFICIENCIES WITHIN PORTFOLIO 85.4% 85.7% 89.0% 91.3% 90.1% 89.2% 89.4% 95.9% 95.3% 94.9% 94.9% 95.4% 95.4% 95.2% Q3'13 Q1'14 Q3'14 Q1'15 Q3'15 Q1'16 Q3'16 % Recovery - Retail Portfolio % Leased - Retail Portfolio 1.)
Slide 8: High-Quality Portfolio
HIGH-QUALITY PORTFOLIO
Slide 9: High-Quality, Diverse Tenant Base and Geography
© 2016 Kite Realty Group kiterealty.com Investor Update | 9 Midwest 17.0% Northeast 11.1% Mid- Central 17.3% West 12.1% Southeast 17.5% Florida 25.0% HIGH-QUALITY, DIVERSE TENANT BASE AND GEOGRAPHY Top Tenants By ABR # Stores % ABR 1 Publix 18 3.1% 2 TJ Maxx 22 2.5% 3 Petsmart 20 2.4% 4 Bed Bath & B
Slide 10: Asset Quality Supported by Market Demographics
© 2016 Kite Realty Group kiterealty.com Investor Update | 10 ASSET QUALITY SUPPORTED BY MARKET DEMOGRAPHICS ASSETS ACROSS THE TOP 5 MARKETS SUPERIORLY POSITIONED Average Household Income ($000s) Source: STI: Popstats; information based on a 3-mile radius for the KRG portfolio. $76 $92 $83 $77 $72 $6
Slide 11: Necessity Driven and Internet Resistant Retailer Base
© 2016 Kite Realty Group kiterealty.com Investor Update | 11 INTERNET RESISTANT 54% SERVICES, ENTERTAINMENT 19% GROCERY, SPECIALTY STORES 19% RESTAURANTS 16% OMNI-CHANNEL 38% DISCOUNT RETAILERS 15% HOME IMPROVEMENT/GOODS 11% SOFT GOODS 8% SPORTING GOODS 4% NON-RESISTANT 8% ELECTRONICS / BOOKS 5% OFF
Slide 12: Portfolio Transformation
PORTFOLIO TRANSFORMATION
Slide 13: 3-R Opportunities & In-Process Redevelopment Projects
© 2016 Kite Realty Group kiterealty.com Investor Update | 13 3-R OPPORTUNITIES & IN-PROCESS REDEVELOPMENT PROJECTS 3-R PLATFORM Redevelop: substantial renovations; e.g. teardowns, remerchandising, exterior / interior improvements Repurpose: substantial alterations including changing the product-
Slide 14: Portofino Case Study: A Two-Phased Project
© 2016 Kite Realty Group kiterealty.com Investor Update | 14 PORTOFINO CASE STUDY: A TWO-PHASED PROJECT PORTOFINO SHOPPING CENTER, PHASE I Demolition/expansion of existing vacant space to accommodate Nordstrom Rack Rightsizing existing Old Navy store Sports Authority box acquired at auction by
Slide 15: Castleton Crossing Repositioning Case Study
© 2016 Kite Realty Group kiterealty.com Investor Update | 15 CASTLETON CROSSING REPOSITIONING CASE STUDY AFTER Existing structure demolished; construction of new outparcel shop building Total Projected Cost: $3,000-$4,000 % Total Cost Spent: 60% Projected ROI: 11.5%-12.0% Estimated Stabili
Slide 16: Proven Ability to Create Ongoing Synergies
© 2016 Kite Realty Group kiterealty.com Investor Update | 16 PROVEN ABILITY TO CREATE ONGOING SYNERGIES N O I M A R G IN 69.3% 79.7% PRE-TRANSACTION Q3'16 72.1% 75.9% PRE-TRANSACTION Q3'16 R EC O V ER Y R A TI O 70.1% 84.4% PRE-TRANSACTION Q3'16 80.5% 91.4% PRE-TRANSACTION Q3'16 9 Property Portfolio
Slide 17: Investment Grade Balance Sheet
INVESTMENT GRADE BALANCE SHEET
Slide 18: Resilient Balance Sheet
© 2016 Kite Realty Group kiterealty.com Investor Update | 18 RESILIENT BALANCE SHEET Moody’s / S&P Ratings: Baa3 / BBB- Fixed Charge Coverage: 3.5x (1) Net Debt / Adjusted EBITDA: 6.9x Secured Debt / Undepreciated Total Assets: 17.7% Unencumbered Assets / Total Assets: ~63% Weighted Aver
Slide 19: Efficient Funding Structure Relative to Peers
© 2016 Kite Realty Group kiterealty.com Investor Update | 19 EFFICIENT FUNDING STRUCTURE RELATIVE TO PEERS DDR RPAI BRX REG EQY RPT WRI KRG ROIC KIM WEIGHTED AVERAGE MATURITY SCHEDULE AND WEIGHTED AVERAGE INTEREST RATE Note: Peer data sourced from supplemental information as of 09/30/16. Weighted Av
Slide 20: Well-Staggered Debt Maturity Profile
© 2016 Kite Realty Group kiterealty.com Investor Update | 20 WELL-STAGGERED DEBT MATURITY PROFILE PRO FORMA SCHEDULE OF DEBT MATURITIES (1) 7 39 45 171 215 215 12 44 200 200 95 80 75 300 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026+ Mortgage Debt Line of Credit Term Loan Private Placement
Slide 21: Forward-Looking Statements
© 2016 Kite Realty Group kiterealty.com Investor Update | 21 FORWARD-LOOKING STATEMENTS This supplemental information package contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such state
Slide 22: Non-GAAP Financial Measures: Funds from Operations
© 2016 Kite Realty Group kiterealty.com Investor Update | 22 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. We calculate FFO in accor
Slide 23: Non-GAAP Financial Measures: EBITDA
© 2016 Kite Realty Group kiterealty.com Investor Update | 23 NON-GAAP FINANCIAL MEASURES Earnings Before Interest Expense, Income Tax Expense, Depreciation and Amortization (EBITDA) We define EBITDA, a non-GAAP financial measure, as net income before depreciation and amortization, interest expense a
Slide 24: Appendix – Reconciliation of FFO to Net Income (Loss)
© 2016 Kite Realty Group kiterealty.com Investor Update | 24 APPENDIX – RECONCILIATION OF FFO TO NET INCOME (LOSS) 1.) “Funds From Operations of the Kite Portfolio" measures 100% of the operating performance of the Operating Partnership’s real estate properties and construction and service subsidiar
Slide 25: Appendix – Reconciliation of Same Property NOI to Net Income
© 2016 Kite Realty Group kiterealty.com Investor Update | 25 APPENDIX – RECONCILIATION OF SAME PROPERTY NOI TO NET INCOME 1.) Same property analysis excludes operating properties in redevelopment as well as office properties (Thirty South Meridian and Eddy Street Commons). 2.) Excludes leases that a
Slide 26: Appendix – Reconciliation of EBITDA / Adjusted EBITDA to Net Income (Loss)
© 2016 Kite Realty Group kiterealty.com Investor Update | 26 APPENDIX – RECONCILIATION OF EBITDA / ADJUSTED EBITDA TO NET INCOME (LOSS) 1.) Represents Adjusted EBITDA for the three months ended September 30, 2016 (as shown in the table above) multiplied by four. 2.) Partner share of consolidated joi
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