Kite Realty Group Trust · NYSE:KRG
Kite Realty Group Trust — Investor Presentation (November 2009)
18 slides from Kite Realty Group Trust's investor presentation, Nov 12, 2009
Slide 1: Kite Realty Group Trust Investor Presentation
Kite Realty Group Trust Investor Presentation Information as of September 30, 2009
Slide 2: Company Overview
§ Stable Operating Portfolio § 55 Operating Properties in 9 states § 91.2% leased § Diverse tenant base § Strong demographics § Increased Leasing Productivity § 400,000 square feet of productivity in Q2 and Q3 § Targeting another 200,000 square feet for Q4 § Strengthened leasing team and revised com
Slide 3: Diverse Tenant Base
(1) Annualized base rent represents the monthly contractual rent for September 2009 for each applicable tenant multiplied by 12. (2) S&P credit ratings for parent company as of 11/5/2009. § Largest single retail tenant comprises only 3.3% of total annualized base rent § Top 10 retail tenants account
Slide 4: Diverse Tenant Base: Peer Group Top Tenant Assessment
Kroger Bed Bath Beyond Home Depot Publix TJ Maxx Wal-Mart/ Sam’s Kroger Supervalu A&P Publix Giant Foods Peer Group Assessment: Top Tenant as a Percent of Annualized Base Rent Source: Company filings. Information as of September 30, 2009 DIVERSE TENANT BASE
Slide 5: Strong Demographics
Source: Applied Geographic Solutions. § High quality assets with an average age of only eight years § Approximately half of the current portfolio was developed by KRG § Portfolio benefits from 100% non-owned anchor occupancy § Strong household incomes surrounding operating portfolio and development
Slide 6: Well-Staggered Lease Expirations
(1) Lease expirations of operating portfolio and excludes option periods and ground leases. Annualized base rent represents the monthly contractual rent for September 2009 for each applicable property multiplied by 12. § No more than 11.0% of total annualized rent is expected to rollover in any one
Slide 7: Access to Capital
§ Equity Capital Markets § $88 million - May 2009 offering net proceeds § $48 million - October 2008 offering net proceeds § Unsecured Term Loan § $55 million - August 2008 unsecured 3 year term loan § Line of Credit § Only $78 million outstanding as of September 30, 2009 § 2012 maturity date includ
Slide 8: Managing Leverage: Debt Plus Preferred as Percent of Gross Assets
Peer Group Assessment: Debt Plus Preferred as a Percent of Gross Assets (1) Source: KeyBanc Capital Markets Leaderboard, 11/9/09. MANAGING LEVERAGE
Slide 9: Managing Leverage: Scheduled Debt Maturities
Scheduled Debt Maturities (1) Maturities exclude annual principal amortization. (2) Includes effects of loan closings, payoffs, and commitments that occurred subsequent to September 30, 2009. (3) Amount due in 2012 includes the outstanding balance on our unsecured revolving credit facility, and assu
Slide 10: Reducing Development: Current Development Pipeline
§ Only 2 projects in the Current Development Pipeline § Eddy Street Commons at Notre Dame § 72% pre-leased or committed § 67% of projected costs incurred § Tenant openings commenced September 2009 § Cobblestone Plaza § 41% pre-leased with late-stage anchor negotiations § 92% of projected costs incur
Slide 11: Reducing Development: Shadow Pipeline
§ Reduced the estimated costs of the Shadow Pipeline by over $100 million § Capital Summary (Dollars in thousands) KRG Share of Projected Total Costs as of 12/31/08: $293,800 KRG Share of Projected Total Costs as of 9/30/09: $186,500 Estimated Cost Reduction: $107,300 § Focus on ground leases or lan
Slide 12: Reducing Development: Pipeline as Percent of Gross Real Estate Assets
§ Ongoing effort to reduce the size of our development pipeline. Total Development Pipeline as a Percent of Gross Real Estate Assets (1,2) (1) Development Pipeline includes Current Developments, Redevelopments and Shadow Pipeline with the Company’s share of Parkside Town Commons reflected at 20%. (2
Slide 13: Peer Group Analysis: FFO Multiple
§ Assuming a peer group average multiple of 10.9x, our stock is trading at a 34% discount (1) Source: Thomson mean 2010 estimate as of November 6, 2009. Peer Group Assessment: FFO Multiple PEER GROUP ANALYSIS
Slide 14: Peer Group Analysis: AFFO Payout Ratio
Peer Group Assessment: AFFO PAYOUT RATIO (1) Source: Company filings and KeyBanc Capital Markets Leaderboard, 11/9/09. PEER GROUP ANALYSIS
Slide 15: Peer Group Analysis: Current Dividend Yield
§ KRG’s current dividend is fully funded by free cash flow § KRG’s 7.0% yield is 180 basis points higher than the peer group average (1) Source: Company filings. (2) Source: KeyBanc Capital Markets Leaderboard, 11/9/09. Peer Group Assessment: Current Dividend Yield PEER GROUP ANALYSIS
Slide 16: Peer Group Analysis: Implied Cap Rate
Peer Group Analysis: Implied Cap Rate (1) Source: Citigroup Investment Research, November 5, 2009. § Using the peer group average implied cap rate of 8.0%, KRG is trading at a 52% discount § KRG Share Price 11/6/09: $3.45 § KRG Share Price using 8.0% implied cap rate: $7.25 PEER GROUP ANALYSIS
Slide 17: Growth Strategy
§ Secure Off Balance Sheet JV Capital § Redeploy Land Sale Proceeds § Lease-Up of Vacant Junior Boxes § Complete Current Development and Redevelopment Pipelines § Utilize Lender Relationships for First Look at Distressed Opportunities GROWTH STRATEGY
Slide 18: 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
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